Downtown Housing & Economic Opportunity Overlay

To help residents understand how the Overlay could benefit our local businesses, preserve our historic Downtown, and keep our city center vibrant and cared for, we invite interested community members to explore the area with us and discuss what the Overlay does and does not do with Brian Oh, Director of Community Development, at one of the following events:

Walking Tour of the Downtown Overlay
Meet at the corner of B Street and Petaluma Blvd

• Tuesday, May 20, from 12-1pm
• Wednesday, May 21 from 9-10am

Community Development Office Hours
Hosted by the Petaluma Historical Museum & Library (20 4th St, Petaluma, CA 94952)

• Wednesday, May 21, from 3:30-5:30pm (drop-in when convenient)

Because we want to make as many events accessible to as many residents as possible, please only sign up for one event. Walking tours are limited to 20 people per tour, but if interest is greater than available spots, please email [email protected] and we may be able to plan additional tours or Office Hours to accommodate our community.

SIGN UP HERE

You can also email Brian Oh directly with your questions at [email protected].

Thank you for your partnership in helping Petaluma thrive, today and into the future!

Revitalization with Care

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 as you decide whether or not to sign:

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

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

Referendum Cost

In a recent article in the Argus-Courier, Sonoma County Clerk-Recorder-Assessor-Registrar of Voters Deva Proto estimated that it would cost between $121,800 and $365,390 for a special election, or around $68,000 to $115,000 on top of the regular election costs for the next regularly scheduled election in November 2026. Funds to support a referendum would be drawn from the City's General Fund. 

Key Referendum Dates