5.070 Downtown Housing and Economic Opportunity Overlay Zone.

A. Purpose. It is the intent of the Downtown Housing and Economic Opportunity Overlay Zone to facilitate the

development of residential uses, provide for orderly economic development, ensure the preservation of historic

buildings, cultural resources, and the Commercial Historic District, strengthen and expand pedestrian activity

through new design and land use controls, and incorporate sites with the greatest opportunity for redevelopment

activity. The regulations established for this district shall apply to any property described in Section 5.070(B) to

include the development of new Roor area or new buildings, of any size.

B. District Boundary. The proposed Downtown Housing and Economic Development Overlay shall apply to

Subarea A as shown in Figure 5.1 below. The boundary of the Downtown Housing and Economic Opportunity

Overlay Zone is generally described follows:

1. Subarea A. Thirteen parcels within two city blocks bounded by B Street, Petaluma Boulevard South, D

Street and 4th Street;

Figure 5.1 District Boundary Downtown Housing and Economic Development

Overlay

The Petaluma Implementing Zoning Ordinance is current through Ordinance 2907, passed September 8, 2025.

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C. Ground Floor Uses, Pedestrian/Façade Activation Zone and Ground Floor Residential Use Zone. To continue the

land uses and forms established by the parcels that abut or confront the subarea and to allow for speciQc land

uses and the design of new buildings to reRect the characteristics and the context of the subarea, a Pedestrian/

Façade Activation Zone and Subarea A Ground Floor Residential Use Zone will apply to the subarea.

1. Pedestrian/Façade Activation Zone and Ground Floor Residential Use Zone Established. A Pedestrian/Façade

Activation Zone and a Ground Floor Residential Use Zone are established as shown in Figure 5.2. Land uses

and ground Roor development standards apply as provided for in this section.

2. Purpose. The Pedestrian/Façade Activation Zone is intended to enhance the pedestrian experience to

ensure that new buildings are occupied by pedestrian-oriented uses and that they present attractive building

facades in speciQc locations to reRect the land use pattern and vibrancy of active pedestrian-oriented streets

established in the historic core of the downtown. The Ground Floor Residential Use Zone is intended to create

new opportunities for residential development and to provide a land use transition from the retail and service

uses provided in the downtown core to the lower-intensity retail and residential areas beyond the downtown.

3. Pedestrian/Façade Activation Zone. Permitted uses in any new ground Roor area within 30 feet of the

public right-of-way in the Pedestrian/Façade Activation Zone shall be as follows, and each use, as used in this

section, shall be deemed a ground Roor activating use:

a. Artisan Shop;

b. Library, Museum, Art Gallery;

c. Bank, Financial Services;

d. Personal Services;

e. Fitness/Health Facility;

The Petaluma Implementing Zoning Ordinance is current through Ordinance 2907, passed September 8, 2025.

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f. Restaurant, Café, CoTee Shop;

g. General Retail, 25,000 sf or Less;

h. Studio - Art, Dance, Martial Arts, Music, etc.;

i. Groceries/Specialty Foods, 25,000 sf or Less.

4. Ground Floor Uses. New ground Roor area not identiQed as a Pedestrian/Facade Activation Zone may be

occupied by any use identiQed in Table 4.3 of Chapter 4.

5. Multi-Family Residential Allowed in Speci:c Locations. Multi-family residential uses shall be a permitted use

on the ground Roor in any portion of a parcel that is not within the Pedestrian/Façade Activation Zone.

6. Pedestrian/Façade Activation Development Standards. Additional development standards apply to the

ground Roor facades of the portion of new building or new Roor area constructed within the Pedestrian/

Façade Activation Zone. These development standards are provided in Table 5.1, below.

Table 5.1. Pedestrian/Façade Activation Development Standards

Feature Standard Applies to First Floor

Storefront Transparency, 60 percent Facades facing sidewalks,

minimum glazing pedestrian walks, or publicly

accessible outdoor spaces

Blank Walls, maximum length 30’ Facades facing sidewalks,

pedestrian walks, or publicly

accessible outdoor spaces

Interior Partitions or shelving 30’ Tenant spaces facing sidewalks,

above 36” in height when parallel pedestrian walks, or publicly

with storefront, minimum accessible outdoor spaces; Does

setback not apply to any partition that is

perpendicular to the storefront

or any shelving that is abutting a

wall

Window Signs, maximum 15 percent Windows facing sidewalks,

coverage pedestrian walks, or publicly

accessible outdoor spaces

Figure 5.2 Subarea A, Pedestrian/Facade Activation Zones + Residential Allowed

Zones

The Petaluma Implementing Zoning Ordinance is current through Ordinance 2907, passed September 8, 2025.

