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ITEM 2 |
Planning & Zoning Commission Memorandum Development Services Memo No. 24-020
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Date: |
06/05/2024 |
To: |
Planning and Zoning Commission |
Thru: |
Kevin Mayo, Planning Administrator David de la Torre, Planning Manager |
From: |
Alisa Petterson, Senior Planner |
Subject: |
PLH23-0063 CBREIM Frye |
Request: |
Rezoning from Planned Industrial District (I-1) to Planned Area Development (PAD) for data center uses with Mid-Rise Overlay for building heights up to 95 feet Preliminary Development Plan (PDP) approval to expand an existing data center facility |
Location: |
2500 W Frye Road, generally located 1/2 mile south and east of Chandler Boulevard and Price Road |
Applicant: |
Taylor Earl, Earl & Curley |
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Proposed Motion: |
Rezoning Move Planning and Zoning Commission recommend approval of PLH23-0063 CBREIM Frye, Rezoning from Planned Industrial District (I-1) to PAD for data center uses with Mid-Rise Overlay for building heights up to 95 feet, subject to conditions as recommended by Planning staff. Preliminary Development Plan Move Planning and Zoning Commission recommend approval of Preliminary Development Plan PLH23-0063 CBREIM Frye for site layout and building architecture for the expansion of an existing data center on approximately 14.5 acres, subject to conditions as recommended by Planning staff. |
Background Data: |
- 1978: 14.5 acre subject site is annexed into the city as AG-1.
- 1979: Property is rezoned from AG-1 to I-1.
- 1988: A manufacturing building is constructed on the property.
- 2002: The Countrywide mortgage company acquires the subject parcel, which at the time includes approximately 25.5 acres to the north on which they begin construction of 4 office buildings and a parking garage. As part of the construction of the new office campus, the existing manufacturing building is converted to a data center in support of and as an ancillary use of the Countrywide offices.
- 2008: Bank of America acquires the parcel consisting of the office campus and the data center for its use, and an SRP substation is built soon after, northwest of the data center building.
- 2019: Bank of America splits the parcel and sells the property with the data center. The data center continues to operate independent of the Bank of America office campus to the north.
- 2022: Chandler amends the zoning code for data centers, requiring PAD zoning for properties where a data center is the primary use and establishes neighborhood notification and noise mitigation protocols. This zoning amendment renders the property as ‘legal non-conforming’ status since it is no longer associated with the Bank of America campus and it has become a stand-alone primary use.
- The current request proposes to rezone the property from Light Industrial (I-1) district to PAD as allowed by code to return the data center to legal conforming status.
- The current request also proposes an 81,126 sq. ft. expansion to the existing data center building on an underutilized parking lot.
- The proposed building expansion is comprised of a three-story building with exterior screen walls that are 90 feet high max, as needed to control sound mitigation per City of Chandler Zoning requirements.
- Thus, the request also seeks approval for a Mid-Rise Overlay to allow building heights up to 95 feet.
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Surrounding Land Use Data: |
North |
Business park / office buildings |
South |
Frye Road then office buildings |
East |
Ellis Street, then Chandler Fire Station 3, and undeveloped land currently zoned as I-1 Light Industrial. |
West |
Parking lots for the office buildings to the north and west of the subject site |
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General Plan and Area Plan Designations |
Plan |
Existing |
Proposed |
General Plan |
Employment and within the Medical / Regional Retail area |
No change |
Area Plan |
None |
No change |
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Proposed Development |
Subject Site |
Approximately 14.5 acres |
Proposed building expansion square footage |
Approximately 81,126 square feet footprint on site 3 stories at 81,126 square feet each 243,378 square feet total area of proposed expansion |
Proposed building expansion max building height |
3 stories total 90 feet high to tallest point of the angled parapet walls Requesting Mid-Rise Overlay for heights up to 95 feet |
Existing building square footage |
Approximately 150,000 sq. ft. |
Existing building max height |
1 story 30 feet high to top of parapet walls |
Parking |
Existing parking lot with approximately 226 parking spaces will be demo’d to allow expansion 58 new parking spaces provided at new parking area |
Site Layout |
Existing driveways and entrances to site will be maintained Existing site fences are minimally adjusted and existing landscaping enhanced to meet current codes. Main entry to site is off Frye Road with direct access to new parking area New fire lanes surround new building expansion Three new screened outdoor equipment yards are proposed Existing SRP substation at northwest corner of site will be expanded Existing 10-foot-high security wall around substation will be expanded |
Landscaping |
Existing mature landscaping will remain to maintain visual buffer Existing landscaping impacted by new construction will be relocated on site |
Building Setbacks |
