HomeMy WebLinkAboutPZ - Narrative (VTRE Industrial) T � T
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IWONovember 4, 2025
Meridian Community Development Department
Attn: Nick Napoli,Associate City Planner
33 E. Broadway Ave.
Meridian, ID 83642
RE: VTRE Light Industrial and Flex Space Project, 5201 and 5035 W. Franklin Road
Dear Planning Staff, Planning and Zoning Commission, Mayor, and Council:
VanTrust Real Estate ("WRE") is pleased to present a new 300,000 square foot light
industrial and flex space development (the "Project") on 22.3 acres of land at 5201 and 5035 W.
Franklin Road, within the Ten Mile Specific Area Plan in the southwest corner of the intersection
of W. Franklin Road and N. Black Cat Road(the "Property"). To facilitate this development, we
are requesting approval of two land use applications: Annexation and Zoning to I-L and a UDC
Code Amendment to adjust the requirement for separate office space in the I-L zone. If the Council
approves these applications, then we will submit a preliminary plat application for road dedication
and property boundary revision for approval before development can proceed.
VTRE is a national,family-held real estate development firm headquartered in Kansas City
with regional offices in Dallas, Phoenix, Jacksonville, Salt Lake City, and Columbus. Backed by
the Van Tuyl family as its source of equity, VanTrust has the financial strength and long-term
stability to deliver complex, high-quality projects across multiple markets. Since 2010, the
company has developed more than $8 billion in projects totaling over 73 million square feet
nationwide, including several successful industrial and office developments across the west, most
recently in Utah. With plans to initiate over $1 billion in new project starts next year, VanTrust
continues to be a reliable, proven partner for communities and municipalities—committed to
delivering developments that create lasting value and support sustained economic growth.We look
forward to working with the City of Meridian for our first development in Idaho.
Property and Project Overview
The Property is currently located in Ada County within the Meridian Area of City Impact
and is zoned Rural Urban Transition. It is contiguous to city limits to the south and east. The area
around the Property is in the process of transitioning from agricultural and residential uses to light
industrial and commercial, due in part to its proximity to I-84 less than half a mile south.
This Project supports the area's transition by providing a strategically planned light
industrial and flex space campus designed to meet the evolving needs of Meridian's growing
economy, promote economic diversification, and drive responsible growth along the Franklin
corridor.This type of development product remains a significant need within the local market,with
vacancy rates under 5% and limited modern flex space inventory across the region. The tenants
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IWOthis Project is designed to attract include e-commerce, logistics, advanced manufacturing and
technology companies along with local trades and professional services businesses with
warehousing needs—all quality employers in target industries based on the City's comprehensive
plan. Many such companies in higher cost markets like Seattle, Portland, and San Francisco are
looking to relocate or expand their businesses and are seeking versatile, modern facilities such as
those included in the Project.
Supported by tenant market research conducted in the Treasure Valley,the Project proposes
over 300,000 square feet of light manufacturing and assembly, flex space, and warehouse and
distribution space in a combination of two larger buildings (96,480 square feet) and six smaller
buildings (two 26,000 square feet and four 16,500 square feet). Based on a July 2025 survey of
jobs in similar flex light industrial spaces in Boise and Meridian, this Project is expected to create
over 575 jobs, or about 1.91 jobs per 1,000 SF, with over$26M in annual payroll impact.
As indicated in the site plan in Figure 1, the Project provides ample pedestrian walkways
and safe street design for the new collector road and its connections to internal drive aisles. The
site's design promotes the City's connectivity goals, with facilities for the safe movement of
bicycles and pedestrians along the collector that crosses the site.
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Figure I Site Plan
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IWOTen Mile Interchange Specific Area Plan ("TMISAP") and City Goal Alignment
The Project is located on the western edge of the TMISAP in an area designated as Low
Density Employment("LDE")and Mixed Employment("ME").The comprehensive plan provides
that land use designations are not parcel-specific, and an adjacent land use designation may be
used for a development area.' Because 60% of the Property (13.5 acres) is designated LDE and
the LDE designation borders the Property on the north, south, and east, we ask that the entire
Project be considered as LDE for purposes of this application.
The Project site is located southeast of land designated in the TMISAP as Industrial,
making the Project's proposed mix of light industrial uses in modular spaces with commercial
building quality an ideal transition between the higher density commercial and residential uses in
the core of the TMISAP to the east and the more intensive industrial uses planned to the west. This
area is close enough for those who live in the TMISAP core to bike or use transit for access to the
employment opportunities this Project offers. The Project is located on Valley Regional Transit's
route 42,which has a stop within a quarter-mile at the northeast corner of the Property at N. Black
Cat and W. Franklin.
