HomeMy WebLinkAboutOrdinance 56371
0160159_kb2_20241106_ay16
Ordinance No. 5637
Emergency Ordinance of the Council of the City of Palo Alto Amending Chapters
18.04, 18.16, 18.30(A), and 18.30(C) of the Palo Alto Municipal Code to
Immediately Implement High Priority Retail Revitalization Measures
The Council of the City of Palo Alto ORDAINS as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A.Like many communities, the City of Palo Alto has experienced high vacancy rates in retail
districts, which have been compounded by challenges associated with the COVID-19
pandemic as well as ongoing retail trends. Accordingly, the City Council has included retail
revitalization as a Council priority for the past several years.
B.Throughout 2023 and 2024, City staff, the Planning and Transportation Commission (PTC),
and the City’s consultant Michael Baker International (MBI) worked together to develop a
Retail Study Report intended to inform a citywide retail zoning strategy.
C.On September 18, 2024, the City Council Retail Committee reviewed the Final Draft Retail
Study Report and provided direction to staff on several zoning amendments should be
implemented immediately to support retail and retail-like uses in the City.
D.Although the PTC held six hearings on the Retail Study (in addition to four meetings of the
PTC retail ad hoc committee), the PTC has not yet considered or recommended specific,
proposed amendments to Title 18 (Zoning) of the Palo Alto Municipal Code (PAMC).
E.The City Council finds that there is insufficient time for the PTC to consider and recommend
those amendments identified by the City Council Retail Committee for immediate
implementation. The Council therefore finds that an interim ordinance pursuant to PAMC
Section 18.80.090 is an appropriate measure, pending consideration of a permanent
ordinance by the PTC. Upon recommendation of City Staff and the Planning and
Transportation Commission, the Council of the City of Palo Alto desires to adopt regulations
responding to and implementing these state laws.
F.In addition, the City Council finds that an emergency ordinance enacting the following
amendments to Title 18 of the PAMC is necessary to preserve the public peace, health, or
safety, because the measures contained herein are necessary to support a thriving retail
sector, which is an essential priority for the City.
//
Docusign Envelope ID: EC102B33-EE87-4A41-8513-D2E91D05B193
2
0160159_kb2_20241106_ay16
SECTION 2. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18
(Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined;
deletions struck-through; text omitted but unchanged noted by bracketed ellipses):
18.04.030 Definitions
(a) Throughout this title the following words and phrases shall have the meanings ascribed in this
section.
[. . .]
(12.5) "Automobile dealership" means a use primarily engaged in sale, lease, service, or minor
repair of new and used automobiles and trucks. Other accessory services incidental and
supporting auto sales include service bays for engine, transmission, air conditioning, and minor
painting, body and fender repair, car wash, auto rental, and similar services.
(12.6) “Automobile showroom” means a use primarily engaged in the sale of new and used
automobiles and trucks, or the display and demonstration of automobiles and trucks for the
purpose of facilitating sales, but which does not involve on-site storage of inventory, except as
incidental to the showroom use. Automobile showroom serves primarily pedestrian clientele
and is distinct from Automobile Dealership.
[. . .]
(56) “Financial service” means a use providing financial services to individuals, firms, or other
entities. The term “financial service” includes banks, savings and loan institutions, loan and
lending institutions, credit unions and similar services.
(A) “Retail financial service” means a financial service use operating in a retail-oriented
manner, offering face-to-face interactions, and convenient in-person transactions in
locations designed for public access. These services includes retail banks, savings and loan
institutions, loan and lending offices, credit unions, and similar services that prioritize walk-
in customers with access to immediate financial solutions or combined with a publicly
accessible retail component.
[. . .]
(57.6) “Formula retail business” means an retail, personal, or eating and drinking service that
is one of ten (10) fifty (50) or more business locations in the State of California United States
required by contractual or other arrangement to maintain any of the following standardized
characteristics: merchandise, menu, services, decor, uniforms, architecture, facade, color
scheme, signs, trademark, or servicemark. For purposes of this definition:
(A)“Standardized merchandise, menu and/or services” means 50% or more of in- stock
merchandise from a single distributor bearing the same or similar markings; 50% or
Docusign Envelope ID: EC102B33-EE87-4A41-8513-D2E91D05B193
3
0160159_kb2_20241106_ay16
more of menu items identical in name and presentation with other locations; or 50%
or more of services offered identical in name or presentation with other locations.
(B)“Decor” means the style of interior furnishings, which may include but is not limited
to, style of furniture, wall coverings or permanent fixtures.
(C)“Color Scheme” means the selection of colors used throughout, such as on the
furnishings, permanent fixtures, and wall coverings, or as used on the facade.
(D)“Uniforms” means standardized items of clothing including but not limited to
standardized aprons, pants, shirts, smocks or dresses, hats, and pins (other than name
tags) as well as standardized colors of clothing.
