File #: 2014-728   
Type: ZA Hearing Item
Body: Zoning Administrator Hearing
On agenda: 7/15/2014
Title: PLN14-0339 - 2450 Mariner Square Loop - Applicant: Sila Nanotechnologies, Inc. The applicant requests Use Permit and Design Review approval to utilize an existing 25' x 50' outdoor enclosure for the storage of liquid nitrogen and silane gas tanks for research and development purposes. The project site is located within the M-2 PD, General Industrial (Manufacturing) Planned Development District.
Attachments: 1. 1 - Application and Plans, 2. 2 - EHS Letter
Title
 
PLN14-0339 - 2450 Mariner Square Loop - Applicant: Sila Nanotechnologies, Inc.  The applicant requests Use Permit and Design Review approval to utilize an existing 25' x 50' outdoor enclosure for the storage of liquid nitrogen and silane gas tanks for research and development purposes.  The project site is located within the M-2 PD, General Industrial (Manufacturing) Planned Development District.
 
Body
 
CITY OF ALAMEDA
COMMUNITY DEVELOPMENT DEPARTMENT
 
ADMINISTRATIVE USE PERMIT AND DESIGN REVIEW
 
ITEM NO:      3-A
 
APPLICATION NO:      PLN14-0339 - 2450 Mariner Square Loop - Applicant: Sila Nanotechnologies, Inc.
 
PROJECT
DESCRIPTION:      The applicant requests Use Permit and Design Review approval to utilize an existing 25' x 50' outdoor enclosure for the storage of liquid nitrogen and silane gas tanks for research and development purposes.  The project site is located within the M-2 PD, General Industrial (Manufacturing) Planned Development District.  
 
GENERAL PLAN:      Business Park
 
ZONING:       M-2 PD, General Industrial (Manufacturing) Planned Development District.
 
ENVIRONMENTAL
DETERMINATION:      Categorically Exempt from State CEQA Guidelines, Section 15301 - Existing Facilities
 
PROJECT PLANNER:      Allen Tai
 
PUBLIC NOTICE:      A notice for this hearing was mailed to property owners and residents within 300 feet of the site, published in a local newspaper, and posted in public areas at subject property.  No comments were received as of July 3, 2014.
 
ATTACHMENTS:      1 - Application Submittal and Plans
      2 - Letter from Rene Ricks, MPH, CIH
      
ACRONYMS:      AMC-Alameda Municipal Code
 
PROPOSAL SUMMARY:      Sila Nanotechnologies is a research and development (R&D) company engaged in developing and manufacturing products used in lithium-ion batteries to increase its lifespan.  The company seeks to relocate its headquarters, consisting of offices and laboratory space for research operations, from Atlanta, Georgia to Alameda.  
 
The company's research operations will require the onsite storage of silane gas and liquid/gaseous nitrogen within an existing 25' x 50' (1,250 square-feet) outdoor walled enclosure and storage pad.  A new 19' tall nitrogen tank is proposed in addition to storage equipment for up to 7,500 cubic feet of silane inside the walled enclosure.  The enclosure previously housed other permitted hazardous materials for a laboratory use.  The enclosure currently consists of a ten-foot tall exterior cinder block wall, and the project proposes retrofitting the enclosure and filling several open sections in the wall to better secure the contents within.  Pursuant to AMC Section 30-4.12(c), uses permitted that are not conducted within an enclosed building or structure requires Use Permit approval.
 
DISCUSSION:
The proposed research and development use conforms to the property's Business Park General Plan land use designation and M-2 PD zoning.  Nitrogen is a naturally occurring chemical element and is a common inert industrial gas.  Silane is a pyrophoric gas commonly used in the solar cell and semiconductor manufacturing industries.  While silane is not toxic or corrosive, it is categorized as a hazardous material because it can be flammable upon exposure to air.  There are no significant public health and safety risks associated with the use and handling of silane, because it is heavily regulated under fire and life safety codes.  The project must comply with all applicable safety standards and containment requirements such that the use and storage of the material does not pose any significant public health risk.  Many Bay Area cities have permitted the proper use and storage of silane, including Berkeley, Hayward, Sunnyvale, Santa Clara, San Jose, Milpitas, and Palo Alto.  Compliance with all standard fire and life safety requirements as set forth in the recommended conditions of approval would ensure that any adverse effects from the use of silane are avoided.
 
