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Home My WebLink About2025-04-16 Retail Committee Agenda PacketRETAIL COMMITTEE Regular Meeting Wednesday, April 16, 2025 Community Meeting Room & Hybrid 9:00 AM Amended Agenda Amended Agenda Items Appear Below in RED (Items Reordered) Retail Committee meetings will be held as “hybrid” meetings with the option to attend by teleconference/video conference or in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/85845544145) Meeting ID: 858 4554 4145 Phone: 1(669)900‐6833 PUBLIC COMMENTS General Public Comment for items not on the agenda will be accepted in person for up to three minutes or an amount of time determined by the Chair. General public comment will be heard for 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. public comments for agendized items will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5 minutes after the staff’s presentation or as determined by the Chair. 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 types 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 in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. ACTION ITEMS 2.Designation of City Council Liaisons with Local Business Stakeholders New Item Added 1.Economic Development Activity Report April 2025, Title Updated, 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 for agendized items 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 for agendized items 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: 858‐4554‐4145 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. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments. 1 Regular Meeting April 16, 2025 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.paloalto.gov/agendas. RETAIL COMMITTEERegular MeetingWednesday, April 16, 2025Community Meeting Room & Hybrid9:00 AMAmended AgendaAmended Agenda Items Appear Below in RED (Items Reordered)Retail Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. The meeting will be broadcast onCable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamedto 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)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.public comments for agendized items will be accepted both in person and via Zoom for up tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item you are referencing in your subject 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 types 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 ORDER PUBLIC COMMENT Members of the public may speak in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of the agenda. ACTION ITEMS 2.Designation of City Council Liaisons with Local Business Stakeholders New Item Added 1.Economic Development Activity Report April 2025, Title Updated, 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 for agendized items 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 for agendized items 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: 858‐4554‐4145 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. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments. 2 Regular Meeting April 16, 2025 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.paloalto.gov/agendas. RETAIL COMMITTEERegular MeetingWednesday, April 16, 2025Community Meeting Room & Hybrid9:00 AMAmended AgendaAmended Agenda Items Appear Below in RED (Items Reordered)Retail Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. The meeting will be broadcast onCable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamedto 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)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.public comments for agendized items will be accepted both in person and via Zoom for up tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item you are referencing in your subject 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 types 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 in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number ofspeakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of theagenda.ACTION ITEMS1.Economic Development Activity Report April 2025, Title Updated, Late Packet Report1.Economic Development Activity Report April 20252.Designation of City Council Liaisons with Local Business Stakeholders New Item AddedFUTURE 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 for agendized items 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 for agendized items 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: 858‐4554‐4145 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. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments. 3 Regular Meeting April 16, 2025 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.paloalto.gov/agendas. RETAIL COMMITTEERegular MeetingWednesday, April 16, 2025Community Meeting Room & Hybrid9:00 AMAmended AgendaAmended Agenda Items Appear Below in RED (Items Reordered)Retail Committee meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. The meeting will be broadcast onCable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamedto 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)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heardfor 30 minutes. Additional public comments, if any, will be heard at the end of the agenda.public comments for agendized items will be accepted both in person and via Zoom for up tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item you are referencing in your subject 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 types 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 in‐person ONLY to any item NOT on the agenda. 