City of Palo Alto (ID # 4425) Planning & Transportation Commission Staff Report

City of Palo Alto (ID # 4425) Planning & Transportation Commission Staff Report Report Type: Meeting Date: 1/29/2014 Summary Title: Review of the Business and Economics Element of the Comprehensive Plan Title: Review of the Business and Economics Element of the Comprehensive Plan From: Chitra Moitra, Planner Lead Department: Planning & Community Environment RECOMMENDATION Staff recommends that the Planning and Transportation Commission (PTC) review and comment on the draft Business and Economics Element s vision statement, goals, policies and Programs (Attachment A) and support their inclusion in the Comprehensive Plan Update. BACKGROUND The Planning and Transportation Commission (PTC) discussed the overall themes, vision and goals of the existing Comprehensive Plan at a study session in 2009 and reviewed the current Business and Economics Element in January of 2010. At that meeting, the PTC discussed the applicability of the current goals, policies and programs within the Business and Economics Element concentrating on the viability of the existing document. The document was reviewed for relevance, clarity and compatibility with the overall Comprehensive Plan s vision. A matrix summarizing the status of individual policies and program element was prepared. Individual policies and programs that required substantive refinement were highlighted and the need for new policies and programs were identified. Subsequently, a second round of review was planned to discuss the updated version, but this approach was modified later and in May 2010, a subcommittee of three PTC members was formed to assist staff in updating the vision statements, goals, policies and programs for each element. The Business Element subcommittee, consisting of three PTC members (Commissioners Eduardo Martinez, Mark Michael, and Greg Tanaka), and City staff held a kickoff meeting in May 2012. The subcommittee met at least twice a month to for the next three months and recommended revisions, to the structure of the existing element, vision statement, City of Palo Alto Page 1

goals, policies and programs. The changes focused on addressing the City Council identified policy changes of: limiting the conversion of non-residential land to residential uses, limiting the loss of retail serving uses, strengthening provision of services where applicable and addressing sustainable development. The subcommittees work on the Business and Economics element resumed in March of 2013. Planning staff and PTC subcommittee worked closely with City s Economic Development Manager s on this element. The PTC subcommittee and City staff presented an initial rough draft of the element to the Palo Alto Chamber of Commerce in July of 2013 and received valuable input. The draft was also reviewed by downtown business and professional associations and representatives of Stanford University. City staff met with the Palo Alto Chamber of Commerce in January 2014 and received additional comments. If the PTC forwards the element to the Council, additional public outreach will be conducted, and the residential and business communities will have additional opportunities to review and comment on the Business Element. The Planning Commission version of the Business Element, as well as other Comprehensive Plan elements, will be the starting point for additional public outreach and community dialogue. DISCUSSION The intent of the January 29, 2014 meeting is to review the proposed format, vision statement, and the proposed goals, policies and programs and recommend inclusion of the Business and Economics Element into the Comprehensive Plan. The Planning Commission recommended version of the Business Element, as well as other Comprehensive Plan elements, will be the starting point for additional public outreach and community dialogue. The Structure/Format The 1998 Comprehensive Plan Business and Economics Element has six goals focusing on compatibility, diversity, growth and flexibility of business and employment centers. The proposed draft element highlights Palo Alto s legacy and strength as a technologically innovative city with two dominating business centers: Downtown and California Avenue. It recognizes Palo Alto as a regional shopping center and employment destination. It acknowledges Palo Alto s thriving retail districts, while illustrating ways of doing business in Palo Alto. The last goal of the proposed element acknowledges Palo Alto as an important tourist center because of its strategic location and presence of Stanford University. City of Palo Alto Page 2

EXISTING 1998-2010 Comprehensive Plan Business and Economics Element Goals Citywide Compatibility Diversity Growth Flexibility PROPOSED Draft 2025 Comprehensive Plan Business and Economics Element Goals Encouraging Innovation & Technology (NEW) Business Centers: Downtown & California Avenue Palo Alto as a Regional Shopping, Services and Employment Destination: (Stanford Shopping Center, Stanford Research Park, East Bayshore, San Antonio and East Meadow Circle Area) Thriving Retail Districts: Retail Districts El Camino Real South of Forest Mixed Use Area Town and Country Village Neig Neighborhood-Serving Retail Districts Mid-Town Charleston Plaza Edgewood Plaza Alma Plaza Centers All Centers Regional Centers: (University Av./ Downtown, SOFA, Stanford Shopping Center) Multi Neighborhood Centers: (California Av./Cal-Ventura, El Camino Doing Business in Palo Alto City of Palo Alto Page 3

