Loading...
HomeMy WebLinkAboutStaff Report 2411-3767 / 2410-3737CITY OF PALO ALTO Retail Committee Regular Meeting Wednesday, November 20, 2024 9:00 AM     Agenda Item     1.Study Session: Filling Retail Vacancies in the University Avenue Downtown, Late Packet Report, Staff Presentation Retail Committee Staff Report Report Type: STUDY SESSION Lead Department: City Manager Meeting Date: November 20, 2024 Report #:2411-3767 TITLE Study Session: Filling Retail Vacancies in the University Avenue Downtown This report will be a late packet report published on November 14, 2024. 5 8 4 8 Retail Committee Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: City Manager Meeting Date: November 20, 2024 Report #:2410-3737 TITLE Study Session: Filling Retail Vacancies in the University Avenue Downtown RECOMMENDATION Staff recommends that the Ad Hoc Retail Committee hold a study session to discuss opportunities for filling Retail Vacancies in the University Avenue Downtown with a focus on the City’s permitting process, the retail landscape and opportunities for greater partnership with the private sector, as well as activations of vacant storefronts. EXECUTIVE SUMMARY The ad hoc Retail Committee expressed interest in engaging stakeholders in a discussion about filling retail vacancies in the University Avenue downtown. This study session will be facilitated by Aaron Aknin from the Good City Company. The conversation will feature stakeholders from different segments including property brokers, property owners, retailers, the Chamber of Commerce, and residents. City staff will also engage in the conversation, including participants from Economic Development, Planning and Development Services, Public Works, and the City’s Public Art Program. The conversation is expected to inform potential future efforts from external and internal stakeholders to address retail vacancies. This report includes background information on City efforts throughout the University Avenue Downtown and briefly highlights topics that the ad hoc Retail Committee expressed interest in discussing. BACKGROUND The ad hoc Retail Committee supports engagement with business and community stakeholders and facilitates feedback to staff on ongoing work. The ad hoc Retail Committee discussed the structure, topics, and format of a study session to discuss retail vacancies as part of its October 16 meeting.1 This study session represents continued efforts to engage those stakeholders and 1 October 16, 2024, Ad Hoc Retail Committee: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=15620 5 8 4 8 inform potential next steps for the City’s efforts to enhance economic vibrancy. More information about the ad hoc Retail Committee can be found on its website2. Parallel to the work of the ad hoc Retail Committee, many other efforts are underway throughout the University Avenue downtown. Those efforts are discussed below for additional context for the conversation about retail vacancies in the University Avenue Downtown. University Avenue Downtown Efforts As part of the City’s commitment to enhancing economic vibrancy in the University Avenue Downtown, a number of efforts are underway to enhance the physical infrastructure of the commercial core. This includes near-term efforts, the University Avenue Streetscape Project, and work on the car-free street portion of Ramona. Near-Term Efforts Below are some examples of near-term efforts that have been completed or are currently underway that positively contribute to the University Avenue downtown. •Enhanced Cleanliness: Using overtime, this effort has resulted in less litter, greater cleanliness, and has generated positive feedback. Ongoing resources to support this increased level of effort still need to be identified and presented for discussion. •Lytton Plaza: This project included the addition of new furniture, sprucing up the planters, and a thorough cleaning of the plaza. •Newsstands: Sixty-two broken newsstands have been removed throughout the City; staff is actively working to contact publishers and vendors to consolidate the racks on each block. This work expected to be completed by Spring 2025. •Power Washing of Garages: Power washing of the downtown parking garages is partially complete; Garage Q (High/Alma) and Civic Center are complete. Garage S/L (Bryant/Lytton) will be done later this year, and will be followed by Lot J (Cowper/Webster) and Garage R (Alma/High) soon after the new year. •Curb Ramps: Curb ramps at intersections throughout the University Avenue Downtown area are being replaced to comply with the American with Disabilities Act. 22 have been replaced and the remaining two are expected to be completed by the end of November. •Hamilton/Ramona Signage and Striping: New traffic signage and striping have been installed at the intersection of Hamilton Avenue and Ramona Street. The improvements replaced temporary delineators and signage to better support the Car-Free street portion of Ramona. This has improved the aesthetics of the area, will help the area free of debris, and addresses concerns from stakeholders about the conditions there. 