HomeMy WebLinkAbout2000-11-20 City Council (17)TO:
FROM:
City of Palo Alto
HONORABLE CITY COUNCIL
CITY MANAGER
C ty Manager’s Report
J4
DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:NOVEMBER 20, 2000 CMR:424:00
SUBJECT:RETAINING RETAIL USES IN NEIGHBORHOOD COMMERCIAL
DISTRICTS
RECOMMENDATION
Staff recommends that Council direct staff to develop a recommendation on an interim
ordinance, after conducting property owner outreach, which would potentially amend the
Palo Alto Municipal Code (PAMC) to:
1)Allow only retail and other neighborhood serving uses on the ground floor of
buildings in neighborhood commercial (CN) areas including the Midtown
Shopping District, Charleston Center and specific portions of E1 Camino Real
(Attachment A). New office uses would be prohibited on the ground floor. In
addition, the non-conforming use section of the PAMC would be modified so that
when existing non-conforming office uses vacate a building or change ownership,
they could only be replaced with permitted neighborhood-serving uses.
2)Require nonconforming ground floor office uses in the Ground Floor (GF) and
Retail (R) combining districts that change ownership or vacate a site to be replaced
with permitted neighborhood-serving uses. These changes would also effect
University Avenue and California Avenue.
BACKGROUND
The Palo Alto Comprehensive Plan defines Neighborhood Centers as: " small retail
centers with a primary trade area limited to the immediately surrounding area; often
anchored by a grocery or drug store and may include a variety of smaller retail shops and
offices oriented toward the everyday needs of surrounding residents. Selected streets
CMR: 424:00 Page 1 of 8
-provide walking and biking connections from adjacent neighborhoods". The zoning
ordinance reinforces this definition by stating that the Neighborhood Commercial (CN)
zoning district is intended to: "create and maintain neighborhood-shopping areas .....that
will assure maximum compatibility with surrounding residential areas".
In Palo Alto, as in other Peninsula and South Bay cities, the retention of retail uses in
Neighborhood Commercial Zones ha, s become a critical quality of life issue for local
residents and businesses. Retail loss occurs in Palo Alto in two primary ways. The first
way is that legally permitted uses locate within the building, but the use is not necessarily
neighborhood serving. The second way is that an existing nonconforming office use is
allowed to be replaced by another nonconforming office use
Three are three main problems associated with the loss of retail and service businesses in
neighborhood shopping districts:
The existing retail base is being eroded as retail uses and personal services in
neighborhood commercial areas are displaced by other commercial uses which are
not neighborhood serving.
The eroding retail base in neighborhood serving districts leads to a lack of goods and
services for the surrounding residential areas and is contrary to the intent and
purpose of the neighborhood commercial zoning district.
The existing retail base is prevented from growing because, as non-conforming uses
vacate a site, another non-conforming use can locate in the building, thereby
continuing the non-conforming use patterns and preventing retail and personal
servi(e uses from locating on the site.
These problems undercut’ the sense of community in neighborhoods and impact the ability
of local residents.to utilize local businesses. Opportunities to provide a greater number of
neighborhood serving uses are also decreased. In addition, in those areas where offices
are permitted on the ground floor, the relatively more expensive lease costs for office uses
inflate the lease rates for retail businesses, already at record levels.
In Palo Alto, the districts that are experiencing these impacts are Midtown, University
Avenue, California Avenue, Charleston" Plaza, the three Commercial Neighborhood areas
on E1 Camino Real, the South of Forest Area, Alma Plaza and Edgewood Plaza. While
Alma Plaza and Edgewood Plaza are identified as local neighborhood retail centers in the
Comprehensive Plan, Planned Community (PC) zoning designations regulate the uses in
each center. Changes to the CN zone would not affect either Alma or Edgewood Plaza.
Modifications to the specific PC zone would need to be made to further protect or
enhance retail uses allowed in those areas. For this reason, issues in these centers will not
CMR: 424:00 Page 2 of 8
be addressed in this report. The South of Forest Area (SOFA) will also be excluded from
recommendations.in this report, deferring to the SOFA II Area Plan which will address
retail and non-conforming use considerations. This report will discuss the remedies
recommended to address the above concerns in the remaining neighborhood business
districts.
