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HomeMy WebLinkAboutStaff Report 5.B 12/05/2011 /tool/ #5.3 4 ALU 4 . 185 DATE: December 5, 2011 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Scott Duiven, Senior Planner/ Heather Hines, Deputy Planning Manager Ingrid Alverde, Economic Development Manager SUBJECT: Introduction of Ordinance Amending Chapters 4, 7, 8, and 24 of the City of Petaluma Implementing Zoning Ordinance to Promote Economic Development. RECOMMENDATION It is recommended, consistent with the Planning Commission's direction, that the City Council adopt the attached Ordinance Amending Chapters 4, 7, 8, and 24 of the Petaluma Implementing Zoning Ordinance to Promote Economic Development. BACKGROUND The City completed an update of its General Plan in 2008. The General Plan 2025 establishes goals for economic development, including continued growth in retail, office, and industrial development. The Implementing Zoning Ordinance (IZO) was adopted at the same time to provide consistency with the newly adopted General Plan by establishing a zoning map, development standards, and allowable uses consistent with the General Plan. When the IZO was adopted, the City had in place a Development Code Advisory Committee (DCAC), which was reviewing the need for zoning changes to achieve consistency with the General Plan 2025 as part of a comprehensive development code update. Due to the recession, budget shortfalls, and subsequent decrease in staffing and services that work was not completed and the DCAC was disbanded. The Economic Development Strategy, accepted by the City Council in November 2010, notes that the national economic recession has created significant nonresidential vacancies, declining property values, and decreased tax revenues. The Economic Development Strategy identifies filling nonresidential vacancies and expanding tourism among other strategies as short-term, high- priority initiatives for improving Petaluma's economic climate. The strategy recommends that staff review opportunities to provide additional flexibility in Petaluma's zoning code to make it easier to lease, sell or reuse vacant nonresidential buildings. Staff has reviewed the code and previous development inquiries to identify areas where Petaluma's zoning code could be amended or clarified to address current development and occupancy demands. The Agenda Review: City Attorney Finance Director City Manager— recommended amendments will make it easier to reuse non - residential buildings in Petaluma; preserve large historic homes by allowing bed and breakfast lodging opportunities; allow tasting rooms to accompany beverage processing establishments; and allow for the extension of certain approved permits. The Planning Commission held a duly- noticed public hearing to consider and make a recommendation on the proposed IZO amendments on October 11, 2011. The Commission reviewed the proposed amendments, received testimony from staff and the public and deliberated. The Planning Commission recommended all of the proposed amendments and in addition provided direction to staff to explore and prepare additional amendments for City Council consideration as follows: • The Planning Commission recommends staff and legal review of providing a longer or unlimited extension period and/or elimination of the good cause requirement for extensions of entitlements for public facilities in Section 24.010 and Section 24.030, for potential consideration by the City Council. • The Planning Commission recommends staff further explore retroactive application of the entitlement extension provisions in the proposed changes and develop a method by which this could be implemented for City Council consideration. • The Planning Commission recommends that Staff develop and the City Council adopt a further change to the IZO, increasing the noticing requirement for Bed and Breakfast Inn proposals to include mailed notice to properties within 1,000 feet of the proposed use. Minor text modifications are proposed to Chapters 4, 7, 8, and 24 of the IZO as outlined in the discussion below. DISCUSSION Street Fronting Uses in Non - Residential Zones Petaluma's Mixed Use, Commercial, Business Park, and Industrial zones each limit certain uses to upper floors or behind ground floor street fronting uses in an effort to activate the street front area for pedestrians. The uses affected include artisan manufacturing, catering, media production, printing, indoor commercial recreation, specialized schools, residential care facilities, live /work spaces, certain medical and office uses, and child care centers, depending on the zone. While this policy has been successful in Petaluma's core downtown areas, staff has identified various instances where this requirement is infeasible due to the orientation and/or scale of the building or due to a lack of demand for retail /other uses in a particular area. Buildings outside of the downtown core, not suited to retail fronting uses have remained vacant for years. As one example, a vacant building originally developed as a freestanding bank or office type use in the MU2 zoning district is required to contain retail uses on the first floor street frontages. Non - retail uses have expressed interest in the building but cannot move forward due to this requirement. The building was not built for retail use and would require significant alterations or demolition in order to accommodate a retail use. As such it remains vacant. In other instances, single -story buildings are limited by this requirement if it is not feasible to locate 2 a non - retail use behind a ground floor street fronting permitted use because there is no second story, limiting reuse and perpetuating vacancies. Staff recommends modifying footnote #6 found in Tables 4.1, 4.2, 4.3, 4.4, and 4.5 (Chapter 4 of the IZO) to allow staff to review these projects on a case by case basis and make allowances for buildings where retail frontage or other required frontage uses are infeasible due to a lack of retail demand, the character of the surrounding neighborhood or limitations of existing buildings. A conditional use permit (CUP) would allow staff and the Planning Commission to consider the siting of the building or use; traffic circulation and parking; the compatibility of the proposed building or use with its site and surrounding neighborhood; and the degree to which the location of the particular use as proposed in the particular location serves the public convenience and necessity. Staff would take care to limit such allowances to areas that are peripheral to downtown, avoiding Kentucky Street and other downtown core areas. To accommodate this change, the footnote at the end of Tables 4.1 thru 4.5 in Section 4.030 would be amended as follows: Section 4.030 - Allowable Land Uses and Permit Requirements Note: (6) Use- allowed - permitted Permitted use on an upper floor or behind ground floor street fronting use, use in other locations allowed subject to a CUP. Bed and Breakfasts in Residential Zones Petaluma is home to many historic homes, many of which are large estate homes. As the homes lose value during this economic recession, staff is concerned that some of these homes may not be preserved because doing so would be too expensive for prospective owners. The cost of maintaining large historic homes as single - family homes is often prohibitive and the modern family demographic is not always conducive to the continued use of these larger homes as single - family homes. One way to preserve an old home is to convert it to a bed and breakfast. Staff has received several inquiries regarding bed and breakfasts in large homes within residential neighborhoods surrounding Petaluma's downtown core. Because Petaluma's code does not permit bed and breakfasts in any zone other than MU2, staff has been unable to formally review these inquiries as potential projects. Staff proposes to conditionally permit bed and breakfasts in the R1, R2, and R3 zoning districts. Use of a historic home as a bed and breakfast typically requires minimal alterations to the exterior of the home, minimizing changes to the historic character of the individual house and the surrounding neighborhood. Modifications typically do not prohibit returning the building to its original single - family use in the future. The required Conditional Use Permit would allow each proposal to be evaluated in order to preserve neighborhood character by regulating operational impacts such as parking, concentration, deliveries, outdoor activities, special events, amplified music, etc. In addition to maintaining property values and preserving historic homes, bed and breakfasts would contribute to Petaluma's transient occupancy tax revenues and help meet the Economic Development Strategy's goal of expanding tourism. Staff searched for bed and breakfasts in Petaluma and found no operating bed and breakfasts. To implement this change, Section 4.030, Tables 4.1 and 4.2 are proposed to be amended as follows: 3 Section 4.030 — Allowable Land Uses and Permit Requirements Natural and Rural Zones P(16) Permitted Use TABLE 4.1 CUP Conditional Use Permit Required Permit Requirement in Specific Use Allowed Land Uses and Permit Requirements for Natural Regulations and Rural Zones A Accessory Use Use Not Allowed Permit Required by Zone Specific Use LAND USE TYPE (1) OSP AG RR R1 Regulations LODGING Lodging - Bed & Breakfast Inn (B &B) — — — CUP Section 7.100 Residential Zones P(16) Permitted Use TABLE 4.2 CUP Conditional Use Permit Required Permit Requirement in Specific Use Allowed Land Uses and Permit Requirements for Residential Regulations Uses A Accessory Use Use Not Allowed Permit Required by Zone Specific Use LAND USE TYPE (1) R2 R3 R4 R5 Regulations LODGING Lodging - Bed & breakfast Inn (B &B) CUP CUP — — Section 7.100 In addition a new section would be added to Chapter 7 — Standards for Specific Land Uses as Section 7.100 Bed & Breakfast Inns to further define requirements and conditions for establishing and operating a bed and breakfast. The Planning Commission recommended that the City Council include a further change to the IZO to increase the noticing requirement for Bed and Breakfast Inn proposals to include mailed notice to properties within 1,000 feet of the proposed use. This has been incorporated as Section 7.100(E) - Public Notice for the Council's consideration. 7.100 Bed & Breakfast Inns This Section provides requirements and conditions for the establishment and operation of a bed and breakfast inn (B &B) within a residential zoning district. A. Purpose. The intent of this section and the standards outlined below are to assist in preservation and adaptive reuse of the city's historic resources, to serve visitors of Petaluma, 4 to ensure that bed and breakfast inns are compatible with the residential area and to preserve the residential character of the neighborhoods in which they are located. B. Permit Required. No bed and breakfast inn shall be established within a residential zoning district where otherwise allowed as outlined in Tables 4.1 and 4.2 without application for and approval of a conditional use permit in compliance with Section 24.030. C. Findings. In addition to use permit findings required by Chapter 24.030, the decision making body shall make the following findings prior to approval of a use permit for the establishment of a bed and breakfast inn in a residential zoning district: 1. The establishment of the bed and breakfast inn is consistent with General Plan policies regarding historic preservation; 2. The bed and breakfast inn use will not be detrimental to the historic or architectural character of the existing building(s); and 3. The bed and breakfast inn use is compatible with and will not be detrimental to the character of the neighborhood and surrounding land uses. D. Requirements and Conditions. The following requirements and conditions apply to all bed and breakfast inns within residential zoning districts: 1. Adaptive Reuse. Establishment of bed and breakfast inns shall be limited to the adaptive reuse or conversion of an historic or architecturally unique residential structure and shall not require significant exterior modifications that would diminish the uniqueness or significance of the residential structure or surrounding neighborhood. 2. Concentration. When a new bed and breakfast inn is proposed within 300 feet of another bed and breakfast inn, the decision - making body shall make an additional finding prior to approval of the use that the new bed and breakfast inn does not harm the character and/or use of adjacent residential properties. In considering the findings required by this subsection and subsection 7.100.0 above, the decision maker shall also consider the number of existing and proposed bed and breakfast inns within 300 feet of the proposed use in determining whether the proposed use is compatible with and not detrimental to the character of the neighborhood and surrounding land uses and not harmful to the character and /or use of adjacent residential properties. 3. Modifications. New structures or additions to the existing structure shall be designed to maintain the established residential character and scale of the individual property and the surrounding neighborhood. 5 4. Limit on Maximum Number of Guest Rooms. The number of guest rooms permitted shall be determined in the conditional use permit process based on the size of the existing building, grounds and site; the relationship of the site to the character, size and scale of surrounding neighborhood buildings; and visitor access and parking. In general, the number of quest rooms should not exceed 7. 5. On -Site Manager. An on -site manager shall maintain residence on the site. 6. Length of Stay. Visitor occupancy shall be limited to a maximum of twenty -nine consecutive days. 7. Food Service. Food service shall be limited to registered overnight guests only and shall not include an independent restaurant. Cooking facilities in individual guest rooms are prohibited. 8. Events. Amplified music, lawn parties, outdoor weddings, and other similar activities shall not occur on site unless specifically allowed through the approved conditional use permit. All such ancillary uses shall comply with city performance standards, including but not limited to the performance standards in Chapter 21. 9. Signs. One on -site sign shall be allowed on each street frontage. If illuminated, signs shall be indirectly illuminated, and each sign shall not exceed two square feet in area, consistent with Section 20.110(B)(4). 10. Parking. On -site parking shall be provided as required in Table 11.1 for Bed and Breakfast Inns. 11. Transient Occupancy Tax. Bed and breakfast rentals shall be subject to the City's transient occupancy tax. E. Public Notice. Noticing for bed and breakfast inn applications shall include mailed notice to properties within 1,000 feet of the proposed use. Tasting Rooms The Implementing Zoning Ordinance does not allow alcoholic beverage establishments in Business Park or Industrial Zones. However, beverage manufacturing such as wineries, breweries, and distilleries are generally located within the Business Park and Industrial Zones. This limits wineries, breweries and distilleries from presenting their products to clientele. Petaluma's Economic Development Strategy specifically targets Petaluma's growing food and beverage processing industry as an industry that should be supported and encouraged to grow in Petaluma. Food and beverage processing businesses not only create jobs themselves, they stimulate dozens of spin off jobs and related spending from employees of suppliers and vendors 6 throughout the City and the County. Staff recommends amending Chapter 8 of the IZO to allow tasting rooms regardless of the zoning district when the tasting is ancillary to the primary business; located on the premises of the alcohol production facility; does not operate as a standalone bar or tavern; only serves and/or sells those beverages produced by the company on site; and the tasting room complies with all applicable ABC regulations for wine, beer, and distilled spirit manufacturers. To implement this change Section 8.030 of the IZO is proposed to be amended as follows: 8.030 - Zones for Alcoholic Beverage Establishments Alcoholic beverage establishments are conditional uses only in the commercial and mixed use zones, 01, C2, MU1A, MU1B, and MU2 and in certain P.U.D.s where appropriately designated as identified by the Zoning Ordinance and General Plan. No such establishment shall be permitted in any ar a outside of one of these commercial and mixed use zones A tasting room which qualifies as an ancillary use pursuant to Section 8.035 may also be allowed in the industrial and business park zones, I and BP. 8.035 — Tasting Rooms Tasting rooms associated with an alcohol production facility may be considered ancillary to the primary use and approved by the Zoning Administrator as provided by Section 24.030(M), upon compliance with all of the following criteria: A. The tasting room shall be located on the premises of the alcohol production facility and operations shall be ancillary to the primary use. "Ancillary" for purposes of this section means subordinate, auxiliary, smaller and less intensive than the primary use B. The tasting room shall not operate as a stand -alone bar or tavern; C. The tasting room shall only serve and/or sell those beverages produced by the company on site; and D. The tasting room shall comply with all applicable ABC and State regulations for wine, beer, and distilled spirit manufacturers and tasting rooms. E. In addition to satisfying all of the above criteria, prior to issuance of a minor conditional use permit hereunder, the Zoning Administrator must determine that the minor conditional use permit also meets the general welfare standard set forth as a required finding for conditional use permits in Section 24.030.H. Extensions of Time The current IZO is restrictive on time extensions for Site Plan and Architectural Review (SPAR) and Conditional Use Permits (CUP), particularly given the current economic times. SPAR approvals are valid for twelve (12) months. If an appropriate development permit has not been issued for a project or if the approved use is not commenced within a year of SPAR approval, the site plan and architectural approval expires, unless a six (6) month extension is requested and approved at least thirty (30) days prior to the expiration date. The maximum life of a SPAR approval is limited to eighteen (18) months. If a Conditional Use Permit has not been used within one (1) year of approval it will expire unless a one (1) year extension is requested and approved at least thirty (30) days prior to the expiration date. The maximum life of a CUP approval is two (2) years unless the use is commenced. 