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Entity Staff Report - 11/15/2021COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM: Nick Tarbet, Policy Analyst DATE: November 16, 2021 RE:Text Amendment: Significant Water Consuming Land Uses PLNPCM2021-00638 PROJECT TIMELINE: Briefing: November 16, 2021 Set Date: November 16, 2021 Public Hearing: Dec 7, 2021 Potential Action: Dec 7 or 14 2021 ISSUE AT-A-GLANCE The Council will receive a briefing about a proposal that would limit the amount of City culinary water that commercial and industrial land uses can utilize. The zoning amendment would implement a 300,000- gallon a day limit for commercial and industrial land uses. The limit affects multiple zones and multiple land uses citywide. The ordinance also amends and clarifies the definitions of related land use terms. This petition was initiated by the Mayor on June 6, 2021. On July 8, the City imposed temporary zoning regulations that prohibited new or expanding land uses that use more than 300,000 gallons per day. This was done through the “pending ordinance” rule, established by Utah Code (10-9a-509), which allows prohibiting certain uses for 180 days. The pending ordinance expires on January 4, 2022. The Planning Commission held a public hearing for the proposal on September 22, 2021 and voted to forward a unanimous positive recommendation to the City Council. Page | 2 POLICY QUESTIONS The Council may wish to request the administration discuss in depth how they determined the 300,00 gallons per day limit was appropriate and if a lower the maximum allowable usage per day was considered. The staff report notes that most of the properties in the northwest quadrant, north of I-80 would be exempt from this change because the development agreement between the property owners and the City vests them in 2018 zoning ordinance. See Attachment A -Planning Commission Staff Report Map o The Council may wish to further discuss this with the administration, specifically to clarify which properties are exempt from these proposed changes. ADDITIONAL INFORMATION The water use limit is intended to preserve City water resources in the long term, while at the same time allowing for the City’s continued economic development. Agricultural, institutional, and residential uses are exempted from the ordinance, as they generally would not reach the water use threshold and in the very limited cases where such uses may potentially exceed the threshold, they provide other public good or health benefits that warrant exemption, such as public recreational space. The Transmittal letter note there are currently two uses in the City that exceed the threshold, the University of Utah and a refinery. Both uses have full or partial exemptions from compliance with City zoning regulations due to other State or Federal regulations. All other commercial and industrial uses in the City currently use less than the proposed 300,000-gallon per day limit. There are only two existing businesses that currently exceed 200,000-gallons per day. The City is aware of at least one bottling plant use currently in the process of obtaining City permits that may exceed the 300,000-gallon limit. (Transmittal Letter, Page 2). That business already applied for a building permit prior to the Mayor’s petition so it would not be affected by the proposed changes as it is vested. KEY CHANGES (Planning Commission Staff Report, Page 2) Implements a water use limit on commercial and industrial land uses 300,000-gallons/day Clarifies definition of bottling plant to cover bottling of beverages in any form, including bottles, cans, or any other container. Defines the terms water use report and potable water (used in the proposed regulation). Adds a footnote to bottling plant land use referencing the existing Inland Port overlay prohibition on bottling plants Pages 3-8 of the Planning Commission staff reports includes a discussion about the key issues identified by the Planning Staff. A short summary of those is provided below. See the planning commission staff report to view the full analysis. 1.Land Uses and Businesses Impacted by the Proposal The proposed ordinance is directed at large, intensive commercial and industrial land uses that have the potential to consume significant amounts of water. Impacted zoning districts include: Light Manufacturing (M-1) and General Commercial (CG), Heavy Manufacturing, Downtown, Transit Station Area, Business Park, Research Park, Form Based Zones, and other Commercial zones. Page | 3 The City’s Zoning ordinance currently prohibits “bottling plant” uses from anywhere within the Inland Port overlay. The prohibition was adopted in 2018 as part of the Inland Port Overlay. o However, the properties north of I-80 which are part of the development agreement are vested in the City’s 2018 zoning code. These changes would not apply to those properties. o See Map, Attachment A -Planning Commission Staff Report Other properties exempt from this change include large state-owned properties such as the State Prison, State and Institutional Trust Land Administration (SITLA) land, University of Utah, University Medical, and Research Park. The 300,000 gallons per day limit is based on an analysis of existing uses on the City’s water system and is intended to balance water resources with continued business development. o The 300,000-gallon limit also takes into consideration the City’s deliberate long term water supply and demand planning, including future development of additional water resources and climate change risks associated with drought intensification. o The City’s long-term planning assumes a variety of future residential, commercial, industrial, and institutional land uses that generally align with the current mix of water use intensity, but with a growing population and increased development. o This is a proactive approach as there appears to be growing interest in siting industries within the City that are proposing to use more than 300,000 gallons of water per day, and in some cases more than 1 million gallons of water per day. 2. Original Ordinance Proposal and Subsequent Changes The first version of the ordinance included a blanket limit of 300,000 gallons per day for all uses and a prohibition on bottling plants citywide, with an exemption for alcohol related uses. o Based on additional research and input, the draft ordinance was revised to directly target commercial and industrial users. o The ordinance was also revised to remove the proposed blanket citywide bottling plant ban along with the associated alcohol manufacturer exemption. The proposal would have treated water, milk, or soda bottling plants differently than other uses that may have similar water impacts, such as breweries, and could appear to unfairly target such uses. 3. Public Notice and City Department/Public Input July 2021, the City posted an “Open House” webpage Planning sent information to Recognized Community Organizations Planning staff attended Business Advisory Board meeting The City’s Sustainability and Economic Development Departments reviewed and provided comments State Department of Agriculture provided comments