1‐3 minutes depending on number ofspeakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end of theagenda.ACTION ITEMS1.Economic Development Activity Report April 2025, Title Updated, Late Packet Report1.Economic Development Activity Report April 20252.Designation of City Council Liaisons with Local Business Stakeholders New Item AddedFUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s)ADJOURNMENTPUBLIC COMMENT INSTRUCTIONSMembers 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 thetable at the entrance to the Council Chambers and deliver it to the Clerk prior todiscussion of the item.3. Spoken public comments for agendized items using a computer or smart phone willbe accepted through the teleconference meeting. To address the Council, click on the linkbelow 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 usingyour 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 inolder browsers including Internet Explorer. Or download the Zoom application ontoyour smart phone from the Apple App Store or Google Play Store and enter in theMeeting ID below.You may be asked to enter an email address and name. We request that youidentify yourself by name as this will be visible online and will be used to notify youthat it is your turn to speak.When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk willactivate and unmute speakers in turn. Speakers will be notified shortly before theyare called to speak.When called, please limit your remarks to the time limit allotted. A timer will beshown on the computer to help keep track of your comments.4. Spoken public comments for agendized items using a phone use the telephone numberlisted below. When you wish to speak on an agenda item hit *9 on your phone so weknow that you wish to speak. You will be asked to provide your first and last name beforeaddressing the Council. You will be advised how long you have to speak. When calledplease limit your remarks to the agenda item and time limit allotted.CLICK HERE TO JOIN Meeting ID: 858‐4554‐4145 Phone: 1‐669‐900‐6833Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its publicprograms, services and meetings in a manner that is readily accessible to all. Persons withdisabilities 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. California Government Code §84308, commonly referred to as the "Levine Act," prohibits an elected official of a local government agency from participating in a proceeding involving a license, permit, or other entitlement for use if the official received a campaign contribution exceeding $500 from a party or participant, including their agents, to the proceeding within the last 12 months. A “license, permit, or other entitlement for use” includes most land use and planning approvals and the approval of contracts that are not subject to lowest responsible bid procedures and have a value over $50,000. A “party” is a person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. A “participant” is a person who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the definition of “financial interest” in the Political Reform Act, which encompasses interests in business entities, real property, sources of income, sources of gifts, and personal finances that may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a proceeding, and you have made a campaign contribution to a Council Member exceeding $500 made within the last 12 months, you must disclose the campaign contribution before making your comments. 4 Regular Meeting April 16, 2025 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.paloalto.gov/agendas. Retail Committee Staff Report Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: April 16, 2025 Report #:2504-4476 TITLE Economic Development Activity Report This report will be a late packet report published on April 10, 2025. Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 1 Packet Pg. 5 of 14 Retail Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: April 16, 2025 Report #:2503-4440 TITLE Economic Development Activity Report April 2025 RECOMMENDATION Staff recommends that the Retail Committee receive this Economic Development Activity Report for the month of April 2025. EXECUTIVE SUMMARY This April 2025 Economic Development Activity report presents information on the City’s retail landscape from CoStar and retail businesses reporting. Please note that this is an abbreviated report given limited staff availability. BACKGROUND The Palo Alto City Council approved Palo Alto’s comprehensive Economic Development Strategy in August 2023. The full strategy is available on the City’s business website1. As part of its 2025 priority setting process, the City Council once again selected Economic Development, updating the focus by removing “Transition” and adding “Retail Vibrancy”. In March 2025, the City Council discussed the workplan for this priority which consisted of thirteen objectives2. These objectives were informed by the Economic Development Strategy and other community needs, and pending formal approval scheduled in May 2025, serve as the focus of the City’s economic development work for 2025. To help advance the City’s Economic development strategy and objectives, the City Council created the Retail Ad Hoc committee, which first convened at the end of 2023. The committee since became a brown-acted Ad Hoc and began convening its meetings in public subject to the 1 Economic Development Strategy: https://www.cityofpaloalto.org/Business/Comprehensive-Economic- Development-Strategy 2 2025 City Council Priorities and Objectives: https://cityofpaloalto.primegov.com/Portal/viewer?id=0&type=7&uid=c975a9ba-6051-49f1-8c02-cf12a9afc87b Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 1 Packet Pg. 6 of 14 brown act beginning in March 2024. During the 2025 Council Retreat Council proposed to continue the Ad Hoc Retail Committees on a bi-monthly basis and are expected to continue in even months during 2025 (April, June, August, October, etc.). ANALYSIS This section of the report provides an update on the Costar data for Downtown University Ave and California Ave, and retail business reporting. Costar Information CoStar is the largest source of real estate information; the City has been able to generate some high-level information regarding the current retail conditions in the University Ave Downtown and California Avenue business districts. The information presented below looks at highs and lows over the past ten years, but it is important to note, none of the figures are inflation adjusted. Nonetheless, this does provide information that can be used for future benchmarking and comparisons. This data is being provided as a starting point and another metric to keep the committee up to date; prospectively staff will seek to build these metrics out further to the extent helpful in supporting committee deliberations. University Avenue Business District To generate this data, a map was created in CoStar bounded by Lytton on the North, Forest on the South, Alma on the West and Cowper on the east. This geographic area represents a significant portion of the retail core for the Downtown University business district but intentionally excludes the Stanford Shopping Center. The map is shown here as Figure 1. The current retail vacancy rate is 12.4% for Q1 of 2025, down from 17.4% a year ago. As shown in Figure 2, the highest retail vacancy rate downtown was 17.4% in Q1 of 2024. Vacancy in Q4 of 2015 was 0.7%, representing the lowest vacancy rate seen in the last ten years. CoStar defines retail or retail property as “primary intended use is to promote, distribute or sell products and services to the general public3”. Approximately 97,000 3 Costar Glossary: https://www.costar.com/about/costar-glossary#go_r:~:text=a%20specified%20level.- ,Retail%20Property,-A%20Retail%20property%27s Figure 1. Map of University Avenue Business District Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 2 Packet Pg. 7 of 14 square feet of retail is available for lease or sale in the University Avenue business district, a decrease of 27,000 square feet from 124,000 in Q1 of 2024 as the high. Figure 2. Ten-Year Trend in Retail Vacancy Rates in Downtown University Ave (2015-2025) Net absorption is a figure that represents the square footage that has become available (increase in vacancy or new construction) offset by the square footage that has become occupied (decrease in vacancy) within the last 12 months. A negative net absorption figure means that more space has become available over the term than has become occupied. The most recent figure is 27,000 square feet of net absorption, which compares to lows of negative 59,000 square feet in Q1 of 2024. California Avenue Business District To generate this data, a map was created in CoStar bounded by College Ave on the North, Oregon Expressway on the South, Park Boulevard on the East, and El Camino Real on the West. The map of this shown below as figure 3. The current retail vacancy rate within the bounded area is 5.3%, lower than the 9.2% rate in Q1 of 2024 but higher than the near complete occupancy in Q4 of 2016. Approximately 18,000 square feet of retail is available within the bounded area, a decrease from 2024 Q1’s of approximately 25,000 square feet. In 2014 and 2015, there were periods where there was very little retail space vacant within the bounded area.Figure 3. Map of California Avenue Business District Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 3 Packet Pg. 8 of 14 The net absorption figure for the past 12 months for the bounded region is approximately 6,000 square feet. This is low of highs of 18,000 square feet in Q1 of 2021. Figure 4. Ten-Year Trend in Retail Vacancy Rates in California Ave (2015-2025) Engaging with New Retail Businesses Attachment A to this report provides some information about the issued Certificate of Use and Occupancy permits and how it is used as well as a list of all applications for Certificates of Use and Occupancy that indicated a ‘retail’ business type as defined in PAMC 18.04.030(a)(125.1)4. Based on this report, staff is now tracking and engaging on proposed new businesses, such as Woof Gang Bakery, Gregory Coffee, and Molly Tea. Work is also underway for Tasty Pot at 443 Emerson, the former site of Jing Jing Chinese Gourmet. Through a separate report, staff are also able to track all businesses that apply for a Certificate of Use and Occupancy permit. This report allows Economic Development staff to connect with businesses before going through the process. 2025 City Council Priorities The City Council reviewed the 2025 priority objectives in March and are expected to review and adopt the final list in May. For Economic Development there are 12 priority objectives, of which seven will need additional funding to implement. Below is the list of objectives and a brief status of the activities underway, as a reminder, priorities with “$” signify additional funding necessary to complete the objective: 4 PAMC 18.04.030(a)(125.1): https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0- 76379#:~:text=%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0%C2%A0(125.1)%C2%A0%C2%A0%C2%A0%E2%80%9C- ,Retail%2Dlike%20use,-%E2%80%9D%20means%20a%20use Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 4 Packet Pg. 9 of 14 •Council approval of outdoor activation guidelines for California Avenue – outdoor activation guidelines are under development with business stakeholder engagement scheduled in April/May with City Council/Committee review scheduled for June 2025 through the summer. The intention behind these schedules is to support an implementation timeline in preparation of the winter season. •Resume work on new parking garage structure in Downtown core – On April 14, 2025, the City Council will consider direction on a preferred