Title
PLN24-0059 - 2401 Monarch Street - Use Permit & Design Review - Applicant: Gregor Cadman for Natel Energy. A public hearing to consider a Use Permit to allow outdoor research and development, and outdoor storage. The project also consists of Design Review for an approximately twenty-five foot tall, 5,500 square foot hydraulic test facility on the north side of Building 23 at 2401 Monarch Street. This project qualifies for a Class 32 Categorical Exemption pursuant to CEQA Guidelines 15332 - infill development. No additional environmental review is necessary.
Body
To: Honorable President and Members of the Planning Board
From: Steven Buckley, Planning Services Manager and Secretary to the Board
BACKGROUND
Natel Energy is an innovative clean tech company that designs fish-safe hydraulic turbines. Hydro power provides stable, on-demand, emissions-free electricity, including more than half of Alameda’s power needs. Natel develops high-performance fish-safe hydro turbines that protect migratory fish. Natel was one of the first clean technology companies to locate at Alameda Point, sharing space with Makani Power (wind) and leasing Building 400A before leasing its current site, Building 23, at 2401 Monarch Street in 2015. Prior to Natel, the site was used for storing and staging of shipping containers and truck trailers. Natel’s investors purchased the property in 2018, providing a permanent home and allowing investment in the company and the building itself. Building 23 is a contributing structure to the NAS Alameda Historic District. 2401 Monarch Street is in the AP-AR, Alameda Point - Adaptive Reuse Zoning District and is classified as Mixed-Use in the General Plan. The proposed project does not modify or alter any character defining elements of the historic building and therefore the project does not require review or approval by the Historical Advisory Board.
As Natel grew and its hydro turbine products developed, it has increased the use of the outdoor area on the north side of the property for research and development activities, equipment staging, and outdoor storage. The R&D uses include temporary outdoor assembly of equipment too large or impractical to arrange indoors and the operation of two hydro turbine testing platforms and support equipment, including a Recirculating Aquaculture System (fish tanks). The testing platforms and equipment make Natel unique in the global hydro industry as the only site where scale model turbine performance and fish passage can both be studied. Natel’s smaller scale test facility (mini loop) is primarily contained within a 40-foot shipping container and is used for rapid prototyping. The larger scale test facility (big loop) is a 21,000-gallon freshwater system used to simulate various conditions which form the “operating envelope of fish safe turbine designs” as outlined in Exhibit 1 - Operations Plan.
Natel seeks to expand the “big loop” by adding a second test loop with overhead piping run and ~20,000-gallon reservoir as shown in Exhibit 2 - Design Review Plans. The existing and proposed expanded test platform include significant structural elements that constitute an improvement requiring building permits. Pursuant to AMC Section 30-37.2.a., the existing and proposed improvements to Natel’s test platform require Design Review approval. In preparation for obtaining building permits, Natel also wishes to formalize and legalize the existing outdoor uses for outdoor storage and R&D. Pursuant to Alameda Municipal Code (AMC) Section 30-4.24, outdoor operations, including storage and R&D, are conditionally permitted uses in the Alameda Point AP-AR District.
DISCUSSION
Economic Development
Staff views Natel’s continued success as an important part of Alameda’s efforts to support innovative companies and build upon the narrative that Alameda is a business-friendly place that fosters the growth of STEM-driven startups doing critical work to address climate change. Climate technology companies like Natel, Saildrone, and Sila Nanotechnologies are Alameda startup success stories employing over 530 people and are all recognized as business innovators. The proposed project is the type of development encouraged by Alameda’s Economic Development Strategic Plan (EDSP), which the Planning Board unanimously endorsed ahead of City Council adoption in 2018. The EDSP identified clean tech/green tech/high tech as one of the six business categories targeted for retention, expansion, and attraction efforts. It states that Alameda is positioned to capture a share of growth in these areas because it has a strong hub of these industries, especially at Alameda Point as home to alternative energy firms.
Natel has recently been awarded a major U.S. utility contract for design and testing, which is dependent on Natel’s ability to complete and use the expanded test facility. Natel expects to invest an additional $700,000 in 2024 into this expansion and has already begun hiring new employees to support the planned expanded testing laboratory capability. Inability to complete the expansion could jeopardize Natel’s ongoing viability.
