Planning commission continues review of 1.7 million‑sq‑ft Tracy Hills Commerce Center after wide public turnout

The Tracy Planning Commission voted to continue consideration of the Tracy Hills Commerce Center project to allow additional review after an extended public hearing and more than 100 written comments from residents.

Staff and the applicant described the proposal as a multimillion‑square‑foot, multi‑building industrial business park on land in the Tracy Hills specific plan area. Scott Clare, planning manager, summarized the project as seven warehouse buildings ranging from roughly 117,000 to 355,000 square feet, totaling approximately 1.7 million square feet, with associated parking, landscaping, public‑street improvements and a vesting tentative map to subdivide roughly 194 acres into 16 parcels plus remainder. The Commerce Center site is on the west side of Corral Hollow Road between the Delta Mendota Canal and the California Aqueduct; staff said the property has been designated industrial under the general plan and the Tracy Hills specific plan since the site’s annexation in 1998.

Ridgeline Property Group, the applicant, presented revised plans and said it had reduced the original project footprint and eliminated higher‑throughput “cross‑dock” buildings during design review. “We reduced the project size by just under 50%… converted to seven buildings on 1,700,000 square feet,” said Steven Arthur, a partner with Ridgeline. The applicant described landscaping perimeter buffers, internal truck courts oriented away from public rights‑of‑way, LEED‑oriented building elements, solar‑ready roofs, and voluntary traffic improvements including two traffic signals and an extended public road. The applicant said it will fund approximately $15–$17 million in public improvements, primarily on Corral Hollow Road and on a new public street serving the project.

Staff presented CEQA analysis: the project was evaluated through a consistency analysis and environmental checklist that compared the proposal to the Tracy Hills specific plan EIR certified in 2016. City consultant staff stated that the project’s impacts are within the scope of that EIR and that no additional EIR is required under CEQA Guidelines §§15162 and 15168(c)(2).

More than two dozen residents and stakeholders spoke during the public comment period. Opposition points focused on traffic, air quality, safety, proximity to sensitive receptors (including an elementary school), light and noise pollution, and cumulative impacts from ongoing buildout in South Tracy. Speakers described local traffic congestion on Corral Hollow Road and the 580 interchange and questioned whether the project’s traffic analysis and modeling reflected current traffic patterns and recent local growth. Multiple speakers urged the Planning Commission to solicit or wait for a broader policy review before recommending large new warehouse projects in the area.

Labor and union representatives testified in support of the project, citing local construction and permanent jobs and commitments to hiring apprentices and local workers. Raul Hernandez, representing local construction trades, said the project would bring family‑supporting construction wages and apprenticeship opportunities. A Sheet Metal Workers representative also urged commission approval to bring jobs closer to local residents.

Commissioners questioned the applicant and staff about photo simulations, the elevation points used for visual simulations, the truck circulation plan inside the site, whether the project provides spaces to drop 53‑foot trailers, EV charging and “EV‑ready” conduit in parking stalls, the timing and phasing of roadway improvements on Corral Hollow Road, and the adequacy of the project‑level traffic study (prepared in 2022). The applicant said the road improvements shown on project plans would be completed with the initial phase and that the project had volunteered signal installation and other roadway work beyond typical nexus requirements.

After public comment and discussion, Commissioner English moved to continue the item so commissioners could review additional materials and receive further clarification on traffic, air quality and related policy issues. The motion was seconded and passed on roll call. The continuance gives commissioners additional time to examine the specific traffic and environmental analyses, as requested by several commissioners who said they wanted to ensure CEQA conclusions, mitigation measures and traffic modeling reflected current conditions. The Planning Commission’s continuation is a procedural recommendation; the City Council will make the final legislative decision if the application advances.

Commission staff recorded receiving more than 100 letters and emails on this item; the record will be forwarded to any future council hearing. The applicant said it would continue to coordinate with the city on phasing, the design guidelines appendix to the Tracy Hills specific plan, and project mitigation implementation.