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HomeMy WebLinkAboutPLNZAD2024-00426 - 865 S 600 WPage 1 of 4 June 3, 2024 ADMINISTRATIVE INTERPRETATION DECISION AND FINDINGS PLNZAD2024-00426 REQUEST: This is a request by representatives of CleanJoule for an administrative interpretation regarding whether an existing use on a property in the CG zone (General Commercial) at approximately 865 S 600 W (Tax ID# 15-12-153-004-0000) could be expanded to a new location in the M-1 zone (Light Manufacturing). A determination is sought because the business is interested in building a new facility in Salt Lake City. They are requesting a determination regarding the proposed use. Per the submitted application, the land use proposed is a sustainable aviation fuel research and development facility. DECISION: The Zoning Administrator finds that the proposed use as presented in the submitted request is considered “Research and Development Facility,” as defined in section 21A.62 of the Salt Lake City Zoning Ordinance. As such, the proposed use is permitted in the M-1 zoning district. FINDINGS: The applicant proposes a sustainable aviation fuel research and development facility. The applicant submitted the following information describing the proposed business operation: • Product Under Development: Sustainable Aviation Fuel (liquid polymers) o Amount Produced: 25,000 gal./yr. (or approx. 140 gal./day over 180 days) o Water Use: <5,000 gallons/day o Flammability: Flash point greater than 50° C (122° F) o Petrochemical Product: Product is not a petrochemical product. It is made using fermentation and separation practices. • Employees: 35 • Facility: Indoors • Nuisances: Facility will not generate noise, smoke, fumes, odors, glare, or health & safety hazards outside of the building or lot. The applicant believes the use should be considered “Research and Development Facility,” which is a permitted use in the M-1 District. The Zoning Ordinance defines “Research and Development Facility” as RESEARCH AND DEVELOPMENT FACILITY: An establishment comprised of one or more structures used primarily for applied and developmental research conducted entirely indoors. The use may include testing to determine the physical qualities of already manufactured materials or materials used in the manufacturing of a prototype. Research and development facility is not a bio-medical facility or light manufacturing. Page 2 of 4 The applicant’s written narrative and addendum indicate that the proposed facility will be “used to show proof of concept” and that “there will be no manufacturing or distribution activities in or adjacent to the Facility at any time.” The addendum states that the sustainable aviation fuel produced at the facility “will be used solely in testing to determine the physical qualities of already manufactured materials, would be considered a prototype, or both.” A key distinction of this use as compared to others in the land use tables is that the product is intended to serve as a prototype to show proof of concept and will not be available as a finished product. If at any point the product is made available as a finished product for sale to customers, or if the product is produced in bulk quantities for wholesale distribution, then the business can no longer be classified as a research and development facility. The applicant has indicated that they “will not be acting as a wholesale distributor or as a manufacturer of flammable liquids, gases, or heating fuel” because they will only be producing small amounts of fuel as a prototype. “Flammable Liquids or Gases, Heating Fuel Distribution and Storage”, which is not permitted in the M-1 district, is defined as: FLAMMABLE LIQUIDS OR GASES, HEATING FUEL DISTRIBUTION AND STORAGE: A type of wholesale distributor engaged in supplying flammable liquids, gases and/or heating fuel. Because the applicant will not be acting as a wholesale distributor, this land use category is not applicable to the proposed business use. However, if, in the future, the business develops a finished product available for sale to customers, then this business would be considered flammable liquids distribution. While the “storage and use of relatively small quantities of flammable materials” is permitted as accessory to the research and development use, the sales of a finished product to customers involving the production and storage of flammable liquids would no longer fit into a permitted use in district and would be most similar to another that is prohibited in the district. As such, a change in the scope of the business would require a zoning amendment and further review. Standards for Use Interpretation Any use interpretation is subject to the below standards: A. Any use defined in chapter 21.A.62 of this title, shall be interpreted as defined; Finding: “Research and development facility” is defined in the zoning ordinance. B. Any use specifically listed without a "P" or "C" designated in the table of permitted and conditional uses for a district shall not be allowed in that zoning district; Finding: “Research and development facility” is specifically listed in the table of permitted and conditional uses within the M-1 zoning district as a permitted use (P). C. No use interpretation shall allow a proposed use in a district unless evidence is presented demonstrating that the proposed use will comply with the development standards established for that particular district; Finding: The proposed use will be required to comply with the development standards of the M-1 zoning district. Page 3 of 4 D. No use interpretation shall allow any use in a particular district unless such use is substantially similar to the uses allowed in that district and is more similar to such uses than to uses allowed in a less restrictive district; Finding: See finding “B” above. As noted in the discussion above, the use as described is most similar to “Research and development facility,” which is a permitted use in the M-1 zoning district. E. If the proposed use is most similar to a conditional use authorized in the district in which it is proposed to be located, any use interpretation allowing such use shall require that it may be approved only as a conditional use pursuant to chapter 21.A.54 of this title; Finding: Not applicable. See finding “B” above. F. No use interpretation shall permit the establishment of any use that would be inconsistent with the statement of purpose of that zoning district. Finding: The stated purpose of the M-1 zoning district is as follows: The purpose of the M-1 Light Manufacturing District is to provide an environment for light industrial uses that produce no appreciable impact on adjacent properties, that desire a clean attractive industrial setting, and that protects nearby sensitive lands and waterways. This zone is appropriate in locations that are supported by the applicable Master Plan policies adopted by the City. This district is intended to provide areas in the City that generate employment opportunities and to promote economic development. The uses include other types of land uses that support and provide service to manufacturing and industrial uses. Safe, convenient, and inviting connections that provide access to businesses from public sidewalks, bike paths and streets are necessary and to be provided in an equal way. Certain land uses are prohibited