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Home My WebLink AboutStaff Report 2603-6113CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, May 18, 2026 Council Chambers & Hybrid 5:30 PM Agenda Item 15.FIRST READING: Adoption of an Ordinance to Amend Various Sections of Title 16 (Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Retail Vitality Policies in the Comprehensive Plan, including changes to the Zoning Map for parcels zoned CN(GF). CEQA Status: The Ordinance is Consistent with and Represents Implementation of Adopted Policies in the Comprehensive Plan, for Which an Environmental Impact Report (Comprehensive Plan EIR) was Certified on February 5, 2016. Public Comment, Staff Presentation 9 5 9 1 CITY COUNCIL Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Planning and Development Services Meeting Date: May 18, 2026 Report #: 2603-6113 TITLE FIRST READING: Adoption of an Ordinance to Amend Various Sections of Title 16 (Building Regulations) and Title 18 (Zoning) of the Palo Alto Municipal Code to Implement Retail Vitality Policies in the Comprehensive Plan, including changes to the Zoning Map for parcels zoned CN(GF). CEQA Status: The Ordinance is Consistent with and Represents Implementation of Adopted Policies in the Comprehensive Plan, for Which an Environmental Impact Report (Comprehensive Plan EIR) was Certified on February 5, 2016. RECOMMENDATION Staff recommends that the City Council adopt an ordinance to amend various sections of Titles 16 and 18 of the Palo Alto Municipal Code (PAMC) (Attachment A) to implement retail vitality measures related to Comprehensive Plan policies and the City Council's 2025 Enhance Business Vibrancy Priority. EXECUTIVE SUMMARY The draft ordinance in Attachment A builds on retail conditions and strategies considered in 2023 and 2024, and an interim retail ordinance adopted in December 2024. Approval of this updated ordinance is intended to: Codify interim ordinance provisions; Address other topics raised by the City Council in November 2024 while considering the interim ordinance (such as expanding retail-like and office uses, and considering amendments to the retail preservation ordinance); Allow a broader range of retail and other commercial uses; Reduce confusion from overlapping/conflicting regulations; Rename the Conditional Use Permit to Administrative Use Permit to better reflect the current permit process; Add standard conditions for specific uses and remove overly subjective findings; Streamline parking requirements and permit approvals; 9 5 9 1 Reduce ground-floor vacancies; and Encourage vibrancy in the City’s commercial areas; including Downtown and California Avenue. Amendments to the zoning code are shown as underlined/strikeout in Attachment A. Annotations in the margin guide the reader to the rationale behind substantive changes. The analysis section summarizes key topics addressed in the draft ordinance. BACKGROUND The current ordinance is the culmination of multiple sequential efforts. Previous Work Effort In 2023 and 2024, the City engaged commercial retail consultants to analyze the retail market and develop a retail zoning strategy. Streetsense prepared a comprehensive economic development strategy report in June 2023. Subsequently, Michael Baker International conducted local outreach, review of peer city initiatives and other policies to identify land use regulations that would support a more robust retail environment. This work effort culminated in a retail revitalization study in May 2024 and series of zoning amendment options in August 2024. On September 18, 2024,1 the City Council Retail Committee reviewed the final retail revitalization study and provided direction to staff on several zoning amendments that should be implemented immediately to support retail and retail-like uses in the City. Recommendations included ways to streamline retail zoning regulations, increase flexibility in permitted land uses, and update parking policies to meet current needs. Although the PTC had held six hearings on the Retail Study (in addition to four meetings of the PTC retail ad hoc committee), the PTC had not yet considered or recommended specific zoning amendments. In the interest of time, the City Council therefore adopted an interim ordinance to adopt the following amendments identified by the City Council Retail Committee: Modifying the formula retail definition to allow for larger enterprises; Increasing flexibility for “retail-like” uses and expanding permissible uses for ground floor spaces, including personal services, allowances for pet grooming, financial institutions, and automobile showrooms; and Replacing the high threshold required for waivers and adjustments to meeting use regulations. 1 City Council Retail Committee September 18, 2024 agenda: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14946; staff report and attachments: https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=5833&meetingTemplateType=2&comp iledMeetingDocumentId=11747 9 5 9 1 These amendments were adopted on November 18, 2024 (first reading) and December 16, 2024 (second reading),3 and will remain effective until December 31, 2026, or upon adoption of a replacement ordinance. Current Work Effort Pedestrian-Orientation: Continue to refine the definition of retail-like land uses to establish a performance-based criteria that promotes pedestrian activity in commercial areas (e.g., for medical office uses such as ophthalmologists that have a glasses sales component); Expanded Uses: Expand the range of permitted uses allowable in the Ground Floor (GF) and Retail (R) combining districts, and include standards to allow non-retail like uses in certain circumstances; Retail Preservation Ordinance: Review and recommend whether to amend retail preservation ordinance and evaluate changes to the geographic extent or applicability; Allowed Office Uses in Rear: Consider allowing office or other uses in the rear portion of deep commercial suites, or locations that are accessed off of side streets or alleys; Planned Communities: Allow Director authority to interpret list of allowed uses in commercial Planned Community zones that allow "retail" to allow some of these "retail- like" uses; and Pet-Related Uses: Consider where pet grooming, cat cafes, and pet stores should be allowed, and whether any of these uses are considered overnight "boarding" and therefore only allowed in a few zones. 3 City Council December 16, 2024 agenda: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=14537; staff report and attachments: https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=6659&meetingTemplateType=2&comp iledMeetingDocumentId=12596 9 5 9 1 PTC & Council Retail Committee Review On October 29, 2025, the PTC held a Study Session to review options and recommendations for a permanent retail ordinance and to provide feedback to staff on preparing a permanent ordinance to replace the interim ordinance. On January 22, 2026, the Council Retail Committee—composed of Keith Reckdahl, Pat Burt, and Julie Lythcott-Haims)—held a Study Session to review recommendations for a permanent ordinance, including the PTC’s feedback. The Retail Committee supported many of the recommendations put forward by City staff and supported by the PTC and had the following additional comments: Consider allowing bars (without food), but with limitations or conditions, and an entertainment zone on California Avenue. Enforce transparency and other design standards to ensure that all ground-floor uses are activated, including medical offices or personal services uses. Add ground-floor flexibility by allowing offices in certain locations if they are neighborhood-serving. Consider more blended parking rates. Avoid merging of retail and retail-like use categories. Limit changes to the Retail Preservation regulations to potential exemptions for multifamily residential and office/manufacturing zones. Staff and consultants addressed these comments and integrated these ideas into the draft ordinance in Attachment A. On March 25, 2026, the PTC considered a draft retail vibrancy ordinance, and recommended unanimously that the City Council adopt the ordinance. A summary of the discussion, areas of concern, and topics deferred to the City Council are as follows. The PTC was generally supportive of the draft regulations including expanded uses, such as bars; and permit streamlining, such as allowing certain uses by right and replacing subjective findings with objective regulations and standard conditions. The PTC discussed at length the ways that medical office, including hybrid medical/retail/personal service uses, could be regulated on University and California Avenues. The PTC ultimately deferred to the City Council to make this determination, asking the Council to clarify which types of medical office uses are appropriate on these key retail corridors. See Analysis section below for further details. The PTC suggested modifications that could be addressed by the staff in the revision of the ordinance prepared for the City Council, herein, regarding topics such as parking, fees, PC zones, and retail preservation regulations. These comments, staff responses, and changes to the draft ordinance in response to these comments are summarized in Attachment F. 9 5 9 1 ANALYSIS The draft ordinance, including amendments to the zoning code shown as underlined/strikeout is provided as Attachment A. A summary of the draft ordinance is provided in Attachment B. The discussion below analyzes the key themes addressed in the ordinance. The draft ordinance modifies how eating and drinking uses are regulated to reflect contemporary uses, expand potential revenue sources, and streamline review and approvals. Currently, the Zoning Ordinance includes one explicit eating and drinking classification. In practice, staff interpret food service uses with limited seating (e.g., ice cream shop) as “intensive retail service.” Because this is not an intuitive use classification for potential retailers, it results in confusion and uncertainty. However, this use classification allows for a lower and more appropriate parking ratio compared to the eating and drinking service classification that regulates restaurants with seating and full kitchens. Additionally, the current Zoning Ordinance does not contemplate stand-alone bars—such uses must include food service that generates at least 50% of its sales. The draft ordinance creates three use classifications to reflect the different levels of potential impact of each use and a parking standard that better aligns supply and demand. Table 1 summarizes the three definitions. To address potential noise and other impacts associated with the new bar use classification (or other uses with alcohol sales or service), the draft ordinance expands operational conditional regulations and requires a CUP to regulate hours and other site-specific conditions. Table 1: Proposed Eating and Drinking Use Classifications Use Classification Description Examples Locations Eating and drinking, full service Refine existing definition to capture restaurants with table service and seating. Sit-down restaurant All commercial districts Eating and drinking, limited service Create new definition to capture quick service food that's ready to eat within 15 minutes. Currently, such uses are interpreted as “intensive retail service” which is not an intuitive use classification for potential retailers. Deli, coffee shop, ice cream shop, fast casual salads All commercial districts Bars Create new definition to capture bars with no or limited food service Wine bar, cocktail bar, beer garden CD(C), CC, CC(2), CS, -R, -GF, NV-MXH 9 5 9 1 The draft ordinance also removes “take out” as a separate use classification acknowledging that most eating and drinking uses include take out. Medical Offices and Medical-Related Personal and Retail Services Table 2: Ground-Floor Medical Office Permitted Uses, by District (Current Zoning Regulations) Zoning District/Location <5,000 sq. ft.5,000+ sq. ft. Legend: P = Permitted; CUP = Conditional Use Permit; X = Not Permitted * Midtown has conflicting regulations. While the CN regulations allow medical office with a CUP up to 2,500 sq. ft., the applicable -GF regulations prohibit medical office uses in Midtown. 5 or personal services.6 However, 5 PAMC 18.04.030(95): “Medical office” means a use providing consultation, diagnosis, therapeutic, preventive, or corrective personal treatment services by doctors, dentists, medical and dental laboratories, and similar practitioners of medical and healing arts for humans, licensed for such practice by the state of California. Incidental medical and/or dental research within the office is considered part of the office use, where it supports the on-site patient services... 6 PAMC 18.04.030(114) “Personal service” means a use providing services of a personal convenience nature, and cleaning, repair or sales incidental thereto, including: 9 5 9 1 (H) Fitness and exercise studios, or similar uses, in a space having 5,000 square feet or fewer of gross floor area (see “commercial recreation” for uses exceeding 5,000 square feet). 9 5 9 1 generally, most of these uses are likely to fall under the category of “medical office” if they require a license by the State. Table 3: Options for Regulating Medical Office Uses, Benefits and Drawbacks Potential Regulation Benefit Drawback In Draft Ordinance? Streamlines review and approval May lead to less desirable uses that could detract from retail vibrancy Provides opportunity to apply specific conditions (e.g., design, hours) Adds time for tenants and staff resources Creates more clarity in the code May quickly become out of date as new uses and unanticipated uses arise Prevents one use from overtaking a location Requires staff resources to track Creates uncertainty for retailers 9 5 9 1 Potential Regulation Benefit Drawback In Draft Ordinance? Regulate design.Ensures that tenant space looks like retail (e.g., require customer- facing counter or retail facing street; waiting areas and treatment areas in rear) May require monitoring/code enforcement Yes Require retail sales component. Creates visual interest and revenue generation Attracts potential walk- in customers May generate token retail uses May require monitoring/code enforcement Yes, when fronting University and California Avenues Require personal services component. Allows flexibility to expand medical office to more hybrid use types (e.g., body scans) May lead to less desirable uses that could detract from retail vibrancy No Expanding Permitted Uses The draft ordinance expands permitted and conditionally permitted uses across commercial districts to reduce vacancies, improve retail vitality, and increase revenue generation. Specifically, this includes the following changes to the draft ordinance: Neighborhood-Serving Offices. Allow neighborhood-serving offices9 in Downtown and the California Avenue areas, but only fronting side streets or in the rear of retail spaces. Offices would not be permitted within the first 40 to 50 feet of the building frontage on California and University Avenues, respectively. Allowing non-retail uses in the rear of buildings and on side and parallel streets adds flexibility in the broader commercial districts and could help reduce vacancies in larger tenant spaces, older buildings, and historic buildings. The public comment in Attachment E highlights how historic buildings Downtown with unique architectural features that provide identity to Palo Alto are not always conducive to 100% ground-floor retail. At the 9 PAMC 18.14.040(e) "Neighborhood-serving offices" are medical offices, professional offices, travel agencies, and insurance agencies that fit the definition of a neighborhood-serving use. 9 5 9 1 same time, this provision aims to narrow office prohibitions to focus on California and University Avenues only where retail and retail-like uses are preferred. Similar impacts on the neighborhood such as traffic generation, deliveries, noise, and lighting as listed uses; and Similar characteristics such as building type, site arrangement, floor area, number of employees, indoor and/or outdoor uses, customer traffic, equipment use, hours of operation, parking, vehicle trips and signage as listed uses. Streamline Use Regulations (Example: Midtown and Charleston Shopping Centers) 9 5 9 1 The draft ordinance proposes to remove the GF combining district and use the base district use regulations for the CN district (Table 1 in Chapter 18.16) to regulate these neighborhood shopping centers. The addition of footnotes allows for modified standards specific to these locations. Administrative Use Permits (AUP) vs. Conditional Use Permits (CUP) Retail Preservation Ordinance 9 5 9 1 b. Notably, a project proposed under State Density Bonus Law could request a waiver from ground-floor retail requirements related to the retail preservation ordinance. A project proposed under the City’s housing incentive program would not have that option. 