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City Council Staff Report (2020-08-18) City Council Report TITLE: Public Hearing to Consider a City-Initiated Zoning Code Text Amendment to Amend Title 21 and Title 5 of the Campbell Municipal Code to Establish a New List of Allowable Land Uses for the C-3 (Central Commercial District) Zoning District, Including Related Text Corrections and Revisions. (Ordinance / Roll Call Vote) RECOMMENDED ACTION The Planning Commission recommends that the City Council take the following action: Take first reading and introduce an ordinance to amend Title 21 and Title 5 of the Campbell Municipal Code. ENVIRONMENTAL DETERMINATION The Planning Commission recommends that the City Council find that the proposed ordinance is Categorically Exempt from CEQA under Section 15061.b.3 which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. DISCUSSION Background: The City Council introduced this ordinance at its meeting of February 18, 2020 by a 4-1 vote (Council Member Gibbons voting no). Prior to the formal adoption at the following March 3, 2020 meeting, an error in the draft ordinance was identified by staff. This required rescheduling of the public hearing so that the ordinance could be reintroduced.1 However, the March 16, 2020 Shelter-in-Place order suspended public gatherings such that this item could not be rescheduled until now. The staff reports, supporting attachments, and meeting minutes are included as follows: • Attachment A – Draft Ordinance • Attachment B – City Council Staff Report (February 18, 2020) 1 However, an associated resolution to modify policies within the Downtown Development Plan to be consistent with the proposed ordinance was passed on February 18, 2020 with immediate effect. Item: 13 Category: PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES Meeting Date: August 18, 2020 13 Packet Pg. 321 PLN2013-012 ~ C-3 Zoning District Land Use Update Page 2 of 3 • Attachment C – City Council Meeting Minutes (February 18, 2020) • Attachment D – Planning Commission Staff Report (August 13, 2019) • Attachment E – Planning Commission Meeting Minutes (August 13, 2019) • Attachment F – Meeting History • Attachment G – Correspondence Permit Process: During and following the February 18, 2020 public hearing there was some questions regarding the permit process between the C-3 Zoning District proper (the area defined by the “loop streets”) and the master plan areas consisting of Winchester Boulevard and East Campbell Avenue west of Downtown. The following table illustrates the decision-making authorities for different types of land uses by geographic area, indicating who may authorize a new land use; either a staff member, the Community Development Director, or the Planning Commission. Geographic Area Land Use Type Ministerial Decision (staff) Admin. Decision (Director) Planning Commission Decision C-3 Zoning District New Conditional Use (e.g. Alcohol Sales/Service) X (CUP) New Permitted Use X (Business License) Change of Ownership (same use) X (Business License) Master Plan Areas Alcohol Sales/Service X (CUP) Changes of Use (e.g., salon to office) X (Admin. P-D Permit) Change of Ownership (same use) X (Business License) The difference in permit process recognizes that where a master/area plan has been adopted by the Council, a lower level of review may be warranted because community expectations have been more clearly established. However, the City has long required a Conditional Use Permit for the sale and/or service of alcohol because of the sensitive nature of these types of businesses. FISCAL IMPACT Since the proposed ordinance will expand the potential business opportunities for Downtown property owners, its fiscal impact should be largely positive and particularly beneficial in the current economic crisis. 13 Packet Pg. 322 PLN2013-012 ~ C-3 Zoning District Land Use Update Page 3 of 3 Prepared by: Daniel Fama, Senior Planner Reviewed by: Paul Kermoyan, Community Development Director Approved by: Brian Loventhal, City Manager Attachment: a. Draft Ordinance b. City Council Staff Report (Feb. 18, 2020) c. City Council Meeting Minutes (Aug. 13, 2019) d. PC Staff Report (Aug. 13, 2019) e. PC Meeting Minutes (Aug. 13, 2019) f. Meeting History g. Correspondence 13 Packet Pg. 323 Page 1 of 20 Ordinance No. 22__ BEING AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING TITLE 21 AND TITLE 5 OF THE CAMPBELL MUNICIPAL CODE TO ESTABLISH A NEW LIST OF ALLOWABLE LAND USES FOR THE C-3 (CENTRAL COMMERCIAL DISTRICT) ZONING DISTRICT, INCLUDING RELATED TEXT CORRECTIONS AND REVISIONS. After notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed. After due consideration of all evidence presented, the City Council of the City of Campbell does ordain as follows: SECTION 1. To encourage a compatible mix of uses in the Downtown, to reinforce East Campbell Avenue as a pedestrian-oriented retail street, and to foster a balance of day and evening activity, the City Council finds it necessary and appropriate to reconsider the allowable land uses within the C-3 (Central Business District) Zoning District in furtherance of the Campbell General Plan and Downtown Development Plan. SECTION 2. The City Council finds and determines that the adoption of the proposed Zoning Code Text Amendment qualifies as Exempt from the California Environmental Quality Act (CEQA) under Section 15061.b.3 which states that a project is exempt if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. SECTION 3. Section 21.30.060 (C-3 (Central Business District) zoning district) of the Campbell Municipal Code is hereby amended as set forth. Additions are indicated by underlined text and deletions are indicated by strikethrough (strikethrough) text. 21.10.60 - C-3 (Central Business District) zoning district. A. Purpose of C-3 (Central Business District) zoning district. The C-3 zoning district is applied to the heart of the city including and surrounding parts of Campbell Avenue in downtown Campbell, and by reference to the Winchester Boulevard and East Campbell Avenue Master Plan areas and Sub-Area 1 (Railway Avenue) of the South of Campbell Avenue (SOCA) Plan. The building forms in this zoning district edge the street and include retail commercial uses (e.g., entertainment, shopping, and services) on the ground floor, with either office or residential uses on the upper floors. Residential uses may be allowed where compatible with the general mix of downtown uses. The C-3 zoning district is consistent with the central commercial land use designation of the General Plan. The C-3 zoning district is specifically created to promote the following objectives in the central business area of Campbell: 13.a Packet Pg. 324 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 2 of 20 1. To retain and enhance the Downtown area as a unique and economically viable retail and business center serving local and area wide commercial needs; 2. To reinforce Campbell Avenue as a pedestrian-orientated retail street; 3. To promote ground floor retail use, upper floor commercial and residential uses where appropriate and a suitable mix of uses in the Downtown area. 4. To establish development intensities consistent with the scale of the central business area and the amount of parking which can be accommodated within and adjacent to it; 5. To maintain the pedestrian scale, character, and diversity of a small town business district; 6. To maintain adequate parking and to encourage the joint utilization of parking; 7. To improve pedestrian, visual, and vehicular connections between the Downtown and adjacent areas; 8. To preserve and enhance significant historic structures within the Downtown area; and 9. To ensure that new construction in the Downtown area is of a high architectural design quality while accommodating suitable architectural diversity. B. Land uses in the C-3 (Central Business District) zoning district. The permissibility of land uses, whether on the ground floor, an upper floor, or on all floors, as applicable, shall be as specified by Table 2-11 (Land Use Table – C-3 Zoning District). Land uses that are listed as (P) are permitted and are approved by issuance of a zoning clearance in compliance with Chapter 21.40 (Zoning clearance). Land uses listed as (C) are conditional and may be allowed subject to approval of a conditional use permit in compliance with Chapter 21.46 (Conditional use permits). Land uses listed as (X) and those not otherwise listed are prohibited and shall not be allowed. Operational requirements for outdoor merchandise display, outdoor seating, alcohol sales for on-site consumption, and live entertainment are provided further in this chapter. Table 2-11 Land Use Table – C-3 Zoning District LAND USES GROUND FLOOR UPPER FLOORS Apartments1 P P Automated teller machines P X Banks and financial services C P Banquet facilities X C Bed and breakfast inn2 C C Cat and dog day care facilities P C Cat and dog grooming facilities P C 13.a Packet Pg. 325 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 3 of 20 Table 2-11 Land Use Table – C-3 Zoning District LAND USES GROUND FLOOR UPPER FLOORS Dancing and/or live entertainment establishments3 C C Hotels C C Incompatible activities4 X X Late night activities C C Liquor establishments5 C6 C Liquor stores7 C X Medical services, clinics X C Offices, professional C P Outdoor retail sales and activities C X Pedestrian-oriented activities8 P P Wireless Communication Facilities May be allowed in compliance with Campbell Municipal Code Chapter 21.34 (Wireless Communications Facilities) Notes: (1) The ground floor of an apartment building shall be limited to commercial tenant space, parking facilities, a leasing office and lobby. Residential units and recreation spaces shall be restricted to upper floors. (2) Restricted to structures listed on the Historic Resource Inventory and subject to Chapter 21.33 (Historic Preservation) (3) Except as specified by Section 21.10.060.F (Standards for live entertainment in the C-3 zoning district), which allows certain pedestrian-oriented activities to incorporate live entertainment without a conditional use permit. (4) "Incompatible Activities" means any land use not identified in Table 2-11A (Land Use Table) or that incorporates one or more of the following characteristics, as determined by the community development director in compliance with Section 21.02.020.F (Allowable uses of land).  Services offered by a "body art" practitioner as governed by California Health and Safety Code sections 119300-119324 (i.e., tattoo parlors and similar uses);  Services offered by a deferred deposit transaction "licensee" as governed by California Financial Code sections 23000-23106 (i.e., payday lenders and similar uses);  Services offered by a "check casher" as governed by California Civil Code sections 1789.30- 1789.38 (i.e., check cashing and similar uses);  Services offered by a "pawnbroker" as governed by California Financial Code sections 21000-21307 (i.e., pawnshops and similar uses);  Services offered by a "secondhand dealer" or "coin dealer" as governed by California Business and Professions Code sections 21500-21672 (i.e., secondhand/thrift stores, consignment shops, gold buying, and similar uses);  Services offered by a practitioner of hypnotism requiring a permit pursuant to Chapter 5.08; 13.a Packet Pg. 326 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 4 of 20  Services, goods, or entertainment offered by a sexually oriented business pursuant to Chapter 5.55;  Storage of industrial vehicles;  Storage or warehousing of merchandise or products unrelated to on-site retail sales;  Outdoor storage of merchandise or products;  Assembly, compounding, manufacturing or industrial processing of merchandise or products;  Breeding, harboring, raising, or training of animals;  Repair, maintenance, or sale of motor vehicles;  Service to consumers within a motor vehicle (i.e., drive-through lane, drive-up window, or drive-in service);  Smoking or vaping of tobacco products (as defined by Chapter 6.11);  Cultivation, processing, sale or dispensing of Cannabis ("marijuana" as defined by Chapter 8.38 and 8.40); or  Emission of dust, fumes, glare, heat, liquids, noise, odor, smoke, steam, vibrations, or similar disturbance which is obnoxious or offensive or creates a nuisance. (5) Liquor establishments are subject to the findings provided in Section 21.46.070 (Special findings for liquor establishments). (6) Except as specified by Section 21.10.060.E (Standards for alcohol sales for on-site consumption in the C-3 zoning district), which allows certain pedestrian-oriented activities to incorporate an ancillary liquor establishment without a conditional use permit. (7) Liquor stores are subject to the provisions provided in Section 21.36.110 (Liquor Stores). (8) "Pedestrian-Oriented Activities" means any land use or combination of land uses that incorporate all of the following characteristics as determined by the community development director in compliance with Section 21.02.020.F (Allowable uses of land). This definition specifically includes retail stores, grocery stores, personal services, spa services/health spa (excluding massage establishments), restaurants, indoor amusement centers, and studios as defined by Chapter 21.72 (Definitions).  