West Berkeley Project Zoning Ordinance Amendments

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1 Planning Commission ACTION CALENDAR December 8, 2009 To: From: Honorable Mayor and Members of the City Council Planning Commission Submitted by: Dan Marks, Director, Planning and Development Subject: West Berkeley Project Zoning Ordinance Amendments RECOMMENDATION Adopt first reading of an Ordinance amending Berkeley Municipal Code Chapters 9.04, 23E.72, 23E.76, 23E.80, and 23F.04 related to development regulations and uses in the Manufacturing, Mixed Manufacturing, and Mixed-Use Light Industrial Districts. FISCAL IMPACTS OF RECOMMENDATION Increase in City revenue resulting from increased development in West Berkeley. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The proposed revisions are categorically exempt from environmental review under the California Environmental Quality Act (CEQA) Guidelines Section (b) (3) because it can be seen with certainty that the proposed zoning ordinance amendments would not have a significant effect on the environment. The proposed amendments would make minor changes to what is permitted to occur in existing buildings, consistent with the intent of the West Berkeley Plan. It would not lead to significant new development, but would facilitate reuse of existing structures by allowing uses already permitted in each of the Districts to locate in those existing structures. CURRENT SITUATION AND ITS EFFECTS Based on Council direction, in May, 2006 staff recommended as part of its FY 2007 work program to undertake a Limited West Berkeley flexibility project. The council adopted the work program and subsequently, on June 13, 2006, referred several detailed changes to West Berkeley Zoning to the Planning Commission. The City Council referral focused on amendments to zoning classifications in West Berkeley to facilitate reuse of existing buildings, and especially to facilitate arts and crafts uses to locate in the Manufacturing District. Staff began work on the West Berkeley Project in 2007 (formerly known as The West Berkeley Flexibility Project). On April 28, 2009, City Council received an update on the West Berkeley Project. Since that update, the project has progressed considerably, with a recommendation to Council this spring:

2 West Berkeley Project Fast Track ACTION CALENDAR Zoning Ordinance Amendments As Recommended by the December 8, 2009 Planning Commission on 7/22/09 The West Berkeley Draft EIR is nearing completion, to be released for public comment in early January; The Planning Commission has given staff direction for amendments to facilitate building reuse and small projects, and has reviewed staff recommendations on the Master Use Permit amendments; Staff has continued to work intensely with four stakeholder groups and the Planning Commission. During the past two months, Planning Commission and stakeholder meetings have focused on possible changes to the allowed uses and their definitions; On November 4, 2009, the Planning Commission met with all of the stakeholder groups in an open meeting, focusing primarily on the Master Use Permit and possible changes in uses. During that meeting, stakeholders and Planning Commissioners also discussed problems associated with the protected uses spaces and the possibility of allowing other uses into these spaces [Note: protected spaces refers to buildings currently (or, if vacant, then most recently) used for manufacturing, warehouse, wholesale, or material recovery activities.] On November 18, 2009, the Planning Commission asked staff to draft Zoning Ordinance language in relation to a recommendation from the Chair and previous Planning Commission actions. The Commission will consider this Zoning Ordinance language in February. Assuming the Commission completes its work by the end of February, staff would bring forward the Planning Commission s recommendations to the City Council after its break on April 20. BACKGROUND At the April 28, 2009 Council meeting, the Council directed that planning staff maintain the project s course of public engagement, but also expressed a desire to provide relief to West Berkeley businesses suffering under the current economic downturn. It was suggested that this relief could come about by advancing smaller items supported by all of the stakeholders and already vetted through the Planning Commission. In keeping with Council s direction, staff chose four items from the list of obstacles presented at the January 28 th Planning Commission meeting. Planning staff held preliminary discussions about these items with stakeholders in early June 2009, and the Planning Commission discussed them at its June 10 th meeting. The list was revised based on feedback staff received from the Commission. On July 22 nd, Planning Commission held a public hearing on the proposed Zoning Ordinance Amendments to Sections 23E.72, 23E.76, 23E.80, and 23F.04 and took public comment. After closing the public hearing, Planning Commission engaged in discussion and approved the amendments (9-0) 1. 1 Meeting Minutes, Attachment 3 Page 2

