May 18, 2026 www.paloalto.gov
RETAIL VITALITY
ORDINANCE
City Council
2 BACKGROUND
2023 - 2024:
PTC Retail Ad
Hoc Committee
(4 Meetings)
2023 - 2024:
PTC Hearings
(6 Meetings)
Sept 2024:
Council Retail
Committee
Recommended
Amendments
Dec 2024: City
Council Adopted
Interim
Ordinance
Streetsense and
Michael Baker
International Reports
Provide Background
Data and Analysis
3 INTERIM ORDINANCE
● Expanded permissible uses for ground floor spaces, including:
○ Personal services, pet grooming, financial institutions, automobile showrooms, and other “retail-like” uses.
● Reduced threshold for waivers/adjustments to use regulations. ● Modified formula retail definition to allow larger enterprises on California Avenue.
● Sunsets December 31, 2026.
4 CURRENT PROCESS
October 29,
2025
PTC Study
Session
January 22,
2026
Council
Retail
Committee
May 18,
2026
City Council
Hearing
March 25,
2026
PTC
Hearing
December
31, 2026
Interim
Ordinance
Sunsets
we are here
5 OVERVIEW
Intent:
● Codify the interim ordinance.
● Reduce ground-floor vacancies.
● Encourage vibrancy in the City’s commercial areas.
Summary of Ordinance:
● Allow a broader range of retail, retail-like, and other commercial uses. ● Reduce confusion from overlapping/conflicting regulations. ● Reduce subjectivity, reinforce district purposes, and add standard conditions. ● Streamline permit approvals.
6 EATING & DRINKING SERVICES
Use Classification Description Permit Allowed Districts Minimum Parking Eating and Drinking,
Full Service
Table service,
seating
P
All commercial
districts
1 space/150 sf
Eating and Drinking,
Limited Service
Ready to eat,
limited seating
P 1 space/250 sf
Bars Alcohol service,
without food
service
CUP CD(C), CC, CC(2),
CS, -R, -GF, NV-MXH
1 space/150 sf
New
New
7 OFFICES & MEDICAL OFFICES
● Allow “neighborhood-serving” offices in Downtown
and California Avenue areas, in rear of tenant spaces
or fronting side streets.
● Allow medical offices, with on-site retail, on
University and California Avenues (with CUP).
● Require design standards and CUPs for large spaces.
● Simplify office use restrictions.
8 MIDTOWN AND CHARLESTON SHOPPING CENTERS
● Streamline use regulations into one use table to
eliminate confusion and inconsistencies:
○ Utilize CN use table, with footnotes
○ Remove -GF combining district designation
● Allow residential uses on upper floors and
behind retail.
● Limit office to “neighborhood serving” uses.
● Expand allowed uses, including retail-like.
9 STREAMLINE PERMITTING
● Shift certain conditionally permitted uses to permitted uses (CUP → P).
● Allow Director to interpret list of allowed uses in
commercial PCs and allow "similar" uses.
● Replace subjective findings and waiver/adjustments, with expanded uses and standard conditions.
● Replace “Conditional Use Permit” with “Administrative Use Permit” to acknowledge review and approval by staff (i.e., name change, not process change).
10 PARKING
● Establish blended parking rates for the
California Avenue Parking district.
● Modify thresholds for when a transportation
demand management (TDM) program is
required (e.g., exempt small retail additions)
● Increase shared parking opportunities.
11 Exempt non-retail zoning districts:
● Multi-family residential zones: RM-30, RM-40,
NV-R3, NV-R4
● Office/manufacturing zones: ROLM, ROLM(E),
RP , RP(5), GM (except within the San Antonio
Road Area Plan area)
RETAIL PRESERVATION ORDINANCE
12 STAFF RECOMMENDATION
Adopt an ordinance to amend various sections of Titles 16 and 18 of the Palo Alto Municipal Code and the Zoning Map to implement retail vitality measures related to Comprehensive Plan policies and the City Council's 2025 Enhance Business Vibrancy Priority.