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HomeMy WebLinkAboutApplication MaterialsLAW OFFICE OF BILL KLOOS PC OREGON LAND USE LAW 375 W. 4TH AVENUE, SUITE 204 EUGENE, OR 97401 TEL: 541.954.1260 WEB: WWW.LANDUSEOREGON.COM BILL KLOOS July 14, 2026 Terri Harding, Planning Director Eugene Planning and Development Permit and Information Center 99 E. Broadway Eugene, OR 97401 Attn: Reid Verner, Land Use Supervisor Re: Request for Zone Verification Letter – Former Hyundai/Hynix Semiconductor Campus, 1830 Willow Creek Circle, E-1 Campus Employment Zone Assessor Map: 18-04-04-20, TLs 400, 500, 1200, 1300, 1400 Dear Terri: This is a request for a zone verification letter on behalf of my client, which has the former Hyundai/Hynix semiconductor campus located at 1830 Willow Creek Circle under contract. The Property is zoned E-1 Campus Employment. My client’s intent is to redevelop, reuse, and market the Property for one or more uses permitted in the E-1 zone, including Data Center Use, Manufacturing, Research and Development, Advanced Manufacturing, Warehousing, Office Uses, and customary accessory and support uses associated with those uses. EC 9.1080, Zone Verification, allows the Director to determine whether specific uses are allowed in the E-1 zone. It provides: Zone verification is used by the city to evaluate whether a proposed building or land use activity would be a permitted use or be subject to land use application approval or special standards applicable to the category of use and the zone of the subject property. The city may use zone verification as part of the review for a land use application or development permit, or where required by this land use code. As part of the zone verification, the planning and development director shall determine whether uses not specifically identified on the allowed use list for that zone are permitted, permitted subject to an approved conditional use permit or other land use permit, or prohibited, or whether a land use review is required due to the characteristics of the development site or the proposed site. This determination shall be based on the requirements applicable to the zone, applicable standards, and on the operating characteristics of the proposed use, building bulk and size, parking demand, and traffic generation. Requests for zone verification shall be submitted on a form approved by the city manager and be accompanied by a fee pursuant to EC Chapter 2. A general discussion follows on the history and current status of the Property. That background is provided for context. This request seeks both: (1) confirmation of the applicable zoning and Terri Harding July 14, 2026 Page 2 overlays for the Property; and (2) use-classification determinations under EC 9.1080 that the Requested Uses described below are permitted uses in the E-1 zone, whether as expressly listed permitted uses or as uses properly classified within the E-1 permitted use categories. The requested determinations are subject to generally applicable development standards, overlay- zone standards, and separate building, fire, utility, environmental, and operational permits that may apply to particular improvements or equipment. Property Background: The former Hyundai/Hynix semiconductor manufacturing facility was originally constructed in the mid-1990s. The facility began operating in approximately 1998 and historically manufactured memory chips until approximately 2008. Since semiconductor manufacturing operations ceased, the campus has remained improved with substantial existing industrial, office, utility, fire/life-safety, and other infrastructure and has continued to be maintained under applicable building, fire, utility, and environmental permits. Existing Site Conditions: The site is located at 1830 Willow Creek Circle on an approximately 200-acre campus, of which 120 gross acres is developable as presently vacant and serviced land. The existing industrial facility consists of approximately 1.2 million sq ft., including an approximately 850,000 sq ft fabrication facility and approximately 122,000 sq ft “clean room.” The facility also incorporates an approximately 122,000 sq ft utility building and an approximately 118,000 sq ft administrative office building. The site is zoned E-1 Campus Employment. The “Purpose of E-1 Campus Employment Zone” stated at EC 9.2400 is: “The purpose of the E-1 Campus Employment zone is to implement the Campus Industrial designation of the comprehensive plan by providing large areas for a variety of light industrial and office-based scientific, medical, research and development, or other professional firms to locate in a campus-like setting. In general, this zone is designed for firms that will help achieve economic diversification objectives and that typically have a large number of employees per acre. The activities of such firms do not generate offensive external impacts and usually do not tolerate substantial noise, pollution, or vibration from surrounding uses. The “campus” setting is characterized by enhanced landscaping, pedestrian amenities, and unique architectural design. Provision is also made for small-scale complementary commercial uses that primarily serve employees in the area and are preferably part of a mixed-use development.” The above purpose statement supports classification of the Requested Uses as campus-scale technology, manufacturing, research, office, data-processing, and support uses of the type