DATE:
June 4, 2024
TO:
Paul Buddenhagen, City Manager
FROM:
Chadrick Smalley, Community Development Director
SUBJECT:
Introduction And First Reading Of An Ordinance Of The City Council Of The City Of Emeryville Adding Two New Land Use Classifications To Section 9-2.339 (“Motor Vehicle Sales And Services”) In Article 3 Of Chapter 2 Of Title 9 Of The Emeryville Municipal Code; Adding A New Definition To Section 9-8.201 (“A” Terms) In Article 2 Of Chapter 8 Of Title 9; And Modifying Table 9-3.202 In Section 9-3.202 (Uses Permitted, Conditionally Permitted And Prohibited) In Article 2 Of Chapter 3 Of Title 9; Concerning Certain Auto-Related Uses And Indoor Public Storage Uses (CEQA Determination: Exempt Pursuant To Guidelines Section 15061(B)(3))
RECOMMENDATION
Staff and the Planning Commission recommend that the City Council introduce and waive first reading of the attached ordinance adding two new land use classifications to Section 9-2.339 (“Motor Vehicle Sales and Services”) in Article 3 of Chapter 2 of Title 9 of the Emeryville Municipal Code; adding a new definition to Section 9-8.201 (“A” terms) in Article 2 of Chapter 8 of Title 9; and modifying Table 9-3.202 in Section 9-3.202 (uses permitted, conditionally permitted and prohibited) in Article 2 of Chapter 3 of Title 9; concerning certain auto-related uses and indoor public storage uses.
BACKGROUND
At the January 16, 2024, study session Council provided direction to make the following modifications to the Planning Regulations (Title 9 of the Emeryville Municipal Code):
(1) Changes to Table 9-3.202 (Uses Permitted, Conditionally Permitted, and Prohibited) so as to not allow car washes, auto dealerships, and personal storage uses anywhere in the City; (2) Create two new use classifications – Alternative Fuel Charging Stations and Alternative Fuel Showrooms; and (3) Allow Alternative Fuel Charging Stations and Alternative Fuel Showrooms in certain zones.
On March 28, 2024, the Planning Commission held a study session to review background information regarding the regulatory framework for auto-centric uses and personal storage uses in the City as well as the information on existing businesses classified as these use types. In addition, staff provided the Commission with Alternative Energy Vehicle Showroom and Alternative Energy Vehicle Service Station case studies. This information is summarized in the “Discussion” section below.
DISCUSSION
Alternative Energy Vehicle Showrooms Case Studies
Staff researched similar cities and cities that have auto dealers that use the showroom model. Staff identified cities with similar population sizes, geographic areas, and sales tax base, and then identified cities where the showroom model is used by auto dealers such as Tesla, Rivian, and VinFast.
Staff researched the following cities:
City
Area
Population (2020)
Zoning Code Language for Showrooms
(Yes/ No)
Alt. Energy Auto Showrooms
(Yes/ No)
Emeryville
2.25 sq mi
12,905
Berkeley
17.7 sq mi
124,321
No
Yes
Palo Alto
26.00 sq mi
68,572
Yes
Yes
Corte Madera
4.40 sq mi
10,222
Yes
Yes
Milpitas
13.52 sq mi
80,273
Yes
No
San Francisco
46.9 sq mi
873,965
No
Yes
Fremont
88.46 sq mi
230,504
Yes
No
San Jose
181.36 sq mi
1,013,240
Yes
Yes
Santa Monica
16.00 sq mi
93,076
Yes
Yes
Staff found that cities do not explicitly call out the sale of Electric Vehicles (or alternative energy vehicles) separate from Auto/Vehicle sales (traditional dealerships) or call out electric vehicle showrooms as a stand-alone use category. The language around “showrooms” is limited to whether showrooms are permitted in certain commercial and mixed-use oriented zones and in most cases local regulations do not establish specific development standards, such as size, for showrooms. In many cases, showrooms are permitted as a use in commercial and industrial oriented zones regardless of the type of vehicles being sold. See Attachment 1 for regulatory details around auto/vehicle showrooms in individual cities.
Given that the cities reviewed did not have explicit regulatory frameworks for electric vehicle showrooms, staff visited the following showrooms in the Bay area to investigate size and operating characteristics:
Tesla, 333 Santana Row #1015, San Jose, CA 95128
Tesla. 660 Stanford Shopping Center #359B, Palo Alto, CA 94304 VinFast, 1733 Fourth St, Berkeley, CA 94710
VinFast, 1506 Redwood Hwy, Corte Madera, CA 94925
Lucid, 1802 Redwood Hwy, Corte Madera, CA 94925
Polestar, 1700 Redwood Hwy, Corte Madera, CA 94925
The main purpose of these showrooms is to test drive vehicles and help with purchases that are done online. There are typically two to three vehicles in the showroom, and they store between three and ten vehicles in the parking lot, with the exception of Santana Row where a garage is used to store 30 vehicles for test driving. The size of the visited showrooms varied from 1,800 sq. ft. to 5,000 sq. ft. When a vehicle is purchased, most require pick up at a secondary location or the vehicle manufacturer’s headquarters, or the vehicle gets delivered to the customer’s home. Attachment 2 provides details and photographs of these showrooms.
