Report Prepared by: Kim Espinosa, Planning Manager, Development Services Department
Title
SUBJECT: Second Reading and Final Adoption of an Ordinance to Amend Merced Municipal Code Section 20.10 Regarding Commercial Zoning Districts (Zoning Ordinance Amendment #20-01) by Expanding the List of Permitted Uses and Reducing the Amount of Floor Area Devoted to the Sale of Groceries in the Shopping Center Commercial (C-SC) Zone; Adding Breweries, Wineries, and Distilleries to the List of Permitted Uses in Various Commercial Zones; Allowing Food Trucks in the City Center Area of the Regional/Central Commercial Zone (C-C); and Changing the Level of Review Required for Personal Services in Various Commercial Zones
REPORT IN BRIEF
Second reading and final adoption of an Ordinance to amend the Zoning Ordinance regarding Commercial Zoning Districts by expanding the list of permitted uses and reducing the amount of floor area devoted to the sale of groceries in the Shopping Center Commercial (C-SC) zone; adding Breweries, Wineries, and Distilleries to the list of permitted uses in various Commercial zones; allowing food trucks in the City Center area of the Regional/Central Commercial Zone (C-C); and changing the level of review required for Personal Services in various commercial zones.
RECOMMENDATION
City Council - Adopt a motion adopting Ordinance No. 2522, An Ordinance of the City Council of the City of Merced, California, amending Section 20.10 "Commercial Zoning Districts" as well as Table 20.10-1 "Permitted Land Uses in the Commercial Zoning Districts” of the Merced Municipal Code.
Body
ALTERNATIVES
1. Adopt the Ordinance, as recommended by the Planning Commission and staff; or,
2. Adopt the Ordinance, subject to modifications by City Council (identify specific items to be amended in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (to be addressed in the motion); or,
5. Continue to a future City Council meeting (date and time to be specified in motion).
AUTHORITY
Merced Municipal Code Section 20.80, “Zoning Ordinance Amendments,” spells out procedures for amending the Zoning Ordinance.
CITY COUNCIL PRIORITIES
“Downtown” and “Economic Development” are listed as Goal Areas in the FY 2020-21 City Council Goals and Priorities.
DISCUSSION
Summary
This Zoning Ordinance Amendment would make several changes to the “Commercial Zoning District” section, including expanding the list of permitted uses and reducing the amount of floor area devoted to the sale of groceries in the Shopping Center Commercial (C-SC) zone; adding Breweries, Wineries, and Distilleries to the list of permitted uses in various Commercial zones; allowing food trucks in the City Center area of the Regional/Central Commercial Zone (C-C); and changing the level of review required for Personal Services in various commercial zones. Planning Commission and staff are recommending approval.
Background
In February 2006, the City Council adopted Ordinance #2231 (Zoning Ordinance Amendment #05-01) in response to the Downtown Merced Strategy (adopted in 2005) based on the recommendations of a Downtown Steering Task Force. The Ordinance established the “City Center” area, defined as the area bounded by 19th Street, 16th Street, “O” Street, and Martin Luther King Jr. Way; and prohibited certain uses within the City Center area.
In October 2012, the City Council adopted Ordinance #2396 (Zoning Ordinance Amendment #12-01) that established the Commercial Shopping Center (C-SC) Zoning District. The purpose of the C-SC District was to provide similar services to the Neighborhood Commercial (C-N) District but at a larger scale and to a broader range of people. It was also designed to try to attract a grocery store and shopping center to the South Merced area. The City subsequently rezoned a 6-acre parcel at the southeast corner of Childs Ave and Canal St, which was formerly owned by the Redevelopment Agency and is still the only parcel zoned C-SC in the City.
In October 2016, the City adopted a comprehensive update of the City’s Zoning Ordinance. Although many changes were made to the City’s Zoning Districts and development standards as a result, there were very few changes to the C-SC zone and the prohibition on food trucks in the City Center remained.
