HomeMy WebLinkAboutStaff Report 2510-5390CITY OF PALO ALTO
Retail Committee
Regular Meeting
Thursday, January 22, 2026
9:00 AM
Agenda Item
2.Recommendation to the City Council on a Resolution Amending the El Camino Real Retail
Node Map for Purposes of Palo Alto Municipal Code Section 18.40.180: Retail
Preservation. CEQA Status: Addendum to the Comprehensive Plan Environmental Impact
Report (EIR), adopted November 17, 2023 (SCH #2014052101) Presentation
Retail Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: January 22, 2026
Report #:2510-5390
TITLE
Recommendation to the City Council on a Resolution Amending the El Camino Real Retail Node
Map for Purposes of Palo Alto Municipal Code Section 18.40.180: Retail Preservation. CEQA
Status: Addendum to the Comprehensive Plan Environmental Impact Report (EIR), adopted
November 17, 2023 (SCH #2014052101)
RECOMMENDATION
Recommend to City Council adoption a Resolution (Attachment A) amending the El Camino Real
Retail Node Map for the purposes of Palo Alto Municipal Code Section 18.40.180: Retail
Preservation unanimously recommended for adoption by the Planning and Transportation
Commission.
EXECUTIVE SUMMARY
As directed by City Council on March 3, 2025, the Planning and Transportation Commission
(PTC) discussed the El Camino Real Retail Node Map, including the temporary “interim node”
adopted by City Council with the modifications to the Retail Preservation Ordinance. A revised
map, as unanimously recommended by the PTC, is provided as Exhibit 1 to the Draft Resolution
in Attachment A.
BACKGROUND
The 2023-2031 Housing Element identified the retail preservation ordinance as a potential
constraint to housing development. Housing Element Program 3.4B calls for waivers from and
modifications to these regulations to accommodate more housing density and affordability
while focusing retail development in the most desirable locations in Palo Alto, including retail
node locations along the southern portion of El Camino Real.
December 2024 Planning and Transportation Commission Hearing
On December 17, 2024, the PTC held a public hearing and recommended that the City Council
adopt an ordinance to modify the Housing Incentive Program, Affordable Housing Incentive
Program, and Retail Preservation Ordinance. As part of the motion, the PTC asked for the map
of retail nodes on El Camino Real to return to the PTC in the first quarter of 2025 to consider
additional retail node locations.
March 2025 City Council Hearing
On March 3, 2025, the City Council adopted, on first reading, an ordinance amending the zoning
code to implement programs in the City’s adopted Housing Element that modify the Housing
Incentive Program (HIP), Affordable Housing Incentive Program (AHIP), and Retail Preservation
Ordinance. The City Council motion was as follows:
Reduce complexity of overlapping rules, especially for:
o Parcels with little/no existing retail;
o Housing Element sites eligible for 100% housing, though some Housing Element
sites were included for contiguity of the nodes;
o Parcels zoned Planned Community (PC), where the RPO does not apply; and
o Areas covered by other regulations (Retail Overlay) or recent plans (El Camino
Real Focus Area, North Ventura CAP).
Assess impacts of retail-preservation requirements on future housing feasibility,
particularly on narrow/shallow lots.
Address small-site parking constraints, especially along long segments of El Camino Real
where on-street parking has been replaced by bike lanes.
Consider including student-serving retail areas along the West Charleston/Arastradero
corridor.
1. Central Node: This node is located halfway between California Avenue and the City’s
southern boundary, including properties on both sides of El Camino Real from
Matadero Creek to Los Robles Avenue.
2. Triangle Node: This node includes the properties on the “triangle” between El Camino
Real and El Camino Way, as well as the commercial properties on the other side of El
Camino Way.
3. Bike to School Node: This node incorporates the “Auto Dealerships Node” with
additional adjacent commercial properties, and those on two of the other three corners
of the Charleston Road/Arastradero Road/El Camino Real intersection.
This process and ordinance change is separate and distinct from other retail ordinance work
underway. Specifically, the City Council adopted a 2025 Council priority objective
“consideration of an ordinance that expends retail opportunities and promotes retail
resiliency.” PTC reviewed potential retail approaches on October 31, 2025. Work is underway to
prepare an ordinance for PTC consideration in early 2026 followed by Council review.
ANALYSIS
The El Camino Real Retail Node Map adopted by City Council on March 2, 2025, included an
“interim node” to temporarily preserve retail preservation protections for existing retail on
properties on El Camino Real and El Camino Way between Page Mill Road and the southern City
boundary, plus a small node at the intersection of El Camino Real and California Avenue. As
provided in the Background Section above, the motion on March 2, 2025, to adopt the map also
referred the map to the Planning and Transportation Commission for further discussion and
recommendation to City Council.
