Cotati City Council
Agenda Staff Report
Item type: PUBLIC HEARINGS (ACTION)
To: City Council
Subject: FREEWAY ORIENTED DEVELOPMENT ORDINANCE
Date: October 13, 2026
Written by: Noah Housh, Director of Community Development Recommendation
It is recommended by the Planning Commission that the City Council introduce an ordinance to:
1. Establishing a Freeway Oriented Development (FOD) Overlay District applicable to properties within the Commercial/Industrial zoning district located on Redwood Dr, adjacent to and visible from U.S. Highway 101; and
2. Make additional modifications to the Cotati Municipal Code to allow increased land use activities in the Commercial Industrial (CI) zoning district and city-wide, as identified and described.
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 to regional customers. 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 adding flexibility and modernizing signage regulations; loosening restrictions on temporary and promotional sales activities; and allowing expanded commercial uses in the zoning district.
Building on these efforts, staff 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. A summary of the Planning Commission comments and direction is provided below.
On July 28, 2026, the City Council held a second public workshop to continue gathering input from the community and providing direction to staff regarding the zoning updates to initiate the formal FOD Ordinance. A summary of the Council direction is also included below.
On September 21, 2026, the Planning Commission considered the draft ordinance to create the FOD Zoning Overlay. After conducting the public hearing and discussing the proposal, the Commission voted unanimously (4-0 with 1 absent) to recommend that the City Council introduce the ordinance. More details on the Commission discussion and recommendation are provided below.
Analysis/Discussion
Project Description
Consideration, introduction and first reading of an ordinance to create a Freeway Oriented Development Zoning Overlay applicable to properties within the Commercial/Industrial zoning district located on Redwood Dr, adjacent to and visible from U.S. Highway 101 and make additional modifications to the Cotati Municipal Code to allow increased land use activities in the Commercial Industrial (CI) zoning district and city-wide.
Both the overlay district and other identified zoning code modifications are intended to support economic development and local business activity by recognizing the unique operational and economic opportunities of freeway-oriented commercial and industrial businesses; the economic activity generated in the CI district; and the benefits of supporting commercial activities throughout the community.
The overlay and other CMC modifications would supplement the underlying zoning district(s) regulations by providing:
1. Enhanced and modernized signage standards to improve business visibility;
2. Increased flexibility for temporary and promotional sales events; and
3. Expanded permitted and conditionally permitted land uses.
Purpose of a 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 highways. 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, circulation or access requirements, building design, and/or aesthetic considerations.
In Cotati, a majority of the properties under consideration for inclusion in the FOD overlay are fully built out, and the city has well developed design and landscaping requirements. These characteristics limit the need for a new 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 regional-serving destinations and implement limited changes to the development standards that differ from neighborhood-scale commercial criteria. Given this, 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.
Summary of Proposed Code Amendments
After engaging with the business community, the public, the Planning Commission and the City Council to consider potential changes to the City regulations, staff have prepared an ordinance to create a Freeway Oriented Development (FOD) zoning overlay. In drafting these changes to the municipal code, it became apparent that some of the changes being considered could serve to improve the land use regulations beyond just the properties fronting onto Redwood Drive.
Specifically, additional updates to modernize the City’s sign code; expansion of the allowable land uses and temporary sales events in the Commercial/Industrial zoning district; and additional flexibility in uses permitted through the Limited Term Permit process have been included in the draft ordinance.
A complete summary of these changes is provided below and all details are included in the attached redlined draft of the municipal code.
Creation of a Freeway Oriented Zoning Overlay
The draft ordinance includes provisions to create and implement a Freeway Oriented Development (FOD) Zoning Overlay, specifically limited to the approximately 15 parcels in the Commercial/Industrial zoning district, fronting Redwood Drive.
