Truckee planning commission approves Gateway West conversion to medical offices with retaining‑wall exception

The Town of Truckee Planning Commission on an unanimous vote approved the Tahoe Forest Hospital District Gateway West project, authorizing the remodel of the existing Gateway Center into 14,718 square feet of medical office, a new 75‑space surface parking lot, and site improvements including a terraced rockery retaining wall that exceeds the town's 6‑foot retaining‑wall standard.

The decision, adopting Planning Commission Resolution No. 2025-06, came after roughly two hours of presentation and deliberation. Commissioners added conditions requiring additional traffic‑calming and signage/striping in the parking area and directing the applicant to work with town staff on a formal drop‑off location; staff told the commission those implementation details could be finalized by the town engineer or community development director and would not necessarily delay grading permits.

The project matters because it converts an underused, older commercial building into expanded local medical capacity while altering site geometry on a steep portion of Donner Pass Road that has been the subject of prior proposals. Tahoe Forest Health System says the project will expand outpatient capacity and reduce wait times for established and new patients.

Planning staff described the scope and approvals sought. Chelsea Crager of the Town of Truckee planning division told commissioners the application includes a development permit (for site disturbance), a planned development (to allow an exception to the 6‑foot retaining wall height limit), a use permit (for grading on slopes exceeding 20 percent), a sign plan, and a zoning clearance to establish medical office use at 10978 Donner Pass Road. Crager said an addendum to an earlier initial study/mitigated negative declaration (ISMND) was prepared with mitigation measures for biological, cultural, geologic, transportation and tribal resources and that those measures are included in the draft conditions of approval.

Representatives of the applicant, including Dylan Crosby, vice president of facilities and construction management for Tahoe Forest Health System, and Sandy Walker, director of primary care, explained operational need. Walker said the system is constrained by space: "we are simply at a place where we don't have anywhere else to add another provider or bring in support staff," and that the project would create room to meet internal goals for appointment access. Crosby described a two‑phase construction approach so the active clinic can remain open during the remodel: "Our strategy is to do this in two primary phases," he said, explaining the team intends to build the rear parking and remodel the west portion first, then move clinic operations and remodel the east side.

Project features and technical details presented to the commission include: - Building and use: conversion of the existing multi‑tenant Gateway Center to all medical office, 14,718 square feet (staff said the remodel results in a net loss of about 336 square feet). - Parking and circulation: a new 75‑space surface parking lot behind the building, continued parallel curbside parking on Donner Pass Road consistent with the town's Envision Donner Pass Road standards, and pedestrian improvements including heated sidewalks in the rear parking area. - Retaining wall and grading: a rockery, terraced retaining wall with a cumulative height allowance requested up to 13 feet (two tiers) tied into an existing rockery wall; the town's development code generally limits retaining‑wall heights to 6 feet, which is why the planned development request was necessary. Staff said the terraced design reduces slope disturbance compared with a lower single wall. - EV charging and signs: staff said the proposal provides 13 total EV‑capable parking stalls, four of which would be fully served by electric vehicle service equipment (EVSE), including one stall designated for public access; planning staff described that public EV stall as the project's mandatory planned‑development amenity. - Utilities and resiliency: the project includes undergrounding utilities as a construction requirement and a diesel generator for backup power; the applicant said alternative fuel options (natural gas) were evaluated but had higher costs.

Commissioners probed accessibility and circulation, and multiple commissioners and members of the applicant team discussed the parking layout and ADA access from the upper lot. Commissioners expressed concern about the circuitous route to the upper parking and pedestrian conflicts in winter; the applicant and staff said they considered alternative lot geometries but that some designs raised fire‑access or steep‑grade concerns. Commissioners requested additional on‑site traffic‑calming measures and clearer wayfinding; the commission added those items as conditions of approval.

The commission also discussed workforce impacts and how the town's employee‑generation formula calculates new full‑time equivalency (FTE). Staff explained the town uses FTE generation rates tied to land‑use types and square footage; because retail and office generation rates for the site's prior uses are the same as medical office in the town's table, the FTE calculation as submitted produced a net zero change in required mitigation. The applicant said the active clinic currently operates a 17‑exam‑room clinic and estimated roughly 40 full‑time staff now work at the facility; commissioners asked the applicant and staff to track actual employee counts in case workforce housing triggers or other requirements are necessary in the future.

Background: the site previously was the subject of a 2019 parking‑focused application that included a proposed three‑story parking structure and an ISMND; that earlier application was reviewed at the planning commission level but later withdrawn. A lot line adjustment was approved and recorded for the parcel in 2023, and some medical uses have been operating in parts of the building without a formal zoning clearance until now.

Vote and post‑decision details: the motion to adopt Planning Commission Resolution No. 2025-06 passed on a roll call vote with Chair Cavanaugh, Vice Chair Taylor and Commissioners Claren, Toups and Kauffman voting in favor. Staff noted a 10‑calendar‑day appeal period would follow the decision and indicated the project would become effective after the appeal period ends (staff said the appeal period would end Friday, April 25, and the effective date would be Monday, April 28). The applicant team and staff said they remain available to finalize the technical conditions and permitting steps needed to begin grading this season.

What comes next: the applicant will proceed to the building permit and grading permit processes, subject to the conditions of approval and required engineering and building‑code compliance. The commission's action may be appealed during the town's appeal window, after which permits and construction sequencing are determined through the town's permitting process.

Ending: Commissioners praised the project's improvements to the Donner Pass Road streetscape, sidewalk continuity and consistency with corridor design guidelines even as they pressed for clearer ADA access and site circulation for people with limited mobility. The applicant said it would continue to coordinate with town staff on traffic calming, drop‑off options and landscaping details as the project moves into permitting.