HomeMy WebLinkAboutStaff Report 14261
City of Palo Alto (ID # 14261)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/2/2022
City of Palo Alto Page 1
Summary Title: Retail Temporary Ordinance Extension
Title: PUBLIC HEARING: Adoption of an Ordinance Amending Palo Alto
Municipal Code (PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16
(Neighborhood, Community, and Service Commercial (CN, CC and CS)
Districts), 18.18 (Downtown Commercial (CD) Districts) and 18.30 (A) and (C)
the Retail and Ground Floor Combining Districts. Environmental Review:
Exempt Under California Environmental Quality Act (CEQA) Guidelines
Section 15061(b)(3) until December 16, 2022.
From: City Manager
Lead Department: Planning and Development Services
Recommendation
Staff recommends Council adopt an ordinance (Attachment A) extending the existing
temporary ordinance (#5517), which broadens permissible uses and raises conditional use
permit thresholds for some land uses in the City with certain exceptions, for an additional six
months.
Executive Summary
The existing temporary ordinance (#5517) that broadens permissible uses and raises thresholds
for Conditional Use Permits (CUPs) for some land uses throughout the City is due to expire on
June 30, 2022. At the March 30, 2022, PTC meeting, the PTC considered a proposed ordinance
making permanent changes contained within the temporary ordinance. In its motion, the PTC
moved to continue the item to a date uncertain to allow additional time to evaluate the
substantive changes.
This necessitates the extension of the temporary ordinance to avoid a lapse in the policy due to
time constraints. While Council is considering this extension, the PTC will continue its review of
the temporary ordinance and prepare a recommendation for the City Council later this year.
City of Palo Alto Page 2
The proposed ordinance does not make any changes to the details of the temporary ordinance,
but specifically modifies the term to extend for six months, until December 16, 2022.
Background
On November 9, 2020, the City Council received an update on the City’s community and
economic recovery strategies. The City Council directed1 staff to return on December 14, 2020
with an ordinance to temporarily implement discrete amendments to the zoning code that
would broaden the definition of retail uses and relax the CUP threshold for certain uses; the
temporary ordinance was passed on first reading without any changes.2,3
The second reading of the ordinance was presented to the City Council on January 11, 2021; the
item was pulled from the consent calendar and placed on the January 19, 2021 agenda. Staff
prepared an at-places memo4 to respond to Councilmember questions. Due to the lateness of
the meeting, the item was continued to a Council date uncertain.
On March 8, 20215, the second reading of the ordinance was presented to the City Council. At
that meeting, the Council directed several amendments to the ordinance6. Another second
reading of the ordinance was presented to the City Council on April 12, 20217 and, with the
inclusion of the amendments, a temporary ordinance was adopted. This temporary ordinance is
set to expire June 30, 2022 unless Council adopts replacement (extension) legislation.
On March 30, 20228, staff presented the PTC with a proposed ordinance that would have
codified the temporary standards with some adjustments. After hearing public testimony9, the
1 November 9, 2020 Action Meeting Minutes:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=42635.86&BlobID=79443
2 December 14, 2020 Staff Report:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=60118.96&BlobID=79480
3 December 14, 2020 Action Meeting Minutes:
https://www.cityofpaloalto.org/civicax/filebank/documents/79829
4 At Places Memo, dated January 19, 2021:
https://www.cityofpaloalto.org/civicax/filebank/documents/79946
5 March 8, 2021 Staff Report
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/current-year/2021/id-12054.pdf
6 Action Meeting Minutes, March 8, 2021
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council-
agendas-minutes/2021/03-08-21-ccm-action-minutes.pdf
7 April 12, 2021 Staff Report
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports-
cmrs/current-year/2021/id-12165.pdf
8 March 30, 2022 Staff Report
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/planning-and-
transportation-commission/2022/ptc-03.30.2022-cup.pdf
City of Palo Alto Page 3
PTC discussed a desire to evaluate the proposed changes more thoroughly. The PTC moved to
continue the item to a date uncertain, while staff seeks an extension of the temporary
ordinance.
Discussion
The temporary ordinance responds to Council direction for minor amendments to the
definitions section of the zoning code and adjustments to the thresholds to determine when a
conditional use permit (CUP) is required. The purpose of the amendments is to promote retail
activity and decrease commercial vacancies.
Temporary amendments were to the ‘eating and drinking’ establishments, ‘personal service’,
‘retail services’ and ‘take-out service’ definitions. The square footage thresholds for requiring a
CUP temporarily increased for ‘commercial recreation’, ‘medical office’ and some ‘personal
services’ uses in various commercial districts.
The temporary ordinance also includes the Council’s additional amendments for exceptions to
the thresholds for certain uses located along University Avenue, California Avenue, and Town &
Country Village Shopping Center because of concerns that certain personal service uses may
replace traditional retail spaces. The changes were relatively minor and reserved more
significant policy recommendations to future public hearings and analysis before the PTC.
