Title
PLN26-0422 - Downtown Commercial Zoning Text Amendment Workshop - Public Workshop to discuss draft amendments to the Community Commercial (C-C) Zoning District and the North Park Street Gateway (NP-G) Zoning District to clarify, simplify, and streamline entitlement processes for retail, personal service, office and other commercial uses in the Park Street and Webster Street commercial corridors. No final action on the proposals will be taken at the meeting. A workshop to discuss and evaluate a proposal without taking action on the proposal is statutorily exempt from review under the California Environmental Quality Act Section 15262.
Body
To: Honorable President and Members of the Planning Board
From: Steven Buckley, Secretary to the Board
EXECUTIVE SUMMARY:
The purpose of this study session is to give the Planning Board, the business community, and the public an opportunity to consider potential zoning text amendments to the Community Commercial (C-C) and North Park Street Gateway District (NP-G) zoning districts. The C-C District governs the Webster Street commercial corridor, as well as Park Street south of Lincoln Avenue. The NP-G District governs the segment of Park Street north of Lincoln Avenue. The last comprehensive review and update of the C-C District regulations occurred over 20 years ago, while the last update of the North Park Street regulations occurred over 10 years ago. The objectives of the project are to:
1. Reduce storefront vacancies.
2. Identify regulations that may be creating unnecessary costs, time, and risk for new businesses considering a Park or Webster Street location.
3. Reflect emerging business types and build in flexibility for the code to adapt to future changes.
4. Modernize, clarify and simplify the code.
Staff has identified specific amendments to the C-C District and NP-G District that would streamline, clarify and simplify the approval process for certain commercial uses on Park and Webster streets and might help reduce vacancies on the two corridors.
Staff is requesting that the Planning Board and community review and comment on the proposed amendments. Based on feedback, staff will prepare a set of draft zoning text amendments for the Planning Board to consider in September for recommendation to City Council in the fall. No final action on the amendments is needed or recommended at this time.
BACKGROUND:
In January, the Base Reuse and Economic Development Department, in partnership with the Planning, Building and Transportation Department, initiated a review of the C-C and NP-G districts to determine if the City’s zoning regulations included unnecessary regulations that might be contributing to the number of vacant storefronts on Park and Webster, the city’s two important “main streets.”
Over the course of the review, staff held several meetings with a working group composed of representatives from the West Alameda Business Association (WABA), the Downtown Alameda Business Association (DABA), commercial realtors, architects, and Planning Board members Ruiz and Wang. The working group provided feedback on a variety of issues, which helped staff focus its evaluation and consider a variety of perspectives. A summary of the working group discussions is included as Exhibit 1.
Staff’s evaluation was also informed by the City of Alameda General Plan, which emphasizes the importance of a broad range of services (Policy LU-9) and describes the types of business envisioned for the Park and Webster Street corridors (Policy LU-10).
LU-9 On-Island Goods and Services. Encourage the development of a broad range of commercial businesses and services in Alameda to provide for the diverse needs of the Alameda community and reduce the need to travel off island to acquire goods and services.
LU-10 Park Street and Webster Street: Alameda’s “Main Streets.” Support, promote and enhance Park and Webster Streets as the city’s two iconic and vibrant historic “Main Streets” to provide Alamedans with a broad mix of retail stores, restaurants, entertainment, hospitality, personal and professional services, and transit-oriented mixed-use housing opportunities.
Exhibit 2 includes some information and data related to storefront vacancies on Park Street and Webster Street. Based on the staff survey and conversations with a number of property owners of long vacant buildings and spaces, staff believes there are a wide range of factors that are contributing to vacancies in the commercial districts, including but not limited to changing economics of retail sales, online sales, regional and local economic conditions, local regulations (e.g. zoning, historic preservation and building code requirements), construction costs, and the age, configuration, and/or condition of some long time vacant buildings. Despite the wide range of factors that may be contributing to vacancies, staff does believe that an evaluation of the local zoning code requirements is a worthwhile effort and may lower barriers to entry for Park Street or Webster Street businesses in the future.
The existing C-C and NP-G District regulations can be found at the links below.
C-C District: <https://library.municode.com/ca/alameda/codes/code_of_ordinances?nodeId=CHXXXDERE_ARTIZODIRE_30-4DIUSRE_30-4.9ACOCODI>
NP-G District: <https://library.municode.com/ca/alameda/codes/code_of_ordinances?nodeId=CHXXXDERE_ARTIZODIRE_30-4DIUSRE_30-4.25NOPASTDI>
DISCUSSION:
Draft Zoning Amendments for Planning Board Consideration.
