Zoning and Platting Commission – Oct. 6, 2026

02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 2 - Staff Report — original pdf

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ZONING CHANGE REVIEW SHEET CASE: C14-2026-0019 – Dalton Airport Overlay Rezoning DISTRICT: 2 ZONING FROM: I-RR ADDRESS: 1019 Dalton Lane PROPERTY OWNER: HPI Acquisition, LLC AGENT: Winstead PC (Micah King) ZONING TO: LI SITE AREA: 16.25 acres (707, 850 sq. ft.) CASE MANAGER: Cynthia Hadri 512-974-7620, Cynthia.hadri@austintexas.gov STAFF RECOMMENDATION: The staff recommendation is to grant limited industrial services – conditional overlay (LI-CO) combined district zoning. The conditional overlay will prohibit the following uses: • Basic Industry • Custom Manufacturing • Drop-Off Recycling Collection Facility • Light Manufacturing • Recycling Center • Resource Extraction • Scrap and Salvage ZONING AND PLATTING COMMISSION ACTION / RECOMMENDATION: October 6, 2026: CITY COUNCIL ACTION: ORDINANCE NUMBER: ISSUES: The applicant is amenable to staff’s recommendation of LI-CO with the prohibited uses listed above. CASE MANAGER COMMENTS: The property in question is approximately 16.25 acres, developed with a plant nursery with access to Dalton Lane, an ASMP level 2 street and Sherman Road an ASMP level 1 street. The site is currently designated interim – rural residential (I-RR) combined district zoning. 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 21 of 10 C14-2026-0019 2 The surrounding zoning patterns consist of light industrial, commercial and automotives uses, single family residential and mobile home parks (I-RR; I-SF-2; CH-CO; CS-CO; LI- CO; MH). Please refer to Exhibits A (Zoning Map) and B (Aerial View). The applicant is requesting limited industrial services – conditional overlay (LI-CO) combined district zoning to allow for a broader range of uses that align with the existing developments in the area. Please refer to Exhibit C (Applicant’s Summary Letter). BASIS OF RECOMMENDATION: 1. The proposed zoning should be consistent with the purpose statement of the district sought. The limited industrial service district is intended as an area primarily for commercial services and limited manufacturing uses, generally on moderately sized sites. The conditional overlay combining district may be applied in combination with any base district. The district is intended to provide flexible and adaptable use or site development regulations by requiring standards tailored to individual properties. 2. Zoning changes should promote compatibility with adjacent and nearby uses. Limited warehousing and distribution zoning is generally a low intensive, low traffic generating land use. With the addition of the prohibited uses in the conditional overlay restricting the more intensive land uses on the property, the environmentally sensitive property will have a lower impact from the future land use. The recent rezonings in the area, along with the current request, promote compatibility with adjacent and nearby uses. EXISTING ZONING AND LAND USES: Site North South East West ZONING I-RR LI-CO I-SF-2; MH; RR I-SF-2; CS-CO I-RR; CH-CO LAND USES Crop Production – Plant Nursery Automotive uses Mobile Home; Single Family Residential Mobile Home; Single Family Residential; Venue Undeveloped; Plant Nursery NEIGHBORHOOD PLANNING AREA: N/A WATERSHED: Carson Creek CAPITOL VIEW CORRIDOR: No SCENIC ROADWAY: No SCHOOLS: Del Valle Independent School District Gilbert Smith Elementary School John P. Ojeda Middle School Del Valle High School 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 22 of 10 C14-2026-0019 3 COMMUNITY REGISTRY LIST: Austin Neighborhoods Council Del Valle Community Coalition Del Valle Independent School District Friends of Austin Neighborhoods Homeless Neighborhood Association AREA CASE HISTORIES: Imperial Neighborhood Association Overton Family Committee Richland Estates Neighborhood Organization NUMBER C14-2008-0227 – Live Oak Brewing Co. – 1615 Crozier Ln C14-99-0134 - Dalton Lane General Partnership C14-02-0145 - Insurance Auto Auctions, Inc. C14-2019-0019 – Capitol Manor Mobile Home Park C14-2021-0040 – 1501 Crozier Ln Zoning REQUEST I-RR to LI COMMISSION To Grant LI-CO I-RR to LI To Grant LI-CO I-RR to LI To Grant LI-CO (date) I-RR to MH Withdrawn due to Property’s location within Airport Overlay Zone – 3 Not applicable I-RR to CS-CO I-RR to MH Withdrawn due to Property’s location within Airport Overlay Zone – 3 Not applicable To Grant CS-CO (09/7/2021) CITY COUNCIL Approved LI-CO as Zoning and Platting Commission Recommended (2-12-2009). Approved LI-CO Zoning and Platting Commission Recommended (2/1/2001) Approved LI-CO as Zoning and Platting Commission Recommended (2/13/2003) I-RR to MH Withdrawn due to Property’s location within Airport Overlay Zone – 3 Not applicable Approved CS-CO as Zoning and Platting Commission Recommended (10/29/2021) RELATED CASES: There are no related case. ADDITIONAL STAFF COMMENTS: Comprehensive Planning: Project Name and Proposed Use: 1019 DALTON LANE. C14-2026-0019. Project: Dalton Airport Overlay Rezoning. 