2. Office/manufacturing zones (except within the San Antonio Road Area Plan area): ROLM ROLM(E), RP RP(5), and GM. a. There are at least 21 sites with office/manufacturing designations where retail preservation regulations would need to be enforced in the event of a redevelopment project. Parcels located within the San Antonio Road Area Plan, an ongoing project by the City to guide redevelopment in a 275.3-acre portion of Palo Alto adjacent to the Mountain View border, would be excluded from this exemption. This exclusion allows the City to complete the San Antonio Road Area Plan process before deciding how to apply retail preservation in the GM zone. Transportation and Parking The draft ordinance proposes to streamline transportation demand management (TDM) requirements and streamline parking regulations in light of changes in State law and concerns from some retailers that they cannot meet parking requirements when proposing a change of use to a classification with a higher parking standard. California Avenue Parking Assessment District: The existing zoning ordinance identifies a blended rate of 1 space per 250 sq. ft. for sites in the Downtown University Avenue Parking Assessment District. The draft ordinance proposes the same blended rate for California Avenue Parking Assessment District, which would acknowledge that: City parking ratios are generally unenforceable for most uses on California Avenue because of the applicability of AB 2097 (Gov. Code Section 65863.2); Visitors to California Avenue likely park once and walk between uses whether parking on the street or within garages; and Existing buildings and tenant spaces typically do not provide on-site parking and cannot physically provide additional parking in the event of a change of use application that triggers additional parking spaces. Eating and Drinking Services’ Parking Ratios: The draft ordinance modifies parking ratios for existing and new proposed new eating and drinking services definitions to acknowledge that full service restaurants generate higher parking requirements than limited service establishments, which have greater turnover. Transportation Demand Management: The existing zoning ordinance requires TDM programs in cases where uses request parking reductions of just 1 or 2 spaces. This requirement has been burdensome for small retailers in particular. The draft ordinance modifies TDM thresholds, 9 5 9 1 exempting retail and retail-like tenants who are proposing small retail additions (less than 1,500 sq. ft.) or changes in use to other retail or retail-like use. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT 9 5 9 1 these locations, allowing office or other non-retail uses could increase occupancy without detracting from the vitality of the street frontage. That the perception of a Conditional Use Permit as a hurdle is a legitimate concern. An Administrative Use Permit is perceived as a more manageable permit to obtain. Terms like “revitalization” and “interim ordinance” create uncertainty and the sense that conditions are in flux; consider better messaging about proposed changes and liaisons that support retail, such as a retail ambassador. Retail needs are getting smaller and the deep retail space, especially Downtown, can benefit from more flexible use allowances. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: 1 *NOT YET APPROVED* Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Various Chapters of Title 18 (Zoning) and Chapter 16.59 (Citywide Transportation Impact Fee of the Palo Alto Municipal Code, and the Zoning Map, to Implement Retail Vitality Measures SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A.Like many communities, the City of Palo Alto has experienced high vacancy rates in retail districts, which have been compounded by challenges associated with the COVID-19 pandemic as well as ongoing retail trends. Accordingly, the City Council has included retail revitalization as a Council priority for the past several years. B.Throughout 2023 and 2024, City staff, the Planning and Transportation Commission (PTC), and the City’s consultant Michael Baker International (MBI) worked together to develop a Retail Study Report intended to inform a citywide retail zoning strategy. C.On September 18, 2024, the City Council Retail Committee reviewed the Final Draft Retail Study Report and provided direction to staff on several zoning amendments should be implemented immediately to support retail and retail-like uses in the City. D.The PTC held six hearings on the Retail Study (in addition to four meetings of the PTC retail ad hoc committee). E.In December 16, 2024, the City Council adopted interim ordinance no. 5642, temporarily implementing some of the recommendations of the Retail Study, while directing further work by staff and the PTC on a permanent ordinance. F.On October 29, 2025, the PTC reviewed additional analysis and recommendations prepared by staff and the City’s consultant Lexington Planning. G.On March 25, 2026, the PTC reviewed issues and options to encourage ground-floor retail, provided comments, and recommended that the City Council adopt an ordinance. H.The City Council now desires to adopt a retail revitalization to replace interim ordinance no. 5642. SECTION 2. All references in the Palo Alto Municipal Code to “Conditional Use Permit” shall be amended to read “Administrative Use Permit.” All references in the Palo Alto Municipal Code to “CUP” shall be amended to read “AUP.” All references in the Palo Alto Municipal Code to “conditionally permitted” shall be amended to read “administratively permitted.” SECTION 3. Section 18.04.030 (Definitions) of Chapter 18.04 (Definitions) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck- 2 *NOT YET APPROVED* through; text omitted but unchanged noted by bracketed ellipses; unannotated text indicates prior, temporary amendments that would expire if not restated herein): 18.04.030 Definitions (a) Throughout this title the following words and phrases shall have the meanings ascribed in this section. (12) “Animal care” means a use providing grooming, housing, medical care, or other services to animals, including veterinary services, animal hospitals, overnight or short-term boarding ancillary to veterinary care, indoor or outdoor kennels, and similar services. (12) “Animal care, daytime” means a use providing care and services during the daytime only, including grooming, socializing, housing, veterinary services, and animal hospitals that do not provide overnight care. (12.1) “Animal care, overnight” means a use providing care and services that includes overnight or short-term boarding, such as kennels and animal hospitals with overnight care. [. . .] (12.6) “Automobile showroom” means a use primarily engaged in the sale of new and used automobiles and trucks, or the display and demonstration of automobiles and trucks for the purpose of facilitating sales, but which does not involve on-site storage of inventory, except as incidental to the showroom use. Automobile showroom serves primarily pedestrian clientele and is distinct from automobile dealership. [. . .] (47)“Eating and drinking service” means uses primarily engaged in serving prepared food and/or beverages for consumption on or off the premises. Related definitions are provided in subsections (45) (Drive-in/drive- through service). (47) (A) “Eating and drinking service, full service” means a use providing preparation and retail sale of food and beverages with a full menu and providing indoor seating area. Eating and drinking service This use typically includes presence of a full commercial kitchen, and commercial dishwasher, and table service. For establishments with incidental sale alcoholic beverages, a minimum of 50% of revenues from an “eating and drinking service” must be derived from the sale of food. Related definitions are provided in subsections (45) (Drive- in/drive- through service, and (125)(B) (Intensive retail service) and (136) (Take-out service). (B) “Eating and drinking, limited service” means a use where food and beverages are ready to consume within approximately 15 minutes of the time of sale whether on the premises, taken out, or delivered. Typically, limited seating area and no commercial kitchen are provided. Examples may include delis, bakeries, frozen dessert shops, pizza shops, counter service restaurants, and coffee shops. For establishments with incidental sale alcoholic beverages, a minimum of 50% of revenues must be derived from the sale of food. (C) “Bars” mean establishments devoted to serving alcoholic beverages and for which the serving of food is incidental to the consumption of such beverages, with less than 50% of revenues derived from the sale of food. Split definition to distinguish between less impactful daytime uses vs. overnight uses which may require additional conditions due to noise or other impacts. Make interim ordinance regulation permanent. Create three categories of eating and drinking services, which generate different parking requirements: full service restaurants with table service and seating, food service with limited seating (replaces "intensive retail service" below), and a new classification to allow bars. 3 *NOT YET APPROVED* [. . .] (56) “Financial service” means a use providing financial services to individuals, firms, or other entities. The term “financial service” includes banks, savings and loan institutions, loan and lending institutions, credit unions and similar services. (A)“Retail finance service” means a financial service use operating in a retail-oriented manner, offering face-to-face interactions, and convenient in-person transactions in locations designed for public access. These services includes retail banks, savings and loan institutions, loan and lending offices, credit unions, and similar services that prioritize walk-in customers with access to immediate financial solutions or combined with a publicly accessible retail component. [. . .] (57.6) “Formula retail business” means a retail, personal, or eating and drinking service that is one of fifty (50) or more business locations in the State of California required by contractual or other arrangement to maintain any of the following standardized characteristics: merchandise, menu, services, decor, uniforms, architecture, facade, color scheme, signs, trademark, or servicemark. For purposes of this definition: (A)“Standardized merchandise, menu and/or services” means 50% or more of in- stock merchandise from a single distributor bearing the same or similar markings; 50% or more of menu items identical in name and presentation with other locations; or 50% or more of services offered identical in name or presentation with other locations. (B)“Decor” means the style of interior furnishings, which may include but is not limited to, style of furniture, wall coverings or permanent fixtures. (C)“Color Scheme” means the selection of colors used throughout, such as on the furnishings, permanent fixtures, and wall coverings, or as used on the facade. (D)“Uniforms” means standardized items of clothing including but not limited to standardized aprons, pants, shirts, smocks or dresses, hats, and pins (other than name tags) as well as standardized colors of clothing. (E)“Facade” means the face or front of a building, including awnings, looking onto a street or an open space. (F)“Trademark” means a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of the goods from one party from those of others. (G)“Servicemark” means a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs that identifies and distinguishes the source of a service from one party from those of others. [. . .] (102.6) "Neighborhood-serving offices" are medical offices, professional offices, travel agencies, and insurance agencies that fit the definition of a neighborhood-serving use. Make interim ordinance regulations permanent. Relocate definitions from Section 18.16.030 4 *NOT YET APPROVED* (102.7) A "Neighborhood Serving Use" is not a separate use classification, but describes the class of uses that primarily serve individual consumers and households, not businesses, are generally pedestrian oriented in design, and do not generate noise, fumes or truck traffic greater than that typically expected for uses with a local customer base. A neighborhood-serving use is also one to which a significant number of customers and clients travel, rather than the provider of the goods or services traveling off-site. [. . .] (125) “Retail service” means a use open to the public during typical business hours and predominantly engaged in providing retail sale, rental, service, processing, or repair of items primarily intended for consumer or household use. (A)“Extensive retail service,” as used with respect to parking requirements, means a retail sales use having more than seventy-five percent of the gross floor area used for display, sales, and related storage of bulky commodities, including household furniture and appliances, lumber and building materials, carpeting and floor covering, air conditioning and heating equipment, and similar goods, which uses have demonstrably low parking demand generation per square foot of gross floor area. (B)“Intensive retail service” as used with respect to parking requirements, means any retail service use not defined as extensive retail service, such as boutiques, bookstores, and small goods retail shops. and including limited food service (i.e. ‘ready-to-eat’ food and/or beverage shops without a full commercial kitchen, where food and/or beverages are ready to consume at the time of sale and any seating area is limited; examples include sandwiches, frozen