Title
Public hearing to consider a conditional use permit application PLN21-0037 for Astra Space, Inc. for rocket research, development, light industrial manufacturing, indoor rocket engine testing, perimeter security fencing, and outdoor storage and work areas at and adjacent to 1900 Skyhawk Street and 1690 Orion Street within the Enterprise District at Alameda Point.
Body
To: Honorable President and
Members of the Planning Board
From: Andrew Thomas, Planning, Building and Transportation Director
EXECUTIVE SUMMARY
Over the last 25 years the City of Alameda (City) has been working to replace the 14,000 jobs lost to the Alameda economy by the departure of the U.S. Navy from the City in 1996. In 1996, the City Council approved the NAS Alameda Community Reuse Plan to redevelop NAS Alameda as a mixed-use development with 14,000 jobs. In 2014, the City Council approved an Environmental Impact Report (EIR) and a comprehensive rezoning for the Alameda Point to guide the redevelopment of the area. The Alameda Point zoning envisions adaptive reuse of the buildings in the Naval Air Station (NAS) Historic District and demolition of existing buildings and new construction in the Enterprise District of Alameda Point, which is the area generally bounded by West Hornet Avenue, Main Street, West Atlantic Avenue (Ralph Appezzatto Memorial Parkway), and the Seaplane Lagoon.
Over the last 25 years, the area identified as the Enterprise District has seen little to no significant reinvestment. With few exceptions, commercial tenants in this area have been short term, month to month tenants unwilling to invest or make a long-term commitment to Alameda Point. One of those exceptions has been the Water Emergency Transit Agency (WETA), which constructed their maintenance and operations center (the four-story building by the USS Hornet) and their new Seaplane Lagoon Ferry Terminal.
Astra Space, Inc. (referred to herein as Astra Space, Astra, and applicant) has been operating a small rocket research and development operation in former Navy Building 360 since 2017 and testing their rocket engines in former Navy Building 397 on short term leases. Astra Space is now interested in making a long-term commitment to stay and grow in Alameda at their Alameda Point location. In the next two to three years, Astra Space, Inc. would like to expand their operation in Building 360 and improve Building 372 for additional testing. Astra Space’s headcount has grown from approximately 100 people since January and they currently employ 250 people at their facility at Alameda Point. Within the next year Astra expects to be employing approximately 350 people at their Alameda facility, and up to 500 if they are able to expand onto more land. Their ability to add more employees and expand their production capacity is now blocked because of lack of space.
Staff is recommending that the Planning Board approve a Use Permit for the use of the subject buildings and adjacent lease premise lands for expanded use by Astra Space, Inc. Approval of the use permit serves two purposes:
1) For the City and surrounding neighborhoods, the use permit establishes an agreed upon set of rules and limitations for the use of the land to ensure compatibility between the proposed uses and the nearby neighbors and future commercial neighbors. Additionally, staff believes that Astra Space could become the type of business at Alameda Point that will attract similar high technology, support businesses to invest in Alameda Point, and help the City grow the employment base at Alameda Point.
2) For Astra Space, Inc., the use permit establishes Alameda’s desire to have Astra Space stay and grow at Alameda Point. If the Use Permit is approved, Astra Space will pursue long term lease options with the City for long term investment in Alameda Point. If the use permit is denied, Astra Space will need to look elsewhere in the Bay Area or greater United States to locate their growing business.
BACKGROUND
Astra Space is researching and developing small rocket technology to deliver satellites into low earth orbit from their current remote launch site in Kodiak, Alaska. The smaller and more mobile rockets are able to be transported on semi-trucks and can therefore be launched from a wide range of sites around the world. Their clients include Spire, Planet Labs, NASA, and the U.S. Space Force.
In 1953, Buildings 360, 372 and 397 were built by the U.S. Navy. Buildings 372 and 397 were specifically designed and used for indoor jet engine testing, while Building 360 was an engine overhaul and refurbishment shop. The buildings were all vacated by the Navy in 1996.