Planning and Transportation Commission Review
The PTC reviewed a draft Ordinance on March 30, 2022 that was intended to make permanent
the revisions contained in the temporary ordinance. The PTC voted 6-0 to continue the
discussion of the item to a date uncertain until staff receives an extension to the temporary
ordinance allowing further evaluation. PTC members expressed a desire to study the issues
more thoroughly.
Proposed Schedule
Staff plans to bring this discussion forward to the PTC later this year for consideration of making
permanent the temporary ordinance. The PTC’s review will focus exclusively on the contents of
the temporary ordinance and whether the thresholds and definitions are advisable, if changes
should be made, or if policy should revert to previous definitions and size thresholds for CUPs.
Additional items were referred to the PTC on March 8, 2021, when Council considered the
temporary ordinance. These items will be discussed separately from the temporary ordinance.
In particular, further staff and PTC work on these items will benefit from the economic
9 March 30, 2022 PTC Meeting Video
https://www.youtube.com/watch?v=klK_PzGBX30&start=14810&width=420&height=315
City of Palo Alto Page 4
development consultant the Council has directed be identified as well as the economic
development position in the City Manager’s Office. These topics for future review include:
• Evaluating the most appropriate way to define eating and drinking uses,
• evaluating the 1,800 square foot CUP threshold for gyms on University Avenue,
California Avenue and within Town and Country Village Shopping Center, and
• evaluating the occupancy of commercial recreation facilities.
This work will coincide with the greater effort by the City to evaluate retail uses on a Citywide
or district by district level as directed by the City Council on November 9, 202210 but is currently
un-resourced and not being pursued at this time. Based on the foregoing, staff propose
extending the ordinance to preserve the existing temporary regulations and allow time to bring
forward a new ordinance.
Summary of Key Issues
The City Council enacted a temporary ordinance to help businesses and property owners with
the effects of the pandemic on the economy. In this report, Council is asked to approve an
extension of the temporary ordinance for an additional six months, ending December 16, 2022.
Policy Implications
The various changes contained with the temporary ordinance are intended to streamline the
process for certain new businesses. Since the adoption of the temporary ordinance only four
businesses have taken advantage of the changes. It is difficult to ascertain whether the limited
effects of the ordinance are because of the ongoing pandemic or other reasons. It is too soon to
establish a trend.
If the ordinance is not extended as recommended, the temporary standards would expire and
revert to the previous code provisions.
Resource Impact
This action has no significant budget or fiscal impact.
Timeline
If City Council adopts the ordinance on May 2, 2022 (First Reading), the Second Reading is
tentatively scheduled for May 16, 2022. The ordinance will become effective 31 days following
the Second Reading on June 16, 2022. The new expiration date will be December 16, 2022.
10 11.09.20 Council Action Minutes: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/agendas-minutes/city-council-agendas-minutes/2020/november-09-2020-city-council-meeting-action-
minutes.pdf
City of Palo Alto Page 5
Stakeholder Engagement
Internal coordination with applicable city staff and departments was held for this specific report
and ordinance. Opportunities for public engagement continue for the draft ordinance being
reviewed by the PTC.
Environmental Review
The project is exempt from the California Environmental Quality Act (CEQA) in accordance with
CEQA Guidelines 15061(b)(3) in that it can be seen with certainty that ordinance will not have a
significant impact on the environment. The ordinance makes minor adjustments to land use
definitions and modest changes to the thresholds for discretionary review.
Attachments:
Attachment A: Ordinance Temporarily Extending Ord 5517 Amending PAMC Ch 18.04, 18.16,
18.18, 18.30 (PDF)
*NOT YET ADOPTED*
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Ordinance No. _____
Ordinance of the Council of the City of Palo Alto Temporarily Extending Ordinance
5517, Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning), Chapters 18.04
(Definitions), 18.16 (Neighborhood, Community, and Service Commercial (CN, CC
and CS) Districts), 18.18 (Downtown Commercial (CD) Districts) and 18.30 (A) and (C)
– the Retail and Ground Floor combining districts
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On April 5, 2021 the City Council adopted Ordinance 5517 to temporarily relax certain
zoning regulations in the City’s commercial zoning districts to address some of the
economic challenges created by the COVID-19 pandemic and to spur economic activity.
B. The City Council directed the Planning and Transportation Commission (PTC) to review
certain elements of the temporary ordinance and provide a recommendation to the City
Council.
C. On March 30, 2022 the PTC recommended that the term of Ordinance 5517 be
extended to allow additional time for consideration of whether the temporary
relaxation of zoning regulations should remain indefinitely, and whether such
regulations should be otherwise amended.
