Distribution and Fulfillment Centers

Distribution and Fulfillment Centers#DPA2017-00018

Planning Commission Work Session

Alexander Stanley

Planning Office

Distribution and Fulfillment Centers, #DPA2017-00018

Process:• March 21, 2017 – BOCS initiated Zoning Text Amendment

• Development Ordinance Review Advisory Committee (DORAC)– January 19, 2018

• Public Information Meeting – January 24, 2018

• Planning Commission Public Hearing – April 18, 2018

• Planning Commission recommended approval

• Board of County Supervisors Public Hearing – July 17, 2018

• Staff requested a deferral


Process:• Commercial Development Committee (CDC) – December 9,

2020

• Public Information Meeting – December 10, 2020

• Development and Ordinance Review Advisory Committee (DORAC)– December 11, 2020

• Planning Commission Work Session – February 17, 2021

• Planning Commission Public Hearing – TBD

• Board of County Supervisors Public Hearing – TBD


Initiation• To add a use type and definition for distribution and fulfillment

centers and include the distribution and fulfillment center use type in zoning districts, as appropriate.


Current Text• No defined use type for

distribution centers

• Zoning Administrator has identified Truck Terminal as best fit definition

• Truck Terminal is only allowed in M/T, Industrial Transportation

Proposed Text• Two new use types

• Distribution and Fulfillment

• Neighborhood Retail and Fulfillment

• Creation of an Overlay District

• Establishment of design standards


Why Distribution and Fulfillment?

• Increasing consumer demand for same-day or one-day service

• Advanced Logistics is a Prince William County Targeted Industry

• Distribution and Fulfillment Centers not currently defined and currently restricted to M/T under the Truck Terminal Definition

February 17, 2021

LOGISTICS & SUPPLY CHAIN

Target Industry Sectors

Life Sciences & Healthcare

Corporate and Federal Facilities

Entrepreneurial Ventures

Information Communication Technology

Federal Government Contracting

Opportunity Zones and Redevelopment Areas

Destination and Tourism Venues

Logistics and Supply Chain

Target Industry Program Benefits to the Business

• Qualify for County’s Economic Development Opportunity Fund grant program

• Cash grant provided by PWC Board of County Supervisors• Business cash can use for infrastructure, training, equipment,

upfit, building• Business commits to capital investment, job creation and

wages in a Performance Agreement• Reduced Site Permitting Fees

• 50% reduction in site fees• Fast Track Permitting

• Reduces review times by 50%• Dedicated Project Manager in Development Services

• Integrates efforts of the business’s team and the County reviewers to resolve issues and maintain schedule

Target Industry Study – Logistics and Supply Chain

• 2018 Camoin Targeted Industry Study• 5470 people employed in this sector in 2017• 11% projected job growth 2017 – 22• $65,685 average earnings• 441 establishments in PWC

“Growth in e-fullfillment has meant there is increased demand for logistics related infrastructure and real estate to serve the last milethat would fit well in Prince William County.”

“Strengths: Proximity to Dulles International Airport, access to major highways and less congestion compared to elsewhere in the region, proximity to major markets, overall industry growth potential (especially last mile opportunities) are all positive attributes and trends that are driving strength of the Logistics Cluster in Prince William County”

“Consumers spent $861.12 billion online with U.S. retailers in 2020, up 44.0% from $598.02 billion in 2019, according to the latest Digital Commerce 360 analysis. Online spending represented 21.3% of total retail sales last year, compared with 15.8% the year prior.”Digital Commerce 360 February 2021

“Research study found that for each incremental $1 billion growth in e-commerce sales, an additional 1.25 million sq. ft. of distribution space is needed to support this growth.”CBRE

”67% of U.S. consumers expect either same-, next-, or two-day delivery”Shopify, Future of E Commerce in 2021

E Commerce Industry Trends

https://www.statista.com/statistics/561768/fast-online-order-delivery-us-consumers/

Commercial Real Estate Availability

7.0

13.5

5.0

21.0

0.6

0.8

0.4

1.0

0.0

5.0

10.0

15.0

20.0

25.0

Mill

. Sq.

Ft.