In 2014, the City completed a comprehensive rezoning for Alameda Point, and established the Enterprise Zoning District. The Alameda Point Enterprise District E-1 and E-2 Zones designate land for “employment and business uses, including office, research and development, bio-technology and high tech manufacturing and sales, light and heavy industrial, … and similar and compatible uses.” Alameda Municipal Code (AMC) Section 30-4.24.c.3-4.
In 2015, the City released Requests for Proposals (RFPs) for the 68 acres known as “Site A”. Simultaneously, the City released an RFP for the Enterprise District, known as “Site B”. After reviewing the responses, the City Council chose to move forward with Site A, but decided that the responses were not worth pursuing at Site B.
On December 8, 2016, the City signed a short term lease with Astra to establish their headquarters and research, develop and build prototypes of their small-scale rocket system and test engines inside Building 397. At the time, Astra Space, Inc. had only been incorporated for less than a year.
On June 13, 2017, the Zoning Administrator approved a use permit for outdoor tanks and outdoor material storage at Building 397 (PLN17-0276).
In 2018, Astra started testing rocket engines inside Building 397. On Dec. 31, 2018, the City of Alameda signed a lease with Astra to expand their operations into the southernmost portion of Building 360 (1900 Skyhawk Street).
By July 2019, Astra completed a partial Tenant Improvement of Building 360, with approximately 71,000 square feet of headquarters and manufacturing workspace in Alameda. All headquarters and office functions were moved from Building 397 into Building 360 at that time. Building 397 is now used for engine testing operations only.
In July 2021, Astra Space started trading on the NASDAQ as the first public launch company. As of September 2021 Astra employed 255 people at the Alameda site. Twenty three percent (23%) of the employees live in Alameda, 18% in San Francisco, and 14% in Oakland. Forty three percent of the employees are people of color and 20% are women. Astra’s workforce includes not just engineering and technology roles, but also skilled labor roles including machining, welding, and other vital manufacturing roles.
On July 22, 2021 Astra submitted an application for a Conditional Use Permit to expand their operations to include and rehabilitate Building 372 for additional indoor engine testing capability, and expand their current headquarters and production space into the remainder of Building 360 (approximately 110,000 square feet).
In 2022, Astra expects to start launching rockets (in Alaska) with 19 kg payloads for NASA while developing a rocket that will carry 100 kg payloads. By 2025, Astra hopes to be able to deliver 300 kg payloads as well as a ‘Space Bus’ to deliver multiple satellites into space.
DISCUSSION
Project Description: Astra is proposing to expand its use of Building 360 for the research and development, manufacture and fabrication of rockets and engines, and main headquarters. Astra is currently using less than half the building. They would like to expand their operations to use the entire building. Ultimately the building will include a main assembly and production floor, machine shop, inventory area, shipping and receiving docs, paint shop and office space. These proposed uses are essentially the same uses that were performed by the Navy in Building 360, when the building was the Navy’s Engine Overhaul Building.
Astra is currently using Building 397, the Navy’s former jet engine testing building, for rocket engine testing. Astra proposes to expand its testing capabilities to include Building 372, which is also a former Navy jet engine testing facility. Both buildings were specifically designed for engine testing. Building 397 is located in the E-1 zoning district and about two blocks from the closest residential uses, which are on the west side of Main Street. Building 372 is located in the E-2 district and about two blocks from the closest residential uses on West Atlantic Avenue (Block 8 and Block 9 at Site A).
Finally, Astra is proposing to use the outdoor area around Building 360 for truck access, loading docks and staff parking, and the outdoor area around Building 372 for storage tanks containing liquid oxygen, liquid nitrogen, gaseous nitrogen, helium, kerosene, and water. In 2017, the City approved a use permit for similar outdoor storage activities adjacent to Building 397. Hazardous Materials Business Plans (HMBPs) must be approved by the City of Alameda Fire Department and the Alameda County Environmental Health Department for the materials stored at and around Buildings 360, 372 and 397. Astra has an existing HMBP for Buildings 397 and 360.
Zoning Requirements: Astra Space is proposing a conditional use permit for the use of approximately 14 acres of land for their research, development, and light industrial manufacturing of rockets that is consistent with the City of Alameda General Plan policies and objectives for the property and the site zoning.