3 West Berkeley Project Fast Track ACTION CALENDAR Zoning Ordinance Amendments As Recommended by the December 8, 2009 Planning Commission on 7/22/09 RATIONALE FOR RECOMMENDATION Each amendment seeks to remedy an obstacle, or portion thereof, to development, as identified by stakeholders. For each amendment, the report identifies the current situation, the proposed change, and the rationale behind the request. The proposed amendments to the Zoning Ordinance are found in Attachment 1. Incidental Retail Current Situation: The Mixed Use Light Industrial District (MU LI) allows for the establishment of Incidental Retail for the sale of goods manufactured on site with an Administrative Use Permit (AUP) if, and only if, such sales are established simultaneously with the primary use. Proposed Change: Section 23E would be amended to allow for the establishment of incidental retail (for the sale goods manufactured on site with an AUP) both at the time of establishment and at any time thereafter. Rationale: The suggested change allows an operation to evolve as necessary and creates parity among manufacturing businesses that wish to establish incidental retail. This change will affect businesses in the MU LI District. The current regulations and findings for Incidental Retail will remain unchanged. Demising of space in existing buildings (Conversions) Current Situation: The Manufacturing (M), Mixed Manufacturing (MM) and MU LI districts currently regulate the division or demising of space (conversions). Whether a proposed Conversion requires a discretionary permit, and the level of that permit, depends on the size of the initial space, number of spaces to be created, the size of spaces to be created. Each of the three manufacturing zoning districts (M, MM, and MULI) requires a different level of discretion. For example, dividing a 20,000 square foot space into two 10,000 square foot spaces would require an Administrative Use Permit in the M district but only a Zoning Certificate in the MM District. Proposed Change: A consortium of the stakeholders proposed this change, which simplifies the code (1) by using the same rules for subdividing space in all three manufacturing districts, (2) by generally lowering the level of discretion (i.e., allowing more changes with a ZC rather than an AUP, or an AUP rather than a UPPH), and (3) and by basing the type of permit required on the number of spaces to be created, rather than the size of the space being subdivided. The proposed amendment would change each of the district s Conversion table (Sections 23E.72.50, 23E and 23E.80.50). Page 3

4 West Berkeley Project Fast Track ACTION CALENDAR Zoning Ordinance Amendments As Recommended by the December 8, 2009 Planning Commission on 7/22/09 Rationale: Implementing this change will reduce time and cost constraints for small business owners as well as property owners who wish to lease space to smaller industrial uses. The proposal will also facilitate the reuse and reconfiguration of industrial spaces so that businesses are better able to react to shifts in market forces. Interchangeability of Manufacturing/Wholesale/Warehouse/Material Recovery Enterprise (M/W/WH/MRE) uses Current Situation: Each of these uses is a protected use in the Zoning Ordinance; in general, if a building currently (of if vacant, then in the last use) housed one of these four uses, then the building is forever limited to house only one of these four uses. Unfortunately, the zoning ordinance is unclear about whether each of these uses can replace one another, and Planning staff s current practice has been to allow the interchangeability of the four protected uses. Proposed Change: The proposed change would amend Chapter 23E A to clarify it and codify current practice that allows interchangeability among the four protected uses. Rationale: The clarification will avoid possible confusion in the future. The new language will provide clarity for industrial businesses while maintaining space for protected uses. It would especially assist artisans to locate in existing vacant warehousing and manufacturing space. Exchange the Standard Industrial Classification system (SIC) with the North American Industrial Classification System (NAICS) Current Situation: The Zoning Ordinance uses the Standard Industrial Classification (SIC) numeric system to help define Manufacturing (and other) uses. The SIC was replaced many years ago by the North American Industrial Classification System (NAIC)which includes new manufacturing and other industrial uses that did not exist when the SIC code was created. Proposed Change: The proposal will amend Chapter 23F.04 (definitions) to update the definition of Manufacturing to reference NAICS while generally maintaining the same range and list of uses. Rationale: By updating the definition to reference NAICS, the City will adopt a national, modern definition system for uses. This change would not affect the current list of permitted uses in Berkeley, only the system within which they Page 4

