HomeMy WebLinkAboutRESOLUTION 2025-047 N.C.S. 04/21/2025Resolution No. 2025-047 N.C.S. Page 1
Resolution No. 2025-047 N.C.S. of
the City of Petaluma, California
RESOLUTION ADOPTING A GENERAL PLAN AMENDMENT TO ESTABLISH A
DOWNTOWN HOUSING & ECONOMIC OPPORTUNITY OVERLAY OVER SUBAREA
A ONLY TO INCREASE THE ALLOWABLE FLOOR AREA RATIO (FAR) FROM 2.5 TO
AMAXIMUM OF 6.0, BUT ONLY FOR PROJECTS THAT WILLPROVIDE SPECIFIED
COMMUNITY BENEFITS AND THAT ARE GRANTED A CUP IN ACCORDANCE WITH
REGULATIONS LIMITING BUILDING HEIGHT AND FAR IN THE OVERLAY IN
SECTION 5.070 OF THE CITY’S ZONING ORDINANCE; FILE NO: PLPJ-2022-0015 &
PLGP-2023-0001
WHEREAS, on April 11, 2022, EKN Development Group (Applicant), applied for Historic Site Plan and
Architectural Review (H-SPAR) for the EKN Appellation Hotel (Hotel), a 93-room hotel with ancillary food
service, parking and event spaces at 2 Petaluma Boulevard South; and
WHEREAS, City staff advised the Applicant that the Hotel did not comply with applicable City standards
and regulations, and that the proposed Hotel or the City’s regulations would need to be amended for City decision
makers to approve the Hotel; and
WHEREAS, the proposed Hotel could not qualify for a variance, because in Petaluma’s regulations,
variances can only apply to properties with unusual or unique conditions not caused by the property owner and
that interfere with exercise of land use rights held by owners of property in the same zoning district, and may not
authorize land uses not permitted in the zoning district; and
WHEREAS, the Applicant subsequently applied for a General Plan Amendment, and zoning amendments to
create a land use regulation overlay (later named the Downtown Housing & Economic Opportunity Overlay
(Overlay)); and
WHEREAS, the City Council has reduced the Overlay, which originally included 3 subareas encompassing
10 acres in Downtown Petaluma, to Subarea A only, totaling only 2.7 acres, following a series of workshop
meetings and hearings before the Historic and Cultural Preservation Committee (HCPC), the Planning
Commission and the City Council, in response to community member concerns about the scope of the Overlay,
and potential impacts on historic Downtown Petaluma; and
WHEREAS, to provide additional protections against potential negative impacts on Historic downtown
Petaluma, the City Council has also introduced amendments to the IZO to ensure that projects in the Overlay can
only qualify for increased height or reduced setbacks if City decisionmakers conclude that a project’s community
benefits justify increased development potential, such as projects that will offer: compatibility with their
surroundings; exceptional design; streetscape improvements; publicly accessible open space; preservation of
cultural resources within the Overlay; additional inclusionary housing; or location of all required parking below
grade, and subject to approval of a Conditional Use Permit (CUP) in accordance with detailed requirements
specified in the IZO; and
WHEREAS, Subarea A, the only remaining subarea in the Overlay, is a one-block by two-block area that is
largely underutilized, with about 77% of the total area undeveloped, vacant, or paved for parking, and includes
key opportunity sites, such as the vacant parcels where the Hotel is proposed, as well as other vacant buildings,
such as the former Bank of the West and the Fourth and C properties, which have both been vacant and in
dilapidated conditions for years; and
WHEREAS, the Overlay would increase the allowable floor area ratio from 2.5 up to a maximum of 6.0, and
would permit building heights above 45 feet up to a maximum of 75 feet, and/or permit increased lot coverage up
to a maximum of 100%, but only for projects that offer required community benefits and satisfy the Overlay
development and design controls, and that meet the requirements for granting of a CUP as specified in Sections
5.070 and 24.060(E) of the IZO; and
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WHEREAS, at the City Council’s February 10, 2025, meeting on Citywide goals and priorities, the Council
unanimously supported robust economic development as a primary goal for supporting Downtown businesses,
encouraging development of longstanding vacant and underutilized properties, making needed improvements in
the Downtown to achieve a more vibrant city and to provide local goods and services that expand and diversify
the City’s economy and tax base to help fund essential City services and weather periods of uncertain economic
conditions; and
