SUBJECT: REVIEW OF MORATORIUM PROHIBITING CONVERSION OF RETAIL SPACE, DOWNTOWN MARKET STUDY AND PARKING STANDARDS

 

Recommendations:

That the City Council proceed with one of the following options prior to the expiration of the downtown moratorium:

1. Proceed with broader downtown study incorporating marketing, land planning and economic incentives to attract retail use.
2. Proceed with market study based on the original RFP to identify market potential and regulatory measures to attract retail use.
3. Proceed with changes to the Zone Code on downtown parking without study to further encourage retail usage.

 

Background:

On November 14, 2000, the City Council adopted a moratorium ordinance on the conversion of existing retail space to restaurant use with the intent of studying the potential uses which may locate in the downtown and to develop any regulatory measures or incentives that may be required to encourage retail development. The Council also authorized issuance of the attached Request for Proposal for a market study on November 14, 2000. On November 20, 2000 staff issued the attached RFQ/RFP. The tasks identified in the RFP for the market analysis included:

• Identification of downtown retail potential and analysis of regional market issues and local land use.
• Detailed inventory of office and retail business by size, type and growth forecast over a ten year period
• Definition of implementation programs that encourage retail development.
• Identification of guidelines or zoning regulations for attracting and retaining retail business.
• Report to City Council

Economics Research Associates (ERA) Downtown Main Street Visions (DMSV) and Sedway Group responded with proposals.

On February 27, 2001, the City Council reviewed the project proposals and rejected all bids and directed staff to return with more specific issues to address in a new RFP .

 

Analysis:

Many communities use market studies to provide direction in establishing land use controls to encourage particular land uses. The RFP issued November 20, 2000 reflects this intent and contains the following specific issues for study:

1. Market analysis of the downtown to determine potential for new retail development.
2. Analysis of existing composition of downtown businesses.
3. Analysis of regional trade area conditions to determine downtown market.
4. Identification of new or revised zoning regulations to attract and retain retail business.
5. Meet with business and property owners in the study area.

 

Suggested Additional Proposed Study Issues :

1. Detailed parking analysis and new parking regulations to encourage retail location to the area and discourage restaurant and food service uses. (Prepared by staff)
2. Specific use regulations by block or plan area to establish a complimentary mix of uses.
3. Land use development incentives, fee waivers, in lieu parking payment or building façade improvement grants to new or expanded retail uses.
4. Land assembly assistance for new development projects which contain greater than 50% retail businesses.

With the exception of Item No. 1, the above tasks incorporating, marketing and land use planning and economic development will increase the project scope of work and result in corresponding fee increases.

In summary, staff needs direction on the strategy which the City Council wishes to pursue. With out this direction, any effort will not be justified by the time or resources that would be consumed by the project.

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Chronology Downtown Specific Plan and Moratorium

Chronology

July 20, 1999, Council directs staff to prepare list of issues which a downtown specific plan can address and a schedule for implementation of a downtown specific plan.

October 12, 1999, Council reviews staff report and rejects preparing a specific plan and directs staff to notice a special workshop for November 30, 1999 to identify problems in the downtown area.

November 30, 1999, Downtown specific plan workshop postponed. Council requests information on the number and distribution of downtown on-sale alcohol and map of same.

November 14, 2000, City Council adopts moratorium on conversion of existing retail space to restaurant use to permit time to study issues related to conversion.

November 14, 2000, Council reviews staff report on specific planning process and approves scope of work for market study RFP.

November 20, 2000, Staff issues RFP for market study.

December 12, 2000, City Council extends moratorium to November 13, 2001, to allow completion of study of uses and to enact legislative changes as required.

February 27, 2001, Staff presents market study proposals for Council consideration. Council directs staff to revise work scope and return with more specific issues to address in a new RFP.

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