Front: 50 foot setback (at Frye Road) Sides: 30 foot setback (at Ellis Street and west property line) Rear: 25 foot setback (at north property line) |
Sound Mitigation Strategies |
Taller parapet walls control noise from roof top mechanical equipment Parapet wall designs with sound absorptive materials to control and diffuse noise Strategic mechanical unit placement to help reduce noise Sound barrier walls at outdoor equipment areas to reduce noise impact |
Building Design |
Proposed building design utilizes high-tech themes Elevations feature designs which reference Chandler’s history Overlapping screen walls with and without some degree of transparency Overlapping and sloped parapet walls Sloped walls serve as a transition between new and existing architecture Large building elevations are broken down into smaller masses Exterior stairs create visual interest |
Materials & Accents |
Precast concrete panels with smooth and custom sandblast patterns Perforated steel and metal panels with digital imagery Two types of metal mesh with digital imagery Painted perforated metal Brushed perforated metal Four exterior paint colors |
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Review and Recommendation |
The subject site is currently zoned I-1 Light Industrial and has been in operation as a data center for years. It is in proximity to other industrial uses, such as Microchip to the immediate northeast and the Air Products campus to the west. It is bordered by the Bank of America campus to the north and CVS offices to the west. Large parking lots west of the site buffer views to the west. An SRP substation that is part of this request and which powers the data center is located on an adjacent parcel northeast of the data center. It will be expanded and upgraded as part of the proposed development. The original data center at the heart of this request was originally developed to support the Bank of America campus to the north using water-cooling technology that was the norm in 2008. The data center remained in service to Bank of America until 2019, when the property was sold. In 2022, Chandler adopted new code amendments to prescribe how and when data centers may be developed in Chandler. Per that ordinance, the existing data center operation today does not meet Chandler’s code requirements, because it is considered a primary use instead of an ancillary use. This request presents the opportunity to bring the facility into code compliance and more, to deliver a net positive impact back to the city. Chandler’s zoning code provides a path for approval of this application through a PAD zoning process that will update the existing facility’s status from ‘legal non-conforming” to code compliance. As a condition of approval, the applicant has agreed to execute a development agreement with the City. Under the terms of the agreement, the developer will change out the existing water-based cooling equipment at the existing facility to a mechanically cooled system that does not rely on evaporative cooling. The existing equipment must be replaced before the developer will receive a certificate of occupancy for the data center expansion. The anticipated timeline for completing that conversion is within 3 years. Moving forward, the developer will be prohibited from using water-based cooling systems on the property, which will result in significant water savings for the City. Public Works and Utilities has reviewed the water consumption associated with the existing data center and reports the amount of water used in 2023 was 14.09 million gallons. While it is difficult to quantify how much of that water was used for data center equipment cooling vs. typical domestic water usage or landscape irrigation purposes, Planning is confident that the amount of water Chandler will reclaim from this conversion will be significant. This will be a substantial benefit to the City of Chandler. This request seeks rezoning and PDP approval for site layout and building architecture for a data center expansion that will be located where an underutilized parking lot for the existing data center exists today. Staff believes this proposal represents the highest and best use of the available property, as any other employment use would not be able to develop because of the inherent site constraints and limitations. The proposal will help improve the area by converting a little-used parking area that is currently screened from view by mature landscaping into an active site. And thanks to the high-quality of design proposed, the opportunity for Chandler to reclaim water rights, and bring an existing data center into code compliance, the benefits of approving the request outweigh the negatives. The architectural design of the expansion features a high-tech aesthetic in homage to Chandler’s unique history. Proposed materials include custom sand blasted and smooth-finish concrete panels. A variety of brushed metal, painted metal and perforated / metal mesh panels with and without applied digital images are well-suited to the surrounding area and nearby industries. The variety of perforation patterns, textures and transparencies help to screen views of ground mounted equipment and enhance the architecture. The applied imagery evokes concepts related to technology networks, tying to both Chandler's high-tech focus and even conceptually referencing our historic canal networks that allowed the original development of Chandler. The proposed color palette of cool blues and grays is accented by pops of yellow to create greater visual