Title
Arden Way Drive-Through Restaurants (P25-022) [Noticed 09/11/2026; Published 09/11/2026] [Continued from 09/24/2026]
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FileID
File ID: 2026-01664
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Location
Location: 1950 Arden Way, APN: 277-0271-007-0000 & 277-0271-017-0000, District 2
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Recommendation
Recommendation: Conduct a public hearing and upon conclusion: pass a Motion to 1) close the public hearing; 2) approve: a) Environmental Exemption (Per CEQA Guidelines Section, 15332 - Infill Development; b) Conditional Use Permit to establish a 3,150 square foot drive-through restaurant (Shake Shack); c) Conditional Use Permit to establish a 2,622 square foot drive-through restaurant (Pollo Campero); and d) Site Plan and Design Review for the demolition of an existing 30,235 square foot commercial building, the construction of two (2) drive-through restaurants, a 6,000 square foot commercial building, and associated site improvements on approximately 2.92-acres in the Shopping Center (SC-R-PUD) zone within the Point West Planned Unit Development; and 3) adopt a Resolution amending the Point West Planned Unit Development Schematic Plan to designate Parcel “A” for commercial, residential, and office uses.
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Contact
Contact: Deja Harris, Associate Planner, 916-808-5853, DNHarris@cityofsacramento.org; Zachary Dahla, Senior Planner, 916-808-5584, ZDahla@cityofsacramento.org, Community Development Department.
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Presenter
Presenter: Deja Harris, Associate Planner, 916-808-5853, Community Development Department
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Applicant
Applicant: Market Street Development, LLC, 3017 Douglas Boulevard, Suite 300, Roseville, CA 95661
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Property Owner
Property Owner: Charles Smyth, MSD-DV Arden, LLC, 3017 Douglas Boulevard, Suite 300, Roseville, CA 95661
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Attachments
Attachments:
1-Description/Analysis
2-Background
3-Resolution: Point West PUD Schematic Plan Amendment
4-Exhibit A: Point West PUD Schematic Plan Exhibit
5-Findings of Fact and Conditions of Approval for Conditional Use Permit and Site Plan and Design Review
6-Exhibit A: Project Plans
7-Community Comments
8-Presentation
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Description/Analysis
IssueDetail
Issue Detail: The applicant is requesting to demolish a vacant bank building and reconfigure an existing parking lot in the Point West Shopping Center at the corner of Exposition Boulevard and Arden Way to redevelop the site with new commercial uses, including two drive-through restaurants and a commercial retail building on approximately 2.92 acres in the Shopping Center (SC-R-PUD) zone and the Point West Planned Unit Development (PUD).
This request requires Planning and Design Commission approval of the following entitlements:
1) Planned Unit Development (PUD) Schematic Plan Amendment: The project site is a portion of Parcel “A” in the Point West Planned Unit Development, which designates this site for “financial institution and retail” uses. A PUD Schematic Plan amendment is requested to redesignate Parcel “A” from “financial institution and retail” to “commercial, residential, and office”, which would allow for the drive-thru restaurant uses and flexibility for any future uses.
2) Conditional Use Permit to authorize a 3,150 square-foot drive-through restaurant on-site.
3) Conditional Use Permit to authorize a second, 2,622 square-foot drive-through restaurant on-site.
4) Site Plan and Design Review for the demolition of the existing 30,235 square foot bank building and the construction of two (2) drive-through restaurants, a 6,000 square foot commercial building, and associated site improvements.
The requested entitlements identified above are discussed in more detail under the Entitlement Review section of Attachment 2 - Background.
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Public/NeighborhoodOutreachComments
Public/Neighborhood Outreach and Comments: As part of the application review process, the proposed project was routed to Preservation Sacramento, Civic Thread, Sacramento Area Bicycle Advocates, Region Builders, Swanston Estates Neighborhood Association and North Sacramento Chamber of Commerce. Staff received a letter of support from North Sacramento Chamber of Commerce and a letter from Civic Thread expressing the following recommendations regarding the proposed development:
• Provide safe access for pedestrians traveling through the project site and prioritize walking and biking to the site through sufficient tree shade, and cool pavement.
• Reduce drive-through intensity and provide for electric vehicle infrastructure above the minimum CalGreen requirement.
Staff Response: The project will improve pedestrian connections by providing three additional concrete pathway connections from the public right-of-way to the subject site while connecting to the existing pedestrian network within the commercial development. New pedestrian pathways are included within the project area, and enhanced paving is utilized to differentiate the path of travel. This project provides 26 bicycle parking spaces within the development, adjacent to building entrances and paths of travel, which exceeds the bicycle parking requirement of the Planned and Development Code. The project is conditioned to provide a trellis over the pedestrian paths from the public right-of-way to the drive-through restaurants to increase visibility of pedestrian pathways for vehicle drivers. Lastly, each building provides an outdoor dining area, providing an additional amenity for customers and pedestrians to enjoy, thereby reducing the drive-through intensity.
Staff posted the site with an early notice at time of planning application submittal. Staff also mailed hearing notices to all property owners, residents, and neighborhood groups within 500 feet of the project site and posted the site 10 days prior to the public hearing. Staff received a letter of opposition from a nearby resident opposed to the demolition of the commercial building.
