FROM:
Planning Department
SUBJECT:
Title
Appeal No. 26-0001: Request to overturn the Planning Commission’s March 17, 2026 decision adopting a Categorical Exemption per Section 15332 (Class No. 32) and approving Tentative Parcel Map No. 18-000005 (TPM No. 19950), and Design Review No. 18-000010 - a request to split one (1) parcel into two (2) and for site and architectural approval for the development of two (2) new industrial commerce center buildings of 41,218 square feet and 30,767 square feet with associated site improvements on 3.98 acres located north of Hilton Drive and west of Hemlock Avenue, and identified as Assessor Parcel Numbers 1110-151-03.
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RECOMMENDATION:
Recommendation
Deny Appeal No. 26-0001, thereby upholding the Planning Commission’s decision on March 17, 2026, approving, pursuant to a categorical exemption under California Environmental Quality Act (CEQA) Section No. 15332 (Class No. 32. Infill Development), Tentative Parcel Map No. 18-000005 (TPM No. 19950) and Design Review No. 18-000010 to split one (1) parcel into two (2) and for site and architectural approval for the development of two (2) new industrial commerce center buildings of 41,218 square feet and 30,767 square feet, with associated site improvements, on 3.98 acres located north of Hilton Drive and west of Hemlock Avenue, and identified as Assessor Parcel Numbers 1110-151-03.
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COUNCIL GOALS:
• Promote economic development by concentrating on job creation.
• Promote economic development by establishing a quick, consistent development process.
• Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.
APPELLANT / APPEAL APPLICANT:
Appeal No. 26-0001: Supporters Alliance for Environmental Responsibility, 1939 Harrison Street, Suite No. 150, Oakland, CA 94612.
DISCUSSION:
At its March 17, 2026 meeting, the Planning Commission approved Tentative Parcel Map No. 18-000005 (TPM No. 19950) and Design Review No. 18-000010, pursuant to a Categorical Exemption under CEQA Section 15332 (Class No. 32), with adoption of Resolution PC Number 2026-006 on a 5-0 vote. The pertinent staff report and attachments for the March 17, 2026 Planning Commission hearing, along with meeting minutes, are included as part of Attachments No. 5 and 6.
On March 25, 2026, the City received Appeal No. 25-0002 from Supporters Alliance for Environmental Responsibility. In summary, the appellant contends that the decision to approve the project should not be upheld because the project does not qualify for a Class 32 Categorical Exemption under CEQA. The appeal letter requests that the City rescind the Project approvals, conduct an initial study, and prepare either a mitigated negative declaration or environmental impact report to analyze and mitigate the Project’s environmental impacts. No evidence supporting the appellant’s position was provided in the letter.
The project environmental consultant (Lilburn Corporation), who prepared the original CEQA Class No. 32 (In-Fill Development) Categorical Exemption Memorandum (Attachment No. 4) for the Hilton Industrial Commerce Center Project, prepared a written response (Attachment No. 3) to the applicant’s letter explaining that substantial evidence supports the City’s determination that the categorical exemption from CEQA was appropriate.
On May 11, 2026, the City received a follow-up comment letter (Attachment No. 5) from the appellant in response to Lilburn Corporation’s response letter. The comment letter dated May 11, 2026, stated that the decision to approve the project should not be upheld because the project does not qualify for a Class 32 Categorical Exemption under CEQA. The appellant stated that the Project site provides substantial habitat for multiple species, that the Categorical Exemption memo did not analyze the Project’s significant adverse impacts on wildlife and that mitigation measures are needed to reduce the Project’s impacts on wildlife. The letter requested that the City Council find that the Project does not qualify for the Exemption and instead prepare a mitigated negative declaration or environmental impact report before project approval.
On May 12, 2026, at its regularly scheduled meeting, the City Council opened the public hearing for the appeal and continued the item to the June 23, 2026 City Council meeting.
Lilburn corporation has also prepared a written response to the May 11, 2026 letter (Attachment No. 6). The response explains that the Categorical Exemption Justification and supporting analyses meets all the criteria for an Infill Exemption and that no significant impacts that could be mitigated to levels of less than significant were identified.
FISCAL IMPACT:
None.
MOTION:
Approve staff’s recommendation.
ATTACHMENTS:
Attachment No. 1 - Vicinity Map
Attachment No. 2 - Appellant Letter - Lozeau Drury/Supporters Alliance for
Environmental Responsibility, March 25, 2026
Attachment No. 3 - Environmental Consultant Response Letter, April 14, 2026
Attachment No. 4 - Justification Memorandum for the Categorical Exemption
Attachment No. 5 - Appellant Letter - Lozeau Drury/Supporters Alliance for
Environmental Responsibility, May 11, 2026
Attachment No. 6 - Environmental Consultant Response Letter, May 22, 2026
Attachment No. 7 - Planning Commission March 17, 2026, Report
Attachment No. 8 - Planning Commission Minutes of March 17, 2026
Attachment No. 9 - Clerk of the Board Fee Receipt and NOE
Attachment No. 10 - Public Hearing Notice