Council clarifies downtown mixed-use rules to require sales-tax-generating ground-floor uses

Pleasant Grove — The City Council on Feb. 17 unanimously adopted Ordinance 2026-006, amending downtown mixed-use qualifying provisions so that ground-floor commercial space must generate sales tax to count toward the residential-to-commercial credit ratio.

Director Cardenas told the council the amendment is intended to ensure that when developers build residential units above commercial spaces, the ground floor produces sales tax revenue rather than non‑retail professional services that do not generate sales tax. “We have always required sales tax,” Cardenas said when explaining the change; the Planning Commission had forwarded a unanimous recommendation of approval.

Council members asked whether professional services would be prohibited; staff clarified professional services can still locate downtown but they simply would not count for the sales-tax credit used to unlock higher residential density. The change is intended as an interim clarification while a downtown master plan is completed.

There were no public speakers at the hearing; Council member Rogers moved for adoption and Council member Anderson seconded. The council’s roll-call voice vote was unanimous.

Next steps: The downtown master‑plan process may change these standards later, but for now developers seeking mixed use credit must include retail or other sales-tax-producing uses on the ground floor.