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HomeMy WebLinkAboutORDINANCE 2900 N.C.S. 04/21/2025 Ordinance No. 2900 N.C.S. Page 1 EFFECTIVE DATE OF ORDINANCE May 21, 2025 ORDINANCE NO. 2900 N.C.S. Introduced by: John Shribbs Seconded by: Janice Cader Thompson AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA TO AMEND THE PETALUMA IMPLEMENTING ZONING ORDINANCE (IZO) TO ADD A DOWNTOWN HOUSING AND ECONOMIC OPPORTUNITY OVERLAY TO THE LIST OF OVERLAY ZONES PROVIDED IN TABLE 2-1 (ZONES) IN CHAPTER 2 OF THE IZO; TO ADD A FOOTNOTE REFERENCE TO TABLE 4.3 (ALLOWED LAND USES AND PERMIT REQUIREMENTS FOR MIXED USE ZONES) AND TABLE 4.10 (MU1 AND MU2 ZONE DEVELOPMENT STANDARDS) REFERENCING SECTION 5.070 OF THE IZO IN CHAPTER 4 OF THE IZO; TO ADD SECTION 5.070 AND ESTABLISH THE DOWNTOWN HOUSING AND ECONOMIC OPPORTUNITY OVERLAY ZONE IN CHAPTER 5 OF THE IZO; AND TO AMEND THE ZONING MAP OF THE CITY OF PETALUMA TO ESTABLISH A DOWNTOWN HOUSING AND ECONOMIC OPPORTUNITY OVERLAY ZONE FOR THE PARCELS IN SUBAREA A ONLY; FILE NO: PLPJ-2022-0015 & PLZA- 2023-0002 WHEREAS, the City of Petaluma Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S. in Section 25.010 provides 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 have found the amendment to be in conformity with the General Plan; and WHEREAS, pursuant to IZO Chapter 25, a zoning amendment may be requested by a property owner, and the City Council may adopt the amendment upon the recommendation of the Planning Commission; and WHEREAS, on April 11, 2022, EKN Development Group (herein after ‘Applicant’), applied for Historic Site Plan and Architectural Review (H-SPAR) for the EKN Appellation Hotel (herein after ‘Hotel’) to develop a 93-room hotel with ancillary food service, parking and event spaces at 2 Petaluma Boulevard South; and WHEREAS, the Hotel would exceed the maximum floor area ratio (FAR) established by the Mixed Use (MU) 2025 General Plan Land Use Classification and exceed the maximum building height, lot coverage, and FAR established by the Mixed Use 2 (MU2) IZO designation; and WHEREAS, the City of Petaluma advised the Applicant that the Hotel must be revised to comply with applicable IZO and General Plan standards and regulations, or amendments must be proposed to allow for Planning review to proceed; and WHEREAS, EKN Development Group subsequently applied for a General Plan Amendment (GPA), Zoning Map Amendment (ZMA), and Zoning Text Amendment (ZTA) to create a Building Form Overlay (later renamed the Downtown Housing & Economic Opportunity Overlay (herein after ‘Overlay’)); and WHEREAS, the City of Petaluma conducted three publicly-noticed study sessions on June 13, 2023, August 8, 2023, and October 3, 2023, to develop the scope and content of the Overlay, consisting of Subareas A, B, and C; and WHEREAS, three parcels within Subarea A, including two parcels comprising the proposed Hotel site, and one parcel within Subarea B of the Overlay are also within the boundaries of the Petaluma Historic Commercial District; and WHEREAS, the City Council held a special meeting on February 10, 2025, focused on Citywide goals and priorities and the Council was unanimous in its support of robust economic development as a primary goal for Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 2 the City to support existing businesses, encourage activation of longstanding vacant and underutilized properties, to provide Petaluma residents with local goods and services and diversify the City‘s tax base to help mitigate for periods of recession and uncertain economic trends; and WHEREAS, the purpose of the Overlay is to support existing local businesses, fill vacant properties, and improve the overall health of our Historic Downtown by facilitating preservation of historic buildings and resources and the Commercial Historic District, activate the ground levels of existing and new downtown residential and commercial properties, and the addition of residential uses incorporate sites with the greatest opportunity for redevelopment activity by increasing the allowable floor area ratio from 2.5 to 6.0, building height from 45 feet to up to 75 feet subject to approval of a conditional use permit (CUP), and lot coverage from 80% to 100% subject to approval of a CUP, and subject to development and design controls for properties within the proposed Overlay; and WHEREAS, the Sonoma County Economic Development Collaborative reports direct visitor spending in Sonoma County totaled $2.3 billion in 2022 which put dollars directly into our local businesses; and WHEREAS, in addition to the potential benefits to housing development within the Overlay, the Strategic Economics memo, attachment 7 to the concurrent staff report, the proposed EKN Appellation Hotel is projected to contribute each year to the City of Petaluma approximately $551,000 in Transient Occupancy Tax (TOT), $103,346 in sales tax, and $55,760 in property tax. In addition, the EKN Appellation Hotel is subject to payment of City development impact fees, and based on the Development and Impact Fees Schedule effective today, the EKN Appellation Hotel would be required to pay the City $2.7 million in Development Impact Fees which funds housing, parks, and street improvements citywide; and WHEREAS, Subarea A is largely underutilized, with eight entire parcels, and about 77% of the total area undeveloped, vacant, or paved for parking and of the three subareas, Subarea A has the lowest parcel utilization, with key opportunity sites such as the vacant parcels where the EKN Appellation 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 for several years; 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 Downtown Housing and Economic Opportunity Overlay and EKN Appellation Hotel (herein after ‘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, pursuant to IZO Sections 25.010 and 25.050.B, if the Planning Commission finds the IZO amendments to be in conformance with the General Plan, and consistent with the public necessity, convenience, and general welfare, it may recommend amendment of the IZO to the City Council; and WHEREAS, on November 14, 2023, the Planning Commission and Historic and Cultural Preservation Committee (HCPC) held a duly noticed public hearing to consider the Draft IS/MND, and the Overlay GPA, ZMA, and ZTA; and WHEREAS, at the November 14, 2023, public hearing, pursuant to IZO Section 15.020.A.6, the HCPC provided their independent analysis of the Overlay zoning amendments and made a recommendation on the proposed ZMA and ZTA to the Planning Commission; and WHEREAS, on November 14, 2023, the Planning Commission provided their independent analysis of 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 Downtown Housing and Economic Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 3 Opportunity Overlay and EKN Appellation Hotel (herein after ‘Project’) to provide greater