All comments received are included in Attachment 7.
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PolicyConsiderations
Policy Considerations:
2040 General Plan
The 2040 General Plan designation for the project site is Residential Mixed Use (RMU). The General Plan recognizes that Residential Mixed Use designation areas are intended to foster vibrant, walkable areas with a high-intensity mix of residential, commercial, office, and public uses, where daily errands can be accomplished on foot, by bicycle, or by transit. The RMU designation applies principally in the Central City and the corridors. The Plan area is envisioned to include a full range of residential, retail, employment, entertainment, cultural, and personal service uses serving a communitywide market, such as restaurants, apparel stores, specialty shops, theaters, bookstores, hotels and motels, and research and development facilities.
The project is consistent with the RMU designation in that drive through restaurant and retail uses are allowed in the RMU designation. The project also aligns with the purpose of the RMU designation by redeveloping an underutilized property with supportive retail and food service uses that contribute to the variety and diversity of the uses within the existing commercial shopping center, furthering the retail viability of the area. Staff also finds that the project is consistent with the following General Plan goals and policies:
Goal LUP-4. Walkable, transit-oriented centers and corridors that concentrate new jobs, housing, and entertainment opportunities to support frequent, reliable transit service and foster connected, accessible neighborhoods.
Policy LUP-4.2 Incentivizing Infill. The City shall consider a range of incentives to attract development to centers, corridors, and sites, including the following:
• Prioritization of capital investment strategies for infrastructure, services, and amenities to support development;
• Economic incentives (e.g., fee reductions, regulatory exemptions, or tools such as enhanced infrastructure financing districts (EIFDs), Opportunity Zones, and Enterprise Zones);
• Streamlined development review, environmental review, and permitting processes;
• By-right entitlements for development projects consistent with applicable zoning;
• Ministerial approval of infill housing and mixed-use projects consistent with objective development and design standards;
• Public-private partnerships; and
• Proactive solicitation of development.
Policy LUP-4.8 Buildings that Engage the Street. The City shall require that buildings be oriented to actively engage and enhance the public realm through techniques such as building orientation, build-to and setback lines, façade articulation, ground-floor transparency, and location of parking.
Policy LUP-4.9 Enhanced Pedestrian Environment. The City shall require the design of sidewalks in commercial and mixed-use areas to promote walkability and pedestrian activity, with widths wide enough to provide for free and clear pedestrian use, activation of building frontages with displays, landscaping, and seating areas for cafes and restaurants.
Policy LUP-4.12 Drive-Through Restaurants. The City shall prohibit new drive-through restaurants within:
• ½-mile walking distance from the center of an existing light rail station platform or high-frequency transit stop; and
• ¼-mile walking distance from the center of a proposed light rail station.
Staff Response: The proposed project is consistent with the above goal and policies in that it promotes sustainable growth and change by redeveloping an underutilized site within a larger commercial shopping center with additional restaurant and retail uses that would contribute to the revitalization of this commercial area. While the project would include two drive-through restaurants, the site is not located along an existing high-frequency transit corridor or within a ½ mile of light rail transit service. The design of the proposed buildings positively engages the street with façades that incorporates variation in material along with planar changes to create visual interest and variation of massing along highly visible facades that align with the intended character of the area. To balance the auto-related nature of development, the project includes ample landscaping and tree shading, on-site benches, covered outdoor eating areas, and multiple pedestrian connections from Arden Way and Exposition Boulevard. Parking for this site is located away from the public roadway with spaces located at the interior of the site and screened from public view by the buildings. The project is conditioned to provide a trellis over the pedestrian paths from the public right-of-way to the drive-through restaurants to increase visibility of pedestrian pathways for vehicle drivers. All of these improvements assist in creating a high-quality, pedestrian-friendly development that aligns with the intended character of the area and supports its role as a commercial hub.
The proposed project also incentivizes infill development via the proposed PUD Schematic Plan amendment which will generalize the PUD designation of the Point West Shopping Center to “commercial, residential, & office.” This amendment will allow for the proposed drive-through restaurant uses and retail development, as well as streamline the review of any future commercial, residential, and office uses on-site by alleviating the need for subsequent PUD amendments. This allows for future projects consistent with objective development standards to be reviewed at a staff-level in accordance with Chapter 17.808 of the Planning and Development Code, streamlining the development review process and setting the stage for meaningful mixed-use development. Further, the PUD amendment promotes the reuse of existing commercial buildings within “Parcel A” for other uses that may have previously been prohibited. Overall, the proposed PUD schematic plan amendment is consistent with the goals and policies of the 2040 General Plan.
Goal LUP-5. Attractive, thriving commercial centers that are well-located to serve the needs of Sacramento residents, workers, and visitors.
Policy LUP-5.1 Evolving Regional Commercial Centers. The City shall promote housing and employment uses at existing regional commercial centers to enhance retail viability, establish pedestrian-oriented shopping districts, create more attractive buildings and public spaces, support transit viability, and reduce vehicle trips. The City shall facilitate the replacement of surface parking, drive aisles, and shared parking facilities to further this policy.
