Council introduces amendment to allow banks in more commercial zones; critics warn about downtown vacancy risk
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Summary
The council introduced an ordinance to permit banks and credit unions in additional commercial zones (CN, CR, MXD, MXC, MXN), a change staff said will expand site options beyond the downtown MXD district. The first reading was introduced and waived; the motion passed 3-0 with one abstention.
The Hanford City Council on Oct. 21 introduced an amendment to the municipal zoning code that would expand where banks and credit unions are allowed to operate in the city.
Under current rules, staff said, banks’ primary branches were limited largely to the downtown (MXD) district; secondary branches could locate in a small set of other commercial zones. Staff proposed removing the main/secondary distinction and allowing banks and credit unions outright in CN (neighborhood commercial), CR (regional commercial), MXD (mixed downtown), MXC (mixed commercial) and MXN (mixed neighborhood) zones.
Staff said the change was intended to respond to market demand: developers and prospective tenants have repeatedly said there are few suitable sites in the MXD downtown district for new branch locations. "The proposal would allow banks to go into other commercial areas," said Jason Waters, the city planning staff lead, summarizing staff’s analysis and noting consistency with economic development policies in the general plan.
Council action and public comment
Council introduced and waived first reading of ordinance 2025-10 (zone text amendment 2025-13). The motion carried 3-0 with one abstention. Several public commenters raised concerns about downtown vitality; Bob Ramos and others said allowing banks to move outside downtown could accelerate vacancies and hollow out the historic core.
Why it matters
Staff framed the change as a business-friendly adjustment to allow banks to locate in a broader set of commercial areas where space is available and to help meet demand from residents and businesses. Opponents said the city should protect downtown by keeping key retail and services concentrated in the MXD district to support foot traffic and the preservation of historic commercial buildings.
What’s next
Because council introduced and waived first reading, ordinance materials will be published in the packet for a future meeting where the council may adopt the ordinance. Staff will continue outreach and provide any additional analysis requested by council members.
Speakers quoted
"The proposal would allow banks to go into other commercial areas," — Jason Waters, staff presentation.
"That’s what the council at that time wanted to do because they could see by opening it up for these businesses to go anywhere downtown would suffer," — Bob Ramos (public comment).