CITY COUNCIL
MEETING
MAY 5, 2026
DOCUMENTS
RECEIVED AFTER
PUBLISHED AGENDA
Item #5
CONS 26-174
Adopt an Ordinance Amending the
Zoning Map and Chapter 10,
Article 1 (Zoning Ordinance), Article 2
(Off-Street Parking
Regulations), Article 24 (Mission
Boulevard Code) and Article
28 (Downtown Development Code) of the
Hayward Municipal
Code Associated with the Business-
Friendly Hayward Project
DATE:
June 4, 2026
TO: City Clerk
FROM: City Attorney
SUBJECT: Memorandum: Technical Corrections to CONS 26-174 – Adoption of an Ordinance Amending the Zoning Map and Chapter 10, Article 1 (Zoning Ordinance), Article 2 (Off-Street Parking Regulations), Article 24 (Mission Boulevard Code) and Article 28 (Donwtown Development Code) of the Hayward Municpal Code Associated with the Business-Friendly Hayward Project.
SUMM
ARY
On April 21, 2026 the City Council introduced the above referenced amendments to the Hayward Municipal Code during a public hearing (PH 26-017). Attachment IV to PH 26-017 included proposed amendments to HMC section 10-1.1604, Development Standards for Industrial Districts, and clarifying that data centers may exceed the allowable Floor Area Ratio standards subject to Major Site Plan Review, similar to professional offices and research & development uses in the same zoning district. .
The i
tem was adopted during the May 5, 2026 City Council meeting as CONS 26-174.
Subsequent to adoption, staff discovered that Attachment IV to CONS 26-174 inadvertently omitted the proposed amendments to HMC section 10-1.1604 which were included as part of the ordinance introduction on April 21. Staff did not intend for this section to be omitted, and the City Council motion on April 21, 2026 did not include deletion of this section.
It i
s the opinion of the City Attorney’s Office that the corrections to CONS 26-174 are in the nature of typographical or clerical corrections that do not require re-adoption of the ordinance. A revised version of Attachment IV to CONS 26-174 is attached hereto as Exhibit A. This memorandum and revised Attachment IV should be appended to CONS 26-174 and incorporated into the administrative record for the item.
Res
pectfully submitted,
Mich
ael Lawson, City Attorney
______________
_______________________
Michael Vigilia, Senior Assistant City Attorney
Attachment(s):
Attachment A – Revised Attachment IV to CONS 26-174.
C
c: City Attorney
Development Services Director
Created: 2025-08-05 08:53:03 [EST]
(Supp. No. 25, Update 1)
SEC. 10-1.1603 USE REGULATIONS—INDUSTRIAL SUBDISTRICTS.
Table 10-1.1603, Land Use Regulations—Industrial Subdistricts, sets the land use regulations for Industrial Subdistricts by letter designation as follows unless a use or activity is prohibited or subject to a higher level of permit pursuant to other parts of this Section, other requirements of the Hayward Municipal Code, or other applicable regulations:
"P" designates permitted uses.
"A" designates uses that are permitted after review and approval of an Administrative Use Permit. "C" designates uses that are permitted after review and approval of a Conditional Use Permit. “M” designates uses that are permitted after review and approval of a Major Conditional Use Permit. "-" designates uses that are not allowed.
A project which includes two or more categories of land use in the same building or on the same site is subject to the highest permit level required for any individual use or single component of the project.
Section numbers in the right-hand column refer to other sections of the Zoning Ordinance or other limitations as well as subsections A through E following the Table.
Land uses are defined in Article 1, Section 10-1.3500, Definitions. In cases where a specific land use or activity is not defined, the Planning Director or other approving authority shall assign the land use or activity to a classification that is substantially similar in character. Land uses defined in the Hayward Municipal Code and not listed in the table or not found to be substantially similar to the uses below are prohibited. Unless otherwise explicitly stated, all uses shall be conducted indoor.
Table 10-1.1603: Use Regulations—Industrial Subdistricts "P" Permitted Use; "A" Administrative Use Permit Required; "C" Conditional Use Permit Required; “M” Major Conditional Use Permit Required "-" Use Not Allowed
(unless prohibited or subject to a higher level of permit pursuant to other parts of this Section or other applicable regulations) Use Subdistrict Additional Regulations
IL IP IG
Residential Uses
Caretakers Quarters A A A Limited to one dwelling per parcel unit no greater than 1,200 square
feet in size for a caretaker or
security employee necessary and
incidental to the primary use on-
site.