D. The public health, safety, or welfare require that the amendments temporarily enacted
by Ordinance 5517 remain in effect without interruption while the PTC conducts its
additional review.
SECTION 2. The effective date of Ordinance 5517 of the Palo Alto City Council,
attached hereto as Exhibit A and incorporated herein, is hereby extended so that the Ordinance
shall expire upon the earlier of December 16, 2022 or adoption of replacement legislation by
the City Council. Upon expiration of Ordinance 5517, the City Clerk shall direct the City’s
codifier to update the Palo Alto Municipal Code as appropriate.
SECTION 3. Any provision of the Palo Alto Municipal Code or appendices thereto
inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no
further, is hereby repealed or modified to that extent necessary to effect the provisions of this
Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of competent
*NOT YET ADOPTED*
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jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance and each
and every section, subsection, sentence, clause, or phrase not declared invalid or
unconstitutional without regard to whether any portion of the ordinance would be
subsequently declared invalid or unconstitutional.
SECTION 5. The Council finds that the adoption of this ordinance is exempt from the
provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections
15061(b)(3) because it can be seen.
SECTION 6. This ordinance shall be effective on the thirty-first date after the date of
its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning & Development
Services
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Ordinance No. 5517
Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code
(PAMC) Title 18 (Zoning), Chapters 18.04 (Definitions), 18.16 (Neighborhood,
Community, and Service Commercial (CN, CC and CS) Districts), 18.18 (Downtown
Commercial (CD) Districts) and 18.30 (A) and (C) – the Retail and Ground Floor
Combining Districts
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Declarations. The City Council finds and declares as follows:
A. On March 4, 2020, California Governor Gavin Newsom declared a State of Emergency
due to the threat of Coronavirus Disease 2019 (“COVID-19”).
B. As a result of the COVID-19 pandemic and the public health response, restaurant, retail,
tourism, and hospitality business has significantly declined and the nation is
experiencing a recession.
C. The City Council desires to relax certain zoning regulations in the City’s commercial
zoning districts to address some of the economic challenges created by the COVID-19
pandemic and to spur economic activity.
D. The public health, safety, or welfare require that such changes to the City’s zoning
regulations be enacted for a temporary period and as expediently as possible, without
review by the Planning and Transportation Commission pursuant to Palo Alto Municipal
Code section 18.80.090.
SECTION 2. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18
(Zoning) of the Palo Alto Municipal Code is amended to read as follows:
18.04.030 Definitions
(a) Throughout this title the following words and phrases shall have the meanings
ascribed in this section.
[. . .]
(45) “Drive-in/drive-through service” means a feature or characteristic of a use involving
sales of products or provision of services to occupants in vehicles, including drive-in or drive-up
windows and drive- through services such as mechanical automobile washing, pharmacy
windows, coffee stands, automatic teller machines, etc.
[. . .]
EXHIBIT A
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(47) “Eating and drinking service” means a use providing preparation and retail sale of
food and beverages with a full menu and providing indoor seating area. Eating and drinking
service include presence of a full commercial kitchen and commercial dishwasher. including
restaurants, fountains, cafes, coffee shops, sandwich shops, ice cream parlors, taverns, cocktail
lounges and similar uses. For establishments with incidental sale alcoholic beverages, a
minimum of 50% of revenues from an ‘eating and drinking service’ must be derived from the
sale of food. Related definitions are provided in subsections (45) (Drive-in/drive-through
service), (125)(B) (Intensive retail service) and (136) (Take-out service).
[. . .]
(95) “Medical office” means a use providing consultation, diagnosis, therapeutic,
preventive, or corrective personal treatment services by doctors, dentists, medical and dental
laboratories, and similar practitioners of medical and healing arts for humans, licensed for such
practice by the state of California. Incidental medical and/or dental research within the office is
considered part of the office use, where it supports the on-site patient services. Medical office
use does not include the storage or use of hazardous materials in excess of the permit
quantities as defined in Title 15 of the Municipal Code. Medical gas storage or use shall be
allowed up to 1,008 cubic feet per gas type and flammable liquids storage and use shall be
allowed up to 20 gallons total (including waste).
(95.1) (A) “Medical research” means a use related to medical and/or dental research,
testing and analysis, including but not limited to trial and clinical research. Biomedical and
pharmaceutical research and development facilities are not included in this definition. Medical
Research does not include the storage or use of quantities of hazardous materials above the
exempt quantities listed in Title 15 of the Municipal Code nor any toxic gas regulated by Title
15. Additionally, Medical Research may include storage and use of etiological (biological) agents
up to and including Risk Group 2 or Bio Safety Level 2 (Center for Disease Control).
(95.2) (B) “Medical support retail” means a retail use providing sales, rental, service, or
repair of medical products and services to consumers or businesses, and whose location near
hospitals or medical offices facilitates the provision of medical care or medical research.
