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HomeMy WebLinkAbout2. Biomedical Overlay ZoneSTAFF REPORT PLANNING DIVISION DATE: APRIL 4, 2018 TO: PLANNING COMMISSION SUBMITTED BY: ALDO E. SCHINDLER, DIRECTOR OF COMMUNITY DEVELOPMENT REVIEWED BY: DAVID BLUMENTHAL, CITY PLANNER PREPARED BY: DAVID BLUMENTHAL, CITY PLANNER SUBJECT: ZONE TEXT AMENDMENT FOR CREATION OF A BIOMEDICAL OVERLAY ZONE BACKGROUND The biomedical industry is one of the fastest growing job sectors in Southern California. This not only includes medical offices and care facilities, but also includes all of the necessary support industries (manufacturing, research and development, education, pharmaceutical, etc.). In order to capitalize on Downey’s centralized location in the region and the three existing hospitals, the Mayor and City Council have made it a goal to attract new biomedical businesses to the City. As such, City staff was directed to procure the services of an outside consultant to prepare a biomedical overlay zone that enhances the existing Zoning Code and provides a catalyst to increasing biomedical businesses in Downey. In April 2016, the City issued a Request for Proposal (RFP) to elicit proposals from professional planning firms for the aforementioned services. At the conclusion of the competitive process, the City Council approved a professional service agreement with Civic Solutions to study and prepare the necessary code amendments to achieve the Council’s goal. Civic Solutions provided a multi-phase scope of work that includes the following: Phase 1 – project initiation and coordination; Phase 2 – research of bio-medical land use; Phase 3 – evaluation of the Downey’s existing Hospital-Medical Arts (H-M) zone and conducting a bio-medical assessment; and, Phase 4 – preparation of a new biomedical overlay zone. The reports that have been generated as a result of Phases 2, 3, and 4 are attached hereto. On March 15, 2017, staff and Civic Solutions presented the Phase 2 - Research Summary Report to the Planning Commission. This included a summary of the research that was completed and how Downey could benefit from having a Biomedical Overlay zone. Attached to this report, staff is redistributing the Phase 2 report; as well as, distributing the Phase 3 and Phase 4 reports to the Planning Commission. Staff and Civic Solutions will provide a presentation of the findings of these reports at the study session. DISCUSSION Civic Solutions has researched the key issues related to the biomedical industry, interviewed other jurisdictions that have a cluster of biomedical businesses, Downey’s hospitals, local Agenda Page 1 Biomedical Overlay Zone Study March 15, 2017 - Page 2 universities, regional hospitals; identif ied Downey’s strengths and weaknesses, and interviewed biomedical stakeholders and experts. Based on this research, they found: 1. The biomedical field is highly sought after across the nation. Many jurisdictions, large and small, have incorporated incentives into their Zoning and/or Economic Development portfolios to attract this industry. 2. The City has the basic attributes desired by most biomedical uses. These include upgraded utilities and fiber optic networks, ready access to large employment and patient bases, existing hospital facilities, including the renowned Rancho Los Amigos National Rehabilitation Center, underdeveloped land with potential for redevelopment and proximity to biomedical clusters in Los Angeles, Orange and San Diego counties. 3. The Greater Los Angeles area is an emerging bioscience hub and Downey is already part of that cluster. The County of Los Angeles is actively pursuing development of bioscience clusters around the County, with Downey’s Rancho Los Amigos identified as one of a handful of sites critical to the Los Angeles County Biosciences Master Plan. 4. The City of Downey’s biomedical potential is limited by a lack of vacant land. Being built-out, there is a lack of available vacant land for firms seeking to “build fresh.” Instead, new facilities will require either the conversion of older structures or the razing of previously developed sites. 5. Cities with significant biomedical clusters across the United States provide a broad platform of incentives to attract biomedical uses. Zoning to facilitate and encourage biomedical uses is one of several incentives used to attract biomedical uses, but additional incentives are typically needed. A biomedical business is one that is associated with medical or biological research, analysis, testing and manufacturing of medical products and equipment. The draft text amendments are attached as Exhibit ‘A’. They add new definitions to the Municipal Code, adjust the permitted use tables to accommodate the new overlay zone, and add a new Section 9326 for the Biomedical Overlay Zone (BIO) to the Municipal Code. The intent of these changes is to add flexibility to existing properties that will encourage the development and growth of biomedical businesses. Staff is recommending five areas of the city to be included in the new biomedical overlay zone. These areas are outlined on the maps contained in Exhibit ‘B’ of this report, but include areas surrounding the Rancho Los Amigos Hospital, PIH Downey Hospital, the Woodruff/Washburn Industrial Area, Kaiser Downey, and portions of Telegraph Road. Staff is seeking the public and the Planning Commission’s input on the draft language and proposed overlay areas. Based on the input, Staff will make the necessary changes to the draft code and return to the Planning Commission in a public hearing for consideration of the Zone Text Amendment. EXHIBITS A. Phase 2 Report, dated April 6, 2017 B. Phase 3 Report, dated November 8, 2017 C. Phase 4 Report, dated March 23, 2018 Agenda Page 2 Biomedical Overlay Zone Study March 15, 2017 - Page 3 D. Draft Code Changes E. Biomedical Overlay Zone Maps Agenda Page 3 Biomedical Overlay Research, City of Downey Page 1 of 27 CITY OF DOWNEY PHASE 2: FINAL RESEARCH SUMMARY REPORT April 6, 2017 Introduction The City of Downey, California retained Civic Solutions, Inc. to establish new “Biomedical Overlay Zone” regulations and development standards to work in concert with an updated Hospital-Medical Arts (H-M) Zone. This report summarizes the issues, background, and the market demands related to this type of land use and forms the foundation for the next project phases. SECTION 1 – EXECUTIVE SUMMARY The following points represent the primary findings from the preliminary research:  The biomedical field is highly sought after across the nation. Many jurisdictions, large and small, have incorporated incentives into their Zoning and/or Economic Development portfolios to attract this industry. However, significant amounts of venture capital are required to support biomedical clusters in metropolitan areas. Los Angeles County has upward trending biomedical venture capital investment of $74 Million in 2016. However, this is still significantly lower than other major U.S metropolitan areas such as San Francisco and San Diego.  The City of Downey has the basic attributes to attract biomedical businesses. The City has the basic attributes desired by most biomedical uses. These include upgraded utilities and fiber optic networks, ready access to large employment and patient bases, existing hospital facilities, including the renowned Rancho Los Amigos National Rehabilitation Center, underdeveloped land with potential for redevelopment and proximity to biomedical clusters in Los Angeles, Orange and San Diego counties. Additionally, success of biomedical firms is highly dependent on availability of specially trained professionals, especially those with graduate and professional degrees. Downey is close to several universities and vocational training centers with respected medical schools (e.g., USC, UCLA, and UCI) and vocational medical programs (e.g., Cerritos College, Downey Adult School). Agenda Page 4 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 2 of 27  The Greater Los Angeles area is an emerging bioscience hub and Downey is already part of that cluster. The County of Los Angeles is actively pursuing development of bioscience clusters around the County, with Downey’s Rancho Los Amigos identified as one of a handful of sites critical to the Los Angeles County Biosciences Master Plan. There may be opportunities for the City to expand its attractiveness as part of the County’s Master Plan by building alliances with existing companies, medical and educational institutions, and private ventures. Downey is likely to face potential competition due to existing alliances in nearby cities.  The City of Downey’s biomedical potential is limited by a lack of vacant land. Being built-out, there is a lack of available vacant land for firms seeking to “build fresh.” Instead, new facilities will require either the conversion of older structures or the razing of previously developed sites.  Cities with significant biomedical clusters across the United States provide a broad platform of incentives to attract biomedical uses. Zoning to facilitate and encourage biomedical uses is one of several incentives used to attract biomedical uses, but additional incentives are typically needed. Zoning incentives could be used to help overcome the County-wide shortage of laboratory space (wet and dry). Labs have high, upfront costs to retrofit buildings and this can be a substantial barrier to biomedical startup companies. SECTION 2 – PROJECT STATEMENT This report summarizes the results of biomedical research (Phases 1 and 2), the initial phases of a five-phase project to establish a Biomedical Overlay in the City and to attract and retain more biomedical jobs. In it, we identify other jurisdictions that have developed and implemented a “Biomedical Facilities Overlay” or similar zoning district, we report the results of interviews with medical and academic institutions with knowledge of the biomedical industry, and we summarize key economic data and characteristics of the biomedical industry. These results provide the basis for a “biomedical feasibility assessment” to identify Downey’s strengths, weaknesses, opportunities and threats in attempting to expand biomedical investment and employment. SECTION 3 – METHODOLOGY The Civic Solution’s project team conducted the following data collection and analysis: 1. Developed an in-depth understanding of the key issues related to the biomedical industry. The team reviewed trade journals including Site Selection Magazine, Urban Land Magazine, Practicing Planner, and Zoning News, reviewed web-based information, analyzed the findings of current and applicable research papers, and conducted interviews with experts knowledgeable about the biomedical field and economic development strategies, such as Ahmed Enany, CEO of the Southern California Biomedical Council (SoCalBio). Agenda Page 5 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 3 of 27 2. Conducted research on other jurisdictions that have developed and implemented biomedical zones. The team identified Biomedical Overlay Zone examples and their effectiveness, as well as other geographically-based incentives across the U.S. Cities studied included smaller to medium-sized cities such as Carlsbad, Oceanside, Torrance, Irvine and Santa Monica and large cities, including San Diego, Los Angeles, San Francisco, Phoenix, Seattle, Boston and many others. The team analyzed the cities’ zoning, financial and land use tools used to attract biomedical and health care jobs and investment, and identified patterns and anomalies in jurisdictions with successful zoning strategies. The team then documented the effectiveness of these jurisdictions’ methods and overall results. 3. Conducted interviews with key stakeholders and experts. The team interviewed key management staff at selected local and regional hospitals, universities and other medical/vocational programs, and biomedical businesses and associations in Downey and nearby areas. These organizations included the Rancho Los Amigos National Rehabilitation Center, Kaiser Permanente Health Center, Presbyterian Intercommunity Hospital (PIH Health), Hoag Memorial Hospital, Cerritos College, Downey Adult School, the Southern California Biomedical Council (SoCalBio), the University of Irvine Medical School, Keck School of Medicine of USC, Loma Linda University, and the Crean College of Health and Behavioral Sciences at Chapman University. The interviews helped in understanding the biomedical sector and the City's biomedical assets, needs and attributes. The interviews also provided insights into biomedical institutions and businesses that might consider locating in Downey or form alliances with medical facilities already in Downey. 4. Identified Downey’s key strengths, weaknesses, opportunities, and threats. Combining the information gathered from the above methods, the team organized the findings to identify effective zoning practices adopted by other jurisdictions, the requirements of industry firms and stakeholders, and the attributes of the Greater Los Angeles area’s emerging biomedical hub to develop a SWOT (strengths, weaknesses, opportunities, and threats) assessment. 5. Conducted further analysis of issues identified and summarized analysis in the report. Based on initial findings, the team evaluated additional data outside of the work scope as necessary in the course of research, analyzed issues, and included additional observations, as appropriate, throughout the report. This additional research includes the evaluation of cities with successful biomedical clusters that do not provide zoning incentives, as well as interviews with heads of organizations in such areas, such as with Matthew Phillips, Director of the Sacramento Area Technology Alliance’s MedStart program. Agenda Page 6 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 4 of 27 SECTION 4 – RESULTS 4.1 Key Stakeholder Interviews 4.1.1 Main Findings 1. Several regional and local universities and institutions are interested in developing or expanding relationships with organizations in the City. 2. The City has a good foundation to help establish a biomedical hub, especially one centered on existing niche markets, such as the rehabilitative research and services provided at the Rancho Los Amigos. 3. The recent trend to attract biomedical uses includes the development of flexible spaces that adapt to the changing needs of growing companies. Additionally, high-quality housing and transportation facilities help attract the biomedical industry’s typically younger workforce. 4. More biomedical uses in the City would provide better opportunities for local schools to help students transition into the biomedical industry, improve the local labor pool and help maintain and attract new biomedical facilities. 5. Local jurisdictions can make a large impact by facilitating public and private coordination. In many of the newer biomedical developments, public agency input and participation are often critical to the projects’ success. 4.1.2 Interviews with major local hospitals and biomedical facilities Kaiser Permanente Health Center, Downey Campus. Gregg B. Durkee, Chief Operations Officer, spoke about Kaiser Permanente’s (KP) current plans to expand their Downey facilities with a “Bed Tower”, now in the planning and permitting phase. He oversees inpatient and outpatient hospital facilities and noted the center has about 4500 employees, including physicians. KP seeks locations that are easily accessible and that have a high community need. For these reasons, he felt Downey was a good location for their facility. KP’s mission is to improve the overall health of a community, and that includes addressing non-medical needs. In addition to seeking and providing local employment, KP brings hundreds, even thousands of patients weekly into the City and many of these folks provide secondary benefits to City through retail sales and use of local services. Mr. Durkee felt the City of Downey has been easy to work with and added that he understood the City has its rules. And while KP has a “really good relationship” with the City, KP would always appreciate opportunities to improve communications and expedite building permit processing. He expressed support for the City’s efforts to attract more biomedical uses. KP is significantly invested in medical research, and also looks for opportunities to partner with and/or encourage local medical-oriented businesses, such as kidney dialysis services or skilled nursing facilities existing in Downey. Mr. Durkee added that KP Downey has a Agenda Page 7 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 5 of 27 strong internship program with Cerritos College in their Hospitality Services program. He has been impressed with the City of Downey’s accomplishments in the last 10 years, and would like to receive further information on the City’s biomedical overlay project. PIH Health (Presbyterian Intercommunity Hospital), represented by Debra Legan, Vice President, Marketing, Business Development and Community Benefit. PIH, a multi-campus hospital with locations in Downey and Whittier, currently partners with the Keck School of Medicine at the University of Southern California (USC) Medical School to provide interns and doctors at PIH. PIH offers offices for resident doctors and interns. Speaking about the City of Downey, Debra Legan said the City staff is great to work with and has been very supportive of PIH. However, PIH would be concerned about the type of biomedical uses attracted by an overlay in Downey. Ms. Legan stated that PIH is heavily dependent, financially, on outpatient services with a large medical patient load. PIH’s primary program focus is on meeting medical care needs of low and moderate income families. Consequently, PIH’s business health would not benefit from increased competition if additional general medical services came to Downey, an outcome which may not be in the best interests of PIH or its patients. However, Ms. Legan stated, developing an overlay, or some other incentive program, that attracts more professional-level jobs in a range of bio-medical fields and promotes the construction of high quality housing would be beneficial. Rancho Los Amigos (RLA), represented by Jorge Orozco, Chief Executive Officer of RLA Rancho Los Amigos National Rehabilitation Center (RLA) is a world-renowned public hospital located in Downey that works with cutting edge medical technology, including stem cell implants and robotic, artificial limbs. RLA specializes in rehabilitation/restorative medical services (particularly for spinal/cranial injuries) that use local vendors for orthotics, prosthetics, and prescription drugs, when possible. The campus is currently undergoing an expansion that is expected to be completed in 2019. RLA works closely with Keck School of Medicine at USC and also the University of California, Los Angeles and Loma Linda University. Jorge Orozco stated that Downey is well liked by RLA employees and considered “a good place to work.” To help grow the area’s biomedical uses and assist RLA’s future operations, Mr. Orozco said that the City should consider facilitating more networking opportunities between hospitals, developers, businesses and academic sectors, such as a local biomed “summit” meeting sponsored by City. He added that RLA would be very open to public-private partnerships to expand medical services, biomedical research, manufacturing and uses. He added that some of RLA’s main vendors, including rehabilitation therapy and medical equipment, are located within the City. Agenda Page 8 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 6 of 27 4.1.3 Interviews with universities, research institutions, non-profits and bio- medical trade association Cerritos College, represented by Sandy Marks, MSN, MS(HCA), RN, the Instructional Dean of the Health Occupations Division Located in the City of Norwalk, Cerritos College offers a number of Associate Degrees related to medical specializations. Discussing the possibility to collaborate with the City of Downey, Sandy Marks stated that Cerritos College would be interested in building partnerships and programs that would benefit the community and surrounding areas. The College would be interested in learning more about the demographic and socioeconomic characteristics about the area’s population, and specifically about the retired, geriatric, and uninsured components of the population. Cerritos College would be interested in exploring opportunities to host classes off site. Noting that classes offered in this type of scenario would typically accommodate up to 60 students. If the City of Downey would be interested in this, facilitating the development of buildings designed to allow these types of spaces is necessary. Ms. Marks said that having local biomedical businesses where students could work or complete internships would be beneficial. Additionally, a competitive advantage for community college nursing programs is the presence of another higher education facility dedicated to providing the Associate Degree of Nursing graduates with the additional two years of education needed to obtain their Bachelors of Science in Nursing. Another critical need for Cerritos College students, and other students generally, is the need for child care up to the age of 12. Ms. Marks advocated for the inclusion of child care centers, such as part of a college laboratory center for child development classes. Chapman University, Crean College of Health and Behavioral Sciences, represented by Janeen Hill, Ph.D., Dean of Crean College. The Crean College of Health and Behavioral Sciences at Chapman University, located in Orange, California, provides advanced healthcare education and conducts interdisciplinary health sciences research. Dr. Janeen Hill said the college does have existing affiliations with nearby hospitals and health care facilities, but the partnership details were not discussed during the interview. The College has attempted partnerships with Los Angeles County and is particularly interested in establishing connections with the Ranchos Los Amigos Rehabilitation Center in the City of Downey. She added, however, that initial College efforts in this regard have so far, not been successful and that perhaps the City of Downey could be instrumental in facilitating such partnerships. Agenda Page 9 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 7 of 27 Downey Adult School, represented by Marianna Pacheco, Director of Academic Programs at Downey Adult School. The Downey Adult School (DAS) offers several medical and dental occupational training programs for Licensed Vocational Nurses, Phlebotomy, EKG/ECG Technicians, Medical Assistants, Dental Assistants, and others. Ms. Pacheco noted that a positive step the City could take to help grow DAS’s heath career training would be to promote “externships” to provide clinical work experience at hospitals, labs and other medical businesses. Additional opportunities for these placements could be provided by expanding medical uses and biomedical businesses, particularly near Rancho Los Amigos and the Kaiser Permanente hospitals, as well as on County of Los Angeles land in Downey. Further, she felt the City should partner with outside agencies to promote biomedical uses. Speaking about the positive attributes currently in the City of Downey, Ms. Pacheco stated that generally speaking, the City has good infrastructure and Downey’s supply of land is seen as sufficient. DAS currently offers classes at the Columbus High School campus in Downey. Ms. Pacheco added that DAS intends to expand the school’s medical and dental training and suitable classroom space is available at that campus to accommodate the expansion. Loma Linda University, represented by Dr. Garry Fitzgerald, Administration Advisor, former Vice President of Business at the University Loma Linda University is a Seventh-day Adventist, coeducational health-sciences university located in Loma Linda, California. The University comprises eight schools, including Medical, Dental and Nursing schools and the Faculty of Graduate Studies, and has a faculty of between 800 – 1000 professors/physicians at any given time. The University has an affiliated Medical Center, which, according to Dr. Fitzgerald, operates the largest children’s