desserts, non-alcoholic beverages, and baked items). (125.1) “Retail-like use” means a use generally open to the public during typical business hours and predominantly engaged in providing services closely related to, but distinct from, retail services, including but not limited to: (A)Eating and drinking services, as defined in subsection (47); (B)Hotels, as defined in subsection (73); (C)Personal services, as defined in subsection (114); (D)Theaters; (E)Travel agencies; (F)Commercial recreation, as defined in subsection (33); (G)Commercial nurseries; (H)Automobile showrooms, as defined in subsection (12.6); (I)Day care centers, as defined in subsection (42); (J)Retail financial services, as defined in subsection (56)(A); and (K)Other commercial uses, services, or activities determined by the Director of Planning and Development Services to be accessible to the general public, generate walk-in pedestrian clientele, and contribute substantially to a high level of pedestrian activity, and meet the intent of the 18.30(B).040 (Pedestrian Shopping) design standards. Not all retail-like uses are permitted in zoning districts that allow retail-like uses. Refer to use tables within each zoning district for specific permitted retail-like uses. Replaced by "eating and drinking, limited service" new use classification 5 *NOT YET APPROVED* [. . .] (136)“Take-out service” means a characteristic of an eating or drinking service which encourages, on a regular basis, consumption of food or beverages, such as prepared or prepackaged items, outside of a building, in outdoor seating areas where regular table service is not provided, in vehicles parked on the premises, or off-site. Take-out service does not include intensive retail service uses, as defined in subsection (125)(B). [. . .] SECTION 4. Section 18.08.040 of the Palo Alto Municipal Code, the “Zoning Map,” is hereby amended by changing the zoning of the properties identified in Exhibit A by removing the Ground Floor (GF) combining district. SECTION 5. Sections 18.16.030 (Definitions), 18.16.040 (Land Uses), 18.16.050 (Office Use Restrictions), and 18.16.060 (Development Standards) of Chapter 18.16 (Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses): 18.16.030 Definitions [. . .] (e)"Neighborhood-serving offices" are medical offices, professional offices, travel agencies, and insurance agencies that fit the definition of a neighborhood-serving use. (f) A "Neighborhood Serving Use" is a use that primarily serves individual consumers and households, not businesses, is generally pedestrian oriented in design, and does not generate noise, fumes or truck traffic greater than that typically expected for uses with a local customer base. A neighborhood-serving use is also one to which a significant number of customers and clients travel, rather than the provider of the goods or services traveling off-site. [. . .] 18.16.040 Land Uses The uses of land allowed by this chapter in each commercial zoning district are identified in the following tables. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables (“Subject to Regulations in”) includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well. For properties with combining district zoning designations, refer to combining district use regulations for additional or superseding requirements. Acknowledge that most restaurants offer takeout; remove definition and classification from use tables. Removing this overlay from Midtown and Charleston will remove the confusion over the three different use tables that apply to these areas. See Section 18.16 for how uses are proposed to be regulated. Relocated to Section 18.04.030 (Definitions) so that this term is generally applicable across multiple zoning districts 6 *NOT YET APPROVED* (a)Commercial Zones and Land Uses Permitted and conditionally permitted land uses for each commercial zone are shown in Table 1: TABLE 1 PERMITTED AND CONDITIONALLY PERMITTED USES P = Permitted Use CUP = Conditional Use Permit Required LAND USE CN (4) CC, CC(2) CS (4) Subject to Regulations In: ACCESSORY AND SUPPORT USES Accessory facilities and activities customarily associated with or essential to permitted uses, and operated incidental to the principal use. P P P 18.42 Drive-in services or take-out services associated with permitted uses(3) CUP CUP CUP 18.42 Tire, battery, and automotive service facilities, when operated incidental to a permitted retail service or shopping center having a gross floor area of more than 30,000 square feet. CUP 18.42, 18.40.160 Safe Parking 18.42.160 EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business and Trade Schools CUP P P Churches and Religious Institutions P P P Private Educational Facilities CUP P P Private Clubs, Lodges, or Fraternal Organizations CUP P P MANUFACTURING AND PROCESSING USES Recycling Centers CUP CUP CUP Warehousing and Distribution CUP OFFICE USES Administrative Office Services P 18.16.050 Medical Offices PCUP(5)(7) PCUP(5) PCUP(5) 18.16.050 Professional and General Business Offices P(7) P P 18.16.050 PUBLIC/QUASI-PUBLIC USES Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards. CUP CUP CUP RECREATION USES Commercial Recreation CUPP(5) CUPP(5) CUPP(5) 18.40.160 Outdoor Recreation Services CUP CUP CUP RESIDENTIAL USES Revised permit levels and added uses to provide more flexibility. Expanded allowed uses in Midtown and Charleston that are currently permitted with the -GF overlay. 7 *NOT YET APPROVED* LAND USE CN (4) CC, CC(2) CS (4) Subject to Regulations In: Multiple-Family P(1) P(1) P(1) 18.16.060(b) and (c) Home Occupations P P P Residential Care Homes P P P RETAIL USES Automobile Showroom P P P Bars CUP CUP 18.42.090 Eating and Drinking Services, excluding drive-through drive-in and take-out services P(8) P P 18.40.160 18.42.090 Retail Services, excluding liquor stores P(8) P P 18.40.160 Liquor stores CUP P P 18.40.160 Shopping Centers P 18.16.060(c), 18.40.160 SERVICE USES Ambulance Services CUP CUP CUP Animal Care, daytime excluding boarding and kennels P P P 18.42.130 Animal Care, overnight CUP CUP CUP 18.42.130 Automobile Service Stations CUP CUP CUP 18.30(G) Automotive Services CUP Convalescent Facilities CUP P P Day Care Centers P P P 18.40.160 Small Family Day Care Homes P P P Large Family Day Care Homes P P P Small Adult Day Care Homes P P P Large Adult Day Care Homes CUP P P Banks and Financial Services V CUP P(2) P(2) P(2) General Business Services CUP CUP P Hotels P P 18.16.060(d), 18.40.160 Mortuaries CUP P P Neighborhood Business Services P 18.16.060(f) Personal Services P P(6) P 18.16.060(f), 18.40.160 Reverse Vending Machines P P P TEMPORARY USES 8 *NOT YET APPROVED* LAND USE CN (4) CC, CC(2) CS (4) Subject to Regulations In: Farmer’s Markets CUP CUP CUP Temporary Parking Facilities, provided that such facilities shall remain no more than five years. CUP CUP CUP TRANSPORTATION USES Parking as a principal use CUP CUP Transportation Terminals CUP CUP P = Permitted Use CUP = Conditional Use Permit Required (1)Residential is only permitted in the following instances and pursuant to 18.16.060(b) and (c): (i)Aas part of a mixed use development, pursuant to the provisions of Section 18.16.060(b), or (ii)Oon sites designated as housing inventory sites in the Housing Element of the Comprehensive Plan; and (iii)Oon CN or CS sites on El Camino Real, or (iv)On CN sites in the Midtown Shopping District and Charleston Shopping Center, except on the ground-floor fronting public streets, or (iv)Oon CC(2) sites. (2) Except drive-through drive-in services. (3) So long as drive up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet, and each use shall not be less than 150 feet from one another. (4) For properties in the CN and CS zone districts, businesses that operate or have associated activities at any time between the hours of 10:00 p.m. and 6:00 a.m. require a conditional use permit. (5) Except, a A conditional use permit is not required for medical office or commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required for: (A)ground-floor medical office fronting on California Avenue and, in the Charleston Shopping Center, in the Midtown Shopping District, and Town and Country Shopping Center; (B)commercial recreation uses fronting on California Avenue and in the Town and Country Village Shopping Center. (6) A conditional use permit is required for the following uses when fronting on California Avenue: (A) Fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area; and (B) Learning centers intended for individual or small group settings. A conditional use permit is required for fitness or exercise studios, and similar uses exceeding 1,800 square feet in gross floor area in Town and Country Village Shopping Center. (7) In the Midtown Shopping District and Charleston Shopping Center, only “neighborhood serving office” uses are permitted, and a CUP is required for office uses exceeding 2,500 sq. ft. (8) In the Midtown Shopping District and Charleston Shopping Center, a conditional use permit is required for eating and drinking services above 5,000 sq. ft and for other retail uses above 20,000 sq. ft. [. . .] Table 2 below currently prohibits residential uses in Midtown and Charleston; this revision would allow residential on upper floors and behind commercial uses. Regulations for California Avenue have been moved to the -R combining district 18.30(A).040 Revises and replaces Table 5 (below) in section (f) of Section 18.16.060 Development Standards 9 *NOT YET APPROVED* (c) CN District: Special Use Requirements in the Charleston and Midtown Shopping Centers The following regulations shall apply to areas of Charleston Center and the Midtown Shopping Center as defined in Section 18.16.030. Table 2 shows the uses permitted and conditionally permitted on the ground floor of the applicable areas of the Charleston Center and Midtown Shopping Center. Permitted and conditional uses specified in subsection (a) of this section shall only apply to the ground floor of the areas of the Charleston and Midtown Shopping Centers as listed in Table 2. Uses lawfully existing on January 16, 2001 may be continued as non-conforming uses but may only be replaced with uses permitted or conditionally permitted under this subsection. TABLE 2 CHARLESTON AND MIDTOWN SHOPPING CENTERS GROUND FLOOR USES P = Permitted Use CUP = Conditional Use Permit Required X = Prohibited Use LAND USES Charleston Shopping Center Midtown Shopping Center Subject to Regulations in: ACCESSORY AND SUPPORT USES Accessory facilities and uses customarily incidental to permitted uses. P P EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Churches and Religious Institutions CUP CUP Private Educational Facilities CUP CUP MANUFACTURING AND PROCESSING USES Recycling Centers CUP CUP OFFICE USES Neighborhood-serving offices that do not exceed 2,500 square feet in floor area. P 18.16.050 Neighborhood-serving offices exceeding 2,500 square feet in floor area. CUP 18.16.050 Administrative office uses and general business office uses (other than neighborhood-serving travel agencies and insurance agencies) other than those legally in existence on January 16,2001 X X 18.16.050 Medical offices not exceeding 2,500 square feet in area, professional offices, travel agencies, and insurance agencies CUP 18.16.050 PUBLIC/QUASI-PUBLIC USES Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards. CUP CUP RECREATION USES Commercial Recreation CUP CUP 18.40.160 Outdoor Recreation Services CUP CUP Private Clubs, Lodges, or Fraternal Organizations CUP CUP Integrated Charleston and Midtown use allowances into Table 1 above. Deleting this section means that Table 1 and the related footnotes will regulate uses in Midtown Shopping District and Charleston Shopping Center 10 *NOT YET APPROVED* LAND USES Charleston Shopping Center Midtown Shopping Center Subject to Regulations in: RESIDENTIAL USES Residential uses of any nature X X RETAIL USES Eating and Drinking Services, excluding drive-in and take-out services P P 18.40.160 Retail Services, excluding liquor stores P P 18.40.160 Liquor stores CUP CUP 18.40.160 SERVICE USES Ambulance Services CUP CUP Animal Care, excluding boarding and kennels P P Automobile Service Stations CUP CUP 18.30(G) Convalescent Facilities CUP CUP Day Care Centers P P 18.40.160 Financial Services CUP CUP Mortuaries CUP CUP Neighborhood Business Services P P Personal Services P P 18.40.160 Reverse Vending Machines P P TEMPORARY USES Farmers’ Markets CUP CUP Temporary Parking Facilities, provided that such facilities shall remain no more than five years. CUP CUP P = Permitted Use CUP = Conditional Use Permit Required X = Prohibited Use (d) Charleston Shopping Center Additional Use Restrictions (1)Any office use first occupying space at the Center on or after January 16, 2001, shall obtain a written determination from the director of planning and development services that it qualifies as a neighborhood serving use, as defined in this chapter, before occupying its premises. The applicant shall submit such information as the director shall reasonably require in order to make the determination, and the director shall issue the determination within 30 days of receiving a complete application. Failure to submit the required information shall be grounds for determining that a business is not neighborhood-serving. (2) No more than 7,850 square feet of total floor area at the Center shall be occupied by office uses at any time. (3) Prior to approving a conditional use permit for neighborhood-serving offices larger than 2,500 square feet in total floor area, the city shall find that the proposed use will be neighborhood-serving, that it will be conducted in a manner that will enhance and strengthen the Center as a neighborhood resource, and that it will not diminish the retail strength of the center. (e) Midtown Shopping Center: Additional Use Restrictions 11 *NOT YET APPROVED* (1)An existing ground floor office may be replaced with another office if (a)the new tenant or owner will continue the existing business or practice; or (b) a conditional use permit is issued for the new office use. (2) No conditional use permit shall be issued for any new office use on the ground floor unless, in addition to the findings required for a conditional use permit as specified in Section 18.76.010, the city finds that the proposed use will be neighborhood serving, that it will be conducted in a manner that will enhance and strengthen the Midtown Shopping District as a neighborhood resource, and that it will not diminish the retail strength of the District. (3) For properties at 711, 719, and 721 Colorado Avenue, and 689 Bryson Avenue , buildings not fronting on Middlefield Avenue, designed and used for office purposes, and not well suited to other uses are exempt from the provisions of this subsection (b). 