In March 2018, the City Council adopted Ordinance #2486 (Zoning Ordinance Amendment #18-01) in an effort to spur development of the Childs & Canal site by adding more profitable developments to the C-SC zone to make it more financially feasible for investors while still retaining the requirement for a grocery store.
Proposed Changes to MMC 20.10 (“Commercial Zoning Districts”
The proposed changes to MMC 20.10 (“Commercial Zoning Districts”) are proposed for various reasons as outlined below. The changes are contained in the Draft Ordinance at Attachment 5 and presented in the modified Chapter 20.10 at Attachment 1 (also shows the “redlined” changes from the current Ordinance). In general, the changes can be summarized as follows:
1) The addition of permitted land uses to the Commercial Shopping Center (C-SC) District as well as changing the amount of floor area devoted to grocery sales in the C-SC zone;
2) Changing the level of review required for Personal Services in various commercial zones;
3) Removing the prohibition against mobile food trucks in the City Center; and,
4) Adding “Breweries, Distilleries, and Wineries” as a permitted land use in several commercial zones.
Proposed Changes to the Commercial Shopping Center (C-SC) Zoning District
As described in the Background section, the Commercial Shopping Center (C-SC) District was created in 2012 to provide similar services to the Neighborhood Commercial (C-N) District, but at a larger scale and to attract a grocery store to the South Merced Area. The City subsequently rezoned a 6-acre parcel at the southeast corner of Childs Ave and Canal St, which was formerly owned by the Redevelopment Agency and is still the only parcel zoned C-SC in the City.
In 2018, the list of land uses were expanded in the C-SC zone in an effort to spur development of the Childs & Canal site by adding more profitable land uses to make it more financially feasible for investors while still retaining the requirement for a grocery store, devoting a minimum of 20,000 square feet of floor area to the sale of groceries. There was also an anonymous developer that was interested in the parcel. As a result, several uses, including community gardens, colleges and trade schools, indoor and outdoor commercial recreation, and drive-through sales, were added to the C-SC zone. Several land uses (gas stations, car washes, professional offices, and restaurants) were reduced from requiring a Conditional Use Permit (with a public hearing before the Planning Commission) to only requiring a Site Plan Review permit (a staff level permit). However, that developer did not move forward with any plans for the site and the site has remained vacant.
The City’s Economic Development Staff have continued to aggressively market the C-SC site and a new developer has recently expressed interest in developing the site. According to Economic Development Staff and the developer, expanding the allowed land uses and community services in the C-SC even further would make the site more attractive as will reducing the amount of floor area required for grocery sales from 20,000 square feet to 8,000 square feet. According to Economic Development Staff, many grocery retailers have reduced the size of their stores and are promoting such smaller prototypes for future developments. However, 8,000 square feet is still larger than most convenience store models that devote more of their floor area to alcohol sales. The City’s expressed intent for the C-SC zone has always been to have a full-service grocery store, not just a convenience market.