Examples of medical retail uses typically include, but are not limited to, pharmacies, sale of
prosthetics, and sale of eyeglasses or other eye care products.
(95.3) (C) “Medical support service” means a use providing administrative support
functions for healthcare providers or facilities, intended to support the operations of hospitals
or of medical and dental office uses, and whose location near those medical facilities enhances
the interaction between medical providers and/or facilitates the provision of medical care or
medical research. Examples of medical support service uses typically include, but are not
limited to, administration and billing services, public relations, training, and fundraising.
Hospitals and ambulance services are not included in this definition.
[. . .]
EXHIBIT A
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(114) “Personal service” means a use providing services of a personal convenience nature,
and cleaning, repair or sales incidental thereto, including:
(A) Beauty shops, nail salons, day spas, and barbershops;
(B) Self-service laundry and cleaning services; laundry and cleaning pick-up stations
where all cleaning or servicing for the particular station is done elsewhere; and laundry and
cleaning stations where the cleaning or servicing for the particular station is done on site,
utilizing equipment meeting any applicable Bay Area Air Quality Management District
requirements, so long as no cleaning for any other station is done on the same site, provided
that the amount of hazardous materials stored does not at any time exceed the threshold
which would require a permit under Title 17 (Hazardous Materials Storage) of this code;
(C) Repair and fitting of clothes, shoes, and personal accessories;
(D) Quick printing and copying services where printing or copying for the particular
service is done on site, so long as no quick printing or copying for any off-site printing or
copying service is done on the same site;
(E) Internet and other consumer electronics services;
(F) Film, data and video processing shops, including shops where processing for the
particular shop is done on site, so long as no processing for any other shop is done on the same
site;
(G) Art, dance or music studios intended for an individual or small group of persons in a
class (see “commercial recreation” for other activities); and
(H) Fitness and exercise studios, or similar uses, in a space having of 1,800 5,000 square
feet or fewer of gross floor area (see “commercial recreation” for uses exceeding 5,000 square
feet other activities).
(I) Learning centers intended for individual or small group settings, including tutoring,
standardized test preparation, language classes, after-school programs, cooking classes, and
similar uses.
[. . .]
(125) “Retail service” means a use open to the public during typical business hours and
predominantly engaged in providing retail sale, rental, service, processing, or repair of items
primarily intended for consumer or household use.
(A) “Extensive retail service,” as used with respect to parking requirements, means a
retail sales use having more than seventy-five percent of the gross floor area used for display,
sales, and related storage of bulky commodities, including household furniture and appliances,
lumber and building materials, carpeting and floor covering, air conditioning and heating
equipment, and similar goods, which uses have demonstrably low parking demand generation
per square foot of gross floor area.
EXHIBIT A
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(B) “Intensive retail service” as used with respect to parking requirements, means any
retail service use not defined as extensive retail service and including limited food service (i.e.
‘ready-to-eat’ food and/or beverage shops without a full commercial kitchen, where food
and/or beverages are ready to consume at the time of sale and any seating area is limited;
examples include sandwiches, frozen desserts, non-alcoholic beverages, and baked items).
[. . .]
(136) “Take-out service” means a characteristic of an eating or drinking service which
encourages, on a regular basis, consumption of food or beverages, such as prepared or
prepackaged items, outside of a building, in outdoor seating areas where regular table service is
not provided, in vehicles parked on the premises, or off-site. Take-out service does not include
intensive retail service uses, as defined in subsection (125)(B).
[. . .]
SECTION 3. Section 18.16.040 (Land Uses) of Chapter 18.16 (Neighborhood,
Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning) of the Palo Alto
Municipal Code is amended to read as follows:
The uses of land allowed by this chapter in each commercial zoning district are identified in the
following tables. Land uses that are not listed on the tables are not allowed, except where
otherwise noted. Where the last column on the following tables ("Subject to Regulations in")
includes a section number, specific regulations in the referenced section also apply to the use;
however, provisions in other sections may apply as well.
(a) Commercial Zones and Land Uses
Permitted and conditionally permitted land uses for each commercial zone are shown in Table
1:
TABLE 1
PERMITTED AND CONDITIONALLY PERMITTED USES
P = Permitted Use CUP = Conditional Use Permit Required
LAND USE CN(4) CC, CC(2) CS (4) Subject to Regulations In:
ACCESSORY AND SUPPORT
USES
Accessory facilities and activities
customarily associated with or
essential to permitted uses, and
operated incidental to the principal
use.
P P P 18.42
Drive-in services or take-out
services associated with permitted
uses(3)
CUP CUP CUP 18.42
EXHIBIT A
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Tire, battery, and automotive service
facilities, when operated incidental to
a permitted retail service or
shopping center having a gross floor
area of more than 30,000 square
feet.
