Title
PLN26-0422 - Downtown Commercial Zoning Text Amendment - Public Hearing to consider a Resolution recommending that the City Council adopt Zoning Text Amendments to the Community Commercial (C-C) Zoning District, North Park Street Gateway (NP-G) Zoning District, and related sections in the municipal code to clarify, simplify, and streamline the entitlement processes for retail, personal service, office, and other commercial uses as part of a vacancy reduction strategy for the Park Street and Webster Street commercial corridors. CEQA Determination: Pursuant to CEQA Guidelines sections 15183, the proposed zoning text amendments are consistent with the 2040 General Plan Environmental Impact Report certified pursuant to the California Environmental Quality Act on November 30, 2021 (State Clearinghouse #2021030563).
Body
To: Honorable President and Members of the Planning Board
From: Abby Thorne-Lyman, Acting Director of Planning, Building and Transportation
EXECUTIVE SUMMARY:
On July 13, 2026, the Planning Board held a workshop for the Downtown Commercial Zoning Text Amendment project, where staff introduced a plan to simplify and streamline entitlement processes for commercial uses in the Park and Webster Street corridors and allow more uses by right. The staff report for the July workshop linked below describes the context and need for the zoning text amendments and identifies key issues that the Planning Board considered. The Board held a public hearing, discussed the options, and provided feedback.
Staff have taken that feedback and drafted zoning text amendments for the Planning Board to consider. The proposed amendments are described in detail in the summary provided as Exhibit 1, which outlines the current regulations, the proposed changes, and comments received. The complete zoning text amendments in strikeout/underline format can be found in Exhibit 2.
Staff recommend that the Board adopt a resolution endorsing the amendments for City Council approval (Exhibit 3). Staff will incorporate any recommended modifications into the report to the City Council.
BACKGROUND:
In January, the Base Reuse and Economic Development Department (BRED), in partnership with the Planning, Building, and Transportation Department (PBT), initiated an effort to review the C-C and NP-G zoning districts to determine if the zoning regulations might be contributing to the number of vacant storefronts on Park and Webster, the city’s two important “main streets.”
Staff convened 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 met three times, on February 23rd, April 23rd, and June 24th, 2026. At the meetings, staff introduced a plan to update the C-C and the NP-G zoning districts and posed questions to the working group about how certain uses should be regulated, and whether some uses that currently require use permits could be allowed by right. The working group provided feedback on a variety of issues, which helped staff focus their recommendations to the Planning Board.
On July 13, 2026, the Planning Board held a public workshop where staff introduced the project to the Board and the community. The staff report for the July workshop linked below describes the context and need for the zoning text amendment, identifies key initial issues for discussion, and summarizes comments received from the working group. The agenda packet can be found at the following link:
<https://alameda.legistar.com/LegislationDetail.aspx?ID=8127113&GUID=1318F898-8B26-400D-99BB-7C652079A84F&Options=&Search=>
Staff presented the Board with a set of recommendations intended to lower barriers to new businesses and fill vacancies by expanding the range of uses permitted by right in the Park and Webster Street corridors. Staff reviewed the regulations for offices, health clinics, grocery stores, gyms, personal services, and commercial recreation. The Board held a public hearing, discussed the options, and provided feedback. The Planning Board’s feedback guided staff in preparing the proposed draft zoning text amendments.
During the July Planning Board workshop, the Economic Development Department summarized a survey it had conducted with owners of long-vacant buildings and lots. The survey found there was a 12% vacancy rate in the Webster Street commercial district and a 9% vacancy rate in the Park Street area due to a wide range of factors including the 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 condition of certain vacant buildings. Although zoning regulations are just one of many factors contributing to long-term vacancies, staff advised that it is worth evaluating the zoning regulations and exploring ways to reduce barriers to entry for businesses looking to locate on Park or Webster Streets.
After the July Planning Board workshop, staff were able to further evaluate the downtown vacancy locations and developed the map provided as Exhibit 4. The map shows that 77% of the vacancies in the two districts are in commercial spaces that front directly on Webster and Park Streets, including 92% of the Webster Street vacancies fronting on Webster Street. This concentration of vacancies on Webster and Park was taken into consideration as staff evaluated how to regulate certain uses within the ground-floor spaces. Staff decisions were guided by the primary objectives identified by the downtown vacancy effort to eliminate vacant storefronts, reactivate the two downtown areas by incentivizing diverse uses, and reduce regulatory constraints. Staff recommendations try to balance feedback received while prioritizing zoning code changes that would fill these ground-floor vacancies and minimize restrictions on uses in these spaces.