in order to preserve land for manufacturing uses and to promote the importance of nearby environmentally sensitive lands. Research and development facilities fit within the purpose of the M-1 zone. The use is not expected to produce noise, odors, or environmental impacts on adjacent properties. If you have any questions regarding this interpretation, please contact Andy Hulka at (801) 535- 6608 or by email at andy.hulka@slcgov.com. APPEAL PROCESS: An applicant or any other person or entity adversely affected by a decision administering or interpreting this Title may appeal to the Appeals Hearing Officer. Notice of appeal shall be filed within ten (10) days of the administrative decision. The appeal shall be filed with the Planning Division and shall specify the decision appealed and the reasons the appellant claims the decision to be in error. Applications for appeals are located on the Planning Division website at https://www.slc.gov/planning/applications/ along with information about how to apply and processing fees. Page 4 of 4 NOTICE: Please be advised that a determination finding a particular use to be a permitted use or a conditional use shall not authorize the establishment of such use nor the development, construction, reconstruction, alteration, or moving of any building or structure. It shall merely authorize the preparation, filing, and processing of applications for any approvals and permits that may be required by the codes and ordinances of the City including, but not limited to, a zoning certificate, a building permit, and a certificate of occupancy, subdivision approval, and a site plan approval. Andy Hulka Inland Port Principal Planner CC: Nick Norris, Planning Director Mayara Lima, Zoning Administrator Casey Stewart, Planning Manager and Development Review Supervisor Ballpark Community Council Granary District Alliance Posted to Web Attachments: • Applicant’s addendum to Administrative Interpretation ADDENDUM TO ADMINISTRATIVE INTERPRETATION CLEANJOULE, Inc., a Delaware corporation (“Applicant”), respectfully submits this addendum (“Addendum”) for an Administrative Interpretation (the “Application”). Applicant does not currently have any interest in, but is seeking to lease property located within the Light Manufacturing (M-1) District (the “M-1 District”, such property being referred to herein as the Property”) on which to develop a research and development facility (the “Facility”). 1. Provision(s) of Code for Which Interpretation is Sought Applicant seeks an interpretation as to whether storage and use of flammable liquids or gases as an ancillary and incidental use to the primary use of the Property for the Facility is permitted within the M-1 District. See City Code of Salt Lake City, Utah § 21A.33.040 (“Zoning Code”). 2. Facts Giving Rise to the Request for Interpretation Applicant is requesting an Administrative Interpretation prior to leasing the Property because, though the primary use of the Property for the Facility is a permitted use in the M-1 District, the nature of the research, development, and testing that will be carried out at the Facility would require the storage and use of relatively small quantities of flammable materials. The storage and use of such flammable materials would be wholly ancillary and incidental to the primary use of the Property for the Facility. In completing its diligence prior to leasing the Property, Applicant has communicated with the Salt Lake City Planning Division (“Division”), and there has been a question raised regarding whether or not such limited ancillary and incidental storage and use of flammable substances is permitted in the M-1 District, or if such use is more appropriately limited to the Heavy Manufacturing (M-2) District (“M-2 District”). Thus, Applicant is requesting clarification prior to expending time and resources on identifying and leasing the Property. 3. Interpretation and Statement For the reasons set forth in this Addendum, Applicant’s view is that, because the primary use is a permitted use in the M-1 District, and because the storage and use of minimal quantities of flammable substances within the Facility is required for such primary use, the storage and use of flammable substances must be permitted as a use that is ancillary and incidental to the permitted primary use. The Zoning Code provides that the M-1 District allows for a “[r]esearch and development facility” as a permitted use. Further, the Zoning Code defines “[r]esearch and development facility” as “[a]n establishment comprised of one or more structures used primarily for applied and developmental research conducted entirely indoors. The use may include testing to determine the physical qualities of already manufactured materials or materials used in the manufacturing of a prototype. …” In this case, Applicant would be using the Property for a Facility that would be researching, developing, testing, and determining the qualities of materials related to sustainable airline fuel (“SAF”). The nature of such applied and developmental research, testing, and determinations requires the storage and use of minimal quantities of flammable substances within the facility. The Zoning Code also provides that “[f]lammable liquids or gases, heating fuel distribution and storage” is neither a permitted nor conditional use in the M-1 District but is a permitted use in the M-2 District. It is Applicant’s understanding that this provision of the Zoning Code gave rise to the question considered in the Application. However, the Zoning Code defines “[f]lammable liquids or gases, heating fuel distribution and storage” specifically as “[a] type of wholesale distributor engaged in supplying flammable liquids, gases and/or heating fuel.” Applicant will not be acting as a wholesale distributor or as a manufacturer of flammable liquids, gases, or heating fuel. Additionally, there will be no manufacturing or distribution activities in or adjacent to the Facility at any time. As stated above, the Facility will be used only for applied and developmental research, testing, and determinations. Such applied and developmental research may lead to the production of small, nonmarketable amounts of SAF; however, such SAF will be used solely in testing to determine the physical qualities of already manufactured materials, would be considered a prototype, or both. Other than for the research and development purposes detailed above, there will be no production of SAF in the Facility. Thus, Applicant is requesting that the Division confirm (1) that the storage and use of minimal quantities of flammable substances within the Facility are necessary ancillary and incidental uses to the primary use of the Facility as a research and development facility, which is a permitted use in the M-1 District, and (2) that the minimal amounts of SAF produced at the Facility will merely be the result of testing to determine the physical qualities of already manufactured materials, would be considered a prototype, or both. Thus, these ancillary and incidental uses are permitted so long as they are necessary for Applicant to engage in the primary use of the Property for the Facility where Applicant will conduct applied and developmental research and testing to determine the qualities of already manufactured materials or materials used in the manufacturing of a prototype. 32074378_v2