7 Staff has heard from many applicants that the time that initial approvals are valid is too short given the challenges of obtaining project financing in the current economic climate. Staff proposes language under the SPAR and CUP sections allowing for three (3), twelve (12) month extensions. This could extend these approvals for a total maximum life of four (4) years. Staff recommends that the City Council revisit the extension provision in the future to determine if the number of extensions remains appropriate based on future economic conditions. The Planning Commission further directed staff to explore two additional areas for City Council consideration. First, the Commission asked that staff explore retroactive application of the entitlement extension provisions for projects with expired entitlements. Staff has proposed additional language to Chapter 24 of the IZO that allows for reactivation of SPAR and CUP approvals provided that the property owner /applicant submits such a request by July 31, 2012. Examples of projects that may benefit from this provision include, but are not limited to the following projects: o Beyond the Glory (restaurant) o North River Landing (mixed use) o RNM: Sola (office) o Bank of America (mixed use) o Water Street Live /Work (mixed use) o Petaluma Valley Hospital Expansion (medical offices) o Logan Place (affordable housing) o Fire Station #1 (public facility) o Wood Ridge Subdivision (residential) o El Rose Heights (residential) o Marina Office Building (office) Second, the Planning Commission provided direction to staff to investigate the potential for allowing greater flexibility for public facility projects by not limiting the number of extensions, recognizing the challenges in obtaining funding for public projects. Staff has added proposed language in Chapter 24 of the IZO that does not limit the number of time extensions that may be requested for public facility projects. Currently, this provision would benefit the replacement for Fire Station #1. To implement the above changes Sections 24.010 and 24.030 of the IZO are proposed to be amended as shown below: 24.010 — Site Plan and Architectural Review Expiration of Permit. If an appropriate development permit has not been issued for a project or, if no permit is necec‘cary, if the approved use is not commenced Site Plan and Architectural Review approval shall automatically expire twelve (12) months after - e . • .• - .. .pproval unless the permit has been exercised or , the site plan and architectural approval shall become void, unless a six month extension is requested and approved by the Director at I st thirty (30) days prior to the twelve (12) month expiration date an extension of time is approved in compliance with subsection J. The approval shall not be deemed "exercised" until the permittee has commenced the approved use on the site in compliance with the conditions of approval or an application for building permit has been submitted in compliance with the conditions of approval. The approval shall remain valid after it has been exercised as long as a building 8 permit remains active or a final building inspection or certificate of occupancy has been granted. Upon expiration of Site Plan and Architectural Review approval, no further work shall be done on the site until a new approval is first obtained. J. Extension of Time. Upon submittal of an application to the Community Development Department on a form prescribed for this purpose by the Department, the Director may extend the time limit established in subsection 24.010.1. for Site Plan and Architectural Review approval. 1. The application filed shall include a written request for an extension of time and shall be filed at least 30 days prior to the expiration of the site plan and architectural review approval, together with the filing fee required by the adopted fee schedule. 2. The Director shall determine whether the applicant has made a good faith effort to exercise the approval. The applicant shall provide substantial evidence that circumstances beyond the control of the applicant have created an inability to commence the use or apply for a building permit within the time period in subsection 24.010.1. For purposes of this subsection only, such circumstances may include but are not limited to financial hardship, temporary delay or unavailability of funding, unanticipated delays in securing necessary property rights for the project and/or unanticipated or abnormal weather conditions sufficient to delay commencement or completion of construction or pre- construction activities. The requirements of this subsection requiring the provision of substantial evidence shall not apply to city public facility projects. 3. The Director may grant up to three 12 -month extensions to the expiration date of the original approval only upon the Director's determination separately for each extension that conditions of the site and in the vicinity of the project are substantially the same as when the permit or approval was originally granted and /or that any changes which have occurred do not affect the validity of the findings for the original approval, that the project remains in general conformance with General Plan and zoning ordinance requirements and that the applicant has made a good faith effort to exercise the approval. Only one 12 -month extension may be granted at a time. More than three extensions may be granted for city public facilities projects. K. Reactivation. Expired site plan and architectural review approvals may be granted reactivation by the Director upon a determination that the conditions stated for granting extensions pursuant to subsection J above are met. The application for reactivation shall be in general conformance with General Plan goals and policies and zoning ordinance requirements in effect at the time of application for reactivation. Any reactivated project must comply with said requirements and with current building codes. The property owner /applicant must request reactivation by July 31, 2012 by submittal of an application and payment of application fee, which shall be the same as the fee for an extension of time. Applications for reactivation submitted later than July 31, 2012 shall not be accepted. This subsection shall expire after July 31, 2012, and shall be of no force or effect thereafter, unless otherwise amended. 24.030 - Conditional Use Permits A. Purpose. The purpose of the conditional use permit is to insure ensure the proper integration of uses which, because of their special nature, may be suitable only in certain locations and only provided such uses are arranged or operated in a particular manner. In addition to the review described herein, any proposed conditional use shall be subject to site standards set forth in Section 24.010 (SPARC review). Additional application shall be required and additional fee shall be charged for site plan and architectural review. 9 B. Application. Application for a conditional use permit shall be made by the property owner or certified agent thereof to the Planning Commission on a form prescribed for this purpose by the City of Petaluma and shall be accompanied by such additional documents or supporting material as may be required for review of the proposed use, including where appropriate, the plans, drawings, and information to permit a site plan and architectural review in accordance with the procedure in Section 24.010(E) (SPARC Investigation & Report). C. Fee. The fee for a conditional use shall be established by resolution of the City Council from time to time hereinafter enacted. D. Investigation and Report. The Zoning Administrator (Director) shall make an investigation of the application and shall prepare a report thereon which shall be submitted to the Planning Commission. E. Public Hearing. The Planning Commission shall hold at least one (1) public hearing on each application for a conditional use permit except for minor conditional use permits as provided in subsection P hereof. F. Notice of Public Hearing. The Planning Commission shall publish a notice of hearing in a newspaper of general circulation in the City of Petaluma not less than ten (10) days prior to the date of such hearing. Failure of owners to receive notice of hearing shall in no way affect the validity of action taken. In addition, the Commission may publicize the hearing in any other manner as it sees fit. G. Considerations for Review of Applications. In reviewing an application for a conditional use permit, the Planning Commission shall give due regard to the nature and condition of all adjacent uses and structures, and to the following general and specific requirements: 1. The siting of the building or use, and in particular: a. The adequacy of the site to accommodate the proposed use or building and all related activities. b. The location and possible screening of all outdoor activities. c. The relation of the proposed building or use to any adjoining building with particular attention to protection of outlook, light, air, and peace and quiet. d. The location and character of any display of goods and services and the size, nature, and lighting of any signs. e. The intensity of activity. 2. Traffic circulation and parking, and in particular: a. The type of street serving the proposed use in relation to the amount of traffic expected to be generated. b. The adequacy, convenience, and safety of provisions for vehicular access and parking, including the location of driveway entrance and exits. c. The amount, timing, and nature of any associated truck traffic. 3. The compatibility of the proposed building or use with its environment, and in particular: a. The number of customers or users and the suitability of the resulting activity level to the surrounding uses and especially to any neighboring uses of unusual public importance such as schools, libraries, playgrounds, churches, and hospitals. b. Hours of operation. 10 c. Adequacy of provisions for the control of any off -site effects such as noise, dust, odors, light, or glare, etc. d. Adequacy of provisions for protection of the public against any special hazards arising from the intended use. e. The proportion of total space utilized. 4. The expected duration of the proposed building, whether temporary or permanent, and the setting of time limits when appropriate. 5. The degree to which the location of the particular use in the particular location can be considered a matter of public convenience and necessity. H. Findings. The Planning Commission shall approve a conditional use permit only when it has found in writing that the proposed structure or use, subject to any conditions which it may have attached, will conform to the requirements and the intent of this Ordinance and the Petaluma General Plan, and that such use will not, under the circumstances of the particular case, constitute a nuisance or be detrimental to the public welfare of the community. These findings shall be based on substantial evidence in view of the whole record to justify the decision. Conditions. The Commission may impose such requirements and conditions with respect to location, construction, maintenance, operation, and duration as may be deemed necessary for the protection of adjacent properties and the public interest. J. Revocation. Upon violation of any applicable provision of this Ordinance, or, if granted subject to a condition or conditions, upon failure to comply with the condition or conditions, a certified letter shall be sent to the permittee informing the permittee of the facts constituting noncompliance and stating that the permittee has twenty (20) calendar days from the date the letter is received to comply with the provisions and conditions of the use permit. If after twenty (20) days has elapsed from the date of said notice, the permittee has failed to comply with the provisions and conditions of the use permit, the Director shall send a second certified letter to the permittee suspending the use permit and advising the permittee of the permittee's right to be heard by filing an appeal pursuant to Section 24.070 within twenty (20) days of the second notice letter. The suspension will be in effect for twenty (20) calendar days from the date of notification. and will require that the use being allowed under the use permit be suspended. If, after the twenty (20) days suspension the violation has not been remedied, or the permittee has failed to file a timely or--an appeal. filed -the use permit shall be deemed revoked and shall be null and void without further action by the City. K. Expiration of Permit. In any case where a cA conditional use permit shall automatically expire twelve (12) months after approval unless the permit has been exercised or unless an extension of time is approved in compliance with subsection L. The approval shall not be deemed "exercised" until the permittee has commenced the approved use on the site in compliance with the conditions of approval or an application for building permit has been submitted in compliance with the conditions of approval L. Extension of Time. Upon submittal of an application to the Community Development Department on a form prescribed for this purpose by the Department, the Director may extend the time limit established in Subsection 24.030.K for the initial life of an approved conditional use permit which has not been exercised. 1. The application filed shall include a written request for an extension of time and shall be filed at least 30 days prior to the expiration of the conditional use permit, together with the filing fee required by the adopted fee schedule. 11 2. The Director shall determine whether the applicant has made a good faith effort to exercise the approval. The applicant shall provide substantial evidence that circumstances beyond the control of the applicant have created an inability to commence the use or apply for a building permit within the time period in subsection K hereof. For purposes of this subsection only, such circumstances may include but are not limited to financial hardship, temporary unavailability or delay in funding, unanticipated delays in securing necessary property rights for the project, unanticipated or abnormal weather conditions sufficient to delay commencement or completion of construction or pre- construction activities. These circumstances apply only to the extension of time for commencement of use under a newly issued use permit and not to cessation of activity for purposes of abandonment of a use permit, pursuant to Section 24.030.M. The provisions of this subsection shall not apply to city public facility permits. 3. The Director may grant up to three 12 -month extensions to the expiration date of the original approval only upon the Director's determination separately for each extension that conditions of the site and in the vicinity of the project are substantially the same as when the permit or approval was originally granted and/or that any changes which have occurred do not affect the validity of the findings for the original approval, that the project remains in general conformance with General Plan and zoning ordinance requirements and that the applicant has made a good faith effort to exercise the approval. Only one 12 -month extension may be granted at a time. More than three extensions may be granted for city public facilities projects. M. Abandonment. Whenever the use permitted by a conditional use permit has been abandoned, the permit shall be deemed revoked, and shall be null and void. For purposes of this section, "abandonment" means: 1. Cessation of the use permitted by the permit for a period of one year. 2. Institution of a different use which does not include the use which is the subject of the permit. 3. Receipt of and commencement of use under a new use permit for a use or combination of uses not previously permitted. 4. Except in the case of an extension pursuant to Subsection 24.030.L, or reactivation pursuant to Subsection 24.030.S, cessation of diligent activity to construct the permitted use for a period of one year or more, once begun, unless the cessation of activity is due to factors beyond the control of the property owner. For purposes of this subsection only In this context, lack of adequate financing, bankruptcy or financial failure of the owner or his agent, employees, contractors, or investors will be deemed to be within the control of the owner. Upon abandonment, any affected owner may apply for a new conditional use permit, which shall be governed by regulations in effect at the time of approval thereof, if such approval is forthcoming. N. New Application. Following the denial of a use permit application or the revocation of a use permit, no application for a use permit for the same or substantially the same conditional use on the same site shall be filed within one (1) year from the date of denial or revocation of the use permit. The Zoning Administrator shall determine in his /her discretion whether the proposed use is the same or s_ ubstantially the same for purposes of this subsection. 0. Use Permit to Run with Land. A use permit granted pursuant to the provisions of this Chapter shall run with the land and shall be valid for the successors in interest of the original grantee. 