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BACKGROUND The DSP provides goals, objectives, and implementation measures that facilitate the changes needed to serve the City's growing population and employment base while still preserving the essence of Downtown's small-town character. The original DSP was adopted in 1989, updated in 2002 and again in 2019. The 2019 DSP was updated with guidance from a City Council-appointed 10-member Task Force, composed of representatives from City Council, Planning Commission, the Economic Vitality Committee and members at large. Extensive public outreach occurred through the two- year update process, including with local residents, downtown business and property owners, and the Pleasanton Downtown Association, among others. The Task Force discussed a number of topics during the update, one of which was the AGFUO. The adopted DSP indicates that the AGFUO applies to tenant spaces with a storefront fronting Main Street.2 Included in the Task Force discussion and deliberation were the following topics: (1) the requirements for multi-tenant buildings; (2) requirements for multi-use spaces; (3) exceptions to the active ground floor use requirement; and (4) the definition and applicability of the AGFUO, along with several other related topics as discussed in this report and Attachment 2. The requirements for the AGFUO are reflected both in a series of policies in the DSP, and in Chapter 18.81 of the Pleasanton Municipal Code (PMC). On December 17, 2020, the City received an application to allow Iron Horse Real Estate to locate within a ground floor space at 550 Main Street, citing its inclusion of a retail component of the business, in conjunction with a real estate office, a non-active use, as a basis to be allowed to occupy the space. The Director of Community Development determined that insufficient evidence had been provided that the retail component would meet the criteria established in the DSP and PMC, and denied the application; the Director's decision was subsequently appealed to the Planning Commission by the applicant. The Planning Commission deliberated on the appeal at its February 10, 2021, meeting. During the timeframe between the administrative denial and the Planning Commission hearing to consider the appeal, the applicant made adjustments to her proposal such that the front portion (the first 25% of the tenant space, as measured perpendicular to the façade fronting Main Street) of the business would be dedicated to retail sales, and provided additional supporting information to demonstrate that the use would be a bona fide retail business. The Planning Commission granted the appeal, allowing the business to locate along Main Street, but requested that the City Council consider the policies for active ground floor uses. At the March 2, 2021, meeting, the City Council directed staff to bring this item to the City Council for discussion. Therefore, this item is before the City Council for discussion and direction regarding the policies in the August 2019 DSP regarding active ground floor uses. 2 The AGFUO would also apply to the Mixed-Use Downtown District. Development of the Mixed-Use Downtown District is subject to approval by voters to modify the Bernal Property Phase II Specific Plan and approve a financing plan for the potential relocation of the existing civic center. 2