Item No. 6
AGENDA REPORT
DATE: September 22, 2025
TO: Honorable Mayor and City Council
FROM: Fermin Preciado, Director of Development Services/City Engineer Benjamin J. Matlock, Deputy Director of Community Development/City Planner SUBJECT: Freeway Corridor Specific Plan Update Study Session RECOMMENDATION:
That the City Council conduct a study session regarding the Freeway Corridor Specific Plan.
BACKGROUND/DISCUSSION:
.1111111
The undeveloped properties along the Interstate 10 Freeway corridor have been planned for housing, commercial and industrial development since the City of Yucaipa's earliest history. The City's long- term financial sustainability plan has also considered the subsequent property and sales tax revenue for the City resulting from the Freeway Corridor Specific Plan (FCSP). In addition, the City's public infrastructure funding model recognized the freeway corridor as a key component for funding the development communities' share of the cost of this public infrastructure.
To achieve these planned long-term goals, the City Council authorized over $750,000 from the General Fund in 2005 for the preparation and environmental review of the FCSP. In 2008, the City Council approved and adopted the FCSP in an effort to encourage development along the corridor and facilitate development for the individual property owners.
In 2016, the City Council approved an update to the City's General Plan. After going through that process, it was evident that the 2008 FCSP needed to be updated to be consistent with the post - recession economic market, housing market and environmental review requirements of that time. This was also made apparent by the lack of development in the corridor area since 2008 when the FCSP was first approved.
Between 2018 and 2020, the City Council directed staff to prioritize updating the 2008 FCSP and seek funding to pay for the update. In 2020, the City of Yucaipa was awarded multiple grants totaling over $250,000 and began preparation of an update to the 2008 FCSP. In 2021 the City Council directed staff to update the FCSP and specifically address the following key points:
• Provide more flexibility for development in open space areas while allowing for views and rural appearances where appropriate.
• Preserve views of ridgelines south of the I-10 Freeway and along Oak Glen Road. • Distinguish the difference between functional open space and naturalenvironmental sensitive areas.
• Manage traffic impacts.
• Hide warehouses from the I-10 Freeway and adjacent City Streets On August 25, 2025, the City Council adopted an update to the FCSP that maintained the overall intent of the original 2008 FCSP, but included a variety of updates that were meant to improve the market feasibility of the area, while reducing public infrastructure costs and reducing vehicular traffic at build - out.
Following the adoption of the 2025 FCSP Update, the process for a referendum was initiated to overturn the City Council's decision with the expressed goal to restrict the development of the freeway corridor. This process allows a direct vote by the electorate rather than its representatives, the City Council.
Supporters of the referendum have stated that the referendum stops warehouses, however, that is false.
What is true is that both the original 2008 FCSP and the 2025 FCSP Update allow warehouses in the corridor. In fact, the original 2008 FCSP allows for warehouses on the property known as the Pumpkin Patch as well as the properties along the opposite side of the I-10 Freeway, whereas the 2025 FCSP Update does not allow warehouses on the Pumpkin Patch property or the properties along the other side of the I-10 freeway. The fact is the 2025 FCSP Update only allows warehouses south of the I-10 Freeway adjacent to the wastewater treatment plant and out of view.
Given the City's history of prioritizing and General Fund investment in development of the FCSP area, a study session was requested by the City Council to better understand the significance, likely consequences and impacts that would occur should the adoption and approval of the 2025 FCSP Update be overturned. A study session will add transparency to the process, provide factual information and provide a forum to discuss the complexities of the situation. It will also guide updates to the City's fiscal and land development policy should development in the FCSP area be limited and cause other areas of the City to absorb future development.
At a high level, the 2025 FCSP Update is designed and intended to accomplish two primary goals:
1. Support the City's long-term fiscal sustainability.
2. Provide housing opportunities to support the City's adopted Housing Element.
The 2025 FCSP Update provides the mechanism to deliver on these objectives. Therefore, should the 2025 FCSP Update be overturned or limited, the City's strategies and goals will need to pivot.
The study session will highlight impacts to the following areas:
• Yucaipa's adopted and future Housing Element policy document • Historical public infrastructure funding model
• City's long term financial sustainability plan
• Development Impact Fee Program
A status summary will be provided to assist in this discussion and to gather any feedback that may be appropriate.
FISCAL IMPACT:
The recommendation does not result in a fiscal impact.
Approved b
pP Y