The stated mission of the TMISAP is to "create a place that will add to the long-term
economic stability of the City of Meridian."2 This Project helps to fulfill that mission by creating
needed space for local and regional businesses to grow on a public transit line and in an area with
planned transportation improvements to facilitate easy commuting from nearby residential areas.
Staff comments early on in this process identified the Industrial land use designation as one
for the applicant to consider via a comprehensive plan land use map amendment. However, we
believe LDE is a better fit than Industrial for a few different reasons. First, the Industrial
designation is characterized by a smaller workforce,3 while this Project is designed to create more
employment intensity with the mix of smaller buildings and modular spaces. Second, the uses
proposed are not noxious or"nuisance"uses like more intense industrial developments. Third,the
Project's landscaping and architecture are more intentional than that of a traditional industrial area,
with extensive streetscaping and architecture that includes storefronts along the northern arterial
and future transecting collector. The buildings along Franklin are oriented to create the kind of
streetscape that will blend seamlessly with surrounding future commercial development and create
an inviting appearance as contrasted with typical industrial development. The Project's small
loading docks are oriented to the interior of the site, screened from view from abutting streets.
The TMISAP and the LDE designation support the Project's proposed I-L zoning and uses.
The TMISAP's zoning matrix in Figure 2, excerpted below, identifies I-L zoning as a "Best
Choice" for the LDE designation.4 The Project proposes specialized employment areas like
facilities that can accommodate research and development aligned with LDE's intended uses and
provides flexible sites for family wage employment.
' Comprehensive Plan,p. 3-11.
2 TMISAP,p. 3-3.
3 TMISAP,p. 3-11.
'TMISAP,pp.2-5 and 2-6.
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IWOThe Project also includes elements of a more modern neighborhood design aligned with
the LDE designation and includes buildings that range in height from 1-3 stories, floor areas under
150,000 square feet, and FARs of less than 0.75.5 The proposed new collector road on the Property
Zoning District Computability Matrix,Continued
ReMdenllal Commercial Industrial TradMonal
Existing City Zoning District R-2 R-4 R-8 R-15 R-40 C-N I C-C I C-G I L-O I-L 1-H O-T TN-C I TN-R
LOW DENSITY EMPLOYMENT
FAR:c0.75:1-3 stories • • • • •
Uses: Office � • • • • � • •
Research '' • •
Table Legend
Permitted Use Best Choice
Conditional Use Possible Choice
C Accessory Use Marginal Choice
Figure 2 Excerpt of TMISAP Zoning District Compatibility Matrix
will include a streetscape consistent with the Street Section C type indicated in the TMISAP, with
detached sidewalks, tree lawns, and streetlights so pedestrians and bicyclists can travel safely.6
The Project's landscape buffering and screening is designed to meet plan standards,and the Project
will be fully integrated with both the existing and planned transportation network. At the same
time, this development is consistent with the modern light industrial aesthetic becoming
increasingly popular in urban areas.
The TMISAP and the comprehensive plan both articulate in numerous areas the need to
support light industrial and flex space development, create quality employment opportunities,
enhance the City's tax base through clean and modern industrial development, and attract
businesses supporting regional economic growth. This Project furthers these objectives. The
Project is aligned with the Business and Economic Vitality goal in the City's 2021-2025 Strategic
Plan. It is designed to recruit and retain business in the technology and light manufacturing space
to provide a balanced economic base, and it supports business development that increases family
wage jobs in the City.
Applications and Applicable Criteria
Annexation and Zoning with Development Agreement
To allow the development of the Project,we request Annexation and Zoning of the Property
to I-L. The Project meets the Annexation and Zoning criteria as follows:
First, the map amendment complies with the applicable provisions of the Comprehensive
Plan. The I-L zone is allowed and desired in the Low Density Employment land use designations
of the TMISAP. The applicant agrees to limit the uses in the Project to those that align with the
TMISAP's employment goals with the recordation of a development agreement on the Property.
The Project will not include standalone storage facilities or self-storage,contractor's yards,vehicle
'TMISAP,p. 3-9.
'TMISAP,p. 3-22.
See,i.e.,TMISAP pp. 3-3,3-9,3-11,3-12,4-2,4-4;Comprehensive Plan pp.2-11,2-14.
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IWOimpound yards, indoor recreation facilities or vehicle sales and rentals. The Project is designed to
attract a higher density of jobs than typical warehouse-based or distribution oriented industrial
projects. The Project is also aligned with numerous goals of the comprehensive plan as follows:
2.06.00 Enhance Meridian's economic vitality The Project will provide needed light
and position in the local and regional industrial and flex space for local and regional
economy. business growth and bring over 575 jobs to
the City in the light industrial sector.
