The mixed-use overlay (MU-O) zone is intended to:

A. Establish a streamlined ministerial approval process, subject to the city’s objective design standards, for qualifying mixed-use projects.

B. Facilitate well-designed, new mixed-use development projects that combine residential and nonresidential uses (e.g., office, retail, business services, personal services, public spaces and uses, other community amenities, etc.) to promote housing for all economic segments of the community.

C. Create an integrated, walkable pedestrian environment that reduces dependence on the automobile for everyday needs, through a streetscape that is connected, safe, and engaging.

D. Provide a means of achieving the residential housing objectives of the housing element of the general plan by encouraging new multifamily residential development that includes affordable housing, housing persons with disabilities, housing for persons with developmental disabilities, and housing that supports aging in place. (Ord. 766 § 2 (Att. B), 2025)

A. The mixed-use overlay zone applies to Site 1 in Malaga Cove (APNs: 7539-016-018 and 7539-016-019) and Site 2 in Lunada Bay (APN: 7542-015-025) as shown on Figure III-1 of the 2021 – 2029 Housing Element.

B. If there is any conflict between the objective standards in this MU-O and the commercial (C) base zone, the standards of this MU-O govern. (Ord. 766 § 2 (Att. B), 2025)

A. “Qualifying affordable housing projects” means a project where twenty percent of the total dwelling units are reserved for lower-income persons for the area median family income as defined according to HCD Income Guidelines, updated annually.

B. “Live-work unit” means units that are designed to accommodate both living quarters and professional workspaces within the same footprint. A live-work unit is a hybrid space combining elements of residential living with commercial or office space.

C. “Ministerial” means an act or duty that is prescribed by law and performed without personal judgment or discretion. It can also refer to a governmental decision that involves no personal judgment by a public official. No public notice or public hearing is required for a ministerial action. By definition, ministerial actions are exempt from California Environmental Quality Act (CEQA) review.

D. “Mixed-use project” means a development that combines multiple uses into a single building or site, such as residential with commercial, retail, or office space. Live-work units are themselves mixed-use. Uses can be combined vertically within a structure or horizontally within a structure or site. Mixed-use projects can be new construction, or they can involve reuse and adaptation of existing buildings.

E. “Objective design standards” means development standards that involve no personal or subjective judgment by a public official and that are uniformly verifiable by reference to an external and uniform benchmark or criterion that is available and knowable by both the development applicant and public official at the time of submittal. (Ord. 766 § 2 (Att. B), 2025)

A. Residential Density.

1. The mixed-use overlay zone is intended for a range of multifamily, multi-level structures with a density range of twenty-five to thirty dwelling units per gross acre.

2. Single-family detached dwellings are not allowed.

3. Twenty-five dwelling units per acre is the minimum density and is intended to encourage flexibility in dwelling unit densities and types of structures providing a diversity of dwelling unit types and efficiencies associated with mixed-use development.

4. The allowed number of units on a site are calculated by multiplying the total site area by the maximum units allowed per gross acre and rounding up to the nearest whole number.

B. Density Bonus. Densities may be increased for affordable projects in accordance with Chapter 18.68 PVEMC, Density Bonuses, and the state Density Bonus Law. (Ord. 766 § 2 (Att. B), 2025)

A. The provisions of this chapter apply to all properties designated with the mixed-use overlay (MU-O) zone. If there is any conflict between the terms of this chapter and those of the underlying base zone for a project that is developed under the MU-O, provisions of this chapter govern.

B. Regulations, development standards, and requirements in the underlying base zones continue to apply to those projects that were developed under the base-zone standards.

C. For those properties with legal nonconforming uses (i.e., that do not comply with the provisions of the base zone or the provisions of this chapter), the regulations, development standards, and requirements in Chapter 17.16 PVEMC, Nonconformity, apply.

D. New nonresidential projects may be developed in compliance with the existing underlying base zone; provided, that all standards and requirements of the underlying base zone are met. (Ord. 766 § 2 (Att. B), 2025)

A. The following uses are permitted in the mixed-use overlay zone:

1. Primary uses that are permitted by right in the underlying zone that meet the objective development standards of the underlying zone and MU-O zone.

a. Examples of permitted primary uses include, but not limited to: general retail stores, shops, barber shops, beauty salons, financial institutions, medical, dental, and optometry offices, professional offices, law offices, and emergency shelters subject to the standards provided in PVEMC 18.72.010.

b. Uses that are only conditionally permitted or expressly prohibited in or that are omitted from the underlying base zone are prohibited in the MU-O zone, except as set forth below.

