C. CEQA Determination: Categorically exempt pursuant to Section ( In-Fill Development Projects ) of the CEQA Guidelines.

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1 Z O N I N G A D J U S T M E N T S B O A R D S t a f f R e p o r t FOR BOARD ACTION FEBRUARY 25, San Pablo Avenue Use Permit #ZP to establish a 42,479 square-foot health club on the first and second floors of an existing 492,706 square foot building. A 6,836 square-foot portion of the health club would be located within the Mixed Use-Light Industrial (MU-LI) Zoning District. I. Background A. Land Use Designations: General Plan: Avenue Commercial; Manufacturing West Berkeley Plan: General Commercial, Mixed Use/Light Industrial Zoning: West Berkeley Commercial (C-W); Mixed Use Light Industrial (MU-LI) B. Zoning Permits Required: Administrative Use Permit for a use not listed (Health Club) that is compatible with the purposes of the MU-LI District, under BMC Section 23E B; Use Permit with Public Hearing for a health club over 7,500 square feet in the C-W District, under BMC Section 23E ; and Use Permit with Public Hearing to convert floor area in a building in which at least 33% of the floor area is used for manufacturing, warehousing or related uses to a commercial use, under BMC Section 23E A. C. CEQA Determination: Categorically exempt pursuant to Section ( In-Fill Development Projects ) of the CEQA Guidelines. D. Parties Involved: Applicant: Property Owner: Darrell de Tienne, detienne Associates 3435 Cesar Chavez Street, Suite 312 San Francisco, CA LBA Realty 3347 Michelson Drive, Suite 200 Irvine, CA E. Application Materials, Staff Reports and CEQA Documents are available on the Internet: Milvia Street, Berkeley, CA Tel: TDD: Fax: zab@ci.berkeley.ca.us

2 February 25, 2016 Page 2 of 12 Figure 1: Vicinity Map Figure 2: Site Plan

3 February 25, 2016 Page 3 of 12 Figure 3 : Proposed First Floor Plan

4 February 25, 2016 Page 4 of 12 Figure 4: Proposed Second Floor Plan

5 February 25, 2016 Page 5 of 12 Table 1: Land Use Information Location Existing Use Jurisdiction Zoning District Subject Property Surrounding Properties North South East West Manufacturing, warehouse, commercial kitchen, storage (Berkeley, Oakland, Emeryville) Folger Ave, and vacant, industrial, parking beyond Sixty-Seventh Street, retail, light industrial, residential beyond San Pablo Ave, residential, retail beyond Bike path/greenway, parking, light industrial beyond Berkeley Oakland Emeryville Berkeley Oakland C-W/MU-LI CC-2 (Community Commercial-2)/HBX-2 (Housing and Business Mix-2) INL (Light Industrial) C-W/MU-LI CC-2 (Community Commercial-2)/HBX-2 (Housing and Business Mix-2) General Plan Designation Commercial/ Manufacturing Housing and Business Mix Industrial, Park/Open Space Commercial/ Manufacturing Housing and Business Mix Berkeley C-W Commercial Berkeley MU-LI Manufacturing Emeryville INL (Light Industrial) Industrial, Park/Open Space Source: City of Emeryville Zoning Map City of Emeryville Land use Diagram City of Oakland GIS Table 2: Special Characteristics Characteristic Affordable Child Care Fee for qualifying non-residential projects (Per Resolution 66,618-N.S.) Affordable Housing Fee for qualifying non-residential projects (Per Resolution 66,617-N.S.) Affordable Housing Mitigations for rental housing projects (Per BMC ) Applies to Project? Yes Yes No Explanation The project involves altering a building over 7,500 square feet that has been mostly vacant for at least 3 years. The project involves altering a building over 7,500 square feet that has been mostly vacant for at least 3 years. No residential units are proposed. Alcohol Sales/Service No No alcohol sales/service is proposed. Creeks No No creeks are within 30 feet of the subject property. Density Bonus No No residential units are proposed. Historic Resources No The project does not include exterior alterations to the building. Oak Trees No No construction activity would occur within the drip line of a Coast Live Oak tree Rent Controlled Units No No residential units are existing or proposed. Seismic Hazards No The project area has been identified as having potentially liquefiable soil. The proposed project, however, does not involve new construction, additions or grading.