option for a new parking structure in the downtown. With this direction, the Council would provide staff direction to continue next steps, preliminary design and environmental review for the garage. •Complete build-out of fiber-to-the premises pilot Phase 1 with grid modernization – Staff continue capital investment in key infrastructure such as the building of the fiber hut; in parallel, staff have developed initial rate structures for the internet service provider services and scheduled reviews with the Utilities Advisory Commission, Finance Committee and City Council beginning this month through June. •Council consideration of an ordinance that expands retail opportunities and promotes retail resiliency- This item is anticipated for Q4. Staff is working with a consultant on the zoning ordinance update. Although outcomes have not been predetermined, there will ultimately be recommendations related to comparing each use classification with its definition, refining each definition where needed, and suggesting changes to permit levels (i.e., permitted vs. conditionally permitted). •Council consideration of an ordinance restoring subjective wireless communication facility regulations – This item was pulled from the City Council agenda and is tentatively scheduled to be heard by the end of June 2025, pending agenda scheduling. •Enhance partnerships with private-sector stakeholders: Staff continue meetings with business districts with meetings expected to occur in both Cal Ave and Downtown districts in April and May. •Council approval of funding to continue Downtown cleanliness enhancements and other medium-term investments ($) – Council approved additional funding for the current fiscal year as part of the FY 2025 Mid-Year Budget review. As part of the FY 2026 budget development, the Finance Committee and Council will have an opportunity to consider ongoing funding proposals addressing enhanced cleaning. •Council approval of Ramona Street design and funding appropriations ($) – A consultant contract for near-term street improvements and outdoor activation standards was approved in December 2024 and work is underway. Council consideration of the standards and streetscape improvements is anticipated in summer 2025. Funding for implementation of the streetscape improvements is included in the proposed CIP budget; completion is targeted for December 2025, contingent on Council approval of the funding. Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 5 Packet Pg. 10 of 14 •Council approval of a design option for Cal Ave ($) – Staff are in the process of finalizing design alternatives and engaging with the business and community on these alternatives prior to bringing them forward to the Retail Committee for review. Significant financial investment will be necessary for a new design, and financial support and feasibility will be an important variable for consideration. •Begin feasibility analysis of Assessment District for University Ave streetscape ($) – Staff are in the process of a solicitation for a service provider to complete this assessment. In parallel to this, staff plan to seek feedback from the business community on the support for such an organization and the improvements to determine if there is sufficient support to continue these efforts. New budget allocation for the contract to determine feasibility will be needed. •Propose and implement outdoor activation guidelines for car-free Ramona St. ($) – outdoor activation guidelines are under development with business stakeholder engagement scheduled in April/May with Committee/City Council review scheduled for June 2025 through the summer. The intention behind these schedules is to support an implementation timeline in preparation of the winter season. •Refine destination marketing efforts and enhance Palo Alto’s reputation ($) – The City with the support of Good City Company and in partnership with the Chamber of Commerce is meeting with hotels to assess desire for establishing organized destination marketing efforts. FISCAL/RESOURCE IMPACT No additional funding is needed at this time for the information provided in this report. The City’s Economic Development and Retail Vibrancy efforts may result in changes to revenues, which will be incorporated into future projections and budgets as appropriate. STAKEHOLDER ENGAGEMENT Stakeholder engagement is a critical component of the City’s economic development function. Economic Development staff continues to meet frequently with business stakeholders through individual conversations, meetings with business districts, regular communication with the Chamber of Commerce and through various other communication channels. ENVIRONMENTAL REVIEW Receipt and acceptance of this report is not a project under CEQA. ATTACHMENTS Attachment A: Permits (Retail) by Type APPROVED BY: Ed Shikada, City Manager Item 1 Item 1 Late Packet Report Item 1: Staff Report Pg. 6 Packet Pg. 11 of 14 Retail Building Permits By Type: October 2024 - March 2025 Retail Permit by Type Description Permit No Date Issued Address Record Status Tenant Name Proposed Use Category Proposed Use Classification Use and Occupancy 24BLD-02750 10/07/2024 3990 EL CAMINO REAL, STE# C Finaled ZOMBIE RUNNER COFFEE Retail Eating and drinking service Commercial Remodel/Repair 24BLD-00554 10/17/2024 322 UNIVERSITY AV Permit Issued NICK THE GREEK Retail Eating and drinking service Commercial Addition & Remodel 24BLD-01943 10/21/2024 180 EL CAMINO REAL, STE# F199 Permit Issued ANTON SV PATISSERIE #F199A Retail Shopping center Use and Occupancy 24BLD-02857 10/22/2024 420 EMERSON ST Permit Issued EVVIA ESTIATORIO Retail Eating and drinking service Commercial Remodel/Repair 24BLD-00883 10/24/2024 180 EL CAMINO REAL, SPACE# EE Permit Issued SIMON PROPERTIES GROUP Retail Shopping