Scannell warehouse project on Kiernan Avenue wants to be part of Modesto. What to know
Proponents of the Scannell warehouse development on Kiernan Avenue are proposing that city of Modesto annex the 145-acre development.
Stanislaus County officials said Monday the proponents chose to apply for annexation to the city as a quicker route to get the project approved and built. Scannell Properties initially applied to the county for approval of 2.5 million square feet of warehouses and distribution centers, at the northwest corner of Kiernan and Dale Road, and still has an active land-use application with the county.
In July, the county Board of Supervisors hired a consulting firm to perform a long-awaited environmental study on the Salida Community Plan, which was expected to delay the Scannell project for 15 months. The warehouse project site is within the Salida growth plan.
Modesto issued a notice of preparation last month for an environmental impact report on the Scannell development. A project description proposes city annexation of the 145-acre site, with Modesto providing water and sewer service.
Angela Freitas, director of county planning and community development, said it was the proponents’ decision to seek annexation to Modesto. Previous proposals to annex the Salida community have run into opposition from residents. The environmental study on the 3,400-acre Salida Community Plan will include a feasibility analysis of city incorporation of Salida, an unincorporated town of 14,500 residents.
Freitas said Scannell’s application with the county remains active and the county still has a contract for preparation of the project EIR.
The local development team has not responded to requests for comment, though Scannell Properties has promised an extensive environmental review.
Supervisor Terry Withrow, whose district includes the area, said the county wants the Scannell development to remain in the county jurisdiction. “I know the people of Salida don’t want anything to do with any part of their Salida Community Plan annexed by Modesto,” Withrow said. “The people of Salida have hopes of being a city someday.”
Withrow said the fastest route is to let the county finish the environmental work on the Salida Plan and negotiate a deal with Modesto for water and sewer service, so the complex can develop in the county jurisdiction.
Withrow said the Salida Plan EIR should be completed in August, earlier than expected. The supervisor said the annexation route is more time-consuming because it involves a yearlong environmental review, land-use approvals and an annexation application to the Local Agency Formation Commission. There is no guarantee LAFCo will approve the annexation, Withrow said.
The Scannell project is on the eastern edge of the Salida Community Plan near Gregori High School and north of the Kaiser Permanente hospital. The site is within Modesto’s General Plan boundary.
Katherine Borges, an advocate for city incorporation of Salida, said she expects fellow residents will oppose the annexation. “If the intention of the city of Modesto is to annex the land, then they have a fight on their hands from Salida,” she said.
If Salida becomes a city, it would depend on tax revenue from the 3,400-acre community plan area to fund municipal services.
Jessica Hill, director of economic and community development for Modesto, said the Scannell project proponents submitted an application to the city and the plans will be reviewed, as with any development.
“We are going through the process and it depends on what is found through the environmental review,” Hill said. The study will assess the water and sewer service capacity of the large warehouse project, which is essential for determining the next step of potential annexation, she said.
A city General Plan update, in progress, will consider the potential for other industrial development in the Kiernan Avenue corridor and include a plan for city growth through 2050.
What the city review will study
The 30-day period for agencies and the public to comment on the scope of the city’s Scannell project EIR began Feb. 12 and runs until March 27. The study will consider environmental topics including aesthetics, air quality, biological resources, energy, greenhouse gases and climate change, hydrology, noise, impacts on population and housing, public services, traffic circulation and other issues.
A virtual meeting on the scope of the environmental study is set for March 20 from 3 to 4 p.m.
The development plan calls for 2 million to 2.5 million square feet of warehouse, distribution and manufacturing space, plus a small retail center at the corner of Kiernan and Dale. One issue is managing the circulation of trucks and before- and after-school traffic tied to Gregori High, which will converge on the Kiernan and Dale intersection.
Brad Johnson, a senior member of the Salida Municipal Advisory Council, said the proposed warehouse complex is not the same character as development around the nearby Kaiser hospital. “I don’t want to live in the middle of a truck stop,” Johnson said. “There won’t be high-paying jobs in a warehouse.”
Withrow said he believes the Salida Community Plan will spawn more development proposals once the county’s EIR is completed. “Our hope is that people in our county won’t have to travel over the hill for jobs,” he said.
This story was originally published March 4, 2025 at 3:18 PM.
