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Home My WebLink About2024-05-15 Retail Committee Agenda PacketRETAIL COMMITTEE Special Meeting Wednesday, May 15, 2024 Community Meeting Room & Hybrid 9:30 AM Retail Committee 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 m e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o n YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/85845544145) Meeting ID: 858 4554 4145 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 city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@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. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. CALL TO ORDER PUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. ACTION ITEMS 1.Receive and accept report regarding near‐ and medium‐term initiatives that focus on enhancing retail and hotel uses Late Packet Report 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. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, 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. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. 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. 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 Council. 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: 946‐1874‐4621 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. 1 Regular Meeting May 15, 2024 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. RETAIL COMMITTEESpecial MeetingWednesday, May 15, 2024Community Meeting Room & Hybrid9:30 AMRetail Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/85845544145)Meeting ID: 858 4554 4145 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 tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted. Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks, posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not create a facility, fire, or safety hazard; and (3) persons with such items remain seated when displaying them and must not raise the items above shoulder level, obstruct the view or passage of other attendees, or otherwise disturb the business of the meeting. CALL TO ORDER PUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. ACTION ITEMS 1.Receive and accept report regarding near‐ and medium‐term initiatives that focus on enhancing retail and hotel uses Late Packet Report 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. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, 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. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. 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. 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 Council. 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: 946‐1874‐4621 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. 2 Regular Meeting May 15, 2024 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. RETAIL COMMITTEESpecial MeetingWednesday, May 15, 2024Community Meeting Room & Hybrid9:30 AMRetail Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/85845544145)Meeting ID: 858 4554 4145 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 tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@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 strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.CALL TO ORDERPUBLIC COMMENT Members of the public may speak to any item NOT on the agenda. ACTION ITEMS1.Receive and accept report regarding near‐ and medium‐term initiatives that focus onenhancing retail and hotel uses Late Packet ReportFUTURE MEETINGS AND AGENDASMembers 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. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, 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. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. 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. 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 Council. 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: 946‐1874‐4621 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. 3 Regular Meeting May 15, 2024 Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. Retail Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: May 15, 2024 Report #:2405-2982 TITLE Receive and accept report regarding near- and medium-term initiatives that focus on enhancing retail and hotel uses BACKGROUND This report will be a special late packet release on Thursday, May 9, 2024. APPROVED BY: Steve Guagliardo, Assistant to the City Manager Item 1 Item 1 Staff Report Packet Pg. 4 4 6 6 6 Retail Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: May 15, 2024 Report #:2405-3007 TITLE Late Packet: Receive and accept report regarding near- and medium-term initiatives that focus on enhancing retail and hotel uses RECOMMENDATION Recommend that the City Council accept report on near- and medium-term initiatives that focus on enhancing retail and hotel BACKGROUND In Fiscal Year 2022, the City Council directed the hiring of an Economic Development Coordinator to support the City’s economic development function and issuance of an RFP for the creation of a comprehensive economic development strategy1. This position was staffed in Fall 2022 and a consultant (Streetsense) was selected to create the economic development