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HomeMy WebLinkAboutStaff Report 2606-6436CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, June 15, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     21.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) as Recommended by the Economic Development Committee. 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. CITY COUNCIL Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: June 15, 2026 Report #: 2606-6436 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) as Recommended by the Economic Development Committee. 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 The Economic Development Committee and staff recommend 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. DISCUSSION 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; 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. City Council Economic Development Committee Recommendation On June 3, 2026, the City Council Economic Development Committee made a unanimous motion to recommend that the City Council adopt the draft ordinance, with the following modifications: Allow health screening uses in the definition of personal services, which includes activity such as biometric body scanning, imaging or other health testing not intended to fulfill outside medical orders Remove a provision that would have allowed retail medical on the ground floor of University Avenue – the ordinance does allow neighborhood-serving office on the back half of a University Avenue facing property when accessed from a side street. Additionally, the motion called for referring further discussions of residential uses in the Charleston and Midtown Shopping Centers and additional locations and definitions of medical office uses and personal services to the Economic Development Committee in a future meeting. Staff have revised the draft ordinance in Attachment A to address this motion: 1. Adding health screening to the personal services definition (PAMC 18.04.030(114)); 2. Removing medical office as a permitted use fronting University Avenue (removal of language in previous versions of the draft ordinance under PAMC 18.30(C).020, Table 1); and, 3. Continuing the zoning code prohibition of residential uses in the Charleston and Midtown Shopping Centers (relocating a prohibition formerly in PAMC 18.16.040, Table 2, to PAMC 18.16.040, Table 1, footnote 1). For additional background, analysis, fiscal impact, stakeholder engagement, environmental review details, and an ordinance with annotations explaining the rationale behind substantive changes, see the Economic Development Committee staff report available online here: https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=12046&meetingTe mplateType=2&compiledMeetingDocumentId=19611. ATTACHMENTS Attachment A: 2026 Retail Vitality Ordinance APPROVED BY: Jonathan Lait, Planning and Development Services Director ***NOT YET APPROVED*** 1 0160198_20260604_ay16 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 vitality 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. On June 3, 2026, the City Council Economic Development Committee provided comments and recommended unanimously that the City Council adopt a retail vitality ordinance. I. The City Council now desires to adopt a retail vitality ordinance 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 ***NOT YET APPROVED*** 2 0160198_20260604_ay16 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-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 ***NOT YET APPROVED*** 3 0160198_20260604_ay16 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. [. . .] (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. ***NOT YET APPROVED*** 4 0160198_20260604_ay16 (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. (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. [. . .] (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). ***NOT YET APPROVED*** 5 0160198_20260604_ay16 (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 is provided and the service is not intended to fulfill outside medical orders. [. . .] (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 YET APPROVED*** 6 0160198_20260604_ay16 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. [. . .] (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; ***NOT YET APPROVED*** 7 0160198_20260604_ay16 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. (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 ***NOT YET APPROVED*** 8 0160198_20260604_ay16 LAND USE CN (4) CC, CC(2) CS (4) Subject to Regulations In: RECREATION USES Commercial Recreation CUPP(5) CUPP(5) CUPP(5) 18.40.160 Outdoor Recreation Services CUP CUP CUP RESIDENTIAL USES Multiple-Family P(1) P(1) P(1) 18.16.060(b) and (c) Home Occupations P P P Residential Care Homes P P P RETAIL USES 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 ***NOT YET APPROVED*** 9 0160198_20260604_ay16 LAND USE CN (4) CC, CC(2) CS (4) Subject to Regulations In: Mortuaries CUP P P Neighborhood Business Services P 18.16.060(f) Personal Services P P(6) P 18.16.060(f), 18.40.160 Reverse Vending Machines P P P TEMPORARY USES Farmer’s Markets CUP CUP CUP Temporary Parking Facilities, provided that such facilities shall remain no more than five years. CUP CUP CUP TRANSPORTATION USES Parking as a principal use CUP CUP Transportation Terminals CUP CUP P = Permitted Use CUP = Conditional Use Permit Required (1) Residential is only permitted in the following instances and pursuant to 18.16.060(b) and (c): (i) Aas part of a mixed use development, except on CN sites in the Midtown Shopping District and Charleston Shopping Center; or 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; or (iii) Oon CN or CS sites on El Camino Real; 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 ***NOT YET APPROVED*** 10 0160198_20260604_ay16 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. [. . .] (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 ***NOT YET APPROVED*** 11 0160198_20260604_ay16 LAND USES Charleston Shopping Center Midtown Shopping Center Subject to Regulations in: 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 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 ***NOT YET APPROVED*** 12 0160198_20260604_ay16 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 (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 ***NOT YET APPROVED*** 13 0160198_20260604_ay16 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. (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. ***NOT YET APPROVED*** 14 0160198_20260604_ay16 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 [. . .] 