CUP 18.42, 18.40.160
Safe Parking 18.42.160
EDUCATIONAL, RELIGIOUS, AND
ASSEMBLY USES
Business and Trade Schools P P
Churches and Religious Institutions P P P
Private Educational Facilities CUP P P
Private Clubs, Lodges, or Fraternal
Organizations
CUP P P
MANUFACTURING AND
PROCESSING USES
Recycling Centers CUP CUP CUP
Warehousing and Distribution CUP
OFFICE USES
Administrative Office Services P 18.16.050
Medical Offices CUP
(5)
CUP (5) CUP (5) 18.16.050
Professional and General Business
Offices
P P P 18.16.050
PUBLIC/QUASI-PUBLIC USES
Utility Facilities essential to provision
of utility services but excluding
construction or storage yards,
maintenance facilities, or corporation
yards.
CUP CUP CUP
RECREATION USES
Commercial Recreation CUP
(5)
CUP (5) CUP (5) 18.40.160
Outdoor Recreation Services CUP CUP CUP
EXHIBIT A
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RESIDENTIAL USES
Multiple-Family P(1) P(1) P(1) 18.16.060(b) and (c)
Home Occupations P P P
Residential Care Homes P P P
RETAIL USES
Eating and Drinking Services,
excluding drive-in and take-out
services
P P P 18.40.160
Retail Services, excluding liquor
stores
P P P 18.40.160
Liquor stores CUP P P 18.40.160
Shopping Centers P 18.16.060(e), 18.40.160
SERVICE USES
Ambulance Services CUP CUP CUP
Animal Care, excluding boarding
and kennels
P P P
Boarding and Kennels CUP
Automobile Service Stations CUP CUP CUP 18.30(G)
Automotive Services CUP
Convalescent Facilities CUP P P
Day Care Centers P P P 18.40.160
Small Family Day Care Homes P P P
Large Family Day Care Homes P P P
Small Adult Day Care Homes P P P
Large Adult Day Care Homes CUP P P
Banks and Financial Services V CUP P(2) P(2)
General Business Services CUP P
Hotels P P 18.16.060(d), 18.40.160
EXHIBIT A
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Mortuaries CUP P P
Neighborhood Business Services P 18.16.060(f)
Personal Services P P (6) P 18.16.060(f), 18.40.160
Reverse Vending Machines P P P
TEMPORARY USES
Farmer's Markets CUP CUP CUP
Temporary Parking Facilities,
provided that such facilities shall
remain no more than five years.
CUP CUP CUP
TRANSPORTATION USES
Parking as a principal use CUP CUP
Transportation Terminals CUP CUP
P = Permitted Use CUP = Conditional Use Permit Required
(1) Residential is only permitted: (i) as part of a mixed use development, pursuant to the provisions of
Section 18.16.060(b), or (ii) on sites designated as housing inventory sites in the Housing Element of the
Comprehensive Plan, (iii) on CN or CS sites on El Camino Real, or (iv) on CC(2) sites, all pursuant to the
provisions of Section 18.16.060(b) and (c).
(2) Except drive-in services.
(3) So long as drive up facilities, excluding car washes, provide full access to pedestrians and
bicyclists. A maximum of two such services shall be permitted within 1,000 feet, and each use shall not
be less than 150 feet from one another.
(4) For properties in the CN and CS zone districts, businesses that operate or have associated
activities at any time between the hours of 10:00 p.m. and 6:00 a.m. require a conditional use permit.
(5) A conditional use permit is not required for medical office or commercial recreation uses up to
5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is
always required: (A) medical office fronting on California Avenue and in the Midtown Shopping District;
(B) commercial recreation uses fronting on California Avenue and in the Town and Country Village
Shopping Center.
(6) A conditional use permit is required for the following uses when fronting on California Avenue: (A)
Fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area; and (B)
Learning centers intended for individual or small group settings. A conditional use permit is required for
EXHIBIT A
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fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area in Town and
Country Village Shopping Center.
[. . .]
SECTION 4. Section 18.16.060 (Development Standards) of Chapter 18.16
(Neighborhood, Community, and Service Commercial (CN, CC, CS) Districts) of Title 18 (Zoning)
of the Palo Alto Municipal Code is amended to read as follows:
18.16.060 Development Standards
[. . .]
(f) Size of Establishments in the CN District
In the CN district, permitted commercial uses shall not exceed the floor area per individual use
or business establishment shown in Table 5. Such uses may be allowed to exceed the maximum
establishment size, subject to issuance of a conditional use permit in accord with Section
18.76.010. The maximum establishment size for any conditional use shall be established by the
director and specified in the conditional use permit for such use.
TABLE 5
MAXIMUM SIZE OF ESTABLISHMENT
Type of Establishment Maximum Size (sq ft)
Personal Services 2,500 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services 5,000
Neighborhood business services 2,500 3,000
[. . .]
