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Report regarding consideration and approval of two applications for Conditional Use Permits and Transportation Demand Management (TDM) Plans to allow conforming status of two existing Amazon parcel hubs (processing and/or redistribution parcel facilities) located at 250 Utah Avenue and 400 Littlefield Avenue in the Mixed Industrial High (MIH) Zoning District with an off-site parking lot at 501 S. Airport Boulevard in accordance with Title 20 of the South San Francisco Municipal Code (SSFMC) and determination that the project is categorically exempt from the California Environmental Quality Act (CEQA), per Class 1, Section 15301. (Victoria Kim, Associate Planner)
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MOTION TO ADOPT STAFF RECOMMENDATIONS
1. Move to determine the project is exempt from CEQA.
2. Move to approve the planning entitlements subject to the attached Findings and Conditions of Approval.
RECOMMENDATION
Recommendation
Staff recommends that the Planning Commission conduct a public hearing and take the following actions:
1. Determine that the Project is categorically exempt under the provision of CEQA, Class 1, Section 15301, Existing Facilities.
2. Approve the entitlements request for Projects P23-0124 & P23-0125 including Use Permits (UP23-0124 & UP23-0125) and TDM Plans (TDM23-0008 & TDM23-0007), subject to the attached Findings and Conditions of Approval.
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BACKGROUND/DISCUSSION
The applicant (Amazon) operates two legally established parcel hubs in the East of 101 area, one at 250 Utah Avenue (established in 2016), and one at 400 Littlefield Avenue (established in 2020). When Amazon first began to operate these uses, a parcel hub was included in the “freight / truck terminal” use classification and was a permitted use in the Mixed Industrial (MI) zoning district (which was the zoning district at the time).
In 2021, the City Council adopted a Zoning Ordinance Amendment that included a new land use sub-classification for parcel hub, under the Warehousing, Storage, and Distribution land use classification.
Per Zoning Code Section 20.620.050, Industrial / R&D Use Classifications, a parcel hub is defined as:
a “Last Mile” facility or similar establishment for the processing and/or redistribution of parcels or products. A Parcel Hub’s primary function is moving a shipment from one mode of transport to vehicles with rated capacities less than 10,000 pounds, for delivery directly to consumers or end-users primarily within a 10-mile radius.
This Amendment also established the requirement for a Conditional Use Permit (CUP) for Parcel Hub uses in the MI Zoning District. In 2022, the sites were both rezoned to be Mixed-Industrial, High (MIH), and a CUP is required for Parcel Hub uses in the MIH (consistent with the previous zoning).
While both of the subject parcel hubs were established legally, prior to the requirement of a CUP, a CUP is now required, since Amazon is proposing to add an off-site parking lot at 501 S. Airport Boulevard (approximately one mile from each of the parcel hub locations).This is considered an expansion of an existing use, which triggers the need for a CUP in order to conform with the existing zoning requirements of the district.
The proposed off-site parking lot located at 501 S. Airport Boulevard was approved for the Hertz Corporation’s flagship sales store and vehicle rental space, as an automobile / vehicle sales and leasing facility, primarily to serve ride-sharing companies (approved with a Condition Use Permit in 2019, P19-0053). Hertz no longer utilizes the site, as the demand for rental cars dropped during the COVID-19 pandemic. Amazon is proposing to use the 501 S. Airport Boulevard site for an off-site parking space for delivery vans and van drivers’ personal vehicles, supporting the last mile distribution operations at both the 250 Utah and 400 Littlefield sites. This is considered consistent with the previous approved use, as the site would be used for vehicle parking and storage (similar to the CUP for automobile / vehicle sales and leasing).
Site Overview
The 250 Utah Avenue project site (Amazon site DSF5) is comprised of two approximately 585,500-square-foot (13.4 acres) parcels located on the south side of Utah Avenue, west of Littlefield Avenue. Amazon occupies the western portion (121,558 square feet) of the existing one-story 302,238-square-foot warehouse and office building along with other tenants, including wholesale distribution, logistics, and e-commerce delivery companies. The surrounding land uses are warehousing, storage and distribution, and service commercial uses. The main access to the project site is from Utah Avenue on the north, and the secondary access is from Littlefield Avenue on the south.
The second project site is located at 400 Littlefield Avenue (Amazon site DSA5), 0.3 miles from 250 Utah Avenue. The site (Approx. 226,960 square feet) includes an existing one-story 166,590-square-foot building containing a 163,910-square-foot warehouse and 2,680-square-foot office space. The applicant has been the sole tenant occupying the building and operating the parcel hub since 2020 (Business License No. 112295). The adjacent land uses are biotech companies on the north, metal fabricator and logistics companies on the east, a transportation company on the south, and office buildings and distribution companies on the west. The primary access to the site is from Littlefield Avenue on the west via two driveways.
