Prepared by the City of Palo Alto

Department of Planning and Community Environment

JULY, 2001

A. INTRODUCTION  [top]

One of the many critical tasks in preparing an update to the Palo Alto Zoning Ordinance is to review land uses and use classifications. Historically, the City has defined, interpreted and regulated land uses in a certain manner, based on the current structure of Title 18, City tradition and policy. The zoning ordinance update will address: a) how land uses can be better classified and defined given changing times as well as current trends, and b) ways to improve implementation, interpretation and regulation of land uses.

Some of the key "land use classification" issues identified in the Comprehensive Plan and by the public, City officials, development professionals, and staff include the need to:

• Update and expand the list of land uses and use classifications based on current times and trends.

• Simplify land uses and use classifications so that they are easy to understand and interpret by City staff, the decision-makers and the general public.

• Rectify related internal inconsistencies in Title 18.

• Review and consider the land use issues that are identified in the Palo Alto Comprehensive Plan, including potential new uses and districts.

• Address state-mandated land use issues, such as care facilities.

This report identifies: 1) how land uses are addressed in the City's current zoning ordinance; 2) some of the related issues and challenges that have been encountered by the City and the public; 3) land use classification resources such as the Standard Industrial Classification System (SIC); and 4) a review of land use approaches that have been implemented in other communities. The report concludes with some initial suggestions to solicit input from the community on land use issues, in order to provide further direction for the zoning ordinance update.

B. LAND USES IN THE CURRENT ZONING ORDINANCE  [top]

Ordinance Structure

Title 18 (Zoning Ordinance) of the Palo Alto Municipal Code is structured as a traditional (Euclidean) zoning ordinance, characterized by the following:

• The zoning ordinance includes a chapter for each adopted zoning district. Each zoning district contains a list of land uses and use classifications that are permitted (either by right or with a Conditional Use Permit) within this district.

• Land uses are listed and defined in Chapter 18.04 (Definitions). For the most part, the land uses that have been defined in this chapter are those that are listed in the individual zoning districts in which they are permitted. For example, the permitted uses listed in the R-1 District (Chapter 18.12, Section 18.12.030) include, among others, single-family use, home occupations, residential care homes and mobile homes (manufactured housing) on permanent foundations. Similarly, the permitted uses listed in the CN District (Chapter 18.41, Section 18.41.030) include, among others, lodging, medical, professional and general business offices and retail services (excluding liquor stores).

• A "tiered" use hierarchy is established in Title 18. This means that uses allowed in more restrictive zoning districts are also allowed in the less restrictive zoning districts. For example, a single-family use is allowed in the Neighborhood Commercial (CN) District, which is a zoning district that is established primarily for commercial uses serving adjacent neighborhoods.

Land Use Interpretations

At present, questions about land uses are typically interpreted by the staff planners but sometimes require a formal interpretation by the Current Planning Manager (Hearings Officer), Director or the City Council. The first step in determining if a particular land use is permitted (either by right or with a Conditional Use Permit) is by checking the zoning district for the subject property. When a particular land use is not listed among the permitted uses in the zoning district, an interpretation is required. This interpretation is made based on finding a general "fit" of the proposed use with one or more of the permitted land uses cited in the zoning district, as well as the corresponding land use definition provided in Chapter 18.04 (Definitions).

The land use definitions in Chapter 18.04 play a critical role in determining if a land use is permitted or prohibited. For example, a video rental store is not identified or defined as a specific land use in Title 18. However, this use, depending upon store size, would be interpreted to "fit" or be consistent with the Neighborhood Business Service or General Business Service land use permitted in the zoning district and the corresponding definitions for these uses provided in Chapter 18.04. Land uses that are not listed in a particular zoning district or are determined to not meet the general "fit" of a use definition in Chapter 18.04 would not be permitted.

As new land uses and use classifications have surfaced due to changing laws or trends, these land uses and definitions for such uses have been added to Title 18. One example is the second single-family dwelling unit, which was added to Title 18 in 1983. This land use was added in response to a change in state law mandating that every city in California establish zoning standards for second dwelling units. Other examples include the addition of automatic teller machines and reverse vending machines, which were non-existent 15 years ago.

Land Use Categories and Regulations

Land uses are categorized not only by the type of use, but also by whether the use is the primary use on site; by the permitting process required; whether the use is particularly sensitive requiring additional review; by the intended length of time the use will be in effect; and/or by the conforming status of the use, as follows:

Principal Use versus Accessory Use

A principal use is a use of land or a building that fulfills a primary function on the property in which it is located. A single-family residence on a residential lot located in an R-1 (Single-Family Residence) District is an example of a principal use.

