Planning commission recommends council adopt "Business Friendly Hayward" code and map updates, sets new data center review threshold

The Hayward Planning Commission on a unanimous vote recommended that the City Council adopt a package of municipal-code text amendments, zoning map revisions and master-fee-schedule changes aimed at streamlining permitting for businesses while creating extra review for certain uses.

Senior planner Elizabeth Blanton told the commission the package, the third presentation to the commission, consolidates commercial sections of the code, relaxes permitting for uses such as small markets and breweries, and updates definitions and procedures. "Tonight, assistant planner Sachiko Riddle and I are proud to present you with the final proposed municipal code changes and zoning map revisions for the Business Friendly Hayward project," Blanton said during the presentation.

Staff said the revisions are largely intended to make it easier for desirable businesses to open while preserving public protections. Among the specific changes, staff recommended retaining the existing truck-terminal definition after industry input; requiring a conditional use permit for any massage establishment; and creating a two-tiered review for data centers. Under the proposal, data centers that generate less than 50 megawatts would be reviewed through a conditional-use-permit process before the planning commission; data centers that generate 50 megawatts or more would require a newly created "major conditional use permit" and go to the City Council for final approval. Staff said the change reflects council direction to be the final decision-maker for very large data-center projects.

Assistant planner Sachiko Riddle described several new or refined permit types that are part of the package, including a pilot for accessory commercial units (ACUs) aimed at single-family properties south of Tennyson Road, a limited entertainment permit for amplified events (staff described ranges of roughly 10 to 100 attendees for that permit type depending on the performance standard), and a minor temporary use permit intended for low-impact events (staff said some temporary private outdoor events would be covered for up to 1,000 people). "ACUs are small businesses that are run from the home, but unlike a home office, they'll see foot traffic from the surrounding community," Riddle said.

Commissioners pressed staff on several details. One commissioner asked why a 50-megawatt threshold was chosen; staff said the threshold aligns with state-level CEQA processes for large energy-using facilities and with council direction to route very large projects to council. Staff added that discretionary entitlements such as major site-plan review typically trigger CEQA regardless of use type.

During public comment, Leslie Urista, owner of Westa Market, said she had been denied an off-sale type 20 beer-and-wine license because of an approximately 500-foot buffer and urged staff to treat grocery stores differently from liquor stores so small grocers can obtain beer-and-wine licenses. "I applied for the off sale type 20, beer and wine licensing and was denied due to that strong 500 foot radius," Urista said; staff responded that the proposed updates would allow certain grocery-style markets to sell beer and wine by right and that distancing requirements will remain focused on liquor stores.

Votes at a glance

- Municipal-code text amendments (attachments 3'13): motion to recommend adoption (mover: commissioner on the floor); passed (roll-call recorded; amendment circulated by staff was included). - Zoning map revisions (attachment 14): motion to recommend adoption; passed unanimously by roll call (one commissioner absent). - Master fee schedule (attachment 15): motion to recommend adoption; passed unanimously by roll call (one commissioner absent).

What happens next

Staff said the commission's recommendation and the final draft will go to the City Council for a public hearing scheduled on April 21 for final action. If adopted by council, the revised code and maps would change permitting pathways for small businesses, create the MCUP for very large projects, and launch a limited ACU pilot for single-family properties in the designated pilot area.

Sources and context

The article is based on the staff presentation and Q&A at the Planning Commission hearing; direct quotes are from staff and public commentors recorded in the hearing transcript. The planning commission's recommendations are advisory to the City Council, which will take the final vote.