DISCUSSION
In developing an interim approach to this problem, staff recommends that the approach
focus on the retention of retail use in neighborhood commercial districts and along
University and California Avenues (see Attachments A, B and C for location of these
areas). An interim approach will immediately address the issue of the eroding retail base.
The interim solution can be modified or expanded as needed as part of the complete
zoning ordinance update that is currently underway.
Staff has identified the following strategies to address retail loss and retention of
neighborhood serving retail and service uses in local centers:
Allow only retail, personal service, theaters, in ground floor storefronts.
Grandfather all existing uses that do not conform to this new location-based
requirement.
Modify non-conforming regulations for CN zones, in the Downtown Area along
University Avenue and along California Avenue, stating that when a non-
conforming use vacates a building or changes ownership, the space can only be
filled with a conforming use.
The required set of Municipal Code changes needed to reach the goal of retaining retail
uses is outlined below. The first set of modifications address CN zones. The second set
address portions of the downtown area where the ground floor combining district
regulations (GF) apply and portions of California Avenue where the retail shopping
district (R) regulations apply.
Modifications recommended in CNzones_(see Attachment A for map of areas)."
(a)Modify the CN zone to remove offices as permitted uses on the ground
floor. The effect of this change would be to allow only retail uses
(excluding liquor stores), personal services, lodging, restaurants, day care
centers, large and small day care homes, animal care and residential uses on
the ground floor in the CN zoning district.
(b)"Grandfather" all legally existing ground floor office uses in CN zones so
that they become legal nonconforming uses. (Granting "grandfathered"
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status to existing nonconforming ground floor office uses will allow them to
remodel, repair and maintain the buildings within which they are located,
provided the use is not made larger or more nonconforming).
(c)Modify the nonconforming use section of the PAMC to state that
nonconforming uses in the CN district could not be changed to or replaced
by any use except a conforming use. The effect of this modification would
be that as ground floor office uses vacate spaces in the Midtown shopping
district, Charleston Center, or in the CN zones along E1 Camino Real, the
use would have to be replaced by a conforming neighborhood serving use
as identified in (a) above.
Modifications recommended in GF and R combining districts (see Attachments B and C
for map of areas) :
(d)Add language to the nonconforming use section of the Commercial
Downtown District regulations which will state that if an existing
nonconforming office use on the ground floor of the CD-C (GF) district is
abandoned for any length of time, it may be replaced only by a conforming
use.
(e)Modify the nonconforming use section of the Commercial Downtown
District regulations so that the references to discontinuance of a
nonconforming use for twelve consecutive months only apply to
nonconforming uses in non-GF districts (i.e. CD-C, CD-S and CD-N).
The result of these two changes will be that as nonconforming ground floor office uses in
the CD-C (GF) district (primarily along University Avenue and on side streets between
Hamilton Avenue and Lytton Avenue) change ownership or vacate a space, the use will
be required to be replaced by retail or other permitted uses in the GF zone and that a
nonconforming ground floor office use would not be allowed to continue from one owner
or operator to the next.
Areas downtown that are zoned CD-S and CD-N or CD-C without a GF combining
district would remain subject to the same requirements that currently exist, which means
that nonconforming office uses in those districts could continue as long as the use was not
discontinued for 12 consecutive months or more.
Grandfather all legally existing ground floor office uses along California Avenue
and modify the Retail Shopping Combining District (R) regulations so that if a
ground floor use is deemed grandfathered and it is abandoned for any length of
time that it may only be replaced with a conforming ground floor use.
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The result of this change will be similar to the two changes for the CD-C (GF) district
noted above. Nonconforming ground floor office uses that change ownership or vacate
office space will be required to be replaced by retail or other permitted uses in the R zone
and a nonconforming ground floor office use would not be allowed to continue from one
owner or operator to the next.
Property_ Owner Outreach
Prior to bringing the proposed modifications back to the City Council for review and
action, staff will meet with property owners in the areas that would be affected by the
potential changes. At present, five such meetings have been identified and will be
scheduled for December and January. The report to City Council in February, 2001 will
summarize the outcome of these meetings (see Timeline section of this report).
Enforcement of existing regulations
In addition to the possible PAMC changes that are outlined above, code enforcement staff
will continue to investigate all reported code violations.
ALTERNATIVES TO STAFF RECOMMENDATION
These alternatives are included for comparative purposes and to note that there are ways
of addressing the problem differently. The benefits and shortcomings of a particular
approach would need to be explored if the City Council directs staff to evaluate one or
more of the approaches in the upcoming three months. The alternatives include the
following:
Reduce the number of areas to be addressed by the proposed modifications (e.g. do
not include portions of E1 Camino Real or Charleston Center).
2.Limit the new rules to street-facing facades, not an entire center.
Allow some office use on the ground floor, but restrict it to neighborhood serving
office use. This alternative would require creating a new land use definition for
neighborhood serving office use.
o Require conditional use permits for offices on the ground floor. This change which
would mean that each new offic~ use would be required to apply for and obtain a
conditional use permit prior to locating within a building.
CMR: 424:00 Page 5 of 8
RESOURCE IMPACT
Developing PAMC changes regarding CN and nonconforming uses prior to and apart
from the overall zoning ordinance update will add to the Planning Division’s workload
and staffing needs. Reassignment of existing staff will be required to complete the needed
tasks. An associate planner will be required to gather land use data regarding existing
uses in the areas identified as affected by the proposed changes. Gathering the data will
take approximately 60 hours. The data will need to be catalogued and mapped, which will
require assistance from the GIS staff and will take approximately 20 additional hours.
Holding meetings with property owners in the affected areas will comprise approximately
10 to 15 additional hours. A quarter to one half of a code enforcement officer’s time will
be needed over a four week period to investigate alleged use violations along University
Avenue and applicable side streets and California Avenue, which will equal another 40 to
80 hours of time. Writing .ordinances and staff reports will require 40 to 50 hours of City
Attorney and Planning Division staff time. The total number of hours needed to complete
the assignment will be between 170 and 225.
Given that the assignment was not anticipated prior to two weeks ago, staff time has not
been allocated to the project. Therefore, staff will need to be reassigned from existing
Planning Division work items such as the modifications to single-family regulations, the
second phase of the South of Forest Coordinated Area Plan or the E1 Camino Real study
to accomplish the task. Removing staff from these other projects will affect the timelines
for those projects.
POLICY IMPLICATIONS
Modifying neighborhood commercial use requirements and standards and nonconforming
use standards are supported by many policies and programs in the Comprehensive Plan.
The vision statement in the Comprehensive Plan includes a reference to strengthening and
enhancing Palo Alto’s neighborhoods and shopping centers.
Policy L-4 calls for maintaining the City’s varied residential neighborhoods while
sustaining the vitality of its commercial areas and public facilities. The policy further
calls for using the zoning ordinance as a tool to enhance Palo Alto’s desirable qualities.
Program L-6 calls for revising the neighborhood commercial zone to better address land
use transitions.
Program L-9 calls for the continued monitoring, including the effectiveness of the ground
floor retail requirement, in the University Avenue/Downtown AR
Policy L- 11 calls for promoting increased compatibility, interdependence and support
between commercial and mixed-use centers and the surrounding residential
CMR: 424:00 Page 6 of 8
neighborhoods.
Policy L-20 encourages street frontages that contribute to retail vitality in all commercial
centers.
Policy L-37 calls for maintaining the scale and local serving focus of Palo Alto’s four
Neighborhood Centers and supporting their continued improvement and vitality.
Program L-36 calls for evaluating current zoning to determine if it supports the types of
uses and scale of buildings considered appropriate in neighborhood centers.
Policy L-40 specifically calls for revitalizing Midtown as an attractive, compact
neighborhood center with diverse local serving uses.
Policy B-4 calls for nurturing and supporting established businesses as well as new
businesses.
Policy B-5 calls for maintaining district business districts within Palo Alto as a means of
retaining local services and diversifying the City’s economic base.
Policy B-6 calls for maintaining distinct neighborhood shopping areas that are attractive,
accessible, and convenient to nearby residents.
Policy B-7 calls for encouraging and supporting the operation of small, independent
businesses.
TIMELINE
Following this CMR to City Council, staff would conduct approximately five outreach
meetings with affected property owners based on geographic area and zoning during the
months of December and January. In February, staff will propose an interim ordinance
according to Section 65858 of the Government Code, for adoption by a 4/5 vote of the
Council. There will be published and mailed notice of the hearing in February. If
adopted, the interim ordinance will be in effect for 45 days. At the end of the 45 days and
after notice and public hearing, the City Council may adopt the interim ordinance by a 4/5
vote for an additional 22 months and 15 days. By this time, the City’s Zoning Ordinance
Update should be complete and will replace the interim ordinance enacted by City
Council.
’ENVIRONMENTAL REVIEW
This project is exempt from the provisions of the California Environmental Quality Act
CMR: 424:00 Page 7 of 8
(CEQA), per Section 15061(3) of CEQA Guidelines, because it can be seen with certainty
that there is no possibility that the project will have a significant effect on the
environment
ATTACHMENTS
Attachment A:
Attachment B:
Attachment C:
Map(s) of CN zoning districts affected by modifications
Map of Downtown Commercial zoning district affected by
modifications
Map of California Avenue affected by modifications
PREPARED BY:Lisa Grote, Chief Planning Official
Susan Arpan, Manager Economic Resources Program
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
G. EDWARD GAWF
Director of Planning and Community Environment
I}MILY HARRISON
Assistant City Manager
cc~Will Beckett, Barron Park Association, 4189 Baker Avenue, Palo Alto, CA 94306
Pria Graves, College Terrace Residents Assn., 2130 Yale Street, Palo Alto, CA
94301
Annette GlanckopfAshtola, 2747 Bryant Street, Palo Alto, CA 94306
Karen White, 146 Walter Hayes Drive, Palo Alto, CA 94303
Myllicent Hamilton, 4014 Ben Lomond Drive, Palo Alto, CA 94306
Marge Speidel, 3059 Louis Road, Palo Alto, CA 94303
Cornelia Pendleton, 267 Hamilton Avenue, Palo Alto, CA 94301
Lynn Chiapella, 631 Colorado Avenue, Palo Alto, CA 94303
Brenda Ross, 1521 Escobita Avenue, Palo Alto, CA 94306
Ronna Devincenzi, 2600 E1 Camino Real, #100, Palo Alto, CA 94306
Debbie Mytels, 2824 Louis Road, Palo Alto, CA 94303
Charles G. Osborne, 255 Edlee Street, Palo Alto, CA 94306
CMR: 424:00 Page 8 of 8
Attachement: A-1
This map is a ~r~u~t
E1 Camino Real City of Palo Alto GIS
CN ~stricts
North of
Page Mill Road
O’300’600’
mo
E1 Camino Real
CN Districts
South of
Page Mill Road
This map is a product
°X
T h~o f
of theMiddlefield Road:City of Palo Alto OlS
CN Districts
Near
Colorado Avenue
O’300’600’
The City of
Palo A1 to
PLANNING DIVISION
CN
Attachment
Middlefield Road:
CN Districts
Near
Charleston Road
GM
This map is a product
of the
City of Palo Alto GIS
600’
ac ment:
of the N m
City of Palo Alto GIS o ~Downtown:
Regular CD Districts
and CD Districts
with GF Owrlay
O’300’600’
PC-2533 ~~ ~
Attachment: C ’ ~
The City of
Palo A1 to
PLANNING DIVISION
California Avenue
CC2RP Districts
This map is a product
of the
City of Palo Alto GIS
O’300’600’ : ~