18.16.050 Office Use Restrictions The following restrictions shall apply to office uses: (a) Conversion of Ground Floor Housing and Non-Office Commercial to Office Medical, Professional, and Business offices shall not be located on the ground floor, unless any of the following apply to such offices: (1) Have been continuously in existence in that space since March 19, 2001, and as of such date, were neither non-conforming nor in the process of being amortized pursuant to Chapter 18.30(I); (2) Occupy a space that was not occupied by housing, neighborhood business service, retail services, personal services, eating and drinking services, or automotive service on March 19, 2001 or thereafter; (3) Occupy a space that was vacant on March 19, 2001; (4) Are located in new or remodeled ground floor area built on or after March 19, 2001 if the ground floor area devoted to housing, retail services, eating and drinking services, personal services, and automobile services does not decrease; (5) Are on a site located in an area subject to a specific plan or coordinated area plan, which specifically allows for such ground floor medical, professional, and general business offices; or (6) Are located anywhere in Building E or in the rear 50% of Building C or D of the property at the southeast corner of the intersection of Park Boulevard and California Avenue, as shown on sheet A2 of the plans titled “101 California Avenue Townhouse/Commercial/Office, Palo Alto, CA” by Crosby, Thornton, Marshall Associates, Architects, dated June 14, 1982, revised November 23, 1982, and on file with the Department of Planning and Development Services. (a)The following office use restrictions shall apply in the Midtown Shopping District and Charleston Shopping Center: (1)The only office uses permitted are “neighborhood serving office” uses. (2)Prior to approving a conditional use permit for neighborhood-serving offices larger than 2,500 square feet in total floor area, the city shall find that the proposed use will be neighborhood-serving and consistent with the purposes of the zoning district (3)In the Midtown Shopping District, buildings at 711, 719, and 721 Colorado Avenue, and 689 Bryson Avenue, which do not front on Middlefield Avenue and are designed and used for office purposes, are exempt from the provisions of this subsection. Remove onerous and subjective findings, replace with "neighborhood- serving" office limitation, size triggers for CUP, and finding related to district purposes. Retail Preservation Ordinance will prevent office conversions 12 *NOT YET APPROVED* (b)Size Restrictions on Office Uses in the CN and CS Districts (other than Midtown Shopping District and Charleston Shopping Center): (1)In the CN district, office uses shall be governed by the following regulations: (A)Total floor area of permitted office uses on a lot shall not exceed 25% of the lot area, provided: (i)A lot shall be permitted to have at least a total floor area of 2,500 square feet of office uses, provided the uses meet all other zoning regulations. (ii)No lot shall be permitted to have more than a total floor area of 5,000 square feet of office uses. (B)Such uses may be allowed to exceed the maximum size, subject to issuance of a conditional use permit in accord with the provisions of Chapter 18.76. The maximum size for any conditional use shall be established by the director and specified in the conditional use permit for such use. (2)In the CS district, office uses shall be governed by the following regulations: (A)No lot shall be permitted to have more than a total floor area of 5,000 square feet of office uses. (B)Such uses may be allowed to exceed the maximum size, subject to issuance of a conditional use permit in accord with the provisions of Chapter 18.76. The maximum size for any conditional use shall be established by the director and specified in the conditional use permit for such use. 18.16.060 Development Standards [. . .] (f) Size of Establishments in the CN District In the CN district, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 5. Such uses may be allowed to exceed the maximum establishment size, subject to issuance of a conditional use permit in accord with Section 18.76.010. The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use. TABLE 5 MAXIMUM SIZE OF ESTABLISHMENT Type of Establishment Maximum Size (ft 2 ) Personal Services 3,000 Retail services, except grocery stores 15,000 Grocery stores 20,000 Eating and drinking services 5,000 Neighborhood business services 3,000 [. . .] Integrated the following into Table 1 above through footnotes. CUP limitations have not been proposed on personal services or neighborhood business services to provide more flexibility. 13 *NOT YET APPROVED* SECTION 6. Sections 18.18.050 (Land Uses) and 18.18.060 (Development Standards) of Chapter 18.18 (Downtown Commercial (CD) District) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses): 18.18.050 Land Uses The uses of land allowed by this chapter in each commercial zoning district are identified in the following table. Land uses that are not listed on the tables are not allowed, except where otherwise noted. Where the last column on the following tables (“Subject to Regulations in”) includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections may apply as well. For parcels designed with the -GF combining district, refer to 18.30(C) for ground-floor use regulations. Permitted and conditionally permitted land uses for the CD district are shown in Table 1: Table 1 CD Permitted and Conditionally Permitted Uses P Permitted Use • CUP Conditional Use Permit Required CD-C CD-S CD-N Subject to regulations in: ACCESSORY USES Accessory facilities and activities associated with or essential to permitted uses, and operated incidental to the principal use P P P Drive-in or Take-out Services associated with permitted uses (2) CUP CUP CUP Tire, battery, and automotive service facilities, when operated incidental to a permitted retail service or shopping center having a gross floor area of more than 30,000 square feet CUP 18.40.160 Safe Parking 18.42.160 EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business and Trade Schools P P Churches and Religious Institutions P P P Private Educational Facilities P P CUP Private Clubs, Lodges, or Fraternal Organizations P P CUP MANUFACTURING AND PROCESSING USES Recycling Centers CUP CUP CUP Warehousing and Distribution CUP OFFICE USES Administrative Office Services P 18.18.060(f) Medical, Professional, and General Business Offices P P P 18.18.060(f) PUBLIC/QUASI-PUBLIC FACILITY USES Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards CUP CUP Revised permit levels and added uses to provide more flexibility in the types of uses permitted. 14 *NOT YET APPROVED* Table 1 CD Permitted and Conditionally Permitted Uses P Permitted Use • CUP Conditional Use Permit Required CD-C CD-S CD-N Subject to regulations in: RECREATION USES Commercial Recreation CUP(3) CUP(3) CUP(3) Outdoor Recreation Services CUP CUP CUP RESIDENTIAL USES Multiple-Family P (1) P (1) P (1) 18.18.060(b) Home Occupations P P P Residential Care Homes P P P RETAIL USES Automobile Showrooms P P P Bars CUP 18.42.090 Eating and Drinking Services, except drive-through drive-in or take-out services P P P 18.18.060(g) , 18.40.160 18.42.090 Retail Services, excluding liquor stores P P P 18.18.060(g) , 18.40.160 Shopping Centers P 18.18.060(g) , 18.40.160 Liquor Stores P P CUP 18.40.160 SERVICE USES Animal Care, excluding boarding and kennels daytime P P P 18.42.130 Ambulance Services CUP CUP CUP 18.30(G) Automobile Service Stations CUP CUP CUP Automobile Services CUP Convalescent Facilities P P CUP Day Care Centers P P P 18.40.160 Small Family Day Care Homes P P P Large Family Day Care Homes P P P Small Adult Day Care Homes P P P Large Adult Day Care Homes Financial Services, except drive-up services P P CUP General Business Services CUP P P Hotels P P P 18.18.060(d) , 18.40.160 Mortuaries P P CUP Personal Services P(4) P(4) P(3)(4) 18.18.060(g) , 18.40.160 15 *NOT YET APPROVED* Table 1 CD Permitted and Conditionally Permitted Uses P Permitted Use • CUP Conditional Use Permit Required CD-C CD-S CD-N Subject to regulations in: Reverse Vending Machines P P P TRANSPORTATION USES Parking as a principal use CUP CUP Passenger Transportation Terminals CUP TEMPORARY USES Indoor Farmers’ Markets CUP CUP CUP Temporary Parking Facilities, provided that such facilities shall remain no more than five years CUP CUP CUP P Permitted Use CUP Conditional Use Permit Required (1)Residential is only permitted as part of a mixed use development, pursuant to the provisions of Section 18.18.060(b), or on sites designated as Housing Opportunity Sites in the Housing Element of the Comprehensive Plan, pursuant to the provisions of Section 18.18.060(c). (2) Drive-up facilities, excluding car washes, provide full access to pedestrians and bicyclists. A maximum of two such services shall be permitted within 1,000 feet and each use shall not be less than 150 ft from one another. (3) A conditional use permit is required for personal services over 5,000 sq. ft. (3)A conditional use permit is not required for commercial recreation uses up to 5,000 square feet of gross floor area, with the following exceptions, for which a conditional use permit is always required: (A) medical office fronting on University Avenue; (B) commercial recreation uses fronting on University Avenue. (4) A conditional use permit is required for the following uses when fronting on University Avenue: (A) Fitness or exercise studios, and similar uses; and (B) Learning centers intended for individual or small group settings. 18.18.060 Development Standards [. . .] (g) Restrictions on Size of Commercial Establishments in CD-N Subdistrict In the CD-N subdistrict, permitted commercial uses shall not exceed the floor area per individual use or business establishment shown in Table 4. Such uses may be allowed to exceed the maximum establishment size, subject to the issuance of a conditional use permit in accordance with Chapter 18.76. The maximum establishment size for any conditional use shall be established by the director and specified in the conditional use permit for such use. TABLE 4 MAXIMUM SIZE OF ESTABLISHMENT Type of Establishment Maximum Size (ft 2 ) Personal Services 3,000 Retail services, except grocery stores 15,000 Grocery stores 20,000 Eating and drinking services 5,000 Revises and replaces Table 4 below Moved personal services CUP trigger to Table 1 above and increased maximum size to 5,000 sq. ft. to increase flexibility. Remaining CUP triggers are unnecessarily restrictive given that CD-N parcel sizes and development standards will generate smaller footprint buildings and limited massing (max 0.9 FAR and 35-foot building height). Moreover, new buildings will be subject to design review. 16 *NOT YET APPROVED* [. . .] SECTION 7. Section 18.29.050 (Permitted Uses) of Chapter 18.29 (North Ventura (NV) District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses): 18.29.050 Permitted Uses The uses of land allowed by this chapter in each zoning district are identified in the following tables. Land uses that are not listed in the tables are not allowed, except where otherwise noted. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use; however, provisions in other sections not specifically referenced may apply as well. TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES P = Permitted Use CUP = Conditional Use Permit Required TUP = Temporary Use Permit Required — = Not Permitted LAND USE NV-R1 NV-R2 NV-R3 NV-R4 NV-MXL (1)(5) NV-MXM (5) NV-MXH NV-PF Subject to Regulations In: ACCESSORY AND SUPPORT USES 18.40 Accessory facilities and activities customarily incidental to the P P P P P P P - 18.10.080 permitted use 18.12.080 Accessory Dwelling Unit & Junior Accessory Dwelling Unit when accessory to primary and permitted residential use P P P P P P P - 18.09 Home Occupations, when accessory to permitted residential use P P P P P P P P 18.42 Horticulture, Gardening, and Growing of food products for consumption by occupants of a site P P P P P P P - EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Private Clubs, Lodges, or Fraternal Organizations, excluding any such facility operated as a business for profit - - - CUP CUP - - - Private Educational Facilities CUP CUP CUP CUP CUP P P - Religious Institutions CUP CUP CUP CUP P P P - OFFICE USES(2) Administrative Office Services - - - - P P P - 18.29.050(a) Medical Offices - - - - P P P - 18.29.050(a) Revised permit levels and added uses to provide more flexibility in the types of uses permitted. 17 *NOT YET APPROVED* TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES P = Permitted Use CUP = Conditional Use Permit Required TUP = Temporary Use Permit Required — = Not Permitted LAND USE NV-R1 NV-R2 NV-R3 NV-R4 NV-MXL (1)(5) NV-MXM (5) NV-MXH NV-PF Subject to Regulations In: Professional and General Business Offices - - - - P P P - 18.29.050(a) PUBLIC/QUASI-PUBLIC USES Community Centers CUP CUP CUP CUP - - - CUP (3) Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards. CUP CUP CUP CUP CUP CUP CUP - RECREATION USES Neighborhood Recreational Centers - - CUP CUP - - - CUP(3) Commercial Recreation - - - - CUP CUP CUP CUP(3) Outdoor Recreation Services CUP CUP CUP CUP - CUP CUP CUP(3) Youth Clubs - - - - - - - CUP(3) RESIDENTIAL USES Single-Family P P - - - - - - Two-Family P P - - - - - - 18.42.180 Multiple-Family - - P P P P P P (4) Residential Care Homes P P P P P P P - RETAIL USES Automobile Showroom P Bars CUP 18.42.090 Eating and Drinking Services, except drive-through drive-in and takeout services - - P P P P P CUP (3) 18.40.160, 18.29.050(c) Personal Services and Retail Services of a neighborhood- serving nature - - P P P P P CUP (3) 18.40.160, 18.29.050(c) Liquor stores - - - - - P P - 18.40.160, 18.29.050(c) SERVICE USES Animal Care, daytime excluding boarding and kennels - - - - P P P - 18.29.050(c) 18.42.130 Animal Care, overnight CUP CUP CUP 18.42.130 Convalescent Facilities - - - CUP P P P - Day Care Centers CUP CUP CUP P P P P - 18.40.160 18 *NOT YET APPROVED* TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES P = Permitted Use CUP = Conditional Use Permit Required TUP = Temporary Use Permit Required — = Not Permitted LAND USE NV-R1 NV-R2 NV-R3 NV-R4 NV-MXL (1)(5) NV-MXM (5) NV-MXH NV-PF Subject to Regulations In: Large Family Day Care Homes P P P P P P P P(3) Small Family Day Care Homes P P P P P P P P(3) Large Adult Day Care Homes CUP CUP P P P P P P(3) Small Adult Day Care Homes P P P P P P P P(3) Financial Services - - - - P P P - 18.29.050(a), 18.29.060(b) General Business Services - - - - P P P - 18.29.050(a), 18.29.060(b) Hotels - - - - - P P - 18.40.160, 18.16.060(d) Personal Services and Retail Services defined as a neighborhood- serving use - - P P P P P CUP (3) 18.40.160, 18.29.050(c) Other Personal Services - - - - P P P - 18.40.160, 18.29.050(c), 18.29.060(b) AGRICULTURAL AND OPEN SPACE USES Park uses and uses incidental to park operation - - - - - - - P All facilities owned or leased, and operated or used, by the City of Palo Alto, the County of Santa Clara, the State of California, the government of the United States, the Palo Alto Unified School District, or any other governmental agency, or leased by any such agency to another party - - - - - - - P Utility Facilities - - - - - - - CUP TEMPORARY USES Temporary Uses - - TUP TUP - - - - 18.42.050 Farmer’s Markets - - - - - CUP CUP - Temporary Parking Facilities, provided that such facilities shall remain no more than five years - - - - - CUP CUP CUP (3) 19 *NOT YET APPROVED* TABLE 1: PERMITTED AND CONDITIONALLY PERMITTED USES P = Permitted Use CUP = Conditional Use Permit Required TUP = Temporary Use Permit Required — = Not Permitted LAND USE NV-R1 NV-R2 NV-R3 NV-R4 NV-MXL (1)(5) NV-MXM (5) NV-MXH NV-PF Subject to Regulations In: Notes: For NV-MXL zoning district, the total floor area of non-residential uses permitted and conditionally permitted on a lot shall not exceed 5,000 square feet. For office uses, total floor area of permitted office uses on a lot shall not exceed 5,000 square feet. Provided such use is conducted on property owned by the City of Palo Alto, the County of Santa Clara, the State of California, the government of the United States, the Palo Alto Unified School District, or any other governmental agency, and leased for said uses. Only a 100% Affordable Housing Project is permitted. Development shall follow NV-R4 standards. Ground floor uses shall comply with the ground floor edge framework set forth in NVCAP section 2.3. … SECTION 8. Chapter 18.30(A) (Retail Shopping (R) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses): 18.30(A).010 Specific Purposes The retail shopping combining district is intended to modify the uses allowed in a commercial district, where applied in combination with such district, to allow only retail, eating, and service- oriented, and neighborhood-serving office commercial development on the ground floors [. . .] 