2 Retail Committee Website: https://www.cityofpaloalto.org/Departments/City-Clerk/City-Council- Committees/Retail-Committee 5 8 4 8 University Avenue Streetscape Since the Retail Committee meeting on August 21, staff has conducted stakeholder outreach to solicit feedback on the project scope. On September 10, the newly established downtown stakeholder working group convened for the first time. Staff sought engagement on the project vision, goals, scope, and budget. The working group unanimously supported widening sidewalks, 60% supported a project scope with wider sidewalks between High and Cowper streets, and sidewalk re-paving and street improvements between Cowper and Webster streets, 20% supported a slightly expanded scope while another 20% supported a reduced scope. The working group is scheduled to meet on November 13 to provide additional input on the concept design. A community survey was launched on October 11 and will be open through November 24. As of November 7, 156 responses had been received. Common themes that emerged from the preliminary responses are briefly described below. •Enhancing the pedestrian experience and creating outdoor opportunities for dining and retail were identified as the top two priorities for the streetscape project. •Landscaping, Seating and Public Gathering Spaces, and Bike Parking were identified as the top three elements for sidewalk corners. •Murals, Special Events, and History Walk were identified as the top three ways to best highlight Palo Alto as the Birthplace of Silicon Valley •Lytton Plaza, Historic Ramona Street, and Centennial Alley were identified as the top three focal gathering spaces. Staff will bring forward a recommended concept plan to Council in early December. That discussion will seek Council approval to proceed to the next phase of the project which includes preliminary design, environmental analysis, and an assessment district feasibility study. More information is available on the project website.3 Car-Free Ramona Street Staff has hired the M-Group to complete a CEQA analysis for the permanent vehicle closure of both Ramona Street and California Avenue. The CEQA analysis is necessary to inform discussions of a potential General Plan amendment that will allow California Avenue and a portion of Ramona Street to become permanently car free. The proposed General Plan amendment could be brought forward for Council consideration in spring 2025. 3 University Avenue Streetscape Project Website: https://www.cityofpaloalto.org/Departments/Public- Works/Engineering-Services/Engineering-Projects/University-Avenue-Streetscape-Project 5 8 4 8 Staff has also selected a consultant to develop outdoor dining standards and complete a street design and wayfinding signage for the car free portion of Ramona Street. A recommendation to award a contract to the consultant for the first phase of the project is anticipated to come before City Council for approval in early December. ANALYSIS Although the work described above is necessary to improve conditions in the University Avenue Downtown, more can be done with the Downtown stakeholders to spark economic vibrancy and fill retail vacancies in this important commercial core. This study session is meant to facilitate better understanding of the concerns from different stakeholder segments about the University Avenue downtown. Through conversation with stakeholders, the ad hoc Retail Committee, and staff will be able to discuss what is working well, what areas exist for improvement, and inform potential next steps to enhance economic vitality. Format of Study Session Based on discussion with the ad hoc Retail Committee in October, this study session will be conducted as a semi-structured discussion, with Aaron Aknin serving as the facilitator. He will guide the conversation while actively engaging all participating stakeholders, ensuring a productive dialogue and engagement between stakeholders and the ad hoc Retail Committee. Panelists will include stakeholders representing property owners, brokers, retail, the Chamber of Commerce and residents. As a meeting subject to the brown act, members of the public will also be able to participate, albeit in a more limited manner than panelists. The discussion will center on filling retail vacancies in the University Avenue Downtown. Given the breadth of that topic, the ad hoc Retail Committee expressed an interest more specific topics as part of its October 16 meeting. These topics provide more structure to help guide the study session and are introduced below. Entitlement and Permitting Processes On Monday, November 18 the City Council is scheduled to discuss changes to the City’s municipal code to facilitate a wider variety of uses in commercial cores, reduce uncertainty by allowing more uses without Conditional Use Permits, and enable practical waivers when appropriate. That staff report can be found online with the agenda for November 18 City Council meeting.4 This item was previously discussed with the retail committee on September 18.5 4November 18 City Council Item #10: https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6487&meetingTemplateType=2&comp iledMeetingDocumentId=12203 5 September 18 Retail Committee: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14946 5 8 4 8 