Provides or offers food, beverages, retail goods, services, instruction, and/or entertainment to the general public;  Is open to the general public on a regular basis;  Is conducted within the interior of a building, except for outdoor displays and outdoor dining areas as allowed by this Chapter;  Maintains a transparent storefront open to the interior of the business and/or onto a merchandise display (when on the ground floor); and  Is not otherwise classified as an incompatible activity as defined by this Chapter. C. Land uses in the Area/Master Plan areas: The permissibility of land uses in the Winchester Boulevard and East Campbell Avenue Master Plan areas and Sub-Area 1 (Railway Avenue) of the South of Campbell Avenue (SOCA) Plan shall be as specified by Table 2-11a (Land Use Table – Master Plan Areas). Land uses listed as (A) are allowable subject to approval of an administrative planned development permit in compliance with Section 21.12.030.H.1 (Administrative planned development permit required). Land uses listed as (X) and those not otherwise listed are prohibited and shall not be allowed. The boundaries of the Winchester 13.a Packet Pg. 327 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 5 of 20 Boulevard and East Campbell Avenue Master Plans and the SOCA Plan are shown on the City of Campbell Zoning Map, available at the community development department. Table 2-11a Land Use Table – Master Plan Areas LAND USES Apartments A Arcades A  Banks and financial services A Convenience markets/stores A Dancing and/or live entertainment establishments A Government offices and facilities A Grocery stores A Incompatible activities1 X Late night activities2 A Liquor establishments A3 Liquor stores A4 Medical services, clinics A Nightclubs A5 Offices, professional A Outdoor merchandise display A Outdoor seating A Parking lots/structures, public A Personal services A Public assembly uses A Restaurants or cafes A Restaurants, fast food A Restaurants, standard A Retail stores, general merchandise A Secondhand/thrift stores A Spa Services/Health Spa A Studios, small and large A Theaters, movie or performing arts, and concert halls A Tutoring centers (small and large) A Wireless Communication Facilities May be allowed in compliance with Campbell Municipal Code Chapter 21.34 (Wireless Communications Facilities) Notes: 13.a Packet Pg. 328 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 6 of 20 (1) See Table 2-11, Note #4 for the definition of "Incompatible activities," excepting "secondhand dealers" and "coin dealers" as to allow "Secondhand/thrift stores". (2) Late night uses in the P-D (Planned Development) zoning district are subject to the findings provided in Section 21.12.030.H.7 (Additional Approval Criteria for Late Night Activities). (3) In addition to an administrative planned development permit, liquor establishments also require a conditional use permit pursuant to Section 21.12.030.H.1.a and are subject to the findings provided in Section 21.46.070 (Special findings for liquor establishments). (4) In addition to an administrative planned development permit, liquor stores also require a conditional use permit pursuant to Section 21.12.030.H.1.a and are subject to the provisions provided in Section 21.36.110 (Liquor Stores). (5) In addition to an administrative planned development permit, a nightclub with a liquor establishment also requires a conditional use permit pursuant to Section 21.12.030.H.1.a and are subject to the findings provided in Section 21.46.070 (Special findings for liquor establishments). B. Permitted uses in C-3 (Central Business District) zoning district. The following uses are permitted with a zoning clearance in compliance with Chapter 21.40 (Zoning Clearances): 1. Retail business, including but not limited to clothing stores, department stores, drugstores, furniture stores, toy stores, jewelry stores, shoe stores, florist shops and gift shops subject to standards for alcohol sales in compliance with paragraph (F) (Standards for alcohol sales in the C-3 zoning district), below. Does not include retail business uses specified in paragraph (C) (Uses permitted with a conditional use permit in the C-3 district). 2. Tutoring centers (small and large), studios (small and large), and professional offices, except on the ground floor of parcels abutting East Campbell Avenue east of Second Street unless the following standards can be met: a. The business is located in a separate tenant space that is a minimum of fifty feet from the East Campbell Avenue property line; and b. The separate tenant space does not have a door or entrance that takes access from East Campbell Avenue. 3. Service commercial establishments including but not limited to barber shops, beauty parlors, dry cleaning, photographic studio, shoe repair shops, and tailors, except on the ground floor of parcels abutting East Campbell Avenue east of Second Street unless the following standards can be met: a. The business is located in a separate tenant space that is a minimum of fifty feet from the East Campbell Avenue property line; and b. The separate tenant space does not have a door or entrance that takes access from East Campbell Avenue. 4. Outdoor seating and merchandise displays, subject to approval of an outdoor seating and merchandise display permit in compliance with paragraph (H) (Standards and permit requirements for outdoor seating and merchandise display), below. 13.a Packet Pg. 329 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 7 of 20 5. Restaurants, subject to the provisions of paragraph (F) (Standards for alcohol sales in the C-3 zoning district) and standards for live entertainment in compliance with paragraph (G) (Standards for live entertainment in the C-3 zoning district), below. 6. Wireless telecommunications facilities—stealth (requires approval of a site and architectural review permit). 7. Other uses similar to the above in compliance with Chapter 21.02 (Interpretation of Provisions). C. Uses permitted with conditional use permit in C-3 district. The following uses are permitted subject to approval of a conditional use permit in compliance with Chapter 21.46 (Conditional Use Permits): 1. Arcade (containing amusement devices and games). 2. Banks and financial services. 3. Fast-food restaurants. 4. Government offices and facilities. 5. Grocery-stores and convenience markets. 6. Health spa, except on the ground floor of parcels abutting East Campbell Avenue east of Second Street, unless the following standards can be met: a. The business is located in a separate tenant space that is a minimum of fifty feet from the East Campbell Ave. property line; and b. The separate tenant space does not have a door or entrance that takes access from East Campbell Ave. 7. Late night activities. 8. Liquor establishments, other than those establishments permitted to sell alcoholic beverages under subsection B of this section. 9. Liquor store. 10. Live entertainment (except as permitted under subsection B of this section). 11. Nightclub. 12. Public assembly uses. 13. Residential condominiums or apartments (upper floors only). 14. Parking lot or structure. 15. Secondhand/thrift store. 16. Theater. 17. Wireless telecommunications facilities - non-stealth. 18. Other uses similar to the above in compliance with Chapter 21.02 (Interpretation of Provisions). 13.a Packet Pg. 330 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 8 of 20 D. Prohibited uses in C-3 (Central Business District) zoning district. The following uses are prohibited in the C-3 district: 1. Storage of industrial vehicles, except for the purpose of loading and unloading; 2. The storage or warehousing of merchandise or products in the building or on the premises for sale other than at retail on the premises; 3. The outdoor storage of merchandise or products, unless otherwise approved, in compliance with subsection H of this section; 4. The assembly, compounding, manufacturing or processing of merchandise or products, except such as are customarily incidental or essential to permitted retail commercial and service uses; 5. Any use which is obnoxious or offensive or creates a nuisance to the occupants or commercial visitors of adjacent buildings or premises by reason of the emission of dust, fumes, glare, heat, liquids, noise, odor, smoke, steam, vibrations, or similar disturbance; 6. Auto repair; 7. Any business that includes smoking tobacco on site (e.g., smoking lounges, hookah lounges, etc.); 8. Payday lender; 9. Any use inconsistent with state or federal law. ED. General development standards. New land uses and structures, and alterations to existing uses or structures shall be designed, constructed, and/or established in compliance with the requirements in Table 2-11b (General Development Standards - C-3 Zoning District), in addition to the general development standards (e.g., landscaping, parking and loading, etc.) in Article 3 (Development and Operational Standards). Table 2-11b General Development Standards - C-3 Zoning District Development Feature C-3 Maximum floor area ratio Up to 1.25 The planning commission or City Council may approve an F.A.R. of up to 1.5 if it makes all of the following findings: a. The scale and intensity of the development does not create adverse traffic and parking impacts on the Downtown. b. The balance of land uses emphasizes retail and restaurant uses consistent with the goals and objectives of the Redevelopment Agency Implementation Plan. bc. The design, scale, and context of the project are consistent with the goals and objectives established in the Downtown Development 13.a Packet Pg. 331 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 9 of 20 Plan. d. A finding of community benefit be established stating how the development furthers the goals and objectives of the Redevelopment Agency in the Downtown area that otherwise could not be achieved with a lesser F.A.R. Maximum allowable density up to 27 d.u./gross acre Setbacks Required Front None, except as may be required by the a Site and Architectural Review Permit or the California Building Code. Side (each) Street side Rear Maximum Height Limit 45 ft. Fences, Walls, Lattice and Screens See Section 21.18.060 (Fences, Walls, Lattice and Screens) FE. Standards for alcohol sales for on-site consumption in the C-3 Zoning District. Beer and wine sales for on-site consumption, when clearly ancillary to a pedestrian- oriented activity, is permitted without a conditional use permit, subject to the following restrictions: 1. Alcohol sales by retail businesses. a. Gift shops and florists may include products containing alcohol in gift baskets, flower arrangements or other similar uses as approved by the community development director upon finding that the sale of alcohol would be incidental to the primary activity on the site; b. Retail businesses permitted to sell alcohol in compliance with this paragraph shall obtain the required licenses or permits from the State Alcoholic Beverage Control Department. Uses meeting the definition of liquor store as defined by Section 21.72.020 ("Liquor Stores") shall not be considered as a florist or gift shop; 2. Alcohol sales by restaurants. a. Beer and wine sales for on-site consumption only are permitted in restaurants without a separate bar area. b. A separate bar area is defined as a separate area, tables, or a room intended primarily for serving alcoholic beverages. 13.a Packet Pg. 332 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 10 of 20 c. Restaurants that serve alcohol may be required to establish a designated driver program. d. Restaurants shall obtain the required licenses or permits from the State Alcoholic Beverage Control Department. 3. Beer and wine festivals. See also Section 21.36.030 (Beer and Wine festivals). 