18.30(A).040 Permitted Uses Land Uses Except to the extent a conditional use permit is required pursuant to Section 18.30(A).050, the following uses shall be permitted in an R district: (a)Eating and drinking services, except drive-in and take-out services. (b)Personal services, except the following on California Avenue: fitness or exercise studios exceeding 1,800 square feet in gross floor area (c)Retail services. (d) Financial services, except drive-in services. (e) Pet grooming services. (f) Automobile showroom. (g) All other uses permitted in the underlying commercial district, provided they are not located on a ground floor. Permitted and conditionally permitted land uses in the combining district are identified in Table 1.Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use. Conditional use permits shall be issued in accordance with Chapter 18.76 (Permits and Approvals), subject to restrictions in Section 18.40.160. Replace narrative list of P/CUP uses, with table. Revised permit levels and added uses (e.g., bars, neighborhood- serving office, medical office) to provide more flexibility. Table 1 below removes this exception for fitness. This change would allow fitness studios up to 5,000 sq. ft. by right. Beyond 5,000 sq. ft. fitness is classified as commercial recreation which would require a CUP. 20 *NOT YET APPROVED* Table 1 P Permitted Use • CUP Conditional Use Permit Required (R) Subject to regulations in: OFFICE USES Medical offices, that include retail services, fronting California Avenue CUP 18.30(A).055(b) Neighborhood-serving offices, except fronting California Avenue. P 18.30(A).055(c) RECREATION USES Commercial recreation, fronting California Avenue CUP Commercial recreation, other locations P RETAIL USES Automobile showrooms P Bars CUP 18.42.090 Eating and drinking services, except drive-through services P 18.42.090 Formula retail businesses on California Avenue CUP Retail financial services, except drive-through services. P Retail services P SERVICE USES Animal care, daytime P 18.42.130 Personal services P OTHER All other uses permitted in the underlying commercial district, provided they are not located on a ground floor. CUP See underlying district regulations 18.30(A).050 Conditional Uses The following uses may be conditionally permitted in an R district, subject to the issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approval): (a)All other conditional uses allowed in the underlying commercial district provided they are not located on a ground floor. (b)Formula retail businesses on California Avenue. (c)Fitness or exercise studios exceeding 1,800 square feet in gross floor area on California Avenue. 18.30(A).055050 Design Standards (a)The following design standards shall apply in the R combining district: (a) (1) Window Transparency. Exterior windows on the ground floor shall use transparent glazing to the extent feasible. Low-e glass or minimal tinting to achieve sun control is permitted, so long as the glazing appears transparent when viewed from the ground level. (b) (2) Visual Access. Window coverings are not permitted on the ground floor during typical business hours. Where operations preclude transparency (e.g., theaters) or where privacy requires window coverings, sidewalk-facing frontage shall include items of visual interest including displays of merchandise or artwork; visual access shall be provided to a minimum depth of 3 feet. 21 *NOT YET APPROVED* (b) Medical Office Uses. For ground-floor medical office uses located within 40 feet of the back of sidewalk on California Avenue, such uses shall include a retail services component that occupies a minimum 15-foot depth, as measured from the California Avenue ground floor building frontage. (c) Neighborhood-Serving Office Uses. Ground-floor neighborhood-serving office uses may be located in the rear of lots with frontage on California Avenue or fronting on side streets, if retail or retail-like uses occupy a minimum 40-foot depth of the ground floor, as measured from the back of sidewalk on California Avenue, and occupy the full extent of the California Avenue building frontage, excluding required utilities, driveways, pedestrian access and residential lobby. [. . .] 18.30(A).070 Waivers and adjustments. (a) The following shall be grounds for a request for waiver or adjustment of this Chapter: (1)Economic Hardship. An applicant may request that the requirements of this Chapter be adjusted or waived upon a showing that strict application would result in an unreasonable financial burden on the property. (2) Alternative Viable Use. An applicant may request that the requirements of this Chapter 18.30(A) be adjusted or waived based on a showing that: the permitted retail or retail-like use is not viable; the proposed alternative use will support the purposes of the combining district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections. (b) Documentation. The applicant shall bear the burden of presenting substantial evidence to support a waiver or modification request under this section and shall set forth in detail the factual and/or legal basis for the claim, including all supporting technical documentation. Any request under this section shall be submitted to the Planning and Development Services Director together with the fee specified in the municipal fee schedule and an economic analysis or other supporting documentation. A request under this section shall be acted upon by the City Council. SECTION 9. Chapter 18.30(C) (Ground Floor (GF) Combining District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses): [. . .] 18.30(C).020 Permitted Uses Land Uses (a) The following uses shall be permitted in the GF combining district, subject to restrictions in Section 18.40.180: (1) Eating and drinking; (2) Hotels; (3) Personal services, except for the following on parcels with frontage on University Avenue: fitness and exercise studios exceeding 3,000 square feet in gross floor area; (4) Retail services; Allows neighborhood- serving office, but not fronting California Avenue. Remove Waiver and Adjustments section entirely to make regulations unambiguous and acknowledge that the City is expanding permitted uses. Allows medical office on California Avenue, if the front of the space includes retail sales. Replace narrative list of P/CUP uses, with table. Revised permit levels and added uses (e.g., bars, neighborhood- serving office, medical office) to provide more flexibility. Table 1 below removes this exception for fitness. This change would allow fitness studios up to 5,000 sq. ft. by right. Beyond 5,000 sq. ft. fitness is classified as commercial recreation which would require a CUP. 22 *NOT YET APPROVED* (5) Theaters; (6) Travel agencies; (7) Commercial recreation up to 5,000 square feet in gross floor area, except for parcels with frontage on University Avenue; (8) Financial services, except drive-in services. (9) Pet grooming services. (10) Automobile showroom; (11) All other uses permitted in the underlying district, provided such uses are not on the ground floor. (a)Permitted and conditionally permitted land uses in the combining district are identified in Table 1 and, subject to restrictions in Section 18.40.180. Where the last column on the following tables ("Subject to Regulations in") includes a section number, specific regulations in the referenced section also apply to the use. (b)Elimination or conversion of basement space currently in retail or retail-like use or related support purposes is prohibited. (c)Entrance, lobby, or reception areas serving non-ground floor uses may be located on the ground floor to the extent reasonably necessary, provided they do not interfere with the ground floor use(s), and subject to the approval of the Director. 18.30(C).030 Conditional Uses (a) The following uses may be conditionally allowed on the ground floor in the GF ground floor combining district, subject to issuance of a conditional use permit in accord with Chapter 18.76 (Permits and Approvals) and with the additional finding required by subsection (b), subject to restrictions in Section 18.40.160: (1) Business or trade school; (2) Commercial recreation over 5,000 square feet in gross floor area or with frontage on University Avenue; (3) Day care; (4) General business service; (5) All other uses conditionally permitted in the applicable underlying district, provided such uses are not on the ground floor. (b a) The director may grant a conditional use permit under this section only if he or she makes the following findings in addition to the subject to the findings required by Chapter 18.76 (Permits and Approvals) and a finding that: (1) The location, access or design of the ground floor space of the existing building housing the proposed use, creates exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district. (2) Tthe proposed use will not be determined to the retail environment or the pedestrian- oriented design support the objectives of the GF combining district. (c b) Any use conditionally permitted pursuant to this section shall be effective only during the existence of the building that created the exceptional circumstance upon which the finding set forth in subsection (b) was made. Remove onerous and subjective findings. 23 *NOT YET APPROVED* Table 1 P Permitted Use • CUP Conditional Use Permit Required (GF) Subject to regulations in: EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business or trade school CUP OFFICE USES Medical offices, that include retail services, fronting University Avenue CUP 18.30(C).035(b) Neighborhood-serving offices, except fronting University Avenue. P 18.30(C).035(c) RECREATION USES Commercial recreation, up to 5,000 sq. ft. P Commercial recreation, more than 5,000 sq. ft. CUP Commercial recreation, fronting University Avenue CUP RETAIL USES Automobile showrooms P Bars CUP 18.42.090 Eating and drinking services, except drive-through services P 18.42.090 Retail financial services, except drive-through services. P Retail services P SERVICE USES Animal care, daytime P Day care centers CUP General business service CUP Personal services P Theaters P Travel Agencies P OTHER All other uses permitted in the underlying commercial district, provided they are not located on a ground floor. CUP See underlying district regulations 18.30(C).035030 Design Standards (a)Where the GF combining district is combined with the CD-C subdistrict, the following design standards shall apply: (a) (1) Window Transparency. Exterior windows on the ground floor shall use transparent glazing to the extent feasible. Low-e glass or minimal tinting to achieve sun control is permitted, so long as the glazing appears transparent when viewed from the ground level. (b) (2) Visual Access. Window coverings are not permitted on the ground floor during typical business hours. Where operations preclude transparency (e.g., theaters) or where privacy requires window coverings, sidewalk-facing frontage shall include items of visual interest including displays of merchandise or artwork; visual access shall be provided to a minimum depth of 3 feet. Replace narrative list of P/CUP uses, with table. Revised permit levels and added uses (e.g., bars, neighborhood-serving office, medical office) to provide more flexibility. 24 *NOT YET APPROVED* (b) Medical Office Uses on University Avenue. For ground-floor medical office uses located within 50 feet of the back of sidewalk on University Avenue, such uses shall include a retail services component that occupies a minimum 15-foot depth, as measured from the University Avenue ground floor building frontage. (c) Neighborhood-Serving Office Uses on University Avenue. Ground-floor neighborhood- serving office uses may be located in the rear of lots with frontage on University Avenue or fronting on side streets, if one of the following conditions are met: (1) Retail or retail-like uses occupy a minimum 50-foot depth of the ground floor, as measured from the back of sidewalk on University Avenue, and occupy the full extent of the University Avenue building frontage, excluding required utilities, driveways, pedestrian access and residential lobby; or (2) For buildings that do not have tenant spaces within 50 feet of University Avenue (e.g., flag lots, deep setbacks), neighborhood-serving offices are located a minimum of 50 feet from University Avenue, as measured from the back of sidewalk. [. . .] 18.30(C).050 Waivers and adjustments. (a)The following shall be grounds for a request for waiver or adjustment of this Chapter: (1) Economic Hardship. An applicant may request that the requirements of this Chapter be adjusted or waived upon a showing that strict application would result in an unreasonable financial impact on the property. (2) Alternative Viable Use. An applicant may request that the requirements of this Chapter 18.30(A) be adjusted or waived based on a showing that: the permitted retail or retail-like use is not viable; the proposed alternative use will support the purposes of the combining district and Comprehensive Plan land use designation; and the proposed use will encourage active pedestrian-oriented activity and connections. (b) Documentation. The applicant shall bear the burden of presenting substantial evidence to support a waiver or modification request under this section and shall set forth in detail the factual and/or legal basis for the claim, including all supporting technical documentation. Any request under this section shall be submitted to the Planning and Development Services Director together with the fee specified in the municipal fee schedule and an economic analysis or other supporting documentation. A request under this section shall be acted upon by the City Council. SECTION 10. Section 18.38.030 (Permitted Uses) of Chapter 18.38 (PC Planned Community District Regulations) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; deletions struck-through): 18.38.030 Permitted uses. Any use may be permitted in any specific PC district; provided: (a)Such such use is shall be specifically listed as a permitted use and shall be located and conducted in accord with the approved development plan and other applicable regulations adopted pursuant to this chapter to govern each specific PC district; or Remove Waiver and Adjustments section entirely to make regulations unambiguous and acknowledge that the City is expanding permitted uses. Allows medical office on University Avenue, if the front of the space includes retail sales. Allows neighborhood-serving office, but not fronting University Avenue. 