SPECIAL TOWN COUNCIL MEETING
STAFF REPORT
SPECIAL AGENDA ITEM #1
MEETING DATE April 17, 2026
PREPARED FOR Mayor and Town Council
PREPARED BY Jeffrey Beiswenger, AICP, Planning & Building Services Director Janet Coleson, Town Attorney
SUBJECT PUBLIC HEARING: Consider Approving an Interim Ordinance Extending the Moratorium on the Issuance of Entitlements for New Formula Businesses Pursuant to Government Code § 65858
RECOMMENDATION
Staff recommends the Town Council introduce, waive reading in full, and adopt an Interim Ordinance extending the Town’s moratorium on the granting of any entitlements for a formula business in the Town of Fairfax for an additional ten (10) month, fifteen (15) day period, pending study and adoption of regulatory and zoning standards, pursuant to Government Code § 65858
BACKGROUND
At the March 4, 2026 meeting, the Council adopted a 45-day moratorium on the issuances of entitlements for new formula businesses, intended to provide time for staff to draft changes to the town code required to implement any Council direction.
Since adoption of the temporary moratorium, staff conducted research into possible solutions and is preparing ordinance language for consideration by the Planning Commission. The required 10-day report was prepared and posted on April 8, 2026 to summarize the measures undertaken since the imposition of the moratorium. This report is required by Government Code, 10 days prior to the expiration of the moratorium (April 18, 2026). By enacting an extension to the ordinance, the moratorium would be continued for up to ten (10) months and fifteen (15) days, providing adequate time for review and possible amendments to zoning and other regulations. If not extended the moratorium will lapse on April 18, 2026, prior to the adoption of regulations.
DISCUSSION
In follow up to the adoption of the initial 45-day urgency ordinance, Town staff has taken measures to alleviate the conditions which led to the adoption of the urgency ordinance, by commencing research on possible town code changes to regulate formula businesses. Staff is continuing to explore possible code amendments and will provide recommendations to the Council at a future date. Any code update will take many months to complete. Modifications to the zoning provisions of the town code require review and recommendation by the Planning Commission at a duly noticed public hearing and review and adoption by the Town Council at duly noticed public hearings, pursuant to Government Code § 65854.
It is prudent to extend the moratorium because the Town cannot predict the precise time necessary to complete the work and conduct the public hearings. The moratorium period would provide staff with the time to prepare the zoning ordinance amendments. The proposed ordinance would go into effect immediately and would extend the existing 45-day moratorium an additional ten (10) months and fifteen (15) days.
Staff has begun a review of the Town’s policies and regulations related to Formula Businesses. Changes to the zoning ordinance require review and recommendation by the Planning Commission. As required by Government Code § 65854 (d) a 10-day Report has been prepared (see Attachment 1). This report summarizes steps Town Staff has undertaken to initiate the code amendment process related to Formula Businesses.
An alternative to extending the moratorium is to allow the moratorium to expire on April 18, 2026. This does not prevent the Town from studying and drafting Zoning Ordinance amendments. This option is not recommended because businesses could apply while the Zoning Ordinance amendments are being studied and/or drafted. This could create inconsistencies with the proposed regulatory scheme.
Formula businesses have been widely studied throughout the United States and have been shown to have deleterious economic, social, and environmental impacts, which were discussed in the March 4 staff report. By adopting the attached interim ordinance, the Town Council determines that the Fairfax Town Code requires further review and revision to protect the public against potential negative health, safety, and welfare impacts due to the proliferation of formula businesses. By establishing a moratorium, the Town would have the necessary time to complete the revisions to the Code for Formula Businesses that are now underway.
Failure to adopt this moratorium would impair the orderly and effective implementation of contemplated amendments to the Fairfax Town Code, and approval of entitlements for Formula Businesses before the new revisions are effective. This could create conflicts with, or may frustrate, the new amendments to the Code.