hospital and neonatal intensive care unit, in terms of number of beds, west of the Mississippi. The University’s mission is focused on medical instruction, research, and health services and is committed to diversity in its faculty and student body. It is guided by religious principles of the SDA church. Dr. Fitzgerald said the University is interested in expansion and is “very open” to partnering or discussions with public agencies (including cities). He added that the University has started satellite medical facilities in the cities of Murrieta and Indio, and has also worked closely with the City of San Bernardino. University officials have been looking at sites in other areas, particularly for facilities specializing in neuroscience. He is very familiar with the City of Downey and felt that the presence of the Rancho Los Amigos Hospital could offer positive teaching and research opportunities for the University faculty and students. He added that there is already some exchange of medical residents with RLA. Agenda Page 10 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 8 of 27 He felt the biomedical industry was rapidly expanding and that Loma Linda University students benefitted from and were part of that expansion. In terms of incentives needed to attract and retain biomedical uses, he felt public agencies typically should expect to provide land, financial benefits or both. For example, the U.S. Federal government worked with the City of San Bernardino and the Loma Linda University Hospital to develop a medical center on a portion of the decommissioned Norton Air Force Base. He said that the biggest challenge in expanding biomedical uses, particularly academic and research facilities, are readily available investment capital and financing. He added that public-private partnerships are one way universities are securing the necessary capital. For example, Loma Linda University partners with Quest Diagnostics, a private- sector laboratory specializing in sports medicine and medical testing. University of Southern California, Keck School of Medicine, represented by Randolph W. Hall, Ph.D., Vice President, Research The Keck School of Medicine of the University of Southern California was established in 1885 as the region’s first medical school, and was the second professional school founded at USC. Following a $110 million gift from the W.M. Keck Foundation in 1999, the school began an expansion program to become one of the most highly regarded medical schools in the nation. The School also invested in new research efforts including the Zilkha Neurogenetic Institute which seeks to expand scientific knowledge of some of the most debilitating diseases of the brain, such as Alzheimer’s and Parkinson’s. Dr. Hall indicated it would be difficult for Downey to develop a biomedical hub due to the lack of a concentrated collection of medical schools and other institutions that can attract research grants/investment. However, he also said that Rancho Los Amigos represents the City’s best opportunity for expanding into the biomedical sector. USC has a relationship with RLA in research, especially neurological research, and has residents there as well. He mentioned Dr. Charles Liu, MD, PhD, director of the USC Center for Neurorestoration and Chair of the Department of Neurology at RLA. He noted that Dr. Liu regularly works with emerging biomedical firms on experimental therapies to treat paralysis and other conditions, and there are some spin off opportunities for entrepreneurial activities located near RLA. He said that within biomedical hubs, close proximity is very important for doctors, staff and patients to quickly walk between hospitals, medical offices, labs, etc. Southern California Biomedical Council (SoCalBio), represented by Ahmed A. Enany, President and Chief Executive Officer The Southern California Biomedical Council (SoCalBio) is a nonprofit trade association serving biomedical related businesses and organizations throughout the six counties which make-up the Greater Los Angeles region (Los Angeles, Orange, Ventura, Santa Barbara, Riverside and San Bernardino). Agenda Page 11 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 9 of 27 Mr. Enany stated that Downey is part of the Greater Los Angeles area’s regional biomedical draw and suggested that the City of Downey should aspire to be a hub of biomedical employment. Discussing the specifics of a successful biomedical overlay, Mr. Enany said that such zoning could allow biomedical uses in zones where they are not typically allowed, but where access, transportation and space is well suited for biomedical uses. Additionally, the City may want to consider the provision of development incentives, such as increased floor area ratio (FAR), lot coverage, and/or building height, to promote a minimum “employees per acre” ratio. Mr. Enany talked about the three basic types of biomedical uses: 1) research and development, 2) medical services, and 3) medical manufacturing. Of these, he felt that the City of Downey could be most successful in attracting medical manufacturing and “niche” biomedical uses related to medical rehabilitation by building on the national recognition of Rancho Los Amigos. He stated the City needs to look at geographic competition for biomedical uses to further identify the other niche markets Downey can best fill. He doubted that bio-tech uses such as medical research and development were feasible in Downey, since the City is not closely affiliated with a university or research institution. “Biotech” industries are typically associated with cell biology and chemical research; not with mechanical or electronic research and manufacturing. SoCalBio advocates for all new development to include universal access as it helps support biomedical uses and development. Other development techniques that prove beneficial for biomedical uses is “flex” or convertible office space; that is, commercial space that is interchangeable between wet and dry laboratory space and offices. “Wet” laboratory space refers to laboratories where chemicals, drugs, or other material or biological matter are handled in liquid solutions or volatile phases, requiring direct ventilation, and specialized piped utilities (typically water and various gases). Special focus should be paid to expanding incentives for medical laboratory space development and more business park/manufacturing-zoned areas with vacant or re-developable land. From a municipal standpoint, Mr. Enany stated that it is important for Downey to develop a “toolbox” of strategies to attract biomedical uses and job seekers. For example, one primary tool is to promote higher density, high-quality apartment homes close to transit, similar to that found in Irvine. Housing in the form of condominiums, courtyard homes, and larger single-family residences also help to attract biomedical job seekers and businesses seeking to locate in areas with high quality housing options. The City’s location near the planned Norwalk/Santa Fe Springs Metrolink Station can help facilitate this approach. According to Mr. Enany, the City already has a few key tools. These consist of the promotion of its centralized location between Los Angeles and Orange counties with affordable land costs. Also of locational importance, is being surrounded by four major freeway connections and the proximity to the Metrolink Orange County Gold Line stop in Santa Fe Springs/Norwalk. Agenda Page 12 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 10 of 27 The City of Downey should pay special attention to local utilities and increasing capacity when necessary. For example, increasing water and wastewater capacity, which is typically a critical need for biomedical uses, may be required for some businesses or organizations. Fiber optic cable installation, such as that done by the City on Paramount Boulevard, has proven to be a very desirable attribute for site selection. It may also be a benefit to explore a potential collaboration with surrounding cities like Santa Fe Springs, Pico Rivera, Norwalk, and Paramount to address some issues better suited to regional responses. University of California, Irvine Medical Center, represented by Paul Da Vega, Senior Project Manager, and John Gilway, Executive of Governmental Relations The University of California, Irvine (UCI) Medical Center is located in the City of Orange, and is consistently ranked as one of the nation’s best hospitals. In addition, the UCI School of Medicine is ranked as one of the nation’s top medical schools for research. The Medical Center is currently the only university-based hospital in Orange County, and currently does not have any formal partnerships with the City of Orange or biomedical companies. Hoag Memorial Hospital Presbyterian is a not-for-profit health care network based in Newport Beach, with two hospitals, 10 urgent care centers and seven health centers located in nine Orange County cities. The Newport Beach hospital is a 414-bed general medical and surgical facility. According to Stephen Jones, Vice Chairman of the Board of Hoag Hospital, a “biomedical overlay” approach was tried in the San Francisco area to attract biomedical uses to Mission Bay, but the approach didn’t work because it couldn’t dislodge “solidified clusters” of biomedical uses located elsewhere in the region. He noted that biomedical companies follow where specialized physicians and medical researchers live and work, physicians follow hospitals, and hospitals tend to follow universities with medical schools and research. This may explain, at least in part, why a portion of Kaiser Permanente’s planned Medical School moved to Pasadena, California. There is a higher concentration of physicians and medical researchers already living in that area. He also noted that hospital expansions and new medical centers are, in his experience, beginning to get “push back” from nearby residents who are concerned about additional traffic, parking impacts, etc. This is why appropriate zoning and development standards are so important to attract biomedical uses. The medical industry is becoming more specialized and diverse. He felt that Downey could succeed in attracting specialized biomedical uses area by building on its strengths. The City should focus on whether there is an “unfilled biomedical services niche” that it can fill. For example, the administrative and mail order pharmaceutical facility run by Kaiser Permanente may be a springboard for complementary uses. Agenda Page 13 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 11 of 27 4.2 City Zoning Survey 4.2.1 Main Findings 1. There are several zoning tools that cities utilize to attract biomedical uses. Such tools are typically designed to meet the needs of the individual jurisdiction based on its biomedical goals, existing development patterns and the community’s preferences on development character. 2. The most typical land use approach to encourage biomedical uses is to create a base zone that allows the use “by right”, that is, without requiring discretionary approvals. However, this approach also may allow competing or non-supportive land uses that could potentially discourage desirable biomedical uses. The most successful cities with biomedical clusters achieve a “synergy” by attracting both primary biomedical uses and supportive uses. It appears that this is best achieved through zoning which specifically encourages appropriate uses, while restricting uses that detract from the purpose of the zone. For example, all-inclusive industrial zones that also allow biomedical uses, generally do not result in successful biomedical clusters. 3. Two planning studies currently underway, the City’s Imperial Highway Corridor Study and the Los Angeles County’s Rancho South Campus Master Plan offer significant opportunities for expanding and intensifying biomedical uses in Downey. Initial estimates for the South Campus Plan alone indicate a possibility to designate about 40 acres across Imperial Highway from the Kaiser Permanente Hospital for eventual redevelopment of County facilities with biomedical uses. 4. A more specific approach that some cities use is a biomedical overlay that adjusts development standards of the base zone to provide additional flexibility for or reduce development costs of biomedical uses. 5. Overlay zones, or other zoning tools that allow biomedical uses in areas where the base zoning would not normally allow them, such as manufacturing, Business Park or commercial zones. The overlays may also provide incentives such as exceptions to building height limits, maximum lot coverage or flexible floor area ratios (FAR) based on numbers of patients or type of use. 6. The most consistent attribute of cities and counties with biomedical zoning is a focus on the uses permitted in the zones and their relationship to supporting institutions. 7. In areas that are nearly built-out, recent focus is on the appropriate relationship between biomedical (or light industrial) uses and existing residential development. 8. Some of the more unique zoning tools are in-zone density transfers and density increases based on the inclusion of certain uses. 4.2.2 Jurisdictions with Biomedical Districts There are a number of local governments and regional planning agencies that have either investigated or acted to adopt zoning measures to promote biomedical and other related uses. This section of the report is accompanied by two tables. The first is Figure 1 and represents a snapshot of the main attributes of cities across the U.S. with zoning that allows, encourages or incentivizes biomedical uses. Agenda Page 14 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 12 of 27 The second, Attachment 1, is a zoning comparison matrix that describes these attributes in greater detail. The matrix represents a range of options for biomedical zoning techniques to provide a complete picture of the “zoning landscape” across the nation. These techniques range from industrial zones that provide the basic standards to allow biomedical uses, to zones that are designed specifically to incentivize biomedical uses. It includes a description of the zones’ standards, development intensity allowed, availability of other incentives and major institutions that anchor the zone, if any. Figure 1 – City Survey Zoning Attributes A few prominent biomedical “zones” in the U.S. are not included in the list; for example, Boston’s Bioscience Corridor. This is because these “zones” are not the result of any direct city land use City/ County Base Zones allow Biomedical Uses Use of Biomedical Overlay Types of Zoning Incentives Provided for Biomedical Uses Aliso Viejo, CA  Nothing additional, but allows “wet” labs. Carlsbad, CA  Nothing additional, but provides process for medical campus development in existing zones. Inglewood, CA  Increased lot coverage and building height. Irvine, CA  Increased FAR and building height; Zone discourages competing uses. Jupiter, Florida   Increased building height. Lyndon, WA  Increased lot coverage and building height. Mangonia Park, FL   None, but provides expedited permit processing. Montgomery Co., MD  Increased FAR and building height. In- zone density transfers. Oakland, CA  Increased FAR. Phoenix, AZ  Zone discourages non-biomedical uses. Poway, CA  Zone discourages non-medical uses. Sacramento, CA  Nothing additional. San Diego (La Jolla), CA  Increased height; zone discourages non-biomedical uses. Proximity to UCSD. San Francisco, CA   Increased FAR and building height. Santa Monica, CA  Nothing additional. Torrance, CA  Nothing additional. Agenda Page 15 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 13 of 27 or zoning action. That is, they do not involve the application of public agency zoning or land use regulation. Rather, they rely heavily on local academic or medical institutions, networks of economic development incentives, or non-profit and private sector construction to create the space most needed by biomedical start-ups. These types of incentives are discussed in greater detail at the end of this section, as cities with successful biomedical zones tend to also provide other non-zoning incentives, as well. The most straightforward incentive is to adopt a base biomedical zone (comparable to Downey’s H-M Zone) specifically to permit biomedical uses by right, plus accessory uses that are compatible with and supportive of the primary biomedical uses. In this method, the zone will include the entire geographic area where those uses are desired, along with the use and development standards specific to the biomedical industry. The zone will identify all permitted, and conditionally permitted uses allowed in the zone. Additionally, uses that are not seen as complementary can be discouraged by prohibiting them. The cities that best demonstrate this type of zoning are the California cities of San Diego, Irvine, Santa Monica; and Phoenix, Arizona, and Montgomery County, Maryland. These jurisdictions created zones that identify the biomedical uses to be encouraged and developed standards that contributed to the jurisdictions’ desired development patterns in ways that met the needs of the biomedical industry. Phoenix’s Biomedical Campus is an example of a successful, multi-faceted biomedical zone. The zone is comprised of zoning standards specific to the biomedical industry, and was augmented by financial incentives that created a comprehensive economic development package. Included in this report is an analogue study by the Concord Group that analyzes the City of Phoenix’s Biomedical Campus, and evaluates the economic and employment impacts of the development on the City. Please refer to Attachment 4 for that study. Some cities set maximum FARs for biomedical uses to 1.0, or lot coverage to 30 percent to preserve smaller-scale compatibility, while other, more densely populated cities allow FARs up to 3.0 or lot coverage of 100 percent. Of the 16 cities with biomedical zoning surveyed, there was no identifiable pattern that emerged that suggested that most biomedical zoning was provided a substantial increase in the development intensity beyond similarly intensive commercial zones. The overwhelming similarity in the biomedical zones’ mechanisms for incentivizing biomedical uses was in streamlined permitting of such uses, and the generally broad nature of those uses. Typically, biomedical zones allow a complete mix of bioscience-related uses, such as those described in the City of San Diego’s Zoning Ordinance which allows manufacturing of biochemical research and diagnostic compounds to be used primarily by universities, laboratories, hospitals, and clinics for scientific research and “developmental testing purposes” and “biological, biomedical, and pharmaceutical products”, and “scientific, engineering, and medical instruments.” Additionally, cities allow compatible uses that have the effect of supporting, possibly even attracting biomedical uses. Typical types of compatible uses would be general office, restaurants and coffee shops, public transportation facilities, and service uses geared to biomedical employees. Agenda Page 16 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 14 of 27 The second method to use zoning to incentivize biomedical uses is to develop general base zones that include standards that facilitate the development of biomedical using a more generalized approach. This approach can be seen in the City of Aliso Viejo, which has a focused industrial zoning geared to high-tech companies and corporate headquarters. However, within the industrial zones, the City fosters the development of uses critical to the biomedical industry, such as wet laboratory space. Finally, there are cities that have adopted zoning overlays that alter certain standards for an area’s base zones. This method would typically identify a base zone that accommodates a broad spectrum of uses, such as commercial and industrial uses, but that on their own either do not allow or do not incentivize the development of biomedical uses. An overlay would then be applied to allow biomedical and other compatible uses. The overlay may also provide special standards for the incentivized uses above what the base zone allows. This would generally amount to an intensification of certain development standards, such as building height or an increase in the Floor Area Ratio. The City of San Francisco is a good example of this type of zoning incentive. That city’s Life Science and Medical Special Use District allows certain encouraged uses, such as Medical Services, Life Science Offices, and Life Science Laboratories are exempt from the City’s FAR and height limitations. Jupiter, Florida’s Biomedical Research Protection Zone is another example, which allows a six foot increase in building height for each floor of the development that will have at least 20% wet lab space. Another type of overlay is San Francisco’s Life Science Special Use District, located to encourage bioscience and biotech uses in proximity to the University of California, San Francisco (UCSF) campus at Mission Bay. The City is the epicenter of one of the most successful bioscience clusters in the nation. Included in this report is an analogue study by the Concord Group that analyzes the City of San Francisco’s Kaiser Permanente San Francisco Medical Center Master Plan 2013-2022, and evaluates the economic and employment impacts of the development on the City. Please refer to Attachment 5 for that study. The City of Inglewood provides a unique example of an overlay. Its version is called the “Biomedical Enterprise Overlay.” This overlay provides both an incentive for biomedical uses by allowing certain uses where they otherwise would not be allowed, while dis-incentivizing perceived competing uses by not allowing residential-only development. As discussed later in the section regarding the biomedical industry research, the City of Inglewood’s overlay speaks to the delicate transition that is needed in more built-out cities between medical and residential uses. This overlay attempts to protect the residents’ quality of life while maintaining competitiveness in attracting biomedical uses. While this is not typical in municipal zoning ordinances, the sentiment is often expressed, as it was in an interview with an administrator from Hoag Memorial Hospital in Newport Beach, who stated that “I do not expect there was any resistance to the hospital or its location when it was built 60 years ago since there was nothing around it. The resistance only comes now because neighbors do not like a hospital next to them….” Agenda Page 17 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 15 of 27 It is difficult to predict the impact that a particular zoning incentive might have on a community when provided to the biomedical industry. In part, this is because no comprehensive study has been undertaken to ascertain these effects. Also, information related to a particular incentive’s effectiveness is contained in someone’s personal experience, essentially a case study by city staff. While this type of evaluation can be very informative, especially from an implementation standpoint, there are problems associated with extrapolating this type of information to apply to another jurisdiction. However, it was identified during our research that cities with successful biomedical clusters typically have within their boundaries, or are associated with, research universities or hospitals. In addition to zoning mechanisms, cities wishing to attract biomedical uses can create an “enterprise” or economic development area that is typically tied to existing universities or large health centers. In conjunction with this, there can be financial incentives or business-support activities. The financial incentives can be anything from direct payments made to businesses that relocate, expand, or remain in the area, as is a signature of the City of Nashville’s economic development portfolio, to waiving certain taxes or fees, as Oceanside, California has done. That city recently provided millions of dollars in tax breaks to incentivize one firm to relocate to the area. U.S. cities where the top biomedical hubs are located focus heavily on providing support services. These include the creation of on-demand laboratory and office space for entrepreneurial biomedical students or start-ups, public transportation facilities and land use plans that create entire micro-environments to attract the talented young professionals the biomedical industry needs to grow. In researching other jurisdictions that advertise biomedical/life-science/biotech “zones,” it is apparent that to successfully create such zones requires a concerted focus on multiple characteristics of a city, if not a region. Many cities and counties, such as New Orleans, Montgomery County, Maryland, Marin County, California, and San Carlos, California, have spent resources, sometimes considerable amounts of money, to institute an incentive scheme only to find that the city was simply not well situated to successfully attract biomedical industries. Other cities, like Inglewood, California and Lyndon, Washington created biomedical base zones or overlays only to see no results. According to city staff, this outcome is a result of the complete absence of existing biomedical industry, research universities and hospitals. What is clear is that biomedical uses are highly sought after by many cities for their perceived economic benefits. By investigating the areas with the most densely populated biomedical clusters, it can be determined, generally, what attributes and characteristics are most often prevalent, thus determining the basic characteristics and incentives that appear most attractive to biomedical companies. Agenda Page 18 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 16 of 27 4.3 Biomedical Industry Research The following information represents the main findings of the biomedical industry research, which is composed of a review of relevant trade journals such as Site Selection Magazine, Urban Land Magazine, Practicing Planner, and Zoning News, a review web-based information, an analysis of the findings of current and applicable research papers, and information gathered from interviews with experts knowledgeable about the biomedical field and relevant economic development techniques. A more descriptive explanation of these findings is provided as Attachment 13. Main Findings 1. In 2015, Battelle Technology Partnership Practice developed the Feasibility Assessment and Master Plan for Advancing the Bioscience Industry Cluster in Los Angeles County for the Los Angeles County Supervisors. The group proposed, and the County Supervisors have since begun approving, initiatives that make up the Los Angeles County Bioscience Master Plan. In a 2011 feasibility study referenced in the Batelle Group’s analysis, one of the potential sites for a BioHub could be Rancho Los Amigos. 