Fortuna council certifies supplemental EIR and adopts Mill District plan; zoning ordinance moved to second reading

The Fortuna City Council on Feb. 24 certified a supplemental environmental impact report (EIR) for the Mill District Specific Plan, adopted amendments to the General Plan land use element and design guidelines, and introduced a zoning ordinance to implement a Mill District qualified zone. Council members voted in favor of the EIR certification and the general-plan amendments; the zoning ordinance was introduced and the public hearing continued to March 3 for a required second reading.

The supplemental EIR and plan would guide redevelopment of the roughly 62-acre former Palco mill site, now marketed by the owner as the "Fortuna Mill Commerce Center," allowing a mix of residential, industrial, manufacturing, tourism and commercial land uses while adding measures to protect riparian areas along Strong's and Mill creeks. Community Development Director Sherry Meads and PlanWest Partners staff summarized the plan structure, which is organized into chapters covering guiding principles, land uses, circulation and infrastructure, financing, and implementation steps. The council adopted a set of implementing design guidelines alongside the plan.

The EIR analysis found that most topic areas showed no substantial change from the prior 2010-era EIR for the general plan, but it identified areas requiring mitigation and additional policy direction. Staff and the consultant emphasized air-quality and transportation; the EIR treatment retains development limits previously analyzed until further air-quality work is completed and treats vehicle-miles-traveled (VMT) impacts as significant and unavoidable for the general plan but noted the specific plan could reduce some citywide VMT by concentrating jobs and housing. The EIR package also includes mitigations that feed into a proposed citywide growth and development policy and new Mill District focus-area policies to encourage complete-streets principles and minimize additional vehicle trips.

Council adopted Resolution 2025-03 certifying the final supplemental EIR, adopting findings of fact, a statement of overriding considerations, and a mitigation monitoring and reporting program. Council then adopted Resolution 2025-04 approving the General Plan land-use amendments, the Mill District Specific Plan, and implementing design guidelines. The Council subsequently introduced an ordinance to amend Fortuna Municipal Code section 17.02.030 to add the Mill District Q zone; the ordinance was continued for second reading to the council meeting on March 3.

Supporters argued the specific plan offers a framework to revitalize a long-idle industrial site and to coordinate infrastructure and financing. Staff noted the specific plan includes a chapter summarizing estimated public-improvement costs and options for how new development would bear proportionate shares of those costs. The draft also incorporates changes requested by the Great Redwood Trail Agency to ensure proper trail characterization and coordination.

Opposition or major public objections were not recorded in the transcript during the public-comment period on this item; the public hearing was opened and no public speakers were recorded prior to the motions. Council members asked no substantive follow-up questions during the presentation.

Next steps: the council will return March 3 for the ordinance second reading and any final zoning action. Future development proposals in the Mill District will be reviewed against the specific-plan performance measures and the mitigation monitoring program adopted with the EIR.