Real, Town & Country Village) Neighborhood Centers Employment Districts: (Stanford Research Park, Stanford Medical Center, East Bayshore & San Antonio Road/Bayshore Corridor) Visitor & Tourism (NEW) The Vision Statement Staff is providing a summarized statement made by the Commissioners at the October 21, 2009 PTC meeting to assist the PTC with comments made at the earlier review. The existing 1998-2010 Comprehensive Plan Business and Economics Element vision statement is: Palo Alto s business environment will be exciting, dynamic and vital. Businesses will have access to a wide array of support services and will enjoy positive relationships with Palo Alto residents, officials, and City staff. The competing needs of residents and businesses will be balanced so that neighborhoods are protected and enhanced while business districts are competitive and attractive. The local economy will thrive, and a diverse array of goods and services will be provided to Palo Alto consumers. Most development will occur within Palo Alto s employment areas, and will be consistent with the role and character designated for each area by this Plan. The PTC made the following suggestions for changes to the vision statement: Include the word retail ; Use the term managing or balancing needs instead of competing needs ; Use the word transit areas instead of employment areas, and Acknowledge the interrelationship of neighborhoods, business and schools. The Business and Economics Element PTC subcommittee considered the above recommendations and drafted the following vision statement. Palo Alto supports a culture of innovation and entrepreneurship that welcomes innovators, entrepreneurs, business professionals, the University, visitors and the community. The City s business policies, balanced economic goals, vibrant downtown, and diverse local and regionalserving businesses combine to stimulate and support viable business opportunities. City of Palo Alto Page 4

The Goals, Policies and Programs The draft Business and Economics Element has significant updates to both the structure and content while simultaneously retaining the intent of existing goals, policies and programs. The Business and Economics Element subcommittee, with the guidance and recommendations of the Office of City s Economic Development Manager, made an effort to use more outcomebased language and updated it with more specific policy and program language. Though the number of goals remains the same plan, two new sections were added to the element to make it more comprehensive. Other sections were consolidated to reduce redundancy and improve clarity. The following are the highlights of significant PTC subcommittee, staff and Office of City s Economic Development Manager recommendations, revisions and additions. Encouraging Innovation and Technology Added policies and programs to improve and support Palo Alto s image as a global center of innovation, and Added policies and programs conducive for technology start-up businesses and to entrepreneurs. Focus on Downtown Palo Alto and California Avenue as major business centers Added policies and programs supporting a vibrant and dynamic Downtown with groundfloor retail and diverse mixed-use; Added policies and programs on creating positive parking solutions for downtown employees, shoppers and residents; Added policies and programs complementing California Avenues neighborhood serving retail character with entertainment and hospitality businesses; Added policies and programs encouraging efforts with local business owners and residents to provide parking solutions and improve existing automobile parking opportunities within the California Avenue district; Added policies and programs to improve storefront presence and streetscapes for California Avenue businesses, and Added policies and programs to facilitate Park Boulevard area in California Avenue Area Concept Plan as an important corridor of innovation and entrepreneurship. City of Palo Alto Page 5

Palo Alto as a regional shopping, services and employment destination Added policies and programs encouraging neighborhood-serving uses to facilitate surrounding areas within the East Meadow Circle, San Antonio and Charleston areas, and Added policies and programs planning for improvements in streetscape, vehicular traffic, and pedestrian traffic in the East Meadow Circle, San Antonio and Charleston areas. Thriving retail districts Added policies and programs supporting the commercial revitalization efforts in the Grand Boulevard Initiative, including updating the zoning ordinance and urban design guidelines to include principles of the Grand Boulevard initiatives, and Added policies and programs to explore economic redevelopment opportunities adjacent to the VTA s proposed Bus Rapid Transit stops. Doing Business in Palo Alto Added policies and programs to improve and local regulations and developmental review process for new businesses and home-based businesses; Added policies and programs to implement the City of Palo Alto s Office of Economic Development Policy to guide business growth in the City; Added a program to create strategies that would increase commercial and retail spending in Palo Alto, and Encourage businesses to uphold sustainable business principles in their practices and operations to minimize the carbon footprint, and encourage locally owned business. Visitors and tourism Added policies and programs to enhance Palo Alto s appeal to visitors by promoting its unique retail and lifestyle amenities, including nightlife, dinning, live entertainment, and cultural experiences, and Added a policy to explore opportunities to provide space for conference centers, hotels, entertainment activities, and other creative uses. City of Palo Alto Page 6

Staff has prepared a disposition table (Attachment B) to reflect the revisions and to demonstrate the progression of the existing adopted policies and programs to the new draft. The table also contains cross-references between the existing and proposed policies and programs. The following is a summary of the changes included in the proposed Business Element: 6 new goals, 33 new policies and 35 new programs have been added to this element; 11 policies and programs have been removed from the existing element because they were either completed, repetitive, or no longer applicable; 14 policies and programs have been carried over unchanged from existing element and, 27 policies and programs have been edited to update the language and carried over to the next element. Contextual narratives, which appear throughout the existing Business Element, are not included in the draft at this time. Staff will prepare revised narrative, figures, charts and photographs for the revised element prior to City Council review. Attachments: Attachment A: Business and Economics Element_FINALDRAFT (PDF) Attachment B: BEE Disposition TableFINAL (PDF) City of Palo Alto Page 7

BUSINESS AND ECONOMICS ELEMENT Vision Palo Alto supports a culture of innovation and entrepreneurship that welcomes innovators, entrepreneurs, business professionals, the University, visitors and the community. The City s business policies, balanced economic goals, vibrant downtown, and diverse local and regional-serving businesses combine to stimulate and support viable business opportunities. Business Element Page 1

