Hayward planners outline package to speed permitting, activate downtown storefronts

The Hayward City Council heard a work session presentation proposing changes to municipal rules and processes intended to make it easier and cheaper for businesses to open and operate, with a particular focus on activating vacant downtown storefronts.

Planners said the “Business Friendly Hayward” project will aim to “streamline permitting for businesses” and to “activate vacant and underutilized properties and storefronts downtown,” Elizabeth Lanton, senior planner, told the council. The staff presentation included research, community outreach and best-practice examples from other Bay Area cities and recommended targeted code changes and new programs.

The effort grew from a spring-and-summer review of the city’s strategic roadmap, downtown plans and new state laws, planners said. Staff reported a business-owner survey rating Hayward’s permitting experience 3.34 of 5 and a community satisfaction score of 2.61 for variety of businesses. “The length of approval times and information either being unclear or inaccessible were amongst the biggest challenges that business owners face,” Sachiko Riddle, assistant planner, told the council.

Consultants Wincom Consultants and retail specialist Metrovation supplied model programs and a commercial market analysis. The report identified strengths — a central, accessible location and a historic street grid — and weaknesses including one-way circulation (the “loop”), vacant or poorly maintained buildings and uncertain theater status. Metrovation’s analysis also segmented customers within a one-mile radius into diversely aged singles who favor dining and nightlife, and families who favor family-style dining, grocery and recreation.

From that analysis staff proposed a set of potential code and program changes: faster, lower-cost permitting tracks for temporary “pop up” uses and small live-entertainment events; reducing or eliminating use-permit requirements for common small businesses (for example modest beer-and-wine sales, light manufacturing for maker-type businesses and small health clubs); establishing entertainment zones where additional allowances could apply during events; creating a formal parklet program to retain outdoor dining; and piloting “accessory commercial units” (ACUs) to allow small storefronts attached to homes in mixed-use areas as incubators for microbusinesses.

Staff emphasized there are tradeoffs. Planning commissioners recommended caution on ACUs until the city better regulates and supports street vendors and on widespread parklets because parklets occupy public right-of-way and parking spaces. “We want to make sure we’re not overusing use permits and inadvertently blocking desirable types of businesses from opening up shop here,” Lanton said. The planning commission also asked staff to evaluate enforcement capacity before expanding temporary-use programs.

Public commenters echoed support for more businesses downtown while raising safety and homelessness concerns. Teresa Resendiz of Hayward Concerned Citizens urged limits on “open carry” and certain adult-oriented businesses if the city wants to attract families. Several callers, including Suzanne Luther and a speaker identified as TJ from Hayward Concerned Citizens, urged stronger enforcement against aggressive street vending and encampments that they said deter customers and have led some existing merchants to consider closing.

Council members pressed staff on several operational points: how the outreach survey breaks down by ZIP code and neighborhood; measures of success and timelines; and coordination across departments to reduce repeated reviews and conflicting instructions for applicants. “Some of the processes that we are looking to address ... will be internal processes to improve our coordination among our different divisions,” Sarah Bowser, development services director, said, noting biweekly interdepartmental review meetings and upcoming coordination sessions between planning, public works and fire.

Council members proposed piloting entertainment zones (for example, a test area on B Street for evening events), stepping up targeted workshops for prospective small developers and entrepreneurs, and trying lower-cost temporary-activation permits for pop-ups and food trucks. Staff said the next step is drafting specific municipal-code revisions and internal workflow proposals and returning to council with concrete ordinance language and an internal process plan.

If council approves the code changes later, staff said the work program anticipates completion and a packaged draft for adoption in early 2026. The presentation materials and an interactive survey dashboard are posted on the project web page and will inform the ordinance drafting and pilot designs.