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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 PDA and the Chamber of Commerce. Pleasanton Downtown Association and Chamber of Commerce On July 13 and July 14, staff presented potential changes to the AGFUO to the PDA 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, as demonstrated by the "front -facing" and visible business operation, a point-of-sale mechanism, and business hours that are generally consistent with retail and restaurant uses. Therefore, the focus of the feedback was directed towards the City having the ability to verify the authenticity of an active use instead of dictating a specific percentage. Additionally, several members of the Chamber expressed that a personal service use may create foot traffic equal to or greater than a retail or restaurant establishment and should be considered as an active use. A member of the Chamber also commented that signage for a non-active use that shares a tenant space with an active use should be secondary in size compared to the signage for an active use. Finally, members of both groups expressed that where an active use and a non-active use share a tenant space, that they both be required to obtain separate business licenses. Correspondence received to -date from both the PDA and Chamber of Commerce is included as Attachment 4 to this report. PLANNING COMMISSION DISCUSSION AND ACTION As noted, the Planning Commission reviewed the amendments to the DSP and PMC related to the AGFUO at its July 28, 2021, meeting. In keeping with City Council's direction, staff recommended that the Planning Commission increase the proportion of active uses in a tenant space with multiple uses,3 and incorporated recommendations from the Chamber requiring signage for a non-active use be subordinate when the tenant space is shared with an active use, and that a separate business licenses for required for each use. 3 Among other changes, staffs recommendation to Planning Commission was to increase the depth of the tenant space required for an active use from 25% to 60%, coupled with a requirement that at least 60% of the leasable square footage area be dedicated to the active use. Page 3 of 7