5 West Berkeley Project Fast Track ACTION CALENDAR Zoning Ordinance Amendments As Recommended by the December 8, 2009 Planning Commission on 7/22/09 are defined. Additionally, NAICS is updated regularly, ensuring that our definitions remain current over time. ALTERNATIVE ACTIONS CONSIDERED Demising of space in existing buildings (Conversions) Staff presented two options for conversions of space at the July 22 nd Planning commission meeting. Planning Staff drafted Option 1, which reduced numerous requirements for UPPH to AUPs, but did not reduce AUPs to ZCs. A joint effort between certain stakeholders (See PC Report from 7/22/09) drafted Option 2, described above, which simplified the conversion requirements and generally reduced the required levels of discretion to subdivide property. The Commission voted unanimously to approve Option 2, as recommended in this report, because it was simpler, easier to understand, and generally made it easier and less expensive to subdivide buildings. CITY MANAGER The City Manager concurs with the content and recommendations of the Commission s Report. CONTACT PERSON Debbie Sanderson, Manager, Land Use Planning, Attachments: 1. Zoning Ordinance Amendments 2. Planning Commission staff report of July 22, 2009 with attachments. 3. Planning Commission minutes of July 22, Page 5

6 ORDINANCE NO. -N.S. AMENDING THE BERKELEY MUNICIPAL CODE (BMC) TITLE 23 (ZONING ORDINANCE) SECTION 23E TO ALLOW INCIDENTAL RETAIL FOR PREVIOUSLY ESTABLISHED MANUFACTURING USES, SECTIONS 23E , 23E , 23E , TO CHANGE PERMIT REQUIREMENTS FOR CONVERSIONS, SECTION 23E A, REGARDING INTERCHANGEABILITY OF FLOOR AREA USED FOR MATERIAL RECOVERY ENTERPRISE, MANUFACTURING, WHOLESALE TRADE OR WAREHOUSING, AND SUBTITLE 23F AND TITLE 9 (BUSINESS LICENSES AND REGULATIONS) SECTION , TO EXCHANGE THE STANDARD INDUSTRIAL CLASSIFICATION SYSTEM (SIC) WITH THE NORTH AMERICAN INDUSTRIAL CLASSIFICATION SYSTEM (NAICS),. BE IT ORDAINED by the Council of the City of Berkeley as follows: Section 1. That Berkeley Municipal Code Section 23E D is amended to read as follows: D. Retail activity must be clearly ancillary to the principal activity of the property and shall meet all of the following requirements: 1. Signs for ancillary retail uses shall be of such a size and character as to clearly indicate that the retail use is the ancillary, not the primary, use of the site; 2. Retail floor area shall not exceed 1,500 square feet of floor area, unless a Use Permit for an ancillary retail area of up to 3,000 square feet is approved pursuant to Section 23E I concurrently with the establishment of the primary use; provided that in no event may retail floor area exceed 10% of total usable floor area, exclusive of any indoor parking area. No ancillary retail use may be established after the primary use is established; 3. There shall be no outdoor sales area or food service seating in an ancillary retail use. Section 2. That Berkeley Municipal Code Section 23E is amended to read as follows: 23E Physical Changes to Buildings: Construction of New Floor Area, Conversions of Existing Buildings, Requirements for Use Permits A. Creation of new floor area includes construction of new buildings or accessory buildings, additions to existing buildings or the installation of new floor or mezzanine levels within or onto existing buildings. B. The construction of 20,000 square feet or more of new floor area requires a Use Permit. Construction of more than 20,000 but less than 40,000 square feet requires an Administrative Use Permit, and the construction of 40,000 square feet or more shall require a Use Permit and a Public Hearing.