Housing Element Program 3.4 specified changes to be made to the City’s Housing Incentive
Program (HIP) and specified that this work should include modifications to the retail
preservation ordinance to reduce the amount of retail replacement except in certain combining
districts and “strategic locations generally depicted in the draft South El Camino Real Design
Guidelines.”
Figure 1: Draft South El Camino Real Design Guidelines Node Map
The PTC recommendation aligns closely to this map, with more detail and specificity, along with
an understanding that California Avenue retail is already protected by the existing Retail (R) and
Pedestrian (P) overlays and therefore does not need a specific node.
As recommended by the Streetsense Economic Development Strategies Report, shared with
City Council on August 14, 2023, the goal is to concentrate ground-floor retail in a few strategic
areas (“nodes”) where foot traffic, transit, and anchor destinations already cluster, so that each
storefront reinforces the next and creates a true “stroll” experience. Reducing and focusing the
areas of stronger retail preservation requirements, allows those properties outside these
nodes, more flexible uses (e.g., services, offices, housing) to right-size supply, reduce vacancies,
and channel investment to the places with the best chance of thriving.
The revised map recommended by the PTC is based on a detailed discussion, as described
above. PTC’s efforts focused on simplifying overlapping retail regulations, aligning retail-
preservation requirements with housing feasibility (especially on narrow/shallow lots),
addressing small-site parking constraints, including along El Camino Real where on-street
spaces were replaced by bike lanes, and evaluating inclusion of student-serving retail corridors
along West Charleston/Arastradero.
POLICY IMPLICATIONS
As part of the implementation of Program 3.2 (Monitor Constraints to Housing) of the Housing
Element, the City committed to prepare an analysis in staff reports for initiatives proposing new
regulations. This analysis details how the regulations may impact housing production, if at all,
and recommend solutions to address any adverse impacts.
The recommended map is the final step in the HIP, AHIP, Retail Preservation update efforts to
implement the following Housing Element programs:
Housing Element Program 3.3A, B, and D to streamline, incentivize, and improve project
feasibility of 100% affordable housing projects.
Housing Element Program 3.4A-D to expand development incentives in the Housing
Incentive Program (HIP) and extend the program to additional zoning districts to
facilitate housing production. Based on quantified objectives in the Housing Element,
this modification is anticipated to generate 550 housing units.
Housing Element Program 6.2A to incentivize larger units and create family-friendly
housing.
FISCAL/RESOURCE IMPACT
described above. Direct fiscal impacts are not anticipated from this action. However, the
actions recommended in this report more effectively concentrate retail into three nodes along
El Camino Real, thereby creating clusters of retail that can provide goods and services to the
surrounding neighborhood. The previous ’interim’ retail node that extended from Page Mill
south along El Camino Real to the City limits would have applied retail preservation
requirements to that entire corridor, which was not consistent with Housing Element Program
3.4C and included areas that were less viable retail locations. This refined map confers greater
flexibility and better balances the potential for residential development with the continued
need for neighborhood-serving retail opportunities. This is anticipated to create a greater
synergy between commercial and potential residential in this corridor, which may positively
impact revenues in Sales Tax and Property Tax categories.
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
*NOT YET APPROVED*
1
0160176_20250820_ay16
Resolution No. ____
Resolution of the Council of the City of Palo Alto Updating
the El Camino Real Retail Node Map
R E C I T A L S
WHEREAS, on April 7, 2025, the City Council adopted Ordinance No. 5650, amending Title
18 of the Palo Alto Municipal Code to implement Programs 3.3 and 3.4 of the 2023-2031 Housing
Element.
WHEREAS, Ordinance No. 5650 revised the City’s retail preservation regulations for
housing projects, and adopted an El Camino Real Retail Node map to define areas where more
specific retail preservation requirements may apply.
WHEREAS, the El Camino Real Retail Node map approved by the City Council on April 7,
2025 included an “interim” node encompassing most of El Camino Real, allowing the Planning
and Transportation Commission to further review and recommend refinements for a final retail
node map; and
WHEREAS, the Planning and Transportation Commission considered map revisions on
March 26, 2025, April 30, 2025, and May 28, 2025 before arriving at a recommendation to the
City Council; and
WHEREAS, the City Council now wishes to update the El Camino Real Retail Node map;
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The El Camino Real Retail Node map shall be updated to reflect the
boundaries shown in Exhibit 1, attached hereto and incorporated herein.
SECTION 2. Upon adoption of this resolution, the City Clerk shall direct that Figure 5 in
Section 18.40.140 of the Palo Alto Municipal Code shall be updated to reflect the new El Camino
Real Retail Node map.