Single Room Occupancy A* A* A* Only permitted if conversion of existing hotel. See Section 10-
1.2736(e) for criteria and
standards.
Administrative and Professional Offices/Services
Architectural Service, Drafting
Service, Engineering Service
P P P
Banks P P P
Financial Institutions P P P
Medical/Dental Laboratory P P P
Office P P P
EXHIBIT A
(Attachment IV)
Created: 2025-08-05 08:53:03 [EST]
(Supp. No. 25, Update 1)
Automobile Related Uses
Automobile Brokerage Office P P P See definition. Maximum of two vehicles on site.
Automobile Dismantling Facility - - C
Automobile Parts Store P P P
Automobile Rental - - A
Automobile Repair, Major - - P
Automobile Repair, Minor A P P
Automobile Sales - - -
Automobile Service Station - - AM See Section 10-1.10452735(f), Minimum Design and Performance
Standards, for special requirements
Automobile Storage Facility - - A
Automobile Storage Yard - - C
Automobile Towing Yard - - C
Automobile Wholesale P P P See definition. No vehicles
permitted on-site.
Car Wash A A A If applicable, see Section 10-
1.10452735(f), Minimum Design
and Performance Standards, for
special requirements
Drive-In Establishments A A A See Section 10-1.10452735(f), Minimum Design and Performance
Standards, for special requirements
EV Charging Station P P P
Recreational Vehicle Storage
Facility
- - C
Industrial Uses
Brewery A P P See Section 10-1.2750 et seq. for
Alcoholic Beverage Outlet
Regulations
Cannabis See below
Commercial Cannabis Cultivation
(up to 5,000 square feet)
A A A See Section 10-1.3600, Cannabis
Commercial Cannabis Cultivation
(5,001 square feet or Greater)
C C C See Section 10-1.3600, Cannabis
Commercial Cannabis Delivery A A A See Section 10-1.3600, Cannabis Commercial Cannabis Retail
Dispensary
C - - See Section 10-1.3600, Cannabis
Commercial Cannabis
Distribution
A A A See Section 10-1.3600, Cannabis
Commercial Cannabis
Manufacturing Level 1, (Up to
5,000 square feet)
A A A See Section 10-1.3600, Cannabis
Commercial Cannabis
Manufacturing, Level 1, (5,001
square feet or greater)
C C C See Section 10-1.3600, Cannabis
Created: 2025-08-05 08:53:03 [EST]
(Supp. No. 25, Update 1)
Commercial Cannabis
Manufacturing, Level 2
C - - See Section 10-1.3600, Cannabis
Commercial Cannabis
Microbusiness
C C C See Section 10-1.3600, Cannabis
Commercial Testing Laboratory P P P See Section 10-1.3600, Cannabis Contractor Services P P P
Storage Yard - - C
Data Center - M M See Section 10-1.2735(e) for
additional submittal requirements.
Distillery A A A See Section 10-1.2750 et seq. for
Alcoholic Beverage Outlet
Regulations
Industrial Equipment Sales, Rental
& Service
- - P
Manufacturing See below
Custom Manufacturing P P P
General Manufacturing - P P
Light Manufacturing P P P
Micro-Brewery C C C See Section 10-1.2750 et seq. for Alcoholic Beverage Outlet
Regulations
Passenger Transportation Terminal A A A
Railroad Yard - - C
Recycling Facilities See below
Small Recycling Collection
Facilities
See Section 10-1.2735(jm), Small Recycling Collection Facilities and Unattended Collection Boxes
Large Recycling Collection
Facilities
- - A
Recycling Processing Facilities - - C
Renewable Electric Power
Generation, Transmission, and
Distribution
C A A
Research and Development P P P
Truck Terminal - - C
Warehouse and Distribution
Facility, less than 150,000 square
feet of floor area
P P P
Warehouse and Distribution
Facility, 150,000 square feet or
more of floor area
C C C
Waste Treatment Facility - - C
Waste Transfer/Handling Facility - - A
Wholesale Establishment, less than
150,000 square feet of floor area
P P P
Wholesale Establishment, 150,000
square feet or more of floor area
C C C
Wind Energy Conversion System A A A
Personal Services
Created: 2025-08-05 08:53:03 [EST]
(Supp. No. 25, Update 1)
Barber, Beauty Shop P P P
Dry Cleaner/Laundry P P P
Shoe Repair Shop P P P
Tailor/Seamstress Shop P P P
Tattoo Parlor A - -
Retail Commercial Uses
Appliance Store P - -
Bar, Cocktail Lounge C C C See Section 10-1.2750 et seq. for Alcoholic Beverage Outlet
Regulations
Building Materials (Sales) - - P
Carpet/Drapery Store P - -
Convenience Market P P P
Furniture Store P - -
Nursery (Plants) P - -
Restaurant P P P
Retail P P Sale of goods
produced on
site: P;
otherwise: C
Service Commercial Uses
Appliance Repair Shop P P P
Contractor Services P P P
Copying or Reproduction Facility P P P
Equipment Rental Service P P P
Hotel P P A
Mailing or Facsimile Service P P P
Motel P P A
Upholstery Shop P P P
Other Uses
Animal Hospital P - -
Broadcasting Studio P P P
Catering Facility P P P
Christmas Tree and Pumpkin Patch
Lots
P P P See Section 10-1.2735(n).c,
Christmas Tree and Pumpkin Patch
Lot RegulationsTemporary Use
Permit, Minor.
