CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
1/12/2026
1 SUBJECT:
Adoption of an Ordinance of the City Council of the City of Pacifica to approve (1) rezoning RZ194-16 to rezone the northern portion of the project site to be developed from M-1 to C-2 and those portions of the project site to remain undeveloped to Open Space, and (2) zoning text amendment TA-116-19, to amend section 9-4.1101(b) of the Pacifica Municipal Code to add residential uses in horizontal mixed use developments as conditionally permitted uses in the C-2 (Community Commercial) zoning district; and Adoption of a an Ordinance of the City Council of the City of Pacifica to approve Development Agreement DA-4-21 to approve and authorize a development agreement between Crespi Breakwater, LLC and City of Pacifica to provide certain public and private benefits in conjunction with a development project at 570 Crespi Drive (APN 022-162-310) and the eastern 55 feet of the City owned property at 540 Crespi Drive (APN 022- 162-420). (File No.: 2016-004, RZ-194-16, TA-116-19, DA-4-21) RECOMMENDED ACTION:
(1) Waive second reading and adopt an Ordinance entitled “An Ordinance of the City Council of the City of Pacifica approving (1) Rezoning RZ-194-16 to Rezone the Northern Portion of the Project Site to be Developed from M-1 to C-2 and those Portions of the Project Site to Remain Undeveloped to Open Space, and (2) Zoning Text Amendment TA-116-19, to Amend Section 9-4.1101(B) of the Pacifica Municipal Code to Add Residential Uses in Horizontal Mixed Use Developments as Conditionally Permitted Uses in the C-2 (Community Commercial) Zoning District”; and
(2) Waive second reading and adopt an Ordinance entitled “An Ordinance of the City Council of the City of Pacifica approving Development Agreement DA-4-21 to approve and authorize a development agreement between Crespi Breakwater LLC and City of Pacifica to provide certain public and private benefits in conjunction with a development project at 570 Crespi Drive (APN 022-162-310) and eastern 55 feet of the City owned property at 540 Crespi Drive (APN 022-162-420).”
STAFF CONTACT:
Samantha Updegrave, Community Development Director
(650) 738-7341
[email protected]
BACKGROUND:
The subject ordinances for rezoning, text amendment, and a development agreement are part of the application for the mixed-use housing development at 570 Crespi Drive (APN 022-162- 310) and a portion of 540 Crespi Drive (APN 022-162-420) that would construct a 43,696 square foot mixed-use residential and commercial development, with 3,165 square feet of ground-floor commercial uses abutting Crespi Drive, 19 residential units, including three Below Market Rate Units (BMR), and a total of 47 parking spaces (File No. 2016-004).
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The Planning Commission considered the proposed project at their meeting on November 3, 20251 and adopted the following with a 4-1 vote (Ayes: Devine, Ferguson, Godwin, and Redfield; Nos: Davis (Absent: Berman and Hauser):
• Adopted Resolution No. 2025-014 to certify the Final Environmental Impact Report (EIR) and adopt the Mitigation Monitoring and Reporting Program (MMRP) to satisfy the requirements of the California Environmental Quality Act (CEQA); and • Adopted Resolution No. 2025-015 recommending City Council approval of the General Plan Amendment, Rezoning, Zoning Text Amendment, and Development Agreement; approving the following development permits for the project: Site Development Permit, Use Permit, Tentative Subdivision Map, Sign Permit, Parking Exception, and Tree Removal Permit; and making Government Code section 65402 findings for the transfer of real property.
The City Council considered the project, including a call up of the Planning Commission’s approval of the development permits, at a special meeting held on December 2, 20252 and took the following actions:
• Adopted Resolution No. 102-2025 certifying the Final EIR and adopting the CEQA Findings, a Statement of Overriding Considerations (SOC), and Mitigation and Monitoring Program (MMRP) for the Project; (5-0 vote – Ayes: Espinoza, Boles, Beckmeyer, Bier, Wright).