2. The competition to attract bioscience/bio-tech firms has increased over the recent decades. This competition has led to an understanding among private firms and public agencies that quality of life plays a major role in the decisions of employees regarding where they are willing to settle for employment in the biomedical industry. High-quality development is a crucial need for the biomedical industry due to the attraction of the younger generations of the workforce by cities that tend to locate in coastal areas and seek vibrant urban environments. 3. The success of large campus-style medical centers depends, in large part, on the local jurisdiction’s ability to provide high-quality development, public infrastructure, access, and services. Additionally, redevelopment of existing facilities is critical to an ever-changing healthcare and biomedical marketplace. 4. Connections between research facilities and the biomedical industry are very important. Biomedical clusters have traditionally been centered on academic research centers. Local governments desiring to foster the creation of new biomedical industry will need to facilitate this collaboration with local and regional institutions. 5. For many communities, concerns are being raised about the interface between medical uses and residential properties. Collaboration with the affected neighborhoods is critical for success. Ideally, cities can encourage biomedical uses on the periphery or in areas where they do not adversely affect residential neighborhoods and where they can grow outward. Or alternatively, encouraging biomedical institutions (e.g., hospitals, major research facilities) to disperse their operational units away from the main campus. Cities Agenda Page 19 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 17 of 27 that are more generally built-out tend to have one option remaining, which is to provide the path for institutions to demolish obsolete buildings and grow vertically. 6. Collaboration between public agencies and the private enterprises that make up the contemporary life science industry will be one of the important keys to success in the years to come, with innovation districts consisting of high-quality housing options, good public transportation, retail opportunities, and office and research and development areas that work together being a key component. Agenda Page 20 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 18 of 27 SECTION 5 – S.W.O.T. EVALUATION Based on the research conducted by the Civic Solutions team, the following evaluation represents the City of Downey’s strengths, weaknesses, opportunities and threats (SWOT) related to attracting biomedical uses. In conjunction with the information contained in this report, research on relevant demographic, economic, and employment data was used to develop the SWOT analysis. A description of the findings of this demographic, economic, and employment data is provided in Attachments 6-12. Strengths: 1. Central location in Greater Los Angeles area. Downey’s central location provides a good opportunity for biomedical uses that require access to multiple nodes in Southern California, from San Diego to Los Angeles. 2. Increasing venture capital spending in Los Angeles area. Los Angeles County has upward trending bio-venture capital investment - $74 Million in 2016. 3. Highly-skilled workforce in Los Angeles County. Success of biomedical firms is highly dependent on availability of specially trained professionals, especially those with graduate and professional degrees. Downey is relatively close to schools with respected graduate programs (USC, UCLA, and UCI). 4. Existing hospital and biomedical -related industry in the City and County. An upcoming trend in the biomedical industry is the development of a signature complex that emphasizes an interconnected network of partnerships with biomedical firms. LA County currently has plans to expand its biomedical cluster, which would give Downey opportunities for partnership with its existing medical facilities. Ranchos Los Amigos Rehabilitation Center is highly regarded in physical therapy and prosthetics, which could lead to future development of research space. 5. High tech infrastructure and utilities in place. Downey has made some strategic investments to maintain quality infrastructure important to the biomedical industry, such as high speed internet. 6. Three top research institutions (UCLA, USC, and UC Irvine) located in the region. The presence of top research institutions are a positive sign for the Greater Los Angeles area, and will help foster investments in the region that Downey can take advantage of. The County of Los Angeles is actively pursuing development of bioscience clusters around the County, with Downey’s Rancho Los Amigos identified as one of a handful of sites critical to the Los Angeles County Biosciences Master Plan. Agenda Page 21 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 19 of 27 Weaknesses: 1. Lack of research universities/ facilities in close proximity. Relationships with high NIH-funded research institutions provide a key source of equity for biomedical firms. Downey lacks a major research institution within its boundaries but has the potential to partner with top NIH institutions, such as UCLA, USC and UCI. 2. Lack of vacant land for new development. Most biomedical development will be remodeling or new construction in previously developed sites in Downey, since there are no existing biomedical buildings. Downey is mostly built-out, which will generally require that existing buildings be demolished before new construction can begin, a cost that development in other cities on the periphery may not include. 3. Lack of commercial/industrial buildings to convert to “wet laboratory” use. Retrofitting lab space can be a high-up front cost and a big barrier for young biomedical companies, but can be alleviated through construction of new buildings that are readily equipped and meet strict requirements. 4. Lack of availability of venture capital funding, compared to other western U.S. metropolitan centers. Significant amounts of venture capital are required to support biomedical clusters in metropolitan areas. The amount invested in Los Angeles County is still significantly lower than other major U.S metropolitan areas such as San Francisco and San Diego. 5. Lower educated/trained workforce. Average graduate education level of Los Angeles County (7% graduate degrees) is in line with San Diego (8% graduate degrees) and Orange counties (8% graduate degrees). Downey (4% graduate degrees) may need to attract additional qualified technical, research and medical job seekers from neighboring counties and cities if is to successfully expand its biomedical sector. This would, in turn, require that the City promote and to the maximum degree possible, expand its services, housing and quality of life factors that will attract highly educated and talented biomedical job seekers. 6. Few existing relationships with top research institutions. Alliances among major medical schools, existing companies, local government, and private ventures are needed to provide capital support and expedited entitlements for biomedical firms. Downey could face potential competition with existing alliances in nearby cities. 7. Distance to the region’s established biotech nodes and existing traffic congestion. Downey’s distance to major biomedical clusters in Southern California and traffic congestion limit the ability for synergistic, locational relationships with traditional biomedical companies and research institutions. Agenda Page 22 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 20 of 27 Opportunities: 1. Existing niche market for rehabilitative biomedical uses. The City of Downey has a world-renowned facility, Rancho Los Amigos that provides unique services that have the potential to contribute to the presence of a signature complex for the City. 2. The absence of strategic investment in new, critical facilities and technologies in other competitive markets. While biomedical uses are highly sought after across the nation, in the Los Angeles area there is a lack of an established biomedical hub, with development somewhat sporadic and not well unified. To a degree, this increases Downey’s changes of becoming a hub. 3. The County of Los Angeles actively working to establish BioHubs around the County. Evaluations of potential BioHub sites include the Rancho Los Amigos facility. 4. Lack of “wet lab” space in Los Angeles County. Wet laboratory space is a critical need for a successful biomedical cluster. This type of development is typically more expensive to construct, and difficult to convert existing building. There are not many cities that specifically identify wet laboratories as a permitted use, making it unclear whether a city would permit it. Threats: 1. Competition from other jurisdictions with established biomedical cluster, such as Irvine and Los Angeles. Alliances with existing companies, local government, and private ventures can provide capital support and expedited entitlements for biomedical firms. Downey could face potential competition with existing alliances in nearby cities. 2. Unknown saturation point of the market, within the state and nation. For decades the biomedical industry has been growing rapidly. There is very little research to indicate at what point the market demand will be met, or how close that point in time may be. 3. Decentralization of the Los Angeles area hubs and more movement to areas with available greenfield development potential. The trend in the Greater Los Angeles area tends to be construction of new facilities along the periphery in areas with available land to develop. Agenda Page 23 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 21 of 27 SECTION 6 – LIST OF ATTACHMENTS 1. Zoning Comparables Matrix 2. Concord Group Memorandum of Findings 3. Preliminary Biomedical Feasibility Assessment 4. Analogue Study – Phoenix Biomedical Campus 5. Analogue Study – Kaiser Permanente San Francisco Medical Center 6. Demographics 7. Employment – By Industry, Southern California 8. Annual Employment, Downey, CA 9. Employment Commute – Southern California 10. Employment Commute – Downey, CA 11. Employment –Industry Maps-Downey, CA 12. Employment – Location Quotient, U.S. 13. Biomedical Industry Research Full Report SECTION 7 – REFERENCES CITED Anderson, W., et al., Destination Medical Center: Strengthening Minnesota’s Economy, retrieved from the American Planning Association Website: http://media2.planning.org/media/npc2016/presentation/s532.pdf BayBio, California Health Institute, and Price Waterhouse. (2011). California Biomedical Industry Report. San Francisco, CA. Biotech companies in San Diego & Southern California. (November, 2016). BioPharmGuy.com. retrieved from: http://biopharmguy.com/links/company-by-location-southern-california.php Biotechnology Industry Organization. (2015). Bioscience Economic Development in the States: Legislation and Job Creation Best Practices. Washington, D.C. 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Global Life Sciences Cluster Report. Retrieved from JLL website: https://www.jll.com/Research/2014-global-life-sciences-report- JLL.pdf?654be919-aef1-45a0-bef3-ab01d0a4ece6. Humphry, Roger. Agenda Page 28 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 26 of 27 Kaufmann-Brisby, Kimberly, Associate Planner, City of Sacramento, CA. Personal Communication. (October 8, 2016). Keck School of Medicine at USC Website. (October, 2016). Retrieved from: http://www.keckmedicine.org/ Ladner, C. et al., Rx for a Medical District, retrieved from the American Planning Association Website: https://www.planning.org/events/activity/9108823/ Legan, Debra, Vice President, PIH Health. Personal Communication. (November, 2016). Marks, Sandy, MSN, MS (HCA), RN, Instructional Dean of Health Occupations Division, Cerritos College. Personal Communication. (November 7, 2016). Mattson-Teig, B. December 15, 2015. Making the Case for More Innovation Districts. Urban Land Magazine. Megerdichian, Domenica K. MPA, MURP, Management Associate, Office of the City Manager, City of Torrance, CA. Personal Communication. (November 14, 2016) Nyren, R. September 20, 2011. Partnerships in the Life Sciences. Urban Land Magazine. Orozco, Jorge, CEO for Rancho Los Amigos Rehabilitation center. Personal Communication. (November, 2016). Palm Beach, County, Florida Business Development Board Website. (November, 2016). Retrieved from: http://www.lifehelix.org/ Planning Information Center, City. County of San Francisco, CA. Personal Communication. (October 4, 2016). Pecheco, Marianna, Director of Academic Programs at Downey Adult School. Personal Communication. (November, 2016). Phillips, Matt, Director, Sacramento Area Technology Alliance MedStart Program. Personal Communication. (October 14, 2016). Phoenix Biomedical Campus Website. (October, 2016). Retrieved from: https://biomedicalphoenix.com/ Quinn Allyson B., Boston Redevelopment Authority. Personal Communication. (October 4, 2016). Agenda Page 29 CIVIC SOLUTIONS, INC. Biomedical Overlay Research, City of Downey Page 27 of 27 Rancho Los Amigos Rehabilitation Center Website. (October, 2016). Retrieved from: http://www.ranchofoundation.org/ San Francisco Biosciences Task Force Report to the San Francisco Board of Supervisors and Planning Commission, February 15, 2005. Retrieved from San Francisco GSA website: http://sfgov.org/ccsfgsa/biosciences-task-force Selander, Nell, Economic Development Coordinator, City of San Carlos, CA. Personal Communication. (October 4, 2016). Southern California Biomedical Council Website. (October, 2016). Retrieved from: http://SoCalBio.org/wordpress/ Sullivan, Deborah, Planner II with the Metro Planning Department, City of Nashville, TN. Personal Communication. (October 3, 2016). University of California, Irvine School of Medicine Website. (October, 2016). Retrieved from: http://www.som.uci.edu/about.asp University of California, Irvine Medical Center Website. (October, 2016). Retrieved from: http://www.ucirvinehealth.org/about/ Watt, B. April 29 2015. LA County Supervisors approve early steps toward Biotech Park at Harbor UCLA. KPCC's Business & Economy. *** Agenda Page 30 CITY OF DOWNEY PHASE 3: FINAL REPORT November 8, 2017 Introduction The City of Downey, California retained Civic Solutions, Inc. (CSI) to establish new “Bio-Medical Overlay Zone” regulations and development standards to work in concert with an updated Hospital-Medical Arts (H-M) Zone. Phases 1 and 2 of this multi-phase project consisted of initial coordination and primary research. These phases have been completed and findings summarized in the Phase 2 Report entitled April 2017 Bio-Medical Research Summary Report. In Phase 3, CSI evaluated the City’s land use and development regulations and General Plan polices based on studies of cities that have established bio-medical overlay zones, and on the results of interviews with administrators from major bio-medical facilities, universities, and trade organizations. Guided by this analysis, CSI has prepared a Bio-Medical Planning Assessment for the City. The Assessment is specifically tailored to help meet Downey’s bio-medical goals and is intended to serve as a “roadmap” for preparing detailed zoning map and ordinance amendments in Phase 4. SECTION 1 – EXECUTIVE SUMMARY The primary findings from the four main sections of the report are:  Evaluation of the City's zoning requirements and development regulations. CSI analyzed the City’s existing zoning districts, permitted uses and development standards with an emphasis on analyzing bio-medical uses. Patterns and anomalies that could affect the feasibility of expanding or attracting bio-medical uses to the City were identified. CSI paid special attention to existing zoning regulations for potential changes that could make Downey even more "bio-medical business-friendly" and attractive to bio-medical and supportive uses, and attractive to well-qualified employees. Major findings include: 1. The City’s Zoning Ordinance provides a good framework to integrate a new overlay zone and other zoning amendments to incentivize bio-medical uses. 2. New and amended definitions are needed to clearly describe the range and types of bio-medical uses and health services as they operate today. 3. In general, the City’s development standards allow for the scale of development that is typically associated with bio-medical uses in many small to medium-sized cities with successful bio-medical sectors. However, additional flexibility in key Agenda Page 31 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 2 of 18 development standards is needed to attract bio-medical uses, such as in floor area ratios (FARs), building heights, and setbacks. 4. The permitted and conditionally-permitted uses allowed in certain commercial and manufacturing zones should be revised to encourage bio-medical uses and related supporting uses, and to discourage incompatible, obsolete or inappropriate uses in service-commercial and manufacturing areas. For example, “Printing Shops, “Taxicab Stands,” and “Motels and Hotels” may no longer make sense in the Commercial-Manufacturing zone, or “Auto Wrecking Yards,” “Lumber Mills” and “Junk Yards” in the M-2 Manufacturing zones.  General Plan Consistency. Anticipated zoning changes to permit and incentivize bio- medical uses are not expected to create inconsistencies with existing General Plan policies. Nevertheless, we recommend that the General Plan’s policies be amended to provide the legal and procedural foundation for the City’s bio-medical land use and economic development objectives. Recommended revisions are summarized below and described more fully in Section 3. 1. The General Plan Land Use Element’s Balance of Uses, Livable Communities, and Growth Management Section policies should be amended to provide policy direction to incentivize and address the future impacts of new bio-medical uses. 2. The General Plan Economic Development Element’s Business Attraction and Retention, and Employment sections’ policies should be amended to qualitatively address the economic costs and benefits of incentivizing bio-medical uses and their potential impacts, particularly on adjacent residential neighborhoods. 3. The General Plan Land Use Plan should be amended to re-designate the area currently zoned “H-M” and designated “Office” in the General Plan to “General Commercial” to provide more uniformity and flexibility of uses.  Evaluation of the Hospital-Medical Arts Zone. The Hospital-Medical Arts (H-M) Zone accommodates and helps preserve a limited range of medical uses in two land areas totaling about 46 acres. The narrow range of permitted and conditionally permitted uses in the H-M Zone has the effect of discouraging the establishment of more diverse commercial uses in these areas. While H-M zoning appears to continue to serve its purpose (to protect medical services and related uses), it is too restrictive to achieve the City’s broader bio-medical objectives of today. To overcome the H-M Zone’s limitations and address the City’s desire to maintain and attract new bio-medical uses, CSI recommends that: 1. A Bio-Medical Overlay Zone be applied to commercial, manufacturing, and other zones to accommodate primary and accessory bio-medical uses. 2. A Bio-Medical Overlay Zone serve as the primary zoning tool to create the land use “synergy” that will attract the investment capital and labor force needed for a vibrant bio-medical sector. 3. The H-M Zone should be maintained but amended to allow a wider range of bio- medical uses and more flexible standards that will be compatible with the Bio- Medical Overlay Zone. Agenda Page 32 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 3 of 18 Bio-medical Planning Assessment. The Bio-Medical Planning Assessment summarizes the recommended strategies to enhance the City's ability to retain, expand and attract bio- medical uses, and related accessory and supportive uses. The intent is to make the City more attractive overall to bio-medical uses and employees. Key recommendations are to: 1. Consider providing financial and industry-supportive incentives to increase the local concentration of bio-medical employment and business opportunities. 