Berkeley City Council
March 25, 2025

Mitigation
Measure Mit
igation Activities Implemented
by
Monitored
by Before During After
Verification of
Compliance
date:

Strip-II, along with any associated addendums, must be provided to all contractors intending to engage in work on the Project. Contractors who anticipate interacting with shallow on-site soils should consult the Risk Management Plan for guidance on construction monitoring prerequisites and for identifying the appropriate personal protective equipment (PPE), including protective measures for encountering methane.

HAZ-2
The City will coordinate site excavation activities with the San Francisco Bay Regional Water Quality Control Board to align site construction with the provisions of the Addendum to the Eastshore State Park Remediation and Risk Management Plan (RRMP) Berkeley North Basin Strip-II.

City of
Berkeley
City of
Berkeley X
Verified by:

Date:

HAZ-3
During Project construction, sample and analyze on-site soils that are being removed to characterize them prior to disposal at approved facilities.

Contractor City of
Berkeley
X Verified by:

Date:

HAZ-4
Contractors will comply with the California Health and Safety Code (HSC) and Resource Conservation and Recovery Act (RCRA) for the management, treatment, storage, and disposal of hazardous waste.

Contractor City of
Berkeley
X Verified by:

Date:
194

Office of the City Manager
2180 Milvia Street, Berkeley, CA 94704 ● Tel: (510) 981-7000 ● TDD: (510) 981-6903 ● Fax: (510) 981-7099 E-Mail: [email protected] Website: https://berkeleyca.gov/

PUBLIC HEARING
March 25, 2025
To: Honorable Mayor and Members of the City Council
From: Paul Buddenhagen, City Manager
Submitted by: Jordan Klein, Director, Planning and Development Department Subject: Establishment of M-RD Zoning District, Associated General Plan and West Berkeley Plan Amendments, and Environmental Impact Report

RECOMMENDATION
Conduct a public hearing and upon conclusion:

1. Adopt the first reading of an Ordinance (Attachment 1 ) amending Title 23 of the Berkeley Municipal Code (BMC) and the Zoning Map to establish the Manufacturing, Research & Development (M-RD) zoning district to encourage redevelopment of the former Pacific Steel Casting (PSC) site.

2. Adopt a Resolution (Attachment 2 ):
a. Approving and adopting West Berkeley Plan and General Plan amendments to be consistent with the associated Ordinance amendments; and b. Certifying the Environmental Impact Report (EIR) (SCH#2022120549) and adopt related California Environmental Quality Act (CEQA) findings, a statement of overriding considerations, mitigation measures, and a mitigation monitoring and reporting program.

SUMMARY
In response to an April 2021 City Council Referral (Attachment 3), the Planning Commission has recommended that the City Council adopt the following amendments to the Zoning Ordinance, West Berkeley Plan and General Plan:
 Establish a Manufacturing, Research and Development (M-RD) zoning district;  Include the M-RD zoning district text and map amendments in the West Berkeley Plan; and
 Incorporate the M-RD zoning district into the existing Manufacturing (M) land use designation of the Berkeley General Plan.

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

The City has prepared an EIR that evaluates the potential environmental effects of adoption and implementation of the proposed M-RD zoning and the associated Plan amendments. The EIR also evaluates a conceptual project, titled the Potential Berkeley Forge Development, that was shared with the City as part of a Zoning Map Amendment application. This conceptual project could be facilitated by adoption and implementation of the proposed M-RD zoning. The project was evaluated as a foreseeable project in the EIR to the extent that site planning details were provided (Attachment 4).

FISCAL IMPACTS OF RECOMMENDATION
The proposed Zoning Ordinance, Zoning Map, West Berkeley Plan and General Plan amendments are intended to support redevelopment of the PSC site, which would contribute to the City’s tax base. The proposed amendments may result in an increase in employment opportunities, property taxes, business license taxes and sales tax revenues due to increased business activity.

CURRENT SITUATION AND ITS EFFECTS
The PSC site, located southeast of the intersection of Eastshore Highway and Gilman Street, is a former manufacturing site that has been the subject of public concern for various reasons, including: (1) environmental conditions including contaminated soil and groundwater; (2) delayed pension benefits for hundreds of former casting plant workers that were contingent upon sale of the property (which sold in 2023); and (3) blighted and unsafe conditions created by vacant buildings and graffitied fencing. Council adopted its referral to facilitate redevelopment of the PSC site in order to address these long- standing problems. The referral requested the PSC zoning overlay include allowances to enable all Mixed-Use Light Industrial district (MU-LI) uses, and override any existing constraints on MU-LI uses for the rezoned property. This was specifically focused on removal of manufacturing floor area replacement requirements, in order to expedite environmental remediation of contaminated parcels and fund pension payment of PSC’s workers. The proposed Zoning Ordinance, West Berkeley Plan and General Plan amendments (amendments) were developed in response to this referral. The proposed ordinance revisions also reflect recent updates to the zoning ordinance for consistency with State law and other technical edits, adopted by City Council on first reading on February 25, 2025.

In summer 2022, the City Council budgeted for work to fulfill this referral. In October 2022, the Planning and Development Department received a Zoning Map Amendment application, which included the Potential Berkeley Forge Development (conceptual plan). Staff made presentations on the project to the Planning Commission in February and March 2023 and received input on the zoning concepts and environmental review scoping (Attachment 5). Based on the policy direction received from the Commission, staff then prepared an Environmental Impact Report (EIR) to evaluate the potential environmental effects of the rezoning and the conceptual development project. The proposed amendments and Draft EIR were presented to the Planning Commission in November 2024 (Attachment 6). The Commission held a public hearing to receive

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

comments on the Draft EIR and the proposed amendments, and recommended that they be forwarded for City Council adoption. The Commission also provided direction to staff to:
 Research and potentially propose more robust Transportation Demand Management (TDM) measures and reductions to onsite parking;  Research and propose open space and landscaping requirements to discourage development to the property line; and
 Explain in the staff report how existing legal non-conforming uses and future incidental uses are addressed in the proposed zoning.
(Ayes: Merker, Vincent, Moore, Ching, Mikiten, Marthinsen, Twu, Hauser, and Ghosh.

Noes: None. Abstain: None. Absent: None. (9-0-0-0)).

The proposed Zoning Ordinance amendments include:

M-RD Zoning District Boundary and Purposes
Currently, the project site is zoned Manufacturing (M). The Zoning Map would be amended to re-designate the site from M to M-RD. The proposed new M-RD district would serve the following purposes to facilitate redevelopment and environmental remediation of large sites, and to be consistent with the overall goals of the General Plan and West Berkeley Plan for manufacturing areas:

1. Support a mix of industrial and heavy commercial uses, such as light manufacturing and R&D, particularly those which can provide high-quality employment for people at all educational levels and add significantly to the tax base;

2. Allow office and laboratory uses that support light industrial and research and development uses;

3. Provide flexibility to facilitate the development and reuse of large sites with an urban campus-like environment, demonstrating high-quality design and site planning that includes amenities for employees and customers; and

4. Support the development of industrial uses that would which satisfy performance standards that protect the environment.

These purpose statements were designed to provide for “a continued economic and land use mix” called for in the West Berkeley Plan, by incorporating manufacturing, industrial, retail and office/laboratory uses to benefit Berkeley residents and businesses economically, benefit the City government fiscally, and promote the varied and interesting character of the area. They were also designed with input from the Office of Economic Development to support the needs of modern manufacturing uses (Attachment 4 to the February 1, 2023 Planning Commission staff report).

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

M-RD Allowed Uses and Permit Requirements
The allowed uses and associated zoning permit requirements proposed for the M-RD district would be similar to what is allowed in the M and MU-LI districts, with a few exceptions that are noted in Table 1 below. In summary, these exceptions are intended to support environmental clean-up efforts, encourage employment in industrial and heavy commercial industries that provide a high density of employment opportunities and add significantly to the tax base, and provide amenities for employees and customers.

Table 1: Permitted Uses
Use/Zoning District M
(Manufacturing)
MU-LI
(Mixed-Use Light
Industrial)
M-RD
(Manufacturing,
Research &
Development)
Permitted in M, Not Permitted In M-RD
Commercial Excavation UP(PH) UP(PH) NP
Dry Cleaning and Laundry Plant ZC/AUP/UP(PH) ZC NP
Industrial and Mining Products
Retail Sale

AUP AUP NP
Vehicle Wrecking AUP/UP(PH) AUP NP
Not Permitted in M, Permitted in M-RD
General Retail NP AUP AUP
Large Vehicle Sales and Rental NP AUP AUP
Live Entertainment NP ZC/AUP ZC/AUP
Public Markets NP AUP/UP(PH) AUP/UP(PH)
Permitted in MU-LI, Not Permitted in M-RD
Alcoholic Beverage Retail Sale NP UP(PH) NP
Amusement Device Arcade NP ZC NP
Theatre NP UP(PH) NP
Permitted at Lower Threshold than M or MU-LI
Laboratory NP UP(PH) AUP

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

R&D NP ZC/AUP ZC/AUP/UP(PH)
Semiconductor Manufacturing UP(PH) NP UP(PH)
UP(PH) = Use Permit with a Public Hearing
AUP = Administrative Use Permit
ZC = Zoning Certificate
NP = Not Permitted
M-RD Permit Requirements – Construction of New Floor Area A zoning permit is required to build new floor area, either as part of a new building or an addition to an existing building. The proposed permit requirements in the M-RD district, shown in Table 2 below, are intended to establish a streamlined and cost-effective permit process to encourage flexible business growth over time. The M-RD district is intended to encourage development of large sites with an urban campus-like environment. To achieve this goal, construction of 100,000 square feet or more of new floor area would require a Use Permit with a Public Hearing (UP(PH)), whereas in the MU-LI district a UP(PH) is required starting at 20,000 square feet. The proposed requirements for reconfiguring a tenant space are the same as the other districts in the West Berkeley Plan area (see Attachment 6, report to Planning Commission on Nov. 6, 2024, starting on page 8).

Table 2: New Floor Area Permit Requirements
Permit Type M-RD MU-LI
ZC Less than 60,000 sq. ft. Less than 10,000 sq. ft.

AUP 60,000 to less than 100,000 sq. ft. 10,000
to less than 20,000 sq. ft.

UP(PH) 100,00
0 sq. ft. or more 20,000 sq. ft. or more
M-RD Development Standards
Development standards for the M-RD zoning district were created to facilitate redevelopment of large sites with a range of industrial and related uses in a campus-like environment. Based on a report from the Office of Economic Development (Attachment 4 to the February 1, 2023 Planning Commission staff report), modern industrial uses require flexible spaces to accommodate the changing space needs of businesses as they grow. Also, R&D-intensive uses require high ceilings, reinforced floors, and easy- to-access loading facilities, which differ from the building space needs of traditional manufacturers. With these needs in mind, the development standards of the proposed M-RD district, summarized in Table 3 below, include many of the existing M and MU-LI district standards, with a few exceptions:

1. Maximum Main Building Height would be 55 feet to support the unique building needs of R&D and laboratory uses, which require taller ceiling heights and reinforced floors (see Attachment 6). Currently, the maximum height in all Manufacturing districts (M, MM, MU-LI) is 45 feet. However, a single development project in the M-RD district that is at least nine acres in size could

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

be constructed with a maximum building height of 105 feet (see Modifications to Development Standards section below) if the Zoning Adjustments Board makes certain findings.

2. Maximum Lot Coverage would be 80 percent to discourage buildings from being built to the property line. This regulation is intended to support the inclusion of open space and landscaped areas on the ground level, which adds to the pedestrian environment. Currently, lot coverage is not regulated in any of the Manufacturing zoning districts.

3. Minimum Usable Open Space would be required at a ratio of 20 square feet per each 1,000 square feet of gross floor area for any new building. As an example, a 100,000 square-foot building would be required to provide 2,000 square feet of usable open space on-site, and at least 800 square feet would need to be landscaped. Currently, usable open space is not required in any of the Manufacturing zoning districts. This minimum was suggested by the Planning Commission to complement the maximum lot coverage requirement to encourage amenities for employees and visitors (see Background section below).

4. Minimum Off-Street Parking would not be required for any new building.

Currently, off-street parking is required in the Manufacturing zoning districts at varying ratios depending on the use of the building. Initially, the proposed ordinance introduced a lower parking ratio for certain uses, including laboratories, R&D and office. At its November 6, 2024 meeting the Planning Commission recommended staff conduct research to reduce parking requirements (see Background section below) in order to encourage sustainable transportation and reduced Vehicle Miles Traveled (VMT) in this zoning district.

5. Minimum On-Site Loading Spaces would be reduced for R&D uses to better support the unique loading needs of this use. Research showed that other jurisdictions have lower loading space requirements for R&D uses than other manufacturing uses, and recently approved R&D projects in Berkeley have requested approval to provide less loading spaces than what the BMC requires.

The proposed M-RD on-site loading requirement reflects these more modern standards and brings them in line with nearby jurisdictions. As an example, currently, a 125,000 square foot building containing an R&D use must provide five loading spaces in all Manufacturing districts, while two spaces would be required in the M-RD district with the proposed changes (see Attachment 6).

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

Table 3: Development Standards
Regulation M & MU-LI Districts (Existing) M-RD Proposal Maximum Height 45 feet
55 feet*
See Modification of Development
Standards section (*105 feet is
allowed if conditions are met)
Maximum Floor Area Ratio
(FAR) 2.0 2.0
Minimum Setbacks, and
Building Separation Not regulated Not regulated
Maximum Lot Coverage Not regulated 80 percent
Minimum Usable Open
Space, per 1,000 square
feet of gross floor area
Not regulated 20 square feet
Vehicle: See BMC Table 23.322-4 Vehicle: No minimum required Minimum Off-Street Parking
and Minimum Bicycle
Parking
Bicycle: 1 per 2,000 sq. ft. Bicycle: Same requirements as existing
Minimum Off-Street Loading
Spaces
For commercial and manufacturing
uses 10,000 sq. ft. or more: 1
space for the first 10,000 sq. ft.
plus 1 additional space for each
additional 25,000 sq. ft.
 R&D uses 25,000 sq. ft. or
more: 1 space (25,000 –
100,000 sq. ft.); 2 spaces
(more than 100,000 to 200,000
sq. ft.; 1 space (each
additional 100,000 sq. ft.
 All other commercial and
manufacturing uses 10,000 sq.
ft. or more: 1 space for the first
10,000 sq. ft. plus 1 additional
space for each additional
25,000 sq. ft.

M-RD Modifications to Development Standards
The Zoning Ordinance currently provides an option for applicants to request modifications to development standards in the West Berkeley Plan Area.1 This section was used as a guide to provide flexibility to large development projects in the M-RD that 1 Modification of Development Standards in the West Berkeley Plan Area, https://berkeley.municipal.codes/BMC/23.406.080

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

would address the issues of public concern associated with the PSC site (i.e., environmental contamination and blight). This section of code proposes to allow flexibility in the FAR, height and coverage standards for a development project that is at least nine acres in size, which may comprise multiple parcels and blocks. The flexibility offered by this section would allow a developer to create a campus-like environment that would attract businesses and employees alike. Development standards in this section reflect the outer envelope of the conceptual development project to help illustrate what is being proposed and what has been evaluated in the EIR.

More specifically, an eligible project would be subject to a maximum building height of 105 feet. Since a 9-acre site could be bisected by the public right of way, a development project would be allowed to comply with the maximum FAR and coverage standards on a project-wide basis rather than on a parcel by parcel basis, as long as the FAR and/or coverage on an individual parcel does not exceed the maximum allowed by more than 20 percent. The eligible project as a whole must comply with the maximum FAR (2.0) and lot coverage (80 percent) allowed in M-RD. Overall, this flexibility is intended to create visual interest from both the Gilman Street entry corridor and from pedestrian level within the site, allow for open space, and maintain views.

The request would be approved by the Zoning Adjustments Board (ZAB), which would need to determine that the modifications requested would result in a better overall design that maximizes amenities for employees and visitors. As part of its approval, the ZAB could require the developer to provide assurances that a complete project would be developed, such as a reimbursement agreement between the City and the developer, surety/bond/letter of credit, or private maintenance agreement (see Attachment 6, report to Planning Commission on Nov. 6, 2024, starting on page 13).

General Plan and West Berkeley Plan Amendments
The proposed Zoning Ordinance and Zoning Map amendments also require associated amendments to the West Berkeley Plan and General Plan to ensure consistency. The proposed West Berkeley Plan amendments would incorporate the new zoning district into the Land Use Element by creating a new policy, updating the Land Use Map, and adding a description of the district to the districting concept (see Attachment 2, Exhibit A). The General Plan would be amended to add the new zoning district to the existing Manufacturing land use classification (see Attachment 2, Exhibit B).

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

Tribal Consultation (AB 52 and SB18)
Pursuant to the requirements of Assembly Bill 52 (2014, Gatto)2 and Senate Bill 18 (2004, Burton)3, City staff consulted with the Confederated Villages of Lisjan Nation (Lisjan Nation) regarding the proposed project. The goal of tribal consultation is to avoid significant effects on tribal cultural resources or to develop mutually agreed upon mitigation measures.

During consultation, the Lisjan Nation requested to incorporate a mitigation measure that requires the City to enter into consultation based on the specifics of a proposed development, even when an EIR is not required, or when only an addendum to an EIR is required. The goal of this proposed consultation would be to reduce the potential for any future project to unearth tribal cultural resources that would result in a potential impact to the significance of the resource (Impact TCR-1, Chapter 4, Section 4.3 Tribal Cultural Resources, Attachment 4, Exhibit C).

Under AB 52, consultation must be initiated by the City for all projects that require environmental review under CEQA. However, this request would require the City to initiate consultation for projects that do not require environmental review, which could potentially establish a precedent for future projects. This request is included for City Council consideration in the Alternative Actions Considered section below.

BACKGROUND
As part of the 2021 Zoning Overlay at the Pacific Steel Casting Property referral, City Council requested that staff rezone the PSC site to address a number of known issues at and around the site, including environmental contamination, blighted conditions and delayed pension payment to PSC employees. Staff from the Planning and Development Department and the Office of Economic Development worked together to research and understand property constraints and economic conditions to develop a response that addressed the goals of the referral, conformed with the City’s adopted plans and encouraged development, which is considered beneficial to the City, the community and the environment.

Funding to support implementation of the 2021 referral was made available in summer 2022. Shortly thereafter, staff from Land Use Planning and Economic Development collaborated on an approach to respond to the referral. Economic Development staff produced a report, which is Attachment 4 to the February 1, 2023 Planning Commission 2 Requires public agencies to consult with Native American tribes during the California Environmental Quality Act (CEQA) process. The legislation aims to protect tribal cultural heritage and provide a formal structure for tribes to provide input on proposed projects.
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140AB52&search_keywords= 3 Requires public agencies to consult with Native American tribes when an amendment to a local jurisdictions’ General Plan, any Specific Plan, or a designation of open space, is proposed. The legislation aims to protect tribal cultural heritage and provide a formal structure for tribes to provide input on the proposed amendment. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=200320040SB18

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

staff report, that provides insights into the economic conditions in West Berkeley and the building needs of modern manufacturers, to help ensure changes to the Zoning Ordinance would facilitate future redevelopment.

In October 2022, the City received a Zoning Map amendment application from Rhoades Planning Group on behalf of SPUR Capital Partners. The amendment requests the City re-designate the zoning of the PSC, the Clearflow Valves site, and Berkeley Forge and Tool properties, an area totaling 10.26 acres (Attachment 4, Exhibit C, Chapter 3 Project Description, Figure 3-3), from M to MU-LI. This application is consistent with the Council referral and includes a description of a conceptual development project, herein referred to as the Potential Berkeley Forge Development. The Potential Berkeley Forge Development proposes redevelopment of a 10.26-acre portion of the project site with approximately 900,000 square feet of light manufacturing, R&D, laboratory, and/or office uses. The proposed M-RD zoning amendments help to advance the Potential Berkeley Forge Development by ensuring the Zoning Ordinance would enable entitlement of a project that fell within this same development envelope and purpose. The City has not received an application for the Potential Berkeley Forge Development; however, submittal of a formal application is anticipated subsequent to adoption of the proposed zoning and plan amendments discussed in this report. It is therefore considered a reasonably foreseeable project and is evaluated in the Draft EIR at the project level, to the extent feasible. This evaluation will help streamline the environmental review process for a future project that resembles the Potential Berkeley Forge Development.

All development projects that could be constructed in the proposed M-RD district, including those that are based on the conceptual design of the Potential Berkeley Forge Development, would need to be evaluated for any potential environmental effects per CEQA requirements. Similarly, they would need to comply with the City’s municipal code and permitting process prior to entitlement.

Given the research conducted by the Office of Economic Development and the information provided in the Zoning Map amendment application, staff presented an approach to the Planning Commission in February and March 2023. Based on feedback received at those meetings, staff conducted additional research to refine the allowed uses and development standards of the proposed M-RD district. Staff also prepared a Draft EIR to evaluate the potential environmental effects of the proposed amendments, which were presented to the Planning Commission in November 2024.

Planning Commission Comments
On November 6, 2024, the Planning Commission conducted a public hearing and City staff presented amendments to Title 23 of the BMC, and conforming amendments to the West Berkeley Plan and General Plan (Attachment 6). The Commissioners expressed support for the proposed amendments and recommended that City Council adopt the proposed ordinance, with the following direction to staff:

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

1. Conduct research on providing more robust Transportation Demand Management (TDM) and opportunities to reduce parking requirements and parking onsite.
a. Regarding TDM, the Draft EIR for this project includes a requirement that any future development provide a TDM program. The purpose of this program is to ensure that vehicle demand associated with new development aligns with the City’s adopted requirements.4 In order to create any new TDM requirements for non-residential development, staff would need a referral to study new non-residential TDM and non- residential parking requirements together as part of a comprehensive project. This is because TDM and parking requirements are evaluated all together.
b. Parking maximums have not been studied in non-residential areas of Berkeley, and that research would need to be undertaken together with non-residential TDM as part of any new project.
c. Regarding parking minimums, staff are proposing to eliminate the minimum requirement for all uses in the proposed M-RD district, following the assumption that the land value in Berkeley is high, and parking is expensive to build. These dynamics would likely result in a decision to provide only the amount of parking demanded.

2. Look into development standards for landscaping and open space. a. Staff conducted research into current requirements for landscaping and open space, as well as requirements in industrial zoning districts across nearby cities. Currently, Title 23 of the BMC does not require open space in any non-residential district; however, Design Review is required for projects in those districts. A few nearby cities (Emeryville, Oakland, and South San Francisco) require either open space or landscaping in industrial zones, ranging from landscape buffers along public frontages to up to five percent of the lot area. Planning Commission’s recommendation was intended to encourage more pedestrian friendly designs, with landscaped areas and building setbacks from the property line.

Understanding this goal and leveraging research findings, staff are proposing to add an open space requirement equal to two percent of the gross floor area of any new building or addition to an existing building (see Table 3 above).

The existing BMC standards for usable open space would apply, meaning that at least 40 percent of the required open space would need to be landscaped.5 As an example, a 100,000 square-foot building would provide at least 2,000 square feet of usable open space, and at least 800 4 City of Berkeley VMT Criteria and Thresholds, June 29, 2020. https://berkeleyca.gov/sites/default/files/2022- 02/VMT-Criteria-and-Thresholds.pdf
5 Usable Open Space, BMC Section 23.304.090, https://berkeley.municipal.codes/BMC/23.304.090

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

square feet would be landscaped. Also, the Design Review process would apply to any development project in the M-RD.6 As part of this process, the Design Review Committee would have the authority to make recommendations on design of open space and landscaping.

3. Have the staff report clarify incidental uses and the legal nonconforming aspect of that. The following two definitions are provided to explain how these types of uses will be handled if City Council advances this item. a. Incidental uses: The M-RD district would allow incidental uses per the proposed use table (see Attachment 1). Incidental uses may occupy a lot and/or building that is secondary to and could be independent from the principal permitted use. For example, a cafeteria could be incidental to an R&D use. An incidental use must not exceed 25 percent of the floor area of the primary use, and if it consists of commercial sales or a different line of products or services than the primary use, the incidental use may not generate gross sales above 33 percent of the gross sales generated by the primary use.7
b. Legal non-conforming uses: With implementation of the proposed M-RD zoning, the existing legal non-conforming vehicle rental use at 600 Gilman Street would remain legal non-conforming. Title 23 of the BMC allows such uses to remain occupied in their current condition as of right, and both changes to and substantial expansions of non-conforming uses are allowed by obtaining a Use Permit.8 Also, portions of the project site and surrounding areas contain semi-vacant and vacant parcels that are conducive to temporary uses, such as contractor yards. Under the proposed M-RD zoning, a property owner could apply for a temporary use permit on any of these sites. Permit requirements vary based on the nature of the use, and this information can be found in Section

23.302.040 of the BMC.

Environmental Review
A Draft EIR was prepared for the project (see Attachment 4) that evaluates the potential environmental effects of: 1) adoption and implementation of the proposed M- RD zoning and associated Plan amendments; and 2) the Potential Berkeley Forge Development. The conceptual project was evaluated because it would be facilitated by adoption and implementation of the proposed M-RD zoning; however, it is only evaluated to the extent site planning details have been provided. 6 “Project” meaning an activity requiring a building permit or sign permit that involves any of the following: 1) Modifying the exterior of an existing structure; 2) Additions to an existing structure; 3) Demolishing all or a portion of an existing structure; 4) Removing all or part of a building facade fronting the public right-of-way; 5) Constructing a new structure; or 6) Installing a sign or replacing a sign with a different location, size, or design. 7 https://berkeley.municipal.codes/BMC/23.502.020(U)(9) 8 Berkeley Municipal Code Section 23.324.040 – Nonconforming Uses.

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

The Draft EIR was made available for review through the City’s website, at the Planning and Development Department at 1947 Center Street (2nd Floor), and at the following locations in the city:
 Tarea Hall Pittman South Branch Library, 1901 Russell Street  West Branch Library, 1125 University Avenue
 Central (Downtown) Library, 2090 Kittredge Street.

The environmental review process for the Project has included:
 December 27, 2022: A Notice of Preparation (NOP) of a Draft EIR was circulated to potentially interested parties and agencies.  February 1, 2023: The City held an EIR scoping meeting as part of the regularly scheduled Planning Commission meeting.
 October 21, 2024: A Notice of Availability for the Draft EIR was distributed to State and local planning agencies.
 October 21, 2024 – December 5, 2024 (45 days): The Draft EIR was made available for public review on October 21, 2024 and the public comment period closed on December 5, 2024.
 November 6, 2024. A Planning Commission hearing was held to receive comments from Commissioners and the public on the Draft EIR.  March 13, 2025. The Final EIR document, consisting of the Draft EIR and the Response to Comments (RTC), was published.

City Council certification is required to complete this part of the environmental review of the Project.

Draft EIR

1. Potentially Significant Impacts Identified in the Draft EIR. All environmental impacts, relevant City Standard Conditions of Approval, and mitigation measures are summarized in the CEQA Findings and Statement of Overriding Considerations (see Attachment 4, Exhibit B). Other than the impacts discussed below, all of the environmental effects of the Project can be reduced to less than significant levels through implementation of Standard Condition(s) of Approval and/or recommended mitigation measures.

The Draft EIR (see Attachment 4, Exhibit C) identified five significant and unavoidable environmental impacts in Sections 4.2, 4.5 and 4.6 related to Cultural Resources, Air Quality, and Greenhouse Gas Emissions. All other environmental effects of the proposed Project can be reduced to less than significant levels through implementation of Standard Condition(s) of Approval and/or recommended mitigation measures. The findings include a statement of overriding consideration that provides reasons the Project could be adopted even though those impacts could occur.

