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HomeMy WebLinkAbout2024-01-31 Planning & Transportation Commission Agenda PacketPLANNING AND TRANSPORTATION COMMISSION Regular Meeting Wednesday, January 31, 2024 Community Meeting Room & Hybrid 6:00 PM Planning and Transportation Commission meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. Commissioner names, biographies, and archived agendas and minutes are available at http://bit.ly/PaloAltoPTC.  VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/91641559499) Meeting ID: 916 4155 9499    Phone: 1(669)900‐6833 PUBLIC COMMENTS Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to Planning.Commission@CityofPaloAlto.org and will be provided to the Commission and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. Spokespersons that are representing a group of five or more people who are identified as present at the meeting at the time of the spokesperson's presentation will be allowed up to fifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking members agree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes for all combined speakers. The Chair may reduce the allowed time to speak for Study Sessions and Action Items to two (2) minutes or less to accommodate a larger number of speakers. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to Planning.Commission@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Commission reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. CALL TO ORDER/ ROLL CALL PUBLIC COMMENT  Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker. AGENDA CHANGES, ADDITIONS AND DELETIONS The Chair or Board majority may modify the agenda order to improve meeting management. CITY OFFICIAL REPORTS 1.Director's Report, Meeting Schedule and Assignments STUDY SESSION Public Comment is Permitted. Three (3) minutes per speaker. 2.Study Session: Peer Cities Comparison and Stakeholder Interviews Results COMMISSIONER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s). ADJOURNMENT PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. W r i t t e n   p u b l i c   c o m m e n t s  m a y   b e   s u b m i t t e d   b y   e m a i l   t o planning.commission@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Commission, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30, Firefox 27, Microsoft Edge 12, Safari 7. Certain functionality may be disabled in older browsers including Internet Explorer. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Commission, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Commission. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN    Meeting ID: 916 4155 9499   Phone:1‐669‐900‐6833  Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. PLANNING AND TRANSPORTATION COMMISSIONRegular MeetingWednesday, January 31, 2024Community Meeting Room & Hybrid6:00 PMPlanning and Transportation Commission meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Commissioner names, biographies, and archived agendas andminutes are available at http://bit.ly/PaloAltoPTC. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/91641559499)Meeting ID: 916 4155 9499    Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toPlanning.Commission@CityofPaloAlto.org and will be provided to the Commission and availablefor inspection on the City’s website. Please clearly indicate which agenda item you arereferencing in your subject line.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up tofifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking membersagree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes forall combined speakers. The Chair may reduce the allowed time to speak for Study Sessions andAction Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to Planning.Commission@CityofPaloAlto.org at least 24 hours prior to the meeting.Once received, the Clerk will have them shared at public comment for the specified item. Touphold strong cybersecurity management practices, USB’s or other physical electronic storagedevices are not accepted.TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Commission reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. CALL TO ORDER/ ROLL CALL PUBLIC COMMENT  Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker. AGENDA CHANGES, ADDITIONS AND DELETIONS The Chair or Board majority may modify the agenda order to improve meeting management. CITY OFFICIAL REPORTS 1.Director's Report, Meeting Schedule and Assignments STUDY SESSION Public Comment is Permitted. Three (3) minutes per speaker. 2.Study Session: Peer Cities Comparison and Stakeholder Interviews Results COMMISSIONER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS AND AGENDAS Members of the public may not speak to the item(s). ADJOURNMENT PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. W r i t t e n   p u b l i c   c o m m e n t s  m a y   b e   s u b m i t t e d   b y   e m a i l   t o planning.commission@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Commission, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30, Firefox 27, Microsoft Edge 12, Safari 7. Certain functionality may be disabled in older browsers including Internet Explorer. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Commission, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Commission. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN    Meeting ID: 916 4155 9499   Phone:1‐669‐900‐6833  Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. PLANNING AND TRANSPORTATION COMMISSIONRegular MeetingWednesday, January 31, 2024Community Meeting Room & Hybrid6:00 PMPlanning and Transportation Commission meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org. Commissioner names, biographies, and archived agendas andminutes are available at http://bit.ly/PaloAltoPTC. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/91641559499)Meeting ID: 916 4155 9499    Phone: 1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance toPlanning.Commission@CityofPaloAlto.org and will be provided to the Commission and availablefor inspection on the City’s website. Please clearly indicate which agenda item you arereferencing in your subject line.Spokespersons that are representing a group of five or more people who are identified aspresent at the meeting at the time of the spokesperson's presentation will be allowed up tofifteen (15) minutes at the discretion of the Chair, provided that the non‐speaking membersagree not to speak individually. The Chair may limit Public Comments to thirty (30) minutes forall combined speakers. The Chair may reduce the allowed time to speak for Study Sessions andAction Items to two (2) minutes or less to accommodate a larger number of speakers.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to Planning.Commission@CityofPaloAlto.org at least 24 hours prior to the meeting.Once received, the Clerk will have them shared at public comment for the specified item. Touphold strong cybersecurity management practices, USB’s or other physical electronic storagedevices are not accepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Commission reserves the right to use more or less time on any item,to change the order of items and/or to continue items to another meeting. Particular items maybe heard before or after the time estimated on the agenda. This may occur in order to bestmanage the time at a meeting or to adapt to the participation of the public.CALL TO ORDER/ ROLL CALLPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. Three (3) minutes per speaker.AGENDA CHANGES, ADDITIONS AND DELETIONSThe Chair or Board majority may modify the agenda order to improve meeting management.CITY OFFICIAL REPORTS1.Director's Report, Meeting Schedule and AssignmentsSTUDY SESSIONPublic Comment is Permitted. Three (3) minutes per speaker.2.Study Session: Peer Cities Comparison and Stakeholder Interviews ResultsCOMMISSIONER QUESTIONS, COMMENTS, ANNOUNCEMENTS OR FUTURE MEETINGS ANDAGENDAS Members of the public may not speak to the item(s). ADJOURNMENT PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. W r i t t e n   p u b l i c   c o m m e n t s  m a y   b e   s u b m i t t e d   b y   e m a i l   t o planning.commission@cityofpaloalto.org. 2. Spoken public comments using a computer will be accepted through the teleconference meeting. To address the Commission, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30, Firefox 27, Microsoft Edge 12, Safari 7. Certain functionality may be disabled in older browsers including Internet Explorer. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 3. Spoken public comments using a smart phone will be accepted  through the teleconference meeting. To address the Commission, download the Zoom application onto your phone from the Apple App Store or Google Play Store and enter the Meeting ID below. Please follow the instructions above. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Commission. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN    Meeting ID: 916 4155 9499   Phone:1‐669‐900‐6833  Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. Item No. 1. Page 1 of 2 Planning & Transportation Commission Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: January 31, 2024 Report #: 2401-2551 TITLE Director's Report, Meeting Schedule and Assignments RECOMMENDATION Staff recommends that the Planning and Transportation Commission (PTC) review and comment as appropriate. BACKGROUND This document includes the following items:  PTC Meeting Schedule  PTC Representative to City Council (Rotational Assignments)  Upcoming PTC Agenda Items Commissioners are encouraged to contact Veronica Dao (Veronica.Dao@CityofPaloAlto.org) to notify staff of any planned absences one month in advance, if possible, to ensure the availability of a PTC quorum. PTC Representative to City Council is a rotational assignment where the designated commissioner represents the PTC’s affirmative and dissenting perspectives to Council for quasi-judicial and legislative matters. Representatives are encouraged to review the City Council agendas (https://www.cityofpaloalto.org/City-Hall/City-Council/Council-Agendas-Minutes) for the months of their respective assignments to verify if attendance is needed or contact staff. Prior PTC meetings are available online at https://midpenmedia.org/category/government/city- of-palo-alto/boards-and-commissions/planning-and-transportation-commission. UPCOMING PTC ITEMS February 28: (1) 2501 Embarcadero Advanced Water Purification System (Site and Design Review) Item 1 Staff Report     Packet Pg. 4     Item No. 1. Page 2 of 2 (2) 4075 El Camino Way (Amending Planned Community PC5116) to add 14 assisted living units (5 studios, 9 one-bedroom units) (3) Tentative - Study Session: Retail Study Recommendations Part 1 March 13: Study Session: Retail Study Recommendations Part 2 March 18: Joint Meeting with Council on Housing Element revisions March 27: Bicycle Pedestrian Transportation Plan Update Vision Statement/Goals, Feedback on Existing Conditions Technical Analysis, and Upcoming Engagement Activities ATTACHMENTS Attachment A: 2024 Schedule & Assignments AUTHOR/TITLE: Amy French, Chief Planning Official Item 1 Staff Report     Packet Pg. 5     Planning & Transportation Commission 2024 Meeting Schedule & Assignments 2024 Schedule Meeting Dates Time Location Status Planned Absences 1/10/2024 6:00 PM Hybrid Cancelled 1/31/2024 6:00 PM Hybrid Regular 2/14/2024 6:00 PM Hybrid Canceled 2/28/2024 6:00 PM Hybrid Regular 3/13/2024 6:00 PM Hybrid Regular 3/18/2024 5:30 PM Hybrid Joint Meeting w/ Council 3/27/2024 6:00 PM Hybrid Regular 4/10/2024 6:00 PM Hybrid Regular 4/24/2024 6:00 PM Hybrid Regular 5/8/2024 6:00 PM Hybrid Regular 5/29/2024 6:00 PM Hybrid Regular 6/12/2024 6:00 PM Hybrid Regular 6/26/2024 6:00 PM Hybrid Regular 7/10/2024 6:00 PM Hybrid Regular 7/31/2024 6:00 PM Hybrid Regular 8/14/2024 6:00 PM Hybrid Regular 8/28/2024 6:00 PM Hybrid Regular 9/11/2024 6:00 PM Hybrid Regular 9/25/2024 6:00 PM Hybrid Regular 10/9/2024 6:00 PM Hybrid Regular 10/30/2024 6:00 PM Hybrid Regular 11/13/2024 6:00 PM Hybrid Regular 11/27/2024 6:00 PM Hybrid Regular 12/11/2024 6:00 PM Hybrid Regular 12/25/2024 6:00 PM Hybrid Cancelled 2024 Assignments - Council Representation (primary/backup) January February March April May June Cari Templeton Keith Reckdahl Bart Hechtman Doria Summa Bryna Chang George Lu Doria Summa Allen Akin Keith Reckdahl Cari Templeton George Lu Bryna Chang July August September October November December Allen Akin Bart Hechtman Doria Summa George Lu Bart Hechtman Keith Reckdahl Cari Templeton Bryna Chang George Lu Bart Hechtman Doria Summa Cari Templeton Item 1 Attachment A - 2024 Schedule & Assignments     Packet Pg. 6     Item No. 2. Page 1 of 4 Planning & Transportation Commission Staff Report From: Planning and Development Services Director Lead Department: Planning and Development Services Meeting Date: January 31, 2024 Report #: 2312-2390 TITLE Study Session: Peer Cities Comparison and Stakeholder Interviews Results RECOMMENDATION Staff recommends the Planning and Transportation Commission (PTC) receive a presentation from staff and the consultant regarding the results of the peer cities comparison and stakeholder interviews. BACKGROUND/SUMMARY October 25, 2023 PTC Meeting Staff and the consultant (MBI) provided the PTC an introduction to the project on October 25, 2023. The staff report1 and meeting minutes2 are viewable in the links provided below. The presentation provided an overview of the cities interviewed, including Redwood City and Mountain View in the first round of research, and in early fall 2023, Santa Monica; the interviews focused on zoning codes, parking policies and ground floor retail. The consultant noted there had been seven interviews with businesses, property owners, and the Chamber of Commerce. The consultant shared that the parking study has been focused on the City garages and on- street parking. There was interest from the public in adding bike parking to the study. The Consultant noted: 1 October 25, 2023 staff report for study session: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/agendas-minutes/planning-and-transportation-commission/2023/ptc-10.25-retail-study.pdf 2 PTC meeting minutes: https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas- minutes/planning-and-transportation-commission/2023/ptc-10.25.23-verbatim-minutes.pdf Item 2 Staff Report     Packet Pg. 7     Item No. 2. Page 2 of 4 •The parking analysis was to understand how much development the University Avenue, and California Avenue can absorb without parking in light of state law AB 2097, before figuring out parking strategies for additional development. •The study is focused on what that threshold would be, at what time the city needs to implement a parking strategy or Transportation Demand Manager (TDM) strategy. •The study is using the Streetsense report that had been prepared; it includes strategy for pedestrian and traffic improvement and mobility improvement and the Streetsense report recommendations will be integrated with the consultant report. Streetsense Recommendations The October PTC staff report referenced the City Council’s August 14, 2023 review of and action related to the Streetsense report (aka the Adoption of a Comprehensive Economic Development Strategy to Guide City Priorities, Initiatives, and Project Outcomes). The Council staff report and minutes are viewable via the link in the footnote34 The focus of this project will be zoning change recommendations in the Streetsense report, whereas the projects related to the streetscape will be addressed in other ongoing studies. This project aligns with the Streetsense recommendations under guiding principle 3, recommendations 9 and 10. Guiding Principle #3: Adopt policies that reflect changing market conditions by easing the regulatory burden for businesses, removing outdated restrictions that create hurdles to tenancy, and focus retail and retail-like uses in places where they are market-supported Recommendation 9: Streamline, update and/or remove unnecessary use restrictions and pursue regulatory reform to enable tenancy and competitiveness •Action 9.1: Consider removing or consolidating zoning overlays, incorporating an at-a- glance permitted use table and design standards, and an interactive online map with quick links to relevant regulations. •Action 9.2: Consider amending section 18.76.2, architectural review, of the municipal code to enable more over-the-counter approvals for minor changes •Action 9.3: Reevaluate the city-wide retail preservation ordinance and consider refocusing its applicability to targeted areas of existing retail concentration while also allowing flexibility in non-street facing portions of buildings •Action 9.4: Enable growth in neighborhood goods and services along California Avenue by updated the formula retail ordinance and easing use restrictions on in-demand neighborhood serving uses that are currently heavily 4 Link to August 14 2023 council agenda – item 5 is the streetsense report. https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13008 Item 2 Staff Report     Packet Pg. 8     Item No. 2. Page 3 of 4 Recommendation 10: Grow the market by enabling residential development in select areas of Downtown Palo Alto and California Avenue. •Action 10.1: Consider increase allowable height and floor area ratio (FAR) to accommodate residential in mixed-use projects. •Action 10.2: Allow exclusively residential projects, including the ground floor where currently restricted in the Cal Ave district •Action 10.3: Prioritize residential development on underutilized property as identified in the 2023-31 Housing Element. Peer City Interviews and Code Comparisons The City identified Santa Monica as a peer city for interviews and a study of their zoning code, aiming to draw comparisons with Palo Alto. The PTC, at its meeting of October 25, 2023, requested staff add Los Altos to the interviews. The consultant conducted these interviews and staff reviewed the Los Altos Zoning Code late 2023. This work supplements the original work comparing Palo Alto‘s code to Santa Monica‘s code. The presentation for January 31 will encapsulate the insights gained from these interviews with Peer Cities. The interview with Santa Monica, conducted on October 4, 2023, delved into aspects related to the Third Street Promenade. Similarly, the interview with Los Altos, conducted on November 27, 2023, focused on the Downtown Triangle area. The interview questions revolved around best practices for retail recovery, parking and zoning standards, implementation processes, the permitting process, and the impact of these measures on businesses in their respective jurisdictions. The consultant team also reviewed the zoning codes of these peer cities and drew comparisons with Palo Alto. Attachment A is the matrix prepared to reflect the zoning code comparison study. Stakeholder Interviews In addition to the Peer Cities interviews, the consultants engaged with various stakeholders, including developers and business owners. This group encompassed entities such as the Chamber of Commerce, Premier Property Management, Thoits Brothers, Ellis Partners, Performance Gaines (California Avenue), Italico (California Avenue), and Taste Buds Kitchen (Midtown). The presentation will provide a summary of the key findings from these interviews. Attachments B and C provide summaries of these interviews. The insights and discoveries derived from this research will serve as a guiding framework for future actions within Palo Alto, informing recommendations for potential changes to the existing zoning ordinance, devising parking strategies, and suggesting measures for streamlining the permit process. Item 2 Staff Report     Packet Pg. 9     Item No. 2. Page 4 of 4 Next Steps Moving forward, the study will progress to presenting and deliberating on suggested modifications to the zoning ordinance and introducing parking strategies. The upcoming PTC meetings will adopt a workshop format, where segments of the proposed zoning changes will be presented and discussed at each session. FISCAL/RESOURCE IMPACT This is a study session report; no action is being taken and therefore there is no fiscal impact. ATTACHMENTS A. Peer Cities Comparison Matrix B. Summary