REPORT TO THE PLANNING COMMISSION June 1, 2022 FROM: JENNIFER CLARK, Director Planning and Development Department SUBJECT ..Title Consideration of Resolution to initiate a text amendment to Article 16 of Chapter 15 of the Fresno Municipal Code adding the Cleaner and Greener Neighborhood Industry Overlay District (Citywide). 1. RECOMMEND CONSIDERATION to adopt a resolution to initiate a text amendment to Article 16 of Chapter 15 of the Fresno Municipal Code adding the Cleaner and Greener Neighborhood Industry Overlay District to Article 16 of Chapter 15 of the Fresno Municipal Code. ..Body EXECUTIVE SUMMARY Pursuant to Article 58 of Chapter 15 of the Fresno Municipal Code, an amendment to the text of the Development Code may be made by a resolution of initiation by the City Council or the Planning Commission. The purpose of the Cleaner and Greener Neighborhood Industry Overlay District is to clarify and codify certain legal nonconforming uses, to allow existing uses, committed to the protection of public health and to promote a greater range of uses including green business practices in certain mixed-use districts by utilizing the best available control technology that best serves the interest of public health. BACKGROUND In December 2021, pursuant to Article 58 of Chapter 15 of the Fresno Municipal Code, the Director initiated an amendment to the text of the Development Code to introduce the Neighborhood Industry Overlay District as a new section to Article 16 of Chapter 15. Following initiation, the Director held a series of meetings with the Council District Project Review committees to receive feedback on the suggested text amendment. A significant number of thoughtful critiques were received from the committee members and from the public. As a result, prior to completing review by the District Project Review committees, the Director paused input to evaluate the comments and suggestions received. On May 6, 2022, a group of residents provided a modified version for the City to consider as an alternative to the proposed Neighborhood Industry Overlay District. The Planning Commission is being asked to consider a resolution to initiate an amendment to text to now create the Cleaner and Greener Neighborhood Overlay District. An Overlay District is a mechanism provided in the Development Code which allows for modifications to the underlying base zone district regulations. It is a zoning designation specifically delineated on the Official Zoning Map establishing land use requirements that govern in addition to the standards set forth in the underlying zoning district. The Neighborhood Industrial Overlay District was initiated in December 2021 by the Director to codify the temporary preservation of certain legal nonconforming uses for parcels that were rezoned to mixed use but currently have existing industrial uses. It was intended to provide for the orderly and planned transition of parcels with legally nonconforming industrial and heavy commercial uses to conforming mixed use development. The City determined that a legal transitional state was necessary to accommodate the subsequent users of buildings designed for industrial and commercial uses prior to the structure's obsolescence. Article 4 of Chapter 15 of the Fresno Municipal Code defines and describes how legal nonconforming uses (grandfather uses) are determined and regulated. It allows for the continued utility and economic viability of uses, structures, site features and lots which were lawfully created prior to the adoption of newer zoning but no longer conform. The Development Code calls out land use classifications in broad categories - e.g., residential, public, commercial, industrial, etc. Within those classifications there are narrower categories called land uses such as bank, warehouse, or duplex. Per Article 4, a legal nonconforming use is limited to that narrower land use definition to continue operations. Many legal nonconforming uses were constructed for flexibility under the broader land use classification. Examples include retail shopping centers, office complexes or business parks. In their development and construction, it was assumed that over time, different tenants or uses would occupy the spaces. However, for some properties, when the base zoning district map was changed, the individual uses currently occupying the property became legal nonconforming uses. The property was then limited to those specific uses in the spaces currently occupied. The limitation to the specific uses created limitations for structures built to accommodate a broader range of uses within a land use classification causing difficulty in attracting new tenants with the same use and limiting access to financing. The purpose of the Neighborhood Industry Overlay was to provide for a transition, from heavy commercial, business park, and industrial uses, to the planned mixed-use zoning over time and to regulate new uses which may conflict with surrounding residential uses. The purpose of the Cleaner and Greener Neighborhood District is to clarify and codify certain legal nonconforming uses, to allow existing uses, committed to the protection of public health and to promote a greater range of uses including green business practices in certain mixed-use districts by utilizing the best available control technology that best serves the interest of public health. This overlay shall only be applied, through the rezone process, to parcels with mixed-use (MX) designations (NMX, CMX, RMX). The overlay may also be applied concurrently with a rezone to a MX designation. It shall be used exclusively in areas which are or were previously zoned for industrial uses to promote and incentivize transition from these uses to non-industrial uses permitted in these mixed-use districts, while at the same time reducing negative public health impacts to surrounding communities from existing businesses. Any new legally nonconforming uses shall achieve a net-reduction in water use, energy use, traffic counts, noise reduction, odor generation, PM 2.5 and nanoparticles, and light spill as compared to existing legally nonconforming industrial uses, as identified in environmental studies completed in accordance with the California Environmental Quality Act (CEQA) guidelines for the purpose of protecting public health. A rezone to the Cleaner and Greener Neighborhood Overlay District will require an Initial Study to determine what environmental studies and level of CEQA is required to achieve these requirements. Per the proposed text amendment, the overlay may be applied through the rezone process and may be applied to parcels concurrently with a rezone to a MX designation. The following uses would be permitted in addition to the base district permitted uses: * Colleges and Trade Schools, Public or Private * Animal Care, Sales, and Services: Veterinary Services * Automobile/Vehicle Sales and Services: Automobile Rentals; Automobile/Vehicle Sales and Leasing; Automobile/Vehicle Repair, Major; Automobile/Vehicle Service and Repair, Minor; Service Station; Washing. * Construction and Material Yards * Custom Manufacturing * Limited Industrial * General Industrial * Research and Development * Warehousing, Storage and Distribution: Indoor Warehousing and Storage; Outdoor Storage; Personal Storage; Wholesaling and Distribution, Chemical and Mineral Storage. * Communication Facilities: Antenna and Transmission Towers; Facilities within Buildings * Freight/Truck Terminals and Warehouses * Light Fleet Based Services * Utilities, Major * Utilities, Minor The following uses could be permitted with a Conditional Use Permit (CUP) in addition to the base district permitted uses: * CRV Recycling Center * Recycling Processing Facility * Waste Transfer Facility The uses currently not permitted in the Base District and the following uses will not be permitted: * Emergency Shelter * Adult-Oriented Business * Towing and Impound, Salvage and Wrecking * Intensive Industrial * Airports and Heliports * Agricultural Processing * Agricultural Support Services * Animal Raising * Crop Cultivation * Rendering * Sales Lot, Feed Lot, Stockyard * Cannabis Dispensaries * Cotton ginning, wineries, or alcohol fuel production Development Standards for uses permitted in the base district will comply with the base district standards. For uses identified as permitted or conditionally permitted, the development standards that apply to the Industrial Light land use classification will apply. However, in order to allow for a transition to non-industrial uses, expansions that will add more than 20% in new building area will be subject to a CUP. ENVIRONMENTAL FINDINGS N/A FRESNO MUNICIPAL CODE FINDINGS Pursuant to Article 58 of Chapter 15 of the Fresno Municipal Code, an amendment to the text of the Development Code may be made by a resolution of initiation by the City Council or the Planning Commission. CONCLUSION Staff recommends the Planning Commission consider and initiate the Cleaner and Greener Neighborhood industry Overlay District as presented by members of the community. Attachments: Exhibit A - Cleaner and Greener Neighborhood Industry Overlay District