Item 22 - Transit Zoning Code Amendments Resolution

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ZOA No. 2024-02 & AA No. 2024-03 (Transit Zoning Code Amendments) April 1, 2025 Page 17 Financial Information related to adoption of proposed TZC (SD-84) amendments The Planning Commission requested City staff to provide financial information specifically on the amendments' effects on City revenues that would result from the proposed ordinance. Staff from the City's Finance and Management Services Agency evaluated aggregate financial information using data sources for the City's tax base that include sales tax, property tax, businesses license tax, and utility users' tax within the TZC. Staff provided information as part of City staff's presentation during the scheduled March 6, 2025, meeting and emphasized that due to confidentiality requirements, revenue details provided are in general and aggregate form, preventing the disclosure of individual business revenue. Furthermore, evaluating the actual fiscal impact would be speculative and may vary significantly due to numerous unpredictable factors, including the fact the proposed ordinance does not propose the closure of any business; rendering business uses legal nonconforming does not preclude the establishment of a new, similar business in the same location that may result in no change to the City's revenues; fluctuations in economic conditions; and potential changes in business operations. These factors were presented to the Planning Commission, which took the information into account in making its recommendation to approve to the City Council. A description of the requested financial information is included in Exhibit 7 (March 6, 2025 Special Planning Commission Supplemental Staff Report and Exhibits), which is attached to this staff report. Legal Analysis The Commission requested that the City Attorney provide a briefing related to legal challenges to the proposed TZC amendments, specifically the creation of nonconforming status to business and structures, and the general argument of a "taking," as that term is used legally. The City Attorney's Office provided a confidential memorandum separately to the Planning Commission summarizing these legal questions. Due to the potential for litigation, the information contained in the memorandum is considered client privileged and confidential. Recommended Action Taken by the Planning Commission — March 6, 2025 At a special meeting on March 6, 2025, the Planning Commission voted 4:2:1, with Commissioners Benninger and Leo dissenting and Vice -Chair Ramos absent (due to advisement of a potential conflict of interest due to her residence being in close proximity to the project area), to recommend that the City Council approve the recommended actions. As part of its recommendation to approve, the Planning Commission included clarifying edits to the draft ZOA proposed by staff, which have been incorporated into the proposed text amendments.