2. Define bio-medical sector business priorities and tailor fiscal, land use/zoning, and outreach/marketing strategies to reach targeted businesses, institutions, and investors. SECTION 2 – ZONING AND DEVELOPMENT REGULATIONS EVALUATION As identified in the Phase 2 Report, cities can choose from several zoning tools to attract bio- medical uses. Such tools can be designed to meet the needs of the individual jurisdiction, based on its goals, existing development patterns, and the community’s preferences on new development. Before the City considers adopting such tools, it is imperative to analyze current zoning standards. A key first step is to identify the most efficient method to integrate new regulations to achieve bio-medical goals, avoid unintended consequences, and maintain General Plan consistency. Following is an examination of the pertinent aspects of the City’s Zoning Ordinance and Zoning Map. Our analysis of the Zoning Ordinance and development regulations revealed a number or sections needing changes and/or additions. Starting with the Zoning Ordinance definitions, there is a need to describe the types and range of bio-medical and health services-related uses as they operate today. For example, there is no definition of “bio-medical use.” Similarly, other key medical and healthcare uses are undefined, such as those that describe clinical services like outpatient treatment, which differ from “medical offices” and “hospitals.” Establishing a more robust definition section that clearly differentiates medical, research and development, and bio-medical uses will clarify the application of zoning standards to bio-medical uses and will prove to be critical in achieving the City’s goals. Additionally, a more comprehensive description of uses will help identify those less desirable medical-related uses (in terms of their ability to attract well-paid bio-medical jobs), such as group-counseling centers and manufacturing of low-technology medical devices. These uses, although related to medical services, can displace and discourage the types of businesses with higher-paying bio-medical jobs. For example, other cities’ experiences suggest that uses that solely provide clinical services directly to patients, as opposed to bio-medical research and development or high-tech bio-medical manufacturing, produce fewer high paid jobs and secondary sales. The commercial and manufacturing zone development standards provide a solid foundation for promoting redevelopment to accommodate new bio-medical uses. The City’s existing zoning development standards (i.e. setbacks, building height limits, etc.) are generally consistent with what is typically required in many comparable jurisdictions with bio-medical sectors, and in some cases, are more flexible or permissive. For example, Downey provides height limits for commercial zones that are comparable to, or that allow several stories taller than, other Southern- California commercial zones in Carlsbad, Santa Monica, and Aliso Viejo that encourage bio- medical uses. Based on CSI’s case studies of cities with successful bio-medical zones, Downey’s Agenda Page 33 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 4 of 18 development standards generally do not require major changes and are unlikely to restrict bio- medical development. Limited, strategic Zoning Ordinance amendments may be desirable, however, to incentivize redevelopment, particularly for bio-medical uses that have potential to create high-paying jobs. This need is underscored by the City’s limited amount of vacant or underdeveloped land suitable for such uses. CSI does not believe wide-ranging increases in development standards to incentivize bio-medical development are needed at this time. Such changes may be appropriate in the future, as part of a broader economic development program that the City may consider following an initial start-up period for its new bio-medical policies and programs. Incentives to facilitate redevelopment for bio-medical uses should be considered on a case-by-case basis and tailored specifically for new bio-medical development projects and their specific settings. For example, a tailored approach would be to create a bio-medical overlay zone that expands the base zone’s permitted uses and provides additional development predictability or reduces development costs for bio-medical uses. Furthermore, since Downey is nearly built-out, the City should continue to protect residential areas near existing and planned bio-medical growth areas. To a certain degree, this has already occurred as evidenced by the reduced heights and increased building setbacks required for development adjacent to residential uses. To further maintain the desired character of these residential/bio-medical transitional areas, proposed amendments must be designed to incentivize desirable land uses and avoid unintended impacts to adjacent residential or commercial uses. Based on our evaluation of allowed uses in the commercial and manufacturing zones, we anticipate that zoning amendments will be required to: 1) broaden the range of permitted and conditionally permitted uses; and 2) improve the attraction of bio-medical and related uses generally by allowing uses that support or are accessory to bio-medical uses. For example, the H-M Zone does not allow many supporting uses allowed in other successful bio-medical zones, such as financial services, bakeries, and bars/taverns. Surprisingly, some uses that are closely aligned with bio-medical, such as medical outpatient services, are not addressed; others that are allowed may no longer be relevant to the City’s needs or bio-medical goals and may be deleted, such as “Printing Shops” and “Taxicab Stands.” While not exclusively bio-medical in nature, accessory uses have proven essential to attract and retain desirable bio-medical uses in other cities. There is a lack of research universities/ facilities near the City, and opportunities to attract satellite university campuses, research facilities or vocational schools should also be included in any proposed zoning amendments. The Zoning Ordinance does not promote the types of uses that could help establish and support National Institutes of Health (NIH)-funded research institutions, which provide a key source of equity for bio-medical firms. Any opportunities for Downey to facilitate the locating of a major research institution, or satellite campus, within its boundaries should be encouraged. In reviewing the City’s Zoning Map, one obvious feature that emerges is the location of medical- oriented use areas and related Zoning Ordinance use standards. When reviewing the H-M Zone (reviewed in greater depth elsewhere in this report), the land area zoned for such uses is quite limited, in terms of both visibility and acreage. The areas zoned as H-M are not large enough to attract new bio-medical uses and are more likely to simply maintain the medical-related uses that currently exist. Agenda Page 34 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 5 of 18 While a bio-medical overlay zone can be an effective tool, it is also recommended that the base commercial, manufacturing and mixed-use zones be amended to accommodate bio-medical and accessory uses, where appropriate. Moreover, an area which is appropriately zoned and large enough to provide ample opportunity for new bio-medical uses to relocate to Downey is an absolute necessity. As discussed in the City’s Imperial Highway Corridor Economic Development Strategic Plan, some of that expansion area may be provided in four subareas along Imperial Highway within the City. One of the most promising areas is the Rancho Los Amigos subarea, including the master planned, 70-acre “South Campus.” Anticipated relocations of L.A. County offices to the South Campus are expected to free up about 14 acres from the vacated parcels along Imperial Highway for redevelopment within 5-10 years, plus additional acreage for bio- medical uses in the redeveloped South Campus area. It is necessary to look at all commercial and manufacturing zones, in addition to the H-M Zone, to increase the opportunities for “bio-medical synergy” to occur with a Bio-Medical Overlay Zone and to accommodate compatible bio-medical uses. In this approach, a base zones’ allowed uses or development standards could then be modified by the application of the Bio-Medical Overlay Zone. Specific zoning incentives would then apply to allow greater flexibility for bio-medical uses. Additionally, a bio-medical overlay can place restrictions on non-complementary uses by restricting their location, size, and/or operational characteristics. In terms of ease of use, careful consideration must be paid to how a bio-medical overlay is created in the Zoning Ordinance so that it generally maintains the established organization and overall intent of that document. However, certain aspects of an overlay’s attributes should be prescribed in the commercial- and manufacturing-zone use tables to ensure an understanding of how an overlay and the base zones are applied and work together. It will be necessary to provide additional “Intent and Purpose” sections within the commercial, manufacturing, and overlay zone sections. Updating these descriptions will establish context for the incentivized bio-medical zoning standards and explain how to apply the overlay zone to the base zones. The overlay zone section should also include several non-zoning incentives, such as expedited planning or permit processing and possible fee reductions. These incentives can be tied to discretionary planning approvals to achieve their intent. Such incentives have proven effective in other jurisdictions to help reduce development costs and land use barriers to bio- medical uses. SECTION 3 – GENERAL PLAN CONSISTENCY EVALUATION As the City considers changes to the Hospital-Medical Arts (H-M) Zone and creation of a Bio- medical Overlay Zone, it is important to note that State law requires that zoning and general plans to maintain consistency with one another. To address this issue, CSI reviewed the City’s General Plan to determine whether the anticipated zoning ordinance amendments could be accomplished within the framework of the existing general plan. Overall, we found the 2005 General Plan text to be very general in nature, with few references to bio-medical-related uses or topics. Neither the H-M Zone nor a possible Bio-Medical Overlay Zone pose any direct inconsistencies with the General Plan’s text, goals, policies and programs. Given the importance of bio-medical uses to the City, CSI recommends that the City add additional policy language to support the City’s bio- medical land use and economic development objectives. Preparing specific general plan amendments is outside of this project’s defined scope; however, CSI recommends the following types of amendments as part of a General Plan update or amendment: Agenda Page 35 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 6 of 18 Land Use Element 1. Balance of Uses Section  Establish bio-medical development goals and objectives in areas such as land uses, square feet of developed bio-medical uses, and bio-medical employment growth, and development of supportive bio-medical uses such as education facilities or high quality commercial services.  Describe how the overall mix of land uses is likely to change as bio-medical sector expands (i.e., relocation of Government offices along Imperial Highway, continuing relocation of auto-related retail sales, expansion of lab and R&D type development along major transportation corridors).  The H-M Zoned areas are designated by the General Plan Office Commercial and General Commercial. The General Plan narrative contains language addressing bio-medical uses under Office Commercial but is silent regarding these uses under General Commercial. Consider adding language regarding bio-medical uses under the General Commercial heading.  Consider adding a paragraph on bio-medical uses and refer to the locations, purposes and character of the H-M Zone and the Bio-medical Overlay Zone.  Add a policy and/or program to maintain and expand bio-medical uses. 2. Livable Communities Section  Consider adding a narrative about the existing major medical centers in the City and the City’s desire to maintain and expand bio-medical uses.  Add a policy and/or program to promote bio-medical uses.  Add a policy and/or program addressing strategies to maintain compatibility between residential and bio-medical uses. 3. Growth Projections  Update City Growth Projections for residential and non-residential growth to reflect bio-medical growth objectives. Economic Development Element 1. Business Attraction and Retention Section  Add Strengths, Weaknesses, Opportunities and Threats related to bio-medical uses (refer to the Phase 2 Report).  Add a policy and/or program to attract and retain bio-medical uses.  Add a policy and/or program to provide incentives (e.g., financial, land use processing, flexible development standards, leadership). 2. Employment Section  Add discussion of the value of bio-medical employment.  Add a policy and/or program to promote bio-medical jobs. General Plan Land Use Map and the Zoning Map As stated above, one of the City’s two H-M zoned areas (Downtown/Brookshire) is designated Office in the General Plan Land Use Map while the other (South Lakewood) is designated General Commercial. The City should consider whether both areas should be designated General Commercial to provide more consistency in allowed uses. Agenda Page 36 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 7 of 18 SECTION 4 – HOSPITAL-MEDICAL ARTS ZONE EVALUATION Overview and Purpose of H-M Zone The Hospital-Medical Arts Zone (H-M) is something of an anomaly among the City’s zone districts. It covers about 46 acres, one of the City’s smallest zones in terms of land area. It is also noteworthy for having one of the most limited list of permitted uses of City’s zones. According to the Zoning Code, the purpose of the H-M Zone is “to provide for and encourage the orderly development of a wide variety of bio-medical uses that facilitates the growth of businesses during all stages of the business cycle. It also allows professional offices, personal and professional services, and retail uses that are compatible with and supportive of uses permitted within the zone and with uses in adjacent zones.” The history of the H-M Zone is not well documented. From discussions with City staff, it appears the H-M Zone was established to specifically accommodate the former Downey Regional Medical Center (now known as PIH Downey) and a narrow range of related medical uses and assisted living facilities. The H-M Zone does not allow the much wider range of uses allowed in the General Commercial (C-2) Zone or Downtown Area. Setting and H-M Zone Locations There are two clusters of H-M zoning, generally located in the central and southern commercial areas of the City. H-M Cluster #1, Downtown/Brookshire Avenue area, shown in Figure 1. It covers an area of approximately 37 acres, and is close to Downtown, Downey High and the Civic Center. The cluster also includes medical offices, parking lots, and houses. Principle uses and businesses in this cluster are: PIH Downey, Emergency Hospital, and Pharmacy Brookshire Medical Building Downey Community Health Center Brookshire Manor (Senior Residential Community) Family Support Center Figure 1 Agenda Page 37 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 8 of 18 The second cluster, H-M Cluster #2 – South Lakewood Boulevard at Stewart and Gray Road, is in the south-central portion of the City, near the Downey Landing Commercial Center. The cluster covers approximately 9 acres, and is shown in Figure 2. Principle uses and businesses in this cluster are: Alzheimer Care Facility Lakewood Park Manor (Assisted Living Facility) Lakewood Park Healthy Center Figure 2 Zoning Standards and Comparison with other Zones Of the City’s six commercial zones Professional Office (C-P), Neighborhood Commercial (C-1), General Commercial (C-2), Central Business District (C-3), Commercial Manufacturing (C-M), and Hospital-Medical Arts (H-M), the H-M Zone stands out as the most limited, both in terms of permitted or conditionally permitted uses and in its narrowly focused purpose. Under H-M zoning, the following are permitted uses: Restaurants, cafes, coffee establishments Temporary Sales (Christmas trees and pumpkins) Laundries (limited) Medical and orthopedic sales Medical Services (includes psychiatric and short term medical care and alcohol treatment centers) Personal services Pharmacies Medical schools Emergency shelters (up to 30 occupants) Hospitals (not including convalescent hospitals and nursing homes) Convalescent hospitals/nursing homes/assisted living facilities (subject to standards listed in Section 9422) Senior citizen housing development Agenda Page 38 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 9 of 18  Single resident occupancy (“SRO” housing) Conditionally permitted uses are: Restaurants, cafes, coffee establishments with alcohol sales Hospitals/veterinary Day care center, adult or child Laboratories Kiosks, permanent or temporary Laundries (unlimited) Utility distribution stations Ambulance service Colleges, public or private Private schools Small wind energy systems Wireless communication facilities Attachment 1 compares permitted and conditionally permitted uses for the City’s commercial zones. Attachment 2 is a list of the City’s established zone districts, for reference. What is perhaps most significant about the H-M zone is not what uses are allowed, but rather, what uses are not allowed. Several uses that are accessory to and supportive of hospitals and medical services are not permitted or conditionally permitted in the H-M Zone. These include: Offices (business or professional) Bars/Taverns/Pubs Hotels and motels Public parking, surface lots and structures Passenger stations, bus and rail Schools -- business, professional, trade, technical or vocational Retail sales (drug stores, pharmacies, and florist shops) Public buildings and facilities (libraries, governmental buildings, police and fire stations) Existing Land Uses and Consistency with Zone’s Purpose With a few, minor exceptions, the existing H-M Zone uses and businesses are consistent with the Zoning Code’s Allowed Uses. The dominant use in H-M Cluster #1 is the PIH Downey Hospital and related facilities, including Emergency Hospital, Pharmacy and related medical services, located at 11500 Brookshire Avenue. Other uses/businesses are: Brookshire Medical Offices Building, 15411 Brookshire Avenue Brookshire Manor 55+ Senior Condominiums, 11410 Brookshire Avenue Downey Community Health Center, 8425 Iowa Street (198-bed skilled nursing facility) Office building, 8425 Iowa Street Dwellings (house and duplex), 8306 and 8312 Iowa Street Surface and structural parking lots The exceptions, while probably not permitted under current zoning standards, are compatible with the primary hospital and medical services uses. Brookshire Manor Condominiums, which were built in 1991, are mostly 2-bed/2-bath floor plans of about 800-900 square feet. Townhouses and condominiums are conditionally permitted in the H-M Zone as part of a mixed-use project, however Brookshire Manor doesn’t appear to be part of a mixed-use development. Additionally, Agenda Page 39 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 10 of 18 the Brookshire Medical Building provides offices for professional medical services, even though the H-M Zone doesn’t specifically permit “professional offices” outside of a medical center. The two older residences may have predated current zoning and are compatible with adjacent office uses. H-M Cluster #2, located across from Downey Landing commercial center, consists of assisted living facilities for persons with Alzheimer’s and related conditions and senior residential apartments offering continuum of care services. Specific uses are:  Lakewood Gardens assisted care facility, 12055 South Lakewood Boulevard  Lakewood Park Manor assisted living facility, 12045 South Lakewood Boulevard  Lakewood Healthcare Center, a 290-bed nursing home, 12023 South Lakewood Boulevard H-M Zone Application and Usefulness Clearly, the H-M Zone has served a purpose by permitting a large hospital and related medical services and facilities to continue, and to minimize potentially competing or incompatible retail- commercial or industrial uses from encroaching into areas dedicated primarily for medical uses. In this context, the H-M Zone appears to have been effective. However, two other major hospitals, Kaiser Permanente Downey Medical Center and Rancho Los Amigos National Rehabilitation Center, are not located in the H-M Zone. Kaiser Permanente is located in the Downey Landing Specific Plan Area (SP01-1), and Rancho Los Amigos is located in a single-family residential zone (R-1). Conversely, the H-M Zone’s narrow range of permitted uses may limit its usefulness and transferability to other areas where a more diverse, vibrant mix of uses is desired, or where a broader range of uses already exists. H-M Cluster #1’s location adjacent to Downtown would support a wider range of uses, in keeping with the mixed-use, pedestrian-oriented character of Downtown. Retaining the H-M Zone designation without amending it would indicate the City wants to maintain the existing or similar mix of uses in these two limited areas. Non-Conforming Bio-Medical Uses Land uses that were legally established (that is, that conformed to then existing general plan and zoning standards) but that no longer conform to current general plan or zoning standards are termed “legal, non-conforming uses.” Non-conforming uses are typically subject to various zoning constraints, such as amortization requirements or limitations on expansion or intensification of the use. This status can discourage investment or reinvestment in the property or result in relocation of the use. Rancho Los Amigos National Rehabilitation Center is technically, a non-conforming use due to its underlying R-1 zoning. Given RLA’s pre-eminent national and regional importance in medical rehabilitation and on its local importance to Downey’s economy and bio-medical growth potential, the City should ensure this other legal, non-conforming bio-medical uses are made “conforming”, as appropriate. For Rancho Los Amigos, the City should consider rezoning the property from R-1 to H-M and applying the Bio-Medical Overlay Zone. Agenda Page 40 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 11 of 18 Future of H-M Zone One of the key components in the City’s work scope was to evaluate the role, design, location and effectiveness of the Hospital-Medical Arts Zone and to determine whether it should be modified, expanded, or eliminated, and if so, how. Based on this consultant’s review of existing conditions, City objectives, and effective zoning strategies used in other U.S. and California cities, we recommend the following: 1. Keep or Modify? The H-M Zone should be retained in its current locations, but modified to expand the range of permitted and conditionally permitted uses. Specific recommended changes will be addressed in the Phase 4 Report. 2. Expand H-M Zone or Apply Bio-Medical Overlay? H-M zoning is not sufficient to attract the range of bio-medical uses necessary to achieve the economic synergy the City seeks. As described in the Phase 2 Research Report, cities that have effectively attracted bio-medical uses have done so by focusing land use and financial incentives on a range of desired bio- medical uses, and on a range of accessory and supportive uses to attract the investment capital and highly skilled workers necessary for bio-medical growth. Consequently, the City should retain H-M, and as noted above, expand it to include existing bio-medical uses as needed, and amend H-M to allow greater flexibility in attracting supportive or accessory uses. While H-M zoning is effective in protecting a limited range of medical uses, its applicability is too limited to successfully compete with other Southern California communities that are also seeking to attract well-paid bio-medical sector jobs. The City must instead take a broader, more comprehensive approach to land use. By establishing a new Bio-Medical Overlay Zone and applying it to Commercial and Manufacturing base zones throughout the City where due to their location, development potential, infrastructure, existing uses, these base zones are well suited to create new or expanded “microcenters” for major bio-medical employers. These centers should include a vibrant mix of medical, research and development, light manufacturing and the commercial services that support the principal uses. Recommendations to accomplish that objective are the subject of the Phase 4 Report. SECTION 5 – BIO-MEDICAL PLANNING ASSESSMENT In Phase 2 of this study, the April 2017 Bio-Medical Research Summary Report identified zoning strategies used by 16 small to large jurisdictions in the U.S. that have established bio-medical centers, such as Carlsbad, California and Lyndon, Washington. It also discussed the City’s strengths, weaknesses, opportunities and constraints in successfully attracting and retaining bio- medical uses. Phase 3 has focused on three tasks: 1) evaluating the City’s zoning districts, General Plan policies and development regulations, 2) evaluating the role and effectiveness of the Hospital-Medical Arts (H-M) Zone, and 3) conducting an overall assessment of the feasibility of and strategy for expanding the City’s bio-medical sector. The results of that assessment are summarized in Table 1. The City of Downey is already a highly successful hub for health services in southeast Los Angeles County. It continues to attract one of the highest concentration of medical professionals and healthcare facilities in the state and intends to expand that role to encompass bio-medical research, design and manufacturing. Table 1 summarizes the key issues, objectives and strategies the City should actively pursue to achieve this new expanded role. In effect, this Agenda Page 41 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 12 of 18 assessment is a “road map.” It describes where the City is in terms of its ability to attract bio- medical uses, and what it needs to accomplish to be successful in that effort. The next work phase, Phase 4, builds upon Phases 2 and 3 and provides specific zoning and land use recommendations on how to reach its bio-medical goals. Table 1 – Biomedical Planning Assessment ISSUE OBJECTIVE STRATEGY Bio-Medical Employment  Raise number of persons employed in Professional, Scientific, and Technical Services from 3% (in 2014) to 10% of total Downey employment by 2027.  