El Segundo planners recommend Smoky Hollow ordinance to allow startups with case-by-case limits on raw materials

The El Segundo Planning Commission voted 4-0 Wednesday to recommend the City Council adopt an amendment to the Smoky Hollow Specific Plan that defines “incubator and innovative start up” uses and allows such businesses by right when they use no raw materials while requiring administrative or conditional permits if they use limited or substantial raw materials.

Commissioners approved Resolution 2965 recommending the ordinance change after staff presented a draft amendment that would add a broad definition of startup uses, a permit table tying review level to raw-material use, and a flexible, case-by-case approach to setting any raw-material limits.

The ordinance’s definition is intentionally broad to attract research-and-development, light industrial and clean technology startups while excluding heavy industrial operations, staff said. Under the draft, a business that uses no raw materials would be allowed by right; one that uses limited amounts of raw materials would require an administrative use permit (AUP); and businesses that use substantial raw materials or engage in bulk manufacturing would require a conditional use permit (CUP). The ordinance does not set numeric raw-material thresholds, staff said, because material types and business operations vary; instead, staff would set limits during the AUP or CUP review.

Commissioner McCafferty said she supported the case-by-case approach but expressed caution about potential unknown impacts from some startups, saying she had “hesitation” and that she was “nervous” about uses that might strain resources or carry environmental risks. Staff said the AUP and CUP routes bring such proposals back to the commission for review.

Economic development staff described outreach plans to notify innovators and property owners after adoption, including roundtables with local founders, publication in the local paper, posting on the city website and targeted digital marketing tied to a planned Smoky Hollow branding effort. Christina Revelis, senior management analyst for economic development, said the city is "looking to launch a branding around Smoky Hollow, a logo, a website dedicated to telling the history of that district" and that the ordinance would be content to share through those channels.

Staff recommended commission approval so the City Council could consider the specific-plan amendment. The planning commission’s recommendation does not itself change zoning; it forwards a resolution and the draft ordinance to the City Council for final action.

The commission’s discussion also reiterated several clarifications recorded in the staff report: raw water would not generally be treated as a problematic raw material for the purpose of this ordinance; permit level will depend on type and amount of materials, how they are used or disposed, and potential nuisance impacts such as noise, odor, dust or waste; and the city will continue gathering experience through case-by-case reviews to refine administrative practices.

The commission voted to recommend council adoption, 4-0.