Title
PLN21-0031; Consideration of a Recommendation to the City Council Regarding Adoption of a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for PLN21-0031, Including a Zoning Map Amendment from Commercial Community with an Assembly Use Overlay (CC(AU)) to Industrial General (IG), Site Plan Review, Conditional Use Permit, and an Administrative Exception (Height) to allow the construction and operation of a new a one-story, 47 foot tall, approximately 52,269 square-foot warehouse structure that includes up to 5,000 square-feet office, and associated site improvements, and landscaping on an approximately 3.45 acre site at 14143-14273 Washington Street. Zoning District: Community Commercial (CC) within an Assembly Use (AU) Overlay; Alameda County Assessor’s Parcel Numbers 77B-1222-3-3, 77B-1222-4-3, 77B-1222-5-3, 77B-1222-6-15, 77B-1222-6-17, 77B-1222-6-18, and 77B-1222-6-19; Richard Poolis (applicant); First Industrial Realty Trust, Inc. (property owner)
Staffreport
SUMMARY AND RECOMMENDATIONS
The applicant is requesting a Zoning Map Amendment to rezone a 3.45-acre property at 14143-14273 Washington Avenue from CC(AU), Commercial Community with an Assembly Use Overlay, to IG, Industrial General, to facilitate the construction of a 52,269 square foot speculative warehouse development. A "speculative" development is a development project that is undertaken without a commitment from a tenant. In conjunction with the rezoning request, the applicant is also requesting Site Plan Review to allow the development of the proposed warehouse structure, associated site improvements, and landscaping, an Administrative Exception (Height) to allow the warehouse structure to be up to 47 feet in height, and a Conditional Use Permit to authorize-Warehouse - Storage Facilities and -Warehouse - Wholesale/Retail Distribution uses on site. , which are conditionally permitted uses in the IG Zoning District.
The Planning Commission is acting in an advisory role for this application. As this project includes a rezoning, the Zoning Code requires that the Planning Commission evaluate the proposed project and make a recommendation to the City Council, who will act on the requests.
Staff recommends that the Planning Commission adopt the attached resolution recommending that the City Council adopt a Mitigated Negative Declaration (Exhibit A to Attachment 1) and Mitigation Monitoring and Reporting Program (Exhibit B to Attachment 1) for PLN21-0031, and approve PLN21-0031 for a Zoning Map Amendment, Site Plan Review, Conditional Use Permit, and an Administrative Exception (Height) for the construction and operation of a speculative warehouse development at 14143-14273 Washington Avenue, based on the recommended Findings of Fact and subject to the recommended Conditions of Approval.
RELATIONSHIP TO SURROUNDING AREA AND BACKGROUND
The subject property is located at 14143-14273 Washington Avenue, between 139th Avenue and 143rd Avenue. The project site is zoned CC (AU) Commercial Community with an Assembly Use Overlay. The adjacent properties to the north, east, and southeast are also zoned CC(AU), and to the west there is the Union Pacific Railroad. A General Plan Map and Zoning Map is included as Attachment 2.
Seven parcels comprise this approximately 3.45-acre site, and if approved, a recommended condition of approval would require the project to merge the lots into one lot. The site is currently vacant, however, previously, the site was developed with several structures including a recreational vehicle rental and storage facility, an ironwork shop, and two single-family residences. Several of these structures were damaged by a fire in August 2022, and an emergency demolition permit was issued for the remaining structures as a safety precaution.
The project site is located in the “Mid-Washington Business District” which is identified in the General Plan Land Use Element as a mixed-industrial and commercial district envisioned to be a “diverse business corridor including a variety of uses, including manufacturing, warehousing and distribution, heavier commercial activities, and general commercial and service uses.” The Mid-Washington Business District is currently comprised of mainly industrial uses. For example, Larsen Lumbers, a construction material retailer, is across Washington Avenue, there are multiple automotive repairs businesses surrounding the site, a landscaping supply company is adjacent to the property to the south, and a corporation yard for the San Leandro Public Works Department is to the southwest. The nearest residential properties are located approximately 500 feet southwest and 1,000 feet east of the project site.
PROJECT PROPOSAL
Rezoning
The project seeks to rezone the subject property from CC(AU) to IG, Industrial General, to facilitate the construction of a speculative warehouse development. A rezoning is required for the proposed development because warehousing uses are not permitted in the CC(AU) zoning district, whereas -Warehouse - Storage Facilities and -Warehouse - Wholesale/Retail Distribution uses are conditionally permitted in the IG zoning district.