7 C. Use Permits required for conversions of existing space are set forth in Table 23E Previously separated spaces combined into a larger space require a Zoning Certificate. Size of space prior to conversion Table 23E Conversion (Division of Space) Regulations Initial space being divided into 2 or 3 spaces Size of space prior to conversion Size of space prior to conversion Size of space prior to conversion 0-15,000 sq ft 0-15,000 sq ft 0-15,000 sq ft 0-15,000 sq ft 15,001-39,999 sq ft 15,001-39,999 sq ft 15,001-39,999 sq ft 15,001-39,999 sq ft 40,000 sq ft or more 40,000 sq ft or more 40,000 sq ft or more 40,000 sq ft or more Initial space being divided into: 2-5 Space 6-9 Space 10 or More Spaces ZC AUP UP(PH) Section 3. That Berkeley Municipal Code Section 23E is amended to read as follows: 23E Physical Changes to Buildings: Construction of New Floor Area, Conversions of Existing Buildings, Requirements for Use Permits A. The construction of 20,000 square feet or more of new or added Gross floor area of 20,000 square feet or more shall not be created unless a Permit is obtained. Creation of more than 20,000 but less than 40,000 square feet shall require an Administrative Use Permit. Creation of 40,000 square feet or more shall require a Use Permit. Creation of new floor area includes construction of new buildings or accessory buildings; additions to existing buildings; or the installation of new floor or mezzanine levels within or onto existing buildings. B. Permits required for divisions of existing space are set forth in the following table. If spaces of any size which were previously separated are being combined into a larger space, a Zoning Certificate shall be obtained. Size of space prior to conversion Table 23E Conversion (Division of Space) Regulations Initial space being divided into 2 or 3 spaces Smallest space less than 10,000 sq ft Smallest space 10,000 sq ft or greater Initial space being divided into 4+ spaces 0-25,000 sq ft AUP ZC UP(PH) Page 7

8 25,001-39,999 sq ft AUP AUP UP(PH) 40,000 sq ft or greater Initial space being divided into: UP(PH) UP(PH) UP(PH) 2-5 Spaces 6-9 Spaces 10 or More Spaces ZC AUP UP(PH) Section 4. That Berkeley Municipal Code 23E is amended to read as follows: 23E Physical Changes to Buildings: Construction of New Floor Area, Conversions of Existing Buildings A. Creation of new floor area includes construction of new buildings or accessory buildings; additions to existing buildings; or the installation of new floor or mezzanine levels within or onto existing buildings. B. Gross floor area of 10,000 square feet or more but less than 20,000 square feet for any use shall not be created unless an Administrative Use Permit is obtained. C. Gross floor area of 20,000 square feet or more for any use shall not be created unless a Use Permit is obtained from the Board. D. Use Permits required for building conversions of existing space are set forth in Table 23E and the findings required in Section 23E E. Previously separated spaces combined into a larger space require a Zoning Certificate. Size of space prior to conversion Table 23E Conversion (Division of Space) Regulations Initial space being divided into 2 or 3 spaces Smallest space less than 5,000 sq. ft. Smallest space 5,000 sq. ft. or greater Initial space being divided into 4+ spaces 0-15,000 sq. ft. AUP ZC UP(PH) 15,001-39,999 sq. AUP AUP UP(PH) ft. 40,000 sq. ft. or UP(PH) UP(PH) UP(PH) more Initial space being 2-5 Spaces 6-9 Spaces 10 or More Spaces divided into: ZC AUP UP(PH) Section 5. That Berkeley Municipal Code Section 23E A is amended to read as follows: Page 8

