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Commissioner Allen explained the six-month period for filling the space with active use business. Commissioner Pace questioned various businesses that would fall under active use. Ms. Clark explained the differently defined land use categories including office use versus personal services. She stated there was language authorizing the Director to allow for innovative uses. Commissioner Pace inquired whether the City could limit the percentage of certain types of businesses. Ms. Clark confirmed that some cities limited various types of businesses, but it was a complicated administrative process, for example requiring decisions about how many or whether a distance between would be required. Chair Brown mentioned allowing banks in downtown and difficulties with active and non-active uses in a single tenant space. Commissioner Nibert mentioned the Commission was discussing the matter due to the need for exceptions to active ground floor use requirement. He discussed the six-month exception process due to hardships or duress. Chair Brown explained the six-month exception process was intended to not create an undue burden to property owners while still encouraging active use. Ms. Clark confirmed the effort to balance hardship and active use. She reiterated the provision in the DSP that does not allow "grandfathering" of a non-active business allowed to occupy a space after a vacancy, instead requiring a new exception request if that space is subsequently vacated by the non-active business. Commissioner Nibert confirmed the substantive exception was not being changed and a property with a six-month vacancy could obtain approval to lease to a non-active use. He agreed with Commissioner Allen that a 100 percent requirement might be necessary. Chair Brown asked if the provisions or recommendations made to City Council, assuming those recommendations are approved, would be retroactively applied to Ms. Jasso's business. Ms. Clark stated currently the business does not have a zoning certificate nor business license, therefore, they are not authorized to operate; staff denied the application so the owner would need to re-apply for such use and if the application is received before the requirements are modified, staff would review the application keeping in mind comments heard during the Iron Horse Real Estate appeal at the February 10, 2021 Planning Commission meeting. Chair Brown inquired if there were any other pending applications for multi-use. Ms. Clark confirmed Ms. Jasso's was the only one. Chair Brown recommended the six-month term begin at completion or termination of lease, not abandonment or discontinuation of use. He agreed that it would be easier to simplify and require 100 percent. Ms. Clark referenced City Council's recommendation for the Commission to increase the percentage, but not necessarily to 100 percent. She confirmed the Commission could make that recommendation and City Council could accept or modify. Ms. Harryman stated it was the Commission's job to make recommendations based upon its determinations. Commissioner Nibert asked what flexibility would be allowed under the six-month vacancy if the percentage went from 60- to 100-percent. Ms. Clark explained that any use could be located on the property if the tenant space was vacant for more than six months. Planning Commission Minutes Page 6 of 9 July 28, 2021 eetings but was discussed when the item was considered by the Chamber of Commerce and PDA. She stated other cities had allowed and some had excluded personal services. She summarized the discussion regarding massage businesses that arose during the Downtown Specific Plan (DSP) update, and concerns then about an overabundance of personal services. She Planning Commission Minutes Page 3 of 9 July 28, 2021