analysis of the potential impacts of the Project and to provide additional information for the public and reviewing bodies; and WHEREAS, on September 24, 2024, the Planning Commission and HCPC held a duly noticed 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, 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, public hearing, the Planning Commission adopted Resolution 2024- 12, 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, 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 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; and WHEREAS, on February 14, 2025, a Notice of Availability, Notice of Intent to Certify, Notice of Public Hearing, and the Final Project 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 a proposed ordinance for establishing zoning amendments for the Overlay and to receive public comments on the proposed ordinance; and WHEREAS, at the February 24, 2025, duly noticed public hearing, the City Council certified the Final EIR by adopting Resolution 2025-021; and WHEREAS, at the February 24, 2025, duly noticed public hearing, the City Council took action on Resolution No. 2025-022 N.C.S. concerning a General Plan Amendment to increase the allowable Floor Area Ratio for parcels within the Downtown Housing & Economic Opportunity Overlay from 2.5 to 6.0 for Overlay Subareas A through C, and Resolution No. 2025-022 N.C.S. included required findings for each identified potentially significant impact, supported by substantial evidence, as set forth in the Findings of Fact, attached as Exhibit A to the resolution, and Resolution No. 2025-022 N.C.S. also included a Mitigation Monitoring and Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 4 Reporting Program for the Project, attached as Exhibit B to the resolution, and Section 5 of Resolution No. 2025- 022 N.C.S. provided that its adoption date would be the same as the adoption date of the ordinance enacting the Overlay zoning amendments; and WHEREAS, Resolution No. 2025-022 N.C.S. included City Council findings 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 6.0 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; and that 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); and WHEREAS, Resolution No. 2025-022 N.C.S. included City Council findings 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 6.0 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 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; and WHEREAS, Resolution No. 2025-022 N.C.S. included City Council findings 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 6.0 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, and that 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; and WHEREAS, at the February 24, 2025, duly noticed public hearing, the City Council introduced Ordinance No. 2900 N.C.S. which would amend Chapter 2 of the IZO to add the Downtown Housing and Economic Opportunity Overlay to the list of Overlay Zones provided in Table 2-1 (Zones); Amend Chapter 4 of the IZO to add a Footnote to Tables 4.3 (Allowed Land Uses and Permit Requirements for Mixed Use Zones) and 4.10 (MU1 and MU2 Zone Development Standards) Referencing Section 5.070 of the IZO; and Amend Chapter 5 of the IZO to add Section 5.070 and establish the Downtown Housing and Economic Opportunity Overlay Zone and authorize a Zoning Map Amendment to zone the parcels in Subareas A, B and C that would be subject to the Overlay; and WHEREAS, at the February 24, 2025, duly noticed public hearing the Ordinance introduced included an amendment that added IZO Section 5.070.I, which added a requirement as part of the CUP for any building to be built above 45 feet must disclose the foreseeable impact of the project on the jobs-housing balance in Petaluma Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 5 and an amendment to Section 5.070.F, which strengthened the additional CUP findings required to be made to allow a height above 45 feet by requiring that at least three of the list of five considerations be met instead of just one as was originally presented to the Council; and WHEREAS, although Section 5 of Resolution No. 2025-022 N.C.S. provided that its adoption date would be the same as the adoption date of the ordinance enacting the Overlay zoning amendments, and the Overlay zoning amendments had not yet been adopted, on February 27, 2025, Robert Perlman, an attorney representing Petaluma Historic Advocates, submitted to Petaluma City Clerk Caitlin Corley a proposed summary of a referendum against Resolution No. 2025-022 N.C.S. pursuant to Elections Code Section 9238(b)(2)(B)(ii), requesting an approved summary of the referendum from the City Attorney; and WHEREAS, at the City Council workshop on the Overlay on November 18, 2024, the City Council considered various options regarding the proposed overlay, including potentially reducing the size or the number of the subareas to which the Overlay would apply; and WHEREAS, to provide the City Council the option of encouraging development of underutilized parcels in the downtown while substantially reducing the size of the Overlay in response to community feedback, the City Council had options for action regarding the Overlay at the March 17, 2025, City Council meeting including, in addition to simply adopting Ordinance 2900 N.C.S. as introduced; adoption of a resolution providing for the repeal of Resolution No. 2025-022 N.C.S. so that Resolution No. 2025-022 N.C.S., consistent with Section 5 of the resolution, would not take effect; and reintroduction of this amended ordinance by which the City Council may enact zoning text and map amendments for a reduced Overlay (“Reduced Overlay”) applicable to Subarea A only; and WHEREAS, in furtherance of the unanimous priority given by the current City Council to economic development in Petaluma, while also recognizing community feedback regarding the extent of the proposed Overlay in the downtown, comprising as proposed three subareas A, B and C, on March 17, the City Council chose to reduce the Overlay to apply to Subarea A only, limiting the enhanced development potential for residential and commercial development of the Overlay to only the two-square block area of Subarea A, which contains some of the most underutilized parcels in the downtown, including the proposed Hotel site; and WHEREAS, this amended and reintroduced version of the ZMA and ZTA to be offered to the City Council for potential action at the April 21, 2025, City Council meeting is substantially the same as when the Planning Commission reviewed and recommended approval to City Council on November 14, 2023, via Resolution No. 2023-022 N.C.S., except that; this ordinance would establish a Reduced Overlay applicable to Subarea A only, reducing scope and the potential impacts of the Project, but otherwise maintaining the provisions of the ZMA and ZTA considered by the Planning