BUSINESS AND ECONOMICS ELEMENT TABLE OF CONTENTS B1 B2 B3 ENCOURAGING INNOVATION AND TECHNOLOGY Foster the next generation of entrepreneurship in Palo Alto that builds on the City s legacy of innovation... page 4 BUSINESS CENTERS: DOWNTOWN and CALIFORNIA AVENUE Maintain and enhance the attractiveness of our two primary business centers by supporting an attractive and sustainable mix of commercial and office uses with pedestrian-oriented neighborhood shopping, dining and entertainment experiences.page 5 PALO ALTO AS A REGIONAL SHOPPING, SERVICES AND EMPLOYMENT DESTINATION Support Palo Alto s research parks, shopping centers and employment centers to improve and enhance economic vitality of the region.... page 8 Stanford Shopping Center Stanford Research Park East Bayshore, San Antonio and East Meadow Circle Area B4 THRIVING RETAIL DISTRICTS Preserve and improve existing retail districts, and enhance the vitality of businesses that serve Palo Alto s neighborhoods, commercial districts and visitors... page 10 Retail Districts El Camino Real South of Forest Mixed Use Area (SOFA) Town and Country Village Neighborhood-Serving Retail Districts Mid-Town Charleston Plaza Edgewood Plaza Alma Plaza B5 DOING BUSINESS IN PALO ALTO Support businesses that serve our residents, our visitors, and our workers, that provide needed local services and local revenues, and contribute to the economic vitality... page 12 Business Element Page 2

Business and the Community B6 VISITORS AND TOURISM Enhance Palo Alto s role as an international attraction to visitors and guests for its cultural, educational and civic appeal... page 16 Business Element Page 3

ENCOURAGING INNOVATION AND TECHNOLOGY B1 GOAL FOSTER THE NEXT GENERATION OF ENTREPRENEURSHIP IN PALO ALTO THAT BUILDS ON THE CITY S LEGACY OF INNOVATION B1.1 POLICY Enhance Palo Alto s attractiveness to entrepreneurs, venture capitalists, and investors by fostering an environment attractive to new businesses and startups. (New Policy) B1.1.1 PROGRAM Adopt feasible zoning standards to encourage start-up businesses and establish criteria to facilitate these businesses. (New Program) B1.1.2 PROGRAM Advocate for public-private partnerships that lead to lower cost office and retail space to support new businesses at appropriate locations throughout the City. (New Program) B1.1.3 PROGRAM Create partnership programs with the City, local businesses and non-profit organizations to nurture start-up businesses. (New Program) B1.2 POLICY Periodically review the zoning ordinance and Comprehensive Plan land use map to identify revisions that would accommodate new businesses and appropriate land uses in commercial districts. (New Policy) B1.2.1 PROGRAM Consider changes in multi-family residential and commercial zoning districts to encourage new live-work housing and increase flexibility in home-based business regulations. (New Program) B1.3 POLICY Nurture and support Palo Alto s image as a global center of innovation for emerging technology businesses. (Previous Policy B-4) (Edited) PREVIOUS POLICY B4: Nurture and support established businesses as well as new businesses. B1.3.1 PROGRAM Program) Use the City s website as a means to promote innovation and technology. (New B1.4 POLICY Explore implementing programs to encourage retention of small and growing businesses within Palo Alto. (New Policy) Business Element Page 4

BUSINESS CENTERS: DOWNTOWN AND CALIFORNIA AVENUE B2 GOAL MAINTAIN AND ENHANCE THE ATTRACTIVENESS OF OUR TWO PRIMARY BUSINESS CENTERS BY SUPPORTING AN ATTRACTIVE AND SUSTAINABLE MIX OF COMMERCIAL AND OFFICE USES WITH PEDESTRIAN-ORIENTED NEIGHBORHOOD SHOPPING, DINING AND ENTERTAINMENT EXPERIENCES DOWNTOWN PALO ALTO B2.1 POLICY Support and enhance the University Avenue/Downtown area as a vital mixed-use area containing retail, personal service, office, restaurant, and entertainment uses. Recognize the importance of an appropriate retail balance, including small local businesses, to the continued vitality of Downtown. (Previous Policy B-20) (Edited) PREVIOUS POLICY B20: Support and enhance the University Avenue/Downtown area as a vital mixed use area containing retail, personal service, office, restaurant, and entertainment uses. Recognize the importance of an appropriate retail mix, including small local businesses, to the continued vitality of Downtown. B2.1.1 PROGRAM Actively work with Downtown businesses, professional associations and the Palo Alto Chamber of Commerce to retain successful existing small and medium sized businesses. (New Program) B2.1.2 PROGRAM Identify and target businesses suitable for the Downtown area that will enhance commercial vitality as well as attract shoppers. (New Program) B2.1.3 PROGRAM Modify and update the Zoning Ordinance use category definitions and consider location restrictions to discourage aggregations of similar types of businesses in the Downtown area. (New Program) B2.2 POLICY Support a vibrant and dynamic Downtown environment that combines groundfloor retail, a diverse selection of dining and entertainment options, and mixeduse buildings with commercial office space and housing. (New Policy) B2.2.1 PROGRAM Introduce new urban design elements on cross streets between Lytton and Forest Avenues to enhance commercial environment beyond University Avenue. (New Program) B2.2.2 PROGRAM Develop pedestrian linkages to the Downtown area from the intermodal transit center, Stanford Shopping Center and Stanford University. (New Program) B2.2.3 PROGRAM Modify or revise commercial site development regulations to strengthen retail and pedestrian environment in the Downtown area. (New Program) Business Element Page 5