An accessory use is a use of land or a building that is subordinate or incidental to the principal use of the property. One example of an accessory use would be a guesthouse or cabana on a site where the principal use is a single-family use. Another example would be a small building management office contained within or at the rear of a retail store. Similarly, an eating/drinking establishment that is located within an office building or office complex, which is intended solely for the convenience of the employees in the office building/complex would be considered an accessory use.

The regulations and provisions for accessory uses and facilities are presented in Chapter 18.88 of the zoning ordinance. The provisions of this code section establish limits on the size, location and operation of an accessory use, to ensure that this use remains incidental or subordinate to the principal use of the land.

Permitted Use

A permitted use is an activity, operation or improvement that is conducted within a building or on a site, which is allowed by the regulations of the zoning district in which it is located. This activity is allowed to be established and operative without any discretionary approval and is typically subject to construction-level permits only (building permit, grading permit). The construction and occupancy of a single-family use on a residential lot located in the R-1 (Single-Family Residence) District is an example of a permitted use. Another example would be the establishment and operation of a drug store within a building that is located in the CN (Neighborhood Commercial) District.

In the City of Palo Alto, the regulatory process of tracking land use change from one "permitted use" to another is through a City Use and Occupancy Permit. While a Use and Occupancy Permit is required for any change in commercial use, enforcement is generally triggered only when there is construction activity relating to establishing the use (e.g., tenant/building improvements for an existing retail space that is proposed for conversion to office use). A Use and Occupancy Permit is administered by the Building Division but requires zoning clearance from the Planning Division. These permits are non-discretionary.

• Conditional Use

  A conditional use is a special activity, operation or improvement that is conducted within a building or on a site, which is allowed by the regulations of the zoning district in which it is located, subject to obtaining a Conditional Use Permit. While conditional uses are generally considered to be compatible or appropriately mixed with permitted uses, the nature of the use or operation requires special review and regulation to ensure that the conditional use does not result in a nuisance and that its operation is compatible with the environment and the existing adjoining land uses. One example of a conditional use is the establishment of an automobile service station on a site located in a CN (Neighborhood Commercial) District. In this case, a Conditional Use Permit is required to ensure that the operation of the service station does not result in noise, light/glare and odor impacts to the surrounding environment.

  Chapter 18.90 of the Zoning Ordinance outlines the process for reviewing and considering the approval of a Conditional Use Permit. A public hearing is required to be conducted by the Hearing Officer, with notification of nearby property owners and residents. Action on a Conditional Use Permit requires that the Hearing Officer make specific findings based on the nature of the proposed use.

  Generally, a Conditional Use Permit is approved subject to compliance with specific terms and conditions. Such terms and conditions are imposed to ensure operation of the use in a manner compatible with existing and potential uses on the same or adjoining sites. Examples of Conditional Use Permit conditions include: a) regulations or limits on the specific hours of use operation (e.g., 8:00 a.m. to midnight) and b) prohibitions on specific use activities such as outdoor sales.

• Special Use

  A special use is a use that can be established or operated but must meet certain standards, operating conditions or requirements that are specifically set forth in the zoning ordinance. Special uses are often allowed as a permitted use in more than one district if they meet these specific standards. If one or more of the adopted standards cannot be met or the use requires the application of unique standards or requirements, a Conditional Use Permit is generally required. As an example, animal keeping/kennels is often classified as a special use, generally required to meet certain standards such as: a) limits on the number of animals based on property size, b) odor and noise control, and c) setbacks or distance from adjacent land uses. In Palo Alto, one example of a special use is a second dwelling unit. Under the provisions of Title 18, a second dwelling unit must meet specific standards such as: a) the unit must be contained in a separate, accessory building, b) the unit must be limited in size, and c) the unit must be architecturally compatible with the main single-family residence. Second dwelling units are authorized by approval of a Conditional Use Permit.

• Temporary Use

  A temporary use is a use that is established and operates for a short, set period of time (e.g., one week to several months). Examples of a temporary use include a pumpkin or Christmas tree sales lot or seasonal outdoor sales. In the City of Palo Alto, all temporary uses are subject to the approval of a Conditional Use Permit.

• Interim Use

  An interim use is a use that is established and operates for a set period of time (e.g., one-two years). An example of an interim use would be a parking lot or a used automobile sales lot with limited site improvements. Generally, interim uses allow a short-term use of the property until a permanent use is proposed and developed on the site.

