SUNSET CROSSROADS UPDATE: OCTOBER 27 CITY COUNCIL MEETING AND NOVEMBER 3 BALLOT MEASURES

October 27 City Council Meeting: Amendment Approved
On October 27, the Banning City Council approved an amendment to the Sunset Crossroads Specific Plan. The Council also postponed agenda item 9.1 until next week.

The amendment concerns permitted uses within the Sunset Crossroads development. Its effective date is tied to the outcome and certification of the November 3 election. Under the resolution, if Measures U, V, and W all receive a majority YES vote, the amendment is scheduled to become effective 15 days after certification of the election. If the measures receive a majority NO vote, the amendment resolution will be null and void.

The November 3 ballot has not changed. Voters will decide on Measures U, V, and W.

What Are Voters Deciding on November 3?
The three measures address different aspects of the Sunset Crossroads development. Here is what each ordinance would do.

MEASURE U — ORDINANCE 1618: SUNSET CROSSROADS ZONING CHANGES

This ordinance changes the zoning framework for the approximately 533-acre Sunset Crossroads site, allowing industrial, commercial, park, and open-space uses under the Specific Plan.

Key changes include:

• Approximately 392 acres: Rezoned from residential to industrial uses, opening the way for nearly 5 million square feet of industrial development, primarily mega-warehouses and distribution facilities.
• Approximately 47.9 acres: General Commercial zoning changes to the Sunset Crossroads Specific Plan designation, which continues to allow commercial uses.
• Approximately 53 acres: Designated Open Space–Resources for conservation and related open-space purposes.
• Approximately 5 acres: Designated for park use.

The commercial area was already zoned commercial. The central change is the conversion of a substantial amount of residentially zoned land to industrial use.

MEASURE V — ORDINANCE 1619: MOUNT SAN JACINTO COLLEGE PROPERTY

This ordinance changes the zoning of approximately 40.9 acres of Mount San Jacinto College District property from Public Facilities–School to Very High Density Residential.

The change is intended to accommodate the transfer of residential development capacity from Sunset Crossroads to the college property, helping the City meet California’s housing no-net-loss requirements.

This is a separate property from the Sunset Crossroads development, and the proposed zoning change would allow residential development on land currently designated for public school facilities. There are currently no plans to build residential here and is not required by the agreement.

MEASURE W — ORDINANCE 1620: THE 30-YEAR DEVELOPMENT AGREEMENT

This ordinance approves a 30-year Development Agreement between the City of Banning and NorthPoint (NP Banning Industrial, LLC).

The agreement establishes the contractual framework for the proposed development, including development rights, developer obligations, public benefits, infrastructure improvements, and financial arrangements between the City and NorthPoint.

The agreement contains provisions addressing financial contributions, land dedications, development impact fee credits, and other obligations. The timing and conditions of those commitments matter: not every proposed public benefit is an unconditional guarantee that a particular facility will be built.

The agreement also raises important questions about the City’s overall financial position, including:

• What payments and other contributions NorthPoint is legally obligated to provide, and under what conditions.
• What development impact fee credits or reimbursements may reduce the City’s net receipts.
• What infrastructure, maintenance, and municipal service costs the City may have to cover.
• What annual tax revenue the City could receive if the project is fully built out.

The City has cited approximately $2.4 million in projected annual sales-tax revenue from the commercial area. That figure should not be confused with total annual revenue from the entire project. The property-tax revenue from the industrial development and the potential hotel-tax revenue have not been established in a complete, verified total in the information reviewed to date.

Projected revenue is not guaranteed revenue, and gross revenue is not the same as net financial benefit to the City. Understanding the City’s obligations, credits, and potential costs is essential to evaluating the agreement.

Questions Remain Unanswered
During the October 27 meeting, I continued seeking clarification on the relationship between the Specific Plan amendment and the three ordinances subject to the referendum.

I submitted questions to City officials by email and raised questions during public comment on two occasions. Although the City provided clarification on the environmental review question, several other questions remain unanswered.

These include the legal and procedural basis for proceeding with the amendment while the referendum is pending, how the amendment relates to the underlying development approvals, and how the amended permitted-use provisions will be interpreted and applied in future project reviews.

I will be sending a follow-up letter to the Mayor and City Council requesting written clarification. I will share that letter in a separate update so petition supporters can review the questions directly.

STAY INFORMED
The November 3 election concerns three ordinances that affect the future of Banning in different ways: zoning changes for Sunset Crossroads, a residential zoning change on the Mount San Jacinto College property, and a 30-year Development Agreement with NorthPoint.

Understanding what each measure would authorize—and the financial commitments and obligations involved—is important to an informed public discussion.

Thank you to everyone who has signed the petition and continues to follow these proceedings. I will share further information and any substantive responses from City officials as they become available.