In C1 or C2 Districts located outside of the Borough of Manhattan that are select commercial overlays, the Board of Standards and Appeals may permit micro-distribution facilities, as listed under Use Group IX(A), as set forth in Section 32-19 (Use Group IX - Storage), with a size limit of 5,000 square feet of floor area per establishment, and in other C1 or C2 Districts, as well as C4 through C7 Districts, the Board may permit modifications to a size limitation for micro-distribution facilities, denoted in the Use Group table with an “S”, provided that the increase does not exceed 200 percent of the amount set forth in paragraph (c) of Section 32-193 (Use Group IX – uses subject to size limitations).

In order to grant such permit, the Board shall find that:

1. such use will not impair the character or the future use or development of the surrounding area. In order to make such finding in locations where the use is being permitted, the Board shall consider the presence and concentration of existing micro-distribution facilities within 500 feet of the proposed use and whether any increase in concentration would have impacts on the surrounding area;
2. such use will cause minimal interruption to, and will not be incompatible with, the continuity of surrounding retail frontages;
3. such use will not create or contribute to serious traffic congestion and will not unduly inhibit surface traffic and pedestrian flow; and
4. the modifications are necessary to support the operation of such use.

The Board may prescribe appropriate conditions and safeguards to minimize adverse effects on the character of the surrounding area.