strategy concurrent to that staffing. The City Council unanimously accepted the Comprehensive Economic Development Strategy on August 14, 20232. The City Council approved the report to guide and inform City priorities, initiatives, projects and support outcomes in support of economic vitality. The strategy consisted of three guiding principles, 10 recommendations, and 28 specific actions. Recognizing the resources available, City Council discussed the prioritization of Streetsense’s recommendations and directed staff to return for a discussion of near-and medium-term initiatives that would focus on enhancing retail and hotel uses. This was partially addressed through the development of the 2024 objectives for City Council’s Economic Development and Transition priority, which was unanimously approved by the City Council on March 11, 20243. This report will further address which Streetsense recommendations 1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/citycouncil- agendas-minutes/2021/09-september/20210913/20210913pccsm-amended-linked-finalcouncil-qa.pdf 2https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=13009&compileOutputType =1 3https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=13514&compileOutputType =1 Item 1 Item 1 Late Packet Report Packet Pg. 5 4 6 6 6 and actions are currently being worked on throughout the organization and the anticipated timeline for addressing remaining recommendations and actions. ANALYSIS The Economic Development Strategy report has been used to organize much of the work of the City’s Economic Development function. The report contributed to the development of many of the objectives within the 2024 City Council Priority of Economic Development and Transition (ED&T) and has informed additional work throughout the organization. Table 1 below illustrates the interconnectedness of actions from the Economic Development Strategy with ongoing organizational efforts. For detailed information on each action and its alignment with existing work, please refer to Attachment A of this report. Table 1 illustrates that more than 85% of the actions recommended in the Economic Development Strategy are currently underway either through the objectives within the ED&T workplan or through other work currently underway throughout the organization. Table 1. Number of Economic Development Strategy Actions by Group Group # of Actions A) Economic Development and Transition Priority Workplan 7 B) Other work currently underway throughout the organization 17 C) Not being actively pursued 4 The City continues to scale its economic development and transition efforts, and this report will highlight some of the work underway that most closely aligns with Council’s interest in near- and medium-term initiatives that focus on enhancing retail and hotel uses throughout town. It will examine work underway with the Planning and Transportation Commission (PTC) pertaining to potential zoning changes and work the City is preparing to embark upon regarding hotel stays. PTC Retail Ad Hoc and Commission discussion of Zoning Changes Perhaps most relevant to the discussion of near- and medium-term initiatives that focus on enhancing retail and hotel uses throughout town is the discussion of the City’s regulatory and zoning framework. This year’s ED&T workplan includes the Objective #12: •Conduct business stakeholder outreach and present to Council recommendations for a citywide retail zoning strategy and receive direction for zoning ordinance implementation (k) which aligns with many of the actions in the Streetsense report under guiding principle #3: Item 1 Item 1 Late Packet Report Packet Pg. 6 4 6 6 6 •“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.” The Planning and Development Services Department and Economic Development staff has been working closely with PTC on a report to look at potential options for reforming and refining the City’s regulatory framework. This is the culmination of an effort that began in 2022 with Michael Baker International (MBI) providing consultant support and producing a Palo Alto Retail Study report. This work has been the focus of a retail ad hoc of the PTC that has met multiple times since February 2024. On May 8, 2024 the Planning and Transportation Commission discussed and reviewed MBI’s report and their feedback and recommendations will be brought to the City Council later this year. The PTC retail ad hoc grouped its proposals into categories, which included: •Simplify Rules •Reduce Uncertainty •Relax Restrictions •Beyond zoning These four categories were discussed with the PTC on April 24, 2024. The MBI Retail Study report has seven main groups of strategies which are: 1. Conduct a comprehensive zoning cleanup of a mature, complex code 2. Create streamlined and predictable approval processes 3. Limit the Retail Preservation ordinance 4. Allow non-retail uses on ground floor with limitations 5. Repeal office conversion and construction limitations 6. Relax formula retail 7. Ease the parking regulations Staff will incorporate feedback from PTC’s discussion of this item on May 8, 2024 into a report to the City Council later this year. The full report to the PTC can be found on the Planning and Transportation