B2.3 POLICY Work with Downtown businesses and neighboring residents to create positive parking solutions for employees and visitors while reducing parking encroachment into adjacent residential neighborhoods. (New Policy) B2.3.1 PROGRAM (New Program) Monitor and periodically report on Downtown business district parking deficit. B2.3.2 PROGRAM Develop comprehensive parking management strategies supporting alternative transportation modes for Downtown business districts. (New Program) B2.3.3 PROGRAM Utilize residential parking permit programs for areas near Downtown where needed to alleviate encroachment into residential areas. (New Program) B2.4 POLICY Reduce traffic congestion and parking shortages by promoting transit alternatives for residents, workers and visitors. (New Policy) B2.5 POLICY Support local business efforts to encourage downtown employees to shop and dine at nearby commercial and retail establishments. (New Policy) B2.5.1 PROGRAM Communicate ongoing positive changes in the Downtown area to residents and visitors. (New Program) CALIFORNIA AVENUE California Avenue/Cal-Ventura B2.6 POLICY Maintain the existing orientation and scale of local-serving retail in the California Avenue business district. Foster the establishment of businesses and commercial services in the California Avenue business district that serve the adjacent neighborhoods as well as the Stanford Research Park. (Previous Policy B-23 & B- 24) (Merged & Edited) PREVIOUS POLICY B23: Maintain the existing local-serving retail orientation of the California Avenue business district. Discourage development that would turn the district into a regional shopping area or intrude into adjacent residential neighborhoods. PREVIOUS POLICY B24: Foster the establishment of businesses and commercial services in the California Avenue business district that serve the adjacent neighborhoods as well as Stanford Research Park B2.6.1 PROGRAM Actively work with the California Avenue business district and Palo Alto Chamber of Commerce to retain successful existing small and medium-sized businesses. (New Program) Business Element Page 6

B2.6.2 PROGRAM Identify and target businesses suitable for enriching commercial vitality of the area. (New Program) B2.7 POLICY Make the California Avenue business district inviting for restaurant, entertainment and hospitality businesses to complement neighborhood-serving retail. (New Policy) B2.8 POLICY Study the impact of surface parking lots on nearby businesses. Work with local business owners and residents to provide parking solutions and improve existing automobile parking opportunities within the California Avenue district. (New Policy) B2.8.1 PROGRAM Explore the feasibility of replacing the existing two-level parking structures on Cambridge Avenue with higher-density parking structures. (New Program) B2.8.2 PROGRAM Encourage local business owners to provide bicycle parking on California and Cambridge Avenues as a way to encourage local trips by modes other than single-occupant vehicles. (New Program) B2.8.3 PROGRAM Develop pedestrian linkages to California Avenue area from the Stanford Research Park, near by Stanford University residential neighborhoods and close by public transit stations. (New Program) B2.9 POLICY Encourage mixed-use development in the California Avenue area with active neighborhood-serving business uses on the ground floor. (New Policy) B2.9.1 PROGRAM Strengthen business opportunities and incentivize mixed-use development in the California Avenue area by making revisions to Pedestrian and Transit Oriented Development (PTOD) combining district regulations. (New Program) B2.9.2 PROGRAM Explore the feasibility of establishing Ground Floor retail overlay zoning for the California Avenue business district. (New Program) B2.10 POLICY Reinforce the economic strength of California Avenue businesses by implementing the California Avenue Streetscape Plan and strengthen the retail storefront presence by encouraging high quality pedestrian-oriented facade design. (New Policy) B2.10.1 PROGRAM Develop design guidelines for ground floor storefronts to improve the relationship with the street to attract more pedestrian traffic. (New Program) B2.10.2 PROGRAM Consider adding street fairs and additional farmer s market days to strengthen the vitality and image of California Avenue as a pedestrian environment for businesses. (New Program) B2.11 POLICY Adopt economic development policies and programs that facilitate the Park Boulevard area in California Avenue Area Concept Plan as an important corridor of innovation and entrepreneurship for small new companies. (New Policy) Business Element Page 7

B2.11.1 PROGRAM Encourage the formation of incubator businesses and provide affordable offices for small businesses along Park Boulevard. (New Program) B2.11.2 PROGRAM Update the Zoning Ordinance to allow for live-work spaces along Park Avenue near Caltrain station. (New Program) PALO ALTO AS A REGIONAL SHOPPING, SERVICES AND EMPLOYMENT DESTINATION B3 GOAL SUPPORT PALO ALTO S RESEARCH PARKS, SHOPPING CENTERS AND EMPLOYMENT CENTERS TO IMPROVE AND ENHANCE THE ECONOMIC VITALITY OF THE REGION STANFORD SHOPPING CENTER B3.1 POLICY Work with all stakeholders to ensure that the Stanford Shopping Center is sustained as a distinctive, competitive, high-quality regional shopping center. (Previous Policy B-22) (Edited) PREVIOUS POLICY B22: Work with Stanford University to ensure that the Stanford Shopping Center is sustained as a distinctive, competitive, high-quality regional shopping center. STANFORD RESEARCH PARK B3.2 POLICY Support the positive relationship between the local business community and Stanford University faculty, alumni and administrators. (Previous Policy B-28) (No Change) B3.3 POLICY Facilitate Stanford s ability to respond to changing market conditions that support the long-term viability of the Stanford Research Park. (Previous Policy B- 29) (No Change) B3.3.1 PROGRAM Consider modifications to zoning regulations to allow convenience-oriented businesses such as restaurants and office support services within the Stanford Research Park. (Previous Program B-14) (Edited) PREVIOUS PROGRAM B14: Modify zoning regulations to allow convenience-oriented businesses such as restaurants and office support services within the Stanford Research Park. Business Element Page 8

