HomeMy WebLinkAbout2020-12-14 City Council Agendas (20)
City of Palo Alto (ID # 11800)
City Council Staff Report
Report Type: Action Items Meeting Date: 12/14/2020
City of Palo Alto Page 1
Summary Title: Temporary Ordinance - Retail Zoning
Title: Adoption of a Temporary Ordinance Amending Title 18 (Zoning) of the
Palo Alto Municipal Code to Broaden Permissible Uses and Raise Thresholds
for Conditional Use Permits for Some Land Uses Throughout the City.
Environmental Review: CEQA Exemption 15061(b)(3)
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
Staff recommends that Council:
1. Find the proposed ordinance exempt from the California Environmental Quality Act
(CEQA) in accordance with CEQA Guidelines Section 15061(b)(3)
2. Adopt on first reading the attached ordinance amending various land use definitions to
broaden permissible uses and adjust conditional use permit thresholds for some land
uses throughout the City.
Executive Summary:
The attached ordinance responds to Council direction from November 9, 2020 for minor
amendments to the definitions section of the zoning code and adjustments to the thresholds to
determine when a conditional use permit (CUP) is required. The purpose of the amendments is
to promote retail activity and decrease commercial vacancies. Amendments are proposed to
the eating and drinking establishments, personal service, retail services and take-out service
definitions. The threshold for requiring a CUP is proposed to increase for commercial
recreation, medical office and some personal services uses in various commercial districts. The
changes are relatively minor and reserve more significant policy recommendations to future
public hearings and analysis before the Planning and Transportation Commission (PTC), which is
scheduled for next year.
City of Palo Alto Page 2
Background/Discussion:
On November 9, 2020, the City Council received an update on the City’s community and
economic recovery strategies1 that built upon a verbal study session report presented in
September and the City’s overall and continuing response to the coronavirus pandemic. The
City Council directed staff to return on December 14 with an ordinance to implement discrete
amendments to the zoning code that would broaden the definition of retail uses and relax the
conditional use permit threshold for certain uses.
These changes are being presented as a temporary ordinance in reliance on Palo Alto Municipal
Code section 18.80.090, which allows the City Council to temporarily suspend its procedures
when doing so is necessary for the public health, safety or welfare. In this case, the procedure
being suspended is the ordinance’s review by the PTC before being acted upon by the City
Council. The public interest being served is providing a more expedient response to address
some of the economic challenges associated with the pandemic-influenced recession. Following
Council’s action, staff will work with the PTC to codify these changes and to respond to the
Council’s related direction to create opportunities for a strong mix of retail uses citywide and at
a zoning district or neighborhood level.
Proposed Ordinance
In 2017, the City Council adopted an ordinance that codified the current retail preservation
regulations and modified the “retail services” definition to remove a long list of overly
prescriptive land uses that exemplified qualifying retail uses. This amendment was intended to
broaden the variety and type of retail uses permitted in commercial districts to reflect the
changing retail environment that continues to shift toward online sales and greater use of
physical locations for restaurants, services and experiential uses.
Corresponding revisions to other related land use definitions, including “eating and drinking
establishments” and “take-out services” were not made, which resulted in a situation where
some land uses previously considered retail service were subsequently considered to be a
restaurant or take-out use, which have a greater parking requirement in the zoning code and
are potentially subject to a conditional use permit process. Applying a strict reading of the
zoning regulations combined with clear policy mandates to preserve retail floor area may have
constrained the establishment of some uses due to increased parking standards, greater
regulatory requirements (CUP), or because the proposed land use reduced floor area previously
dedicated for retail sales to support more back of house operations or administrative offices. In
some instances, prospective tenants would combine a variety of activities together in one
1 Staff Report dated 11/9/20:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=49936.29&BlobID=78988
Presentation: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=45116.46&BlobID=79151
Minutes: https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=59509.74&BlobID=79270
City of Palo Alto Page 3
tenant space that relate to several different land uses triggering the need for a CUP due to the
size of the tenant space. Sorting out these hybrid versions of retail services takes time and have
frustrated commercial brokers and prospective tenants.
Council’s recent direction to engage the PTC and recommend new regulations will help address
these issues. The attached ordinance is a first, minor step that restores some land uses that
were previously considered retail services and begins to reinforce the Council’s previous intent
to broaden the retail definition to permit a greater range of retailers in commercial storefronts.