of Santa Monica Interview C. Summary of Los Altos Interview AUTHOR/TITLE: Amy French, Chief Planning Official Item 2 Staff Report     Packet Pg. 10     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 1 # ZONING STANDARD/APPROACH PALO ALTO SANTA MONICA LOS ALTOS Downtown Community Plan (Bayside Conservation - 3rd Street Promenade) Mixed-use and Commercial Districts (Neighborhood Commercial) 1 Level of regulation – Zone Districts Zone Districts • Downtown Commercial (CD) • Neighborhood Commercial (CN) • Community Commercial (CC) o Community Commercial 2 (CC[2]) Service Commercial (CS) Downtown Districts • Bayside Conservation (BC) – Third Street Promenade Area • Mixed-Use Boulevard (MUB) • Neighborhood Village (NV) • Transit Adjacent (TA) • Ocean Transition (OT) • Wilshire Transition (WT) • Lincoln Transition (LT) Design Guidelines Zone Districts • Neighborhood Commercial (NC) o Main Street o Pico Boulevard o Ocean Park Boulevard o Montana Avenue • Mixed-Use Boulevard Low (MUBL) • Mixed-Use Boulevard (MUB) • General Commercial (GC) Zone Districts • Commercial Downtown (CD) • Commercial Retail Sales (CRS) • Commercial Retail Sales/Office (CRS/OAD) 2 Overlay Districts Combining Districts • Retail Shopping (R) • Pedestrian Shopping (P) • Ground Floor (GF) Pedestrian and Transit Oriented Development (PTOD) Neighborhood Conservation (NC) • Purpose of identifying, conserving, maintaining, strengthening, and enhancing a neighborhood’s cohesive and distinctive architectural or physical characteristics. Off-Street Parking (A) • Intended to provide adequate parking facilities to support important commercial corridors and neighborhood commercial areas. Loyola Corners Specific Plan (LCSP) LC/SPZ overlay (14.42) applies to CN zoned areas surrounding Miramonte Ave and Fremont Ave. Special requirements in addition to base zoning. • Certain restrictions on expansion of existing office/administrative and retail uses under a master use permit • Parking requirements encourage of non- conforming uses to turn over to conforming uses • Ground floor retail uses encouraged in LC/SPZ overlay through restricting new net square footage of other ground floor uses 3 Ground floor use regulations/restrictions Combining Districts • Ground Floor (GF) - The district provides design standards when combined with the CD-C subdistrict and permits the uses allowed in the commercial districts and subdistricts to promote active, pedestrian-oriented uses, with a high level of transparency at ground level. o Prohibits ground floor office Downtown and Midtown unless grandfathered. • Retail Shopping (R) - Modifies the CN, CC, and CD districts to allow only retail, eating, and service-oriented commercial on the ground floors. o Prohibits ground floor office on California Ave. Retail Preservation Ordinance (RPO) (18.40.180) • Any ground floor Retail or Retail-Like use permitted or operating as of March 2, 2015, may be replaced only by another • Restaurants, bars/nightclubs/lounges, car showrooms, offices, personal services, food and beverage sales, and instructional services allowed with CUP or specific limitations. • Office and residential limited to upper floors or behind ground floor tenants. • Franchise restaurants (+150 locations) prohibited on the ground floor. Active Ground Floor Use and Design 9.11.030(A) Active Use Requirement • Active use requirements on the ground floor street frontage on Main Street and Montana Ave. o Cultural facilities; o Food and beverage sales; o Eating and drinking establishments; o Grooming and pet stores; o Banks and credit unions; o Business services; o Commercial entertainment, recreation, and Instructional Services; o General personal services and personal physical training; o General retail sales; and o Childcare facilities. Active Commercial Design • Design standards (i.e., façade) for ground floor street frontage active uses. Pedestrian-Oriented Design Active Uses Active uses and active ground floor uses are required/encouraged in certain commercial districts. • Design guidelines to promote active ground floor uses (e.g. transparency requirements) • Sites over 5,000 sq. ft. with existing retail or restaurant space on the ground floor must retain the existing sq. ft. of those uses (CD district) • Office uses restricted to upper floors (CN, except for new development) • Housing restricted to upper floors (CD, CRS/OAD districts) • Trade schools restricted to upper floors (CRS, CRS/OAD districts) • Certain uses restricted on ground floor on Main Street or State Street (CRS district) • Minimum ceiling height on ground floor to promote active uses (CT, CD/R3 districts) Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 11     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 2 # ZONING STANDARD/APPROACH PALO ALTO SANTA MONICA LOS ALTOS Downtown Community Plan (Bayside Conservation - 3rd Street Promenade) Mixed-use and Commercial Districts (Neighborhood Commercial) Retail or Retail-Like use, as permitted in the applicable district. • Design standards to improve the ground floor level environment for pedestrians. • Retail expansion limited, but more encouraged than office/administrative uses in LC/SPZ overlay district 4 Change of Use/Intensification process Change from retail use prohibited in Ground Floor (GF) and Retail Shopping (R) combining districts. Minor Use Permits and Conditional Use Permits (9.41) • All Minor Use or Conditional Use Permits must meet the following criteria: o The proposed use is conditionally allowed within the applicable Zoning District and complies with all other applicable provisions of this Ordinance and all other titles of the Municipal Code. o The proposed use is consistent with the General Plan and any applicable specific plan. o The subject parcel is physically suitable for the type of land use being proposed. o The proposed use is compatible with any of the land uses presently on the subject parcel if the land uses are to remain. o The proposed use is compatible with existing and permissible land uses within the district and the general area in which the proposed use is to be located (e.g. size, intensity, hours of operation, number of employees, or the nature of the operation). o The physical location or placement of the use on the site is compatible with the surrounding neighborhood. o No significant environmental impacts o Not deemed detrimental to the public interest, health, safety, convenience, or general welfare. Certain districts allow commercial expansion only under specific circumstances or of specific sizes. Certain districts encourage turn-over of non- conforming uses in active use areas. 5 Retail definition Retail Service Retail service in Palo Alto is defined as open to the public during typical business hours and relates to retail sale, rental, service, processing, or repair of items intended for consumer or household use. Retail services are further separated into two categories: • Extensive retail service: A retail sales use that has more than 75 percent of the gross floor area used for display, sales, and related storage. • Intensive retail service: Any retail service use that is not defined as extensive retail service, including limited food services such as premade food and packaged items. Retail-like Use Retail services and closely related services are open to the public during typical business hours, and include the following types of uses: eating and drinking services, hotels, personal services, theaters, travel agencies, commercial recreation, commercial nurseries, auto dealerships, and daycare centers. Retail Sales Use Classification 9.51.030 • General Retail Sales, Small-Scale. The retail sale or rental of merchandise not specifically listed under another use classification. This classification includes retail establishments with 25,000 square feet or less of sales area; including department stores, clothing stores, furniture stores, pet supply stores, small hardware, and garden supply/nurseries stores (with 10,000 square feet or less of floor area), and businesses retailing goods including, but not limited to, the following: toys, hobby materials, handcrafted items, jewelry, cameras, photographic supplies and services (including portraiture and retail photo processing), medical supplies and equipment, pharmacies, electronic equipment, sporting goods, kitchen utensils, hardware, appliances, antiques, art galleries, art supplies, and services, paint and wallpaper, carpeting and floor covering, office supplies, bicycles, video rental, and new automotive parts and accessories (excluding vehicle service and installation). Retail sales may be combined with other services such as office machines, computers, electronics, and similar small-item repairs. • General Retail Sales, Medium-Scale. Retail establishments with more than 25,000 square feet - 80,000 square feet of sales area. • General Retail Sales, Large-Scale. Retail establishments with over 80,000 square feet of sales area. Retail Uses Defined as: uses that predominantly sell products rather than services, directly to the public, and generally for consumer or household use. Retail uses are designed to attract a high volume of walk- in customers and have floor space that is devoted predominantly to the display of merchandise to attract customers. Retail businesses may also provide incidental after-sales services, such as repair and installation, for the goods sold. • “Extensive retail” as used with respect to parking requirements, means a retail use primarily selling large commodities such as home or office furniture, floor coverings, stoves, refrigerators, other household electrical and gas appliances, including televisions and home sound systems, and outdoor furniture, such as lawn furniture, movable spas and hot tubs. • “Intensive retail” as used with respect to parking requirements, means any retail use not defined as an extensive retail use. Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 12     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 3 # ZONING STANDARD/APPROACH PALO ALTO SANTA MONICA LOS ALTOS Downtown Community Plan (Bayside Conservation - 3rd Street Promenade) Mixed-use and Commercial Districts (Neighborhood Commercial) 6 Approval Processes (ministerial, principal permitted use, CUP, Special Permits, variances, deviations) Review Procedures – Summary (18.77.050) • Variance, Conditional Use Permits, and Neighborhood Preservation Exception o Staff - Review o Director – Tentative Decision o Planning Commission – Hearing and Recommendation (upon request) o City Council – Final Decision (upon request) • Major Architectural Review o Architectural Review Board - Hearing and Recommendation o Director – Decision o City Council – Final Decision on Appeal • Minor Architectural Review o Staff – Tentative Decision o Architectural Review Board - Hearing and Recommendation (upon request) o Director – Decision (if ARB hearing is requested) o City Council – Final Decision on Appeal Administrative Approval (9.39) Required for non-housing projects of more than 1,000 square feet, all new construction, and new additions to existing buildings that do not exceed the following: • Tier 1 maximum limits; • In Neighborhood Commercial and Oceanfront Districts, 7,500 square feet; • In the Pico Neighborhood Area 7,500 square feet. Chapter 9.40 Development Review Intended to allow the construction of certain projects for which the design and siting could result in an adverse impact on the surrounding area. Required if the following thresholds are met: • Tier 1 maximum limits; • In Neighborhood Commercial and Oceanfront Districts, 7,500 square feet; • In the Pico Neighborhood Area 7,500 square feet. Chapter 9.42 Variances • Mechanism for relief from the strict application of zoning code where it will deprive the property owner of privileges enjoyed by similar properties because of the subject property’s unique and special conditions. • Property owner must provide required findings to prove special conditions. Waivers (9.43.40) Waiver may be granted from the following requirements. • Upper-story stepbacks. • Build-to lines. • Active commercial design standards, including transparency. • Active use requirement. • Unit mix. • Pedestrian-oriented design standards Design and Transportation Review—Multiple- Family, Public and Community Facilities, Office and Administrative, and Commercial Districts (14.78) • Staff level review (Director or designee); or Planning Commission review if larger than 500 sq. ft., 50% increase in size, or increasing height. • Director can require administrative design review based on special circumstances. Multimodal transportation review (14.78.090) • Required for projects subject to Planning Commission design review • Complete Streets Commission review at public meeting and recommendation to Planning Commission Variances (14.78.070) • Variances reviewed by Planning Commission at public hearing based on special circumstances of the property Use Permits (14.80) • Director or designee initial review • Use permits reviewed by Planning Commission at public hearing • Appeals or call-ups to City Council 7 Approving Authority & Approval Times (Ministerial/Building department, Planning Staff, PC, City Council) New construction (permitted uses) • Director — Varies New construction (CUP uses) • Director — Varies Major remodeling/tenant improvement • Director — Varies Minor changes • Director — 6+ Months New signage/signage change • Director — 6+ months • Zoning Conformance Review — Director • Administrative Approval — Director • Conditional Use Permit — Planning Commission • Development Review Permit — Planning Commission • Minor Use Permit — Director Hearing (Zoning Administrator) • Temporary Use Permit — Director • Minor Modification — Director • Major Modification — Director Hearing - (Zoning Administrator) • Waiver — Director Hearing (Zoning Administrator) • Variance — Planning Commission • Conditional Use Permit — Planning Commission • Design & Transportation review (minor) — Director • Design & Transportation review (major) — Planning Commission (with Complete Streets Commission recommendation) • Temporary Use Permit — Director • Variance — Planning Commission 8 Permitted Uses Downtown Commercial (CD-C) Retail Use • Eating and Drinking Services, except drive-in or take-out services • Retail Service • Shopping Center • Liquor Store Retail-like Services Bayside Conservation (BC) - Third Street Promenade Area Commercial Uses • Animal Care, Sales, and Services o Grooming and Pet Stores • Commercial Entertainment and Recreation o Cinemas & Theaters Neighborhood Commercial (NC) – Main St, Pico Blvd, Montana Ave Commercial Uses • Eating and Drinking Establishments o Restaurants, Full-Service, Limited Service & Take-Out (2,500 – 5,000 square feet and smaller, including Outdoor Dining and Seating) Commercial Retail Sales (CRS) – Main St, State St • Business, professional, and trade schools • Office-administrative services • Personal services • Private clubs, lodges, or fraternal organizations • Restaurants, excluding drive-through services Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 13     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 4 # ZONING STANDARD/APPROACH PALO ALTO SANTA MONICA LOS ALTOS Downtown Community Plan (Bayside Conservation - 3rd Street Promenade) Mixed-use and Commercial Districts (Neighborhood Commercial) • Hotel • Personal Services • Commercial Recreation – Day Care Centers • Business or Trade School • Financial Services (no drive-in) • Professional, and General Business Offices • Medical Offices Community Commercial (CC, CC(2)) Retail Use • Eating and Drinking Service, except drive-in or take-out services • Retail Service • Shopping Center • Liquor Store Retail-like Services • Hotel • Personal Services • Commercial Recreation – Day Care Centers Professional, and General Business Offices o Convention and Conference Centers • Eating and Drinking Establishments o Food Hall (up to 175 seats) • Food and Beverage Sales o Farmer’s Market o Liquor Stores • Lodging o Bed and Breakfast o Hotels and Motels • Personal Services o General Personal Services • Retail Sales o General Retail Sales, Small- and Medium-Scale • Retail • Cocktail lounges • Uses which are determined by the community development director to be of the same general character 9 Conditional/Limited Uses Downtown Commercial (CD-C) Retail-like Services • Commercial Recreation – Over 5,000 sf • General Business Service Community Commercial (CC, CC(2)) Retail-like Services • Commercial Recreation – Less than 5,000 sf Medical Offices Bayside Conservation (BC) - Third Street Promenade Area Commercial Uses • Automobile/Vehicle Sales and Service o Automobile Rental L(10) o New Automobile/Vehicle Sales and Leasing L(8), L(5) • Business Services L(15) • Commercial Entertainment and Recreation o Large-Scale Facility L(21) o Small-Scale Facility L(5) • Eating and Drinking Establishments o Bars/ Nightclubs/ Lounges o Restaurants, Full-Service, Limited Service & Take-Out (2,500 square feet and smaller, including Outdoor Dining and Seating) L(22) o Restaurants, Full-Service, Limited Service & Take-Out (2,501 -5,000 square feet and Neighborhood Commercial (NC) – Main St, Pico Blvd, Montana Ave Commercial Uses • Eating and Drinking Establishments o Restaurants, Full-Service, Limited Service & Take-Out (greater than 5,000 square feet, including Outdoor Dining and Seating) (10)(11) • Food Hall (up to 175 seats) • Food and Beverage Sales o Convenience Market o Farmers Markets o General Market L(12) o Liquor Stores • Instructional Services L(17) • Live-Work L(14) • Maintenance and Repair Services L(2) • Nurseries and Garden Centers L(17) • Offices o Business and Professional L(21) o Creative L(21) o Medical and Dental L(21) o Walk-In Clientele L(21) Commercial Retail Sales (CRS) – Main St, State St • New building >7,000 sf • Commercial recreation • Day care centers • Hotels • Housing • Medical and dental clinics or offices >5,000 sf • Uses which are determined by the planning commission to be of the same general character. Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 14     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 5 # ZONING STANDARD/APPROACH PALO ALTO SANTA MONICA LOS ALTOS Downtown Community Plan (Bayside Conservation - 3rd Street Promenade) Mixed-use and Commercial Districts (Neighborhood Commercial) smaller, including Outdoor Dining and Seating) L(22) o Restaurants, Full-Service, Limited Service & Take-Out (greater than 5,000 sq ft, including Outdoor Dining and Seating) L(22) • Food and Beverage Sales o Convenience Market o General Market • Instructional Services L(1), L(5) • Live-Work L(1), L(13) • Offices o Business and Professional L(1) o Creative L(1) o Walk-In Clientele L(1) • Personal Services o Physical Training L(17), L(5) • Retail Sales o General Retail Sales, Small-Scale L(2) 10 Major remodeling/tenant improvement process, limits N/A Major Modifications (9.43.030) • For uses permitted by right or by discretionary review. • May be granted relief on no more than 2 of the following. o Setbacks o Build-To Line o Parcel Coverage o Height o Ground Floor (Floor-to-Floor) Height o Landscaping. Up to 10% of the required landscaping • May not be granted for the following. o Parcel area, width, or depth; o Maximum number of stories; o Minimum or maximum number of required parking spaces; o Residential density; or o Maximum floor area ratio (FAR). N/A 11 Minor change process, requirements Design Enhancement Exception (DEE) • Granted to site development and parking and loading requirements to enhance the design of commercial development – subject to architectural review. • Design enhancement include minor architectural elements and design features. • Exceptions limited to minor changes to the setback, daylight plane, height, lot coverage, parking lot design and Minor Modifications (9.43.020) • For uses permitted by right or by discretionary review. • May be granted relief on no more than 2 of the following. o Setbacks o Build-To Line o Parcel Coverage o Height o Transparency o Parking, Loading, and Circulation o Outdoor Living Area o Bicycle Parking o Parcel Lines N/A Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 15     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 6 # ZONING STANDARD/APPROACH PALO ALTO SANTA MONICA LOS ALTOS Downtown Community Plan (Bayside Conservation - 3rd Street Promenade) Mixed-use and Commercial Districts (Neighborhood Commercial) landscaping configuration, and additional flexibility in the required proportion between private and common open space. • May not be granted for the following. o Parcel area, width, or depth; o Maximum number of stories; o Minimum or maximum number of required parking spaces; o Residential density; or o Maximum floor area ratio (FAR). 