• Adopted Resolution No. 103-2025 approving the General Plan Amendment GP-96-19 to reclassify portions of the Project site to remain undeveloped as Conservation; (5-0 vote – Ayes: Espinoza, Boles, Beckmeyer, Bier, Wright)
• Introduced Ordinance No. xxx-C.S. approving Rezoning RZ-194-16 to rezone portions of the property to be developed as C-2 to allow residential uses and portions to remain undeveloped as Open Space, and Zoning Text Amendment TA-116-19 to allow horizontal mixed use as a conditional use in C-2; (5-0 vote – Ayes: Espinoza, Boles, Beckmeyer, Bier, Wright)
• Introduced Ordinance No. xxx-C.S. approving Development Agreement DA-4-21 to approve and authorize execution of a Development Agreement between Crespi Breakwater, LLC and City of Pacifica to provide certain public and private benefits in conjunction with the Project (3-2 vote – Ayes: Beckmeyer, Bier, Wright; Nos: Espinosa, Boles)
• Adopted Resolution No. 104-2025 approving the Planning Commission approval of Site Development Permit PSD-811-16, Use Permit UP-76-16, Parking Exception PE-183-19, Sign Permit S-129-19, Vesting Tentative Subdivision Map SUB-233-16, and Tree Removal Permit TP-13-25 to allow construction Of a mixed-use commercial and residential project consisting of 3165 square feet of commercial area and 19 residential condominiums at 570 Crespi Drive APN (022-162-310) and the eastern 55 feet of 540 1 November 03, 2025, Planning Commission agenda and staff report link:
https://pacificacityca.iqm2.com/Citizens/Detail_Meeting.aspx?ID=1726 2 December 02, 2025, City Council agenda and staff report link:
https://pacificacityca.iqm2.com/Citizens/FileOpen.aspx?Type=14&ID=1619&Inline=True Pacifica City Council 3
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Crespi Drive (APN 022-162-42O) (3-2 vote – Ayes: Beckmeyer, Bier, Wright; Nos:
Espinosa, Boles)
o Site Development Permit (PSD-811-16): Added approval of an exception to allow the skylights on Building B and Building C to project above the maximum light as shown in the approved plans;
o Condition of Approval (COA) No 13: Corrected typo to update minimum number of required replacement trees
▪ “Prior to the issuance of a building permit the applicant is to prepare Tree Protection and Preservation Plan, consistent with PMC Sec. 4-12.11.
Each protected tree removed must be replaced at a ratio of 3:1, for a total of nine 15 minimum trees with at least 20 percent of those to be a minimum 24-inch box size.”
o COA No. 28: Added tree removal activities
▪ “The Project shall require review and approval of a grading permit and a building permit prior to commencement of any tree removal or construction activities.”
o COA No. 54: Added
▪ No grading, retaining walls, or other site improvements beyond those expressly allowed in the Development Agreement shall occur on City property. All improvements required for the project shall be located entirely on the owner’s private property unless separately authorized in writing by the City.
o COA No. 55: Added
▪ Every garage will have one 50-amp receptacle for EV charging. • Adopted Resolution No. 105-2025 approving and authorizing the City Manager to execute an Agreement for Purchase and Sale (Including Joint Escrow Instructions) and Terms of Development with Crespi Breakwater, LLC for a portion of the City’s property located at 540 Crespi Drive in the City of Pacifica, with a modification to require submittal of required documents to the California Department of Housing and Community Development (HCD) (3-2 vote – Ayes: Beckmeyer, Bier, Wright; Nos:
Espinosa, Boles)
DISCUSSION:
The two ordinances recommended for adoption were introduced and the first reading was waived on December 2, 2025. The ordinances provide as follows:
1. Ordinance for a Zoning Text Amendment and Rezoning. Per PMC section 9-4.3501, the zoning ordinance and zoning districts may be amended whenever the public necessity and convenience and the general welfare require such amendments. The recommendation to approve the Zoning Text Amendment and Rezoning is based on the following considerations:
Zoning Text Amendment – TA-116-19. Residential uses located above the ground floor in the same building as commercial uses, or vertical mixed, are currently allowed by conditional use in the C-2. The proposed zoning text amendment would add a new subsection (12) to section 9-
4.1101(b) of the PMC to add a new conditional use that incorporates the allowance of Pacifica City Council 4
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residential-only buildings as part of an integrated mixed-use development to the C-2 zoning district, as follows:
PMC section 9-4.1101(B) (12) Residential dwelling units as part of a mixed-use development, including: (a) Residential units located above the ground floor in the same building as a permitted commercial use (“vertical mixed use”); and (b) Residential units located in a separate building or buildings on the same site as a permitted commercial use, where the residential and commercial uses are planned as a single, integrated development project (“horizontal mixed use”).
The zoning text amendment would apply to all property in the City zoned as C-2 and would by reference also apply to properties zoned as O (Professional Office), which refers to the standards in C-2. The zoning text amendment would not alter the allowable uses or density in the C-1 (Neighborhood Commercial) zoning district where residential uses mixed with commercial uses on the same site would continue to be required within the same building as a commercial use, above the ground floor (vertical mixed-use), with a maximum density of one unit per 2,000 square feet of lot area. Residential uses would continue to be prohibited in the C3 (Service Commercial) zoning district.
The Zoning Amendment would also address an inconsistency between the zoning ordinance and the 2040 General Plan for sites that are zoned C-2 or O and designated as Mixed Use Neighborhood (MUN) or Mixed Use Center (MUC). These Mixed Use Land Use Land Use designations (1) both allow vertical and horizontal mixed use, and (2) establish the density allowance based on units per acre. The current zoning ordinance is inconsistent because it only allows vertical mixed use and establishes a density of one unit per 2,000 square feet of lot area, which is less than what is allowed under the General Plan. Further, sites that are zoned C-2 or O but are not designated in the General Plan to allow residential uses would not be impacted by this change since residential is not allowed.
Rezoning – RZ-194-16. The project would rezone the northern developable portions of the subject site from the M-1 (Controlled Manufacturing) to the C-2 (Community Commercial) zoning district. The M-1 zoning district is subject to the allowable uses in the C-3 (Service Commercial) zoning district codified in PMC section 9-4.1201 which expressly prohibit residential uses. The rezoning would allow the project and proposed uses to be subject to the allowable uses in the C-2 zoning district codified in PMC section 9-4.1101 which, upon approval of the zoning text amendment, would allow mixed-use commercial and residential development on the project site.
The ordinance would also rezone the southern portions to remain undeveloped to an Open Space Zoning District consistent with the recommended General Plan designation of Conservation. The purpose of the Open Space District is to provide for the protection, maintenance, and enhancement of such environmental resources while providing for reasonable and compatible uses of land, and extends “protections to, but not limited to… land which is unsuitable for development due to steep slopes, geotechnical hazards, or other reasons, land areas vital to water resources relating to the supply, recharge, and/or watersheds, and areas of scenic value or unique natural features” (PMC section 9-4.2051). Open space as a reserve for seismic safety, water conservation erosion protection, view protection, or appropriate uses is a permitted use in the district.
The rezoning would also address an inconsistency between the site zoning designation and the 2040 General Plan MUC Land Use designation, which allows mixed use residential whereas the M-1 zoning prohibits residential. Both the rezoning to C-2 and zoning text amendment would create consistency between the current MUC designation, which allows horizontal mixed use, and the zoning by allowing residential uses on the site, eliminate the conflicting prohibition on Pacifica City Council 5
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residential uses on the site, density provisions (no minimum and lower maximum), and allowing horizontal mixed use at the site.
Attachment A, Exhibit A includes the existing and proposed zoning designations.
The findings to support the approval of the proposed rezoning and zoning text amendment are summarized below, and as set forth in detail in the proposed zoning ordinance (Attachment A):
The rezoning to C-2 and text amendment address the current inconsistencies between the Mixed Use Center Land Use designation and the M-1 Zoning District by allowing residential uses, and inconsistencies with the C-2 district by allowing both vertical and horizontal mixed use as conditional uses, and removing inconsistent provisions that do not establish a minimum density and set a lower maximum based on lot area.
In addition, the project would provide 19 residential units, including three Below Market Rate (BMR) homeownership units (one in each building) to meet current inclusionary housing requirements. The site’s location and characteristics and the in-fill nature of the development make it suitable for the density, intensity, and type of development proposed. The rezoning would be appropriately divided between the C-2 zoning on the northern developable portions of the parcel, and Open Space zoning on the southern portions that are proposed to remain in a natural state. The zoning text amendment would allow flexibility in site design to utilize the developable portions at a scale and intensity appropriate for the area by clustering development in the appropriate part of the site, providing space for critical housing and viable commercial spaces along the street frontage. The project aligns with current policies to promote infill development, encourage mixed-use development, especially in the lower Crespi Drive primary activity center, and preserve natural resources.
The project also supports and furthers Housing Element polices and increases ownership opportunities in a high resource area of the City. Further, the proposed rezoning and zoning text amendment would facilitate a project that can safely develop without causing adverse neighborhood impacts, and the appropriate General Plan consistency and zoning compliance findings can be made for the development upon approval.