Land Use Definition Changes
The proposed ordinance modifies the eating and drinking establishments definition to remove
references to ice cream parlors, coffee shops, sandwich shops or baked goods as a formal
restaurant-like establishment and defines these as retail services. The “retail services –
intensive retail service” and “take-out services” definitions are similarly updated reflect this
change. This amendment recognizes coffee and sandwich shops and some bakeries as retail
services whether there is incidental seating and with or without goods pre-packaged or made
on premises for its customers. These uses are distinguished from eating and drinking
establishments that typically have a full commercial kitchen with a combination of sit down and
take out service. Drive through restaurants are unaffected by this change are remain subject to
a discretionary CUP process where allowed in the code.
Another modification included in the ordinance expands the floor area threshold to determine
whether fitness and exercise studios are defined as a “personal service” or “commercial
recreation,” the latter requires a CUP and has a greater parking demand. The proposed
threshold would increase from the current 1,800 square feet to 5,000 square feet. This change
will allow more flexibility in leasing commercial space by reducing the regulatory process to
establish these uses. Staff anticipates this adjustment will have a negligible impact to parking
resources and not result in any significant commercial intrusion into residential neighborhoods.
This conclusion is based on the idea that most exercise and fitness studios of this size tend to
cater to a more personalized training experience with a limited amount of people occupying the
space at any given time. These land uses can also be neighborhood serving establishments that
individuals can access through means other than car trips. A gym established in 2018 at the
former Anthropology site on Alma Street is an example of a 5,000 square foot exercise studio
(gym) that went through a lengthy CUP process; the City has not received any complaints
regarding this facility while it was operating prior to the pandemic.
Notwithstanding staff’s perspective, some in the community may be concerned that yoga
studios and exercise facilities in larger tenant spaces may generate unwanted increases in
vehicle trips in their neighborhood or potentially compete for parking on public streets.
Accordingly, the City Council may also consider a more modest increase from 1,800 square feet
to 3,000 square feet.
City of Palo Alto Page 4
The ordinance includes one other change to the personal services definition adding a
subcategory related to learning centers. These uses are distinguished from private educational
facilities and would be oriented toward individual or small group settings, including, tutoring,
test preparation, language or cooking classes. It also allows for after-school programing. Many
of these uses already exist in some form or another in the City, but they are now explicitly
associated with the personal services definition in the proposed ordinance to minimize any
ambiguity.
The ordinance includes some other, non-substantive clean up changes to the definitions section
of the code.
The current definition for each of the land uses referenced above is included in Attachment A
and available online.2
Conditional Use Permit Thresholds
Several changes are proposed that relate to conditionally permitted uses. One change raises
the threshold to obtain a conditional use permit for commercial recreation uses to 5,000 square
feet. This concept is aligned with changes noted above for personal services but extends
beyond exercise and fitness studios to include all commercial recreation-related land uses.
Commercial recreation uses up to 5,000 square feet would be permitted by right where
currently conditionally allowed in the zoning code. This change is intended to streamline the
administrative review process for less impactful and less intensive commercial recreation uses.
Property owners and brokers have argued for a larger threshold for when a CUP is required for
commercial recreation, upwards of 10,000 square feet in recent conversations. Staff
recommends an increase at this scale be subject to more community engagement and should
be evaluated by the PTC.
In the CN and CD-N zoning districts the CUP threshold for personal service land uses increases
from 2,500 square feet to 3,000 square feet. This adjustment respects the reduced threshold
previously imposed on these uses in the neighborhood commercial shopping areas to ensure
maximum capability with surrounding residential uses. Through the PTC’s review, the City can
examine whether further increases combined with objective standards may be appropriate. It is
uncertain whether this modest adjustment will yield any practical benefit to property owners or
future tenants in these zoning districts; the City Council could determine the change is to minor
to advance or increase the threshold at its discretion.
2 Zoning Code definitions: https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-32725.
City of Palo Alto Page 5
For California Avenue, staff recommends removing the CUP requirement for barber shops,
beauty salons and laundromats, which was imposed when the City Council enacted the formula
retail regulations in 2015. Barber shops and beauty salons are not typically regulated by a CUP
in most jurisdictions, but its imposition in Palo Alto has limited the establishment of such uses
on California Avenue. With the pandemic, some of these existing businesses may not re-
establish and removing the CUP requirement could serve to limit storefront vacancies. Modern
laundromat facilities sometimes include other uses, such as coffee service and can serve as a
place for social connections for many age groups. The City Council may conclude laundromats
on California Avenue warrant further analysis by the PTC; if so, this provision could be
eliminated to retain the CUP requirement. Nothing included in this ordinance impacts the
existing regulations regarding formula retail.