12 P. Minor Use Permits. For minor use permits, the Zoning Administrator is hereby empowered to receive applications, notify pursuant to Section 24.030(F), offer the opportunity of for public hearings, and or approve subject to the same findings and conditions as required of the Planning Commission. For purposes of this section, "minor use permits" include minor exterior modifications or enlargements to existing use permits, said modifications or enlargements being inconsequential in nature and not involving a significant change in operations; minor extension of operating hours to existing use permits where the business has no appreciable outside noise and /or does not affect an abutting a residential district; new use permits where the use is of the same or more restricted nature as the previous use occupying the site; new use permits to authorize dwelling groups, in accordance with the provisions of Section 7.040; new use permits for tasting rooms pursuant to Section 8.035, new use permits to authorize the establishment of conditional uses in commercial and industrial districts where the Zoning Administrator finds that the use will be compatible with adjacent uses and is in conformance with typical development standards, e.g., parking, landscaping, fencing, etc., and applicable performance standards; new use permits to authorize existing single - household dwellings or to reestablish single - household dwellings in selected commercial districts; previously approved use permits which have expired within the past twenty -four months; minor telecommunications facilities in accordance with the provisions of Petaluma Municipal Code 14.44.20. Q. Referral to Planning Commission. The Zoning Administrator may refer to the Planning Commission for a public hearing any project and projects for which adverse impacts have been identified as the result of information received in response to public notification and in the determination of the Zoning Administrator, the identified impacts cannot be adequately controlled or mitigated. R. Appeal. As prescribed in Section 24.070. S. Reactivation. Expired or abandoned conditional use permits may be granted reactivation by the Director upon a determination that the conditions stated for granting extensions pursuant to subsection L above are met. The application for reactivation shall be in general conformance with General Plan goals and policies and zoning ordinance requirements in effect at the time of application for reactivation. Any reactivated project must comply with said requirements and with current building codes. The property owner /applicant must request reactivation by July 31, 2012 by submittal of an application and payment of application fee, which shall be the same as the fee for an extension of time. Applications for reactivation submitted later than July 31, 2012 shall not be accepted. This subsection shall expire after July 31, 2012, and shall be of no force or effect thereafter, unless otherwise amended. FINANCIAL IMPACTS The zoning text amendments included in this proposal are designed to help promote economic development by filling nonresidential vacancies and expanding tourism, the effect of which may include increased property, sales, and transient occupancy taxes. ATTACHMENTS 1. Draft Ordinance Amending the Text of Chapters 4, 7, 8, and 24 2. Planning Commission Resolution 2011 -04, October 10, 2011 3. Planning Commission Staff Report, October 11, 2011 13 ATTACHMENT 1 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING CHAPTER 4, SECTION 4.030, ALLOWABLE LAND USES AND PERMIT REQUIREMENTS; ADDING SECTION 7.100, BED AND BREAKFAST INNS TO CHAPTER 7, STANDARDS FOR SPECIFIC LAND USES; AMENDING CHAPTER 8, ALCOHOLIC BEVERAGE ESTABLISHMENTS, SECTION 8.030, ZONES FOR ALCOHOLIC BEVERAGE ESTABLISHMENTS; ADDING SECTION 8.035, TASTING ROOMS; AMENDING CHAPTER 24, SECTION 24.010, SITE PLAN AND ARCHITECTURAL REVIEW; AND AMENDING CHAPTER 24, SECTION 24.030, CONDITIONAL USE PERMITS, OF THE CITY OF PETALUMA IMPLEMENTING ZONING ORDINANCE WHEREAS, Section 25.010 of the City of Petaluma Implementing Zoning Ordinance (IZO) provides in pertinent part that no amendment that regulates matters listed in Government Code Section 65850 shall be made to the IZO unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan; and WHEREAS, on November 15, 2010 the Petaluma City council accepted the Petaluma Economic Development Strategy which identifies filling nonresidential vacancies and expanding tourism among other strategies as short -term, high - priority economic development initiatives for improving Petaluma's economic climate; and, WHEREAS, staff has proposed a series of provisions amending the IZO, Chapter 4, Section 4.030, Allowable Land Uses and Permit Requirements; adding Section 7.100, Bed and Breakfast Inns to Chapter 7, Standards for Specific Land Uses; amending Chapter 8, Alcoholic Beverage Establishments, Section 8.030, Zones for Alcoholic Beverage Establishments and adding Section 8.035, Tasting Rooms; amending Chapter 24, Section 24.010, Site Plan and Architectural Review; and amending Chapter 24, Section 24.030, Conditional Use Permits, as hereinafter set forth, (collectively, "the amendments "), in order to reduce barriers to filling existing vacancies, and promote economic development; and WHEREAS, a public notice of the October 11, 2011 public hearing before the Planning Commission to consider the amendments was published in the Argus- Courier on September 29, 2011; and, WHEREAS, on October 11, 2011, the Planning Commission held a duly- noticed public hearing in accordance with the City of Petaluma Implementing Zoning Ordinance, Section 24.010; and, WHEREAS, after the conclusion of said public hearing, the Planning Commission adopted its Resolution No. 2011 -04, recommending that the City Council adopt the amendments, with modifications; and icak WHEREAS, on November 24, 2011, a public notice of the December 5, 2011 public hearing before the City Council to consider the amendments was published in the Argus- Courier; and, WHEREAS, on December 5, 2011, the City Council of the City of Petaluma held a duly noticed public hearing to consider the amendments. FINDINGS The City Council of the City of Petaluma hereby finds: 1. The provisions amending the IZO, Chapter 4, Section 4.030, Allowable Land Uses and Permit Requirements; adding Section 7.100, Bed and Breakfast Inns to Chapter 7, Standards for Specific Land Uses; amending Chapter 8, Alcoholic Beverage Establishments, Section 8.030, Zones for Alcoholic Beverage Establishments and adding Section 8.035, Tasting Rooms; amending Chapter 24, Section 24.010, Site Plan and Architectural Review; and amending Chapter 24, Section 24.030, Conditional Use Permits, as hereinafter set forth, (collectively, "the amendments "), are in general conformity with the Petaluma General Plan 2025 and the Central Petaluma Specific Plan because the amendments are expected to reduce existing vacancies, encourage new development, promote job growth, and assist in the preservation of historic structures, thereby contributing to the City of Petaluma's economic base, yielding net fiscal benefits and strengthening the vitality and diversity of the community. 2. The public necessity, convenience, and general welfare clearly permit the amendments. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA THAT THE CITY OF PETALUMA IMPLEMENTING ZONING ORDINANCE IS AMENDED AS FOLLOWS: Section 1. The Table of Contents is hereby amended to add "Section 7.100, Bed and Breakfast Inns" to the Table of Contents, Chapter 7, Standards for Specific Land Uses; and to add "Section 8.035, Tasting Rooms ", to the Table of Contents, Chapter 8, Alcoholic Beverage Establishments. Section 2. Chapter 4, Zone Districts, Section 4.030, Allowable Land Uses and Permit Requirements, Footnote 6 to Tables 4.1 through 4.5 is hereby amended to read as follows: Note: (6) Usc allowed only permitted Permitted use on an upper floor or behind ground floor street fronting use; use in other locations allowed subject to a CUP. Section 3. Chapter 4, Zone Districts and Allowable Land Uses, Section 4.030, Allowable Land Uses and Permit Requirements, Tables 4.1 and 4.2 are hereby amended to read as follows: Natural and Rural Zones P(16) Permitted Use TABLE 4.1 CUP Conditional Use Permit Required Permit Requirement in Specific Use Allowed Land Uses and Permit Requirements for Natural Regulations and Rural Zones A Accessory Use Use Not Allowed Permit Required by Zone Specific Use LAND USE TYPE (1) OSP AG RR R1 Regulations LODGING Lodging - Bed & Breakfast Inn (B &B) CUP Section 7.100 Residential Zones P(16) Permitted Use TABLE 4.2 CUP Conditional Use Permit Required Permit Requirement in Specific Use Allowed Land Uses and Permit Requirements for Residential Regulations Uses A Accessory Use Use Not Allowed Permit Required by Zone Specific Use LAND USE TYPE (1) R2 R3 R4 R5 Regulations LODGING Lodging -Bed & breakfast inn (B &B) CUP CUP — — Section 7.100 Section 4. Chapter 7, Standards for Specific Land Uses, of the City of Petaluma Implementing Zoning Ordinance is hereby amended to add Section 7.100 entitled "Bed & Breakfast Inns" to read as follows: 7.100 Bed & Breakfast Inns This Section provides requirements and conditions for the establishment and operation of a bed and breakfast inn (B &B) within a residential zoning district. A. Purpose. The intent of this section and the standards outlined below are to assist in preservation and adaptive reuse of the city's historic resources, to serve visitors of Petaluma, to ensure that bed and breakfast inns are compatible with the residential area and to preserve the residential character of the neighborhoods in which they are located. B. Permit Required. No bed and breakfast inn shall be established within a residential zoning district where otherwise allowed as outlined in Tables 4.1 and 4.2 without application for and approval of a conditional use permit in compliance with Section 24.030. 1�P C. Findings. In addition to use permit findings required by Chapter 24.030, the decision making body shall make the following findings prior to approval of a use permit for the establishment of a bed and breakfast inn in a residential zoning district: 1. The establishment of the bed and breakfast inn is consistent with General Plan policies regarding historic preservation; 2. The bed and breakfast inn use will not be detrimental to the historic or architectural character of the existing building(s); and 3. The bed and breakfast inn use is compatible with and will not be detrimental to the character of the neighborhood and surrounding land uses. D. Requirements and Conditions. The following requirements and conditions apply to all bed and breakfast inns within residential zoning districts: 1. Adaptive Reuse. Establishment of bed and breakfast inns shall be limited to the adaptive reuse or conversion of an historic or architecturally unique residential structure and shall not require significant exterior modifications that would diminish the uniqueness or significance of the residential structure or surrounding neighborhood. 2. Concentration. When a new bed and breakfast inn is proposed within 300 feet of another bed and breakfast inn, the decision - making body shall make an additional finding prior to approval of the use that the new bed and breakfast inn does not harm the character and /or use of adjacent residential properties. In considering the findings required by this subsection and subsection 7.100.0 above, the decision maker shall also consider the number of existing and proposed bed and breakfast inns within 300 feet of the proposed use in determining whether the proposed use is compatible with and not detrimental to the character of the neighborhood and surrounding land uses and not harmful to the character and/or use of adjacent residential properties. 3. Modifications. New structures or additions to the existing structure shall be designed to maintain the established residential character and scale of the individual property and the surrounding neighborhood. 4. Limit on Maximum Number of Guest Rooms. The number of quest rooms permitted shall be determined in the conditional use permit process based on the size of the existing building, grounds and site; the relationship of the site to the character, size and scale of surrounding neighborhood buildings; and visitor access and parking. In general, the number of quest rooms should not exceed 7. 5. On -Site Manager. An on -site manager shall maintain residence on the site. 6. Length of Stay. Visitor occupancy shall be limited to a maximum of twenty -nine consecutive days. 7. Food Service. Food service shall be limited to registered overnight quests only and shall not include an independent restaurant. Cooking facilities in individual guest rooms are prohibited. 8. Events. Amplified music, lawn parties, outdoor weddings, and other similar activities shall not occur on site unless specifically allowed through the approved conditional use permit. All such ancillary uses shall comply with city performance standards, including but not limited to the performance standards in Chapter 21. 9. Signs. One on -site sign shall be allowed on each street frontage. If illuminated, signs shall be indirectly illuminated, and each sign shall not exceed two square feet in area, consistent with Section 20.110(B)(4). 10. Parking. On -site parking shall be provided as required in Table 11.1 for Bed and Breakfast Inns. 11. Transient Occupancy Tax. Bed and breakfast rentals shall be subject to the City's transient occupancy tax. E. Public Notice. Noticing for bed and breakfast inn applications shall include mailed notice to properties within 1,000 feet of the proposed use. Section 5. Chapter 8, Alcoholic Beverage Establishments, Section 8.030, Zones for Alcoholic Beverage Establishments, is hereby amended to read as follows: Section 8.030 — Zones for Alcoholic Beverage Establishments Alcoholic beverage establishments are conditional uses only in the commercial and mixed use zones, 01, C2, MU1A, MU1B, and MU2 and in certain P.U.D.s where appropriately designated as identified by the Zoning Ordinance and General Plan. No such establishment shall be permitted in any area outside of one of thccc commercial and mixcd use zones A tasting room which qualifies as an ancillary use pursuant to Section 8.035 may also be allowed in the industrial and business park zones, I and BP. Section 6. Chapter 8, Alcoholic Beverage Establishments, is hereby amended to add Section 8.035, Tasting Rooms, to read as follows: 8.035 — Tasting Rooms Tasting rooms associated with an alcohol production facility may be considered ancillary to the primary use and approved by the Zoning Administrator as provided by Section 24.030(M), upon compliance with all of the following criteria: A. The tasting room shall be located on the premises of the alcohol production facility and operations shall be ancillary to the primary use. "Ancillary" for purposes of this section means subordinate, auxiliary, smaller and less intensive than the primary use B. The tasting room shall not operate as a stand -alone bar or tavern; C. The tasting room shall only serve and /or sell those beverages produced by the company on site; and D. The tasting room shall comply with all applicable ABC and State regulations for wine, beer, and distilled spirit manufacturers and tasting rooms. E. In addition to satisfying all of the above criteria, prior to issuance of a minor conditional use permit hereunder, the Zoning Administrator must determine that the minor conditional use permit also meets the general welfare standard set forth as a required finding for conditional use permits in Section 24.030.H. Section 7. Chapter 24, Administrative Procedures, Section 24.010, Site Plan and Architectural Review, Subsection 24.010.1, Expiration of Permit, is hereby amended to read as follows: I. Expiration of Permit. If an appropriate development permit has not been ircucd for a 5 e e •e e- ••• •- - .: •: e••••.• Site Plan and Architectural Review approval shall automatically expire twelve (12) months after site plan and architectural approval unless the permit has been exercised or , thc site plan and architectural .5: : • e- e •• - : nless a six month extension is requested and approved by the Director at least thirty (30) days prior to thc twelve (12) month expiration date an extension of time is approved in compliance with subsection J. The approval shall not be deemed "exercised" until the permittee has commenced the approved use on the site in compliance with the conditions of approval or an application for building permit has been submitted in compliance with the conditions of approval. The approval shall remain valid after it has been exercised as long as a building permit remains active or a final building inspection or certificate of occupancy has been granted. Upon expiration of Site Plan and Architectural Review approval, no further work shall be done on the site until a new approval is first obtained. Section 8. Chapter 24, Administrative Procedures, Section 24.010, Site Plan and Architectural Review, Subsection 24.010.J, Extension of Time, is hereby amended to read as follows: J. Extension of Time. Upon submittal of an application to the Community Development Department on a form prescribed for this purpose by the Department, the Director may extend the time limit established in subsection 24.010.1. for Site Plan and Architectural Review approval. 1. The application filed shall include a written request for an extension of time and shall be filed at least 30 days prior to the expiration of the site plan and architectural review approval, together with the filing fee required by the adopted fee schedule. 