As the primary concerns identified were eliminating vacant storefronts, reactivating the two downtown areas by incentivizing diverse uses and reducing regulatory constraints, staff focused on zoning code changes. Staff identified a number of zoning text amendments intended to clarify and streamline the City’s approval process for prospective businesses interested in opening in the Webster and Park Street business districts. The recommended amendments focus on reducing regulations that impose additional cost, time, and/or uncertainty for prospective retail, entertainment, small office or service businesses.
Replace List of Permitted Stores with List of Permitted Uses.
Currently, the C-C District regulations list types of retail stores (e.g., coin store, toy store, frame shop, clock store, camera store) that are permitted by right. If a prospective retail business is not one of these specific stores, the Code requires a determination of similar use to approve the business. The regulations allow the Planning Director to make the finding but require that “The determination of similar use by the Planning Director shall be included on the agenda for the next available Planning Board meeting and confirmed by the Planning Board. Determinations of similar use are also subject to appeal pursuant to Section 30-25 <https://library.municode.com/ca/alameda/codes/code_of_ordinances?nodeId=CHXXXDERE_ARTIZODIRE_30-25APCARE>.”
Instead of providing long lists of permitted stores, modern zoning codes describe permitted uses in more general terms. This approach allows the code to adapt to changing commercial trends, without the need to update the lists of store types. This approach also minimizes the need for determinations of similar use.
The proposed amendment would replace the list of permitted stores and services businesses with two permitted uses: 1) “general retail sales” and 2) “general personal services” to make the zoning code easier to use and adaptable to future business and consumer trends. If there are particular retail or personal service uses that the City wishes to regulate differently (e.g., tobacco sales, firearm sales, pawn shops), those uses are identified and separately classified.
The proposed definitions read as follows:
General Retail Sales shall mean the retail sale or rental of merchandise not specifically listed under another use classification in establishments with 30,000 square feet or less of retail sales area. Examples include but are not limited to pharmacies, clothing stores, art and office supply stores, hobby shops, party supply stores, jewelry stores, pet supply stores, florists, gift shops, furniture stores, hardware stores, art galleries, antique stores, and bicycle shops.
General Personal Services shall mean the provision of in-person, nonmedical services directly to customers seeking cosmetic services, nonmedical counseling services, document services, or servicing of consumer goods. Examples include but are not limited to hair and nail salons; document services such as printing, notary services, and photograph developing; gyms and athletic clubs; garment services such as tailoring and alterations, laundromats, and drycleaning; and consumer goods repair, such as computer and electronics repair, shoe repair, appliance repair, and furniture restoration.
Note that the 30,000-square-foot limitation distinguishes “general retail sales” from “large-format retail,” which is already defined in the zoning code to mean individual retail stores or shopping centers with over 30,000 square feet of retail sales floor area, which would continue to require a use permit in both the C-C and NP-G districts.
Remove Requirement for Conditional Use Permit for Certain Uses.
A conditionally permitted use is one that the City has determined may be appropriate in a given zone but requires review on a case-by-case basis to determine if the use should be allowed and whether any special conditions should be imposed to ensure that it does not pose a public health, safety or general welfare impact on surrounding properties or the city as a whole.
A conditional use permit (hereafter referred to as “use permit”) adds cost, time and risk for a prospective business. Typically, a use permit costs approximately $3,500 and takes three to five months to process. The applicant does not know whether they will be approved or if any special or expensive conditions of approval will be applied to their business until the end of the permit process. A use permit is a discretionary permit, which is publicly noticed and subject to a judgement by either the Zoning Administrator, Planning Board, or in some cases, the City Council. If the use permit is denied, the applicant is not eligible for a refund of their permit application fees. Therefore, the use permit process can be a deterrent to small- and medium-sized businesses.
Historically, the City has also used the use permit process to discourage certain businesses from locating in a ground floor space. For example, a use may be permitted by right on the second floor but requires a use permit if located on the ground floor. However, this process has led to ground floor vacancies and staff recommends reconsidering the approach.
Given the mixed-use nature of these areas and the close proximity of residential units to commercial properties, staff is recommending that the Planning Board relax the use permit requirement for some uses but retain the requirement for any business proposing to operate after 10 p.m. and any business proposing to conduct operations in outdoor spaces. In these cases, the use may be permitted but a use permit would need to be approved to allow late night operations or the use of an outdoor area for business purposes (e.g. seating, entertainment, etc.) so that specific conditions of approval could be added, and reviews could be conducted.
Retail Sale of Used Goods. Currently, the C-C District requires a use permit for “used household articles and clothing stores.” AB 2632 (2024) prohibits local agencies from treating thrift stores differently from non-thrift retail stores engaged in the sale of similar items for purposes of zoning, development standards, or permitting. Staff therefore recommends eliminating the use permit requirement for used household articles and clothing.
