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to subordinate signage is not part of the language. The City can require separate business licenses if it continues with active and non-active mixed-use. Mayor Brown reported the City Council received a letter from the Pleasanton Chamber of Commerce asking if now is the right time to increase the retail mandate to 100% versus 25%. Ms. Bonn explained the item increases the active use and retail is one type. As written, six months would commence when the lease is terminated. Community Development Director Ellen Clark clarified there is no change to the policy that allows for any use to move into the space after the six-month vacancy. In response to Mayor Brown, Ms. Bonn clarified the AGFUO applies to the first floor that faces Main Street. Director Clark explained she would need to look at each request on a case-by-case basis if a landlord requested to subdivide the space. In response to Mayor Brown, Director Clark clarified if the City Council decides to change the regulation any new project coming forward would have to conform to that regulation and could not propose the same sort of mixed-use seen at Iron Horse Realty. In response to Councilmember Balch, Director Clark clarified the AFGUO does not apply to a storefront with 10 feet and does not impact the tenant improvement building code. In response to Mayor Brown, City Manager Fialho explained there are no other areas of the City that have active and non-active splitting of a parcel to this degree. In response to Councilmember Balch, City Manager Fialho confirmed the City invests in different parts of the City based on its unique needs in different ways. He clarified there are different zoning documents citywide but there are no overlays like this anywhere else in the City. Mayor Brown opened the public hearing. Jan Batcheller reported she is the owner of two businesses on Main Street including the Photo Plant and Gift Source. She noted the PDA was formed solely as a promotions district that started Concerts in the Park, the farmer's market, and Christmas parade. She does not believe the City has the authority to tell property owners to whom they can and cannot rent their property if it is within the City's zoning. Erica Jasso reported she submitted her application for review in May, again in August, and at her appeal in September. She wants to ensure her application is held under the existing ordinance before any modifications are made to the ordinance tonight. Olivia Sanwong does not support mandating a certain percentage of a storefront for active use. She said there are a lot of retail vacancies all over the country and there is fierce competition between retailers looking to fill vacancies. She believes a mandate would hurt a unique spot like Main Street. Brad Hirst congratulated City Manager Fialho for his service to Pleasanton. He thanked the City Council for the action regarding parking on Quarry Lane. He expressed concern regarding proposed government overreach into private property rights and advised retail is in a very difficult position. Mayor Brown closed the public hearing. Councilmember Arkin moved to accept the staff's recommendation. She noted most residents state the things they like best about Pleasanton is downtown and preserving the small town and historic charm of downtown. She feels more retail, wine bars, restaurants, and other active use stores would drive pedestrian traffic. She pointed out that the nine vacancies have all been empty over six months and all could have accommodated non-active use. She believes the City needs to follow the intent of the DSP City Council Minutes Page 6 of 14 September 21, 2021