B3.3.2 PROGRAM Review policies and regulations guiding development at the Stanford Research Park and revise them as needed to allow improved responsiveness to changing market conditions. (Previous Program B-15) (No Change) B3.3.3 PROGRAM Study the feasibility of a "transfer of development rights" (TDR) program and other measures that would provide greater development flexibility within the Stanford Research Park without creating significant adverse traffic impacts or increasing allowable floor area.(previous Program B-16) (No Change) EAST BAYSHORE, SAN ANTONIO AND EAST MEADOW CIRCLE AREAS B3.4 POLICY Encourage retail and neighborhood-serving uses to facilitate surrounding residential and commercial areas within the East Meadow Circle, San Antonio and Charleston areas. (New Policy) B3.5 POLICY Encourage actions that would keep the cost of business space in the San Antonio Road and East Bayshore areas affordable. (Previous Policy B-33) (Edited) PREVIOUS POLICY B33: Discourage actions that could increase the cost of business space in the San Antonio Road and East Bayshore areas. B3.6 POLICY Encourage new, larger-scale, revenue-generating commercial development that complements the recent developments in the neighborhood areas. (New Policy) B3.7 POLICY Plan for lively streetscape accommodating continued vehicular traffic and increased pedestrian traffic. (New Policy) B3.8 POLICY As sites within the East Meadow Circle develop, guide growth by working together with business owners and residents of the area to create attractive design layout and positive traffic solutions. (New Policy) B3.9 POLICY Require employers and business owners to provide alternative transit solutions for employees to reduce traffic and parking congestion. (New Policy) Business Element Page 9

THRIVING RETAIL DISTRICTS B4 GOAL PRESERVE AND IMPROVE EXISTING RETAIL DISTRICTS, AND ENHANCE THE VITALITY OF BUSINESSES THAT SERVE PALO ALTO S NEIGHBORHOODS, COMMERCIAL DISTRICTS AND VISITORS B4.1 POLICY Maintain distinct neighborhood shopping areas that are attractive, accessible and convenient to nearby residents. (Previous Policy B-6) (No change) B4.2 POLICY Support a strong interdependence between existing commercial centers and the surrounding neighborhoods as a way of encouraging economic vitality. (Previous Policy B-2) (No Change) B4.3 POLICY Encourage revitalization of Palo Alto's commercial centers, using street corridor improvements as catalysts for economic revitalization in selected centers. (Previous Policy B-19 & B-27) (Merged & Edited) PREVIOUS POLICY B19: Use street corridor improvements as catalysts for economic revitalization in selected Centers. PREVIOUS POLICY B27: Support the upgrading and revitalization of Palo Alto's four Neighborhood Commercial Centers. B4.3.1 PROGRAM Identify and prioritize commercial centers in need of economic or physical revitalization. (Previous Program B-11) (Edited) PREVIOUS PROGRAM B11: Identify and prioritize Centers in need of economic or physical revitalization. RETAIL DISTRICTS El Camino Real B4.4 POLICY Strengthen the commercial viability of businesses along the El Camino Real corridor by encouraging development of pedestrian-oriented neighborhood retail and office centers. (Previous Policy B-25) (Edited) PREVIOUS POLICY B25: Strengthen the commercial viability of businesses along El Camino Real. Encourage the development of pedestrian-oriented neighborhood retail and office centers along the El Camino corridor. Business Element Page 10

B4.5 POLICY Encourage commercial investment and activity along El Camino Real that complements the Stanford Research Park and enhances its physical appearance. (Previous Policy B-30) (No Change) B4.5.1 PROGRAM Identify opportunities to create a concentration of commercial services to serve Stanford Research Park employees and visitors. (Previous Program B-17) (Edited) PREVIOUS PROGRAM B17: Identify opportunities along El Camino Real where a concentration of commercial services serving Research Park employees and visitors might be created. B4.5.2 PROGRAM (New Program) Support the commercial revitalization efforts of the Grand Boulevard Initiative. B4.6 POLICY Support business vitality by exploring opportunities to make El Camino Real more pedestrian and bicycle friendly. (New Policy) B4.6.1 PROGRAM Update the zoning ordinance and urban design guidelines to include principles of the Grand Boulevard initiative, addressing wider sidewalks, bicycle lanes and architecture that incorporate public spaces. (New Program) B4.6.2 PROGRAM Explore economic redevelopment opportunities adjacent to the VTA s proposed Bus Rapid Transit stops. (New Program) B4.6.3 PROGRAM Identify key sites on El Camino Real that would be suitable for Neighborhood Centers. Evaluate economics, design, traffic management, signage, and other regulatory opportunities and constraints for each site. Identify potential incentives that could be offered by the City to improve the area s appearance and economic vitality. (Previous Program B-12) (Edited) PREVIOUS PROGRAM B12: Identify key sites on El Camino Real that would be suitable for Neighborhood Centers. Evaluate economic, design, and regulatory opportunities and constraints for each site, and identify potential incentives that could be offered by the City to improve the area s appearance and economic vitality. B4.7 POLICY Promote the viability of the El Camino Real Corridor through appropriate land use, housing, density, parking, economic and public transit access polices as developed by the City and as promoted in related studies and efforts, such as the Grand Boulevard Initiative. (New Policy) South of Forest Mixed Use Area (SOFA) B4.8 POLICY Maintain uses in the South of Forest Area (SOFA) that complement the Downtown business district and serve the needs of nearby neighborhoods. (Previous Policy B-21) (Policy Split &Edited) Business Element Page 11

