Cotati City Council
Agenda Staff Report
Item type: REGULAR AGENDA (ACTION)
To: City Council
Subject: FREEWAY ORIENTED DEVELOPMENT ZONING OVERLAY
Date: July 28, 2026
Written by: Noah Housh, Director of Community Development Recommendation
It is recommended that the City Council:
1. Consider establishing a Freeway Oriented Development (FOD) Overlay District applicable to properties located in proximity to U.S. 101, with an initial focus on the industrial district west of the freeway; and
2. Direct staff to initiate the necessary zoning code amendments to implement the overlay district consistent with the direction of the Planning Commission and City Council.
Background
In June 2025, the City Council adopted the 2026/27 fiscal year work plan which included a project for the Community Development Department to develop a freeway-oriented zoning overlay. The City's freeway-adjacent commercial properties represent a significant economic asset located along and in close proximity to a primary gateway into Cotati. Properties in these locations differ from traditional neighborhood-serving commercial locations in that they provide high visibility to regional travelers and motorists, expanded customer access, and the ability to directly advertise responses to changing consumer demand. These unique characteristics provide economic opportunities and benefits to businesses locating at these locations and the goal of this ordinance would be to allow flexibility for these locations to be leveraged by the Cotati business community.
Beginning in February 2026, City staff engaged directly with property owners and businesses in the proposed freeway-oriented overlay area to gather their input regarding the proposal. In discussions with property owners and business operators, several ideas to support reinvestment and business attraction were voiced including limitations on signage, restrictions on temporary promotional activities, and a expanded allowances of permitted commercial uses.
Building on these efforts, staff has evaluated strategies employed by other Sonoma County and California jurisdictions to support highway-commercial zoning districts and properties.
Examples throughout the state range from sign and billboard-oriented regulations (Lemoore, CA) to a separate zoning district with a completely unique development standards (Santa Fe Springs, CA). Locally, none of the other Sonoma County jurisdictions have a freeway-oriented overlay district specifically, however elements such as the City of Sant Rosa “auto-row sign program”, do exist within the County. The overlay district proposed for consideration in Cotati is intended to provide additional business support and flexibility, while maintaining compatibility with surrounding development and preserving community character.
On July 20, 2026, the Planning Commission conducted a public workshop to gather input and provide direction on the potential FOD overlay district.
Analysis/Discussion
.Purpose of an Freeway Oriented Overlay District
A Freeway-Oriented Development (FOD) zoning overlay is a tailored set of development regulations imposed over an existing base zone for properties adjacent to major freeways. These zoning tools are primarily designed to balance the high visibility and circulation improvements adjacent to freeways with community aesthetics, economic opportunity, and land use compatibility. Specific aspects of such a district may include land use and economic development elements, circulation and access infrastructure requirements and building design and aesthetic considerations. Below is a summary of some of the elements often considered in freeway-oriented development standards.
1. Land Use and Economic Development
-Overlays often encourage revenue-generating, auto-centric, or high-density uses that capitalize on the high traffic volume adjacent to a highway or freeway. -Commercial and Retail: Streamlines approvals for desirable uses which may benefit from freeway adjacency and/or visibility.
-Signage: Eases restrictions on large, highly visible signs or super-graphics, while enforcing guidelines on spacing, lighting, and Caltrans compliance.
2. Design and Aesthetics
-Because freeway-adjacent properties serve as a "gateway" to a city, overlays may impose strict aesthetic controls.
-Noise Mitigation: Requires upgraded insulation, specialized glazing, and specific building orientations to reduce freeway noise for residential occupants. -Architectural Design: Mandates higher-quality materials and design treatments for facades facing the freeway.
-Access and circulation requirements often include minimum block lengths, requirements for shared driveways and other traffic control infrastructure.
In Cotati, a majority of the properties under consideration for inclusion in the FOD overlay are fully developed, and the city has well developed design and landscaping requirements limiting the need for a fully formed set of distinct development criteria. Rather than envision complete redevelopment of the freeway adjacent neighborhood, the proposed regulations are intended to recognize the existing freeway-oriented commercial properties ability to function as regionalserving destinations and create limited changes to the development standards that differ from neighborhood-scale commercial criteria.
Given that the purpose of the identified proposed FOD Overlay District is focused to:
-Encourage re-investment in freeway-visible commercial properties; -Promote business retention and attraction;
-Increase economic activity and tax-generating uses;
-Improve visibility of existing businesses;
-Facilitate adaptive reuse of existing commercial buildings; and -Provide regulatory flexibility appropriate for freeway-oriented commercial development.
Proposed Signage Provisions
Visibility is a critical factor in the success of freeway-oriented businesses. Staff have found that existing sign regulations may limit the ability of businesses to effectively identify their location and attract motorists passing on the adjacent Hwy 101. Therefor the overlay district would increase sign allowances and flexibility through provisions such as:
-Increased sign area allowing an addition 50 square feet per business; -Additional monument sign opportunities;
-Taller freestanding signs where site conditions warrant; Other sign code elements which could be added include:
-Multi-tenant directory signage;
-Allowances for enhanced directional and wayfinding signage; -Allowance for additional temporary signs such as balloons, flags, pennants or streamers.
The FOD overlay would continue to regulate signage to ensure compatibility with community aesthetics, traffic safety requirements, and surrounding land uses. Based on input received from existing businesses and property owners, staff believes these modifications will improve commercial visibility while maintaining appropriate design standards. In addition to the freewayoriented code changes, staff is proposing other options to streamline signage review process citywide. These changes include elimination of a sign program requirement at commercial shopping centers and allowing monument sign heights of up to eight feet. These changes are intended to allow more unique sign designs and flexibility and improve visibility and capacity of freeway signs within the city. See the attached Exhibit A for additional information regarding the proposed sign code changes.