DISCUSSION:
The zoning for the downtown commercial areas includes the C-C District, which governs the Webster Street commercial corridor and Park Street south of Lincoln Avenue. The NP-G District governs 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 proposed zoning text amendments are to:
1. Reduce storefront vacancies.
2. Identify regulations that may be creating unnecessary costs, delays, 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 needs.
4. Modernize, clarify, and simplify the code.
Staff recommend the zoning text amendments described in Exhibit 1 to help streamline, clarify, and simplify the approval process for certain commercial uses on Park and Webster Streets. The amendments focus on reducing the number of discretionary permits, particularly use permits, which tend to impose additional costs, time, and/or uncertainty on prospective businesses. Allowing more businesses by right would help meet the Citywide goal of reducing vacancies on the two corridors.
The following list summarizes the overall changes:
• Permit a broader range of uses by right in the Park and Webster Street commercial corridors and remove requirements for use permits for certain uses to streamline business set-up and reduce vacancies.
• Make the regulations for the portions of Park Street north and south of Lincoln Avenue more consistent with one another.
• Update definitions of uses to modernize and clarify the code and facilitate administration. For example, replace lists of specific store types (e.g., toy store, coin store, camera store) with more comprehensive land-use categories (e.g., general retail sales).
• Make organizational changes in AMC 30-2 Definitions, such as grouping related uses for easier comparison.
Since the Board workshop in July, staff have taken the Board’s comments into consideration:
• Clarify the definition of “health clinic.”
• Establish small commercial recreation establishments (5,000 square feet or less) by right, while larger ones (more than 5,000 square feet) would require a use permit.
• Allow personal services by right while setting a size threshold of 30,000 square feet for large gyms.
• Add artist’s studios/maker spaces as uses permitted by right.
• Maintain use permit requirements for assembly uses.
• Include window transparency requirements to maintain pedestrian-oriented, vibrant storefronts.
• Refine regulations for grocery and convenience stores and accessory alcohol sales.
• Adjust standard business hours to reflect the needs of businesses and avoid the need to obtain a use permit for early-morning and weekend operations.
Some Board members expressed concerns with office space being allowed by right within ground floor spaces fronting directly onto Park and Webster Street. Staff evaluated the Board’s concerns along with the vacancy rate information discussed above and shown in Exhibit 4. Staff are proposing the previous recommendation to allow offices under 4,000 square feet by right because 77% of the vacancies in the downtown districts include ground-floor commercial spaces that front directly onto Park and Webster. Changing the zoning to allow smaller office sizes by right in these areas will help the City move towards meeting the objectives of this effort: eliminating vacant storefronts, reactivating the two downtown areas by incentivizing diverse uses, and reducing regulatory constraints. In addition, these smaller spaces tend to attract pedestrian-oriented office tenants serving the public's personal needs, such as accountants, real estate agents, travel agents, architects, dentists, and optometrists.
Conclusion
After considering comments received from the three subcommittee meetings and one Planning Board workshop, staff recommends that the Planning Board adopt the proposed resolution, including the findings for zoning text amendment approval outlined in AMC 30-22.5, and recommending that the City Council approve the proposed amendments to the C-C and NP-G Districts, and related amendments to the Ordinance, provided in strikeout/underline format in Exhibit 2. After the Planning Board makes a recommendation to the City Council, staff will present the Zoning Text Amendment proposal to the City Council for adoption.
PUBLIC NOTICE
A public notice was published in the Alameda Journal on August 21, 2026, and September 4, 2026, in compliance with public noticing requirements. In addition, the City has issued a news release for the project which was also posted on the City website and social media to inform the public. The agenda was posted on the City website and made available to the public 10 days prior to the public hearing date.
ENVIRONMENTAL REVIEW
Pursuant to CEQA Guidelines sections 15183, the proposed Zoning Text Amendments are consistent with the 2040 General Plan Environmental Impact Report certified pursuant to the California Environmental Quality Act on November 30, 2021 (State Clearinghouse #2021030563).
RECOMMENDATION
Conduct a public hearing and adopt a resolution making a recommendation to Council that it adopt the Downtown Commercial Zoning Text Amendments as presented in the draft ordinance and find that the ordinance is exempt from CEQA.
Respectfully Submitted,
Steven Buckley, Secretary to the Planning Board
By Henry Dong, Planner III
Exhibits:
1. Summary of Proposed Changes & Use Chart
2. Proposed Zoning Text Amendments Strikethrough/Underline
3. Draft Resolution
4. Vacancy Map