6 February 25, 2016 Page 6 of 12 Characteristic Soil/Groundwater Contamination Traffic Study Applies to Project? No Yes Explanation The project area is within an Environmental Management Area. Because no surface disturbance, excavation or dewatering is proposed, no potential health and environmental concerns are anticipated. Required for the generation of 25 or more peak hour vehicle trips. The project would generate about 52 AM and 126 PM peak-hour trips. As discussed in the Transportation Impact Analysis (Fehr & Peers, 2016) the project would not result in significant impacts to study area intersections. Although the project could potentially send approximately half of these new peak hour trips through the congested Ashby/San Pablo intersection, it would not trigger the City s thresholds of significance. Table 3: Project Chronology Date November 11, 2014 February 5,2016 February 8, 2016 February 9, 2016 February 25, 2016 Action Application submitted Application deemed complete Notices ed to cities of Oakland and Emeryville, per MOU (described below) ZAB Public hearing notices mailed/posted ZAB hearing Table 4: Development Standards (Note: no changes to building height/size proposed) Standard Proposed BMC Sections Existing Total 23E (C-W) & 23E (MU-LI) (note: no changes to building size or exterior are proposed) Lot Area (sq. ft.) N/A 177, ,455 min Gross Floor Area (sq. ft.) building: 492, ,706 max Gross Floor Area (sq. ft.) proposed health club use: C-W Mu-Li Total 0 35,643 6,836 42,479 Permitted/ Required N/A (>7,500 requires UP) Parking 472 onsite 472 onsite -Automobile 150 offsite 150 offsite min -Bicycle 0 Not Specified 0 2 min II. Project Setting A. Neighborhood/Area Description: The project site is located in West Berkeley on the west side of San Pablo Street between Folger Avenue and Sixty-Seventh Street. As shown in Figure 2, portions of the building are in three cities: Berkeley (the northern and majority portion), Oakland (most of the southern portion), and Emeryville (a small part of the westernmost portion). Thus the neighborhood to the south is in Oakland and to the southwest is in Emeryville. Beyond Folger Avenue to the northwest, uses are 1 Determined by zoning officer (Traffic Impact Analysis used one space per 400 square feet based on City of Oakland Code). Includes existing office and warehouse uses 2 Ratio of one space per 2,000 square feet of gross floor area of non-residential space for new construction. As this is a change of use, C-W district bike parking requirement does not apply.

7 February 25, 2016 Page 7 of 12 primarily light industrial; directly to the north they are generally commercial. The parcel on the northwest corner of San Pablo Avenue and Folger Avenue is currently vacant, but a use permit was approved by the City of Berkeley in November 2007 which would allow a 32,043 square foot mixed-use building with 29 residential units (4.7 Below Market rate), 1,603 square feet of commercial space and 31 off-street parking spaces 3. Beyond Sixty-Seventh Street to the south is a fast food establishment, light industrial, and single-family and multi-family residential uses in the City of Oakland. The Emeryville Greenway and bike path runs behind the building to the west, with a parking lot and light industrial uses in the City of Emeryville beyond. To the east is San Pablo Avenue, with a paint store, liquor store, an auto body repair shop, and residential uses beyond. B. Site Conditions: The subject parcel is approximately four acres in size and rectangular in shape, with the short sides fronting on San Pablo Avenue to the east and the Emeryville Greenway to the west (see Figure 2). The site is developed with one 492,706 square-foot building known as the Marchant Building, which occupies 96% of the parcel. The building is somewhat unique because of its size and also because it is both splitzoned and also split between three cities: Berkeley, Oakland and Emeryville, as shown in Figure 2. An executed Memorandum of Understanding (April 2013) between the Cities of Oakland, Emeryville, and Berkeley establishes Berkeley as the lead city for land use approvals. Thus, even though a portion of this use would also be in Oakland, per the MOU, Berkeley s zoning regulations apply to the project. The area of the parcel within Berkeley city limits is also split-zoned, with the front of the building zoned C-W and the rear zoned MU-LI. The project site is adjacent to a commercial Node, as identified in the West Berkeley Plan, centered on the intersection of Ashby and San Pablo Avenues. The majority of the building is two stories in height except the portion along San Pablo Avenue, which rises to four stories. Approximately 92,000 square feet of the building is occupied by several light industrial uses, including research and development, manufacturing/warehouse, and mercantile storage, all within the MU-LI-zoned spaces. The remaining space is unoccupied. A bio-filtration area is located in the rear of the parcel along the western property line. Parking is provided in the basement (102 spaces) and on the roof of the building (370 spaces), with additional parking on two adjacent offsite lots to the north and west (approximately 150 total spaces), also owned by the project applicant. The Marchant Building was previously a manufacturing building for the Marchant Calculator Company. Over the years the building has housed Smith Corona Marchant (SCM), the Peralta Colleges District for East Bay Skills Center, and in 1979, the University of California. The University vacated the building in 2010, but maintains storage space in the basement level. The building is currently undergoing façade alterations and landscape and signage updates. These activities have been approved by the cities of Oakland and Berkeley via several permits issued in 2014 and 2015, including City of Berkeley staff level design 3 While construction of this building has not begun, the City received a building permit application in 2015.