2. Any of the following:

a. Art galleries and studios, including but not limited to: photography; fine art; fiber art; printing, lithography, and calligraphy; dance, martial arts and music;

b. Bakeries;

c. Childcare facilities;

d. Home occupations;

e. Nonresidential uses conditionally permitted in the applicable underlying commercial zone that meet the development standards in the underlying zone and for which an applicant has received a conditional use permit;

f. Multifamily residential housing or live-work units as part of a mixed-use project;

g. Accessory uses that are allowed in the R-M and C zones;

h. Purely residential projects (without a nonresidential component) are permitted subject the city’s objective design standards.

B. The following uses are expressly prohibited in the mixed-use overlay zone:

1. Single-family detached dwelling units.

2. Industrial and manufacturing uses requiring processing or assembly of components or goods;

3. Video and amusement arcades;

4. Drive-through restaurants;

5. Gasoline service station and mini-markets;

6. Auto body repair shops;

7. Bowling alleys;

8. Mortuaries;

9. Cemeteries;

10. Cannabis delivery, as that term is defined in Chapter 18.73 PVEMC. This section does not apply to the delivery of medical marijuana or medical marijuana products to qualified patients;

11. Commercial cannabis activities, as that term is defined in Chapter 18.73 PVEMC;

12. Cultivation of cannabis or medical marijuana, as those terms are defined in Chapter 18.73 PVEMC and subject to the conditions in PVEMC 18.73.070;

13. Massage parlors; provided, however, that an establishment at which massage services are provided by a physical therapist or chiropractor licensed by the state of California or by massage technicians, each of which are licensed by the State Massage Therapy Organization, as that term is defined in California Government Code Section 4600(e), is not deemed a massage parlor;

14. Commercial car washes;

15. Truck terminals;

16. Dry cleaning facilities with a dry cleaning plant on the premises;

17. Salvage and recycling facilities;

18. Sale of electronic cigarettes, vaporizers, pods, and liquids used to inhale any substance;

19. Entertainment uses including, but not limited to, cabarets, nightclubs, and adult businesses; and

20. Any other use that is not expressly permitted under subsection A of this section. (Ord. 766 § 2 (Att. B), 2025)

A. An MU-O project is eligible for the following incentives if it has at least two-thirds of its floor area devoted to residential and at least twenty percent of the units are restricted to be affordable to lower-income households.

1. Ministerial review – No discretionary review is required for qualifying affordable MU-O projects.

2. Deferred impact fees – A qualifying MU-O project is eligible for one of the following impact-fee deferrals, at the election of the applicant (which election must be made as part of the project application). Deferral options include:

a. Payment of impact fees before issuance of a certificate of occupancy.

b. Payment of impact fees within twelve months after the certificate of occupancy of the first unit.

3. Expedited plan reviews – Plans for qualifying affordable projects will have a one-day reduction in review time: The city will complete its initial review in nine business days (instead of ten), and it will complete subsequent reviews in four business days (instead of five).

B. MU-O projects may qualify for density-bonus benefits under state law. (Ord. 766 § 2 (Att. B), 2025)

A. New mixed-use projects in the MU-O zone must comply with the city’s objective design standards.

B. If there is a conflict between the city’s objective design standards and the standards in this chapter, the standards in this chapter apply.

C. The following standards apply to the MU-O zone:

1. Unit Sizes. The minimum unit sizes are:

a. Six hundred square feet for a studio or one-bedroom unit;

b. Seven hundred fifty square feet for a two-bedroom unit; and

c. One thousand square feet for a unit with three or more bedrooms.

2. Setbacks.

a. Generally.

(1) Minimum setbacks for mixed-use buildings: ten feet.

(2) Maximum setback: up to twenty feet if the setback area beyond ten feet is used exclusively for pedestrian access and pedestrian amenities; the extra setback area may not be used for parking and any other use of motorized vehicles.

b. Residential Multifamily Setbacks.

(1) Front yard: ten feet;

(2) Side yard: five feet;

(3) Rear yard: ten feet.

3. Building Height and Stories.

a. Maximum building height: thirty-five feet. Building height is measured as set forth in PVEMC 17.08.040.

b. Maximum number of stories: three.

4. Floor Area Ratios. The maximum floor area ratio is 1.5. Floor area ratio is calculated by dividing the total gross floor area of a building by the total area of the lot.

