Commission studies "Smoky Hollow" incubator uses, raises parking and hazardous-materials limits

The El Segundo Planning Commission held a study session May 22 on how to implement the Smoky Hollow Specific Plan's vision for incubator and startup businesses, focusing on use definitions, permit pathways and parking and hazardous-materials limits.

Planning staff presenter Paul said the session was a follow-up to a September meeting and aimed to reconcile narrow code definitions with the flexible operations of modern startups. "This is a study session regarding start up technology companies in Smoky Hollow," Paul said. He described the specific plan's intent to attract creative and technology businesses and noted the challenge: traditional land-use categories and definitions can exclude businesses that mix research, small-scale manufacturing and office functions.

Why it matters: Smoky Hollow sits between residential neighborhoods and major industrial employers; the specific plan intentionally provides flexibility to encourage redevelopment and new uses. The commission's discussion weighed how to make the code usable for new businesses without removing protections for neighbors or public safety.

Key issues discussed: - Definitions and permit type: Staff presented a draft, intentionally broad definition for "startup" uses and proposed treating many non-bulky research-and-development activities as allowable by right or via a faster Administrative Use Permit rather than a Conditional Use Permit. Commissioners expressed support for a faster, lower-cost path in many cases but urged guardrails for operations that involve raw or hazardous materials.

- Hazardous materials and fire oversight: Paul said El Segundo's fire department enforces state thresholds for hazardous-material reporting and inspects businesses that exceed those thresholds. "All new businesses... are subject to the regulations on hazardous materials," he said, adding the fire department reviews business plans and inspects sites when thresholds are exceeded.

- Parking and parking-in-lieu fees: Staff summarized the Smoky Hollow approach: a single parking rate (one space per 400 square feet) for new buildings and a parking-in-lieu fee program for existing buildings that cannot provide required spaces. The fee has been calculated from a consultant's analysis of parking construction costs and is adjusted annually; staff said a limited number of properties have paid the fee.

Commissioner concerns and examples: Commissioners repeatedly returned to the practical risk that a startup that begins small could rapidly scale and impose parking pressure on surrounding streets. One commissioner cited a past example where a proposed use was forced into an expensive CUP process and therefore relocated; staff said that AUPs can be a lower-cost alternative that still allows staff and the commission to require studies and conditions when appropriate.

Options and staff direction: Staff asked for direction on three points: (1) whether some startup uses should be allowed by right, (2) whether limited prototyping and small-scale manufacturing could remain permitted without automatic CUPs, and (3) whether the city should allow parking reductions or discounts for startups. Commissioners generally favored a cautious approach: allow straightforward, low-risk service and R&D uses by right or via AUP, and require AUPs (or higher review) when raw materials, hazardous materials or larger-scale manufacturing are involved. Commissioners also asked staff to work with the fire department on disposal and handling details and suggested that language be revisited after an initial implementation period.

Next steps: Staff will refine the draft definition and code language, consult further with the fire department on hazardous-material thresholds and disposal, and return with a draft ordinance or regulatory options for formal consideration.

Ending: The item was a study session and was received and filed; no formal action or code change was adopted at the meeting.