Grocery Stores and Convenience Stores. Grocery stores and convenience stores currently require a use permit in both the C-C and NP-G districts. Historically, these use permit public hearings have focused on alcohol sales and late-night operations. It is common that most grocery stores will offer a selection of alcohol as an accessory use as opposed to a liquor store that primarily sells alcohol. Staff recommend that the use permit requirement be removed, provided that the grocery store or convenience store does not operate beyond 10 p.m. and limits its sale of alcoholic beverages to beer and wine which is a different type of ABC license from selling distilled spirits. If late night hours and/or sale of distilled spirits is proposed, then a use permit would still be required for those activities. Alternatively, the Planning Board could require a use permit application for the sale of any alcoholic beverages at a convenience store or grocery store or limit the percentage of floor area dedicated to alcohol sales.
Commercial Recreation. Consumer habits have seen a big shift, with spending on recreation and experiences outpacing traditional shopping for material goods. New commercial entertainment establishments, including immersive entertainment and mystery/escape rooms, have been popping up in the Bay Area. Commercial recreation uses are currently defined in the AMC as follows:
Commercial recreation includes recreational uses such as skating rinks, bowling alleys, arcades, paintball, children's playland, rock climbing, miniature golf and other similar establishments of an entertainment or amusement nature that are conducted within a building for commercial purposes.
Currently, commercial recreation requires a use permit in both the C-C and NP-G districts. Staff recommend removing the use permit requirement and allowing commercial recreation by right. Staff also recommend adding examples of modern commercial recreation uses to the definition.
Billiards. Staff recommends adding Billiards as a form of Commercial Recreation but the use has been within the Adult Entertainment land use category since 1977, which includes “adult book store, adult motion picture theatre, peep show, adult cabaret, pool or billiard establishment, amusement hall or fortune-telling establishment,” per Section 30-9.2. Adult entertainment is not allowed within 500 feet of residentially zoned land, per Section 30-9.4, which effectively rules out all of Webster Street and most of Park Street. Minors less than 18 years in age are also prohibited from entering a billiard parlor, per Section 6-21.2 established in 1935.
Staff suggests that these 50+ year old provisions are out of date and should be revised to permit billiards as a permitted commercial recreation activity.
Specific Personal Services. Currently, there are a number of specific personal service uses that require use permits that staff believes could be reclassified as permitted uses. In many cases, the Code allows the use by right on upper floors, but requires a use permit on the ground floor to discourage the use from occupying ground floor spaces that would be well suited for retail uses. Staff is questioning this approach given the number of vacant ground floor retail spaces and the fact that few if any upper floor spaces are accessible to the disabled, due to the lack of elevators in most Park Street and Webster Street commercial buildings. We also recommend aligning the Webster and Park Street regulations.
Nail Salons and Hair Styling are permitted by right on Park Street but require a use permit on Webster Street. On North Park Street, they are permitted by right on upper floors but require a use permit on the ground floor. Staff proposes allowing salons by right on both ground and upper floors in both districts.
Massage businesses are permitted on upper floors but require a use permit on the ground floor in both districts. It is important to note that massage establishments are also subject to the regulations of AMC Chapter 6-46, which requires them to provide a state issued license or obtain a special massage establishment permit that includes a background check and review by the Police Department. Staff recommends permitting massage establishments by right on both ground and upper floors in both districts, subject to their compliance with Chapter 6-46.
Tattoo Parlors are currently permitted on upper floors and prohibited on ground floors on both Park and Webster Street in the C-C District. Tattoo parlors are not permitted in the NP-G District. Staff proposes that tattoo parlors could be permitted on the ground and upper floor in both districts.
Athletic clubs and gyms require a use permit in the C-C District. Athletic clubs and gyms are permitted on upper floors but require a use permit on the ground floor in the NP-G district. Staff recommends classifying athletic clubs and gyms as personal services and permitting them by right on both ground and upper floors in both districts.
Upholstery shops currently require a use permit in the C-C District. Staff recommends classifying repair of garments and household goods as general personal services and permitting them by right.
Medical Facilities. “Medical facilities” currently require a use permit in C-C District, while “health clinics” require a use permit in the NP-G District. The term health clinics is defined but “medical facilities” is not defined in the AMC, so it’s unclear what it encompasses. Staff recommends clarifying definitions that distinguish medical facilities as either outpatient health clinics or inpatient hospitals. Staff recommends permitting health clinics by right in both districts and retaining the use permit requirements for hospitals (which have inpatient services).