• Nonconforming Use

  A nonconforming use is a use that does not conform to the regulations of the zoning district in which it is located. Nonconforming uses are uses that would, under current regulations, be permitted neither by right nor through the issuance of a Conditional Use Permit. One example of a nonconforming use would be an existing supermarket/grocery store, a commercial use, located on a site in an RM-30 (Multiple-Family Residential) District. The provisions of the RM-30 District do not permit the establishment of a commercial use such as a supermarket.

  Chapter 18.94 of the zoning ordinance establishes the specific provisions and limitations pertaining to nonconforming uses. A nonconforming use cannot be expanded or enlarged. However, a nonconforming use can be changed to another nonconforming use provided that the new use is of similar or less intensity. Furthermore, if a nonconforming use (other than a residential use) ceases to exist for a period of six months or more, it cannot be reestablished and must be replaced with a use that conforms to the provisions of the zoning district.

  Most nonconforming land uses are allowed to continue to operate indefinitely but some are required to terminate or amortize over a period of time. Section 18.94.070 of the zoning ordinance identifies a list of existing nonconforming uses at specific locations that are required to terminate by a specific date. One example is the dance studio use of property located at 440 Colorado Avenue, which is required to terminate on or before July 20, 2003.

  Nonconforming uses will be a subject of considerable analysis and discussion at a later point in the zoning ordinance update.

C. ISSUES AND CHALLENGES [top]

Like many zoning ordinances, Title 18 currently presents some challenge in interpretation and use by the City staff and the general public. During the "issues identification" phase of the zoning ordinance update, a number of current land use issues and challenges have been identified by the public, the development community, City officials, and staff. The following issues and challenges are presented as a starting point for discussion and are therefore, not intended to be exhaustive:

• The lists of allowable land uses in each district are comprised of a combination of specific uses (e.g., animal care, business and trade schools, hotels) and generalized use categories where many similar uses are "grouped" (e.g., personal services, retail services). Lists of specific uses may sometimes become outdated and limit flexibility to consider similar uses not on a list, while allowing uses by general category requires comprehensive definitions to minimize the need for interpretation.

• The list of land uses provided in Title 18 is not comprehensive and up-to-date. Some land uses that are requested or inquired about are not listed or defined in the current ordinance, and therefore often require extensive time for interpretation and the potential for differing determinations. Examples of land uses that are not currently defined or identified in Title 18 include, among others, live/work uses, telecommunication facilities and sound recording studios.

• Some of the land use definitions in Chapter 18.04 are broad and ambiguous. These definitions should be more specifically defined for better interpretation. Considerable recent discussion has focused on the need to clarify what is meant by "neighborhood-serving" retail and/or service uses, and whether to limit such uses in the appropriate district, in a generalized definition, or through development standards that limit sizes of certain uses. As further examples, frequent inquiries are made about what is acceptable as a "ground-floor retail" use or what the limitations are for certain office uses. Clearer, more precise definitions for these uses would ease interpretation by staff and provide better direction to the public.

• A policy regarding interpretation of allowable uses needs to be included in the zoning ordinance so that there is a clear and consistent process to determine the acceptability and definition of land uses.

• Chapter 18.04 (Definitions) sometimes includes specific development standards for land uses and other zoning conditions (e.g., "breezeway," "gross floor area," and "extensive retail service"). Specific development standards are more appropriately located in a chapters devoted to development regulations.

• There are internal inconsistencies in Title 18. For example, there is no clear distinction between a second single-family dwelling unit and a studio dwelling unit. Chapter 18.04 (Definitions) includes a definition for a studio dwelling unit but does not include a definition for a second single-family dwelling unit.

• Though not directly a zoning ordinance issue, the City currently has limited ability to track and regulate changes in land uses, which may hamper enforcement of zoning rules.

D. APPROACHES TO LAND USE CLASSIFICATIONS  [top]

In evaluating approaches to land use classifications and definitions for Title 18, the following information provides background on the City's existing classification system, a standard industrial classification approach, and various approaches taken by a number of other California cities:

Current Inventory of Land Uses in Title 18

All of the land uses and use classifications identified in Title 18 were inventoried, and are included in the attached Table 1. The table lists all land uses (alphabetically) in the Zoning Ordinance by zoning district and identifies whether a land use is permitted, requires a Conditional Use Permit or is prohibited in each of the zoning districts. This table was previously provided to the Planning and Transportation Commission but is included again for convenient review.

