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RECOMMENDATION 1. Find that the proposed amendments to the DSP and the PMC are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3); and 2. Adopt a resolution to amend the DSP related to the AGFUO, find the specific plan amendments consistent with the General Plan, and approve Case P21-0636, amendments to the DSP as shown in Attachment 1; 3. Introduce the draft ordinance, find the subject code amendments consistent with the General Plan, and approve Case P21-0637, amendments to the PMC as shown in Attachment 2; and 4. Consider identifying as a future City Council Work Plan item' an update to the AGFUO to include personal services as permitted uses after the initial six-month vacancy period, rather than a broader range of active and non-active uses as is currently allowed. FINANCIAL STATEMENT No fiscal impact to the City or public service is anticipated with the subject amendments to the DSP and PMC. 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.z 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. Ori 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; comments are outlined below. Also below is a summary of Planning Commission's discussion and recommendation. Staff suggests this could be considered as a work plan item for Fiscal Year 2022-23 to provide an opportunity to apply the AGFUO for a longer period of time, and evaluate conditions "post COVID." 2 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, on June 7, 2021, the Zoning Administrator denied the Zoning Certificate that would allow the use to occupy the tenant space. The applicant has since re -submitted a revised and updated application, which the Zoning Administrator also denied (on September 2, 2021); if appealed, this item will be scheduled for a future Planning Commission hearing. Page 2 of 7