//
//
//
//
//
*NOT YET APPROVED*
2
0160176_20250820_ay16
SECTION 3. In accordance with the California Environmental Quality Act (CEQA), the
City prepared an Addendum to the 2017 Comprehensive Plan Environmental Impact Report (EIR),
analyzing the potential environmental impacts of the 2023-2031 Housing Element. On May 8,
2023, the City Council adopted Resolution No. 10107, and on December 18, 2023, the City Council
approved a Revised Addendum, finding that the Addendum, as revised, and the 2017 EIR
adequately analyzed the environmental impacts of the Housing Element, including the Programs
implemented by this resolution.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
X
X
X
X
Triangle Node
Bike to School Node
StanfordUniversity
Mountain View
Los Altos
Page Mill Road
Charleston Road
Yale Street
Jacaranda
Lane
MackayDrive
Ash Street
El Camino Real
Orme Street
Ramos Way(Private)
Hanover Street
Nevada
Avenue
Columbia Street
Deodar
Street
Redwood Circle
Margarita Avenue
Hansen Way
Portage
Avenue
Lambert Avenue
Paradise Way
Fernando Avenue
Olive Avenue
Cambridge
Avenue Ventura Avenue
Grant
Avenue
Matadero Avenue
Maybell Avenue
Curtner Avenue
Wilton
Avenue
Barron Avenue
SecondStreet
High Street
Oregon Avenue
RickeysWay(Private)
Oregon Expressway
Whitclem Drive
Alger Drive
Marion Avenue
Military
Way
Cowper Street
VillaVera(Private)
Loma Verde Avenue
Bowdoin Street
La Donna Street
Whitsell Street
Glenbrook Drive
FerneCourt
McGregorWay
Lane 66
Laguna Avenue
Stanford Avenue
La Jennifer
Way Amaranta Avenue
JulieCourt
Saint
Claire
Drive
Terman Drive
Gary
Court
Arastradero Road
WrightPlace
PeralLane
Ramona Street
Miller Avenue
El CentroStreet
La Calle
Creekside Drive
Suzanne Drive
Monroe Drive
PenaCourt
El CerritoRoad
Duluth
Circle
South Court
Irven
Court
El Capitan
Place
Silva Avenue
Rincon
Circle
Waverley Street
Nelson
Court
Encina
Grande
Drive
Timlott
Lane
YnigoWay
Laguna
Oaks
Place
Florales Drive
Anton
Court
Ely Place
DartmouthStreet
Los
Palos
Place
Adobe
Place
ScrippsAvenue
WellesleyStreet
Amherst
Way
Park Boulevard
Cesano
Court
Nelson Drive
Josina Avenue
Cypress Lane(Private)
McKellarLane
CarlsonCourt
Ferne Avenue
Campana Drive
ArbolDrive
MumfordPlace
SolanaDrive
Santa Rita Avenue
Washington
Avenue
North California Avenue
DakeAvenue
Bryant StreetEl Dorado Avenue
MackallWay
Alma Street
Wilkie Way
Jacobs
Court
(Private)
Georgia Avenue
Carolina
Lane
Acacia
Avenue
Keats
Court
CassWay
Colorado Avenue
Lundy
Lane
El Verano Avenue
Campesino Avenue
College
Avenue
Drake
Way
Los Robles Avenue
West
Charleston
Road
California Avenue
East Meadow Drive
MagnoliaDrive
OberlinStreet
La SelvaDrive
DixonPlace
Thain
Way
Cornell Street
Princeton Street
Harvard Street
Williams Street
Kipling Street
Verdosa Drive
El Carmelo Avenue
Scripps
Court
Pomona Avenue
OrindaStreet
Shauna
Lane
Emerson Street
Los PalosAvenue
Birch Street
MaybellWay
La MataWay
StauntonCourt
Tennessee
Lane
Ashton
Avenue
Maclane
Duncan Place
CherryOaksPlace
Sheridan
Avenue
Amherst Street
Chestnut
Avenue
El CaminoWay
Tioga
Court
Lindero
Drive
Shasta
Drive
Diablo
Court
Cerrito
Way
Greenmeadow
Way
CarlsonCircle
Maureen
Avenue
Starr King
Circle
West Meadow Drive
Dinah's
Court
Magnolia
Drive
South
Ilima
Court
Cowper
Court
Juniper Lane(Private)
KingArthur'sCourt
BakerAvenue
Silva
Court
Oxford Avenue
AbelAvenue
San Jude
Avenue
Edlee Avenue
Miller
Court
Rinconada Avenue
Pepper
Avenue
