ITEM: LA-SCRAP, RECYCLING DISTRIBUTION CENTER, AP (UP, DR) ORIGINATED BY: Jin Ho Huh, 7621 Commonwealth Avenue, Buena Park, CA 9062

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1 CITY OF PITTSBURG PLANNING COMMISSION STAFF REPORT ITEM: LA-SCRAP, RECYCLING DISTRIBUTION CENTER, AP (UP, DR) ORIGINATED BY: Jin Ho Huh, 7621 Commonwealth Avenue, Buena Park, CA 9062 SUBJECT: This is an application by Douglas Wolf on behalf of LA-Scrap, Recycling Distribution Center, LLC, requesting a use permit to operate a processor and design review approval of plans to place a 320 square foot mobile office structure and to install equipment for the loading of scrap metal into cargo containers. Scrap metal would be received from the USS-Posco and United Spiral Pipe facilities and would be driven offsite by tractor truck to the Port of Oakland for shipping overseas. The operation would be conducted on a one-acre lease area within the USS-Posco property located at 900 Loveridge Road, in the IG (General Industrial) District. Portion of APN RECOMMENDATION: Staff recommends approval of this application, subject to conditions BACKGROUND: USS-Posco Industries is an existing local manufacturer of flat rolled steel. Posco currently owns approximately 450 acres of industrial land in the northeast area of the city; however, the majority of the company s manufacturing facilities and activities occurs on a 206-acre parcel located at the northern terminus of Loveridge Road, north of the Burlington Northern and Santa Fe (BNSF) railroad line. Posco and two of its affiliated companies recently formed a joint venture company with Pacific Metals and Iron, LLC, and Cohen Brothers of Lexington, LLC, to process excess scrap metal from the manufacturing facility for international transport and sale. The newly-formed joint venture company, LA-Scrap, Recycling Distribution Center, LLC (LA- SRDC), proposes to lease an undeveloped one-acre area central to the USS-Posco manufacturing facilities, approximately 1,100 feet northwest of the terminus of Loveridge Road, for this purpose PROJECT DESCRIPTION: Manufacturing activities at the Posco plant result in the generation of an estimated 4,000 tons excess scrap metal each month. Posco currently exports this scrap metal by rail to domestic buyers. As proposed, LA-SRDC would receive 1,000 tons monthly of excess scrap metal from USS-Posco (with the option to bid on a portion of the remainder, up to an estimated 300 additional tons). Page 1 of 2

2 In addition to scrap metal from Posco, LA-SRDC would receive up to 220 tons monthly of scrap metal from United Spiral Pipe, an existing steel pipe manufacturer operating on 45 acres located at 900 East Third Street, just west of the main Posco facilities. United Spiral Pipe also currently sells its excess scrap metal to domestic and regional buyers. The amount of scrap metal from United Spiral Pipe varies each month, depending on production at the plant. Scrap metal is currently transported off-site by truck to ports in Oakland, Richmond and Stockton. Use Permit: Between Posco and United Spiral Pipe, LA-SRDC anticipates processing between 1,100 and 1,500 metric tons (roughly equivalent to 1,200-1,650 tons) of scrap metal each month. Scrap metal received from Posco would be delivered to the LA- SRDC lease area by up to three on-site rail cars, each with a capacity of roughly 88 tons; scrap metal received from United Spiral Pipe would be delivered to the site either by rail or by truck. Once on-site, the scrap metal would be loaded by diesel-powered scrap excavator into cargo containers and then driven by truck to the Port of Oakland, from where the loaded containers would be shipped overseas to buyers in South Korea. As proposed, scrap metal would be loaded into cargo containers within hours of being delivered to the site, such that there would be no storage piles within LA-SRDC s lease area. The use would operate weekdays between 8:00 a.m. and 4:00 p.m. and would employ two people. The operation is anticipated to generate truck trips each month between the site and the Port of Oakland. Design Review: As mentioned above, the proposed LA-SRDC lease area is an undeveloped area central to the USS-Posco property. Existing improvements in the vicinity of the site include a paved internal access road that provides truck access to the site at the southwest corner of the lease area, and an existing internal rail line that extends along the east side of the lease area and provides rail access to the property. Underground power, water and sanitary sewer lines are currently in place within the boundaries of the least area. Modifications proposed to be made to the site include installation of a new, six-foot tall chain link fence on the perimeter of the lease area; a 320 square foot modular office and restroom building with accessibility ramps and a small trash enclosure adjacent; and a 12-foot tall, eight-foot wide, 40-foot long, electrically-powered Acculoader onto which cargo containers would be placed for safe and efficient loading of scrap metal. The surface of the property would be paved with 20,000 square feet of compacted aggregate, which would be the truck/tractor driving surface, and approximately 1,200 square feet of asphalt adjacent to the office building for employee parking. The office building and Acculoader would be portable structures affixed to two cement concrete pads, one measuring approximately 350 square feet and the other approximately 2,000 square feet. Page 2 of 2

