AGENDA REPORT
April 14, 2025
Honorable Mayor and City Council
Item No. 16
DATE:
TO: �--
FROM: Fermin Preciado, Director of Development Services/City Engineer Ts Benjamin J. Matlock, Deputy Director of Community Development/City Planneri#-- SUBJECT: 24-044/GPA/SPA: Rescind Freeway Corridor Specific Plan Update Subsequent Environmental Impact Report Certification
RECOMMENDATION:
That the City Council conduct a public hearing and:
1. Rescind the certification of the Subsequent Environmental Impact Report (SEIR) that was prepared for the Freeway Corridor Specific Plan (FCSP) update that has not yet been adopted; and
2. Find that the action to rescind the certification of a Subsequent Environmental Impact Report (SEIR) prepared for the unadopted FCSP update is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines (CEQA Guidelines).
BACKGROUND/DISCUSSION:
HISTORY OF THE FREEWAY CORRIDOR SPECIFIC PLAN (FCSP)
On November 24, 2008, the City Council adopted the Freeway Corridor Specific Plan (FCSP) and an Environmental Impact Report (EIR) that encompassed a 1,242-acre area along Interstate 10. This initiative aimed to establish a focal point of commercial, industrial, and residential development, consistent with the City's General Plan vision for the area as a significant economic engine for the City of Yucaipa.
However, this adoption coincided with a period of dramatically shifting economic conditions because of the Great Recession. Although the plan set forth clear objectives for economic growth and job creation within the corridor, developers and property owners faced significant market challenges in bringing projects forward. Potential tenants and investors simply were not prepared to commit to significant projects in a market with high uncertainty. Despite the FCSP's original promise, momentum for major projects within the corridor stalled almost immediately after the plan was approved.
Since then, the City has identified the need to update the FCSP to align with both the altered post - recession economy and evolving development trends which has seen dramatic shifts in the retail consumer market. Benefiting from several grant awards, City staff began a comprehensive reexamination of the plan's land use mix, development standards, and infrastructure requirements.
The objective was to restructure the FCSP so that it could better attract investment while still meeting Yucaipa's broader economic development and community quality -of -life goals.
DEVELOPMENT OF THE FCSP UPDATE AND SUBSEQUENT ENVIRONMENTAL IMPACT REPORT Over the course of nearly three years, the City worked with consultants, stakeholders, and residents to prepare a significantly revised FCSP that took into account new market dynamics, emerging state - level planning requirements, and local feedback. Concurrently, a Subsequent Environmental Impact Report (SEIR) was prepared in accordance with the California Environmental Quality Act (CEQA) to assess the potential environmental impacts of the proposed changes to the FCSP.
On September 23, 2024, the updated FCSP and SEIR were presented to the City Council. In reviewing the SEIR, the Council determined that the environmental analysis satisfied CEQA requirements.
However, the Council requested further refinements to the FCSP itself, principally focusing on more comprehensive outreach to property owners regarding land use flexibility, overall development strategy, and long-term plan implementation. Consequently, the Council certified the SEIR but delayed formal adoption of the updated FCSP until staff could address these stakeholder concerns.
RATIONALE FOR RESCINDING THE SEIR CERTIFICATION
Shortly after the SEIR's certification, an attorney representing the group Yucaipa Preservation Society filed a lawsuit alleging that the environmental analysis violated CEQA. Because the updated FCSP had not yet been adopted —meaning there were no active development entitlements or clear beneficiaries of the plan —the City was left without a dedicated project applicant to share the costs of defending the SEIR. Under these circumstances, the City would have to shoulder all litigation expenses for defending the environmental analysis for a plan that had not been adopted.
Rescinding the certification of the SEIR effectively halts the litigation at this stage by removing the basis for the lawsuit's challenge. It is important to note that this action does not signal an abandonment of the FCSP update; rather, it is an interim measure to avoid unnecessary legal costs while the plan is refined. This action does not prevent the City Council from, in the future, certifying the SEIR, or an updated version of it, once the FCSP is brought back for consideration and adoption consistent with previous City Council direction.
NEXT STEPS AND FUTURE CONSIDERATIONS
Staff has incorporated the known feasible concerns/requests from property owners within the FCSP and conducted public outreach at a community festival and through a survey to help focus revisions that could best shape a corridor that accommodates projected economic and community needs. As additional feedback is provided, the process may result in further revisions to proposed land uses, transportation considerations, and infrastructure improvements to ensure that future projects are both market -feasible and compatible with surrounding neighborhoods.
When these discussions are concluded and the FCSP has been refined accordingly, the plan will be returned to the City Council for reconsideration. At that juncture, the SEIR (or a refined version) will once again be presented for certification in tandem with the updated plan. This approach ensures that the environmental documentation corresponds accurately to any proposed changes in land use or development strategy, thereby providing both a clear legal foundation for future growth and a transparent public process.
ENVIRONMENTAL REVIEW
Because rescinding the certification of an unutilized SEIR does not authorize or result in any physical changes to the environment, this action falls under Section 15061(b)(3) of the CEQA Guidelines, commonly known as the "common sense exemption." There is no possibility that rescinding a previously certified document would result in a significant environmental effect. Consequently, no further environmental review is required for the rescission action, and the City may proceed without additional CEQA documentation at this time.
By following this course, the City of Yucaipa remains committed to a well -coordinated approach that balances legal prudence, fiscal responsibility, and responsive planning. The City continues to prioritize the corridor's role in fostering economic vitality and community well-being, ensuring that the final plan will be fully reflective of current conditions, stakeholder input, and sound environmental stewardship.
FISCAL IMPACT:
The recommendation does not result in a fiscal impact.
Approved by: