City staff introduces broad commercial zoning changes, seeks first-reading approval

Assistant City Manager and Development Services Director Suzanne Thorsen told council the proposed amendments aim to reduce permitting friction for local businesses and implement elements of the city's resiliency plan. Key elements include expanding daycare locations consistent with the general plan, eliminating the separate home-occupation permit (saving an estimated $250), streamlining standards for studios and health/fitness facilities up to 1,500 sq ft, and removing an inapplicable "formula business" provision.

Thorsen also proposed changes to alcoholic-beverage rules (creating a standalone off-premise alcoholic-beverage sales category with use-permit standards), separating nightclubs from bars/taverns and disallowing nightclubs citywide, and aligning bar/tavern hours in downtown to permit operations to 10 p.m. (with conditional permits after that hour). She described proposed allowances (with conditions) for indoor commercial recreation and for mobile food-vending in certain zones, and recommended waiving first reading to introduce the ordinance tonight and returning Aug. 19 for adoption; she said staff had determined the amendments to be categorically exempt from CEQA.

"This is a very important step for our community to continue the reduction of red tape, especially for our businesses," Thorsen said, explaining the package is the result of outreach to the business community, the planning commission and the economic development board. Council asked detailed questions on retail hours, live and outdoor entertainment rules, mobile-vendor siting and whether certain existing venues would be grandfathered. After additional public comment, the council moved to waive first reading and introduce the ordinance, amending the draft to extend retail hours in three downtown-adjacent zones from 8 p.m. to 9 p.m., and set a second-reading/adoption date of August 19.