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

2. Alternatives. As required by Section 15126.6 of the CEQA Guidelines, an EIR must examine a range of reasonable alternatives to the proposed Project that would feasibly obtain most of the CEQA Project Objectives, and avoid or substantially lessen the Project’s significant environmental impacts.  Alternative 1: No Action Alternative. This alternative is a version of the “no project” alternative (CEQA Guidelines Section 15126.6(e)) that assumes no construction on the site would occur. The existing buildings would not be demolished and would instead remain in place, unchanged from existing conditions. The existing Manufacturing land use and zoning designations would remain, and in the City of Berkeley General Plan and West Berkeley Area Plan would not be amended.
 Alternative 2: General Plan Compliant Alternative. This alternative is a version of the “no project” alternative (State CEQA Guidelines Section 15126.6(e)) that assumes the project site would be redeveloped pursuant to the current land use and zoning designations. Implementation of the General Plan Compliant Alternative would allow for the development of approximately 1,005,365 square feet of manufacturing and industrial uses on the 11.54-acre project site. Under this alternative, the maximum height would be limited to 45 feet.
 Alternative 3: Reduced Development Alternative. This alternative assumes the project site would be limited to the PSC site, consistent with the City Council referral. The PSC overlay zoning boundary would include nine parcels totaling 354,317 square feet. These parcels are currently developed with 250,606 square feet of industrial uses (see Attachment 4, Exhibit C, Table 3.A). This alternative would also require a minimum 100-foot buffer between any existing residential use and proposed new non-residential use, including surface parking lots or structures. Accordingly, future development on the project site would need to be set back from the existing building at 1306 Third Street. Focusing development on the PSC site with a required buffer would reduce the overall buildout potential of the project site by approximately 50 percent, resulting in up to 566,300 square feet of non-residential space and a minimum of 566 off-street automobile parking spaces.
 Environmentally Superior Alternative. CEQA requires the identification of the environmentally superior alternative among the options studied, which is the alternative among those studied that has the fewest significant environmental impacts. Table 5.A in the Draft EIR indicates whether each alternative’s environmental impact is greater, lesser, or similar to that of the proposed project.

As described in Section 5.8 of the Draft EIR, the No Action Alternative would result in the fewest impacts and would be environmentally superior to the proposed project. However, if the No Action Alternative is the environmentally superior alternative, the EIR must identify an environmentally superior alternative

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

from among the other alternatives.9 None of the other alternatives would avoid the significant and unavoidable impacts to air quality or GHG emissions, due to the lack of construction details and the usage of natural gas. Of the development alternatives, Alternative 2 the “General Plan Compliant Alternative” would avoid the significant and unavoidable air quality impacts associated with construction risk, but would not avoid or reduce the significant and unavoidable historic resource impact associated with 1306 Third Street. Alternative 3 the “Reduced Development Alternative” would avoid the significant and unavoidable historic resource impact associated with 1306 Third Street, and would lower the significant and unavoidable construction health risk impacts at 1306 Third Street because the development potential would be reduced by 50 percent.

Because Alternative 3 would avoid the proposed project’s significant and unavoidable impacts on built historic resources and would have lower impacts than the proposed project as they relate to the significant and unavoidable impact to air quality, and it would meet most of the project objectives, it is considered as the Environmentally Superior Alternative.

Final EIR
The Final EIR consists of the Draft EIR and Response to Comments on the Draft EIR.

The City received written and oral comments about the Draft EIR during the official public comment period (from October 21, 2024 through December 5, 2024). All of the written comments are reproduced in their entirety in the Response to Comments document of the Final EIR. Responses to all of the comments that pertain to the EIR are addressed, including specific revisions to text in the Draft EIR that are being made to correct errors or omissions or clarify information presented in the Draft EIR. In no case do these revisions result in a greater number of impacts or impacts of a substantially greater severity than those set forth in the Draft EIR such that recirculation of the Draft EIR would be required.

Mitigation Monitoring Reporting Program (MMRP)
The EIR identifies the applicable mitigation measures that will be implemented to reduce the impacts associated with the implementation of the proposed project. CEQA requires a public agency to adopt a monitoring and reporting program (see Attachment 4, Exhibit A) for assessing and ensuring compliance with any required mitigation measures applied to proposed development.

CEQA Findings and Statement of Overriding Consideration The final EIR identifies significant environmental impacts that would result from implementation of the proposed project. The City finds that the inclusion of certain mitigation measures (see the MMRP) would reduce all but the following significant impacts to levels that are less than significant: historical architectural resources, air 9 State CEQA Guidelines Section 15126.6(e)(2).

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

quality associated with construction of the conceptual development project that would not include the demolition of the structure located at 1306 Third Street, and use of natural gas in future development generating greenhouse gas emissions. No feasible mitigation measures have been identified to reduce these impacts to a less-than- significant level or mitigation measures have been identified but would not reduce impacts to a level of less than significant; these impacts will remain significant unavoidable impacts of the proposed project.

CEQA Guidelines §15093(b) provides that when the decision of the public agency results in the occurrence of significant impacts that are not avoided or substantially lessened, the agency must state in writing the reasons to support its actions. Therefore in order to certify the EIR and proceed with the project, the City Council will need to make a Statement of Overriding Consideration, a formal statement by the lead agency that, having balanced the economic, legal, social, technological or other benefits of the proposed project, including region-wide or statewide environmental benefits, against its significant and unavoidable environmental impacts, the City finds that the proposed project benefits outweigh its unavoidable adverse environmental effects. The Statement of Overriding Considerations includes:
 The proposed project would result in remediation efforts at the project site to clean up existing environmentally contaminated soils that have contributed impacts to air quality and water quality in the neighborhood.  The proposed project, through the proceeds from the sale of the Pacific Steel Casting land would enable the funding of unpaid pensions and health benefits for former steel workers who were employed at Pacific Steel Casting. These pensions were eliminated when Pacific Steel Casting closed and filed bankruptcy.
 The proposed project would provide and retain a diversity of dense, high- quality employment opportunities in West Berkeley for people at all educational levels by allowing for a mix of industrial and heavy commercial uses, such as light manufacturing and research and development, laboratory and office. As detailed in the report prepared by the City’s Office of Economic Development5 that provides context into the current and projected economic conditions in West Berkeley, the City’s economy and innovation sector would benefit from new advanced manufacturing, software, life sciences, clean technology, food tech, and other science, technology, engineering and math (STEM) industries, specifically relating to employment, wages, wealth creation, social impacts, and location decisions.
 The proposed project fulfills the goals of the West Berkeley Plan to facilitate the development of multi-parcel sites, attract emerging business sectors, and retain and promote economic diversity in West Berkeley. By restoring derelict, environmentally blighted properties to productive industrial use, creating jobs and tax base in West Berkeley, the proposed project would implement the

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

vision of the West Berkeley Plan to maintain and improve the quality of urban life for West Berkeley residents and workers.
 The proposed project would contribute over $6 million in dedicated special assessments to be used for affordable housing, childcare, schools, and public art.
 The proposed project would contribute to increased property tax and secondary sales tax benefit to the City.
 The proposed project would facilitate new public open space and landscaping and install stormwater management systems where none exist under existing conditions. New stormwater management facilities would increase water quality and flooding resilience in the area.
 The proposed project would facilitate the construction of new sidewalk and bicycle facilities, supporting community pedestrian and bike travel in the area.

ENVIRONMENTAL SUSTAINABILITY AND CLIMATE IMPACTS
Development projections for this project and all reasonably foreseeable growth resulting from development contemplated for this project were analyzed in the EIR (Attachment 4, Exhibit C). Issues relating to Land Use and Planning (Section 4.1), Transportation (Section 4.4), Air Quality (Section 4.5), Greenhouse Gas Emissions (Section 4.6), Energy (Section 4.7), Hazards (Section 4.9), Hydrology (Section 4.10), and Biological Resources (Section 4.11) were analyzed in the EIR.

RATIONALE FOR RECOMMENDATION
The proposed zoning text and map changes and West Berkeley Plan and General Plan conforming text amendments are intended to encourage redevelopment of the former PSC site, as requested in the City Council referral.

ALTERNATIVE ACTIONS CONSIDERED
The Council could consider taking no action on the recommendations proposed by staff.

In this case, the BMC Title 23 would remain in place, and developers would remain unlikely to approach the City with a redevelopment proposal at the former PSC site.

The inclusion of a mitigation measure in the EIR proposed by the Confederated Villages of Lisjan during tribal consultation would constitute a policy decision of the City Council.

Proposed language is provided below for Council consideration:

Potential Mitigation Measure TCR-1a: Given the very high potential for disturbing Tribal Cultural Resources in this highly sensitive area, including ancestral human remains, Confederated Villages of Lisjan Nation will be allowed a 30-day comment period to provide requests for additional mitigation measures based on any specific development plans proposed by a project proponent even when a supplemental EIR is not required or where only an addendum may be required.

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments PUBLIC HEARING March 25, 2025

CONTACT PERSON
Ashley James, Senior Planner, Planning and Development Department, 510-981-7458 ATTACHMENTS:

1. Ordinance

2. Resolution
Exhibit A: Proposed West Berkeley Plan Amendments
Exhibit B: Proposed General Plan Amendments

3. City Council Referral to the Planning Commission to Establish a Zoning Overlay at the Pacific Steel Casting Property, April 20, 2021

4. Final EIR and Response to Comments
Exhibit A. Mitigation Monitoring and Reporting Program (MMRP) Exhibit B. CEQA Findings: Certifications of EIR, Rejection of Alternatives and Statement of Overriding Considerations
Exhibit C. Draft EIR and Appendices

5. Planning Commission Staff Reports, February 1, 2023 and March 1, 2023

6. Planning Commission Staff Report, November 6, 2024

7. Public Hearing Notice

ORDINANCE NO. -N.S.

AMENDMENTS TO THE ZONING DISTRICTS AND MAP CHAPTER (BMC 23.108), MANUFACTURING DISTRICT CHAPTER (BMC 23.206), SUPPLEMENTAL USE REGULATIONS (BMC 23.302), PARKING AND LOADING (BMC

23.322) AND ADDITION TO THE MANUFACTURING DISTRICT CHAPTER (BMC.23.206) TO ESTABLISH THE M-RD

MANUFACTURING, RESEARCH AND DEVELOPMENT DISTRICT
BE IT ORDAINED by the Council of the City of Berkeley as follows:

Section 1. That Table 23.108-1 Zoning Districts within BMC Chapter 23.108.020 is amended to read as follows:

Table 23.108-1: Zoning Districts

DISTRICT

SYMBOL NAME OF DISTRICT
Residential Districts
R-1 Single-Family Residential
R-1A Limited Two-family Residential
ES-R Environmental Safety Residential
R-2 Restricted Two-family Residential
R-2A Restricted Multiple-family Residential
R-3 Multiple-family Residential
R-4 Multi-family Residential
R-5 High Density Residential
R-S Residential Southside
R-SMU Residential Southside Mixed Use
R-BMU Residential BART Mixed Use
Commercial Districts

DISTRICT

SYMBOL NAME OF DISTRICT
C-C Corridor Commercial
C-U University Avenue Commercial
C-N Neighborhood Commercial
C-E Elmwood Commercial
C-NS North Shattuck Commercial
C-SA South Area Commercial
C-T Telegraph Avenue Commercial
C-SO Solano Avenue Commercial
C-DMU Downtown Mixed-Use
C-W West Berkeley Commercial
C-AC Adeline Corridor Commercial
Manufacturing Districts
M Manufacturing
MM Mixed Manufacturing
MU-LI Mixed Use-Light Industrial
MU-R Mixed Use-Residential
M-RD Manufacturing, Research and
Development
Special Districts
S Specific Plan
U Unclassified

Section 2. That Table 23.206-1 within BMC Section 23.206.020(A) be amended to read:

TABLE 23.206 1: ALLOWED LAND USES IN MANUFACTURING DISTRICTS Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Residential Uses
Accessory Dwelling Unit NP NP NP See

23.306 NP
Dwellings
Single-Family NP NP NP AUP* NP 23.206.090(B)(8)
Multi-Unit Residential NP NP NP ZC* NP 23.206.090(B)(7)&(8) Group Living
Accommodation NP NP NP UP(PH)* NP 23.206.090(B)(8)
Hotel, Residential NP NP NP NP NP
Mixed-Use Residential NP NP NP UP(PH)* NP 23.206.090(B)(8)&(9) Senior Congregate
Housing NP NP NP See 23.310 NP
Public and Quasi-
Public Uses
Child Care Center NP NP AUP* UP(PH)* AUP* 23.206.040(CB)&(DC) Cemetery/Crematory/Ma
usoleum NP NP NP NP NP
Club/Lodge UP(PH)* UP(PH)* UP(PH)* UP(PH) UP(PH)* 23.206.040(FE) Columbaria NP NP NP – NP

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Community Care Facility NP NP NP ZC* NP 23.206.090(B)(3) Community Center NP NP NP UP(PH) NP
Emergency Shelter NP NP NP – NP
Hospital NP NP NP NP NP
Library NP NP NP UP(PH) NP
Low Barrier Navigation
Center NP NP NP ZC NP
Mortuaries and
Crematories NP NP NP UP(PH)* NP 23.206.090(B)(6)
Municipal Animal Shelter UP(PH) UP(PH) UP(PH) – UP(PH)
Nursing Home NP NP NP UP(PH) NP
Park/Playground NP NP NP UP(PH)* NP 23.206.040(C)
Public Safety and
Emergency Service UP(PH) UP(PH) UP(PH) UP(PH) UP(PH)
Public Utility
Substation/Tank UP(PH) UP(PH) UP(PH) UP(PH) UP(PH)
Religious Assembly NP NP NP UP(PH) NP
School NP NP NP UP(PH)* NP 23.206.040(C)
School, Vocational NP NP ZC* [1] UP(PH) ZC* [1] 23.206.040(Q)80(B)(12) Supportive Housing NP NP NP ZC* NP 23.302.070(I)- Supportive Housing Retail Uses
Alcoholic Beverage
Retail Sale NP NP UP(PH)*
[2] NP * NP 23.206.080(B)(3); 23.206.090(B)(2);

23.310

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Firearm/Munitions
Business NP NP NP NP NP
Industrial and Mining
Products AUP [2] AUP [2] AUP [4] NP NP
Pawn Shop/Auction
House NP NP NP NP NP
Pet Store NP NP – NP NP NP
Retail, General NP NP AUP* AUP* [3] AUP* 23.206.040(G)6.080(B)(6);

23.206.090(B)(4)
Smoke Shop NP NP NP NP NP
Personal and
Household Service
Uses
Personal and Household
Services, General NP NP NP AUP NP
Kennels and Pet
Boarding NP NP NP UP(PH) NP
Laundromats and
Cleaners NP NP NP AUP NP
Veterinary Clinic NP NP NP UP(PH) NP
Video Tape/Disk Rental NP NP NP NP NP
Office Uses
Business Support
Services NP NP AUP [6] AUP [3] AUP [6]

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Banks and Financial
Services, Retail NP NP – NP NP
Insurance Agents, Title
Companies, Real Estate
Agents, Travel Agents
NP NP – – NP
Medical Practitioners NP NP NP AUP [3] NP
Non-Chartered Financial
Institutions NP NP – – NP
Office, Business and
Professional NP ZC* [4] AUP [4] AUP [3] AUP [4] 23.206.070(B)(2) Food and Alcohol
Service, Lodging,
Entertainment, and
Assembly Uses
Adult-oriented Business - - NP NP NP
Amusement Device
Arcade NP NP ZC ZC NP 23.302.070(B)
Bar/Cocktail
Lounge/Tavern/Tap
Room/Wine Tasting
NP NP NP See

23.306310 NP
Commercial Recreation
Center NP NP – NP NP
Entertainment
Establishment NP NP – UP(PH) NP
Food Service
Establishment under -- -- AUP* AUP* AUP* 23.302.070(E)

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
5,000 sq. ft.

Food Service
Establishment 5,000 sq.
ft. or larger
-- -- UP(PH)* UP(PH)* UP(PH)* 23.302.070(E)
Group Instruction ZC ZC – ZC ZC
Health and Fitness
Facility NP NP – NP NP
Hotel, Tourist NP NP NP NP NP
Motel, Tourist NP NP NP NP NP
Theater NP NP UP(PH)* NP NP 23.206.080(B)(410)
Vehicle Service and
Sale Uses
Alternative Fuel Station AUP [4] AUP [4] AUP [4] AUP AUP [4] Gasoline/Vehicle Fuel
Station NP NP NP NP NP
Large Vehicle Sales and
Rental – NP AUP [4] NP AUP [4]
Small Vehicle Sales and
Rental – NP NP NP NP
Tire Sales and Service – – – NP NP
Vehicle Parts Store NP NP NP UP(PH) NP
Vehicle Repair and
Service UP(PH) UP(PH) UP(PH) UP(PH) UP(PH)
Vehicle Rentals NP – – NP NP
Vehicle Sales, New AUP* [7] NP NP NP NP 23.206.060(B)(3)

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Vehicle Sales, Used AUP* [7] NP NP NP NP 23.206.060(B)(3) Vehicle Wash NP NP NP NP NP
Vehicle Wrecking AUP [7] AUP [4] AUP* [4] NP NP 23.206.080(B)(511) Industrial and Heavy
Commercial Uses
Bus/Cab/Truck/Public
Utility Depot AUP [8] AUP [8] AUP* [4] UP(PH) AUP* [4] 23.206.040(B)80(B)(4) Commercial Excavation UP(PH) UP(PH) UP(PH) NP NP
Contractors Yard AUP [7] AUP [7] AUP [4] UP(PH) AUP [4] Dry Cleaning and
Laundry Plant ZC* [9] ZC [9] ZC [1] UP(PH) NP 23.206.060(B)(2) Laboratory
Commercial Physical
or Biological NP AUP [4] UP(PH)* NP AUP [4] 23.206.040(S)80(B)(5) Cannabis Testing NP AUP [4] UP(PH) NP AUP [4]
Manufacturing
Construction Products ZC* [9] ZC* [9] UP(PH)* NP UP(PH) Light Manufacturing ZC* [7] ZC* [7] ZC* [1] AUP* [3] ZC [1] 23,206.040(H); 23.206.090(B)(5) Pesticides/Herbicides/
Fertilizers NP NP NP – NP
Petroleum Refining
and Products NP NP NP – NP
Pharmaceuticals AUP [4] AUP [4] AUP* [4] – AUP* [4] 23.206.040(J)80(B)(7) Primary Production
Manufacturing AUP [4] AUP [4] NP NP NP

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Semiconductors UP(PH) UP(PH) NP – UP(PH)
Material Recovery
Enterprise - - UP(PH) - UP(PH)
Media Production ZC [10] ZC [10] ZC [10] AUP [11] ZC [10] Mini-storage NP NP NP NP NP
Recycled Materials
Processing ZC* [9] ZC* [9] UP(PH)* – UP(PH)* 23.206.040(LH);

23.206.040(M)80(B)(9)
Recycling Redemption
Center AUP [7] ZC [9] UP(PH)* AUP UP(PH)* 23.206.040(M)80(B)(9) Repair Service, Non-
Vehicle ZC* [9] ZC* [9] ZC* [1] AUP ZC* [1] 23.206.040(IG) Research and
Development - ZC [12] ZC [12] – ZC [13]
Services to Buildings
and Dwellings AUP AUP AUP AUP AUP
Warehouse ZC [9] ZC [9] ZC [1] UP(PH) ZC [1]
Warehouse-Based Non-
Store Retailer ZC [9] ZC [9] ZC [1] – ZC [1]
Wholesale Trade ZC [9] ZC [9] ZC* [1] AUP [3] ZC* [1] 23.206.040(R)80(B)(13) Incidental Uses
Amusement Devices NP NP AUP AUP AUP
Alcoholic Beverage
Service See 23.310
Cafeteria, On-Site ZC [2] AUP [2] ZC [2] AUP ZC [2]
Child Care Center NP NP See 23.206.040.B

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Columbaria – – – – –
Food Service
Establishment under
20,000 sq. ft.

AUP* AUP* AUP* AUP* AUP* 23.302.070(E)
Food Service
Establishment 20,000
sq. ft. or larger
NP AUP* NP AUP* NP 23.302.070(E)
Home Occupations NP NP NP
See

23.206.040
.B
NP
Live Entertainment,
Unamplified NP NP ZC ZC ZC
Live Entertainment,
Amplified NP NP AUP AUP AUP
Retail Sales of Goods
Manufactured On-Site AUP* [143] AUP* [154] AUP* [154] AUP* AUP* [15] 23.206.040(NI) Storage of Goods
Manufactured On-Site
(>25% gross floor area)

ZC ZC ZC AUP ZC
Wholesale Activities ZC ZC ZC AUP ZC
Other Miscellaneous
Uses
Art/Craft Studio ZC* [10] ZC [10] ZC* [10] AUP [11] ZC* [10] 23.206.040(A) ATM, Exterior and
Attached to Bank AUP AUP - AUP NP
ATM, Interior or Exterior
and Not With Bank AUP AUP AUP AUP AUP

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Circus/Carnival NP NP UP(PH)* UP(PH) UP(PH)* 23.206.040(ED) Drive-in Uses NP NP NP NP NP
Live/Work NP NP See 23.312 NP NP
Parking Lot/Structure See 23.302.070.G
Public Market, Open Air – – UP(PH)*
[165] – UP(PH)*
[16] 23.206.040(K)80(B)(8)
Public Market, Enclosed – – AUP [5] – AUP [5]
Short-Term Rental - - - ZC* NP 23.314
Urban Agriculture, Low-
Impact ZC ZC ZC ZC ZC
Urban Agriculture, High-
Impact AUP AUP AUP AUP AUP

Manufacturing Districts
ZC = Zoning Certificate
AUP = Administrative Use Permit
UP(PH) = Use Permit
-- = Permitted with an AUP, see

23.206.020(B)
NP = Not Permitted
[#] = Floor Area Permit Requirement
* Use-Specific Standards Apply

M MM MU-LI MU-R M-RD
Use-Specific Standards
Applies to uses with an asterisk following the permit
requirement (e.g., ZC*)
Notes:
[1] Requires an AUP for uses 20,000 sq. ft. to 30,000 square feet. Requires a Use Permit for uses more than 30,000 sq. ft.
[2] Not permitted 20,000 sq. ft. or more.
[3] Requires a Use Permit if 5,000 sq. ft. or more
[4] Requires a Use Permit for uses more than 20,000 sq. ft. [5] Requires a Use Permit for more than 5,000 sq. ft. of floor area. [6] Not permitted over 3,000 sq. ft.
[7] Requires a Use Permit for uses more than 40,000 sq. ft. [8] Requires a Use Permit for uses 20,000 sq. ft. to 40,000 sq. ft. [9] Requires an AUP for uses 20,000 sq. ft. to 40,000 square feet. Requires a Use Permit for uses more than 40,000 sq. ft.
[10] Requires an AUP for uses 10,000 sq. ft. to 20,000 sq. ft. Requires a Use Permit for uses more than 20,000 sq. ft.
[11] Allowed with Zoning Certificate if under 1,000 sq. ft. Requires Use Permit if over 20,000 sq. ft. [12] Requires an AUP for uses more than 20,000 sq. ft.
[13] Requires an AUP for uses 60,000 sq. ft. to 100,000 sq. ft. Requires a Use Permit for uses 100,000 sq. ft. or more.
[143] Not permitted 1,500 sq. ft. or more.
[154] Requires a Use Permit for sales area 1,501 to 3,000 sq. ft. Not permitted over 3,000 sq. ft. [165] Requires Use Permit for markets over 5,000 sq. ft.

Section 3. That Table 23.206-2 within BMC Section 23.206.030 be amended to read:

TABLE 23.206-2. NEW FLOOR AREA PERMIT REQUIREMENTS

DISTRICT/NEW GROSS FLOOR AREA PERMIT REQUIRED FOR NEW

FLOOR AREA
M, MM
Less than 20,00
0 sq. ft. ZC
20,000
to less than 40,000 sq. ft. AUP
40,000
sq. ft. or more UP(PH)
M-RD
Less than 60,00
0 square feet ZC
60,000
to less than 100,000 square
feet AUP
100,00
0 square feet or more UP(PH)
MU-LI
Less than 10,00
0 sq. ft. ZC
10,000
to less than 20,000 sq. ft. AUP
20,000
sq. ft. or more UP(PH)
MU-R
Less than 5,000
sq. ft. ZC
5,000 to less than
10,000 sq. ft. AUP
10,000
sq. ft. or more UP(PH)
Section 4. That BMC Section 23.206.030(B) be amended to read:

B. Tenant Space Reconfiguration.

1. Reconfiguration of tenant space in an existing building in the M, MM, MU-LI, and M-RD districts requires a permit as listed in Table 23.206-3.

2. In the MU-R district, tenant space reconfiguration projects affecting 5,000 square or more require a Use Permit.

3. As used in this section, tenant reconfiguration means any physical change to an existing building’s walls separating leased spaces so as to change:

(a) The number of lease spaces for commercial businesses; or (b) The square footage of leasable floor area of an existing commercial lease space.

TABLE 23.206-3: TENANT SPACE RECONFIGURATION REQUIREMENTS IN

THE M, MM, MU-LI, AND M-RD DISTRICTS

TENANT SPACE RECONFIGURATION

PROJECT

PERMIT REQUIRED FOR TENANT

SPACE RECONFIGURATION

PROJECT
Previou
sly separated spaces
combin
ed into a larger space ZC
Creatin
g 2 to 5 separate new tenant
spaces ZC
Creating 6 to 9 separate new tenant
spaces AUP
Creatin
g 10 or more separate new
tenant space
s
UP(PH)

4. MM and M-RD District Findings. To approve an AUP or Use Permit for a tenant reconfiguration project in the MM or M-RD district, the review authority must find that the conversion is necessary to implement the purpose of the district.

5. MU-LI District Findings. To approve a Use Permit for a tenant reconfiguration project in the MU-LI district, the review authority must find that the reconfiguration would not create or contribute to a shortage of industrial spaces in West Berkeley for spaces of the size being converted and either:
(a) The reconfiguration can be reasonably expected to better serve the purposes of the district than leaving the space intact; or
(b) The reconfiguration would create spaces which could cross-subsidize larger industrial spaces.

Section 5. That BMC 23.206.040 be amended to read:

23.206.040 Use-Specific Regulations
A. Art/Craft Studios in the M, and MM, and M-RD Districts. Art/craft studios are allowed in the M, MM and M-RD and MM districts only as workspaces. Live/work is not permitted.

A.B. Bus/Cab/Truck/Public Utility Depot in the MU-LI and M-RD Districts. A Use Permit is required for a bus/cab/truck/public utility depot in the MU-LI or M-RD district if the lot is over 20,000 square feet, regardless of use floor area.

B.C. Child Care Centers in the MU-LI, and MU-R, and M-RD Districts. Table

23.206-4 shows permit requirements for child care centers in the MU-LI, and MU-R, and M-RD districts.

TABLE 23.206-4: MU-LI, AND MU-R, AND M-RD CHILD-CARE

CENTER PERMIT REQUIREMENTS

USE CHARACTERISTIC PERMIT REQUIRED
Incidental Use
Providing childcare for
employees only ZC
Providi
ng childcare for non-
emplo
yees AUP
Principal Use UP(PH)
C.D. Child-Serving Uses in the MU-LI, and MU-R and M-RD Districts.

1. As used in this section, "child-serving use" means a school, child care center, family day care, or park/recreational facility used by children.

2. Before acting on an application to establish or expand a child-serving use in the MU-LI, or MU-R, or M-RD districts, the applicant shall prepare and submit to the City an appropriate risk analysis or risk assessment, as determined by the City, that evaluates the risk to children in the use from other activities near the site.

3. All child-serving uses in the MU-LI, and MU-R and M-RD districts must notify in writing, on a form approved by the City, all parents of children in the child-serving use that the use is in the MU-LI, or MU-R or M-RD district, light manufacturing is a permitted activity in the district, and that primary production manufacturing or construction products manufacturing may be permitted uses in adjacent districts.

The child-serving use must require each parent or guardian to confirm in writing that they have read and understood this information. Written confirmations shall be returned to the child-serving use and maintained at the use for City review.

4. To approve an AUP or Use Permit to establish or expand a child-serving use, the review authority must find that:
(a) The child-serving use is not incompatible with adjacent and nearby uses, including industrial uses;
(b) The risk analysis or risk assessment shows that there is not significant risk to children in the use from other activities near the site; and (c) The applicant has made adequate provisions to comply with the

parent/guardian notification requirement in Paragraph (3) above.

D.E. Circuses and Carnival in the MM, and MU-LI, and M-RD Districts. Circuses and carnivals are allowed in the MM, and MU-LI, and M-RD districts only as a temporary use.

F. Club and Lodges in the M, MM, and MU-LI, and M-RD Districts. Clubs and lodges are allowed in the M, MM, and MU-LI and M-RD districts only for persons working in the district.

E.G. General Retail in the MU-LI and M-RD Districts. Allowed general retail uses in the MU-LI and M-RD districts are limited to food product stores and building materials and garden supply stores. Other types of general retail uses are not permitted. Food product stores are not permitted if over 2,000 square feet. Building materials and garden supply stores are permitted with an AUP if under 20,000 square feet and with a Use Permit if 20,000 square feet or more.