Project Site, Access and Parking
The applicant is proposing to construct a speculative warehouse structure measuring approximately 52,269 square feet. The warehouse is proposed to be one-story and 47 feet tall. Per Zoning Code Section 2.12.312, buildings in the IG Zoning District between 35 feet and 50 feet in height may be authorized through an Administrative Exception (Height). The proposal includes 15 truck bays at the rear of the building and up to 5,000 square feet of office space within the building. The project plans are included as Exhibit C to Attachment 1.
The warehouse would be constructed of concrete and painted off-white/beige with shades of greens as accent colors. Wood paneling would be installed along the two corners of the building at the front, the windows would be treated with grey glazing and set in black metal trim. The main entrance is proposed to be on the northwest corner facing the side.
The main frontage and vehicle access would be on Washington Avenue, via two driveways located in the southeast and northeast corners of the project site. Pedestrian access to the project site would be provided via concrete sidewalks that wrap around the proposed structure. All the proposed parking spaces would be located along the two sides and rear of the warehouse structure. The proposal also includes the construction of a surface parking lot with 64 vehicle parking spaces, 14 bicycle parking spaces, and on-site landscaping.
Landscaping
Landscaping is proposed along the front and sides of the building and there would be a detention basin at the rear of the property to collect and treat storm water run-off. Many of the existing trees along the front will be preserved and additional trees planted as street trees in the front, and to help provide shade on the sides of the building. In addition to the trees, shrubs and ground cover will also be provided on site.
STAFF ANALYSIS
The project has been reviewed by the Alameda County Fire Department, Engineering & Transportation Department, Building Division, and Environmental Services to ensure that the proposal would meet applicable health and safety requirements. Conditions of approval from these departments and agencies are included as part of the draft Resolution for the project (Attachment 1).
Rezoning
The General Plan Designation for the property is Industrial-Transition, and corresponds to areas that have historically been industrial but have transitioned or may transition in the future to a more diverse mix of uses. The IG zoning designation is conditionally compatible with the Industrial-Transition General Plan Land Use designation and can be adopted if the types of development allowed in IG districts are compatible with General Plan goals and policies.
The proposed project would facilitate the establishment of a warehouse use, which is consistent with Land Use Policy LU-7.11, which aims to sustain the Mid-Washington Corridor between San Leandro Boulevard and Halcyon Drive/ Floresta Boulevard as a mixed and diverse industrial and commercial business corridor with a variety of uses, including warehousing and distribution. The proposal would also further the aims of Land Use Policy LU-10.4: Industrial Sanctuary, which strives to protect the City’s major industrial areas from encroachment by uses that are potentially incompatible.
Development Standards
The proposed project has been evaluated for conformity with the development standards for the IG District, the proposed zoning of the project. With the approval of the requested Administrative Exception (Height), the project would meet all applicable development standards in the Zoning Code for development in the IG Zoning District. The project includes adequate parking and is within the limit for floor area ratio and lot coverage. A detailed table comparing the proposed project to the required development standards is included as Attachment 3.
Conditional Use Permit
The project site is located between Interstate 580 and 880, and Washington Avenue is a designated truck route. Warehouse use at this location would be appropriate because the proposed use is compatible with existing industrial uses in the area. Further, as the proposal is a speculative project, proposed conditions have been added to inform and ensure that future tenant(s) comply with the applicable regulations regarding noise, glares, hazardous materials, and other applicable performance standards. With the proposed conditions, including the Mitigation Measures, staff believe that the project will not have a significant impact on its neighbors or surrounding businesses, and will not result in an increase in vehicle traffic in the surrounding area.
Site Plan Review
A Site Plan Review Permit is required for the approximately 52,259 square-foot new warehouse building and associated development. The proposed building would be modern, symmetrical, and muted. The basic design of the building would be compatible with its surroundings, while still differentiating itself from the other rectilinear developments in the area. Staff believes that project design has achieved the intent of the requirements of Site Plan review by providing a harmonious and orderly development that is compatible with its surroundings.
Further, the loading facilities would be screened from public view as they are proposed to the rear of the site, behind the building. The landscaping would also help to screen some of the parking on the sides of the building and the street trees at the front will soften the building’s appearance. A preliminary landscape plan is included in the plan set (Exhibit C to Attachment 1) and conditions have been proposed to require a final landscape plan and lighting plan to be submitted at the time of building permit submittal that meets all applicable City and State requirements.
Administrative Exception (Height)
At approximately 47 feet, the project exceeds the 35-foot height limit. However, the site is not in an airport safety zone, the structure is well articulated on all sides and is adequately setback, which helps to reduces the appearance of mass and bulk, and the proposed height will unlikely have an adversely impact to surrounding properties. As this is a speculative development, staff recommends that the request be granted to help the project attract a wider pool of potential tenants for the applicant to select from.
Findings of Facts
To recommend approval of the proposed Zoning Map Amendment, Site Plan Review, Conditional Use Permit and Administrative Exception (Height), the Planning Commission must make certain findings of facts and/or determination pursuant to Zoning Code Sections 5.16.116, 5.08.124 and 4.08.116. Staff has analyzed the proposal and determined that the following required findings can be made.
Zoning Map Amendment
1. The amendment to the Zoning Map will not be detrimental to the public interest, health, safety, or welfare of the City.
The amendment to the Zoning Map will allow for the construction of an approximately 52,2590 square foot-warehouse that would incorporate mitigation measures to ensure that potential impacts to the environment are minimized and the site is designed with adequate parking, circulation, and security so that the proposal would not be detrimental to the public interest, health, safety, or welfare of the City.
2. The amendment to the Zoning Map is consistent with the City’s General Plan and all specific plans and the purposes of the Zoning Code.
The proposed amendment to IG, Industry General, zoning designation is consistent with General Plan goals and policies as discussed in this staff report, including Land Use Policy LU-7.11, which aims to sustain the Mid-Washington Corridor between San Leandro Boulevard and Halcyon Drive/ Floresta Boulevard as a mixed and diverse industrial and commercial business corridor, and Land Use Policy LU-10.4: Industrial Sanctuary, which strives to protect industrial areas from incompatible uses. The proposed IG zoning would allow for the proposed warehouse to be developed in a suitable area for this type of use. There are no applicable specific plans.
Site Plan Review
1. The project is in compliance with the minimum requirements of this Code and are arranged as to achieve the intent of such requirements by providing a harmonious and orderly development that is compatible with its surroundings. Parking, loading, storage, and service areas are appropriately screened by building placement, orientation walls, and/or landscaping.
The development standards of the IG District (e.g., setbacks, parking, height, etc.) are met or exceeded by this project. The project enhances landscaping on the lot by exceeding tree planting requirements in the parking lot and along the site frontage - the front setback area is dedicated to landscaping. The project exceeds the minimum landscaping requirement of five percent. Fences and gates are sufficiently setback, which helps to minimize their appearance,
2. The building(s) has(have) adequate articulation, with appropriate window placement, use of detailing, and/or changes in building planes to provide visual interest. The exterior materials, finishes, detailing, and colors are compatible with those of surrounding structures. Visually incompatible elements, such as roof-mounted utilities, are fully screened from public view.
The building’s architecture is modern, muted, and is typical and reflective of new warehouse developments in the area. The building is functional and comprised of basic rectilinear features involving horizontal and vertical design elements that are basic and inoffensive; the spandrel grey glazed windows, wood panels, paint palette, and decorative horizontal bands on the building add just enough visual interest to the structure but do not call attention to the structure.
3. The landscaping complements the architectural design, with an appropriate balance of trees, shrubs, and living ground covers, and provides adequate screening and shading of parking lots and/or driveways.
The landscaping complements the architectural design by providing screening and visual interest to the site. One street tree is required for every lineal foot of street frontage, which is 12 trees. The project includes 19 street trees, retaining 8 of the existing street trees. The remaining landscaping along Washington Avenue is comprised of shrubs, perennials, grasses, and ground cover. The landscaping will provide a sense of depth and screening to the building. The project exceeds the planting and landscaping requirement of 5 percent and will provides adequate screening and shading of parking lots and driveways.
4. Detail features, such as signs, fences, and lighting for buildings, parking lots, and/or driveways are visually consistent with the architectural and landscape design and minimize off-site glare.
The fences are conspicuously placed on the site, located more than 100 feet from the front property line and would be screened by landscaping. Conditions of approval are proposed to ensure that the project complies with current code requirements for landscaping, lighting, and signage at the time of building permit submittal.
Conditional Use Permit
1. The proposed location of the use is in accord with the objectives of this Code and the purposes of the district in which the site is located.
The project is located on a site surrounded by other industrial uses comprised of food distribution facilities, construction suppliers, storage facilities, and commercial printing facilities. The establishment of a warehouse facility in this location will help to protect existing industrial sites and allow for continued operation of existing manufacturing, distribution and storage, and other uses allowed within IG Districts. The project is subject to performance standards of the Zoning Code and its presence will help reinforce and support these surrounding industrial uses from the adverse impacts of potential inharmonious uses.
2. The proposed location of the use and the proposed conditions under which it would be operated or maintained will be consistent with the General Plan; will not be detrimental to the public health, safety or welfare of persons residing, or working in, or adjacent to, the neighborhood of such use; and will not be detrimental to properties or improvements in the vicinity, or to the general welfare of the City.
As noted below, the project is consistent with the City’s General Plan. This project is an investment in the Mid-Washington Business District, the development will occur on what is currently vacant and underutilized parcels of land, this project, when completed, may help to increase the value of surrounding properties with the public improvements that it will bring and/or pay into, and help spur further development in the area. With the recommended mitigation measures and conditions of approval related to performance standards, the project would not be detrimental to the public health, safety, or welfare, of persons in the vicinity nor would it be detrimental to properties or to the general welfare of the City.
3. The proposed use will comply with the provisions of this Code, including any specific condition required for the proposed use in the district in which it would be located.
The proposed project is consistent with the development standards of the Zoning Code as demonstrated in the staff report and in Attachment 3 to the staff report. The project site meets all the development standards for the IG zone, including but not limited to, lot coverage, setbacks, FAR, parking, and the height will be consistent with the Zoning Code with the approval of the requested Administrative Exception (Height).
4. The proposed use will not create adverse impacts on traffic or create demands exceeding the capacity of public services and facilities, which cannot be mitigated.
The environmental review for the project determined that it would not create adverse impacts on traffic nor create demand exceeding the capacity of public services. The project would be required to pay impact fees, offsetting impacts to public services, is in an urban area already served by the Alameda County Fire Department and San Leandro Police Department, and would not generate demands on the City park system. Intersections would operate at their existing service levels and the project would negligibly contribute to traffic at adjacent intersections and is in an area where existing vehicle miles traveled (VMT) per worker are below average thereby not creating an impact on VMT.
Administrative Exception (Height)
1. The proposal would not be detrimental to public health, safety or welfare and would not cause undue damage, hardship, nuisance or other detriment to persons or property in the vicinity.
The proposed administrative exception for height would not be detrimental to public health, safety or welfare and would not cause undue damage, hardship, nuisance or other detriment to persons or property in the vicinity due to the industrial nature of the surrounding area and is not located in an airport zone. The recommended conditions of approval will maintain the character of the industrial area, promote the use of the existing industrial area, and prevent impacts to the adjacent uses.
GENERAL PLAN CONFORMITY
The property has a General Plan (GP) designation of Industrial-Transition. The Industrial-Transition land use designation supports a diverse mix of both industrial and commercial uses, and the proposed warehouse use would be consistent and compatible with the mix of those envisioned uses.
Per the General Plan Land Use Element, the proposed zoning designation for the site, IG, Industrial General, is conditionally compatible with the underlying Industrial-Transition, General Plan Land Use designation; this means that, in order to rezone the site, the City must find that the types of development allowed in the IG Zoning District is consistent with General Plan goals and policies. Staff has identified the following General Plan goals and policies which support this finding:
• Land Use Policy LU-7.11 - Mid-Washington Business District. Sustain the mid-Washington corridor between San Leandro Boulevard and Halcyon Drive/ Floresta Boulevard as a mixed industrial and commercial district. While the existing commercial zoning may be retained in this area, it is envisioned as a diverse business corridor including a variety of uses, including manufacturing, warehousing and distribution, heavier commercial activities, and general commercial and service uses.
• Land Use Policy LU-10.4: Industrial Sanctuary. Protect the City’s major industrial areas from encroachment by uses that are potentially incompatible with existing viable industrial activities, or which may inhibit the ability of industry to operate effectively.
