CITY COUNCIL WORKSHOP SUPPLEMENTAL 3-17-26

8 of 12 Staff compiled data on downtown commercial vacancy rates in Pleasanton, Livermore, Danville and Walnut Creek. Pleasanton’s vacancy rate stands at 8.6%, compared to 10.0% in Walnut Creek, 4.7% in Danville, and 5.5% in Livermore. Vacancy rates currently exceed historic averages across all four downtowns, indicating a challenging market in the region as a whole; although Pleasanton’s rate (+2.51%) above its 10-year average is higher than both Danville and Livermore (+1.46% and +1.54%, respectively). The reasons for this difference are not clear but may include Pleasanton’s prevalence of older or historic buildings, which can be challenging to lease, as a proportion of the total inventory; smaller downtown size (creating less overall activity to support business); or other challenges. Regardless of the reasons, a focus on leasing and tenanting vacant downtown spaces is a priority. Staff continues to provide the opportunity for prospective tenants and building owners to meet with City staff, and to convene staff from Economic Development, Planning, Building and other Divisions to provide early input on proposals, advise on process, and identify potential project stumbling blocks. The Economic Development team’s 2026 work plan priorities include enhanced collaboration with PDA, downtown landlords and leasing agents to connect prospective tenants with vacant spaces and provide support through City planning and building processes. With the Economic Development Division now fully staffed, the City is increasing efforts to publicize and market these services and ensure Downtown is part of the City’s broader business attraction and retention efforts. 2. Downtown Specific Plan and Policy Updates Several ideas have come forward about potential revisions or updates to the Downtown Specific Plan (DSP) and other policy documents to encourage downtown investment. A particular concern has been raised that the DSP update in 2019 introduced overly restrictive standards for ground floor active uses, and that these standards should be relaxed. There has also been interest in creating a more conducive environment or streamlining/easing permitting requirements for businesses operating later at night, through a right-to-do business ordinance or amendment of the existing Hospitality Guidelines. A recent staff review of the City’s mixed-use development standards, which apply to properties downtown, has similarly noted that some of the DSP’s standards may be overly restrictive and/or discourage investment or redevelopment of sites. For example, DSP policies that require one-for- one replacement of commercial square footage may make some mixed-use development projects infeasible. Policies that discourage three-story buildings are likely to make most townhome development challenging to build, since constrained downtown sites and standard designs typically demand two stories of living space over parking. While it would require investment of resources to update the DSP, staff believes there may be merit in making some focused amendments to the Plan, to address the above areas, as well as to potentially re-look at / update the policies around redevelopment of the Civic Center to reflect more recent thinking about this site. Assuming focused amendments, with some limited consultant support around the California Environmental Quality Act (CEQA) and design standards, staff estimates a DSP update could be completed within 12 months, for approximately $150,000. Funding has not been identified for this project at this time.