The use of lands at Alameda Point are governed by AMC Section 30-4.24 Alameda Point Zoning District. One of the four stated purposes of the AP Zoning District is to: “Replace the jobs lost by the departure of the Navy and fostering new economic development opportunities on the former federal lands.” AMC Section 30-4.24.a.2.
The area occupied by Astra north of Pacific Avenue is located in the Enterprise-2 sub-district and the area occupied by Astra south of Pacific is located in the Enterprise-1 sub-district. Pursuant to the AP Zoning district, the Enterprise-1 (E-1) sub-district provides lands for “employment and business uses, including office, research and development, bio-technology and high-tech manufacturing and sales, light and heavy industrial, maritime, community serving and destination retail, and similar and compatible uses.” AMC Section 30-4.24.c.3. The Enterprise-2 (E-2) sub-district serves the same purposes as the E-1 sub-district, but uses in the E-2 area are restricted to uses that are compatible with the Waterfront Town Center. AMC Section 30-4.24.c.4. Pursuant to AMC 30-2, light industrial uses mean “an establishment or activity conducted primarily within an enclosed building that includes research and development, manufacture, fabrication, or processing of any article, substance, or commodity and includes storage areas, truck access and loading areas, warehouses, and other similar activities and facilities that do not produce off-site external effects such as smoke, noise, odor, vibration.”
All proposed uses and all improvements to the land by Astra Space, Inc. must be consistent with the following requirements:
Alameda Point Environmental Impact Report Mitigation Monitoring Program. All new development and uses must implement all applicable mitigations required by the 2014 Alameda Point Environmental Impact Report and Mitigation Monitoring and Reporting Program.
Alameda Point Master Infrastructure Plan. All new development and uses shall be reviewed for consistency with the Alameda Point Master Infrastructure Plan. If and when the City Council enters into a long-term agreement for the use of the land with Astra Space, that agreement will establish the terms by which Astra Space either constructs its fair share of the Master Infrastructure Plan or pays for its fair share to enable the City to construct the Master Infrastructure Plan improvements. In 2019, the City Council adopted an update to the MIP, which established the fair share costs at $1.8 million per acre.
Alameda Point Master Transportation Demand Management Plan. All new development and uses must contribute to the implementation of the Alameda Point Transportation Demand Management Plan. All City tenants at Alameda Point, including Astra Space, pay annual dues to the City for this purpose. The funds are passed onto the Alameda Transportation Management Association, which currently provides AC Transit passes to all Alameda Point employees.
Design Review Required for All New Development. All improvements requiring building permits are subject to the requirements of AMC Section 30-36 <https://library.municode.com/ca/alameda/codes/code_of_ordinances?nodeId=CHXXXDERE_ARTIISTDERERE_30-36DEREPR> Design Review Procedure and AMC Section 30-37 <https://library.municode.com/ca/alameda/codes/code_of_ordinances?nodeId=CHXXXDERE_ARTIISTDERERE_30-37DERERE> Design Review Regulations. All design review applications shall be reviewed for conformance with the submittal requirements for a Development Plan as required by AMC 30-4.13 <https://library.municode.com/ca/alameda/codes/code_of_ordinances?nodeId=CHXXXDERE_ARTIZODIRE_30-4DIUSRE_30-4.13PDPLDECODI> (j), the regulations of the Alameda Point Zoning District, and the applicable sections of the Citywide Design Review Manual. Through these review processes, each City Department is able to review and condition projects as necessary to ensure that all new development is consistent with City standards and regulations, and that activities such as outdoor storage of hazardous materials or fluids are conducted in compliance with all federal, state, regional and local standards.
Biological Regulations and On-site Lighting. All new construction projects, alterations to existing buildings and new uses must comply with the conditions set forth in the Declaration of Restrictions for the Former Naval Air Station (Declaration) consistent with the Biological Opinion issued by the U.S. Fish and Wildlife Service and Exhibit C (Alameda Point Lighting Mitigation Measures) of the Memorandum of Agreement between the City of Alameda and Department of Veterans Affairs.