Project Description
The applicant would like to continue operations of the existing parcel hub uses at both project sites without any modifications to the existing physical conditions. The expansion of the two project sites would include an additional delivery vehicle parking lot, the off-site parking lot at 501 S. Airport Boulevard, to support the delivery service operations at 250 Utah and 400 Littlefield sites.
Operation Plan
Both project locations will continue to operate 24 hours a day, seven days a week, to support the last mile delivery of packages between 11:00 am and 9:00 pm. Thirteen line-haul trucks deliver packages to 250 Utah Avenue, and 11 line-haul trucks arrive at 400 Littlefield Avenue every day between 10:00 pm and 8:00 am. The following table shows numbers of employees at each project site with shift hours (Ref. Attachment 3).
Table 1. Amazon Employees and Drivers
One hundred delivery service drivers arrive at 501 S. Airport Boulevard (off-site parking lot) in privately owned vehicles or by public transit between 9:20 am and 9:50 am. The drivers pick up delivery vans and head to the parcel hub location at 250 Utah Avenue, begin loading packages between 9:50 am and 11:50 am, and leave from the parcel hub station starting at 10:10 am at a rate of 24 vans every 20 minutes to mitigate traffic impacts during peak traffic hours. After eight to ten hours of delivery service, the vans return to the off-site parking lot between 7:00 pm and 9:00 pm.
At 400 Littlefield Avenue, the first 75 delivery service drivers arrive in three waves at 9:20 am, 9:50 am, and 10:50 am, park their personal vehicles and collect delivery vans, start loading the vans, and leave the site between 9:50 am and 11:10 am in waves every 20 minutes. Another 75 delivery service drivers arrive at the off-site parking lot by public transit or in their vehicles between 10:30 and 11:30 am in three waves. Then, they will pick up delivery vans from the off-site parking lot and arrive at 400 Littlefield Avenue. Once the delivery vans are loaded with packages, the delivery drivers depart the project site at 10:30 am, 10:50 am, and 11:30 am in three waves to alleviate traffic flow. The drivers’ shifts would end after eight to ten hours, and they would return to the parcel hub and then back to the off-site parking location.
The applicant is also proposing 40 Amazon Flex Operations drivers (contract workers) at each site, delivering packages in their personal vehicles every day. These contractors arrive at the parcel hub sites between 4:00 pm and 5:00 pm and leave every 15 minutes after loading packages.
ZONING CONSISTENCY
Land Use
The two project sites are located in the Mixed Industrial High (MIH) Zoning District. Pursuant to SSFMC Section 20.100.002 (Nonresidential Zoning Districts), parcel hubs are permitted in the MIH Zoning District, subject to the approval of CUP.
The proposed off-site parking lot at 501 S. Airport is located in the Business and Technology Park-High (BTP-H) Zoning District. Under the previously approved CUP for Automobile / Vehicle Sales and Leasing (P19-0053), the majority of the site was used for vehicle parking. The proposed off-site storage use will maintain the site as vehicle parking and will also allow for future site redevelopment. Thus, the off-site parking is considered consistent with the previously approved CUP, and would be a conditionally permitted use.
Parking Management and Monitoring Study
Per SSFMC Section 20.300.004 (Required Parking Spaces), parcel hubs do not have a specified amount of on-site parking, are required to provide a Parking Management and Monitoring Study, which establishes the parking demand for the project, as well as a plan for providing and managing parking.
Based on the project descriptions (Ref. Attachment 3), there are 174 parking stalls for 122 Amazon associates, 4 trailer loading spaces, and 24 van loading spaces for delivery drivers inside the building at 250 Utah Avenue. At 400 Littlefield Avenue, 176 parking spaces are provided for 120 warehouse associates and 78 van parking spaces for 75 delivery drivers, 25 van loading spaces, and 9 trailer spaces.
Amazon employees have staggered work shifts (shown in Table 1, above), and the arrival and departure windows for delivery drivers are in waves to mitigate traffic impacts to neighboring businesses and surrounding areas. Also, all employees’ schedules are designed to avoid peak hours (Ref. Attachment 5) during the weekdays, with the exception of contracted delivery drivers (Amazon Flex Operations).