 
RECOMMENDATION:      Find that the project will not cause any significant adverse effects to the environment and Categorically Exempt under CEQA Guidelines, Section 15301.  Approve Conditional Use Permit and Design Review PLN14-0339 with conditions based on the following findings:
 
USE PERMIT FINDINGS:
 
1.      The location of the proposed use is compatible with other land uses in the general neighborhood area, and the project design and size is architecturally, aesthetically, and operationally harmonious with the community and surrounding development.
 
The proposed project will utilize an existing 25' x 50' outdoor utility enclosure to store liquid nitrogen and silane gas for research and development purposes.  The site is suitable and adequate for the proposed chemical storage in that it is capable of accommodating the any new mechanical equipment and storage devices needed to house the proposed quantities of these materials in compliance with the applicable fire and life safety codes.  The subject research and development use conforms to the property's M-2 General Industrial (Manufacturing) zoning as it is developed as an industrial office park.  The mechanical equipment needed to store and convey the chemicals on the site will be screened from off premises views by the walled enclosure and the perimeter landscaping around the edge of the property.  Therefore, the proposed research and development use and associated outdoor storage of nitrogen and silane gas chemicals will be compatible with the surrounding development.
 
2.      The proposed use will be served by adequate transportation and service facilities, including pedestrian, bicycle and transit facilities.
The subject enclosure is an existing utility structure in an industrial office park served by adequate transportation facilities.  The proposed reuse of the existing utility enclosure would not generate a significant increase in traffic to and from the site or result in any changes to the existing pedestrian, bicycle, or transit facilities adjacent to the site nor would the project jeopardize the safety of people using such facilities or services.
 
3.      The proposed use, if it complies with all conditions upon which approval is made contingent, will not adversely affect other property in the vicinity and will not have deleterious effects on existing business districts or the local economy.
There are no significant public health and safety risks associated with the use and handling of silane, because it is heavily regulated under fire and life safety codes.  The project must comply with all applicable safety standards and containment requirements such that the use and storage of the material does not pose any significant public health risk.  The project is also required to implement a number of safety measures designed to reduce the likelihood of an accidental release of hazardous materials.  The daily operations of the facility would be required to comply with the current California Fire Code regulations governing the storage and handling of hazardous materials.  All hazardous materials used on the site must be delivered and disposed of by a licensed chemical transporter.  Finally, conditions of approval are included which would require the applicant to implement automatic active and passive safety control measures on all of the proposed storage and conveyance systems to minimize the risk to public health in the event of an accidental chemical release.  Compliance with these safety measures and the recommended conditions of approval would ensure that any adverse effects of the proposal on the welfare of the public, including deleterious effects on businesses and the local economy, are avoided.  
 
4.      The proposed use relates favorably to the General Plan.
The subject property is designated Business Park in the General Plan.  The proposed use of the subject property for R&D purposes is consistent with the General Plan.  Furthermore, the proposal is consistent with the General Plan in that it will enable a new high tech R&D company to locate its headquarters to Alameda, thereby helping to increase the high tech job base in the City.  
 
DESIGN REVIEW FINDINGS:
 
1.      The proposed design is consistent with the General Plan, Zoning Ordinance, and the City of Alameda Design Review Manual.
This proposal to retrofit and reuse an existing utility enclosure meets the guiding policies of the General Plan (3.3.d) in that the new construction will be compatible with structures in the immediate area.  The as-built enclosure conforms to Zoning Ordinance requirements and no changes are proposed to its size and location.  The proposed modifications to the existing enclosure wall will match the existing cinder block appearance.  New mechanical equipment within the enclosure will be screened from public view by the enclosure wall and the perimeter landscaping along the edge of the property.  Therefore, the project is consistent with the Design Review Manual in that it does not adversely affect existing neighborhoods and maintains attractive quality typical of an industrial office park setting.
 
2.      The proposed design is appropriate for the site, is compatible with adjacent or neighboring buildings or surroundings, and promotes harmonious transitions in scale and character in areas between different designated land uses.
The proposed project is an appropriate scale for the size of the subject property, as well as the surrounding properties. While the existing enclosure wall is 10' tall and the proposed nitrogen tank is 19' tall, the project maintains compatibility with the adjacent surroundings in that their height remains subordinate to adjacent main buildings.  The appearance of the enclosure will be in keeping with other accessory structures in the industrial office park, and therefore promotes harmonious transitions in scale and character between the buildings.
 