Temporary Sales Events and Promotional Activities
Many businesses rely upon periodic promotional activities to generate customer traffic and increase revenues. Existing regulations limit the frequency and duration of these types of “sales event” activities and requires a limited term permit to request approval. The fee for such a permit is $1,096 and can take approximately 45-60 days for approval.
The proposed overlay would provide increased flexibility by allowing for:
-Seasonal and holiday sales events;
-Outdoor merchandise displays;
-Vehicle sales promotions; and
-Business-sponsored community events.
Staff recommends allowing these activities “by right” through the establishment of objective operational standards addressing:
-Maximum duration;
-Hours of operation;
-Parking and access requirements;
-Noise limitations;
-Site maintenance; and
-Public safety considerations.
These standards are intended to balance economic activity with neighborhood compatibility.
Expanded Land Use Opportunities
The overlay would broaden the range of commercial uses permitted within designated freewayoriented areas. The attached redlined land use table (Exhibit B Table 2-3) identifies several uses proposed to be permitted “by right” and others proposed to go from a Use Permit to a Minor Use Permit to reduce the fees and time associated with the review of the requested activity.
Examples of uses proposed to be permitted either by-right or subject to existing zoning regulations include:
Doctors Offices
Examples of uses requiring a Minor Use Permit or Use Permit include:
Small Recycling Facility (5,000 sq. ft. +)
Specialized Schools/Training Facility
Antique or Collectible Store
Formula Based Restaurant (subject to the City’s adopted limitations) Medical Clinic/Urgent Care
Adult Daycare
Drive-through Services
Additional zoning information is available within the Cotati Municipal Code:
https://ecode360.com/46697372#46697372
More information regarding the definition of each of these uses can be found in the City’s zoning glossary: https://ecode360.com/46701370
Based on input received from business and property owners, staff finds that expanded land use opportunities will encourage occupancy of vacant commercial space and support long-term economic sustainability.
General Plan Consistency
Staff finds the proposed FOD Overlay District would be consistent with several goals and policies of the Cotati General Plan, including those related to economic vitality and land use.
Specifically, these policies include:
Economic Vitality
Policy EV 1.1: Attract and retain economic sectors in which Cotati has competitive advantages and capitalize on these strengths in order to diversify local economic activities.
Policy EV 1.12: Encourage the growth of new commercial enterprises within appropriately zoned areas while maintaining the stability of the existing commercial businesses.
Policy EV 1.15: Support and encourage the continued success and growth of Cotati’s industrial area
Land Use
Action LU1.b: Either combine the Commercial/Industrial and General Industrial districts into a single district that accommodates the range of industrial and commercial uses allowed in the Commercial Industrial land use designation, or amend the Commercial/Industrial and General Industrial designations to accommodate the range of uses allowed in the Commercial/Industrial land use designation.
Policy LU 1.4: Require new development to occur in a logical and orderly manner, focusing growth on infill locations and areas designated for urbanization on the Land Use Map (see Figure
7.1), and be subject to the ability to provide urban services, including paying for any needed extension of services.
Policy LU 3.6: Support the continued development and intensification of employment centers throughout all non-‐residential areas of the City.
Staff response: The proposed amendments would promote business attraction, business retention, while also encouraging growth of new commercial investment, employment opportunities, and generation of local revenues in the industrial area of the City in that allowing additional signage, sales events and expanded land uses in the area would allow new opportunities to attract regional customers. Further, these changes would expand the range of allowed uses in the Industrial district; focus growth on infill parcels in urbanized areas; and support intensification of employment centers in a non-residential area of the City. Based on this, staff has identified the proposed changes as consistent with the overall intent and policy direction of the General Plan.
Planning Commission Recommendations
On July 20, 2026, the Planning Commission held a workshop to consider the potential code changes proposed under the Freeway Oriented Development (FOD) overlay concept. After reviewing all of the material and hearing from several members of the public, the Planning Commission indicated general support for the project and made the following recommendations:
• Expand boundary south along Redwood Dr to 76 gas station. Maps of the proposed FOD area are included in the attached presentation deck.
• Supports allowing more sales and promotional activities by-right • Supports additional sign height and size
• Supports allowing additional temporary signs to support sales events • Revise the sign illumination requirements to modernize lighting, sign types and electrification methods
• Continue prohibition on electronic message board signs • Be conscious of unintended consequences of changing regulations, including light pollution and visual blight
• Keep updated regulations to west side of U.S. 101 only with this project Financial Considerations
There are no direct impacts to the general fund or fiscal year budget beyond the staff time associated with the public outreach and process to develop the ordinance. The intent of these changes is to create conditions where business activity can expand in this area of the City, therefore growing the customers served and revenue received by both businesses and the City.
Environmental Issues
The proposed public workshop is not a project under CEQA. No action is being taken by the City Council and therefore there is not a determination to be made regarding the environmental impacts. Where it can be determined 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. This general rule can be applied to activities which could be subject to the CEQA process, but which logic dictates should not be subject to CEQA review. Therefore, based on the information provided above, the proposed workshop is exempt from CEQA pursuant to Section
14.03.021 of the CEQA Guidelines in that there is no possibility that the activity may have a significant impact on the environment. Future consideration of the ordinance to formally implement the proposed changes will be a project under CEQA and will require a formal determination at that time.