1. Permitted only for a pedestrian-oriented activity operating as a "bona fide public eating place" as defined by Section 23038 of the California Business and Professions Code (i.e., restaurant or café). 2. The business must be located on a ground floor tenant space. 3. The business shall not incorporate a separate bar area, defined as a separate area, tables, or a room intended primarily for serving alcoholic beverages. 4. The business owner shall obtain and maintain in good standing a Type 41 (On- Sale Beer and Wine for Bona Fide Public Eating Place) licensed issued by the Department of Alcoholic Beverage Control. GF. Standards for live entertainment in the C-3 zoning district. Live entertainment, when clearly ancillary to the a pedestrian-oriented activityrestaurant function, is permitted in restaurants without a conditional use permit subject to the following restrictions: 1. Permitted only for pedestrian-oriented activities that are not already subject to a conditional use permit; in standard restaurants without a separate bar area. A separate bar area is defined as a separate area, tables, or a room intended primarily for serving alcoholic beverages; 2. Maximum of four performers; 3. Hours of nine a.m. to eleven p.m.; 4. Alcoholic beverage service shall be restricted to a Type 41 (On-Sale Beer and Wine for Bona Fide Public Eating Place) or 47 licenses only issued from by the State Department of Alcoholic Beverage Control Department, and at no time shall off-site sales be allowed. Full food service shall be available during entertainment; 5. Ambient noise levels shall allow normal conversation, and may not be audible more than 50 feet from the businesses tenant space. However, in no case may noise from the live entertainment disrupt neighboring businesses; 6. No cover charge may be imposed; 7. Areas for dancing and festival seating are not allowed; 8. If the police department or community development department find that a business is in noncompliance with any of the above conditions, live entertainment shall be prohibited at the site until a live entertainment permit is issued by the City Council subject to the requirements set forth by Section 5.24.010(a) et seq. (Live entertainment) of this Zoning Code; HG. Standards and permit requirements for outdoor seating and merchandise display within the public right-of-way for a pedestrian-oriented activity. The following 13.a Packet Pg. 333 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 11 of 20 standards govern the provision of outdoor seating/dining areas and the outdoor display of merchandise within the public right-of-way (sidewalk) in the C-3 zoning district. These standards are minimum standards and additional requirements may be added through the discretionary review process. 1. Permit required. Outdoor seating and merchandise displays may be allowed subject to approval of an outdoor seating and display permit by the community development director. Approval is subject to the standards provided below and any other conditions as may be deemed necessary by the community development director in order to protect the health, safety, and welfare of the city. 2. Application. Application for an outdoor seating and display permit shall be filed with the community development department. The application shall be accompanied by a plan set, drawn to scale, depicting sidewalk dimensions, the location of seating, tables, umbrellas, and merchandise displays together with other information and exhibits as required by the community development director. 3. General standards. a. A four-foot-wide pedestrian walkway shall be provided at all times along the public sidewalk. This walkway shall provide for pedestrian access to doorways, crosswalks, and along the public sidewalk. No part of the walkway shall be within two feet of the building face or within one foot of the face of curb, and the walkway shall not cross the path of outward-opening doors or windows. b. All tables, seats, and displays shall be placed inside at the end of each business day. c. Material placed on the sidewalk shall be secured so as not to be moved by the wind. However, tables, seats, or displays may not be bolted into the ground or secured to the streetlights, trees, or other street furniture. d. The permit holder is responsible for picking up all litter associated with the outdoor seating or display and shall maintain the area in a clean condition at all times. 4. Outdoor seating. a. Outdoor seating shall be located directly in front of the permit holder's tenant space as set forth in the approved application and accompanying plans. b. Tables, seating, or displays shall not be placed within the area of any disabled ramps, driveways, or doorways. c. Tables or seating shall not be placed in the street, or on the sidewalk within two feet of the face of curb. d. The canopies of umbrellas associated with outdoor tables shall provide a minimum vertical clearance of seven feet, unless the umbrella does not extend beyond the outside edge of the table, and shall not extend past the curb. 13.a Packet Pg. 334 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 12 of 20 e. Tables, chairs, umbrellas, and other furniture associated with the outdoor seating shall be attractive, made of durable materials, and be maintained in good repair and in a manner to enhance the downtown area. 5. Outdoor Displays. a. Outdoor merchandise displays shall be placed against the building face abutting the permit holder's tenant space and shall be limited to fifty percent of the business frontage. b. Tenants on corner lots are permitted displays along one frontage only. c. Merchandise shall be attractively displayed on appropriate racks or other similar stands. Displays using card tables, cardboard cartons, plastic milk cases, or plywood boxes are not permitted. Merchandise too large to be placed on a display may be freestanding. d. Displayed merchandise shall be the same type of merchandise sold in the existing business at the site. e. Displays, including the merchandise placed on them, may not be more than four feet high. The community development director may approve displays greater than four feet if it can be found that the display will not block the visibility of windows of that business. f. One sign, not to exceed one square foot, per display is permitted for pricing. "A" framed signs and other types of signage shall not be considered displays. 6. Indemnification/insurance. The permit holder shall indemnity, defend and hold the city, its agents, officers, attorneys, employees, and officials harmless from any and all claims, causes of action, injuries, or damages arising out of any negligent acts on part of the permit holder, its agents, officers, employees, or anyone rendering services on their behalf. This indemnity shall include all reasonable costs and attorney's fees incurred in defending any action covered by this provision. a. The permit holder, during the continuance of this permit and at no cost to the city, shall maintain a comprehensive liability policy in the amount of one million dollars and if applicable a workers compensation liability policy each with a minimum coverage of one hundred thousand dollars. b. The policy shall include the city as additional insured and shall apply as primary insurance and shall stipulate that no other insurance effected by the city will be called on to contribute to a loss. c. Before the issuance of a permit, the permit holder shall furnish to the city a certificate of insurance, duly authenticated, evidencing maintenance of the insurance required under this permit. d. If the insurance policy is canceled, terminated, suspended, or materially changed, the outdoor seating and display permit shall be suspended until the time that compliance with the requirements of this subparagraph has been fully satisfied. 13.a Packet Pg. 335 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 13 of 20 IH. Standards for parking in the C-3 (Central Business District) zoning district. In addition to other applicable parking requirements in Chapter 21.28 (Parking and Loading), the following requirements shall apply in the C-3 (Central Business District) Zoning District: 1. Shared Required parking facilities. Required parking facilities for new buildings shall be provided, based on the gross square footage of the building(s), as specified by Table 2-11c, (Parking Requirements by Land Use), except where a parking modification permit has been granted by the City Council in compliance with Section 21.28.050, (Parking modification permit).All new parking spaces shall be provided in shared parking facilities, unless the City Council, upon recommendation of the planning commission, finds that another parking arrangement would better serve the public safety or welfare and would not be detrimental to the overall parking and circulation in the area. 2. Parking requirement computation. In computing the total parking requirement, credit shall be allowed for existing on-site parking or for existing shared off-site parking if an agreement, acceptable to the city, which provides for the use and maintenance of shared parking is in effect. 3. Change in use. Legally existing buildings shall be required to meet the current parking standards upon expansion of the building or when there is a change in use which requires more parking than is currently provided, except for retail uses and standard restaurantspedestrian-oriented activities that are not required to provide additional parking unless the building is expanded in compliance with Section 21.28.040.D.2, (Expansion/remodeling of structure, or change in use). 4. Parking ratios. The required shared-facility parking ratios, based on gross square footage of a building, unless otherwise indicated, shall be as follows: (parking spaces/square foot): 4. Uses not listed. Land uses not specifically listed by Table 2-11c shall provide parking as required by the community development director. The community development director shall use the requirements of Table 2-11c as a guide in determining the minimum number of parking spaces to be provided, based on the similarity of the unlisted use to the uses listed in the table. Table 2-11c Parking Requirements by Land Use Retail 1:345 sq. ft. gross floor area Office 1:425 sq. ft. gross floor area Restaurant 1 space per 4 seats Pedestrian-oriented activities 1:345 sq. ft. gross floor area Banks 1:350 sq. ft. gross floor area Residential 2 spaces per unit 13.a Packet Pg. 336 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 14 of 20 Service commercial 1:345 sq. ft. gross floor area JI. Development review regulations for projects in the C-3 (Central Business District) zoning district. 1. Purpose. Downtown Campbell possesses a wealth of small-scale commercial buildings that are architecturally exemplary of the variety of historic periods in which they were constructed. These design standards are intended to both promote the conservation and rehabilitation of buildings and to encourage new building and remodeling which is simultaneously in keeping with existing buildings and architecturally exemplary of contemporary design. In this way the architectural history and richness of downtown will be continued and expanded. Each new building and remodeling project in the downtown shall adhere both in its large- and small-scale parts to the architectural parts or style adopted for the project. Architectural design shall be of high quality, measured against contemporary standards. 2. Intent. The guidelines below govern building mass; building form and composition; storefronts; materials, colors and finishes; and other elements. They are intended to encourage the relation of specific project aspects to the designated architectural parts or style. 3. Site and Architectural Review required. Buildings and structures in the C-3 (Central Business District) zoning district shall conform to the design standards in paragraphs 4—8 below and are subject to approval in compliance with the provisions of Chapter 21.42 (Site and Architectural Review): 4. Building mass. a. Large building facades shall be divided into smaller elements to complement the intimate scale created by the existing small property divisions. b. Second floor decks or terraces at the rear of buildings for use by adjacent offices or restaurants should be incorporated whenever practical to add a sense of vitality to the rear building facades. c. Roof design shall be consistent with the building's architectural style. Mansard, shed or residential type roofs are prohibited unless it is demonstrated that such a roof style is structurally or architecturally suitable for the particular project or location. d. The existing residential building types of historical significance should retain their character, including features such as landscaped setbacks. 