In the CN, CC and CS zoning districts, medical office requires a CUP when over 2,500 square
feet. The proposed ordinance increases this threshold to 5,000 square feet. No other changes
to medical land uses are proposed and medical office cannot replace protected retail or retail-
like land uses as defined in the zoning code. Staff will work with the PTC to examine whether
there are opportunities to allow more retail-oriented medical services that complement a retail
commercial area or shopping center.
Summary of Key Issues:
The proposed ordinance introduces discrete changes to the zoning code land use definitions
related to eating and drinking establishments, personal services, retail services – intensive retail
service, and take-out services. The CUP threshold for medical, commercial recreation and some
personal service uses in the neighborhood-serving commercial zones are slightly increased. The
purpose of these amendments is to respond to the City Council’s direction from November 9 to
make minor amendments to promote retail activity and decrease commercial vacancies.
Policy Implications:
The proposed amendments are relatively minor consistent with Council direction. The changes,
while inspired by a discussion on the City’s economic and community strategies in response to
the coronavirus, are reasonable modifications that would be appropriate post pandemic and
when economic conditions have recovered.
It is anticipated the attached ordinance will facilitate the establishment of some retail and
retail-like uses and limit the number of commercial vacancies, but the extent of the impact is
unknown. Over the next several months, the PTC will continue a discussion and hold public
hearings to further explore opportunities to promote a more diverse and strong retail mix
citywide and at the commercial district level. Information learned through the implementation
of this ordinance can be applied to future policy recommendations.
City of Palo Alto Page 6
Resource Impact:
The recommendation in this report does not have any significant fiscal or budgetary impacts.
Timeline:
The subject ordinance requires a second reading, which is expected to occur on January 11,
2021. The ordinance becomes effective on the 31st day following adoption and will remain valid
for 18 months unless repealed by ordinance before then.
Stakeholder Engagement:
Staff has engaged property owners, property managers and business owners over the past
several months on a variety of topics related to economic recovery. Some of these discussions
have helped inform the recommendations in this report. No additional outreach was conducted
following the City Council’s direction to draft the attached ordinance on November 9, 2020.
Notice of the draft ordinance and public hearing was published in the Daily Post on November
30, 2020.
Environmental Review:
The project is exempt from the California Environmental Quality Act (CEQA) in accordance with
CEQA Guidelines 15061(b)(3) in that it can be seen with certainty that ordinance will not have a
significant impact on the environment. The ordinance makes minor adjustments to land use
definitions and modest changes to the thresholds for discretionary review.
Attachments:
Attachment A: Draft Ordinance
*NOT YET APPROVED*
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Ordinance No. ___
Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code
(PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16 (Neighborhood,
Community, and Service Commercial (CN, CC and CS) Districts), 18.18 (Downtown
Commercial (CD) Districts) and 18.30 (A) and (C) – the Retail and Ground Floor
combining districts
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency
due to the threat of Coronavirus Disease 2019 (“COVID-19”).
B. As a result of the COVID-19 pandemic and the public health response, restaurant, retail,
tourism, and hospitality business has significantly declined and the nation is
experiencing a recession.
C. The City Council desires to relax certain zoning regulations in the City’s commercial
zoning districts to address some of the economic challenges created by the COVID-19
pandemic and to spur economic activity.
D. The public health, safety, or welfare require that such changes to the City’s zoning
regulations be enacted for a temporary period and as expediently as possible, without
review by the Planning and Transportation Commission pursuant to Palo Alto Municipal
Code section 18.80.090.
SECTION 2. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18
(Zoning) of the Palo Alto Municipal Code is amended to read as follows:
18.04.030 Definitions
(a) Throughout this title the following words and phrases shall have the meanings
ascribed in this section.
[. . .]
(45) “Drive-in/drive-through service” means a feature or characteristic of a use involving
sales of products or provision of services to occupants in vehicles, including drive-in or drive-up
windows and drive- through services such as mechanical automobile washing, pharmacy
windows, coffee stands, automatic teller machines, etc.
[. . .]
*NOT YET APPROVED*
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(47) “Eating and drinking service” means a use providing preparation and retail sale of
food and beverages with a full menu and providing indoor seating area. Eating and drinking
service include presence of a full commercial kitchen and commercial dishwasher. including
restaurants, fountains, cafes, coffee shops, sandwich shops, ice cream parlors, taverns, cocktail
lounges and similar uses. For establishments with incidental sale alcoholic beverages, a
minimum of 50% of revenues from an ‘eating and drinking service’ must be derived from the
sale of food. Related definitions are provided in subsections (45) (Drive-in/drive-through
service), (125)(B) (Intensive retail service) and (136) (Take-out service).
