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for, such as when a tenant space is subject to extended vacancy, or for purpose-built bank buildings. Subsequent to an appeal heard by Planning Commission earlier in 2021 regarding a multi -use tenant space, City Council directed staff to schedule the AGFUO for discussion and potential modification. In keeping with the direction provided by City Council at its meeting on June 1, staff has drafted changes to the DSP and the PMC and is now seeking input and a recommendation from Planning Commission before the topic returns to City Council for a final decision. BACKGROUND In December 2020, staff received a request to utilize the exceptions identified in the DSP 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. On June 1, 2021, the City Council heard public comment and provided direction to staff (see discussion below). After the June 1 City Council meeting, staff presented this topic and potential modifications to the PDA and Chamber of Commerce, in advance of seeking a recommendation from Planning Commission. Comments from the PDA and Chamber are also outlined below. CITY COUNCIL DIRECTION On June 1, City Council conducted a policy discussion regarding the AGFUO and heard public testimony on the item. Whereas the current policy requires the first 25 percent of the depth of the tenant space to be occupied by an active use, the Council majority was supportive of increasing the proportion of a multi -use tenant space subject to the AGFUO that would be required for active uses. The Council also suggested it would be beneficial to clarify some elements of the policy language to better articulate its intent. City Council also directed staff to solicit feedback from key stakeholders, including the Pleasanton Downtown Association and the Chamber of Commerce. The June 1 City Council agenda report, including an attachment, is enclosed as Exhibit B. PLEASANTON DOWNTOWN ASSOCIATION AND CHAMBER OF COMMERCE On July 13 and July 14, staff presented potential changes to the AGFUO to the Pleasanton Downtown Association and Chamber of Commerce, respectively. Both groups expressed that the percentage of a multi -tenant space dedicated to active use was less important compared to confirmation from the business operator that uses subject to overlay are bona -fide active uses, ' 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. The City received another request for exception on May 18, 2021: a business consisting of personal services for a vacant tenant space at 560 Main Street. Due to the non-active nature of the use, the Zoning Administrator denied the Zoning Certificate that would allow the use to occupy the tenant space on June 7, 2021. Active Ground Floor Use Overlay Planning Commission 2of5