Adoption of this interim urgency ordinance requires a 4/5 vote of the Town Council. Without a 4/5 vote the moratorium will expire on April 18, 2026.
Definition of a Formula Business
The current definition of a Formula Business in the Town Code is unclear and a clear definition has been included as part of the interim ordinance. The intent is to temporarily replace a definition of Formula Business in the Town code that is vague and could be problematic from a regulatory perspective.
ENVIRONMENTAL ANALYSIS
The Town Council finds that this interim urgency ordinance is not a project within the meaning of § 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The Town Council further finds, under Title 14 of the California Code of Regulations, § 15061(b)(3) that this interim Urgency Ordinance is nonetheless exempt from the requirements of CEQA, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment since it prohibits the establishment of uses.
FISCAL IMPACT
There is no fiscal impact associated with this action.
ATTACHMENT
A. Report Issued Pursuant to Government Code § 65858(d) Regarding Town Actions Following Adoption of Urgency Ordinance of the Council of the Town of Fairfax Imposing a Moratorium on the issuance of entitlement for new formula businesses.
B. Ordinance Extending a Moratorium on the Issuance of Entitlements for New Formula Businesses Pursuant to Government Code § 65858.
URGENCY ORDINANCE: 10-day Report
April 8, 2026
Urgency Ordinance: 10 Day Report April 8, 2026
10-DAY REPORT ON THE TOWN OF FAIRFAX’S URGENCY ORDINANCE PLACING A TEMPORARY 45-
DAY MORATORIUM ON THE ISSUANCE OF ENTITLEMENTS FOR THE ESTABLISHMENT OF A
FORMULA BUSINESS PENDING THE COMPLETION OF A STUDY AND DEVELOPMENT OF REASONABLE REGULATIONS AS REQUIRED BY GOVERNMENT CODE SECTION 65858(d)
BACKGROUND
This report is issued pursuant to Government Code § 65858(d) regarding Town actions following adoption of an urgency ordinance establishing a 45-day Temporary Moratorium on granting entitlements for Formula Businesses in the Town.
On March 4, 2026, the Town Council introduced and adopted an interim urgency ordinance placing a 45-day moratorium prohibiting the issuance of entitlements for the establishment or operation of a Formula Business, as defined by the ordinance. The Temporary Moratorium may be extended or terminated earlier by the Town Council.
Pursuant to California Government Code § 65858(b), interim ordinances remain in effect for 45 days from the date of adoption but may be extended for 10 months and 15 days following notice and a public hearing. Under California Government Code § 65858 (d), the Town is required to issue a written report describing the measures taken to alleviate the condition which led to the adoption of the interim ordinance ten days prior to the expiration of an interim ordinance.
The interim ordinance is set to expire on April 18, 2026.
MEASURES TAKEN TO ADDRESS CONDITIONS THAT LED TO ADOPTION OF THE URGENCY
ORDINANCE
Subsequent to the adoption of the initial urgency ordinance, town staff has taken the following measures to alleviate the condition, which led to the adoption of the urgency ordinance:
1. Commenced research on possible town code changes to address impacts from the establishment of Formula Businesses;
2. Explored possible code amendments to regulate Formula Businesses with the intention of providing recommendations to the Planning Commission and Town Council at a future date;
3. Initiated a review of the City’s policies and regulations related to the establishment of new businesses with a focus on Formula Businesses;
Urgency Ordinance: 10 Day Report April 8, 2026
4. Prepared materials for a future study session with the Planning Commission to discuss options for regulating Formula Businesses.
CONTINUED NEED FOR THE MORATORIUM
Actions addressing the underlying need for the moratorium are on-going. Specifically, at the direction of Council, staff is studying, and will develop reasonable regulations for consideration.
These contemplated regulation changes require public outreach, additional study, a public hearing before the Planning Commission, and a second public hearing before the City Council.
These tasks cannot be completed within the initial 45-day period which ends on April 18, 2026.
