Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: SANTERO WAY AND TOC REZONING WORKSHOP
Date: September 23, 2025
Written by: Noah Housh, Director of Community Development Recommendation
It is recommended by the Planning Commission and the Community Development Department that the City Council consider the proposed policy changes identified by staff as necessary to implement the Transit Oriented Communities (TOC) Policy requirements from ABAG/MTC, provide input and direction, and make a recommendation regarding their method of implementation and adoption to inform drafting of a future ordinance.
Background
.In August 2001, the Santero Way Specific Plan (SWSP) was adopted, and originally envisioned a mixed-use office neighborhood adjacent to the SMART rail station. The primary objective of the original SWSP was to increase the number of residents and employees within walking distance (1/2 mile) of the SMART station. Specifically, the original Plan envisioned the development of 198 new dwelling units, 339,200 square-feet of office and institutional uses, 68,000 square-feet of retail uses, and 57,000 square feet of supporting parkland/open space.
On August 8, 2023, in response to stalled development within the Plan area, the City Council authorized the City Manager to enter into a professional services agreement with 4LEAF Inc. and several subconsultants to provide planning consulting services to complete the Santero Way Specific Plan Update.
In September 2023, the Association of Bay Area Governments (ABAG) and Metropolitan Transportation Commission (MTC) published draft administrative guidance on their TransitOriented Communities (TOC) policies. These policies are intended to intensify land uses within ½ mile of transit hubs with the primary goal of increasing the overall supply of housing while also supporting the creation of jobs and increasing transit ridership, in keeping with the Plan Bay Area 2050. For Cotati, this area primarily covers properties along East Cotati Avenue. These criteria essentially serve to increase residential and commercial densities, support alternative transportation, and reduce the perceived impediments to development. While adoption of the TOC policies is voluntary for Bay Area jurisdictions, TOC compliance will be required to retain eligibility for One Bay Area Grant (OBAG) funds by 2026, which have amounted to approximately $1,000,000 in annual funding for the City of Cotati in recent years.
In April 2024, staff identified a potential opportunity for the environmental analysis being prepared for the SWSP Update to be expanded to additionally analyze the potential impacts of implementing ABAG/MTC TOC policies on the other eligible parcels within the ½ mile radius surrounding the Cotati SMART station (graphic attached). Including this analysis in the environmental impact report (EIR) already underway was approved in order to provide significant cost savings, expedite the analysis, and prepare the City for future adoption of the TOC policies.
In February of 2025 the Santero Way Specific Plan (SWSP) was adopted after 18 months of public engagement, environmental analysis and policy development. One of the core themes of the SWSP is the focus on the neighborhood’s proximity to the SMART station and the benefits of intensified land uses around the train station. These themes are captured through a range of policy ideas often labeled Transit Oriented Development. As was discussed during the review of the Santero Way Specific Plan (SWSP), some of the policies adopted with the SWSP were influenced by the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commission (MTC) Transit Oriented Communities (TOC) policy, which comes from their regional planning tool to manage growth in the nine counties of the San Francisco Bay Area, Plan Bay Area 2050+.
Plan Bay Area 2050+ is similar to a General Plan for a city or county but considers and plans for growth on a regional scale. ABAG/MTC identify goals and priorities to guide and manage Bay Area growth and use various methods to achieve compliance with the policies and programs, including allocation of grant funding such as the One Bay Area Grant (OBAG). In Cotati, OBAG provided significant funding for road infrastructure projects in recent years. For local jurisdictions seeking to comply with the Plan Bay Area, TOC has become one of the most impactful planning policies to come out of the 2050+ update process. This policy seeks to intensify land use in close proximity to transit stations and also standardize TOD development criteria throughout the Bay Area.