[. . .]
(95) “Medical office” means a use providing consultation, diagnosis, therapeutic,
preventive, or corrective personal treatment services by doctors, dentists, medical and dental
laboratories, and similar practitioners of medical and healing arts for humans, licensed for such
practice by the state of California. Incidental medical and/or dental research within the office is
considered part of the office use, where it supports the on-site patient services. Medical office
use does not include the storage or use of hazardous materials in excess of the permit
quantities as defined in Title 15 of the Municipal Code. Medical gas storage or use shall be
allowed up to 1,008 cubic feet per gas type and flammable liquids storage and use shall be
allowed up to 20 gallons total (including waste).
(95.1) (A) “Medical research” means a use related to medical and/or dental research,
testing and analysis, including but not limited to trial and clinical research. Biomedical and
pharmaceutical research and development facilities are not included in this definition. Medical
Research does not include the storage or use of quantities of hazardous materials above the
exempt quantities listed in Title 15 of the Municipal Code nor any toxic gas regulated by Title
15. Additionally, Medical Research may include storage and use of etiological (biological) agents
up to and including Risk Group 2 or Bio Safety Level 2 (Center for Disease Control).
(95.2) (B) “Medical support retail” means a retail use providing sales, rental, service, or
repair of medical products and services to consumers or businesses, and whose location near
hospitals or medical offices facilitates the provision of medical care or medical research.
Examples of medical retail uses typically include, but are not limited to, pharmacies, sale of
prosthetics, and sale of eyeglasses or other eye care products.
(95.3) (C) “Medical support service” means a use providing administrative support
functions for healthcare providers or facilities, intended to support the operations of hospitals
or of medical and dental office uses, and whose location near those medical facilities enhances
the interaction between medical providers and/or facilitates the provision of medical care or
medical research. Examples of medical support service uses typically include, but are not
limited to, administration and billing services, public relations, training, and fundraising.
Hospitals and ambulance services are not included in this definition.
[. . .]
*NOT YET APPROVED*
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(114) “Personal service” means a use providing services of a personal convenience
nature, and cleaning, repair or sales incidental thereto, including:
(A) Beauty shops, nail salons, day spas, and barbershops;
(B) Self-service laundry and cleaning services; laundry and cleaning pick-up stations
where all cleaning or servicing for the particular station is done elsewhere; and laundry and
cleaning stations where the cleaning or servicing for the particular station is done on site,
utilizing equipment meeting any applicable Bay Area Air Quality Management District
requirements, so long as no cleaning for any other station is done on the same site, provided
that the amount of hazardous materials stored does not at any time exceed the threshold
which would require a permit under Title 17 (Hazardous Materials Storage) of this code;
(C) Repair and fitting of clothes, shoes, and personal accessories;
(D) Quick printing and copying services where printing or copying for the particular
service is done on site, so long as no quick printing or copying for any off-site printing or
copying service is done on the same site;
(E) Internet and other consumer electronics services;
(F) Film, data and video processing shops, including shops where processing for the
particular shop is done on site, so long as no processing for any other shop is done on the same
site;
(G) Art, dance or music studios intended for an individual or small group of persons in a
class (see “commercial recreation” for other activities); and
(H) Fitness and exercise studios, or similar uses, in a space having of 1,800 5,000 square
feet or fewer of gross floor area (see “commercial recreation” for uses exceeding 5,000 square
feet other activities).
(I) Learning centers intended for individual or small group settings, including tutoring,
standardized test preparation, language classes, after-school programs, cooking classes, and
similar uses.
[. . .]
(125) “Retail service” means a use open to the public during typical business hours and
predominantly engaged in providing retail sale, rental, service, processing, or repair of items
primarily intended for consumer or household use.
(A) “Extensive retail service,” as used with respect to parking requirements, means a
retail sales use having more than seventy-five percent of the gross floor area used for display,
sales, and related storage of bulky commodities, including household furniture and appliances,
lumber and building materials, carpeting and floor covering, air conditioning and heating
equipment, and similar goods, which uses have demonstrably low parking demand generation
per square foot of gross floor area.
*NOT YET APPROVED*
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(B) “Intensive retail service” as used with respect to parking requirements, means any
retail service use not defined as extensive retail service and including limited food service (i.e.