Commission’s website, specifically the agenda for the May 8, 2024 meeting. Ultimately, the Planning and Transportation Commission serves an advisory role to the City Council. As the City Council discusses this topic, it may choose to segment, phase, or otherwise prioritize the recommendations it wishes to further pursue. The timeline for implementing the recommendations will vary and scale somewhat as some of them may be more straightforward than others. The PTC retail ad hoc has previously discussed the idea of pursuing ‘quick wins’ parallel to some of the longer-term work items. If this frame is supported by the full PTC it will be included when the report is brought to the City Council. Item 1 Item 1 Late Packet Report Packet Pg. 7 4 6 6 6 Work to enhance hotel stays Economic Development staff has had numerous conversations with hoteliers operating in town. While there has been recovery from the historic lows seen during COVID-19, the recovery has slowed somewhat. As noted in the FY 2025 operating budget, the average occupancy rate for the first seven months of FY 2024 was 10.9% higher at 75% than the same period in FY 2023, but the average room rate declined by 6.8% to $238/night. Ass discussed in the Streetsense report, further growth in the City’s hotels occupancy could be achieved if hotels were able to increase weekend stays. The Chamber of Commerce has begun the process of exploring a partnership with the San Mateo County Convention and Visitors Bureau (‘San Francisco Peninsula’) to discuss destination marketing efforts and ways to potentially increase weekend stays. These conversations are in the very early stages and the City will ensure that all hoteliers in town are involved in the conversation as it develops and continues. In addition to the efforts underway by the Chamber of Commerce, the City is also exploring how to scale its resources dedicated to hoteliers in town. The challenges of the hotel industry are somewhat distinct from other sectors and Palo Alto’s hotels are more reliant on business travelers than other jurisdictions., To ensure growth opportunities for hoteliers are addressed, the City will be exploring consultant resources to focus on this topic. The consultant tasks are anticipated to include stakeholder interviews, convening focus groups, researching similar jurisdictions, and developing actionable strategies for the City to implement. Staff will continue to provide updates on this topic as appropriate. FISCAL/RESOURCE IMPACT No additional funding is needed at this time for the actions described in this report. As described, the City Council directed that an Economic Development Coordinator be hired in 2022 to help manage the City’s economic development efforts. Subsequently, the City Council approved the hiring of an administrative assistant (economic development specialist) as part of the FY 2024 budget, which was recently filled. These two positions represent the central staff dedicated to the Economic Development function that work in concert and cooperation with other staff throughout the organization. Economic Development staff coordinates efforts from the Economic Development and Transition Workplan, participates in City initiatives like the Bicycle and Pedestrian Transportation Plan, organizes regular check-ins with the City’s business districts, and partners with stakeholders like the Chamber of Commerce to enhance economic vitality. This staff also provides a high-level of customer support to local businesses, serving as both an initial point of contact and an additional resource for businesses navigating routine city processes and individual one-off issues. Item 1 Item 1 Late Packet Report Packet Pg. 8 4 6 6 6 In addition to these two full-time positions, there are additional project-specific staffing resources to bolster the City’s efforts on parklets and longer-term work on the Downtown University Avenue Streetscape Project as well as the visioning for California Avenue as a car- free street. Those latter two projects will have additional costs that will be refined through their respective processes and discussed as appropriate. Other elements of the City’s Economic Development and Transition efforts may result in changes to revenues, which will be incorporated into future projections and budgets as appropriate. STAKEHOLDER ENGAGEMENT Economic Development staff has met frequently with business stakeholders on the topics described in this report and will continue to do so. Stakeholder engagement takes place through individual conversations, monthly meetings with members of business districts, regular conversations with the Chamber of Commerce, and outreach through various media channels. NEXT STEPS Following discussion of this item with the Retail Committee, it will be agendized for the City Council as appropriate. ENVIRONMENTAL REVIEW Receipt and acceptance of this report is not a project under CEQA. ATTACHMENTS Attachment A: Comprehensive Economic Development Strategy APPROVED BY: Ed Shikada, City Manager Item 1 Item 1 Late Packet Report Packet Pg. 9 ATTACHMENT A – Comprehensive Economic Development Strategy’s Connections to Current City Work Comprehensive Economic Development Strategy and Connections