Commission unchanged and intact, and, accordingly, no further review by the Planning Commission is required under state or local law and WHEREAS, no physical development is proposed or would be approved as a result of the City Council amending and reintroducing this ordinance establishing zoning text and map amendments for the Reduced Overlay applicable to Subarea A only; and WHEREAS, approval of the Hotel as currently proposed anticipates adoption of a GPA increasing allowable floor area ratio in a Reduced Overlay applicable to Subara A only and adoption (first and second reading) of this amended and reintroduced ordinance establishing the ZMA and ZTA for the Reduced Overlay applicable to Subarea A only; and WHEREAS, approval of the Hotel is subject to meeting the regulations, criteria, and findings of the Reduced Overlay applicable to Subarea A only, subject to independent discretionary review at a separate, publicly noticed hearing of the H C PC; and WHEREAS, physical development of other sites within the Reduced Overlay applicable to Subarea A only would be subject to separate discretionary review processes, including SPAR, H-SPAR, and/or CUP; and Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 6 WHEREAS, it is anticipated that, consistent with CEQA, discretionary City Council actions regarding potential future development projects in the Reduced Overlay applicable to Subarea A only would meet the definition of a project, and would thus be subject to independent CEQA analyses to determine potential impacts of such future development projects; and WHEREAS, all future development projects proposed to be located within the Reduced Overlay applicable to Subarea A only would also be subject to mitigation measures contained in the MMRP approved for the Project, including measures with clearly defined criteria which the City of Petaluma will apply in determining the impacts of future development; and WHEREAS, consistent with CEQA, the City of Petaluma, as the Lead Agency may rely on future studies required by mitigation measures in the adopted MMRP for site-specific developments as these future studies will inform site-specific mitigation design to fit on-the-ground environmental conditions; and WHEREAS, because the Reduced Overlay applicable to Subarea A only will not result in direct physical development, identifying site-specific mitigation measures for potential impacts to the resource areas identified in the certified EIR (City Council Resolution No. 2025-021) is not appropriate at this time as this would represent speculative analysis under CEQA; and WHEREAS, the proposed Reduced Overlay applicable to Subarea A only will reduce the costs to a housing project by allowing greater lot coverage, floor area ratio, and additional height which enables more efficient use of land, lowers per-unit construction expenses, and reduces the financial burden of structured parking, as documented in the Strategic Economics Memorandum, attached to the concurrent staff report at Attachment 7; and WHEREAS, the proposed Reduced Overlay applicable to Subarea A only will facilitate the development of housing due to the reduction in costs to a housing project and by increasing allowable building heights, floor area ratios, and lot coverage, and allowing ground floor residential thereby expanding development capacity and unlocking underutilized sites for residential use, as identified in the Strategic Economics Memorandum, attached to the concurrent staff report at Attachment 7; and WHEREAS, this amended and reintroduced ordinance would establish a new CUP process allowing additional height above 45 feet and increased lot coverage in a Reduced Overlay applicable to Subarea A only, subject to criteria that must be satisfied to grant a CUP, which in turn enables the City to realize the benefits of reduced housing development costs and the facilitation of new housing production; and WHEREAS, on March 17, 2025, the City Council held a duly noticed public hearing to independently consider items listed on the meeting agenda, including reintroducing this amended ordinance for establishing zoning amendments for a Reduced Overlay applicable to Subarea A only and to receive public comments on the proposed ordinance; and WHEREAS, after considering all comments, the City Council amended and reintroduced the Ordinance on March 17, 2025, reducing the Overlay to include only Subarea A by removing Subareas B and C, with approval by a 5-to-1 vote (Mayor McDonnell and Council Members Barnacle, Cader Thompson, Quint, and Shribbs in favor; Council Member Nau opposed; and Council Member DeCarli recused), leaving the remainder of the February 24, 2025 Ordinance unchanged; and WHEREAS, at the March 17, 2025 hearing, City Council adopted Resolution No. 2025-029 N.C.S., repealing Resolution 2025-022 N.C.S. related to a General Plan Amendment that increased allowable Floor Area Ratio (FAR) from 2.5 to 6.0 within the proposed Downtown Housing & Economic Opportunity Overlay together with adopting the Mitigation Monitoring and Reporting Program (MMRP) and CEQA Findings of Fact for both the Overlay and the EKN Appellation Hotel Project (SCH #2024040565); and WHEREAS, during the April 21, 2025, public hearing, Council will consider adopting a new General Plan Amendment to increase the FAR from 2.5 to 6.0 exclusively for Subarea A and a Resolution adopting the Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 7 Mitigation Monitoring and Reporting Program (MMRP) and CEQA Findings of Fact for both the Overlay and the EKN Appellation Hotel Project (SCH #2024040565); 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 outlined in IZO Section 24.100; and WHEREAS, on April 21, 2025, City Council adopted a Resolution, 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; and WHEREAS, on April 21, 2025, the City Council adopted a Resolution, Resolution No. 2025-047 N.C.S., to adopt a General Plan Amendment to increase the allowable Floor Area Ratio for areas within the Downtown Housing & Economic Opportunity Overlay from 2.5 to 6.0, subarea A; and WHEREAS, on April 21, 2025, the City Council held a duly noticed public hearing to conduct a second reading of the proposed ordinance for establishing zoning amendments for the Overlay and to receive public comments on the proposed ordinance. NOW THEREFORE BE IT ORDAINED by the council of the City of Petaluma, as follows: Section 1. Recital Findings. The foregoing recitals are hereby declared to be true and correct and are incorporated into this ordinance as findings and determinations of the City Council. Section 2. CEQA Findings. The potential environmental impacts of the Reduced Downtown Housing and Economic Opportunity Overlay Project applicable to Subarea A only, including the proposed Zoning Text Amendments and Zoning Map Amendment, were fully analyzed in the Downtown Housing and Economic Opportunity Overlay and EKN Appellation Hotel Project Final EIR (SCH # 2024040565), containing all the requirements of CEQA Guidelines Section 15132, inclusive of references, appendices, and all attachments thereto. The Final EIR was certified pursuant to City Council Resolution No. 2025-021 N.C.S., and the Findings of Fact were made and the MMRP adopted pursuant to City Council Resolution No. 2025-046 N.C.S. These resolutions are incorporated herein. Section 3. Severability. 