WHEREAS, the purpose of the Overlay is to support Downtown local businesses, develop vacant properties,
and improve the overall health of Historic Downtown Petaluma by encouraging the preservation of historic
buildings and resources and the Commercial Historic District, activating the ground levels of existing and new
downtown residential and commercial properties, incentivizing the development of residential uses, and
promoting new development on sites with the greatest opportunity for redevelopment activity, while protecting
the City’s historic Downtown; and
WHEREAS, the Sonoma County Economic Development Collaborative reports that direct visitor spending
in Sonoma County totaled $2.3 billion in 2022, and the Overlay will enhance the ability of existing and future
Petaluma businesses to capture an increased share of Sonoma County visitor spending in Petaluma’s historic
Downtown; and
WHEREAS, the proposed Hotel, if approved, would provide $2.7 million in development impact fees to fund
parks, streets, and other improvements citywide, and is projected to generate approximately $551,000 in Transient
Occupancy Tax, $103,346 in sales tax, and $55,760 in property tax every year; and
WHEREAS, the proposed Hotel would be well within the Overlay FAR and height limits, with a FAR below
4.80, and a maximum height below 71 feet, and satisfy the community benefit requirements specified in the
Overlay Zoning amendments for building heights above 45 feet and increased FAR; and
WHEREAS, the City conducted three publicly noticed study sessions commencing on June 13, 2023, August
8, 2023, and October 3, 2023, on the Overlay, and has subsequently held workshops and hearings before the
HCPC, Planning Commission and City Council; and
WHEREAS, three parcels within the Overlay, including the two parcels where the Hotel site is located are
within the boundaries of the Petaluma Historic Commercial District; and
WHEREAS, the City of Petaluma as the lead agency under the California Environmental Quality Act
(CEQA) prepared a Draft Initial Study/Mitigated Negative Declaration (IS/MND) for the Overlay and Hotel
(together, for purposes of CEQA, the Project) to analyze potential environmental impacts; and
WHEREAS, the Draft IS/MND was made available for public and agency review from October 13, 2023, to
November 14, 2023; and
WHEREAS, on November 14, 2023, the Planning Commission and HCPC held a duly noticed joint public
hearing to consider the Draft IS/MND, and the Overlay General Plan and Zoning amendments; and
WHEREAS, at the November 14, 2023, joint public hearing, pursuant to IZO Section 15.020.A.6, the HCPC
provided their independent analysis of the Overlay General Plan and Zoning amendments and made a
recommendation on the proposed Zoning amendments to the Planning Commission; and
WHEREAS, at the November 14, 2023 joint public hearing, the Planning Commission provided their
independent analysis of the Draft IS/MND and the Overlay, considered the recommendation provided by the
HCPC on the zoning amendments, and adopted Resolutions 2023-21 and 2023-22, regarding the Overlay; and
WHEREAS, following the November 14, 2023, Planning Commission and HCPC joint public hearing, the
City commenced preparation of an Environmental Impact Report (EIR) for the Project to provide more in-depth
analysis of the potential impacts of the Project and to provide additional information for the public and reviewing
bodies; and
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WHEREAS, on September 24, 2024, the Planning Commission and HCPC held a duly noticed, joint public
hearing to consider information presented by staff, to receive public comments regarding the Draft EIR, and to
independently consider the Draft EIR; and
WHEREAS, at the September 24, 2024, joint public hearing, the HCPC considered the public comments
received, independently considered the Draft EIR, and by a vote of 4-0 recommended to the Planning Commission
that the Commission recommend to the City Council preparation of a Final EIR for the Project, subject to
recommendations; and
WHEREAS, at the September 24, 2024, joint public hearing, the Planning Commission adopted Resolution
2024-12 N.C.S., recommending that the City Council direct staff to proceed with preparation of the Final EIR for
the Project with recommendations; and
WHEREAS, on October 7, 2024, the City Council held a duly noticed public hearing to independently
consider the Draft EIR and to receive public comments regarding the Draft EIR; and
WHEREAS, at the October 7, 2024, public hearing, the City Council adopted Resolution 2024-125 N.C.S.,
