Council reviews proposed M1/M2 zoning update to limit heavy industry in existing commercial areas

City Planner Kelly Schroeder walked the City Council through a multi-year process to revise Sheridan's industrial zoning and introduce a new M2 Heavy Industrial District at the Feb. 24 study session, describing the background, public outreach to property owners and businesses, proposed definitions of light and heavy industrial uses, and a recommended adoption schedule for Ordinance 22-87.

Schroeder said the current M1 Industrial District (dating to 1948) contains properties that are no longer industrial in character, notably the Coffeen Avenue corridor, which now hosts commercial, multifamily and some single-family uses. The city began a study in 2023 with a public open house in March 2024, consultant analysis and subsequent public hearings; Planning Commission held hearings and made a conditional recommendation to council in late 2024.

Under the current proposal, the M1 district would be revised to include heavy industrial uses on the list of activities that require a special-exemption review by the Board of Adjustment, rather than allowing any use by right. Schroeder said the change would place proposed heavy industrial uses in M1 under Board of Adjustment review and existing heavy uses that are legally established would remain nonconforming and could continue without a special exemption unless they sought to expand.

The M2 district would be adopted as a separate heavy industrial zone that allows both light and heavy industrial uses by right but prohibits retail and residential uses. Schroeder said the M2 district is intended for properties with good access to the Interstate, rail and utilities and would be the appropriate place for uses that are incompatible with nearby residences or commercial corridors.

Schroeder described the proposed heavy industrial definition to include intensive uses such as storage, processing or production of hazardous substances, incineration facilities (which the council clarified would include crematoriums), salvage yards and uses requiring DEQ permitting. She acknowledged subjectivity in some definitions and said the Board of Adjustment would evaluate context and make findings on public health, safety and welfare before granting special exemptions.

Council members raised concerns about Coffeen Avenue and asked staff about alternative tools, such as an overlay district or buffer zone, to more directly prevent heavy industrial uses in that corridor while avoiding forced rezoning of dozens of property owners. Schroeder said an overlay or buffer for Coffeen Avenue could be developed separately and with public input; she said the current M1/M2 proposal aims for a balance that does not immediately change most property owners' rights while creating procedural review for proposals that might introduce heavy industrial activity.

Schroeder told the council the Planning Commission recommendation is to approve the proposal and noted the ordinance is scheduled for a public hearing and first reading before City Council on March 3, with further readings tentatively scheduled for March 17 and April 7. Two letters of public comment were received; staff will include additional comments in the packet for next week.

No formal action was taken at the study session; the ordinance will proceed through the public hearing and reading process.