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 other otherwise invalid. Section 4. General Plan and Public Necessity Findings. In accordance with Sections 25.010 and 25.070 of the City’s Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., (IZO), the proposed amendments to the IZO described in Section 5 and Exhibit A, Exhibit B, and Exhibit C, and Section 6 and Exhibit D, attached hereto and incorporated into this ordinance are in general conformity with the General Plan 2025 and that the public necessity, convenience, and general welfare require or clearly permit the adoption of the proposed amendment: A. General Plan Consistency. For the reasons described in the concurrent City Council Staff Report dated March 17, 2025 and incorporated herein by reference, the proposed Reduced Downtown Housing and Economic Opportunity Overlay applicable to Subarea A only 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) Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 8 B. Public Necessity, Convenience, and General Welfare. The public necessity, convenience, and welfare clearly permit the adoption of the proposed Zoning Text and Zoning Map Amendments in that the proposed Reduced Downtown Housing and Economic Opportunity Overlay applicable to Subarea A only: • 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. • Supports and cross-references three out of five categories of the adopted City Council Goals, for An Economy that Prospers, Spaces and Places that Inspire, and Our Environmental Legacy. • Supports new development standards and guidelines to achieve a desired height of up to 75 feet when required design standards are met, providing for compatible and appropriate development in the Downtown area. • Encourages infill development of underutilized parcels in the City's Downtown, strategically located near public transit. • Supports housing growth and strengthens the City's tax base and revenue. • Helps to reduce urban sprawl, vehicle miles traveled, and associated greenhouse gas emissions, promoting a more sustainable, transit-oriented community. • Promotes development within a High Resource Neighborhood Opportunity Area, as identified on the 2025 Affirmatively Furthering Fair Housing Map, which is shown by research to be associated with positive economic, educational, and health outcomes for low-income families, particularly long-term outcomes for children. • Implements, in part, 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 Reduced Overlay applicable to Subarea A only 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. • Reduces the costs to a housing development project and facilitates the development of housing, including affordable housing. Section 5. Amendment to the Petaluma Implementing Zoning Ordinance. Based on its review of the entire record herein, including the February 24, 2025, and March 17, 2025, City Council meeting staff reports, all supporting, referenced, and incorporated documents and all comments received, and the foregoing findings, the City Council amends: IZO Chapter 2 (Zoning Map and Zones) to add the Reduced Downtown Housing and Economic Opportunity Overlay applicable to Subarea A only to the list of Overlay Zones provided in Table 2-1 (Zones) (Exhibit A); IZO Chapter 4 (Zone District and Allowable Land Uses) to add a footnote referencing Section 5.070 to Table 4.3 (Allowed Land Uses and Permit Requirements for Mixed Use Zones) and Table 4.10 (MU1 and MU2 Zone Development Standards) (Exhibit B); and IZO Chapter 5 (Overlay Zones) to add Section 5.070 Reduced Downtown Housing and Economic Opportunity Overlay applicable to Subarea A only (Exhibit C). Section 6. Amendment to the Petaluma Implementing Zoning Ordinance Map. Based on its review of the entire record herein, including the February 24, 2025, City Council meeting staff report, all supporting, referenced, and incorporated documents and all comments received, and the foregoing findings, the City Council amends the Implementing Zoning Ordinance Map to zone applicable parcels to the Reduced Downtown Housing and Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 9 Economic Opportunity Overlay Zone inclusive of Subarea A only (008-063-005; 008-063-006; 008-063-007; 008-063-008; 008-063-009; 008-063-011; 008-063-012; 008-064-002; 008-064-004; 008-064-005; 008-064-007; 008-064-008; 008-064-010), (Exhibit D). Section 7. Posting/Publishing of Notice. 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. Section 8. Effective Date. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. INTRODUCED and ordered published and posted this 17 day of March 2025. ADOPTED this 21 day of April 2025 by the following vote: Ayes: McDonnell, Barnacle, Cader Thompson, Quint, Shribbs Noes: Nau Abstain: None Absent: None Recused: DeCarli Kevin McDonnell, Mayor ATTEST: APPROVED AS TO FORM: Caitlin Corley, City Clerk Eric Danly, City Attorney Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 10 EXHIBIT A AMENDMENT TO CHAPTER 2 (ZONING MAP AND ZONES) OF THE PETALUMA IMPLEMENTING ZONING ORDINANCE TO ADD A REDUCED DOWNTOWN HOUSING AND ECONOMIC OPPORTUNITY OVERLAY TO THE LIST OF OVERLAY ZONES PROVIDED IN TABLE 2-1 (ZONES) Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025 Exhibit A Chapter 2 (Zoning Map and Zones) Ordinance No. 2900 N.C.S.Page 1 of 2 2.010 Purpose. This Chapter establishes the zones applied to property within the City and adopts the City's Zoning Map. 2.020 Zoning Map and Zones. The Council hereby adopts the City of Petaluma Zoning Map (hereafter referred to as the "Zoning Map"), which is on file with the Department. The Zoning Map is hereby incorporated into this Zoning Ordinance by reference as though it were fully included here. A.Zones established. The City of Petaluma shall be divided into zones that implement the Petaluma General Plan. The zones shown in Table 2-1 (Zones) are hereby established, and shall be shown on the Zoning Map as the map is adopted by the Council, or as amended by the Council from time-to-time. B.Interpretation of zone boundaries. If there is uncertainty about the location of any zone boundary shown on the official Zoning Map, the location of the boundary shall be determined by the Director as follows. 