Land Use and Business Climate

The Chamber is working actively with its regional partners to ensure that Oakland’s regulatory environment, in particular its land use regulations and incentives, are consistent with its economic and business development goals.

In recent years, this has meant working actively with the City of Oakland to ensure the consistency between its zoning regulations and its 1998 General Plan. It has also meant working proactively with companies and developers to facilitate the re-use and modernization of existing commercial and industrial properties to higher and better uses.

The exhibit below shows Oakland’s 2002 acreage allotment plan by use. While amendments to this plan have been made over time, a more comprehensive, strategic approach is needed if Oakland is to succeed in growing its economy.

Land Distribution in Oakland

Oakland is not alone in this challenge. Cities across the US and around the world grapple with this issue. Transitioning real estate from one economic activity to another is expensive and time consuming and can result in land parcels lying fallow for decades. While this has certainly been the case in Oakland, the good news is that the market exists for the modernization and re-use of most, if not all, of Oakland’s available industrial and commercial real estate. The Bay Area commercial and industrial real estate market is robust and will be so for the foreseeable future. Opportunities exist in manufacturing (higher-value-added activities primarily), logistics, research and development (laboratories), and other types of activity outlined in this report.

To strategically position Oakland to capitalize on the market opportunities that exist, the Chamber is working actively with the City to focus immediately on clarifying the City’s land use policy. Doing so include:

1. Zoning for business uses. Businesses make decisions about where to locate themselves based on a level of assurance from municipalities that their entitlements to operate will continue. The City’s commitment to dedicated business lands can be achieved through exclusive business Zoning District(s), including districts for commercial and light industrial, office/industrial park settings, and general and heavy industrial districts. Certainty in zoning as well as a transparent regulatory process allow businesses to invest with confidence in their land, infrastructure, and facilities.

2. Resolving infrastructure issues. Intelligent design and the provision of public infrastructure appropriate to business operations should accompany land use policy decisions. This will involve prioritizing City-initiated capital improvements with an eye toward attracting and retaining high-growth companies to the City: Improvement of roadways to accommodate trucking and rail access; increases to capacity of water, gas, and sewer systems to fulfill food production and laboratory/R&D uses; and ensuring adequate electrical power capabilities to support digital media production and software and server needs of future businesses should be elements in redevelopment plans, following the direction set in the General Plan or subsequent studies.

3. Clarifying design and development standards. Design and development standards (e.g., setbacks, landscaping, buffering requirements) should be developed specific to business zoning districts. Considerations include the design and aesthetics of emerging industries (in the case of office industrial parks), as well as requirements for the loading and circulation of commercial vehicles. Fencing, yard standards, and border requirements at residential zone border areas should also consider the security needs of businesses and include buffering requirements for any new noncommercial development at a district’s borders, thus enabling a better business environment while improving environmental conditions for residents.

4. Updating land use classifications. New, contemporary land use classifications with appropriate definitions will encourage the location of new industries to Oakland. Such classifications will help City planners to make good land use decisions, based on a clear understanding of the needs of traditional industry as well as new emerging industries.