2. The Director shall determine whether the applicant has made a good faith effort to exercise the approval. The applicant shall provide substantial evidence that circumstances beyond the control of the applicant have created an inability to commence the use or apply for a building permit within the time period in subsection 24.010.1. For purposes of this subsection only, such circumstances may include but are not limited to financial hardship, temporary delay or unavailability of funding, unanticipated delays in securing necessary property rights for the project and/or unanticipated or abnormal weather conditions sufficient to delay commencement or completion of construction or pre- construction activities. The requirements of this subsection requiring the provision of substantial evidence shall not apply to city public facility projects. 3. The Director may grant up to three 12 -month extensions to the expiration date of the original approval only upon the Director's determination separately for each extension that conditions of the site and in the vicinity of the project are substantially the same as when the permit or approval was originally granted and /or that any changes which have occurred do not affect the validity of the findings for the original approval, that the project remains in general conformance with General Plan and zoning ordinance requirements and that the applicant has made a good faith effort to exercise the approval. Only one 12 -month extension may be granted at a time. More than three extensions may be granted for city public facilities projects. Section 9. Chapter 24, Administrative Procedures, Section 24.010, Site Plan and Architectural Review, Subsection 24.010.K, Reactivation, is hereby added to read as follows: K. Reactivation. Expired site plan and architectural review approvals may be granted reactivation by the Director upon a determination that the conditions stated for granting extensions pursuant to subsection L above are met. The application for reactivation shall be in general conformance with General Plan goals and policies and zoning ordinance requirements in effect at the time of application for reactivation. Any reactivated project must comply with said requirements and with current building codes. The property owner /applicant must request reactivation by July 31, 2012 by submittal of an application and payment of application fee, which shall be the same as the fee for an extension of time. Applications for reactivation submitted later than July 31, 2012 shall not be accepted. This subsection shall expire after July 31, 2012, and shall be of no force or effect thereafter, unless otherwise amended. Section 10. Chapter 24, Administrative Procedures, Section 24.030, Conditional Use Permits, is hereby amended to read as follows: 24.030 - Conditional Use Permits A. Purpose. The purpose of the conditional use permit is to In -sure ensure the proper integration of uses which, because of their special nature, may be suitable only in certain locations and only provided such uses are arranged or operated in a particular manner. In addition to the review described herein, any proposed conditional use shall be subject to site standards set forth in Section 24.010 (SPARC review). Additional application shall be required and additional fee shall be charged for site plan and architectural review. B. Application. Application for a conditional use permit shall be made by the property owner or certified agent thereof to the Planning Commission on a form prescribed for this purpose by the City of Petaluma and shall be accompanied by such additional documents or supporting material as may be required for review of the proposed use, including where appropriate, the plans, drawings, and information to permit a site plan and architectural review in accordance with the procedure in Section 24.010(E) (SPARC Investigation & Report). C. Fee. The fee for a conditional use shall be established by resolution of the City Council from time to time hereinafter enacted. D. Investigation and Report. The Zoning Administrator (Director) shall make an investigation of the application and shall prepare a report thereon which shall be submitted to the Planning Commission. E. Public Hearing. The Planning Commission shall hold at least one (1) public hearing on each application for a conditional use permit except for minor conditional use permits as provided in subsection P hereof. F. Notice of Public Hearing. The Planning Commission shall publish a notice of hearing in a newspaper of general circulation in the City of Petaluma not less than ten (10) days prior to the date of such hearing. Failure of owners to receive notice of hearing shall in no way affect the validity of action taken. In addition, the Commission may publicize the hearing in any other manner as it sees fit. G. Considerations for Review of Applications. In reviewing an application for a conditional use permit, the Planning Commission shall give due regard to the nature and condition of all adjacent uses and structures, and to the following general and specific requirements: 1. The siting of the building or use, and in particular: a. The adequacy of the site to accommodate the proposed use or building and all related activities. b. The location and possible screening of all outdoor activities. c. The relation of the proposed building or use to any adjoining building with particular attention to protection of outlook, light, air, and peace and quiet. d. The location and character of any display of goods and services and the size, nature, and lighting of any signs. e. The intensity of activity. 2. Traffic circulation and parking, and in particular: a. The type of street serving the proposed use in relation to the amount of traffic expected to be generated. b. The adequacy, convenience, and safety of provisions for vehicular access and parking, including the location of driveway entrance and exits. c. The amount, timing, and nature of any associated truck traffic. 3. The compatibility of the proposed building or use with its environment, and in particular: a. The number of customers or users and the suitability of the resulting activity level to the surrounding uses and especially to any neighboring uses of unusual public importance such as schools, libraries, playgrounds, churches, and hospitals. b. Hours of operation. c. Adequacy of provisions for the control of any off -site effects such as noise, dust, odors, light, or glare, etc. d. Adequacy of provisions for protection of the public against any special hazards arising from the intended use. e. The proportion of total space utilized. 4. The expected duration of the proposed building, whether temporary or permanent, and the setting of time limits when appropriate. 5. The degree to which the location of the particular use in the particular location can be considered a matter of public convenience and necessity. H. Findings. The Planning Commission shall approve a conditional use permit only when it has found in writing that the proposed structure or use, subject to any conditions which it may have attached, will conform to the requirements and the intent of this Ordinance and the Petaluma General Plan, and that such use will not, under the circumstances of the particular case, constitute a nuisance or be detrimental to the public welfare of the community. These findings shall be based on substantial evidence in view of the whole record to justify the decision. I. Conditions. The Commission may impose such requirements and conditions with respect to location, construction, maintenance, operation, and duration as may be deemed necessary for the protection of adjacent properties and the public interest. J. Revocation. Upon violation of any applicable provision of this Ordinance, or, if granted subject to a condition or conditions, upon failure to comply with the condition or conditions, a certified letter shall be sent to the permittee informing the permittee of the facts constituting noncompliance and stating that the permittee has twenty (20) calendar days from the date the letter is received to comply with the provisions and conditions of the use permit. If after twenty (20) days has elapsed from the date of said notice, the permittee has failed to comply with the provisions and conditions of the use permit, the Director shall send a second certified letter to the permittee suspending the use permit and advising the permittee of the permittee's right to be heard by filing an appeal pursuant to Section 24.070 within twenty (20) days of the second notice letter. The suspension will be in effect for twenty (20) calendar days from the date of notification. and will require that the use being allowed under the use permit be suspended. If, after the twenty (20) days suspension the violation has not been remedied, or the permittee has failed to file a timely er-an appeal, filed -the use permit shall be deemed revoked and shall be null and void without further action by the City. J. Revocation. 1. Upon violation of any applicable provision of this Ordinance, or, if granted subject to a condition or conditions, upon failure to comply with the condition or conditions, a certified - - •. -. a .. a ..' .. . : ..'.� .'.. •. •. •, • ! - 4.:. -' from the date the letter is received to comply with thc provisions and conditions of the use calendar days from the date of notification and will require that thc use being allowed under the use permit be suspended. If, after the twenty (20) days suspension the violation has not been remedied, or an appgal filed, the use permit shall be revoked. 2. In any case where a conditional use permit has not becn used within one (1) year after the date of granting thereof, the permit shall be revoked unless thirty (30) days prior to thc one (1) ygar expiration date, renewal of the permit for an additional period of not more than d-(/ •. •• '.. •• .- .. . .. . .. •. .- . .. .'. • . '. as e,.. •••—•• . •- ••' • • . .' . • . '.. 24.030(J)(2) may, within twenty four months of its expiration, be approved by thc Zoning Administrator as provided by Section 24.030(M) for a single period not to exceed one (1 } ygar. No extension to this approval shall be available. 4. Abandonment. Whenever the use permitted by a use permit has been abandoned, the permit shall be deemed revoked, and shall be null and void. For purposes of this section, a. Cessation of thc use permitted by the permit for a period of one y or. b. Institution of a different use which does not include the use which is the subject of thc permit. c. Receipt of and commencement of use under a new use permit for a use or combination of uses not previously permitted. d. Cessation of diligent activity to construct the permitted use for a period of one y or or more, unleo the cessation of activity is due to factors beyond the control of the property owner. In this context, lack of adequate financing, bankruptcy or financial failure of the owner or his agent, employees, contractors, or investors will be deemed to be within the control of the owner -Upon abandonment, any affected owner may apply for a new use permit, which shall be governed by regulations in effect at the time of approval thereof, if such approval is forthcoming. K. Expiration of Permit. In any case where a cA conditional use permit shall automatically expire twelve (12) months after approval unless the permit has been exercised or unless an extension of time is approved in compliance with subsection L. The approval shall not be deemed "exercised" until the permittee has commenced the approved use on the site in compliance with the conditions of approval or an application for building permit has been submitted in compliance with the conditions of approval permit, no application for a use permit for the same or substantially the same conditional—Lice on p L. Extension of Time. Upon submittal of an application to the Community Development Department on a form prescribed for this purpose by the Department, the Director may extend the time limit established in Subsection 24.030.K for the initial life of an approved conditional use permit which has not been exercised. 1. The application filed shall include a written request for an extension of time and shall be filed at least 30 days prior to the expiration of the conditional use permit, together with the filing fee required by the adopted fee schedule. 2. The Director shall determine whether the applicant has made a good faith effort to exercise the approval. The applicant shall provide substantial evidence that circumstances beyond the control of the applicant have created an inability to commence the use or apply for a building permit within the time period in subsection K hereof. For purposes of this subsection only, such circumstances may include but are not limited to financial hardship, temporary unavailability or delay in funding, unanticipated delays in securing necessary property rights for the project, unanticipated or abnormal weather conditions sufficient to delay commencement or completion of construction or pre- construction activities. These circumstances apply only to the extension of time for commencement of use under a newly issued use permit and not to cessation of activity for purposes of abandonment of a use permit, pursuant to Section 24.030.M. The provisions of this subsection shall not apply to city public facility permits. 3. The Director may grant up to three 12 -month extensions to the expiration date of the original approval only upon the Director's determination separately for each extension that conditions of the site and in the vicinity of the project are substantially the same as when the permit or approval was originally granted and/or that any changes which have occurred do not affect the validity of the findings for the original approval, that the project remains in general conformance with General Plan and zoning ordinance requirements and that the applicant has made a good faith effort to exercise the approval. Only one 12 -month extension may be granted at a time. More than three extensions may be granted for city public facilities projects. M. Abandonment. Whenever the use permitted by a conditional use permit has been abandoned, the permit shall be deemed revoked, and shall be null and void. For purposes of this section, "abandonment" means: 1. Cessation of the use permitted by the permit for a period of one year. 2. Institution of a different use which does not include the use which is the subject of the permit. 3. Receipt of and commencement of use under a new use permit for a use or combination of uses not previously permitted. 4. Except in the case of an extension pursuant to Subsection 24.030.L, or reactivation pursuant to Subsection 24.030.S, cessation of diligent activity to construct the permitted use for a period of one year or more, once begun, unless the cessation of activity is due to factors beyond the control of the property owner. For purposes of this subsection only I-n this context, lack of adequate financing, bankruptcy or financial failure of the owner or his agent, employees, contractors, or investors will be deemed to be within the control of the owner. Upon abandonment, any affected owner may apply for a new conditional use permit, which shall be governed by regulations in effect at the time of approval thereof, if such approval is forthcoming. N. New Application. Following the denial of a use permit application or the revocation of a use permit, no application for a use permit for the same or substantially the same conditional use on the same site shall be filed within one (1) year from the date of denial or revocation of the use permit. The Zoning Administrator shall determine in his /her discretion whether the proposed use is the same or substantially the same for purposes of this subsection. 0. Use Permit to Run with Land. A use permit granted pursuant to the provisions of this Chapter shall run with the and and shall be valid for the successors in interest of the original grantee. P. Minor Use Permits. For minor use permits, the Zoning Administrator is hereby empowered to receive applications, notify pursuant to Section 24.030(F), offer the opportunity of for public hearings, and or approve subject to the same findings and conditions as required of the Planning Commission. For purposes of this section, "minor use permits" include minor exterior modifications or enlargements to existing use permits, said modifications or enlargements being inconsequential in nature and not involving a significant change in operations; minor extension of operating hours to existing use permits where the business has no appreciable outside noise and /or does not affect an abutting a residential district; new use permits where the use is of the same or more restricted nature as the previous use occupying the site; new use permits to authorize dwelling groups, in accordance with the provisions of Section 7.040; new use permits for tasting rooms pursuant to Section 8.035, new use permits to authorize the establishment of conditional uses in commercial and industrial districts where the Zoning Administrator finds that the use will be compatible with adjacent uses and is in conformance with typical development standards, e.g., parking, landscaping, fencing, etc., and applicable performance standards; new use permits to authorize existing single - household dwellings or to reestablish single - household dwellings in selected commercial districts; previously approved use permits which have expired within the past twenty - four months; minor telecommunications facilities in accordance with the provisions of Petaluma Municipal Code 14.44.20. Q. Referral to Planning Commission. The Zoning Administrator may refer to the Planning Commission for a public hearing any project and projects for which adverse impacts have been identified as the result of information received in response to public notification and in the determination of the Zoning Administrator, the identified impacts cannot be adequately controlled or mitigated. R. Appeal. As prescribed in Section 24.070. S. Reactivation. Expired or abandoned conditional use permits may be granted reactivation by the Director upon a determination that the conditions stated for granting extensions pursuant to subsection L above are met. The application for reactivation shall be in general conformance with General Plan goals and policies and zoning ordinance requirements in effect at the time of application for reactivation. Any reactivated project must comply with said requirements and with current building codes. The property owner /applicant must request reactivation by July 31, 2012 by submittal of an application and payment of application fee, which shall be the same as the fee for an extension of time. Applications for reactivation submitted later than July 31, 2012 shall not be accepted. This subsection shall expire after July 31, 2012, and shall be of no force or effect thereafter, unless otherwise amended. Section 11. Except as amended herein, the City of Petaluma Implementing Zoning Ordinance remains in full force and effect. Section 12. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 13. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 14. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. INTRODUCED and order posted /published this day of , 2011. ADOPTED this day of 2011 by the following vote: AYES: NOES: ABSENT: ABSTAIN: David Glass, Mayor ATTEST: APPROVED AS TO FORM: Claire Cooper, City Clerk Eric Danly, City Attorney 1.b Attachment 2 RESOLUTION NO. 2011 -04 CITY OF PETALUMA PLANNING COMMISSION RECOMMENDING THE CITY COUNCIL AMEND THE TEXT OF CHAPTERS 4, 7, 8, AND 24 OF THE CITY OF PETALUMA IMPLEMENTING ZONING ORDINANCE TO PROMOTE ECONOMIC DEVELOPMENT WHEREAS, Section 25.010 of the City of Petaluma Implementing Zoning Ordinance provides in pertinent part that no amendment shall be made to the Implementing Zoning Ordinance unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan; and, WHEREAS, on November 15, 2010 the Petaluma City Council accepted the Petaluma Economic Development Strategy which identifies filling nonresidential vacancies and expanding tourism among other strategies as short -term, high - priority economic development initiatives for improving Petaluma's economic climate; and, WHEREAS, staff has proposed a series of text amendments to Chapter 4, Section 4.030; Chapter 7, Section 7.100, Chapter 8, Section 8.030; and Chapter 24 Section 24.010 and 24.030 of the Implementing Zoning Ordinance aimed at reducing barriers to filling existing vacancies and extending the life of certain development approvals; and, WHEREAS, a public notice of the October 11, 2011 public hearing before the Planning Commission was published in the Argus- Courier on September 29, 2011; and, WHEREAS, on October 11, 2011, the Planning Commission held a duly- noticed public hearing in accordance with the City of Petaluma Implementing Zoning Ordinance, Section 24.010. NOW, THEREFORE BE IT RESOLVED that the Planning Commission hereby finds that the proposed amendments contained in this Resolution to the City's Implementing Zoning Ordinance, Chapter 4, Section 4.030; Chapter 7, Section 7.100, Chapter 8, Section 8.030; and Chapter 24 Sections 24.010 and 24.030, are in general conformity with the Petaluma General Plan 2025, in that these changes may have the effect of reducing vacancies, encouraging new development, promoting job growth, and assisting in the preservation of historic structures, thereby contributing to the City of Petaluma's economic base, yielding net fiscal benefits and contributing to a economically vital and diverse community; and, BE IT FURTHER RESOLVED by the Planning Commission that the following proposed amendments to the Implementing Zoning Ordinance, Chapter 4, Section 4.030; Chapter 7, Section 7.100, Chapter 8, Section 8.030; and Chapter 24 Sections 24.010 and 24.030, are hereby referred to the Petaluma City Council for consideration and findings in accordance with Section 25.010 of the Implementing Zoning Ordinance. Planning Commission Resolution No. 2011-04 Section 4.030 - Allowable Land Uses and Permit Requirements - Tables 4.1 through 4.5 Amend Footnote 6 as follows: Note: (6) Use ollowed -enly permitted on an upper floor or behind ground floor street fronting use unless otherwise approved with a CUP. Section 4.030 - Allowable Land Uses and Permit Requirements - Tables 4.1 and 4.2 Amend the Lodging- Bed & Breakfast Inn land use type as follows: Natural and Rural Zones 'F I ? - .'.�, fir n e "-.6 u r w : 3, y C. 1 ":� T � �, ' 1 . , s , , , „'i; :s « P (41 6 ) .,Permitte Use `3 , „ � , , ,tt, - y i in dit i , al ri rmit TABLE G a 1,� `' y , OUP , Cdn Use, P,etRequired ill i ,? �'",s�'i ,. i ,, ,, ^ Permit Re uirement�in S ecific Use. Allowed land Uses and Per ements for N atural - , ; Regulations , , a ,. it Re uir andRural Zones a ,, -,. ; a i4 i,, t )fi , .� `'`' ,des r r , �r Y �� "x� � ' `�� � �,� Accessory�Use 1 � � „ � Y m ' �� fi� ,,F", A 110 a ' t ' � Use Not A w - k,4 . r N-> y y #^ to ' 6¢, 1 A ' .' t , ' , Perrnit RB uir .t.- ' ' i y ray.. ��� � �' ���� � ����'"��> � �� b'� ���° n *zone 4-. � , � S pecr f lc JU se � _ x- t , „ .` i , l ,, . t , : � 7 , OSP A R1. i vi i r °,,. LAND 1, .,.. ,�'� . , ., $... ReBulatlor►s � LODGING Lodging - Bed & Breakfast Inn (B &B) — — — i CUP Section 7.100 Residential Zones ' K $ , -; X42 1,,t ,`"r t ,`' y ,' r P(a1 ' Pe ra tted Use �, � ,, .4 "� ' g T N t. ,. 1 Nf i4 +� i 1 �F 3 _ R. - b 't FM 4 t ' Tr ABLE 4 � ,'� l ' � ,, , , ` * , � , i � , C onditional Use Permit Require s `" ?' '_ 4 " , 4 � " , r � T r y f Permit Re uirement in S ecific s 4'7 � 1 o w ' e , 3 � . e La se s ' R es idential a R °u a ions k , ' ' . ses x r ' ° A ocesso6,y � , d' -- .,, ,-. s, . " ¢ . A ,3 ` ,.. , a - , '. a, . * . U s No owed , , -t . u + ' ".. a „:„ t t .' ri'7'. " , r , , :: 3 f Zgn k4 S ■ eci Use -:, AND USE ,0,1,11 (r1,):' :: : „, - 1 , F r it. ;.; t ' t f p R24,,'r *gA.,',' MA ,V %'Regulations ., LODGING Lodging - Bed & breakfast inn (B &B) CUP CUP — — Section 7.100 Chapter 7 - Standards for Specific Land Uses Add a new section as follows: 7.100 Bed & Breakfast Inns This Section provides requirements and conditions for the establishment and operation of a bed and breakfast inn (B &B) within a residential zoning district. A. Purpose. The intent of this section and the standards outlined below are to assist in preservation and adaptive reuse of the city's historic resources, to serve visitors of Petaluma, to ensure that bed and breakfast inns are compatible with the residential area and to preserve the residential character of the neighborhoods in which they are located. Planning Commission Resolution No. 2011 -04 -q. B. Permit Required. No bed and breakfast inn shall be established within a residential zoning district where otherwise allowed as outlined in Tables 4.1 and 4.2 without application for and approval of a Conditional Use Permit in compliance with Section 24.030. C. Findings. In addition to standard use permit findings in Chapter 24.030, the decision making body shall make the following findings prior to approval of a use permit for the establishment of a bed and breakfast inn in a residential zoning district: 1. The establishment of the bed and breakfast inn is consistent with General Plan policies regarding historic preservation; 2. The bed and breakfast inn use will not be detrimental to the historic or architectural character of the existing building(s); and 3. The bed and breakfast inn use is compatible with and will not be detrimental to the character of the neighborhood and surrounding land uses. D. Requirements and Conditions. The following requirements and conditions apply to all bed and breakfast establishments within residential zoning districts: 1. Adaptive Reuse. Establishment of bed and breakfast inns shall be limited to the adaptive reuse or conversion of an historic or architecturally unique residential structure and shall not require significant exterior modifications that would diminish the uniqueness or significance of the residential structure or surrounding neighborhood. 2. Concentration. When a new bed and breakfast inn is proposed within 300 feet of another bed and breakfast inn, the decision - making body shall make an additional finding prior to approval of the use that the new bed and breakfast inn does not harm the character of adjacent residential properties. In considering the findings required by this subsection and subsection 7.100.0 above, the decision maker shall also consider the number of existing and proposed bed and breakfast inns within 300 feet of the proposed use in determining whether the proposed use is compatible with and not detrimental to the character of the neighborhood and surrounding land uses and /or not harmful to the character and /or livability of adjacent residential properties. 3. Modifications. New structures or additions to the existing structure shall be designed to maintain the established residential character and scale of the individual property and the surrounding neighborhood. 4. Limit on Maximum Number of Guest Rooms. The number of guest rooms permitted shall be determined in the Conditional Use Permit process based on the size of the existing building, grounds and site; the relationship of the site to the character, size and scale of surrounding neighborhood buildings; and visitor access and parking. In general, the number of quest rooms should not exceed 7. 5. On -Site Manager. An on -site manger shall maintain residence on the subject site. 6. Length of Stay. Visitor occupancy shall be limited to a maximum of twenty -nine consecutive days. Planning Commission Resolution No. 2011-04 7. Food Service. Food service shall be limited to registered overnight guests only and shall not include an independent restaurant. Cooking facilities in individual rental guestrooms are prohibited. 8. Events. Amplified music, lawn parties, outdoor weddings, and other similar activities shall not occur on site unless specifically allowed through the approved Conditional Use Permit. All such ancillary uses shall comply with the requirements of the Performance Standards. 9. Signs. One on -site sign shall be allowed on each street frontage. Said signs shall be indirectly illuminated and each sign shall not exceed two sauare feet in area consistent with Section 20.110(B) (4)., 10. Parking. On -site parking shall be provided as required in Table 11.1 for Bed and Breakfast Inns. 1 1. Transient Occupancy Tax. Bed and breakfast rentals shall be subject to the City's transient occupancy tax. 8.030 - Zones for Alcoholic Beverage Establishments Amend as follows: Alcoholic beverage establishments are conditional uses only in the commercial and mixed use zones, Cl, C2, MU 1 A, MU 1 B, and MU2 and in certain P.U.D.'s where appropriately designated as identified by the Zoning Ordinance and General Plan. No such establishment shall bo per- mittad in any-area outside of ono of these commercial and mixed use zonos A tasting room which qualifies as an ancillary use pursuant to Section 8.035 may also be allowed in the industrial and business park zones, I and BP. 8.035 - Tasting Rooms Tasting rooms associated with an alcohol production facility may be considered ancillary to the primary use and approved by the Zoning Administrator as provided by Section 24.030(M), upon compliance with all of the following criteria: A. The tasting room shall be located on the premises of the alcohol production facility and operations shall be ancillary to the primary use; B. The tasting room shall not operate as a standalone bar or tavern; C. The tasting room shall only serve andLor sell those beverages produced by the company on site; and D. The tasting room shall comply with all applicable ABC and State reclulations for wine, beer, and distilled spirit manufacturers and tasting rooms. E. In addition to satisfying all of the above criteria, prior to issuance of a minor conditional use permit hereunder, the Zoning Administrator must determine that the minor conditional use permit also meets the general welfare standard set forth as a required finding for CUPS in Section 24.030.H. 24.010 - Site Plan and Architectural Review Amend as follows: Planning Commission Resolution No. 2011 -04 I. Expiration of Permit. _ _ _ _ et: •_ - _ = o e_":- _ _ •• • _ _ _ _ - - --e _ _ pr-eject or, if no permit is necessary, if the approved use is not commenced Site Plan and Architectural Review approval shall automatically expire within twelve (12) months of silo approval unless the permit has been exercised or , architectural approval shall bocomo void, unless e • • _ - - - •_ • • _ _ _ : o _ _ _ • eee e -- - •- 9. e - - -' ee e - - -- • - - - e - date an extension of time is approved in compliance with subsection J. The approval shall not be deemed "exercised" until the permittee has substantially commenced the approved use on the site in compliance with the conditions of approval or an application for building permit has been submitted in compliance with the conditions of approval. The approval shall remain valid after it has been exercised as long as a building permit remains active or a final building inspection or certificate of occupancy has been granted. Upon expiration of Site Plan and Architectural Review approval, no further work shall be done on the site until a new approval is first obtained. J. Extension of Time. Upon submittal of an application to the Community Development Department on a form prescribed for this purpose by the Department, the Director may extend the time limit established in subsection A for Site Plan and Architectural Review approval. 1. The application filed shall include a written request for an extension of time and shall be filed at least 30 days prior to the expiration of the Site Plan and Architectural Review approval, together with the filing fee required by the adopted Fee Schedule. 2. The Director shall determine whether the applicant has made a good faith effort to exercise the approval. The applicant shall establish by substantial evidence, that circumstances beyond the control of the applicant have created an inability to commence the use or apply for a building permit within the time period in subsection A hereof. For purposes of this subsection only, such circumstances may include but are not limited to financial hardship, temporary delay or unavailability of funding, unanticipated delays in securing necessary property rights for the protect, unanticipated or abnormal weather conditions sufficient to delay commencement or completion of construction or pre - construction activities. 3. The Director may grant up to three, 12 -month extensions to the expiration date of the original approval only upon the Director's determination that conditions of the site and in the vicinity of the project are substantially the same as when the permit or approval was originally granted and /or that any changes which have occurred do not affect the validity of the findings for the original approval, that the project is still in general conformance with General Plan and zoning ordinance requirements and that the applicant has made a good faith effort to exercise the approval. Only one 12 -month extension may be granted at a time. 24.030 - Conditional Use Permits Amend as follows: E. Public Hearing. The Planning Commission shall hold at least one (1) public hearing on each application for a conditional use permit except for minor conditional use permits as provided in subsection P hereof. J. Revocation. Upon violation of any applicable provision of this Ordinance, or, if granted subject to a condition or conditions, upon failure to comply with the condition or conditions, a certified letter shall be sent to the permittee informing the permittee of the facts constituting noncompliance and stating that the permittee has twenty (20) calendar days from the date the letter is received to comply with the provisions and conditions of the use Planning Commission Resolution No. 2011 -04 „ permit. If after twenty (20) days has elapsed from the date of said notice, the permittee has failed to comply with the provisions and conditions of the use permit, the Director shall send a certified letter to the permittee suspending the use permit and advising the permittee of the permittee's right to be heard by filing an appeal pursuant to Section 24.070 within twenty (20) days of the second notice letter. The suspension will be in effect for twenty (20) calendar days from the date of notification_ e •_ • _ _ - •_ _ _ - _ _ _ _ _ under tho use permit be suspended. If, after the twenty (20) days suspension the violation has not been remedied, and the permittee has failed to file a timely erg appeal, filed the use permit shall be deemed revoked and shall be null and void without further action by the City. K. Expiration of Permit. In any case where a cA Conditional Uuse Ppermit shall automatically expire within twelve (12) months of approval unless the permit has been exercised or unless an extension of time is approved in compliance with subsection L. The approval shall not be deemed "exercised" until the permittee has substantially commenced the approved use on the site in compliance with the conditions of approval or an application for building permit has been submitted in compliance with the conditions of approval. • • - ' - - - - - •: - = : e = - e - e e - - e e -- "- - Administrator ( Diroctor). If aftor tho one (1) yoar extension -period has expire , use permit has not boon usod, then without furthor action the pormit shall be rovoked and y Section 21.030(M) for a single period not to exceed ono (1) L. Extension of Time. Upon submittal of an application to the Community Development Department on a form prescribed for this purpose by the Department, the Director may extend the time limit established in Subsection K for the initial life of an approved Conditional Use Permit which has not been exercised. 1. The application filed shall include a written request for an extension of time and shall be filed at least 30 days prior to the expiration of the Conditional Use Permit, together with the filing fee required by the adopted Fee Schedule. 