Because of the unique variety of jurisdictions and transit throughout the region, creation of the TOC policy implementation metrics has been an ongoing and iterative process spanning several years. Since the SWSP project was approved, implementation focus has moved from land use requirements within a ½ mile radius of the SMART station, to more broad policy requirements such as “The Three P’s of Housing”: Production, Preservation, and Protection; automotive and bicycle parking management; and efforts to facilitate circulation and station access. Required implementation of TOC policy is generally limited to the ½ mile radius around the transit stop (see pg. 27 MTC TOC Policy Version 1.1 May 2025), however the nature of some of the policy requirements make limiting enforcement to this geographic area of the City challenging.
In May 2025 the ABAG/MTC TOC policy guidance document was finalized allowing Community Development department staff to pivot their TOC policy efforts to the remaining properties within the broader half-mile radius from the SMART station not within the SWSP boundary. Due to the unique geography of the City, this primarily encompassed properties on E.
Cotati Avenue, from La Salle Avenue east to the SWSP. While demonstrating compliance with TOC policy direction is important to grant infrastructure funding, taking a thoughtful and community-informed approach to the land use changes in this established area is also critical to the successful implementation of these policies.
On June 25, 2025, staff built upon the outreach and engagement efforts of the SWSP, inviting all residents and property owners within a 500-foot radius of the remaining TOC parcels to a neighborhood meeting at Cotati City Hall. Four people attended the meeting and several others called in to ask questions and voice their perspectives. Generally, interested individuals were supportive of the policy efforts to get more homes constructed and to generate more business activity, but were concerned about parking impacts that could result from these intensified business activities (given the inability of the City to require any parking minimums under the proposed policies).
OBAG Funding and Eligibility
Future OBAG funding cycles will consider funding revisions that prioritize investments in transit station areas that are subject to and compliant with the TOC Policy. To ensure eligibility for OBAG 4 funding and any other discretionary funding that may be linked to TOC Policy compliance, jurisdictions are being directed to demonstrate compliance prior to adoption of OBAG 4 (expected in 2026). Compliance with TOC policies is anticipated to be measured on a 100-point framework equally measured across four categories: Density, Housing, Parking, and Station Access. These categories are further divided into specific standards, each of which is assigned a numeric point value. As proposed, staff anticipates the proposed changes will result in the City being near full compliance with TOC policies.
Analysis/Discussion
Land Use and Planning Considerations
TOC Policy Summary
TOC policy implementation recommendations across the four categories include minimum residential and commercial density; affordable housing production, preservation, protection, and business stabilization; parking management; and transit access and circulation. To be deemed compliant jurisdictions must implement policy options across these categories, based on available transit “tiers.” These tiers are defined by the scale, frequency and intensity of the transit availability in each jurisdiction, with Cotati (and all north bay jurisdictions) being categorized as “Tier 4’. Certain standards are specifically required (residential and commercial density) while others may be selected from a menu of policy options. For the latter, ABAG/MTC allows jurisdictions to choose from a provided list for compliance with several of the TOC policy categories.
Staff is proposing to implement the policy direction through the creation of two new zoning districts (Santero Way (SW) and Transit Oriented Community (TOC)); modifications to existing chapters of the Cotati Municipal Code (CMC); and the implementation of new programs, information about which will be included on the City website. Below, staff have provided a summary of the TOC compliance requirements, identifying which policy areas allow jurisdictions choices, and highlighting the policy compliance path recommended by staff. More detailed information about compliance implementation with each policy choice is included in the MTC Administrative Guidance: Transit Oriented Communities (TOC) Policy (Version 1.1. May 2025), attached.
1. Zoning and Land Use
-Minimum density zoning near transit: Tier 4 jurisdictions must allow 25-35 units per acre of residential and mixed-use development and a commercial Floor Area Ratio (FAR) of 1.0-3.0. -Reduced parking requirements: Tier 4 jurisdictions must eliminate minimum parking requirements and implement a maximum of 1.5 parking spaces per residential unit and 1 space per 250 square feet of commercial square footage.
-Require one secured bicycle parking space per residential unit and one secured space per 5,000 square feet of commercial office land uses.