5. Building form and composition. a. Unique and historic building elements such as parapet details and belt courses shall be retained and restored. b. Traditional commercial building forms should be incorporated whenever practical. 13.a Packet Pg. 337 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 15 of 20 c. Open air dining areas facing Campbell Avenue should be employed to the greatest extent practical. The buildings should not be set back from the street, but should contain the dining areas within their architectural framework. d. Upper stories in multistory buildings are required to have solid surfaces with vertical rectangular windows, augmented with frames. Glass curtain walls should not be approved unless it is demonstrated that such walls are the only structurally or architecturally suitable form of wall for the particular project or location. e. Architecturally exemplary design of high quality shall be employed. Buildings should not be made to look "old time" unless such design would be clearly more appropriate and harmonious with the purpose of this chapter. f. Buildings shall incorporate base, cornice, and other elements appropriate to their architectural style. 6. Storefronts. a. First floor frontages shall have an integrated design including display windows, an entry, and signing. b. The design of the building storefront shall be consistent with the building's architectural style. c. Walls facing pedestrian ways should have elements of visual interest, such as fenestration, displays, signing, or landscaping, unless the effect of such elements would be clearly contrary to the purposes of this chapter. Large areas of blank walls should not be permitted unless it is demonstrated that such blank areas are clearly more appropriate and harmonious than would be the case if elements of visual interest were incorporated. d. Buildings facing Campbell Avenue shall have their primary entries along that street. e. Entries should be recessed, as they add depth to storefront, and act as transition areas between the street and shop interiors, unless the effects of such entries would be clearly contrary to the purposes of this paragraph. f. Doors and windows shall be of clear glass. Unglazed wood doors, screen doors and doors or windows of heavily tinted or reflective glass should not be approved unless it is demonstrated that such doors and windows are the only structurally or architecturally suitable form for the particular project or location. g. Storefront windows shall reflect the building's character. For instance, on 1940's and 50's "showcase" buildings, exposed aluminum frame windows are appropriate. h. Ground floor offices facing Campbell Avenue are required to maintain the same storefront character as retail spaces. i. Awnings on building facades should be employed when appropriate, as they add color, weather protection, and opportunities for signing. As in other architectural elements, the awnings should be designed to reflect the building's geometry. 13.a Packet Pg. 338 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 16 of 20 7. Materials, colors, and finishes. a. Primary facade materials shall be limited to those that are characteristic of the building's architectural style. b. Exterior wall finishes shall be smooth and of finished quality, not deliberately rough in an attempt to look antiqued or used. c. Primary building colors shall be characteristic of the building's architectural style. Overly bright, garish, or otherwise offensive colors or color combinations are prohibited. d. Accent materials such as tile bases shall be carefully chosen to complement the building style and coordinate with adjacent buildings. The use of shingles, lava rock, sheet metal siding, or any other residential or industrial materials should not be approved unless it is demonstrated that such material would be the only structurally or architecturally suitable materials for the project or location. e. Painted trim shall coordinate with primary facade colors to add more depth and interest to the buildings. f. A coordinated color scheme that responds to the style of the structure shall be developed for each building. The colors of signing, awnings, planters, accent materials, and primary facade colors should all be considered. The number of colors should be limited. 8. Other elements. a. Trash collection and storage areas shall be carefully screened. b. Mechanical equipment shall be screened from view. Exhaust louvers shall not be located in the storefront areas. c. Colorfully landscaped planters are allowed. These are especially appropriate below second floor windows. d. All building maintenance shall be done conscientiously. KJ. Sign regulations for C-3 (Central Business District) zoning district. The following provisions shall apply to the C-3 (Central Business District) zoning district only and shall supersede those listed by Section 21.30.080 (Permanent signs) under Chapter 21.30 (Signs): 1. Intent. The intent of these regulations is to stimulate creative, good quality signing which will complement the intimate scale and architectural character of the area, and which will complement the architectural style of the building to which the signing is fixed. 2. Allowable signs. Each business shall be allowed one square foot of sign area for each one linear foot of business frontage. A minimum of twenty square feet is allowed and a maximum of forty square feet is allowed for each business. 3. Sign materials. Appropriate sign materials include enameled metal, painted wood, cast metal, painted fabric, and similar materials. Plastic signs should shall not be approved. unless it is demonstrated that the use of the plastic signs at the 13.a Packet Pg. 339 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 17 of 20 proposed location would be more harmonious with the purpose of this paragraph than the foregoing enumerated materials. 4. Wall signs. Each business may have one wall sign, except corner businesses, which may have two. This sign shall be located below the top of parapet on single story buildings and below the second floor sill on multistoried buildings. It may be painted directly on a wall, a sign panel attached to a parapet wall, or of individually formed letters attached to a wall. 5. Awnings. Awnings may be used in lieu of wall signs. An insignia or name may be painted, silk screened or appliquéd onto the awning. Awnings may project five feet into the public right-of-way on Campbell Avenue and shall maintain a minimum clearance of eight feet from the ground. All other streets shall be limited to a two-foot projection and have a minimum clearance of eight feet. Awnings shall be securely attached to buildings and well maintained. No supports or poles may be located in the public right-of-way. Awning forms shall be carefully chosen to complement the architectural style of the building to which they are fixed. Figure 2-1 Awning 6. Projecting signs. a. In addition to a wall sign or awning sign, a business is allowed one, non- illuminated, double-sided projecting sign. The projecting sign may be a maximum of six square feet and may serve to identify more than one tenant in the building. b. Signs may project a maximum of four feet over the public right-of-way with a minimum eight-foot clearance from the ground. Signs shall not project above any roofline or facade of the building. c. Projecting signs shaped as symbols depicting the goods or services being sold by the business are encouraged. d. Wood signs, that are carved, painted, stained, or feature raised letters and symbols are specifically encouraged. e. Sign colors should relate to material or paint scheme of the building. Fluorescent colors are not allowed. 13.a Packet Pg. 340 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 18 of 20 f. Internally or externally illuminated signs are not allowed, nor are can signs, metal signs, neon signs, or flashing signs. g. Projecting signs shall be mounted perpendicular to the street and may be hung from coverings over sidewalks or affixed to the building wall. (1) Signs shall be structurally attached to the building with wood, metal brackets, chain, or other similar materials in a manner compatible with the architectural style of the building. (2) Fabric signs shall be anchored to the building from both the top and bottom of the sign. Figure 2-2 Projecting Sign 7. Lighting. Only external illumination of signs is allowed except for backlit individual letter signs. LK. Nonconforming uses and structures in the C-3 (Central Business District) zoning district. Nonconforming uses and structures shall be governed by the standards set forth in Chapter 21.58 (Nonconforming Uses and Structures), except that whenever a nonconforming use has been abandoned or discontinued for a continuous period of six months, the nonconforming use shall not be reestablished; and the use of the structure and the site shall comply with the regulations for the C- 13.a Packet Pg. 341 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 19 of 20 3 zoning district. Notwithstanding the foregoing provision, an existing use with a conditional use permit that was issued before September 1, 2020 shall be considered a conforming use for purposes of this section. SECTION 4. Section 21.46.070 (Special findings for liquor establishments) of the Campbell Municipal Code is hereby amended as set forth. Additions are indicated by underlined text and deletions are indicated by strikethrough (strikethrough) text. 21.46.070 - Special findings for liquor establishments. Whenever a Conditional Use Permit is required for a liquor establishment by this Zoning Code, the planning commission shall first find all the following conditions in addition those findings identified in Section 21.46.040, are satisfied in order to approve the Conditional Use Permit application: A. Over concentration of uses. The establishment will not result in an over concentration of these uses in the surrounding area; B. Not create a nuisance. The establishment will not create a nuisance due to litter, noise, traffic, vandalism, or other factors; C. Not disturb the neighborhood. The establishment will not significantly disturb the peace and enjoyment of the nearby residential neighborhood; and D. Not increase demand on services. The establishment will not significantly increase the demand on city services. E. Downtown Alcohol Beverage Policy. The establishment would be consistent with the Downtown Alcohol Beverage Policy, when applicable. SECTION 5. Section 5.24.010(c)(2) of the Campbell Municipal Code is hereby amended as set forth. Additions are indicated by underlined text and deletions are indicated by strikethrough (strikethrough) text. Live entertainment conducted in a pedestrian-oriented activity standard restaurant (as defined in Section 21.02.335 in a C3-S (central business) the C-3 (Central Business District) zoning district, provided that such entertainment satisfies the requirements stated in Section 21.10.060.F (Standards for live entertainment in the C-3 zoning district).26.020. SECTION 6. Section 21.72.020.D of the Campbell Municipal Code is hereby amended as set forth. Additions are indicated by underlined text and deletions are indicated by strikethrough text. "Dancing and/or live entertainment establishment" means a commercial facility that offers a venue intended to allow where patrons come to dance and/or listen to live entertainmentor recorded music or simply enjoy entertainment, as defined by Section 5.24.010(b) performed by live entertainers. Does not include karaoke or juke boxnon- commercial expressive activity protected by the United States or California constitutions or the listening of recorded music without a dancing venue. 