‘ready-to-eat’ food and/or beverage shops without a full commercial kitchen, where food
and/or beverages are ready to consume at the time of sale and any seating area is limited;
examples include sandwiches, frozen desserts, non-alcoholic beverages, and baked items).
[. . .]
(136) “Take-out service” means a characteristic of an eating or drinking service which
encourages, on a regular basis, consumption of food or beverages, such as prepared or
prepackaged items, outside of a building, in outdoor seating areas where regular table service is
not provided, in vehicles parked on the premises, or off-site. Take-out service does not include
intensive retail service uses, as defined in subsection (125)(B).
[. . .]
SECTION 3. Section 18.16.040 (Land Uses) of Chapter 18.16 (Neighborhood,
Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows:
The uses of land allowed by this chapter in each commercial zoning district are identified in the
following tables. Land uses that are not listed on the tables are not allowed, except where
otherwise noted. Where the last column on the following tables ("Subject to Regulations in")
includes a section number, specific regulations in the referenced section also apply to the use;
however, provisions in other sections may apply as well.
(a) Commercial Zones and Land Uses
Permitted and conditionally permitted land uses for each commercial zone are shown in Table
1:
TABLE 1
PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use CUP = Conditional Use Permit Required
LAND USE CN(4) CC, CC(2) CS (4) Subject to Regulations In:
ACCESSORY AND SUPPORT USES
Accessory facilities and activities
customarily associated with or
essential to permitted uses, and
operated incidental to the principal
use.
P P P 18.42
Drive-in services or take-out
services associated with permitted
uses(3)
CUP CUP CUP 18.42
*NOT YET APPROVED*
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Tire, battery, and automotive service
facilities, when operated incidental to
a permitted retail service or
shopping center having a gross floor
area of more than 30,000 square
feet.
CUP 18.42, 18.40.160
Safe Parking 18.42.160
EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES
Business and Trade Schools P P
Churches and Religious Institutions P P P
Private Educational Facilities CUP P P
Private Clubs, Lodges, or Fraternal
Organizations
CUP P P
MANUFACTURING AND
PROCESSING USES
Recycling Centers CUP CUP CUP
Warehousing and Distribution CUP
OFFICE USES
Administrative Office Services P 18.16.050
Medical Offices CUP
(5)
CUP (5) CUP (5) 18.16.050
Professional and General Business
Offices
P P P 18.16.050
PUBLIC/QUASI-PUBLIC USES
Utility Facilities essential to provision
of utility services but excluding
construction or storage yards,
maintenance facilities, or corporation
yards.
CUP CUP CUP
RECREATION USES
Commercial Recreation CUP
(5)
CUP (5) CUP (5) 18.40.160
Outdoor Recreation Services CUP CUP CUP
*NOT YET APPROVED*
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RESIDENTIAL USES
Multiple-Family P(1) P(1) P(1) 18.16.060(b) and (c)
Home Occupations P P P
Residential Care Homes P P P
RETAIL USES
Eating and Drinking Services,
excluding drive-in and take-out
services
P P P 18.40.160
Retail Services, excluding liquor
stores
P P P 18.40.160
Liquor stores CUP P P 18.40.160
Shopping Centers P 18.16.060(e), 18.40.160
SERVICE USES
Ambulance Services CUP CUP CUP
Animal Care, excluding boarding
and kennels
P P P
Boarding and Kennels CUP
Automobile Service Stations CUP CUP CUP 18.30(G)
Automotive Services CUP
Convalescent Facilities CUP P P
Day Care Centers P P P 18.40.160
Small Family Day Care Homes P P P
Large Family Day Care Homes P P P
Small Adult Day Care Homes P P P
Large Adult Day Care Homes CUP P P
Banks and Financial Services V CUP P(2) P(2)
General Business Services CUP P
Hotels P P 18.16.060(d), 18.40.160
*NOT YET APPROVED*
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Mortuaries CUP P P
Neighborhood Business Services P 18.16.060(f)
Personal Services P P P 18.16.060(f), 18.40.160
Reverse Vending Machines P P P
TEMPORARY USES
Farmer's Markets CUP CUP CUP
Temporary Parking Facilities,
provided that such facilities shall
remain no more than five years.
CUP CUP CUP
TRANSPORTATION USES
Parking as a principal use CUP CUP
Transportation Terminals CUP CUP
P = Permitted Use CUP = Conditional Use Permit Required
(1) Residential is only permitted: (i) as part of a mixed use development, pursuant to the provisions of
Section 18.16.060(b), or (ii) on sites designated as housing inventory sites in the Housing Element of the
Comprehensive Plan, (iii) on CN or CS sites on El Camino Real, or (iv) on CC(2) sites, all pursuant to the
provisions of Section 18.16.060(b) and (c).