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D. Development Standards, General. Development standards in the Downtown Housing and Economic

Development Overlay Zone shall be as provided for in Table 4.10 of Chapter 4, except as provided for in Table 5.2,

below.

Table 5.2. Development Standard

Setbacks

Front 0'

Rear 0'

Street-side 0'

Interior Side 0'

Height1 45' Max

60' Max With Conditional Use Permit2

75' Max With Conditional Use Permit3

Minimum Ground Floor Height 14' Roor-to-

Roor for any

Building over

45'

Stepbacks Per Tables 5.2

through 5.4

The Petaluma Implementing Zoning Ordinance is current through Ordinance 2907, passed September 8, 2025.

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Table 5.2. Development Standard

Setbacks

Lot Coverage 80% Max

100% Max With Conditional Use Permit4

Floor Area Ratio 2.5 Max

Notes:

1 Under the Overlay, new buildings to be constructed above the 45-foot height limit would not be subject

to the height exceptions provided for in Section 12.020.

2 Additional height above 45 feet may be granted, subject to subsection (F) of this section.

3 Additional height above 60 feet may be granted, subject to subsection (G) of this section.

4 Additional lot coverage above 80 percent may be granted, subject to subsection (H) of this section.

E. Development Standards, Stepbacks Apply. Upper Roor stepbacks apply as shown in Tables 5.3 to 5.5 to require

that any portion of a building above a certain height be separated from a property line. As used in this subsection,

the “primary street frontage” stepbacks provided in Tables 5.3 to 5.5 apply to any parcel that abuts Petaluma

Boulevard South, Kentucky Street, Fourth Street, Western Avenue, and Washington Street, and “other street

frontage” is any other street. The stepbacks shall include usable balconies, usable open space, or be landscaped,

and may not be used for mechanical equipment, storage, or other non-active uses.

Table 5.3. Stepback: General

Stepback (Based on Building Height)

0-45’/4-stories Above 45’/4-stories Above 60’/5-stories

(whichever is less) (whichever is less)

Primary Street Frontage NA 8’ Min 16’ Min

Other Street Frontage NA 5’ Min 5’ Min

Table 5.4. Stepback: Confronting a Residential Use

Stepback (Based on Building Height)

0-30’/2-stories Above 30’/2-stories

(whichever is less)

Primary Street Frontage NA 10’ Min

Other Street Frontage NA 5’ Min

The Petaluma Implementing Zoning Ordinance is current through Ordinance 2907, passed September 8, 2025.

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Note:

1 Additional 10’ stepback to be applied for every story above 30’/2-stories.

Table 5.5. Stepback: Abutting Historic Resource

Stepback (Based on Building Height)

0-30’/2-stories Above Above Above

30’/2-stories 45’/4-stories 60’/5-stories

(whichever is (whichever is (whichever is

less) less) less)

Primary Street NA 0’ 8’ Min 16’ Min

Frontage

Other Street NA 0’ 5’ Min 5’ Min

Frontage

Interior Side, NA 10’ Min 10’ Min 10’ Min

abutting

historic

resource

Rear, abutting 0’ 8’ Min 8’ Min 8’ Min

historic

resource

F. Criteria to Exceed 45 Feet. The Planning Commission may approve a conditional use permit to allow for

additional height up to 60 feet pursuant to the Qndings listed in this subsection and the review criteria set forth in

Section 24.060(E):

1. That the additional height is consistent with the applicable purposes of the Overlay;

2. That the additional height makes a positive contribution to the overall character of the area and that the

building will be compatible with its surroundings. The “positive contribution” and “compatibility” will be

assessed using a combination of visual studies, line-of-sight drawings, photo simulations, 3-D modeling, and

view shed analysis;

3. That the additional height would not adversely aTect the exterior architectural characteristics or other

features of the property which is the subject of the application, nor adversely aTect its relationship in terms

of harmony and appropriateness with its surroundings, including neighboring structures, nor adversely aTect

the character, or the historical, architectural, or aesthetic interest or value of the district;

4. That the additional height will not result in unreasonable restrictions of light and air to adjacent

properties or the public right-of-way, or otherwise be detrimental to the public health, safety, or welfare;

The Petaluma Implementing Zoning Ordinance is current through Ordinance 2907, passed September 8, 2025.

