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City Council (2017-02-07)City Council Study Session February 7, 2017 Downtown Land Use and Retail Incentives Background 2007 Retail: 29% (64K) Restaurant: 28% (61K) 2015 Restaurant: 41% (95K) Retail: 23% (52K) Background March 5, 2013 –Council Study Session (mix of uses) July 16, 2013 –Council Study Session (zoning amendment) February 17, 2015 –Council Study Session (mix of uses follow up) June 16, 2015 –Council Study Session (mix of uses follow up) February 23, 2016 | March 15, 2016 -Planning Commission and City Council consideration of an ordinance to require CUPs for new restaurants. Council direct staff to return with incentives and other options to consider to encourage retail. Expand Downtown Use Options C-3 Zoning District has the most restricted listing of allowable land uses of the City’s commercial zoning districts. Consider allowing additional land uses, such as: •Studios (e.g., yoga, Pilates, etc.) with a retail component •Retail Medical (e.g., optometrist with retail eyewear) •Winery tasting room •Specialty/craft liquor stores •Public-serving office •Pet daycare and/or grooming •Designer Studios Regulatory Tools •Create an "Administrative Use Permit" process for new restaurants •Provide the same discretionary control over new restaurants, but at quarter the cost and half the time of a CUP •Eliminate Parking Exception for restaurants •Reduce seating capacities to create greater parity with non- Downtown restaurants •Reinstate Parking in-Lieu Fee •Put a price on the parking demand generated by restaurants Encourage Expansion of Retail •Restrict the FAR "bonus" for additions to non-restaurant uses •Offer no-cost building plan check services for retail "tenant improvement" permits •Allow outdoor merchandise display without a permit •Provide assigned parking for retail employees (in public garages) •Install wayfinding signage to guide visitors within the Downtown Economic Development Tools •Support active recruitment of major retailers by Economic Development staff •Allow retailers to promote their businesses on the City’s "Economic Development" website •Explore a sales tax rebate program… Vacaville Sales Tax Rebate Program In order to combat local sales tax leakage, the City of Vacaville created a Retail Incentive Program. The purpose of the Retail Incentive Program is to attract “unique businesses” to leverage the strengths of the City’s retail areas with public sector support. This program is meant to attract new investment dollars by retailers that are not currently serving the area. This program is intended to use sales tax rebate as the incentive. Conclusion and Council Direction Expand Downtown Land Use Options Regulatory Tools:Create admin use permit for new restaurants, eliminate parking exception, reinstate parking in-lieu fee Retail Incentives: Restrict FAR “bonus,” no-cost TI permits, merchandise display w/o permit, assigned retail employee parking, installation of wayfinding signage Economic Development Tools: Support active recruitment of retailers, allow promotion of EconDev website, explore a sales tax rebate program