Clemo Avenue
James
Road
CoulombeDrive
Manzana Lane
Rambow Drive
Parkside Drive
Fairmede
Avenue
Ilima Way
Kendall Avenue
SaintMichaelDrive
Chimalus Drive
Laguna Way
Hubbartt Drive
Donald Drive
Paul Avenue
Cereza Drive
Roosevelt Circle
La Para Avenue
Roble Ridge (Private)
Willmar Drive
Ben
Lomond
Drive
PC-4637
PF
RM-30
CS CS
R-1
R-1 (10000)
CS (H)
RM-40
PF
RE
PC-2930
RM-15
PC-3023
CS
RM-30
CC(2)(R)
R-2
RM-30
RM-30RM-15
R-2
NV-R4
RM-30
GM
R-2
PF
RM-15
NV-MXH
NV-R3
RE
PF (AS3)
CN
RP (L)
CN
CS (AS1)
RP (L)
R-2
CS
RP (AS2)
RMD
CC (2)(R)(P)
R-2
R-2
R-2
RM-30RM-30
RM-30
CC (2)(R)
CC (2)(R)
CC (2)(R)
PF (R)
PF (R)
PF(R)
PC-4127
RM-30
R-1 PF
RM-15 R-2
RM-15RM-15
RM-30
PF
PF
R-1 (10000)
R-2
RM-15
PF
PC-4268
PC-2224
PC-3028
PC-4354
PC-2293
CC
RM-15
NV-MXLNV-R2
CSPC-4463
PF
RM-40
R-1
RM-15
RM-30
CN
R-1(S)
R-2
R-1 PF
RM-15
RM-30
PF
PF
PC-2666 PC-2666
RM-30
R-1 (10000)
R-1
R-2
R-1
CNRM-15
CC(2)CC(2)
PF
PF
PF
PFPF
PF
RMD (NP)
R-1
RP
PF
PF
PF
RM-15
CS (H)
RM-30
PC-4190PC-3041
PF
RM-30
R-1
RM-30
PC-2218
PC-2656
RM-15
PC-5116
RM-30
RM-15
PC-3133
PC-4511
RM-15
RM-30
R-1 (7000)
PF
RM-30RM-40
R-1 (S)
CS(L)
PC-4448
CS
CS (L)
RM-40
RM-15PC-2744
R-1 (8000)
RM-30PC-5034
R-1
CC (2)(P)
NV-MXM
CS CSCS(AD)
PC-4831
CN
PC-4956
RM-30RM-30
PC-2236
R-1 (7000)
R-2
R-1 (8000)
R-1(8000)
CN (GF/P)
PFPF (D)
R-2
R-1 (10000)
R-1 (8000)
R-1 (7000)(S)
R-1
R-1 (8000)(S)
R-1 (8000)RM-15
RM-15
PC-3036
CS
CS CS
CS (H)
RM-15
PF
RM-15
CN RM-30
R-2
PF
CN
PC-5069
RM-15CS (L)(D)
PTODRM-40
RM-40CC(2)(R)
CC (2)(R)
CC (2)CC (2)
CC (2)
PF
R-1
R-1
PC-4753 NV-R1
NV-MXM
CS
NV-MXH
GM
NV-MXL
NV-PF
Central Node
This map is a product of City of Palo Alto GIS
[
0 480 960240Feet
South El Camino Real Retail Nodes and Zoning
South El Camino Real Retail Nodes
Housing Element Sites
City Limit
Zone Districts
X Transportation Stations
EL CAMINO REAL
RETAIL PRESERVATION NODES
City Council
Retail Committee
January 22, 2026 www.paloalto.gov
1
BACKGROUND: HOUSING ELEMENT PROGRAM 3.4C
“Allow for sites subject to the City’s retail preservation
ordinance – except in the ground floor (GF) and retail (R)
combining districts and strategic locations generally depicted
in the draft South El Camino Real Design Guidelines – to have
a reduction in the amount of retail replacement floor area
needed for redevelopment and waive the retail preservation
requirement for identified housing opportunity sites.”
2
BACKGROUND: COUNCIL DIRECTION
March 3, 2025, Council direction:
Modify the retail node to extend along El Camino Real from Page Mill Road to
the southern City boundary, and refer to the Planning and Transportation
Commission for further discussion and recommendation to City Council.
2
2
BACKGROUND: PTC DELIBERATION & DIRECTION
Planning & Transportation Commission (PTC) met on:
•March 26, 2025; April 30, 2025; and May 28, 2025
Focus of recommendation:
1.Reduce complexity of overlapping rules and locations with no applicability
2.Retail-preservation impacts on future housing feasibility
3.Small-site parking constraints and loss of street parking
4.Retain student-serving retail areas along the West Charleston/Arastradero
corridor
10
RECOMMENDATION
PTC recommends that Council adopt a resolution to modify the
existing Retail Node Map to include only the following:
•Central Node
•Triangle Node
•Bike to School Node
3
3
JENNIFER ARMER
Assistant Director
Planning & Development Services
Jennifer.Armer@PaloAlto.gov