to Current City Work This attachment provides an update on how the 28 actions included in the Comprehensive Economic Development Strategy approved by the City Council on August 14, 2023 are being addressed. Economic Development staff is central to these efforts as well as additional work to support the actions, such as increasing the frequency of communications to our business partners, convening monthly meetings with University Avenue, California Avenue, and midtown merchants, and ensuring that brokers, property owners, and businesses have a central point of contact for navigating both routine City processes as well as unique and one‐off situations. Table 1, below, shows the number of actions in the Economic Development Strategy grouped by their connection to current City work. Table 1. Number of Economic Development Strategy Actions grouped by Connection to Current City Work Connection to Current City Work # of Actions A) Economic Development and Transition Priority Workplan 7 B) Other work currently underway throughout the organization 17 C) Not being actively pursued 4 As discussed in the accompanying staff report, more than 85% of the actions included in the Economic Development Strategy are currently being pursued by the City of Palo Alto. This represents a significant commitment of City resources in pursuit of the Economic Development Strategy and the Economic Development and Transition (ED&T) City Council priority. Table 2, below, presents greater detail of each of the actions included in the Economic Development Strategy. It is organized by each of the three Guiding Principles from the Economic Development Strategy, and then further disaggregated by recommendation and by individual action. The letters in the “Connection to Current City Work” (A,B, and C))column have been used to correspond to the three categorizations listed in Table 1 (above). Table 2. Detail of Comprehensive Economic Development Strategy’s actions and current city work Guiding Principle #1: Reinforce each district’s distinct scale and offerings by stabilizing and reinforcing Downtown as a destination, embracing California Avenue as a community and neighborhood serving place, and supporting existing Neighborhood Centers. Recommendation #1: Upgrade highly used and visible public and private realm spaces to promote district definition and encourage activation. Action Action Text Connection to Current City work 1.1 Redesign university avenue streetscape to provide wider sidewalk space for walking, gathering, and outdoor dining through a construction project to be funded by property owners. A) This is being addressed through an ED&T Priority Objective, specifically: Approve preferred alternative for the University Ave Streetscape Plan in preparation for environmental review and funding options (i) Item 1 Attachment A - Comprehensive Economic Development Strategy Packet Pg. 10 ATTACHMENT A – Comprehensive Economic Development Strategy’s Connections to Current City Work Action Action Text Connection to Current City work 1.2 Continue exploring the car‐free streets initiative for California avenue and Ramona street to optimize a balanced future. A) This is being addressed through two ED&T Priority Objectives: Develop permanent Cal Ave car‐free streetscape design through engagement with Cal Ave merchants and community stakeholders (h); and Initiate preliminary analysis and stakeholder engagement on a car‐free streetscape design for Ramona Street 1.3 Support outdoor dining and gathering options on sidewalks and within on‐street parklets with by‐right allowances within two feet of storefronts and creating a consolidated street activation resource A) This is being partially addressed through two ED&T Priority Objectives: Develop pre‐approved parklet designs with stakeholder outreach, for Council approval; and Implement ongoing parklet program in compliance with adopted parklet standards, leveraging pre‐ approved designs (e) 1.4 Invest in cohesive district branding through wayfinding, signage, public art and gateway features within the district and along the district boundaries to better define and announce the area as a collective destination. For Neighborhood Centers, encourage public art, like murals, and other community centered installations. A) This work is being partially addressed through a few ED&T Priority objectives: Engage Cal Ave merchants on high priority, rapid implementation projects, i.e. barrier replacement, street cleaning, maintenance, access, signage and outdoor dining guidelines; and Develop permanent Cal Ave car‐free streetscape design through engagement with Cal Ave merchants and community stakeholders (h); and Initiate preliminary analysis and stakeholder engagement on a car‐free streetscape design for Ramona Street Recommendation #2: Encourage the creation and support District Management Entities for district promotion, programming, and increased maintenance. Action Action Text Connection to Current City work 2.1 Create a task force to explore successful regional DMEs of various scales and structures to inform an appropriate DME for Downtown Palo Alto, one that enables property and business owners to advocate and act (with resources) on their own behalf A) This