12 New signage process, requirements Signs (16.20) • Design review required by Architectural Review Board. • Master sign program for multiple signs as part of one building project. • Prohibited signs include flashing or moving signs and roof signs that have not been grandfathered. • Signs are prohibited on public property. • Specific requirements for fuel price signs, freestanding signs, wall signs, projecting signs, and awning signs. Signs (9.61) • Sign Permit application requirements include: o Site Plan. o Existing Building Elevation. o Proposed Building Elevations. o Sign Illustration. • Sign permit application reviewed by The Secretary of the Architectural Review Board • The Planning and Community Development Director can administratively approve sign permits if the type of sign is permitted. • Prohibited signs include: o Animated signs o Emitting signs o Miscellaneous signs o Paper, Cloth, or Plastic Streamers and Bunting • Total sign area regulated by District. • Provisions for portable signs and upper-level signs in the Bayside Conservation District (Third Street Promenade). Signs on Private Property (Chapter 14.68) • Initial review by Director. Successive reviews: (1) Staff (2) Architectural and Site Review Committee and/or Board of Adjustments (3) Planning Commission (4) City Council • Master Sign Program required for all multiple tenant sites, nonresidential projects and buildings • Regulations vary by district. • Sign Permit not required for certain sign face changes, wayfinding/informational signs • Prohibited signs: animated, upper floors, emitting, billboards, A-frames (unless permitted in Downtown Outdoor Display Permit Guidelines) • Digital signs permitted in windows of stores in the downtown commercial district under certain circumstances 13 Parking strategy - minimum requirements? Parking Regulations for CD Assessment District (18.52.070) Minimum Off-Street Parking Requirements Retail Uses • Intensive - 1 per 200 sf of gross floor area • Extensive - 1 per 350 sf of gross floor area • Open Lot - 1 space for each 500 sf of sales, display, or storage site area. Minimum Off-Street Parking Requirements for Parking Assessment Districts Retail Uses • Intensive - 1 per 240 sf of gross floor area • Extensive - 1 per 350 sf of gross floor area • Open Lot - 1 space for each 500 sf of sales, display, or storage site area. • No minimum off-street parking requirements for all land uses within the Downtown Community Plan area. • Retail Sales (Maximum parking allowed) o 5,000 SF or less = 1 space per 500 SF o 5,001 SF or more = 1 space per 300 SF Parking, Loading, and Circulation (9.28.40) • Projects Outside of One-Half Mile of a Major Transit Stop (minimum parking required) o Retail, less than 2,500 sq. ft.- 1 space per 300 sq. ft. o Retail, 2,500 – 5,000 sq. ft. - 1 space per 300 sq. ft. o Retail, 5,000 sq. ft. or more - 1 space per 300 sq. ft. • Projects Within One-Half Mile of a Major Transit Stop: no minimum parking required. • Location of Parking for Mixed- Use and Nonresidential Districts above ground restricted to Interior Side and Rear Setbacks and Rooftops except in Neighborhood Commercial Districts. • Provisions for required setbacks, openings, and parking podium heights for subterranean and semi-subterranean parking structures. Off-Street Parking and Loading (Chapter 14.74) • Regulations vary for commercial vs. residential uses in districts which allow mixed-use • Public Parking District: allows participating properties not to require parking for new or changed uses for the first 1.0 of floor area ratio. Parking required if square footage exceeds lot area. • If not subject to Public Parking District regulations the following ratios apply: o Office: 1/300 o Commercial  Intensive: 1/200  Extensive: 1/500 o Bars, cafes, nightclubs, restaurants: 1 per 3 employees and 1 per 3 seats o Assembly/recreation uses: varies Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 16     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 7 # ZONING STANDARD/APPROACH PALO ALTO SANTA MONICA LOS ALTOS Downtown Community Plan (Bayside Conservation - 3rd Street Promenade) Mixed-use and Commercial Districts (Neighborhood Commercial) • All off-street parking spaces associated with new nonresidential projects in the Neighborhood Commercial District require unbundled parking. o Residential (in mixed-se commercial district): 1-2 depending on size, and 1 visitor per 4 units 14 Improvement Districts (BID/Promotion/Economi c Development Programs / Departments) Palo Alto Downtown Business Improvement District Downtown Santa Monica, Inc. • Bayside and Downtown Mall Operations & Maintenance District • Central Business District - Business Promotion Assessment • Colorado Avenue Property Based Assessment District PBAD Overlay Zone • Downtown Santa Monica Property-Based Assessment District (PBAD) • Lincoln Boulevard Property-Based Assessment District Main Street • Main Street Business Assessment • Main Street Light and Sidewalk Cleaning Assessment Area Montana Avenue • Montana Avenue Assessment Pico Boulevard • Pico Boulevard Assessment Santa Monica Alliance The Santa Monica Alliance is a collaborative effort of the City of Santa Monica and the Santa Monica Chamber of Commerce dedicated to nurturing a vibrant, healthy, and profitable business climate in Santa Monica working to attract, retain, and to help grow Santa Monica businesses. • Improvement district mechanism in place for neighborhoods, however this seems to have limited applications. • Downtown BID feasibility study considered in 2018, but not ultimately funded. 15 Housing - allowed? Min. max.; encouraged? • Residential not allowed in Ground Floor (GF) or Retail (R) Combining districts. • 100% affordable housing projects are exempt from the Retail Preservation Ordinance, but can’t be within the Ground Floor (GF) and/or Retail (R) combining districts or on a site abutting El Camino Real. • Residential limited to upper floors on Third Street Promenade. • If development is approved above the base FAR and height, it must be accompanied by a range of community benefits from 4 priority categories: Affordable Housing, Trip Reduction and Traffic Management, Community Physical Improvements, and Social and Cultural Facilities. • Residential limited to upper floors for parcels located on Main Street, Montana Avenue, Pico Boulevard, and Ocean Park Boulevard. Permitted on all floors for all other parcels. Varies by district: • CD/R3: Permitted use • CN and CT: Mixed-use residential conditionally permitted • CD, CRS, CRS/OAD: Residential above ground floor conditionally permitted • Not permitted in LC/SPZ 16 Formula (i.e. Franchise) retail regulations Conditional use permit required for formula retail business in a R-Combining district - five required additional findings. Formula retail business - one of ten (10) or more business locations in the United States. Regulations in place before the pandemic Restaurant, Limited-Service, and Take-Out establishments with frontage on the Third Street Promenade are prohibited if: • More than 150 locations nationwide; and • Restaurants where orders are placed at a walk-up window, counter, or machine; payment prior to food consumption; and food served with disposable, one-time, or limited-use wrapping, containers, or utensils. • N/A No limit on chain stores in our downtown area. The City doesn’t have chain stores in the downtown currently. They would like to attract some through new redevelopment projects in downtown to help facilitate some bigger companies and retailers to come to town which will in turn support the other businesses. Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 17     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 8 # ZONING STANDARD/APPROACH PALO ALTO SANTA MONICA LOS ALTOS Downtown Community Plan (Bayside Conservation - 3rd Street Promenade) Mixed-use and Commercial Districts (Neighborhood Commercial) • Regulation in place for 5 years and can be updated or continued after that by council approval. Neighborhood Commercial NC (2) Limitation shall only apply to new construction and alterations to existing buildings that result in a combination or enlargement of tenant spaces: Limited to facilities with no more than 7,500 square feet of floor area and/or 40 linear feet of ground floor street frontage; greater area and/or width requires approval of a Conditional Use Permit. (10) Limited to restaurants with 50 or fewer seats. (11) Limited to 2 restaurants greater than 5,000 square feet per block along Main Street. A block is defined as both sides of Main Street and the adjacent sides of adjoining side streets. Portions of Main Street to be designated a “block” for the purpose of this Section are as follows: • Block 1: South City limits to Marine Street. • Block 2: Marine Street to Pier Avenue. • Block 3: Pier Avenue to Ashland Avenue. • Block 4: Ashland Avenue to Hill. • Block 5: Hill to Ocean Park Boulevard. • Block 6: Ocean Park Boulevard to Hollister Avenue (total of 4 restaurants and bars permitted in this block). Block 7: Hollister Avenue to Strand. • Block 8: Strand to Pacific. • Block 9: Pacific to Bicknell. • Block 10: Bicknell to Bay. • Block 11: Bay to Pico Boulevard. (12) General markets greater than 15,000 square feet require a Conditional Use Permit. In the Neighborhood Commercial District, establishments shall not exceed 25,000 square feet of floor area. (14) If the commercial use requires a MUP or CUP, an application shall be required in accordance with Chapter 9.41. Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the live-work unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit. An example of a potential health impact is the potential for food contamination from uses that generate airborne particulates in a unit with an unenclosed kitchen. (17) Limitation shall only apply to new construction and alterations to existing buildings that result in a combination or enlargement of tenant spaces: No individual tenant space in the NC District shall occupy more than 7,500 square feet of floor area and/or exceed 50 linear feet of ground floor street frontage without the approval of a Conditional Use Permit. (21) Permitted if within buildings existing as of July 24, 2015, subject to the active use requirement set forth in Section 9.11.030(A)(1), except: • All new construction, including new additions of 50% or more additional square footage to an existing building at any one time, or incrementally, after the effective date of this Ordinance, requires approval of a Conditional Use Permit. • In the NC District, ground floor, street-fronting, tenant space occupied by non-media production, support facility uses shall not be changed to an individual office use or media production, support facility use occupying more than 12,500 square feet of floor area and/or exceeding 75 linear feet of street frontage without the approval of a Conditional Use Permit. • In the NC District, no non-medical or non-dental office use tenant space shall be changed to an individual medical or dental office use anywhere in an existing building occupying more than 7,500 square feet of floor area and/or exceeding 50 linear feet of ground floor street frontage without the approval of a Conditional Use Permit. • In the MUBL, MUB, and GC Districts, no non-medical or non-dental office use tenant space shall be changed to an individual medical or dental office use anywhere in an existing building occupying more than 12,500 square feet of floor area and/or exceeding 75 linear feet of ground floor street frontage without approval of a Conditional Use Permit. Bayside Conservation (BC) Third Street Promenade Area (1) Limited to upper floors, and on the ground floor where the entire tenant space shall be located at least 25 feet from the front property line, except for residential units shall be limited to upper floors only. (5) Permitted if within buildings existing as of the date this Ordinance effective. Permitted in new buildings, except: (a) No individual ground floor tenant space shall occupy more than 7,500 square feet of floor area and/or exceed 50 linear feet of ground floor street frontage without a Conditional Use Permit. (b) Ground floor tenant spaces in the Santa Monica Place are not subject to size limitations. (10) Permitted as an ancillary use to support a primary use. (13) If the commercial use requires a MUP or CUP, an application shall be required in accordance with SMMC, Chapter 9.41. Even if the commercial use would otherwise be permitted, no such use shall be approved where, given the design or proposed design of the live-work unit, there would be the potential for adverse health impacts from the proposed use on the people residing in the unit. An example of a potential health impact is the potential for food contamination from users that generate airborne particulates in a unit with an unenclosed kitchen. (15) Limited to the ground floor with frontage along 2nd Court and 3rd Court alleys or to upper floors. (21) No individual Fitness Center tenant space shall exceed 100 linear feet of ground floor street frontage without the approval of a Conditional Use Permit. (22) Restaurant, Limited-Service and Take-Out establishments with frontage on the Third Street Promenade and the following characteristics shall be prohibited: (a) More than 150 locations nationwide at the time that the application for the establishment is deemed complete by the City; and (b) Characteristics, including, but not limited to, orders placed at a walk-up window, counter, or machine; payment prior to food consumption; and food served with disposable, one-time, or limited-use wrapping, containers, or utensils. Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 18     Palo Alto Retail Recovery Study- Comparison Matrix with Santa Monica and Los Altos 9 Palo Alto Retail – Zoning Comparison with Santa Monica Summary/Key Takeaways 1. Level of regulation – Zone Districts a. Santa Monica’s primary retail/commercial areas are Downtown (Third Street Promenade), Main Street, Pico Boulevard, Ocean Park Boulevard, and Montana Ave. b. The Downtown Community Plan provides development standards as well as design guidelines for new development projects. c. Zone districts are very prescriptive but clear in intent and procedure. 2. Overlay Districts a. Santa Monica has two primary overlay districts but aren’t applicable in the established retail/commercial corridors. 3. Ground floor use regulations a. Santa Monica allows for a variety of uses other than retail on the Third Street Promenade, however there are specific limitations per use. b. Santa Monica also provides active ground floor use and design provisions for the Mixed Use and Commercial Districts. 4. Change of Use/Intensification process a. Santa Monica doesn’t prohibit change of use from retail like Palo Alto. 5. Retail definition a. Santa Monica defines Retail Sales as any establishment that allows the retail sale or rental of merchandise. 6. Approval Processes a. Santa Monica has administrative review and development review (discretionary) and provides the option for variances and waivers from development standards. 7. Approving Authority a. All Planning related permits are approved by either the Planning and Community Development Director or the Planning Commission, the Director has approval authority in Palo Alto unless appealed in which case the final approval is from City Council in Palo Alto. 8. Permit Process a. New construction (permitted uses and CUP uses) i. Santa Monica allows by right and conditionally allows a variety of uses in their Downtown and Mixed Use and Commercial Districts. b. Major remodeling/tenant improvement and Minor changes i. Santa Monica allows for relief on up to two development standards. c. New signage i. Santa Monica’s sign standards are more prescriptive and more detailed than Palo Alto. 9. Parking strategy a. Santa Monica has parking maximums for Downtown and minimum parking requirements for projects outside of on-half mile of a major transit stop. 10. BID/Promotion/Economic Development Programs / Departments a. Santa Monica has property based assessment districts for all of their commercial/retail corridors. 11. Housing a. Residential is limited to upper floors along the Third Street Promenade and along the primary retail corridors, where it’s not allowed in Ground Floor or Retail Combining Districts in Palo Alto. 12. Formula retail regulations a. Restaurants with 150 locations are prohibited on the Third Street Promenade, where Palo Alto allows formula retail only along California Ave with a Conditional Use Permit. Item 2 Attachment A: Peer Cities Comparison Matrix for January 31     Packet Pg. 19     MEMORANDUM TO: Amy French, Chief Planning Official, City of Palo Alto DATE: November 27, 2023 FROM: Michael Baker International SUBJECT: Palo Alto Retail Recovery: Peer Research, City of Santa Monica Interview Interview Summary On October 4th Michael Baker International conducted an interview with Roxanne Tanemori, Principal Planner, and Jennifer Taylor, Economic Development Manager, from the City of Santa Monica to discuss the numerous retail recovery efforts undertaken by the City of Santa Monica since March 2020. These efforts focused on simplifying zoning and permitting rules for new and existing businesses. The recommendations for successful retail recovery focused on looking at making COVID-related changes permanent, relaxing zoning, streamlining permitting, and strong outreach and community engagement. This City believes these efforts have been successful in retaining and attracting retailers and improving the overall health and function of the commercial districts. Making COVID-Related Changes Permanent The City discussed an extensive list of emergency orders during the pandemic. These include both planning and building/safety emergency orders, including time extension on open permits of up to four years. In October 2022, the City permanently adopted two zoning ordinance amendments with the intent of reducing regulatory barriers for small businesses, as described below. The economic recovery ordinance was extended for five years in September of 2023. In summary, the following proposed zoning changes focus on the Third Street Promenade area 1) allowing greater flexibility for restaurants that provide entertainment within the Third Street Promenade Area District, 2) expanding Alcohol Exemption (AE) permits to additional uses to further streamline the review of alcohol permits while also correcting and refining existing AE permit conditions, 3) allowing the Director off Community Development or designee to consider commercial uses that are not clearly defined in the Zoning Code, 4) allowing a longer term for Temporary Use Permits, and 5) allowing outdoor rooftop commercial uses on public parking structures owned by the City Relaxing Restrictions on Uses Changes in zoning included allowing a wider variety of uses by right in areas that were historically more restrictive, including in the downtown and Third Street Promenade areas. Efforts highlighted by City Staff included allowing new uses such as pop-ups and creative commercial uses that do not fit exactly into the existing use categories, including new alcohol services and pickleball. The City eliminated the restrictions on the number of restaurants per block on Main Street and expanded opportunities for outdoor dining. The City has traditionally been very restrictive in requiring retail uses on the ground floor; however, due to the changing market and feedback from the community, the City has been re-evaluating what mix of uses will work in its retail areas. This is also in response to an increased focus on housing and the City’s larger efforts in