(2) Except drive-in services.
(3) So long as drive up facilities, excluding car washes, provide full access to pedestrians and
bicyclists. A maximum of two such services shall be permitted within 1,000 feet, and each use shall not
be less than 150 feet from one another.
(4) For properties in the CN and CS zone districts, businesses that operate or have associated
activities at any time between the hours of 10:00 p.m. and 6:00 a.m. require a conditional use permit.
(5) A conditional use permit is not required for medical office or commercial recreation uses up to
5,000 square feet of gross floor area.
[. . .]
SECTION 4. Section 18.16.060 (Development Standards) of Chapter 18.16
(Neighborhood, Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning)
of the Palo Alto Municipal Code is amended to read as follows:
*NOT YET APPROVED*
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18.16.060 Development Standards
[. . .]
(f) Size of Establishments in the CN District
In the CN district, permitted commercial uses shall not exceed the floor area per individual use
or business establishment shown in Table 5. Such uses may be allowed to exceed the maximum
establishment size, subject to issuance of a conditional use permit in accord with Section
18.76.010. The maximum establishment size for any conditional use shall be established by the
director and specified in the conditional use permit for such use.
TABLE 5
MAXIMUM SIZE OF ESTABLISHMENT
Type of Establishment Maximum Size (sq ft)
Personal Services 2,500 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services 5,000
Neighborhood business services 2,500 3,000
[. . .]
(h) Outdoor Sales and Storage
(2) In the CC district and in the CC (2) district, the following regulations shall apply to outdoor
sales and storage:
(A) Except in shopping centers, all permitted office and commercial activities shall be
conducted within a building, except for:
(i) Incidental sales and display of plant materials and garden supplies occupying no more
than 2,000 square feet of exterior sales and display area,
(ii) Outdoor eating areas operated incidental to permitted eating and drinking services or
intensive retail uses,
(iii) Farmers’ markets that have obtained a conditional use permit, and
(iv) Recycling centers that have obtained a conditional use permit.
(B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a
conditional use permit.
SECTION 5. Sections 18.18.050 (Land Uses) of Chapter 18.18 (Commercial Downtown
(CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
*NOT YET APPROVED*
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18.18.050 Land Uses
The uses of land allowed by this chapter in each commercial zoning district are
identified in the following table. Land uses that are not listed on the tables are not allowed,
except where otherwise noted. Where the last column on the following tables ("Subject to
Regulations in") includes a section number, specific regulations in the referenced section also
apply to the use; however, provisions in other sections may apply as well.
Permitted and conditionally permitted land uses for the CD district are shown in Table 1:
Table 1
CD Permitted and Conditionally Permitted Uses
P Permitted Use • CUP Conditional Use Permit Required
CD-C CD-S CD-N Subject to
regulations in
Chapter:
ACCESSORY USES
Accessory facilities and activities associated with or
essential to permitted uses, and operated incidental
to the principal use
P P P
Drive-in or Take-out Services associated with
permitted uses (2)
CUP CUP CUP
Tire, battery, and automotive service facilities, when
operated incidental to a permitted retail service or
shopping center having a gross floor area of more
than 30,000 square feet
CUP 18.40.160
Safe Parking 18.42.160
EDUCATIONAL, RELIGIOUS, AND ASSEMBLY
USES
Business and Trade Schools P P
Churches and Religious Institutions P P P
Private Educational Facilities P P CUP
Private Clubs, Lodges, or Fraternal Organizations P P CUP
MANUFACTURING AND PROCESSING USES
*NOT YET APPROVED*
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Recycling Centers CUP CUP CUP
Warehousing and Distribution CUP
OFFICE USES
Administrative Office Services P 18.18.060(f)
Medical, Professional, and General Business
Offices
P P P 18.18.060(f)
PUBLIC/QUASI-PUBLIC FACILITY USES
Utility Facilities essential to provision of utility
services but excluding construction or storage
yards, maintenance facilities, or corporation yards
CUP CUP
RECREATION USES
Commercial Recreation CUP
(3)
CUP
(3)
CUP
(3)
Outdoor Recreation Services CUP CUP CUP
RESIDENTIAL USES
Multiple-Family P (1) P (1) P (1) 18.18.060(b)
Home Occupations P P P
Residential Care Homes P P P
RETAIL USES
Eating and Drinking Services, except drive-in or
take-out services
P P P 18.18.060(g) , 1
8.40.160
Retail Services, excluding liquor stores P P P 18.18.060(g) , 1
8.40.160