3.      The proposed design of the structure(s) and exterior materials and landscaping are visually compatible with the surrounding development, and design elements have been incorporated to ensure the compatibility of the structure with the character and uses of adjacent development.
The proposed project, as conditioned, will be compatible with the surrounding industrial office park environment in that it reuses an existing utility enclosure on the property.  The proposed alterations to the utility enclosure will use the same materials to match the rest of the existing structure.  Overall, the enclosure will maintain an appearance consistent with the character of other utility structures in an industrial park environment.
 
COMMUNITY DEVELOPMENT DEPARTMENT CONDITIONS:
 
1.      Compliance with Conditions: The applicant/property owner shall ensure compliance with all of the following conditions.  Failure to comply with any condition may result in construction being stopped, issuance of a citation, and/or modification or revocation of the Use Permit and Design Review approval.
 
2.      Compliance with Laws: The applicant shall comply with current and future rules of the U.S. Environmental Protection Agency, the California Environmental Protection Agency, California Fire Code, California Health and Safety Code, California Code of Regulations, Alameda Municipal Code, and other regulations governing the use, storage, handling and transportation of hazardous materials.  
 
3.      Compliance with Regulatory Approvals: The applicant shall comply with any applicable provisions and permits required from any federal, state, or regional agencies, including, but not limited to, the Bay Area Air Quality Management District, Regional Water Quality Control Board, and Alameda County Department of Environmental Health.  
 
4.      Building/Fire Permits: The applicant shall submit separate plans and documents, permit applications, and fees as required to obtain necessary building and fire/hazardous materials permits.  
 
5.      Final Plans: The plans submitted for building permit and construction shall be in substantial compliance with documents submitted by Sila Nanotechnologies, attached as Exhibit 1, and on file in the office of the City of Alameda Community Development Department, except as modified by the conditions listed in this letter.  A copy of these conditions of approval shall be printed on the cover of the final building permit plans.
 
6.      Fire and Life Safety Systems: All fire and life safety systems shall be installed and operational before occupancy is granted, chemicals are introduced to the facility, or approved quantities are increased.  This includes automatic sprinkler systems, fire alarms systems, smoke detection systems, gas detection systems, gas cabinets, scrubbers, exhaust and ventilation systems, seismic actuated shut-off valves, emergency control valves, and excess flow controls.
 
7.      Revocation: This Use Permit may be modified or revoked by the Zoning Administrator, pursuant to Alameda Municipal Code Section 30-21.3d should the Zoning Administrator determine that: 1) the use or conditions under which it is being operated or maintained is detrimental to the public health, welfare or materially injurious to property or improvements in the vicinity; 2) the property is operated or maintained so as to constitute a public nuisance; or 3) the use is operated in violation of the conditions of the Use Permit.
 
8.      Vesting: The Use Permit approval shall expire two (2) years after the date of approval or by July 15, 2016 unless authorized construction or use of the property has commenced.  The applicant may apply for a time extension, not to exceed two (2) years.  An extension request will be subject to approval by the Zoning Administrator and must be filed prior to the date of expiration.
 
9.      Indemnification: The Applicant shall defend (with counsel reasonably acceptable to the City), indemnify, and hold harmless the City of Alameda, the Alameda City Planning Board and their respective agents, officers, and employees from any claim, action, or proceeding (including legal costs and attorney's fees) against the City of Alameda, Alameda City Planning Board, and their respective agents, officers, or employees to attack, set aside, void or annul, an approval by the City of Alameda, the Community Development Department, Alameda City Planning Board, or City Council related to this project. The City shall promptly notify the Applicant of any claim, action, or proceeding and the City shall cooperate in such defense.  The City may elect, in its sole discretion, to participate in the defense of said claim, action, or proceeding.  No judicial proceedings subject to review pursuant to California Code of Civil Procedure Section 1094.5 may be prosecuted more than ninety (90) days following the date of this decision plus extensions authorized by California Code of Civil Procedure Section 1094.6
DECISION:
 
Environmental Determination
The Zoning Administrator has determined that this project does not involve a significant expansion of an existing use and will not have a significant effect on the environment. Therefore, it is categorically exempt from further environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines, under Section 15301(a) - Existing Facilities, for the operation, permitting, or leasing of existing private structures involving negligible or no expansion of use beyond that which exists.
 
 
Use Permit
The Zoning Administrator approves the Use Permit with conditions.
 
The decision of the Zoning Administrator shall be final unless appealed to the Planning Board, in writing and within ten (10) days of the decision.
 
 
 
Approved by:                                                                    Date:  July 15, 2014
      Zoning Administrator