25 *NOT YET APPROVED* (b)Except for uses identified as being part of a PC community benefit, the Director may determine that an unlisted use is materially similar to a listed use in the specific PC district and may be allowed in the same extent and subject to the same standards as a listed permitted use, if it has: (1)Similar impacts on the neighborhood such as traffic generation, deliveries, noise and lighting as listed uses; and (2)Similar characteristics such as building type, site arrangement, floor area, number of employees, indoor and/or outdoor uses, customer traffic, equipment use, hours of operation, parking, vehicle trips and signage as listed uses. SECTION 11. Section 18.40.180 (Retail Preservation) of Chapter 18.40 (General Standards and Exceptions) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby amended as follows (additions underlined; text omitted but unchanged noted by bracketed ellipses): 18.40.180 Retail Preservation (a)Conversion of Retail and Retail-Like Uses Prohibited. (1)Any ground floor Retail or Retail-Like use permitted or operating as of March 2, 2015 may be replaced only by another Retail or Retail-Like use, as permitted in the applicable district. (A)A ground floor Retail or Retail-Like use in the RT-35 district on properties with frontage on Alma Street between Channing Avenue and Lincoln Avenue may additionally be replaced by a Private Educational Facility use, provided that such use shall not be thereafter replaced by an Office use. (B)This subsection shall not apply to the following zoning districts: (I)Residential zones: RM-30, RM-40, NV-R3, NV-R4 (II)Office/manufacturing zones, except within the San Antonio Road Area Plan area: ROLM, ROLM(E), RP, RP(5), GM [. . .] SECTION 12. Section 18.42.090 (Alcoholic Beverages) of Chapter 18.42 (Standards for Special Uses) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended and Section 18.42.130 (Animal Care) is hereby added as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses): 18.42.090 Alcoholic Beverages (a)Purpose This subsection establishes permit requirements and standards for establishments with alcoholic beverage sales or service. (b)Licensing Establishments with alcoholic beverage sales or service shall comply with all applicable regulations of the California Department of Alcoholic Beverage Control. Allows the Director to determine whether an unlisted use may be permitted in a PC district, based on similar impacts and characteristics. This provision would remove sites from RPO applicability, including two residentially zoned - sites, occupied by a hotel and daycare. Allows alcohol incidental to food by right and applies regulations for bars. 26 *NOT YET APPROVED* (c)Permits Required Table 1 shows permits required for alcoholic beverage service depending on the use classification and type of alcohol service. Table 1 Permits Required for Alcoholic Beverage Services Use Classification Beer and Wine Distilled Spirits Eating and Drinking Service P P Bar CUP CUP (a) Conditional Use Permit Required in Tandem with On-Sale License In any district where otherwise permitted by this title, any eating and drinking establishment or other use having any part of its operation subject to an on-sale license required by the State of California shall be subject to securing a conditional use permit. (b) Conditional Use Permit Required with New On-Sale License A conditional use permit shall be obtained in the case of premises for which no conditional use permit is in force, whenever a new on-sale license is required by the State of California. (c)(d) Amendment to Conditional Use Permit Required with Expansion In the case of premises for which a conditional use permit is in force, which permits the sale of alcohol, but Table 1 permits less restrictive requirements, an administrative amendment to such permit shall be required whenever such use is intensified or is expanded in square footage. (d)(e) Amendment to Conditional Use Permit Required with New On-Sale License In the case of premises for which a conditional use permit is in force, but such use permit does not permit sales of alcohol, compliance with the permit level identified in Table 1 an amendment to such permit shall be required whenever a new on-sale license is required by the State of California. (e)(f) Alcohol Service in Parklets on Rights-of-Way Establishments that are allowed by the city to serve alcohol for onsite consumption by issuance of a conditional use permit (“CUP”) as required in pursuant to this section or as a legal nonconforming use, and that have both an on-sale license from the California Department of Alcoholic Beverage Control (“ABC”) and are duly authorized by ABC to serve alcohol in outdoor areas, shall be allowed to serve alcohol for onsite consumption without an amendment of the CUP in parklets on public property approved via permit per PAMC Chapter 12.11 or other outdoor uses approved via permit per any other relevant section of the PAMC. Outdoor alcohol service shall be in full compliance with all applicable regulations, including ABC regulations, as may be amended. (g)Findings. To approve a CUP for alcoholic beverage sales or service, the decision-making body must make the following findings: (1)The applicant has not operated a licensed establishment that has been the subject of violations regarding alcohol, or violations of public safety or nuisance statutes or regulations in Palo Alto. In making this finding, the decision-making body may consider the number, frequency, and severity of prior violations, the time elapsed since the last violation, and other relevant factors; and 27 *NOT YET APPROVED* (2)At least one of the following: (A)The proposed establishment will promote the City’s economic health, contribute to Comprehensive Plan or area plan policies, or further the zoning district purpose; or (B)The economic benefits associated with the establishment could not reasonably be achieved without the proposed alcohol sales or service. (h)Operational Conditions. Owners and operators of Bars or Eating and Drinking Services with alcohol beverage service must meet the following performance standards: (1)Hours. Hours of operation are subject to review and amendment by the review authority as necessary to avoid detriment to the neighborhood or to achieve conformance with revised City of Palo Alto standards or policies. (2)Preventing Disturbances. The owner or operator of the establishment shall take reasonable measures to prevent disturbances by patrons in the immediate vicinity. Such measures shall include: (A)Signs reminding patrons of nearby sensitive receptors, such as residences, and requests not to congregate or loiter near such residences nor operate vehicles in a noisy manner on public streets; and (B)Sightlines to public areas near the establishment, keeping public areas free of trash and litter, providing lighting, and otherwise preventing conduct that might disturb the peace and quiet of residences in the vicinity. (C)The operator shall assume reasonable responsibility for ensuring that patrons do not block the entrance or interfere with pedestrian activity on the adjacent public sidewalk. (3)Training. All employees selling and/or serving alcoholic beverages, or directly supervising such sales and/or service, shall finish the Licensee Education on Alcohol and Drugs program, or another equivalent program offered or certified by the California Department of Alcoholic Beverage Control within 90 days of employment at the establishment. Employees who have finished the course within the last 12 months are exempt from this requirement. [. . .] 18.42.130 Animal Care (a)Purpose Conform with State licensing requirements and City regulations, regulate operations, and ensure compatibility with other allowed uses in the applicable zoning district. (b)Performance Standards Animal Care uses shall be subject to the following standards. Animal care uses subject to a conditional use permit may be required to meet additional standards such as hours of operation, drop-off and pick-up regulations, fencing and privacy standards, in particular for businesses with outdoor uses when adjacent to residential or other sensitive uses. Identifies performance standards for animal care uses. 28 *NOT YET APPROVED* (1)Animal Control Permit. The facility shall maintain a valid permit with Animal Control at all times, if required, and follow the guidelines of said permit all times. (2)Nuisances and noise. The business shall be operated in a manner to protect any nearby properties from excessive noise, odors, lighting or other nuisances from any sources during the business hours. Noise levels emanating from the use shall not exceed the maximum level established in Chapter 9.10. (3)Interior materials. The interior building surfaces of indoor housing facilities shall be constructed and maintained so that they are substantially impervious to moisture and may be readily sanitized. (4)Drainage. Adequate drainage facilities shall be installed and maintained to facilitate proper sanitation and disposal of natural precipitation and water used to clean the facility. (5)Ventilation. Indoor housing facilities shall be adequately ventilated to provide for the health and comfort of the animals at all times. Such facilities shall be provided with fresh air either by means of windows, doors, vents, or air conditioning and shall be ventilated so as to minimize drafts, odors, and moisture condensation. (6)Waste. Provision shall be made for the removal and disposal of animal and food wastes, bedding, dead animals, and debris, in accordance with applicable laws. Disposal facilities shall be covered and operated as to minimize odors and disease hazards. SECTION 13. Sections 18.52.030 (Basic Parking Requirements), 18.52.040 (Off-Street Parking, Loading and Bicycle Facility Requirements), and 18.52.050 (Adjustments by the Director) of Chapter 18.52 (Parking and Loading Requirements) of Title 18 (Zoning) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses): 18.52.030 Basic Parking Regulations [. . .] (i)Transportation Demand Management Plan (1)Requirement for TDM Plan: A Transportation Demand Management (TDM) Plan to reduce and manage the number of single-occupant motor vehicle trips generated by the project shall be prepared and submitted by the applicant in the following circumstances: A.For all projects that generate 50 or more net new weekday (AM or PM peak hour) or weekend peak hour trips; or B.For all projects claiming a reduction in net new trips due to proximity to public transit, exclusive of subsection (D); or the implementation of a TDM plan; and C.For all projects requesting a parking reduction, except a retail or retail-like use proposing an addition of less than 1,500 sq. ft. or change of use to other retail or retail-like; or Exempts small retail additions and changes in retail use from onerous TDM requirements. 29 *NOT YET APPROVED* D.For all projects with reduced parking pursuant to California Government Code Section 65863.2 (AB 2097, 2022), except a retail or retail-like use proposing an addition of less than 1,500 sq. ft. or change of use to other retail or retail-like. (2)The Director shall have the authority to adopt guidelines for preparing TDM plans and when applicable shall coordinate such guidelines with the Transportation Management Association. [. . .] 18.52.040 Off-Street Parking, Loading and Bicycle Facility Requirements [. . .] (c)Tables 1, 2, 3 and 34: Parking, Bicycle, and Loading Requirements Tables 1, 2 and 23 below outline vehicle and bicycle parking requirements in general and for Parking Assessment Districts, respectively. Where bicycle parking standards differ from California Green Building Standards for bicycle parking, the more stringent standards shall apply. Table 34 outlines loading requirements for each land use. For mixed-use projects, the requirements for each land use shall be applied and required for the overall project. Table 1 Minimum Off-Street Parking Requirements Use Vehicle Parking Requirement (# of spaces) Bicycle Parking Requirement Spaces Class 1 Long Term (LT) and Short Term (ST) … Eating and Drinking Services: (a) With drive-through drive-in or take-out facilities 1 per 200 sq. ft. of gross floor area, plus minimum queue line for 10 cars, subject to further evaluation for higher demand drive- through uses. 3 per 100 sq. ft. of gross floor area 3 per 400 sf 40% - LT 60% - ST (b)All othersFull Service 1 space for each 15060 sq. ft. gross floor area sq. ft. of public service area, plus 1 space for each 200 gross sq. ft. for all other areas. 1 per 600 sf of public service area, plus 1 per 2,000 sf for other areas 40% - LT 60% - ST (c)Limited Service 1 space for each 250 sq. ft. gross floor area 1 per 2,000 sf 40% - LT 60% - ST (d)Bars 1 space for each 150 sq. ft. gross floor area 1 per 1,000 sf 40% - LT 60% - ST [. . .] Updates use classifications to match new definitions; modifies ratios to align with demand. 30 *NOT YET APPROVED* 4.For residential mixed-use developments in the CD-C zone, CC(2) zone, on CN and CS zoned sites abutting El Camino Real, and on CS zoned sites abutting San Antonio Antonia Road between Middlefield Road and East Charleston Road, the first 1,500 square feet of ground-floor retail uses shall not be counted toward the vehicle parking requirement. [. . .] Table 2 Minimum Off-Street Parking Requirements for Parking Assessment Districts Use Vehicle Parking Requirement (# of spaces) 1 For Downtown University Avenue Parking Assessment District: Residential Uses See Table 1 All Other Uses 1 per 250 square feet For California Avenue Parking Assessment District: Residential Uses See Table 1 Hotel/Motel/Inn See Table 1 All Other Uses 1 per 250 square feet 1.For residential mixed-use developments in the CD-C zone, CC(2) zone, and on CN and CS zoned sites abutting El Camino Real, the first 1,500 square feet of ground-floor retail uses shall not be counted toward the vehicle parking requirement. [. . .] Table 23 Minimum Off-Street Bicycle Parking Requirements for Parking Assessment Districts (IF USE IS NOT LISTED, REFER TO TABLE 1 FOR REQUIREMENTS) Use Vehicle Parking Requirement (# of spaces) Bicycle Parking Requirement Class1 Spaces For Downtown University Avenue Parking Assessment District: All uses (except residential) 2 1 per 250 square feet 1 per 2,500 square feet 40% - LT 60% - ST Residential Uses See Table 1 For California Avenue Parking Assessment District: Automobile Service Stations 1 per 310 square feet of gross enclosed floor area, plus queue capacity equivalent to the service capacity of gasoline pumps 1 per 10 employees 100%-ST Automotive Services 1 per 150 square feet of gross floor area, display, or storage on site 1 per 10 employees 100%-ST Eating and Drinking Services: Establish blended rate for California Avenue, consistent with Downtown, to simplify regulations and acknowledge that parking standards for these areas cannot be enforced pursuant to AB2097/Gov. Code Section 65863.2 Maintain bike parking standards by use classification. 