Shopping Centers P 18.18.060(g) , 1
8.40.160
Liquor Stores P P CUP 18.40.160
SERVICE USES
*NOT YET APPROVED*
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Animal Care, excluding boarding and kennels P P P
Ambulance Services CUP CUP CUP 18.30(G)
Automobile Service Stations CUP CUP CUP
Automobile Services CUP
Convalescent Facilities P P CUP
Day Care Centers P P P 18.40.160
Small Family Day Care Homes P P P
Large Family Day Care Homes P P P
Small Adult Day Care Homes P P P
Large Adult Day Care Homes
Financial Services, except drive-up services P P CUP
General Business Services CUP P P
Hotels P P P 18.18.060(d) , 1
8.40.160
Mortuaries P P CUP
Personal Services P P P 18.18.060(g) , 1
8.40.160
Reverse Vending Machines P P P
TRANSPORTATION USES
Parking as a principal use CUP CUP
Passenger Transportation Terminals CUP
TEMPORARY USES
Indoor Farmers’ Markets CUP CUP CUP
Temporary Parking Facilities, provided that such
facilities shall remain no more than five years
CUP CUP CUP
*NOT YET APPROVED*
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P Permitted Use CUP Conditional Use Permit Required
(1) Residential is only permitted as part of a mixed use development, pursuant to the provisions
of Section 18.18.060(b), or on sites designated as Housing Opportunity Sites in the Housing
Element of the Comprehensive Plan, pursuant to the provisions of Section 18.18.060(c).
(2) Drive-up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A
maximum of two such services shall be permitted within 1,000 feet and each use shall not be less
than 150 ft from one another.
(3) A conditional use permit is not required for commercial recreation uses up to 5,000 square
feet of gross floor area.
SECTION 6. Section 18.18.060 (Development Standards) of Chapter 18.18 (Commercial
Downtown (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read
as follows:
[. . .]
(g) Restrictions on Size of Commercial Establishments in CD-N Subdistrict
In the CD-N subdistrict, permitted commercial uses shall not exceed the floor area per
individual use or business establishment shown in Table 4. Such uses may be allowed to exceed
the maximum establishment size, subject to the issuance of a conditional use permit in
accordance with Chapter 18.76. The maximum establishment size for any conditional use shall
be established by the director and specified in the conditional use permit for such use.
TABLE 4
MAXIMUM SIZE OF ESTABLISHMENT
Type of Establishment Maximum Size (ft 2 )
Personal Services 2,500 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services 5,000
(h) Outdoor Sales and Storage.
The following regulations shall apply to outdoor sales and storage in the CD district:
(1) CD-C Subdistrict
*NOT YET APPROVED*
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In the CD-C subdistrict, the following regulations apply:
(A) Except in shopping centers, all permitted office and commercial activities shall be
conducted within a building, except for:
(i) Incidental sales and display of plant materials and garden supplies occupying no
more than 2,000 square feet of exterior sales and display area,
(ii) Outdoor eating areas operated incidental to permitted eating and drinking services
or intensive retail uses,
(iii) Farmers' markets which have obtained a conditional use permit, and
(iv) Recycling centers that have obtained a conditional use permit.
(B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a
conditional use permit.
(C) Exterior storage shall be prohibited, except recycling centers which have obtained a
conditional use permit.
(2) CD-S Subdistrict
In the CD-S subdistrict, outdoor sales and display of merchandise, and outdoor eating areas
operated incidental to permitted eating and drinking services and intensive retail uses shall be
permitted subject to the following regulations:
(A) Outdoor sales and display shall not occupy a total site area exceeding the gross
building floor area on the site, except as authorized by a conditional use permit.
(B) Areas used for outdoor sales and display of motor vehicles, boats, campers, camp
trailers, trailers, trailer coaches, house cars, or similar conveyances shall meet the minimum
design standards applicable to off-street parking facilities with respect to paving, grading,
drainage, access to public streets and alleys, safety and protective features, lighting,
landscaping, and screening.
(C) Exterior storage shall be prohibited, unless screened by a solid wall or fence of
between 5 and 8 feet in height.
(3) CD-N Subdistrict
In the CD-N subdistrict, all permitted office and commercial activities shall be conducted
within a building, except for:
(A) Incidental sales and display of plant materials and garden supplies occupying not
more than 500 square feet of exterior sales and display area, and
(B) Farmers' markets that have obtained conditional use permits.
[. . .]