Alternative Energy Vehicle Charging Stations Case Studies In response to the Council’s direction to prohibit fossil fuel gas stations and add a use classification for alternative energy charging stations, staff researched similar cities and cities that have alternative fuel service stations or electric charging stations. Typically, “alternative fuel/ alternative energy” and “auto charging stations” regulations are simply limited to whether alternative fuel stations are permitted in certain zones. In most cases, the regulations do not establish parameters outside of commercial and retail regulation. In many cases, alternative fuel stations are permitted as an incidental and accessory auto use regardless of the type of vehicles being sold or serviced.
Other cities’ regulations regarding commercial/retail lot sizes, setbacks, etc. varied. Staff researched the following cities:
City
Zoning Code Use Classification Language for Alt. Energy Charging (Yes/ No)
Alt. Energy Charging (Yes/ No)
Emeryville
Berkeley
Yes
Yes
Palo Alto
No
Yes
Corte Madera
No
Yes
Fremont
Yes
Yes
The regulations for electric vehicle charging stations primarily are intended to ensure that they are permitted and compliant with the applicable building and electric codes. Please see Attachment 3 for details on these cities regulations of charging stations.
Analysis
The City Council indicated that the inclination to prohibit car dealerships is motivated by two reasons – 1) to deemphasize fossil-fueled auto-centric uses and 2) to prohibit land uses that typically require a large amount of surface parking to function. The City Council also expressed interest in allowing alternative energy vehicle showrooms, as these vehicles decrease reliance on fossil fueled vehicles and do not require large spaces to function. Staff’s review of cities that have alternative energy vehicle showrooms indicates that they have not created new use categories to allow showrooms or established specific development parameters such as size limitations. Reviewing the operations of existing showrooms indicates that the size of the showrooms varies from 1,800 to 5,000 square feet and typically entails the storage of two to three vehicles indoors and use a common parking lot to store test drive vehicles.
PLANNING COMMISSION DISCUSSION AND RECOMMENDATION
March 28th Planning Commission Study Session:
The Planning Commission reviewed the proposed modifications of the Planning Regulations at a March 28th study session. After some clarifying questions, one Commissioner questioned the reason for the prohibitions and thought that certain uses, such as car washes, would be a good use to permit inside existing garages and that alternative fuel vehicles also require cleaning. Another Commissioner suggested that the prohibition should also include auto body shops. The Commission, on the whole, was generally in support of the proposed modifications and suggested that staff carefully evaluate the proposed definition of “alternative fuel” to ensure that the amendments allow for future non-hydrocarbon-based fuels. In refining the definition of “Alternative Fuel,” staff realigned the definition to “Alternative Energy” to prioritize future fuel technologies.
April 25th Planning Commission Public Hearing:
At an April 25th meeting, the Planning Commission reviewed the proposed ordinance and an updated definition of “Alternative Energy Vehicles.” The Commission moved to recommend the amendments to Emeryville Municipal Code (EMC) Section 9-2.339 (“Motor Vehicle Sales and Services”); add a new definition to Section 9-8.201 (“A” terms); and modify Table 9-3.202 in Section 9-3.202 as further outlined below.
PROPOSED ORDINANCE
The first and second sections of the proposed ordinance (“Ordinance”) establish the purpose, intent and findings, respectively, for the proposed changes to the Planning Regulations. The third section of the Ordinance adds new subsections (g) and (h) to Section 9-2.339 of the Planning Regulations which is entitled “Motor Vehicle Sales and Services” under Article 3 “Commercial and Institutional Use Types”. These new subsections define “Alternative Energy Vehicle Showrooms” and “Alternative Energy Vehicle Charging Stations” as outlined below:
Alternative Energy Vehicle Showrooms – means “indoor showrooms for Alternative Energy Vehicles for sale or lease, without incidental storage and maintenance of said vehicles. Such showrooms shall be 5,000 sq. ft. or less.” Alternative Energy Vehicle Charging Stations – means “Alternative fuel sales for electric or any other Alternative Energy Vehicles. Accessory uses may include minor repair services and the sale of packaged food, replacement parts, and accessories.” The fourth section of the Ordinance adds a new subsection (u) to Section 9-8.201 (“A” Terms”) under Article 2 (“General Definitions”) definition for “Alternative Energy Vehicle” as outlined below:
Alternative Energy Vehicle (AEV) – refers to a vehicle that is powered and operated using renewable fuels including electricity stored in fuel cells or batteries, biodiesel, green hydrogen, and other sustainable technologies, excluding vehicles powered by fuels derived from hydrocarbons such as coal, petroleum, and natural gas.