1. Where a zone boundary approximately follows a lot line, alley, or street line, the lot line, street or alley centerline shall be construed as the zone boundary, as applicable; 2. If a zone boundary divides a parcel and the boundary line location is not specified by distances printed on the Zoning Map, the location of the boundary will be determined by using the scale appearing on the Zoning Map; and 3. Where a public street or alley is officially vacated or abandoned, the property that was formerly in the street or alley will be included within the zone of the adjoining property on either side of the vacated or abandoned street or alley. Table 2-1 - Zones Zone Symbol Name of Zone General Plan Designation Implemented by Zone Natural, Rural, and Low Density Zones OSP Open Space and Parks Open Space and Parks AG Agriculture Agriculture RR Rural Residential Rural Residential R1 Residential 1 Very Low Density Residential Residential Zones R2 Residential 2 Low Density Residential R3 Residential 3 Diverse Low Density Residential R4 Residential 4 Medium Density Residential R5 Residential 5 High Density Residential Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025 Exhibit A Chapter 2 (Zoning Map and Zones) Ordinance No. 2900 N.C.S.Page 2 of 2 Zone Symbol Name of Zone General Plan Designation Implemented by Zone MH Mobile Home Mobile Home Mixed Use Zones and Commercial Districts C1 Commercial 1 Neighborhood Commercial C2 Commercial 2 Community Commercial MU1A Mixed Use 1A Mixed Use MU1B Mixed Use 1B Mixed Use MU1C Mixed Use 1C Mixed Use MU2 Mixed Use 2 Mixed Use Business, Industrial and Other Special Districts BP Business Park District Business Park I Industrial District Industrial CF Civic Facility District Public/Semi-Public Education PUD Planned Unit District PCD Planned Community District Overlay Zones -FP Floodplain Floodplain -H Historic All -T Theater District -DHEO Downtown Housing and Economic Opportunity Overlay Mixed Use Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 11 EXHIBIT B AMENDMENT TO CHATER 4 (ZONE DISTRICTS AND ALLOWABLE LAND USES) OF THE PETALUMA IMPLEMENTING ZONING ORDINANCE TO ADD A FOOTNOTE TO TABLE 4.3 (ALLOWED LAND USES AND PERMIT REQUIREMENTS FOR MIXED USE ZONES) AND TABLE 4.10 (MU1 AND MU2 ZONE DEVELOPMENT STANDARDS), REFERENCING IZO SECTION 5.070. Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Exhibit B April 21, 2025 Table 4.3 (Mixed Use Zones) & Table 4.10 (MU1 and MU2 Zone Development Standards) Ordinance No. 2900 N.C.S.Page 1 of 7 Mixed Use Zones P(16)Permitted Use CUP Conditional Use Permit Required S Permit Requirement in Specific Use Regulations A Accessory Use TABLE 4.3 Allowed Land Uses and Permit Requirements for Mixed Use Zones —Use Not Allowed Permit Required by ZoneLAND USE TYPE (1) MU1A MU1B (21) MU1C MU2(22) Specific Use Regulations INDUSTRY, MANUFACTURING AND PROCESSING Artisan/Craft Product Manufacturing P P —CUP(6) Catering Service, as a Primary Use P(6)P —P(6) Furniture and Fixture Manufacturing, Cabinet Making —P —— Laboratory – Medical, Analytical —P —— Manufacturing, Light —P(14)—— Media Production P(6)P —P(6) Printing and Publishing P(6)P —P(6) Research and Development —P —— LODGING Lodging – Short-Term Vacation Rentals P(15)P(15)P(15)P(15)Section 7.110 Lodging – Bed and Breakfast Inn (B&B) ———P Lodging – Hotel/Motel P P —P RECREATION, EDUCATION AND PUBLIC ASSEMBLY Cardroom CUP CUP —CUP Chapter 9 Community Meeting Facility CUP CUP CUP CUP Commercial Recreation – Indoor CUP CUP —P(6) Fitness/Health Facility P P —P Library, Museum, Art Gallery P P —P Park P P P P Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Exhibit B April 21, 2025 Table 4.3 (Mixed Use Zones) & Table 4.10 (MU1 and MU2 Zone Development Standards) Ordinance No. 2900 N.C.S.Page 2 of 7 Mixed Use Zones P(16)Permitted Use CUP Conditional Use Permit Required S Permit Requirement in Specific Use Regulations A Accessory Use TABLE 4.3 Allowed Land Uses and Permit Requirements for Mixed Use Zones —Use Not Allowed Permit Required by ZoneLAND USE TYPE (1) MU1A MU1B (21) MU1C MU2(22) Specific Use Regulations School – Elementary, Secondary, or College, Private CUP CUP CUP CUP School – Specialized Education and Training CUP CUP —CUP Studio – Art, Dance, Martial Arts, Music, etc. P P —P Theater, Cinema or Performing Arts CUP CUP —CUP Theater District Ord. 2158 RESIDENTIAL Dwelling, Multiple CUP CUP P — Dwelling, Accessory A,S A,S A,S A,S Section 7.030 Dwelling, Junior Accessory A,S A,S A,S A,S Section 7.035 Dwelling, Single ——P — Home Occupation A,S(2)A,S(2)A,S(2)A,S(2)Section 7.050 Residential Care, 7 or More Clients P(10)P(10)P CUP(10) Residential Care Facility, Adult P(6)P(6)—CUP(10) Residential Care Facility, for the Chronically Ill P(6)P(6)—CUP(10) Residential Care Facility, for the Elderly P(6)P(6)—CUP(10) Residential in Mixed Use Building P(6)P(6)P(6)P(6) Work/Live P(6)P(6)P P(6) RETAIL Adult Oriented Business CUP CUP —CUP Chapter 10 Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Exhibit B April 21, 2025 Table 4.3 (Mixed Use Zones) & Table 4.10 (MU1 and MU2 Zone Development Standards) Ordinance No. 2900 N.C.S.Page 3 of 7 Mixed Use Zones P(16)Permitted Use CUP Conditional Use Permit Required S Permit Requirement in Specific Use Regulations A Accessory Use TABLE 4.3 Allowed Land Uses and Permit Requirements for Mixed Use Zones —Use Not Allowed Permit Required by ZoneLAND USE TYPE (1) MU1A MU1B (21) MU1C MU2(22) Specific Use Regulations Artisan Shop P P —P Auto Parts Sales P P —— Bar, Tavern, Night Club CUP CUP —CUP Chapter 8 Building and Landscape Materials Sales Indoor – 25,000 sf or Less P P —P Building and Landscape Materials Sales Indoor – More Than 25,000 sf CUP(20)CUP(20)—CUP(20) Fueling Station/Gas Station ———— General Retail – 25,000 sf or Less P P —P General Retail –More Than 25,000 sf CUP(20)CUP(20)—CUP(20) Groceries/Specialty Foods – 25,000 sf or Less P P —P Groceries/Specialty Foods – More Than 25,000 sf CUP(20)CUP(20)—CUP(20) Plant Nursery P P —— Restaurant, Café, Coffee Shop P P CUP P SERVICES – BUSINESS, FINANCIAL, PROFESSIONAL ATM P P P P Bank, Financial Services P P —P Business Support Service P P —P Medical Services – Health Care Facility P(6)P(6)—P(6) Medical Services – Major P P —P Medical Services – Minor P(6,11)P(6,11 P P(6, 11) Office – Government P P P P(6) Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Exhibit B April 21, 2025 Table 4.3 (Mixed Use Zones) & Table 4.10 (MU1 and MU2 Zone Development Standards) Ordinance No. 2900 N.C.S.Page 4 of 7 Mixed Use Zones P(16)Permitted Use CUP Conditional Use Permit Required S Permit Requirement in Specific Use Regulations A Accessory Use TABLE 4.3 Allowed Land Uses and Permit Requirements for Mixed Use Zones —Use Not Allowed Permit Required by ZoneLAND USE TYPE (1) MU1A MU1B (21) MU1C MU2(22) Specific Use Regulations Office – Headquarters, or Processing P(6)P —P(6) Office – Professional, Administrative P P P P(6) SERVICES – GENERAL Adult Day Program CUP CUP CUP P Child Care Center P(6)P(6)—P(6) Child Day Care – Large Family ——A(4)—Section 7.060 Child Day Care – Small Family