Standard Industrial Classification System (SIC) for Land Uses

The Standard Industrial Classification System (SIC) tracks and codes new industries, as they are established and developed. The use classification system developed for Palo Alto in the 1970s relied loosely on SIC categories, but these were fine-tuned to reflect differences in land use activities. The SIC categories are based on production- and market-oriented economic concepts; however, classification using these concepts alone often resulted in inconsistencies. These inconsistencies are addressed by the new North American Industrial Classification System (NAICS). The NAICS categories are based on the types of production activities performed, and this system is intended to define and classify newer land uses and to reflect recent planning trends.

While the NAICS may provide a useful reference for updating definitions and classification of some land uses in Palo Alto, there are some drawbacks to the system. In most instances, the categories are narrowly defined allowing easy classification of uses; however, some categories are too broadly defined making classification difficult. For instance, social public service uses protected under federal or state law, such as group homes, are not readily classified. Nor are adult entertainment and massage establishments readily classified. Since the system has a distinct industrial bias, this is not surprising. Finally, the system is intensive-with categories that are not easily collapsed-which makes it cumbersome to apply. While it would appear the NAICS is more than what Palo Alto needs, it can be a valuable reference during the use classification exercise, and correspondence tables can be prepared to allow Code users to check how a specific use should be classified.

The most recently published NAICS (2001) has been reviewed by staff. The following have been identified from the NAICS as examples of land uses or use classifications that are not currently addressed or defined in Title 18: warehouse clubs, home centers, sound recording studios, computer training schools, sports and recreation instruction, outpatient care centers, computer software stores, pharmacies/drug stores, and car washes.

It should also be noted that the terms that are used in the SIC and NAICS are not necessarily those used by the community or industry (e.g., the term "fueling stations" is more commonly referred to as "gasoline and service stations" in most zoning ordinances).

Land Use Classification Approaches in Other Communities

Zoning ordinances from ten California communities were selected and reviewed based on the following criteria:

• Fairly recent zoning ordinances (generally developed and adopted within the last ten years), and/or

• Zoning ordinances from cities/communities of similar size with similar issues.

The attached Table 2 provides some basic information on how land uses in these ten communities are addressed. The following is a brief summary of the some of the more common, as well as unique characteristics of these ordinances, and of some sample approaches to land use classification:

• Several of these zoning ordinances are structured so that individual land uses are placed under a broad land use classification, rather than providing extensive lists of specific uses. Examples include the following:

  a. The City of San Rafael "groups" land uses by category in its zoning ordinance (attached). For example, one category is entitled, "Office and Related Uses," which groups land uses into the categories of General Office, Financial Services and Institutions, and Medical Services. This approach allows for easier interpretation of requests for land uses not listed, as long as they fit within the grouping. Sometimes examples of specific uses within a use category, such as in Palo Alto's ordinance, are listed in the definitions, rather than under the allowable uses.

  b. The City of South San Francisco includes an introductory chapter in its zoning ordinance, which lists five broad use classifications (attached). Each land use is categorized by one of the following use classifications:

  Residential Use Types	Civic Use Types
  Commercial Use Types	Industrial Use Types
  Agricultural Use Types

  Combined land uses on one site or in one building (e.g., mix of residential and non-residential uses) are classified based on the principal use. The purpose is to simplify the interpretation process by staff and the general public. The advantage to this approach is that a requested land use can be immediately screened and placed in one of the above use classifications. Disadvantages include: 1) determining which is the appropriate classification for a particular land use, and 2) the lack of distinction between uses within a category (such as office and retail within "commercial use types") of uses that have varying impacts.

An important advantage to grouping land uses is that it limits the need for providing a detailed definition for each specific land use and provides for quicker and easier interpretation. When the grouping is as generalized as the City South San Francisco's use classification system, however, a disadvantage to this "grouping" approach could be determining which group a particular land use should be placed under. The City of Palo Alto's current ordinance is a "hybrid" of specific land uses and generalized groupings of uses, which can also be a useful approach to identify those special uses requiring greater attention due to their potential impacts.

• A majority of these examples include a current, up-to-date list of land uses and use classifications, which are defined in the Definitions chapter/article of the ordinance (Note: The third column identifies land uses and classifications not currently addressed or defined in Title 18 of the Palo Alto Code).

• Most of the examples include a separate chapter/article addressing "special use" standards (see the fourth column). This separate chapter/article addresses:

  a. Specific land uses that are unique, requiring a specific set of design or operational standards such as mixed use, live/work, or drive-in/drive through facilities;

• b. Land uses that are required to address state-mandated standards such as child care facilities, mobile home parks, liquor sales or adult-related uses; and/or

• c. Specific land uses that have the potential to create nuisances, requiring special operational standards for such uses as animal keeping, motor vehicle repair, and home occupations.