F.H. Manufacturing Uses in the M, MM, and MU-LI, and M-RD Districts. For manufacturing uses in the M, MM, and MU-LI, and M-RD districts otherwise allowed with a Zoning Certificate, an AUP is required to establish the use within 150 feet of a residential use in a Residential District or in the MU-R district.

I. Non-Vehicle Repair Service in the M, MM, and MU-LI, and M-RD Districts. Retail sales associated with a non-vehicle repair service are not permitted in the M, MM, and MU-LI, and M-RD districts.

J. Pharmaceuticals Manufacturing in the MU-LI and M-RD Districts.

Pharmaceuticals manufacturing is allowed in the MU-LI or M-RD districts only in locations at least 500 feet from a Residential District or the MU-R district.

G.K. Public Market, Open Air in the MU-LI and M-RD Districts. Open air markets in the MU-LI or M-RD districts with 5,000 square feet or less of lot area are allowed with an AUP.

L. Recycled Materials Processing in the M and MM Districts. For recycled materials processing facilities under 10,000 square feet in the M and MM districts, an AUP is required if processing occurs outside of a building.

H.M. Recycling Facilities in the MU-LI and M-RD Districts. Recycled materials processing and recycling redemption centers are allowed in the MU-LI and M-RD districts only on lots greater than 20,000 square feet.

I.N. Retail Sale of Goods Manufactured On-Site. The following requirements apply to incidental retail sales in all Manufacturing Districts:

1. The size and character of signs for the retail use shall clearly indicate that the retail use is not the primary use of the site.

2. Maximum retail floor area: 10 percent of total gross floor area.

3. Outdoor sales of food service is not permitted.

J.O. Storage, Wholesale, Manufacturing as Incidental Use. If a storage, wholesale, or manufacturing use is allowed in the M, MM, and MU-R, or M-RD district with a Zoning Certificate, the use is allowed incidental to another permitted use without the requirement for an AUP or Use Permit.

P. Microbes or biological agents – See Section 23.302.020(E) K.Q. Noise. For purposes of the Noise Ordinance, Municipal Code Chapter 13.40, the Manufacturing Districts are considered Industry Districts.

R. Vocational Schools in the MU-LI and M-RD Districts. A vocational school in the MU-LI or M-RD district must provide training for occupations and/or industries found in the West Berkeley Plan area.

L.S. Wholesale Trade in the MU-LI and M-RD Districts. Proximity to Residential Use. For wholesale trade use in the MU-LI or M-RD districts otherwise allowed with a Zoning Certificate, an AUP is required to establish the use within 150 feet of a residential use in a Residential District or in the MU-R district.

Section 6. That BMC Section 23.206.080(B) be amended to read:

B. Land Use Regulations

1. Allowed Land Uses. See Table 23.206-1: Allowed Land Uses in Manufacturing Districts.

2. Use Permit Not Required. An existing use in the MU-LI district may be modified or intensified without a Use Permit if:
(a) A Use Permit is not required by this chapter; and
(b) The Zoning Officer determines that the modification or intensification of the use can reasonably be expected not to increase any impact regulated under environmental performance standards.

3. Alcoholic Beverage Retail Sales. Alcoholic beverage retail sales are allowed in the MU-LI district only when incidental to food product stores.

4. Bus/Cab/Truck/Public Utility Depot. A Use Permit is required for a bus/cab/truck/public utility depot in the MU-LI district if the lot is over 20,000 square feet, regardless of use floor area.

5. General Retail. Allowed general retail uses in the MU-LI district are limited to food product stores and building materials and garden supply stores. Other types of general retail uses are not permitted. Food product stores are not permitted if over 2,000 square feet. Building materials and garden supply stores are

permitted with an AUP if under 20,000 square feet and with a Use Permit if 20,000 square feet or more.

6. Pharmaceuticals Manufacturing. Pharmaceuticals manufacturing is allowed in the MU-LI district only in locations at least 500 feet from a Residential District or the MU-R district.

7. Public Market, Open Air. Open air markets in the MU-LI district with 5,000 square feet or less of lot area are allowed with AUP.

8. Recycling Facilities. Recycled materials processing and recycling redemption centers are allowed in the MU-LI district only on lots greater than 20,000 square feet.

9.4. Theaters. Only live stage performances are allowed in a theater in the MU-LI district. Motion picture theaters are not permitted.

10.5. Vehicle Wrecking. Permits required for vehicle wrecking the MU-LI district is determined by size of lot, not floor area.

11. Vocational Schools. A vocational school in the MU-LI district must provide training for occupations and/or industries found in the West Berkeley Plan area.

12.Wholesale Trade Proximity to Residential Use. For wholesale trade use in the MU-LI district otherwise allowed with a Zoning Certificate, an AUP is required to establish the use within 150 feet of a residential use in a Residential District or in the MU-R district.

Section 7. That BMC Section 23.206.100 be amended to read:

23.206.100 Permit Findings
A. All Manufacturing Districts. To approve an AUP or a Use Permit in a Manufacturing District, the review authority must find that the project:

1. Is consistent with the purposes of the district;

2. Is compatible with the surrounding uses and buildings;

3. Complies with the adopted West Berkeley Plan; and

4. Meets any applicable performance standards for off-site impacts.

B. Additional Findings. In addition to the findings in Section 23.206.100.A (All Manufacturing Districts), the review authority must also make the following findings to approve an AUP or Use Permit in each of the Manufacturing Districts.

1. M and MM Districts. The project:

(a) Is unlikely, under reasonably foreseeable circumstances, to induce a substantial change of use in buildings from manufacturing, wholesale trade, or warehousing uses; and
(b) Is designed in such a manner to be supportive of the industrial character of the district. Such physical compatibility shall include materials used; facade treatments; landscaping; lighting; type, size and placement of awnings, windows, and signs; and all other externally visible aspects of the design of the building and site.

2. MU-LI District. The project:
(a) Is unlikely, under reasonably foreseeable circumstances, to induce a substantial change of use in buildings from manufacturing, wholesale trade, or warehousing uses;
(b) Is designed in such a manner to be supportive of the industrial character of the district. Such physical compatibility shall include materials used; facade treatments; landscaping; lighting; type, size and placement of awnings, windows, and signs; and all other externally visible aspects of the design of the building and site; and
(c) If the building and/or site is split between the MU-LI district and the C-W district, there are clear and appropriate distinctions in all design aspects between the portions of the building and site within the MU-LI district and the portions within the C-W district.

3. MU-R District. The project:
(a) Is unlikely, under reasonably foreseeable circumstances, to either induce or contribute to a cumulative change of use in buildings away from residential, live/work, light industrial, or arts and crafts uses; and (b) Is designed to be supportive of the character and purposes of the district.

23.206.100 M-RD Manufacturing, Research and Development District A. District Purpose. The purpose of the Manufacturing, Research and Development (M- RD) district is to:

1. Support a mix of industrial and heavy commercial uses, such as light manufacturing and research and development, particularly those which can provide high quality employment at all educational levels and add significantly to the tax base;

2. Allow office and laboratory uses that support light industrial and research and development uses;

3. Provide flexibility to facilitate the development and reuse of large sites with an urban campus-like environment, demonstrating high-quality design and site planning that includes amenities for employees and customers; and

4. Support the development of industrial uses which satisfy performance standards that protect the environment.

B. Land Use Regulations.

1. Allowed Land Uses. See Table 23.206-1: Allowed Land Uses in Manufacturing District.

C. Additional Permit Requirements. See Section 23.206-1: Allowed Land Uses in Manufacturing Districts.

D. Development Standards. See Table 23.206-15 for development standards in the M- RD district.

TABLE 23.206-15. M-RD DEVELOPMENT STANDARDS
Development Standards Supplemental
Standards
Lot Area, Minimum No minimum 23.304.020– Lot
Requirements
Floor Area Ratio, Maximum 2.0
Lot Line Setbacks, Minimum
Front No minimum
Rear No minimum
Interior Side No minimum
Street Side No minimum

23.304.030–
Setbacks
Building Separation, Minimum No minimum
Lot Coverage, Maximum 80% 23.304.120– Lot
Coverage
Minimum Usable Open Space, Minimum, per
1,000 square feet of gross floor area 20 square feet

23.304.090 –
Usable Open
Space
Main Building Height, Maximum 55 ft
105 [1]

23.304.050–
Building Height
[1] Maximum Main Building Height of 105 feet may be allowed pursuant to Section

23.206.100(D)(1) (Modification of Development Standards on Large Sites).

1. Modifications to Development Standards on Large Sites. (a) Purpose. The purpose of these provisions is to facilitate the development and reuse of large sites as an urban campus-like environment with high-quality design and site planning with amenities for employees and customers.

(b) Applicability. This section applies to projects located on a site of at least 9 acres, which may comprise multiple parcels and blocks, excluding intervening streets/roads/right-of-way or similar.
(c) Allowed Modification. The ZAB shall allow modifications to lot coverage, height and setback standards in Table 23.206-15, as follows, subject to the permit findings in Section 23.206.100(D)(1)(e):
i. Main building(s) may comply with the maximum FAR and coverage standards on a project-wide basis, rather than on a parcel-by-parcel basis, as follows:
a) The FAR and/or coverage for main buildings on an individual parcel shall not exceed the maximum allowed in Table 23.206-15 by more than 20 percent.
b) The project complies with the maximum allowed FAR and coverage in Table 23.206-15.
ii. Main building(s) shall not exceed a maximum building height of 105 feet. (d) Development Plan. The applicant shall submit a development plan that includes all of the following:
i. A detailed phasing plan that shows the general location and timing of all physical development, including on and off-site infrastructure, architectural plans, and locations of proposed uses; and
ii. A detailed development comparison demonstrating how the changes in development standards for the proposed project maximize amenities for both employees and customers.
(e) Findings for Approval.
i. To approve any modification allowed in this section, the ZAB shall make all of the following findings:
a) That the modification(s) to the development standard(s) are warranted to support a project that demonstrates enhanced design and site planning. Enhanced design elements shall include but not be limited to varied and unique architectural features and innovative site layouts that maximize amenities for both employees and customers. Such modification(s) shall result in a development that achieves the purposes of the M-RD district which could not be achieved by strict application of the development standards; and b) The applicant has demonstrated that each phase of development does not unduly burden future project implementation, ensures implementation of the project within a reasonable time period, and all required on and off-site infrastructure and amenities are provided. ii. To approve a Modification to Development Standards on Large Sites, the ZAB shall also make all required Use Permit findings and follow all procedures in Section 23.406.040 (Use Permits) and any additional Use

Permit findings required by the Zoning Ordinance for the use or development in the applicable district.
(f) Conditions of Approval. Additional project specific conditions may be imposed to support the findings for approval. Project specific requirements may include but are not limited to a reimbursement agreement, surety/bond/letter of credit, or private maintenance agreement. The approving body shall identify the project requirements within the Conditions of Approval.
(g) Deed Restriction. A deed restriction shall be prepared requiring compliance with the Conditions of Approval (and as amended), in perpetuity. The property owner shall file and record the deed restriction with the Alameda County Recorder’s Office.

E. Permit Findings. See Section 23.206.110 (Permit Findings).

Section 8. That BMC Section 23.206.110 be adopted to read:

23.206.110 Permit Findings
A. All Manufacturing Districts. To approve an AUP or a Use Permit in a Manufacturing District, the review authority must find that the project:

1. Is consistent with the purposes of the district;

2. Is compatible with the surrounding uses and buildings;

3. Complies with the adopted West Berkeley Plan; and

4. Meets any applicable performance standards for off-site impacts.

B. Additional Findings. In addition to the findings in Section 23.206.110(A) (All Manufacturing Districts), the review authority must also make the following findings to approve an AUP or Use Permit in each of the Manufacturing Districts.

1. M and MM Districts. The project:
(a) Is unlikely, under reasonably foreseeable circumstances, to induce a substantial change of use in buildings from manufacturing, wholesale trade, or warehousing uses; and
(b) Is designed in such a manner to be supportive of the industrial character of the district. Such physical compatibility shall include materials used; facade treatments; landscaping; lighting; type, size and placement of awnings, windows, and signs; and all other externally visible aspects of the design of the building and site.

2. MU-LI District. The project:
(a) Is unlikely, under reasonably foreseeable circumstances, to induce a substantial change of use in buildings from manufacturing, wholesale trade, or warehousing uses;
(b) Is designed in such a manner to be supportive of the industrial character of the district. Such physical compatibility shall include materials used; facade treatments; landscaping; lighting; type, size and placement of awnings, windows, and signs; and all other externally visible aspects of the design of the building and site; and
(c) If the building and/or site is split between the MU-LI district and the C-W

district, there are clear and appropriate distinctions in all design aspects between the portions of the building and site within the MU-LI district and the portions within the C-W district.

3. MU-R District. The project:
(a) Is unlikely, under reasonably foreseeable circumstances, to either induce or contribute to a cumulative change of use in buildings away from residential, live/work, light industrial, or arts and crafts uses; and (b) Is designed to be supportive of the character and purposes of the district.

4. M-RD District. The project:
(a) Is unlikely, under reasonably foreseeable circumstances, to either induce or contribute to a cumulative change of use in buildings away from industrial or heavy commercial uses; and
(b) Is designed to be supportive of the character and purposes of the district.

Such physical compatibility shall include materials used; facade treatments; landscaping; lighting; type, size and placement of awnings, windows, and signs; and all other externally visible aspects of the design of the building and site.

Section 9. That Table 23.302-2 within BMC Section 23.302.020(E) be amended to read:

Table 23.302-2. Permit Requirements for Outdoor Uses
DISTRICT/USE CHARACTERISTICS [1] PERMIT

REQUIRED
All Commercial Districts Except for C-W
Not abutting a residential district AUP
Abutting a residential district UP(PH)
C-W
Not abutting a residential district and less than 10,000 s. ft. AUP Abutting a residential district UP(PH)
10,000 sq. ft. or more UP(PH)
M, MM, M-RD [2]
Less than 20,000 sq. ft. ZC
20,000 sq. ft. or more AUP
MU-LI
Less than 20,000 sq. ft. ZC
20,000 to 30,000 sq. ft. AUP
More than 30,000 sq. ft. UP(PH)
MU-R

Not abutting a residential district AUP
Abutting a residential district UP(PH)
Notes:
[1] Size is measured as the lot area of the outdoor activity or storage. [2] In the M, and MM, and M-RD districts, permits are required only for activity or storage not ancillary to a permitted use.

Section 10. That BMC Section 23.302.070(E)(4) be amended to read:

4. MU-LI, and MU-R, and M-RD District – Findings.
(a) To approve an AUP or Use Permit to establish or expand a food service establishment in the MU-LI, or MU-R, or M-RD district, the review authority must find that the establishment of the use, given its size, location, physical appearance and other relevant characteristics, will not have a significant detrimental impact on the industrial character of the area.

Section 11. That Table 23.302-7 within BMC Section 23.302.070(G) be amended to read:

TABLE 23.302-7: PERMIT REQUIREMENTS FOR PARKING LOTS/STRUCTURES

DISTRICT PERMIT REQUIRED
Residential Districts
R-3 Use Permit for all parking lots and structures. [1]

R-S, R-SMU, R-
BMU
Use Permit for parking structures only. Parking lots are not permitted, except on lots between Acton Street and Virginia Gardens and between Peralta Avenue and Northside Avenue in the R-BMU.

All other
residential
districts
Use Permit for all parking lots and structures.

Commercial Districts
C-C, C-U Zoning Certificate for parking lots and structures with 5 spaces or fewer. Use Permit for more than 5 spaces.

C-SO AUP for parking lots and structures with 5 spaces or fewer. Use Permit for more than 5 spaces.

C-DMU AUP for parking lots with 8 spaces or fewer. Use Permit for all parking structures. Lots with more than 8 spaces not permitted.

C-N, C-E, C-

NS, C-SA
Use Permit for all parking lots and structures.

C-T Use Permit for all parking structures. All parking lots not permitted.

C-W AUP for parking lots and structures with 10 spaces or fewer. Use Permit for parking lots and structures with more than 10 spaces.

Manufacturing Districts
M, MM
AUP for parking lots and structures with 10 or fewer spaces exclusively for uses in the district. Use Permit for parking lots and structures with any number of spaces not exclusively for uses in the district.

MU-LI, M-RD
Zoning Certificate for parking lots and structures with 10 or fewer spaces exclusively for uses in the district. AUP for parking lots and structures with 11 spaces or more exclusively for uses in the district.

Use Permit for parking lots and structures with any number of spaces not exclusively for uses in the district.

MU-R
Zoning Certificate for parking lots and structures exclusively for uses in the district. Use Permit for parking lots and structures not exclusively for uses in the district.

Notes:

Parking lots and structures in the R-3 district are not permitted within the Southside Plan area
Section 12. That Table 23.322-4 within BMC Section 23.322.030(C) is hereby amended to read:

TABLE 23.322-4: REQUIRED OFF-STREET PARKING IN MANUFACTURING DISTRICTS Land Use Required Parking Spaces
Residential Uses
Accessory Dwelling
Unit None required
Dwellings None required
Group Living
Accommodation None required
Non-Residential
Uses
All non-residential
uses except uses
listed below
M-RD District: None required
All Other Districts: 2 per 1,000 sq. ft.

Art/Craft Studio
M-RD District: None required
All Other Districts: 1 per 1,000 sq. ft.

Community Care
Facility None required

Land Use Required Parking Spaces
Food Service
Establishment
M-RD District: None required
All Other Districts: 1 per 300 sq. ft.

Library 1 per 500 sq. ft. of publicly accessible floor area Laboratories M-RD District: None required
All Other Districts: 1 per 650 sq. ft.

Nursing Home 1 per 5 residents, plus 1 per 3 employees
Medical Practitioners One per 300 sq. ft.

Large Vehicle Sales
and Rental
MU-LI District: 1.5 per 1,000 sq. ft.

M-RD District: None required
All Other Districts: 1 per 1,000 sq. ft. of display floor area plus 1 per 500 sq. ft. of other floor area; 2 per service bay Manufacturing MU-R District: 1.0 per 1,000 sq. ft.

M-RD District: None required
All Other Districts: 1 per 1,000 sq. ft. for spaces less than 10,000 sq. ft.; 1 per 1,500 sq. ft. for spaces 10,000 sq. ft. or more
Storage, warehousing,
and wholesale trade
M-RD District: None required
All Other Districts: 1 per 1,000 sq. ft. for spaces of less than 10,000 sq. ft.; 1 per 1,500 sq. ft. for spaces 10,000 sq. ft. or more
Live/Work MU-LI District: 1 per 1,000 sq. ft. of work area where workers/clients are permitted
MU-R District: if workers/clients are permitted in work area, 1 per first 1,000 sq. ft. of work area and 1 per each
additional 750 sq. ft. of work area
Research and
Development
M-RD District: None required
All Other Districts: 1 per 1,000 sq. ft.

Notes:
[1] For multiple dwellings where the occupancy will be exclusively for persons over the age of 62, the number of required off-street parking spaces may be reduced to 25% of what would otherwise be required for multiple-family dwelling use, subject to obtaining a Use Permit.

Section 13. That Table 23.322-12 within BMC Section 23.322.100(A) be amended to read:

TABLE 23.322‑12: LAND USES REQUIRING OFF-STREET LOADING SPACES District Land Use [1]
R-1, R-1A, R-2 Schools 10,000 sq. ft. or more

R-2A Senior congregate housing, nursing homes and schools 10,000 sq. ft. or more
R-3 Senior congregate housing, hospitals, nursing homes, schools 10,000 sq. ft. or more
R-4, R-5 Senior congregate housing, hospitals, nursing homes, offices, schools 10,000 sq. ft. or more
R-S, R-SMU All non-residential uses 10,000 sq. ft. or more All C Districts
except C-T All commercial uses 10,000 sq. ft. or more
C-T No loading spaces required for all land uses
All M Districts
except M-RD All commercial and manufacturing uses 10,000 sq. ft. or more M-RD
Research and Development uses 25,000 sq. ft. or more; All other commercial and manufacturing uses 10,000 sq. ft. or more.

Note:
[1] Land use size is total gross floor area.

Section 14. That Table 23.322-13 within BMC Section 23.322.100(B) be amended to read:

TABLE 23.322-13: NUMBER OF REQUIRED OFF-STREET LOADING SPACES District Spaces Required [1]
Residential and
Commercial Districts
1 space for the first 10,000 sq. ft. plus 1 additional space for each additional 40,000 sq. ft
Manufacturing
Districts
Research and Development uses in M-RD: 25,000 to
100,000 sq. ft. – 1 space; more than 100,000 to 200,000 sq. ft. – 2 spaces; each additional 100,000 sq. ft. – 1 space.

All other uses in all other M Districts: 1 space for the first 10,000 sq. ft. plus 1 additional space for each additional 25,000 sq. ft
Note:
[1] Land use size is total gross floor area.

Section 15. Copies of this Ordinance shall be posted for two days prior to adoption in the display case located near the walkway in front of the Maudelle Shirek Building, 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.

RESOLUTION NO. ##,###-N.S

A RESOLUTION TO (A) CERTIFY THE ENVIRONMENTAL IMPACT REPORT (SCH# 2022120549) AND ADOPT RELATED CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) FINDINGS, A STATEMENT OF OVERRIDING

CONSIDERATIONS, MITIGATION MEASURES, AND A MITIGATION
MONITORING AND REPORTING PROGRAM; AND (B) APPROVING AND

ADOPTING AMENDMENTS TO THE WEST BERKELEY PLAN, INCLUDING

AMENDMENTS TO THE LAND USE DIAGRAM AND THE LAND USE ELEMENT,

AND AN AMENDMENT TO THE GENERAL PLAN LAND USE ELEMENT

INDUSTRIAL LAND USE DESIGNATION TO RE-DESIGNATE CERTAIN PARCELS

WITHIN THE PROJECT AREA TO BE CONSISTENT WITH ASSOCIATED ZONING

TEXT AMENDMENTS TO ESTABLISH THE MANUFACTURING, RESEARCH & DEVELOPMENT DISTRICT.

WHEREAS, the City of Berkeley (“City”), in accordance with the provisions of California Government Code Section 65300 et seq., is required to adopt a General Plan for its long-range development, and further to periodically update that plan to reflect current conditions; and
WHEREAS, the City adopted the West Berkeley Plan in 1993, and adopted amendments to that plan in 1999 and 2011; and
WHEREAS, on April 20, 2021, City Council adopted a referral to the City Manager to amend the zoning ordinance for the creation an overlay at the former Pacific Steel Casting site due to the unique issues of public concern associated with the property; and
WHEREAS, pursuant to the provisions and requirements of the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“CEQA”) and the State CEQA Guidelines (Title 14, Sections 15000 et seq. of the California Code of Regulations (“CEQA Guidelines”), the City of Berkeley, as lead agency, prepared an Environmental Impact Report for the proposed project (SCH No. 2022120549) (“EIR” or “Final EIR”); and
WHEREAS, on December 21, 2022, a Notice of Preparation of a Draft Environmental Impact Report (EIR) was published to analyze the potential environmental impacts of the proposed zoning and plan amendments; and WHEREAS, on February 1, 2023, a duly noticed Draft EIR scoping hearing was held by the Planning Commission to receive comments on the scope and content of the EIR; and
WHEREAS, on February 1, 2023, the Planning Commission received a presentation on the draft zoning amendments and provided comments on the proposed zoning text; and

WHEREAS, on February 2, 2023, a duly noticed Draft EIR scoping hearing was held by the Landmarks Preservation Commission to receive comments on the scope and content of the EIR; and
WHEREAS, on March 1, 2023, the Planning Commission received a presentation on proposed revisions to the draft zoning text and provided comments on the proposed zoning text; and
WHEREAS, on October 21, 2024, a Notice of Availability/Release of a Draft EIR was issued, along with the publication of the Draft EIR itself, both of which were made available to the public/governmental agencies for review and comment; and WHEREAS, a public hearing notice was provided to the Confederated Villages of Lisjan tribe on October 23, 2024, pursuant to California Government Code Section 65092 for the public hearing held on November 6, 2024; and WHEREAS, a public hearing notice was published in the Berkeley Voice on October 23, 2024 and October 30, 2024, and posted in three public places on October 30, 2024, pursuant to California Government Code Section 65090 for the public hearing held on November 6, 2024; and
WHEREAS, on November 6, 2024, the Planning Commission held a duly noticed public hearing, received comments on the Draft EIR, and considered all public comments received, the presentation by City staff, the staff report, and all other pertinent documents regarding the proposed request, which was preceded by the distribution of notices in accordance with State and local noticing requirements; and WHEREAS, on November 7, 2024, the Landmarks Preservation Commission held a public hearing to receive comments on the Draft EIR; and WHEREAS, a Notice of Availability/Release of a Final EIR was issued and a Final EIR was published on March 13, 2025; and
WHEREAS, the Final EIR consists of the October 2024 Draft EIR and the March 2025 Final EIR; and
WHEREAS, notice of public hearing was prepared pursuant to Zoning Ordinance Section 22.04.020, Amendment-Procedures required-Planning Commission and City Council, and Gov. Code Section 65355; and
WHEREAS, on November 6, 2024, the Planning Commission held a duly noticed public hearing and took public testimony, which was preceded by the distribution of notices in accordance with State and local noticing requirements; and, after conducting and closing the public hearing, recommended that the City Council:
(1) Adopt a Resolution, as recommended by the Planning Commission to (a) Adopt an Ordinance, as recommended by Planning Commission, amending Title 23 of the Berkeley Municipal Code (BMC) to create the Manufacturing, Research And

Development District, and make conforming changes to other BMC sections, as well as adopt Zoning Map changes, and (b) Adopt a Resolution, as recommended by Planning Commission to (a) amend the West Berkeley Plan Land Use Diagram to redesignate certain parcels from Manufacturing (M) to Manufacturing, Research and Development (M-RD), and (b) amend the West Berkeley Plan Land Use Element text to incorporate the new M-RD district, and (c) amend the General Plan Land Use Element to incorporate the new M-RD district into the Manufacturing Land Use Designation; and WHEREAS, the proposed Zoning Ordinance and Zoning Map amendments are consistent with the General Plan and any applicable specific plan or area plan. The zoning ordinance amendments are consistent and compatible with the General Plan, as the proposed Manufacturing, Research and Development (M-RD) district will support manufacturing and industrial uses necessary for a multi-faceted economy and job growth, consistent with General Plan Policy LU-33. Further, the zoning ordinance amendments are consistent with the West Berkeley Plan, as the M-RD district designates land for manufacturing employment, provides development standards to expand the light manufacturing sector, and provides space for office, service, laboratory and R&D businesses, consistent with Goal 1; and WHEREAS, the proposed Zoning Ordinance and Zoning Map amendments are consistent with state law. The zoning ordinance amendments are consistent with state law because they do not reduce the intensity of use allowed under the existing General Plan or zoning pursuant to Gov. Code section 66300(b)(1). Further, staff prepared an EIR in accordance with CEQA Guidelines to evaluate the potential environmental effects of adoption and implementation of the proposed zoning and General Plan and West Berkeley Plan amendments, as well as the Berkeley Forge Development to the extent site planning details have been provided; and
WHEREAS, the proposed Zoning Ordinance and Zoning Map amendments will not be detrimental to the public interest, health, safety, convenience, or welfare. The zoning ordinance amendments serve the public interest by facilitating development of a former manufacturing site known to have a number of problems of public concern, including environmental contamination, former PSC workers awaiting receipt of their pension benefits contingent upon a future sale of the property, and neighborhood blight and safety concerns resulting from an eight-acre multi-block area of vacant buildings and graffitied fencing around the property. The zoning ordinance amendments support development of the site to contribute to the tax base and economic vitality in Berkeley, which in turn contributes positively to the community. The zoning ordinance amendments will not result in the immediate approval of any specific development project. Any future development project will continue to be subject to the City’s development and environmental review procedures; and
WHEREAS, the proposed Zoning Ordinance and Zoning Map amendments are internally consistent with other applicable provisions of the Zoning Ordinance. The Zoning Ordinance amendments to create the M-RD district include non-substantive revisions to the Zoning Ordinance to ensure internal consistency; and

WHEREAS, the affected site is physically suitable in terms of design, location, shape, size, and other characteristics to ensure that the permitted land uses and development will comply with the Zoning Ordinance and General Plan and contribute to the health, safety, and welfare of the property, surrounding properties, and the community at large. The proposed Zoning Map Amendment to create the M-RD district results in an approximately 11-acre area that is well-defined and uniform to facilitate potential redevelopment. The M-RD district is located at a designated industrial entry corridor to Berkeley, and continues to implement the objectives and policies of the General Plan and West Berkeley Plan, specifically West Berkeley Plan’s Goal 1 of providing for an economic and land use mix that incorporates manufacturing and office/laboratory uses to benefit Berkeley businesses and the City and promote the varied and interest character of the area. Further, the proposed M-RD district will provide consistency with the Zoning Ordinance and General Plan by locating manufacturing land uses in an area designated for industrial land use. The health, safety and welfare of the property, surrounding properties, and community at large will be served by approval of the proposed Zoning Map Amendment because it will ensure that that former Pacific Steel Casting property will be redeveloped over time in an attractive and consistent manner, that environmentally contaminated soils will be remediated, and that significant employment opportunities at all education levels will be created in the industrial area of Berkeley; and
WHEREAS, the proposed West Berkeley Plan and General Plan amendments serve the public interest by facilitating redevelopment of a former manufacturing site known to have a number of problems of public concern, including environmental contamination, former PSC workers awaiting receipt of their pension benefits contingent upon a future sale of the property, and neighborhood blight and safety concerns resulting from an eight-acre multi-block area of abandoned buildings and graffitied fencing around the property; and
WHEREAS, the proposed West Berkeley Plan and General Plan amendments are consistent and compatible with the General Plan. Inclusion of the Manufacturing, Research and Development (M-RD) district in the General Plan is consistent and compatible with the existing General Plan Manufacturing Land Use designation and Policy LU-33 – West Berkeley Plan, as the district purposes, allowed uses and development standards intend to maintain and preserve areas of Berkeley for manufacturing and industrial uses necessary for a multi-faceted economy and job growth and will help maintain a full range of land uses and economic activities including manufacturing. Further, inclusion of the M-RD district in the West Berkeley Plan and related amendments to the West Berkeley Plan are consistent and compatible with the West Berkeley Plan, as the M-RD district designates land for manufacturing employment, provides development standards to expand the light manufacturing sector, and provides space for office, service, laboratory and R&D businesses. Therefore, these amendments further the West Berkeley Plan’s Goal 1 of providing for an economic and land use mix that incorporates manufacturing and office/laboratory uses to benefit Berkeley businesses and the City and promote the varied and interest character of the area; and

WHEREAS, the potential effects of the proposed West Berkeley Plan and General Plan amendments have been evaluated and have been determined not to be detrimental to the public health, safety, or welfare. The General Plan and West Berkeley Plan amendments serve the public interest by facilitating redevelopment of a former manufacturing site known to have a number of problems of public concern, including environmental contamination, former PSC workers awaiting receipt of their pension benefits contingent upon a future sale of the property, and neighborhood blight and safety concerns resulting from an eight-acre multi-block area of vacant and disused buildings and graffitied fencing around the property. These amendments support redevelopment of the site to contribute to the tax base and economic vitality in Berkeley, which in turn contributes positively to the community. These amendments will not result in the immediate approval of any specific development project. Any future development project will be subject to the City’s development and environmental review procedures; and
WHEREAS, all documents constituting the record of this proceeding are and shall be retained by the City of Berkeley Planning and Development Department, Land Use Planning Division, at 1947 Center Street, Berkeley, California.