work is being partially addressed through an ED&T priority objective: Facilitate the establishment of sustainable business organization in the Cal Ave, DT, and Midtown districts Item 1 Attachment A - Comprehensive Economic Development Strategy Packet Pg. 11 ATTACHMENT A – Comprehensive Economic Development Strategy’s Connections to Current City Work Action Action Text Connection to Current City work 2.2 Formalize a DME like the California Avenue Business Association/Merchants of California Avenue and encourage membership of a California main street program A) This work is being partially addressed through an ED&T priority objective: Facilitate the establishment of sustainable business organization in the Cal Ave, DT, and Midtown districts Recommendation #3: Pursue business retention, development, and attraction initiatives for local and small businesses. Action Action Text Connection to Current City work 3.1 Create a public‐private small and local business incubation and vacant storefront program connecting landlords experiencing vacancy with small and local businesses seeking brick‐and‐ mortar space and local artists to aid in activation A) This is being partially addressed through two ED&T Priority Objectives: Establish regular engagement with retail brokers in the area to create stronger connections and understand how the City may be able to help promote available spaces; and Research and evaluate options for implementing a public‐private small and local business and incubation and vacant storefront program connecting landlords experiencing vacancy with small and local‐businesses that may be seeking brick and mortar spaces 3.2 Consider allocating funds towards a shop local eGift card program to incentivize patronage of local businesses. C) This action is not currently being worked on Recommendation #4: Promote tourism city‐wide to increase longer business “bleisure” travel and grow hotel week occupancy rates with non‐business travel. Action Action Text Connection to Current City work 4.1 Provide Palo Alto Chamber of Commerce the resources to promote tourism city‐wide to accurately highlight and consistently update Palo Alto's destination offerings, hotels, restaurants, events, and ways to get around in an easy‐to‐use online platform and app B) This action is currently underway; staff is aware that the Chamber is actively exploring opportunities to promote tourism city‐wide and the City is working to augment staff resources with consultant support for hoteliers. This is discussed further in the accompanying staff report. Guiding Principle #2: Improve accessibility by embracing walking and biking solutions to /from/within all of the City’s commercial districts and addressing parking policies and systems. Recommendation #5: Fix broken pedestrian and cycling links to increase accessibility to, from, and within commercial districts. Action Action Text Connection to Current City work 5.1 Include more signage, wayfinding, and bicycle lane markings along critical bike routes to aid safe and easy travel to/from shopping districts by biking and walking B) This action will be addressed through the development of the Bicycle and Pedestrian Transportation Plan (BPTP) by the Office of Transportation Item 1 Attachment A - Comprehensive Economic Development Strategy Packet Pg. 12 ATTACHMENT A – Comprehensive Economic Development Strategy’s Connections to Current City Work Action Action Text Connection to Current City work 5.2 Include mid‐block pedestrian crossings and/or raised traffic tables where desired paths lack safe crossings and deemed safe to do so B) This action will be addressed through the development of the Bicycle and Pedestrian Transportation Plan (BPTP) by the Office of Transportation 5.3 Consider removing free rights at major intersections to aid in safe intersections for all modes of transport B) This action will be addressed through the development of the Bicycle and Pedestrian Transportation Plan (BPTP) and the development of a ‘safe systems’ approach by the Office of Transportation Recommendation #6: Invest in first and last mile transportation options that increase equitable access to, from, and within commercial districts. Action Action Text Connection to Current City work 6.1 Incorporate a micro‐mobility (bike and/or scooter share) program that engages all shopping districts and destinations across the City. C) This action is not currently being worked on 6.2 Participate in advanced regional micro‐mobility options C) This action is not currently being worked on 6.3 Incentivize e‐mobility using regional resources C) This action is not currently being worked on 6.4 Support and incentivize on‐demand transit service and ridership through promotional programming within shopping districts. B) Work on this action is partially underway; Palo Alto Link continues to operate as an on‐demand transit service and partners such as the Stanford Research Park are subsidizing trips to Cal. Ave from the SRP Recommendation #7: Reinforce walkability within districts to encourage longer duration of stay and activation. Action Action Text Connection to Current City work 7.1 Select specific public alleyways with high visibility and at least 20 feet in width to improve for increased permeability and place‐ making B) This work is being partially addressed through our Public Art program, which will be proceeding with murals later this fall. Staff will continue to look for opportunities to scale this effort. 