• Land Use Policy LU-7.2 Adaptive Reuse. Encourage private reinvestment in vacant or underutilized industrial and commercial real estate to adapt such property to changing economic needs, including the creation of flex/office space and space for technology-driven businesses.
• Economic Development Policy ED-1.1 Leveraging San Leandro’s Assets. Build on San Leandro’s strengths, including its central location, transportation infrastructure, affordability, industrial land supply, and business-friendly reputation to leverage economic growth and private investment in the city.
• Economic Development Policy ED-1.2 Maintaining San Leandro’s Competitive Advantage. Maintain and protect San Leandro’s inventory of larger scale industrial sites and buildings with easy access to freeways, rail, airports, and seaports. Discourage the conversion of industrial uses to commercial and residential uses except where part of a carefully targeted citywide strategy.
• Economic Development Policy ED-1.10 Tax Revenues. Encourage development that generates sales tax, property tax, and other revenues that sustain municipal services.
• Community Design GOAL CD-6. Ensure that new construction and renovation contributes to the quality and overall image of the community.
• Community Design Policy CD-6.8 Commercial and Industrial Standards. Improve the visual appearance of the City’s commercial and industrial areas by applying high standards of architectural design and landscaping for new commercial and industrial development and the re-use or remodeling of existing commercial and industrial buildings.
• Community Design Policy CD-6.9 Siting of Parking Lots. Encourage the placement of parking lots to the rear of businesses rather than along the street frontage so that they become a secondary feature of commercial development rather than the dominant feature. Where large surface parking lots must be provided, require screening and landscaping to improve and soften their appearance.
PUBLIC OUTREACH
A combined Notice of Intent to Adopt a Mitigated Negative Declaration (MND) and Public Hearing Notice was mailed to interested parties, adjacent occupants, and property owners within 500 feet of the subject property on October 6, 2023. The 20-day public review for the MND was from October 6, 2023, to October 27, 2023. A notice of public hearing was published for this project in the East Bay Times Daily Review newspaper and posted at City Hall.
ENVIRONMENTAL REVIEW
The proposal meets the definition of a project under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines. The City, with assistance from its third-party on-call CEQA Consultant, Rincon Consultants, prepared an Initial Study and Mitigated Negative Declaration (IS/MND) (Exhibit A to Attachment 1) that determined, with mitigation, any potential impacts would be less than significant.
Mitigation measures addressing air quality, biological resources, cultural resources, geology and soils, hazards and hazardous materials, and tribal cultural resources, and mandatory findings of significance, were incorporated into the proposed conditions of approval (as Conditions 1-6) to ensure that the project would have a less than significant impact on the environment. The draft Mitigation Monitoring and Reporting Program (MMRP) is included as Exhibit B to Attachment 1.
Pursuant to CEQA, the IS/MND was circulated to various agencies for a 20-day public review period (October 6, 2023, through October 27, 2023), and the document was posted to the City’s website (<https://www.sanleandro.org/335/CEQA-Documents-Project-Studies>). As of the publication of this staff report, staff has received comments from East Bay Municipal Utility District that provided requirements for water service and the Confederated Villages of Lisjan Nation, which requested copies of the research records for cultural resources; the written comments a are included as Attachment 4.
RECOMMENDATION
Staff recommends that the Planning Commission adopt the attached resolution recommending the City Council adopt a Mitigated Negative Declaration (Exhibit A to Attachment 1) and Mitigation Monitoring and Reporting Program (Exhibit B to Attachment 1) for PLN21-0031, and approve PLN21-0031 for a Zoning Map Amendment, Site Plan Review, Conditional Use Permit, and an Administrative Exception (Height) for the construction and operation of a speculative warehouse development at 14143-14273 Washington Avenue, based on the recommended Findings of Fact and subject to the recommended Conditions of Approval.
ATTACHMENTS
Attachment 1: Resolution 2023-XXX
Exhibit A: Initial Study/Mitigated Negative Declaration
Exhibit B: Draft Mitigation Monitoring and Reporting Program
Exhibit C: Project Plans
Attachment 2: General Plan & Zoning Map
Attachment 3: Development Standards Table
Attachment 4: Written Comments
PREPARED BY:
Binh Nguyen, Associate Planner, and Adam Petersen, Contract City Planner
Planning Division