Sign Code Revisions
Visibility is a critical factor in the success of any business and creates unique opportunities for freeway visible businesses. Therefor the overlay district would increase sign allowances and flexibility by allowing:
• An additional 50 square feet of signage, per business; • Taller freestanding signs where site conditions warrant; Other sign code elements are proposed City-wide including:
• Increased flexibility for multi-tenant wayfinding and directory signage; • Allowing an additional 2-feet in height for monument signs (to a maximum of 8-feet); • Modernization of the illumination methods for signs;
• Eliminating the requirement for sign programs for multi-tenant properties 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 find these modifications will improve commercial visibility while maintaining appropriate design standards. In addition to the freeway-oriented code changes proposed with the FOD overlay, staff are proposing additional changes to the sign code to streamline and modernize the signage review process throughout the City. These changes are intended to allow more unique sign designs, provide options to improve individual business visibility and modernize the allowable 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 often require approval of a Limited Term Permit. The fee for such a permit is $1,096 and can take approximately 45-60 days for a decision.
The changes identified in the code would allow properties within the CI Zoning District the ability to hold seasonal sales events, including outdoor merchandise displays up to four times per year. Such events would include holiday sales events; vehicle sales promotions; and businesssponsored community events. Adoption of these changes should balance enhanced economic activity with neighborhood compatibility and staff is recommending the following objective operational standards to address potential impacts.
▪ Maximum duration;
▪ Neighborhood notification;
▪ Hours of operation;
▪ Parking and access requirements;
▪ Noise limitations;
▪ Site maintenance; and
▪ Public safety considerations.
Separate from the changes proposed to the outdoor displays and sales code language to authorize temporary activities, changes are also proposed to Section 17.62.030 the Limited Term Permit (LTP) regulations. Staff are proposing to clarify the allowable activities authorized through a limited term permit. Specifically, these changes would authorize “pop-up” style retail and entertainment activities and clarify off-site construction staging requires an LTP approval. These changes are intended to clarify certain additional uses which may be explicitly authorized through the LTP process, rather than relying on the broad “Similar Temporary Activities” language currently used for such requests.
Expanded Land Use Opportunities
Additional changes to the Commercial/Industrial (CI) zoning district include broadening the range of commercial uses permitted within the CI district, including the designated freewayoriented areas. 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. 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 by right include: Doctors Offices Examples of uses requiring a Minor Use Permit or Use Permit include:
Small Recycling Facility-Up to 5,000 sq. ft. (Currently allowed by-right) Specialized Schools/Training Facility
Antique or Collectible Store
Medial Clinic/Urgent Care
Adult Daycare
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
General Plan Consistency
Staff finds creation of the proposed FOD Overlay District, and the other zoning code modifications 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 employmen t centers throughout all non-‐residential areas of the City.
Staff response: The proposed amendments would promote business attraction and retention, while also encouraging growth of new commercial investment, employment opportunities, and generation of local revenues in the industrial area of the City. Additionally, allowing expanded signage, sales events and land use in the area would create 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 have identified the proposed changes as consistent with the overall intent and policy direction of the General Plan.
Findings.
Amendments to the municipal code are governed by CMC Section 17.62.070. This section sets forth the process by which the City may make amendments to the land use policies of the City.
In addition to the noticing and public hearing requirements, this section directs that certain findings must be made by the Planning Commission and City Council in their actions to amend the municipal code. Specifically, the Planning Commission of the City of Cotati must find that the proposed ordinance to amend Title 17 (Land Use) of the Cotati Municipal Code to establish the FOD Zoning Overlay and implement other identified changes to the Cotati Municipal Code:
a) Is consistent with the goals and policies of all elements of the General Plan, and any applicable specific plan.
b) The proposed amendments would not be detrimental to the public interest, health, safety, convenience, or welfare of the city.
c) The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA)
d) The proposed amendment is internally consistent with other applicable provisions of this Zoning Code.
Additionally, the following findings must be made by the Commission and Council in order for changes to the zoning map to be implemented.
e) The sites proposed to be rezoned to the overlay are physically suitable (including absence of physical constraints, access, compatibility with adjoining land uses, and provisions of utilities) for the requested zoning designations and anticipated land uses/developments; and f) The proposed amendment is consistent with no-net-loss provisions and will not reduce the residential density of the parcel without a concurrent and off-setting increase in density being adopted for an alternate location.