2. The Director shall determine whether the applicant has made a good faith effort to exercise the approval. The applicant shall establish, with substantial evidence, that circumstances beyond the control of the applicant have created an inability to commence the use or apply for a building permit within the time period in subsection A hereof. For purposes of this subsection only, such circumstances may include but are not limited to financial hardship, temporary unavailability or delay in funding, unanticipated delays in securing necessary property rights for the project, unanticipated or abnormal weather conditions sufficient to delay commencement or completion of construction or pre- construction activities. These circumstances apply only to the extension of time for commencement of use under a newly issued use permit and not to cessation of activity for purposes of abandonment of a use permit, pursuant to Section 24.010.J.4. hereof. 3. The Director may grant up to three, 12 -month extensions to the expiration date of the original approval only upon the Director's determination that conditions of the site and in the vicinity of the project are substantially the same as when the permit or approval was originally granted, and /or that any changes which have occurred do not affect the validity of the findings for the original approval, that the proiect is still Planning Commission Resolution No. 2011-04 in general conformance with General Plan and zoning ordinance reauirements, and that the applicant has made a good faith effort to exercise the approval. Only one 12 -month extension may be granted at a time. M. Abandonment. Whenever the use permitted by a Conditional Uuse Ppermit has been abandoned, the permit shall be deemed revoked, and shall be null and void. For purposes of this section, "abandonment" means: 1. Cessation of the use permitted by the permit for a period of one year. 2. Institution of a different use which does not include the use which is the subject of the permit. a Receipt of and commencement of use under a new use permit for a use or combination of uses not previously permitted. 4. Cessation of diligent activity to construct the permitted use for a period of one year or more, once begun, unless the cessation of activity is due to factors beyond the control of the property owner. For purposes of this subsection only in this context, lack of adequate financing, bankruptcy or financial failure of the owner or his agent, employees, contractors, or investors will be deemed to be within the control of the owner. Upon abandonment, any affected owner may apply for a new Conditional Uuse Ppermit, which shall be governed by regulations in effect at the time of approval thereof, if such approval is forthcoming. N. New Application. Following the denial of a use permit application or the revocation of a use permit, no application for a use permit for the same or substantially the same conditional use on the same site shall be filed within one (1) year from the date of denial or revocation of the use permit. The Zoning Administrator shall determine in his /her discretion whether the proposed use is the same or substantially the same for purposes of this subsection. O. Use Permit to Run with Land. A use permit granted pursuant to the provisions of this Chapter shall run with the land and shall be valid for the successors in interest of the original grantee. P. Minor Use Permits. For minor use permits, the Zoning Administrator is hereby empowered to receive applications, notify pursuant to Section 24.030(F), offer the opportunity of for public hearings, and or approve subject to the same findings and conditions as required of the Planning Commission. For purposes of this section, "minor use permits" include minor exterior modifications or enlargements to existing use permits, said modifications or enlargements being inconsequential in nature and not involving a significant change in operations; minor extension of operating hours to existing use permits where the business has no appreciable outside noise and /or does not affect an abutting e residential district; new use permits where the use is of the same or more restricted nature as the previous use occupying the site; new use permits to authorize dwelling groups, in accordance with the provisions of Section 7.040; new use permits for tasting rooms pursuant to Section 8.035, new use permits to authorize the establishment of conditional uses in commercial and industrial districts where the Zoning Administrator finds that the use will be compatible with adjacent uses and is in conformance with typical development standards, e.g., parking, landscaping, fencing, etc., and applicable performance standards; new use permits to authorize existing single - household dwellings or to reestablish single - household dwellings in selected commercial districts; previously approved use permits which have expired within the past twenty -four months; minor telecommunications facilities in accordance with the provisions of Petaluma Municipal Code 14.44.20. Planning Commission Resolution No. 2011 -04 15 Q. Referral to Planning Commission. The Zoning Administrator may refer to the Planning Commission for a public hearing any project and projects for which adverse impacts have been identified as the result of information received in response to public notification and in the determination of the Zoning Administrator, the identified impacts cannot be adequately controlled or mitigated. R. Appeal. As prescribed in Section 24.070. BE IT FURTHER RESOLVED that the Planning Commission recommends staff and legal review of providing a longer or unlimited extension period and /or elimination of the good cause requirement for extensions of entitlements for public facilities in Section 24.010 and Section 24.030, for potential consideration by the City Council; and BE IT FURTHER RESOLVED that the Planning Commission recommends staff further explore retroactive application of the entitlement extension provisions in the proposed changes and develop a method by which this could be implemented prior to the City Council hearing; and BE IT FURTHER RESOLVED that the Planning Commission recommends that Staff develop and the City Council adopt a further change to the IZO, increasing the noticing requirement for Bed and Breakfast Inn proposals to include mailed notice to properties within 1,000 feet of the proposed use. ADOPTED this 11 day of October 2011, by the following vote: Committee Member < Aye ''. No X,,A'bsent Abstain Abercrombie X Albertson X 2nd Vice Chair Elias X Herries X Chair Johansen X Vice Chair Pierre X Wolpert X Curtis Johansen, Chair ATTEST: APPROVED AS TO FORM: � y /4 other Hines, Co Secretary Leslie Thomsen, Assistant City Attorney Planning Commission Resolulion No. 2011 -04 54' Attachment 3 CITY OF PETALUMA STAFF REPORT C'onntanly Development Department, Planning Division, 11 English ,SYrerf, Petahomo, C/1 94952 (7117) 778-4301 lux (707i 778 pelaltinurpfuniting wei.petalurntr.mitt „ s DATE: October 11.2011 AGENDA ITEM NO. 7 . 10: Namur Commission PREPARED BY Scott Duivcn, Senior Planner-. Ileather Hines, Deputy Planning Manager 111//); Ingrid Alverde, Economic Development Manager REVIEWED BY: Geoff Bradley, Planning Manager SUBJECT: Text Amendments to thc City of Petaluma Implementing Zoning Ordinance Chapter's 4. 8, and 24 RECOMMENDATION Staff recommends that the Planning Commission adopt a resolution recommending to the City Council approval of amendments to the text of the following sections of the Implementing Zoning Ordinance to stimulate economic development. • Chapter 4 - Zone Districts and Allowable Land Uses, Section 4.030 - Allowable Land Uses and Permit Requirements - Tables 4.1 through 4.5. • Chapter 8 Alcoholic Beverage Establishment, Section 8.030 - Zones for Alcoholic Beverage Establishments • Chapter 24 - Administrative Procedures, Section 24.010 Site Plan and Architectural Review • Chapter 24 - Administrative Procedures, Section 24.030 Conditional Use Permits The proposed Resolution is included as Attachment A. pRoJEc SUMMARY Project: The proposed text amendments to City of Petaluma Implementing Zoning Ordinance (IZO) are not related to a specific project, but are in response to various development inquiries where the 1Z0 is unclear or limits development in a way that may be unintended or that is contributing to building vacancies. The proposed amendments affect Petaluma's Business Park, Commercial, Industrial, Mixed Use and Residential zoning districts to facilitate commercial and industrial absorption in Petaluma and to extend the life of certain approved development permits. Additionally, the proposed text amendments include ininor cleanup and clarifying text to the amended Chapters. PROJECT DESCRIPTION I DESCRIPTION This is a City sponsored request to amend the text of the City of Petaluma Implementing Zoning Ordinance (IZO) to conditionally permit some non - retail uses at ground floor locations where they are currently limited to upper floor or behind ground floor street fronting uses, conditionally permit bed and breakfast establishments in certain residential zones, permit tasting rooms as ancillary to alcohol production facilities, and extend the life of certain approved development permits. To accommodate this request, minor text modifications are proposed to Chapters 4, 8, and 24 of the IZO as outlined below. BACKGROUND The City completed an update of its General Plan in 2008. The General Plan 2025 establishes goals for economic development, including continued growth in retail, office, and industrial development. At the same time the Implementing Zoning Ordinance (IZO) was adopted to provide consistency with the newly adopted General Plan by establishing a zoning map, development standards, and allowable uses consistent with the General Plan. At the time the IZO was adopted, the City had in place a Development Code Advisory Committee (DCAC), which was reviewing the need for zoning changes to achieve consistency with the General Plan 2025 as part of a comprehensive development code update. Due to the recession and subsequent decrease in staffing and services in response to budget shortfalls, that work was not completed and the DCAC was disbanded. The Economic Development Strategy, accepted by the City Council in November 2010, notes that the national economic recession has resulted in significant nonresidential vacancies, declining property values, and decreased tax revenues. The Economic Development Strategy identifies filling nonresidential vacancies and expanding tourism among other strategies as short-term, high- priority economic development initiatives for improving Petaluma's economic climate. The strategy recommends that staff review opportunities to provide additional flexibility in Petaluma's zoning code to make it easier to lease, sell or reuse vacant nonresidential buildings. Staff has reviewed the code and previous development inquiries to identify areas where Petaluma's zoning code could be amended or clarified to address current development and occupancy demands. The recommended amendments will make it easier to reuse non - residential buildings in Petaluma; preserve large historic homes by allowing bed and breakfast lodging opportunities; allow tasting rooms to accompany beverage processing establishments; and allow for the extension of certain approved permits. Street Fronting Uses in Non - Residential Zones Petaluma's Mixed Use, Commercial, Business Park, and Industrial zones each limit certain uses to upper floors or behind ground floor street fronting uses in an effort to activate the street front area for pedestrians. The uses affected include artisan manufacturing, catering, media production, printing, indoor commercial recreation, specialized schools, residential care facilities, live /work spaces, certain medical and office uses, and child care centers, depending on the zone. While this policy has been successful in Petaluma's core downtown areas, staff has identified various instances where this requirement is infeasible due to the orientation and/or scale of the building or due to a lack of demand for retail in particular area. Buildings outside of the downtown core, not suited to retail fronting uses have remained vacant for years. As one example, a vacant building originally developed as a freestanding bank or office type use in the MU2 zoning district is required to contain retail uses on the first floor street frontages. Non - retail uses have expressed interest in the building tbY but cannot move forward due to this requirement. The building was not built for retail use and would require significant alterations or demolition in order to accommodate a retail use. As such it remains vacant. In other instances, single-story buildings are limited by this requirement if it is not feasible to locate a non-retail use behind a ground floor street fronting permitted use because there is no seeond story, limiting reuse and perpetuating vacancies. Staff recommends modifying footnote #6 found in Tables 4.1, 4.2, 4.3, 4.4, and 4.5 (Chapter 4 of the IZO) to allow staff to review these projects on a case by ease basis and make allowances for buildings where retail frontage or other required frontage uses are infeasible due to a lack of retail deinand, the character of the surrounding neighborhood or limitations of existing buildings. A. conditional use permit (CUP) would allow staff and the Planning Commission to consider the siting. of the building or use; traffic circulation and parking; the compatibility of the proposed building or use with its site and surrounding neighborhood; and the degree to which the location of the particular use as proposed in the particular location serves the public convenience and necessity. Staff would take care to limit such allowances to areas that are peripheral to downtown, avoiding Kentucky Street and other downtown core areas. To accommodate this change, the footnote at the end of Tables 4.1 tlwu 4.5 in Section 4,030 would he amended as follows: Section 4.030 — Allowable Land Uses and Permit Requirements Hole (6) Use allowed oply permittO on an upper floor of behind ground floor street fronting use unless otherwise approved with a CUP Bed and Breakfasts in Residential Zones Petaluma is home to many historic homes, many of which are large estate homes. As the homes lose value during this economic recession, staff is concerned that some of these hotnes may not be preserved because doing so would be too expensive for prospective owners. The cost of maintaining large historic homes as single-family homes is often prohibitive and the modern family demographic is not always conducive to the continued use of these larges homes as single-family homes. One way to preserve an old home is to convert it to a bed and breakfast. Staff has received several liquifies regarding bed and breakfasts in large homes within residential neighborhoods surrounding Petaluma's downtown core. Because Petaluma's code does not permit bed and breakfasts in any zone other than MU2, staff has been unable to formally review these inquiries as potential projects. Staff proposes to conditionally permit bed and breakfasts in the R1, R2, and R3 zoning districts. Use of a historic home as a bed and breakfast typically requires minimal alterations to the exterior of the ham, minimizing changes to the historic character of the individual house and the surrounding neighborhood. Modifications typically do not prohibit returning the building to its original single-family use in the future. The required Conditional Use Permit would allow each proposal to be evaluated in order to preserve neighborhood character by regulating operational impacts such as parking, concentration, deliveries, outdoor activities, special events, amplified music, etc. In addition to maintaining property values and preserving historic homes, bed and breakfasts would contribute to Petulurna's transient occupancy tux revenues and help meet the Economic Development Strategy's goal of expanding tourism. A search for bed and breakfasts in Petaluma turned up no results for bed and breakfasts operating in Petaluma. To implement this change, Section 4.030, Tables 4.1 and 4.2 are proposed to be amended as follows: vt‘ Section 4.030 — Allowable Land Uses and Permit Requirements Natural and Rural Zones P(16) Permitted Use TABLE 4.1 CUP Conditional Use Permit Required Permit Requirement in Specific Use Allowed Land Uses and Permit Requirements for Natural Regulations and Rural Zones A Accessory Use — Use Not Allowed Permit Required by Zone Specific Use LAND USE TYPE il\ OSP I AG I RR R1 Regulations LODGING Ludiiri Ui & Breakfast Inn (B&B) — Residential Zones P(16) Permitted Use TABLE 4.2 CUP Conditional Use Permit Required Permit Requirement in Specific Use Allowed Land Uses and Permit Requirements for Residential Regulations Uses A Accessory Use — Use Not Allowed Permit Required by Zone Specific Use LAND USE TYPE (1) R2 I R3 R41 R5 Regulations LODGING Lodging - Bed & breakfast Inn IBM C1—.117)—F- L- 1 Tasting Rooms The Implementing Zoning Ordinance does not allow alcoholic beverage establishments in Business Park or Industrial Zones. However, beverage manufacturing such as wineries, breweries, and distilleries are generally located within the Business Park and Industrial Zones. This limits wineries, breweries and distilleries from presenting their products to clientele. Petaluma's Economic Development Strategy specifically targets Petaluma's growing food and beverage processing industry as an industry that should be supported and encouraged to grow in Petaluma. Food and beverage processing businesses not only create jobs themselves, they stimulate dozens of spin off jobs and related spending from employees of suppliers and vendors throughout the City and the County. Staff recommends amending Chapter 8 of the IZO to allow tasting rooms regardless of the zoning district when the tasting is ancillary to the primary business; located on the premises of the alcohol production facility; does not operate as a standalone bar or tavern; only serves andior sells those bevc produced by the company on site; and the tasting room complies with all applicable ABC regulations for wine, beer, and distilled spirit manufacturers. To implement this change Section 8.030 of the IZO is proposed to be amended as follows: 4 8.030- Zones for Alcoholic Beverage Establishments /kph* beverage establishments are conditional uses only in the commercial and mixed use zones, C1, C2, MU1A, MU1B, and MU2 and in certain P.U.D. s where appropriately designated as identified by the Zoning Ordinance and General Plan No such establishment shaN be permitted in any area outside of one of these commercial and mixed use zones exce I as allowed fur to bn• rooms • rsuant to Section 8.035. 