its Housing Element. The City noted that being open to a wider mix of uses is important in serving the needs of residents. Item 2 Attachment B: Santa Monica Interview Summary     Packet Pg. 20     November 27, 2023 Palo Alto Retail Recovery: Peer City Interview Summary 2 Streamlined Permitting The City eliminated the need for conditional use permits, minor use permits, and other discretionary approvals for several uses including childcare, cinemas and theaters, general retail sales (medium size), hotels and motels, medical and dental offices, food halls, and general personal services, among others. The City removed the public hearing requirements for a change of use from a restaurant to a different use. This streamlined permitting expedites and simplifies the permitting process. This provides certainty and predictability to existing businesses and prospective businesses considering locating in Santa Monica. As of July 2023, there are 38 new development projects in downtown Santa Monica comprised mostly mixed-use and housing, including affordable housing. Communication and Outreach with Business Owners The interviewees discussed the importance of educating the public through comprehensive, consistent communication and outreach efforts. They stressed the importance of City staff being a known, visible, and trusted figure in the community. The City of Santa Monica highlighted a number of outreach efforts including working with community groups, business improvement districts, City staff, and City council. Efforts included an “open for business flyer,” blog, e-mail blasts, broker’s round table event, and a 3-1-1 system where anyone can e-mail or call with questions. The City offers online planning services, and virtual counter reviews, and hosts an online appointment system to increase the number of permitting activities that can be done online. The City has extensively documented and advertised these zoning and regulatory changes on its City website 1 and provides comprehensive data regarding vacancies and employment on the Downtown Santa Monica website2. Interview Questions and Responses 1. Have you evaluated the impact of COVID and/or online shopping on retail in Santa Monica? ▪ The City started to see the impact of e-commerce prior to COVID-19. ▪ The City created a “Buy Local” campaign in 2010 and increased messaging during COVID-19 to educate the public on the importance of supporting local businesses. o Through the campaign the City identified and informed people which retailers had gift cards and how businesses were operating during the Holidays. ▪ During COVID the City supported businesses through a variety of strategies which included: o Established pick-up and delivery zones, o Connected business owners with the Los Angeles Small Business Development Center for education and technical support, o Waived fees (e.g. loading and pick-up zones), o Encouraged shopping locally through informing customers which businesses support gift cards during Holiday shopping, ▪ The City can track online versus in-store sales reports through a sales tax report and can track by geographic area and by sector. o Art gallery pivoted to online and had high sales and started artists' talks and other events/features they didn’t have before. o The city has anecdotal data that shows an increase in sales activity but is hard to isolate. 1 City Council Makes Pandemic-Era Zoning Changes Permanent to Support Business Success in Santa Monica. https://www.santamonica.gov/press/2022/10/12/city-council-makes- pandemic-era-zoning-changes-permanent-to-support-business-success-in-santa-monica 2 Downtown Santa Monica, Third Street Promenade. https://downtownsm.com/downtown-data#section-8666 Item 2 Attachment B: Santa Monica Interview Summary     Packet Pg. 21     November 27, 2023 Palo Alto Retail Recovery: Peer City Interview Summary 3 2. What, if any, efforts did you undertake to preserve retail as a response to COVID-19? ▪ The City passed several emergency orders during the pandemic related to both planning and building and safety. o The City provided time extensions on open permits – up to 4 years in some cases. o The City allowed more uses to be permitted by right in the Downtown and Third Street Promenade areas.  Allowed flexibility for creative and temporary uses that don’t fit the prescribed use categories in the Downtown and Third Street Promenade.  Positive feedback from stakeholders resulted in the interim ordinances becoming permanent – codified in August 2023. o One block in the Third Street Promenade had high vacancy rates, so the City has loosened the use restrictions – they are focusing on making it a food, art, and entertainment district/hub. o The City is seeing alcohol licenses being paired with innovative and creative uses. (e.g. Pickleball).  The City is focusing on food establishments and assisting applicants through the permitting process. • Where and how to allow business to expand into the right-of-way to not access and circulation issues. • Restaurant owners voiced the need for expanded permanent outdoor space to sustain business. 3. How did the City work with the business owners during the zoning changes? ▪ The City along with Downtown Santa Monica Inc. (Property Based Assessment District) asked property owners and businesses what kind of new uses they were interested in and what challenges they were facing with the permitting process, the City then identified opportunities on how the emergency orders and interim zoning can start to address the issues. ▪ Held collective meetings with Business Improvement District (BID) leaders (Main Street, Montana Ave, and Pico Boulevard) to talk through zoning changes. ▪ The City created an “Open for Business” flyer. ▪ Implemented a 3-1-1 system for businesses to ask questions to City staff regarding zoning. 4. What types of metrics does the City utilize to track changes in business? ▪ The City tracks occupancy rates and pedestrian counts in association with Downtown Santa Monica Inc. (see Downtown Santa Monica data below) ▪ The City also monitors sales tax data and business license permits. 5. Does the City allow residential Downtown or in other commercial districts? ▪ Downtown is truly a mixed-use district – residential is permitted everywhere but particularly seen from 2nd Street to 7th Street. ▪ Several current Downtown housing projects (thousands of units) are in development to create a “24/7 community.” o Downtown previously saw affordable housing and now a trend to mixed-income housing. o Change in demand in the Downtown to more local serving uses like restaurants – previously tourism drove development trends (~8 million visitors/year prior to COVID, now 4.5-5 million visitors/year) ▪ Residential is integrated and embedded in all commercial districts. Item 2 Attachment B: Santa Monica Interview Summary     Packet Pg. 22     November 27, 2023 Palo Alto Retail Recovery: Peer City Interview Summary 4 6. Are there any restrictions on the usage of ground floor space in the commercial areas? ▪ The City has historically been very restrictive on the ground floor with a focus on retail and restaurant. ▪ The City has been rethinking strategy to allow more uses in certain configurations while still promoting retail and restaurant – the office is still restricted. ▪ The City is trying to be flexible as property owners figure out the right mix of uses – having the choice is positive for all parties. ▪ The City has utilized interim ordinances as an experimentation to see how effective/successful an ordinance can be (up to five (5) years). The economic recovery ordinance was extended for five years in September of 2023. 7. Have developers used the provisions of AB 2097 in developments for parking? How is the City ensuring there will be parking for visitors and residents in the wake of AB 2097? ▪ State law has changed the City’s parking practices since much of the City exists within ½ mile of a major transit stop. ▪ Before state law the City eliminated minimum parking requirements for a majority of active uses Downtown in 2017. ▪ The City has major parking investment in the form of ten (10) City-owned public parking structures in the Downtown District – “well-served to over-served.” o Parking structures were funded through bond financing in the 70’s – all but one (1) are paid off. o Parking structures were funded by revenue generated by parking and transportation impact fees (in-leu fee for businesses) – the City has since eliminated this impact fee. o Parking structures have active ground floor retail space which the Economic Development Department manages (3 tenants) – provide revenue to the City. o The city is working to bring in a rooftop cinema company to lease the top floor of one of the parking garages (made possible by the interim temporary use ordinances). ▪ The City has no parking requirements for businesses going into existing footprints. o The City prefers that there is no more parking built in the Downtown, they would like the business to invest in other ways. o In terms of new mixed-use housing development, the City is seeing both zero (0) parking and proposed projects with parking – Projects tend to be dependent on lender and financing strategy to make the project marketable. o The City has a cap on parking in the Downtown that can not be exceeded. o The City has worked with developers to look at shared parking, shared mobility programs, bike parking, EV charging, carshare, automated driving companies (Waymo), and the integrations of the bike infrastructure as an alternative to parking. 