Offices. In the NP-G District, offices are permitted on upper floors but require a use permit on the ground floor. In the C-C District, offices are permitted on upper floors but require a use permit if they occupy the front 50% of a ground-floor space fronting on Park or Webster streets. The implementation of the 50% rule can be confusing and limiting to smaller sized units. Office uses are defined in the AMC as:
Offices, business and professional shall mean offices of firms or organizations providing professional, executive, management, or administrative services, such as architectural, engineering, real estate, insurance, investment, legal, and medical/dental offices. This classification includes medical/dental laboratories incidental to an office use, but excludes banks, savings and loan and check cashing uses.
Staff recommends removing the 50% rule, regulating office use by size, and allowing offices of 4,000 square feet or less by right on the ground floor in both districts. The 4,000-square-foot limit is intended to allow for small service-oriented offices such as architectural, engineering, real estate, insurance, investment, legal, and medical/dental services. Staff recommend maintaining a use permit requirement for offices above 4,000 square feet to ensure that any large office proposed on Park or Webster Street supports the retail commercial environment.
Window Transparency. Window transparency and “window shopping” are critical to successful, pedestrian-oriented commercial districts, as stated in General Plan Land Use Policy LU-28, which reads:
LU-28 Retail Commercial Design. Require that alterations to existing buildings and all new buildings in community commercial districts be designed to be pedestrian oriented and harmonious with the architectural design of the surrounding mixed-use district.
Actions:
c. Pedestrian Orientation. Require building entrances (e.g., the entry to a store, or the lobby entry to an office building) to actively engage and complete the public realm (streets, entry plazas or public open spaces) through such features as building orientation, universal design, build-to and setback lines, facade articulation, ground floor transparency and location of parking.
More recently adopted zoning districts, such as the NP-G and the Alameda Point Zoning District, include provisions requiring window transparency for new buildings (avoiding blank street-facing walls). The NP-G and CC District do not have such a provision for new tenancies within existing buildings. Staff recommends amending the NP-G and C-C district to include language requiring window transparency for all new tenancies, similar to the new building provisions of the NP-G and Alameda Point Zoning Districts. The purpose of this language is to ensure that all uses, even uses that may wish to maintain internal privacy (e.g., massage, health clinic, office, yoga studio) provide an interesting window experience for pedestrians patronizing the district. The draft language is shown below:
Window Transparency. Windows located on the ground floor of exterior walls facing a street shall have transparent glazing, not tinted glass, reflective film, or coating. Windows shall provide unobstructed views into the building (into window displays, or into sales areas, lobbies, reception areas, work areas, or similar active spaces) for a distance of at least five (5′) feet. An exception to the window transparency requirement may be approved if findings are made through Design Review or Use Permit that:
(1) The proposed use has unique operational characteristics with which providing the required window transparency is incompatible; and
(2) Street-facing building walls, or windows, will be designed or treated in a way that creates visual interest at the pedestrian level.
Standard Business Hours. The standard business hours of the C-C District are from 7:00 AM to 10:00 PM, every day. A use permit is currently required for businesses that provide services in the early morning such as breakfast cafes, coffee shops, and gyms. Staff recommends amending the standard business hours to 5:00 AM to 10:00 PM every day so that these early morning operations by right. Staff also recommend adding standard business hours in the NP-G District which currently does not have a provision for business hours.
Noise Standards. Staff is also analyzing amended and updated noise standards which will likely focus on these two areas as well as Alameda Point. As staff does not have the in-house expertise to conduct this analysis, it is procuring a noise consultant to assist. As the noise ordinance is not contained in the City’s zoning code, staff will decouple these projects but will keep the Board informed on the progress.
PUBLIC NOTICE
There are not statutory requirements for noticing a public workshop. The agenda was posted on the City website and made available to the local business community organizations and member of the Working Group.
ENVIRONMENTAL REVIEW
Studies and evaluations are statutorily exempt from the California Environmental Quality Act (CEQA) under Guidelines Section 15262. Final approval of any amendments by the Planning Board and City Council at a future date will be subject to environmental review and the appropriate documentation will be provided at that time depending on the nature of the final amendments.
CLIMATE IMPACT
Increasing the range and diversity of services and products available to the Alameda community in close proximity to their homes may reduce the need for Alameda residents to travel by automobile to other locations in other cities for their retail or service needs.
RECOMMENDATION
At this time, staff is requesting that the Planning Board and community provide feedback to staff on the recommended zoning amendments.
Respectfully Submitted,
Steven Buckley, Secretary to the Planning Board
By Henry Dong, Planner III
Exhibits:
1. Working Group Summary
2. Staff Survey of Vacant Sites