PREVIOUS POLICY B21: Maintain uses in the South of Forest Area (SOFA) that complement the Downtown business district, allow for the continued operation of automotive service uses, and serve the needs of nearby neighborhoods. B4.8.1 PROGRAM Allow for the continued operation of existing automotive service uses. (Previous Policy B-21) (Part of Previous Policy Split & Changed to a Program) B4.9 POLICY Support mixed-use land use policies adopted in the SOFA 2 Plan to maintain economic vitality of the area. (New Policy) Town and Country Village B4.10 POLICY Retain the local-serving retail character of Town and Country Village. (Previous Policy B-26) (No Change) B4.11 POLICY Encourage improvements to pedestrian, bicycle and auto circulation at Town and Country Village. (New Policy) Neighborhood-Serving Retail Districts: Mid-Town, Charleston Plaza, Edgewood Plaza, and Alma Plaza B4.12 POLICY Maintain the existing scale and mix of small and medium-size neighborhoodserving retail businesses in all the retail districts. (New Policy) B4.13 POLICY Make necessary improvements to road signage, traffic signals and lane striping to improve auto traffic flow in the neighborhood serving shopping areas. (New Policy) B4.14 POLICY Support retention of grocery stores in neighborhood-serving retail districts such as Alma Plaza. (New Policy) Business Element Page 12

DOING BUSINESSES IN PALO ALTO B5 GOAL SUPPORT BUSINESSES THAT SERVE OUR RESIDENTS, OUR VISITORS, AND OUR WORKERS, THAT PROVIDE NEEDED LOCAL SERVICES AND LOCAL REVENUES, AND CONTRIBUTE TO THE CITY S ECONOMIC VITALITY BUSINESS AND THE COMMUNITY B5.1 POLICY Support economic development by promoting Palo Alto s image as a businessfriendly community and supporting proactive partnerships between the City and business community. (Previous Policy B-10) (Edited) PREVIOUS POLICY B10: Promote Palo Alto s image as a business-friendly community. Assume an active role in fostering new business, particularly small, start-up businesses in emerging industries. B5.2 POLICY Support local regulations that have minimal impacts on small and medium-size locally-owned businesses. (New Policy) B5.2.1 PROGRAM Improve the speed, consistency, and predictability of the development review process to reduce time and cost constraints for operating or new businesses. (New Program) B5.2.2 PROGRAM Encourage streamlining the City administrative and regulatory processes to expedite permit processing, to help businesses to operate economically. (Previous Policy B-16) (Policy changed to Program) (Edited) PREVIOUS POLICY B16: Encourage streamlining of City administrative and regulatory processes wherever possible. Reduce inefficiencies, overlap, and time delays associated with these processes. B5.2.3 PROGRAM Simplify the design review process for small-scale changes to previously approved site plans and buildings. (Previous Program B-5) (No Change) B5.2.4 PROGRAM Improve design guidelines to reduce ambiguity and more clearly articulate design principles to the business community. (Previous Program B-7) (No Change) B5.2.5 PROGRAM Evaluate alternatives to floor area ratios (FAR) such as through the use of building envelope restrictions and/or performance standards to achieve the same development limitations in a more flexible manner. (Previous Program 8) (Edited) PREVIOUS PROGRAM B8: Evaluate methods to lessen the development limitations currently imposed by adopted floor area ratios in a more flexible manner. Such methods could include the use of building envelope restrictions. B5.2.6 PROGRAM Revise the Sign Ordinance to more clearly reflect community-based standards and requirements relating to size, number of signs, allowed locations and design. (Previous Program B-9) (No Change) Business Element Page 13

