CITY COUNCIL
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Planning and Development Services
Meeting Date: October 26, 2026
Report #: 2608-6697
TITLE
Adoption of an Ordinance Amending Chapter 18.20 (Office, Research, and Manufacturing (MOR, ROLM, RP and GM) Districts) of Title 18 (Zoning) of the Palo Alto Municipal Code to Clarify that Multiple-Family Residential Uses in the ROLM(E) Zone District May Be Permitted Through a Use Permit; CEQA Status: Exempt pursuant to CEQA Guidelines Section 15061(b)(3).
RECOMMENDATION
Staff recommends that the City Council (Council) take the following action:
1. Adopt the draft Ordinance (Attachment A) amending Palo Alto Municipal Code (PAMC) Section 18.20.030, Table 1, footnote (1), to clarify that Multiple-Family uses may be permitted in the ROLM(E) zone district, subject to an Administrative Use Permit (AUP)1, addressing a previous inadvertent change to the code.
BACKGROUND
In December 2023, Council adopted Ordinance No. 5608 to implement the 2023–2031 Housing Element, including changes to development standards within the GM/ROLM Housing Element Focus Area. Those amendments inadvertently restricted the existing allowance for multifamily housing with a use permit in ROLM(E). The proposed ordinance corrects that error.
Before the amendment, the land use table allowed multifamily housing in ROLM(E) with a use permit without a geographic restriction, consistent with Section 18.20.040(b)(5) and its RM-20 development standards. The amendment restricted the combined ROLM/ROLM(E) table entry to the Focus Area, which contains no ROLM(E) parcels, while Section 18.20.040(b)(5) retained 1 In accordance with Ordinance 5706, effective July 10, 2026 the City amended the municipal code to rename Conditional Use Permits (CUPs) as Administrative Use Permits (AUPS) and to replace “conditionally permitted” with “administratively permitted.” This is a terminology change only; it does not change the review process, applicable findings, review authority, applicable fees, or substantive standards that govern the permit. the residential allowance. The August 26, 2026, Planning and Transportation Commission (PTC) staff report provides additional history and analysis.3 PTC Review
On August 26, 2026, PTC recommended adoption by a 3–1 vote, (Chair Chang dissenting; Vice Chair Ji and Commissioner Templeton absent). PTC also raised concerns about housing near sensitive areas such as the Baylands, State housing laws limiting local discretion, and suggested that Council revisit housing as a potential use in areas such as the Baylands and foothills. Chair Chang acknowledged the rationale for bringing the Ordinance forward but dissented to avoid conveying unanimous support for the proposed change.
Staff recommends the PTC’s policy comments be addressed through the Comprehensive Plan update anticipated to begin in 2027, rather than as a separate work effort. Unless Council directs otherwise, staff will proceed accordingly.
ANALYSIS
The proposed ordinance amends Table 1, footnote (1), to distinguish ROLM(E) from the ROLM and GM districts. For ROLM and GM properties, multiple-family residential uses would remain permitted through a Use Permit only within the GM/ROLM Housing Element Focus Area. For ROLM(E) properties, multiple-family residential uses would be permitted through a Use Permit regardless of location to correct an inadvertent code change that created inconsistencies and effectively prohibited housing in areas where it had previously been allowed with a use permit.
Table 1
Industrial/Manufacturing District Land Uses
[P = Permitted Use AUP = Administrative Use Permit Required]
MOR ROLM
ROLM (E)
RP
RP (5)
GM Subject to
regulations in
Chapter:
RESIDENTIAL USES
Single-Family Not permitted
Two-Family Not permitted
18.20.040(b)
Multiple Family (Housing
Element Opportunity Site)
P P P 18.14.020
Multiple-Family AUP AUP (1) P (2) AUP (1) 18.14.020,
18.20.040(b)(5),
18.42.200
Residential Care Homes P AUP AUP AUP 18.42.200(B)
3 The staff report from the August 26, 2026, hearing is available online at:
https://www.paloalto.gov/Departments/City-Clerk/City-Meeting-Groups/Meeting-Agendas-and-Minutes Notes:
(1) All ROLM(E) properties and those ROLM and GM properties that are located within the Housing Element Focus Area, Aadjacent to Bayshore Freeway and generally bounded by East Charleston Road and Loma Verde Avenue (see Figure 1), and otherwise prohibited to the extent permitted by law. For ROLM(E ) Zoned properties, conditionally permitted regardless of location.subject to AUP.
The amendment aligns the land use table with Section 18.20.040(b)(5) and retains the applicable RM-20 development standards. The ordinance does not rezone property, change base density or height limits, approve a development project, or establish housing by right.
Future proposals would be evaluated under applicable City requirements and State law, including project-specific eligibility for density bonuses, waivers, or streamlined review.
Attachment B identifies the ROLM(E) properties. The PTC staff report provides additional discussion of the Baylands and airport context and applicable site-specific requirements.
FISCAL/RESOURCE IMPACT
No significant fiscal impact is anticipated. Future applications would follow existing development review and cost-recovery processes. Staff plans to incorporate PTC’s policy comments into the Comprehensive Plan update work program. A separate effort would require additional work programming and resource consideration.
STAKEHOLDER ENGAGEMENT
The Palo Alto Municipal Code requires notice of this public hearing be published in a local paper. Notice of this hearing was published in the Daily Post on October 9, which is 10 days in advance of the meeting.
Public Comments
During the PTC hearing, one commenter expressed concern over the impact of housing in an area of concern such as the Baylands. As of the writing of this report, staff has not received any other project-related public comments.
ENVIRONMENTAL REVIEW
The proposed ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3). The ordinance clarifies the existing Use Permit pathway for multiple-family residential uses in ROLM(E) and does not approve a development project, change the zoning map, or alter the underlying development standards. It can be seen with certainty that there is no possibility that adoption of the ordinance itself may have a significant effect on the environment. Any future development proposal would be subject to environmental review and other regulatory requirements, as applicable.
ATTACHMENTS
Attachment A: Draft Ordinance Amending PAMC Section 18.20.030 Attachment B: Map of ROLM(E) Zone Parcels
APPROVED BY:
Jonathan Lait, Planning and Development Services Director