Commercial Amusement Facility A A -
Cultural Facility A - -
Day Care Center A A C* *Only permitted in IG District if day care center is intended to serve
employees of a large-scale business
or business park.
Educational Facilities A A A* *Only permitted in IG District if included within business park
development.
Created: 2025-08-05 08:53:03 [EST]
(Supp. No. 25, Update 1)
Emergency Shelter P* P* P* *Permitted on city-owned
property. See Section 10-1.2736(a)
for criteria and standards.)
Food Vendor P P P Subject to Food Vendor Permit. See
Section 10-1.2735(mg), Food
Vendor Permit
Industrial/Vocational Trade School P P P Limited to programs serving persons 18 years or older
Health Club See below
Facilities that are only available
for use by employees
P P P
Facilities that may be used by the
public
A A A
Kennel C A A
Public Agency Facilities P P P
Media Production A A A
Psychiatric and Rehabilitation
Facility
A A A
Recreational Facility See below
Facilities that are only available
for use by employees
P P P
Facilities that may be used by the
public
A A A
Religious Facility A - -
Taxi Company - - A
Temporary Uses A A A
A. Outdoor Storage. Refer to Section 10-1.1605(L) for Outdoor Storage regulations.
B. Adult Entertainment Activity. Refer to General Regulations Section 10-1.2735.ab. for Adult Entertainment Activity Regulations.
C. Alcoholic Beverage Outlets. Refer to General Regulations Section 10-1.2750 et seq. for Alcoholic Beverage Outlet Regulations.
D. Antennas and Satellite Dishes and Telecommunications Devices. Refer to Chapter 10, Article 13 of the Hayward Municipal Code, the Antenna and Telecommunications Facilities Ordinance, for regulations of antennas, satellite dishes and telecommunications devices.
E. Hazardous Materials Use and Storage. All uses allowed in the Industrial Subdistricts pursuant to Table 10-1.1603 shall comply with all applicable code and regulation requirements pertaining to hazardous materials and the following permit requirements.
1. Permitted. The following hazardous materials use and storage activities are permitted:
a. Production, storage, and/or handling, utilizing Group B hazardous materials less than 5,000 pounds of solids, 550 gallons of liquids, or 2,000 cubic feet of gases at standard temperatures and pressures.
b. Production, storage, and/or handling, utilizing Group C hazardous materials less than 50,000 pounds of solids, 5,500 gallons of liquids, or 20,000 cubic feet of gases at standard temperatures and pressures.
Created: 2025-08-05 08:53:03 [EST]
(Supp. No. 25, Update 1)
2. Administrative Use Permit. The following hazardous materials use and storage activities are subject to Administrative Use Permit approval:
a. Production, storage, and/or handling, utilizing Group B hazardous materials which exceed the following thresholds: 5,000 pounds of solids, 550 gallons of liquids, or 2,000 cubic feet of gases at standard temperatures and pressures.
b. Production, storage, and/or handling, utilizing Group C hazardous materials which exceed the following thresholds: 50,000 pounds of solids, 5,500 gallons of liquids, or 20,000 cubic feet of gases at standard temperatures and pressures.
3. Conditional Use Permit. Conditional Use Permit approval is required for the production, storage, handling, or similar activities utilizing any amount of hazardous materials classified as Group A hazardous materials by the Fire Chief or his or her designee. (Amended by Ordinance 21-05, § 2, adopted July 20, 2021; Amended by Ordinance 25-02, § 1(Exh. A), adopted January 21, 2025)
SEC. 10-1.1604 DEVELOPMENT STANDARDS.
Table 10-1.1604, Development Standards—Industrial Subdistricts, prescribes the development standards for Industrial Subdistricts.