Staff has identified that the findings can be made to support the proposed changes to the Cotati municipal code in that the proposed text and map amendments will serve to implement the policy direction of the General Plan to support and encourage the continued success of the industrial district; will help to accommodate a range of land uses in the CI zoning district; and will help the City to provide a business friendly environment for both new and existing companies.
Additionally, the changes are seeking to expand the allowable land uses in a limited area of the city, expand on the sales and service activities available to create employment and shopping opportunities for residents and will modernize the sign illumination methods allowed, citywide. All modified areas of the code have been reviewed to ensure consistency across the other related land use regulations and across the areas proposed to be modified through this action; and the FOD overlay is being applied to 15 parcels which fronts onto Redwood Drive, an arterial connector providing regional access and freeway visibility. Finally, no residentially designated properties are proposed to be included in the map amendments.
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 • 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 Hwy 101 only with this project City Council Direction to Staff
On July 28, 2026, the City Council conducted a workshop to review all of the potential code changes identified under the conceptual Freeway Oriented Development (FOD) overlay concept.
After considering the Planning Commission recommendations and hearing from several members of the public, the Council provided a range of potential policy changes necessary to move the FOD into formal adoption. While direction to staff was not unanimous on every recommendation, the Council indicated general support for the project and provided the following general direction to move forward with the FOD Ordinance. • Keep the initial boundary of the Overlay west of Hwy 101, focused on the Industrial zoning district
• Ensure regulations do not allow the proliferation of pole signs • Do not extend formula-based businesses into Industrial zoning district • Do not expand allowances for drive through retail sales • Require neighbor notification for streamlined marketing and sales events • Limit poles sign types and additional square footage to Freeway oriented zoning overlay • Require a conditional use permit for recycling facilities September 21, 2026, Planning Commission Public Hearing
During the second September Planning Commission meeting, the Commission considered the proposed FOD Ordinance at a duly noticed public hearing. After conducting the hearing and considering all public comments, the Commission voted unanimously (4-0 with 1 absent) to recommend the Council introduce the ordinance. Public comments voiced at the meeting identified concerns with the potential expansion of automobile traffic in the area considering the number of homes likely to be constructed on the west side of Hwy 101. In response, individual commissioner comments expressed concerns over these future residents having to travel to the east side of Cotati to access certain amenities and services. In making their recommendations, members of the Commission continued to voice support for expanding some of the allowances of the FOD ordinance beyond the proposed boundary. Specifically, the recommendation to support the ordinance included:
1. Support for 25-foot maximum height for freeway-oriented pole and freestanding signs.
2. Direction to add cyclists to the zoning standards that reference automobiles and pedestrians.
3. Reconsideration for areas allowing formula-based businesses.
Financial Considerations
There are no identified impacts to the current fiscal year budget (FY 26/27) other than the staff time taken to draft the ordinance and manage the process.
Environmental Issues
The potential impacts of the proposed project were analyzed and addressed to a less-thansignificant level in the Cotati General Plan Update EIR (SCH# 2013082037), which was certified by the Cotati City Council on March 24, 2015, and the California Environmental Quality Act (CEQA) Guidelines Section 15183 allows a streamlined environmental review process for projects that are consistent with an existing zoning, community plan or general plan policies for which an Environmental Impact Report (EIR) was certified. As noted, the proposed project is consistent with the land use designations and densities established by the Cotati General Plan, for which an EIR was certified. In conformance with California Environmental Quality Act (CEQA), the Community Development Department, Planning Division and the COtati Planning Commission has found that this project is consistent with the previously adopted goals, policies and objectives to the 2015 General Plan and associated environmental impact analysis.
Therefore, the project environmental analysis and determination conforms to CEQA Guidelines Section 15183, which provides a streamlined review of the environmental impacts of the project by tiering from the program level analysis prepared for the Cotati General Plan and its certified EIR.