B5.2.7 PROGRAM Regularly evaluate ways to improve coordination of the City's environmental review, permitting, and inspection processes, including issues relating to hazardous materials and water quality regulation. (Previous Program B-6) (No Change) B5.3 POLICY Use a variety of planning and regulatory tools, including growth limits, and floor area capacity exemptions to ensure no additional net loss of retail space due to any proposed land use and other policy changes. (Previous Policy B-1) (Edited) PREVIOUS POLICY B1: Use a variety of planning and regulatory tools, including growth limits, to ensure that business change is compatible with the needs of Palo Alto neighborhoods. B5.4 POLICY Encourage and support small, independent or locally-owned businesses as a means of retaining local services and diversifying the City s economic base. (Previous Policy B-5 & B-7) (Merged & Edited) PREVIOUS POLICY B5: Maintain distinct business districts within Palo Alto as a means of retaining local services and diversifying the City s economic base. PREVIOUS POLICY B7: Encourage and support the operation of small, independent businesses. B5.4.1 PROGRAM Develop policies, programs and regulations to support the viability of homebased businesses in Palo Alto. (New Program) B5.5 POLICY Encourage new businesses that meet the City s business, economic and qualityof-life goals to locate in Palo Alto. (Previous Policy B-9) (Edited) PREVIOUS POLICY B9: Encourage new businesses that meet the City s business and economic goals to locate in Palo Alto. B5.5.1 PROGRAM Implement the City of Palo Alto s Office of Economic Development Policy to guide business development in the City. (Previous Program B-2) (Edited) PREVIOUS PROGRAM B2: Implement the City's Economic Resources Plan. B5.5.2 PROGRAM Evaluate the effectiveness of the City s Office of Economic Development Policy and make appropriate changes to support the health of our local economy and our competitiveness as a place to do business. Consider developing additional elements to the Economic Development Policy that address the following: (New Program) Protocol and performance measures for providing incentives to attract specific industries or companies to locate in Palo Alto; Performance measures for providing assistance to existing companies; and Performance measures to include economic impact, fiscal impact, filling gaps in retail spending, job quality and others. Business Element Page 14

B5.5.3 PROGRAM Develop strategies that would create opportunities to increase commercial and retail spending in Palo Alto. (New Program) B5.6 POLICY Support the downtown Business Improvement District partnership, and encourage the development of other businesses district associations. Explore grants and public/private partnerships as a means to enhance the public amenities and other place-making elements. (Previous Policy B-11) (Edited) PREVIOUS POLICY B11: Encourage the use of public/private partnerships as a means of redeveloping and revitalizing selected areas. B5.7 POLICY Where revitalization is desired, explore incentives to encourage owners to upgrade commercial properties. (Previous Policy B-17) (Edited) PREVIOUS POLICY B17: Where redevelopment is desired, encourage owners to upgrade commercial properties through incentives such as reduced parking requirements, credit for on-street parking, and increases in allowable floor area. Use such incentives only where they are needed to stimulate redevelopment or contribute to housing or community design goals. B5.8 POLICY Encourage the renovation and reuse of long-term vacant buildings and lots for commercial purposes. (Previous Policy B-8) (Edited) PREVIOUS POLICY B8: Encourage the renovation and reuse of long-term vacant buildings. B5.9 POLICY Support the development of technologically advanced communications infrastructure and other improvements that will facilitate the growth of emerging industries and businesses. (Previous Policy B-13) (Edited) PREVIOUS POLICY B13: Support the development of technologically-advanced communications infrastructure and other improvements that will facilitate the growth of emerging telecommunications industries. B5.10 POLICY Encourage providers of electronic information networks and other communications infrastructure to maximize potential benefits for Palo Alto businesses, employers and other potential users. (Previous Policy B-14) (Edited) PREVIOUS POLICY B14: Work with electronic information network providers to maximize potential benefits for Palo Alto businesses, schools, residences, and other potential users. B5.11 POLICY Encourage businesses to uphold environmental and sustainable principles in their business practices and operations. (New Policy) Business Element Page 15

B5.12 POLICY Encourage local sourcing of materials to minimize the carbon footprint associated with imported goods and encourage locally owned business to enhance the economic impact of local expenditures. (New Policy) VISITORS AND TOURISM B6 GOAL ENHANCE PALO ALTO S ROLE AS AN INTERNATIONAL ATTRACTION TO VISITORS AND GUESTS FOR ITS CULTURAL, EDUCATIONAL AND CIVIC APPEAL B6.1 POLICY Encourage Palo Alto businesses to perform leadership role in regional economic issues that impact the local economy. (Previous Policy G-8) (Edited) PREVIOUS POLICY G8: Encourage Palo Alto residents and businesses to actively participate in regional programs and organizations. B6.2 POLICY Enhance Palo Alto s appeal to visitors and guests by promoting its unique retail and lifestyle amenities, including nightlife, live entertainment, and cultural experiences. (New Policy) B6.3 POLICY Explore opportunities to create new City events with a focus on attracting visitors through cultural, musical, theatrical and other artistic experiences. (New Policy) B6.4 POLICY Stimulate nightlife by providing more opportunities for artists to make use of public spaces. (New Policy) B6.4.1 PROGRAM Streamline permitting processes for areas determined as appropriate for this purpose. (New Program) B6.5 POLICY Explore opportunities to provide space for conference centers, arts and entertainment activities, and other creative uses. (New Policy) B6.6 POLICY Plan and support the location of new hotels near transit hubs to minimize impacts on circulation, existing land uses, and scale of development. (New Policy) Business Element Page 16

B6.6.1 PROGRAM Coordinate efforts with the Palo Alto Chamber of Commerce, Stanford University, and the University's cultural programs and facilities to promote tourism and visitors. (New Program) B6.7 POLICY Encourage investments in the tourism industry that benefit existing residents, retailers, and support community reinvestment. (New Policy) Business Element Page 17