An example (attached) of or an ordinance that provides a separate chapter of special use standards is the City of Novato zoning ordinance. A division entitled "Standards for Specific Land Uses" identifies specific provisions for the establishment and operation of a use involving animal keeping. The provisions identify where animal keeping is permitted (zoning district), limits on the number of animals that can be kept, minimum parcel size and operational standards (odor and vector control, noise control and erosion and sediment control).

Another example (attached) of this approach is outlined in the City of Mountain View zoning ordinance. Mountain View has adopted specific standards for establishing and operating childcare facilities. These standards include limits on where such uses are permitted (e.g., spacing/concentration), as well as operational standards that must be met (e.g., traffic control such as providing a pick-up/drop-off area).

The special use standard approach is widely used throughout California. A key advantage to this approach is that the same specific set of conditions and standards are applied citywide for a use that has particular operating characteristics or potential for nuisance. This approach provides for consistent and easier review, operation and monitoring of the special use. It also provides the public with a known list of standards that must be met before the use is proposed and established. A disadvantage to this approach is that it results in separate ordinance chapters/titles for the special uses, which adds to the length and complexity of the zoning ordinance. However, effective cross-referencing throughout the zoning ordinance can alleviate this concern.

• Several of the cities/communities have had to address some of the same commercial and industrial land use issues and challenges that are currently faced by the City of Palo Alto. Current issues include establishing parameters for defining and maintaining: a) neighborhood-serving uses and b) ground-floor retail use.

In reviewing the ordinances of the communities that were surveyed, there is no one community that has clearly defined "neighborhood-serving use." However, several communities have established restrictive neighborhood commercial zoning districts, which are intended to limit commercial uses to those that are neighborhood serving. For example (attached), the City of Menlo Park has established the C-2A (Neighborhood Commercial-Restrictive) District. The purpose of this district is to allow land uses that are "intended to primarily serve the immediate neighborhood." The allowed uses in this district are limited to retail uses, financial services, professional services, personal services and restaurants (excluding outdoor dining, drive-through service, liquor sales and music/entertainment).

The City of Santa Rosa has established the C-1 (Neighborhood Commercial) District. While the Santa Rosa zoning ordinance does not define "neighborhood-serving", the purpose statement of the C-1 District identifies the intent of the regulations. The purpose statement reads:

"The purpose of the C-1, Commercial District, is to provide limited retail/service centers for convenient shopping in residential communities and neighborhoods of the city; to provide for limited and service uses adequate to supply the day-to-day needs of the surrounding area; but not to permit the development of a commercial center of such a scope and variety as to attract substantial volumes of traffic from outside the neighborhood; and to provide for medium density residential uses mixed with retail uses in neighborhood centers and other neighborhood commercial uses."

Interestingly, the Santa Rosa C-1 District indirectly discourages and controls the conversion of existing, smaller, neighborhood-serving uses to larger commercial uses (that could draw from outside the neighborhood) by limiting a principal, permitted use to 20,000 square feet of floor space. Any one use that exceeds 20,000 square feet in size is required to secure a Conditional Use Permit. Thus another approach is to address "neighborhood-serving" uses with a development standards approach, such as size limitations, rather than defining land uses (example attached).

Protecting and maintaining ground-floor retail space, particularly in local downtown areas is a common challenge in Bay Area communities. Several communities have established limitations and restrictions through zoning to discourage conversion of valuable ground-floor retail space. For example, the core downtown zoning districts in the City of San Rafael restrict ground-floor commercial space to retail, personal service, business service and restaurant uses. Office and financial service uses are conditional uses, unless they are located at the rear ground floor level. The requirement to secure a Conditional Use Permit generally discourages proposals for ground floor office and financial service uses.

• The cities/communities were contacted to determine how land use change is regulated or tracked. All of these communities require a business license when establishing, relocating or expanding a business (for all non-residential uses). Several communities require a City resale inspection when a residential structure/use is conveyed from one property owner to another. The resale inspection process allows the City to "catch" or "flag" any code violations or illegal dwelling units before a property is conveyed. The seller is required to correct all violations before the property is conveyed to the buyer.

E. NEXT STEPS   [top]

Staff expects to schedule a community forum and focus groups to discuss the land use classification concepts outlined in the paper. These meetings will solicit the input of both residents and businesses concerned about "use" issues. Consultants familiar with land use approaches to zoning code revisions will assist staff in these efforts and presentations. Staff will then return to the Planning and Transportation Commission with suggestions regarding how to update the land use provisions and definitions of the Palo Alto Zoning Ordinance.