49 Mill. SF Commercial Real Estate Space inPrince William County

Occupied AvailableSource: Costar®

Office Industrial Flex Retail

$26.11

$12.16 $13.66

$24.15

$38.15

$11.14

$14.76

$29.38

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00


Per S

q. F

t

Commercial Lease Rates inPrince William County

PWC DC Metro Source: Costar®

7.8%

5.3%

7.5%

4.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%


Commercial Vacancy Rates inPrince William County

Source: Costar®

0.8%

-1.6%

2.5%

0.4%

-2.0% -1.0% 0.0% 1.0% 2.0% 3.0%

Office

Industrial

Flex

Retail

Y/Y Change in PWC Vacancy RatesQ3 2020/2019

Source: Costar®

Balls Ford Road Warehouse & Distribution Corridor

& Virginia Inland Port

$145Million Interchange

-2022

Recent Logistics Projects in Prince William County

Amazon Last Mile Distribution Facility• 250,000 SF existing building• Rezoned from M1 to MT• 11910 Balls Ford Road

Amazon Last Mile Distribution Facility• 79,500 SF existing building• Rezoned from M1 to MT• 5533 Wellington Road

Recent Logistics Projects in Prince William County

International Gourmet Foods Headquarters and Warehouse• 135,000 SF• M1 Zoned land• 13405 Telegraph Road

Wayfair Warehouse• 170,000 SF• M1 Zoned industrial park• Merritt Park Drive

New Logistics & Distribution Product

& Virginia Inland Port

Parkway 66:• 7413 Cushing Rd.• 189K SF Class A Warehouse

Distribution • M-1 Zoning• Developer: MATAN Cos.

Becknell 66:• 8511 Virginia Meadows Dr.• 12.12 Acres, M-2 Industrial

Zoning• 108K SF Class A Industrial

Building• Delivered January 2021

Prince William County Snapshot

469,139Population 3Q2020

MWCOG Projections (2045)

Employment - 257,000 Population - 584,000

35.2 years median population age

$387,100Average cost of owning a home

Median household income of $129,640

30% Lower commercial lease rates than NoVa

117,277 at-place employment

(2Q2020)

4.9% unemployment (Nov. 2020)

Workforce with College

Degrees

6 higher education campuses

41,000 veterans delivering

elite military talent

Prince William County Department of Economic Development

(703) 792- 5500

Follow us on Twitter@PWCDED

www.pwcded.org

https://twitter.com/pwcded?lang=en

https://www.pwcded.org/


Potential Impact of Distribution and Fulfillment uses

• Transportation Infrastructure

• Potential change in character in commercial areas

• Potential impacts to local grocery stores.


Where are we in the process

• Established working group

• Meeting with individual stakeholders

• Balancing impacts vs. opportunities

• Revisions

Distribution and Fulfillment Center

Zoning Districts

M-2, Light Industrial

M-1, Heavy Industrial

M/T, Industrial Transportation

Is use permitted?

By-Right in overlay;SUP outside of overlay


By-Right

Overlay Size Limits

250,000 Square Feet

500,000 Square Feet

No Size limit

Development Standards

Yes, Above 150,000 Square Feet

Yes, Above 150,000 Square Feet

No

Neighborhood Retail and Fulfillment

Zoning Districts Commercial DistrictsB-1, B-2

Office DistrictsO(L), O(M), O(H), O(F)

Is use permitted? By-Right in overlay;SUP outside of overlay


Overlay Size Limits 30,000 Square Feet

30,000 Square Feet


Yes Yes

This Photo by Unknown Author is licensed under CC BY-SA

https://en.wikipedia.org/wiki/File:The_UPS_Store_in_Tanasbourne_-_Hillsboro,_Oregon.JPG

https://creativecommons.org/licenses/by-sa/3.0/

E-Commerce Overlay Map

• Overlay includes Office, Commercial, and Industrial Areas

• Properties should be located near roads classified as principal arterial or greater

• Limited available industrial land

• Properties may still need to be rezoned


Distribution and Fulfillment Center

• Applicable to M-1 and M-2 properties greater than 150,000 square feet

• New facilities are required to incorporate a minimum of two design features:

• change in building height• building step-backs or recesses• fenestration• change in building material, pattern,

texture, color• use of accent materials.

• Facades facing Manassas Battlefield Park shall be non-reflective and dark green or dark brown in color.

• Fencing standards

Neighborhood Retail and Fulfillment Center

• Sliding scale of retail component for the center depending on overall square footage.

• Delivery vehicles (except during loading or unloading), shall be screened from adjacent properties

• Building Uniformity



• Staff provided clarification on various questions.

• Over half a dozen changes made based on stakeholder and community feedback.

• Staff will continue to work with stakeholders and the community to improve upon the existing draft.

Feedback from public and committee meetings:


• Feedback?….

• For follow up questions & comments, please contact me directly:

[email protected]

(703) 792-7359

mailto:[email protected]

Documents

Distribution and Fulfillment Centers