contemplated by the E-1 zone. Terri Harding July 14, 2026 Page 3 The E-1 zone is a broad and flexible zone for potential reuse of the existing campus and future development. For purposes of this request, the most directly relevant E-1 permitted use categories include the following: Accessory Uses • Accessory Uses incidental to the primary use on the site. Information Technology Services • Computer Networking, including services and technical support center. • E-commerce, including call centers, online sales and shipping, and business- to-business services. • Internet and Web Site, including services and technical support center. • Software Development, including services and technical support center. Manufacturing Manufacturing, including processing, assembling, packaging, and repairing, including without limitation: • Chemical, Drug, Cosmetics, and Related Products. • Electronic and Communication Components, Systems, Equipment, and Supplies, including computers and semi-conductors. • Measuring, analyzing, and controlling instruments and time pieces. • Photographic and Copying Equipment. • Precision Testing, Medical, Optical, Surgical, and Dental Goods. Office Uses • Administrative, General, and Professional Offices. • Scientific and Educational Research Center. Trade • Wholesale, Warehousing, and Distribution. Utilities and Communication • Electrical Substation, subject to applicable standards. Motor Vehicle Related Uses • Parking Area not directly related to a primary use on the same development site. • Structured Parking, two levels not directly related to a primary use on the same development site. • Structured Parking, three or more levels not directly related to a primary use on the same development site. Proposed Uses and Classification Terri Harding July 14, 2026 Page 4 My client requests confirmation that the following uses are permitted in the E-1 zone, whether as expressly listed permitted uses or as uses properly classified within the E-1 permitted use categories: • Data Center. For purposes of this request, “Data Center” means a facility used primarily for the operation of computer servers, network equipment, data storage systems, telecommunications/fiber infrastructure, cloud-computing infrastructure, artificial- intelligence or high-performance computing infrastructure, and related information- technology systems used to store, process, manage, transmit, exchange, and secure digital information. EC 9.1080 provides that zone verification is used to determine whether a proposed building or land use activity “would be a permitted use or be subject to land use application approval or special standards applicable to the category of use and the zone of the subject property.” For uses not specifically identified on the allowed-use list, EC 9.1080 directs the Planning and Development Director to determine whether the use is permitted, conditionally permitted, prohibited, or subject to land use review based on “the requirements applicable to the zone, applicable standards, and on the operating characteristics of the proposed use, building bulk and size, parking demand, and traffic generation.” Under that standard, Data Centers are best understood as Information Technology Services uses, not as sui generis industrial or utility uses. Table EC 9.2450 permits Information Technology Services uses in the E-1 zone, including Computer Networking, Internet and Web Site, Software Development, and E-commerce, including business-to- business services and related technical-support functions. A modern data center is the physical infrastructure through which those information-technology services are delivered. Its core function is to operate servers, network systems, storage systems, telecommunications/fiber infrastructure, cloud-computing systems, and related platforms that process, store, manage, transmit, exchange, and secure digital information for enterprise, cloud, colocation, managed-services, cybersecurity, artificial-intelligence, high-performance computing, and other business-to-business technology users. Those activities are squarely within the computer networking, internet/web, software, e- commerce, and technical-support activities listed as permitted E-1 Information Technology Services uses. This classification is also consistent with the structure and purpose of the E-1 zone. EC 9.2400 describes the E-1 Campus Employment Zone as providing large areas for “light industrial and office-based scientific, medical, research and development, or other professional firms to locate in a campus-like setting.” The E-1 zone is therefore intended to accommodate campus-scale, technology-oriented uses that combine office, technical, research, light industrial, and support functions in a planned setting. Data Centers fit that purpose. They are technology-based campus uses with limited general-public access, substantial investment in specialized information-technology infrastructure, and operating characteristics more closely aligned with computer networking, internet/web services, Terri Harding July 14, 2026 Page 5 cloud computing, business-to-business technology services, and technical operations than with retail, heavy industrial, or general utility uses. The fact that “data center” is not separately named in Table EC 9.2450 does not change that conclusion. EC 9.1080 expressly contemplates classification of uses that are not specifically identified on the allowed-use list based on the