8.035- Tasting Rooms 7 astinc moms associated with an alcLohol production facility may be considered ancillary to then:man, use and approved b Ihe emin. ,Administratoi as provided tly Section 24 030avti upon oompliance with all of the folidwInq xtena A The tasting room shall be located on the premises of the alcobol_production facility and operations shall be ancillary to the_primariuse B. The tasting room shall not operate as a standalone bar or tavern; C. The Inslinu room shall only serve and/er sell those beverages produced by the company on Site; and D. lbe tasting worn shall comply with all mlicable ABC and State reaulations for wine, beer and drshiled spirt manufacture's and lasting roorns E In addition to satisfvinq all of the above criteria prior to issuance ol a minor conditional use permit hereunder, the Zoning Administrator must determine Mal the mirror conditional use permit also meets the ge...nerai welfare standard set forth as a rewired findinafor CUPs in Section 24 030 H Extensions of Time The current ILO is restrictive on time extensions for Site Plan and .Architectural Review (SPAR) and Conditional Use permits, particularly given the current economic: times. SPAR approvals are valid for twelve (12) months. If an appropriate development permit has not been issued for a project or if the approved use is not commenced within a year of SPAR approval, the site plan and architectural approval expires, unless a six (6) month extension is requested and approved at least thirty (30) days prior to the expiration date. The maximum life of a SPAR approval is limited to eighteen (18) months. If a Conditional Use Permit has not been used within one (1) year of approval it will expire unless a one (1) year extension is requested and approved at least thirty (30) days prior to the expiration date. The maximum life of a CUP approval is two (2) years unless the use is commenced. Staff has heard from many applicants that the time that initial approvals are valid is too short given the challenges of obtaining pmject tinancing in the current economic climate, Staff proposes language under the SI'AR and CUP sections ;allowing for three (3), twelve (12) month extensions This could extend these approvals for a maximum life of four (4) years. To implement these changes Sections 24.101 and 24.030 of the IZO are proposed to be amended as follows: 24.01C - Site Platt and Architectural Review I Expiration of Permit. llan-app permit has not been issued for a project or.--if oeire44s Reces,sary,_it_ihe approved ose 4 o. Plan and AiOutectural Review approval shall automatically expire within twelve (12) months of site-plan and-architectufalapproval unless the permit has been exercised , lbe site plan and architeptigal-appfaval-snalt-become--void, unless a six month extension is requested and-approveci-by the Ogentor ai least thirty-00) (lays prior to the twetve--(424ith-e4grat+ee-date .n e t of time is a • 'roved in compliance with subsection J. The approval shall not be deemed "exercised" until the permrttee has substantially commenced the :iiproved use on the site in compliance with the conditions of approval Of an ,appkation ter building rrriit has been submitted m compliance with the conditions of a ovai. The a' ov.: shag remain vand after it as been exercised as long as a building permit remains active or a final building inspection or certificate of o,..-cupancy $C\ has been •ranted. Li• en expiration of Site Plan and Architecture Review apron', no further work shall be done or he site until a new approval is first obtained. Extension of Time Upon submittal Of aololication to the Community Development Department on a Item I rescribed for this rose b the De -rtment the Director may extene the time limit established in subsection A to Site Plan and Architectural Review approval 1. The application filed shall include a written request for an extension of iime and shall be filed at least 30 nays prior to he expiration of the Site Plan and Architectural Review approval, together with the filing fee required by aciqted Fee Schedule. 2 The Director shall deleemine whether the applicant has made a good faith effort to exercise the arieroval The applicant shall establish by substantial evidence that ercurn an •S • d he control of the applicant have created an inability to commence the use or apply for a biiildieglermit within the time period M subsection A hereof For purposes of this subsection on such orounistances ma include but re no! limited to financial ilardsh unavailability of funding, enan,p -I in securing necessary properly rights IV! the VOiec.l. unanticipated or abnormal weather conditions sufficient to delay commencement or completion of constedion or pre-construction activities. 3 The Director ma *rent u to three 12-month extensions to the ex ration date of the original approval °Ay upon the Director's determination that conditions of the site and in he vicinity of the project are substantially the same as when the petrel or approval was originally granted andlor Opt any changes which have occurred do not affee the vali•it of the ndin.s for the ori•inal . oval that the project is still eneral conformance with General Plan and zoning ordinance requirements and that the applicant has made a good !pith effoit to exercise the4prova1 . Diity_one 12enonth extension ma be 4, ragted al a tene 24.030 - Conditional Use Permits E. Public Hearing. The Planning Commission shall hold at least one (1) public hearing ori each application for a conditional use permit except lour minor conditional use permits as provided in subsection P hereof J. Revocation. Upon violation of any applicable provision of this Ordinance, or, if granted subject to a condition or conditions, upon failure to comply with the condition or conditions, a certified letter shall be sent to the permittee informing lien of he facts constituting rioncompliaece and stating that he has twenty (20) calendar clays from the date the letter is received to comply with the provisions and conditions of the use permit If after twenty (20) days has elapsed from w date 01 saki notice, the permittee has failed to comply with the provisions and conditions of the use permit, the Director shall send a certified letter to the permittee suspending the use permit and advising the permittee of his right to be heard by filing an apkealpursuant to Section 24 070 within twenty (20) days ot the second notice letter. The suspension will be in effect for twenty (20) calendar days from the date of noli ficaliok_and will require that the ese tieing -allowed eedeiellie 44'01 4.* eusperided, If, after the twenty (20) days suspension the violation has not been remedied, and the permittee nos Ic file a Iimetyor an appeal, Weil the use permit shall be deemed revoked arid shall be null and void without further action bythe K. Expiration of Permit. n any ease *here--a GA Conditional Uuse Prermit shall auternatically expire within twelve! months of approval unless the permit has been exercises ar uniess an extension of lime is approved in compliance with subsection L. The approval shall not be deemed 'exercised" until It •rmittee has substantial! commenced the approved use on the site in compliance with Ihe conditions of approval or an mplication for buildiegperroil has been submitted in corn liance with he conditions of approval hasereAeheeleeised-wiltile one } year Air-the-date-4 graating thereof, the permit shall be revokeo owes& 041fly..{30}-€14ye-priv to the °fie (1) year-expeatioredateT-renawai of -the- r rant -foi edditiorial-periertofeeM4eoreethan orie-e14 year shal; he approved -ey the -Zeriing-Adinicositatiar (Director): If after the one (1) year extension period has eereeed permit has not beee-esede-then withoutfurther aolion -the-perroil shell he levokee-aleeteeeiue ndVQid 1.k) A previously approved conditional use permit which-has expired pursuant to Section 24 030(02) may within twenty- four months of ils expiration, he approved by the Zoning Adnimietratoi-as-previded by Section 24.A3004-lova single pewit not ro-exceedorie-{-1}-year No extension to this-approvat ena;I be avatahle L. Extension of Time. Upon submittal of an application to the Communal : Develosment Deoartment on a form prescribed for this purpose by the Department,. he Director may extend the time limit estabished in Subsection K for the initial life of an approved Conditional Use Permit which has not been exercised, 1 The ap_plication filed shall include a written uest for an extension of lim: and shall be filed at least 30 da s prior to the expir:on of the Conditional Use Permit,logether with the filing fee required by the adopted Fee Schedule, 2 The Neckar shall determine whether the applicant has made a 000d faith effort to exercise the approval The applicant shall establish, with substantial evidence that vcrimstances beyond the control of the ap_plicant have created an inability to commence the use Ur a a 1 for a buldinc permit within the time period in subsKtion A hereof or lure ses of this subsection only, such circumstances ma incIude but are not limited to financial hardship temporary unavailability or delay in funoinc unanticipated delays in securing necessarypro_perty rights for the • o ect unanIica d et Amorrnal weather conditions sufficient to dela commencement or completion of construction or kre activities These circumstances applyorty to the extension ot time for commencement of use under a newly issued use 2ermil and not to cessation of activity for purposes of abandonment of a use permit, pursuant to lion 4 010.J,4 hereof. 3 The Director may grant up to three, 12-rnonth extensions lo frie exprratton date of the orionai approval only upon the arector s determnation that conditions of the site and in the vicinity of the protect are substantially the same as when he • -rmit cx ag Pr oval was original' granted andkm that an charnies which have occurred do not affect the validity of the findings for the original approval that the protect is still m general conformance with General Plan and zonin• ordinance r • 't -mein and that the a• dicant has made a ociod faith effort to exercise the roval Onn one 12-month extension ma be granted at a tirne. M. Abandonment. Whenever the use permitted by a Conditional Ubse Permit has been abandoned, the permit shall be deemed revoked, and shall be null and void. For purposes of this section, 'abandonment' means. 1 Cessation of the use permitted by the permit for a period of one year ".4, Institution of a different use which does nol include the use which is the subject of the permit. 3 Receipt of and commencement of use under a new use permit for a use or combination of uses not previously permitted. 4 Cessation of diligent activity to construct the permitted use for a period of one year or more, unce,begua unless the cessation of activity is due to factors beyond the control of the properly owner. Forpurposes 01 this subsection only In this context, luck of adequate financing, bankruptcy or financial failure of the owner or his agent, employees, contractors, or investors will be deemed to be within the control of the owner. Upon abandonment, any affected owner may apply for a new Coriditional Oise Piermit, which shall be governed by regulations in effect at the time of approval thereof, If such approval is forthcoming. N. New Application. Following the dental of a use permit application or the revocation of a use permit, no application for a use permit for the same or substantially the same conditional use on the same site shall be filed within one (1) year from the date of denial or revocation of the use permit, The Zoning Administrator shall determine hiSahef discretion whether the propesed use is the same or substantially the same for purposes o' trn suwegia Use Permit to Run with Land. A use permit granted pursuant to the provisions of this Chapter shall run with the land and shall be valid for the successors in interest of the original grantee. P. Minor Uso Permits. For minor use permits, the Zoning Administrator is hereby empowered to receive applicatrons, notify pursuant to Section 24.03C(F), offer the opportunity of oublic hearings, and approve subject to findings and conditions as reufred of the Panoing COmmission, For purposes of this section, 'minor use permits" indude rninor exterior modifications or enlargements to existing use penni(o, said modifications or enlargements being inconsequential in nalure and not involving u significant change in operations; minor extension of operating hours to existing use permits where the business has no appreciable outside noise and/or does not affect aD abutting m residential district; new use permits where the use iso<the same or niore restricted nature as <hwpmviowx use occupying the site; new use permits to authorize dwelling groups, in accordance with the provisions of Section 7.040; new Y5 L,Iprm#4 hoLtastioi WOWS ^urouon| (o Section 8]�� new use permits N authorize the eslablishmerit of conditional uses in commercial and industrial districts ■hore |hm Zoning Administrator finds that the use will be compatible with adacen( uses and is ni conformance with typical development o(undmrdm, e.g., parking, |andscmpinA, fencing, etc., and applicable petlormance standards; new use ptrmiIs to aulhorize existing single-household dwellings or to reestablish oing|e'hamxoho|dd*mi|inUo in selected commercial districts; previously approved use permits which have expired within the past twenty-four months; minor telecommunications facilities in accordance with the provisions nf Petaluma Municipal Code 14.44.20. CT Referral to Planning Commission. The Zoning Administrator may refer to the Planning Commission for a public hearing any project and projects for which adverse impacts have been identified information received in response 10 pubIc notitrcat,on ani ii the determination nf identified impacts cannot ho adeonately_controlledor mitigated R. Appeal. As prescribed in Section 24.070. STAFF ANALYSIS ^ .~~~ GENERAL PLAN Section 35.010 states that any amendment to the Implementing Zoning Ordinance must be in conformance with the General Plan. Chapter 9 of the City of Petaluma General Plan 2025 — Economic Health & Qus\uioabi|iiy, includes goals and policies 10 Iromote the City's economic and fixeul health. The goals are described in Sections 9.1 through 9.5. In particular the proposed text amendments conform tmthe following specific General Plan policies: 9-P-1 Retain und attract `basic' economic activities that bring dm1lmnv into the local economy by exporting products and services. 9-P-3 Provide an array of employment opportunities to existing and future residents by assuring diversity in Petaluma's industry and enterprise mix. 9-P-4 Establish the informational and planning capacity needed to define, encourage, and support su:iainuh|c economic development. 9-P-5 Monitor availability of adequate land, transportation, and infrastructure for desired types of growth to meet the com/uundy^m*owun/oic vitality goal, 9-P-6 Realize adequate City revenue from its economic base to sustain the public services and infrastructure needed by local residential, commercial and industrial activities. 9-P-7 Plan jointly for economic devc)mpmncnt, housing, and transportation to assure that the collective effect of cbuog,c in each area will support movement toward enhanced sustuinability over the planning horizon. 9 -P -8 Pursue economic development that is consistent with and supportive of Petaluma's quality of life. 9 -P -18 Strengthen the tourism sector. 9 -P -19 Insure the long -term fiscal health of Petaluma, as the City continues to develop, balancing fiscal concerns with economic, social, environmental, and cultural values. 