History of the Downtown Overlay

Navigating the Zoning Code

In May 2022, EKN Development Group submitted an application to the City’s Planning Department to build the EKN Appellation Hotel Project at 2 Petaluma Boulevard South. However, as it was originally submitted, the EKN Appellation Hotel project did not comply with current maximum height, maximum lot coverage, or maximum floor area ratios of the City’s General Plan and Implementing Zoning Ordinance.  

When this happens, it is City staff’s job to work with applicants to navigate the City's zoning and requirements. In this case, the Planning Department advised the applicant that, if they wanted to continue with the project as is, they would need to apply for amendments to the General Plan and Zoning Text which would establish new standards under which the project could be reviewed. All costs for this process are paid for by the applicant. 

At the same time, the City realized that our zoning regulations are inhibiting development that might benefit our economy. Of the legal options available, staff and the applicant agreed the best tool they could use to address the project’s height of five stories plus a rooftop bar – and Petaluma’s desire for an economically vibrant downtown protected by historic preservation rules – would be to create the Downtown Housing & Economic Overlay.  

What is an Overlay?   

Overlays are often used by cities to update their zoning codes in small areas to encourage development. Cities often do this in areas that are under-utilized to allow for the development of new uses that can respond to the community's needs. Overlays do not change the basic laws of property rights. Property owners still control the use of their parcels, while the overlay serves as a tool for what is permitted on certain parcels.  

In this case, City staff considered that an Overlay could help achieve two objectives for the community beyond consideration of the EKN Appellation project: the first, strengthen existing businesses and encourage new businesses to move into Petaluma’s downtown, and second, extend Petaluma’s historic preservation rules to some downtown buildings that are not currently protected by them. 

This particular Overlay covers a two-block area of Downtown that includes empty parcels, parking lots, or properties with low intensity uses. It requires that any new construction or alterations to existing buildings that are located within the Commercial Historic District be subject to historical review. It also aims to encourage development within the Overlay with the larger aim of further protecting the aesthetic character of our downtown.  

Elsewhere, Petaluma has used overlays to address the Theatre District, the Flood Plain, the Historic District, and most recently, Mobile Home Parks and the Fairgrounds.  

New Rules for Downtown Petaluma

The Overlay establishes a process so that the City and community can consider future building projects in this two-block area of our Downtown that exceed current building height requirements while adding rules to ensure Petaluma's historic character is preserved.

The Overlay is designed to provide this area of Downtown Petaluma with improved housing and economic opportunities by allowing projects, on a case-by-case basis, to propose additional building height, from 45’ to 60-75’ if:

1. 1. the height increase is approved through a conditional use permit review process,
   2. an environmental review is performed under the California Environmental Quality Act, and
   3. if the Planning Commission finds that the project would provide local community benefits like public outdoor amenities (for example, widened sidewalks, additional street trees, new mid-block walkways/paseos, public plazas, parks, etc.), or publicly accessible private open space (such as a street-level park or rooftop open space that is open to the public at least 8 hours per day and at least 120 days per year).

The Overlay also is designed to attract development by increasing the required lot coverage to match that of many other existing downtown buildings. At the same time, the Overlay requires a higher percentage of affordable housing units in housing projects, beyond the required minimum of the city’s 15% inclusionary housing program.

At the same time, the Overlay adds stronger historic preservation protections by:

1. Requiring any project within the overlay to complete a historic resource evaluation.
2. Requiring developers to add new, wider sidewalks, street trees, and other public amenities on lots that they develop.

With the adoption of the Overlay by City Council, a project such as the EKN  Appellation Hotel a would require approval of a conditional use permit and Site Plan and Architectural Review permit approved by the Planning Commission and Historic and Cultural Preservation Committee.  

LEARN MORE

Read more about the separate projects on their individual pages:

• the EKN Appellation Hotel Project 
• the Downtown Housing & Economic Development Overlay

Both pages are updated regularly and have project details, documents, and FAQ’s.

Click HERE to view all the supporting documents pertaining to both the Downtown Housing & Economic Opportunity Overlay & EKN Appellation Hotel projects.

Fill out the form on the right to subscribe to receive project updates.

Read on below for an outline of project updates through 2024 and 2025.