(h) Outdoor Sales and Storage
(2) In the CC district and in the CC (2) district, the following regulations shall apply to outdoor
sales and storage:
(A) Except in shopping centers, all permitted office and commercial activities shall be
conducted within a building, except for:
(i) Incidental sales and display of plant materials and garden supplies occupying no more
than 2,000 square feet of exterior sales and display area,
(ii) Outdoor eating areas operated incidental to permitted eating and drinking services or
intensive retail uses,
(iii) Farmers’ markets that have obtained a conditional use permit, and
EXHIBIT A
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(iv) Recycling centers that have obtained a conditional use permit.
(B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a
conditional use permit.
SECTION 5. Sections 18.18.050 (Land Uses) of Chapter 18.18 (Commercial Downtown
(CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is amended to read as follows:
18.18.050 Land Uses
The uses of land allowed by this chapter in each commercial zoning district are
identified in the following table. Land uses that are not listed on the tables are not allowed,
except where otherwise noted. Where the last column on the following tables ("Subject to
Regulations in") includes a section number, specific regulations in the referenced section also
apply to the use; however, provisions in other sections may apply as well.
Permitted and conditionally permitted land uses for the CD district are shown in Table 1:
Table 1
CD Permitted and Conditionally Permitted Uses
P Permitted Use • CUP Conditional Use Permit Required
CD-C CD-S CD-N Subject to
regulations in
Chapter:
ACCESSORY USES
Accessory facilities and activities associated with or
essential to permitted uses, and operated incidental
to the principal use
P P P
Drive-in or Take-out Services associated with
permitted uses (2)
CUP CUP CUP
Tire, battery, and automotive service facilities, when
operated incidental to a permitted retail service or
shopping center having a gross floor area of more
than 30,000 square feet
CUP 18.40.160
Safe Parking 18.42.160
EDUCATIONAL, RELIGIOUS, AND ASSEMBLY
USES
Business and Trade Schools P P
Churches and Religious Institutions P P P
EXHIBIT A
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Private Educational Facilities P P CUP
Private Clubs, Lodges, or Fraternal Organizations P P CUP
MANUFACTURING AND PROCESSING USES
Recycling Centers CUP CUP CUP
Warehousing and Distribution CUP
OFFICE USES
Administrative Office Services P 18.18.060(f)
Medical, Professional, and General Business Offices P P P 18.18.060(f)
PUBLIC/QUASI-PUBLIC FACILITY USES
Utility Facilities essential to provision of utility
services but excluding construction or storage yards,
maintenance facilities, or corporation yards
CUP CUP
RECREATION USES
Commercial Recreation CUP
(3)
CUP
(3)
CUP
(3)
Outdoor Recreation Services CUP CUP CUP
RESIDENTIAL USES
Multiple-Family P (1) P (1) P (1) 18.18.060(b)
Home Occupations P P P
Residential Care Homes P P P
RETAIL USES
Eating and Drinking Services, except drive-in or take-
out services
P P P 18.18.060(g) , 1
8.40.160
Retail Services, excluding liquor stores P P P 18.18.060(g) , 1
8.40.160
Shopping Centers P 18.18.060(g) , 1
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8.40.160
Liquor Stores P P CUP 18.40.160
SERVICE USES
Animal Care, excluding boarding and kennels P P P
Ambulance Services CUP CUP CUP 18.30(G)
Automobile Service Stations CUP CUP CUP
Automobile Services CUP
Convalescent Facilities P P CUP
Day Care Centers P P P 18.40.160
Small Family Day Care Homes P P P
Large Family Day Care Homes P P P
Small Adult Day Care Homes P P P
Large Adult Day Care Homes
Financial Services, except drive-up services P P CUP
General Business Services CUP P P
Hotels P P P 18.18.060(d) , 1
8.40.160
Mortuaries P P CUP
Personal Services P (4) P (4) P (4) 18.18.060(g) , 1
8.40.160
Reverse Vending Machines P P P
TRANSPORTATION USES
Parking as a principal use CUP CUP
Passenger Transportation Terminals CUP
EXHIBIT A
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TEMPORARY USES
Indoor Farmers’ Markets CUP CUP CUP
Temporary Parking Facilities, provided that such
facilities shall remain no more than five years
CUP CUP CUP
P Permitted Use CUP Conditional Use Permit Required
(1) Residential is only permitted as part of a mixed use development, pursuant to the provisions
of Section 18.18.060(b), or on sites designated as Housing Opportunity Sites in the Housing
Element of the Comprehensive Plan, pursuant to the provisions of Section 18.18.060(c).
(2) Drive-up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A
maximum of two such services shall be permitted within 1,000 feet and each use shall not be less
than 150 ft from one another.
(3) A conditional use permit is not required for commercial recreation uses up to 5,000 square
feet of gross floor area, with the following exceptions, for which a conditional use permit is always
required: (A) medical office fronting on University Avenue; (B) commercial recreation uses fronting
on University Avenue.