authorizing staff to prepare the Final EIR, inclusive of responses to public comments; and
WHEREAS, on November 18, 2024, the City Council held a duly noticed public workshop to engage in an
in-depth discussion about various aspects of the Overlay; and
WHEREAS, at the November 18, 2024, workshop, the City Council directed staff to clarify the relationship
between the Overlay and the ongoing General Plan Update process; to provide additional information for the
Council to better understand implications of the Overlay on multi-family housing, including how it relates to State
Density Bonus Law, Senate Bill (SB) 35, and height increase eligibility; to bring forward potential options for
supplementing the review of development projects within the proposed Overlay by design and architectural
specialists in addition to the City’s established SPAR process; to update Council on the ongoing efforts of the
Downtown Parking Management Plan; to bring forward the Overlay for Council’s consideration as recommended
by the Planning Commission at the November 14, 2023, public hearing and any potential modifications from
Council’s input during the November 18, 2024, workshop; and to bring forward the Overlay and Final EIR
directly to City Council for consideration, in lieu of returning to the Planning Commission and HCPC for their
review of the Final EIR; and
WHEREAS, the proposed General Plan Amendment and Zoning amendments establishing the Overlay
involve no considerations not before the Planning Commission when it reviewed and recommended approval to
the City Council on November 14, 2023, via Resolutions 2023-21 and 2023-22, and no further review by the
Planning Commission is therefore required under state or local law; and
WHEREAS, on February 14, 2025, a Notice of Availability, Notice of Intent to Certify, Notice of Public
Hearing, and the Final EIR were filed with the State Clearinghouse and the Sonoma County Clerk, published on
the City’s website, circulated in the Argus Courier, mailed to interested persons who requested notification,
responsible, trustee and other public agencies, and mailed to all owners and occupants of properties within a 1,000
foot radius of the perimeter of the Overlay study area, commencing the required 10-day public review period
beginning on February 14, 2025, and extending through February 24, 2025; and
WHEREAS, on February 24, 2025, the City Council held a duly noticed public hearing to independently
consider the Final EIR and to receive public comments on the Final EIR; and
WHEREAS, at the February 24, 2025, duly noticed public hearing, the City Council certified the Final EIR
by Resolution 2025-021; and
WHEREAS, in compliance with Public Resources Code Section 21081(a) and CEQA Guidelines Section
15091(a), the City Council of Petaluma has made one or more of the required findings for each identified
potentially significant impact, supported by substantial evidence, as set forth in the Findings of Fact, attached to
Resolution No. 2025-046 as Exhibit A and incorporated therein by reference; and
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WHEREAS, in compliance with CEQA Guidelines Section 15091(d), a Mitigation Monitoring and Reporting
Program for the Project was prepared as set forth in Exhibit B, attached to Resolution No. 2025-046 N.C.S. and
incorporated therein by reference, to ensure that all feasible mitigation measures which serve to reduce
environmental impacts of the Project as recommended by the Project EIR are fully implemented; and
WHEREAS, no physical development is proposed or would be approved merely as a result of the City
Council approving this General Plan Amendment and adopting the Zoning amendments establishing the Overlay
pursuant to reintroduced Ordinance 2900 N.C.S.; and
WHEREAS, approval of the Hotel as currently proposed anticipates approval of this General Plan
Amendment and adoption of the Zoning amendments for the Overlay, Ordinance 2900 N.C.S.; and
WHEREAS, approval of the Hotel as currently proposed would require satisfying the regulations, criteria,
and findings specified in the Overlay zoning amendments in Ordinance 2900 N.C.S., and independent
discretionary review and granting of a CUP at a separate, publicly noticed hearing of the HCP C; and
WHEREAS, physical development of sites within the Overlay will be subject to separate discretionary review
processes, including SPAR, H-SPAR, and/or granting of a CUP in accordance with the Overlay regulations in
Ordinance 2900 N.C.S.; and
