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THE CITY OF I '? CITY COUNCIL AGENDA REPORT pLEASANTON June 1, 2021 Community Development TITLE: REVIEW BACKGROUND AND PROVIDE POLICY DIRECTION ON THE ACTIVE GROUND FLOOR USE OVERLAY IN THE DOWNTOWN SPECIFIC PLAN SUMMARY The updated Downtown Specific Plan (DSP) was adopted by City Council on August 20, 2019. The updated DSP includes an overlay referred to as the Active Ground Floor Use Overlay (AGFUO) and establishes policy regarding active ground floor uses that prohibits non-active uses on the ground floor along Main Street. However, subject to meeting specific criteria, a non-active use may occupy a ground floor tenant space even though it is subject to the requirements of the overlay. In December, 2020, staff received a request to utilize the exceptions identified in the specific plan to locate a non-active use downtown, based on provisions of the policy that allow for a business occupying a space with a mix of active and non-active uses, to operate.' The Director of Community Development denied the request and on appeal, the Planning Commission considered the request at its February 10, 2021, meeting. The Planning Commission upheld the appeal, but also suggested the policy in the DSP be reviewed by City Council, who requested a discussion be agendized. This meeting is to review the policy and request City Council direction on potential amendments to the policy. RECOMMENDATION Staff recommends the City Council review the background on the AGFUO and provide direction on potential revisions to the policy. FINANCIAL STATEMENT No fiscal impact is anticipated as a result of the City Council's action. ' Separately, an application for an exception based on other provisions of the AGFUO, for tenant spaces vacant for more than six months, was received on April 5, 2021. This application was approved by the Director of Community Development on April 23, 2021, and was not appealed. 1