(E)“Facade” means the face or front of a building, including awnings, looking onto a
street or an open space.
(F)“Trademark” means a word, phrase, symbol or design, or a combination of words,
phrases, symbols or designs that identifies and distinguishes the source of the goods
from one party from those of others.
(G)“Servicemark” means a word, phrase, symbol or design, or a combination of words,
phrases, symbols or designs that identifies and distinguishes the source of a service
from one party from those of others.
[. . .]
(125.1) “Retail-like use” means a use generally open to the public during typical business hours
and predominantly engaged in providing services closely related to retail services, including but
not limited to:
(A) Eating and drinking services, as defined in subsection (47);
(B) Hotels, as defined in subsection (73);
(C) Personal services, as defined in subsection (114);
(D) Theaters;
(E) Travel agencies;
(F) Commercial recreation, as defined in subsection (33);
(G) Commercial nurseries;
(H) Automobile showrooms dealerships, as defined in subsection (12.5 12.6); and
(I) Day care centers, as defined in subsection (42). ;
(J)Retail financial services, as defined in subsection (56)(A);
(K)Other commercial uses, services, or activities determined by the Director of Planning
and Development Services to be accessible to the general public, generate walk-in
pedestrian clientele, and provide a substantial contribution to pedestrian activity.
[. . .]
SECTION 3. Sections 18.30(A).040 (Permitted Uses) and 18.30(A).050 (Conditional Uses),
and 18.30(A).070 (Waivers and Adjustments) of Chapter 18.30(A) (Retail Shopping (R) Combining
District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as
follows (additions underlined; deletions struck-through; text omitted but unchanged noted by
bracketed ellipses):
Docusign Envelope ID: EC102B33-EE87-4A41-8513-D2E91D05B193
4
0160159_kb2_20241106_ay16
18.30(A).040 Permitted Uses
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; laundry and cleaning services as defined in Section 18.04.030(114)(B); fitness
or exercise studios exceeding 1,800 square feet in gross floor area; and learning centers
intended for individual or small group settings.
(c)Retail services.
(d)Retail financial services, except drive-in services.
(e)Pet grooming services.
(f)Automobile showroom.
(d)(g) All other uses permitted in the underlying commercial district, provided they are not
located on a ground floor.
18.30(A).050 Conditional Uses
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)(a) All other conditional uses allowed in the underlying commercial district provided they are
not located on a ground floor.
(c)(b) Formula retail businesses on California Avenue.
(d)(c) Beauty shops, nail salons, barbershops, f Fitness or exercise studios exceeding 1,800
square feet in gross floor area on California Avenue; and learning centers intended for individual
or small group settings.
[. . .]
18.30(A).070 Waivers and adjustments.
(a)The following shall be grounds for a request for waiver or adjustment of this Ordinance Chapter:
(a)(1) Economic Hardship. An applicant may request that the requirements of this Ordinance
Chapter be adjusted or waived only upon a showing that strict application would result in
an unreasonable financial burden on the property. applying the requirements of this
Ordinance would effectuate an unconstitutional taking of property or otherwise have an
unconstitutional application to the property.
(2)Alternative Viable Use. An applicant may request that the requirements of this Chapter
18.30(A) be adjusted or waived based on a showing that: the permitted retail or retail-like
use is not viable; the proposed alternative use will support the purposes of the combining
district and Comprehensive Plan land use designation; and the proposed use will encourage
active pedestrian-oriented activity and connections.
(b)Documentation. The applicant shall bear the burden of presenting substantial evidence to
support a waiver or modification request under this section and shall set forth in detail the
factual and/or legal basis for the claim, including all supporting technical documentation. Any
Docusign Envelope ID: EC102B33-EE87-4A41-8513-D2E91D05B193
5
0160159_kb2_20241106_ay16
request under this section shall be submitted to the Planning and Development Services
Community Environmental Director together with the fee specified in the municipal fee
schedule and an economic analysis or other supporting documentation. A request under this
section shall be acted upon by the City Council.
SECTION 4. Sections 18.30(C).020 (Permitted Uses) and 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 hereby amended, and Section 18.30(C).050 (Waivers and
adjustments) is hereby added as follows (additions underlined; deletions struck-through; text
omitted but unchanged noted by bracketed ellipses):
18.30(C).020 Permitted Uses
(a) The following uses shall be permitted in the GF combining district, subject to restrictions in
Section 18.40.180:
(1) Eating and drinking;
(2) Hotels;
(3) Personal services, except for the following on parcels with frontage on University Avenue:
fitness and exercise studios exceeding 3,000 square feet in gross floor area, where uses defined in
Section 18.04.030(114)(B), (G),(H), and (I) 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;
(8)Retail financial services, except drive-in services;
(9) Pet grooming services;
(10)Automobile showroom;
(8)(11) All other uses permitted in the underlying district, provided such uses are not on the
ground floor.