8 February 25, 2016 Page 8 of 12 review permits. In addition, the second-story roof has been converted to a parking lot, such that the building now has 370 spaces more than it did historically. III. Project Description The applicant is proposing to convert approximately 42,479 square feet of existing vacant (but formerly manufacturing) space in the 492,706 square-foot Marchant Building to a gym/health club. The health club would occupy approximately 18,357 square feet of the first floor and approximately 24,122 square feet of the second floor, in the portion of the building fronting on San Pablo Avenue. This area of the building is currently vacant. The health club would be accessed directly from San Pablo Avenue via the building s front entrance. The facility would include a pool, men s and women s spas, exercise equipment and aerobics studios. On average, approximately 125 customers would occupy the health club at one time. Hours of operation would be 5:00 a.m. until midnight, seven days per week. Parking would be provided in the two on-site lots (472 total spaces) shared with other building tenants; 107 spaces would be made available at all times for the health club in the rooftop lot along with 320 additional unassigned parking spaces. The building s two adjacent offsite surface lots would also be available to health club employees and patrons. The health club lobby entrance would be accessible from the rooftop parking lot via elevator. Lighting for the rooftop parking lot would be set to stay on from 5:00 AM to 12:30 PM. The entire first floor and most of the second floor space of the proposed health club are within the C-W Zone District, while approximately 6,836 square feet of the proposed second floor space is zoned MU-LI. IV. Community Discussion A. Neighbor/Community Concerns: Prior to submitting this application to the city in 2014, the applicant erected a pre-application poster on the site. On February of 2015, the applicant invited interested neighborhood organizations as well as owners and occupants within 500 feet of the project to a project preview meeting. The meeting was held on March 12, 2015, and attended by two people. Concerns were voiced by the attendees regarding parking, traffic and opening hours. B. Public Notice: On February 9, 2016, the City mailed 131 public hearing notices to property owners and occupants, the cities of Oakland and Emeryville, and to interested neighborhood organizations, and the City posted notices within the neighborhood in five locations. In accordance with the MOU, the City also sent public hearing notices to the cities of Oakland and Emeryville 17 days prior to the public hearing, on February 8, At the time of this writing, staff has not received any communications regarding the project. C. Committee Review: None required.

