City Council looks at potential zoning changes

By Mike Chaldu · Fri May 01 2026

Members discuss what will be allowable uses in multiple commercial areas in the city

ATASCADERO — The Atascadero City Council tackled more city General Plan issues during its Tuesday, April 28, meeting, more specifically, potential zoning changes put forth by staff in the city's commercial zoning districts.

City Councilmember Heather Newsom was absent for the meeting.

The only scheduled item of the meeting, Zoning Code Update – Commercial Zones and Uses, dealing with four zones: Commercial, Commercial Services, Commercial Innovation, and Industrial.

The new General Plan includes five commercial placetypes (land use districts) which would be implemented by multiple zoning districts. These include the following Placetypes: Mixed Use, Downtown Mixed Use, Commercial, Industrial and Innovation Flex. The March 10 and March 24, discussions with the City Council focused on the two Mixed Use placetypes. This discussion focuses on the remaining three commercial Placetypes, primarily focusing on what is allowed in each district and suggested refinements to the land use definitions. This discussion will also cover non-conforming land uses in the Downtown Commercial District, such as medical offices, ground floor residential uses, fuel stations, and storage uses.

The item was split into three parts, with Public Comment periods provided for each. Community Development Director Phil Dunsmore, Planning Manager Kelly Gleason, and, remotely, Genevieve Sharrow of the MIG consulting firm presented options for each part.

The first part of the item was determining nonconforming businesses in the Downtown Commercial area, which the city has been trying to promote as a "pedestrain-driven, with active ground-floor uses," area, according to Dunsmore.

"It's really about the restaurants, the entertainment, and having nightlife," he explained.

Dunsmore said staff was looking at a phase-out of professional offices, such as medical and dental practices, on the ground floors to enhance that vision of downtown, though he said those kinds of businesses would be welcome on upper floors in the area.

Dunsmore added that under current code a space left vacant for six months or more would revert to conforming, and council would have the option to reduce that "grace period" to as little as 60 days.

Mayor Pro Tem Mark Dariz objected to the 60-day limit, calling it "drastic," and wondering if it would leave the city open to litigation. City Attorney Dave Fleishman said any reduction to the six-month limit would welcome more court appeals. Mayor Charles Bourbeau wondered if a 10-year period for businesses to be conforming or move would be acceptable, and Fleishman said a precedent was sent and they could do that.

Eventually, council agreed to keep the nonconforming limit to six months, and made sure the code wasn't enforced in special circumstances, like remodeling, a passing down of a business to relatives, or death of an owner.

The second part of the items was a rundown of allowed uses of businesses in each commercial zone and whether it would need a Conditional Use Permit (CUP), which would be submitted to the city's Planning Commission, or an Administrative Use Permit (AUP), submitted to staff and easier to push through.

City Councilmember Susan Funk, in going over the list, felt that too many required the CUP, feeling that many of the businesses shouldn't have to go through the Planning Commission. She also questioned whether art studios should be classified under Commercial and Industrial. Staff and other councilmembers pointed out that many sculptors and artist who work with certain materials require the kinds of facilities usually found in Industrial zones.

That concept was confirmed during Public Comment by Lisa Renee Faulk, owner of Glasshead Studio in Atascadero.

"I had trouble finding a studio, because rent was high," she said. "I got pushed out to a light industrial and like it there because I don't have the 'looky-loos' coming in and can get stuff done."

The council left staff with a list of changes for the designation of business, which Dunsmore said would be revisited in June.

The final part of the item, had Sharrow explaining the concept of Commericial Innovation, which is intended to promote opportunities for startup businesses and head-of household jobs and provide spaces that can be adaptable to a variety of compatible uses as workforce trends evolve. This zoning district, located on two parts of El Camino Real, north of San Anselmo and Del Rio; and south of Morro Road to Santa Rosa, should attract concentrations of production, design, and maker-space businesses as well as uses that support those businesses and the people that work there.

Dunsmore said the suggestions on all of the zoning changes would be discussed at a Planning Commission workshop next month, followed by a Planning Commission hearing, and then two City Council hearings in June for adoption.

The City Council will next meet Tuesday, May 12, at 6 p.m.