Raise Downey median household income to at least 100% of LA County household median income by 2027 (or at least 6%).  Raise number of persons employed in Health Care and Social Assistance from 23% (in 2014) to 35% of total employment in 2027.  Take leadership, along with local hospitals and Cerritos College, Downey Adult School, USC, UC Irvine, Loma Linda, and other bio-medical universities, to define employment and facility needs and to establish/expand health and bio- medical internship programs.  Consider providing financial incentives (tax incentives, fee reductions, or fast track permit processing to new health or bio-medical businesses), tiered to number of new skilled or professional jobs created.  Sponsor 2018 bio-medical conference, in concert with Chamber and bio-medical trade associations (e.g. SoCalBio), to promote City as bio-medical and health hub; promote increased investment. Type of Bio- medical Uses Attract defined range of bio- medical uses, with the following priorities:  Bio-medical engineering  Bio-medical research and design  Bio-medical testing and manufacturing  Bio-medical education and training  Define bio-medical sector business priorities and tailor fiscal, land use/zoning, and outreach/marketing strategies to reach the target businesses and institutions.  Restrict land uses that could detract from or frustrate City efforts to expand bio-medical uses. Regional Setting and Alliances  Seek expanded partnerships with regional academic, health and government institutions.  Establish aggressive economic development outreach.  Exploit proximity to existing Biotech nodes to attract talent and start-up bio-med businesses.  Schedule meeting with Loma Linda University officials to discuss expansion needs and feasibility.  Aggressively market City to academic institutions and targeted businesses seeking to expand into the Southern California area.  Work cooperatively with LA County to implement the Imperial Highway Corridor Specific Plan.  Establish ad hoc Bio-Medical Advisory Committee to serve as business and policy advisor and represent bio-medical interests at City Council. Access and Transportation  Improve regional access to and from existing and potential bio- medical nodes.  Improve connectivity between rail and bus facilities and services.  Provide improved public transit (e.g. shelters), bicycle facilities  Review sidewalk and bike routes, transit routes and stops; ensure connectivity among existing and potential bio-medical nodes and corridors with the existing Lakewood Boulevard “Green” line Metro Rail Station linking Norwalk and Downey with LAX.  Support the proposed West Santa Ana Branch Corridor Metro line station in Downey linking the Agenda Page 42 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 13 of 18 ISSUE OBJECTIVE STRATEGY and pedestrian amenities on major streets in existing and potential bio-medical areas. City (particularly the “South Campus” specific plan/bio-medical area) with Downtown’s Union Station.  Continue to monitor and strongly advocate completion of I-5 corridor improvements.  Expand multi-modal facilities along major streets, including bicycle facilities and pedestrian-oriented improvements and landscaping. Land Availability  Increase area suitable for new or expanded health services and bio-medical uses to at least 25% of City’s non- residential land area.  Encourage redevelopment of blighted properties and non- conforming commercial or manufacturing properties to bio-medical uses.  Acquire and assemble parcels with bio-medical potential.  Identify sites suitable for “Wet Lab” space.  Adopt Bio-Medical Overlay Zone and apply to appropriate areas where compatible with adjacent uses and served by transit.  Retain Health-Medical Arts Zone; consider enlarging Zone and amending it to allow supportive uses.  Review and as necessary, revise Non- Conforming use provisions of Zoning Ordinance to encourage redevelopment of non-conforming industrial uses and to gradually transition to more complementary manufacturing uses in the C-M Zone.  Consider acquiring land for assembling key “bio-medical opportunity sites” to generate investment interest. Land Use Synergy  Establish diverse, mixed-use nodes near bio-medical nodes, including housing, services, restaurants, taverns and brewpubs.  Increase restaurant, lodging and retail sales tax receipts by 25% by 2027.  Construct at least 500 additional pedestrian- and bicycle- transit-oriented residential development near transit centers by 2027.  Amend Hospital-Medical Arts Zone to allow more diverse, supportive uses.  Support residential density bonuses for high quality apartments and condominiums in H-M, M-U, B-M Overlay, and Transit-Oriented Developments (TOD).  Encourage walkable or bikeable facilities and services close to bio-medical job nodes, including internet cafes, restaurants, pubs and taverns, neighborhood grocery stores and personal and financial services.  Provide express bus connection between Downtown Downey and bio-medical job nodes. Infrastructure  Continue to improve telecommunications and networking infrastructure, including the fiber optics network.  Prepare 2018-2027 candidate CIP projects considering the need and suitability for expanded bio-medical uses, particularly in terms of fiber optic network access. Community Values  Identify growth in health and bio-medical employment as important community value.  Clearly describe how growth in health and bio-medical sectors will improve citizens’ quality of life and help meet community needs.  Achieve community consensus for expanding health and bio- medical sectors in Downey by popular vote or another metric.  Prepare Community Whitepaper describing the goals, benefits, and strategies to expanding health and bio-medical uses in Downey.  Retain economic firm to identify specific costs and funding tools to achieve bio-medical objectives, particularly infrastructure and land acquisition costs.  Hold series of town hall meetings to present ideas and explain potential land use and zoning changes. Emphasize strategies for protecting and enhancing residential neighborhoods. Educational Factors  Raise the number of persons with graduate degrees from 4%  Hold meetings with local school board and community college board to enlist support and Agenda Page 43 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 14 of 18 ISSUE OBJECTIVE STRATEGY of City’s total population to 6% by 2027.  Attract and expand local academic and vocational programs in heath science and bio-medical professions.  Through partnerships, attract NIH funding to City. set recruitment/enrollment/academic goals.  Include academic/research institution representatives on the City’s Bio-Medical Advisory Committee.  Initiate and/or assist health or bio-medical business and institutions in Downey to secure research or teaching funding through NIH or other sources. Economic Factors  Attract significant new bio- medical investment to Downey by 2027.  Retrofit at least 500K sf of existing warehouse, manufacturing or office floor area to accommodate bio- medical uses.  Form a partnership with LA County to establish a signature bio-medical complex in the Imperial Highway Corridor area.  Participate with SoCalBio and other key trade associations to promote Downey as a regional health services and bio-medical hub.  Work with private developers through public/private partnerships and/or economic development incentives to assist with land acquisition, infrastructure improvements and development incentives to attract and promote bio-medical growth and employment.  Facilitate conversion of existing warehouse and manufacturing space to “flex” space that can accommodate bio-medical labs, research and manufacturing.  Create a City Council-sponsored “quick response” program to visit health and bio- medical businesses, identify needs and trends, and to improve communication and government/business cooperation. Zoning and Land Use  Dedicate City goals, policies and programs to prioritize and incentivize retention of health services and growth of new bio-medical sector.  Launch outreach program to identify the bio-medical importance and technological “challenge” based on City’s historic technology role in aerospace.  Coordinate with bio- medical/academic institutions, businesses, trade associations, prospective investors and others to help define City’s needs and strategies for bio- medical growth.  Make existing legal, non- conforming bio-medical uses conforming, where appropriate.  Amend General Plan and Zoning Ordinance to establish a new Bio-Medical Overlay Zone, revise development standards, procedures and definitions.  Amend the Hospital-Medical Arts Zone to allow/encourage supportive uses.  Amend/Update Zoning Map for consistency with General Plan Land Use Map and specify areas of bio-medical nodes and corridors, and identify transit-oriented development areas.  Provide Planning, Building, and Engineering incentives for expedited project review and permitting for qualified bio-medical development projects.  Rezone Rancho Los Amigos from R-1 to H-M and apply Bio-Medical Overlay to the property. Identify other legal, non-conforming bio-medical uses and amend the General Plan and Zoning Map as needed to ensure appropriate, compatible uses can continue as legal, conforming uses. Agenda Page 44 CIVIC SOLUTIONS, INC. Bio-Medical Overlay Zone – Phase 3 Report, City of Downey Page 15 of 18 Conclusion CSI has reviewed the City’s current land use planning documents to investigate the work necessary to establish new “Bio-Medical Overlay Zone” regulations and development standards. Based on this review, CSI provided recommendations grounded in the evaluations’ findings. These recommendations form the starting point for the work of Phase 4, drafting a Bio-Medical Overlay Zone and developing accompanying amendments to the General Plan and Zoning Ordinance. This work will include utilizing new and amended definitions will provide clarity for bio-medical uses and health services permitted in the City, as well as revising key zoning standards in the commercial and manufacturing zones that reflect a primary focus on bio-medical uses. These development regulations and standards will be necessary to work in concert with an updated Hospital-Medical Arts (H-M) Zone that will become more relevant with amendments to General Plan policies related to bio-medical land use and economic development objectives. A new Bio-Medical Overlay Zone is recommended as the primary zoning incentive to make the City more "bio-medical business-friendly" and more attractive to bio-medical and supportive uses. This overlay will be applied to commercial, manufacturing, and other zones to increase the base zones ability to accommodate primary and accessory bio-medical uses. Finally, to the extent possible, CSI will address land use and economic development recommendations from the Bio- Medical Planning Assessment in the recommended Zoning Ordinance amendments. By integrating bio-medical sector business priorities and by integrating land use, physical planning and outreach strategies into the City’s planning, the Bio-Medical Overlay Zone is more likely to garner the attention of target businesses, institutions, and investors. SECTION 6 – LIST OF ATTACHMENTS 1. City of Downey, Zones Established List 2. Downtown Land Use Districts Agenda Page 45 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 3 Report, City of Downey Page 16 of 18 Attachment 1 – Zones Established Agenda Page 46 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 3 Report, City of Downey Page 17 of 18 Attachment 2 – Downtown Land Use Districts and Core Uses Agenda Page 47 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 3 Report, City of Downey Page 18 of 18 Downtown Core Land Uses Agenda Page 48 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 1 of 20 CITY OF DOWNEY Phase 4 Report March 23, 2018 Introduction The City of Downey, California retained Civic Solutions, Inc. (CSI) to establish new “Bio-Medical Overlay Zone” regulations and development standards to work in concert with an updated Hospital-Medical Arts (H-M) Zone. Phases 1, 2, and 3 of this multi-phase project consisted of primary research, an evaluation of the City's current planning documents, and a Bio-medical Planning Assessment. The evaluation of the City’s current planning documents included analysis of the existing zoning requirements and development regulations, including the Hospital-Medical Arts Zone, and an analysis of the City’s current General Plan for consistency with the Zoning Ordinance and Zoning Map as related to potential amendments to incentivize bio-medical uses. These phases have been completed and findings summarized in the Phase 2 and 3 Reports. In Phase 4, CSI prepared draft Zoning Ordinance amendments to create a Bio-Medical Overlay Zone, consisting of necessary Zoning amendments and Zoning Map alterations. This report also discusses General Plan consistency and CEQA compliance with the proposed amendments. SECTION 1 – EXECUTIVE SUMMARY The primary findings from the three main sections of the report are:  Bio-Medical Overlay Zone Amendments. Combining the research on the bio-medical industry and the zoning incentives provided by cities with successful bio-medical hubs, CSI developed amendments to the City’s existing zoning districts, permitted uses and development standards to effectively encourage the establishment of new bio-medical uses, and the maintenance of existing uses. The major changes necessary to develop a successful Bio-Medical Overlay consist of the following:  New and amended Zoning Ordinance definitions to describe the contemporary range and types of bio-medical uses and health services.  A new Bio-medical Overlay Zone section of the Zoning Ordinance.  Revised “Intent and Purpose” of the Commercial and Manufacturing Zones sections of the Zoning Ordinance. Agenda Page 49 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 2 of 20  Updated and amended “Use Regulations” of the Commercial and Manufacturing Zones sections of the Zoning Ordinance.  Amended “Development Standards” of the Commercial Zones section of the Zoning Ordinance.  Amended Zoning Map to include areas designated for the Bio-Medical Overlay Zone.  General Plan Consistency. CSI identified inconsistencies between existing General Plan land use designations and the Zoning Map. As recommended, the Bio-Medical Overlay zoning amendments do not create additional inconsistencies since the Overlay can be applied to all zones, including all Commercial and Manufacturing zones. However, Downey’s General Plan policies should be amended to provide the legal and procedural foundation for the City’s bio-medical land use and economic development objectives. Accordingly, CSI recommends that:  The General Plan Land Use Element’s Balance of Uses, Livable Communities, and Growth Management Section policies be amended to provide policy direction to incentivize and address the future impacts of new bio-medical uses.  The General Plan Economic Development Element’s Business Attraction and Retention, and Employment sections’ policies be amended to qualitatively address the economic costs and benefits of incentivizing bio-medical uses and their potential impacts, particularly on adjacent residential neighborhoods.  The General Plan Land Use Plan be amended to re-designate the area currently zoned “H-M” and designated “Office” in the General Plan to “General Commercial” to provide more uniformity and flexibility of uses.  CEQA Compliance. CSI prepared an Initial Study to evaluate the potential environmental impacts of the proposed zoning amendments to establish a Bio-Medical Overlay. This Initial Study, included herein as Attachment 2, determined that the proposed amendments would have less than significant impacts on the environment and that a Negative Declaration should be prepared in conjunction with the project. SECTION 2 – BIO-MEDICAL OVERLAY ZONE/ZONING AMENDMENTS The Biomedical Overlay uses four simple zoning tools to achieve several important objectives. First, it incentivizes and attracts new biomedical uses in a way that avoids creating legal, nonconforming uses. Second, it discourages less desirable land uses that could impede City efforts to attract and maintain biomedical uses. Third, it maintains consistency between the General Plan and Zoning Ordinance. And fourth, and arguably the most important approach, it creates an overlay zone that is clear, easy to understand, and easy for potential investors and developers, as well as City staff, to use. Agenda Page 50 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 3 of 20 The first objective is to avoid creating nonconforming uses as a result of the new Bio- Medical Overlay. This objective is achieved by maintaining most of the current zoning regulations applicable to commercial and manufacturing zones. While some existing uses may create nuisances for some biomedical facilities (such as vehicle impound and storage yard and truck and trailer repair), the incentives provided in the Overlay are intended to offset the effects of such uses. In contrast, incentivizing redevelopment can have the unintended effect of increasing the land value of the nonconforming uses, thus discouraging the redevelopment of the non-conforming uses. Consequently, the proposed zoning amendments include the elimination of some uses listed as “permitted” or permitted subject to the issuance of a “Conditional Use Permit.” However, most of these uses are obsolete or consist of nuisance-prone heavy manufacturing uses that are incompatible with biomedical uses. An example of one of these uses is “cesspool manufacturing and sales.” The second objective is to incentivize desirable uses and discourage land uses that would impede City efforts to attract and maintain biomedical uses. This objective is accomplished through Zoning Ordinance amendments that: 1) update several important definitions, such as “hospital”, 2) create new definitions, and 3) revise the Zoning Ordinance’s list of permitted uses to discourage less appropriate uses in the Biomedical Overlay, such as “group counseling,” “wet laboratories,” and “specialty hospitals.” The proposed Overlay establishes new, well-defined uses, such as “biomedical uses” and “medical offices” that are permitted by right only in limited base zones (e.g. “Office”, “Retail Commercial” and “Hospital-Medical Arts” zones). Biomedical uses are further incentivized through the application of the Biomedical Overlay to any base zone. This gives the City a new, highly flexible and effective economic development tool. The third objective is to maintain consistency among land use and planning documents. This involves a two-fold approach. First, the Overlay is included only in those documents where the City’s other overlays and similar zoning objectives are discussed. This means that the Biomedical Overlay is not discussed in the General Plan or shown on the General Plan map, because those documents do not address overlays. The implication of this approach is that only very limited changes to the General Plan are necessary. Second, the Biomedical Overlay is integrated into the Zoning Ordinance in a way that maintains the organization of that document. The fourth objective is to create a user-friendly overlay. This is accomplished in two ways. First, most of the actual zoning standards for the Overlay are contained in the commercial- and manufacturing-zone use tables. This is due to the necessary integration of biomedical uses in distinct commercial and manufacturing zones, and the many compatible uses incentivized by applying the Overlay to those zones. Within the Overlay Zone section, an additional “Intent and Purpose” section explains why the Overlay is needed and how it’s applied. Second, the Overlay section includes a number of non-zoning incentives affecting multiple aspects of business development process, located in one place, to help reduce the barriers to developing new biomedical uses. To achieve these objectives, CSI recommends that a Bio-Medical Overlay Zone be established by adopting the following Zoning Ordinance amendments: Agenda Page 51 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 4 of 20 1) New and Updated Zoning Ordinance Definitions Starting with the Zoning Ordinance’s definitions, there is a need to describe the types and range of bio-medical and health services-related uses as they operate today. Establishing a more current and robust definition section that clearly differentiates health services, research and development, and bio-medical uses will help citizens, business owners and developers understand and apply zoning standards and will be critical in achieving the City’s goals. Additionally, more timely, detailed definitions will help identify those less desirable medically- related uses (less desirable in terms of their ability to attract well-paid bio-medical jobs), such as group-counseling centers and manufacturing of low-technology medical devices. These uses, although related to medical services, can displace and discourage the types of businesses with higher-paying bio-medical jobs. For example, other cities’ experiences suggest that uses that solely provide clinical services directly to patients, as opposed to bio-medical research and development or high-tech bio-medical manufacturing, produce fewer higher paying jobs and secondary sales. The following new definition is necessary to describe the bio-medical uses the City desires to incentivize: “Bio-medical Use”: A land use associated with medical or biological research, analysis, testing, medical services (as that term is defined in this section), medical training, and manufacturing of medical products, equipment or related items. Such uses generally consist of the following: (1) Medical device or prosthesis prototype fabrication; (2) Production requiring advanced technology and skills and directly related to medical research and development activities on the premises; (3) Manufacturing of biochemical research and diagnostic compounds to be used primarily by universities, laboratories, hospitals, and clinics for scientific research and developmental testing purposes; (4) Production of experimental medical or biochemical products; (5) Development of biomedical-device related production or operating systems to be installed and operated at another location, including manufacturing of products necessary for such development; (6) Manufacturing of biological, biomedical, and pharmaceutical products; (7) Manufacturing of scientific, engineering, and medical instruments. Bio-medical uses do not include the use, handling, analysis, testing, processing, growing, distribution, research or any other activity involving Marijuana (Cannabis sp.) or any of its derivatives. The following new definitions are necessary to maintain the medically-related uses the City already has and desires to retain: “Clinical Service”: An establishment which provides physical and mental health services on an individual, outpatient basis. The services may be of preventative, diagnostic, treatment, therapeutic, rehabilitative or counseling nature, but do not include group counseling uses. Typical uses would include, but not