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Staff proposes two-year downtown fee-waiver to attract restaurants, arts and retail
Summary
City staff presented a proposed two-year downtown fee-waiver program (April 1, 2026–April 1, 2028) to waive select city development fees for targeted uses — restaurants, arts studios, event centers and retail — while excluding utility and business-license fees; staff said the program is intended to spur rehabilitation without a general-fund appropriation.
City staff presented a two-year downtown fee-waiver program intended to encourage rehabilitation and new commercial activity along Broadway, Main and State Street between 4th and 8th streets. Angel, a staff presenter, said the program would waive specified city fees for eligible uses including arts studios, restaurants, cafes, recreational facilities and retail while excluding water and sewer charges, capacity fees, sales taxes and business license fees.
The proposal, described as a two-year pilot running 04/01/2026 to 04/01/2028, was framed as consistent with the city’s strategic plan (Goal 5.7) and prior zoning changes that permitted more downtown housing. “We looked at what residents said in surveys and found strong support for restaurants, cafes and entertainment uses,” Angel said. A staff packet showed eligible waivers would include building permit fees, planning and zoning fees, encroachment fees and certain development-impact fees; applicants would still be responsible for external agency fees and any special plan-check costs.
Staff told the council the city would track waived fees, project type and outcomes and prepare a report before the program expires so the council could decide whether to continue, modify or end it. Angel said staff expects outreach via the city website, social media and coordination with the Small Business Development Center to reach property owners and first-time entrepreneurs.
Councilmembers asked about outreach, eligibility for conditional-use permits (staff confirmed those planning fees would be eligible) and whether outside investors could apply; staff said the program would be open through public notice and the application would be submitted to the Community Development Department for review. Several council members praised the ad hoc downtown committee that developed the framework and cited similar successful programs in other California cities.
No formal council action to adopt the program was recorded in the transcript during this presentation. Next steps staff outlined include finalizing application guidelines, publicity plans and internal tracking of waived fees and projects.
