Realignment Plan
Implementation
City Council
July 14, 2026
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Purpose
• Overview of Realignment Plan objectives
• Overview of proposed amendments based on Planning Commission Recommendation
• Policy questions for City Council regarding how to process non-residential projects in Gateway sites
• Adopt a Resolution and Ordinance effectuating the goals of the Realignment Plan regarding Gateway sites and City-owned sites in the Downtown Anticipated Timeline of Implementation:
• May 6 – PC Study Session
• June 17 – PC Recommendation to Council
• July 14 – Council adoption
• August 27 – Effective date of amendments (if adopted on July 14) Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Realignment Plan Objectives
Realignment Plan Adopted October 28, 2025
“Developing Affordable, Livable, and Secure Housing for All” • “Authorize staff to focus City housing development efforts in the Downtown core, and concurrently direct that staff initiate studies to identify policy options that do not jeopardize Housing Element certification and also ensure that future development on boulevards achieves compatibility with existing residential neighborhoods”
“Strategic Use of City’s Land Assets & Removing Artificial Land Value Constraints” • “Authorize staff to explore opportunities to update development standards, land uses, and processes for City-owned sites in the Downtown Community Plan area and public and private sites within the former Gateway Master Plan area to provide more flexibility to unlock land value and redevelopment potential” Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Planning Commission
May 6, 2026 Planning Commission Study Session
• Discussed preliminary concepts:
Boulevard Low-Scale Housing Incentive Program
Downtown Housing Local Bonus Incentive Program
Driving Downtown Economic Opportunity, which included:
o Regulatory Adjustments to City-Owned Sites to Maximize Community Benefit o Facilitate Economic Opportunity on Downtown Gateway Sites – Development Standards, Land Uses, and Process
• Adopted Resolutions of Intention (ROIs) to only move forward with potential amendments regarding:
• Downtown Housing Local Bonus Incentive Program
• City-owned sites in the Downtown
• Gateway sites
• The Commission voted to NOT move forward with Boulevard Low-Scale Housing Incentive program in the ROI and therefore amendments to implement this concept did not move forward
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Planning Commission
June 17 Planning Commission Public Hearing
• Recommended that Council adopt proposed amendments to exempt City-owned sites from DCP and Zoning Ordinance and upzone Gateway sites • The Commission voted to NOT recommend amendments to effectuate a Downtown Housing Local Bonus Incentive Program
• Should be considered together with boulevard low-scale incentive program as part of forthcoming comprehensive planning efforts including:
• LUCE update
• 7th Cycle Housing Element
• SB 79 TOD Alternative Plan
• The Commission specified that a Downtown incentive program should be reviewed holistically with development citywide and therefore wanted to reserve potential implementation concepts such as increased development standards and affordable housing compliance flexibility for the future.
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Downtown City-Owned Sites
Regulatory Adjustments to City-Owned Sites to Maximize
Community Benefit
• City-owned land represents some of our most valuable assets. • Realignment Plan envisions taking a strategic approach to expand economic opportunities and growth specifically in the Downtown
• Objectives:
• Provide a more flexible framework to solicit innovative proposals ensuring that public property is maximized not only forland residual revenues, but for community benefit • Catalyst for driving reinvestment in the Downtown through redevelopment or joint venture opportunities
• Sites include: Downtown Expo Station site, Parking Structure 1, Old Fire Station 1, 4th/5th Arizona
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Downtown City-Owned Sites
Proposed Amendments:
Existing Limitations Proposed Flexibility
• Only projects that include affordable housing on
City-owned sites are exempt from the standards
of the Zoning Ordinance (Housing Element
Program 2.E).
• Non-housing projects on City-owned properties
are subject to the same standards applicable to
private property, including limitations on land
use, height, and FAR.
• Exempt ALL City-owned sites in the Downtown
from the standards and requirements of the
Zoning Ordinance.
• While there will be no regulatory entitlement
process, a proposed development will still be
subject to a public process and approval of
Disposition and Development Agreement
(“DDA”) by City Council.
• Allows the City to evaluate site-specific
opportunities and community benefits without
being constrained by standards designed
primarily for developments on private property.
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Gateway Sites
Facilitate Economic Opportunity on Downtown Gateway Sites The Pierside Hotel
Sears
Downtown Station
“Kiss n Ride”
• The DCP identifies “Gateway Master Plan” sites as locations of unique strategic importance due to their visibility, proximity to transit, and potential to accommodate significant investments. • Gateway sites include:
A. 402 Colorado Avenue (Downtown Station Site ~80,000 SF) B. 302 Colorado Avenue (Sears Property ~136,000 SF)
C. 120 Colorado Avenue (Pierside Hotel ~30,000 SF)
• Realignment Plan envisions considerations for this Gateway area to allow for creative proposals on private property while also providing certainty for housing projects at a key entrance to the Downtown.
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Gateway Sites
The Pierside Hotel
Sears
Downtown Station
“Kiss n Ride”
Development
Standard
Current Standards
for Housing
Projects
Current Standards
for Non-Housing
Projects
Proposed
Standards for ALL
Projects
Max Height 84 feet 84 feet (Tier 3)* 130 feet
Max FAR 4.0 3.5 (Tier 3)* 5.0
*Tier 3 requires the provision of community benefits and a Development Agreement process Proposed Amendments:
Current vs Proposed Standards
• Consistent standards for ALL projects types would provide parity between housing and non-housing projects
• Proposed height aligns with established limitation in the DCP’s Large Site Overlay • Proposed FAR based on recently approved projects to correspond to increased height and accounts for size of parcels in the Gateway area Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Gateway Sites – Processing Thresholds
The Pierside Hotel
Sears
Downtown Station
“Kiss n Ride”
Background
• Current DCP processing thresholds for non-housing projects:
• Administrative Approval (no public hearing) – less than 10,000 SF • Development Review Permit (Planning Commission public hearing – 10,000 – 30,000 SF • Negotiated Development Agreement – greater than 30,000 SF • Since adoption of the DCP, no Development Agreements for non-housing projects have been received and no proposals for non-housing projects on a Gateway site has been submitted.
