Plano council approves rezoning to allow ‘commercial flex warehouse’ incubator at former Fry’s site

Plano — The Plano City Council voted 8-0 on Monday to amend a planned development district and permit a new "commercial flex warehouse" use at the former Fry’s Electronics site at the northeast corner of U.S. 75 and State Highway 190, allowing the owner-operator Warespace to convert the vacant retail building into multi-tenant small-business incubator space.

City planning staff presented zoning case 2025-004, saying the amendment removes mixed‑use development standards on a portion of the property, retains plan development standards on another portion, and adds special standards limiting outdoor activity and the number of truck docks. "This is intended to be for individual tenants as a kind of business incubator for small business," Christina Day, director of planning, told the council.

Supporters described the proposal as adaptive reuse of an otherwise vacant property. Bill Dahlstrom, speaking for Warespace, said staff and the applicant addressed building, fire and safety questions and asked the council to follow the planning-and‑zoning recommendation. Jason Thorberg of Warespace described the company’s model as small‑business incubator space with shared conference rooms, dock access and a range of unit sizes. "This allows tenants to come in, to grow, in their space," Thorberg said, adding the company expects 120–160 businesses at full occupancy.

Some council members and at least one public commenter pressed for clarity on process and fairness. Longtime land‑use speaker Bill Lyle said the change effectively creates a new use; he argued the city’s zoning ordinance requires adding a new use across the ordinance rather than creating it inside a single planned development. "Our laws matter," Lyle said during public comment. Deputy Mayor Pro Tem (name not specified) said Lyle’s procedural point was well taken but otherwise supported the use as adaptive reuse, economic development and activation of a long‑vacant site.

Council approved the amended ordinance and the applicant’s clarified language, with the maker and seconder of the motion asking staff to return with a separate analysis on whether to add the "commercial flex warehouse" use more broadly in the zoning code. Christina Day told council the rezoning application was reviewed by staff and that a letter of opposition that had affected voting thresholds was withdrawn, removing the requirement for a supermajority.

The ordinance includes operational limits: outdoor operations that could create compatibility or health code conflicts are prohibited, loading activity must be managed, the property owner must install and maintain a living screen along the west side to shield adjacent uses, and the PD limits trucking and fleet storage locations. Staff said individual tenant uses will be reviewed as part of certificates of occupancy and that the PD will list allowed uses and prohibitions to run with the land.

Action resulting from the item: a motion to approve zoning case 2025-004, moved by Deputy Mayor Pro Tem (name not specified), seconded (name not specified); vote tally 8 yes, 0 no; outcome: approved.

Council members asked staff to bring back a separate, citywide consideration in a future agenda about officially adding the new use to the zoning ordinance so similar proposals would follow the same public process.

Several council members praised the concept as a small‑business incubator and adaptive reuse of the Fry’s property; others emphasized the need for transparent, citywide standards before making the use generally available.

Background: Warespace said it would adapt the existing building into many tenant units ranging from about 300–2,500 square feet, provide shared amenities and operate 24‑hour key‑card access with recorded surveillance. Planning staff and the applicant agreed in the PD to prohibit mini‑warehouse public storage (which is limited by code to 500‑sq‑ft units) and to limit certain outdoor industrial activities that could be incompatible with adjacent residential areas.

The council’s action clears the way for Warespace to proceed under the PD standards; staff will process tenant certificates of occupancy and will return with any citywide zoning changes if council directs it.