Grass Valley planning commission recommends SB 10 ordinance to allow up to 10 dwelling units in town core

The Grass Valley Planning Commission on Jan. 21 voted to recommend that the City Council adopt an ordinance, pursuant to California Senate Bill 10 (SB 10), to allow up to 10 dwelling units per parcel in the city’s town core zoning district. The motion passed with three votes in favor and one commissioner recused.

City planner Amy Wilson told the commission the draft ordinance would use SB 10 to enable conversions of underused upper‑level and basement spaces to residences. She said the proposal would cap residential density at 10 dwelling units per parcel, require a recorded restrictive covenant preventing conversion of those new units to short‑term rentals, and require an off‑street parking agreement providing one parking space per unit located within 1,300 feet of the parcel. Wilson also said the ordinance would prohibit conversion of ground‑floor street‑fronting storefronts to residential use and must designate at least two‑thirds of the parcel for residential use to qualify under SB 10.

The measure was foregrounded as a way to encourage new housing in the downtown core by converting underused non‑ground level commercial space. Wilson said staff began examining SB 10 after a request from council in 2023 and an RFP for outside study did not result in proposals; staff then pivoted to SB 10 as a regulatory path.

Public commenters were split. Robin Galvin Davies, executive director of the Greater Grass Valley Chamber of Commerce and the Grass Valley Downtown Association, said the groups “are very much in support of SB 10” and argued upper‑story housing would revive the downtown, adding, “There are no short term rentals available is absolutely imperative.” Property owner Craig Hamilton said converting upstairs space into apartments would support downtown vitality and reduce vacancy, noting his own site allocated parking for four units and observing conversions can be more space‑efficient than offices: “I think that having residences downtown, you know, really helps the vitality of a downtown.”

Other commenters raised concerns about parking and impacts on long‑term housing supply. Cheryl Heward said Mill Street parking is already scarce and asked whether conversions would worsen the problem. A virtual commenter, Matthew Kelsey, warned that short‑term rentals and over‑conversion can reduce long‑term housing availability and strain evacuation and infrastructure capacity. Commissioners noted the city has hired or will hire a parking consultant and that parking availability and the two‑thirds residential threshold will limit how many properties can practically use the ordinance.

Commissioners discussed options to limit the local implementation of SB 10. One commissioner said a local cap lower than the state maximum may be appropriate — for example, a number lower than 10 per parcel — and suggested staff could prepare additional analysis if the commission wanted a different numeric cap. Staff noted the Planning Commission’s action is a recommendation; the City Council would be the adopting body. Wilson also warned that to rely on SB 10’s streamlined process the city would need to adopt the ordinance before Jan. 1, 2029, but any adopted ordinance could later be amended or repealed by Council.

The commission moved to recommend the ordinance to City Council. The roll call recorded three “yes” votes from commissioners present; one commissioner recused. The commission did not specify a named mover/second in the meeting record. The recommendation now returns to City Council for formal consideration and any environmental review or ordinance drafting Council directs.

Context: SB 10 is a 2020 California statute that provides a streamlined local approval option for certain ministerial housing density increases; local implementation must follow state criteria. The city planner described the proposal as limited to conversions within existing town core buildings, and as written would not permit use of the new units as short‑term rentals.