REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department ASHLEY ATKINSON, Assistant Director Planning and Development Department ISRAEL TREJO, Planning Manager Planning and Development Department BY: ROB HOLT, Supervising Planner Planning and Development Department SUBJECT ..Title HEARING to Consider Development Permit No. P21-00989 for approximately 3.7 acres of property located on the northeast corner of West Herndon and North Prospect Avenues; and related Environmental Assessment No. P21-00989 (Council District 2). 1. ADOPT - Environmental Assessment No. P21-00989 dated October 16, 2025, affirming that the proposed project is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.66 (Assembly Bill (AB) 130). 2. APPROVE - Development Permit Application No. P21-00989, including the conditions of approval for the development permit application dated October 16, 2025. ..Body RECOMMENDATIONS 1. ADOPT Environmental Assessment No. P21-00989 dated October 16, 2025, affirming that the proposed project is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21080.66 (Assembly Bill (AB) 130). 2. APPROVE Development Permit Application No. P21-00989, including the conditions of approval for the development permit application dated October 16, 2025. EXECUTIVE SUMMARY Development Permit Application No. P21-00989 was previously denied by the Fresno City Council on July 25, 2024. Details on the project and Council action can be found in Exhibits D and E, respectively. The applicant appealed the Council's decision to the Superior Court of the State of California. On July 14, 2025, the Superior Court judge's ruling resulted in the following (Exhibit F): 1. The Petitioner's housing development submitted May 26, 2021, is "deemed consistent, compliant and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision" of the City of Fresno and no minor deviation from the Expressway Area Overlay District is required. 2. Within the next 60 days, the City Council is to determine whether a categorical exemption from CEQA applies for this project. This court is expressing no opinion on whether the recent South Fresno Community Alliance v. City of Fresno decision or the recent enactment of AB 130 is relevant. Nor is it precluding the Council from considering them, should they find them to be relevant. 3. Should the Council find the project meets the requirements for a categorical exemption from CEQA, the City Council is to decide what Conditions of Approval should attach to the project. This last directive is also to be determined within the next 60 days. Per the Court's ruling, this item is being brought back to the Council for required action on the Project related to the second two items in the Court's ruling. On August 22, 2025, the Court granted the City an extension until November 12, 2025, to take action on the above rulings. City staff has determined that AB 130 applies to the project and that, with incorporation of the conditions of approval, the project complies with the provisions of AB 130. ENVIRONMENTAL FINDING Public Resources Code (PRC) Section 21080.66 permits a public agency to determine that a particular project is not subject to the California Environmental Quality Act (CEQA). The proposed project is consistent with the criteria in PRC Section 21080.66, and thus is not subject to CEQA (Exhibit B). CONDITIONS OF APPROVAL As discussed above, the City Council is to decide what Conditions of Approval should attach to the project. Any Conditions of Approval attached to the Project must comply with the provisions of FMC Section 15-5207. The Conditions of Approval prepared for the project are attached as Exhibit C, and are identical to the Conditions of Approval originally prepared for the project dated July 25, 2024, minus the requirement for a minor deviation and adding the requirement for a Phase I Environmental Site Assessment, as required by AB 130. NOTICE OF CITY COUNCIL HEARING The Planning and Development Department mailed notices of this City Council hearing to all property owners and residents within 1,000 feet of the subject property, pursuant to FMC Section 15-5007 (Exhibit H). CONCLUSION The appropriateness of the proposed project has been examined with respect to its consistency with AB 130. These factors have been evaluated as described by the accompanying environmental assessment. Based upon this evaluation, it can be concluded that the proposed environmental assessment is consistent with the provisions of AB 130. LOCAL PREFERENCE Local preference was not considered because this project does not include a bid or award of a construction or service contract. FISCAL IMPACT There is no fiscal impact associated with this action. Attachments: Exhibit A - Vicinity Map Exhibit B - Environmental Assessment No. P21-00989 [10-16-2025] Exhibit C - Conditions of Approval for Development Permit Application No. P21-00989 [10-16-2025] Exhibit D - City Council Staff Report [7-25-2024] Exhibit E - City Council Minutes [7-25-2024] Exhibit F - Superior Court Ruling Case No. 24CECG04298 [7-14-2025] Exhibit G - Superior Court Ruling Case No. 24CECG04298 [8-22-2025] Exhibit H - Public Hearing Notice Radius Map (1,000 feet) Exhibit I - City Council PowerPoint Presentation