Therefore, the need for the moratorium remains and staff will recommend the City Council adopt an ordinance to extend the current moratorium. Unless extended by Council, the moratorium would automatically expire on April 18, 2026. Staff intends to return to Council with municipal code amendments by the end of the calendar year.
OPPORTUNITY FOR PUBLIC COMMENT
Members of the public will have the opportunity to comment on the possible extension of the Moratorium at the Town Council hearing to be held on Friday, April 17, 2026, at 12:30 p.m at the Fairfax Women’s Club, 46 Park Road, Fairfax, CA.
Town of Fairfax ATTACHMENT B
Moratorium Extension (Formula Businesses)
ORDINANCE 907
AN INTERIM ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX, ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858 EXTENDING A
MORATORIUM ON THE GRANTING OF ANY ENTITLEMENT FOR A FORMULA BUSINESS IN THE TOWN OF FAIRFAX FOR AN ADDITIONAL TEN (10) MONTH, FIFTEEN (15) DAY PERIOD,
PENDING STUDY AND ADOPTION OF REGULATORY AND ZONING STANDARDS WHEREAS, the Town of Fairfax (“Town”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, Article 11, Section 7 of the California Constitution authorizes the Town of Fairfax to make and enforce within its limits all ordinances and regulations not in conflict with general laws; and
WHEREAS, the unregulated development of Formula Businesses, as defined in this Ordinance, presents an immediate threat to public health, safety and welfare for the following reasons:
• Staff is aware of ongoing commercial leasing activity in the Town, including in the downtown area. Under current regulations, Formula Businesses could obtain necessary approvals and establish operations.
• Once established, such businesses may enter into long-term leases, invest in tenant improvements, and assert vested rights. Interim regulation is necessary to preserve the status quo while anticipated new regulations are finalized. • The Town’s distinctive and unique village-like environment is a core community value.
Establishment of Formula Businesses during the completion of the Town’s anticipated new Formula Business regulations could result in a proliferation of nonconforming uses and potentially irreversible changes to the Town’s valued village-like environment and qualities.
• Formula Businesses that establish prior to the update of the Town Code regulations could have a negative impact on economic welfare of town residents by reducing the dollar value of recirculated revenue from stores, depressing wages and reducing other types of benefits for workers, and resulting in the closing of existing independent businesses. • Formula Businesses create traffic safety impacts, especially fast-food restaurants, which have negative impacts on traffic since they rely on high traffic volumes to succeed. This contributes to expansive parking lots, complex drive-through lane configurations and spill over into public streets, which in turn creates increased traffic concentration, air pollution, environmental degradation and infrastructure impacts.
WHEREAS, due to the health, safety, and welfare impacts of Formula Businesses, the Town has embarked on a months long study and assessment of the appropriate types of local regulations that can address the negative impacts from Formula Businesses; and WHEREAS, in accordance with California Government Code Section 65858 an urgency measure in the form of an interim ordinance was adopted by a four-fifths vote of the Town Council on March 4, 2026 to protect the public from a current and immediate threat to the public health, Town of Fairfax ATTACHMENT B
Moratorium Extension (Formula Businesses)
safety, or welfare resulting from a contemplated zoning proposal.
WHEREAS, Government Code Section 65868 further provides that the urgency measure is effective for only 45 days following its adoption, but may be extended beyond the initial 45-day period, following compliance with that Section, for an additional ten (10) months and fifteen (15) days and subsequently for an additional twelve (12) months; and WHEREAS, Town staff requires additional time to finish developing regulations regarding Formula Businesses, and to conduct Planning Commission and Town Council public hearings, to amend the Town Code to address the potential impacts caused by these uses; and WHEREAS, a duly and properly noticed public hearing regarding the Ordinance was conducted by the Town Council on April 17, 2026, and the Town Council carefully considered all pertinent testimony and the staff report offered at the public hearing.
THE TOWN COUNCIL OF THE TOWN OF FAIRFAX DOES ORDAIN AS FOLLOWS:
SECTION 1. FINDINGS.