In addition to these changes to the City’s planning regulations, the ad hoc Retail Committee has also had extensive conversations about the ‘Palo Alto process’. The ad hoc expressed concern regarding perceived difficulties for applicants and the need to address this reputational issue, as well as a desire to understand current efforts to streamline the permitting process. In conversations with staff, stakeholders have expressed a variety of perspectives on this topic. At the study session, this topic can be further discussed and can include discussion of what is working well and what can be improved. Current Retail Landscape (Including Retail Demand and Retail Marketing Efforts) Another topic to further focus the study session is the current retail landscape and how that context impacts the University Avenue Downtown. Property Owners and Brokers will be able to discuss trends they are seeing in similar markets and what tools, options, and characteristics help distinguish commercial districts with similar profiles. The City’s Comprehensive Economic Development Strategy touched on some of these elements and highlighted customers are increasingly seeking ‘experiential’ retail – prioritizing retail that offers a compelling in-person shopping experience. This has buoyed restaurants but has caused difficulties for many brick-and-mortar retailers. Another element that can distinguish a commercial core like University Avenue downtown is the presence of a Business Improvement District (BID) or other commercial district entity. These organizations provide centralized leadership for businesses in a commercial core to better market themselves and channel their efforts productively. Neighboring jurisdictions like Burlingame leverage their BIDs for sustained engagement and partnership with their business stakeholders. A BID can also serve as a marketing arm for member businesses, organizing not only events and activities but also unified advertisement campaigns that contribute to University Avenue’s sense of place. The City of Palo Alto’s downtown BID has not had an active managing association nor collected assessments since the COVID-19 pandemic, but there has been discussion at the ad hoc Retail Committee about restarting the BID. This effort would require understanding, effort, and engagement from the local businesses to be successful. Effective engagement of stakeholders and discussions about the value proposition for a BID can take place during the study session and through subsequent work. Activating Vacant Storefronts While one goal of economic vibrancy would ideally yield long-term tenants and no vacancies in University Avenue Downtown retail storefronts, the current conditions of the street could benefit from stopgap improvements to vacant storefronts. These could include opportunities to activate vacant storefronts, which could range from installing Public Art on a short-term basis to enhance the curb appeal to developing a “pop-up” program for short-term tenants. 5 8 4 8 Each of these options requires staff effort, resources, and partnership with stakeholders in the private sector. Through discussion with external stakeholders, including brokers and property owners, and internal stakeholders such as staff from Public Art, the study session will be able to better explore the necessary effort and potential benefit from each option. FISCAL/RESOURCE IMPACT The Study Session does not require additional funding at this time for the actions outlined in this report. Any additional costs for project-specific investments will be further refined and discussed with the City Council as the project elements continue to take shape. STAKEHOLDER ENGAGEMENT Staff reached out to both internal and external stakeholders who could provide valuable insights on the topics addressed in this report to encourage participation in the study session. The Study Session will also be promoted through the City’s ‘Business Connect’ newsletter. ENVIRONMENTAL REVIEW The Study Session does not qualify as a project under CEQA. ATTACHMENTS None. APPROVED BY: Ed Shikada, City Manager Retail Committee Study Session City of Palo Alto November 20, 2024 Introductions Entitlement and Permitting Process Current Retail Landscape Activating Vacant Storefronts OVERVIEW What aspects of the permitting process are working well, and what areas need improvement? How will recent zoning code changes impact filling downtown vacancies? What should future phases focus on? What specific challenges have stakeholders faced in the permitting process? ENTITLEMENT & PERMITTING What types of businesses, services and experiences are in demand in today’s landscape? How could restarting the Business Improvement District (BID) help fill vacancies? What strategies can support and attract successful brick-and-mortar businesses Downtown? CURRENT RETAIL LANDSCAPE How can the City, property owners, and brokers collaborate to activate vacant spaces effectively with pop-up uses and art installations? What challenges do property owners face when filling spaces with temporary uses or art installations? Are there other ideas for temporary activation? ACTIVATING VACANT STOREFRONTS Thank you for your participation!