applicable zone requirements and the proposed use’s operating characteristics, building bulk and size, parking demand, and traffic generation. The defining operating characteristic of Data Centers is the provision of information-technology services through computer, network, storage, internet, cloud, and telecommunications systems. Accordingly, Data Centers are properly classified as permitted E-1 Information Technology Services uses under EC 9.1080 and Table EC 9.2450. Accordingly, although “data center” is not separately listed in Table EC 9.2450, the Data Center Use described above is properly classified as a permitted E-1 Information Technology Services use under EC 9.1080 and Table EC 9.2450. • Manufacturing. Manufacturing uses, including processing, assembling, packaging, repairing, fabrication, production, and related support activities, are permitted in the E-1 zone under the listed Manufacturing use category. This includes, without limitation, manufacturing of electronic and communication components, systems, equipment, and supplies, including computers and semi-conductors; measuring, analyzing, and controlling instruments; precision testing and similar goods; and other manufacturing uses listed as permitted in the E-1 zone. • Research and Development. Research and development uses, including scientific, engineering, technical, product-development, prototype, testing, laboratory, and related office and support functions, are permitted in the E-1 zone under the Office Uses category, including Scientific and Educational Research Center, and are also consistent with the E-1 purpose statement’s reference to office-based scientific, medical, research and development, and other professional firms. • Advanced Manufacturing. For purposes of this request, “Advanced Manufacturing” means manufacturing, fabrication, assembly, testing, packaging, processing, prototyping, pilot production, product development, research and development, engineering, laboratory, clean-room, quality-control, and related office and technical-support activities involving technology-intensive products or processes, including electronics, semiconductors, computers, communications equipment, precision instruments, medical, optical, surgical, dental, testing, analytical, or similar products. Advanced Manufacturing is properly classified within the E-1 zone’s permitted Manufacturing, Office Uses, Scientific and Educational Research Center, and accessory/support use categories. • Warehousing. Warehousing uses, including storage, staging, inventory management, shipping, receiving, distribution, logistics, and related loading and service functions, are Terri Harding July 14, 2026 Page 6 permitted in the E-1 zone under the Trade category for Wholesale, Warehousing, and Distribution. • Office. Office uses, including administrative, general, professional, corporate, engineering, technical, operations, management, sales, research, and support office functions, are permitted in the E-1 zone under the Office Uses category for Administrative, General, and Professional Offices and Scientific and Educational Research Center The Requested Uses may occur independently or in combination on the Property, including as part of a single-user or multi-tenant campus. For example, a future user may combine data center, research and development, advanced manufacturing, office, clean-room, testing, data processing, warehousing, distribution, and related support functions within the same building or campus. That combined-use scenario should be treated as permitted so long as each component is a permitted use or is accessory or supportive to a permitted use. The Requested Uses include customary incidental and accessory support functions and infrastructure ordinarily associated with such uses. Based on the foregoing, my client requests that the City confirm the following: 1. The Property is zoned E-1 Campus Employment. 2. Data Center Use, as defined in this letter, is a permitted use in the E-1 zone under the Information Technology Services category, including Computer Networking, Internet and Web Site, Software Development, and/or E-commerce/business-to-business services 3. Manufacturing, Advanced Manufacturing, Research and Development, Warehousing, and Office Uses, as described in this letter, are permitted uses in the E-1 zone under the Manufacturing, Office Uses, Scientific and Educational Research Center, and/or Wholesale, Warehousing, and Distribution use categories. 4. The uses described in this letter may occur independently or in combination on the Property, including as part of a single-user or multi-tenant campus, with customary accessory and support functions such as technical support areas, laboratories or clean- room areas, network operations, equipment rooms, mechanical/electrical/cooling systems, backup power, telecommunications/fiber equipment, storage, maintenance, loading, parking, and related utility and life-safety infrastructure, subject to applicable development, overlay, building, fire, utility, environmental, and operational permit requirements. 5. None of the uses described in this letter requires a conditional use permit or other discretionary land use approval to allow for the proposed use(s). Terri Harding July 14, 2026 Page 7 Thank you for your assistance with this request. Sincerely, Bill Kloos Bill Kloos CC: Alissa Hunter, Exec. Director, Eugene Planning and Development Reid Verner Jeff Gepper Client