NOW, THEREFORE, IT BE RESOLVED that the Council of the City of Berkeley, as the final decision-making body for the lead agency, hereby certifies that the Final EIR has been completed in compliance with CEQA and reflects the independent judgment and analysis of the City.

BE IT FURTHER RESOLVED, that no recirculation of the EIR is required.

BE IT FURTHER RESOLVED, that the City Council adopts and incorporates into the Project all of the mitigation measures that are within the responsibility and jurisdiction of the City and that are identified in the CEQA Findings.

BE IT FURTHER RESOLVED, that the City Council adopts and incorporates by reference into this Resolution the Mitigation Monitoring and Reporting Program (Exhibit A).

BE IT FURTHER RESOLVED, that the City Council as the final decision-making body for the lead agency, hereby adopts and incorporates by reference into this Resolution the CEQA Findings and Statement of Overriding Considerations (Exhibit B) with regard to the significant environmental effects of the project.

BE IT FURTHER RESOLVED by the City Council that the West Berkeley Plan Land Use Diagram and text is hereby amended, as shown in Exhibit A, and the General Plan Manufacturing Land Use Designation is hereby amended, as shown in Exhibit B.

BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to make non-substantive, technical conforming edits (e.g., correction of typographical errors and/or clerical errors) to the Berkeley Municipal Code, including

but not limited to page, figure or table numbering, or internal cross-references to amended or new sections of the Berkeley Municipal Code, and to return to the Planning Commission and City Council for major revisions only.

BE IT FURTHER RESOLVED that nothing in this Resolution shall be interpreted or applied so as to create a requirement, power, or duty in conflict with any federal or State law.

Exhibits
A: Draft West Berkeley Plan amendments
B: Draft General Plan amendments

EXHIBIT A
DRAFT

WEST BERKELEY PLAN AMENDMENTS
Revisions are proposed to Section IV, “Goals and Policies.” The following text and proposed modifications represent page 35 of the West Berkeley Plan (1993) Goal 2:

Channel development—both new businesses and residences and the expansion of existing businesses—to districts various which are appropriate for the various existing elements of the West Berkeley land use mix.

Rationale:

The Preferred Land Use Concept was based on the concept of channeling different types of uses to different parts of West Berkeley, within the context of its overall mix. It therefore developed a new zoning districting plan for West Berkeley. This Goal and its associated policies set forth the rationales for creating each of the districts.

Policies:

A. Create a Manufacturing district as a general industrial district, where the full range of existing manufacturers—both “heavy” and “light”—can function without interference from other types of uses.

B. Create a Mixed Manufacturing district as a general industrial district, where both heavy and light manufacturers can function, along with “biotech” industries and office users which can recycle the upper stories of buildings.

B.C. Create a Manufacturing, Research and Development district where a range of industrial uses can function, while providing an opportunity for research and development, office/laboratory and retail uses to operate in proximity to an industrial entry corridor.

C.D. Create a Light Manufacturing district which allows a wide range of light manufacturers to continue to operate and expand and limits loss of their spaces to other uses, while providing an opportunity for office development where it will not unduly interfere with light manufacturing uses, and for laboratory development in appropriate locations.

D.E. Create a Mixed Residential district as a special mixed use district which will recognize and support the continued evolution of a unique mix of residential, light industrial, and arts and crafts uses, with a particular effort to strengthen residential concentrations existing there.

E.F. Create a Commercial district which will foster the continued vitality of West Berkeley’s neighborhood and regional serving retail trade, in as pedestrian-friendly a manner as possible.

F.G. Maintain Residential districts which will provide decent, safe, and sanitary living environments for a wide range of types of household.

Revisions are proposed to Section V, “The Land Use Districting Concept of the Plan” The following text and proposed modifications represent pages 37 through 39 of the West Berkeley Plan (1993)

V. THE LAND USE DISTRICTING CONCEPT OF THE PLAN
One of the most important parts of the West Berkeley Plan is its land use concept. The land use concept is designed to guide West Berkeley’s evolution through at least the year 2005. The concept lays out a completely revised set of land use districts for West Berkeley (see Map 1). These districts are designed to become new zoning districts once the final Plan is adopted.

The concept represents a balance between a strong emphasis on the need to conserve desirable existing uses and the need to allow reasonable evolution and development. It seeks to balance the legitimate, yet sometimes conflicting interests of the many “stakeholders” in West Berkeley—residents, manufacturers, workers and their unions, retailers, property owners, the University, the City itself, and many others. The Plan land use concept seeks to give clear guidance on what activities are desired where within Berkeley, yet allow the continued development of a creative, exciting mixed use area. For the first time in West Berkeley, the land use concept provides a clear gradation of uses and development intensity from the residential areas, through mixed use areas to the manufacturing areas.

Overview of the Districting Concept
While the concept was developed through an intensely participatory process, which required numerous tradeoffs and compromises from all participants (see the Process section), there is nonetheless an underlying logic to the concept. The concept recognizes that, although West Berkeley is, on the whole, an area with very mixed uses, individual areas within it do have certain predominant uses. Other areas have a mix of uses, but they do not generally have the full range of uses from “heavy” manufacturing to single family detached residential (see Figure 1-4 for a diagrammatic depiction of the varying mix of uses in the Plan’s land use districts). There are 6 7 land use designations (types of zoning) for the whole of West Berkeley.

Some areas have a use mix dominated by “heavy” and “light” manufacturing, these are designated as the Manufacturing and Mixed Manufacturing districts. In the northwest section of West Berkeley, near the Gilman Street entry corridor, a range of industrial uses can function, as well as research and development, office/laboratory and retail use, this area is designated as Manufacturing, Research and Development. In much of West Berkeley, light manufacturing and other light industrial uses (e.g. auto repair) are the primary land use, these areas are designated as Mixed Use/Light Industrial district. Retail commercial concentrations have developed, not only along San Pablo and University Aves., but around 4th & University and 7th & Ashby as well. These areas were designated Commercial. Some areas mix industrial and residential uses closely together—these areas have been designated Mixed Use/Residential. The remaining areas are overwhelmingly residential, and remain in their existing residential zoning (whether it be R-1A, R3, or R4). This pattern is described in more detail in the following section.

In addition to this overall concept, there were a number of principles which guided the development of the land use concept. Most important among these were:
 New land use districts/zones should recognize the existing character of an area, and create as few non-conformities as possible;

 The zoning should allow desired development in an area (e.g. residential infill, expansion of existing manufacturers), but generally not permit a radical change of area character;
 Although they are not the only consideration, the desires of businesses, property owners, and residents in a particular area are especially important in developing districting/zoning for that area;
 Zoning should specify, as clearly as possible, permitted and prohibited uses in an area, to give guidance to applicants (for permits) and to reduce permit processing time;
 Manufacturing, wholesaling, and warehousing space should be maintained in those uses as much as possible, to meet the Council/Planning Commission mandate to maintain manufacturing jobs;
 All uses, even those permitted in a zone, are subject to review for environmental impacts. However, whether an Environmental Impact Report (EIR), an Initial Study, or other environmental document is needed will be determined by the nature and scale of an application;
 Existing residential clusters within mixed use areas should be strengthened and legitimized;
 Residents should be buffered from the effects of heavy industrial uses as much as possible;
 Retail uses should be clustered, to strengthen existing retail areas, to make them for walkable, and to prevent retail sprawl.

Figure 1-4: The Spectrum of Permitted Uses
West Berkeley Plan Districts Generally Permitted Uses by District

Specific Districts in the Concept
General Manufacturing Districts
There are 2 small districts in the Plan which allow process intensive, “heavier” manufacturing uses, as well as light industrial uses. These are the Manufacturing District in northwestern West Berkeley (largely west of the railroad tracks), and the Mixed Manufacturing District in southwestern West Berkeley (around the Colgate and Miles sites). These areas are the present home to most West Berkeley "heavy" industries such as steelmaking and ink production. These districts are closely targeted to industrial uses, and generally do not allow residential, live-work, retail, or office uses (except on upper stories in the Mixed Manufacturing District). Office, laboratory, and retail uses which are integral to a manufacturing operation (e.g. a store selling products made on site) are permitted in the district. These small areas—some 94 82 acres in the Manufacturing zone and 79 acres in the Mixed Manufacturing zone—most closely follow the model of “Protected Manufacturing Districts” that manufacturing advocates sought for West Berkeley. While industrially oriented, the Mixed Manufacturing district is somewhat less tightly targeted than the Manufacturing District, allowing freestanding laboratories and office uses on upper stories, so that multi-story buildings in the district can be more easily used.

Manufacturing, Research & Development District
The district is proposed for the area around the former Pacific Steel Casting and Berkeley Forge and Tool Inc. sites in northwest West Berkeley (west of the railroad tracks), at Gilman Street and Eastshore Highway. This district targets industrial and research and development uses, office and business support uses are permitted along with select types of retail uses and generally does not allow residential, live-work, or commercial uses. Office uses are permitted, along with some types of retail; however, most types of retail are not allowed. Due to its location along a key industrial entry corridor, this district provides flexibility in the FAR and lot coverage requirements for large multi-acre sites in order to encourage high-quality site planning and design.

EXHIBIT B
DRAFT

GENERAL PLAN AMENDMENTS
Revisions are proposed to the Manufacturing Land Use Designation. The following text and proposed modifications represent page LU-24 of the General Plan (2002).

Manufacturing
These areas are intended to maintain and preserve areas of Berkeley for manufacturing and industrial uses necessary for a multi-faceted economy and job growth. Appropriate uses for these areas are identified in the West Berkeley Plan. Within these areas, building intensity will generally range from a Floor Area Ratio (FAR) of less than 1 to an FAR of 2. For information purposes, the compatible zoning districts for this classification are: Manufacturing (M), Mixed Manufacturing (MM), and Mixed Use-Light Industrial (MU-LI), and Manufacturing, Research and Development (M-RD), which all allow a maximum FAR of 2 and a maximum building height of 45 to 105 feet.

Rashi Kesarwani
Councilmember, District 1

ACTION CALENDAR
April 20, 2021
TO: Honorable Mayor and Members of the City Council
FROM: Councilmember Rashi Kesarwani (Author), Councilmember Taplin (Co-Sponsor)
SUBJECT: Referral to the Planning Commission to Establish a Zoning Overlay at the Pacific Steel Casting Property

RECOMMENDATION
Refer to the Planning Commission to create a zoning overlay at the Pacific Steel Casting (PSC) property in West Berkeley—currently zoned Manufacturing (M) and redesignate it as Mixed Use - Light Industrial (MULI) due to the unique issues of public concern associated with this property (described below); specifically, include in the PSC zoning overlay allowances to enable all MULI uses and override any existing constraints in the Berkeley Municipal Code for Zoning (Title 23) on such MULI uses for the PSC property.

CURRENT SITUATION AND ITS EFFECTS
The Pacific Steel Casting (PSC) property sits at the corner of Eastshore Highway and Gilman Street, extending two blocks south to Page Street with structures on either side of Second Street. Once a thriving manufacturer of custom industrial-use parts employing more than 650 workers, PSC declared bankruptcy in 2014 and permanently shuttered in 2018. The site is known to have a number of problems of public concern, including: (1) environmental contamination at the site, (2) hundreds of blue-collar workers awaiting receipt of their pension benefits as a result of a future sale of the property, and (3) neighborhood blight and safety concerns resulting from an eight-acre multi-block area of abandoned buildings and graffitied fencing around the property.

The site, which is in close proximity to the highly-anticipated reconstruction of the Gilman Interchange, has generated some interest from real estate and business representatives for numerous mixed-use light industrial uses, such as biotechnology labs, warehouse and commercial uses, or office space, among other possibilities.

The site has been on the market for more than two years without a serious buyer

ATTACHMENT 3Page 58 of 168

due in part to concerns that the current Manufacturing zoning designation limits the potential uses of the site to heavy manufacturing only. Because of the difficulty in generating a prospective buyer for the PSC site—more than two years have elapsed since the property was first put on the market—and the issues of public concern noted above, a zoning overlay specifically for the PSC site is recommended. This referral and establishment of a zoning overlay signals to prospective buyers that the City is eager to see this site reinvented and contributing to our tax base and the vitality of our post-Covid local economy.

BACKGROUND
Established in 1934 and owned for more than 80 years by the Genger and Delsol families, PSC declared bankruptcy in 2014. Prior to that, a worker class action lawsuit was filed in 2011 against the company for wage theft.1 In 2014, the company was purchased by Speyside Equity for $11.3 million. Until that time, the company had been generating $100 million in sales annually. Speyside turned the assets of PSC into a limited liability company and pledged to honor the collective bargaining agreements with the union representing the workers, including assuming pension liabilities and paying workers’ health benefits.2 The new company, Pacific Steel Casting LLC, however, failed to pay those benefits in part due to growing financial insecurity prompted by plummeting gas and oil prices which limited the need for production, and in part due to increased competition from China. It was also later discovered that Speyside used suspect financial practices that further drove the company into the ground.3
According to reporting from Berkeleyside, “The Speyside Fund, Speyside Equity, Alcast Company of Illinois, various business partners and managers, ‘looted’ $14.5 million from the West Berkeley company over a four-year period, and justified the siphoning off by ‘cooking’ the books, according to the action filed by Sarah L. Little, the bankruptcy trustee.”4 These legal entanglements encumber the land for any potential buyers, as it is predicted it will take between $27 to $30 million to make the workers and all the past creditors whole. This is in addition to the costs it will take for the environmental remediation of the property.

FISCAL IMPACT
1 See Berkeleyside, Nov. 7, 2019 article, “Buyers of Pacific Steel Casting ‘looted’ its assets, made ‘insider deals,’ according to bankruptcy trustee:” https://www.berkeleyside.com/2019/11/07/buyers-of-pacific-steel-casting-looted-its-assets- made-insider-deals-according-to-bankruptcy-trustee
2 See Berkeleysides’ Dec. 12, 2017 article, “Temporary reprieve for workers: Pacific Steel Casting to remain open through March:” https://www.berkeleyside.com/2017/12/12/reprieve-workers-berkeleys- pacific-steel-casting-remain-open-march
3 See Berkeleysides’ Nov. 7, 2019 article, ““Buyers of Pacific Steel Casting ‘looted’ its assets, made ‘insider deals,’ according to bankruptcy trustee:” Op Cit. 4 Berkeleyside, Nov. 7, 2019, Op. Cit.

Staff time to facilitate the Planning Commission referral and prepare language for the zoning overlay.

ENVIRONMENTAL SUSTAINABILITY
The PSC site requires considerable environmental remediation. A property buyer would address all of the environmental clean-up issues, contributing to a revitalization of West Berkeley’s Gilman District and responsible stewardship of the land. The 2014 Atwell, LLC report commissioned by Speyside Equity, LLC concluded that substances such as arsenic, petroleum hydrocarbons, tetrachloroethylene and trichloroethylene and others were present in samplings taken during the environmental investigation of the site.

RATIONALE FOR RECOMMENDATION
Creating a zoning overlay to enable the PSC site to be zoned MULI will increase the desirability of this property for prospective buyers. This in turn could reap many public benefits once the site is sold. First and foremost, it could enable former PSC workers to receive their pension benefits. It would also result in an environmentally sound property and contribute to the City’s tax base.

CONTACT PERSON
Councilmember Rashi Kesarwani, District 1 (510) 981-7110

Voluminous
Attachment

Final EIR and
Response to Comments

Attachment 4 to this report is on file and available for review at the City Clerk Department, or can be
accessed from the City of Berkeley Website.

City Clerk Department
2180 Milvia Street
Berkeley, CA 94704
(510) 981-6900

or from:

The City of Berkeley, City Council’s Web site
http://www.berkeleyca.gov
Attachment 4

Planning and Development Department
Land Use Planning Division
1947 Center Street, Berkeley, CA 94704 Tel: 510.981.7410 TDD: 510.981.6903 Fax: 510.981.7420 E-mail: [email protected]
DATE: February 1, 2023
TO: Members of the Planning Commission
FROM: Ashley James, Senior Planner
SUBJECT: Pacific Steel Casting Zoning and General Plan Amendments and Environmental Impact Report (EIR) Scoping Session

SUMMARY
• City staff are preparing Zoning Ordinance and Zoning Map amendments and associated General Plan amendments to re-zone an approximately 11-acre area within the West Berkeley Plan Area from M (Manufacturing) to a new district entitled M-RD (Manufacturing, Research and Development). The 11-acre area contains 18 parcels and is bounded by Gilman Street to the north, the Union Pacific Railroad tracks to the east, Page Street to the south, and Eastshore Highway to the west (Figure 1). The Planning Commission is asked to receive a staff presentation and provide feedback on the proposed zoning and associated West Berkeley Plan and General Plan changes.
• The City has determined, based on the scale and scope of the proposed project, that an Environment Impact Report (EIR) is required to evaluate the potential physical environmental impacts that could result from future development in accordance with the new zoning. A Notice of Preparation (NOP) to gather input from agencies and the public was released on December 27, 2022 for a 60-day comment period ending on February 27, 2023. In this scoping session, the Planning Commission will receive a status report on the NOP, consider public testimony, and provide comments on the scope and content of the EIR.

BACKGROUND
On April 20, 2021, the City Council referred to the Planning Commission creation of a zoning overlay at the former Pacific Steel Casting (PSC) property in West Berkeley, which is currently zoned Manufacturing (M), and re-designate it as Mixed Use - Light Industrial (MU-LI) due to the unique issues of public concern associated with this property (described below); specifically, include in the PSC zoning overlay allowances to enable all MU-LI uses and override any existing constraints in the Berkeley Municipal Item 12
Planning Commission
February 1, 2023
ATTACHMENT 5

Pacific Steel Casting Zoning and Plan Amendments
and Draft Environmental Impact Report (EIR) Scoping Session

Code for Zoning (Title 23) on such MU-LI uses for the PSC property, such as manufacturing floor area replacement requirements (Attachment 1).

Figure 1: Project Area

In October of 2022, the Planning Department received a zoning map amendment application from Rhoades Planning Group on behalf of SPUR Capital, pursuant to BMC Chapter 23.412 (Zoning Ordinance Amendments), to re-designate the zoning of 15 parcels over an 8.16-acre area at the PSC and Berkeley Forge and Tool properties from M to MU-LI, consistent with the Council referral. That application includes only the parcels that SPUR Capital has site control over, referred to here as “Gilman Forge,” and is thus slightly smaller than the total project area being considered in the rezoning and EIR. According to the applicant statement, the project sponsor intends to submit a development project application following completion of the rezoning and EIR. The Item 12
Planning Commission
February 1, 2023

Pacific Steel Casting Zoning and Plan Amendments
and Draft Environmental Impact Report (EIR) Scoping Session

applicant statement provides preliminary information regarding the possible uses and development envelope of the project (Attachment 2).

Environmental review will fully evaluate the potential physical effects to the environment of the proposed policy changes as well as the proposed future development project (Figure 2). The role of the Planning Commission is to provide comments on the draft zoning and plan amendments, the NOP, and the EIR when it becomes available, and make a recommendation to the City Council for decision.

Figure 2: Planning and Entitlement Process

PROJECT DESCRIPTION
The project being analyzed in the EIR is the proposed zoning text and map amendments and associated General Plan amendments, as well as the proposed Gilman Forge concept plan. The EIR will evaluate the maximum reasonable development scenario of the rezone and associated general plan amendments, as well as demolition of the existing buildings, construction of up to 1,000,000 square feet of nonresidential space at a maximum building height of 105 feet, and up to 2,000 off- street automobile parking spaces. The proposed M-RD zoning district regulations are described in greater detail below. The EIR will also evaluate the impact of the Gilman Forge concept plan, located on an approximately 8.16-acre portion of the project area, to the extent that such development is foreseeable at the time of preparation of this programmatic EIR. The buildout of the concept plan is assumed to be consistent with the development standards of the proposed M-RD zoning district.

Rationale for Approach to Re-Zoning from M to M-RD
As stated above, the Council referral is to create a zoning overlay at the former PSC property in West Berkeley, which is currently zoned M, and re-designate it as MU-LI, and include in the overlay allowances to enable all MU-LI uses and override existing constraints on MU-LI uses for the property. Staff is recommending that a new zoning district be created for the following reasons.

Staff evaluated the utility of an overlay district as a means of achieving the objective of the referral, and noted that an overlay district is typically applied over multiple underlying districts as a more efficient method of applying additional regulations to serve a particular public purpose (e.g., airport noise, creek setbacks). An overlay typically modifies development standards and administrative processes; it does not Zoning and Plan
Amendments
<-- Environmental Review (CEQA) -->
Gilman Forge
Project Entitlement
Fall ‘22 – Winter ‘23 Spring ‘23 –Spring ‘24
Item 12
Planning Commission
February 1, 2023

Pacific Steel Casting Zoning and Plan Amendments
and Draft Environmental Impact Report (EIR) Scoping Session

usually modify allowed land uses. As the underlying zoning at the site is M and the referral seeks to reduce constraints on allowed uses, Staff found that an overlay is not the preferred zoning method to achieve the objectives of the referral.

The referral also intends to re-zone the site from M to MU-LI and override existing constraints on MU-LI uses to enable redevelopment. The property representative has identified certain constraints in the MU-LI regulations, including allowed uses, maximum height, and protections on existing manufacturing uses, that would interfere with their intended development. Staff found that re-zoning to MU-LI with exceptions would be inefficient in that the zoning would essentially be mooted by the exceptions. Therefore, staff is recommending creation of a new district – Manufacturing, Research & Development (M-RD) – that is consistent with the existing adopted Plans for the area and General Plan Manufacturing land use designation, helps achieve the objectives of the referral and zoning map amendment application, and facilitates implementation (i.e., does not require Variances or other exceptions to MU-LI standards on a project-by- project basis).

The Office of Economic Development has prepared a report that provides context into the current and projected economic conditions in West Berkeley to help inform the City’s approach to addressing the Council referral. Specifically, the report provides information about the city’s economy and the innovation sector in particular – advanced manufacturing, software, life sciences, clean technology, food tech, and other science, technology, engineering and math (STEM) industries – such as employment, wages, wealth creation, social impacts and location decisions. A discussion of the economic conditions and impacts of the proposed rezoning within the West Berkeley industrial area is also provided (Attachment 4).

M-RD Zoning District Boundary
As shown in Figure 1 above, Staff propose that the M-RD district boundary encompass the 15 parcels that make up the PSC and Berkeley Forge and Tool properties, as well as three additional parcels in the immediate vicinity, resulting in a two-block area bounded by Gilman Street to the north, the Union Pacific Railroad tracks to the east, Page Street to the south, and the Eastshore Highway to the west consisting of 11 acres over 18 parcels. The three additional parcels are the following:
• 1306 Third Street: A 6,204 square-foot parcel developed with a two-story, approximately 6,000 square-foot building containing three live/work units, which is a legal non-conforming use.
• 600 Gilman Street: A 11,625 square-foot parcel developed with a one-story, approximately 1,000 square-foot building containing a vehicle rental service. • 1433 Eastshore Hwy: A 38,850 square-foot parcel developed with a one-story metal building totaling approximately 1,944 square feet containing a recycled materials processing use.

The proposed boundary would be consistent with the Council referral to re-zone the PSC property and includes the Berkeley Forge and Tool properties that are part of the Item 12
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applicant-initiated zoning map amendment. The additional three parcels would complete the two-block boundary to facilitate potential future development. More information about each parcel included in the district, including address, APN, parcel size, and existing use, is provided in Attachment 3.

Proposed District Intent and Purposes
The proposed M-RD district would be consistent with the Manufacturing land use designation and adopted plans, and would further the objectives of the Council referral and zoning map amendment application.

General Plan Land Use Element. The Manufacturing designation is intended to maintain and preserve areas of Berkeley for manufacturing and industrial uses necessary for a multi-faceted economy and job growth, and the appropriate uses are identified in the West Berkeley Plan.1 The General Plan Land Use Element policy regarding Industrial Areas is to take actions that will achieve the three purposes of the West Berkeley Plan:

1. Maintain the full range of land uses and economic activities including residences, manufacturing, services, retailing, and other activities in West Berkeley.

2. Maintain the ethnic and economic diversity of West Berkeley's resident population.

3. Maintain and improve the quality of urban life, environmental quality, public and private service availability, transit and transportation, and aesthetic and physical qualities for West Berkeley residents and workers.2

West Berkeley Plan. Accordingly, the goal of the West Berkeley Plan Land Use Element is to provide for a continued economic and land use mix, incorporating manufacturing, other industrial, retail and office/laboratory uses, to benefit Berkeley residents and businesses economically, benefit the City government fiscally, and promote the varied and interesting character of the area.3 Policies under this goal speak to:
• Retaining sufficient land and buildings to maintain manufacturing employment; • Providing, through zoning districts, development standards, the appropriate tools to expand the light manufacturing sector; and
• Providing space and designating appropriate locations for office, service and laboratory businesses, particularly growing Berkeley based businesses which are particularly suited to West Berkeley’s physical environment.