Table 10-1.1604: Development Standards—Industrial Subdistricts Standard IL IP IG
Minimum Lot Size (sf unless otherwise
indicated)
10,000 1.5 acres 20,000
See also Section 10-1.2720 for Special Lot Requirements Minimum Lot Frontage (ft) 35 250 70
See also Section 10-1.2720 for Special Lot Requirements Minimum Average Lot Width (ft) 70 250 70
Maximum Floor Area Ratio (FAR)** .8 .8* .8
*A greater FAR may be approved for Administrative and
Professional Offices/Services, and Research and Development, and Data Center uses through Major Site Plan Review approval where the approving authority finds that the collective FAR across all Industrial sub-districts will not exceed .8.
**Building area that is designed and utilized exclusively for on-site employee child daycare shall not count towards maximum FAR calculations.
Maximum Height (ft) • Within 20 feet of an R, MH, C, or residential PD zoning district:
20 (see Figure 10-1.1604)
• Within 45 feet of an A, OS, or FP zoning district: No portion of a structure may extend above a line of a 1:1 slope extending upward from the boundary of the A, OS, or FP zoning district. (see Figure 10-1.1604)
• Other areas as follows:
45 75* 75*
*The building height may be increased through Major Site Plan Review approval where the approving authority finds that the increase is necessary to provide a more beneficial site layout or will result in public benefits/amenities that could not be achieved Created: 2025-08-05 08:53:03 [EST]
(Supp. No. 25, Update 1)
under current zoning standards.
See also Section 10-1.2730 for Special Height Requirements Minimum Yards (ft) See also Section 10-1.2725 for Special Yard Requirements Front Yard • Parcels fronting Industrial Boulevard, Industrial Parkway, Industrial Parkway SW, Clawiter Road, and West Winton Avenue:
20 • Buildings with facades in excess of 100 feet in length and/or greater than 20 feet in height: 20
• Other areas and buildings: 10
Side Yard • Abutting an A, OS, FP, R, MH, C, or residential PD zoning district: 10
• Other areas: 0
Street Side Yard 10 10 10
Rear Yard • Abutting an A, OS, FP, R, MH, C, or residential PD zoning district: 10
• Other areas: 0
Minimum Landscaping (% of site) 5 15 5
Figure 10-1.1604: Maximum Height, Industrial Subdistricts
Public Comment
.. '5·u£1rz,ikd
SkyWest Green Hub: A Vision for Hayward 's Future
Transitioning from Industrial Warehousing to Sustainable Innovation & Community Commons
Executive Summary
The SkyWest Green Hub is a 126-acre "Net-Zero" aviation and parkland commons designed to resolve the conflict between economic growth and community preservation. By replacing traditional combustion aviation and speculative industrial warehousing with electric aerospace infrastructure, we provide Hayward with a quiet, zero-emission economic engine.
Strategic Pillars
• Decarbonization: Full transition to electric flight operations, eliminating leaded fuel (100LL) and reducing noise profiles by up to 70% , aligning with Hayward's 2026 Climate Action Plan.
• Community Commons: Permanent preservation of 126 acres including a 5km perimeter fitness loop, habitat restoration for local species, and integrated public parkland. • STEM Pathways: A dedicated workforce development hub in partnership with HUSO, providing local students with high-wage certifications in electric propulsion and aerospace maintenance (MRO).
Phase 1 Financia l Roadmap
Category Value Economic Impact
Gross Capital Investment $20,000,000 Infrastructure, Microgrid, & Fleet
Federal/State Subsidies ($4,930,000) IRA Direct Pay, VALE, & ZEV Grants
Net Capital Requirement $15,070,000 Optimized through P3 Partnerships
Annual Net Profit (EBITDA) $2,712,000 Sustainable recurring city revenue
Vertical Revenue Streams
• Modern Real Estate: 100 Net-Zero hangars generating consistent lease revenue. • Electric Mobility: High-margin flight training and regional eCTOL handling. • Environmental Commodities: Monetization of LCFS credits, Carbon Offsets, and RECs. • Specialized Services: On-site MRO (Maintenance, Repair, Overhaul) and DPE (Examiner) services.
Safety Mechanis ms & Governance
To prevent mission drift and protect the "Social License," our framework proposes restrictive use covenants that legally prohibit the transition of this site to industrial warehousing, ensuring the parkland and green aviation focus remain protected for 50+ years .
Principal: Sky Smith I Organization: SkyWest Green Hub/ FlySky Advisory "Innovation over Asphalt: A Sustainable Legacy for Hayward ."