13.a Packet Pg. 342 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) Page 20 of 20 SECTION 7: This Ordinance shall become effective thirty (30) days following its passage and adoption and shall be published, one time within fifteen (15) days upon passage and adoption in the Campbell Express, a newspaper of general circulation in the City of Campbell, County of Santa Clara. PASSED AND ADOPTED this 1st day of September, 2020 by the following roll call vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: APPROVED: ________________________ Susan M. Landry, Mayor ATTEST: _______________________________ Andrea Sanders, Acting City Clerk 13.a Packet Pg. 343 Attachment: Draft Ordinance (PLN2013-012 ~ C-3 Zoning District Land Use Update) City Council Report TITLE: Public Hearing to Consider a City-Initiated Zoning Code Text Amendment to Amend Title 21 and Title 5 of the Campbell Municipal Code to Establish a New List of Allowable Land Uses for the C-3 (Central Commercial District) Zoning District, Including Related Text Corrections and Revisions, and an Associated General Plan Text Amendment to Amend the Downtown Development Plan to Incorporate Revised Policy Language. (Ordinance/Resolution/Roll Call Vote) RECOMMENDED ACTION The Planning Commission recommends that the City Council take the following actions: (1) take first reading and introduce an ordinance to amend Title 21 and Title 5 of the Campbell Municipal Code and (2) adopt a resolution adopting a General Plan Text Amendment to amend the Downtown Development Plan to incorporate revised policy language. ENVIRONMENTAL DETERMINATION The Planning Commission recommends that the City Council find that the proposed ordinance is Categorically Exempt from CEQA under Section 15061.b.3 which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. DISCUSSION Background: Starting in late 2012, staff was tasked with researching how other cities control land use in a downtown environment. This was done in response to Council and community concerns that too many restaurants were displacing retailers, diminishing the Downtown's traditional retail character. The Council formally initiated preparation of the draft ordinance at its meeting of July 3, 2018. This work is the culmination of a multi- year evaluation of the Downtown's "mix of uses” (reference Attachment C – Public Hearing History). Over the course of its discussions, the Council opted to consider a laissez-faire approach to allow a wide array of business types in the Downtown to encourage greater market competition rather than enacting new regulations to curtail Item: 11 Category: PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES Meeting Date: February 18, 2020 11 Packet Pg. 183 13.b Packet Pg. 344 Attachment: City Council Staff Report (Feb. 18, 2020) (PLN2013-012 ~ C-3 Zoning District Land Use Update) PLN2013-012 ~ C-3 Zoning District Land Use Update Page 2 of 5 the number of restaurants. This item had been previously scheduled for September 2, 2019, however, due to a full agenda the Council continued the matter until February 2020. Summary: As discussed in detail in the Planning Commission staff report (reference Attachment D) the draft ordinance would establish a new land use table for Downtown Campbell that would encourage establishment of "Pedestrian-Oriented Activities". The intent of this use category is to allow traditional service, retail, entertainment, instruction and food uses, as well as to accommodate new business ideas that incorporate one or more of these elements. Planning Commission Action: The Planning Commission considered the draft ordinance at its August 13, 2019 meeting. The Commission strongly supported the proposal and voted 5-0-1 (Commissioner Ostrowski absent) to recommend approval, with a revision to allow ground-floor offices with approval of a Conditional Use Permit. The Commission believed that ground-floor office may be appropriate in certain circumstances and should be considered on a case-by-case basis rather than simply being prohibited. Downtown Development Plan: The Downtown Development Plan (an appendix of the General Plan), provides policy direction with regard to the management of land use and development of the Downtown. The various policies and strategies emphasize a retail and restaurant presence along East Campbell Avenue, as excerpted below. Arguably, the proposed Zoning Code Text Amendment runs counter to these policies and strategies by allowing for uses other than retail and restaurant, as highlighted, below: Goal LU-1: To continue the development and revitalization of the Downtown area in a manner that positions it as a viable, self-sustaining commercial district in the competitive market place of Silicon Valley. Policy LU-1.1: Development Potential: To maximize the development potential of property within the C-3 zone, particularly ground floor retail and restaurant space. Strategy LU-1.1a: Encourage the development and redevelopment of property in the C-3 zone by developing land use strategies and incentives that create attractive, functional ground floor retail space along Campbell Avenue. Goal LU-2: Work to develop and promote a variety of retail businesses and diversification of eating establishments that will help create a unique destination and identity for Downtown. Policy LU-2.1: Ground Level Commercial: Develop and maintain the ground floor space along East Campbell Avenue between Third Street and the light rail tracks as a distinctive retail and restaurant experience with 11 Packet Pg. 184 13.b Packet Pg. 345 Attachment: City Council Staff Report (Feb. 18, 2020) (PLN2013-012 ~ C-3 Zoning District Land Use Update) PLN2013-012 ~ C-3 Zoning District Land Use Update Page 3 of 5 ground floor uses that are diverse and interesting and contribute strongly to a distinctive and unique shopping experience. Strategy LU-2.1: Restrict the use of ground floor commercial space along East Campbell Avenue to retail/restaurant uses. However, General Plan Goal LUT-19 and Downtown Development Plan Goal LU-1, provide a vision of the Downtown as a self-sustaining commercial district and cultural center of the City. These goals compatible with the purpose of the Zoning Code Amendment in that by encouraging pedestrian-oriented uses, the Downtown can expand on its success and enhance its central role to the community. In this regard, it may be appropriate to amend the specific text that reference retail and restaurant uses so as to also reference pedestrian-oriented uses. Staff has, therefore, prepared a General Plan Amendment to revise the Downtown Development Plan as follows: Goal LU-1: To continue the development and revitalization of the Downtown area in a manner that positions it as a viable, self-sustaining commercial district in the competitive market place of Silicon Valley. Policy LU-1.1: Development Potential: To maximize the development potential of property within the C-3 zone, particularly ground floor retail, and , restaurants, and other pedestrian oriented uses space. Strategy LU-1.1a: Encourage the development and redevelopment of property in the C-3 zone by developing land use strategies and incentives that create attractive, functional ground floor retail, restaurant, and pedestrian oriented space along Campbell Avenue. Goal LU-2: Work to develop and promote a variety of retail and pedestrian oriented businesses and diversification of eating establishments that will help create a unique destination and identity for Downtown. Policy LU-2.1: Ground Level Commercial: Develop and maintain the ground floor space along East Campbell Avenue between Third Street and the light rail tracks as a distinctive retail, and restaurant, and pedestrian oriented experience with ground floor uses that are diverse and interesting and contribute strongly to a distinctive and unique downtown environment shopping experience. Strategy LU-2.1: Restrict the use of ground floor commercial space along East Campbell Avenue to retail, /restaurant, and other pedestrian oriented uses. PUBLIC NOTIFICATION 11 Packet Pg. 185 13.b Packet Pg. 346 Attachment: City Council Staff Report (Feb. 18, 2020) (PLN2013-012 ~ C-3 Zoning District Land Use Update) PLN2013-012 ~ C-3 Zoning District Land Use Update Page 4 of 5 In addition to the standard newspaper advertisement, staff mailed notices to property owners of C-3 zoned properties. Correspondence received regarding the draft ordinance is provide in Attachment E. FISCAL IMPACT Since the primary uses in Downtown—restaurants and retail—are both subject to sales taxation, allowing other uses that are not taxable (e.g., service or instruction) could result in a nominal loss in sales tax revenue over time. ALTERNATIVES 1. If the Council decides not to proceed with the draft ordinance, this item could be deferred until the new General Plan is adopted. A new General Plan could provide clear guidance for future updates to the C-3 Zoning District. 2. If the Council generally agrees with the Planning Commission’s recommendation but would like to modify specific land uses and/or definitions, those changes may be read into the motion and would be reflected in the ordinance presented for second reading. For the Council’s reference, the following alternatives had been previously considered but rejected by previous Councils. • Adopt an urgency ordinance to establish a moratorium to prevent new restaurants; • Establish a maximum number of restaurants; • Establish a maximum square-footage allowable for restaurants; • Prohibit new restaurants; • Require a CUP for all new restaurants; • Reinstate the interim parking in-lieu fee; • Eliminate the parking exception for new restaurants; • Modify the Downtown Alcohol Policy to address over-concentration; • Create a grant program to assist in tenant improvements for new retailers; • Add new allowable uses such as wine-tasting room, pet daycare/grooming, “public-serving” office, etc., to provide a greater variety of uses; • Remove outdoor seating/display permit requirements; • Offer no-cost tenant improvement permits; • Explore sales tax rebate program; • Direct Economic Development to actively recruit major retailers; • Create an administrative Use Permit process; • Restrict the current FAR “bonus” to only new non-restaurant buildings; • Provide assigned employee parking for non-restaurant businesses; • Relax signage standards to allow larger a greater number of signs; • Provide special use allowances for historic buildings; 11 Packet Pg. 186 13.b Packet Pg. 347 Attachment: City Council Staff Report (Feb. 18, 2020) (PLN2013-012 ~ C-3 Zoning District Land Use Update) PLN2013-012 ~ C-3 Zoning District Land Use Update Page 5 of 5 •Expand the C-3 allowable uses to more closely resemble the C-2 (GC); •Allow new uses unless specifically prohibited. Prepared by: Daniel Fama, Senior Planner Reviewed by: Paul Kermoyan, Community Development Director Approved by: Brian Loventhal, City Manager Attachment: a.Draft Ordinance b.Draft Resolution c.Public Hearing History d.PC Staff Report e.Public Comment 11 Packet Pg. 187 13.b Packet Pg. 348 Attachment: City Council Staff Report (Feb. 18, 2020) (PLN2013-012 ~ C-3 Zoning District Land Use Update) 13.c Packet Pg. 349 Attachment: City Council Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) 13.c Packet Pg. 350 Attachment: City Council Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) 13.c Packet Pg. 351 Attachment: City Council Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) 13.c Packet Pg. 352 Attachment: City Council Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) ITEM NO. 4 CITY OF CAMPBELL ∙ PLANNING COMMISSION Staff Report ∙ August 13, 2019 PLN2013-012 Zoning Code Amendment Public Hearing to consider a City-initiated Zoning Code Amendment to amend Title 21 and Title 5 of the Campbell Municipal Code to establish a new list of allowable land uses for the C-3 (Central Commercial District) Zoning District. STAFF RECOMMENDATION That the Planning Commission take the following action: 1. Adopt a Resolution (reference Attachment 1), recommending that the City Council adopt an ordinance to amend Title 21 and Title 5 of the Campbell Municipal Code to establish a new list of allowable land uses for the C-3 (Central Commercial District) Zoning District. ENVIRONMENTAL DETERMINATION Staff recommends that the Planning Commission find that the proposed zoning amendment is Categorically Exempt from CEQA under Section 15061.b.3 which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. BACKGROUND Starting in late 2012, staff was tasked with researching how other cities control land use in a Downtown environment. This was done in response to Council and community concerns that too many restaurants were displacing retailers, diminishing the Downtown's traditional retail character. The Council and Planning Commission have held multiple study sessions and public hearings to consider potential ordinance and policy changes that could address this perceived imbalance. In order to assist the Commission's understanding of these meetings, a chronology is provided in Attachment 2 (all previous reports can be accessed by clicking the blue hyperlinks). Initially, this effort focused on limiting the number of new restaurants though targeted land use restrictions, such as requiring a Conditional Use Permit for new restaurants or limiting the total number (or aggregate square-footage) of restaurants in the Downtown. However, in time, the approach evolved into establishing a more permissive land use program for the Downtown, rather than imposing new restrictions. The Council initially expressed a desire to develop a comprehensive list of prohibited uses—specifically those that did not further the vision of a "pedestrian-oriented" and "family-friendly Downtown"—with the intent of allowing any use not on that list. This approach was based on the idea that by identifying and prohibiting only undesirable uses the Zoning Code would be more accommodating to new or novel business ideas, as well as encourage greater market competition for tenant spaces. 