WHEREAS, consistent with CEQA, the discretionary decisions on potential future development applications
in the Overlay meet the definition of a project, and would be subject to independent CEQA analysis to determine
potential environment impacts of future proposed projects; and
WHEREAS, all future development proposals within the Overlay would also be subject to mitigation
measures contained in the MMRP, attached to Resolution No. 2025-046 N.C.S. as Exhibit B, including
measures with clearly defined criteria which the City will apply in determining the impacts of future proposed
projects; and
WHEREAS, consistent with CEQA, the City Council, as the lead agency may rely on future studies required
by mitigation measures in the MMRP, attached to Resolution No. 2025-046 N.C.S. Exhibit B for future
proposed developments as such studies will inform site-specific mitigation design to fit on-the-ground
environmental conditions; and
WHEREAS, because the Overlay will not result in direct physical development, identifying site-specific
mitigation measures for potential impacts to the resource areas identified in the certified EIR is not appropriate at
this time as this would represent speculative analysis under CEQA; and
WHEREAS, on February 24, 2025, the City Council held a duly noticed public hearing to consider a General
Plan Amendment for the Overlay, at which time all interested parties had the opportunity to be heard, and
approved Resolution No. 2025-022 N.C.S. to amend the General Plan and to make CEQA Findings of Fact and
adopt a Mitigation Monitoring and Reporting Program for the Project; and
WHEREAS, on March 17, 2025, the City Council held a duly noticed public hearing and repealed Resolution
No. 2025-022 N.C.S.; and
WHEREAS, on or before April 11, 2025, public notice was published in the Argus and mailed to all property
owners and occupants in the study area and within 1,000 feet of the perimeter of the study area and any interested
party and via posters installed on the site of the EKN Appellation Hotel at 2 Petaluma Boulevard South, consistent
with noticing requirements in IZO Section 24.100; and
WHEREAS, on April 21, 2025, City Council adopted Resolution No. 2025-046 N.C.S. which adopted
Findings of Fact as required by CEQA Guidelines Section 15091 and adopted the Mitigation Monitoring and
Reporting Program (MMRP) as required by CEQA Guidelines Section 15097 for the Project; and
WHEREAS, on April 21, 2025, the City Council held a duly noticed public hearing to consider this
resolution, at which time all interested parties had the opportunity to be heard;
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Petaluma as follows:
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1. The above recitals are hereby declared to be true and correct and are incorporated into this resolution as
findings of the Petaluma City Council.
2. The potential environmental impacts of the Downtown Housing and Economic Opportunity Overlay,
including the General Plan Amendment pursuant to this resolution and the Zoning amendments for the
Overlay pursuant to Ordinance 2900 N.C.S., were fully analyzed in the Downtown Housing and Economic
Opportunity Overlay and EKN Appellation Hotel Final EIR (SCH #2024040565) containing all the
requirements of CEQA Guidelines Section 15132, inclusive of references, appendices, and all attachments
thereto.
3. The City Council hereby approves a General Plan Amendment to amend the text contained in the Land Use,
Growth Management, & the Built Environment Element, Section 1.2 Land Use Framework, Page 1-7 of the
City of Petaluma 2025 General Plan as follows (additions are in underline, and deletions are in strikethrough):
Mixed Use (outside of the CPSP)
Mixed Use (2.5 6.0 maximum FAR). This classification requires a robust combination of uses,
including retail, residential, service commercial, and/or offices. Development is oriented toward the
pedestrian, with parking provided, to the extent possible, in larger common areas or garages.
Maximum FAR including both residential and non-residential uses2 is 2.5, except that a maximum
FAR up to 6.0 may be considered and approved for areas within the Downtown Housing and
Economic Opportunity Overlay Zone, subject to granting of a CUP that satisfies all applicable
requirements in Sections 5.070 and 24.060(E) of the IZO. The and maximum residential density for
all areas designated Mixed Use is 30 d.u./acre.
2 This FAR is simply calculated by dividing total floor area of all uses—residential and non-residential,
but excluding parking—by the site net area.