The fifth section of the Ordinance amends the existing Table 9-3.202.
The Ordinance provides that “Alternative Energy Vehicle Showrooms” are conditionally permitted in the MUR, MURS, MUN, INL, and INH zones. These are zones where the majority of retail activities occur in the City. If a showroom is proposed in an existing building, then a minor Conditional Use Permit (CUP) is required; if proposed in a new building, then a Major CUP is required.
The Ordinance provides that “Alternative Energy Vehicle Charging Stations” are conditionally permitted in MUR, MURS, and MUN zones. Typically, since charging an electric vehicle takes longer than filling a vehicle with gasoline, they would be ideally located in commercial areas where there are other activities for patrons to spend time while their vehicles are charged.
The Ordinance also prohibits certain auto-centric uses, including car washes, car dealerships, gas stations, and the industrial land use of personal storage uses.
The proposed changes are denoted by strikethrough type for language that is deleted and underlined type for new language.
Table 9-3.202. Uses Permitted, Conditionally Permitted, and Prohibited.
Base Zones
Overlay Zones
Use Classifications
RM Medium Density Residential
RMH Medium High Density Residential
RH High Density Residential
MUR Mixed Use with Residential
MURS Mixed Use with Residential South
MUN Mixed Use with Non-Residential
OT Office/Technology
OT/DH Office/Technology Doyle Hollis North Area
INl Light Industrial
INH Heavy Industrial
P Public
M Marina
PO Park/Open Space
SM Shoreline Management
UT Utilities/Transportation
PA Park Avenue District
NR Neighborhood Retail
RR Regional Retail Overlay
TH Transit Hub Overlay
Commercial and Institutional
Motor Vehicle Sales and Services
Cleaning (Car Wash)
X
X
X
X
X
C X
X
C X
CM* X
C X
X
X
X
X
X
C X
Sales and Leasing (Dealerships)
X
X
X
C X
C X
C X
X
C X
C X
X
X
X
X
X
X
Sales and Leasing (Alternative Energy Vehicle Showrooms) X
X
X
C
C
C
X
X
C
C
X
X
X
X
X
Service Station (Gas stations)
X
X
X
X
X
C X
X
X
X
X
X
X
X
X
X
X
X
C X
X
Service Station (Alternative Energy Vehicle Charging Stations) X
X
X
C
C
C
X
X
X
X
X
X
X
X
X
X
X
C
X
Industrial
Storage and Distribution
Personal
X
X
X
C X
C X
C X
X
C X
C X
C X
X
X
X
X
X
X
X
Key: X – Prohibited; C – Conditionally Permitted; CM – Minor Conditional Use Permit* P – Allowed by Right.
FISCAL IMPACT
There are no direct fiscal impacts as a result of the proposed changes. A limitation on the potential location of gas stations and automotive sales may correspondingly limit sales tax revenues from these uses in the future, however, the financial impact cannot be reliably estimated.
STAFF COMMUNICATION WITH PUBLIC
As specified by EMC Section 9-7.202, Planning Regulations and Zoning Map Amendments require a public hearing and standard general public noticing requirements for City Council agenda items. As noted above, the Planning Commission discussed the proposed Planning Regulations Amendments at a study session on March 28, 2024 and a Public Hearing on April 25, 2024, and recommended the City Council adopt the proposed amendments.
ENVIRONMENTAL REVIEW
The proposed ordinance is exempt from environmental review under State CEQA Guidelines Section 15061(b)(3), the “general rule” that CEQA does not apply to projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.
RECOMMENDATION
Staff recommends that the City Council:
Open the public hearing and take testimony on the proposed Ordinance regarding amendments to Title 9 (Planning Regulations) of the EMC.
Close the public hearing and consider the Staff Report and proposed Ordinance.
Introduce and waive first reading of the attached Ordinance.
PREPARED BY: Miroo Desai, Planning Manager
REVIEWED BY: Chadrick Smalley, Community Development Director
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
Paul Buddenhagen, City Manager
ATTACHMENTS:
Regulatory Framework for Auto Sales in Neighboring Cities Operating Characteristics of six EV Showrooms in the Bay Area Regulatory Framework for Alternative Energy Vehicle Charging Stations in Neighboring Cities Draft Ordinance
Land Use Classifications – Auto Uses and Storage Units
City Council Meeting | June 4, 2024
City of Emeryville
CALIFORNIA
MEMORANDUM