Downtown Housing & Economic Opportunity Overlay

The Petaluma City Council has approved the Downtown Housing & Economic Opportunity Overlay—a meaningful step toward breathing new life into underutilized parts of Petaluma's historic downtown. Focused on a small 2-block area along Petaluma Blvd S, this overlay encourages thoughtful redevelopment that will enhance our community while honoring Petaluma’s unique character.

By allowing carefully reviewed projects to build a little higher or more densely in exchange for providing community benefits, the overlay creates opportunities for high-quality development that serves us all. These benefits might include beautifully designed buildings, public open spaces, streetscape improvements, and preservation of Petaluma's cultural and historic resources. Every project must meet strict standards to ensure compatibility with our cherished downtown, including limits on height and requirements for exceptional design and architectural quality.

The overlay empowers Petaluma to revitalize long-vacant sites—like the former Bank of the West, the Walnut Park Grill, and Fourth & C properties—bringing new housing, businesses, and economic activity that will increase foot traffic and support our beloved local shops and restaurants. It also aligns with the City’s climate action goals by encouraging walkable, transit-friendly development close to the SMART station.

With a clear focus on preserving the charm and history of downtown while providing new opportunities for economic growth, the Downtown Housing & Economic Opportunity Overlay is an investment in Petaluma’s future—a future that remains vibrant, sustainable, and rooted in our history.

Current Referendum

There is an effort underway to collect signatures to require an election and reverse the Downtown Housing & Economic Opportunity Overlay that was approved by City Council on April 21. We encourage you to be informed about the Downtown overlay and please reach out if you have any questions.

We invite all residents to read through the FAQs on this page below, and review background information on the following additional websites:

• the Overlay History page, and
• the EKN Appellation Petaluma Hotel project page
• To read the approved referendum summary, please click HERE.

as you decide whether or not to sign. Should you have any additional questions, please reach out to the Brian Oh, Director of Community Development, at [email protected].

To read a Summary of the Referendum Against the Overlay, click HERE.