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5. That the building design expresses a relationship to an existing datum line or lines of the street wall or

adjacent historic resource, if any; and

6. That the overall building design and the use of the site demonstrate exceptional architecture/design.

“Exceptional” architecture/design may be demonstrated by at least three of the following:

a. The use of innovative, creative or original architectural concepts, materials, or building techniques;

b. The use of visual elements that contribute positively to the built environment, such as well-

proportioned facades, pleasing materials, and unique features;

c. The use of innovative building systems or forms, and/or the use of creative design, to increase

building eSciency and to reduce energy consumption;

d. The use of low impact development and green infrastructure features in sustainable design and

landscaping; or

e. The use of high-quality building materials that contribute to long-term durability and visual quality.

The determination of exceptional architecture/design shall be guided by the input of a qualiQed professional

chosen by the City.

G. Criteria to Exceed 60 Feet. The Planning Commission may allow for additional height up to 75 feet, if a

conditional use permit is granted per subsection (F) of this section, and when a proposed project includes at least

one of the community beneQts described in subsections (G)(1) and (G)(2) of this section, and one of the community

beneQts described in subsection (G)(3), (G)(4), or (G)(5) of this section:

1. Improves the existing streetscape by providing widened sidewalks, additional street trees, new mid-block

walkways/paseos, public plazas, parks, etc. For a project that would widen the sidewalk by increasing the

ground Roor building setback, a public outdoor amenity space shall be included in the design, and this space

shall be designed and conQgured to provide adequate space for pedestrian movement and activity; or

2. Provides publicly accessible private open space, such as a street-level park or rooftop open space that is

open to the public at least eight hours per day and at least 120 days per year; and

3. Respects and/or preserves cultural, historical, or archaeological resources that exist or occur on site or

within the Overlay; or

4. Exceeds the minimum number of inclusionary dwelling units required by Section 3.040; or

5. Provides all required parking below grade.

H. Criteria to Exceed 80 Percent Lot Coverage. The Planning Commission may approve a conditional use permit to

allow for additional lot coverage of up to 100 percent pursuant to the review criteria set forth in Section 24.060(E),

if any one or more of the following are true for a project:

The Petaluma Implementing Zoning Ordinance is current through Ordinance 2907, passed September 8, 2025.

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1. The development improves the existing streetscape by providing widened sidewalks, additional street

trees, new mid-block walkways/paseos, public plazas, parks, etc.;

2. The additional lot coverage would reRect the prevailing development pattern established by the existing

development within the block or abutting block;

3. The development includes adequate provision for recycling and solid waste;

4. The development includes adequate space for street trees; or

5. The development includes other measures to enhance the pedestrian environment.

I. Jobs/Housing Balance. Any application for a nonresidential project or a mixed use project with a nonresidential

component that seeks to build above 45 feet pursuant to Section 5.070(F) must include an analysis of the impact

of the project on the jobs-housing balance in the City, including how much demand for aTordable housing the

project will create as compared to the amount of aTordable housing created as part of the project.

The analysis shall be based on available pertinent information including information provided by the applicant

estimating the number of permanent jobs to be created in the operations of the project, type of job (part-time or

full-time), wages, and beneQts. The developer may submit updated information to the City at any time during the

application process.

This additional information is to allow the City, to the extent reasonably possible to disclose the foreseeable

impact of the project on the jobs-housing balance in Petaluma.

J. Sunset Provision. Unless otherwise amended by the City Council, the ordinance codiQed in this section shall

expire on the eTective date of a zoning ordinance that implements the adopted 2040 General Plan. (Ord. 2907 § 4,

2025; Ord. 2906 § 4, 2025; Ord. 2900 § 5 (Exh. C), 2025.)