The following changes to the Commercial Shopping Center (C-SC) Zone within Table 20.10-1 (Permitted Land Uses in the Commercial Zoning Districts) are proposed in the Draft Ordinance in Attachment 5:
1) Changing “Day Care Centers (Children and Adults)” from a Prohibited Use to being allowed with a Minor Use Permit (a staff level review), which is consistent with the level of review required in the Neighborhood Commercial (C-N), Regional/Community Commercial (C-C), and Commercial Office (C-O) zones;
2) Changing “Hospitals and Surgery Centers” from a Prohibited Use to being allowed with a Conditional Use Permit (Planning Commission review), which is consistent with the level of review in the C-N, C-C, C-O, and Business Park (B-P) zones;
3) Changing “Medical Offices and Clinics” from a Prohibited Use to being allowed as a Permitted Use (no special review required), which is consistent with the level of review in the C-N, C-C, and C-O zones;
4) Changing “Building Supplies/Home Improvement” from a Prohibited Use to being allowed with a Conditional Use Permit (Planning Commission review), which is consistent with the level of review in the C-C zone;
5) Changing “Mobile Food Vendors” from a Prohibited Use to being allowed with a Conditional Use Permit (Planning Commission review), which is consistent with the level of review in the C-N, C-C, C-O, and B-P zones;
6) Changing “Restaurants” from a use requiring a Site Plan Review Permit to being allowed as a Permitted Use (no special review required), which is consistent with the level of review in the C-N, C-C, and Thoroughfare Commercial (C-T) zones;
7) Changing “Vehicle Parts and Accessories Sales” from a Prohibited Use to being allowed as a Permitted Use (no special review required), which is consistent with the C-N, C-C, C-T, and General Commercial (C-G) zones; and,
8) Amending Footnote #9 to read “Permitted only as part of a shopping center or other retail establishment with a minimum of 8,000 square feet (reduced from 20,000 square feet) of floor area devoted to groceries.” Footnote #9 requires that all allowed land uses in the C-SC zone, except Community Gardens which can be an interim use, be part of an overall development which includes a grocery store.
Proposed Changes Related to Personal Services
Personal Services are defined in MMC 20.90.020 (#155) as “an establishment that provides services to individuals and that may provide accessory retail sales of products related to the services provided. This definition includes beauty salons, barber shops, pet grooming services, veterinary clinics, tanning salons, nail salons, tailors, laundromats, dry cleaners, and other similar land uses.” Prior to the Comprehensive Zoning Ordinance Update in 2016, Personal Services required Conditional Use Permits in almost every commercial zone. It was believed that such uses required more parking than other land uses and often required special building requirements (such as enhanced ventilation) that would be best be reviewed on a case by case basis by the Planning Commission. In contrast to Professional Office uses, these Personal Services were also seen as more “retail” in nature and not necessarily compatible with the Professional/Commercial Office (C-O) zone and, therefore, should be limited in number at any particular location. However, over the years, the attitude of office users and owners have changed toward these uses since they are similar in nature in that they generally see clients by appointment and they have become an integral part of most professional office complexes.
In 2016, the level of review for Personal Services was changed to Site Plan Review in the C-O, C-T, C-G, and B-P zones and to Permitted Uses in the C-N, C-C, and C-SC zones. The requirement for a Site Plan Review Permit was mostly to address building requirements for beauty and nail salons regarding ventilation and some concerns about parking. Since 2016, the Site Plan Review Committee (made up of the Director of Development Services, City Engineer, and Chief Building Official) has approved numerous Site Plan Permits for Personal Uses in C-O zones and because of additional building code requirements, special conditions are no longer needed to address these ventilation issues and parking has not been an issue. Owners of professional office complexes have also expressed that Personal Uses are desirable tenants and that the requirement for a Site Plan Review permit is excessive. Therefore, the Site Plan Review Committee has recommended that the level of review for such Personal Uses be reduced in all zones. The proposed Ordinance at Attachment 5 recommends that Personal Services now be Permitted Uses in the C-O zone (consistent with the C-C, C-N, and C-SC zones) and require Minor Use Permits in the C-T, C-G, and B-P zones.
Removing Prohibition Against Food Trucks in the City Center
As described in the Background section, in 2006, the City Council adopted Ordinance #2231 in response to the Downtown Merced Strategy. The Ordinance established the “City Center” area, defined as the area bounded by 19th Street, 16th Street, “O” Street, and Martin Luther King Jr. Way; and prohibited certain uses within the City Center area, including mobile food trucks, bail bond businesses, skateboard shops, methadone clinics, and drug/alcohol rehabilitation centers. According to the Administrative Report prepared at the time, it was felt that these businesses did not foster a walkable downtown, support commerce at other downtown businesses, and promoted a negative perception of downtown safety. In particular, food trucks were cited as being “blighting influences that contributed to littering, loitering, and providing a place for illegal activity due to their mobile and transient nature.”