Policy LUP-5.2 Shopping Centers as Focal Points. The City shall encourage existing regional and neighborhood shopping centers to integrate amenities, events, and programming that strengthen their role as destinations for area residents to shop and gather. Features to integrate may include the following:
• Pedestrian amenities;
• Electric vehicle charging;
• Bike parking;
• Traffic-calming features;
• Plazas and public areas;
• Shade trees;
• Lighting;
• Public art;
• Farmers markets;
• Retail and other services that provide for everyday needs; and
• Community events.
Staff Response: The proposed project is consistent with the above goal and policy in that it provides for additional restaurant, and commercial retail uses that would further the retail viability of the existing shopping center. The Point West Plaza Shopping Center and the Arden Fair Mall area at-large has experienced a recent resurgence of economic investment and this project contributes to this synergy by replacing a vacant commercial building and large parking areas with new commercial uses. Planning staff worked closely with the applicant to create an enhanced pedestrian experience by advocating for ample landscaping and tree shading, on-site benches, covered outdoor eating areas, and a separate pedestrian connections from the sidewalk leading to various commercial components. Additionally, pedestrian scale lighting will be added to the parking lot improving on-site visibility and ample tree canopy will be provided throughout the parking lot and drive-through lanes to comply with the City tree shading requirements. The site has been designed to screen the on-site parking lot and drive-through by incorporating landscaped strips and an elevated berm along the adjacent rights-of-way (Arden Way and Exposition Boulevard) and a small CMU wall along each of the drive-through lanes. The project provides 26 bicycle parking spaces within the development, adjacent to building entrances and paths of travel, which exceeds the bicycle parking requirement of the Planning and Development Code. The project also provides a trellis over the pedestrian paths from the public right-of-way to the drive-through restaurants to increase visibility of pedestrian pathways for vehicle drivers.
Arden Arcade Community Plan
The project site is located within the Arden Arcade Community Plan Area of the 2040 General Plan. The vision of the Community Plan Area is to exemplify a clean and safe community with bustling businesses and job centers, well-connected transportation systems, and charming residential areas. The Arden Arcade Community Plan does not have any goals or policies applicable to the proposed project. Given the project’s consistency with the RMU General Plan designation and goals and policies from the 2040 General Plan, staff find the proposed project is also consistent with the Community Plan Area.
Point West PUD
The subject site is located within the Point West PUD which was originally adopted in 1971. The PUD envisions an interrelated area composed of a variety of residential, industrial, commercial, office, and medical offices uses. No applicable goals or policies specific to the Point West PUD have been adopted.
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EnvironmentalConsiderations
Environmental Considerations: The Community Development Department, Environmental Planning Services Division has reviewed this project and determined that is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15332 (Infill Development). The project is consistent with the Residential Mixed Use general plan designation and the Shopping Center (SC-R-PUD) zoning designation; occurs within the City of Sacramento city limits on a project site of less than five acres and is substantially surrounded by developed urban areas; the project site has no value as habitat for endangered, rare, or threatened species; the project would not result in any significant effects regarding traffic, noise, air quality, or water quality; and is served by all required utilities and public services.
The existing structures do not meet the significance criteria for the listing on the California Register of Historic Places or as a Landmark in the Sacramento register. On Tuesday, August 27, 2024, the City Council conducted a public hearing and upon conclusion, denied the listing of 1950 Arden Way (Home Savings and Loan Building) as a landmark on the Sacramento Register of Historical and Cultural Resources. The record contains substantial evidence that the existing structures are not historical resources. Therefore, the project will not result in a substantial adverse impact on the significance of a historical resource, and no further CEQA analysis is required.
200-Year Flood Protection: State Law (SB 5) and Planning and Development Code chapter 17.810 require that the City must make specific findings prior to approving certain entitlements for projects within a flood hazard zone. The project site is within a flood hazard zone and is an area covered by SAFCA’s Improvements to the State Plan of Flood Control System, and specific findings related to the level of protection have been incorporated as part of this project. Even though the project site is within a flood hazard zone, the facilities of the State Plan of Flood Control or other flood management facilities protect the project to the urban level of flood protection. This is based on the SAFCA Urban Level of Flood Protection Engineer’s Reports accepted by the City Council on October 21, 2025 (Resolution No. 2025-0283).
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RationaleforRecommendation
Rationale for Recommendation: Staff recommends the Planning and Design Commission approve the requested entitlements based on the findings and subject to the conditions listed within Attachment 5. The proposal complies with the goals and policies of the 2040 General Plan in that this commercial development develops an underutilized parcel with a use that will generate employment; provides a consumer-based service; is designed to be compatible and complement the surrounding area; and will streamline future infill development. Staff supports drive-through restaurant uses and commercial and retail uses at this location because it is easily accessed from Interstate Business 80 and is located next to compatible land uses such as commercial, office and hotel uses. Furthermore, the proposed project is consistent with the 2040 General Plan and the Planning and Development Code.
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FinancialConsiderations
Financial Considerations: Not applicable.
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EconomicImpacts
Economic Impacts: Not applicable.
Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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