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File Number: 25-134 The applicant is seeking a Conditional Use Permit to allow -Warehouse - Storage Facilities and Warehouse - Wholesale/Retail Distribution uses in the proposed new building. As noted, the site is surrounded by other IG District properties. Staff recommends approval of the proposed Conditional Use Permit subject to compliance with recommended conditions of approval and mitigation measures that address operational characteristics (noise, glare, hazardous materials, and other applicable performance standards) and ensure compatibility with adjacent uses. The project site and design are appropriate to accommodate a wide range of potential future industrial uses without creating incompatible conflicts with adjacent uses. GENERAL PLAN CONFORMANCE The proposal is consistent with the General Plan. Specific relevant policies are provided in Attachment 5 to Attachment D - General Plan Goals and Policies. ENVIRONMENTAL REVIEW An EIR has been prepared and circulated in accordance with the requirements of CEQA. Under CEQA, an EIR is required to be prepared when a proposed project may have a significant effect on the environment, and that effect cannot be mitigated to a level of insignificance. An agency may approve a project with significant and unavoidable impacts if it adopts a Statement of Overriding Considerations, which finds that the benefits of a project outweigh the potential environmental impact. The Draft and Final EIR for the proposed project are attached as Attachment A, Exhibits A and B. The proposed project would include plumbing for new natural gas connections. Based on recent adopted guidance from the Bay Area Air Quality Management District (BAAQMD), the inclusion of natural gas plumbing has been determined to constitute a significant and unavoidable environmental impact based on the potential to contribute to long-term generation of GHG emissions. The applicant is proposing to include natural gas plumbing in the project for the purpose of attracting a wide range of potential tenants. Many advanced manufacturing and research and development (R&D) users rely on natural gas for key processes and systems, including industries targeted in the City’s recently adopted Economic Development Strategy (clean tech, food tech, biomedical, hardware/robotics and emerging technologies). Attracting these types of industrial uses advances various goals and policies in the City’s General Plan Land Use and Economic Development Elements and supports Economic Development Strategy goals to accelerate innovation and growth of target industries, preserve industrial districts and address infrastructure needs. As discussed in the EIR, this potential environmental impact cannot be mitigated to a level of insignificance, but staff is recommending adoption of mitigation measures that would limit the use of natural gas to the extent feasible. The building and its appliances (space heating, hot water heating, office cooking facilities, etc.) would be required to be all electric and natural gas would be limited to only specific industrial or manufacturing processes that require natural gas as a critical component to that process or processes. Page 3 City of San Leandro Printed on 9/4/2025