2. Ordinance to Approve Development Agreement – DA-4-21. The City and the developer negotiated the terms of a development agreement to establish certain developer benefits and public benefits (Attachment B, Exhibit A). The developer would be granted vested rights to proceed with development under the City’s current land use regulations for the term of the development agreement, up to five years with an initial term of three years and a provision for a two-year extension. Public benefits include, but are not limited to:
• Affordable housing contribution in excess of the minimum requirements of the City’s below-market rate (BMR) inclusionary zoning requirements in the amount of $272,000; • Lease and associated payments to the City for use of the Community Center driveway at 540 Crespi Drive;
• Improvements to the Community Center property including construction of off-street parking spaces, a drop-off location at the front of the Community Center building, and landscaping improvements; and
• Wetlands interpretive signage at the rear of the project site.
All off-site improvements provided pursuant to the Development Agreement, including new parking spaces at the Community Center, would be required to obtain the applicable permits Pacifica City Council 6
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with the final layout and configuration approved to the satisfaction of the City Engineer (Condition of Approval #25), and be completed prior to the first Certificate of Occupancy.
The findings to approve the Development Agreement, pursuant to PMC section 9-4.5007, can be made, as summarized below, and as set forth in detail in the proposed ordinance (Attachment B):
The project consists of an in-fill development with direct access to a public street and utilities within Crespi Drive. The proposed development would not result in any adverse impacts to public health, safety, or welfare as conditioned. In particular, the project would result in a project where building mass would be broken up into three buildings as opposed to a single building as would be required under current zoning standards.
Provisions in Article 5 of the development agreement would require the applicant to complete the Community Center and wetlands interpretive sign improvements prior to issuance of the first certificate of occupancy for the project, which would ensure their completion prior to the applicant receiving substantial benefits from development of the project. Article 5 of the development agreement would also require payment of an additional affordable housing contribution of $272,000 prior to issuance of a building permit.
New housing creates revenue for the City through sales and property taxes and supports local businesses. The commercial component of the project would have a positive impact on the City’s economy, and the residential component of the project would have a significant positive impact on meeting the City’s housing needs generally and affordable housing needs specifically, as well as generating additional revenue.
The project, on the whole, inclusive of the provisions of the proposed development agreement, would be positive for the City of Pacifica and would not adversely affect public health, safety, or welfare.
CEQA DETERMINATION:
At a duly noticed special meeting on the Project on December 2, 2025, the City Council adopted Resolution No. 102-2025 certifying the Final EIR and adopting the CEQA Findings, a Statement of Overriding Considerations (SOC), and Mitigation and Monitoring Program (MMRP) for the Project.
The Notice of Determination (NOD) was filed with the San Mateo County Clerk on December 5, 2025, and a copy uploaded to the State Clearinghouse and Office of Land Use and Climate Innovation on December 8, 2025. See (State Clearinghouse #2021120126)3.
ALTERNATIVE ACTION:
The City Council could modify the ordinance(s), which would require re-introduction of the ordinance by the City Council after reconsideration by the Planning Commission, or deny adoption.
RELATION TO CITY COUNCIL GOALS AND WORKPLAN
The project, as a whole, relates to the following Strategic Plan4 goals:
3 Environmental documents available through State Clearinghouse: SCH# 2021120126 Pacifica City Council 7
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• 01: Enhance organizational and fiscal stability
• 02: Improve and steward City infrastructure, streets and facilities • 03: Prioritize protection and development of affordable housing FISCAL IMPACT:
In addition to the fiscal benefits associated with new housing, the development agreement would have the following positive fiscal impacts for the City:
• Revenue from the sale of the property to the developer; • Property and sales taxes from the units;
• Affordable housing contribution of $272,000, beyond and in addition to the code required three on-site BMR units;
• Annual payment for a driveway lease, which is adjusted annually; and • Construction of off-site improvements at the City-owned and operated community center ORIGINATED BY:
Community Development Department
ATTACHMENT LIST:
Attachment A: Draft Rezone and Zoning Text Amendment Ordinance, incl. Exhibit A - Zoning Diagram (PDF)
Attachment B: Draft Development Agreement Ordinance, incl. Exhibit A - Draft Development Agreement (PDF)
4 City of Pacifica Strategic Plan 2023 to 2030 (amended April 14, 2025):
https://www.cityofpacifica.org/government/city-council-strategic-plan