Palo Alto Economic Development Strategies

RECOMMENDATIONS
09
tenancy
ACTIONS
Streamline, update and/or remove
unnecessary use restrictions and
pursue regulatory reform to enable
and competitiveness.
2. Consider amending Section 18.76.20,
Architectural Review, of the municipal code to
enable more over-the-counter approvals for minor
changes.
CHAMPION
Planning &
Development
Services
DISTRICTS
Downtown
Palo Alto
SUPPORT
Office of Economic Development
Property Owners
District Management Entities
(DMEs)
California
Avenue
Neighborhood
Centers
ESTIMATED TIME + COST
Short (5 years)
High (>$100k)
WHY THIS MATTERS
Removing some of the regulatory barriers to market entry aids in decreasing
vacancy and business success, especially for small (and local) businesses entering
the market for the first time. Many of Palo Alto’s existing retail spaces could be
improved in short order for new tenants with minimal minor changes. However, the
Palo Alto Municipal Code requires architectural review and approval for major and
minor projects and changes, including landscaping, signage, exterior remodeling,
parking improvements, and interior finish outs that are not part of a major project.
Each of the above-mentioned minor changes must adhere to standards and
guidelines outlined elsewhere in the code, and, if met, are justifiably approvable
over the counter by capable city staff. Signage, for example, is protected by the First
Amendment to the United States Constitution, so there is not much, if any,
discretion lawfully acceptable beyond location, size and amount regulations. This
questions why signage is among the items required an additional discretionary
architectural review process if it meets applicable regulations.
For small businesses, the time and cost savings with over-the-counter approvals for
minor changes potentially reduces uncertainty and risk, which may increase investor
interest and contribution to a project. Further, it opens staff and board capacity to
focus on larger projects with more substantial impact to design and overall aesthetic
of a district while also proving commitment to being business friendly, a goal
expressed in the 2030 Comprehensive Plan.
RESOURCES and HOW IT’S DONE
An amendment to Section 18.76.20 of the Municipal Code to allow for more overthe-counter
approvals of proposed minor changes, as recommended, may require an
internal study of the code by Planning & Development Services staff with input
from critical stakeholders including the Architectural Review Board, property and
business owners, and Downtown Palo Alto and California Avenue District
Management Entities. With administrative support from the Office of Economic
Development, Planning & Development Services would make a recommendation to
City Council for approval.
PALO ALTO, CA —————————— ECONOMIC DEVELOPMENT STRATEGIES
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