3 -P -1 Protect historic and archaeological resources for the aesthetic, cultural, educational, environmental, economic, and scientific contribution they make to maintaining and enhancing Petaluma's character, identity and quality of life. ECONOMIC DEVELOPMENT STRATEGY Petaluma's recently adopted Economic Development Strategy identifies short-term, high - priority initiatives to jump start Petaluma's economy. Among those are strategies to reduce vacancies by coordinating business services, planning for adaptive re -use of vacant buildings, providing for flexibility in the zoning code and review of development impact fees. Staff is actively coordinating development activities through a "one- stop" development review program that provides early and comprehensive feedback to potential developers and tenants. Additionally, staff has presented a report to the City Council outlining options for reducing some development impact and/or capacity fees. This report addresses the need to provide flexibility in the code that will not only help to reduce vacancies but will also increase opportunities for visitor lodging, food and beverage processing and sales. The Strategy also outlines a potential need to consider zoning amendments that would encourage the conversion of office buildings for use by food processors, health care providers and manufacturers. Staff is actively working with property owners and potential businesses to identify opportunities to augment the industrial building stock with converted office buildings. Doing so may require additional zoning code amendments which will be presented to the Planning Commission when such a conversion is proposed. PUBLIC COMMENTS A Notice of Public Hearing for the October 11, 2011 Planning Commission meeting was published in the Argus Courier on September 29, 2011. Because the proposed amendments are not parcel specific there were not individual mailed notices for the item. The Economic Development Manager has worked with the Petaluma Chamber of Commerce's Economic Development Subcommittee as well as the local brokerage community to seek input and receive notice of this report. One comment letter has been received regarding bed and breakfasts and is attached for the Commission's review. ENVIRONMENTAL REVIEW This project has been reviewed in compliance with CEQA guidelines and has been determined to be categorically exempt pursuant to Section 15305 (Minor Alterations in Land Use Limitations) in that the project involves minor modifications to the Implementing Zoning Ordinance that do not result in significant changes in allowable land use or density. ATTACHMENTS Attachment A: Draft Resolution Attachment B: Public comment Letter ATTACHMENT A RESOLUTION OF THE CITY OF PETA 1.1.1M A 11,ANNING COMMISSION RF,COMMENDING TIIE crrY COUNCIL AMEND TIIE TEXT OF CHAPTERS 4, 8, AND 24 orrtIE cm OF PETALUIVIA IMPLEMENTING ZONINC ORDINANCE TO PROMOTE ECONOMIC DEVELOPMENT WHEREAS, Section 25.010 of the City of Petaluma Implementing Zoning Ordinance provides in pertinent part that no amendment shall be made to the Implementing Zoning Ordinance unless the Planning Commission and City Council find the amendment to he in conformity with the General Ilan; and, WHEREAS, on November 15, 2010 the Petaluma City Council accepted the Petaluma Economic Development Strategy which identifies filling nonresidential vacancies and expanding tourism among other strategies as short-term, high-priority economic development initiatives for improving Peta 'tuna's economic climate; and, WHEREAS, staff has proposed a series of text amendments to Chapter 4, Section 4.030; Chapter 8, Section 8.030; and Chapter 24 SectiOn 24.010 and 24.030 of the hnplementing Zoning Ordinance aimed at reducing barriers to filling existing vacancies and extending the life of certain development approvals; and, WHEREAS, a public notice of the October 11, 2011 public hearing before the Planning Commission was published in the Argus-Courier on September 29, 2011; and, WHEREAS, on October 11, 2011, the Planning Commission held a duly-noticed public hearing in accordance with the City of Petaluma Implementing Zoning Ordinance, Section 24.010. NOW, THEREFORE BE IT RESOLVED that the Planning Commission hereby finds that the proposed amendments contained in this Resolution to the City's Implementing Zoning Ordinance, Chapter 4, Section 4.030; Chapter 8, Section 8.030; and Chapter 24 Section 24.010 and 24.030, are in general conformity with the Petaluma General Plan 2025, in that these changes may have the effect of reducing vacancies, encouraging new development, promoting job growth, and assisting in the preservation of historic structures, thereby contributing to the City of l'ctaluma's economic base, yielding net fiscal benefits and contributing to a economically vital and diverse community; and, 13E IT FURTHER RESOLVED by the Planning Commission that the 'following proposed amendmects to the Implementing Zoning Ordinance, C.7.11apter 4, Section 4.030; Chapter 8, Section 8.030; and Chapter 24 Section 24.010 and 24.030, are hereby referred to the Petaluma City Council for consideration and findings in accordance with Section 25.010 of the Implementing Zoning Ordinance Section 4.030 — Allowable Land Uses and Permit Requirements — Tables 4.1 through 4.5 Amend Footnote 6 as follows: Note {6) Use a4ovvt auy permitted on an upper floor or behind ground floor street fronting use 1 ss otherwise approved with a cu? Section 4.030 - Allowable Land Uses and Permit Requirements - Tables 4.1 and 4.2 Amend the Lodging- I3ed & Breakfast inn land use type us follows: Natural and Rural Zones I P(16) Permitted Use TABLE 4.1 1 CUP Conditional Use Permit Required Permit Requirement in Specific Use Allowed Land Uses and Permit Requirements for Natural Regulations and Rural Zones A Accessory Use - Use Nol Allowed Permit Required by Zone Specific Use LANE USE TYPE 1 OSP AG RR R1 Regulations LODGING Lao I - Bed & Breakfast Inn !P4I - CUP Residential Zones P(16) Permitted Use TABLE 4.2 CUP Conditional Use Permit Required Permit Requirement in Specific Use Allowed Land Uses and Permit Requirements for Residential Regulations Uses A Accessory Use - Use Not Allowed Permit Required by Zone Specific Use LAND USE TYPE (1) R2 R3 I R4 R5 Regulations _ LODCING _ Lodging -Bed & breakfast inn (MB) CUP 1 CUP - - 8.030 - Zones for Alcoholic Beverage Establishments Amend as liAlows: Alcoholic beverage establishments are conditional uses only in the commercial and mixed use zones, C1, C2, MU1A. MU1B, and MU2 and in certain P.U,D.'s where appropriately designated as identified by the Zoning Ordinance and General Plan. No such establishment shall be permitted in any area outside of one of these commercial and mixed use zones_ext as allowed for tasting twins pursuant 0 Section 8.035 8.035 - Tasting Rooms Tastin rooms a saciated with an alcoho production facility may be considered ancillary to the _prima use and . I roved tr the Zoning Administrator asprovided bi Section 24 o3yA), !Awl complidnce with all of the following criteria A, The tasting mom shall be located on the premises of Me alcohol production faciltty and operations shall be ancillary to the primary use B The tastin room shah not ..erate as a standalone bar or tavern C. The tasting_room shall only seive andlor sell those beverages produced by the company on site, and 1-k‘) D The tasting roam shall cornfly with all applicable ABC and State regulations for wine, beer, and distillee spirit manufacturers and testing rooms, E. Ir addition to sabsf in* all of the above crilene, prior to issuare. of a rr:nor conditional use 'erreit hereunder the Zoring Administrator must determine that the minor conditional use permit also meets the general welfare standard set forth as a required finding for CUPS in Section 24.030.H. 24.010 — Site Plan and Architectural Review Amend as IbIlms: I. Expiration of Permit. if an-appropnate-deve — permit has-not-beeeeseeeettevaeadiere Of- 4 lo permit is neceseary, ifeheappeteed-use-iseiol-ocerameneed Site Plan and Architeckiral Review approval shall automatically expire within twelve (12) months of site olan and archaerelefatapproval [less Pie *emu ti • -n exercised or -eheesite-elaeaed arcbileolirral aperoval than bee id 3-44-irioatki exteesion reaueeteeeareteapepayed -ey ale Director a leasi perry (3C) days-prior- leteetweive-e12)-rnentlieexeleation date an extension of time is approved in compliarice well subsection J, The approval shall not be deemed "exercised until trie eel melee has sebetantiall commenced the . • oroved use on the site in compliance with the conditions of approval or an application for building permit has been submitted in compliance with the conditions of approval The approval shall remain vatic after it has been exercised as JON as a building permit remains actile or a final buridesinspectiee of et titoate of occupancy has been granted Upon expiration of Site Plan and Architectural Review approval. no further work she be done on the site Ate a new approval is first obtained J. Extension of Time Upon submittal of an application to the Cammunity Development Department on e berm preecribecl for this perpoee Y lie Departmene Director may extend the time limit established in seeSection A for Site Plan and Architectural Review approval. 1. The applicatior filed shall include a written request for an extension of time and shall be tiled at least 30 days poor to the expiration of the Site Plan and Architectural Review ep &royal toe-ther with the fen tee re• uiree lee the adopted Fee Schedule, 2. The Director shall aelernline whether the applicant has made a good tale) effort to exercise the approvaL The. applicant hall establish py substantial evidence that circumstances beyond the control of the applicant have created an inability to commence the use or appetite a buildnee_erinit witeh time period in subsection A nereot Fel _purposes of this subsection only, such circumstances may inclu,de but are not limiter to financial hardship_ temporary delay or unavailability of lunging unanticipated delays in securing necessareeproperty notes for the ire'ect, unantici.ated or abnormal weather c,onditions sufficient to deli commencement or completion of construction or pee-construction activities. 3. The Director may grant up to three, 12-month extensions 10 the tereratiou date of the original approval only upon the Director's determination that conailions of the site and in the Kiwi ce the oroieot are sJbstantially the same when the wed of approval was originally granted andior that any changes which have occurred do not affect the validity of the findings for the oricenal approval that the niect is shH neeenerel conformance with General Plan and zoning ordinance requirements and that the applicant has made A geod faith effort to exercis.e the a oval. one 12-month extension may be granted at a time 24.030 - Conditional Use Permits AMend as follows: E. Public Hearing. The Planning Commission shall hold at least one (1) public hearing on each application for a conditional use aefmit eAGepl fCr coriclitional use permits as or,ovided subset:lion P eereof. J. Revocation. Upon violation of any applicable provision of this Ordinance, or, if granted subject lo a condition or conditions, upon failure to comply with the condition or conditions, a certified letter shall be sent to the permittee informing him of the facts constitone noncompliance and slating that he has twenty (20) calendar clays from the date the teller is received to ccraply with the provisions and conditions of the use pewit. If after twenty (20) days has elapsed front the date of said ootct the permittee has failed to comply with the provisions and conditions of the use permit, the Director shall send a certified letter to the permittee suspending the use Penne aed Edit'l the ermittee his right to be heard by filing an apaealoursuare to Section 24 070 wittn lwe 20 da s of the second notice letter, The suspension will be in effect for twenty (20) calendar days from the date of notification and will require that the -11FA being allowed 44fIdef the use ilerrnli-be StiSpencifid lf, after the twenty (20) days suspension the violation has no been remedied, an the • -rmittee has failed to Wee timely or an appeal, Wed the use permit shall be deemed revoked and shaIl be nut and void without further actionly the Cily K. Expiration of Permit, IR any once wner-e- a-4;A Conditional Use Permit seal automatically expire within twelve (121 months of ajoroval uriess the lermit is been exercised or unless an extension of time s a. Iroved in compliance with subsection 1 The approval shall not be deemed 'exercised" until the has substantially commenced the aprioved use on the sile in compliance with the conditions of approval or an application for building permit has been submitted in wrriptiance with the conditions of approvat easeol-beeeoused-within-one--(4a-year-after the dale of granting thereof,-the-permit shall be-reyoked unless thirty (301 days prior to the one (1) year exeirationriate or aildtioia period ot- not more Man ane-(4)-yeal-ehall t* approved by le Zooing-AdminiattaDireolor) if after the 9oc-44loyear--exteasieri-perro4-tiaaempired a cooditioeal use-pernal-eas-not been- esed-menowithour further aetion the perm* shall be revokeclaod an void A a pooved-eoedittenal-itse-perinit-whioh has expired perseant4o-Seetioe-24-0300(2) may, wiMin twaroy-lour morithseNts,expiration. 1314,-appriNed by the Zoning Administrator as provided by Section 24 0,30444)-ka-a-sinte period out to exceed on1 I year -No-extensionotories-approva. eballee available L Extension of Time. Upon submittal of an application to the Community Develo • mem De•artment on a form resclibed tor peLpose, hy the Department the Director rwAy extend the time limit established in Subsection K for the initla' life of an ro‘vee Conditemal Use Ferule which has pot been exercised 1 The a•iilic.tiln filed shali include a written v.uest for an extension of time and shall be filed al least 30 days prior .. the expiration of the Conditional Use Pernat, Together with the filinc fee resulted b the ado• ted Fee Schedule 2 Th e Direc tor shall determine whether the applicant has made a good faith effort to exercise the approval. The a scant shalt establish with substantial evidence. That circumstances be end the pontrol of the applicant have created an inability to commence the use or apply for a building permit within the lime Rerl0f1 111 subsection A hereof For purposes of this subsec.lion colt, such circumstances may include but are nol limited teimancial hardship, trripprary unavailataliteer delay in funding, unanticipated delays in securing neCe§erari PrePertyrieles for the protect, tinantiCipated or abnormal weather conditions sufficient to delay commenwrierit or comple,tron of constructem or pre-construction activities These circumstances apply only to the e len on of elle for commencement ot use under a newly issued Jse permit an not to cessation of activity for perposes of apandonment et agagpermi1 pursuant to Sector, 24 010 J.4 hereof 3. The Director may yard ,J1) to thiee, 12-month extensions to the expiration dale of the or;ginal approval only_upon the Direetee's determination that conditions of the site and in the vicinit of theiloject are substantially the same as when the permit or approval was originali c rale andloi that an de,' s which eave occurred do not affect the valid!! ot tee finon•s for the mistrial a• royal. that the o act is shit in -neral conformance with General PL.n aid zoning Ordinance re ulrements and that the • +kale has made a good faith effort to exeicise the approval Only one 12-month extension may be granted at a hnie, M. Abandonment. Whenever the use permitted by a Conditional Uuse Prevail has been abandoned, the perrnit shall be deemed revoked, and shall be null and void For purposes of this section, "abandonment° means: Cessation of the use permitted by the permit for a period of one year 2 Institution of a different use which does not include the use which is the subject of the permit 3 Receipt of and commencement of use under a new use permit for a use or combination of uses not previously permitted. 4 Cessation of diligent activity to construct the permitted use for a period of one year or more, once begun, unless the cessation of activity is due to factors beyond the control of the property owner. For purposes of this subsection only le the context lack of adequate financing, bankruptcy or financial failure of the owner or his agent, employees, contractors, or investors will be deemed to be within the control of the owner. Upcn abandonment, any affected owner may apply for a new Cencafiengl_Wee Fr :rrnit, which shall be governed by regulations in effect at the time of approval thereof, if such approval is forthcoming. N. New Application. Following the denial of a use permit application or the revocation of a use permit, no application for a use permit for the same or substantially the same conditional use on the same site shall be filed within one (1) year from the date of denial or revocation of the use permit, The 4onrpc Administrator shat determine in histher discretion whether the proposed use is the same or suostartiall the same lorpurpasesof to ssr,hsect or, 0 Use Permit to Run with Land. A use permit granted pursuant to the provisions of this Chapter shall run with Ihe and and shat be valid for the successors in interest of the original grantee. P. Minor Use Permits. For minor use permits. the Zoning Administrator is hereby empowered to receive applications, notify pursuant to Section 24.030(F), offer the opportunity of public hearings, and approve subject to findings and conditions as required of the Planning Commission. For purposes of this section, "minor use permits" include minor exterior modifications or enlargements to existing use permits, said modifications or enlargements being inconsequential in nature and not involving a significant change in operations; minor extension of operating hours to existing use permits where the business has no appreciable outside noise and/or does not affect an abut keg a residential district; new use permits where the use is of the same or more restricted nature as the previous use occupying the site; new use permits to authorize dwelling groups, in accordance with the provisions of Section x'_040 new se permits for tasting towns tursuant to Section 6 035 new use permits to authorize the establishment of conditional uses in commercial and industrial districts where the Zoning Administrator finds that the use will be compatible with adjacent uses and is in conformance with typical development standards, e.g., parking, landscaping, fencing, etc., and applicable performance standards; new use permits to authorize existing single - household dwellings or to reeslabtish single-household dwellings in selected commercial districts; previously approved use permits which have expired within the past twenty -four months; minor telecommunications facilities in accordance with Ihe provisions of Petaluma Municipal Code 14.44.20. Q. Referral to Planning Commission. The Zoning Administrator may refer to the Planning Commission for a public hearing any project and projects for which adverse impacts have been rdertif =ed as the result of nfornnation received in response to public notification and in the determination of the ZCnrn. A.dn'rnistratcr the identified impacts cannot be adequately con rolled or mitigated R. Apt;eal. As prescribed in Section 24.070.