A(3)A(3)A(3)A(3) Kennel, Animal Boarding —CUP —— Meals Assembly Business P(12)——— Mortuary, Funeral Home CUP ——— Personal Services P P —P Personal Services – Restricted P P —P Public Safety Facility P P P P Vehicle Services – Minor Maintenance/Repair —P —CUP Veterinary Clinic, Animal Hospital P(8)P(8)—P(8) TRANSPORTATION, COMMUNICATIONS, INFRASTRUCTURE City Water and Sewer Facility P P P P Parking Facility, Public or Commercial CUP ——CUP Telecommunications Facility S S S S Section 7.090 and Muni Code 14.44 Utility Facility CUP CUP —CUP Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Exhibit B April 21, 2025 Table 4.3 (Mixed Use Zones) & Table 4.10 (MU1 and MU2 Zone Development Standards) Ordinance No. 2900 N.C.S.Page 5 of 7 Mixed Use Zones P(16)Permitted Use CUP Conditional Use Permit Required S Permit Requirement in Specific Use Regulations A Accessory Use TABLE 4.3 Allowed Land Uses and Permit Requirements for Mixed Use Zones —Use Not Allowed Permit Required by ZoneLAND USE TYPE (1) MU1A MU1B (21) MU1C MU2(22) Specific Use Regulations Zero Emission Vehicles (Battery Charging Station) A(18)A(18)A(18)A(18) Zero Emission Vehicles (Hydrogen Fuel Cell Station) CUP(19)——CUP(19) Key to zone symbols MU1A - Mixed Use 1A MU1C - Mixed Use 1C MU1B - Mixed Use 1B MU2 - Mixed Use 2 Notes: 1 See glossary for land use definitions. 2 Home occupation permit and business license required. 3 Business license required. 4 Business license and compliance with Section 7.060 required. 5 Site plan and architectural review required and compliance with Section 7.040 required. 6 Use allowed only on an upper floor or behind a ground floor street fronting use; use in other locations allowed subject to a CUP. 7 Permitted use (P) if limited to a maximum of 5,000 square feet on the ground floor. 8 A CUP is required for overnight board and care. 9 Neighborhood serving and open at lunch. 10 Allowed only on floors above the ground floor. 11 Urgent care facilities may be located on the ground floor as a street fronting use. 12 Allowed only in a shopping center. 13 Use permitted only on Lakeville Highway between Baywood Drive and Casa Grande Road. 14 See Section 21.030 (Non-Residential Uses Abutting Residential Uses). 15 Short-term vacation rental permit, business license and transient occupancy tax certificate required (Section 7.110). 16 Use must be at least 600 feet from a school or a childcare center, at least 200 feet from parks, youth centers, or the library, and 100 feet from residential districts as measured from property line to property line. 17 All cannabis businesses must obtain an annual commercial cannabis permit. 18 Pursuant to Government Code Section 65850.7, this Zoning Ordinance requires no permit for stations. 19 Allowed with CUP when located on site of an existing fueling station/gas station land use. 20 To be processed as a major conditional use permit at the discretion of the Planning Commission. 21 Refer to Section 5.080 for parcels in the Fairgrounds Overlay Zone. 22 Refer to Section 5.070 for parcels in the Downtown Housing and Economic Opportunity Overlay Zone. Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Exhibit B April 21, 2025 Table 4.3 (Mixed Use Zones) & Table 4.10 (MU1 and MU2 Zone Development Standards) Ordinance No. 2900 N.C.S.Page 6 of 7 Table 4.10. MU1 and MU2 Zone Development Standards Requirement by Zone Development Feature MU1 Mixed Use 1 MU Mixed Use 2(4) Lot size Minimum area and width required for each lot in a new subdivision Minimum area NA 2,000 sf Minimum width NA NA Minimum depth NA NA Setbacks Primary structure Minimum setbacks required. See Chapter 12 for modifications, reductions, and encroachments. See Chapter 7 for any setback requirements applicable to a specific land use. Front 0 ft 0 ft minimum 10 ft maximum Side – Interior (each) 0 ft Abutting an R district: 15 ft, plus 1 ft of additional setback for each foot of building height over 20 ft 0 ft minimum 10 ft maximum Abutting an R district: 15 ft, plus 1 ft of additional setback for each foot of building height over 20 ft Side – Street side 0 ft 0 ft minimum 10 ft maximum Rear 0 ft Abutting an R district: 15 ft, plus 1 ft of additional setback for each foot of building height over 20 ft 0 ft Abutting an R district: 15 ft, plus 1 ft of additional setback for each foot of building height over 20 ft Garage front NA NA Detached accessory structure Front Not Permitted Not Permitted Side – Interior (each)4 ft 4 ft Side – Street 10 ft 10 ft Rear 5 ft 5 ft Rear – Accessory dwelling 4 ft 4 ft Site coverage Maximum coverage2 Floor Area Ratio. The gross floor area of all buildings on a Site Coverage. The percent of the total site area covered by structures, open or enclosed, Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Exhibit B April 21, 2025 Table 4.3 (Mixed Use Zones) & Table 4.10 (MU1 and MU2 Zone Development Standards) Ordinance No. 2900 N.C.S.Page 7 of 7 Requirement by Zone Development Feature MU1 Mixed Use 1 MU Mixed Use 2(4) lot divided by the building site area. excluding uncovered steps, patios and terraces. 2.5 floor area ratio 80% 100% for structured parking Height limit Maximum height Maximum allowable height of structures. See Glossary for height measurement requirements, and Chapter 12 for height limit modifications. Principal building 30 ft1 45 ft Accessory structure 20 ft 20 ft Usable open space 30 sf/unit2 30 sf/unit2 Fencing, landscaping, and tree preservation See Chapters 13, 14, and 17 Parking See Chapter 11 Signs See Chapter 20 Notes: 1 When the building is more than 30 feet from an abutting property line, one additional foot of height is permitted with each additional foot of setback over 30 feet for a maximum building height of 45 feet. 2 See Section 7.030. Does not apply to accessory dwelling units 800 square feet or less. 3 The minimum depth of usable open space is three feet. Usable common open space is strongly encouraged. 4 Unless specifically prescribed in Section 5.070, Downtown Housing and Economic Opportunity Overlay Zone, all other development standards shall apply. Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 12 EXHIBIT C AMENDMENT TO CHAPTER 5 (OVERLAY ZONES) OF THE PETALUMA IMPLEMENTING ZONING ORDINANCE TO ADD SECTION 5.070 ESTABLISHING A REDUCED DOWNTOWN HOUSING AND ECONOMIC OPPORTUNITY OVERLAY ZONE. Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025Exhibit C 5.070 (Downtown Housing and Economic Opportunity Overlay Zone) Ordinance No. 2900 N.C.S.Page 1 of 6 5.070 Downtown Housing and Economic Opportunity Overlay Zone. A:Purpose. It is the intent of the Downtown Housing and Economic Opportunity Overlay Zone to facilitate the development of residential uses, provide for orderly economic development, ensure the preservation of historic buildings, cultural resources, and the Commercial Historic District, strengthen and expand pedestrian activity through new design and land use controls, and incorporate sites with the greatest opportunity for redevelopment activity. The regulations established for this district shall apply to any property described in section 5.070.B to include the development of new floor area or new buildings, of any size. B:District Boundary. The proposed Downtown Housing and Economic Development Overlay shall apply to Subarea A as shown in Figure 5.1 below. The boundary of the Downtown Housing and Economic Opportunity Overlay Zone is generally described follows: 1.Subarea A: 13 parcels within two city blocks bounded by B Street, Petaluma Boulevard South, D Street and 4th Street; Figure 5.1: District Boundary Downtown Housing and Economic Development Overlay C:Ground Floor Uses, Pedestrian/Façade Activation Zone and Ground Floor Residential Use Zone. To continue the land uses and forms established by the parcels that abut or confront the subarea and to allow for specific land uses and the design of new buildings to reflect the characteristics and the context of the subarea a “Pedestrian/Façade Activation Zone” & a “Ground Floor Residential Use Zone” will apply to the subarea. 1.Pedestrian/Façade Activation Zone & Ground Floor Residential Use Zone Established. A Pedestrian/Façade Activation Zone & a Ground Floor Residential Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025 Exhibit C 5.070 (Downtown Housing and Economic Opportunity Overlay Zone) Ordinance No. 2900 N.C.S.Page 2 of 6 Use Zone is established as shown in Figures 5.2. Land uses and ground floor development standards apply as provided for in this section. 2.Purpose. The Pedestrian/Façade Activation Zone is intended to enhance the pedestrian experience to ensure that new buildings are occupied by pedestrian- oriented uses and that they present attractive building facades in specific locations to reflect the land use pattern and vibrancy of active pedestrian-oriented streets established in the historic core of the downtown. The Ground Floor Residential Use Zone is intended to create new opportunities for residential development and to provide a land use transition from the retail and service uses provided in the Downtown core to the lower-intensity retail and residential areas beyond the Downtown. 3.Pedestrian/Façade Activation Zone. Permitted Uses in any new ground floor area within 30 feet of the public right-of-way in the Pedestrian/Façade Activation Zone shall be as follows, and each use, as used in this Section, shall be deemed a ground floor activating use: •Artisan Shop •Library, Museum, Art Gallery •Bank, Financial Services •Personal Services •Fitness/Health Facility •Restaurant, Café, Coffee Shop •General Retail, 25,000 sf or Less •Studio - Art, Dance, Martial Arts, Music, etc. •Groceries/Specialty Foods, 25,000 sf or Less 4.Ground Floor Uses. New ground floor area not identified as a Pedestrian/Facade Activation Zone may be occupied by any use identified in Table 4.3 of Chapter 4. 5.Multi-family Residential Allowed in Specific Locations. Multi-family residential uses shall be a permitted use on the ground floor in any portion of a parcel that is not within the Pedestrian/Façade Activation Zone. 6.Pedestrian/Façade Activation Development Standards. Additional development standards apply to the ground floor facades of the portion of new building or new floor area constructed within the Pedestrian/Façade Activation Zone. These development standards are provided in Table 5.1, below. Table 5.1 Pedestrian/Façade Activation Development Standards Feature Standard Applies to First Floor: Storefront Transparency, minimum glazing 60%Facades facing sidewalks, pedestrian walks, or publicly accessible outdoor spaces Blank Walls, maximum length 30’Facades facing sidewalks, pedestrian walks, or publicly accessible outdoor spaces Interior Partitions or shelving above 36” in height when parallel with storefront, minimum setback 30’ Tenant spaces facing sidewalks, pedestrian walks, or publicly accessible outdoor spaces; Does not apply to any partition that is perpendicular to the storefront or any shelving that is abutting a wall Window Signs, maximum coverage 15%Windows facing sidewalks, pedestrian walks, or publicly accessible outdoor spaces Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025Exhibit C 5.070 (Downtown Housing and Economic Opportunity Overlay Zone) Ordinance No. 2900 N.C.S.Page 3 of 6 Figure 5.2: Subarea A, Pedestrian/Facade Activation Zones + Residential Allowed Zones D:Development Standards, General. Development Standards in the Downtown Housing and Economic Development Overlay Zone shall be as provided for in Table 4.10 of Chapter 4, except as provided for in Table 5.2, below. Table 5.2: Development Standard Setbacks Front 0’ Rear 0’ Street-side 0’ Interior Side 0’ Height1 45’ Max With Conditional Use Permit2 60’ Max With Conditional Use Permit3 75’ Max Minimum Ground Floor Height 14’ floor-to-floor for any Building over 45’ Stepbacks Per Tables 5.2 through 5.4 Lot Coverage 80% Max With Conditional Use Permit4 100% Max Floor Area Ratio 6.0 Max 1 Under the Overlay, new buildings to be constructed above the 45-foot height limit would not be subject to the height exceptions provided for in Section 12.020. 2 Additional height above 45 feet may be granted, subject to subsection F, below. 3 Additional height above 60 feet may be granted, subject to subsection G, below. 4 Additional lot coverage above 80% may be granted, subject to subsection H, below. E:Development Standards, Stepbacks Apply. Upper floor stepbacks apply as shown in Tables 5.3 to 5.5, to require that any portion of a building above a certain height be separated from a property line. As used in this subsection, the “Primary Street Frontage” stepbacks provided in Tables 5.3 to 5.5 apply to any parcel that abuts Petaluma Boulevard Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025Exhibit C 5.070 (Downtown Housing and Economic Opportunity Overlay Zone) Ordinance No. 2900 N.C.S.Page 4 of 6 South, Kentucky Street, Fourth Street, Western Avenue, and Washington Street, and “Other Street Frontage” is any other street. The stepbacks shall include usable balconies, usable open space, or be landscaped, and may not be used for mechanical equipment, storage, or other non-active uses. Table 5.3 Stepback: General Stepback (Based on Building Height) 0-45’/4-stories Above 45’/4-stories (whichever is less) Above 60’/5-stories (whichever is less) Primary Street Frontage NA 8’ Min 16’ Min Other Street Frontage NA 5’ Min 5’ Min Table 5.4 Stepback: Confronting a Residential Use Stepback (Based on Building Height) 0-30’/2-stories Above 30’/2- stories (whichever is less) Primary Street Frontage NA 10’ Min Other Street Frontage NA 5’ Min Note: Additional 10’ stepback to be applied for every story above 30’/2 stories Table 5.5 Stepback: Abutting Historic Resource Stepback (Based on Building Height) 0-30’/2-stories Above 