Industry and the City of Menifee: More discussion needed

One of the few industrial buildings in Menifee is Commerce Pointe, located south of Scott Road on Zeiders Road.

 
By Doug Spoon, Editor

In one corner you have the “slow growth” activists, who seem to fear the possibility of Menifee becoming some form of Moreno Valley or Perris South.

In the other corner are the “experts” – the industrial real estate brokers who claim that severe restrictions in development will ultimately cost the City potential jobs, tax revenue and land value.

As this wrestling match over the future of Menifee’s economic development corridors continues, it appears that the only real victory will be what the British call a draw. Each side scores some points, but they have to share in the responsibility and the rewards.

The latest round came Thursday night in a special City Council meeting called to hear recommendations from staff based on previous input from a July 7 meeting on the same subject. The question is whether to amend the City’s General Plan to place more limitations on industrial center development.

This kind of development is allowed only within the five economic development corridors (EDC) in the City – not in your back yard. Even so, concern has been voiced on social media by residents and in Council chambers by Council members that a shift in the market toward larger centers should require the City to be more restrictive toward applicants of business parks, warehouses and distribution centers.

The folks in this corner say they fear the constant presence of big-rig trucks on City streets, increased noise, and what they generally consider to be the ugly image projected upon motorists driving past huge distribution centers in Perris and communities to the north.

The brokers – many of whom spoke eloquently in Thursday’s meeting – counter by saying those images are exaggerated and in many cases just plain false. They say that further limits on the size and layout of industrial buildings will eliminate much of a market that is moving away from smaller business parks.

There is a way to do this without making Menifee’s EDCs a maze of Amazon-size warehouses and centers, they say. And it does not include taking away the potential of the City Council’s focus in these proposed limitations – the City’s Southern Gateway.

City officials have acknowledged the economic benefits of bringing in larger industrial centers to the Northern Gateway – areas along the Ethanac Road corridor and Highway 74, where businesses already have an industrial feel and where residences are more set apart. But expressing concern for the areas north and south of Scott Road in the southern part of the city, the following limitations were suggested in a discussion item on Thursday’s agenda:

-- Update land use descriptions in the general plan and development code.

-- Expand the EDC Community Core boundary farther south from Garbani Road to Scott Road and place a maximum building size of 50,000 square feet for warehouse and distribution primary uses there.

-- Clarify the type of Development that would be allowed in the Business Park and EDC Southern Gateway and place a maximum building size of 100,000 square feet for warehouse and distribution primary uses there.

-- Amend the Permitted Land Use Table of the development code to be consistent with the changes listed above.

The staff report to council also stated that “staff sees a need to modify the land use descriptions listed above to clarify how ‘business park’ is intended in the EDC, the use tables in the Development Code to address general warehousing, distribution and storage, and the boundaries of the EDC-CC/SG. The City’s vision has been to allow warehousing/logistics and large manufacturing in the EDC Northern Gateway and Heavy Industrial zones. However, the intent of Business Park and the EDC Southern gateway is to allow incubator, light industrial and office uses.”

It is unclear, however, how the City’s “intent” and “vision” for the EDC Southern Gateway translates to what is written in the current General Plan regarding EDCs in the City. The staff presentation noted that the Northern Gateway EDC is designated to be 95 percent industrial, while the Southern Gateway EDC is to be 70 business park. But exactly how is “business park” defined?

Mayor Bill Zimmerman and Mayor Pro Tem Lesa Sobek have been the two most outspoken council members in favor of preserving the “business park” feel for the Southern Gateway, with generally smaller buildings needing fewer truck loading docks. They seem to believe that even further restrictions need to be made on the Southern Gateway to ensure the environment they are looking for.

Zimmerman made it clear in Thursday’s meeting that he believes more space in the Community Core EDC and the Southern Gateway EDC should be devoted to retail centers – even though the applications the City is receiving for virtually all properties in those zones is for industrial buildings.

“I still feel …and I know people say there’s no way retail is going to come here … but I hear in HOA meetings and club meetings I attend that the people want us to attract sit-down restaurants and other retail," Zimmerman said. "We speak for the people, but I know ecommerce is having a change. I wish I had a crystal ball.”

Brokers speaking at the meeting told council members that limiting the size of industrial buildings would preclude most businesses from coming into the city, eliminating the possibility of jobs here. The market now calls for industrial centers much more than business parks featuring primarily office space, they say.

“Developers are coming to Menifee with plans, but the demand has changed dramatically,” said Gordon Mize, a senior vice president with Lee & Associates brokerage firm. “The changes you’re talking about would have an adverse effect on future development.”

Charley Black, also a senior vice president with Lee & Associates, expressed similar concern.

“Since 2010, you’ve had only four of these centers come here,” Black said. “It’s unexplainable why you’re already pumping the brakes. Let the market dictate things a little more. Yes, centers need truck wells, but we’re not saying they need 100 loading docks, like an Amazon plant. Docks are not evil; they are a necessity in doing business in today’s world.”

The two main points of contention are the limit in size of buildings to 100,000 square feet and the extension of the Community Core EDC (emphasizing retail) from Garbani south to Scott Road. Here’s where it appears there is a split in the opinions of council members.

Bob Karwin and Matt Liesemeyer both expressed concern in limiting the size to 100,000 square feet, and Dean Deines admitted that the comments of the brokers who spoke “was an education for me” and “square footage of the lots would be worth further discussion.”

“The problem I have with a firm policy on size is that it requires us to carve out an exception if a larger one we like comes along,” Karwin said. “It seems like an arbitrary 'no' that doesn’t take into account market standards.”

And for the record, not all Menifee residents are opposed to industrial centers. Betty Bouris, a longtime resident who lives adjacent to the Southern Gateway corridor and was on the City’s General Plan Advisory Committee, echoed Karwin’s sentiments.

“I think 100,000 square feet is very limited,” she said. “You can also have 200, 250 if needed.”

On the other hand, there are the many residents who comment on social media that they don’t want “big boxes” coming to spoil their rural land.

Overall, there appears to be a lot of confusion and lack of understanding about what is happening with the industrial real estate market and how that really affects such an attractive location as Menifee. It would seem helpful to provide a forum including a more detailed description of the kind of businesses that are interested in coming here, along with a simpler explanation of the current City standards and proposed amendments.

Such a forum should give everyone an equal opportunity for comment and questions. This should be held in a public place and broadcast on a platform with a wide audience, to inform as many residents as possible. Menifee 24/7 hereby volunteers to moderate the discussion and provide the social media platform if a suitable location for the forum can be found.

This deserves more discussion, but it must be a broader discussion. Our offer is on the table.