4. Government Code Section 65358 allows General Plan amendments when it is deemed in the public interest
to do so. The proposed General Plan Amendment is in the public interest in accordance with the following
City Council findings:
a. The City Council finds that the proposed General Plan Amendment to increase the allowable floor
area ratio for areas designated Mixed Use and located within the Overlay from 2.5 up to a maximum
of 6.0., but only for projects that will provide specified community benefits and that are granted a CUP
in accordance with regulations limiting building height and FAR in the Overlay in Section 5.070 of
the Zoning ordinance, Ordinance 2300 N.C.S, is in the public interest as it incentivizes higher-
intensity, mixed-use development in Downtown Petaluma by increasing development potential,
thereby promoting infill development, increasing opportunities for transit use, creating a more
walkable, vibrant Downtown, increasing the diversity of housing, retail, and cultural opportunities,
and preserving and enhancing the City’s historic character. Moreover, the General Plan Amendment
is consistent with and implements existing General Plan policies contained in the Land Use, Growth
Management, and the Built Environment Element (Policies 1-P-1, 1-P-3, 1-P-6, 1-P-7, 1-P-11, 1-P-
12), Community Design, Character, and Green Building Element (Policies 2-P-3, 2-P-5, 2-P-14, 2-P-
17), Mobility Element (Policy 5-P-43), Economic Health and Sustainability Element (Policies 9-P-12,
9-P-13, 9-P-14), and Housing Element (Policies 1.1, 1.3, 1.4, 1.6, 1.7, 2.1).
b. The City Council finds that the proposed General Plan Amendment to increase the allowable floor
area ratio for areas designated Mixed Use and located within the Overlay from 2.5 up to a maximum
of 6.0 .,but only for projects that will provide specified community benefits and that are granted a CUP
in accordance with regulations limiting building height and FAR in the Overlay in Section 5.070 of
the Zoning ordinance, Ordinance 2300 N.C.S, is in the public interest as it supports three out of the
five categories of City Council Goals including An Economy that Prospers, Spaces and Places that
Inspire, and Our Environmental Legacy, in that the Overlay: creates a discretionary review process
that provides for flexibility in current development standards and allows the City to consider increased
development intensity in the core of Petaluma’s downtown, in proximity to services and transit and in
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an area supported by an expanded network of active transportation options; includes specific design
standards to ensure that any increased development potential is only allowed if designed to be
compatible with and appropriate to the Downtown area; encourages appropriately designed infill
development on underutilized parcels in the City’s Downtown, supporting housing growth and
strengthening the City’s tax base and revenue; and helps reduce urban sprawl and VMT, promoting a
more sustainable, transit-oriented community which supports the City’s commitment to climate
initiatives and reduction in greenhouse gas emissions.
c. The City Council finds that the proposed General Plan Amendment to increase the allowable floor
area ratio for areas designated Mixed Use and located within the Overlay from 2.5 to a maximum of
6.0.,but only for projects that will provide specified community benefits and that are granted a CUP
in accordance with regulations limiting building height and FAR in the Overlay in Section 5.070 of
the Zoning ordinance, Ordinance 2300 N.C.S, is in the public interest as it, in part, implements Actions
TLUC-1 and TLUC-2 of the adopted Blueprint for Climate Action, as it allows for higher intensity
development in the Downtown area, which increases development potential in one of the City’s most
walkable areas, thereby supporting development of more viable mixed-used projects near high-quality
transit corridors and contributing to the vision of 15-minute neighborhoods. By supporting incremental
infill development through increased development potential, the Overlay contributes to reducing
greenhouse gas emissions associated with the reliance and use of single-occupancy vehicles as it
positions residential, commercial, and other uses near reliable transit, and further promotes a shift
towards active transportation, directly supporting the City’s climate action and sustainability goals.
5. This resolution shall have the same adoption date as the date that the City Council adopts (gives second
reading to) the Overlay zoning amendments, Ordinance No. 2900 N.C.S. which was reintroduced by the City
Council on March 17, 2025, such that Ordinance 2900 N.C.S. and this resolution shall have the same dates of
adoption by the City Council.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Council of the City of Petaluma at a Regular meeting on the 21 day of April
2025, by the following vote:
Approved as to
form:
City Attorney
AYES: McDonnell, Barnacle, Cader Thompson, Quint, Shribbs
NOES: Nau,
ABSENT: None
ABSTAIN: None
RECUSED: DeCarli
ATTEST:
City Clerk
Mayor
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