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Planning panel recommends specific‑plan amendment and permits for two hotels at Coral Hollow near West Valley Mall
Summary
The commission recommended City Council adopt a mitigated negative declaration, amend the I‑205 Corridor Specific Plan boundary and FAR, and approve a development review permit and 20% parking reduction for two four‑story hotels near the West Valley Mall: a 107‑room Avid/Candlewood combined property and a 70‑room Hilton Garden Inn.
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The Planning Commission recommended that City Council approve a specific‑plan amendment, a development review permit and a parking‑reduction determination for two hotels proposed at the northwest corner of Interstate 205 and North Coral Hollow Road.
Staff report and project scope Kenny Lippitz of the City of Tracy community and economic development staff described the proposal as three parcels totaling about 3.17 acres. The applicants seek an amendment to the I‑205 Corridor Specific Plan to fold a parcel at 3055 North Coral Hollow Road into the plan boundary, change its designation to general commercial, and raise the hotels/motels maximum floor‑area ratio (FAR) from 0.6 to 1.0 (consistent with the general plan commercial maximum).
The development review permit would authorize two four‑story hotels: a roughly 52,000‑square‑foot combined Avid/Candlewood product with approximately 107 rooms, and a roughly 47,000‑square‑foot Hilton Garden Inn with about 70 rooms. The applicant requests a 20% parking reduction; staff said the applicant’s parking study and franchise occupancy data support the reduction and concluded 155 parking spaces would be sufficient even at full occupancy.
Design, walkability and landscaping Project architect Arvind Iyer presented massing and materials, including mixed stucco, stone veneer and accent elements, and described a covered guest entry and four‑sided architectural treatments. Commissioners asked whether rear elevations and the pedestrian connection to the mall would feel inviting; staff and the applicant pointed to a tree‑lined walkway from the northwest corner that will link the hotels to the mall ring road and said landscaping will exceed city minimums for shade and parking‑lot planting.
Why it matters: The hotels are sited adjacent to West Valley Mall and the city’s retail core; commissioners and staff noted the hotels would support local tourism and events, generate transient‑occupancy tax (TOT) revenue and provide short‑stay lodging for mall visitors and regional events.
Environmental review and parking Staff transmitted an Initial Study and a Mitigated Negative Declaration with an MMRP; staff recommended adoption of the mitigated negative declaration and required mitigation measures for potential impacts identified in the initial study. For parking, staff noted city standards and the hotel franchise data that informed the applicant’s parking study; the commission recommended the 20% parking reduction.
Outcome On roll call the Planning Commission voted to recommend City Council: adopt the mitigated negative declaration and MMRP; approve the I‑205 Corridor Specific Plan boundary and FAR amendments; approve the development review permit for both hotels; and approve a 20% parking reduction.
Next steps The Planning Commission’s recommendation will be forwarded to City Council for final action and any conditions will be carried forward into a development agreement or permit conditions if Council approves.