*NOT YET APPROVED*
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SECTION 7. Section 18.30(A).040 (Permitted Uses) of Chapter 18.30(A) (Retail Shopping
(R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are
amended to read as follows:
Except to the extent a conditional use permit is required pursuant to Section 18.30(A).050, the
following uses shall be permitted in an R district:
(a) Eating and drinking services, except drive-in and take-out services.
(b) Personal services, except the following on California Avenue: beauty shops; nail
salons; barbershops; and laundry and cleaning services as defined in Section 18.04.030(114)(B).
(c) Retail services.
(d) All other uses permitted in the underlying commercial district, provided they are
not located on a ground floor.
SECTION 8. Section 18.30(A).050 (Conditional Uses) of Chapter 18.30(A) (Retail Shopping
(R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are
amended to read as follows:
The following uses may be conditionally permitted in an R district, subject to the
issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval):
(a) Financial services, except drive-in services, on a ground floor.
(b) All other conditional uses allowed in the underlying commercial district provided
they are not located on a ground floor.
(c) Formula retail businesses on California Avenue.
(d) Beauty shops, nail salons, and barbershops on California Avenue.
SECTION 9. Section 18.30(C).020 (Conditional Uses) of Chapter 18.30(C) (Ground Floor
(GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are
amended to read as follows:
(a) The following uses shall be permitted in the GF combining district, subject to
restrictions in Section 18.40.160180:
(1) Eating and drinking;
(2) Hotels;
(3) Personal services, except for parcels with frontage on University Avenue, where
uses defined in Section 18.04.030(114)(B), (G), and (H) are not permitted;
(4) Retail services;
(5) Theaters;
(6) Travel agencies;
(7) Commercial Recreation up to 5,000 square feet in gross floor area, except for
parcels with frontage on University Avenue;
(78) All other uses permitted in the underlying district, provided such uses are not
on the ground floor.
*NOT YET APPROVED*
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(b) Elimination or conversion of basement space currently in retail or retail-like use or
related support purposes is prohibited.
(c) Entrance, lobby, or reception areas serving non-ground floor uses may be located
on the ground floor to the extent reasonably necessary, provided they do not interfere with the
gound ground floor use(s), and subject to the approval of the Director.
SECTION 10. Section 18.30(C).030 (Conditional Uses) of Chapter 18.30(C) (Ground Floor
(GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are
amended to read as follows:
(a) The following uses may be conditionally allowed on the ground floor in the GF
ground floor combining district, subject to issuance of a conditional use permit in accord with
Chapter 18.76 (Permits and Approvals) and with the additional finding required by subsection
(b), subject to restrictions in Section 18.40.160:
(1) Business or trade school;
(2) Commercial recreation over 5,000 square feet in gross floor area or with
frontage on University Avenue;
(3) Day care;
(4) Financial services, except drive in services;
(5) General business service;
(6) All other uses conditionally permitted in the applicable underlying district,
provided such uses are not on the ground floor.
(b) The director may grant a conditional use permit under this section only if he or
she makes the following findings in addition to the findings required by Chapter 18.76 (Permits
and Approvals):
(1) The location, access or design of the ground floor space of the existing building
housing the proposed use, creates exceptional or extraordinary circumstances or conditions
applicable to the property involved that do not apply generally to property in the same district.
(2) The proposed use will not be determined to the retail environment or the
pedestrian-oriented design objectives of the GF combining district.
(c) Any use conditionally permitted pursuant to this section shall be effective only
during the existence of the building that created the exceptional circumstance upon which the
finding set forth in subsection (b) was made.
SECTION 11. Any provision of the Palo Alto Municipal Code or appendices thereto
inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no
further, is hereby repealed or modified to that extent necessary to effect the provisions of this
Ordinance.
SECTION 12. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
*NOT YET APPROVED*
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Ordinance. The City Council hereby declares that it would have passed this Ordinance and each
and every section, subsection, sentence, clause, or phrase not declared invalid or
unconstitutional without regard to whether any portion of the ordinance would be
subsequently declared invalid or unconstitutional.
SECTION 13. The Council finds that the adoption of this ordinance is exempt from the
provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections
15061(b)(3) because it can be seen.
SECTION 14. This ordinance shall be effective on the thirty-first date after the date of its
adoption and shall expire upon the earlier of June 30, 2022 or adoption of replacement
legislation by the City Council. Upon expiration of this ordinance, the City Clerk shall direct the
City’s codifier to update the Palo Alto Municipal Code as appropriate.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning & Development
Services