Proposed M-RD District. The proposed purposes of the M-RD district are to:

1 City of Berkeley General Plan, Land Use Element. Land Use Classifications – Manufacturing, page LU-24. 02_Land Use Element-FINAL.pdf (berkeleyca.gov)
2 City of Berkeley General Plan, Land Use Element. Element Objectives, Policy LU-33, page LU-17. 02_Land Use Element-FINAL.pdf (berkeleyca.gov)
3 City of Berkeley West Berkeley Plan, Land Use Element. Goal 1, page 34. 12/14/1993; CLK - Resolution; City Council; 57301; (berkeleyca.gov)
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Implement the West Berkeley Plan Manufacturing, Research and Development District designation;
Support a mix of industrial and heavy commercial uses, such as light manufacturing and research and development, particularly those which retain a diversity of employment opportunities in West Berkeley and can provide high quality employment for people at all educational levels and add significantly to the tax base;
Allow office and laboratory uses that support light industrial and research and development uses, and provide for high employment density; Provide opportunities for an urban campus-like environment with high-quality design and site planning that includes amenities for employees and visitors; Support the development of industrial uses which satisfy performance standards that protect the environment; and
Facilitate land uses that improve the quality of the West Berkeley environment, while allowing existing industrial uses.

While a number of industrial uses are allowed, this district is more restrictive with regard to heavy industrial uses than the Manufacturing (M) or Mixed Manufacturing (MM) districts in order to maintain and improve the quality of the West Berkeley environment.

Further, the proposed uses are tightly targeted to a mix of light manufacturing, research and development (R&D), laboratory and office uses to provide for high-quality employment density for people at all educational levels.

Proposed Allowed and Prohibited Uses
The M-RD district would permit a variety of uses, including office, industrial and heavy commercial, laboratory, light manufacturing, and R&D, which would primarily be subject to the permit requirements of the MU-LI district. This proposed set of allowed uses would help ensure that the mix of industrial and heavy commercial uses provide high- quality employment for people at educational levels, add significantly to the tax base, and support uses that improve the quality of the West Berkeley environment. The existing live/work use at 1306 Third Street would continue to be legally non-conforming and the existing vehicle rental use at 600 Gilman Street would become non-conforming.

Staff are proposing a narrower set of allowed uses than the MU-LI district for consistency with the objectives of the 2021 Council referral and purposes of the M-RD district listed above. The following uses allowed in the MU-LI district that would be prohibited in the M-RD district are:
• Public and Quasi-Public, Retail and Food and Alcohol Service, Lodging, Entertainment and Assembly, Vehicle Service and Sales use categories:

Club/lodge, Retail, Theaters, and Vehicle Service and Sales, except for Alternative Fuel Stations.
• Industrial and Heavy Commercial use category: Bus/Cab/Truck/Public Utility Depot, Commercial Excavation, Contractors Yard, Construction Products Manufacturing, Recycled Materials Processing, and Recycling Redemption Center.

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• Incidental and miscellaneous use category: Live Entertainment, Art/Craft Studios, Live/Work, Public Markets, and Urban Agriculture.

Proposed Development Standards
While the full zoning district text will be developed over the next several months and presented to the Planning Commission for a recommendation to Council with the Final EIR, staff has developed basic standards to set a project description for analysis in the EIR. Table 1 below provides a summary of the proposed development standards along with the policy rationale. Each regulation is further discussed below. Overall, the proposed development standards are consistent with the MU-LI district standards, except for changes to the maximum allowed height, maximum lot coverage, and minimum vehicle parking. Staff are presenting additional standards that could be included to meet the intent and purposes of the district but are not required as part of the EIR project description.

Table 1. Summary of Proposed Zoning Regulations
Regulation Existing M
Standard
Proposed M-RD
Standard Rationale
Maximum Height 45 feet 105 feet
Facilitate construction of buildings
with minimum floor-to-floor heights
and floor plates for allowed uses
(e.g. 20-foot ground-floor height,
smaller floorplates)
Maximum Floor Area
Ratio (FAR) 2.0 2.0 Maintain maximum buildout
evaluated in General Plan EIR
Minimum Setbacks,
and Building
Separation
Not regulated Not regulated Maintain existing development pattern in Manufacturing districts.

Maximum Lot
Coverage Not regulated 50 percent
Provide opportunities for an urban
campus-like environment that
includes amenities for employees
and visitors.

Minimum Off-Street
Parking and
Minimum Bicycle
Parking
Vehicle: See
BMC Table

23.322-4
Vehicle: Same as
Table 23.322-4, with
following changes:
• All non-
residential uses
except uses
listed below: 1
per 1,000 sq.ft.
• Laboratories: 1
per 1,000 sq.ft.
• Storage,
warehousing, and
wholesale trade:
1, per 1,000 sq.ft.

Provide flexibility for future users
and acknowledge current
Transportation Demand
Management practices.

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Bicycle: 1 per
2,000 sq.ft.

Bicycle: Same
requirements as
existing for non-
residential uses
Maintain existing Manufacturing
district standard

Maximum FAR
No changes are proposed to the existing maximum FAR of 2.0 allowed in the M district.

As the total area of the proposed M-RD district is approximately 463,549 square feet, the maximum buildout of approximately 927,098 square feet of gross floor area would be the same amount that was previously evaluated in the General Plan and West Berkeley Plan and the associated EIRs. In other words, development within this district would not exceed the amount of development already anticipated in the area.

Maximum Building Height
The proposed maximum building height of 105 feet is higher than the current maximum of 45 feet allowed in the M district. The proposed maximum is supported by a recommendation in the Council referral to enable all MU-LI uses and override any existing constraints in the Zoning Ordinance on such uses. Allowed uses in both the MU-LI and proposed M-RD district include research and development and laboratories, which require certain building design characteristics that necessitate additional building height allowances. This topic was addressed as part of the Bayer Development Agreement process4 and in the current zoning map amendment application, which is summarized below:

• Minimum Floor Heights: The nature of research and development and laboratory uses can include large pieces of machinery, deliveries, equipment, and ductwork that require taller ceiling heights and highly reinforced floors. These uses generally require 20‐foot ground‐floor heights and 16.5‐foot upper story heights, measured floor to floor, in order to provide leasable space, which would result in a two-story building under the existing 45-foot height limit, impacting the feasibility of future development.

• Building Modulation and Variation: The average floor plate size for research and development and laboratory uses is approximately 35,000 square feet, and is usually no larger than 50,000 square feet. Floor plates larger than 50,000 sq. ft. can result in operational inefficiencies given the requirements for laboratory uses that include equipment, air circulation and structural integrity, and subsequent impacts on the functionality and mechanical, electric, and plumbing (MEP) infrastructure. Additionally, the privacy, safety and security needs of these tenants makes a multi‐tenant approach to leasing less attractive than other uses.

4 October 20, 2021. Public Hearing on Bayer Development Agreement, Attachment 3.F, Report on Justification for Heights. Planning Commission. 2021-10-20 PC Agenda Packet.pdf (berkeleyca.gov) Item 12
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Within Berkeley, the Amended and Restated Bayer Development Agreement allows a maximum height of 80 feet for production uses (similar to Pharmaceuticals Manufacturing) and 65 feet for other uses (Administration, Laboratory, Utility, Warehouse) in the campus.5 Since the West Berkeley Plan was adopted in 1993, three variances have been approved to allow construction of buildings intended for research and development and laboratory uses that range from 60 to 74 feet in height.6 A common finding among the variances granted is that unique building requirements for these uses justify additional height. Outside of Berkeley within the Bay Area region, maximum height limits in districts that allow research and development and laboratory uses range from 35 to 100 feet, and a few do not regulate maximum height. Some cities provide flexibility by offering discretionary permit procedures such as awarding ‘bonus height’ if the project meets certain community goals, including providing community benefits, above a base allowed height. Assuming that buildings developed in the proposed M-RD zoning district would have a ground floor height of 20 feet with subsequent floors at a height of 16.5 feet, the maximum height of 105 feet would allow up to six stories.7

Additional height for buildings that contain other uses, such as for administrative purposes (offices, conference rooms, cafeteria, etc.), can provide benefits for employees and visitors. For example, additional height can free up floor area that can result in the development of amenities and open spaces that will provide a social benefit, as well as help attract and retain talent. A taller building can occupy a smaller footprint than would otherwise be feasible, allowing opportunities to include on‐site public open space, landscaping, and street trees, bioswales to capture stormwater, and pedestrian and bicycle facilities. These benefits are consistent with the purposes of the proposed M-RD district as well as the General Plan Land Use Element Policy LU-33 to “…improve the quality of urban life, environmental quality…and aesthetic and physical qualities for West Berkeley residents and workers.”

Lot Coverage, Setbacks and Building Separation
While lot coverage is not currently regulated in any Manufacturing district, the proposed M-RD zoning sets the maximum at 50 percent. The proposed maximum was developed assuming a FAR of 2.0 and minimum building height of 4 stories on parcels in the project area. Regulating lot coverage in this district would support development of on- site open space and green space associated with new development, consistent with the purposes of the district and policies of the General Plan and West Berkeley Plan.

Setbacks and minimum building separation would not be regulated, similar to other Manufacturing districts.

5 November 30, 2021. Bayer Healthcare LLC – Amended and Restated Development Agreement. City Council. City Council Report ##-##-#### (berkeleyca.gov)
6 742 Grayson: 74 feet (ZP2021-0161); 740 Heinz: 74 feet (UP05-10000017); 725 Potter: 45 feet, four stories (UP01- 10000047).
7 Four-story building: between 70 to 85 feet; Five-story building: 86 to 102 feet; Six-story building: 103 to 118 feet.

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Pacific Steel Casting Zoning and Plan Amendments
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Minimum Off-Street Vehicular Parking and Bicycle Parking Minimum parking requirements in Manufacturing districts vary depending on the type of use, from a low of 1 per 1,500 square feet for buildings over 10,000 square feet in size that contain manufacturing uses to a high of 1 per 300 square feet for food service establishments and medical practitioners.8 The proposed minimum parking requirements of the M-RD district would be set at 1 per 1,000 square feet for laboratories and other uses not otherwise listed in Table 23.322-4, which include research and development and office. The proposed change would standardize the off- street requirement among these allowed uses, acknowledging the fact that multiple uses may occupy different portions of one building at any time and the amount of floor area dedicated to one use may change over time.

The proposed off-street parking minimum also considers the amount of parking demanded by recently approved, similar developments in the vicinity. For example, the Bayer Development agreement includes a minimum parking ratio of 1 per 1,000 square feet for production and laboratory uses; the project at 742 Grayson Street sought and was granted a parking reduction to allow 325 spaces where 380 are the minimum; and the project at 600 Addison provided the minimum amount required. Further, the proposed minimum supports current Transportation Demand Management (TDM) practices to reduce vehicle miles traveled by lowering the amount of off-street parking required, and is consistent with the polices of the West Berkeley Plan to provide “through…development standards…space…for expansion of manufacturing firms, particularly the growing light manufacturing sector” by freeing up space for new gross floor area that would otherwise be reserved for parking.9

Additional Development Standards
The Planning Commission is asked to provide feedback on the following additional development standards, as well as any other topics not addressed that Staff should consider in developing the zoning text.

• Minimum Open Space: A minimum open space requirement is not currently required in any Manufacturing district; however, Staff notes that open space could be complementary to the proposed maximum height limit, as the additional height would free up space to provide amenities. Looking to recent projects entitled in the Manufacturing districts, open space has been provided as part of the 600 Addison Street project, totaling 75,000 square feet; at 742 Grayson Street (50,000 square feet); and the Bayer campus (at least 9 acres by year 30 of the development agreement). An open space requirement would help further the purpose of the M-RD district to provide opportunities for an urban campus-like environment that includes amenities for employees and visitors. Additionally, the proposed requirement is supported by General Plan Land Use Policy LU-33 to “…improve the quality of urban

8 BMC Section 23.322.030(C)
9 City of Berkeley West Berkeley Plan, Land Use Element. Policy 1B, page 34. 12/14/1993; CLK - Resolution; City Council; 57301; (berkeleyca.gov)
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life, environmental quality…and aesthetic and physical qualities for West Berkeley residents and workers.”

The City of Berkeley similarly regulates open space in the Commercial – Downtown Mixed Use (C-DMU) District by requiring at least 1 square foot of privately-owned public open space per 50 square feet of commercial floor area. Looking to other jurisdictions such as Emeryville, open space in the M-RD district could be provided as either common or privately-owned public open space. Common open space is defined as: fields, courtyards, sport courts, pedestrian paths, outdoor eating areas, landscaping, gardens and similar uses, and could be located at the ground level, on terraces above the ground level, and/or the roof.

• Site and Building Design Standards: The Physical Form Element of the West Berkeley Plan identifies Gilman Street as an Industrial Entry Corridor and considers the question of how the area may be improved as an entry corridor while recognizing that it is to remain an industrial corridor. The Plan suggests that the answer may be improved design of private sites and the public right-of-way by, for example, strengthening the “street wall without losing industrial utility”, creating a setting where industrial buildings “turn their faces” to Gilman through greater design uniformity that improves the street image.10 Further, Goal 3 of the Physical Form Element is to “visually improve the…the entry corridors into West Berkeley.” Consistent with the adopted Plan, a proposed purpose of the M-RD zoning is to encourage an urban campus-like environment with high-quality design and site planning that includes amenities for employees and visitors. Although site and building design standards are not included in other Manufacturing districts, they have been included in two recently-adopted zoning districts – the Adeline Corridor (C-AC) and Residential BART Mixed-Use (R-BMU). Potential topic areas include:
• Building placement and orientation:
o Requiring main building entrances to face Second Street. • Facades:
o Requiring a minimum amount of articulation on all facades facing publicly accessible open space and/or public streets.
o Improving areas between the building and front property line, or between a building and open space or public right-of-way, with pedestrian-scale amenities.
• Building colors and materials:
o Requiring a minimum number of colors, differentiating the base, middle and top, etc.
• Ground floor street frontages:
o Requiring a minimum ground-story height.
• Green roofs or other building sustainability features.

10 City of Berkeley West Berkeley Plan, Physical Form Element. West Berkeley’s Entry Corridors, Gilman St. – Industrial Entry Corridor, page 134. 12/14/1993; CLK - Resolution; City Council; 57301; (berkeleyca.gov) Item 12
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• Parking location, screening and landscaping:
o Light screening
o Percent of off-street parking provided in surface lots versus parking structures.

General Plan and West Berkeley Plan Amendments
The proposed zoning text and map amendments require associated amendments to the General Plan and West Berkeley Plan to ensure consistency between the Zoning Ordinance and the General Plan.11 The General Plan and West Berkeley Plan changes will add the new zoning district (Manufacturing, Research and Development) to the Manufacturing land use classification. Pursuant to BMC Chapter 22.04, the Planning Commission will be asked to consider these proposed amendments with the proposed zoning text and map amendments and EIR.

DISCUSSION
The purpose of this scoping meeting is to receive comments from the Planning Commission and the public on the scope and content of the EIR. These comments, along with the comments received through the NOP review period, will be considered in the preparation of the EIR. The result of the EIR analysis will inform the zoning changes and the recommendations submitted to the City Council for adoption. The Planning Commission should review the NOP, provide comments on the scope and content of the EIR, and receive comments from members of the public, organizations and interested agencies on issues the EIR should address. Written comments can be directed in writing to Ashley James, Senior Planner either by mail or electronically:

Land Use Planning Division
1947 Center Street, 2nd Floor
Berkeley, CA 94704

[email protected].

Comments must be received on or before 5pm on Monday, February 27, 2023.

The Planning Commission is also requested to provide feedback on the proposed zoning text and associated West Berkeley Plan and General Plan changes.

NEXT STEPS
The Planning Department has hired LSA to prepare the CEQA analysis, including the NOP. This scoping meeting informs the community and public agencies about the Zoning Text, Map and General Plan Amendments and EIR, and solicits comments from the Planning Commission and the public regarding the EIR scope, issues of concern, potential alternatives, and mitigation measures. These comments, along with the comments collected through the entire review period, will be considered in the preparation of the EIR. The result of the EIR analysis will inform future Planning

11 The West Berkeley Plan is an amendment to Berkeley’s General Plan, providing policies to guide development in West Berkeley.

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Commission discussion and the recommendations submitted to the City Council for adoption.

Following the close of the NOP comment period, the Draft EIR will be prepared and circulated for the required 45-day public comment period. Although the Zoning and General Plan Amendments would not approve any physical development (e.g., construction of buildings or infrastructure), the EIR will assume that such actions are reasonably foreseeable future outcomes. Therefore, the EIR will evaluate the potential physical environmental impacts that could result from future actions for implementing the policies and programs, and resulting development, at a programmatic level. To the extent that technical studies have been received as part of the Zoning Map Amendment application, the EIR will evaluate potential impacts at a project-level of detail.

The Draft EIR will also examine a reasonable range of alternatives to the proposed project, including the CEQA-mandated No Project Alternative and other potential alternatives that may be capable of reducing or avoiding potential environmental effects while meeting most of the basic objectives of the project. In addition, the EIR will address cumulative impacts, growth inducing impacts, and other issues required by CEQA. The estimated timeline for the public portions of the CEQA review are as follows:

Table 2. Project Timeline
Description Timing Public Review Process
60-day NOP Comment Period December 21, 2022 –
February 27, 2023

Scoping Meetings:
• 2/1/23 Planning
Commission
• 2/2/23 Landmarks
Preservation
Commission
Draft EIR released for 45-day
review and comment period
Summer-Fall 2023 Planning Commission
meeting
Final EIR and
Final Zoning and General
Plan amendments adopted
Fall-Winter 2023 Planning Commission
recommendation; City
Council action

ATTACHMENTS

1. City Council Referral to the Planning Commission to Establish a Zoning Overlay at the Pacific Steel Casting Property, April 20, 2021

2. Zoning Map Amendment Application (PLN2022-0079), October 25, 2022

3. Notice of Preparation

4. City of Berkeley, Office of Economic Development. The Innovation Ecosystem in West Berkeley: An Economic Snapshot, January 2023.

Item 12
Planning Commission
February 1, 2023

Rashi Kesarwani
Councilmember, District 1

ACTION CALENDAR
April 20, 2021
TO: Honorable Mayor and Members of the City Council
FROM: Councilmember Rashi Kesarwani (Author), Councilmember Taplin (Co-Sponsor)
SUBJECT: Referral to the Planning Commission to Establish a Zoning Overlay at the Pacific Steel Casting Property

RECOMMENDATION
Refer to the Planning Commission to create a zoning overlay at the Pacific Steel Casting (PSC) property in West Berkeley—currently zoned Manufacturing (M) and redesignate it as Mixed Use - Light Industrial (MULI) due to the unique issues of public concern associated with this property (described below); specifically, include in the PSC zoning overlay allowances to enable all MULI uses and override any existing constraints in the Berkeley Municipal Code for Zoning (Title 23) on such MULI uses for the PSC property.

CURRENT SITUATION AND ITS EFFECTS
The Pacific Steel Casting (PSC) property sits at the corner of Eastshore Highway and Gilman Street, extending two blocks south to Page Street with structures on either side of Second Street. Once a thriving manufacturer of custom industrial-use parts employing more than 650 workers, PSC declared bankruptcy in 2014 and permanently shuttered in 2018. The site is known to have a number of problems of public concern, including: (1) environmental contamination at the site, (2) hundreds of blue-collar workers awaiting receipt of their pension benefits as a result of a future sale of the property, and (3) neighborhood blight and safety concerns resulting from an eight-acre multi-block area of abandoned buildings and graffitied fencing around the property.

The site, which is in close proximity to the highly-anticipated reconstruction of the Gilman Interchange, has generated some interest from real estate and business representatives for numerous mixed-use light industrial uses, such as biotechnology labs, warehouse and commercial uses, or office space, among other possibilities.

The site has been on the market for more than two years without a serious buyer

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due in part to concerns that the current Manufacturing zoning designation limits the potential uses of the site to heavy manufacturing only. Because of the difficulty in generating a prospective buyer for the PSC site—more than two years have elapsed since the property was first put on the market—and the issues of public concern noted above, a zoning overlay specifically for the PSC site is recommended. This referral and establishment of a zoning overlay signals to prospective buyers that the City is eager to see this site reinvented and contributing to our tax base and the vitality of our post-Covid local economy.

BACKGROUND
Established in 1934 and owned for more than 80 years by the Genger and Delsol families, PSC declared bankruptcy in 2014. Prior to that, a worker class action lawsuit was filed in 2011 against the company for wage theft.1 In 2014, the company was purchased by Speyside Equity for $11.3 million. Until that time, the company had been generating $100 million in sales annually. Speyside turned the assets of PSC into a limited liability company and pledged to honor the collective bargaining agreements with the union representing the workers, including assuming pension liabilities and paying workers’ health benefits.2 The new company, Pacific Steel Casting LLC, however, failed to pay those benefits in part due to growing financial insecurity prompted by plummeting gas and oil prices which limited the need for production, and in part due to increased competition from China. It was also later discovered that Speyside used suspect financial practices that further drove the company into the ground.3
According to reporting from Berkeleyside, “The Speyside Fund, Speyside Equity, Alcast Company of Illinois, various business partners and managers, ‘looted’ $14.5 million from the West Berkeley company over a four-year period, and justified the siphoning off by ‘cooking’ the books, according to the action filed by Sarah L. Little, the bankruptcy trustee.”4 These legal entanglements encumber the land for any potential buyers, as it is predicted it will take between $27 to $30 million to make the workers and all the past creditors whole. This is in addition to the costs it will take for the environmental remediation of the property.

FISCAL IMPACT
1 See Berkeleyside, Nov. 7, 2019 article, “Buyers of Pacific Steel Casting ‘looted’ its assets, made ‘insider deals,’ according to bankruptcy trustee:” https://www.berkeleyside.com/2019/11/07/buyers-of-pacific-steel-casting-looted-its-assets- made-insider-deals-according-to-bankruptcy-trustee
2 See Berkeleysides’ Dec. 12, 2017 article, “Temporary reprieve for workers: Pacific Steel Casting to remain open through March:” https://www.berkeleyside.com/2017/12/12/reprieve-workers-berkeleys- pacific-steel-casting-remain-open-march
3 See Berkeleysides’ Nov. 7, 2019 article, ““Buyers of Pacific Steel Casting ‘looted’ its assets, made ‘insider deals,’ according to bankruptcy trustee:” Op Cit. 4 Berkeleyside, Nov. 7, 2019, Op. Cit.

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Staff time to facilitate the Planning Commission referral and prepare language for the zoning overlay.

ENVIRONMENTAL SUSTAINABILITY
The PSC site requires considerable environmental remediation. A property buyer would address all of the environmental clean-up issues, contributing to a revitalization of West Berkeley’s Gilman District and responsible stewardship of the land. The 2014 Atwell, LLC report commissioned by Speyside Equity, LLC concluded that substances such as arsenic, petroleum hydrocarbons, tetrachloroethylene and trichloroethylene and others were present in samplings taken during the environmental investigation of the site.

RATIONALE FOR RECOMMENDATION
Creating a zoning overlay to enable the PSC site to be zoned MULI will increase the desirability of this property for prospective buyers. This in turn could reap many public benefits once the site is sold. First and foremost, it could enable former PSC workers to receive their pension benefits. It would also result in an environmentally sound property and contribute to the City’s tax base.

CONTACT PERSON
Councilmember Rashi Kesarwani, District 1 (510) 981-7110

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Land Use Planning
Notice of Preparation of an
Environmental Impact Report
Date: December 21, 2022
To: State Clearinghouse, Responsible Agencies, Trustee Agencies, Organizations, and Interested Persons
Lead Agency: City of Berkeley
Project Title: Gilman Gateway Rezone Project
Project Location: The project site is comprised of 18 parcels totaling approximately 10.64 acres located in West Berkeley. The Project site is bisected by Second Street and bordered by Gilman Street to the north, Union Pacific Railroad (UPRR) and Amtrak heavy rail corridor to the east, Page Street to the south, and Eastshore Highway (Interstate 80 [I-80]) to the west.

Project Applicant: City of Berkeley and SPUR Capital
Purpose of Notice
The City of Berkeley (City), as the lead agency, is preparing an Env ironmental Impact Report (EIR) for
the proposed Gilman Gateway Rezone project, located at the properties listed in Table 1 below. The project will rezone the site to a new zoning district and General Plan to allow a range of light industrial, research and development, and similar/related uses, and amend the development standards related to building height and other matters. In accordance with the provisions of the State of California Environmental Quality Act (CEQA) Guidelines, California Code of Regulations (CCR) Section 15082(a). this Notice of Preparation (NOP) provides response and trustee agencies, nearby property owners, and other interested parties with a description of the proposed project and information on its potential environmental effects. The City also invites input and/or comments from public agencies and the general public as to the scope and content of the environmental information that will be studied in connection with the project.

Project Description and Location
As shown on Figure 1 below, the project site is located in West Berkeley. As shown in Table 1 and on Figure 2 below, the project site is comprised of 18 parcels totaling approximately 10.64 acres, bisected by Second Street and bordered by Gilman Street to the north, Union Pacific Railroad (UPRR) and Amtrak heavy rail corridor to the east, Page Street to the south, and Eastshore Highway (Interstate 80 [I-80]) to the west. Of these 18 parcels, 13 are associated with the former Pacific Steel Casting site and total approximately 8.16 acres. This site is developed with a number of buildings that have exceeded their economic life and are expected to be demolished and the site redeveloped by private parties. The remaining parcels include two which are associated with the former Berkeley Forge and Tool, which total approximately 1.18 acres, and three unassociated parcels totaling approximately 1.3 acres , currently occupied by a vehicle rental business, live/work building, and recycled materials processing business.

Item 12 - Attachment 3
Planning Commission
February 1, 2023

Gilman Gateway Rezone Project Notice of Preparation

Table 1: Project Site
Existing Uses Address APN Lot Size (sf) Building Size (sf) Pacific Steel Casting
1305 Eastshore Highway 59-2344-1-2 8,666 n/a
1401 Eastshore Highway 59-2341-4 41,286 26,217
1421 Second Street 59-2340-8-2 102,366 73,640
1420 Second Street 59-2341-5 25,452 19,942
1320 Second Street 59-2344-4-1 55,003 44,343
1314 Second Street 59-2344-3-1 14,000 12,504
1333 Second Street 59-2345-9 36,575 14,840
1337 Second Street
1332 Third Street
59-2345-8-1 14,630 2,432
1310 Third Street 59-2345-2-2 17,985 26,550
631 Camelia Street
625 Camelia Street
59-2345-7 8,100 5,200
635 Camelia Street 59-2345-6-1 13,000 9,024
643 Camelia Street 59-2345-4 5,500 n/a
1311 Second Street
630 Gilman Street
640 Gilman Street
59-2345-1 13,000 13,000
Berkeley Forge and
Tool
1331 Eastshore Highway 59-2344-7 39,192 31,092
1330 Second Street 59-2344-5-1 12,115 10,000
Live/Work 1306 Third Street 58-2345-2-1 6,204 6,204
Vehicle Rental 600 Gilman Street 59-2344-2-1 11,625 1,008 Recycled Materials
Processing 1433 Eastshore Highway 59-2341-3-2 38,850 1,944 Total Area (sf) 463,549 297,940

Existing Land Uses
The project site is currently designated Manufacturing by the City of Berkeley General Plan adopted in 2002 and zoned Manufacturing (M) per the Zoning Ordinance and West Berkeley Plan. The project site is currently developed with approximately 16 buildings totaling 297,940 square feet that have been in Item 12 - Attachment 3
Planning Commission
February 1, 2023

Gilman Gateway Rezone Project Notice of Preparation

use for industrial, commercial and live/work uses. There are paved roadways that extend throughout the site and the Union Pacific Railroad right-of-way is adjacent to and runs north-south along the eastern boundary of site.

The following parcels within the project area are included on the lists of sites enumerated under Government Code Section 65962.5:
o 600 Gilman Street (Budget Rent a Car)
o 1333 Second Street (Pacific Steel Plant #2)
Surrounding Land Uses
The project site is surrounded by a mix of manufacturing, warehouse, office, and commercial uses.

Residential uses are located to the northeast and southeast.

Proposed Project
The project would create a new zoning district - Manufacturing, Research and Development (M-RD) – in order to facilitate future development. The M-RD zoning district would permit a variety of uses, including office, industrial and heavy commercial, laboratory, light manufacturing, and research and development (R&D), which would primarily be subject to the permit thresholds of the Mixed-Use Light Industrial (MU- LI) district. The EIR will evaluate the impact of the rezone and associated general plan amendments, as well as demolition of the existing buildings totaling approximately 298,000 square feet, except for the existing 10,000 square-foot building at 1330 Second Street, which would be adaptively reused, construction of up to 1,000,000 square feet of nonresidential space and 2,000 off-street automobile parking spaces, at a maximum building height of 105 feet.