2.06.OID Encourage environmentally friendly The proposed uses for the Project are low
industries. environmental impact without significant
industrial waste or pollution.
2.06.01E Focus on developing industries that The Project's flexible spaces are designed to
tend to exceed the living wage, such as attract technology and manufacturing
technology, healthcare and other similar companies and provide living wage jobs.
industries.
2.08.02 Pursue economic development Approval of this Project will support the
opportunities with technology, healthcare, growth of light industrial and technology
environmentally friendly manufacturing, light companies looking to grow in Meridian.
industrial, and professional service industries.
2.08.02E Capitalize on the City's central The Project includes smaller scale buildings
location by promoting more tourism and on W. Franklin with commercial-quality
business growth along entryways and key frontage and landscaping improvements
corridors. designed to enhance this arterial corridor.
3.03.00 Direct and prioritize development in The Project is located within the TMISAP, is
strategic areas and in accordance with compatible with surrounding uses, and aligns
corridor and special area plans. with the plan's goals for job creation and
neighborhood design.
3.03.02 Prioritize growth and development The Project directs low-intensity, light
where it furthers the City's vision and allows industrial growth into an area designated in
for the efficient provision of services. the TMISAP for such growth. It also provides
a transitional property between residential and
commercial to industrial development.
3.03.03 Annex lands into the corporate The Project is adjacent to city limits and
boundaries of the City only when the within the area of impact, making it
annexation proposal conforms to the City's appropriate for annexation. City sewer
vision and the necessary extension of public services are available for connection at W.
services and infrastructure is provided. Franklin Road and utilities are already present
on site.
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IWO3.03.03D Require all development to be The Project is consistent with the Low
consistent with Future Land Use Map Density Employment designations of the
designations for the property. TMISAP, as is the requested I-L zoning as
indicated in the land use matrix.
3.03.03E Require all development to be The Project site is contiguous with the City.
contiguous to the City.
3.07.02C Focus development and At the intersection of two major arterials,
redevelopment intensity on key transportation Franklin Road and Black Cat Road, the
corridors. Project site is ideally situated for the desired
tenants for easy transport of goods and
services.
3.07.02D Pursue transit-supportive densities The Project provides more job density than
of residential and employment uses along key other large square footage warehouse-based
multi-modal corridors. projects, supporting transit services along the
Franklin Road corridor.
4.04.OIA Ensure that new development and The Project includes an extension of
subdivisions connect to the pathway system. Meridian's pathway through the site along the
future collector and enhances connectivity.
5.01.OIA Foster a walkable and bikeable The Project's new collector road is designed
community through good site and street to meet City standards, and open space
design. provides for walkability.
6.01.02C Require new development to The Project provides a new collector road and
establish street connections to existing local provides for a future connection to adjacent
roads and collectors as well as to property.
underdeveloped adjacent properties.
Second, the map amendment complies with the regulations outlined for the proposed
district, specifically the purpose statement. The purpose statement of the I-L zone is "to provide
for convenient employment centers of light manufacturing, research and development,
warehousing, and distributing. In accord with the Meridian Comprehensive Plan,the I-L district is
intended to encourage the development of industrial uses that are clean,quiet and free of hazardous
or objectionable elements and that are operated, entirely, or almost entirely, within enclosed
structures. Accessibility to transportation systems is a requirement of this district." This Project
aligns with that purpose statement by providing multiple sizes of light industrial uses targeted for
research and development, warehousing and distribution, and light manufacturing companies as
well as technology companies seeking flexible spaces. The applicant agrees to limit the uses in the
zone to those that are clean, quiet, and free of hazardous elements. The Project is located adjacent
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IWOto a major transportation arterial in Franklin Road and is close to Black Cat Road providing for
easy access to the interstate.
Third, the map amendment will be beneficial to the public health, safety, and welfare. The
Project's annexation and zoning to I-L will facilitate job creation, economic diversification, and
responsible development along a major transportation corridor. Development of the Project will
improve connectivity with pathways in the area that are safe for bicyclists and pedestrians. The
development agreement for the Project will limit uses consistent with the City's plans for the
Property.
Fourth, the map amendment shall not result in an adverse impact upon the delivery of
services by any political subdivision providing public services within the City including, but not
limited to, school districts. This light industrial development will provide jobs for Meridian
residents without the direct impact on schools that occur with a residential project. The buildings
will be fire sprinklered, and the development will pay impact fees for fire, police, and parks and
recreation facilities.
Fifth, the annexation is in the best interest of City. This Project is needed in the City of
Meridian to address shortages in flex space and low vacancy rates of light industrial properties. It
will support jobs for Meridian citizens, opportunities for expansion for Meridian businesses, and
tax revenues for the City.