13.d Packet Pg. 353 Attachment: PC Staff Report (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Staff Report ~ Planning Commission Meeting of August 13, 2019 Page 2 of 8 PLN2013-12 ~ C-3 Downtown Zoning Update However, a list of prohibited uses proved to be excessively long and was bound to be incomplete. Moreover, since this approach would lack a basic protection of the Zoning Code—that a use that is not specifically allowed is prohibited—the City would lose its ability to prevent an undesirable use that had not been explicitly prohibited. To avoid these shortfalls, staff developed a modified approach inspired by the Council's direction, as discussed below. This approach was presented to the City Council last year at its meetings of May 15th and July 3rd. At the latter meeting, the City Council made a motion to formally initiate the Zoning Code Amendment and supported the idea of separating the Downtown land uses out from those permitted in the East Campbell Avenue and Winchester Boulevard Master Plans. The motion also directed the Planning Commission to watch the webcast of the July 3rd meeting (available at this link) to form an understanding of Council expectations. DISCUSSION The attached ordinance (reference Attachment 3) would revise the C-3 Zoning District through incorporation of new land use definitions and land use table, as described below. Land Use Definitions: Currently, the C-3 Zoning District—like all of the City's zoning districts—specifies those land uses that are permissible, conditional, or prohibited. While maintaining this structure at a high-level, staff has taken a hybrid approach that creates a broad new land use category termed "pedestrian-oriented activities" that would incorporate certain desirable characteristics such as offering food, beverages, retail goods, services, instruction, and/or entertainment to the general public. This term would supplant many land use categories currently allowed such as retail stores, restaurants, personal services, and amusement centers. Pedestrian-oriented activities would be juxtaposed with a new category of prohibited uses that would be called "incompatible activities". It would include several clearly undesirable uses (e.g., tattoo parlors, payday lenders, etc.) as well as any use that incorporates certain undesirable characteristics inconsistent with a downtown environment, such as outdoor storage, manufacturing, and drive-through By creating two broad categories of land uses—one allowed and one prohibited—the C-3 zoning district can allow enhanced flexibility for new business concepts, even those that might not currently exist today, while still providing safeguards against undesirable uses. New Definitions "Pedestrian-Oriented Activities" means any land use or combination of land uses that incorporate all of the following characteristics as determined by the Community Development Director in compliance with Section 21.02.020.F (Allowable uses of land). This definition specifically includes retail stores, grocery stores, personal services, spa services/health spa (excluding massage establishments), restaurants, indoor amusement centers, and studios as defined by Chapter 21.72 (Definitions) • Provides or offers food, beverages, retail goods, services, instruction, and/or entertainment to the general public; • Is open to the general public on a regular basis; 13.d Packet Pg. 354 Attachment: PC Staff Report (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Staff Report ~ Planning Commission Meeting of August 13, 2019 Page 3 of 8 PLN2013-12 ~ C-3 Downtown Zoning Update • Is conducted within the interior of a building, except for outdoor displays and outdoor dining areas as allowed by this Chapter; • Maintains a transparent storefront open to the interior of the business and/or onto a merchandise display (when on the ground floor); and • Is not otherwise classified as an incompatible activity as defined by this Chapter. "Incompatible Activities" means any land use not identified in Table 2-11A (Land Use Table) or that incorporates one or more of the following characteristics, as determined by the Community Development Director in compliance with Section 21.02.020.F (Allowable uses of land): • Services offered by a "body art" practitioner as governed by California Health and Safety Code sections 119300-119324 (i.e., tattoo parlors and similar uses); • Services offered by a deferred deposit transaction "licensee" as governed by California Financial Code sections 23000-23106 (i.e., payday lenders and similar uses); • Services offered by a "check casher" as governed by California Civil Code sections 1789.30-1789.38 (i.e., check cashing and similar uses); • Services offered by a "pawnbroker" as governed by California Financial Code sections 21000-21307 (i.e., pawnshops and similar uses); • Services offered by a "secondhand dealer" or "coin dealer" as governed by California Business and Professions Code sections 21500-21672 (i.e., secondhand/thrift stores, consignment shops, gold buying, and similar uses); • Services offered by a practitioner of hypnotism requiring a permit pursuant to Chapter 5.08; • Services, goods, or entertainment offered by a sexually oriented business pursuant to Chapter 5.55; • Storage of industrial vehicles; • Storage or warehousing of merchandise or products unrelated to on-site retail sales; • Outdoor storage of merchandise or products; • Assembly, compounding, manufacturing or industrial processing of merchandise or products; • Breeding, harboring, raising, or training of animals; • Repair, maintenance, or sale of motor vehicles; • Service to consumers within a motor vehicle (i.e., drive-through lane, drive-up window, or drive-in service); • Smoking or vaping of tobacco products (as defined by Chapter 6.11); • Cultivation, processing, sale or dispensing of Cannabis ("marijuana" as defined by Chapter 8.38 and 8.40); or • Emission of dust, fumes, glare, heat, liquids, noise, odor, smoke, steam, vibrations, or similar disturbance which is obnoxious or offensive or creates a nuisance. 13.d Packet Pg. 355 Attachment: PC Staff Report (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Staff Report ~ Planning Commission Meeting of August 13, 2019 Page 4 of 8 PLN2013-12 ~ C-3 Downtown Zoning Update Land Use Table: The Council's direction would replace the existing C-3 land use list with a new table so that uses may be separately allowed between upper and lower floors. The intent of this distinction is to reserve the street-level primarily for "pedestrian-oriented activities". In addition to "incompatible activities" and "pedestrian-oriented activities" the land use table would still separately identify several uses that do not neatly fall into either of these new categories (i.e., apartments, etc.) or that should remain subject to a Conditional Use Permit (i.e., liquor establishments) even when combined with an otherwise permitted pedestrian-oriented activity. The following C-3 land use table specifies land use allowability as either Permitted (P) (allowed with only a business license), Conditional (C) (requiring a Conditional Use Permit), or Prohibited (X) and whether allowed on the ground or upper floors. Table 2-11A Land Use Table – C-3 Zoning District LAND USES GROUND FLOOR UPPER FLOORS Apartments P P Automated teller machines P X Banks and financial services C P Banquet facilities X C Bed and breakfast inn C C Dancing and/or live entertainment establishments C C Hotels C C Incompatible activities X X Late night activities C C Liquor establishments C C Liquor stores C X Medical services, clinics X C Offices, professional X P Outdoor retail sales and activities C X Pedestrian-Oriented activities P P Wireless Communication Facilities May be allowed in compliance with Campbell Municipal Code Chapter 21.34 As noted, the Council indicated that the zoning amendment should not affect the land use prescribed for the East Campbell Avenue or Winchester Boulevard Master Plan areas. The reason for this direction is that these two Master Plans make direct reference to the C-3 Zoning District such that any changes made could have a wider effect. To implement the Council's direction an additional land use table has also been incorporated that would apply to the two Master Plans, as well as the South of Campbell Avenue (SOCA) Plan, which also references the C-3 Zoning District. This table would continue the current land use allowances for these areas, with the exception of medical clinics which would now be allowed. Staff included this additional use due to continuing interest in establishing specialized medical clinics near Downtown. However, the current permitting procedures for the Planned Development Zoning District would continue to provide City review for any proposed changes of uses. 13.d Packet Pg. 356 Attachment: PC Staff Report (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Staff Report ~ Planning Commission Meeting of August 13, 2019 Page 5 of 8 PLN2013-12 ~ C-3 Downtown Zoning Update Additional Revisions: The draft ordinance also includes several miscellaneous changes that directly or indirectly affect the C-3 Zoning District in some manner: • Existing provisions regarding outdoor seating and displays, alcohol service, live entertainment, and parking have been modified to make reference to pedestrian-oriented activities. • The C-3 Development Standards table has been modified to remove references to the former Redevelopment Agency (now defunct) and to incorporate a maximum density value consistent with the General Plan (27 units/gr. acre). • The Downtown Sign Regulations include a technical correction regarding its relationship to the City-wide Sign Ordinance. Additionally, existing language that discourages plastic signs has been revised to prohibit plastic signs, consistent with current staff practice. • The findings for approval of a Conditional Use Permit for new liquor establishments have been updated to incorporate by reference the Downtown Alcohol Beverage Policy. • The Zoning Code definition for dancing and live entertainment has been modified to clarify that it pertains to either live entertainment and/or dancing. The terminology has also been revised to make it consistent with other provisions of the Municipal Code pertaining to Live Entertainment Permits. ANALYSIS Effect of Changes: The desired result of this zoning amendment is to foster new business concepts in the Downtown by reducing the restrictions of the existing zoning and its inherent uncertainty. For instance, at its last meeting, the Planning Commission approved a Conditional Use Permit for a "technology and gaming center". That proposal was found appropriate for the Downtown, however, the business owners had to endure a delay and cost of the Conditional Use Permit process. Under the proposed zoning amendment, this business would have been classified as a pedestrian-oriented activity and been allowed without a Conditional Use Permit. By removing such barriers, this approach would allow staff to approve new business concepts over- the-counter. Moreover, by providing a greater number of potential tenants to landlords, the mix of land uses in the Downtown may veer away from food-centered businesses and perhaps redirect attention to "experiential retail" and other community-engaging concepts. Geographic Applicability: As noted, the zoning amendment is intended to apply to the C-3 Zoning District and specifically not to the East Campbell Avenue and Winchester Boulevard Master Plan areas. However, in the addition to the core Downtown area within the loop streets, the proposed land use changes would also apply to several Planned Development zoned properties, shown in dark blue on the map on the following page. These properties share the same Central Commercial General Plan Land Use Designation as the C-3 Zoning District. Under the land use provisions of the Planned Development Zoning District, this means that the proposed land use changes would also apply. Although not technically within the C-3 zoning district, these properties areas are subject to the Downtown Development Plan and are commonly understood to be part of the Historic Downtown. Additionally, these properties do not have on- site parking and rely on public parking facilities such that treating them in the similar manner as C-3 zoned properties may be found appropriate. 