While the proposed project does not involve any specific development project, it will evaluate the buildout of a potential future development on an approximately 8.16-acre portion of the project area to the extent that such development is foreseeable at the time of preparation of this EIR. The buildout of the potential future project is assumed to be consistent with the development standards of the proposed M-RD zoning district, and would consist of up to 900,000 square feet of R&D, office, laboratory, and light manufacturing uses and 1,900 automobile parking spaces.

Environmental Impact Report
The EIR will include a discussion of all topic areas required by the CEQA Guidelines, with a particular focus on the following specific environmental categories most relevant to the proposed project:

• Air Quality • Hydrology and Water Quality
• Cultural Resources • Land Use Planning
• Energy • Transportation
• Greenhouse Gas Emissions • Tribal Cultural Resources
• Hazards and Hazardous
Materials

The EIR will also identify and compare a reasonable range of alternatives to the project. Alternatives will be chosen based on their ability to avoid or reduce identified significant environmental impacts of the project while achieving most of the project objectives (CEQA Guidelines Section 15126.6), and all other sections required by CEQA.

Public Review and Comment Period
The City requests written comments that focus on the scope and content of the environmental information Item 12 - Attachment 3
Planning Commission
February 1, 2023

Gilman Gateway Rezone Project Notice of Preparation

of the EIR for the Gilman Gateway Rezone project. All comments on environmental issues received during the public comment period will be considered when preparing the EIR.

This NOP will be circulated for a 60-day review period, which will extend from December 21, 2022 to February 27, 2023. Responses to this NOP must be received by 5:00 p.m. on February 27, 2023. Please send your written or electronic responses, with appropriate contact information, to the following:

Ashley James
City of Berkeley
Land Use and Planning Division
1947 Center Street, 2nd Floor
Berkeley, CA 94704
Email: [email protected]
For electronic responses, please include the project name in the subject line.

Public Scoping Meeting
The City will hold two public meetings to inform interested parties about the project, and to provide agencies and the public with an opportunity to provide comments on the scope and content of the EIR.

The meetings will be held via video and teleconference on the following dates:
• Planning Commission: Wednesday, February 1st at 7:00pm. The meeting agenda with corresponding meeting link will be posted by 5:00 p.m. on January 27 on the Commission website: Planning Commission | City of Berkeley (berkeleyca.gov) • Landmarks Preservation Commission: Thursday, February 2nd at 7:00pm. The meeting agenda with corresponding meeting link will be posted by 5:00 p.m. on January 27 on the Commission website: Landmarks Pres
ervation Commission | City of Berkeley (berkeleyca.gov)

Item 12 - Attachment 3
Planning Commission
February 1, 2023

SOURCE: USGS The National Map (2017)
J:\20220844\Pro\SPUR Gilman Gateway Project.aprx (12/16/2022) FIGURE 1
Gilman Gateway Rezone Project NOP

S O L A N O

C O U N T Y

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0 1000 2000
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Project Location
Regional Location and Project Vicinity
Item 12 - Attachment 3
Planning Commission
February 1, 2023

Gilman StGilman St
Union Pacific RailroadUnion Pacific Railroad
Eastshore HwyEastshore Hwy Camelia StCamelia St
Page StPage St
Second StSecond St
Third StThird St
Fourth StFourth St
W Frontage RdW Frontage Rd
Gilman St
Union Pacific Railroad
Eastshore Hwy Camelia St
Page St
Second St
Third St
Fourth St
W Frontage Rd
Eastshore HwyEastshore HwyEastshore Hwy
80 2000 100
Project Site Boundary
Berkeley Forge and Tool
Pacifi
c Steel Casting
Other Parcels
FEET
SOURCES: Google Earth, 8/6/2020; LSA, 2022
I:\22020844\G\Aerial Photo of Project Site.ai (12/16/2022) FIGURE 2
Gilman Gateway Rezone Project NOP
Aerial Photograph of the Project Site
Item 12 - Attachment 3
Planning Commission
February 1, 2023

Office of Economic Development
CITY OF BERKELEY | [email protected]
The Innovation Ecosystem in West Berkeley
An Economic Snapshot
Item 12 - Attachment 4
Planning Commission
February 1, 2023

1 Contents
Executive Summary ....................................................................................................................................... 2 The Berkeley Economy .................................................................................................................................. 3 Berkeley’s Innovation Ecosystem ................................................................................................................. 3 Employment .............................................................................................................................................. 4 Wages ........................................................................................................................................................ 6 Worker Demographics .............................................................................................................................. 6 Wealth Creation ........................................................................................................................................ 7 Social & Environmental Impact ................................................................................................................. 8 Innovation companies – Location Decisions ................................................................................................. 9 Berkeley Innovation Hubs ......................................................................................................................... 9 Innovation Firms - Building and Space Needs ......................................................................................... 10 West Berkeley - Area Overview .................................................................................................................. 10 Industrial real estate – inventory, costs and trends ................................................................................... 11 Inventory ............................................................................................................................................. 11 Prices ................................................................................................................................................... 12 Trends ................................................................................................................................................. 13 Benefits of the new zoning: M-RD ............................................................................................................. 14 Economic Impact of re-zone ................................................................................................................... 15 Direct & Indirect Jobs .......................................................................................................................... 15 Neighborhood Vitality & Induced jobs ................................................................................................ 16 Social, Environmental & Infrastructure Benefits ................................................................................ 16 Benefits associated with like catalytic developments in Berkeley ......................................................... 17 600 Addison/Berkeley Commons........................................................................................................ 17 Gilman Gateway - Benefits Realized & Goals Supported ....................................................................... 17 APPENDIX .................................................................................................................................................... 18 Appendix 1: Berkeley Jobs & Wage Analysis .......................................................................................... 18 Appendix 2: West Berkeley Jobs & Wage Analysis ................................................................................. 19 Appendix 3: Commercial properties in West Berkeley (by type & area) ................................................ 20 Appendix 4: JLL Bay Area Lab Statistics, Q4 2022 ................................................................................... 21 Appendix 5: Berkeley’s R&D Facility Development Pipeline................................................................... 22 Appendix 6: Approximate Dollar Amounts Required to Clear All Creditors from Existing Steel Casting site ........................................................................................................................................................... 23 Appendix 7: 2nd Street Encampment Closure After Action Report (November 2022) ........................... 25 Item 12 - Attachment 4
Planning Commission
February 1, 2023

2 The Innovation Ecosystem in West
Berkeley: An Economic Snapshot
Executive Summary
Berkeley’s economy, while deeply impacted by the COVID-19 pandemic, continues to rebound, in large part because the city supports a diverse economy. The City of Berkeley’s location next to the University of California – Berkeley (UC Berkeley), a preeminent public research university, and federally-funded national laboratory (Lawrence Berkeley National Laboratory) position it as a natural home for research and development (R&D) industries, including life science and climate technologies, sectors whose tremendous growth in recent years is expected to continue in the years ahead.

The purpose of this report is to provide context into the current and projected economic conditions in West Berkeley, which will inform the City’s approach to addressing the 2021 Council referral to the Planning Commission to establish a zoning overlay at the Pacific Steel Casting property. Per the Council referral, “the site, which is in close proximity to the highly-anticipated reconstruction of the Gilman Interchange, has generated some interest from real estate and business representatives for numerous mixed-use light industrial uses, such as biotechnology labs, warehouse and commercial uses, or office space, among other possibilities”. However, the current Manufacturing (M) zoning designation limits the potential uses of the site to heavy manufacturing only. The City’s proposed approach to this referral is to create a new zoning district (“M-RD”) at the approximately 10-acre project site to enable such uses, thereby allowing R&D companies to build their teams and refine their technologies in Berkeley, bringing with them local jobs, investments, and associated improvements to neighborhood vitality. Furthermore, consistent with the Council referral, the proposed change in zoning regulations at this site would enable the current prospective buyer to clean up a contaminated property, pay off the pensions of Pacific Steel Casting’s former employees, and turn a currently underutilized and unsightly property into a productive hub of economic activity in West Berkeley. Ultimately, the proposed change would support the City’s innovation ecosystem, improve economic vitality in nearby West Berkeley commercial corridors, and improve the environment, thus contributing to a better quality of life for local community members.

Item 12 - Attachment 4
Planning Commission
February 1, 2023

3 The Berkeley Economy
In the past five years (2017-2022), Berkeley has experienced economic growth and pandemic impacts comparable with that of the greater Bay Area region. By a variety of indicators, the acute phase of the pandemic has receded and Berkeley’s economy is on track for continued healthy performance. With a labor force of 62,400, Berkeley’s 2.7% unemployment rate is very low; in fact, it is 0.2% lower than that of Alameda County (2.9%). For context, the “full employment” rate is generally considered to be between 94% and 96%, meaning an unemployment rate from 4-6% is “low”; a rate below 4% is very low.1
While traditionally strong Berkeley economic sectors like performing arts, hospitality, and retail experienced job losses during the pandemic and still earn revenues below pre-pandemic levels, others, including healthcare, biotechnology and other R&D industries, continue to see new investment, employment gains, and opportunities for growth. While remaining lower than in neighboring cities, office vacancy rates in Berkeley have increased; currently the average citywide ground floor commercial vacancy rate averages 8.4%, just above the level associated with normal market churn2.

Other indicators show recovery from the COVID-19 pandemic as well; for example, the City of Berkeley’s Q3 2022 sales tax increased by 5.1% from the same quarter in 2021 and was up 11.8% since the beginning of 2022. And, lastly, housing costs in Berkeley remain high for both buyers and renters, consistent with the Bay Area region overall. Berkeley’s median home sale price of ($1.32M) observed in November 2022 was higher than most other incorporated East Bay communities in Alameda and Contra Costa counties, save for Piedmont ($2.78M) and Alameda ($1.35M).3 Berkeley’s Innovation Ecosystem
The West Berkeley Industry section of the City’s General Plan includes the recommended action to “publicize the economic, social, and environmental benefits of industry, emphasizing the health of Berkeley manufacturing, the ‘high-tech’ dimensions of industry in Berkeley and the United States, manufacturing's comparatively high ‘multiplier’ effect on the economy, and the community value of well-paying, high-benefit, low-bar-of-entry industrial employment”. 4 This section describes how the “‘high-tech’ dimensions of industry in Berkeley”, which the City of Berkeley’s Office of Economic Development (OED) often refers to as Berkeley’s “innovation sector”, bring jobs, wealth, and other economic, social, and environmental benefits to our community, with a special focus West Berkeley.

In 2022, the City of Berkeley was home to more than 400 innovation sector businesses in software, life sciences, clean technology, food tech, and other science, technology, engineering and math (STEM)

1 Per the Bureau of Labor Statistics (BLS), ‘full employment’ is defined as an economy in which the unemployment rate equals the nonaccelerating inflation rate of unemployment, no cyclical u nemployment exists, and GDP (Gross Domestic Product) is at its potential.
2 For commercial districts or areas, ground floor vacancy rates between 4%-8% are typical and considered normal. 3 City of Berkeley, Office of Economic Development, Economic Dashboard, March 2022, page 14, online:
https://berkeleyca.gov/doing-business/economic-development/economic-dashboards-and-reports. 4 City of Berkeley General Plan, West Berkeley Industry Section, Economic Development Policy ED -2, Section A:

Continue to implement the West Berkeley Plan, with its central emphasis on protecting and strengthening the city's manufacturing sector. (Also see Land Use Policies LU-33 and LU-34.) Online: https://berkeleyca.gov/your- government/our-work/adopted-plans/west-berkeley-plan (1993) or https://berkeleyca.gov/your-government/our- work/adopted-plans/general-plan (2002).

Item 12 - Attachment 4
Planning Commission
February 1, 2023

4 industries.5 Many of these companies undertake significant research & development (R&D) in Berkeley and, as such, can also be considered part of the “R&D industry”. Thus, one considering this topic must recognize that “R&D” refers not only to a land use defined in the City’s zoning code but also to an industry and set of activities that companies undertake to create innovative, commercially-viable products and services.

Specifically, Berkeley’s R&D industry is comprised of companies in the following sectors:
• Software (35%)
• Life Sciences, including biotechnology and healthcare (31%) • Hardware (14%)
• Cleantech (12%)
• Food & Beverage (5%)6.

More than four-fifths (83%) of Berkeley’s innovation companies are relatively early stage (defined as a company uniquely focused on product development, building a customer base, and establishing a strong cash flow) and take advantage of the city’s coworking spaces, accelerators, and incubators to engage in their work. The other companies that are part of the local innovation ecosystem are either:
• established, e.g. publicly traded or others operating profitably in the STEM industry (10%), • consultants without explicit goals to scale up (4%),
• subsidiary companies who are now part of a larger parent company (2%), or • incubators or coworking facilities, like Bonneville Labs or Cell Valley Labs, at 626 Bancroft Way and 2865 Seventh St, respectively (1%).

Of these innovation sector companies, one third are located in West Berkeley7.

Employment
Objective 1 of the Economic Development Element of the City’s General Plan reads, “Provide a variety of jobs with varied skill levels for residents of Berkeley.”8 In order to provide more information about the types of jobs in Berkeley, especially in West Berkeley, the Office of Economic Development (OED) researched economic data from a variety of sources:
• The State of California Employment Development Department (EDD) data, which uses the North American Industry Classification System (NAICS) for industry categorization and records employment data9 by month and quarterly payroll based on state Unemployment Insurance records;
• Research assembled by trade groups representing local industries, e.g. Biocom for the life science industry; and
• Direct meetings with businesses and industry professionals, including real estate brokers and market analysts.

5 Innovation industry data is collected throughout the year by OED and draws on a variety of sources including PitchBook, OED’s business license database (maintained with information from the City’s Open Data Portal), LinkedIn, Crunchbase, OED’s firsthand knowledge from personal communications with local firms, and more. 6 These numbers add up to more than 100% because companies can be classified in more than one category, e.g. a software service with a human health application, or a food product developed using biotechnology. 7 For this analysis, West Berkeley was defined as having a business address with the zip code 94710. 8 There are 9 stated objectives in the Economic Development Element of Berkeley’s General Plan (adopted 2002), online: https://berkeleyca.gov/your-government/our-work/adopted-plans/general-plan. 9 Information is drawn from Quarterly Census of Employment and Wage (QCEW) data as maintained by the EDD.

Item 12 - Attachment 4
Planning Commission
February 1, 2023

5 While there are minor discrepancies between classifications in these data sources and in the way that businesses classify themselves (based on criteria that don’t always match land use classifications), OED defines Berkeley’s “R&D-intensive industries” as those labeled with the NAICS code for “Scientific Research and Development Services”10 and those with a NAICS code for a Manufacturing industry with a significant R&D component (shown in Figure 1 below as “R&D-Intensive Manufacturing”).11 These R&D- intensive industries currently provide more than 3,600 jobs in the City of Berkeley, or close to 8% of the approximately 45,000 total private sector jobs in Berkeley. Of these, 72% (more than 2,600 jobs) can be found in West Berkeley.12 See Appendices 1 and 2 for the detailed breakdown of job types.

OED’s data analysis also provides a glimpse into the job creation potential (jobs per firm or “Jobs/Firm”) offered by R&D-intensive industries, using the definitions by NAICS codes explained above.

Figure 1: Jobs Creation Potential in Manufacturing + R&D Industries

Source: State of California Employment Development Department (EDD) data, Q1 2022

As compared to the job creation rate of 11 jobs per firm in Berkeley for “traditional manufacturers”13 in Q1 2022, the rate for R&D-Intensive industries overall was 16 jobs per firm, with even more – an average of 17 jobs per firm – in NAICS-defined “Scientific Research and Development Services” industries (labeled as “R&D” in Figure 1). 14 In fact, more than three fifths (62%) of overall manufacturing jobs in West Berkeley (represented by 1,638 jobs in Q1 2022) are from R&D-intensive manufacturing sectors and the vast majority (85%) of R&D-intensive manufacturing citywide happens in West Berkeley.

Not including pharmaceutical manufacturer Bayer, Berkeley’s largest private sector employer, “Life Sciences” jobs comprise 50% of the total.15

10 NAICS codes for Scientific Research and Development Services start with the 4-digits 5417. 11 “R&D-Intensive Manufacturing” industries with a significant R&D component were determined to be: NAICS 325 (chemicals), NAICS 326 (plastics and rubber products), NAICS 327 (nonmetallic mineral products), NAICS 333 (machinery), NAICS 334 (Computer and Electronic Products), NAICS 335 (Electrical Equipment, Appliance, and Component), and NAICS 336 (Transportation Equipment).
12 For this analysis, “West Berkeley” businesses were defined as those with the zip code 94710. 13 For the purpose of this analysis, “traditional manufacturers” are the subset of firms classified under NAICS manufacturing codes starting the 2-digits 31-33 that didn’t fall in the R&D-Intensive industries definition described above. More than half (56%) of traditional manufacturers in Berkeley are comprised of Food & Beverage manufacturers.
14 Jobs/firm numbers exclude Bayer as the company’s 1000+ employees skew the analysis. 15 “Life Sciences” is defined using the following NAICS: 325411-Medicinal and Botanical Manufacturing, 325412- Pharmaceutical Preparation Manufacturing, and the 541713-15 codes that fall under 54171 - Research and

TRADITIONAL

MANUFACTURING

R&D-INTENSIVE

MANUFACTURING
LIFE
SCIENCES**

R&D-INTENSIVE

INDUSTRIES
(combined) R&D
Jobs/Firm* 11 15 16 16 17
*Jobs/firm numbers exclude Bayer as it has a significantly larger number of employees than any other company in this analysis.
**includes firms in NAICS 541713-15 (Research and Development in the Physical, Engineering, and Life Sciences) and NAICS 325411-12 - (Pharmaceutical and Medicine Manufacturing)
Item 12 - Attachment 4
Planning Commission
February 1, 2023

6 Thus, OED’s analysis shows that the R&D activity that takes place in West Berkeley has tremendous potential to create jobs, and elicit powerful multiplier impacts which is consistent with the trends being reported by life science industry analysts and real estate brokerage firms:
• “Life sciences now a leading source of US employment growth” and “Biotechnology R&D jobs are growing at their fastest pace on record” (CBRE Research, Q4 2021) • “year-over-year growth in the Biotech R&D sector remained high at 11%” (CBRE Research, Q3 2022)
• In Alameda County, every 1 direct job in the life science industry creates 3.18 jobs overall. (Biocom California Life Science Economic Impact Report 2022) Wages
OED’s data analysis showed that the average wages found in R&D-intensive industries are higher than in many other industries. Berkeley’s R&D intensive industries overall contributed more than 14% of all private sector payroll in Berkeley in the first quarter of 2022.16 Further, almost 30% of the overall West Berkeley quarterly payroll (Q1 2022) came from R&D-intensive industries.

In the first quarter of 2022, average quarterly payroll per employee translated into nearly $139,000 average annual wages in R&D-intensive industries and more than $140,000 annually specifically for companies labeled as “Scientific Research and Development Services” (NAICS 5417). For context, these annual salaries are more than 2.2 times the $62,000 average annual wages reported for traditional manufacturing industries. Overall, in the Bay Area, life science jobs in 2022 paid an average of $148,167 and $142,316 in Alameda County.17 Figure 2 below shows a 2020 snapshot of countywide wages in the biotechnology industry by sub-sector.

Figure 2: Alameda County biotech industry annual wages by sub-sector, 2020

Source: Biocom 2020 California Economic Impact Report – East Bay Worker Demographics
Then there is the question of who fills these jobs18. Though it is challenging to obtain demographic information about all Berkeley R&D firms’ employees, we can use the demographic makeup of the Bay Area life sciences industry as a proxy, since the life science industry comprises more than a third of Berkeley’s total innovation sector. From Biocom California’s 2021 California Economic Impact Report, which includes life science wages by occupational title statewide, we see that the industry provides “various career paths to advance upward” including positions not only for chemists, biologists, and

Development in the Physical, Engineering, and Life Sciences Biotechnology. If firms fit in these codes but were clearly not Life Sciences, their job totals were eliminated from the analysis. 16 See Appendix 1: Berkeley Jobs & Wage Analysis.
17 Biocom California Life Science Economic Impact Report 2022 - Bay Area, online:
https://www.biocom.org/news/eir/economic-impact-report-fact-sheets/. 18 City of Berkeley, General Plan, Economic Development Element, Goal 5: “Promote revitalization in neighborhoods and communities that have historically higher-than-average rates of unemployment.” Item 12 - Attachment 4
Planning Commission
February 1, 2023

7 other scientists with advanced degrees, but also for many types of technicians who have an associate’s or community college degree. 19 Meanwhile, Biocom’s 2022 Bay Area Economic Impact Report shows that 9.8% of workers in the life science industry in Alameda County have no high school education,

16.1% only have a high school degree, and 22.9% either have attended some college without obtaining a degree or have an associate’s degree, meaning almost half of Life Science employees countywide don’t have a bachelor’s degree or higher – see Figure 3 below for the full breakdown. In fact, at Bayer (800 Dwight Way), which is one of Berkeley’s largest private sector employers, the firm does both drug development & manufacturing in Berkeley, and only about one-fifth of their employees have an advanced degree.20
Figure 3: Educational Attainment in CA & Alameda County Life Sciences Industry, 2022

Source: Biocom California, 2022- Bay Area Life Science Economic Impact Report In terms of racial composition, Bayer also provides a point for comparison. The company reported in 2021 that they employed a workforce that was “less than one third ‘white’.” Meanwhile, as of November 2021, 56% of employees at Caribou Biosciences (2929 Seventh St) identified as female and 46% as non-white. These statistics, while not comprehensive, show the industry has the potential to achieve the West Berkeley Plan’s purpose to “maintain the ethnic and economic diversity of West Berkeley’s resident population.”21
Wealth Creation
Several elements in Berkeley’s local economy have tremendous wealth creation potential. UC Berkeley, the state's first land-grant university and the founding campus of the University of California system, ranks globally as the number-one public university in the world overall for undergraduate programs that produce entrepreneurs who go on to obtain venture funding (and is the second-best overall among both public and private universities), according to PitchBook’s 2022 university rankings.22 In 2022 alone, 100 Berkeley innovation-focused companies raised nearly $2.1 billion in capital (from venture investment, convertible securities, government and philanthropic R&D grants, and debt financing). Of this, almost $5.9 million came from government-funded grants for R&D in 2022.

Current economic reports demonstrate robust fundraising opportunities in this sector, with a Q4 2022 report by real estate brokerage firm, JLL, reporting:
“The Bay Area captured 32.4% of national life sciences VC funding during 2022, upholding its status as the leading region in private life sciences funding.”23

19 Biocom California’s 2021 California Economic Impact Report, page 11. 20 Data provided to City of Berkeley staff by staff at the Bayer Campus, 2021. 21 City of Berkeley, West Berkeley Plan, Purpose 2, 1993. 22 PitchBook University Rankings, Oct. 31, 2022 https://pitchbook.com/news/articles/pitchbook-university-rankings 23 JLL, Life Sciences Industry Insight, Bay Area Q4 2022.

Item 12 - Attachment 4
Planning Commission
February 1, 2023

8 Meanwhile, brokerage CBRE reported in Q3 2022 that the National Institutes of Health (NIH) had granted more than $2.1 billion in funding to San Francisco Bay Area institutions in 2022, with UC Berkeley alone accounting for $144,272,440 (7%).24 Overall, according to Biocom California, 40% of NIH funding in California comes to the Bay Area.25 Correspondingly, companies of all stages of growth in this industry are motivated to locate in Berkeley, as it is situated precisely at the confluence of these lucrative streams.

Social & Environmental Impact
In addition to providing jobs and fueling economic development locally, innovation companies develop solutions to some of the world’s greatest social and environmental challenges, such as those related to human health and the fight against climate change.26 In fact, Berkeley is the only city in the Bay Area with a federally-funded national lab and a top-tier research university that has employed 70 faculty and staff who have been awarded 71 Nobel Prizes.27
The following examples of local companies show the breadth of health and environmental innovation happening in Berkeley today:
• Caribou Biosciences, Inc., co-founded by Dr. Rachel Haurwitz, who worked in Nobel prize winner Dr. Jennifer Doudna’s CRISPR gene editing lab on the UC Berkeley campus, has a mission to develop innovative, transformative therapies for patients with devastating diseases. The company’s lead off-the-shelf cell therapy for blood cancer has demonstrated promising clinical data and a second cell therapy is entering the clinic. Headquartered in West Berkeley, the company occupies approximately 60,000 square feet and employs approximately 130 people. In 2021, Caribou raised approximately $495 million, including a successful $350 million initial public offering, to advance the company’s pipeline and technologies. In addition to advancing a pipeline of cell therapies, Caribou gives back to the local community through volunteering for Bay Area clean ups and fundraising for the Women’s Cancer Resource Center in Berkeley and the Alameda food bank.
• UPSIDE Foods, who grows meat, poultry and seafood directly from animal cells without the need to raise and slaughter billions of animals, became the first company in the world to receive a “No Questions” letter from the U.S. Food and Drug Administration (FDA) for cultivated meat, poultry, or seafood in November 2022. Part of a fast growing “alt meat” component of the Bay Area’s food manufacturing industry, the company, which started in 2015 with 5 employees and 36 square feet of shared lab and office space, now leases over 70,000 sq. ft. of property in Berkeley and employs over 200 people in Berkeley.
• Squishy Robotics designs, tests, and builds tensegrity robots that provide situational awareness in HazMat emergencies and at bomb sites. The company, which began and operated out of the Berkeley SkyDeck startup accelerator in Downtown Berkeley, now leases a two-room office plus shared space in the Wareham Development building at 2600 Tenth Street. Squishy Robotics employs seven people and currently has six interns. The company helps protect the lives of first responders and new contracts will expand robot use cases in early wildfire detection and in the discovery and reduction of methane leaks.

24 CBRE, Figures U.S. Life Sciences, Q3 2022.
25 Biocom Bay Area, Bay Area Life Science Economic Impact Report, 2022. 26 These efforts are connected to and supportive of the City of Berkeley General Plan, Economic Development Element, Objective 4: Encourage Environmentally Sustainable Business, adopted 2002. 27 UC Berkeley, https://light.berkeley.edu/nobels/ (multi-years) and Nobel Prize https://www.nobelprize.org/prizes/facts/lists/affiliations.php (2022).

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9 • Twelve, named for the carbon isotope that makes up the vast majority of carbon on earth, started at the Berkeley Lab’s Activate program on Cyclotron Road in 2015 with a team of 3 co- founders. Today, they occupy a 20,000 sq.ft. facility in West Berkeley and employ nearly 250 people. Their technology, which splits carbon dioxide and water into syngas, provides an environmentally friendly way to produce fuels, plastics, and other materials. After raising $130M series B & other funding in 2022 and continuing to secure partnerships with big brands like Alaska Airlines, Microsoft, Virgin Voyages, and P&G, Twelve is looking for 130,000 sq.ft. where they can continue to design, test, and manufacture their carbon transformation technology for use in a range of applications, from chemicals and fuels to products.

Innovation companies – Location Decisions
One of the most critical decisions that an R&D or innovation firm can make is regarding its location.

Location decisions are usually not stand-alone choices of a firm, but are part of a broader set of company decisions and are often related to their ability to access target markets, transportation networks, technology, and talent. Sound location decisions can significantly boost a company's long- term performance; poor ones can sacrifice large amounts of productivity and capital.

Berkeley Innovation Hubs
Berkeley is lucky to be the home of two strong innovation hubs - the areas surrounding the UC Berkeley campus and West Berkeley. Innovation companies often spin out of UC Berkeley and the Lawrence Berkeley National Lab (the Berkeley Lab), fueled by campus-based accelerators like Berkeley SkyDeck, Bakar Labs, and CITRIS Foundry or the Berkeley Lab’s science-based entrepreneur mentorship program, Activate – Berkeley (also known as Cyclotron Road). Companies who have grown out of these institutions, or whose businesses rely on the talent, intellectual property, or equipment they provide, seek to build their enterprises in Berkeley.

Historically, the vast majority of life science and R&D activity in Berkeley has been geographically concentrated in West Berkeley, where R&D is specifically allowed in the MM – Mixed Manufacturing and MU-LI – Mixed Use Light Industrial zoning districts, or on and around the UC Berkeley campus. The majority of the city’s R&D companies that require a workshop or lab, primarily in life sciences or biotechnology, and also other hardware, electronics, medical devices, clean energy and “advanced manufacturing” industries can be found in West Berkeley.