3 No other modifications to the Posco property outside of the lease area are proposed with this project GENERAL PLAN/CODE COMPLIANCE: General Plan: The proposed lease area, like the whole of the USS-Posco property within which it sits, has a General Plan land use designation of Industrial. This designation is intended to provide sites for industrial processing, distribution, warehousing and similar uses (General Plan, page 2-21). The proposed use (scrap metal recycling distributor) is consistent with the types of industrial uses supported by the Industrial land use designation. The proposed use is also consistent with and complementary to the existing industrial uses (specifically, USS-Posco and United Spiral Pipe) in the vicinity of the site, and as such, is consistent with General Plan policy 2-P-37. Zoning: The property is zoned IG (General Industrial) District. The proposed use is classified in the Zoning Ordinance as a processor, which includes an establishment in which materials or items are handled or processed including their related storage and sale, and which specifically includes scrap metal salvage and handling (Pittsburg Municipal Code [PMC] section B.6). PMC section identifies processors as conditionally permitted uses in the IG District, and further limits any outdoor storage of materials to those portions of the property that would be at least 500 feet away from the river shoreline or 200 or more feet away from a public street. Although outdoor storage of scrap metal is not proposed with this project, it is noted that the proposed lease area is over 800 feet inland from the nearest point of the river shoreline. The lease area is also 1,000 feet away from the closest public right-of-way on Loveridge Road and, like other properties in the IG District, is not subject to any minimum side or rear yard setback. Parking: PMC section A establishes a minimum off-street parking requirement of one stall per 1,000 square feet of building floor area for processor uses. With less than 350 square feet of occupiable building area on-site, the three parking stalls (two standard, one handicapped accessible) proposed to be paved adjacent to the office building would exceed the minimum off-street requirements of the Zoning Ordinance and would meet the anticipated need of the operation based on the proposed number of employees. Design Guidelines (Planning Commission Resolution 9864): None of the structures (office, Acculoader and trash enclosure) proposed to be placed within the lease area would be visible from a public right-of-way. However, the utilitarian appearance of both the modular office and the Acculoader would be consistent with the industrial manufacturing environment in which they would be placed. If the modular and the adjacent trash enclosure are painted gray, then the facilities within the lease area would be complementary in color to each other (the Acculoader would be gray with red trim), Page 3 of 2