13.d Packet Pg. 357 Attachment: PC Staff Report (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Staff Report ~ Planning Commission Meeting of August 13, 2019 Page 6 of 8 PLN2013-12 ~ C-3 Downtown Zoning Update General Plan Conformance: Pursuant to CMC Section 21.60.070, an amendment to the Municipal Code may only be approved if the decision-making body finds that: (1) the proposed amendment is consistent with the goals, policies, and actions of the General Plan; (2) the proposed amendment would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and (3) the proposed amendment is internally consistent with other applicable provisions of the Zoning Code. Staff believes that these findings can be favorably established, as discussed below: 1. The proposed amendment is consistent with the goals, policies, and actions of the General Plan; The following policies and strategies from the General Plan and Downtown Development Plan articulate a vision of Downtown as a varied and balanced economic eco-system, which the proposed zoning amendment is intended to facilitate. Although there is an emphasis on traditional retail and restaurant uses on the ground floor, the rapidly evolving nature of retail may support a broader understanding of these goals. Campbell General Plan: Policy LUT-5.3: Variety of Commercial and Office Uses: Maintain a variety of attractive and convenient commercial and office uses that provide needed goods, services and entertainment. Strategy LUT-5.3g: Day and Evening Activities: Encourage restaurant and specialty retail uses in the Downtown commercial area that will foster a balance of day and evening activity. Policy LUT-11.2: Services Within Walking Distance: Encourage neighborhood services within walking distance of residential uses. C-3 Zoning District P-D Zoning District 13.d Packet Pg. 358 Attachment: PC Staff Report (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Staff Report ~ Planning Commission Meeting of August 13, 2019 Page 7 of 8 PLN2013-12 ~ C-3 Downtown Zoning Update Strategy LUT-19.1a: Mix of Uses: Encourage a compatible mix of uses (i.e. professional offices, services and retail uses) with ground floor retail uses. Strategy LUT-19.1b: Mix of Uses: Reinforce East Campbell Avenue as a pedestrian-oriented retail street. Downtown Development Plan Goal LU-1: To continue the development and revitalization of the Downtown areas in a manner that positions it as a viable, self sustaining commercial district in the competitive marketplace of Silicon Valley. Goal LU-2: Work to develop and promote a variety of retail businesses and diversification of eating establishments that will help create a unique destination and identity for Downtown. Policy LU-2.1: Ground Level Commercial: Develop and maintain the ground floor space along East Campbell Avenue between Third Street and the light rail tracks as a distinctive retail and restaurant experience with ground floor uses that are diverse and interesting and contribute strongly to a distinctive and unique shopping experience. 2. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; As noted, the proposed ordinance would maintain appropriate prohibitions on undesirable (or incompatible) land uses within the Downtown. These protections will prevent establishment of land uses that could detrimentally affect the public interest, health, safety, convenience, or general welfare of the city. 3. The proposed amendment is internally consistent with other applicable provisions of this Zoning Code. In addition to Title 21 (Zoning), the proposed ordinance would also make a minor change to Title 5 (Business Licensing) pertaining to live entertainment permits in order to bring the terminology into alignment. Attachments: 1. Draft Planning Commission Resolution 2. Public Hearing Chronology 3. Draft City Council Ordinance 13.d Packet Pg. 359 Attachment: PC Staff Report (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Staff Report ~ Planning Commission Meeting of August 13, 2019 Page 8 of 8 PLN2013-12 ~ C-3 Downtown Zoning Update Prepared by: Daniel Fama, Senior Planner Approved by: Paul Kermoyan, Community Development Directo 13.d Packet Pg. 360 Attachment: PC Staff Report (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) 7:30 P.M. CITY OF CAMPBELL PLANNING COMMISSION MINUTES AUGUST 13, 2019 CITY HALL COUNCIL CHAMBERS TUESDAY The Planning Commission meeting of August 13, 2019 was called to order at 7:30 p.m., in the Council Chambers, 70 North First Street, Campbell, California by Chair Rivlin and the following proceedings were had, to wit: RM 1 CAI 1 Commissioners Present: Chair: Vice Chair: Commissioner: Commissioner: Commissioner: Commissioners Absent: Commissioner: Staff Present: Community Development Director Senior Planner: Associate Planner: City Attorney: Recording Secretary: APPROVAL OF MINUTES Andrew Rivlin Mike Krey Adam Buchbinder Stuart Ching Terry Hines Maggie Ostrowski Paul Kermoyan Daniel Fama Stephen Rose William Seligmann Corinne Shinn Motion: Upon motion by Commissioner Krey, seconded by Commissioner Hines, the Planning Commission minutes of the meeting of July 23, 2019, were approved as submitted. (4-0-1-1; Commissioner Ostrowski was absent and Commissioner Ching abstained) 13.e Packet Pg. 361 Attachment: PC Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Campbell Planning Commission Minutes for August 13, 2019 Page 17 3. PLN2013-12 Public Hearing to consider a. City -initiated Zoning Code Amendment to amend Title 21 and Title 5 of the Campbell Municipal Code to establish a new list of allowable land uses for the C-3 (Central Commercial District) Zoning District. Staff is recommending that this item be deemed Categorically Exempt under CEQA. Tentative City Council Date: September 3, 2019. Project Planner: Daniel Fama, Senior Planner Mr. Daniel Fama, Senior Planner, provided the staff report. Chair Rivlin asked if there were questions for staff. Commissioner Hines said Planner Daniel Fama did an excellent job on the reportbut asked about a limitation on sex shops. Planner Daniel Fama said he added that to it last week. Commissioner Buchbinder said it makes for fewer things requiring a CUP. It seems more straightforward. What about wireless? Planner Daniel Fama said that wireless refers to Cell Towers. Commissioner Buchbinder asked why tattoo shops are not allowed. Planner Daniel Fama said that is a troubled business category in the past. Not allowing a particular use is traditionally a form of discouragement. Commissioner Buchbinder asked that opinion is dated from when? Commissioner Ching said he had the same question. Last time it was an issue? Planner Daniel Fama said he has not seen ,an application in the 12 years he's been around. Commissioner Ching said it seems it is not a problem. Planner Daniel Fama said there are some tattoo establishments in the City. They're not disallowed but are generally located in General Commercial Zoning Districts as opposed to the Central Business District that is Downtown. Commissioner Hines said there have been tremendous changes in terms of wireless. Planner Daniel Fama said that there are other provisions for wireless within a public right- of- way that is something Public Works is work on. He added that if a use is deemed not to be compatible by the Community Development Director there is always an appeal process available at a $200 appeal fee cost. 13.e Packet Pg. 362 Attachment: PC Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Campbell Planning Commission Minutes for August 13, 2019 Page 18 Commissioner Krey said that staff provided a great report on this. This Ordinance makes things easier for everyone. He verified that this doesn't change the Downtown Campbell Alcohol Policy. Planner Daniel Fama replied yes. r Commissioner Krey asked about medical cannabis. Planner Daniel Fama said that that is currently prohibited, and he is not sure if there are any plans to change that at this time. City Attorney Bill Seligmann verified there were no plans to change that. Chair Rivlin opened the Public Hearing for Agenda Item No. 3. Chair Rivlin closed the Public Hearing for Agenda Item No. 3. Director Paul Kermoyan: Reported that in the past the Downtown was not active or lively. Instead there were lots of offices and second-hand shops. Since then lots of changes have been made to activate the street. The Redevelopment Agency had a large part in helping the Downtown to reach its current success. Added that what is there today is what both the Council and Redevelopment Agency wanted to reach. Stated that Council wants to allow more uses that still somewhat pedestrian friendly in nature. Commissioner Hines asked what appropriate uses are and how would this Ordinance change control over the Downtown. Planner Daniel Fama said there is a matter of risk. We don't really know what types of activities are going to show up. However, change will likely happen slowly. Commissioner Buchbinder asked what a banquet facility is. Planner Daniel Fama said Villa Ragusa is considered a banquet facility with large spaces that are available for larger events. Commissioner, Buchbinder asked how much of Downtown is more than one floor. Planner Daniel Fama said he didn't know that off hand. Commissioner Buchbinder asked if there are plans to expand the Winchester and East Campbell Avenue plans as well. Planner Daniel Fama,said that Council didn't want to do so now but those plans could be expanded later. 13.e Packet Pg. 363 Attachment: PC Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Campbell Planning Commission Minutes for August 13, 2019 Page 19 Commissioner Ching asked staff about the potential for "pop-up" shops that are the trend right now. Where could that fit in? Planner Daniel Fama said that pop -ups are limited term retail or limited restaurant activities ,and are not necessarily prohibited. Chair Rivlin asked about considering having office uses on the first floor with a Conditional Use Permit. Commissioner Hines stated that could take us backwards to a time when the Downtown was somewhat quiet. Planner Daniel Fama said that would modifying the draft. Director Paul Kermoyan said that certain occupancies require fire sprinklers which equates a cost the tenant is not willing to undertake. Motion: Upon motion of Commissioner Hines, seconded by Commissioner Ching, the Planning Commission adopted Resolution No. 4523 recommending that the City Council approve a City -initiated Zoning Code Amendment to amend Title 21 and Title 5 of the Campbell Municipal Code to establish a new list of.allowable land uses for the C-3 (Central Commercial District) Zoning District, changing office uses to a conditional use on the ground floor, by the following roll call vote: AYES: Buchbinder, Ching, Hines, Krey, and Rivlin NOES: None ABSENT: Ostrowski ABSTAIN: None Chair Rivlin advised that this action would be considered by the City Council for final action at its meeting on September 3, 2019. REPORT OF THE COMMUNITY DEVELOPMENT DIRECTOR Director Paul Kermoyan made the following additions to his written report: The California APA (American Planning Association) Conference will occur September 15th through 18th in Santa Barbara. Advised that he can send up to two Commissioners. Commissioners Ching and Buchbinder indicated their availability to attend. Reminded Commissioner Buchbinder that under the requirements of the updated Planning Commission Ordinance, as the newest appointed Commissioner he would be required to attend the League of California Cities Planning Commissioner Academy two years in a row. The next LCC PC Academy will occur in March 2020. 