BUSINESS AND ECONOMICS ELEMENT UPDATE GOALS, POLICIES AND PROGRAMS DISPOSITION 1998-2010 Business and Economics Element MOVED TO/FROM OTHER ELEMENTS COMPLETE /REPETITIVE / NOT APPLICABLE NO CHANGE EDITED SPLIT MERGED STATUS CHANGE ON HOLD/ NOT FUNDED REMOVED 2025 Business and Economics Element GOAL B-1: A Thriving Business Environment that is Compatible with Palo Alto s Residential Character and Natural Environment. Policy B-1 X B5.3 Policy B-2 X B4.2 Policy B-3 Not Applicable X GOAL B-2: A Diverse Mix of Commercial, Retail, and Professional Services Policy B-4 X B1.3 Policy B-5 X Merged with Policy B-7 B5.4 Policy B-6 X B4.1 Program B-1 Not Applicable X Policy B-7 X Merged with Policy B-5 Policy B-8 X B5.8 GOAL B-3: New Businesses that Provide Needed Local Services and Municipal Revenues, Contribute to Economic Vitality, and Enhance the City s Physical Environment. Policy B-9 X B5.5 Program B-2 X B5.5.1 Policy B-10 X B5.1 Policy B-11 X B5.6 Program B-3 Policy B-12 Repetitive (in LUE) Repetitive (in LUE) Policy B-13 X B5.9 Program B-4 Repetitive X Policy B-14 X B5.10 Policy B-15 Repetitive (in LUE) X X X Page 1 BEE Disposition Table.xls

1998-2010 Business and Economics Element MOVED TO/FROM OTHER ELEMENTS COMPLETE /REPETITIVE / NOT APPLICABLE NO CHANGE EDITED SPLIT MERGED STATUS CHANGE ON HOLD/ NOT FUNDED REMOVED 2025 Business and Economics Element GOAL B-4: City Regulations and Operating Procedures that Provide Certainty and Predictability and Help Businesses Adapt to Changing Market Conditions. B16 Policy X Policy changed to Program B5.2.2 B05 Program X B5.2.3 B06 Program X B5.2.7 B07 Program X B5.2.4 B08 Program X B5.2.5 B09 Program X B5.2.6 B10 Program Not Applicable X GOAL B-5: Attractive, Vibrant Business Centers, Each with a Mix of Uses and a Distinctive Character. B17 Policy X B5.7 B11 Program X B4.3.1 B18 Policy Not Applicable B19 Policy X Merged with Policy B27 B4.3 B20 Policy X B2.1 B21 Policy X X B4.8 B4.8.1 B22 Policy X B3.1 B23 Policy B24 Policy X X Merged Policy B23 & 24 B2.7 B25 Policy X B4.4 B12 Program X B4.6.3 B26 Policy X B4.10 Page 2 BEE Disposition Table.xls

1998-2010 Business and Economics Element MOVED TO/FROM OTHER ELEMENTS COMPLETE /REPETITIVE / NOT APPLICABLE NO CHANGE EDITED SPLIT MERGED STATUS CHANGE ON HOLD/ NOT FUNDED REMOVED 2025 Business and Economics Element B27 Policy X Merged with Policy B19 B13 Program Not Applicable X GOAL B-6: Thriving Employment Districts at Stanford Research Park, Stanford Medical Center, East Bayshore/San Antonio Road Area and Bayshore Corridor that Complement the City s Business and Neighborhood Centers. B28 Policy X B3.2 B29 Policy X B3.3 B14 Program X B3.3.1 B15 Program X B3.3.2 B16 Program X B3.3.3 B30 Policy X B4.5 B17 Program X B4.5.1 B18 Program Not Applicable X B31 Policy Deleted X X B32 Policy Complete X B33 Policy X B3.5 G8 Policy X B6.1 Moved to/ from Elements=1 Policies & Programs Completed, Removed & Not Applicable=12 Policies changed to Programs or merged=7 No Change= 14 Edited= 27 Complete but modified=0 Total = 38 Policies (24) and Programs (14) Page 3 BEE Disposition Table.xls

NEW GOALS (6), POLICIES (33) AND PROGRAMS (35) ADDED GOALS POLICIES PROGRAMS GOALS POLICIES PROGRAMS GOALS POLICIES PROGRAMS B1 B2 B3 B1.1 B1.1.1 B2.1.1 B3.4 B1.1.2 B2.1.2 B1.1.3 B2.1.3 B3.6 B1.2 B1.2.1 B2.2 B2.2.1 B3.7 B1.3.1 B2.2.2 B3.8 B1.4 B2.2.3 B3.9 B2.3 B2.3.1 B2.3.2 B2.3.3 B2.4 B2.5 B2.5.1 B2.6.1 B2.6.2 B2.7 B2.8 B2.8.1 B2.8.2 B2.8.3 B2.9 B2.9.1 B2.9.2 B2.10 B2.10.1 B2.10.2 B2.11 B2.11.1 B2.11.2 BEE Disposition Table.xls Page 4

B4 B5 B6 B4.5.2 B5.2 B5.2.1 B6.2 B4.6 B4.6.1 B5.4.1 B6.3 B4.6.2 B5.5.2 B6.4 B6.4.1 B4.7 B4.9 B5.5.3 B6.5 B4.11 B5.11 B6.6 B6.6.1 B4.12 B5.12 B6.7 B4.13 B4.14 BEE Disposition Table.xls Page 5