8. Do you have recommendations for jurisdictions looking to preserve/encourage retail uses? ▪ Review the zoning ordinance, permitting procedures, and how those factors affect the cost of doing business. ▪ Determine how your jurisdiction can support businesses operating outdoors. o The City reviewed and contacted several jurisdictions for best practices regarding parklets and expanded outdoor dining. o Where possible, make operating outdoors permanent. ▪ Provide certainty to businesses so they know what they can and can’t do. Item 2 Attachment B: Santa Monica Interview Summary     Packet Pg. 23     November 27, 2023 Palo Alto Retail Recovery: Peer City Interview Summary 5 ▪ Due to the small size of Santa Monica, City staff has seen the importance of relationship building, being visible, known, and a trusted figure in the community so people know who to contact for questions or issues. ▪ Important for jurisdictions to work together regionally and throughout the State to become competitive as whole (i.e. align programs and fees) – don’t try and steal from business. Item 2 Attachment B: Santa Monica Interview Summary     Packet Pg. 24     November 27, 2023 Palo Alto Retail Recovery: Peer City Interview Summary 6 Appendix A: Downtown Santa Monica Inc. Data Downtown Santa Monica | Downtown Data (downtownsm.com) New Development As of November 9, 2023, there were 38 new development projects. Nearly two-thirds of them had been approved and approximately one-fifth of them are under construction. Retail Space Occupancy As of November 9, 2023, there were 573 ground-floor commercial spaces in Downtown Santa Monica and 7.2% of their occupancy was undetermined. Among 532 spaces being determined for their uses, 82.1% were occupied. Business Types As of November 9, 2023, there were 438 ground-floor businesses in Downtown Santa Monica. About a third of them were accommodation, beverage, and food, followed by retail (21.69%), and beauty, health, and wellness (19.86%). Third Street Promenade Foot Traffic Much like numerous downtowns across the United States, the Third Street Promenade has experienced a decline in pedestrian activity over the last three years, attributed to the practice of remote work prompted by the pandemic and a decrease in tourist visits. In October 2023, the Third Street Promenade saw an influx of 331,679 visitors, representing approximately 66% of the foot traffic observed in the pre-pandemic October of 2019. The post-summer months witnessed a decline in foot traffic, indicating a seasonal trend. Notably, the footfall surpassed the count recorded in September 2022, signifying a moderate recovery from the impact of the coronavirus pandemic. Promenade Business Types & Retail Space Occupancy As of November 8, 2023, retail and accommodation, beverage, and food accounted for approximately 90% of all businesses. As of November 8, 2023, the occupancy of commercial spaces on Block 1200, 1300, 1400, and the entire Promenade were 69.2%, 88.6%, 78.4%, and 79.6%, respectively. Source: “Downtown Santa Monica.” n.d. Downtown Santa Monica. Accessed November 21, 2023. https://www.downtownsm.com/downtown-data. Item 2 Attachment B: Santa Monica Interview Summary     Packet Pg. 25     MEMORANDUM TO:Amy French, Chief Planning Official, City of Palo Alto DATE:November 27, 2023 FROM:Michael Baker International SUBJECT:Palo Alto Retail Recovery: Peer Research, City of Los Altos Interview Interview Summary On November 27th Michael Baker International conducted an interview with Nick Zornes, Principal Planner, City of Los Altos to discuss the numerous retail recovery efforts undertaken by the City of Los Altos since March 2020. These efforts focused on simplifying zoning and permitting rules for new and existing businesses. The recommendations for successful retail recovery focused on looking at making COVID-related changes permanent, relaxing zoning, streamlining permitting, and strong outreach and community engagement. Interview Questions and Responses 1. Have you evaluated the impact of COVID and/or online shopping on retail in Los Altos? ▪Yes, because of the physical limitations in the early/middle portion of COVID. ▪Main commercial area in Los Altos is very similar to California Ave in Palo Alto. o No major commercial retail or national retailers – mom-and-pop and small businesses o “Downtown Triangle” is restaurant heavy with passive businesses. 2. What, if any, efforts did you undertake to preserve retail as a response to COVID-19? ▪Wouldn’t say so since there is such a small non-residential footprint, emphasis was really focused on restaurants. ▪Los Altos has an active Chamber of Commerce that supports and works with businesses. ▪Los Altos Village Association (LAVA) worked with downtown businesses to facilitate resiliency during COVID. 3. Have you made any changes to the zoning code during post-Covid? Are these changes permanent? Can you describe how some of these changes have helped maintain and encourage retail? ▪The City is undergoing rezoning downtown to allow all mixed-use and to allow additional height; driven in part by the Housing Element. o There isn’t anything in the rezoning that is explicit for commercial but it will provide opportunity for new and existing commercial. o Much of the downtown is currently old commercial in old buildings. We haven’t had new development in many years, just renovations. We expect new mixed-use developments in near future. ▪The City made alcohol an ancillary use allowed by right and made it permanent post covid. A business just needs an ABC license from state. 4. Were there any other zoning changes that were considered but not made and why? Item 2 Attachment C: Los Altos Interview Summary     Packet Pg. 26     November 27, 2023 Palo Alto Retail Recovery: Peer City Interview Summary 2 ▪Office/administration uses on Main Street and State Street are not allowed on the ground floor. o The City wants this area to be the retail and restaurant core, there are some existing non- conforming uses like banks. ▪The City is exploring an option of requiring hair and nail salons to get a CUP. o There is a proliferation of nail and hair salons in downtown competing with one another. o The City does not need as many as they currently have – in some instances there are two next to each other. ▪The City is looking to address vacancy in terms of empty display windows and pop-up shops through a zone text amendment. ▪Vacancies downtown last for 6-9 months outside of three (3) properties where businesses have closed due to ADA lawsuits. o Businesses open quite easily in Los Altos but the length of occupancy is varied. 5. Is change of use by right or do you require discretionary approval? ▪It is by right unless it’s a major tenant improvement (i.e. structural). ▪The City doesn’t dabble in CUP, it’s either allowed or prohibited. ▪The City has an online submittal process and a change of use permit can be processed in a couple of days – everything is pretty streamlined. 6. Who is the approving authority for the following and typical permit time for each of these? ▪If something had to go to a hearing body it would go to the planning commission which could be a 4 - 5 month process, especially due to incomplete applications. ▪The City hasn’t had any new commercial development in well over a decade – Housing Element rezonings will allow for a lot of newer commercial square footage allowed in tandem with residential. ▪Signage has never been beyond an administrative design review – no issues. 7. Have developers used the provisions of AB 2097 in developments for parking? How is the City ensuring there will be parking for visitors and residents in the wake of AB 2097? ▪Does not apply to downtown but does apply to an extremely small area on El Camino Real – mostly redeveloped with entirely residential. ▪The City is going to be conducting a comprehensive downtown parking ratio update for residential and commercial uses through a parking study. 8. Do you have a municipal public parking/parking district or any exemptions for parking? ▪The City has public parking plazas in addition to small parking lots - 6 acres of parking lot to the north and south of Main Street and State Street. ▪In the 1950s downtown property owners came together and passed a measure that any existing commercial square footage does not have to park their business use. 9. Do you have any other improvement districts such as the Business Improvement District (BID), Community Facilities District (CFD), or Enhanced Infrastructure Financing District (EIFD)? ▪The City doesn’t have a BID, but it will be exploring the creation of a Property Business Improvement District in the upcoming year (assessed against property owners not businesses). o There are three (3) big property owners who want to see major infrastructure improvements Item 2 Attachment C: Los Altos Interview Summary     Packet Pg. 27     November 27, 2023 Palo Alto Retail Recovery: Peer City Interview Summary 3 to improve the public realm. o Looking to reorient parking to be parallel to recapture half depth of angle parking to expand the sidewalks – property owners would like to see the expansion of the public realm in front of their properties to create more usable space. 10. Does the City have any programs or incentives to attract retail? ▪Some businesses may actually need to close to allow new uses, they are holding usable space for redevelopment. ▪The City probably would have lost most of the restaurants if they hadn’t deployed the parklet program. 11. Are there best practices or efficient permitting and flexibility that your City follows and that have helped you retain and attract retail uses? ▪Downtown Vacancy matrix created by the Chamber of Commerce to identify where the vacancies are located, what is allowed in those spaces, and what is the footprint. ▪The Chamber of Commerce works to connect property owners with interested businesses, there are a lot of older buildings and old-school property owners and old school in how they lease space. 12. Any recommendations for jurisdictions looking to preserve/encourage retail uses? ▪Parklet Program – had a sunset date to either make permanent or revisit and revamp. o The City didn’t want the temporary COVID program to be the permanent one. ▪The City identified what has been working and what hasn’t been working. ▪The City also didn’t want mismatch parklets. ▪The permanent program goes into effect in January with a new set of standards. o The City conducted outreach with several business owners and restaurant groups to discuss issues and needs. o Some were very receptive and some pushed back because of the cost to change parklets. Item 2 Attachment C: Los Altos Interview Summary     Packet Pg. 28