Millbrae council upholds finding that 370 Adrian Road's warehouse use was abandoned; appeal denied 5-0

Millbrae City Council on Dec. 2 unanimously denied an appeal and upheld a Planning Commission finding that a nonconforming warehouse and distribution use at 370 Adrian Road had been abandoned, citing utility and leasing records as the primary evidence.

Community Development Director Andy Mogensen told the council that the staff's review of lease documents, invoices and city utility records showed a prolonged period of zero metered water use and other gaps in activity. "There is no metered water use on the subject property during this period," Mogensen said during his presentation, summarizing attachments in the staff report that show zero water readings for most months in the relevant period.

The appellant, identified in the record as property owner Edward Kwan, argued the tenant Ocean View Marine Products intended to operate a seafood processing and distribution business, submitted zoning-clearance materials and had a pending business-license application in October 2024. Kwan said the tenant's limited activity (one part-time worker, storage and intermittent shipments from San Diego) and a PG&E account demonstrated ongoing business activity. "The email shows clearly an approval was given," Kwan said, pointing to correspondence in his appeal packet.

Staff and city legal advisers disputed that characterization. The city noted there was no complete business license issued, the fire authority would not perform an inspection because essential processing equipment had not been installed, and staff found the invoice dates and water-meter record insufficient to demonstrate continuous business operations required to preserve a nonconforming use under the municipal code.

Councilmembers questioned the parties on specific evidence: the timing of leases and subleases, sales-tax records (staff reported none found), invoice dates, and how the city's meters register usage. Mogensen said the city's records show a single month anomaly (about 200 cubic feet) amid long stretches of zero readings and that Lucid Motors had been using the site for vehicle parking since mid-2024, a use staff said is not the same as warehouse/distribution.

After deliberation under the municipal standard of "substantial evidence," Vice Mayor Oliver moved to deny the appeal to uphold the Planning Commission's resolution; Councilmember Nguyen seconded. The motion carried 5-0. The council's decision means the property must comply with the RC zoning and any future use will require appropriate approvals.

Mayor Fung and other council members urged the owner that, regardless of the decision, the city will assist with any lawful path forward such as applying for a zoning amendment or conditional-use permit. The council closed the special meeting shortly after 8:30 p.m.

Votes at a glance: Motion to deny the appeal and uphold the Planning Commission's determination of abandonment of the nonconforming warehouse/distribution use at 370 Adrian Road: passed 5-0 (Mayor Fung: yes; Vice Mayor Oliver: yes; Councilmember Nguyen: yes; Councilmember Riley: yes; Councilmember Rinaldi: yes).

What's next: The owner may pursue rezoning or other land-use applications if he seeks a different lawful use for the site.