In Downtown Berkeley and the commercial districts close to campus, only software companies and companies that perform R&D in an office (rather than industrial setting or lab) are currently permitted.

Key hubs in Downtown Berkeley that offer co-working or innovation space include Berkeley Sky Deck (2150 Shattuck Ave), Berkeley WeWork (2120 University Ave) and east of campus the Bakar BioEngunity Hub (2630 Bancroft), though other on-campus labs and accelerators like the CITRIS Foundry also house early-stage R&D companies.

Unfortunately, in recent years, Berkeley has lost innovation firms simply because the city did not have enough space to accommodate their uses. Between 2018 and 2021, Berkeley lost more than 70 companies to its closest neighbors (Emeryville, Alameda and Oakland)—including many innovative companies in life sciences, medical devices, plant-based foods, renewable energy (including batteries), robotics, and other food, beverage, and women’s health products. 28 A local broker from commercial

28 Firms that have left Berkeley in recent years (with the city they departed for shown in BOLD) include:

Emeryville: Agenus West (life sciences), Cuberg (battery R&D), Fauna Bio (life sciences), SuitX (medic al devices), Item 12 - Attachment 4
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10 brokerage CBRE lamented in 2021, “They [commercial tenants, innovation companies] all want to be in Berkeley. But they can’t find move-in ready spaces with any assurance.”29 Ari Rokeach, a real estate broker at Newmark, another commercial brokerage working in the East Bay, estimates that the Berkeley-Emeryville corridor has “lost over a half million to a million square feet” in recent years due to limited supply of these move-in ready spaces, of which roughly half went to Alameda.30 In addition to not being able to nurture startups to stay in Berkeley as they grow, the City has a hard time attracting companies due to the city’s reputation as a place that isn’t friendly to startups and that has hard-to-navigate land use policies. For example, a Bay Area real estate developer stated, “It’s so complicated if you are coming in as a tenant! People look at the time required [to locate in Berkeley] and don’t want to touch it; people want cookie cutter space they can move in to without risk. They find that elsewhere.”31
Innovation Firms - Building and Space Needs
The commercial real estate demands of R&D companies depend largely on the stage of the company’s growth, the type of equipment they use, the number of people they employ (or expect to employ), and whether they will have ancillary sales, marketing, manufacturing, warehousing & shipping, or other office or quality control functions on site. For example, the many early stage companies that spin out from UC Berkeley and the Berkeley Lab, or attend local accelerator programs, often seek move-in ready spaces that are larger and more private than they can get in a shared facility like Bonneville Labs or Bakar Labs, but smaller than 15,000 sq. ft. Ideally, the space should permit a combination of office and R&D uses and include high ceilings that can accommodate large scientific equipment, good power32, ductwork for safe ventilation, highly reinforced floors, and easy-to-access loading facilities for shipping and deliveries. As R&D companies grow locally or companies relocate to Berkeley from elsewhere, they often require these same things, only with significantly more square footage (i.e. 30,000+ sq. ft.).

The one area of Berkeley that has the most land and largest parcels available to accommodate these innovation activities is West Berkeley. As mentioned, the vast majority of life science and R&D activity in Berkeley has been geographically concentrated in West Berkeley, where R&D is an allowed use in the MM – Mixed Manufacturing and the MU-LI – Mixed Use Light Industrial zoning districts. In Berkeley, as of this writing, there are approx. 63 acres of land zoned MM, and approximately 187 acres of land zoned MU-LI. For context, together these acres represent about 5.3% of all zoned land in Berkeley (4,700 total acres of land). 33
West Berkeley - Area Overview
West Berkeley includes all the commercial corridors on San Pablo Avenue and west, including 4th Street, International Marketplace (near the intersection of San Pablo & University), the Gilman District, Wareham Development’s Aquatic Park Center campus, and the new R&D facilities being developed by

Xoma (life sciences), Alameda: Checkerspot (materials), Iota Biosciences (life sciences), Kyverna Therapeutics (life sciences), Scribe Therapeutics (life sciences), NAMUH (life sciences) Oakland: Eko Devices (medical devices), Berkeley Brewing Science (food tech), Eclipse Foods (food tech), Lioness (women’s health products). 29 CBRE, Mike Raffeto, Senior Vice President, Personal communication, 2021. 30 Newmark, Ari Rokeach, Managing Director, Personal communication, Jan. 2023. 31 Wareham Development, Chris Barlow, Partner, Personal communication, 2021. 32 400-600 amps is considered the bare minimum for power supply; Cushman & Wakefield brokers report that today’s occupiers often look for 2,000 amps or more when evaluating potentia l sites. (Personal communication, January 2023).
33 City of Berkeley, Open Data Portal, Land Parcels, accessed January 7, 2023 , online:
https://data.cityofberkeley.info/City-Government/Parcels/bhxd-e6up.

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11 Steelwave (“theLAB”), Lane Partners (“Berkeley Commons”), and Oxford Properties Group (“Foundry 31”).

The West Berkeley area includes a number of major, large-floor-plate retailers, a dense cluster of home supplies and construction businesses, non-retail commercial businesses including manufacturers and warehouses – as well as significant biotech and R&D activity. West Berkeley also has a number of vacant or under-utilized manufacturing and warehouse buildings that can provide occasions for graffiti, illegal dumping, abandoned vehicles, and trash to accumulate, particularly along the railroad tracks (3rd Street).

Historically, the greatest share of the R&D and innovation activity has taken place west of San Pablo between Bancroft and Ashby Ave, in facilities owned by Wareham Development, such as their Aquatic Park Center campus, or in Bonneville Labs’ coworking lab space.

Industrial real estate – inventory, costs and trends
Inventory
According to the CoStar multiple listing service that most real estate brokers use, there is a total of more than 10.5 million sq. ft. of Rentable Building Area (RBA) across “Industrial”, “Office” and “Flex” space in West Berkeley, of which “Industrial” properties comprise 50- 60%.34. “Flex” spaces, which enable clients to undertake “Light Distribution”, “Light Manufacturing” and “R&D” activities comprise a third of the total, with the latter accounting for less than a quarter of the RBA in West Berkeley (just over 2.5 million square feet).

In reality, companies undertaking R&D in Berkeley occupy more commercial real estate than properties categorized as “Flex-R&D” by CoStar. For example, companies doing R&D in areas as broad-reaching as air quality monitoring, cultivated meat, electric vehicle battery design, and drug development are occupying spaces categorized as “Industrial-Warehouse”, “Office” and other “Flex” sub-categories, like “Light Distribution”.

Additionally, more R&D facilities will be available in the period ahead. In the last five years (since 2017), the City of Berkeley has permitted more than 800,000 square feet (sq. ft.); these are either under construction, entitled, or under review, and include properties such as Foundry 31, theLab Berkeley, Berkeley Commons, and 742 Grayson.35 Of the owners of R&D facilities citywide, Wareham Development has historically been the largest player, with a portfolio of 775,000 sq. ft. in Berkeley (approximately 40% of the 2.5 million RBA of “flex” spaces available today), of which the vast majority is inhabited by R&D tenants.

Using their proprietary data collection method, real estate brokerage firm JLL reported just over 32 million sq. ft. of life science (“lab”) inventory in Q4 2022 in the Bay Area overall, of which Berkeley’s inventory comprised 2.7% (871,017 sq. ft.). Berkeley’s nearly one million sq. ft. of life science inventory comprises approximately a tenth of the overall supply of commercial real estate in West Berkeley, not including retail spaces.

34 See Appendix 3 for data on sq. ft. by property type in West Berkeley from CoStar, accessed January 2023. As a point of comparison, the real estate brokerage, Cushman & Wakefield, reported 6,344,936 sq. ft. of space in their MarketBeat East Bay Oakland, Industrial report for Q3 2022. 35 See Appendix 5 for the City of Berkeley’s R&D Development Pipeline as of January 10, 2023.

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12 Of these facilities, JLL reported a 5.3% lab vacancy rate in Q4 2022 in Berkeley, which is lower than the

14.7% vacancy rate in neighboring Emeryville, 10.1% rate reported for the East Bay, and the 6.5% lab vacancy rate reported for the Bay Area overall.36
Meanwhile, the city’s small size (and thus small overall inventory of industrial buildings) paired with its proximity to major innovation institutions, talent, and population centers also creates an imbalance between the demand for advanced manufacturing space and local supply. Real estate firm, Cushman & Wakefield, reported a 1.1% overall vacancy rate in Berkeley’s industrial real estate market for Q3 2022, with several East Bay industrial brokers noting that the market for light manufacturing and warehouse space is very tight in Berkeley. The city has less building stock overall and clients often have an easier time finding affordable space for scaled production in East Bay cities such as San Leandro, Oakland, Fremont and Hayward.37
Prices
Costs per sq. ft. for West Berkeley commercial property vary dramatically based on whether they are based on sale or rental price and also based on the property age, quality, embedded operating systems, submarket location, and other included amenities or assets. Pricing range is also affected by total rented square footage, with smaller spaces (such as the type that are prevalent in West Berkeley) tending to drive a higher price per square foot.38 See Figure 4 for a summary of the range of rents associated with different West Berkeley commercial property types.

Figure 4: Rent Range associated with commercial property types found in West Berkeley, January 2023 Manufacturing
Warehousing
(traditional)
Warehousing
(Advanced
Manufacturing
/ R&D)
Life
Sciences/
Lab Office Retail
Rents per
sq. ft.
(monthly) $0.78 - $1.8839
$0.90 -
$2.0040 $1.49 - $2.2541
$2.75 -
$7.4442
$2.50 -
$3.2543
$3.00 -
$3.2544

36 See Appendix 4 for life sciences real estate statistics for Q4 2022 from brokerage firm JLL. 37 Cushman & Wakefield, MarketBeat East Bay Oakland, Industrial Q3 2022; Communication with Ted Anderson and Andrew Schmieder, Cushman & Wakefield, Jan. 2023; Communication with Ari Rokeach, Newmark, Jan. 2023. 38 Steve Smith, Norheim & Yost. Personal communication, January 18, 2023. 39 According to CoStar, rent prices for “Manufacturing” properties were between $0.78 -$1.88 per sq. ft. per month in December 2022; Cushman & Wakefield reported asking rents in Q3 2022 as $1.49 per sq. ft. for “Manufacturing” space in Berkeley.
40 According to CoStar, rent prices for “Warehousing” properties (which includes many R&D facilities) were between $0.90 -$3.41 per sq. ft. per month; Steve Smith of Norheim & Yost reports that basic warehouse spaces typically lease for less than $2 per sq. ft. In Q3 2022, Cushman & Wakefield reported Warehouse and Distribution space leasing for $2.83 per sq. ft. in Q3 2022.
41 CoStar + conversations with real estate brokers from Cushman & Wakefield, Norheim & Yost, and JLL . Norheim & Yost reports that warehouse spaces with additional amenities or updates that make them suitable for R&D uses lease in the $2.75-$3.25 range; Cushman & Wakefield also provided a recent example from the Pyramid building (901 Gilman) where upgraded warehouse space is leasing for $1.75 per sq. ft. and says “ownership’s willingness to improve the operating system of the building can drive rents to $2.25 NNN [triple net] for these types of facilities.” 42 CoStar + JLL Q4 2022 Life Sciences Market Insights Report & personal communication, Grant Yeatman, JLL. 43 Norheim & Yost’s estimate for leasing rates for “smaller creative office spaces in West Berkeley”, January 2023; Colliers’ Oakland Office 2022 Q3 report shows Berkeley Class A office space (found citywide) leasing at an average of $4.45 per sq. ft.
44 CoStar + conversation with Steve Smith, Norheim & Yost, Q1 2023.

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13 By far, Life Sciences R&D facilities which include a combination of office, lab, and warehousing space plus amenities such as loading docks and reliable, high voltage power command the greatest price. In fact, nationally, CBRE reported that, for Q3 2022, “The average lab asking rent of the top 12 U.S. markets increased by 6.8% quarter-over-quarter to [$5.02] per sq. ft. NNN.”45 According to JLL, in Q4 2022, Berkeley’s average “lab” rents were $7.44 per sq. ft. per month, above the $7.15 per sq. ft. average across the Bay Area and $7.06 per sq. ft. average in neighboring Emeryville.46 Trends
In terms of fundraising and new company formation, recent years (2020-2022) have been unprecedented for the life science industry, and this pace may not continue indefinitely, especially as investors and company leaders alike try to conserve capital in anticipation of an economic slowdown ahead. However, the market analysts and East Bay real estate brokers consulted for this report all agreed that Berkeley’s market fundamentals were enduringly strong and projected that the demand for life sciences, climate technologies and other advanced manufacturing industries would continue in the years ahead.

In the Bay Area overall, real estate brokerage firm JLL reported that asking rents for life science facilities at the end of 2022 were 5.8% above 2021 levels, leasing volume continues to exceed pre-pandemic levels, and they expect more than 43 million square feet of life science facilities in the development pipeline (based on projects under development now from both ground-up building and conversions and short and long term proposed projects. Ari Rokeach, Managing Director of Newmark’s Bay Area life science practice, affirms that even with the changing market conditions (including the recent increase in interest rates nationally and venture capital slowdown), there is still “more demand than supply of built- out lab spaces” and the market is “still very healthy from the perspective of there being more companies that want built-out lab space than is readily available today”.47 Meanwhile, when asked about leasing trends from manufacturing companies, Steve Smith of Norheim & Yost, whose real estate firm has worked with industrial clients in Berkeley for many decades, reported in January 2023 that, “It’s just dead right now; very few are looking for space and, according to CoStar, nationally sales are slow.” However, he noted that this may be very specific to the current period, which is amidst the holiday season, rising interest rates, and people’s fears of an economic slowdown ahead.

Cushman & Wakefield brokers working in West Berkeley, while also noting that there are indicators of a coming economic softening (i.e. a significant reduction in property sales volume, tenants taking longer times to make decisions, requests for shorter lease commitment times, and more subleases becoming available), offered the positive outlook: “Leasing seems super stable with less tenant velocity”. They also expect more industrial space will come on the market in 2023 (due to delayed delivery because of PG&E lag times related to establishing power connections) that will probably increase vacancy rates by “a point or so.” Ultimately, the real estate brokers consulted for this report seemed to be in agreement that, given Berkeley’s limited supply of developable land for R&D and advanced manufacturing uses, and its location within the Bay Area and near major innovation and entrepreneurship engines, Berkeley could only benefit from allowing land to accommodate R&D and advanced manufacturing uses and

45 CBRE “Figures, Life Sciences, Q3 2022” https://www.cbre.com/insights/figures/q3-2022-us-life-sciences-figures; NNN = triple-net, or a lease agreement on a property whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. 46 See Appendix 4 for life sciences real estate statistics for Q4 2022 from brokerage firm JLL. 47 Ari Rokeach, Managing Director, Newmark Group, Bay Area life science practice, personal communication , Jan. 2023.

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14 users, even if short-term economic downturns and more supply coming online in the years ahead were to increase vacancy rates in these sectors beyond the current levels.

Benefits of the new zoning: M-RD
On April 20, 2021, Berkeley City Council approved a referral requesting that the Pacific Steel Casting property be rezoned from its current designation for Manufacturing (M) land uses to allow mixed-use light-industrial (MU-LI). Subsequently, the September 19, 2022 Council referral, Keep Innovation in Berkeley, requested the City to continue efforts to encourage the growth of R&D in Berkeley by allowing R&D uses in select commercial zones citywide. Both of these referrals speak to the importance of this rezoning opportunity, with the Keep Innovation in Berkeley referral acknowledging that, if the City’s zoning regulations do not provide sufficient opportunities for emerging growth companies, those companies will leave Berkeley for nearby cities that accommodate them with eligible land, such as Oakland, Emeryville, San Leandro, and Alameda.48 At present, Berkeley is fortunate to host two major catalyst institutions that produce R&D-intensive businesses seeking suitable real estate to accommodate their growth; and to have a number of contiguous underutilized parcels of land in West Berkeley that are well positioned to supply it.

This opportunity did not go unnoticed when the 8-acre Pacific Steel Casting site ceased operations in 2018 (due to bankruptcy) and left significant liabilities on the land to be sorted out by a receivership administered by the courts (including close to $24M in unpaid steel workers’ pensions, and environmental clean-up costs that will likely exceed $9M). Though well-marketed as the Gilman Gateway as a strictly industrial opportunity by Cushman & Wakefield, since 2018, the site has sat vacant with few buyers expressing interest.49
In order to engender interest and opportunity in the area, Berkeley City Council passed two legislative items; the Future of the Pacific Steel Casting (PSC) Site referral (2018)50 and the Referral to the Planning Commission to Establish a Zoning Overlay at the Pacific Steel Casting Property (2021).51 The 2021 referral directed staff to consider a rezone due to “the unique issues of public concern associated with this property… [and to include] allowances to enable all MU-LI uses and override any existing constraints in the Berkeley Municipal Code for Zoning (Title 23)…for the PSC [Pacific Steel Casting] property.” In the early spring of 2022, the neighboring Berkeley Forge and Tool site (1.17 acres, two parcels) announced that it would cease operations in December 2022; and the Berkeley City Council ranked the Referral to the Planning Commission to Establish a Zoning Overlay at the Pacific Steel Casting Property as its number one priority for implementation.52
On October 25, 2022, SPUR Capital, with the assistance of Rhoades Planning Group (“the applicant”), submitted a zoning map amendment application to the City of Berkeley Planning and Development Department encompassing the former Pacific Steel Casting and Berkeley Forge and Tool sites totaling 15 parcels and approximately 9.3 acres. The area is roughly bounded by Gilman Street to the north, the

48 Berkeley City Council, Referral: Keep Innovation in Berkeley, adopted September 19, 2022. 49 Cushman & Wakefield, Written Communication to District 1 Councilmember R. Kesarwani, RE: Land Values West Berkeley & Approximate Amounts Needed to Clear All Creditors for the Pacific Stee l Castings Buildings, October 28, 2019. See Appendix 5.
50 Berkeley City Council, Future of the Pacific Steel Casting (PSC) Site, Item 7, November 13, 2018. 51 Berkeley City Council, Referral to the Planning Commission to Establish a Zoning Overlay at the Pacific Steel Casting Property, Item 35, April 20, 2021.
52 Berkeley City Council, Special Meeting, 2022 City Council Referral Prioritization Process Using Re-Weighted Range Voting (RRV), Item 1, April 26, 2022.

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15 Union Pacific Railroad right-of-way (3rd Street) to the east, Page Street to the south, and Eastshore Highway to the west, and includes three parcels that are not owned by the applicant. Currently zoned M-Manufacturing, the map amendment application seeks a new zoning designation in the M-series:

Manufacturing – Research Development (M-RD) which would allow for a future development – entitled as Gilman Forge – consisting of R&D, laboratory, business and professional offices, and light manufacturing uses, in roughly 1,000,000 sq. ft. of gross floor area, and a building height up to 105 feet.

The M-RD zoning designation would be applicable to the area described above, as well as to the additional three parcels in the zoning district boundary not owned by the applicant (1306 Third Street, 600 Gilman, and 1433 Eastshore Highway).

Allowing R&D uses as part of the proposed M-RD zoning creates more than 10 acres 53 of land and nearly 1M sq. ft. of building space to accommodate the needs of growing innovation companies within Berkeley and beyond, at all stages of growth. The project area is the largest set of contiguous parcels citywide that will be able to accommodate R&D uses (with the exception of the Bayer campus at 46 acres, and the UC Berkeley Campus, which is under the jurisdiction of the UC Regents, a statewide agency). For context, the next largest area dedicated to R&D life science uses in Berkeley is the former American Soils site (600 Addison St) at approximately 8 acres. Currently under development as the Berkeley Commons project, that site will offer 263,752 sq. ft. of R&D space within two buildings that are 470,986 sq. ft. in size by 2024, with the remainder of the space approved for light manufacturing.54 All other M-prefixed zoned sites in Berkeley in the R&D pipeline are smaller by a considerable factor.

Establishing the M-RD zoning for one of the largest contiguous areas available in West Berkeley in 2023 will provide the conditions necessary to establish an active use on this site and proactively help the City to achieve its Strategic Plan goal of “fostering a dynamic, sustainable, and locally-based economy.”55 Economic Impact of re-zone
Maintaining a diversified economy is essential to the economic development goals of the city. In fact, the Office of Economic Development strives to create an environment where businesses of all types can thrive, ranging from family-owned independent retailers to innovative startups creating disruptive technologies to basic and advanced manufacturing industries that create products (and jobs) at scale.

The dimensions of the positive economic impacts include: new direct and indirect jobs, improved neighborhood vitality for both commercial and residential neighbors; general benefits to the community including contributions to the city’s public art, and affordable housing and affordable child care mitigation funds, environmental cleanup, and development of new infrastructure elements including improved bike, pedestrian, and open space facilities where none currently exist.

Direct & Indirect Jobs
This project can take advantage of local talent so that fewer jobs are exported to other Bay Area life science/ R&D hubs like South San Francisco, Alameda, and San Leandro. At project build out, the Gilman Forge project is estimated to create over 2,700 permanent life science related jobs on site, with an additional 15% of jobs (405) supporting and servicing employment, as well as several hundreds of

53 Notice of Preparation (NOP) of a Draft EIR, Gilman Gateway Rezone Project, December 21, 2022, State Clearinghouse Number 2022120549, CEQA Net, online: https://ceqanet.opr.ca.gov/2022120549. 54 See Appendix 5 for Berkeley’s R&D Facility Development Pipeline, 2023. 55 The City of Berkeley’s Strategic Plan identifies the long-term goals and short-term priorities that the City government will focus on to benefit the Berkeley community. Online: https://berkeleyca.gov/your- government/our-work/strategic-plan.

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16 temporary construction jobs during the development phase of 1M sq. ft. of built area which potentially could last through multiple years of phased construction.

The future M-RD zoning will also support the creation of a campus with potential job opportunities for Berkeley residents who currently commute to other places for these same jobs, thereby improving Berkeley’s job/housing balance and reducing negative impacts associated with lengthy commute patterns. In addition, the project can offer educational opportunities and career pathways for Berkeley Unified School District, Berkeley City College, and UC Berkeley students engaged in STEAM curriculum (science, technology, engineering, the arts, and mathematics) activities.

In addition, local suppliers of cell cultures, lab glassware, and other materials or equipment needed for R&D activities will also stand to benefit economically from this development.

Neighborhood Vitality & Induced jobs
In addition to the direct and indirect jobs created by the development of this site are the induced jobs, or those that will be generated by local spending on goods and services by employees. For example, owners of the Trumer Pils brewery (on 4th & Camelia), retailers in the Fourth Street and South of University (SoU) districts along 4th and 5th Streets, and several artists, restauranteurs, and other Gilman District businesses were delighted to hear that the rezoning of these parcels could enliven the area and increase their proximity to several thousand new customers and patrons.

In this case, zoning changes that set the table for future development will allow the land to be transformed from vacant, contaminated space into an asset for the Berkeley innovation ecosystem and Berkeley’s overall economy. Vacant properties provide no jobs for anyone, regardless of education or color. In addition to not being additive, vacant or underutilized properties also take away. In fact, West Berkeley’s vacant sites have a direct impact on neighborhood vitality as the lack of regular on-site activity provides opportunities for crime, graffiti, violence and other street behaviors that impact nearby businesses both fiscally (i.e. damaged property) and emotionally (i.e. threats to patrons and employees).

Without active, engaged users, vacant properties in West Berkeley provide a ripe environment for long- term, unsanctioned parking, abandoned vehicles, trash buildup, and, in some cases, tent or camper van encampments sheltering individuals with mental health and substance abuse challenges. Included as Appendix 7 is the After Action Report on the 2nd Street & Page St encampment closure from November 2022 which details the removal of 5.75 tons (11,500 pounds) of debris from the project area. The Homeless Response Team (led by the Neighborhood Services/Code Enforcement division of the City Manager’s Office) documented and repeatedly observed “numerous health and safety violations in the area, including loose and scattered syringes; live and dead rodents and rodent harborage conditions including accumulated trash and debris and open food sources; and debris and belongings, including tents, spilling into the lane of traffic.”
Social, Environmental & Infrastructure Benefits
If the proposed M-RD zoning is adopted, future projects, including the conceptual Gilman Forge project, have the potential to spur the following direct environmental and infrastructure benefits:
• Careful environmental cleanup of a contaminated site, • Making the former steelworkers whole with the funding of their pensions (from the land sale proceeds),
• Adaptive reuse of an existing 10,000 square-foot building at 1330 Second Street, which will feature a repurposing of the Pacific Steel catenary crane as design element, creating a central Item 12 - Attachment 4
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17 gathering place for the community that will both celebrate Berkeley’s industrial past and create a draw for future industry professionals to locate in Berkeley, • A circulation network of sealed roads and improved railroad crossing gates where there currently aren’t ones in place,
• New bicycle, pedestrian and open space amenities adjacent to the upgraded Gilman I-80 interchange that will improve the quality of life for commercial and residential neighbors, • Fee payments (on the order of tens of millions of dollars56) to the city’s affordable housing, affordable childcare, and public art funds. These payments may constitute some of the single biggest contributions to these funds since their establishments in 2014 and 1999 respectively.

Benefits associated with like catalytic developments in Berkeley 600 Addison/Berkeley Commons
The 470,986 sq. ft. of light manufacturing and R&D space located at 600 Addison Street (Berkeley Commons), which is being developed by Lane Partners and is currently under construction, provides an instructive example of what benefits can be anticipated from future development projects on the former Pacific Steel Casting site. The economic and public benefits realized at the 600 Addison project to date (January 2023) include: payment of the public art, affordable housing and childcare mitigation fees; over $30,000 in sales tax revenue accrued to the city on the steel purchased for the building frame57; significant upgrades to the project-adjacent Bolivar Drive including re-paving, and detailed curb and gutter work; and planned public art installations, including a sculpture garden and trail at the project- adjacent Aquatic Park.58
Gilman Gateway - Benefits Realized & Goals Supported
To date, the project sponsor has already committed approximately $20M in unfunded pensions/land cost, and $9M in environmental clean-up and infrastructure improvements, with the final amount to be determined by the Department of Toxics and Substance Control (anticipated 2023). Other benefits will include fees paid to the affordable housing and affordable child care mitigation funds for the creation of new commercial space, and fees paid to public art fund and associated city enterprise funds (i.e. stormwater mitigation, building and plan check fees etc.).

As per the economic implications discussed throughout this report, updated zoning for this parcel would also enable the achievement of a number of the goals articulated in the City’s General and Strategic Plans. With one single zoning change, this project recasts Pacific Steel and its neighboring parcels into the next century of industrial activity and drives Berkeley’s culture of innovation forward.

Adopting new zoning that allows for nearly one million square feet of new production and R&D space in West Berkeley will have an incredible cumulative positive economic impact to the city. Making more land permissible for essential R&D and advanced manufacturing industries, especially on an underutilized site, is not only in line with the City’s General Plan Objectives, but is a tremendous opportunity for pandemic recovery and the future of the Berkeley economy.

56 Affordable housing mitigation fees cost $5.81 per sq. ft. of developed R&D space (2022 numbers); Affordable childcare mitigation fees cost $1.03 per sq. ft for R&D; the Public Art on Private Development (“Percent for Art”) policy requires developers to pay 1.75% of construction costs to create on-site publicly accessible artwork or they can pay an in-lieu fee to the Private Percent Art Fund valued at 0.8% of construction costs. 57 This does not include subsequent building materials purchased for this project (HVAC equipment etc.), though the slight uptick in “business to business” sales tax transactions in Q3 2022 may be attributable to additional materials purchased in service of this project’s development. 58 See the recently released, City of Berkeley, Aquatic Park Call for Artists ($350,000), Civic Arts Program, 2022.

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February 1, 2023

18 APPENDIX
Appendix 1: Berkeley Jobs & Wage Analysis

Source: State of CA Employment Development Department (EDD) Q1 2022, based on Unemployment Insurance; *see report text (pages 4-7) for discussion.