13.e Packet Pg. 364 Attachment: PC Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Campbell Planning Commission Minutes for August 13, 2019 Page 20 ADJOURNMENT The Planning Commission meeting adjourned at 10:38 p.m. to the next Regular Planning Commission Meeting of A t 27, 2019. SUBMITTED BY: APPROVED BY: ATTEST: An Paul 0 13.e Packet Pg. 365 Attachment: PC Meeting Minutes (Aug. 13, 2019) (PLN2013-012 ~ C-3 Zoning District Land Use Update) Previous Meeting History  March 5, 2013 (City Council Study Session): The Council considered a comprehensive report outlining applicable City policies and standards, as well as an analysis providing an explanation for the observed shift. At the conclusion of the study session, the Council directed staff to proceed with preparation of an amendment to the Zoning Code that would require a Conditional Use Permit for conversion of existing retail space to restaurant use in the C-3 Zoning District.  July 16, 2013 (City Council Study Session): Staff presented a tailored approach that would require a Conditional Use Permit for a restaurant conversion tied with findings that would direct the Planning Commission to consider potential "over-concentration" of restaurants in the immediate area. Although the Council expressed a concern for the loss of long-term retailers, the consensus was not to proceed with a CUP permit process at that time. Instead, the Council directed staff to continue to monitor the situation.  February 17, 2015 (City Council Study Session): At the request of the Council, the issue was revisited. The Council was provided with updated information highlighting the changes over the preceding two years. The Council discussed various issues including defining an appropriate "mix of uses," the role of alcohol service, and consideration of a moratorium for new restaurants. The Council requested that the study session be continued and reconvened jointly with the Planning Commission to allow for input and discussion with the Commission.  June 16, 2015 (Joint City Council/Planning Commission Study Session): At the joint study session, the Commission and Council received public comment and had a wide- ranging discussion on the role of restaurants in the Downtown, the future of local retail, potential regulatory options, and the City's economic development efforts. At the conclusion of the meeting, there was an emerging consensus that the Conditional Use Permit requirement should be reviewed again. As a result, preparation of Zoning Code Amendment was placed on the FY2016 Work Plan for staff to bring forward within the fiscal year.  February 23, 2016 (Planning Commission Public Hearing): As directed by the Work Plan item, staff prepared a zoning code amendment that would have required approval of a Conditional Use Permit for any new restaurant, tied to specific findings intended to encourage an appropriate balance of uses, diversification of eating establishments, and to limit an "overconcentration" of restaurants in the immediate area. The Planning Commission supported the proposed amendment and forwarded a recommendation to the City Council.  March 15, 2016 (City Council Public Hearing): The Council's discussion concluded with a decision not to adopt the proposed amendment. Although there was support for a Conditional Use Permit process, the Council directed staff to review incentives that may encourage retailers as well as reviewing the list of allowable uses in the Downtown. The thought process for this direction hinged on the idea that if property owners had a broad choice of use types, the market would correct the displacement of retail. 13.f Packet Pg. 366 Attachment: Meeting History (PLN2013-012 ~ C-3 Zoning District Land Use Update)  February 7, 2017 (City Council Study Session): The Council held a study session to continue the ongoing discussion on the mix of uses in the Downtown. At the meeting's conclusion, the Council provided general direction and questions for subsequent follow- up, including: revise the list of allowable uses to include additional uses, provide an allowance for historic buildings to have more use flexibility, eliminate the parking exception for restaurants, modify the signage standards to allow secondary (smaller) wall signs for menu listings (and similar signs), explore electronic parking signage and a trolley system, and streamline commercial tenant improvement (TI) permits.  May 2, 2017 (City Council Public Hearing): The City Council considered a revised zoning text amendment that identified additional land uses that could be principally or conditionally permitted in response to Council direction. Public comments expressed concern that new land use types would vary from the goal of creating a vibrant Downtown. As a result of the public comment and Council deliberation, staff was directed to look at use types that were pedestrian friendly.  June 6, 2017 (City Council Public Hearing): Due to a long agenda, the item was continued without Council action being taken.  August 15, 2017 (City Council Public Hearing): Based on the Council feedback from May 2, 2017, staff presented a new land use table focused on encouraging pedestrian- oriented uses and revised signage and parking requirements. The Council felt that what was presented remained inconsistent with their direction. As a result, the Council continued the meeting and approved appointment of an ad-hoc committee to review the matter further.  May 25, 2018 (City Council Public Hearing): Following meeting of the City Council ad- hoc committee on October 17, 2017 and preparation of a benchmark study by the Economic Development Division, staff presented a new approach to managing land use in the Downtown including new definitions and creation of a new land use table. The Council continued the meeting and requested staff prepare a table comparing the uses currently allowed and those that would be allowed under the expanded list.  July 3, 2018 (City Council Public Hearing): Staff returned with the requested information. The City Council formally initiated preparation of a Zoning Code Amendment based on the staff's approach. 13.f Packet Pg. 367 Attachment: Meeting History (PLN2013-012 ~ C-3 Zoning District Land Use Update) 1 Daniel Fama From:Laurie Doss <2lldoss@gmail.com> Sent:Tuesday, February 4, 2020 1:13 PM To:Daniel Fama; Daniel Fama Subject:Letter to City Council- Please email me you received this, Thanks We respectfully request the City Council to vote and approve to expand dual use retail / service businesses and pedestrian-oriented activities without requiring a Conditional Use Permit in Downtown Campbell. We understood you want a balance of Retail, Restaurants and Service and we feel a less regulatory approach would bring a better variety of businesses into Downtown Campbell. We would also ask the City Council not to require a Conditional Use Permit for conversion of existing retail space to restaurant use. Going back to 2012 the City Council and Planning Commission has held numerous meetings, multiple study sessions and public hearings with no resolution. Retail has changed over the years and a retail business needs to combine retail, service, repair and instruction all in the same location to survive. When a retail store in Downtown Campbell has more options to offer a customer, it will bring additional foot traffic on a daily basis and we will see a higher business success rate. There are more going out of business sales: Forever 21, Walgreens, Dress barn, GameStop, Gap to name a few have already announced over 9,000 store closings in 2019 - way more than we saw during all of 2018. That’s according to Core sight Research, which predicts the number could hit 12,000 by the end of the year. As online shopping continues to grow, another 75,000 stores could be lost by 2026. https://moneywise.com/a/retailers-closing-stores-in-2019 When we were trying to lease our space, we had a high rate of calls for restaurants and wine bars. Here is a partial list of businesses that would have liked to lease but were not allowed because of the currant zoning code in Downtown Campbell. Optician and glasses, Shoe Repair, Quilting supplies and classes, Bicycle sales and service, Cell phone sales and repair, Hobby shop and repair, P O Box-gift wrapping-cards and shipping, Beauty supply and salon (in the back of the unit), Portrait studio and picture framing, Pottery studio sales and classes Golf clubs, lessons / instructions. Please vote and approve to expand dual use retail / service businesses and pedestrian-oriented activities without requiring a Conditional Use Permit and not to require a Conditional Use Permit for conversion of existing retail space to restaurant use in Downtown Campbell. Sincerely, Laurie and Dana Doss 241 East Campbell Ave. Campbell, Ca. 13.g Packet Pg. 368 Attachment: Correspondence (PLN2013-012 ~ C-3 Zoning District Land Use Update) Planning Department, City Council Members, Mayor and City Manager 8/8/2019 Thank you for taking the time to read our letter and address our concerns for Downtown Campbell. We know your time is valuable and we would be grateful if you would allow additional types of dual use retail / service businesses in Downtown Campbell on Campbell Avenue. We understood you want a balance of Retail, Restaurants and Service. Retail has changed over the years and retail businesses need to combine retail, services, repair and instruction all in the same store to stay open. When a retail store in Downtown Campbell has more options to offer a customer, it would bring additional foot traffic on a daily basis and we will see a higher business success rate. When we were trying to lease our space, we had a high rate of calls for restaurants and wine bars. Here is a partial list of businesses that would have liked to lease but were not allowed because of the current zoning code in Downtown Campbell. Beauty supply and salon (in the back of the unit) Portrait studio and picture framing Optician and glass frames P O Boxes, gift wrapping, cards and shipping Shoe Repair Quilting supplies and classes Bicycle sales and service Cell phone sales and repair Golf clubs, lessons / instructions Hobby shop and repair Pottery studio sales and classes Mommy and me classes Going back to 2012 the City Council and planning Commission has held multiple study sessions and public hearings. We feel a less regulatory approach for retail / service businesses without requiring a Conditional Use Permit would bring a variety of businesses into Downtown Campbell. We would also ask the City Council not to require a conditional use permit for conversion of existing retail space to restaurant use. We respectfully request the City Council to vote and approve to expand dual use retail / service businesses in Downtown Campbell. If we can be of any assistance please do not hesitate to contact us. Sincerely, Laurie and Dana Doss 241 East Campbell Ave. Campbell, Ca. 13.g Packet Pg. 369 Attachment: Correspondence (PLN2013-012 ~ C-3 Zoning District Land Use Update) 1 Daniel Fama From:Patti Allen <faceregime@yahoo.com> Sent:Tuesday, August 13, 2019 5:45 PM To:Daniel Fama Subject:Zoning Amendment Hello Daniel,   My name is Patti Allen and I am the sole owner of La Bella Faccia here in Downtown Campbell , 401 E. Campbell Ave  Unit A, my new location. I was located on Civic Center Drive for 15yrs before closing business for 3yrs. I would like to  share my support for allowing the uses of personal services for those small businesses that are not located at the  required 50 feet from the E. Campbell Ave street. This would benefit my type of business substantially, as I find that my  perspective customers who are walking in my new location here in downtown are asking for the experience of a  personal skincare service from me. If I could give the experience with no limitations, it will increase my retail sale of the  skincare line I carry significantly, as this experience gives the customer to see and feel the immediate benefit of the  product and how it changes up the skin which lead into retail sales 95% of the time. Without personal services I am  finding retail sales to be a challenge with what I sale and leads me to be highly concerned if I will be able to fulfill my  time here as a business owner!    Please, consider and share my full support in the proposal at hand for the allowance for businesses like mine to offer  personal services!     Thank you,  Patti Allen       Sent from my iPad  13.g Packet Pg. 370 Attachment: Correspondence (PLN2013-012 ~ C-3 Zoning District Land Use Update)