ANALYSIS AND RECOMMENDATIONS:

PROJECT DESCRIPTION

This is a staff initiated General Plan amendment request to change the Land Use/Transportation Diagram designations from Industrial Park (88.2 acres), General Commercial (3.7 acres), and Mixed Industrial Overlay on 20.5 acres (see Figure 1) to Light Industrial (57.9 acres), Combined Industrial/Commercial (17.5 acres), General Commercial (3.9 acres), Public/Quasi-Public (12.4 acres), and reduce the amount of Mixed Industrial Overlay to 4.6 acres (see Figure 2). This amendment request is intended to more accurately represent the existing uses on the subject site and further the City’s efforts to maintain, preserve and increase, where appropriate, the amount of land designated for light and heavy industrial uses.  Preserving industrial areas is an important part of the City’s General Plan Economic Development Major Strategy, Goals and Policies to improve the City’s financial position, balance land uses, and provide greater employment opportunities for San Jose’s residents.  This proposal is not related to any current or pending development projects. 

BACKGROUND

On November 14, 2000, the City Council considered a report regarding the economic development impacts from the loss of heavy and light industrial land including the loss of jobs and industrial supplier companies that support the high tech industry.  The report summarized the findings of a study, conducted by Chapin Concepts, Inc. and Applied Economics, which identified a 32% decline of heavy and light industrial lands over the past 20 years. In addition, there has been a significant decline in low and medium skilled job opportunities in San Jose.  Approximately 46% of all the jobs generated in the heavy industrial areas are high tech suppliers.

In response to the impacts and implications of the loss of heavy and light industrial land, the City Council directed the Administration to develop recommendations to preserve the remaining land currently designated for heavy and light industrial uses.  As a first step, staff initiated and the Council approved General Plan amendments in 2001 to remove the Mixed Industrial Overlay on 598 acres.  While this was a positive act to preserve these areas, staff is continuing to identify additional steps, such as the subject amendment, to secure the integrity to the City’s industrial lands. 

During the 2001 General Plan Annual Review, the City Council ensured the preservation of 598 acres of Light and Heavy Industrially designated land for strictly industrial uses by removing the Mixed Industrial Overlay on an equivalent amount of acreage; however, approximately 22.0 acres of industrial land was converted to other uses through other General Plan changes.  By the end of 2001, the City was left with an inventory of 1,293.4 acres of Light Industrial land and 2,114.5 acres of Heavy Industrial land.  The Vacant Land Inventory (July 2001) identified a total of 117.8 acres of vacant Light Industrial land and 186.4 acres of vacant Heavy Industrial land.  Therefore, approval of this subject amendment would increase the total inventory of Light Industrial land to 1,351.3 acres.

ANALYSIS

Existing and Surrounding Land Uses

The proposed amendment site is bounded by Senter Road to the west, Wool Creek Drive to the north, Coyote Creek to the east and Tully Road to the south.  The site is also located within the Tully/Senter Strong Neighborhoods Initiative area.  The existing uses on the amendment site include the George Shirakawa, Sr. Elementary School, Metro Tires and Gas, San Jose Rebar, Atlas Vanlines, Contractor Equipment Sales, Exchange Linen Services, among other light industrial and commercial uses. Uses in the vicinity are generally industrial with the Rocksprings neighborhood to the north and the Santa Clara County Fairgrounds to the south.

Land Use Compatibility

The proposed General Plan amendments reflect the existing uses on the subject amendment site.  Given the predominant Light Industrial uses in the area, these changes are intended to protect this Light Industrial character for the long-term.  A brief description of each proposed land use change and the existing uses on the subject site are discussed below:

 1.       Industrial Park to Public/Quasi-Public (Figure 2, Area 1): The 12.4-acre George Shirakawa Sr. Elementary School is currently designated Industrial Park.  The amendment proposes to redesignate this site to Public/Quasi-Public to reflect the school use.

 2.       Industrial Park to Light Industrial (Figure 2, Area 2): The change from Industrial Park to Light Industrial (57.9 acres) is intended to better reflect the existing uses on this portion of the amendment area (see Figure 2).  These uses include outside storage of construction materials such as rebar and plumbing supplies, industrial linen services, manufacturing and assembly (Viking Container Company), construction equipment sales, auto repair, among other industrial uses.  Uses such as outside corporate/storage yards are generally not suited to meet the stringent design standards of the Industrial Park designation.  Therefore, the current designation of Industrial Park may limit the future expansion or reuse of these sites by other industrial users.  It is important that areas of the City are maintained for such uses. The proposed Light Industrial designation would ensure this area for long-term light industrial uses.

