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San Carlos council wrestles with formula-business rules and possible parking maximums
Summary
At a study session, staff proposed easing review of retail "formula businesses" (chain stores) by switching some applications from conditional use permits to minor use permits, and suggested considering off-street parking maximums as a TDM tool. Council generally supported more study and outreach before formal changes.
San Carlos staff asked the city council Aug. 25 to weigh policy changes aimed at diversifying downtown retail and cutting regulatory friction for some applicants.
Planning Manager Lisa Porus described two distinct regulatory ideas: first, converting retail formula-business reviews from a conditional-use-permit process (Planning & Transportation Commission) to a minor-use-permit process handled by the zoning administrator to reduce time and cost for applicants; and second, evaluating off-street parking maximums for new development as a Transportation Demand Management (TDM) measure tied to state and regional VMT and grant-eligibility policies.
Why it matters: formula-business limits were adopted to protect locally owned retailers in the downtown core. Any change could affect commercial composition, vacancy dynamics and neighborhood character. Off-street parking maximums are a tool cities use to reduce drive-alone trips, but they also affect developers’ project economics and residents’ expectations about car ownership and parking availability.
What staff proposed - Formula businesses (retail): allow limited regulatory relief by changing retail formula-business review from a Conditional Use Permit to a Minor Use Permit. Staff framed this as a small step to make the city more competitive for new retail while retaining review criteria; approvals would remain discretionary and could be escalated to Planning Commission or City Council for controversial cases. - Personal services: staff proposed requiring Minor Use Permits in some downtown zones where current code limits such uses; staff said current rules (hour limits, 300-foot buffers, limits on expansion) are restrictive and have blocked some inquiries. - Off-street parking maximums: staff presented a white paper and two-tiered maximums for new residential and commercial development as a TDM tool to reduce vehicle miles traveled, lower development costs and improve grant competitiveness. Consultants noted developers can still seek state density-bonus concessions that may allow departures from local maxima.
Council response and next steps Council members voiced a mix of caution and openness. Several asked for more analysis and outreach before delegating review authority to the zoning administrator. Council members asked staff to: (1) hold dedicated outreach with downtown retailers; (2) return with clearer objective criteria that the zoning administrator would use; (3) treat the parking-maximum concept as a study/action item in the specific plan rather than an immediate ordinance change; and (4) assess how any changes would affect the local retail mix and economic development goals.
Public comments reflected mixed views: some downtown business owners and brokers said easing review could attract stable retail; others and some council members said the city should preserve protections for local, independent merchants.
Staff will include the proposal as a potential action in the public draft Downtown Specific Plan and pursue a follow-up study session and targeted outreach before any ordinance changes.