(4) A conditional use permit is required for the following uses when fronting on University
Avenue: (A) Fitness or exercise studios, and similar uses; and (B) Learning centers intended for
individual or small group settings.
SECTION 6. Section 18.18.060 (Development Standards) of Chapter 18.18
(Commercial Downtown (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code is
amended to read as follows:
[. . .]
(g) Restrictions on Size of Commercial Establishments in CD-N Subdistrict
In the CD-N subdistrict, permitted commercial uses shall not exceed the floor area per
individual use or business establishment shown in Table 4. Such uses may be allowed to exceed
the maximum establishment size, subject to the issuance of a conditional use permit in
accordance with Chapter 18.76. The maximum establishment size for any conditional use shall
be established by the director and specified in the conditional use permit for such use.
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EXHIBIT A
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TABLE 4
MAXIMUM SIZE OF ESTABLISHMENT
Type of Establishment Maximum Size (ft 2 )
Personal Services 2,500 3,000
Retail services, except grocery stores 15,000
Grocery stores 20,000
Eating and drinking services 5,000
(h) Outdoor Sales and Storage.
The following regulations shall apply to outdoor sales and storage in the CD district:
(1) CD-C Subdistrict
In the CD-C subdistrict, the following regulations apply:
(A) Except in shopping centers, all permitted office and commercial activities shall be
conducted within a building, except for:
(i) Incidental sales and display of plant materials and garden supplies occupying no
more than 2,000 square feet of exterior sales and display area,
(ii) Outdoor eating areas operated incidental to permitted eating and drinking services
or intensive retail uses,
(iii) Farmers' markets which have obtained a conditional use permit, and
(iv) Recycling centers that have obtained a conditional use permit.
(B) Any permitted outdoor activity in excess of 2,000 square feet shall be subject to a
conditional use permit.
(C) Exterior storage shall be prohibited, except recycling centers which have obtained a
conditional use permit.
(2) CD-S Subdistrict
In the CD-S subdistrict, outdoor sales and display of merchandise, and outdoor eating areas
operated incidental to permitted eating and drinking services and intensive retail uses shall be
permitted subject to the following regulations:
(A) Outdoor sales and display shall not occupy a total site area exceeding the gross
building floor area on the site, except as authorized by a conditional use permit.
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(B) Areas used for outdoor sales and display of motor vehicles, boats, campers, camp
trailers, trailers, trailer coaches, house cars, or similar conveyances shall meet the minimum
design standards applicable to off-street parking facilities with respect to paving, grading,
drainage, access to public streets and alleys, safety and protective features, lighting,
landscaping, and screening.
(C) Exterior storage shall be prohibited, unless screened by a solid wall or fence of
between 5 and 8 feet in height.
(3) CD-N Subdistrict
In the CD-N subdistrict, all permitted office and commercial activities shall be conducted
within a building, except for:
(A) Incidental sales and display of plant materials and garden supplies occupying not
more than 500 square feet of exterior sales and display area, and
(B) Farmers' markets that have obtained conditional use permits.
[. . .]
SECTION 7. Section 18.30(A).040 (Permitted Uses) of Chapter 18.30(A) (Retail
Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal
Code are amended to read as follows:
Except to the extent a conditional use permit is required pursuant to Section 18.30(A).050, the
following uses shall be permitted in an R district:
(a) Eating and drinking services, except drive-in and take-out services.
(b) Personal services, except the following on California Avenue: beauty shops; nail
salons; barbershops; and laundry and cleaning services as defined in Section 18.04.030(114)(B);
fitness or exercise studios exceeding 1,800 square feet in gross floor area; and learning centers
intended for individual or small group settings.
(c) Retail services.
(d) All other uses permitted in the underlying commercial district, provided they are
not located on a ground floor.
SECTION 8. Section 18.30(A).050 (Conditional Uses) of Chapter 18.30(A) (Retail
Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal
Code are amended to read as follows:
The following uses may be conditionally permitted in an R district, subject to the
issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval):
(a) Financial services, except drive-in services, on a ground floor.
(b) All other conditional uses allowed in the underlying commercial district provided
they are not located on a ground floor.
(c) Formula retail businesses on California Avenue.
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(d) Beauty shops, nail salons, and barbershops, fitness or exercise studios exceeding
1,800 square feet in gross floor area; and learning centers intended for individual or small
group settings.