5. Minimum lot area per primary dwelling unit: one thousand seven hundred forty-two square feet.

6. Maximum Lot Coverage. No more than seventy percent of the total lot may be covered with a structure paving, or any other permeable surface.

7. Minimum lot width: sixty feet.

8. Landscaping and Open Space Standards. Landscaping and open space must be developed in accordance with the city’s objective design standards.

9. Off-Street Parking for Residential Portion of Mixed-Use Projects.

a. Unless state law requires fewer spaces, each MU-O project must include at least:

(1) One space for a studio;

(2) One and one-half spaces for a one bedroom;

(3) Two spaces for a two bedroom; and

(4) Two and one-half spaces for a three bedroom.

b. Required parking spaces may only be utilized for the parking of motor vehicles belonging to the occupants of and visitors to the building.

c. No required parking space may be utilized for the purpose of storing commercial vehicles, recreational vehicles, boats, equipment, materials, or anything not specifically permitted in the MU-O zone.

d. The number of required spaces is rounded up to the nearest whole number on a project-wide basis.

e. Parking spaces for the residential component of a mixed-use project must be assigned to specific residential units and must not be made available for use by patrons of a nonresidential use.

f. Utilities, Building Equipment and Trash Enclosures. Utilities, building equipment, and trash enclosures must be developed in accordance with the city’s objective design standards.

g. Loading and Unloading Activities. Mixed-use projects must indicate the times when loading and unloading of goods may occur on the street. No loading or unloading may occur after ten p.m. or before seven a.m. on any day of the week.

h. Nuisance Mitigation. The location and design of recycling and refuse storage facilities must be in accordance with the city’s objective design standards. (Ord. 766 § 2 (Att. B), 2025)

A. The mixed-use overlay zone regulations allow the conversion of existing commercial buildings, even if they are legal nonconforming, to mixed use.

B. Applicants for a conversion project may request relief from the following standards, based on discretionary review and approval under Chapters 17.16 and 18.36 PVEMC, if it is not physically feasible to comply with these standards:

1. Parking requirements;

2. Loading facilities;

3. Outdoor living space;

4. Commercial-residential transitional setbacks, if such buildings have legal nonconforming setbacks;

5. Height limits, if such buildings have legal nonconforming heights. (Ord. 766 § 2 (Att. B), 2025)

Prior to the issuance of a sign permit or issuance of a certificate of occupancy for a mixed-use project, a master sign program for the nonresidential uses must be submitted for review and approval in accordance with PVEMC 18.12.050. (Ord. 766 § 2 (Att. B), 2025)

A. Qualifying affordable projects that comply with the requirements of this chapter are permitted by right. Compliance with the requirements of this chapter does not, however, waive any additional requirements for compliance with the city’s municipal code. For example, if an applicant requires approval of a lot line adjustment, merger of parcels, or subdivision in conjunction with approval of an application pursuant to this chapter, a separate application must be made for the other approval(s) in accordance with this code.

B. Approving Body. The community development director the director’s designee administratively approves or denies an application for a project under the MU-O zone.

C. Notice of Decision. Within ten days, a notice of decision must be mailed to both the applicant and the applicant’s representative and to any person who has made a written request for a copy of the decision. The decision of the community development director is final and conclusive.

D. Expiration of Administrative Approval. Construction must start within one year of the date of the approval by the community development director or the approval becomes null and void. (Ord. 766 § 2 (Att. B), 2025)

A. Affordable housing units developed under this chapter must remain available to persons and families of very low and low income, at an affordable housing cost or affordable rental cost, at those income and affordability levels as defined in this code, for fifty-five years.

B. The required period of affordability runs concurrently with any period of affordability required by any other agency; provided, however, that the affordability period is fifty-five years or longer.

C. The project developer and property owner must enter into an appropriate agreement with the city to ensure that affordability is maintained for the required period. The regulatory agreement and affordability covenant must be approved by the city attorney. (Ord. 766 § 2 (Att. B), 2025)

A. Before submitting an application for a housing development within the MU-O zone, the applicant or prospective developer has the option to request an informal pre-submittal consultation with the community development department and other city staff as appropriate to obtain information and guidance before incurring substantial expense in the preparation of plans, surveys and other data.

B. An informal pre-submittal application under this section requires a deposit and reimbursement agreement to pay for the city’s actual expenses, including staff time and overhead.

C. A pre-submittal consultation is not required, but it is strongly encouraged. No information shared for a pre-submittal consultation triggers any deadline under the Permit Streamlining Act or any other law. (Ord. 766 § 2 (Att. B), 2025)