9 23E Special Provisions: Changes of Use/Removal of Floor Area Used for Material Recovery Enterprise, Manufacturing, Wholesale Trade or Warehousing A. Notwithstanding the provisions of Section 23E , no floor area in a building in which at least 33% of the floor area is used for any aspect of a Material Recovery Enterprise, manufacturing, warehousing or wholesale trade may be changed to other uses other than Material Recovery Enterprise, Manufacturing, Warehousing, or Wholesale Trade without a Use Permit, except: without a Use Permit, except: 1. That floor area which has been used for Material Recovery Enterprise, manufacturing, warehousing or wholesale trade may be changed to other uses which are an integral part of a Material Recovery Enterprise, manufacturing, warehousing or wholesale trade establishment without a Use Permit, provided that such space does not exceed 25% of the total floor area of the establishment; or 2. As otherwise provided in this section. Section 6. That the definitions of Manufacturing Use, Light Manufacturing and Primary Production Manufacturing in Berkeley Municipal Code Section 23F are amended to read as follows: Manufacturing Use: Primarily engaged in the mechanical or the chemical transformation of materials or substances into new products. Manufacturing activities include, but are not limited to, assembly, baking, brewing, fabrication, milling, processing, refining, smelting and treatment and any other uses determined by the Zoning Officer. Except as otherwise provided in this chapter, Manufacturing Uses are defined, and distinguished from non-manufacturing uses, in Division D (SIC codes inclusive) of the Standard Industrial Classification (SIC) Manual, 1987 edition in the North American Industrial Classification Manual ( ). Light Manufacturing: Primarily involved in baking, brewing, fabricating, milling, processing and other similar forms of mechanical and chemical treatment. Light manufacturing uses are generally in the following groups in the Standard Industrial Classification (SIC) North American Industrial Classification System (NAICS): Light Manufacturing Uses Apparel and Other Textile Mill Products Electronic and Electric Equipment, except semiconductors SIC CodeNAICS CODE Fabricated Metal Products Food Processing Furniture and Fixtures Industrial Machinery and Equipment , , , , ,333319, , , , , Page 9

10 Instruments and Related Products Leather and Leather Products, except leather tanning Lumber and Wood Products, except logging Miscellaneous Manufacturing Paper and Allied Products, except paper, pulp and paperboard mills Perfumes, Cosmetics and Toilet Preparations Printing and Publishing, except publishing without printing Rubber and Miscellaneous Plastic Products Stone, Clay and Glass Products, except cement part SIC Textile Mill Products Transportation Equipment , , Primary Production Manufacturing: Primarily involved in drawing, smelting, refining, rolling and extruding to produce materials such as metals or plastic. Primary Production Manufacturing Uses are generally in the following groups in the North American Industrial Classification System (NAICS)Standard Industrial Classifications (SIC): Primary Production Manufacturing Use Chemicals and allied products, except pharmaceuticals and perfumes, cosmetics and toilet preparations Leather Tanning SIC Code NAICS CODE , , , , Paper, pulp and paperboard mills Primary Metal Industries ) Section 7. That Berkeley Municipal Code Section is amended to read as follows: Business, personal and repair services. A. Every person primarily engaged in the business of providing business, personal or repair services, or social services, or transportation services, as defined in the most practicable version of the U.S. Government printing office publication Standard Industrial ClassificationNorth American Industrial Classification System Manual, not specifically taxed by other provisions of this chapter, shall be classified within the business, personal and repair services category and pay a Page 10

11 license fee for each thousand dollars of gross receipts for services performed within the City as provided in Section B. Persons engaging in business, personal and repair services and other business activities taxed on the basis of gross receipts under different rates, as provided by this chapter, may elect to combine gross receipts at one rate and obtain one license, if the provisions of Section apply to the combined activities. Section 8. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of Council Chambers, 2134 Martin Luther King Jr. Way. Within 15 days of adoption, copies of this Ordinance shall be filed at each branch of the Berkeley Public Library and the title shall be published in a newspaper of general circulation. Page 11

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