Employment
Firms 5,398
Private sector Jobs 45,087
All manufacturing (NAICS 31-33) + R&D (NAICS 5417) Jobs 5,040 All manufacturing (NAICS 31-33) + R&D (NAICS 5417) Firms 281 Manufacturing Jobs (NAICS 31-33) 3,294
Manufacturing Firms (NAICS 31-33) 176
Jobs/Firm in Manufacturing (NAICS 31-33) 19
Traditional Manufacturing* Firms 121
Traditional Manufacturing* Jobs 1,369
Jobs/Firm (Traditional Manufacturing*) 11
R&D-Intensive Manufacturing Firms (NAICS 325-27; 333-336) 55 R&D-Intensive Manufacturing Jobs (NAICS 325-27; 333-336) 1,925 Jobs/Firm (R&D-Intensive Manufacturing Industries) 35
Jobs/Firm (R&D-Intensive Manufacturing Industries)- w/out Bayer 15 R&D Firms (NAICS 5417 only) 105
R&D Jobs (NAICS 5417 only) 1,746
Jobs/Firm in R&D (NAICS 5417) 17
R&D-Intensive Firms combined (325-27, 333-336, 5417) 160 R&D-Intensive Jobs combined (325-27, 333-336, 5417) 3,671 R&D-Intensive Jobs combined (325-27, 333-336, 5417) - w/out Bayer 2,591 Jobs/Firm (R&D-Intensive Industries combined) 23
Jobs/Firm (R&D-Intensive Industries combined)- w/out Bayer 16 Wages (citywide) Total
Quarterly payroll 901,873,850
Quarterly payroll - All manufacturing (31-33) + R&D (NAICS 5417) 148,707,572$ Quarterly payroll - All manufacturing (31-33) 87,547,731$ Quarterly payroll - Traditional Manufacturing* 21,304,416$ Quarterly payroll - R&D Intensive Manufacturing* 66,243,315$ Quarterly payroll - R&D only (NAICS 5417) 61,159,841$
Quarterly payroll - R&D-Intensive combined (325-27, 333-336, 5417) 127,403,156$ avg annual salary R&D only (NAICS 5417) 140,114$
avg annual salary (combined R&D-intensive jobs) 138,821$ avg annual salary (all manufacturing NAICS) 106,312$
avg annual salary (traditional manufacturing) 62,248$
Berkeley (Citywide)
Item 12 - Attachment 4
Planning Commission
February 1, 2023

19 Appendix 2: West Berkeley Jobs & Wage Analysis

Source: State of CA Employment Development Department (EDD) Q1 2022, based on Unemployment Insurance.

State of CA
Employment
Development
Department (EDD)
Q1 2022, based on
Unemployment
Insurance
West Berkeley (zip code 94710)
Jobs in WB (zip code 94710) 14,493
Manufacturing Jobs (NAICS 31-33) in WB 2,637
% Manufacturing jobs in WB 80%
R&D-Intensive Manufacturing Jobs (NAICS 325-27; 333-336) in WB 1,638 % R&D-Intensive Manufacturing Jobs (325-27; 333-336) as % of MFG jobs in WB 62% % R&D-Intensive Manufacturing Jobs (325-27; 333-336) as % of citywide MFG jobs 85% R&D Jobs (NAICS 5417) in WB 1,016
% R&D (NAICS 5417) jobs in WB 58%
R&D-Intensive jobs combined in WB (NAICS 325-27, 333-336, 5417) 2,654 R&D-Intensive Firms combined in WB (NAICS 325-27, 333-336, 5417) 71 % R&D-Intensive jobs in WB 72%
Wages (West Berkeley) Total
Quarterly payroll 331,500,363$
Quarterly payroll - manufacturing (NAICS 31-33) 87,547,731$ Quarterly payroll - traditional manufacturing (NAICS 31-33) 16,507,989$ Quarterly payroll - R&D-Intensive combined (325-27, 333-336, 5417) 98,329,151$ Employment
Item 12 - Attachment 4
Planning Commission
February 1, 2023

20 Appendix 3: Commercial properties in West Berkeley (by type & area) Space Type
Rentable Building
Area (RBA) (sq. ft)
% of
RBA
Total
Available
Space
(sq. ft)
% of
Available
Space
Flex 3,486,823 32.9% 685,630 71.0%
Light Distribution 131,303 1.2% 0.0%
Light Manufacturing 346,918 3.3% 4,571 0.5%
R&D 2,555,620 24.1% 645,700 66.8%
(Other) 452,982 4.3% 35,359 3.7%
Industrial 5,239,638 49.5% 128,096 13.3%
Distribution 277,315 2.6% 0.0%
Food Processing 177,563 1.7% 49,997 5.2%
Manufacturing 760,080 7.2% 2,780 0.3%
Service 125,303 1.2% 0.0%
Showroom 52,302 0.5% 0.0%
Truck Terminal 6,000 0.1% 0.0%
Warehouse 3,695,927 34.9% 36,934 3.8%
(Other) 145,148 1.4% 38,385 4.0%
Office 1,867,963 17.6% 152,445 15.8%
Loft/Creative Space 68,854 0.6% 4,400 0.5%
Medical 14,996 0.1% 360 0.0%
Office Building 621,627 5.9% 22,428 2.3%
Office Live/Work Unit 67,894 0.6% 1,000 0.1%
Office/Residential 10,804 0.1% 0.0%
(Other) 1,083,788 10.2% 124,257 12.9%
Grand Total 10,594,424 100.0% 966,171 100.0%
Source: Compiled from CoStar Multiple Listing Service for West Berkeley area (west of San Pablo Ave.), January 2023.

Item 12 - Attachment 4
Planning Commission
February 1, 2023

21 Appendix 4: JLL Bay Area Lab Statistics, Q4 2022

Source: JLL, Q4 2022, Life Sciences Industry Insight

Item 12 - Attachment 4
Planning Commission
February 1, 2023

22 Appendix 5: Berkeley’s R&D Facility Development Pipeline Address Entitlement Date/
Application Date
Square Footage Status
3100 San Pablo ZP2019-0055
Approved: 9/16/20

Add 69,800 sq. ft. of
R&D space in an existing
402,742 sq.-ft. building.

Building Permit (BP)
finaled 11/28/22
600 Addison ZP2019-0215
Approved: 6/16/21
Construct 263,752 sq. ft. of
R&D space within two
buildings that are 470,986
sq. ft. in size.

Buildings A and B:

Phase II BP issued
4/7/22 (under-slab
utility, foundations and
superstructure)
Bayer DA
Amendment
Approved: 12/14/21 Construct 918,000 sq. ft.
(minus 30,000 sq. ft. for
parking), total 888,000 sq.
ft. to include production,
laboratories, maintenance,
administration uses
30-year buildout
horizon
TheLAB ZP2021-0096
Approved: 7/20/22
Construct 124,539 sq. ft. of
R&D space in 159,143 sq. ft.
building at 787 (747)
Bancroft
Demo permit issued
8/23/22; building
permit currently under
review
742 Grayson ZP2021-0161
Approved: 10/5/22
177,923 square feet of R&D
space in a new 213,279
square-foot building
No BP submitted
811 Carleton ZP2021-0003
Submitted: 1/11/21
178,850 R&D
72,757 manufacturing
Incomplete zoning
application as of
8/12/22
Total Constructed: 69,800 sq. ft.

Total Entitled, Not Constructed: 566,214 sq. ft.

Total Under Review: 178,850 sq. ft.

Note: totals do not include Bayer DA, which is an integrated campus where floor area is not designated by separate uses.

Source: City of Berkeley Planning Department, retrieved January 10, 2023; includes projects for the last 5 years (since 2017).

Item 12 - Attachment 4
Planning Commission
February 1, 2023

23 Appendix 6: Approximate Dollar Amounts Required to Clear All Creditors from Existing Steel Casting site
Item 12 - Attachment 4
Planning Commission
February 1, 2023

24 Item 12 - Attachment 4
Planning Commission
February 1, 2023

25 Appendix 7: 2nd Street Encampment Closure After Action Report (November 2022)

Item 12 - Attachment 4
Planning Commission
February 1, 2023

26 Item 12 - Attachment 4
Planning Commission
February 1, 2023

27 Item 12 - Attachment 4
Planning Commission
February 1, 2023

Planning and Development Department
Land Use Planning Division
1947 Center Street, Berkeley, CA 94704 Tel: 510.981.7410 TDD: 510.981.6903 Fax: 510.981.7420 E-mail: [email protected]
DATE: March 1, 2023
TO: Members of the Planning Commission
FROM: Ashley James, Senior Planner
SUBJECT: Pacific Steel Casting / Gilman Forge Zoning and General Plan Amendments and Environmental Impact Report -- Project Update

SUMMARY
In response to a City Council referral to create a zoning overlay at the former Pacific Steel Casting site and a request for a zoning map amendment submitted on behalf of the majority property owner (referred to as Gilman Forge), City staff are preparing Zoning Ordinance and Zoning Map amendments and associated General Plan amendments to re-zone an approximately 11-acre area within the West Berkeley Plan Area from M (Manufacturing) to a new district entitled M-RD (Manufacturing, Research and Development) that encompasses all of the properties on those blocks between Gilman and Camelia Streets west of the railroad (3rd Street). At their February 1, 2023 meeting, the Planning Commission received a presentation on proposed draft zoning amendments and conducted a public hearing on the scope and content of the Environmental Impact Report (EIR) being prepared for the amendments and an associated development concept plan. Based on the feedback received at that meeting, staff have revised the draft zoning standards and the Planning Commission is asked to receive a follow-up staff presentation and provide additional feedback to confirm project direction in order to advance the EIR.

BACKGROUND
At the February 1, 2023 Planning Commission meeting, staff presented draft proposed M-RD development standards for feedback, which included height, floor area ratio, setbacks and building separation, lot coverage, and vehicular and bicycle parking. The Commission was also requested to provide comment on whether an open space standard should be included to provide additional amenities for employees and visitors, and whether objective design standards should be developed to ensure high-quality site and building design. The Commission also received a presentation from the Zoning Map Amendment applicant regarding the Gilman Forge Concept Plan, and a presentation from the City’s environmental consultant, LSA, regarding the environmental review Item 12
Planning Commission
March 1, 2023

Pacific Steel Casting / Gilman Forge Zoning and Plan Amendments and Draft Environmental Impact Report -- Project Update

process. Commissioners and community members provided comments on the scope and content of the EIR.

Planning Commission supported allowing all MU-LI uses, and acknowledged some adjustments could be useful to ensure office space does not outcompete R&D space.

The Commission did not support a 50% maximum lot coverage, but instead suggested adopting the MU-LI district standard (100%) in order to avoid creating non-conformities, or using 75% to reflect the needs of the Gilman Forge concept plan. The Commission did not support creating an open space standard, as it could have consequences for future development, and the project area is not likely to be a destination for residents.

The Commission was interested in ensuring bicycle and pedestrian access to the site and increasing bicycle parking and car share facilities. The Commission did not support creating objective design standards, as the City’s current design review process has produced projects with a high quality of design.

REVISED ZONING REGULATIONS
Based on Commission feedback at the February 1, 2023 meeting, staff have revised the draft M-RD zoning regulations, as summarized in Table 1 below.

Table 1. Summary of Revised M-RD Development Standards
Regulation Existing M Standard February 1, 2023
Proposed Standard
March 1, 2023
Proposed Standard
Maximum Height 45 feet 105 feet 105 feet
(No change)
Maximum Floor
Area Ratio (FAR)

2.0 2.0 2.0
(No change)
Minimum Setbacks,
and Building
Separation
Not regulated Not regulated Not regulated
(No change)
Maximum Lot
Coverage
Not regulated 50% maximum 80% maximum
(Increased)
Minimum Off-Street
Parking and
Minimum Bicycle
Parking
Vehicle: See BMC
Table 23.322-4
Vehicle: Same as
Table 23.322-4, with
following changes:
• All non-residential
uses except uses
listed below: 1 per
1,000 sq. ft.
• Laboratories: 1
per 1,000 sq. ft.

Vehicle: Same as
Table 23.322-4, with
following changes:
• All non-residential
uses except uses
listed below: 1 per
1,000 sq. ft.

Laboratories: 1 per
1,000 sq. ft.
(No change)
Bicycle: 1 per 2,000
sq. ft
Bicycle: 1 per 2,000
sq. ft.

Bicycle: 1 per 2,000
sq. ft (No change)
Item 12
Planning Commission
March 1, 2023

Pacific Steel Casting / Gilman Forge Zoning and Plan Amendments and Draft Environmental Impact Report -- Project Update

Allowed Uses
The goal of the Council referral is to facilitate reinvention of the project site so that it contributes to the City’s tax base and vitality of the local economy. The purpose of the current zoning designation – Manufacturing (M) – is to encourage heavy manufacturing uses, whereas development interest for this area is towards biotechnology laboratories, warehouse and commercial uses, and office space. Pension and environmental clean- up costs, which are unique to this site, require greater investment and thus return from a potential buyer than what is feasible under the current zoning.

Given these factors, the proposed zoning targets land uses that provide higher rents and wages, and greater job creation rates. As described in the report by the City’s Office of Economic Development, research and development-intensive uses constitute a significant portion (over 60 percent) of overall manufacturing jobs in West Berkeley and the uses produce higher job creation rates and wages than heavy manufacturing industries, and command higher rents than traditional manufacturing.1 Therefore, staff recommends including allowed uses from the MU-LI district that focus on greater job creation, employment density, and target innovation industries in the M- RD district. Staff recommends that the following MU-LI uses be excluded from the M-RD district:
• Vehicle Service and Sales use categories: Large Vehicle Sales and Rental, Vehicle Service and Sales, Vehicle Repair and Service, Vehicle Wrecking. • Industrial and Heavy Commercial use category: Bus/Cab/Truck/Public Utility Depot, Commercial Excavation, Contractors Yard, Dry Cleaning and Laundry Plant, Construction Products Manufacturing, Recycled Materials Processing, and Recycling Redemption Center.
• Miscellaneous uses: Live/Work.

It is anticipated that the project area would likely transform over time towards new development of in-demand uses described above. Under the M-RD zoning, current uses, including the vehicle rental use at 600 Gilman Street and recycled materials processing use at 1433 Eastshore Highway would become lawful non-conforming; the live/work use at 1306 Third Street would remain lawful non-conforming. The Berkeley Zoning Ordinance allows lawful non-conforming uses to remain occupied in their current condition as of right, and both changes to and substantial expansions of non-conforming uses are allowed by obtaining a Use Permit.2 Also, portions of the project site and surrounding areas contain semi-vacant and vacant parcels that area conducive to temporary uses, such as contractor yards. The M-RD zoning would not prohibit a 1 February 1, 2023 Planning Commission meeting, Pacific Steel Casting Zoning and Plan Amendments and Draft EIR Scoping Session, Attachment 4: City of Berkeley, Office of Economic Development. The Innovation Ecosystem in West Berkeley: An Economic Snapshot, January 2023. https://berkeleyca.gov/sites/default/files/legislative-body- meeting-agendas/2023-02-01%20PC%20Agenda%20Packet_0.pdf 2 Berkeley Municipal Code Section 23.324.040 – Nonconforming Uses.

Item 12
Planning Commission
March 1, 2023

Pacific Steel Casting / Gilman Forge Zoning and Plan Amendments and Draft Environmental Impact Report -- Project Update

temporary use from operating on any of these sites, as they are allowed at various permit levels depending on the nature of the use.3

Maximum Lot Coverage
As shown in the Gilman Forge Concept Plan presented to the Commission in February, it is not feasible to build a 3 to 6 story building at 100 percent lot coverage given a maximum FAR of 2.0 and 105-foot maximum height. Consistent with the Gilman Forge concept plan (75 percent coverage), staff recommends a maximum coverage of 80 percent to ensure reasonable open space for future projects in this zone. The EIR will study a 100 percent coverage option in response to comments from the Commission.

Minimum Off-Street Vehicle and Bicycle Parking
In all manufacturing districts, R&D and office uses must provide at least 2 spaces per 1,000 square feet of gross floor area, and laboratory uses must provide at least 1 space per 650 square feet. Based on these requirements, Fehr & Peers estimates that Vehicle Miles Traveled (VMT) induced by future development within the project site would be significant (in order words, above the City’s threshold) by 5 percent, and transportation demand management strategies would be needed to reduce VMT.

Also, the current requirements create implementation challenges, as multiple uses may concurrently occupy one building, and the amount of floor area dedicated to a given use may change over time. Therefore, staff recommends lowering and standardizing the required minimum off-street parking for R&D, office, and laboratory uses, which may reduce potential VMT impacts, and provide flexibility for future development projects and tenants as needs change over time (Table 1).

In all manufacturing districts, new buildings or expansions of existing buildings must provide at least 1 bicycle parking space per 2,000 square feet of gross floor area for industrial, commercial, or non-residential uses. This requirement is in line with the Berkeley Bicycle Plan, adopted in 2017 (Table 2), and is higher than neighboring jurisdictions. For example, San Francisco requires a minimum ranging from 1 space per 12,000 square feet of industrial to 1 space per 5,000 square feet of office. In Oakland, 1 short-term space is required per 10,000 square feet, and 1 long-term space is required per 20,000 square feet of R&D. For these reasons, staff is recommending the minimum bicycle parking requirement in Table 2 above.

Table 2. Minimum Bike Parking Requirements, Berkeley Bicycle Plan Use Long-Term Spaces Short-Term Spaces
Office 2, or 1 space per 2,500
square feet
2, or 1 pace per 10,000
square feet
Industrial, manufacturing and
wholesale
1, or 1 space per 30,000
square feet
None required
Source: Berkeley Bicycle Plan, Appendix F, Facility Design Toolbox; Berkeley-Bicycle-Plan- 2017_AppendixF_Facility Design Toolbox.pdf (berkeleyca.gov)

3 Berkeley Municipal Code Section 23.302.030, Temporary Uses and Structures.

Item 12
Planning Commission
March 1, 2023

Pacific Steel Casting / Gilman Forge Zoning and Plan Amendments and Draft Environmental Impact Report -- Project Update

Open Space and Objective Design Standards
At the February meeting, staff requested Commission feedback on whether an open space standard should be included. There was a consensus among the Commission that open space should not be regulated, as the project area is not likely to become a destination for residents and regulating it could have consequences for future development projects. Based on that feedback, staff is not proposing inclusion of an open space standard. Staff also requested feedback on whether objective design standards should be included and there was consensus among the Commission that the current Design Review process is sufficient in shaping high-quality building and site designs for industrial development; therefore, objective design standards are not proposed.

DISCUSSION
The purpose of this item is to report back and receive additional comments from the Planning Commission and the public on the revised M-RD zoning regulations to confirm project direction in order to advance the EIR.

NEXT STEPS
• Once the applicant has provided all of the required technical reports and they have been reviewed and deemed adequate by the City as the Lead Agency, the Draft EIR will be prepared over a time period of approximately 10 weeks. • The Draft EIR will be circulated for the required 45-day public comment period, during which the Planning Commission will hold a public hearing to provide comments.
• Responses to comments on the Draft EIR will be prepared and any necessary revisions will be made based on those comments.
• This Final EIR will be presented to the Planning Commission for recommendation to the City Council, who will make a final decision on the proposed changes and certify the EIR.
• The amended Zoning Ordinance would be effective 30 days after the second reading at Council. At the time the zoning is effective, the Zoning Adjustments Board would be able to act on any use permit application for development within the zoning district boundary.

Item 12
Planning Commission
March 1, 2023

Planning and Development Department
Land Use Planning Division
1947 Center Street, Berkeley, CA 94704 Tel: 510.981.7410 TDD: 510.981.6903 Fax: 510.981.7420 E-mai
l: [email protected]

PUBLIC HEARING
November 6, 2024
TO: Members of the Planning Commission
FROM: Ashley James, Planning and Development Department SUBJECT: Public Hearing: Pacific Steel Casting Zoning (M-RD), G eneral Plan, West
Berkeley Plan Amendments and Draft Environmental Impact Report (Draft EIR)

RECOMMENDATION
Staff recommends the Planning Commission hold a public hearing; take public comment; discuss the proposed amendments to the Zoning Ordinance, Zoning Map, General Plan and West Berkeley Plan; and provide a recommendation to City Council to:

1. Adopt a Resolution to amend
the:
a. Zoning Ordinance and Zoning Map to establish a Manufacturing, Research and Development (M-RD) zoning district;
b. West Berkeley Plan to include the M-RD zoning district text and map amendments; and
c. General Plan to incorporate the M-RD zoning district into the existing Manufacturing (M) land use designation (Attachment 1, Exhibits A-C);

2. Take public testimony and provide comments on the Draft Environmental Impact Report (Draft EIR) which analyzes the potential impacts of the proposed Zoning Ordinance, General Plan, and West Berkley Plan amendments, as well as the Potential Berkeley Forge Development project (collectively known as “the proposed project”); and

3. Close the public hearing with respect to receipt of oral comments. Written comments on the Draft EIR will be accepted until 5:00pm on Thursday, December 5, 2024.

SUMMARY
In response to a 2021 City Council referral (Attachment 2) to create a zoning overlay at the former Pacific Steel Casting site (PSC) and a request for a zoning map amendment submitted on behalf of the majority property owner of the PSC property (Attachment 3) ATTACHMENT 6

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments, Draft EIR Hearing Item 10

in 2022, City staff are proposing amendments to the Zoning Ordinance, Zoning Map, West Berkeley Plan, and General Plan to: 1) establish a new zoning district Manufacturing, Research and Development (M-RD) that meets the goals of the City Council referral; 2) rezone an approximately 11-acre area within the West Berkeley Plan Area (“project site”) to this new zoning district; and 3) amend the West Berkeley Plan and General Plan to add this new zoning district to the West Berkeley Plan Land Use Element and the General Plan Manufacturing land use designation. The full text of the Zoning Ordinance and West Berkeley and General Plan changes can be found in Attachment 1. The proposed project consists of zoning and plan amendments and does not include specific development proposals. The Planning Commission provided comments in 2023 at its February 1, and March 1 meetings and now staff is requesting that the Planning Commission provide a recommendation to Council on the proposed zoning and West Berkeley and General Plan amendments only.

As required by the California Environmental Quality Act (CEQA), City staff has prepared a Draft EIR for the proposed project, referred to as the Gilman Gateway Rezone Project.
1 The Draft EIR analyzes the potential impacts of: 1) adoption and implementation of the proposed zoning and plan amendments; and 2) a conceptual development project (referred to as the Potential Berkeley Forge Development) submitted by the majority property owner of the PSC property with the Zoning Map amendment application in 2022 (Attachment 3), to the extent site planning details have been provided. The Planning Commission provided comments on the scope and content of the EIR at its February 1, 2023 meeting. The Landmarks Preservation Commission provided comments at its February 2, 2023 meeting. Staff is requesting that the Planning Commission take public testimony and provide comments to staff on the Draft EIR.

FISCAL IMPACTS OF RECOMMENDATION
As noted in the Council referral, the proposed Zoning Ordinance, Zoning Map, West Berkeley Plan and General Plan amendments are intended to support redevelopment of the site to contribute to the tax base and economic vitality in Berkeley. Therefore, the proposed amendments may result in an increase in employment, property tax, business license tax and sales tax revenues due to increased business activity.

CURRENT SITUATION AND ITS EFFECTS
As described in the April 20, 2021 Council referral (Attachment 2), the PSC property, located southeast of the intersection of Eastshore Highway and Gilman Street, is a former manufacturing site that at its peak of operations employed more than 650 people. The manufacturing operation declared bankruptcy in 2014 and permanently

1 The Gilman Gateway Rezone Project refers collectively to the proposed M-RD Zoning Ordinance, General Plan, and West Berkley Plan amendments. The Potential Berkeley Forge Development project is referred to as the conceptual development project. Since 2021, the conceptual development and rezoning have been referred to interchangeably and under other names including “Gilman Gateway”, “SPUR Capital”, “Pacific Steel Redevelopment” and most recently, “Berkeley Forge.”

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments, Draft EIR Hearing Item 10

closed in 2018. The site was described to have had a number of problems of public concern, including: (1) environmental contamination, (2) hundreds of former casting plant workers awaiting receipt of their employment pension benefits contingent upon future sale of the property by its receivership agent, and (3) neighborhood blight and safety concerns resulting from an eight-acre multi-block area of abandoned buildings and graffitied fencing around the property. Sale of the Pacific Steel Casting plant property from receivership to the current owner in late July 2023 addressed pension benefits of the former casting plant workers, but concerns that the current Manufacturing zoning designation on the site limits the potential uses of the site to heavy manufacturing remain. Establishing a new zoning district or overlay that enables all Mixed Use - Light Industrial (MU-LI) district uses and removes any existing constraints in Title 23 (Zoning) of the Berkeley Municipal Code for MU-LI uses would enable redevelopment of the site to again contribute to the employment and tax base and economic vitality in Berkeley as well as facilitate environmental remediation of the site.

BACKGROUND
On April 20, 2021, the City Council referred to the City Manager the creation of a zoning overlay at the former PSC property in West Berkeley, which is currently zoned M or “Manufacturing”, to re-designate it as MU-LI due to the unique issues of public concern associated with this property (described above). More specifically, the referral requested the PSC zoning overlay include allowances to enable all MU-LI uses and override any existing constraints on MU-LI uses in Title 23 for the PSC property, such as manufacturing floor area replacement requirements, in order to expedite environmental remediation of contaminated parcels and fund pension payment of PSC’s workers (Attachment 2).

In October of 2022, the Planning and Development Department received a zoning map amendment application from Rhoades Planning Group on behalf of SPUR Capital, pursuant to BMC Chapter 23.412 (Zoning Ordinance Amendments), to re-designate the zoning of the PSC, the Clearflow Valves site, and Berkeley Forge and Tool properties, together totaling 10.26 acres (Attachment 5, Chapter 3 Project Description, Figure 3-3), from M to MU-LI, consistent with the Council referral. The application includes a description of a conceptual development project, herein referred to as the Potential Berkeley Forge Development. The Potential Berkeley Forge Development could result in the redevelopment of a 10.26-acre portion of the project site with approximately 900,000 square feet of light manufacturing, research and development (R&D), laboratory, and/or office uses. The proposed M-RD zoning amendments help to advance the Potential Berkeley Forge Development by ensuring the zoning ordinance would enable its entitlement. The City has not received an application for the Potential Berkeley Forge Development; however, submittal of a formal application is anticipated subsequent to adoption of the proposed zoning and plan amendments discussed in this report. It is therefore a reasonably foreseeable project and is evaluated in the Draft EIR at the project level, to the extent feasible, in order to help streamline the environmental review process for the Potential Berkeley Forge Development.

Pacific Steel Casting: Zoning, General Plan and West Berkeley Plan Amendments, Draft EIR Hearing Item 10

The Planning Commission received presentations on the approach to the proposed rezoning project at its February 1, 2023 and March 1, 2023 meetings for the purpose of finalizing a project description for analysis in the Draft EIR, and provided high-level policy direction to staff. For the February 1, 2023 Planning Commission meeting the City’s Office of Economic Development (OED) prepared a report2 that provides context for the economic conditions in West Berkeley to help inform the City’s approach to addressing the Council referral. Specifically, the report describes the city’s economy and the impact of the innovation sector in particular – advanced manufacturing, software, life sciences, clean technology, food tech, and other science, technology, engineering and math (STEM) industries – such as employment, wages, wealth creation, social impacts and location decisions. The report also discusses anticipated economic impacts of the proposed rezoning within West Berkeley (Attachment 4 to the February 1, 2023 Planning Commission staff report, pages 14-20).

The proposed M-RD zoning, West Berkeley Plan and General Plan amendments consistent with this background and direction from the Planning Commission in February and March of 2023 are summarized in this report and provided in Attachment 1, 1a, 1b, and 1c.

DISCUSSION
Staff are proposing the following Zoning Ordinance text and Zoning Map amendments to create a new zoning district (M-RD), as well as conforming amendments to the General Plan and West Berkeley Plan. As described in the February 1, 2023 Planning Commission report (Attachment 4), the project site is an 11.54-acre area located at Gilman Street and Eastshore Highway, containing the former PSC property, the Berkeley Forge and Tool property, and other parcels under various ownership (see Figure 1 and Table 3.A in Attachment 5, Draft EIR Project Description, for ownership details). On February 1 and March 2, 2023, the Planning Commission held discussions on the Gilman Gateway Rezone Project
3, and provided feedback and policy direction.

The staff reports for those meetings include background information and rationales for the proposed Zoning Ordinance and Plan amendments. Further discussion and rationale are discussed in this report for items that have been revised and/or drafted since those discussions.

2 The Innovation Ecosystem in West Berkeley: An Economic Snapshot, City of Berkeley, Office of Economic Development, February 1, 2023, Planning Commission, Item 12, Attachment 4. 3 Proposed M-RD Zoning Ordinance, Zoning Map, West Berkeley Plan and General Plan amendments in response to the Council referral to create a zoning overlay at the former PSC property. In addition, the February 1, 2023 Planning Commission meeting was also an EIR scoping meeting.