center Commercial Remodel/Repair 24BLD-01211 10/29/2024 180 EL CAMINO REAL, STE# D79 Permit Issued GREGORY COFFEE #D79 Retail Shopping center Commercial Remodel/Repair 24BLD-01280 11/01/2024 180 EL CAMINO REAL, STE# EE 1400 Permit Issued ZAYTINYA Retail Eating and drinking service Commercial Remodel/Repair 24BLD-01620 11/12/2024 435 EMERSON ST Finaled CAFE STELLATO Retail Retail service Commercial Remodel/Repair 24BLD-02387 11/12/2024 281 UNIVERSITY AV Finaled MINISO Retail Retail service Commercial Addition & Remodel 24BLD-02696 11/26/2024 855 EL CAMINO REAL, STE# 13B Finaled EVERYTHING BUT WATER Retail Shopping center Commercial Remodel/Repair 23BLD-00451 12/05/2024 180 EL CAMINO REAL, STE# 110 Permit Issued STANFORD Retail Shopping center Commercial Remodel/Repair 24BLD-01803 12/16/2024 443 EMERSON ST Permit Issued TASTY POT RESTAURANT Retail Eating and drinking service Commercial Remodel/Repair 25BLD-00011 01/13/2025 855 EL CAMINO REAL, STE# 158 Finaled SUSHI HOUSE Retail Eating and drinking service Commercial Addition & Remodel 24BLD-03224 01/23/2025 855 EL CAMINO REAL, STE# 157 Permit Issued ROOST AND ROAST Retail Shopping center Commercial Remodel/Repair 24BLD-03446 03/24/2025 201 HAMILTON AV 209 Permit Issued Scher Holdings LLC Retail Retail service Use and Occupancy 25BLD-00736 03/26/2025 855 EL CAMINO REAL, STE# 103 Permit Issued Wilby Optical Retail Shopping center Commercial Remodel/Repair 25BLD-00085 03/31/2025 855 EL CAMINO REAL, STE# 98 Permit Issued FRAMEBRIDGE Retail Shopping center Item 1 Attachment A - Permits (Retail) By Type Item 1: Staff Report Pg. 7 Packet Pg. 12 of 14 Retail Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: April 16, 2025 Report #:2504-4494 TITLE Designation of City Council Liaisons with Local Business Stakeholders RECOMMENDATION Staff recommends the Retail Committee discuss potential designation of City Council liaisons with local business stakeholders and make recommendations to the City Council as appropriate. BACKGROUND The City Council established Economic Development and Retail Vibrancy as a 2025 priority. A related objective initially proposed by staff was “enhance partnerships with private-sector stakeholders”. This was proposed to succeed the 2024 objective to “Facilitate the establishment of sustainable business organization in the Cal Ave, DT, and Midtown district.” At its initial discussion of priority objectives, City Council members suggested eliminating the proposed objective as routine and not reflecting a specific action. This report expands on the issue of City Council involvement with local business stakeholders and seeks Retail Committee feedback. In addition, the Retail Committee, established in 2024 and continued in 2025, is a Council ad hoc committee that follows the California Brown Act procedures. The Committee provides a regular forum for business and community stakeholders to engage with Council members on implementation of the City’s economic development strategy. The Retail Committee makes recommendations to the City Council on economic development and retail vibrancy efforts, such as additional business support, proposed University and California Avenue improvements, and citywide retail zoning code changes. Retail Committee members and other City Council members have expressed interest in attending business district stakeholder meetings organized by staff. In order to maintain consistency with the Brown Act requirements, should a quorum of Retail Committee members or other City Council members participate in such meetings, public meeting noticing and format requirements can be triggered. To avoid formalizing such meetings, no more than one Retail Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 1 Packet Pg. 13 of 14 Committee member can participate, while other City Council members (non Retail Committee members) may observe the meeting without participating. ANALYSIS In the work to support economic development and business engagement activities, staff (with some City Council involvement) have organized or participated in meetings with various business groups, such as: •Palo Alto Chamber of Commerce •University Avenue/Downtown •California Avenue •Midtown •Hoteliers In 2025, the Mayor has assigned the Retail Committee Chair as City Council liaison to the Chamber of Commerce. Staff and economic development specialists believe that establishing ongoing relationships with business stakeholders is an important dimension of sustainable economic development. This builds mutual understanding of stakeholder priorities and enables communication beyond specific issues and personal relationships. To the extent that the City’s long term interest continues to be reestablishment of sustainable business organizations capable of participating in the management of public spaces, building trust and shared progress is advanced through ongoing City Council participation. This agenda item provides an opportunity for the Retail Committee to discuss how it wishes to organize City Council involvement with these stakeholders. As a starting point, staff recommends discussion of designating one Retail Committee member as liaison to each of the stakeholder groups listed above. FISCAL/RESOURCE IMPACT This item has been prepared with existing staff resources. STAKEHOLDER ENGAGEMENT The Committee discussion will assist in productive and engaging with the business community outside of the Retail Committee, ensuring continuity of perspectives and feedback on the important economic development activities in the City. ENVIRONMENTAL REVIEW This is not a project under CEQA because it is a continuing administrative activity under CEQA regulation 15378(b)(2). APPROVED BY: Ed Shikada, City Manager Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 2 Packet Pg. 14 of 14