With the annexation and zoning application, we request City Council approval of the
waiver to the 25' landscape buffer requirement between the I-L zone and the adjacent residential
zoned property to the east, in accordance with UDC § 11-3B-9(C)(2). The contiguous parcel to the
east, while currently zoned RUT in Ada County, is likely to redevelop into a nonresidential use in
the near future. The parcel to its immediate south is already in the process of developing with I-L
zoning and the landowner has indicated their interest in selling to a commercial or light industrial
developer. In light of the neighborhood's transition to those uses contemplated by the TMISAP,
we request a reduction to the required landscape buffer to 10 feet for where it would be required
along the eastern edge of the Project site, consistent with the area's planned redevelopment to
nonresidential uses.
Code Amendment to Revise Flex Space Office Percentage
We request an amendment to the UDC's specific use standards for flex space to reduce the
required minimum office space from 30% to 10% to better align the standards with market
conditions and demand. This request is consistent with the recent request for the same reduction
in the M-E zone approved by City Council in August 2025. At the hearing considering the code
change, public testimony indicated that the limitations of the office minimums were acting as a
barrier to leasing of flex spaces in Meridian, and that office spaces reduced the value of light
industrial-type properties. A June 6, 2025 letter from Adler Industrial indicated "as long as Flex
has an office requirement greater than 10%, it will exclude typical warehouse and distribution
tenants." The same holds true for the tenants targeted for the flex component of this Project and
similar I-L projects, which include tech companies with light manufacturing, research and
development operations,professional services and trades with warehouse needs, and e-commerce
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IWOfulfillment and distribution tenants. The typical tenants for these spaces do not segregate office
and warehouse space, preferring more open and integrated workstation spaces over walled-off
office areas,not dissimilar to the transition seen in many contemporary office designs. Given City
Council's interest in developing the types of spaces that create jobs and lead to business growth,
we request the same reduction to 10% minimum office space for the I-L zone as was recently
approved for the M-E zone to accommodate the Project's proposed flexible work environments.
Our proposed change to UDC § 11-4-3-18 is as follows:
A. Office and/or retail showroom areas shall comprise a minimum of thirty (30)
percent of the structure and/or tenant space in the C-C District, fifteen(15)percent
in the C-G District, ten (10) percent in the M-E and I-L Districts, and twenty (20)
percent in the 1 L an I-H Districts.
The requested text amendment meets the City's criteria for approval. First, the text
amendment complies with the applicable provisions of the comprehensive plan. The proposed
amendment will facilitate the marketability of more flex space desired in the City and needed by
local and regional businesses,which aligns with Goal 2.06's aim to enhance Meridian's economic
vitality and position in the local and regional economy; Goal 2.06.01E's aim to focus on
developing industries that tend to exceed the living wage such as technology, healthcare and other
similar industries; and Goal 2.08.02's aim to pursue economic development opportunities with
technology,healthcare, environmentally-friendly manufacturing, light industrial, and professional
service industries. Approval of this Project will support the growth of technology and
manufacturing companies looking to expand in Meridian.
Second, the text amendment will be materially beneficial to the public health, safety, and
welfare. The proposed change will promote economic development. Approximately 36% of the
Project is proposed to be flex space, the type of space growing in importance for businesses in
today's unpredictable economy. Flex space provides new businesses the ability to adapt, allowing
for ramping up or winding down different aspects of a business depending on need. It also better
accommodates the shift to remote work that is occurring across all sectors of the economy. This
reduction does not prevent a business from creating office space if desired, but ensures that a
business can organize its workspace strategically and efficiently. These reductions will facilitate
the types of innovative workspaces and incubator spaces endorsed by City Council at the hearing
on August 12.
Third, the text amendment shall not result in an adverse impact upon the delivery of
services by any political subdivision providing public services within the city including, but not
limited to, school districts. The reduction in the office space requirement will have no direct impact
on the provision of services by political subdivisions.
Preliminary Plat
In order to dedicate the planned collector road on the Property, a future preliminary plat
will be required. We understand that we will not be able to proceed and obtain a certificate of
zoning compliance until a final plat is approved, which will require compliance with all setbacks
and dimensional standards under Meridian code. We are pursuing approval of this discretionary
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IWOapplication prior to completing the significant engineering work required to dedicate the road and
develop the site.
Conclusion
We appreciate the opportunity to introduce the City to this Project, which will facilitate
economic growth and increase employment opportunities for Meridian. We look forward to
discussing the Project at a future public meeting.
Sincerely,
Chris McCluskey
Executive Vice President, Development
VanTrust Real Estate