16.25 acres from I-RR to LI. Existing: crop production. Proposed: 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 23 of 10 C14-2026-0019 4 limited warehousing and distribution. Note that the site is located within the Airport Overlay (AO-3). Yes Imagine Austin Decision Guidelines Complete Community Measures * Imagine Austin Growth Concept Map: Located within or adjacent to an Imagine Austin Activity Center, Imagine Austin Activity Corridor, or Imagine Austin Job Center as identified the Growth Concept Map. Names of Activity Centers/Activity Corridors/Job Centers *: Mobility and Public Transit *: Located within 0.25 miles of public transit stop and/or light rail station. Mobility and Bike/Ped Access *: Adjoins a public sidewalk, shared path, and/or bike lane. Connectivity, Good and Services, Employment *: Provides or is located within 0.50 miles to goods and services, and/or employment center. Connectivity and Food Access *: Provides or is located within 0.50 miles of a grocery store/farmers market. Connectivity and Education *: Located within 0.50 miles from a public school or university. Connectivity and Healthy Living *: Provides or is located within 0.50 miles from a recreation area, park or walking trail. Connectivity and Health *: Provides or is located within 0.50 miles of health facility (ex: hospital, urgent care, doctor’s office, drugstore clinic, and/or specialized outpatient care.) Housing Choice *: Expands the number of units and housing choice that suits a variety of household sizes, incomes, and lifestyle needs of a diverse population (ex: apartments, triplex, granny flat, live/work units, cottage homes, and townhomes) in support of Imagine Austin and the Strategic Housing Blueprint. Housing Affordability *: Provides a minimum of 10% of units for workforce housing (80% MFI or less) and/or fee in lieu for affordable housing. Mixed use *: Provides a mix of residential and non-industrial uses. Culture and Creative Economy *: Provides or is located within 0.50 miles of a cultural resource (ex: library, theater, museum, cultural center). Culture and Historic Preservation: Preserves or enhances a historically and/or culturally significant site. Creative Economy: Expands Austin’s creative economy (ex: live music venue, art studio, film, digital, theater.) Workforce Development, the Economy and Education: Expands the economic base by creating permanent jobs, especially in industries that are currently not represented in a particular area or that promotes a new technology, and/or promotes educational opportunities and workforce development training. Industrial Land: Preserves or enhances industrial land. • Limited warehousing & distribution Not located over Edwards Aquifer Contributing Zone or Edwards Aquifer Recharge Zone Number of “Yes’s” Y Y 2 Drainage: The developer is required to submit a pre- and post-development drainage analysis at the subdivision and site plan stage of the development process. The City’s Land Development Code and Drainage Criteria Manual require that the Applicant demonstrate through 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 24 of 10 C14-2026-0019 5 engineering analysis that the proposed development will have no identifiable adverse impact on surrounding properties. Environmental: The site is not located over the Edwards Aquifer Recharge Zone. The site is in the Carson Creek Watershed of the Colorado River Basin, which is classified as a Suburban Watershed by Chapter 25-8 of the City's Land Development Code. The site is in the Desired Development Zone. Under current watershed regulations, development or redevelopment on this site will be subject to the following impervious cover limits: Development Classification % of Gross Site Area Single-Family (minimum lot size 5750 sq. ft.) Other Single-Family or Duplex Multifamily Commercial 50% 55% 60% 80% % of Gross Site Area with Transfers 60% 60% 70% 90% According to floodplain maps there is a floodplain within the project location. Based upon the location of the floodplain, offsite drainage should be calculated to determine whether a Critical Water Quality Zone exists within the project location. Standard landscaping and tree protection will be required in accordance with LDC 25-2 and 25-8 for all development and/or redevelopment. At this time, site specific information is unavailable regarding vegetation, areas of steep slope, or other environmental features such as bluffs, springs, canyon rimrock, caves, sinkholes, and wetlands. Under current watershed regulations, development or redevelopment requires water quality control with increased capture volume and control of the 2 year storm on site. At this time, no information has been provided as to whether this property has any preexisting approvals that preempt current water quality or Code requirements. Fire: There are no comments. PARD – Planning & Design Review: Parkland dedication fees may apply to any future site or subdivision applications resulting from this rezoning. As of January 1, 2024, new commercial, non-residential uses are not subject to parkland dedication requirements at the time of site plan and subdivision. 