31 *NOT YET APPROVED* Use Vehicle Parking Requirement (# of spaces) Bicycle Parking Requirement Class1 Spaces (a)With drive-through drive-in or take-out facilities 3 per 100 sf of gross floor area 3 per 400 sf 40% - LT 60%-ST (b) All others 1 per 155 sf of gross floor area 1 per 1,550 sf Financial services: (a)Bank, savings and loan offices with 7,500 square feet of floor area or less: 1 per 180 sf of gross floor area 1 per 1,800 sf 40%-LT 60% - ST (b) Banks, savings and loan offices with more than 7,500 square feet of floor area: 1 per 310 sf of gross floor area (c)Others 1 per 180 sf of gross floor area 1 per 1,800 sf General Business Services: (a)Enclosed 1 per 360 sf of gross floor area 1 per 3,600 sf 80%- LT 20%- ST (b)Open lot 1 per 500 sf of sales, display or storage site area 1 per 5,000 sf 100%- ST Medical, professional, and general business offices 1 per 310 sf of gross floor area 1 per 3,100 sf 60%-LT 40% - ST Personal Services 1 per 450 sf of gross floor area 1 per 4,500 sf 20% - LT 80% - ST Retail: (a) Intensive 1 per 240 sf of gross floor area 1 per 2,400 sf 20%-LT 80% -ST (b) Extensive 1 per 350 sf of gross floor area 1 per 3,500 sf (c)Open lot 1 for each 500 square feet of sales, display, or storage site area. 1 per 5,000 sf 100%-ST OTHER USES Any use not specified See Table 1 1.Long Term (LT) and Short Term (ST) bicycle spaces as described in Section 18.54.060. 2.For residential mixed-use developments in the CD-C zone, CC(2) zone, and on CN and CS zoned sites abutting El Camino Real, the first 1,500 square feet of ground-floor retail uses shall not be counted toward the vehicle parking requirement. Table 34 Minimum Off-Street Loading Requirements [. . .] 32 *NOT YET APPROVED* 18.52.050 Adjustments by the Director Automobile parking and off-street loading requirements prescribed by this chapter may be adjusted by the director in the following instances and in accord with the prescribed limitations in Table 4, when in his/her opinion such adjustment will be consistent with the purposes of this chapter, will not create undue impact on existing or potential uses adjoining the site or in the general vicinity, and will be commensurate with the reduced parking demand created by the development, including for visitors and accessory facilities where appropriate. No reductions may be granted that would result in provision of less than ten (10) spaces on a site. The following are adjustments that apply to developments not located within a parking assessment district. Adjustments within the parking assessment districts are contained in Section 18.52.080. The decision of the regarding parking adjustments may be appealed as set forth in Chapter 18.78 (Appeals). Table 4 Allowable Parking Adjustments Purpose of Adjustment Amount of Adjustment Maximum Reduction 2 [. . .] [. . .] [. . .] Combined Parking Adjustments Parking reductions may be granted for any combination of the above circumstances as prescribed by this chapter, subject to limitations on the combined total reduction allowed. 3060% reduction of the total parking demand otherwise required 40% reduction for affordable housing projects [. . .] [. . .] [. . .] 1.See Section 18.52.050(d) below regarding requirements for TDM programs. 2.No parking reductions may be granted that would result in provision of less than ten (10) parking spaces on site. 2.3. No parking reductions may be granted for projects that are entitled to the reduced parking standards in Table 1 of Section 18.52.040 for senior housing. 3.4. Applies to 100% affordable housing projects and the residential component of 100% affordable housing mixed-use projects. "100% affordable housing" as used herein means a multiple-family housing project consisting entirely of affordable units, as defined in Section 16.65.020 of this code, available only to households with income levels at or below 120% of the area median income, as defined in Chapter 16.65, except for a building manager's unit. (a)Combining Parking Adjustments Parking reduc ons may be granted for any combinaon of circumstances, prescribed by this chapter, so long as in total no more than a 3060% reduc on of the total parking demand otherwise required occurs, or no less than a 40% reduc on for aﬀordable housing projects (including Single Room Occupancy (SRO) units). [. . .] Allow more flexibility for shared parking arrangements. 33 *NOT YET APPROVED* SECTION 14. Section 18.76.015 (Additional Findings for Specified Retail Uses) of Chapter 18.76 (Permits and Approvals) of Title 18 (Zoning) of the Palo Alto Municipal Code is hereby deleted in its entirety. SECTION 15. Section 16.59.040 (Exemptions) of Chapter 16.59 (Citywide Transportation Impact Fee) of Title 16 (Building Regulations) of the Palo Alto Municipal Code are hereby amended as follows (additions underlined; deletions struck-through; text omitted but unchanged noted by bracketed ellipses): 16.59.040 Exemptions. The provisions of this chapter shall not apply to: (a)City buildings or structures. (b)Public school buildings or structures. (c)Affordable units, either for sale or rental, that exceed the minimum number required for projects under the city's below market rate (BMR) housing program or other provisions of this code, which units are, by recordable means, obligated to be and remain affordable units for a period consistent with the requirements of Section 16.65.075(c) of this code. (d)Day care centers used for childcare, nursery school or preschool education. (e)Accessory dwelling units (ADU). (f)Junior accessory dwelling units (JADU). (g)Retail service, eating and drinking service, personal service, or automotive service when the total additional square footage is 1,500 square feet or less. This exemption shall apply only when the additional square footage of new development does not exceed 1,500 square feet. New development that is larger than 1,500 square feet shall pay a fee for all square footage, including the first 1,500 square feet. (h)(g) New development which is exempt from the fee by virtue of the Constitution of the United States or California or by virtue of other applicable state or federal law. SECTION 16. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 17. The Council finds that the Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the foregoing amendments to reduce retail vacancies will have a significant effect on the environment. Removes subjective findings Add fee exemption for small retail additions, consistent with fee exemptions in Section 16.45.050 and 16.58.030. 34 *NOT YET APPROVED* SECTION 18. This Ordinance shall be effective from the thirty-first day after the date of its adoption. Once effective, this Ordinance shall repeal Ordinance no. 5642. INTRODUCED: PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: __________________________ City Clerk APPROVED AS TO FORM: __________________________ Assistant City Attorney _________________________ Mayor _________________________ City Manager __________________________ Director of Planning and Development Services 35 *NOT YET APPROVED* Exhibit A (Remove Ground Floor (GF) Combining District) Charleston Shopping Center Midtown Shopping District Attachment B: Summary of Draft Ordinance PAMC Chapter/Section # Proposed Amendments Ch. 18.04.030: Definitions Make permanent changes to definitions. Split “Animal Care” definition into two use classifications, based on impact. Split “Eating and Drinking Services” into three use classifications, to create distinct parking requirements, and allow bars without food service. Remove “take out service” as it pertains to food service Relocate “neighborhood-serving” use definitions here Ch. 18.16: Neighborhood, Community, and Service Commercial (CN, CC and CS) Districts Streamline overlapping, confusing, and contradictory use regulations for Midtown and Charleston Shopping Centers. Allow neighborhood-serving offices and residential uses in the Midtown and Charleston Shopping Centers (except along public frontages). Expand allowed uses in the CC and CS districts, including some from the “retail-like” category, and bars with a CUP. Revised permit levels (i.e., by right vs. CUP) to expand by right uses. Ch. 18.18: Downtown Commercial (CD) District Streamline overlapping use regulations. Expand allowed uses, including some from the “retail- like” category, and bars with a CUP. Ch. 18.29 North Ventura Expand allowed uses, including some from the “retail- like” category, and bars with a CUP. Ch. 18.30(A): Retail Shopping (R) Combining District Regulations (Applicable on California Avenue) Ch. 18.30(C): Ground Floor (GF) Combining District Regulations (Applicable in Downtown core) Make permanent 2024 additions to allowed uses. Expanded allowed uses. Remove subjective findings, and Waiver and Adjustments. Allow neighborhood-serving offices, except along University Ave. and California Ave. frontages. Allow medical office, with a retail sales component, on University Ave. and California Ave. Ch. 18.38: Planned Communities (PC) Districts Allow Director authority to interpret list of allowed uses in commercial PCs and allow "similar" uses, except where use is listed as a community benefit. Ch. 18.40.180: Retail Preservation Exempt multifamily residential and office/manufacturing zones from retail preservation regulations. Ch. 18.42: Standards for Special Uses Modify Section 18.42.090 (Alcoholic Beverages) to streamline permitting and apply conditions for bars and restaurants with alcohol service, regarding noise, training, hours of operation, etc. Establish Section 18.42.130 (Animal Care) to create generally applicable conditions for animal care uses, regarding nuisances, drainage, ventilation, waste, etc. Ch. 18.52: Parking and Loading Requirements Establish blended parking rate for the California Avenue Parking district (similar to Downtown). Modify ratios for eating and drinking services. Modify thresholds for when a transportation demand management (TDM) program is required. Increase shared parking opportunities. Ch. 18.76.010 & 18.77.060 Process and Administration (and throughout PAMC) Replace all references from CUP to Administrative Use Permit (AUP) to better reflect the primarily administrative nature of this permit process. Ch. 16.59: Citywide Transportation Impact Fee Exempt small retail uses from the citywide transportation fee, consistent with other fee exemptions, in Sections 16.45.050 and 16.58.030. 9 3 2 5 Attachment C: Overlapping Use Regulations Applicable to Charleston and Midtown Shopping Centers This document analyzes four sets of use regulations and size limitations that apply to the Charleston and Midtown Shopping Centers. The -GF combining district use regulations stipulate that they supersede all other use regulations, so columns two through four become moot. Ground-Floor Use Regulations 18.16.040 Table 2 Land Uses CN Use Regulations 18.16.040 Table 1 and CN Maximum Size 18.16.060 Table 5 Charleston Shopping Center Midtown Shopping Center GF Combining District (18.30(C)) (Ground-Floor Use Regulations)Comments EDUCATIONAL, RELIGIOUS, AND ASSEMBLY USES Business and Trade Schools X X X CUP Private Educational Facilities CUP CUP CUP X Private Clubs, Lodges, or Fraternal Organizations CUP CUP CUP X Inconsistent with same use category under “Recreation Uses” below OFFICE USES Medical Offices P (<5,000 sq. ft.) - Charleston CUP – Midtown X (except see below) CUP (<2,500 sq. ft. only) X Professional and General Business Offices P (<5,000 sq. ft.) CUP (>5,000 sq. ft.)X X (except see below)X Neighborhood-serving offices (including medical offices, professional offices, travel agencies, and insurance agencies) P P (<2,500 sq. ft.) CUP (>2,500 sq. ft.) not to exceed 7,850 sq. ft X X Professional offices, travel agencies, and insurance agencies only P X CUP not to exceed 7,850 sq. ft X Confusing and inconsistent across subsections 9 3 2 5 Ground-Floor Use Regulations 18.16.040 Table 2 Land Uses CN Use Regulations 18.16.040 Table 1 and CN Maximum Size 18.16.060 Table 5 Charleston Shopping Center Midtown Shopping Center GF Combining District (18.30(C)) (Ground-Floor Use Regulations)Comments RECREATION USES Commercial Recreation P (<5,000 sq. ft.) CUP (>5,000 sq. ft.) CUP CUP P (<5,000 sq. ft.) CUP (>5,000 sq. ft.) Inconsistent permit thresholds Outdoor Recreation Services CUP CUP CUP X Private Clubs, Lodges, or Fraternal Organizations X CUP CUP X Inconsistent across regulations and with same use category under “Education, Religious, and Assembly Uses” above RETAIL USES Eating and Drinking Services, excl. drive-in and take- out services P (<5,000 sq. ft.) CUP (>5,000 sq. ft.)P P P (allows drive-ins and take-out) Inconsistent permit thresholds Retail Services, excl. liquor stores P (<15,000 sq. ft.) CUP (>15,000 sq. ft.) CUP (>20,000 sq. ft.) for grocery stores P P P Inconsistent permit thresholds Liquor stores CUP CUP CUP X SERVICE USES X Ambulance Services CUP CUP CUP X Animal Care, excl. boarding and kennels P P P X Automobile Service Stations CUP CUP CUP X Automobile showroom X X X P GF is most permissive Convalescent Facilities CUP CUP CUP X 9 3 2 5 Ground-Floor Use Regulations 18.16.040 Table 2 Land Uses CN Use Regulations 18.16.040 Table 1 and CN Maximum Size 18.16.060 Table 5 Charleston Shopping Center Midtown Shopping Center GF Combining District (18.30(C)) (Ground-Floor Use Regulations)Comments Day Care Centers P P P CUP Banks and Financial Services CUP CUP CUP X Retail financial services, except drive-in services; P P P P Not explicitly listed in CN, Charleston or Midtown, but interpreted by staff as retail/personal service General Business Services X X X CUP GF is most permissive Also see “Neighborhood Business Services” below Hotels X X X P GF is most permissive Mortuaries CUP CUP CUP X Neighborhood Business Services P (<3,000 sq. ft.) CUP (>3,000 sq. ft.)P P X Inconsistent permit thresholds (18.04 Definition limits use to 2,500 sq. ft.) Personal Services P (<3,000 sq. ft.) CUP (>3,000 sq. ft.)P P P Inconsistent permit thresholds Pet Grooming Services X X X P GF is most permissive Reverse Vending Machines P P P X Theaters P P P P Not explicitly listed in CN, Charleston or Midtown, but interpreted as by staff as retail/personal service Travel agencies P P P P Not explicitly listed in CN, Charleston or Midtown, but interpreted as by staff as retail/personal service 9 3 2 5 2657 Spring Street, Redwood City, CA 94063 | thehayesgroup.com 650.365.0600 | 350 Sansome Street, Suite 750, San Francisco, CA 94104 Architecture & Interiors March 25, 2026 Planning Commission Chair Aikin and fellow Planning Commissioners SENT VIA EMAIL Planning.Commission@paloalto.gov jennifer.armer@paloalto.gov Re: Agenda Item 3 PTC Meeting March 25, 2026, Dear Chair Aikin and fellow commissioners, As you evaluate and discuss the staff recommendations regarding policies to increase retail vitality in the city, I would like to address policies related to historic properties which appear to have been overlooked. Historic properties are a treasure. We want to preserve them as part of the fabric and history of Palo Alto. These properties are often building types that are unusual or present with architectural nuances associated with their historic use. Examples include historic churches, civic buildings, and old theaters. To keep these buildings viable and part of the community after a change from their original use there needs to be flexibility in permitted uses. Having these buildings occupied with tenants is imperative to the financial health of the maintenance of the historic building and its ongoing disposition. And, having them occupied increases the vitality of the neighborhood. The Palo Alto Comprehensive plan has policies and programs that address this need for flexibility and historic preservation. Policy L-7.8 Promote Adaptive reuse of historic buildings. Program L7.8.1 Promote and expand available incentives for the retention and rehabilitation of buildings with historic merit in all zones and revise existing zoning and permit regulations to minimize constraints to adaptive reuse. Policy L-7.9 Allow compatible nonconforming uses for the life of historic buildings. These excerpted policies and programs around historic properties needs to be addressed in these revised ordinances under consideration. 