The Tracy City Council voted 3–2 late Tuesday to approve the Tracy Hills Commerce Center, a proposed seven‑building industrial and business park on roughly 97 acres at the southwest corner of Corral Hollow Road and the Delta Mendota Canal. The action includes a specific‑plan amendment allowing modest height variation, a development review permit for about 1.73 million square feet of industrial space and a vesting tentative subdivision map to create lots for the buildings and related infrastructure.

The project applicant, Steve Arthur, partner with Ridgeline Property Group, told the council the design has evolved over years of review and is intended to attract a mix of industrial, advanced manufacturing and commercial uses. “I appreciate the opportunity to present the Tracy Hills Commerce Center,” Arthur said during the presentation, noting the team had reduced building sizes, removed cross‑dock facilities and added retail parcels along Corral Hollow as part of design changes.

The council’s approval follows extensive staff review and public hearings at the Planning Commission, where the matter generated large turnout both for and against the project. Planning staff and the applicant said the project is consistent with the certified Tracy Hills Specific Plan environmental impact report and that additional CEQA study was not required under the cited guidelines.

Supporters — including trade union officials who said the project would create hundreds of construction jobs and nearly 1,000 ongoing positions — argued the development would bring local careers and tax revenue. “This project will provide good paying local jobs for local people,” union members said during public comment.

Opponents, including large numbers of Tracy Hills and Ellis neighborhood residents, said the project’s truck traffic, proximity to homes and to Coral Hollow Elementary School, air quality impacts and existing congestion on Corral Hollow Road make the location inappropriate. Residents asked the council to consider alternative sites, additional buffers, or further mitigation. “Locating a massive distribution center between two residential neighborhoods is not thoughtful planning,” a resident said during public comment.

Council debate underscored the split. Councilmembers Patrick Abercrombie (Mayor Pro Tem) and Nygaard voted in favor, citing design changes, jobs and mitigation commitments; Councilmembers Bedoya and Evans voted no, voicing concerns about traffic, public safety and air quality near schools and neighborhoods. Mayor Dan Areola cast the deciding yes vote. The roll call on the development permits recorded: Abercrombie — yes; Nygaard — yes; Areola — yes; Bedoya — no; Evans — no.

What happens next: The approvals authorize the project entitlements and a vesting tentative map; the applicant and the City will proceed with the required engineering and construction‑permit submittals, public‑infrastructure work (including Corral Hollow improvements spelled out in the project conditions) and tenant recruitment. The City will monitor required mitigation measures and permit conditions as building permits are sought.

Votes at a glance: the development review, specific‑plan amendment and vesting tentative subdivision map were approved by the council (3 yes, 2 no).

Reporting note: The Planning and Community & Economic Development staff presented the land‑use analysis and CEQA consistency check. The applicant provided project renderings, traffic and health‑risk studies and a voluntary noise/air analysis. Members of the public spoke in person and by WebEx; the hearing included dozens of speakers on both sides of the project.