9 February 25, 2016 Page 9 of 12 V. Issues and Analysis A. Health Club Use in the MU-LI District. Health clubs over 7,500 square feet are allowed in the C-W District with a Use Permit; the entire first floor and most of the second floor of the proposed health club space is zoned C-W. However, approximately 6,836 square feet of the proposed second floor health club area is zoned MU-LI. As health clubs are not expressly permitted in the MU-LI District, an AUP is required pursuant to BMC Section 23E B to permit a use not listed in the permitted uses for the district. The ZAB would need to find that the proposed use is compatible with the purposes of the MU-LI District to approve the AUP. In addition, BMC Section 23E A requires a Use Permit to convert any of the existing building area to a use other than certain manufacturing, warehouse and similar uses listed in that section. The health club use in this location occupying less than 10% of the subject building, located mostly in the C-W District, and situated along a major commercial corridor would be compatible with purposes of the MU-LI district. The BMC lists several purposes for the district, including Encourage development of an area where light manufacturers can operate free from the economic, physical and social constraints caused by incompatible uses, and Allow on site ancillary retail as a tool to maintain and enhance the economic viability of manufacturers in the district In the context of the Marchant Building, where MU-LI-allowed uses are dominant, it is not expected that a health club would result in operational constraints to the existing light manufacturing and storage uses. Light industrial uses in the building would continue to operate freely as the health club use would not be particularly sensitive to light industrial and R& D operations taking place in the remaining MU-LI spaces. In addition, the health club could be considered an amenity that enhances economic viability for the building owners and tenants through providing an onsite fitness facility for employees. Finally, the health club use would enhance the viability of the building by providing a convenient gym location for employees of existing and future building occupants. Finally, the health club would occupy 6,836 square feet of MU-LI-zoned space in the 492,706 square-foot building, with approximately 395,000 square feet of MU-LI floor area remaining in the building. Thus the primary use of the building would continue, and ample space would be available for successful and ongoing light industrial uses on the site. Based on the discussion above, the proposed health club would not be detrimental to the continuing operation and viability of the existing light industrial and storage uses in the building or the neighborhood. B. Health Club Over 7,500 Square Feet in the C-W District. A Use Permit is required for the establishment of a health club over 7,500 square feet. The health club is expected to serve customers in the immediate neighborhood as well as the larger surrounding Berkeley, Emeryville and Oakland areas. The proposed health club use is appropriate for the location as it would help activate the San Pablo Avenue streetscape and the West Berkeley Plan commercial Node at Ashby and San Pablo avenues that is directly adjacent. It would also support the onsite and adjacent light industrial and commercial

10 February 25, 2016 Page 10 of 12 operations by providing a neighborhood amenity accessible at lunchtime or before or after work. C. Traffic and Parking. A traffic impact analysis is required in Berkeley for projects generating 25 or more peak hour trips. As detailed in the project Transportation Impact Analysis (Fehr & Peers, 2016), the health club would generate approximately 52 AM and 126 PM peak-hour trips. However, the Transportation Impact Analysis concluded that the project would not trigger the City s thresholds of significance 4. It should also be noted that the site is served by several AC Transit routes and the Emery Go-Round and West Berkeley shuttles, and is on the Emeryville Greenway north-south bike path, which connects to other north-south and east-west routes. City parking requirements for the proposed health club come to 107 spaces, based on a rate of one space per 400 square feet 5. As discussed above, the Marchant Building has 472 onsite parking spaces and approximately 150 spaces in adjacent lots for a total of approximately 622 spaces for all uses within this building. According to the project s Transportation Impact Analysis dated February 2016, estimated parking demand using Urban Land Institute and ITE generation factors would call for up to 199 spaces for the health club. The 472 onsite spaces would meet this demand under either metric. (A separate preliminary shared parking analysis indicated actual demand for full building occupancy of 573 spaces, which could be met by the onsite spaces plus adjacent surface lots, which combined would provide approximately 622 spaces.) Based on these parking requirements and demand, and the building s parking supply, sufficient parking would be available such that cars would not be expected to seek spaces in adjacent neighborhoods, and thus the project would not be detrimental in this regard. Condition #25 requires that the number of spaces reserved for the health club on the rooftop parking deck be expanded from 100 to 107 to meet the full City parking requirement. Although the project plans show bicycle parking adjacent to the front entrance to the health club on San Pablo Avenue, the number of spaces is not specified. Condition of Approval #26 requires that the bicycle parking meet City standards and accommodates at least 22 bicycles. D. General Plan Consistency: The 2002 General Plan contains several policies applicable to the project, including the following: 1. Policy LU-3 Infill Development: Encourage infill development that is architecturally and environmentally sensitive, embodies principles of sustainable planning and construction, and is compatible with neighboring land uses and architectural design and scale. 4 The thresholds are contained in the City s Guidelines for Development of Traffic Impact Reports, available at and are also described in the project Transportation Impact Analysis. 5 Because the BMC does not have a specific standard for health clubs, the City of Oakland s rate was used, as recommended by Fehr & Peers and approved by the City s Traffic Engineering staff.