be limited to, medical and health clinics, Agenda Page 52 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 5 of 20 chiropractic/physical therapy clinics, individual counselling services and emergency/urgent care centers. “Group Counseling”: A counseling or therapy service that is provided to groups of five or more persons at a time. Examples of group-counseling uses include, but are not limited to, nutritional and diet centers; medical, clinical, and other health-related counseling; and career, professional, and life coaching. “Medical Services”: Services provided by a business or facility consisting of the services described within the definitions of “Clinical Service,” “Medical Outpatient Service,” and “Office, Medical,” as those terms are defined in this section, which are ancillary to a primary use consisting of medical or biological research and analysis, or the manufacturing of medical products, equipment or related items. Excludes the use, handling, analysis, testing, processing, growing, distribution, research or any other activity involving Marijuana (Cannabis sp.) or any of its derivatives. “Medical Outpatient Services”: Any business or facility providing medical or health services, more intensive than those typically provided by a Medical Office use, without the need for an overnight stay, such as but not limited to, kidney dialysis, medical lab services, phlebotomists, physical therapy, prosthetics, individual wellness and health maintenance counseling, and urgent care. Medical Outpatient Services does not include Medical Office uses, Wet Laboratories, or Group Counseling services (as those terms are defined in this section). “Research and Development”: The pursuit of knowledge or creation of products in technology-intensive fields. Examples include, but are not limited to, research and development of computer hardware or software, information systems, industrial processes, technical/technological systems, communications systems, transportation, geographic information systems, multi-media and video technology. Laboratories may also be included in this use (see also “Laboratory, Dry” and “Laboratory, Wet” in this section). Development and construction of prototypes may be associated with this use. “Hospital, Specialty”: Any facility, place, or building that is maintained and operated exclusively to provide 24-hour paid in-patient services for the specialized treatment and recovery of chronic health or mental health conditions or elective procedures or treatments. Services provided may include, but are not limited to, food service, nutrition counseling, acupressure, massage fitness and physical therapy, and pharmaceutical and medical attention. This type of facility is distinct from an acute care general hospital and from a convalescent home or assisted living facility wherein the residential use is the primary use and medical services, when available, are limited and incidental to a primarily residential occupancy. For some existing definitions, updated terms and revisions to their meaning are provided. For example, the term “Office, Medical and Dental” is proposed as “Office, Medical,” with an expanded Agenda Page 53 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 6 of 20 definition. The term “Laboratory” has been split into two distinct uses (“Laboratory, Dry,” and “Laboratory, Wet”) with new definitions for each. The term “Hospital” has been updated to reflect a more robust, contemporary definition. The following updated definitions are necessary to support bio-medical uses, and maintain existing uses related to medical and industrial uses: “Hospital”: A State-licensed general acute care hospital, as defined by Health and Safety Code section 1250(a), that provides a wide range of emergency, clinical, and temporary medical services to the general public to which persons may be admitted for overnight stay or longer for the diagnosis, care, or treatment of illness and injury or the prevention thereof, not including convalescent homes, sanitariums, and nursing homes. “Laboratory, Dry”: A laboratory where dry materials, electronics, or large instruments are tested and analyzed, with limited piped services. Dry laboratories may require controlled temperature and humidity as well as dust control. Excludes Marijuana testing or related activities involving Marijuana or any of its derivatives. “Laboratory, Wet”: A laboratory where chemicals, drugs or biological matter is tested and analyzed, and which typically requires water, direct ventilation, specialized piped utilities and protective measures. Excludes Marijuana testing or related activities involving Marijuana or any of its derivatives. “Office, Medical”: A facility where medical services, typically involving evaluations or non- emergency procedures, and their associated managerial, administrative, and clerical functions, are conducted. Medical office includes: chiropodists, chiropractors, dentists, clinical service uses (defined in this section), optometrists, osteopaths, physicians, psychologists, surgeons, and other uses which the decision-making body determines are of a medical nature and similar. Medical office does not include Group Counseling uses or Medical Outpatient Services (as those terms are defined in this section). Excludes the overnight care of a patient. All of the definitions described above are provided in Attachment 1, in tracked changes format to describe the specific alterations to those existing terms proposed to be revised. 2) New Bio-Medical Overlay Section of the Zoning Ordinance As discussed in the Phase 3 Report, the H-M zone is not sufficient to attract the range of bio- medical uses necessary to achieve the economic synergy the City seeks. However, H-M zoning is effective in protecting a limited range of medical uses and should be retained and expanded to include existing bio-medical uses and to allow greater flexibility in attracting supportive or accessory uses. In addition to the H-M zone, CSI recommends that the City utilize a Bio-Medical Overlay Zone (BIO) to take a broader, more flexible approach to bio-medical uses. This overlay should be applied to certain, appropriate Commercial and Manufacturing base zones throughout the City where bio-medical uses are well suited due to their location, development potential, infrastructure, and existing uses. Agenda Page 54 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 7 of 20 As shown in Attachment 1, the proposed Overlay begins with the creation of a new Section 9326 - Biomedical Overlay Zone – of Article IX, Land Use, of the City’s municipal code. This section includes an “Intent and Purpose” statement that clearly defines the Overlay’s objectives. Next, the proposed Section 9326 includes information about the permitted land uses and development standards. However, the majority of the overlay’s zoning regulations are held within the Commercial and Manufacturing Zones’ Use Tables (located in Sections 9314.04 and 9318.04, respectively). The purpose of this, as discussed in greater detail in the following section of this report, is to maintain a user-friendly format to inform developers, potential investors, the public, and City staff of the uses allowed on a particular property within the Bio-Medical Overlay. The Bio-Medical Overlay is proposed to be applied to various Commercial and Manufacturing Zones and guide development of many land uses. Combining relevant development regulations in this manner will make the new regulations easier to find and use, and will help avoid confusion. CSI gave careful consideration to how the Bio-Medical Overlay integrates into the Zoning Ordinance to maintain its established organization and overall intent. With this approach, it becomes clear how the base zones’ allowed uses or development standards are modified by the application of the Bio-Medical Overlay Zone. Specific zoning incentives or restrictions which apply to the base zones are easily obtained when perusing the zoning regulations for the Commercial and Manufacturing base zones. As discussed in the Bio-medical Planning Assessment provided in the Phase 3 Report, the City should “Provide Planning, Building, and Engineering incentives for expedited project review and permitting for qualified bio-medical development projects.” The proposed Section 9326 includes specific incentives related to permit processing and approval timelines and costs for bio-medical uses and development related to it. The proposed Section 9326 is provided on pages 28 to 30 of Attachment 1. As an ancillary note to the new Bio-Medical Overlay Section, discussed here, modifications to the “Intent and Purpose” sections within the Commercial and Manufacturing Zone sections are also provided. While not directly regulating development, updating these descriptions will establish context for the incentivized bio-medical zoning standards and help tie the intent of the overlay zone to the base zones. 3) Commercial and Manufacturing Zones’ Use Regulations The Bio-medical Planning Assessment from the Phase 3 Report included strategies to encourage appropriate, desirable bio-medical land use types that consisted of defining bio-medical sector business priorities and tailor land use/zoning strategies to reach the target businesses and institutions, and restrict land uses that could detract from or frustrate the City’s efforts to expand bio-medical uses. Additionally, in order to attract a defined range of bio-medical uses, land-use synergy should be encouraged by amending the Hospital-Medical Arts Zone to allow more diverse, supportive uses, and promote walkable or bikeable facilities and services close to bio- Agenda Page 55 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 8 of 20 medical job nodes. Land uses that encourage synergy include: internet cafes, restaurants, pubs and taverns, neighborhood grocery stores and personal and financial services. To accomplish the goals of incentivizing bio-medical uses and to incorporate the strategies identified in the Bio-medical Planning Assessment, CSI evaluated the allowed uses in all Commercial and Manufacturing Zones. Based on this evaluation, the proposed Bio-Medical Overlay zoning amendments consist, generally, of the following: 1) Broaden the range of permitted and conditionally permitted uses allowed in the Commercial and Manufacturing Zones for parcels located in the Bio-Medical Overlay, and especially when in conjunction with a bio-medical use or development. 2) Improve the attraction of bio-medical and related uses by allowing uses that support or are accessory to bio-medical uses within the Commercial and Manufacturing Zones where ever they occur. The proposed amendments discussed in this subsection of the report are provided in Attachment 1, starting on page 7 for the Commercial Zone Use Regulations, and on page 21 for the Manufacturing Zone Use Regulations. All modifications are shown in track changes format to illustrate the specific amendments proposed. The first modifications consist of revising the Use Regulation tables to include and reflect the new and updated definitions described in a previous subsection of this report. Based on their ability to either help incentivize or detract from bio-medical uses, the new definitions for land uses were identified as either permitted (P), conditionally-permitted (C), or not permitted (NP). For example, the new “Laboratory, Wet” land use was included in both the Commercial and Manufacturing Zone Use Regulations tables, and conditionally-permitted (C) in the most intense Commercial and Manufacturing Zones, and not permitted (NP) in the rest, such as the neighborhood-serving Commercial Zones. As noted previously, CSI proposes the placement of a large portion of the Bio-Medical Overlay development and use standards within the Commercial and Manufacturing Zone Sections. To demonstrate how this is achieved, a good example is the placement of the new “Bio-medical Use” definition in the Commercial and Manufacturing Zone Use Regulation tables. Within the most intense Commercial and both Manufacturing Zones, the use is permitted (P). Within the less intense Commercial Zones, the use is not permitted (NP). However, if the less intense Commercial Zones are part of the Bio-Medical Overlay, then the “Bio-medical Use” is conditionally-permitted (C). This is accomplished by adding a note in the “Notes and Exceptions” column of the Commercial Zone Use Table that states, “Except for the C-M and H-M zones where the use is permitted (P), this use cate gory is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 9326. Biomedical Overlay Zone of this code.” This technique is applied to many existing and proposed definitions throughout the Commercial and Manufacturing Zones Use Regulations sections. This overcomes the limitations of some Agenda Page 56 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 9 of 20 existing zones, such as the H-M Zone, which does not allow many of the supporting uses allowed in other successful bio-medical zones, such as financial services, bakeries, and bars/taverns. It also allows for additional discretionary review to be placed on certain uses that could adversely affect existing bio-medical businesses or the attraction of future ones. For example, under “Limited Location Uses (cont’d)”, an addition to the restrictions on the subsequent uses states, “Businesses located in the Biomedical Overlay Zone require a Conditional Use Permit, unless specified otherwise under the “Notes and Exceptions” section.” Other modifications are included throughout the Commercial and Manufacturing Zone Use tables, as necessary. These may be uses that are allowed but may no longer be relevant to the City’s needs or bio-medical goals and may be deleted, such as “Cesspool manufacture and sales” and “Taxicab Stands.” Or they may be an alteration to how and where the use is permitted. 4) Commercial Zone Development Standards Modifications to the existing development standards are limited to the H-M Zone. While additional amendments may prove useful in the future, CSI does not believe wide-ranging increases in development standards are necessary at this time to incentivize bio-medical development. Such changes may be considered as part of a broader economic development program that the City may consider following an initial start-up period for its new bio-medical policies and programs. However, as included in Attachment 1, on pages 17 and 18, it is recommended that the street- side yard setback of the H-M Zone be reduced from 20 feet to 10 feet to improve the ability of the zone to provide more pedestrian-friendly, vibrant districts that have become a staple of successful bio-medical hubs. This change will not alter the allowed floor area ratio (FAR) or overall site- development potential, but will work in concert with the amended permitted uses (i.e. restaurants and cafes) to incentivize more vibrant work environments desired by professionals working in the bio-medical industry. 5) Zoning Map Amendments In reviewing the City’s Zoning Map, one obvious feature that emerges are the locations of medical- oriented use areas and related Zoning Ordinance use standards. When reviewing the H-M Zone, the land area zoned for such uses is quite limited, in terms of both visibility and acreage. The areas zoned as H-M are not large enough to attract new bio-medical uses and are more likely to simply maintain the medical-related uses that currently exist. To provide more opportunity for bio-medical uses to locate in areas conducive to these types of high-tech commercial and manufacturing uses, CSI recommends the following criteria be used to determine where to apply the Bio-Medical Overlay: 1. Zoning includes Commercial Manufacturing (C-M), Light Manufacturing (M-1), General Manufacturing (M-2), Hospital-Medical Arts (H-M), or more intense commercial designations. In areas with more intense Commercial zoning (C-M, for example), existing medical or medical-manufacturing uses is necessary. Agenda Page 57 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 10 of 20 2. Existing light industrial or commercial-manufacturing uses, preferably medical or bio- medically related. 3. Proximity to regionally- or nationally-recognized medical facilities, especially those identified in regional or state-wide economic development programs/plans (i.e. Los Angeles County Batelle Report). 4. Proximity to other medical services or institutions. 5. Lack of neighborhood-serving commercial uses, or high sales-tax generating regional commercial uses (such as automobile sales lots). 6. Access to major transportation corridors (freeways, major commercial thoroughfares), or distribution centers (shipping/receiving centers). 7. Location within identified planning areas with other economic development benefits/programs, such as the Imperial Highway Improvement Plan. 8. Area includes vacant land, or if developed, sites have low opportunity costs to redevelop or convert to “flex” space for bio-medical lab or research uses. Low opportunity-cost redevelopment would occur on properties with minimally-profitable existing uses and inexpensive buildings with few mechanical/utility connections or structures (self-storage businesses, for example). 9. Capacity for campus-style development consisting of either an industrial/vocational campus or commercial/residential mixed-use campus. 10. Area provides space to transition between most intense site development/land use of a campus-style bio-medical project and adjacent low-density residential neighborhoods. Ideally, the Overlay would be sufficiently wide enough to allow a stepping-down of building height and use intensity when there is lower-density residential nearby that may be negatively affected by a bio-medical campus. 11. Area provides a high level of infrastructure and utility services, such as water, electricity, natural gas, data lines, etc. Based on these criteria, the following maps show the areas proposed for the Bio-Medical Overlay. With the exception of a few locations, the overlay is generally proposed over Commercial Manufacturing (C-M), Hospital-Medical Arts (H-M), and Light Manufacturing (M-1) and General Manufacturing (M-2) Zones. There are certain exceptions to these criteria, one example being the proposed location of the Bio-Medical Overlay Area 3 (which includes a Neighborhood Commercial (C-1) Zone). The Bio-Medical Overlay Area 1 encompasses the Rancho Los Amigos National Rehabilitation Center, a prominent fixture in the City’s bio-medical portfolio. However, the use is technically non- conforming due to its underlying R-1 zoning. Non-conforming uses are typically subject to various zoning constraints, such as amortization requirements or limitations on expansion or intensification of the use. This status can discourage investment or reinvestment in the property or result in relocation of the use. For Rancho Los Amigos, the City should consider rezoning the property from R-1 to H-M and applying the Bio-Medical Overlay. While the Bio-Medical Overlay doesn’t negate any residential or specific plan regulations, it does provide additional incentives to ensure that this important Agenda Page 58 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 11 of 20 resource is afforded any benefits afforded by the overlay in terms of permitting incentives. Given RLA’s pre-eminent national and regional importance in medical rehabilitation and on its local importance to Downey’s economy and bio-medical growth potential, the City should ensure this and other legal, non-conforming bio-medical uses are made “conforming”, as appropriate. The Bio-Medical Overlay Area 3 includes an “island” of Neighborhood Commercial 1 (C-1) in an otherwise “sea” of manufacturing zones. To maintain consistency, this C-1 zone is included in the Overlay and will benefit from the additional incentives provided. In the Bio-Medical Overlay Area 4, a portion of the General Manufacturing 2 (M-2) Zone is excluded. This is because the area is currently occupied by a City facility (Street Maintenance Yard) and Independence Park. Neither facility is currently a suitable candidate for redevelopment. In the future the overlay could be expanded if necessary to alter the allowable uses of these sites to incentivize bio-medical uses. Agenda Page 59 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 12 of 20 Zoning Map with Proposed Bio-Medical Overlay Zone Areas (Marked as 1 – 5) Agenda Page 60 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 13 of 20 Proposed Bio-Medical Overlay Zone Area 1 R-1 5,000 Agenda Page 61 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 14 of 20 Proposed Bio-Medical Overlay Zone Area 2 Agenda Page 62 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 15 of 20 Proposed Bio-Medical Overlay Zone Area 3 Agenda Page 63 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 16 of 20 Proposed Bio-Medical Overlay Zone Area 4 Agenda Page 64 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 17 of 20 Proposed Bio-Medical Overlay Zone Area 5 SECTION 3 – GENERAL PLAN CONSISTENCY As the City considers the creation of a Bio-Medical Overlay Zone, it is important to note that State law requires that zoning and general plans maintain consistency with one another. CSI identified existing inconsistencies between existing General Plan land use designations and the Zoning Map, and described those inconsistencies in the Phase 3 Report. The recommended Bio-Medical Overlay zoning amendments would not result in additional inconsistencies to permit and incentivize bio-medical uses. However, CSI recommends several General Plan text amendments to provide the legal and procedural foundation for the City’s bio-medical land use and economic development objectives. Accordingly, CSI maintains its recommendations for the following types of amendments as part of a General Plan update or amendment: Agenda Page 65 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 18 of 20 Land Use Element 1. Balance of Uses Section  Establish bio-medical development goals and objectives in areas such as land uses, square feet of developed bio-medical uses, and bio-medical employment growth, and development of supportive bio-medical uses such as education facilities or high quality commercial services.  Describe how the overall mix of land uses is likely to change as bio-medical sector expands (i.e., relocation of Government offices along Imperial Highway, continuing relocation of auto-related retail sales, expansion of lab and R&D type development along major transportation corridors).  The H-M Zoned areas are designated by the General Plan Office Commercial and General Commercial. The General Plan narrative contains language addressing bio-medical uses under Office Commercial but is silent regarding these uses under General Commercial. Consider adding language regarding bio-medical uses under the General Commercial heading.  Consider adding a paragraph on bio-medical uses and refer to the locations, purposes and character of the H-M Zone and the Bio-Medical Overlay Zone.  Add a policy and/or program to maintain and expand bio-medical uses. 2. Livable Communities Section  Consider adding a narrative about the existing major medical centers in the City and the City’s desire to maintain and expand bio-medical uses.  Add a policy and/or program to promote bio-medical uses.  Add a policy and/or program addressing strategies to maintain compatibility between residential and bio-medical uses. 3. Growth Projections  Update City Growth Projections for residential and non-residential growth to reflect bio-medical growth objectives. Economic Development Element 1. Business Attraction and Retention Section  Add Strengths, Weaknesses, Opportunities and Threats related to bio-medical uses (refer to the Phase 2 Report).  Add a policy and/or program to attract and retain bio-medical uses.  Add a policy and/or program to provide incentives (e.g., financial, land use processing, flexible development standards, leadership). 