Planning commission recommends pre‑zoning of 1 Carousel Lane for municipal corporation yard

UKIAH, Calif. — The Ukiah Planning Commission voted 5‑0 on Oct. 8 to recommend that the City Council pre‑zone a city‑owned parcel at 1 Carousel Lane (APN 167‑280‑15) as Public Facilities and apply a General Plan public land‑use designation, a step staff said is needed before the city submits an annexation application to the Local Agency Formation Commission (LAFCO).

Jesse Davis, chief planning manager, told the commission the pre‑zoning is required to pursue annexation under Government Code §56742, a statutory pathway that allows cities to annex disconnected, city‑owned parcels under 300 acres for municipal purposes. “The changes that the city will make are primarily related to life safety, accessibility, and energy efficiency,” Davis said when describing the environmental review approach.

Why it matters: staff said the site — roughly seven acres with three warehouse suites (A, B and C) — will be used primarily for the municipal corporation yard to consolidate vehicle and equipment storage, improve operational efficiency and provide maintenance space for multiple service areas, including water and sanitation districts the city serves. Suite C will remain under a long‑term lease to an existing tenant, while the city would occupy Suites A and B.

Key details: staff said the parcel sits in an industrial corridor on North State Street with direct access to U.S. 101 and is compatible with surrounding light‑industrial uses. The city secured bond funds in 2022 (approximately $15 million in borrowing authority) to address corporation yard needs; staff said the purchase price for the Carousel Lane property was about $7.6 million.

Legal and procedural path: Davis explained the city plans to rely on Government Code §56742 for a disconnected annexation and referenced a draft CEQA determination invoking the CEQA Guidelines §15319 (Class 19) categorical exemption for annexations of existing facilities, which staff said is appropriate because the city does not plan to intensify use. Davis also said staff completed a Phase I environmental review and included historical aerials and topographic materials in the hearing packet.

Tax and lease considerations: commissioners asked about the private tenant (identified in the packet as a common‑carrier/tenant) and tax consequences. Davis said the tenant would need a city business license after annexation and that possessory‑interest taxes tied to the private lease would remain a county revenue stream and be addressed through a separate agreement. The city and county will negotiate tax‑share details for ad valorem revenue, staff said.

Restrictions and safeguards: staff emphasized that §56742 carries limits: annexed parcels must be city‑owned, under 300 acres, in the same county and used for municipal purposes, and the city cannot use the disconnected island to annex adjacent private parcels. Davis noted that if the city later sells or stops using the parcel for a municipal purpose, it would revert to county jurisdiction and its prior zoning.

Questions raised: commissioners queried whether relocating the yard could conflict with the city’s Climate Action Plan by increasing vehicle miles. Davis replied many service routes already operate along State Street and U.S. 101, the site improves access to the wider service area (including the Ukiah Valley Water Authority and Ukiah Valley Sanitation District), and the city is pursuing vehicle electrification — a reason the parcel’s electrical infrastructure was considered.

Next steps: the commission’s resolution recommends the City Council approve pre‑zoning and the General Plan designation and determine the action exempt under CEQA Guidelines §15319. If the council agrees, the city will submit an annexation application to LAFCO, which will hold its own review and hearing process; the annexation does not become effective until LAFCO recognizes it. Staff said additional coordination with the county would be required to finalize tax‑sharing and possessory‑interest arrangements.

Votes at a glance: the motion to recommend the City Council approve the pre‑zoning and apply the General Plan public designation passed on a roll‑call vote, 5‑0: Commissioner Brown — Aye; Commissioner Montana — Aye; Commissioner Johnson — Aye; Vice Chair Hillacre — Aye; Chair DeGrassi — Aye.

Background: the city currently operates a corporation yard on airport property, which staff described as undersized and outdated. Moving to 1 Carousel Lane would consolidate functions, remove the facility from airport property constraints, and allow the airport to pursue redevelopment of its site. Staff said the annexation is an early step and does not immediately change operations at the site beyond the planned transition.