7.2 Create a mural competition or program for select side and rear building facades garnering the most visibility from main streets B) This work is being partially addressed through our Public Art program, which will be proceeding with murals later this fall. Staff will continue to look for opportunities to scale this effort. 7.3 Limit new curb cuts and aim to remove overly redundant curb cuts with any future redevelopment along public right of way of neighborhood centers. B) This action will be addressed through the development of the Bicycle and Pedestrian Transportation Plan (BPTP) Item 1 Attachment A - Comprehensive Economic Development Strategy Packet Pg. 13 ATTACHMENT A – Comprehensive Economic Development Strategy’s Connections to Current City Work Recommendation #8: Update and simplify parking policies, systems, and signage to ease navigation and use of parking. Action Action Text Connection to Current City work 8.1 Embrace technology by incorporating digital signage for easier navigation to available parking within and outside of parking areas and tie information into an app‐based parking management system to ease use and parking predictability B) This action is being addressed through the Planning and Transportation Commission’s ad hoc on retail and ongoing work from the Office of Transportation’s Parking division 8.2 Consider a small business employee access program that offers reduced employee parking fees, easily transferable parking permits, and/or incentivized use of transit, micromobility options and carpooling B) Work on this action is underway through the Office of Transportation’s Parking division 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 Action Text Connection to Current City work 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. B) This action is being most directly addressed through the Planning and Transportation Commission’s ad hoc on retail and through an ED&T Priority objective: Conduct business stakeholder outreach and present to Council recommendations for a citywide retail zoning strategy and receive direction for zoning ordinance implementation (k) 9.2 Consider amending section 18.76.2, architectural review, of the municipal code to enable more over‐the‐counter approvals for minor changes B) This action is being most addressed through the Planning and Transportation Commission’s ad hoc on retail and through an ED&T Priority objective: Conduct business stakeholder outreach and present to Council recommendations for a citywide retail zoning strategy and receive direction for zoning ordinance implementation (k) 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 B) This action is being most addressed through the Planning and Transportation Commission’s ad hoc on retail and through an ED&T Priority objective: Conduct business stakeholder outreach and present to Council recommendations for a citywide retail zoning strategy and receive direction for zoning ordinance implementation (k) Item 1 Attachment A - Comprehensive Economic Development Strategy Packet Pg. 14 ATTACHMENT A – Comprehensive Economic Development Strategy’s Connections to Current City Work Action Action Text Connection to Current City work 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 B) This action is being most addressed through the Planning and Transportation Commission’s ad hoc on retail and through an ED&T Priority objective: Conduct business stakeholder outreach and present to Council recommendations for a citywide retail zoning strategy and receive direction for zoning ordinance implementation (k) Recommendation #10: Grow the market by enabling residential development in select areas of Downtown Palo Alto and California Avenue. Action Action Text Connection to Current City work 10.1 Consider increase allowable height and floor area ratio (FAR) to accommodate residential in mixed‐use projects. B) This action is being most addressed through the Planning and Transportation Commission’s ad hoc on retail and through an ED&T Priority objective: Conduct business stakeholder outreach and present to Council recommendations for a citywide retail zoning strategy and receive direction for zoning ordinance implementation (k) 10.2 Allow exclusively residential projects, including the ground floor where currently restricted in the Cal Ave district B) This action is being partially addressed through the Planning and Transportation Commission’s ad hoc on retail and through the Planning and Development Services department’s work to identify potential housing sites 10.3 Prioritize residential development on underutilized property as identified in the 2023‐31 Housing Element. B) This is being addressed through the work of the Planning and Development Services department and partially through an ED&T Priority Objective, specifically: Advance Downtown Parking garage in conjunction with advancement of affordable housing in the Downtown Item 1 Attachment A - Comprehensive Economic Development Strategy Packet Pg. 15