FROM:
Planning Department
TITLE:
Title
Master Case No. 22-143, Development Agreement (AGR) No. 24-002: An Ordinance of the City Council of the City of Fontana, California, approving, pursuant to the certified Final Subsequent Environmental Impact Report, a Development Agreement with Prologis Exchange 11115 Hemlock Avenue LLC, providing for an extended entitlement timing and enhanced environmental measures for an approved industrial commerce center development of approximately 881,826 square feet on approximately 40.01 acres, and directing staff to File a Notice of Determination.
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RECOMMENDATION:
Recommendation
Based on the information in the staff report and subject to the findings, conclusions, and information in the staff report and presented in the public hearing, staff recommends that the City Council:
1. Find that the project has been reviewed under a previously certified Final Subsequent Environmental Impact Report (State Clearinghouse No. 2009091089), pursuant to Section 15162 through 15164 of the California Environmental Quality Act (CEQA) Guidelines and Section 8.10 of the City of Fontana’s 2019 Local Guidelines for Implementing CEQA and that no further analysis is required, and direct staff to file a Notice of Determination; and
2. Read by title only and waive further reading of and introduce Ordinance No. 1950, an Ordinance of the City Council of the City of Fontana, pursuant to the certified Final Subsequent Environmental Impact Report (SCH 2009091089) for the project, approving Development Agreement (AGR) No. 24-002 between the City of Fontana and Prologis Exchange 11115 Hemlock Avenue LLC, which provides for extended entitlement timing and enhanced environmental measures for an approved industrial commerce center development of approximately 881,826 square feet on approximately 40.01 acres.
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COUNCIL GOALS:
• Promote economic development by concentrating on job creation.
• Promote economic development by pursuing business attraction, retention, and expansion.
DISCUSSION:
Background:
The Planning Commission considered the Development Agreement and associated development project on March 19, 2024, and voted 4-0 to adopt Resolution PC Number 2024 - 020 and Resolution PC Number 2024 - 021 to approve Tentative Parcel Map No. 23-012 (TPM No. 20710) and Design Review No. 22-064 along with certifying the Final Subsequent Environmental Report (FSEIR) State Clearinghouse Number (SCH No. 2009091089), a Mitigation Monitoring and Reporting Program and a Statement of Facts and Findings for the development of an industrial warehouse building totaling approximately 881,826 square feet on approximately 40.01 acres at 11115 Hemlock Avenue (APNs: 0237-131-25, 0237-131-26, and -27).
At the March 19, 2024 meeting, the Planning Commission also voted (4-0) to adopt Resolution PC Number 2024-022 to forward a recommendation to City Council to adopt an Ordinance approving a Development Agreement No. 24-002 that provides for extended timing of entitlements along with enhanced environmental measures in association with a new industrial commerce center.
The staff report and attachments for the March 19, 2024, Planning Commission hearing for Master Case No. 22-143: Tentative Parcel Map No. 23-012 (TPM 20710), Design Review (DRP) No. 22-064, Development Agreement (AGR) No. 24-002, and Final Subsequent Environmental Impact Report are included as Attachment No. 2. Also, Planning Commission meeting minutes for the March 19, 2024 public hearing are attached as Attachment No. 3.
ANALYSIS:
The proposed Development Agreement with Prologis Exchange 11115 Hemlock Avenue LLC would have a term of 10 years that commences upon expiration of the initial two (2) year period and will provide for timing parameters and enhanced environmental measures by exceeding the minimum requirements of the Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program.
WAIRE Program:
The WAIRE Program aims to reduce nitrogen oxide and diesel emissions associated with warehouses to improve public health and is overseen by the South Coast Air Quality Management District for owners and operators of warehouses that have 100,000 square feet of area in a building.
WAIRE is a menu-based point system. Warehouse operators are required to earn a specific amount of points every year to meet the minimum requirement of 100%. Reward points are provided to warehouse facility operators for completing actions on its menu; such as, adopting eco-friendly equipment and vehicles for their operations and it is based on the number of trucks trips made to and from the warehouse each year.
Additional WAIRE Contribution is Required by the Development Agreement:
The Development Agreement includes a provision for enhanced environmental measures in Section 3.4 (Enhanced Environmental Measures) that exceed the requirements in the WAIRE program as described below:
1. For building permits issued and construction started after December 31, 2026, the project is subject to 110% of the WAIRE Points Compliance Obligation for the Project for a period of five (5) years under the current standards (May 7, 2021) of the South Coast Air Quality Management District’s Rule 2305 Warehouse Indirect Source Rule
2. For building permits issued and construction started after December 31, 2031, the project is subject to 125% of the WAIRE Points Compliance Obligation for the Project for a period of five (5) years under the current standards (May 7, 2021) of the South Coast Air Quality Management District’s Rule 2305 Warehouse Indirect Source Rule
ENVIRONMENTAL:
On March 19, 2024, the City certified a Subsequent Environmental Impact Report (SEIR) to the previously-certified Final Program Environmental Impact Report (FEIR) for the Southwest Industrial Park (SWIP) Specific Plan Update and Annexation (State Clearinghouse (SCH) No. 2009091089), which included this Development Agreement as a potential approval. Therefore, in accordance with Sections 15162 and 15163 of the California Environmental Quality Act Guidelines, staff has determined that none of the criteria requiring a subsequent environmental document have been met and that no further environmental review is required
FISCAL IMPACT:
The Development Agreement includes a provision for a payment in the amount of $20,000 upon the issuance of the first building permit for the project for the purpose of staff time and oversight of the WAIRE Points Compliance. If a building permit has not been issued by December 31, 2030, another payment of $20,000 would be provided to the city for staff time and oversight of the WAIRE Points Compliance.
MOTION:
Approve staff’s recommendation.
ATTACHMENTS:
Attachment No. 1 - Vicinity Map
Attachment No. 2 - Planning Commission March 19, 2024, Public Hearing Packet
Attachment No. 3 - Planning Commission Minutes of March 19, 2024
Attachment No. 4 - Ordinance
Attachment No. 5 - Notice of Determination
Attachment No. 6 - Public Hearing Notice