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 25 of 10 C14-2026-0019 Site Plan: 6 All comments regarding the effects of the proposed rezoning on subsequent Site Plan Review applications are intended to assist in identifying potential development constraints but do not include all regulations which may affect a specific proposal. Changes to property boundaries and requests for development cannot include all regulatory limitations which may apply to a specific subject to modification or reconsideration if affected by a change in property boundaries or if development is proposed on only a portion of the land proposed for rezoning. These comments are intended to assist in identifying potential development constraints, but do not address the actual restrictions which will apply to a specific development proposal. Austin Development Services offers a variety of pre-application review options to assist in evaluating specific development proposals prior to Site Plan Application. Site plans will be required for any new development except for residential only project with up to 4 units. Any new development is subject to Subchapter E. Design Standards and Mixed Use. Additional comments will be made when the site plan is submitted. The site is located within Austin-Bergstrom Overlay AO-3. No uses will be allowed that create electrical interference with navigational signals or radio communications between airport and aircraft, make it difficult for pilots to distinguish between the airport lights and others, result in glare in the eyes of pilots using the airport, impair visibility in the vicinity of the airport, create bird strike hazards or otherwise in any way endanger or interfere with the landing, taking off, or maneuvering of aircraft intending to use the Austin-Bergstrom Airport. Height limitations and incompatible uses with each Airport Overlay zone are established in the Airport Overlay Ordinance. Airport Hazard Zoning Committee review may be required prior to Planning Commission Hearing. Austin Transportation Department – Engineering Review: The Austin Strategic Mobility Plan (ASMP) calls for 58 feet of right-of-way for Sherman Rd. It is recommended that 29 feet of right-of-way from the existing centerline should be dedicated for Sherman Rd. according to the Transportation Plan with the first subdivision or site plan application. [LDC 25-6-51 and 25-6-55]. The Austin Strategic Mobility Plan (ASMP) calls for 84 feet of right-of-way for Dalton Ln. It is recommended that 42 feet of right-of-way from the existing centerline should be dedicated for Dalton Ln. according to the Transportation Plan with the first subdivision or site plan application. [LDC 25-6-51 and 25-6-55]. 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 26 of 10 C14-2026-0019 7 Existing Street Characteristics: Name ASMP Classification ASMP Required ROW Existing ROW Existing Pavement Sidewalks Bicycle Route Capital Metro (within ¼ mile) Dalton Ln. Sherman Rd. Level 2 84’ 61’ 23’ Level 1 58’ 48’ 17’ No No Yes No No No Austin Water Utility: No comments on zoning change. FYI: The landowner intends to serve the site with existing City of Austin water utilities. Depending on the development plans submitted, water and or wastewater service extension requests may be required. All water and wastewater construction must be inspected by the City of Austin. For more information pertaining to the Service Extension Request process and submittal requirements contact the Austin Water SER team at ser@austintexas.gov. INDEX OF EXHIBITS AND ATTACHMENTS TO FOLLOW: A. Zoning Map B. Aerial Map C. Applicant’s Summary Letter Correspondence from Interested Parties 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 27 of 10 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 28 of 10 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 29 of 10 600 W. 5th Street Suite 900 Austin, TX 78701 512.370.2800 OFFICE 512.370.2850 FAX winstead.com Micah King direct dial: 512-370-2814 , 2026 Lauren Middleton-Pratt Director, Planning Department City of Austin 6310 Wilhelmina Delco Drive Austin, TX 78752 Re: Rezoning Application (“Application”) for 1019 Dalton Lane (the “Property”) Dear Mrs. Middleton-Pratt: This Application is to rezone the Property from I-RR to LI. The Property is located just east of the SH 71 - US 183 interchange, approximately 0.5 miles east of the airport, within Airport Overlay Zone 3 (“AO-3”), which is an area of land use control designed to ensure compatibility with the airport. The AO-3 zone permits industrial and commercial uses but restricts residential uses. The Property is ideally situated for warehousing and distribution given its proximity to major highways and the airport, with access to SH 71 and US 183, and the zoning would be consistent with the industrial designation of adjacent properties on the Airport Future Land Use Plan, a component of the Austin-Bergstrom International Airport Master Plan. The zoning would be consistent with: (i) the warehousing, distribution, and custom manufacturing uses on a 60-acre tract of land zoned CH-CO to the northwest; (ii) LI-CO-zoned properties to the north; and (iii) the City’s industrial facility on the abutting 46-acre tract of land to the east, which the City purchased for the storage of construction materials and recycling (the City’s RCA for the acquisition described it as being “in an industrial area”). Under existing zoning, up to nine new residences could be constructed due to an exception from AO-3 use restrictions on part of the Property. Upon rezoning, residential uses would become completely prohibited, thereby advancing Council policy against new residential uses in AO-3. Thank you for your assistance. Sincerely, Micah J. King 02 C14-2026-0019 - Dalton Airport Overlay Rezoning; District 210 of 10