SECTION 9. Section 18.30(C).020 (Permitted Uses) of Chapter 18.30(C) (Ground Floor
(GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code are
amended to read as follows:
(a) The following uses shall be permitted in the GF combining district, subject to
restrictions in Section 18.40.160180:
(1) Eating and drinking;
(2) Hotels;
(3) Personal services, except for parcels with frontage on University Avenue, where
uses defined in Section 18.04.030(114)(B), (G), and (H), and (I) are not permitted;
(4) Retail services;
(5) Theaters;
(6) Travel agencies;
(7) Commercial Recreation up to 5,000 square feet in gross floor area, except for
parcels with frontage on University Avenue;
(78) All other uses permitted in the underlying district, provided such uses are not
on the ground floor.
(b) Elimination or conversion of basement space currently in retail or retail-like use or
related support purposes is prohibited.
(c) Entrance, lobby, or reception areas serving non-ground floor uses may be located
on the ground floor to the extent reasonably necessary, provided they do not interfere with the
gound ground floor use(s), and subject to the approval of the Director.
SECTION 10. Section 18.30(C).030 (Conditional Uses) of Chapter 18.30(C) (Ground
Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code
are amended to read as follows:
(a) The following uses may be conditionally allowed on the ground floor in the GF
ground floor combining district, subject to issuance of a conditional use permit in accord with
Chapter 18.76 (Permits and Approvals) and with the additional finding required by subsection
(b), subject to restrictions in Section 18.40.160:
(1) Business or trade school;
(2) Commercial recreation over 5,000 square feet in gross floor area or with
frontage on University Avenue;
(3) Day care;
(4) Financial services, except drive in services;
(5) General business service;
(6) Learning centers intended for individual or small group settings;
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(7) All other uses conditionally permitted in the applicable underlying district,
provided such uses are not on the ground floor.
(b) The director may grant a conditional use permit under this section only if he or
she makes the following findings in addition to the findings required by Chapter 18.76 (Permits
and Approvals):
(1) The location, access or design of the ground floor space of the existing building
housing the proposed use, creates exceptional or extraordinary circumstances or conditions
applicable to the property involved that do not apply generally to property in the same district.
(2) The proposed use will not be determined to the retail environment or the
pedestrian-oriented design objectives of the GF combining district.
(c) Any use conditionally permitted pursuant to this section shall be effective only
during the existence of the building that created the exceptional circumstance upon which the
finding set forth in subsection (b) was made.
SECTION 11. Any provision of the Palo Alto Municipal Code or appendices thereto
inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no
further, is hereby repealed or modified to that extent necessary to effect the provisions of this
Ordinance.
SECTION 12. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance and each
and every section, subsection, sentence, clause, or phrase not declared invalid or
unconstitutional without regard to whether any portion of the ordinance would be
subsequently declared invalid or unconstitutional.
SECTION 13. The Council finds that the adoption of this ordinance is exempt from the
provisions of the California Environmental Quality Act pursuant to CEQA Guideline sections
15061(b)(3) because it can be seen.
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EXHIBIT A
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SECTION 14. This ordinance shall be effective on the thirty-first date after the date of
its adoption and shall expire upon the earlier of June 30, 2022 or adoption of replacement
legislation by the City Council. Upon expiration of this ordinance, the City Clerk shall direct the
City’s codifier to update the Palo Alto Municipal Code as appropriate.
INTRODUCED: March 8, 2021
PASSED: April 12, 2021
AYES: BURT, DUBOIS, FILSETH, KOU, STONE
NOES: CORMACK, TANAKA
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning & Development
Services
EXHIBIT A
Certificate Of Completion
Envelope Id: 2FFD3DF938C64D8A8AAD4B626E119FA7 Status: Completed
Subject: Please DocuSign: ORD 5517 Ordinance Amending PAMC Title 18 Ch 18.04 Definitions 18.16 Neighborh...
Source Envelope:
Document Pages: 17 Signatures: 5 Envelope Originator:
Certificate Pages: 2 Initials: 0 Danielle Kang
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
Danielle.Kang@cityofpaloalto.org
IP Address: 199.33.32.254
Record Tracking
Status: Original
4/16/2021 4:40:29 PM
Holder: Danielle Kang
Danielle.Kang@cityofpaloalto.org
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
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Signer Events Signature Timestamp
Albert Yang
Albert.Yang@CityofPaloAlto.org
Assistant City Attorney
City of Palo Alto
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Electronic Record and Signature Disclosure:
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Jonathan Lait
Jonathan.Lait@CityofPaloAlto.org
Interim Director Planning and Community
Environment
City of Palo Alto
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Ed Shikada
Ed.Shikada@CityofPaloAlto.org
Ed Shikada, City Manager
City of Palo Alto
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Tom DuBois
tomforcouncil@gmail.com
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EXHIBIT A
Signer Events Signature Timestamp
Beth Minor
beth.minor@cityofpaloalto.org
City Clerk
City of Palo Alto
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Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 4/16/2021 4:45:43 PM
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Signing Complete Security Checked 4/26/2021 10:09:45 AM
Completed Security Checked 4/26/2021 10:09:45 AM
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EXHIBIT A