USFWS Biological Opinion
The endangered least tern colony on the former NAS Alameda airfield southwest of Building 23 is protected by US Fish & Wildlife Service’s Biological Opinion, which prohibits any new structures higher than four feet tall on the west and south sides of the building (Zone 1). This leaves the enclosed operations yard on the north side of Building 23 (Zone 2) as the only viable location for Natel’s outdoor R&D activities. The Biological Opinion allows new structures in Zone 2 which do not exceed the height of the adjacent buildings. The test facility is approximately 25 feet in height, which is lower than the building height of 44 feet and the tower structure on Building 23’s northwest corner. Both the building and tower would provide a closer, higher vantage point for any predators of the least terns. Consistent with the Biological Opinion, the Draft Resolution (Exhibit 3) includes a condition that any permanently installed equipment over 20 feet tall and within line of sight of the existing least tern colony include anti-perching devices.
Consistent With Adopted Plans and Policies
Staff finds the project consistent with the General Plan. General Plan policy LU-13, Green Economy, calls for promoting a green economy. Natel’s fish-friendly hydropower turbines help create zero-emission electricity while protecting migratory fish. The proposed use furthers General Plan policy LU-21, Alameda Point Adaptive Reuse Sub-District, by supporting preservation and investment in the NAS Alameda Historic District. The project is consistent with the Alameda Point Zoning District, and meets the criteria in Alameda Municipal Code (AMC) Section 30-4.24.b. The hydraulic test platform is equipment that supports the research and development use at the site. The equipment requires a building permit for life safety purposes and is therefore subject to Design Review. However, the Citywide Design Review Manual does not contemplate or provide guidance for this type of structure. No modifications to the Building 23 are proposed as part of this project and the improvements constructed as part of the test facility can be easily removed in the future if the use changes.
Neighborhood Compatibility
As conditioned, the use will not adversely affect other property in the vicinity. Over the last year, Natel has made substantial progress in cleaning up the site and remedying what had become a cluttered, messy, unattractive area during the pandemic years. The recommended site plan focuses on preserving the mission-critical elements of the outdoor use balanced against the community desire for an attractive and inviting environment, including the visually interesting “big loop.” The conditions of approval are designed to ensure that Natel continues to be a good neighbor for the surrounding Spirits Alley businesses by maximizing view opportunities, keeping a clean and tidy Monarch Street frontage, and complying with Alameda’s Noise and Dark Skies ordinances. The design of the hydraulic test facility is appropriate for the site. It is located and designed to minimize visual impacts, including minimizing outdoor storage away from the front of the site and locating as much equipment as feasible adjacent to the hangar doors of Building 23 to maximize views towards San Francisco Bay from the public right of way. The scale of the equipment is similar to other light industrial and research and development users at Alameda Point as well as with the historic use of the hangars and surrounding areas for repair, maintenance, and storage of airplanes and other equipment while the site was part of an active naval air station.
Views
This portion of Monarch Street and the Adaptive Reuse area is not subject to a Specific Plan, unlike the Town Center and Waterfront Park Precise Plan for the hangars on West Tower Avenue near Seaplane Lagoon. That Precise Plan established specific view corridors to maintain open spaces between hangars, allowing views toward San Francisco Bay. Those view corridors align with existing and planned public streets. However, Natel’s test facility does not align with any public streets. West Midway Avenue ends where the view corridor meets the southern edge of Building 22 (Faction/former Hangar One). Natel’s property must maintain an access easement along the northern property line, ensuring visual access to San Francisco Bay. Any future view corridor formally established in this area would likely include the easement and part of the northern area, preserving Natel’s operational yard. Additionally, the southern area of the building is subject to height restrictions from the Biological Opinion, so it will likely remain undeveloped for the foreseeable future. In summary, while the proposed project will occupy more outdoor space, the existing easement north of the property and limitations in the Biological Opinion will ensure existing views are preserved.
Conclusion
Natel’s proposed project is important to the company, environmental stewardship, and Alameda’s future as a hub of clean tech/green tech/high tech businesses. The project and uses are conditioned to balance the needs of Alameda Point’s long-standing mix of innovative climate technology firms and food and beverage manufacturing and tasting room businesses in the NAS Alameda Historic District.
PUBLIC NOTICE
This agenda item was advertised in the Alameda Journal and public notices were posted as required by the Alameda Municipal Code. No public correspondence has been received as of the time of writing this report.
ENVIRONMENTAL REVIEW
This project qualifies for a Class 32 Categorical Exemption pursuant to CEQA Guidelines Section 15332 - infill development, and no additional environmental review is necessary.
RECOMMENDATION
Adopt the Draft Resolution (Exhibit 3) to approve a Use Permit and Design Review to allow outdoor research and development, and outdoor storage, and an approximately 25-foot tall, 5,500 square foot hydraulic test facility on the north side of Building 23 at 2401 Monarch Street.
Respectfully Submitted,
Steven Buckley, Planning Services Manager
By,
Brian McGuire, Planner II
Exhibits:
1. Operations Plan
2. Design Review Plans
3. Draft Resolution