Conditions of Approval: Staff is recommending approval of the proposed use permit subject to a number of conditions of approval to ensure that the growing and expanding Astra Space operations and engine testing does not impact nearby residential areas or the nearby wildlife reserve at Alameda Point.
Noise: Over the past few years, staff has received complaints about noise and vibration emanating from Alameda Point from nearby residents on Main Street. To inform the staff analysis, staff hired a noise consultant (Bollard Acoustical Consultants) to monitor and record noise levels during engine testing in Building 397. Bollard monitored a number of morning tests in April, and then staff monitored a number of afternoon tests in September. Based upon the work by Bollard, (See Exhibit 2 and graphic below from noise test on Main Street), and staff’s independent noise readings and observations, staff determined that:
• The ambient noise levels on Main Street adjacent to the residential areas are equal to or greater than the noise generated by the engine testing. Staff observed that the noise of a truck passing on Main Street during the test exceeded the noise generated by the engine test.
• The noise from a test is more of a rumble than a shrill noise. The noise waves were more noticeable than a higher pitched sound, but staff did not notice any perceptible ground shaking or vibrations, nor did Bollard.
The afternoon tests witnessed by staff occurred at the same time as the Block 9 grand opening, which was an outdoor event including a number of City officials less than two blocks away from Building 397. Block 9 is immediately adjacent to the Bollard test location #2. Within minutes of the last engine test, staff arrived at the grand opening and asked a number of attendees if they had heard the test. None of the attendees remembered hearing anything unusual or loud.
Based upon these observations, staff believes that the operations can be conducted in compliance with the noise ordinance and in a manner that is compatible with the residential uses in the adjacent neighborhood. To ensure compatibility with the neighborhood and surrounding activities, staff is recommending a condition of approval related to noise. The condition highlights the requirements of the noise ordinance, but also adds additional limitations and requirements. The condition recognizes that the amount of testing that may occur may increase and the size of engines may increase as Astra Space continues to grow. Therefore, the condition requires the applicant to fund the construction and maintenance of a noise meter for the City and to provide information related to past tests. With this information and data, the City will be able to confirm that Astra’s engine testing operations remain in compliance with the Noise Ordinance into the future.
It reads as follows:
Engine Testing: All engine testing during which combustion occurs shall be conducted indoors in Buildings 397 and 372 and in compliance with AMC Section 4-10 Noise Control and the following additional limitations:
1. Total engine testing time during any 24-hour period shall not exceed 120 minutes.
2. No engine testing shall occur between the hours of 10:00 pm and 6:00 am.
3. Applicant shall fund installation and maintenance of a permanent noise monitor to be owned and operated by the City of Alameda.
4. Upon request from the City, the applicant shall provide information regarding past test dates, times and duration with the City of Alameda within 7 days of the request.
Emissions and Environmental Protections: To ensure that all future testing and on-site operations are conducted in compliance with public health standards, the Use Permit includes a number of conditions of approval that require compliance with all required approvals and permits required by other agencies including but not limited to the U.S. Navy, Environmental Protection Agency, Bay Area Air Quality Management District (BAAQMD), Department of Toxic Substance Control (DTSC), Regional Water Quality Control Board and/or Army Corps of Engineers.
In compliance with the City’s Climate Action and Resiliency Plan objectives, the conditions also require that Astra convert all fossil fuel powered appliances, such as HVAC systems and hot water heaters, to appliances powered by electricity or another clean energy source by the end of 2024.
The conditions also ensure compliance with all of the applicable mitigation measures from the Alameda Point Environmental Impact Report for these types of uses and future improvements to the property.
Outdoor Uses: To ensure that the use of outdoor areas is conducted in a manner that is compatible with surrounding businesses and residential areas, the resolution of approval includes a condition of approval that states:
Outdoor Uses, Activities, and Screening: The use of outdoor areas shall be limited to parking, truck loading and unloading, storage of materials, and light manufacturing and/or maintenance activities. Outdoor areas may not be used for engine testing or any activity that would result in a violation of Alameda Municipal Code (AMC) Section 4-10 Noise Control. All outdoor storage and work areas shall be adequately screened from view to the satisfaction of the Planning, Building and Transportation Director. All outdoor storage of hazardous materials shall be subject to the review and approval of the Alameda Fire Department and the Alameda Building Department.