interest and identify the main entrance at the west elevation. The larger massing of the building is broken down into smaller elements via applied materials, colors, varying roof heights and horizontal articulation. Framed architectural elements at the south and east facades serve as focal points that highlight exterior stairs and create unique architectural vignettes within the composition. A new landscaped outdoor courtyard is provided between the existing building to the north and the new structure. Tapered metal screen panels extend from the new expansion down to the existing building to unify the architecture. This request proposes to meet all data center requirements defined in Chandler's data center zoning ordinance. Sound control is addressed by the architecture, through the use of sound walls with sound absorptive panels integrated into the screen walls to mitigate sound trespass. Layered parapet walls that slope in opposing directions impart an energy and dynamic quality to the architecture while screening mechanical equipment and further mitigating and diffusing equipment sounds. An on-site liaison will be provided as required from 8 am till 10 pm daily to respond to any complaints, and community messaging will inform neighbors of planned noise-generating operations. A baseline sound study has been performed by a third-party acoustic engineer to confirm the design meets sound control requirements. Additional sound studies will be performed at issuance of certificate of occupancy with follow-up studies required for five years after completion of construction to ensure the sound control is working as planned. The proposed site includes a new parking area with 58 parking spaces, appropriate to serve the administrative areas within the larger data center facility. Fire lanes surround the new building as required. A new outdoor mechanical yard at the east and a new outdoor equipment yard at the west are appropriately screened from view and blend with the architecture. A third outdoor equipment yard near the northwest corner of the site will be screened from existing site walls as well as the SRP substation to the immediate west which is screened via a 10-foot wall. And while the site features mature landscaping that screens views from Ellis Street and Frye Road, the building architecture is appropriately enhanced to deliver an attractive and modern addition to the neighborhood. Staff has reviewed the request and recommends Planning and Zoning Commission recommend approval in recognition of the substantial benefits this development will deliver to the City of Chandler. The proposed development will return a significant amount of water rights back to Chandler when the existing equipment is converted from water-cooling systems to electrical. It will solve existing zoning issues at this approximately 15-year-old data center that has been operating under ‘legal non-conforming status’ since 2019. It will bring the facility into compliance with our current data center code requirements. And surrounding residents will also benefit as the facility will implement ongoing sound studies and sound control protocols, in addition to providing communication channels with the community as required by Chandler’s zoning ordinance. Further, this request will activate a portion of the site that has seen little use since at least 2005, which currently lacks good visibility needed to reduce undesirable activities in the area. And because of the unique site constraints, the development will not cost the city any potential employment use opportunities. And last, the proposal will introduce a modern, high-tech and high-quality architectural design development to enhance the existing neighborhood. Staff finds the proposal to be in alignment with the General Plan and it is consistent with the existing surrounding development within the larger Medical / Regional Retail growth area. Staff recommends approval with conditions. |
Public / Neighborhood Notification |
- This request was noticed in accordance with the requirements of the Chandler Zoning Code.
- A Neighborhood Meeting sign was posted on the site and on social media via Next Door.
- Two Neighborhood Meetings were held due to the request for Mid-Rise Overlay.
- The first Neighborhood Meeting was held on January 29, 2024, and the second on February 5, 2024.
- Both Neighborhood Meetings were presented as an open-house type of meeting, and only a handful of neighbors attended each of the meetings.
- No residents appeared at either meeting to express opposition to the proposed development.
- There was some discussion about screening rooftop mechanical units from view; the applicant explained the equipment would be screened by the parapet walls as required, to the resident's satisfaction.
- There was some discussion about whether the perforated metal screen walls surrounding the ground mounted equipment would sufficiently screen the equipment from view. The applicant explained the material proposed would be effective in screening the equipment, and pointed out the landscaping surrounding the property would help to screen views as well, to the resident's satisfaction.
- Resident interest in the proposed development included questions about the proposed overall height of the development. The applicant explained that the height of the exterior walls is integral to the design to effectively control the sound generated by the facility and contain it as much as possible on-site, as required by Chandler's data center zoning ordinance.
