Palo Alto introduces temporary ordinances to limit default SB79 upzoning and launch a study path for targeted higher-density areas

What the council introduced

On June 1, the City Council introduced two temporary ordinances to shape Palo Alto———————————'s initial approach to Senate Bill 79 (SB79): 1) a temporary local exemption that will exclude parcels holding locally registered historic resources from applicable SB79 standards until January 31, 2032; and 2) a temporary transit-oriented combining district that applies development standards equal to 50% of SB79 default levels for eligible parcels. The ordinances were introduced for first reading and staff was directed to return with urgency versions and permanent ordinances for Planning & Transportation Commission review.

Why the city chose this path

SB79 creates a default state-mandated upzoning around rail stations and major bus corridors; cities may adopt an alternative TOD plan or use an interim 50% approach while they study local impacts. City staff and the council ad hoc concluded the alternatives achieve three aims: preserve local historic resources, buy time to study infrastructure and design implications for neighborhoods, and selectively retain local discretion while planning targeted upzoning in places the city already identified as appropriate for higher density (for example, the downtown housing plan area and other focus corridors under separate processes).

Public comment and developer concerns

Developers and business representatives urged narrower temporary limits, warning that broad interim standards could reduce viable mixed-use projects and shrink ground-floor retail. Multiple developers argued the draft 50% standards still limit residential floor area on some commercial streets and urged a tailored approach that protects and promotes transit-oriented housing. Housing advocates and VTA staff urged the city to move carefully but not to forfeit opportunities near transit.

Council direction and next steps

Council voted to introduce the temporary ordinances and directed staff to prepare urgency and permanent ordinances, bring them to the Planning & Transportation Commission for public review, and return to council with recommended permanent regulations. Council added direction that staff prioritize targeted analysis of California Avenue and adjacent El Camino areas (as part of the downtown/TOD study path) and return to council with proposed scope and schedule within 6————————12 months.

Representative quotes

Vishnu Krishnan, senior planner: "SB79 mandates upzoning of land near rail stations and major bus corridors; the law allows cities to pursue a 50% interim standard or prepare a TOD alternative plan." (presentation)

Developer comment (Scott Levenite): "The council should not adopt [the draft] as written. The draft leaves California Avenue and similar corridors worse off because certain rules would incentivize purely residential development that can eliminate ground-floor retail." (public comment)

Why it matters

SB79 establishes a new state baseline for transit-proximate development. Palo Alto's choices now will determine whether the city follows the state default, adopts a narrowly targeted alternative plan, or in the short term applies 50% of default standards while staff develops a more strategic plan for corridors such as University Avenue, California Avenue and the San Antonio focus area. Council chose the 50% path and historic carve-out to create time and an orderly process for targeted planning and PTC review.