11 February 25, 2016 Page 11 of Policy LU-9 Non-Residential Traffic. Minimize or eliminate traffic impacts on residential areas from institutional and commercial uses through careful land use decisions. 3. Policy LU-10 Parking: Protect residential areas from institutional and commercial parking impacts by encouraging use of alternative modes of transportation and strictly enforcing residential parking permit regulations. 4. Policy LU-27 Avenue Commercial Areas: Maintain and improve Avenue Commercial areas, such as University, San Pablo, Telegraph, and South Shattuck, as pedestrianfriendly, visually attractive areas of pedestrian scale and ensure that Avenue areas fully serve neighborhood needs as well as a broader spectrum of needs. Staff Analysis: The site is surrounded with a mix of commercial, light industrial and multifamily residential. The proposed health club would be contained within an existing building. The proposed health club would be located within walking distance of both residences and employment centers, is adjacent to a Class I bike path, and the site is served by buses and shuttles. The project would meet parking requirements and would not result in significant traffic impacts, and is accessible directly from San Pablo Avenue without the need to use residential streets for access. The use would be compatible with the mixed industrial, commercial, and residential neighborhood. E. West Berkeley Plan Consistency: The West Berkeley Area Plan, adopted in 1993, also contains several goals and policies applicable to the project, including the following: 1. Land Use Goal 1: Over the economically active area of West Berkeley, 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 promotes the varied and interest character of the area. Policy A. Retaining, through planning, zoning and land use policies which shield manufactures from economic and physical incompatibilities with other uses, sufficient land and buildings to maintain the current level of manufacturing employment at a minimum. Policy B. Providing, through zoning districts, development standards, and other tools, space and incentives for expansion of manufacturing firms, particularly the growing light manufacturing sector. Policy C. Providing space for, and designating appropriate locations for-- in planning and zoning policies--both neighborhood and regional serving retail businesses. Policy D. Providing space for, 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. 2. Land Use 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.

12 February 25, 2016 Page 12 of Land Use Goal 3: Protect residential core neighborhoods from adverse impacts of economic growth especially traffic and parking congestion and noise. Staff Analysis: The health club would occupy 6,836 square feet of MU-LI-zoned space in the 492,706 square-foot building, with approximately 395,000 square feet of MU-LI floor area remaining in the building. The primary use of the building would continue to be light industrial, and ample space would be available for successful and ongoing light industrial uses on the site. The proposed health club use would help activate the San Pablo Avenue streetscape and the West Berkeley Plan commercial Node at Ashby and San Pablo avenues that is directly adjacent. It would also support the onsite and adjacent light industrial and commercial operations by providing a neighborhood amenity accessible at lunchtime or before or after work. As discussed above, the project would not result in significant traffic or parking impacts to the surrounding neighborhood. VI. Recommendation Because of the project s consistency with the Zoning Ordinance and General Plan, and minimal impact on surrounding properties, staff recommends that the Zoning Adjustments Board APPROVE ZP pursuant to Section 23B and subject to the attached Findings and Conditions (see Attachment 1). Attachments: 1. Findings and Conditions 2. Project Plans, received February 18, Memorandum of Understanding with Oakland and Emeryville 4. Notice to Oakland and Emeryville, Pursuant to MOU 5. Notice of Public Hearing, dated February 9, 2016 Staff Planner: Greg Powell, Principal Planner, gpowell@ci.berkeley.ca.us, (510)