 3.       Industrial Park and General Commercial to Combined Industrial/Commercial (Figure 2, Area 3): The change from Industrial Park (17.2 acres) and General Commercial (0.3 acres) to Combined Industrial/Commercial for the approximate 17.5 acres which front on Senter Road would reflect the existing auto parts sales and tire repair operations.  It would also allow for expansion of the existing uses and provide the option for either future commercial or industrial development, which would enhance the frontage of Senter Road. 

 4.       Industrial Park to General Commercial (Figure 2, Area 4): There are currently 3.7 acres of land designated General Commercial, which front on the corner of Senter and Tully Road.  One of these properties (APN 477-75-004) currently has a split designation of General Commercial (0.7-acre portion) and Industrial Park (0.5-acre portion), despite the fact that the entire parcel is developed with commercial uses.  Therefore, the more appropriate designation for the entire parcel would be General Commercial.  This creates the necessity to amend 0.5 acres of Industrial Park to General Commercial.  The remaining existing uses in this area are commercial activities.

 5.       Reduce the Mixed Industrial Overlay (Figure 2, Area 5): The Mixed Industrial Overlay (MIO) is intended for non-exclusive industrial areas. The difference between the MIO and the Combined Industrial/Commercial designation is that the MIO is more restrictive as to the non-industrial uses allowed under this overlay designation.  The MIO may allow for appropriate commercial and public/quasi-public uses, or developed as entirely with industrial uses in accordance with the base industrial designation. The Combined Industrial/Commercial designation allows for a greater variety of uses, whether it is of a light industrial or commercial nature.  Therefore, the proposed change from Industrial Park to Combined Industrial/Commercial along Senter Road would eliminate the need for a MIO on this 9.7-acre portion of the amendment site. 

Currently there are 12.5 acres of Mixed Industrial Overlay, which front the north side of Tully Road.  Staff is proposing to reduce the area designated with the Mixed Industrial Overlay to 4.6 acres in order to increase the amount of properties within the area for exclusively industrial uses.  This proposed change would maintain the flexibility for specific non-industrial uses along Tully Road, per the Mixed Industrial Overlay designtion.

Policy Consistency

The proposed land use changes are consistent with the General Plan Economic Development Major Strategy, which supports industrial growth to balance existing residential development, through the equitable distribution of job centers and residential areas.  The proposed amendment is also consistent with the intent of the General Plan Economic Development and Industrial Land Use Goals and Policies, which strive to:

 ·         Provide sufficient land for a variety of industrial uses that are distributed throughout the City to create a stronger municipal tax base.

 ·         Protect the exclusively industrial areas from incompatible development.

 ·         Nurture and encourage expansion of the existing industrial development in the City. 

The proposed General Plan amendment is also consistent with the following specific Policies:

 ·         Industrial Land Use Policy #9: The City should encourage industrial supplier/service business retention and expansion in appropriate areas in the City. 

 ·         Industrial Land Use Policy #15: Exclusively industrial areas should be reserved for industrial uses to the extent possible. 

 ·         Economic Development Policy #2: To enhance its economic development goals and increase employment opportunities for San Jose citizens, the City should:

 1.       Seek to attract businesses and industries, which are particularly suited to the area.

 2.       Protect industrial lands designated exclusively for industrial uses.

 3.       Attract a diverse mixture of businesses and industries that can provide jobs suitable for City’s unemployed and under-employed labor force.

The ultimate goal of the proposed amendment is to further protect and preserve the limited amount of Light and Heavy Industrial land.  The preservation and expansion of these designations would also improve the City’s financial stability and provide greater employment opportunities for San Jose’s workforce. 

Environmental Issues

None

Public Outreach

The property owners within the project boundaries and/or property owners within a 1000-foot radius were sent a newsletter regarding the three community meetings that were held on April 10, 16 and 18, 2002.  They also received a hearing notice of the public hearings to be held on the subject amendment before the Planning Commission in May and City Council in June.  In addition, the Department's web-site contains information regarding the General Plan process, amendments, staff reports, and hearing schedule.  This site is used by the community to keep informed with the status of the amendments. 

RECOMMENDATION

 ·    Light Industrial (57.9 acres)

 ·    Combined Industrial/Commercial (17.5 acres)

 ·    General Commercial (3.9 acres)

 ·   Public/Quasi-Public (12.4 acres)

 ·   Reduce the Mixed Industrial Overlay to 4.6 acres.