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ZOA No. 2024-02 & AA No. 2024-03 (Transit Zoning Code Amendments Supplemental <br />Staff Report to February 24, 2025 Planning Commission Staff Report) <br />March 6, 2025 <br />Page 3 <br />3 <br />3 <br />6 <br />7 <br />Financial Information related to adoption of proposed TZC amendments <br />The Planning Commission requested City staff to provide financial information specifically <br />on the amendments’ effects on City revenues that would result from the proposed <br />ordinance. Staff from the City’s Finance and Management Services Agency evaluated <br />aggregate financial information using data sources for the City’s tax base that include <br />sales tax, property tax, businesses license tax, and utility users’ tax within the TZC. This <br />information will be provided as part of City staff’s presentation during the scheduled <br />meeting. Lastly, due to confidentiality requirements, revenue details provided are in <br />general and aggregate form, preventing the disclosure of individual business revenue. <br />The fiscal information is intended for general informational purposes only. The actual <br />fiscal impact cannot be determined and may vary significantly due to numerous <br />unpredictable factors, including the fact the proposed ordinance does not propose the <br />closure of any business; rendering businesses uses legal nonconforming does not <br />preclude the establishment of a new, similar business in the same location that may result <br />in no change to the City’s revenues; fluctuations in economic conditions; and potential <br />changes in business operations. <br />Legal Analysis <br />The Commission requested that the City Attorney provide a briefing related to legal <br />challenges to the proposed TZC amendments, specifically the creation of nonconforming <br />status to business and structures, and the general argument of a “taking,” as that term is <br />used legally. The City Attorney’s Office has provided a confidential memorandum <br />separately to the Planning Commission summarizing these legal questions. Due to the <br />potential for litigation, the information contained in the memorandum is considered client <br />privileged and confidential. <br />ENVIRONMENTAL IMPACT <br />The California Environmental Quality Act (CEQA) requires public agencies and local <br />governments to measure the environmental impacts of development projects or other <br />major land use decisions, and to limit or avoid those impacts if possible. CEQA Guidelines <br />Section 15164 states the following with respect to an Addendum to an EIR: <br />a) The lead agency or responsible agency shall prepare an addendum to a previously <br />certified EIR if some changes or additions are necessary but none of the conditions <br />described in Section 15162 calling for preparation of a subsequent EIR have occurred. <br />b) An addendum to an adopted negative declaration may be prepared if only minor <br />technical changes or additions are necessary or none of the conditions described in <br />Section 15162 calling for the preparation of a subsequent EIR or negative declaration <br />have occurred. <br />c) An addendum need not be circulated for public review but can be included in or <br />attached to the final EIR or adopted negative declaration.  <br />Planning Commission 1 – 3 3/6/2025 <br />