- Further resident comments included an expression of appreciation for the required sound-control measures and for the quality of the proposed architectural design of the building expansion.
Planning has received no calls or correspondence from residents expressing concerns about this request. As of the writing of this memo, Planning staff is unaware of any opposition to the proposal. |
Recommended Conditions of Approval: |
Rezoning Planning staff recommends Planning and Zoning Commission move to recommend approval of Rezoning from I-1 Light Industrial District to PAD for data center uses, subject to the following conditions:
- Development shall be in substantial conformance with the Development Booklet, entitled "CBRE Data Center Expansion" and kept on file in the City of Chandler Planning Division, in File No. PLH23-0063 modified by such conditions included at the time the Booklet was approved by the Chandler City Council and/or as thereafter amended, modified or supplemented by the Chandler City Council.
- Allowed uses include data centers and all uses permitted in I-1 Planned Industrial District provided that parking requirements are met pursuant to Article XVIII Parking and Loading Regulations of the Chandler City Code.
- The Midrise Overlay applies only to the new building addition and shall be limited to a maximum height of ninety-five (95) feet. All other buildings shall be subject to a maximum height of forty-five (45) feet.
- All water-based cooling systems operating on the property to cool electrical equipment must be removed before the City will issue a certificate of occupancy (including temporary certificate of occupancy) for the proposed data center expansion area south of the existing data center and such water-based cooling systems may not be used on the property at any time following the issuance of such certificate of occupancy. For purposes of this ordinance, "water-based cooling systems" means cooling systems that rejects heat from the refrigeration process to the atmosphere by means of water evaporation or other water-based methods that use and discard water as part of the process of transferring heat away from equipment that generates heat on the property.
- Right-of-way dedications to achieve full half-widths, including turn lanes and deceleration lanes, per the standards of the Chandler Transportation Plan.
- Future median openings shall be located and designed in compliance with City adopted design standards (Technical Design Manual #4).
- Completion of the construction of all required off-site street improvements, including but not limited to paving, landscaping, curb, gutter and sidewalks, median improvements, and street lighting to achieve conformance with City codes, standard details, and design manuals.
- The landscaping in all rights-of-way shall be maintained by the adjacent property owner or property owners' association.
- The landscaping in all open-spaces shall be maintained by the adjacent property owner or property owners' association, and shall be maintained at a level consistent with or better than at the time of planting.
- Development standards shall comply with I-1 Planned Industrial District standards, except as modified by conditions here within.
- Minimum building setbacks shall be as provided below and further detailed in the development booklet.
Property Line |
Building Setback |
North |
25 feet |
South |
50 feet |
West |
30 feet |
East |
30 feet |
Preliminary Development Plan Planning staff recommends Planning and Zoning Commission move to recommend approval of the Preliminary Development Plan, subject to the following conditions:
- Development shall be in substantial conformance with the Development Booklet, entitled "CBRE Data Center Expansion" and kept on file in the City of Chandler Planning Division, in File No. PLH23-0063 modified by such conditions included at the time the Booklet was approved by the Chandler City Council and/or as thereafter amended, modified, or supplemented by the Chandler City Council.
- All signage shall be reviewed under a separate permit.
- The site shall be maintained in a clean and orderly manner.
- Landscaping plans (including for open spaces, rights-of-way, and street medians) and perimeter walls shall be approved by the Planning Administrator.
- Raceway signage shall be prohibited within the development.
- Sign packages, including free-standing signs as well as wall-mounted signs, shall be designed in coordination with landscape plans, planting materials, storm water retention requirements, and utility pedestals, so as not to create problems with sign visibility or prompt the removal of required landscape materials.
- All mechanical equipment, including HVAC, utility meters, etc. shall be screened from view by material(s) that are architecturally integrated and consistent with the proposed buildings.
- Trees planted along Frye Road and Ellis Street shall be a minimum of 36-inch box and be a minimum of 12-feet in height at the time of planting.
- Preliminary Development Plan approval does not constitute Final Development Plan approval; compliance with the details required by all applicable codes and conditions of the City of Chandler and this Preliminary Development Plan shall apply.
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