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BACKGROUND After more than two years, the Downtown Specific Plan (DSP) update and work of the DSP Task Force is nearing completion. At its April 16, 2019, meeting the City Council discussed and provided direction on a series of five policy topics for the DSP Update: 1) massage regulations, 2) the active ground-floor overlay, 3) ground-floor residential in commercial and mixed-use districts, 4) land use discrepancies including property owner-initiated requests for change in land use, and 5) development standards (i.e., height and FAR limitations). Additional information on the five topics is provided in the April 16 City Council Agenda Report (Attachment 1) and the April 16 City Council Draft Meeting Minutes (Attachment 2). Summary of April 16 City Council Actions Based on specific votes taken on each topic and/or consensus among a majority of the City Council, the Council provided the following direction on four of the five policy topics: Massage Business Regulations. The City Council supported staff's and the Task Force's recommendation to strengthen citywide permitting requirements for massage establishments and technicians, rather than including downtown-specific land use policies in the DSP. Active Ground Floor Overlay. The City Council supported staff's and the Task Force's recommendation regarding implementation of the Active Ground Floor Overlay, including the exceptions process and criteria. Ground-Floor Residential. The City Council provided the following direction with respect to ground floor residential uses in each of the three downtown mixed-use districts: • Downtown Commercial District: Prohibit new ground floor residential on properties with frontage on Main Street. Ground floor residential may be located behind commercial development on properties elsewhere in the district, provided that: o Street-fronting commercial space required, of a minimum depth to ensure viable commercial uses; o Redevelopment sites have no net loss of commercial square footage; and o Residential at the rear of a site designed to minimize visibility from the commercial street-front. • Mixed Use-Transitional District: Ground floor residential may be located behind commercial development on properties within the district, subject to the parameters listed above. • Mixed Use-Downtown District: Prohibit ground floor residential uses throughout the district. The Council also provided direction on a series of related subtopics, including: Page 2 of 5