Transportation Demand Management (TDM) Plan
A Transportation Demand Management (TDM) plan (TDM20-0009) was previously approved for 400 Littlefield Avenue in 2020, and a TDM plan (TDM15-0005) for 250 Utah Avenue was submitted in 2015 and approved in 2016. The applicant submitted updated TDM plans (Ref. Attachment 6) for the parcel hub properties based on the proposed updated project scope. The City’s TDM ordinance (SSFMC Chapter 20.400) requires a TDM plan for any non-residential development that generates 100 or more daily trips. The applicant’s TDM plans estimate that the DSF5 site (250 Utah Avenue) generates approximately 690 daily trips, including 184 commute trips by on-site employees and 506 delivery trips by the delivery service drivers. The DFA5 site (400 Littlefield Avenue) would generate 879 daily trips, including 180 commute trips by on-site employees and 699 delivery trips. The updated TDM plans are based on the City’s 2022 Transportation Analysis Guidelines, intended to achieve a minimum of 30 points for warehouse/distribution and industrial uses (Tier 2), which is consistent with the requirements of the City’s TDM ordinance. Based on the submitted TDM plans, the TDM plans are satisfying 31 points out of 30 required points (Ref. Attachment 6).
The updated TDM plans for both project sites include a range of measures that are appropriate to the site and consistent with the updated TDM ordinance, including 50% Transit Pass Subsidies, carpool/vanpool programs and parking, bicycle parking and amenities, a designated TDM coordinator, improved bicycle and pedestrian connections, and flexible work schedules. The TDM Plan will be subject to annual reporting and monitoring pursuant to the City’s TDM ordinance (SSFMC Section 20.400.006). Draft conditions of approval are included, requiring the implementation of the TDM Plans (Ref. Attachment 2).
Off-Site Parking Lot
The applicant proposes to add the off-site parking lot at 501 S. Airport Boulevard to serve as personal vehicle parking for drivers during their shifts, and to store delivery service vans after 9:00 pm when deliveries are completed. Currently, the off-site parking lot consists of 424 surface parking spaces on a 207,781 square foot parcel (4.77 acres). 230 vans for the DSF5 site (250 Utah Avenue) and 130 vans for the DFA5 site (400 Littlefield Avenue) are assigned to be parked at the off-site parking lot, per an executed parking agreement between Amazon and the owner of 501 S. Airport Boulevard (Ref. Attachment 7).
The only access to the parking lot is from S. Airport Boulevard driveway and all westbound left turns out of the parcel are restricted. All street frontages of the off-site parking lot will be screened by three-foot-tall shrubs to protect views from the S. Airport Boulevard on the west and N. Access Road on the south in accordance with SSFMC Section 20.330.010 (Parking Area Design and Development Standards). This requirement is included as a Condition of Approval.
GENERAL PLAN CONSISTENCY ANALYSIS
The adopted General Plan (Shape SSF) designates the two project sites as Mixed Industrial High (MIH), and the parcel hub use is consistent with the City’s General Plan vision and land use description: high-density industrial lands for a wide range of uses. The continuation of the existing parcel hubs is compatible with the intended high-density industrial land use designation. The off-site parking use at 501 S. Airport Boulevard is consistent with the previously approved use permit for Automobile / Vehicle Sales and Leasing, as the site will operate as vehicle parking and storage. Additionally, utilizing this site as off-site parking does not preclude future redevelopment of more intense commercial uses, consistent with the General Plan vision.
ENVIRONMENTAL REVIEW
The proposed continuation of the parcel hubs and the establishment of the offsite parking facility are categorically exempt under the provision of CEQA guidelines (Class 1, Section 15301, Existing Facilities), since no construction or alteration of the existing uses are proposed. The project would not make any changes to the subject sites, and no further environmental analysis is required.
CONCLUSION
Approving the two Use Permits for the continuation of existing parcel hubs at 400 Littlefield Avenue and 250 Utah Avenue will provide conforming status the current parcel hub operations and allow for expansion of the uses, but inclusion of the off-site parking lot at 501 S. Airport Boulevard. The continuation of parcel hub uses and the off-site parking will not hinder implementation of the General Plan vision, will be consistent with the Zoning Ordinance requirements, and will ensure that the parcel hubs will continue to operate as legal, conforming uses. The updated TDM plans for both project sites will help support the City’s goals of reducing vehicle miles traveled, managing traffic congestion, and utilization of City’s alternative transportation modes. Therefore, staff recommends that the Planning Commission approve the Use Permits (UP23-0006 & UP23-0007) and Transportation Demand Management Plans (TDM23-0008 & TDM23-0009), subject to the attached Findings and Conditions of Approval.
Attachments:
1. Findings
2. Conditions of Approval
3. Project Descriptions
4. Project Plans and Photographs
5. Traffic Analyses
6. Updated TDM Plans with TDM Checklists
7. Parking Agreement (Memo of Lease)