The above recitals are true and correct and are incorporated herein by reference. The Town Council hereby finds and determines that the unregulated establishment of Formula Businesses constitutes an immediate threat to the public health, safety and welfare of the community. The approval of additional entitlements for Formula Business establishments will further threaten public health, safety, and welfare. The adoption of this Ordinance is therefore necessary for the immediate protection of public safety, health and welfare.
SECTION 2. COMPLIANCE WITH CEQA.
The Town Council finds that this Ordinance is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. The Town Council further finds, under Title 14 of the California Code of Regulations, section 15061(b)(3) that this Ordinance is nonetheless exempt from the requirements of CEQA, because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment since it prohibits the establishment of uses.
SECTION 3. MORATORIUM.
The 45-day moratorium that was established on March 4, 2026, is hereby extended for an additional ten (10) months, fifteen (15) days. During the time this Ordinance is in effect, no entitlement shall be issued for the establishment or operation of a Formula Business, as defined herein, unless this moratorium is extended or terminated by the Town Council.
As used in this Ordinance, the following definitions apply:
A. “Establish” or “operate” means and includes any of the following: (i) the opening or commencement of the operation of a Formula Business; (ii) the conversion of an existing business, facility, use establishment, or location to a Formula Business; and/or (iii) the Town of Fairfax ATTACHMENT B
Moratorium Extension (Formula Businesses)
addition of a Formula Business to any other existing business, facility, use, establishment or location.
B. “Formula Business” means a type of retail business, including but not limited to, food service, that has eight (8) or more locations in operation, located anywhere in the world, and which uses two (2) or more of the following as part of its business operations:
1. Uniform array of merchandise or menu;
2. Uniform color scheme;
3. Uniform décor;
4. Uniform façade;
5. Uniform layout;
6. Uniform signage, service mark, or a trademark;
7. Uniform apparel.
Notwithstanding the prohibition contained in this section, the Town will continue to accept and process applications for uses prohibited by this moratorium if so required by State law. Any application received and processed during the moratorium shall be processed at the applicant’s sole cost and risk with the understanding that no permit, license, approval or other entitlement for a use covered by this Section may be issued while this moratorium or any extension of it is in effect.
In addition, any person who lawfully holds an existing permit, license, and/or land use entitlement for an existing and lawfully operating Formula Business, as of the effective date of this Ordinance may continue to lawfully operate under that existing permit, license, and/or entitlement. Nothing herein shall limit the authority of the Town to revoke or suspend any existing license, permit, and/or entitlement as authorized under existing law.
SECTION 4. ADOPTION.
Pursuant to Government Code Section 65858 and 36937, this ordinance is designed to protect the health, safety, and welfare of the Town and its residents and becomes effective immediately upon adoption by a four-fifths (4/5) vote of the Town Council following the notice and public hearing required by Government Code Section 65858(a).
SECTION 5. TERM.
This Ordinance is adopted under the provisions of Government Code Section 65858 and 36937(b) and shall take effect immediately upon its passage by a four-fifths vote of the Town Council. This Ordinance shall extend the original 45-day moratorium and additional ten (10) months and fifteen (15) days, unless earlier repealed or extended pursuant to law.
SECTION 6. REPORT REQUIRED
A report was issued pursuant to Government Code § 65858(d) regarding Town actions following adoption of an urgency ordinance and ten (10) days prior to the scheduled expiration of the 45-day period of the urgency ordinance. Staff issued a report to the Town Council on the progress of its study determinations and recommendations on how the Town should proceed.
Town of Fairfax ATTACHMENT B
Moratorium Extension (Formula Businesses)
SECTION 7. SEVERABILITY
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The Town Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Fairfax, held on the 17th day of April 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
STEPHANIE HELLMAN
MAYOR
ATTEST:
_________________________________
CHRISTINE FOSTER
DEPUTY TOWN CLERK