Since that time, attitudes toward food trucks have changed dramatically, both in the City of Merced and nationwide. Food trucks now offer many gourmet food options in addition to more traditional fare, allow entrepreneurs to start restaurants without high overhead costs, and are seen to contribute to vibrant and walkable downtowns. In fact, many “brick and mortar” restaurants also have food trucks to expand their clientele and allow them to cater events outside their permanent locations. Many cities designate specific areas where food trucks can gather, either along City streets or in designated parking lots that provide seating, bathrooms, shade, refuse containers, and other amenities. The City of Merced allows such “food truck parking areas” in MMC 20.44.020, which also established operational and design standards for food trucks. In recent years, the City has approved one such parking area and many standalone food trucks. Recently, the Downtown Steering Committee and City staff have recommended removing the prohibition against food trucks in the City Center in response to these changing attitudes and the desire to accommodate some new Downtown businesses who wish to utilize food trucks. Therefore, the Draft Ordinance at Attachment 5 recommends removing the reference to Footnote #10, which prohibits the location of land uses within the City Center, from the “Mobile Food Vendors” section of Table 20.10-1 in the Regional/Central Commercial (C-C) Zone. Mobile Food Vendors would still require Conditional Use Permits in the C-C Zone, but could be allowed in any portion of the C-C zone.
Breweries, Distilleries, and Wineries
The Downtown Steering Committee has also recommended that Breweries, Distilleries, and Wineries be added to Table 20.10-1 as a specific land use in order to encourage their development in the City. Such establishments, when associated with food service, are seen as desirable uses. In general, such establishments will produce their own beer, wine, or liquor either onsite or at a larger production facility and offer consumption and sale of that product as part of a restaurant in an urban location, often including retail sales as well. The Dust Bowl Brewery in Turlock is one such example. In February 2020, it was announced that Tioga-Sequoia Brewing Company, after 12 years in Downtown Fresno, would expand its business by establishing a taproom in Merced in the historic Tioga on N Street.
The proposed Ordinance at Attachment 5 would add “Breweries, Distilleries, and Wineries” as Permitted Uses in Table 20.10-1 with Footnote #19 in the C-C, C-T, C-G, and B-P Zones, and prohibited in all other commercial zones (C-O, C-N, and C-SC). Footnote #19 would differentiate these uses from traditional bars or nightclubs that require Conditional Use Permits by requiring that “the business includes a full-service restaurant and the on-site sale of beer, liquor, or wine made by the same business either on-site or off-site.”
Environmental Clearance
The Planning staff has conducted an environmental review of the project in accordance with the requirements of the California Environmental Quality Act (CEQA), and a Categorical Exemption is being recommended (Attachment 2).
Planning Commission Action
On January 20, 2021, the Planning Commission held a public hearing on this request. One letter was received in opposition from Rod Brawley (Attachment 3) to the portion related to allowing food trucks within the City Center based on their competition with “brick and mortar” restaurants and concerns with how some food trucks operate. After a long discussion in which the Planning Commission debated the merits of changing the boundaries of the “City Center” and possibly requiring that food trucks be required to be associated with a “brick and mortar” business in order the operate in the City Center, the Planning Commission ultimately decided on a 6-0 (1 vacancy) vote to recommend approval of the Draft Ordinance with no changes. A couple of Commission members indicated that they did not believe the Commission’s role was to “pick winners and losers” and that food trucks should be allowed to compete in the market place. The Planning Commission Resolution can be seen at Attachment 4.
City Council Action
The Ordinance was introduced at the March 1st Council Meeting and will be in effect 30 days of the date of final adoption.
IMPACT ON CITY RESOURCES
No impacts on City resources are expected with this request.
ATTACHMENTS
1. Modifications to MMC 20.10 (“Redlined” to Show Changes from Current Ordinance)
2. Draft Ordinance