2. Employment Section  Add discussion of the value of bio-medical employment. Agenda Page 66 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 19 of 20  Add a policy and/or program to promote bio-medical jobs. General Plan Land Use Map The General Plan Land Use Plan should be amended to re-designate the area currently zoned “H-M” and designated “Office” in the General Plan to “General Commercial” to provide more flexibility of uses. Other Land Use Map amendments may be needed for individual properties as part of rezoning. SECTION 4 – CEQA COMPLIANCE CSI prepared an Initial Study to evaluate the potential environmental effects of the proposed zoning amendments. The Initial Study, provided with this report as Attachment 2, determined that the proposed amendments would have less than significant impacts on the environment, and that a Negative Declaration should be issued in conjunction with the project. Fundamentally, the proposed project does not alter the development intensity of the base zones to which the Bio-Medical Overlay Zone could be applied, only to provide incentives for bio-medical uses to locate in those areas already zoned for a broad range and intensity of commercial and manufacturing uses. Because development intensity is not increased in existing commercial and manufacturing zones, the project is not expected to induce substantial population growth or impact other environmental concerns in the area beyond that which could be accommodated by the commercial and manufacturing zones at build-out intensity anticipated by the 2025 General Plan. SECTION 5 – CONCLUSION This Phase 4 Report completes the work provided by CSI to establish a new “Bio-Medical Overlay Zone.” These regulations and development standards work in concert with updated Commercial and Manufacturing Zones, including the Hospital-Medical Arts (H-M) Zone. Building upon Phases 1, 2, and 3 of this multi-phase project, Phase 4 provides the proposed amendments to create a Bio-Medical Overlay Zone, consisting of necessary Zoning amendments and Zoning Map alterations, as well as General Plan consistency and CEQA compliance with the proposed amendments. CSI’s proposed Bio-Medical Overlay requires amendments to the Zoning Ordinance and Zoning Map that include new and amended Zoning Ordinance definitions to describe the contemporary range and types of bio-medical uses and health services, a new Bio-medical Overlay Zone section of the Zoning Ordinance, revised “Intent and Purpose” of the Commercial and Manufacturing Zones sections of the Zoning Ordinance, updated and amended “Use Regulations” of the Commercial and Manufacturing Zones sections of the Zoning Ordinance, amended “Development Standards” of the Commercial Zones section of the Zoning Ordinance, and amended Zoning Map to include areas designated for the Bio-Medical Overlay Zone. Agenda Page 67 CIVIC SOLUTIONS, INC. Bio-Medical Overlay – Phase 4 Report, City of Downey Page 20 of 20 With this information and proposed direction, CSI seeks City input on the recommendations made in the Phase 4 Report to prepare for the project’s final phase, where CSI will summarize its findings and recommendations in a final Project Report to be presented to City leadership, staff, and business community stakeholders. SECTION 6 – LIST OF ATTACHMENTS 1. City of Downey, Municipal Code, Article IX – Land Use – Excerpted, with Proposed Amendments 2. Environmental Initial Study Agenda Page 68 CITY OF DOWNEY MUNICIPAL CODE ARTICLE IX – LAND USE (EXCERPT) Chapter 1 – GENERAL PROVISIONS AND DEFINITIONS SECTION 9124. “B” DEFINITIONS. Bio-medical Use: A land use associated with medical or biological research, analysis, testing, and manufacturing of medical products, equipment or related items. Such uses generally consist of the following: (1) Medical device or prosthesis prototype fabrication; (2) Production requiring advanced technology and skills and directly related to medical research and development activities on the premises; (3) Manufacturing of biochemical research and diagnostic compounds to be used primarily by universities, laboratories, hospitals, and clinics for scientific research and developmental testing purposes; (4) Production of experimental medical or biochemical products; (5) Development of biomedical-device related production or operating systems to be installed and operated at another location, including manufacturing of products necessary for such development; (6) Manufacturing of biological, biomedical, and pharmaceutical products; (7) Manufacturing of scientific, engineering, and medical instruments. SECTION 9126. “C” DEFINITIONS. Clinical Service: An establishment which provides physical and mental health services on an individual, out-patient basis. The services may be of preventative, diagnostic, treatment, therapeutic, rehabilitative or counseling nature, but do not include group counseling uses. Typical uses would include, but not be limited to, medical and health clinics, chiropractic/physical therapy clinics, individual counselling services and emergency/urgent care centers. SECTION 9134. “G” DEFINITIONS. Group Counseling: A counseling or therapy service that is provided to groups of five or more persons at a time. Examples of group-counseling uses include, but are not limited to, nutritional and diet centers; medical, clinical, and other health-related counseling; and career, professional, and life coaching. SECTION 9136. “H” DEFINITIONS. Hospital: A State-licensed general acute care hospital, as defined by Health and Safety Code section 1250(a), that provides a wide range of emergency, clinical, and temporary medical services to the general public facility to which persons are may be admitted for overnight stay or longer for the diagnosis, care, or treatment of illness and injury or the prevention thereof, not including convalescent homes, sanitariums, and nursing homes. Hospital, Specialty Hospital: Any facility place, or building that is maintained and operated exclusively to provide 24-hour paid in-patient services for the specialized treatment and recovery of chronic health or mental health conditions or elective procedures or treatments. Services provided may include, but are not limited to, food service nutrition counseling acupressure, massage fitness and physical therapy, and pharmaceutical and medical attention. This type of facility is distinct from an acute care general hospital and from a residential use where these services are occasional or otherwise incidental to a primarily residential occupancy. SECTION 9144. “L” DEFINITIONS. Laboratories: Establishments providing medical or dental laboratory services or establishments providing photographic, analytical or testing services.Laboratory, Dry: A laboratory where dry materials, Agenda Page 69 electronics, or large instruments are tested and analyzed, with limited piped services. Dry laboratories may require controlled temperature and humidity as well as dust control. Laboratory, Wet: A laboratory where chemicals, drugs or biological matter is tested and analyzed, and which typically requires water, direct ventilation, specialized piped utilities and protective measures. SECTION 9146. “M” DEFINITIONS. Medical Services: Services provided by a business or facility consisting of the services described within the definitions of “Clinical Service,” “Medical Outpatient Service,” and “Office, Medical,” as those terms are defined in this section, which are ancillary to a primary use consisting of medical or biological research and analysis, or the manufacturing of medical products, equipment or related items. Excludes the use, handling, analysis, testing, processing, growing, distribution, research or any other activity involving Marijuana (Cannabis sp.) or any of its derivatives. Medical Outpatient Service: A business or facility providing medical or health services, more intensive than those typically provided by a Medical Office use, without the need for an overnight stay, such as but not limited to, kidney dialysis, phlebotomists, physical therapy, prosthetics, individual wellness and health maintenance counseling, and urgent care. Medical Outpatient Services does not include Medical Office uses, Wet Laboratories, or Group Counseling services (as those terms are defined in this section). Microbreweries and brewpubs: Refers to small-scale, independently-owned breweries that emphasize traditional brewing methods, flavor and quality and that produce fewer than 15,000 U.S. beer barrels (460,000 U.S. gallons) annually for on- and off-premises consumption. A brewpub is an abbreviated term combining the ideas of a brewery and a pub or public-house. A brewpub can be a pub or restaurant that brews beer on the premises. SECTION 9150. “O” DEFINITIONS. Office, Medical: A facility where medical services, typically involving evaluations or non-emergency procedures, and their associated managerial, administrative, and clerical functions, are conducted. Medical office includes: chiropodists, chiropractors, dentists, clinical service uses (defined in this section), optometrists, osteopaths, physicians, psychologists, surgeons, and other uses which the decision- making body determines are of a medical nature and similar. Medical office does not include Group Counseling uses or Medical Outpatient Services (as those terms are defined in this section).Office, Medical and Dental: Offices and clinics used for the practice of medicine, chiropractic, dentistry, optometry, podiatry, and various forms of physical therapy. Excludes the overnight care of a patient. SECTION 9156. “R” DEFINITIONS. Research and Development: The pursuit of knowledge or creation of products in technology-intensive fields. Examples include, but are not limited to, research and development of computer hardware or software, information systems, industrial processes, technical/technological systems, communications systems, transportation, geographic information systems, multi-media and video technology. Laboratories may also be included in this use (see also “Laboratory, Dry” and “Laboratory, Wet” in this section). Development and construction of prototypes may be associated with this use. SECTION 9158. “S” DEFINITIONS. Specialty Hospital: Any facility place, or building that is maintained and operated exclusively to provide 24-hour paid in-patient services for the specialized treatment and recovery of chronic health or mental Agenda Page 70 health conditions or elective procedures or treatments. Services provided may include, but are not limited to, food service nutrition counseling acupressure, massage fitness and physical therapy, and pharmaceutical and medical attention. This type of facility is distinct from an acute care general hospital and from a residential use where these services are occasional or otherwise incidental to a primarily residential occupancy. Chapter 3 – ZONES AND STANDARDS SECTION 9302. ZONES ESTABLISHED. To carry out the purposes of this chapter, as set forth in Section 9104 of this article, the City is hereby divided into seventeen (17) zones, to be known by the zoning symbols and classifications as shown in Table 9.3.1: Table 9.3.1. Zones Established Zone Symbol Residential Zones Single-Family Residential Zone R-1 Two-Family Residential Zone R-2 Multiple-Family Residential Zone R-3 Multiple-Family Residential Ownership Zone R-3-0 Commercial Zones Professional Office Zone C-P Neighborhood Commercial Zone C-1 General Commercial Zone C-2 Central Business District Zone C-3 Commercial Manufacturing Zone C-M Hospital-Medical Arts Zone H-M Mixed-Use Zone Mixed-Use Zone M-U Manufacturing Zones Light Manufacturing Zone M-1 General Manufacturing Zone M-2 Public Zone Public Zone P Open Space Zone Open Space Zone O-S Planned Unit Development Overlay Zone Planned Unit Development Overlay Zone PUD Bio-Medical Overlay Zone Bio-Medical Overlay Zone BIO Downtown Plan Overlay Zone Downtown Plan Overlay Zone D-P SECTION 9314. COMMERCIAL ZONES. SECTION 9314.02. INTENT AND PURPOSE. (a) The intent and purpose of these Commercial Zone regulations is to: (1) Provide appropriately located areas consistent with the General Plan for a full range of office, retail commercial, and service commercial uses needed by residents and businesses of, and visitors to, the City and region; (2) Strengthen the City’s economic base, and provide employment opportunities close to home for residents of the City and surrounding communities; Agenda Page 71 (3) Create suitable environments for various types of commercial uses, and protect them from the adverse effects of incompatible uses; (4) Promote the creation of vibrant and attractive commercial districts desirable to professionals working in the high-tech and biomedical fields, while also Mminimizinge the impact of commercial development on adjacent, neighborhood-oriented residential districts; (5) Ensure that the appearance and effects of commercial buildings and uses are harmonious with the character of the area in which they are located; and (6) Ensure the provision of adequate off-street parking and loading facilities. (b) Purpose of the C-P Zone. The C-P Zone is intended to provide for the development of integrated office and professional areas wherein related types of uses and facilities may also be located. The provisions of this zone are intended to encourage the most desirable relationship of permitted uses and to provide a transition between more intensive commercial activities and residential areas. (c) Purpose of the C-1 Zone. The C-1 Zone is intended to provide for the development of limited neighborhood shopping areas situated adjacent to, or surrounded by, residential neighborhoods. These shopping areas are intended to serve only the limited need for convenience goods and services in their immediate locality and should fit easily into a residential environment without detriment to the character of the area. (d) Purpose of the C-2 Zone. The C-2 Zone is intended to provide for and encourage the orderly development of general commercial uses, with a wide variety of goods and services, for the residents of the entire City, with provisions designed to ensure that such commerce will be efficient, functionally related, and compatible with adjacent noncommercial development. (e) Purpose of the C-3 Zone. The C-3 Zone is intended to provide for the development of intense commercial and service uses in the City in order to serve the broadest community and regional needs. This area will provide a wide variety of goods and services in establishments whose operating characteristics attract them to a central location in the City and which require good exposure in a readily identifiable and accessible setting. The provisions of this zone are designed to ensure that such activities will be compatible with abutting noncommercial development and to minimize any effects of older development, heavy traffic, or other operating characteristics. (f) Purpose of the C-M Zone. The C-M Zone is intended to provide a flexible range of commercial, wholesale, and light manufacturing uses that can be operated in harmony with each other and in a clean and orderly manner. The areas designated for the commercial and manufacturing zone are suitable for both types of uses in combination with each other or individually. The limitations imposed upon such uses are intended to control the intensity of use and effect upon surrounding areas. (g) Purpose of the H-M Zone. The H-M Zone is intended to provide for and encourage the orderly development of a wide variety of hospital and biomedical uses that facilitate the growth of businesses during all stages of the business cycle. It also allows professional offices, personal and professional services, and retail uses and services that are compatible with, related and supportive of, uses permitted within the zone and with usesdevelopment in adjacent zonessurrounding the zone. Agenda Page 72 SECTION 9314.04. COMMERCIAL ZONES USE REGULATIONS. (a) Table 9.3.5 identifies the uses permitted in each Commercial Zone. If a use is not specifically listed on the table then said use shall be deemed as Not Permitted. (b) Uses that require a Conditional Use Permit are subject to the review requirements and conditions contained in Section 9824. (c) The “notes and exceptions” column of Table 9.3.5 indicates more precisely the use regulations for specific uses or operating characteristics. The notes and exceptions must be reviewed in conjunction with the other information for the class of use. (d) Certain permitted uses and uses requiring a Conditional Use Permit may be subject to special conditions regarding location, operation, or the design of the use. The sections of this article governing these uses are identified in the “notes and exceptions” column of Table 9.3.5. Table 9.3.5. Commercial Zones Use Regulations (P = Permitted NP = Not Permitted C = Conditional Use Permit) Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Automobile and Other Vehicle Sales, Services, and Equipment Automobile, light truck, and motorcycle sales, new NP NP P P P NP Does not include broker and/or wholesale offices Automobile, light truck, and motorcycle sales, used NP NP C C C NP Subject to Section 9404 Automobile accessories and parts stores NP NP P P P NP No repair facilities allowed Automobile paint and body NP NP P P P NP Only when on same site and in conjunction with a new automobile, light truck, or motorcycle dealership Automobile rental agencies NP NP C C C NP Automobile repair NP NP C C P NP Permitted (P) in all commercial zones when on same site and in conjunction with a new automobile, light truck, or motorcycle dealership Automobile wholesale and broker offices NP NP C C C NP Carwash, full-service, self service and coin operated NP NP C C P NP Subject to Section 9406 Mobile homes/manufactured home sales NP NP C C C NP Agenda Page 73 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Recreational vehicle sales NP NP C C C NP Includes boats, trailers, campers, and other recreational vehicles Service stations NP C C NP C NP Subject to Section 9406; one tow truck may be permitted (P); outdoor storage of impounded or damaged vehicles is prohibited Truck and trailer sales NP NP C C C NP Includes heavy equipment. Subject to Section 9404 Towing services NP NP NP NP C NP Vehicle impound and storage yard NP NP NP NP C NP Eating and Drinking Establishments Bars, taverns, pubs, micro-breweries w/ food and drinks NP NP C C C NP Accessory uses such as billiards, pool tables, darts, and game machines are also allowed. This use category is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Bakeries NP P P P P NP Shall have retail component Liquor stores and other off-sale alcohol establishments NP C C C C NP Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Eating and Drinking Establishments (cont’d) Night clubs NP NP C C C NP Restaurants, cafés, coffee establishments P P P P P P For C-P & H-M zones, use shall not exceed 10% of gross floor area of building. with alcohol sales C C C C C C with drive-thru NP C C C C NP Subject to Section 9406 if drive-thru facilities are provided. Agenda Page 74 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions with live entertainment C* NP C C C NP Outdoor seating/dining areas are subject to Site Plan Review in accordance with Section 9820 *The building housing a restaurant shall be a minimum of 100 ft. from the nearest residentially- zoned property. This use category (Restaurant with live entertainment) is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Financial, Professional Services and Office Uses Check cashing NP NP P P P NP Financial services P P P P P NP Drive-thru window or drive-thru ATM requires a Conditional Use Permit (C) in any zone. This use category is permitted (P) in all commercial zones part of the Biomedical Overlay if integrated into a primary biomedical use. See Section 93268. Biomedical Overlay Zone of this code. Offices Does not include new and/or used vehicle brokers or wholesale business and professional P P P P NP NP Agenda Page 75 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions medical and dental Medical outpatient services P NP P NP P P P P NP NP P P offices Medical Office uses and Medical Outpatient Services are permitted (P) in commercial all zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. General Commercial Uses Adult businesses NP NP C NP C NP Subject to Section 9402 Animal sales and services animal sales NP NP P P P NP boarding/kennels NP NP C C P NP feed and supplies NP P P P P NP grooming NP P P P P NP hospitals/veterinary NP NP C C P C Arcades, video games NP NP C C NP NP Auction house NP NP NP NP P NP Audio and video broadcasting NP NP C C P NP Includes recording studios Biomedical Use NP NP NP NP P P Except for the C-M and H-M zones where the use is permitted (P), this use category is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Banquet facilities, ballrooms, and concert halls NP NP C C C NP Fax Blueprint and photocopy services P P P P P NP Bookbinding NP NP NP NP P NP Building/contractor supplies NP NP NP NP P NP Includes equipment renting and leasing Cabinet making and carpenter shops NP NP C NP P NP Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions General Commercial Uses (cont’d) Caretakers’ residences NP NP NP NP P NP Catering companies NP NP P P P NP Commercial recreation NP NP C C C NP Agenda Page 76 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Convention and exhibition halls NP NP NP C C NP This use category is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Christmas tree and pumpkin sales P P P P P P Subject to Section 9420.14 Cyber cafés NP NP C C NP NP Day care center adult C C C C C C child C C C C NP C Day spa NP NP C C C NP Firework stands NP P P P P NP Subject to Section 9518 Food product manufacturing NP NP NP NP C NP Includes processing and storage; excludes lard, pickles, sausage, sauerkraut, and vinegar Fortune telling NP NP C C C NP Funeral services NP NP P P P NP Hotels NP NP C C C NPC Janitorial supplies and services NP NP P P P NP Kiosks permanent C C C C C C temporary or semi- permanent C C C C C C Laboratories, Dry Laboratories, Wet NP NP NP NP NP NP NP NP PC C PC C Testing only laboratories permitted (P) in H-M Zone Laundries limited P P P P P P unlimited NP NP NP NP C C Machine shop and tool repair NP NP NP NP P NP Massage therapy establishment NP NP C C C NP Metal stamping NP NP NP NP P NP Agenda Page 77 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Mail and shipping services P P P P P NNP This use category is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code, unless permitted (P) in the base zone. Medical equipmentand orthopedic sales NP NP NP NP NP P Includes prostheses. This use category is permitted (P) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Motels NP NP C C C NP Subject to Section 9412 Motion picture production NP NP NP NP P NP Parking – surface and structure NP P P C P NPC Passenger stations, bus and rail NP NP P P P NPC Personal improvement services NP NP P P NP NP Personal services P P P P NP NP This use category is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code, unless permitted (P) in the base zone. Pest control services NP NP NP NP P NP Pharmacies NP P P P P P Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions General Commercial Uses (cont’d) Plastic, rubber, packing manufacturing NP NP NP NP P NP Plumbing, electrical, mechanical shops and services NP NP P P P NP Printing shops NP NP P P P NP Public utility offices P P P P P NP Agenda Page 78 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Recycling collection center NP NP C C C NP Repair services, consumer NP NP P P P NP Repair of personal and household items, excluding automobile repair or items used primarily for business Restaurant/hotel supply and services NP NP P P P NP Research and Development NP NP NP NP P C Rug cleaning plants NP NP NP NP P NP Schools, business, professional, trade, technical or vocational CNPNP NP NPC C C NPC Schools, medical CNP NP NP CNP CNP P Silk screening NP NP NP NP P NP Smoke, cigar, hookah lounges NP NP C C C NP Swap meets & flea markets NP NP C C C NP Tanning salons NP NP C C C NP Taxicab stands C C C C C NP Textile, clothing, manufacturing NP NP NP NP P NP Tutoring centers NP NP C C C NP Upholstery, re-upholstery NP NP NP NP P NP Utility distribution stations C C C C C C Wedding chapels NP NP P C P NP Does not include churches and other places of religious worship Welding shops NP NP NP NP P NP Conditional Use Permit (C) required if less than 200 feet from any Residential Zone Wood products manufacturing NP NP NP NP P NP Other Uses Ambulance service NNP NP NP NP