2657 Spring Street, Redwood City, CA 94063 | thehayesgroup.com 650.365.0600 | 350 Sansome Street, Suite 750, San Francisco, CA 94104 Architecture & Interiors An example of one historic property, a Category I historic property, the highest historic integrity, is the Varsity Theater. Since Hana Haus moved out this building has about 2/3 of the ground floor vacant. Blu Bottle continues to operate. The theater is a perfect example of an historic building with an architectural nuance or impediment to the permitted uses under PAMC in the GF overlay (retail or retail like uses). Entering from University Avenue, there is a ninety-foot-long courtyard before there is any entry to the building. The frontage along University Avenue is only 35 feet but the property widens at the rear to three times this distance where there are no street facing walls or windows facing the sidewalk. Retailers are not interested in this building because of this lack of frontage, the size of the ground floor and the courtyard in front and I believe this is a perfect example of where there needs to be flexibility in the permitted uses as envisioned in Program L7.8.1. For the Varsity Theater, allowing office as a permitted use in the non-street facing rear portion of the building while requiring retail in the portion where Blu Bottle is located will open up the options for tenants. It is better for Palo Alto, and specifically the University Avenue corridor, to have all buildings occupied but especially these beautiful historic buildings in our downtown. Allowing flexibility in the permitted uses for these properties will allow them to be occupied by different uses that will all add to the vitality of the downtown with more people walking the streets and alleyways, supporting our retailers and restaurants. Please consider tonight a Retail Vitality Policy that encourages adaptive reuse and flexibility in permitted uses for historic properties. Yours truly, Ken Hayes, AIA Principal Attachment F: March 25, 2026 PTC Comments on the Draft Ordinance and Staff Responses This table identifies specific issues where the PTC requested further consideration and provides staff’s responses, including changes to the draft ordinance in Attachment A. PTC Comments Changes to Draft Ordinance Ch. 18.30(A) & Ch. 18.30(C): Contemplation about which types of medical office uses might be appropriate on California and University Avenues; ultimately, the PTC deferred to the City Council which types of medical and medical office uses may be appropriate. For further discussion by the City Council. See discussion in the staff report for options and staff recommendations regarding medical offices. Ch. 18.52: Concerns about streamlining office parking ratios across districts. Removed proposed changes to office parking ratios. Ch. 18.38: Concerns about effects that allowing flexibility in Planned Communities (PC) zones could have on community benefits. Specified that uses identified as being part of the PC’s community benefit (e.g., grocery store) are excluded from being changed to a similar use. Ch. 16.59: Concerns about small retail additions piecemealing development proposals to avoid impact fees. No change proposed since this is not anticipated to be a major issue, but would require staff resources to track. If the Council would like to regulate piecemealing, the ordinance could include a trigger date (e.g., as of May 1, 2026). Ch. 18.40.180: Remove retail preservation modifications to the ROLM and GM-zoned parcels in the San Antonio Road corridor; allow the San Antonio Road Area Plan to determine appropriate regulations in that location. Revised retail preservation exemptions to exclude parcels within the San Antonio Road Area Plan area, while that planning effort is still underway. Various Sections: Minor edits and clarifications to definitions, standards for alcohol sales and service, and other zoning text. Revised. From:Alex Giovannotto To:Council, City Subject:Fwd: Letter Submission re: Item #15 (Retail Vitality and Zoning) Date:Friday, May 15, 2026 12:34:32 PM Attachments:Letter re Item #15 (Retail Vitality and Zoning) - Council Meeting 5_18_26.pdf CAUTION: This email originated from outside of the organization. Be cautiousof opening attachments and clicking on links. i Hi, I also sent this email with attached letter to the City Clerk's office with my Public Comment Letter on Item #15 for this Monday's (18th) meeting --- could you please confirm that the letter will be in Monday's City Council packet? Thanks, --Alex Alex Giovannotto Vittoria Management, Inc. Direct: 650-980-1900 Main: 650-328-7480 ---------- Forwarded message --------- From: Alex Giovannotto <alex@vrent.com> Date: Fri, May 15, 2026 at 9:51 AM Subject: Letter Submission re: Item #15 (Retail Vitality and Zoning) To: <city.clerk@paloalto.gov> Cc: Armer, Jennifer <Jennifer.Armer@cityofpaloalto.org> Hi City Clerk's Office, Please find attached my public comment letter regarding Item #15 (Retail Vitality and Zoning) for this Monday's (May 18th) City Council Meeting. Thank you, --Alex Giovannotto This message needs your attention This is their first email to you. Mark Safe Report Powered by Mimecast (continued on next page) Dear Members of the Palo Alto City Council, My family are Palo Alto residents and own a long-vacant building at 451 University Avenue, at the far end near Kipling Street. We finally have a great prospective tenant to fill this space that offers AI-based health screening. This is a modern personal service that has proven highly popular among residents of downtown London and Stockholm, and soon in New York City. However, presently in Palo Alto, our University Avenue (GF) zoning has not kept pace with newer personal service uses, and as a result, their service does not fit into any of the definitions. Please consider the following narrow and precise definition as the 10th entry in the “Personal Services” list for the University Avenue (GF) District [the underlining highlights the operative terms]: Health screening, including biometric body scanning, imaging, or other health testing services directly serving the public, so long as no medical treatment and not primarily fulfilling outside medical orders. The Existing Permitted “Personal Service” Uses in the GF Zone: For context, below are the current allowed Personal Services in the University Avenue GF zone (items A - I), with the addition of this new item (item J): (114) “Personal service” means a use providing services of a personal convenience nature, and cleaning, repair or sales incidental thereto, including: (A) Beauty shops, nail salons, day spas, and barbershops; (B) Self-service laundry and cleaning services; laundry and cleaning pick-up stations where all cleaning or servicing for the particular station is done elsewhere; and laundry and cleaning stations where the cleaning or servicing for the particular station is done on site, utilizing equipment meeting any applicable Bay Area Air Quality Management District requirements, so long as no cleaning for any other station is done on the same site, provided that the amount of hazardous materials stored does not at any time exceed the threshold which would require a permit under Title 17 (Hazardous Materials Storage) of this code; (C) Repair and fitting of clothes, shoes, and personal accessories; (D) Quick printing and copying services where printing or copying for the particular service is done on site, so long as no quick printing or copying for any off-site printing or copying service is done on the same site; (E) Internet and other consumer electronics services; (F) Film, data and video processing shops, including shops where processing for the particular shop is done on site, so long as no processing for any other shop is done on the same site; (G) Art, dance or music studios intended for an individual or small group of persons in a class (see “commercial recreation” for other activities); and (H) Fitness and exercise studios, or similar uses, in a space having 5,000 square feet or fewer of gross floor area (see “commercial recreation” for uses exceeding 5,000 square feet). (I) Learning centers intended for individual or small group settings, including tutoring, standardized test preparation, language classes, after-school programs, cooking classes, and similar uses. (J) Health screening, including biometric body scanning, imaging, or other health testing services directly serving the public, so long as no medical treatment and not primarily fulfilling outside medical orders. WHAT IS AI-BASED HEALTH SCREENING? • Customers walk in and receive a full body scan using the latest visual scanning technology • A massively detailed 3D model of your body is generated • Their AI-based software analyzes the model and a staff member with proper medical training explains the results • If a previously unknown health concern is discovered, on exit the customer is handed clear documentation to bring to their preferred healthcare provider • Total time: in-and-out in less than an hour WHY HAS AI-BASED HEALTH SCREENING BECOME SO POPULAR? • This new AI-technology works very well: About 1 in 10 tests discovers a previously unknown health concern. In particular, the tech is amazing at detecting early-stage skin cancer. • They have solved the historic barriers to mass participation in preventative health: The service is non-invasive, convenient, priced reasonably, and delivered in an attractive, welcoming facility. • In Europe, they have already performed over 10,000 AI-based health screenings. WHAT ARE THE ECONOMIC VITALITY BENEFITS? This service would advance the economic vitality of the University Avenue (GF) zone by strongly aligning with key objectives: • Showcase high technology: As the birthplace of Silicon Valley, Palo Alto should lead, not be left behind, in the new wave of technology-based personal services offerings. • High pedestrian activity: Filling this long empty space with a very popular service would be a major boost to foot traffic and dynamism at University Avenue’s sleepy far east end. • Regional draw: This unique flagship service will draw customers from across the Bay Area, many who have not experienced University Avenue’s offerings for some time. • Evening vitality: Their operating hours and demand for the service will ensure strong pedestrian traffic from morning through the evening. • Façade and Pedestrian Visual Experience: Their beautiful, transparent, high-tech façade design would be a fine addition to the University Avenue streetscape. I thank you for the effort to modernize the GF zoning code, and for the outreach to the business community for ideas to bring enhanced vitality to downtown Palo Alto. Sincerely, Alex Giovannotto May 18, 2026 www.paloalto.gov RETAIL VITALITY ORDINANCE City Council 2 BACKGROUND 2023 - 2024: PTC Retail Ad Hoc Committee (4 Meetings) 2023 - 2024: PTC Hearings (6 Meetings) Sept 2024: Council Retail Committee Recommended Amendments Dec 2024: City Council Adopted Interim Ordinance Streetsense and Michael Baker International Reports Provide Background Data and Analysis 3 INTERIM ORDINANCE ●Expanded permissible uses for ground floor spaces, including: ○Personal services, pet grooming, financial institutions, automobile showrooms, and other “retail-like” uses. ●Reduced threshold for waivers/adjustments to use regulations. ●Modified formula retail definition to allow larger enterprises on California Avenue. ●Sunsets December 31, 2026. 4 CURRENT PROCESS October 29, 2025 PTC Study Session January 22, 2026 Council Retail Committee May 18, 2026 City Council Hearing March 25, 2026 PTC Hearing December 31, 2026 Interim Ordinance Sunsets we are here 5 OVERVIEW Intent: ●Codify the interim ordinance. ●Reduce ground-floor vacancies. ●Encourage vibrancy in the City’s commercial areas. Summary of Ordinance: ●Allow a broader range of retail, retail-like, and other commercial uses. ●Reduce confusion from overlapping/conflicting regulations. ●Reduce subjectivity, reinforce district purposes, and add standard conditions. ●Streamline permit approvals. 6 EATING & DRINKING SERVICES Use Classification Description Permit Allowed Districts Minimum Parking Eating and Drinking, Full Service Table service, seating P All commercial districts 1 space/150 sf Eating and Drinking, Limited Service Ready to eat, limited seating P 1 space/250 sf Bars Alcohol service, without food service CUP CD(C), CC, CC(2), CS, -R, -GF, NV-MXH 1 space/150 sf New New 7 OFFICES & MEDICAL OFFICES ●Allow “neighborhood-serving” offices in Downtown and California Avenue areas, in rear of tenant spaces or fronting side streets. ●Allow medical offices, with on-site retail, on University and California Avenues (with CUP). ●Require design standards and CUPs for large spaces. ●Simplify office use restrictions. 8 MIDTOWN AND CHARLESTON SHOPPING CENTERS ●Streamline use regulations into one use table to eliminate confusion and inconsistencies: ○Utilize CN use table, with footnotes ○Remove -GF combining district designation ●Allow residential uses on upper floors and behind retail. ●Limit office to “neighborhood serving” uses. ●Expand allowed uses, including retail-like. 9 STREAMLINE PERMITTING ●Shift certain conditionally permitted uses to permitted uses (CUP → P). ●Allow Director to interpret list of allowed uses in commercial PCs and allow "similar" uses. ●Replace subjective findings and waiver/adjustments, with expanded uses and standard conditions. ●Replace “Conditional Use Permit” with “Administrative Use Permit” to acknowledge review and approval by staff (i.e., name change, not process change). 10 PARKING ●Establish blended parking rates for the California Avenue Parking district. ●Modify thresholds for when a transportation demand management (TDM) program is required (e.g., exempt small retail additions) ●Increase shared parking opportunities. 11 Exempt non-retail zoning districts: ●Multi-family residential zones: RM-30, RM-40, NV-R3, NV-R4 ●Office/manufacturing zones: ROLM, ROLM(E), RP, RP(5), GM (except within the San Antonio Road Area Plan area) RETAIL PRESERVATION ORDINANCE 12 STAFF RECOMMENDATION Adopt an ordinance to amend various sections of Titles 16 and 18 of the Palo Alto Municipal Code and the Zoning Map to implement retail vitality measures related to Comprehensive Plan policies and the City Council's 2025 Enhance Business Vibrancy Priority.