2. Affordable Housing and Commercial Stabilization
The TOC Policy requires jurisdictions to adopt at least six housing policies, selected from a menu of 26 strategies identified in the TOC policy. Jurisdictions should select at least two policies for each of the “3Ps” of Housing: affordable housing production, preservation, and protection. Additionally, jurisdictions must select at least one commercial stabilization policy from a menu of four options. Staff has provided a summary of the policies below, including a statement of clarifying information and highlighting the recommended policies from each category.
Production (at least 2 required)
-Inclusionary zoning-15% inclusionary; affordability across all units=80% AMI avg. -Affordable housing funding-Funding commitment
-Overlay zones-80% AMI avg.-Cotati Density Bonus meets many qualifications. -Public land for affordable housing- 120 E. Cotati Ave
-Ministerial approval-Broadens SB 35 applicability; less local control. -Public/Community Land Trusts-Funding commitment
-Streamlined entitlement processes-Matches SB 330 vesting rights.
Preservation (at least 2 required)
-Funding for unsubsidized housing-Funding commitment.
-Funding to support preservation capacity-Funding commitment for CLTs and CBOs -Tenant/community purchase rights-Funding commitment required. -SRO preservation-Cotati has no SROs
-Condo conversion restrictions- Implements HE Program 4-1 -Public/Community Land Trusts-Funding commitment
-Mobile home preservation-Existing MHP regulations adequate. Implements HE Program 1-6 -Code enforcement to prevent displacement-Limit enforcement activities and/or require alternative housing for displaced residents
Protection (at least 2 required)
-Just cause eviction-Expand definitions for circumstances justifying eviction and enforce. -Right to return-Potential to combine with streamlined entitlement. Consider. -Legal assistance-Funding commitment required.
-Foreclosure and rental assistance-Funding commitment required. -Rent stabilization (Mobile Home Park)-Existing code adequate to comply -Anti-harassment protections
-Code enforcement to prevent displacement- (Implements HE Program 4-5) Commercial Stabilization (at least 1 required)
-Small business/non-profit overlay-Zoning overlay to protect small businesses from development -Preference policies-Small business and non-profit preference policy for new commercial spaces -Financial assistance programs-Dedicated funded to stabilize small businesses -Small business advocate offices-Dedicated “ombudsman” for businesses. (Consistent with FY 2025-26 CD Work Plan)
3. Parking Management (all policies must be implemented in the TOC areas) In addition to the parking and bicycle parking standards identified above, the TOC Policy requires eight parking management policies within the ½ mile TOC area. Current city of Cotati parking policies are not fully aligned with the TOC Policy and therefore staff have drafted municipal code updates to bring the City’s established parking policies into TOC conformance (see attached draft redline code amendments). Specifically, it is recommended that the reduced parking ratios be adopted for the TOC policy area (1/2 mile surrounding the SMART station) but some of the more general parking standards and policies be adopted citywide to both support compliance with the TOC Policy and to facilitate parking management in the current era of statemandated reduced parking requirements.
Requirement Response
Residential Parking Minimums Proposed in TOC: 0 spaces per unit Residential Parking Maximums Proposed in TOC: 1.5 spaces per unit Commercial Parking Minimums Proposed in TOC: 0 spaces per sq ft Commercial Parking Maximums Proposed in TOC: 4 spaces/1000 sq ft Allow Shared Parking Between Different Land Uses Current Codes Consistent Allow Unbundled Parking (Separate the Cost of a
Parking Space from Rent/Sales Price)
Proposed City-wide
Residential Bicycle Parking: 1 Secure Space per
Unit
Proposed in TOC
Office Bicycle Parking: 1 secure Space per 5,000
Occupied sq. ft.
Proposed in TOC
Similar to the housing policy options discussed, the TOC Policy requires adoption of one complementary parking management strategy for the TOC area, selected from a menu of options listed below. The staff recommendation to meet the TOC compliance requirements is highlighted.