• As part of the Realignment Plan, Council endorsed exploring opportunities, including process flexibility, to activate the Gateway sites in order to unlock land value and redevelopment potential.
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Gateway Sites – Processing Thresholds
The Pierside Hotel
Sears
Downtown Station
“Kiss n Ride”
Planning Commission Recommendation
• Planning Commission recommended:
• Administrative Approval (no public hearing) – up to 30,000 SF • Negotiated Development Agreement – greater than 30,000 SF • Commission considered whether, instead of Development Agreements, non-housing projects should have a more streamlined and predictable entitlement process similar to housing projects.
• Commission wanted to retain discretion over non-housing projects in the Gateway area and to allow the City to negotiate community benefits.
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
What entitlement process should
non-housing projects on Gateway
sites be processed under?
Planning Commission
Recommendation: Administrative
Approval ministerial entitlement
for projects up to 30,000 SF /
Development Agreement for
projects greater than 30,000 SF
Alternative Options:
Gateway Sites – Processing Thresholds
Policy Question 1 Option Description Type of
Entitlement Size Threshold
1 Provides
maximum
process
certainty for
non-housing
projects
Administrative
Approval (no public
hearing)
No size limit
2 Permit
process
connected
to existing
DCP tier
system and
FAR limits
Administrative
Approval for Tier 1
FAR (no public
hearing)
Up to 1.75 FAR
Ex: 50,000 SF site x 1.75 FAR = 87,500 SF
(current process for non-housing
projects less than 10,000 SF)
Development
Review Permit for
Tier 2 FAR (PC
public hearing)
Greater than 1.75 FAR and up to 3.0 FAR
(current process for non-housing
projects between 10,000-30,000 SF)
Development
Agreement for Tier
3 FAR (CC public
hearing)
Greater than 3.0 FAR and up to 5.0 FAR
Ex: 50,000 SF site x 3.5 FAR = 175,000 SF
(current process for non-housing projects
greater than 30,000 SF)
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Gateway Sites – Land Use Limitations
The Pierside Hotel
Sears
Downtown Station
“Kiss n Ride”
Background
• Proposed increased height and FAR would apply to ALL project types, including residential, commercial, hotel, office, institutional, and mixed-use development • Procedural modifications are also proposed to streamline review of nonhousing projects on the Gateway sites • Council has previously excluded certain uses from streamlined ministerial processes such as hotel, motel, bed and breakfast inn, or other transient lodging Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
On Gateway sites, should certain land uses exclude a project from a potential ministerial entitlement process regardless of size?
For example, past policy direction has been to exclude projects that include hotel, motel, bed and breakfast inn, or other transient lodging uses from the Administrative Approval process (i.e.: would be required to go through a discretionary process).
Yes, exclude projects that contain certain uses from being processed through a ministerial process on Gateway sites. (Council to provide excluded uses) No, allow ALL uses to be eligible for a ministerial entitlement process.
Gateway Sites – Land Use Limitations
Policy Question 2
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
Gateway Sites - Implementation of Community Benefits
The Pierside Hotel
Sears
Downtown Station
“Kiss n Ride”
Background & Planning Commission Recommendation
• Planning Commission recommendation
• Development Agreement for non-housing projects greater than 30,000 SF – intended to ensure adequate community benefits are provided in exchange for the proposed increased development standards
• Development Agreement is an uncertain and extensive process • DCP has an existing structured community benefits system that is based on tiers (i.e. size of development).
• Current system requires 23% increase in impacts fees above the base fee for the portion of the development exceeding Tier 1 standards (1.75 FAR/32’) • Additional Transportation Demand Management measures are also required Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
To ensure proportionate community benefits are provided, should a tiered community benefits system similar to what is currently in place in the DCP be implemented in order for non-housing projects to be granted the proposed increases in height and FAR? Yes, implement a tiered community benefits system for projects that exceed Tier 1 base standards (1.75 FAR/32’) similar to the current structure in the DCP in order for projects to access the proposed increased standards. No, increased community benefits should not be required to access increased development standards.
Gateway Sites
Policy Question 3
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026
1. Adopt a finding that the potential environmental effects of the Ordinances have been previously analyzed as part of the certified Downtown Community Plan Environmental Impact Report, the 6th Cycle Housing Element Environmental Impact Report and subsequent addendum, and a finding of no possibility of significant effect pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines;
2. Adopt a Resolution to Amend the Text of the Downtown Community Plan to Effectuate the Goals of the Realignment Plan by Increasing the Potential of CityOwned Sites in the Downtown Community Plan Area and Sites Located Within the Gateway Master Plan Area; and
3. Introduce for First Reading an Ordinance Amending the Text of the Zoning Ordinance to Effectuate the Goals of the Realignment Plan by Increasing the Potential of CityOwned Sites in the Downtown Community Plan Area.
Recommendation
Item 12-A
July 14, 2026
Item 12-A
July 14, 2026