Millbrae planning commission determines nonconforming warehouse use at 370 Adrian Road was abandoned; resolution passes 2-1

The Millbrae Planning Commission on Oct. 20 adopted a resolution determining that a nonconforming warehouse and distribution use at 370 Adrian Road was abandoned under Millbrae Municipal Code after a documented lapse of more than 90 days, the commission announced after deliberation. The motion passed 2-1.

The decision addresses whether the property’s prior industrial use — a warehouse and distribution operation established before the Millbrae Station Area Specific Plan (MSASP) rezoning — was “wholly discontinued” for the 90-day period specified by Millbrae Municipal Code section 10.05.02420, and therefore abandoned. Staff presented utility records, lease documents and invoices and told the commission that city records show no metered water use at the site from October 2023 through February 2025 and that the prior tenant vacated in mid-2024, creating a lapse that exceeded 90 days.

Why it matters: the MSASP rezoned the parcel to retail commercial in March 2016, which made warehouse-and-distribution uses nonconforming. If the nonconforming industrial use is legally abandoned, future uses must comply with the retail commercial designation unless the property owner pursues a specific-plan amendment or rezoning.

City staff presented a timeline and records during the hearing. Staff said the previous tenant, operating as Better for You Breakfast (a business later acquired by Revolution Foods), moved operations out and that a subsequent lease and incomplete business-license application from Ocean View Marine Products did not demonstrate continuous active operation. Staff highlighted (1) a lack of metered water usage on city records from October 2023 through February 2025, (2) a month-to-month parking/licensing arrangement with Lucid Motors beginning in July 2024 that used exterior parking and loading areas, and (3) invoices from Ocean View with dates well after the 90-day window. Staff concluded those materials constituted substantial evidence that the warehouse distribution use had been discontinued for longer than the 90 days required by the municipal code.

Property owner Edward “Ed” Kwan and his representatives disputed the staff timeline and contended the record shows ongoing activity. Kwan said he negotiated a lease with Ocean View in mid‑August 2024 and that Ocean View established a PG&E account and later supplied invoices and shipping records indicating distribution activity. Kwan and counsel argued staff had communicated informally that an extension letter was forthcoming and that Ocean View reasonably relied on communications from planning staff; counsel also argued case law requires proof of intent before finding abandonment and urged the commission not to adopt the resolution.

Other speakers included an Ocean View representative and Jesus, owner of JC Kitchen, who described a proposed purchase and the company’s plans to operate a food-processing/distribution facility at the site. Broker testimony described repeated marketing efforts since 2023 and said the property’s triangular shape and lack of highway visibility limit redevelopment options unrelated to food users.

Commission discussion focused on three technical points: whether the record shows a 90‑day lapse in the nonconforming use; whether utility records (zero water usage for many months, with one anomalous meter reading) reliably indicate no active processing use; and whether parking/use by Lucid Motors, documented in a month‑to‑month license, was inconsistent with an ongoing warehouse/distribution operation. Commissioners also debated the legal standard the code requires and whether the commission has discretion to treat the 90‑day rule as extendable in light of staff communications or partial tenant activity.

The commission’s final vote adopted staff’s resolution finding abandonment under Millbrae Municipal Code section 10.05.02420 and the exemption under the California Environmental Quality Act section 15061(b)(3). The motion passed 2-1. The planning commission’s determination is appealable to the City Council within 10 days, subject to the standard appeal fee.

Looking ahead: staff told the commission the property owner may pursue a specific-plan amendment or rezoning under the municipal code process if the owner wishes to reestablish a warehouse/distribution entitlement. The decision does not itself change property ownership or preclude the owner from applying for a change through the code’s rezoning pathways.