Berkeley changes zoning to encourage growth in innovation sector

Berkeley By changing its zoning regulations to encourage businesses engaged in research and development to establish a permanent presence in the city, Berkeley is moving closer to its aim of “Keeping Innovation in Berkeley.”

On Tuesday, the Berkeley City Council decided to forbid level 3 and level 4 usage throughout the city, except to allow labs researching biosafety levels 2 in mixed-use light industrial zoning districts. The national Health and Human Services Department assigns a level 1 biosafety grade to laboratories that examine toxins or chemicals that are not known to cause diseases in healthy humans, while a level 2 rating indicates a considerable risk. Labs with biosafety levels 3 and 4 investigate substances that are more dangerous for the general public and require more stringent safety measures.

In addition to lowering parking requirements, the agreement stipulates unequivocally that research and development labs are allowed in Berkeley’s mixed manufacturing sector.

A zoning certificate that has been administratively authorized will allow research and development labs smaller than 20,000 square feet in locations surrounding U.C. Berkeley, including as downtown, North Shattuck Avenue, Telegraph Avenue, and the University Avenue commercial corridor. An administrative use permit, which would involve a public review procedure, would be required for spaces larger than 20,000 square feet.

Six of the top 25 businesses in the city carry out research and development in a variety of fields, such as biotechnology, climate technology, and the production of sound equipment. According to a map on the Berkeley Startup Cluster website, there are now over 400 innovation sector companies operating in Berkeley.

At Tuesday’s council meeting, Elizabeth Redman Cleveland, chief strategist of sustainable growth with the city’s Office of Economic Development, stated, “We’re really lucky we have such a diverse economy.” The amount of creativity in our city is quite fantastic.

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The council accepted a reference made by former Councilmember Rigel Robinson in September 2022, and Tuesday’s resolution completes that referral.

The most recent attempt by Berkeley council members to promote the expansion of the city’s innovation sector is zoning amendments. A 2019 tax exemption on government grants to small R&D firms was expanded to cover funds from philanthropic organizations, as the council decided in November.

The exemption now covers all grant amounts rather than only the first $1 million received, and it is available to businesses with gross receipts of no more than $100,000. Staff said the increased exemption would cause the city to suffer small financial losses, however during the past five years, roughly $45,000 in tax benefits had been distributed to 21 firms that met the requirements for the original exemption.

According to a staff analysis, the revised zoning laws may also result in a little rise in sales tax and business license revenue while lowering city staff time expenses.

According to Councilmember Ben Bartett, it’s critical to recognize that Washington, D.C., is poised to disrupt both the state and local economies. We have an obligation to do everything within our power to boost our economy as quickly as possible.

Councilmember Ben Bartlett supported the motion but emphasized the need for proper oversight, particularly in light of a recent audit that revealed nearly half of the city’s eateries were not inspected in 2023 because of a staffing deficit. Cleveland reassured the council that the city’s Toxics Management Team is one of many oversight organizations.

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Council members praised the plan as a sensible strategy for keeping creative companies and expressed faith in the city’s capacity to stop and address any risks.

In any case, Councilmember Mark Humbert stated, “I want to reassure people.” Although it may sound flippant, I believe it’s reasonable to argue that a restaurant with inadequate security is a greater risk than a lab that handles BSL 1 and 2 agents.

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