(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 ground
floor use(s), and subject to the approval of the Director.
18.30(C).030 Conditional Uses
(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;
Docusign Envelope ID: EC102B33-EE87-4A41-8513-D2E91D05B193
6
0160159_kb2_20241106_ay16
(4) Financial services, except drive in services;
(5 4) General business service;
(6)Learning centers intended for individual or small group settings;
(7 5) 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.
[. . .]
18.30(C).050 Waivers and adjustments.
(a)The following shall be grounds for a request for waiver or adjustment of this Chapter:
(1) Economic Hardship. An applicant may request that the requirements of this Chapter be
adjusted or waived upon a showing that strict application would result in an unreasonable
financial burden on the property.
(2) Alternative Viable Use. An applicant may request that the requirements of this Chapter
18.30(A) be adjusted or waived based on a showing that: the permitted retail or retail-like
use is not viable; the proposed alternative use will support the purposes of the combining
district and Comprehensive Plan land use designation; and the proposed use will encourage
active pedestrian-oriented activity and connections.
(b) Documentation. The applicant shall bear the burden of presenting substantial evidence to
support a waiver or modification request under this section and shall set forth in detail the
factual and/or legal basis for the claim, including all supporting technical documentation. Any
request under this section shall be submitted to the Planning and Development Services
Director together with the fee specified in the municipal fee schedule and an economic analysis
or other supporting documentation. A request under this section shall be acted upon by the
City Council.
SECTION 5. If any section, subsection, clause or phrase of this Ordinance is for any reason
held to be invalid, such decision shall not affect the validity of the remaining portion or sections of
the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each
section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more
sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 6. The Council finds that the Ordinance is exempt from the California
Docusign Envelope ID: EC102B33-EE87-4A41-8513-D2E91D05B193
7
0160159_kb2_20241106_ay16
Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can
be seen with certainty that there is no possibility that the foregoing amendments to reduce retail
vacancies will have a significant effect on the environment.
SECTION 7. This Ordinance shall be effective upon adoption by a vote of four-fifths of the
council members present and shall remain in effect until December 31, 2026 or upon adoption of
replacement legislation by the City Council, whichever occurs first.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Assistant City Attorney City Manager
Director of Planning and
Development Services
NOVEMBER 18, 2024
BURT, KOU, LAUING, LYTHCOTT-HAIMS, STONE, TANAKA, VEENKER
Docusign Envelope ID: EC102B33-EE87-4A41-8513-D2E91D05B193
Certificate Of Completion
Envelope Id: EC102B33EE874A418513D2E91D05B193 Status: Completed
Subject: Ordinance 5637 - Retail Revitalization Emergency Ordinance
Source Envelope:
Document Pages: 7 Signatures: 5 Envelope Originator:
Certificate Pages: 2 Initials: 0 Christine Prior
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
Christine.Prior@CityofPaloAlto.org
IP Address: 199.33.32.254
Record Tracking
Status: Original
12/4/2024 9:18:00 AM
Holder: Christine Prior
Christine.Prior@CityofPaloAlto.org
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign
Signer Events Signature Timestamp
Albert Yang
Albert.Yang@CityofPaloAlto.org
Assistant City Attorney
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 174.21.165.146
Sent: 12/4/2024 9:23:39 AM
Viewed: 12/4/2024 9:24:34 AM
Signed: 12/4/2024 9:34:25 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Jonathan Lait
Jonathan.Lait@CityofPaloAlto.org
Director, Planning and Development Services
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Uploaded Signature Image
Using IP Address: 199.33.32.254
Sent: 12/4/2024 9:34:27 AM
Viewed: 12/4/2024 11:55:21 AM
Signed: 12/4/2024 11:55:28 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Ed Shikada
Ed.Shikada@CityofPaloAlto.org
Ed Shikada
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 12/4/2024 11:55:29 AM
Viewed: 12/5/2024 8:49:43 AM
Signed: 12/5/2024 8:49:52 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Greer Stone
Greer.Stone@CityofPaloAlto.org
Vice Mayor
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 64.125.108.8
Sent: 12/5/2024 8:49:54 AM
Viewed: 12/12/2024 9:59:20 AM
Signed: 12/12/2024 9:59:30 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Signer Events Signature Timestamp
Mahealani Ah Yun
Mahealani.AhYun@CityofPaloAlto.org
City Clerk
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 50.145.25.81
Sent: 12/12/2024 9:59:32 AM
Viewed: 12/13/2024 11:14:49 AM
Signed: 12/13/2024 11:15:27 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 12/4/2024 9:23:39 AM
Certified Delivered Security Checked 12/13/2024 11:14:49 AM
Signing Complete Security Checked 12/13/2024 11:15:27 AM
Completed Security Checked 12/13/2024 11:15:27 AM
Payment Events Status Timestamps