CNP C Auction house NP C C C C NP Churches and other places of religious worship C C C C C CNP Does not include wedding chapels Colleges, public or private NP NP C C C C Convalescent hospitals/nursing homes/assisted living facilities NP NP C C C P Subject to Section 9422(Adam, why is this deleted?) Cultural institutions C C C C C CNPNP Agenda Page 79 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Other Uses (cont’d) Emergency shelters, up to 30 occupants NP NP NP NP NP P Subject to Section 9430.04 Emergency shelters, more than 30 occupants NP NP NP NP NP C Subject to Section 9430.04 Fraternal and service organizations C C C C C C Hospitals NP NP P P C P Does not include convalescent hospitals and nursing homes Group Counseling NP NP NP NP C C Medical services CNP NP NP NP NP PC Includes psychiatric centers, short-term care facilities for the mentally ill, alcohol treatment centers. (Different from “Medical Outpatient Services”? Parks and recreational facilities C C C C C NP This use category is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Public buildings and facilities C C C C C NP Libraries, governmental buildings, police and fire stations. This use category is conditionally permitted (C) in all commercial zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Schools Includes elementary, middle or junior, and high schools only public P P P P P PC private C C C C C C Small wind energy systems C C C C C C Specialty Hospital NP NP NP C C C Agenda Page 80 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Universities, colleges, professional and vocational schools C NP NP C C C Wireless communication facilities C C C C C C Subject to Section 9426 Residential Uses Emergency shelters, up to 30 occupants NP NP NP NP NP P Subject to Section 9430.04 Emergency shelters, more than 30 occupants NP NP NP NP NP C Subject to Section 9430.04 Residential Care Facilities, convalescent hospitals, assisted living facilities C NP NP NP NP P Subject to Section 9422 Senior citizen housing development NP NP NP P P P Subject to Section 9418 Single resident occupancy NP NP NP NP NP P Subject to Section 9430.06 Small wind energy systems C C C C C C Universities, colleges, professional and vocational schools C NP NP C C P Transitional/supportive housing NP NP NP NP NP P Subject to Section 9430.06 Wireless communication facilities C C C C C C Subject to Section 9426 Retail Sales Antique and collectible stores NP P P NP P NP Objects more than 40 years old Florist shops NP P P P P NP This use category is permitted (P) in all commercial zones part of the Biomedical Overlay, if integrated into a primary biomedical use. See Section 93268. Biomedical Overlay Zone of this code. Drug stores NP NP P P P NP With or without pharmacies Nurseries and garden supply stores NP NP P NP P NP Agenda Page 81 Use C-P C-1 C-2 C-3 C- M H-M Notes and Exceptions Retail sales, new NP P P P P NP This use category is conditionally- permitted (C) in all commercial zones part of the Biomedical Overlay, if integrated into a primary biomedical use, unless permitted (P) in the base zone. See Section 93268. Biomedical Overlay Zone of this code. Retail sales, used NP NP C C C NP Wholesale, Storage and Distribution Uses Parcel delivery terminals NP NP NP NP P NP Refrigeration plant NP NP NP NP P NP Self-storage, mini- storage, mini-warehouse, and recreational vehicle storage NP NP NP NP C NP Subject to Section 9416 Agenda Page 82 Use C-P C-1 C-2 C-3 C-M H-M Notes and Exceptions Wholesale, Storage and Distribution Uses (cont’d) Storage yards NP NP NP NP P NP Includes building materials, fleet storage, lumber yards, machinery rental, trucking yards and terminals, transit storage, road equipment Warehouse NP NP NP NP P NP Flammable, chemical, or other hazardous material storage requires Fire Department approval Wholesale brokers, jobbers, dealers, distributors NP NP NP NP P NP Wholesale garment sewing NP NP NP NP P NP SECTION 9314.06. COMMERCIAL ZONES PROPERTY DEVELOPMENT STANDARDS. (a) Specific Development Standards. Table 9.3.6 identifies the development standards for all of the Commercial Zones. Table 9.3.6. Commercial Zone Property Development Standards Development Standard Zone C-P C-1 C-2 C-3 C-M H-M Lot area - minimum (square feet) 6,000 6,000 10,000 10,000 87,120 6,000 Lot width - minimum (feet) 60 60 100 100 290 60 Lot depth - minimum (feet) 100 100 100 100 300 100 Floor area ratio - maximum 2.0 0.25 1.4 3.0 NA 2.0 lots 87,120 square feet or greater NA NA NA NA 0.60 NA lots under 87,120 square feet NA NA NA NA 0.50 NA Lot coverage - maximum (percent) 50 50a 50 50 NA 50 Building height - maximum (feet or stories, whichever is less)b 75 feet or 5 stories 20 feet or 1 story 45 feet or 3 stories 105 feet or 7 stories 150 feet or 10 stories 75 feet or 5 stories Yard setbacks - minimum (feet) frontc 10 20 15 NR 20 10 rear abutting a residential zone 46 46 46 46 46 46 abutting nonresidential zone 15 15 15 15 15 15 side interior abutting a residential zone 46 46 46 46 46 46 abutting a nonresidential zone 5 5 NR NR NR See note e street (abutting major roads)c, d 10 20 15 NR 20 2010 street (abutting all other streets)c 5 5 5 5 15 2010 Building separation - minimum (feet) 20 20 20 20 20 20 Air conditioning, mechanical roof and utility equipment Subject to Section 9504 Environmental protection standards Subject to Section 9516 Graffiti control Subject to Section 4960 of Chapter 10 of Article IV of this Code Landscaping, lighting, and walls Subject to Section 9520 Nonconforming uses, lots, and structures Subject to Section 9410 Off-street parking and loading Subject to Chapter 7 Signs Subject to Chapter 6 Site plan review Subject to Section 9820 Trash enclosure Subject to Section 9528 Visibility Subject to Sections 9520 and 9534 Agenda Page 83 Development Standard Zone C-P C-1 C-2 C-3 C-M H-M Wireless communication facilities Subject to Section 9426 Notes: a A mezzanine may be permitted in the C-1 Zone provided it does not exceed thirty (30) percent of the square footage of the ground floor area. b When abutting the R-1 and R-2 Residential Zones, variable height limitations shall apply in accordance with Section 9534.24. c Parking not permitted in the front or street side setbacks. d Major streets are defined as major, primary, and/or second arterials, as identified in the General Plan. e Side setbacks shall be five (5) feet for the first and second floors; ten (10) feet for the third and fourth floors; and fifteen (15) feet for the fifth floor. NA = Not Applicable NR = No Requirement SECTION 9318. MANUFACTURING ZONES. SECTION 9318.02. INTENT AND PURPOSE. (a) The intent and purpose of these Manufacturing Zone regulations is to: (1) Provide appropriately located areas consistent with the General Plan for a broad range of manufacturing and service uses; (2) Strengthen the City’s economic base, and provide employment opportunities close to home for residents of the City and surrounding communities; (3) Promote the creation of vibrant and attractive manufacturing districts desirable to professionals working in the high-tech and biomedical fields, while also Minimize minimizing the impact of manufacturing uses on adjacent, commercial and neighborhood-oriented residential and commercial districts. (b) Purpose of the M-1 Zone. The M-1 Zone is intended to provide an orderly development and grouping together of light manufacturing and appropriate biomedical uses that facilitate the growth of businesses during all stages of the business cycle uses in harmony with each other and the rest of the community. The provisions of this zone are designed to ensure that such uses will be protected from inharmonious uses and to minimize the undesirable effects of heavy traffic or other operating characteristics. . (c) Purpose of the M-2 Zone. The M-2 Zone is intended to provide for the orderly development of general manufacturing, research and development, wholesale and distribution, warehousing, biomedical uses that facilitate the growth of businesses during all stages of the business cycle, and other compatible uses within the community. The provisions of this zone are intended to ensure that industrial development will be protected from intrusion by inharmonious uses, that it will be provided with adequate space and accessory facilities, and that abutting non- industrial areas will be protected from potential conflicts with industrial development. SECTION 9318.04. MANUFACTURING ZONES USE REGULATIONS. (a) Table 9.3.9 identifies the uses permitted in each Manufacturing Zone. If a use is not specifically listed on the table then said use shall be deemed as Not Permitted. (b) Uses that require a Conditional Use Permit are subject to the review requirements and conditions contained in Section 9824. Agenda Page 84 (c) The “notes and exceptions” column of Table 9.3.9 indicates more precisely the use regulations for specific uses or operating characteristics. The notes and exceptions must be reviewed in conjunction with the other information for the class of use. (d) Certain permitted uses and uses requiring a Conditional Use Permit may be subject to special conditions regarding location, operation, or the design of the use. The sections of this article governing these uses are identified in the “notes and exceptions” column of Table 9.3.9. Table 9.3.9. Manufacturing Zones Use Regulations (P = Permitted NP = Not Permitted C = Conditional Use Permit required subject to Section 9824) Use M-1 M-2 Notes and Exceptions Manufacturing Uses Biomedical Use P P Electronics P P Includes electrical and related parts, appliances, devices, engines, motors, televisions, radios Food products P P Includes ice; excludes lard, pickles, sausage, sauerkraut, and vinegar Equipment, instruments and medical/dental products and components Instruments P P Includes electronic, medical and dental tools, prosthetics, precision, measuring Office and related machinery P P Includes audio and visual machinery, computers Pharmaceuticals P P Includes cosmetics, drugs, perfumes, toiletries Laboratories, dry P P Includes medical, dental, research Laboratories, wet C C Finished products P P From the following product types: canvas, clay, cloth, cork, felt, glass, leather, paper, plaster, plastics, stones, textiles, wood, and yarns Heavy manufacturing NP C Includes asphalt and products; brick tile and terra cotta (clay); babbit metal; bleaching powder; building blocks; celluloid; concrete and products Services Adult businesses C C Subject to Section 9402 Appliance repairs and service P P Use M-1 M-2 Notes and Exceptions Services (cont’d) Animal sales and services animal sales P P boarding/kennels C C feed and supplies P P grooming P P hospitals/veterinary P P Auction house C C Automobile rental C C Automobile, light truck, and motorcycle repair P P Blueprint and FaxPrinting, and photocopy services P P Bars, taverns, microbreweries and brewpubs C C Carpet and rug cleaning P P Catering establishments C C Cold storage plants C C Cleaning and dyeing P P Electroplating C C Financial services P P Drive-thru or ATM requires a Conditional Use Permit Agenda Page 85 Use M-1 M-2 Notes and Exceptions (C) in any zone Freight terminals (truck terminals) C C Fumigation contractors P P Kiosks permanent C C temporary or semi-permanent C C Laundries limited P P unlimited P P Machine shops and tool repair P P Metal fabrication P P Requires Conditional Use Permit (C) if within two hundred (200) feet of a residential zone Newspaper printing and publishing P P Offices Does not include new and/or used vehicle brokers or wholesale offices. This use category is permitted (P) in all commercial zones part of the Biomedical Overlay, if integrated into a primary biomedical use. See Section 93268. Biomedical Overlay Zone of this code. business and professional P P medical and dental C C Pest control operators and services P P Plumbing, electrical, mechanical shops and services P P Printing, engraving, lithographing, and publishing P P Public scales P P Recycling collection center C C Refrigeration repairs and services P P Research and Development P P Use M-1 M-2 Notes and Exceptions Services (cont’d) Restaurants, cafes, coffee establishments P P Subject to Section 9406 if drive-thru facilities are with alcohol sales C C provided. with drive-thru C C Outdoor seating/dining areas are subject to Site Plan with live entertainment NP NP Review in accordance with Section 9820. This use category (Restaurant with live entertainment) is conditionally permitted (C) in all manufacturing zones part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Rug cleaning plants P P Service stations C C Automobile and truck Silk screening P P Swap meets and flea markets P P Technical, trade, or vocational schools P P Tire retreading NP P Wholesale, Storage, Distribution, and Warehouse Use (Businesses using compressors and fixed motorized equipment require a Conditional Use Permit) Parcel delivery terminals P P Refrigeration plant P P Self-storage, mini-storage, mini-warehouse and recreational vehicle storage C C Subject to Section 9416 Storage facilities P P Storage yards P P Includes building materials, fleet storage, lumber yards, machinery rental, trucking yards and terminals, Agenda Page 86 Use M-1 M-2 Notes and Exceptions transit storage, road equipment Warehouse P P Flammable, chemical, or other hazardous material storage requires Fire Department approval Wholesale offices for automobiles, motorcycles, and trucks C C Wholesale brokers, jobbers, dealers, distributors, warehouses, storage P P Limited Location Uses (cont’d) (Must be located at least two hundred (200) feet or greater from Residential Zone. Businesses located in the Biomedical Overlay Zone require a Conditional Use Permit, unless specified otherwise under the “Notes and Exceptions” section.) Assembly plants P P Automobile and truck paint and body P P Bakeries P P No retail is permitted, unless located in a manufacturing zone part of the Biomedical Overlay. See Section 93268. Biomedical Overlay Zone of this code. Bottling plants and bottle making P P Can manufacturing P P Cesspool manufacture and sales NP P Crate manufacturing and sales P P Foundries, aluminum (electric or low pressure) NP P Furniture manufacturing and assembly P P Machine shops P P Rubber processing NP P Raw rubber melting not allowed Soft drink manufacture and bottling NP P Truck and trailer repair P P Agenda Page 87 Use M-1 M-2 Notes and Exceptions Limited Location Uses (cont’d) (Must be located at least two hundred (200) feet or greater from Residential Zone. Businesses located in the Biomedical Overlay Zone require a Conditional Use Permit, unless specified otherwise under the “Notes and Exceptions” section.) Cement bulk storage silos NP P Must be located five hundred (500) feet or greater from Residential Zone. Not permitted (NP) within a Biomedical Overlay Zone. Dairy product manufacturing and warehousing NP P Manufacturing must be located five hundred (500) feet or greater from Residential Zone. Not permitted (NP) within a Biomedical Overlay Zone. Other Uses Ambulance service P P Audio and video recording studios P P Automobile tow storage yards C C Includes impound yards Auto wrecking yards NP C Blast furnaces NP C Boiler shops or services NP C Commercial recreation (manufacturing zones only) C C As defined in Section 9126. This use category is permitted (P) in all manufacturing zones part of the Biomedical Overlay, if integrated into a primary biomedical use. See Section 93268. Biomedical Overlay Zone of this code. Drop hammers NP C Utility distribution stations P P Includes transmission substations Electrical generating stations NP C Includes transmission substations, energy support facilities, fuel cells, microwave radio stations Fabrication requiring semi-open operations NP C Fireworks stands P P Forges and foundries NP C Granite and marble grinding NP C Humane society (pounds) P P Not permitted (NP) within a Biomedical Overlay Zone. Junk yards NP C Not permitted (NP) within a Biomedical Overlay Zone. Lumber mills NP C Materials recovery facilities NP C For waste sorting and processing. Not permitted (NP) within a Biomedical Overlay Zone. Motion picture production P P Parking – surface and structure P P Public utilities C C Punch presses NP C Recycling processing center NP C Not permitted (NP) within a Biomedical Overlay Zone. Sandblasting plants NP C Small wind energy systems C C Television and radio stations P P Wireless communication facilities C C Subject to Section 9426 SECTION 9326. BIOMEDICAL OVERLAY ZONE (BIO). SECTION 9326.02. INTENT AND PURPOSE. The intent and purpose of the Biomedical Overlay Zone is to provide greater flexibility in the application of land planning concepts. The Biomedical Overlay Zone provides additional Agenda Page 88 opportunities for bio-medical related uses beyond the medical office, hospital, research and development, and medical-device related uses allowed in the commercial and manufacturing base zones. Additionally, ancillary uses necessary to attract biomedical firms and professionals in the industry are provided for, such as mixed-use developments consisting of professional office or biomedical research facilities and residential uses, and other supporting services, such as restaurants and nightlife activities. The Biomedical Overlay Zone shall meet the objectives of the General Plan and this article, and further encourage the development of new biomedical uses through the relaxation of typical project review timelines, building permit issuance, and business license issuance. SECTION 9326.04. APPLICABILITY. (a) The Biomedical Overlay Zone, and the standards contained in this section, shall apply to all areas designated on the Official Zoning Map as being within the Biomedical Overlay (BIO) Zone, except for any zones not comprised of Commercial or Manufacturing Zones. (b) Whenever any proposed development application for a new, primarily biomedical development encompasses more than one base zone (consisting of Commercial and Manufacturing), the following shall apply: (1) The permitted uses and the development standards for each base zone shall be applicable within the boundaries of each zone; (2) Through the Site Plan Review process, the City Planner may allow the application of development and use standards for any zone covering a portion of the proposed development in any other zone covering other portion of the proposed development if the entire development’s F.A.R. and occupancy do not exceed those which would be permitted if the land area of each zone were developed separately. (c) Where a conflict in regulations occurs, the regulations specified in this section shall apply. SECTION 9326.06. USES PERMITTED. In addition to the uses permitted, either conditionally or otherwise, in the base zones, the following uses are specifically encouraged in the Biomedical Overlay Zone: (a) Biomedical Uses (b) Hospitals (c) Office, Medical (d) Medical Outpatient Services All uses permitted or conditionally permitted in the Biomedical Overlay Zone are specified in the regulations set forth in the commercial and manufacturing base zones, including additional uses permitted that are either located within the Biomedical Overlay Zone or are integrated into a primary biomedical use. SECTION 9326.08. DEVELOPMENT STANDARDS. All development standards applicable to uses located in the Biomedical Overlay Zone are specified in the regulations set forth in the commercial and manufacturing base zones. Any development standards not listed for uses allowed in the Biomedical Overlay Zone are conditional uses required to be integrated into a primary use with specified development standards which shall take precedence over the entire development. In the case of residential uses allowed as part of a primarily biomedical mixed-use development, all development standards not specified for the residential portion of the project in the Agenda Page 89 commercial base zones shall be determined through the Site Plan Review and Conditional Use Permit application processes. SECTION 9326.10. APPLICATION REVIEW. The following review processes shall be modified to expedite the permitting and licensing process for new biomedical developments and businesses. The expedited processes listed below shall apply to all applications for development of projects intended to be primarily occupied by biomedical businesses or the establishment of biomedical businesses located in the Biomedical Overlay Zone. The application of these expedited processes shall be at the discretion of the City Manager, or his or her designee. The process expedited to encourage biomedical uses shall be as follows: (a) Conditional Use Permits (1) Within 60 days of a Conditional Use Permit application being deemed complete and any necessary environmental review has been completed, the Planning Division shall place the application on the public hearing agenda for the decision-making body. (2) The timeframes specified for the voiding of a Conditional Use Permit due to non- commencement of the use shall be extended by one (1) year. An applicant may still utilize any applicable extensions when made to the appropriate decision-making body. (b) Site Plan Review (1) Within 60 days of a Site Plan Review application being deemed complete and any necessary environmental review has been completed, the Planning Division shall place the application on the public hearing agenda for the decision-making body. (2) The timeframes specified for the voiding of a Site Plan Review shall be extended by one (1) year automatically upon the expiration of an approved Conditional Use Permit. An applicant may still utilize any applicable extensions when made to the appropriate decision-making body. (c) Business Licenses (1) Upon application of a business license for a business which meets the definition of “biomedical use” according to this code, an Economic Development Division staff member shall be assigned to assist in the coordination of all necessary on-site inspections required by the various City Departments (i.e. Building, Fire, and Planning). (2) At the discretion of the City Planner, the City may not require an existing building to correct nonconformities when occupancy by a new biomedical use, or expansion of an existing biomedical use is proposed. (d) Building Permits (1) For all building permit applications for a biomedical use, as defined in this code, the City shall waive the General Plan Revision fee of .2% of the building’s valuation. (2) The initial Building Permit plan check fee shall include 4 reviews and shall not exceed 75% of the adopted Building Permit Fee Schedule. (3) The City shall reduce the typical Building Permit plan check review timeframes by 2 days for each of the first two (2) plan check reviews. Agenda Page 90 Zoning Map with Proposed Bio-Medical Overlay Zone Areas Zoning Residential R-1 5,000 R-1 6,000 R-1 7,500 R-1 8,500 R-1 10,000 R-2 R-3 R-3-O Commercial C-P C-1 C-2 C-3 H-M C-M Mixed-Use M-U Manufacturing M-1 M-2 Open Space O-S O-S (PM) - Obsolete O-S (PU) - Obsolete SP 90-1 (Florence/I-5) SP 91-2 (Lakewood/Firestone) SP 01-1 (Downey Landing) DDSP (Downtown Downey) TLSP (Tierra Luna) Other P PUD P-B - Obsolete SP 89-1 (Stonewood) Specific Plan SP 85-1 (Rancho Los Amigos) SP 88-1 (Rancho Business Park) Area 1 Area 5 Area 4 Area 3 Area 2 C-2 R-2 SP 85-1 SP 88-1 C-2 P-B C-2 R-3 R-1 5,000 R-1 5,000 R-2Bio-Medical Overlay Area 1 - Rancho Los Amigos R-1 5,000 R-1 5,000 R-1 5,000 R-1 5,000 R-3 C-2 R-3R-2 R-2 C-1 M-1 C-M M-1 R-15,000 P-B R-3 R-3 R-3 R-1 5,000 R-2 R-3 C-M C-2 M-2 O-S (PM) H-M O-S C-P R-3 R-3 R-3 C-1 R-2 R-3 M-1 M-2 M-2 C-3 R-3R-3-O P-B R-3-O DDSP Bio-Medical Overlay Area 2 - PIH Downey R-1 6,000 R-1 7,500 R-1 5,000 R-1 5,000 C-2 P-B M-1 R-3 M-1 M-2 R-3 R-3 C-2 R-3C-M M-1 M-1 M-1 C-1 P-B R-1 5,000 R-3 P- B C-2 P- B M-2 P-B C-1P-B SP 91-2 C-2 R-3 SP 89-1 R-3 R-2 P-B C-1 M-1 M-2 Bio-Medical Overlay Area 3 - Woodruff/Washburn Industrial Area R-1 5,000 R-1 5,000 R-3C-M P- B C-2 P-B M-2 M-1 R-3 R-2 C-2 R-3 C-2 R-1 5,000 P- B R-1 5,000 R-1 5,000 R-2 R-3 P- B M-2R-3 H-M R-2 C-2 C-1 M-2 C-M M-2 P-B P-B P-B SP 01-1 R-2 Bio-Medical Overlay Area 4 - Kaiser Downey R-1 5,000 P-BC-1 C-2 R-3 C-2 P-B P-BR-1 6,000 R-1 10,000 R-3 R-1 6,000 R-2 R-3 P-B O-S C-2 R-1 7,500 P - B R-3-O R-3 Bio-Medical Overlay Area 5 - Telegraph Road Cit y O f P i c o R i v e r a