Alternative Parking Policy Options available in TOC
-Curb Strategy/Management (Intended to help address reduced parking and alternative transportation modes, city-wide)
-Parking Benefit District (PBD)
-Demand-Responsive Pricing
-Priced Parking
4. Station Access and Circulation
The TOC Policy includes four strategies related to station access and circulation. Generally, it is staffs’ perspective that Cotati is partially compliant with the TOC access and circulation requirements with existing policies such as the City’s past commitments to complete streets and the SMART station gap analysis completed with the SWSP Update. Staff recommended zoning changes to implement mobility hub elements into multi-family and mixed-use developments (see redline code changes) should complete the City’s needed station access and circulation policies for TOC implementation. These policy changes are intended to increase access to transit while supporting sustainable transportation options.
Requirement Response
Adopt a jurisdiction-wide Complete Streets Policy Compliant since OBAG 2 Prioritize implementation of active transportation projects in TOC area(s)
See future CIP Project
List and Project COAs
Complete an access gap analysis and capital improvement program for station access
Included in SWSP Update
and ATP
Identify Mobility Hub planning and implementation opportunities in TOC area(s)
Zoning Changes proposed
City-wide
5. Recommended Compliance Pathways
ABAG/MTC have identified multiple pathways for jurisdictions to demonstrate TOC policy compliance including adoption of a TOC overlay zone; certification of a TOC-compliant Specific Plan or General Plan update; and/or project-by-project review and approval under TOC criteria. For the City of Cotati, compliance is proposed to be achieved through a combination of funding expenditures, adopted revisions to the CMC, and administrative programs intended to implement the policy direction. Primarily, compliance will be achieved through code changes proposed to the TOC 1/2-mile radius and more broadly the entire city (where appropriate and potentially beneficial). The City purchase and development of 120 E. Cotati Avenue is proposed to meet the production requirement given that the funding amount is adequate and identified plans meet the TOC policy requirements. Lastly, administrative commitments to department programs and policy implementation are proposed to meet the requirements regarding commercial stabilization and tenant protections.
To formulate the highlighted recommendations above, staff evaluated the criteria and choices, comparing the TOC policy direction with the adopted Council goals, community concerns, budget availably, in-progress/pending City commitments, and state law mandates. This analysis resulted in a recommended compliance approach that is expected to achieve substantial compliance with the TOC policy direction while also meeting the adopted budget and policy goals identified by the City Council and established state legislation. In some instances where benefits from the updated policies are anticipated to address challenges beyond the TOC boundary, or can be implemented with existing policy, staff has recommended these be adopted city-wide to facilitate implementation.
Additional Code Clean Up
Occasionally staff identify challenges with code implementation based on missing, unclear, or inconsistent language within the Cotati Municipal Code (CMC). Staff seeks to address these issues as opportunities arise (including when seemingly unrelated ordinances are prepared). For the TOC ordinance changes, staff is also proposing to recategorize “Tattoo and body piercing services” from the ‘personal services-restricted’ land use category, to the ‘personal services’ land use and to add Retail Tobacco Store into the land use tables and definitions. Below staff has provided additional details on this proposal.
Tattoo and Body Piercing-If supported, this change would greatly expand the allowable locations tattoo artists may operate from within the City. Currently personal services-restricted categorizes tattoo businesses similarly to palm readers and pawn shops, limiting these uses to the CE zoning district and only in second floor and secondary (non-visible) locations. This classification effectively prohibits tattoo businesses from operating in other commercial areas of the city such as downtown and along the Gravenstein Hwy corridor. If changed to personal services, tattoo studios would be viewed more like a salon or esthetician and would be allowed as a permitted land use more broadly throughout Cotati. The current classification has limited several new businesses from opening in Cotati, and the tattoo studio use is much more mainstream than it has historically been viewed as leading staff to propose the change for consideration.