30’/2-stories (whichever is less) Above 45’/4-stories (whichever is less) Above 60’/5-stories (whichever is less) Primary Street Frontage NA 0 8’ Min 16’ Min Other Street Frontage NA 0 5’ Min 5’ Min Interior Side, abutting historic resource NA 10’ Min 10’ Min 10’ Min Rear, abutting historic resource 0’8’ Min 8’ Min 8’ Min F:Criteria to Exceed 45 feet. The Planning Commission may approve a Conditional Use Permit to allow for additional height up to 60 feet pursuant to the findings listed in this subsection and the review criteria set forth in Section 24.060.E: 1. That the additional height is consistent with the applicable purposes of the Overlay; 2. That the additional height makes a positive contribution to the overall character of the area and that the building will be compatible with its surroundings. The “positive contribution” and “compatibility” will be assessed using a combination Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025Exhibit C 5.070 (Downtown Housing and Economic Opportunity Overlay Zone) Ordinance No. 2900 N.C.S.Page 5 of 6 of visual studies, line-of-sight drawings, photo simulations, 3-D modeling, and view shed analysis; 3. That the additional height would not adversely affect the exterior architectural characteristics or other features of the property which is the subject of the application, nor adversely affect its relationship in terms of harmony and appropriateness with its surroundings, including neighboring structures, nor adversely affect the character, or the historical, architectural, or aesthetic interest or value of the district; 4. That the additional height will not result in unreasonable restrictions of light and air to adjacent properties or the public right-of-way, or otherwise be detrimental to the public health, safety, or welfare; 5. That the building design expresses a relationship to an existing datum line or lines of the street wall or adjacent historic resource, if any; and 6. That the overall building design and the use of the site demonstrate exceptional architecture/design. “Exceptional” architecture/design may be demonstrated by at least three of the following: a. The use of innovative, creative or original architectural concepts, materials, or building techniques; b. The use of visual elements that contribute positively to the built environment, such as well-proportioned facades, pleasing materials, and unique features; c. The use of innovative building systems or forms, and/or the use of creative design, to increase building efficiency and to reduce energy consumption; d. The use of low impact development and green infrastructure features in sustainable design and landscaping; or e. The use of high-quality building materials that contribute to long-term durability and visual quality. The determination of exceptional architecture/design shall be guided by the input of a qualified professional chosen by the City. G:Criteria to Exceed 60 feet. The Planning Commission may allow for additional height up to 75 feet, if a Conditional Use Permit is granted per subsection 5.070.F, above, and when a proposed project includes at least 1 of the community benefits described in 1 & 2, and 1 of the community benefits described in 3, 4, or 5, below: 1. Improves the existing streetscape by providing widened sidewalks, additional street trees, new mid-block walkways/paseos, public plazas, parks, etc. For a project that would widen the sidewalk by increasing the ground floor building setback, a public outdoor amenity space shall be included in the design, and this space shall be designed and configured to provide adequate space for pedestrian movement and activity; or 2. Provides publicly accessible private open space, such as a street-level park or rooftop open space that is open to the public at least 8 hours per day and at least 120 days per year; and Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025Exhibit C 5.070 (Downtown Housing and Economic Opportunity Overlay Zone) Ordinance No. 2900 N.C.S.Page 6 of 6 3. Respects and/or preserves cultural, historical, or archaeological resources that exist or occur onsite or within the Overlay; or 4. Exceeds the minimum number of Inclusionary Dwelling units required by Section 3.040; or 5. Provides all required parking below grade. H:Criteria to exceed 80% Lot Coverage. The Planning Commission may approve a Conditional Use Permit to allow for additional lot coverage of up to 100% pursuant to the review criteria set forth in Section 24.060.E, if any one or more of the following are true for a project: 1. The development improves the existing streetscape by providing widened sidewalks, additional street trees, new mid-block walkways/ paseos, public plazas, parks, etc.; 2. The additional lot coverage would reflect the prevailing development pattern established by the existing development within the block or abutting block; 3. The development includes adequate provision for recycling and solid waste; 4. The development includes adequate space for street trees; or 5. The development includes other measures to enhance the pedestrian environment. I:Jobs/Housing Balance. Any application for a non-residential project or a mixed use project with a non-residential component that seeks to build above 45 feet pursuant to Section 5.070(F), must include an analysis of the impact of the project on the jobs-housing balance in the City, including how much demand for affordable housing the project will create as compared to the amount of affordable housing created as part of the project. The analysis shall be based on available pertinent information including information provided by the applicant estimating the number of permanent jobs to be created in the operations of the project, type of job (part-time or full-time), wages, and benefits. The developer may submit updated information to the City at any time during the application process. This additional information is to allow the City, to the extent reasonably possible to disclose the foreseeable impact of the project on the jobs-housing balance in Petaluma. J:Sunset Provision. Unless otherwise amended by the City Council, this ordinance shall expire on the effective date of a Zoning Ordinance that implements the adopted 2040 General Plan. Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D Ordinance No. 2900 N.C.S. Page 13 EXHIBIT D AMENDMENT TO THE ZONING MAP OF THE CITY OF PETALUMA TO ZONE APPLICABLE PARCELS TO A REDUCED DOWNTOWN HOUSING AND ECONOMIC OPPORTUNITY OVERLAY ZONE, INCLUSIVE OF SUBAREA A ONLY (008-063-005; 008-063-006; 008-063-007; 008-063-008; 008- 063-009; 008-063-011; 008-063-012; 008-064-002; 008-064-004; 008-064-005; 008-064-007; 008-064-008; 008-064-010) Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D April 21, 2025Exhibit D Zoning Map Amendment Ordinance No. 2900 N.C.S.Page 1 of 1 Docusign Envelope ID: 093A0E70-3CB4-4848-AE37-BFBE91989B4D