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 ***NOT YET APPROVED*** 15 0160198_20260604_ay16 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: Private Clubs, Lodges, or Fraternal Organizations P P CUP MANUFACTURING AND PROCESSING USES Recycling Centers CUP CUP CUP Warehousing and Distribution CUP OFFICE USES Administrative Office Services P 18.18.060(f) Medical, Professional, and General Business Offices P P P 18.18.060(f) PUBLIC/QUASI-PUBLIC FACILITY USES Utility Facilities essential to provision of utility services but excluding construction or storage yards, maintenance facilities, or corporation yards CUP CUP RECREATION USES Commercial Recreation CUP(3) CUP(3) CUP(3) Outdoor Recreation Services CUP CUP CUP RESIDENTIAL USES Multiple-Family P (1) P (1) P (1) 18.18.060(b) Home Occupations P P P Residential Care Homes P P P RETAIL USES 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 ***NOT YET APPROVED*** 16 0160198_20260604_ay16 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: 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 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 [. . .] ***NOT YET APPROVED*** 17 0160198_20260604_ay16 (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 [. . .] 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 ***NOT YET APPROVED*** 18 0160198_20260604_ay16 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: 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) 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 - ***NOT YET APPROVED*** 19 0160198_20260604_ay16 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: 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 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 ***NOT YET APPROVED*** 20 0160198_20260604_ay16 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: 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) 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 ***NOT YET APPROVED*** 21 0160198_20260604_ay16 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. 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).050(b) Neighborhood-serving offices, except fronting California Avenue. P 18.30(A).050(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 ***NOT YET APPROVED*** 22 0160198_20260604_ay16 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. (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 ***NOT YET APPROVED*** 23 0160198_20260604_ay16 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; (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: ***NOT YET APPROVED*** 24 0160198_20260604_ay16 (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 present when the finding set forth in subsection (b) was made. 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 Neighborhood-serving offices, except fronting University Avenue. P 18.30(C).030(b) 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 ***NOT YET APPROVED*** 25 0160198_20260604_ay16 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. (b) 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 ***NOT YET APPROVED*** 26 0160198_20260604_ay16 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 (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. ***NOT YET APPROVED*** 27 0160198_20260604_ay16 (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. (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. ***NOT YET APPROVED*** 28 0160198_20260604_ay16 (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 (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. ***NOT YET APPROVED*** 29 0160198_20260604_ay16 (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. (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 ***NOT YET APPROVED*** 30 0160198_20260604_ay16 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 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. ***NOT YET APPROVED*** 31 0160198_20260604_ay16 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 [. . .] 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. ***NOT YET APPROVED*** 32 0160198_20260604_ay16 [. . .] 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: (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: ***NOT YET APPROVED*** 33 0160198_20260604_ay16 (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 [. . .] 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 [. . .] [. . .] [. . .] ***NOT YET APPROVED*** 34 0160198_20260604_ay16 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 combina on 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). [. . .] 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 ***NOT YET APPROVED*** 35 0160198_20260604_ay16 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. // // // // // // // // // // // // // // ***NOT YET APPROVED*** 36 0160198_20260604_ay16 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 ***NOT YET APPROVED*** 37 0160198_20260604_ay16 Exhibit A (Remove Ground Floor (GF) Combining District) Charleston Shopping Center Midtown Shopping District