Retail Tobacco Store- Retail tobacco stores (aka “smoke shops”) are not permitted at any locations within the City of Cotati. The two in operation were previously authorized and are “non-conforming” because the use is no longer permitted. The Chapter 17 (Land Use) of the CMC utilizes “permissive” zoning, meaning if a use is not listed, it is deemed to be not permitted. Additionally, the regulations governing tobacco retailers are included in Chapter 9 Public Peace, Safety and Morals of the CMC. This combination often creates confusion with project applicants and other parties interested in tobacco related land uses. To address this and clarify that retail tobacco stores are prohibited in Cotati, staff is proposing updating the code to list this land use, include its definition and clearly identify it is not permitted.
Planning Commission Review
During their September 15, 2025, review of the proposed TOC implementation options, the Planning Commission indicated general support for the staff recommendations, both regarding TOC policy implementation and the proposed “clean up” changes. After receiving the presentation on the proposal and asking questions to ensure complete understanding, the commission did not identify any significant concerns. Additional code clean up changes to incorporate a micro-distillery land use into the CMC and to ensure vintage clothing stores are permissible were recommended to the City Council.
IV. General Plan Consistency
If supported, these changes will be reviewed for compliance and consistency with the Cotati General Plan. Initial analysis has identified the following General Plan policies and actions as supporting the proposed changes to the municipal code:
GP Policy LU 2.5: Locate medium and higher density housing within easy walking or bicycling distance of public facilities, services, transit, and major employers.
GP Policy LU 2.10: Encourage mixed-use, pedestrian-, and transit-oriented development, with a focus on the Hub and major corridors.
Policy LU 2.7: Encourage social interaction between neighbors in new residential developments by providing opportunities for community gathering in common areas, parks, and neighborhood commercial centers.
Action LU 4a: Review and update the City’s development permitting process to provide a streamlined and straightforward process. At a minimum, the review may consider:
1. Methods to streamline and simplify the process, including the process for review by City staff as well as the various committees and commissions.
2. Opportunities to reduce redundancies and delays.
3. Methods to prioritize and fast-track in-fill development projects and re-use projects that are consistent with the General Plan and Land Use Code.
4. Updating the City’s website to provide additional information to the public regarding development application requirements, and the building permit and land use approval process.
Policy H-3-2: Provide incentives for affordable housing development, including density bonus, expedited processing, relaxation of development standards, and either reduction, delay, or waiver of fees when financially feasible.
Financial Considerations
Other than the staff time required to conduct the analysis and present the information, no direct financial impacts to the general fund were identified resulting from the analysis of TOC policy compliance. However, as has been identified, OBAG funding eligibility is being updated to include TOC compliance as a critical factor in funds allocation and grant approval. Given that a significant portion of the City’s capital improvement plan (CIP) budget has historically been funded by OBAG funds, a lack of compliance with TOC policy could significantly impact the City’s ability to fund future CIP projects. Additionally, a strong TOC compliance score could allow the City to increase its competitiveness for these funds and receive additional funding.
Because ABAG/MTC is still finalizing the TOC compliance criteria, the scope and benefit of this additional competitiveness is undetermined.
Environmental Issues
In keeping with CEQA Guidelines Section 15168(a), a Program Environmental Impact Report (PEIR) was prepared to analyze and evaluate the environmental impacts associated with the Santero Way Specific Plan Update and implementation of the Transit Oriented Communities (TOC) zoning updates. In accordance with CEQA Guidelines Section 15094(d), after the City Council approved adoption of the Specific Plan Update, the city filed a Notice of Determination with the County Clerk. Following adoption of the updated SWSP, proposed development projects that are consistent with the Specific Plan would undergo a streamlined CEQA review process. The proposal to adopt an ordinance implementing the TOC policies is seen as consistent with the EIR analysis and determination, as well as the environmental impact analysis of the Cotati General Plan EIR.
Both of these complete EIR (draft and Final) documents and all appendices are available for public review on the City website. These documents include impact analysis across all categories analyzed under CEQA; all comments received throughout the process and responses to each; summary of impacts all mitigation measures identified to mitigate to less than significant impacts.