Conclusions and Findings: In conclusion, staff finds that:
• The location of the proposed use is compatible with other land uses in the general neighborhood area, and the project design and size are architecturally, aesthetically, and operationally harmonious with the community and surrounding development at Alameda Point.
• The proposed use that is within two blocks of AC Transit and within two blocks of a regional ferry terminal will be served by adequate transportation and service facilities, including pedestrian, bicycle, and transit facilities.
• 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 substantial deleterious effects on existing business districts or the local economy.
• The proposed use relates favorably to the General Plan by supporting and implementing General Plan policies in support of employment and job creation to replace the jobs lost by the departure of the US Navy from Alameda in 1996.
Public Notice and Comments:
Property owners and residents within 300 feet of Alameda Point were notified of the public hearing and given the opportunity to review and comment on the proposal. Copies of all emails and letters received will be forwarded to the Planning Board and provided to the Board at the public hearing.
ENVIRONMENTAL REVIEW
In 2014, the City Council certified the Alameda Point Final Environmental Impact Report (EIR). The EIR evaluated the environmental impacts of full redevelopment of Alameda Point consistent with the Alameda Point Zoning District regulations, the Alameda Point Master Infrastructure Plan (MIP), and the Alameda Point Transportation Demand Management Program (TDM Program). The EIR analysis assumed that full build-out of Alameda Point would include 9,000 new jobs at Alameda Point. There are currently between 1,000 and 2,000 jobs at Alameda Point in 2021. Astra is proposing to increase its workforce from approximately 225 employees to 500 over the next year.
The proposed Astra Space Use Permit application is consistent with the Alameda Point Zoning District, the Alameda Point TDM Program, and the Alameda Point MIP. The proposed project as conditioned by the draft resolution of approval will not result in any significant traffic, noise, air quality, water quality, biological, or other environmental impacts, that were not previously disclosed in the Alameda Point Environmental Impact Report prepared for the development of Alameda Point. The proposed project will be subject to all applicable mitigation measures from the Alameda Point EIR. Furthermore, there have been no significant changes in circumstances that require revisions to the previously certified Environmental Impact Report.
Staff finds that the potential environmental impacts of the proposed use of the land was adequately considered by Final Alameda Point Environmental Impact Report (FEIR) (State Clearinghouse No. 201312043), which was certified by the Alameda City Council by Resolution No. 14891 under the California Environmental Quality Act (“CEQA”), California Public Resources Code Section 21000 et seq. and adopted written findings and a Mitigation Monitoring and Reporting Program (“MMRP”) on February 4, 2014, for the Alameda Point Project; and
1. There are no environmental impacts peculiar to Astra use that were not analyzed in the FEIR, or any such impact can be substantially mitigated by imposition of uniformly applied development policies or standards previously adopted by the City; and
2. There are no potentially significant off-site impacts of the proposed project and there are no cumulative impacts to which the proposed project makes a considerable contribution which were not discussed in the FEIR; and
3. There are no previously identified significant impacts of the proposed project which, as a result of substantial new information which was not known at the time the EIR was certified, have been determined to have a more severe adverse impact than discussed in the FEIR; and
4. That pursuant to the streamlining provisions of Public Resources Code Section 21083.3 and CEQA Guidelines Section 15183, no further environmental review of the design review application is required.
RECOMMENDATION
Hold a public hearing and approve draft resolution approving conditional use permit application PLN21-0037 for Astra Space, Inc. for rocket research, development, light industrial manufacturing, indoor rocket engine testing, perimeter security fencing, and outdoor storage and work areas at and adjacent to 1900 Skyhawk Street and 1690 Orion Street within the Enterprise District at Alameda Point.
Respectfully submitted,
Andrew Thomas, Planning, Building and Transportation Director.
Exhibits:
1. Applicant’s Use Permit Plan Set
2. Results of Noise & Vibration Monitoring at the Astra Rocket Development and Test Facility in Alameda, California. April 2021. Bollard Acoustical Consultants.
3. Draft Resolution of Approval