4 as well as to the industrial buildings that surround them on the Posco property, consistent with Guidelines section IV.p. Required Findings: In order to approve the use permit associated with this project, the Commission must find that the proposed use is consistent with the General Plan and zoning ordinance; is not detrimental to the health, safety and welfare of the city; will not negatively impact the surrounding neighborhood; and will not adversely affect orderly development, property values, or the tax base within the city. The standards the Commission must use when reviewing design review applications are identified in PMC chapter The standards include a determination that the project plans are of a good design that is consistent with existing development nearby and that will improve the overall appearance of the neighborhood. Environmental: This project is proposed to be developed and operated on a site that is less than five acres in size, is currently served by public utilities, and is surrounded on all sides by existing industrial operations. It is anticipated that the operation would increase air emissions associated with vehicle trips; however, the anticipated increase in emissions falls well below the recommended criteria for significance adopted by the Bay Area Air Quality Management District. As such, this proposed project is categorically exempt for the requirements of the California Environmental Quality Act (CEQA) under Class 32, Infill Development (CEQA Guidelines, section 15332). Public Notice: On February 17, 2012, in accordance with PMC section , a Notice of Public Hearing for the February 28, 2012, public hearing on this use permit and design review request was posted at City Hall and at two locations near the proposed project site; and it was mailed via first class mail to the applicant, to the property owner, to owners of property located within 300 feet of the USS-Posco property, to the Pittsburg Library, and to local service agencies expected to provide services to the business ANALYSIS: Staff believes that the findings can be made to approve this use permit and design review application, subject to conditions. As described above, the proposed processor use is consistent with the General Plan and the zoning of the property. Processors for the handling of scrap metal are identified as conditionally permitted uses on properties designated Industrial and zoned IG District. The proposed processor use is also complementary to the existing industrial uses (specifically, USS-Posco and United Spiral Pipe) in the vicinity of the site, and as such, would contribute to the continued operation of two established industrial businesses in the city, consistent with General Plan policy 2-P-37. Because the lease area is central to the Posco plant, would not provide for storage of large quantities of hazardous materials, and would be over a half-mile away from the Page 4 of 2

5 closest residence, staff does not believe that the proposed use would be detrimental to the health, safety and welfare of the city. Likewise, because of the established industrial setting of the property, staff does not believe that the proposed use would adversely affect the orderly development of property within the city nor encourage marginal development in the neighborhood. Rather, the proposed use would add improvements to the small piece of property within the Posco plant site, turning the currently underutilized acreage into a revenue and job-generating new business in the city. Staff does not anticipate that the proposed use would create a demand for public services within the city beyond that of the ability of the city to meet, in that there are existing utilities in the vicinity of the lease area, to which the facilities for the operation can be connected. However, in order to eliminate the potential for the business to purchase any stolen items or materials, and thereby minimize strain on the city s code or safety enforcement resources, staff does recommend that a condition be added to the use permit to prohibit purchase of any recyclable materials from the general public (proposed condition 2). Staff also believes that the Commission can make the findings that the proposed site improvements will contribute to a positive image of the city. Although the proposed office building, adjoining trash enclosure and Acculoader are not ornamental or decorative, the proposed additions to the site would be consistent with the utilitarian character of the manufacturing structures in the surrounding industrial area in which the property is located. Additionally, since none of the proposed additions to the property are taller than 12 feet or would be utilized after sunset or before sunrise (such that bright night lighting would be needed), the new structures would not interfere with existing views of the southern hills or northern waterfront. There are no proposed developments on land in the general area; however, the proposed additions would be consistent in appearance with existing Posco manufacturing buildings in the vicinity of the site, if the modular building and adjoining trash enclosure are painted gray to coordinate with the finish of the Acculoader and the exterior colors of the nearby manufacturing buildings. Using consistent gray colors consistently on all of the structures within the lease area would also be consistent with the intent of Design Guidelines section IV.P. Lastly, staff believes that the exterior design and appearance of the structures are not of inferior quality as to cause the nature of the neighborhood to materially depreciate in appearance and value. The modular building and loading equipment, though not desirable in highly visible areas, are appropriate for the building and site, in that the building is approximately 1,000 feet west of and not visible from the northern terminus of Loveridge Road (the closest public right-of-way), and in that the property is located in a neighborhood of other established industrial businesses in the city ACTION REQUIRED: Page 5 of 2

6 In order to approve this application as recommended by staff, the Commission must move to adopt Resolution No approving Use Permit and Design Review Application No , subject to conditions ATTACHMENTS: 1. Proposed Resolution No Applicant s Plans 3. Notice of Public Hearing 4. Vicinity Map Prepared by: Dana Hoggatt Ayers, Project Planne Page 6 of 2