On the Heels of Multiple Planning Commission Study Sessions, City Council Will Dictate the Road Ahead for Loosening the Rules on Land Use
Dating back to 2023-24, the Mill Valley Planning Commission, City Councilmembers and staff have have taken some critically important steps on managing land use in town, specifically across the four commercial zone districts within city limits: Downtown Commercial (C-D); Neighborhood 40 Commercial (C-N); General Commercial (C-G); and Limited Commercial (C-L). In more recent months, Planning Commissioners Ernest Cirangle, Jon Yolles, Eric Macris, Christine Gasparac and Kevin Skiles have focused on the City’s zoning code, which includes land use and development standards for these zone districts, referred to as the “commercial regulations” or “commercial code.”
The commission, led by the Planning Commissioners, Planning Director Patrick Kelly and Senior Planner Daisy Allen, gathered in 2025, and again latter part of 2025, with a number of developers and commercial brokers, and generated a lively discussion about how city officials could broaden the possibilities of how to move forward. At a basic level, the primary goal was to review the proposed ordinance amending commercial regulations in the Zoning Code 20. Staff conducted a hearing, found the proposed ordinance was exempt from the CEQA Quality Act, and determined the Ordinance will not have a significant effect on the environment; find the proposed ordinance is consistent with the Mill Valley General Plan, including but not limited to Goals and Policies under the Land Use and Community Vitality elements, by supporting economic vitality while maintaining and enhancing the unique character of the City’s commercial areas and downtown core. They also backed adopting a proposed ordinance amending Title 20 of the MVMC to establish updated commercial regulations.
Mill Valley’s existing commercial regulations have not been comprehensively updated in several decades and have at times been a roadblock for new businesses to open and operate in Mill Valley, hindering economic development.
For instance, under the current commercial code most new businesses require a conditional use permit (CUP) to operate, regardless of business type or zone district. A CUP costs approximately $8,000 and involves review by the Planning Commission at a public hearing. Also, the existing code can be difficult for readers to navigate and understand and does not reflect modern business types. There is an opportunity to amend the code to better reflect current City priorities and create a more welcoming environment for new businesses in Mill Valley. Recognizing the need to modernize the commercial code, the City Council established an update to the commercial code and use permit process as a priority in the 2025 Work Plan. Staff identified problem areas in the code, conducted research on best practices at other jurisdictions, and then developed a recommended draft commercial code update.
On October 28, 2025, a “Twosies” meeting, a joint meeting between two City Councilmembers (Mayor Burke and Councilmember Carmel) and two Planning Commissioners (Chair Ernest Cirangle and Commissioner Jon Yolles) was held to discuss the draft commercial code update. On November 17, 2025 the City Council held a meeting to consider the Planning Commission and “Twosies” meeting recommendations, received public input and provided feedback.
- After discussion, the commissioners backed support for different levels of review for the same uses in different zone districts, including support for requiring a CUP when a large tenant space is divided into two or more smaller stores.
- Support for requiring a CUP when two or more smaller tenants are consolidated into one larger tenant space in the C-D district.
- Support for removing the universal CUP threshold of 1,500 square feet and instead adding larger size thresholds in certain zone districts for certain use types.
- The Commission made specific suggestions for size thresholds in the C-D and C-G districts. The Council agreed with the Commission’s suggestions with a few changes.
- The Council felt that wholesale stores were not appropriate in the C-D district. Also, for restaurants/cafes/specialty food establishments, personal and business services, retail stores, and museums/art galleries in the C-D district, the Council felt that the permit required should be an AUP rather than a CUP for businesses 3,000-5,000 square feet, to 149 allow for a more streamlined use permit process for small businesses.
The Council also recommended a change to the draft code related to restaurants/cafes/specialty food establishments adjacent to residential zoning. The draft required a conditional use permit for food establishments adjacent to residential zoning, regardless of square footage, which contradicted the idea of relaxing use permit requirements for small businesses. The Council felt that the codified good neighbor policies (see section 20.40.040) would set appropriate standards for food establishments to operate respectfully adjacent to residential neighborhoods.
There was support for removing the use permit requirement for ground floor offices in the C-G and 160 C-N districts, and mixed feedback about relaxing the use permit requirement for ground floor offices in the C-D district. The Commission felt that given the decrease in demand for brick-and-mortar retail, allowing ground floor office use by right in C-G and C-N would help to avoid vacancies. The Commission felt that an AUP for ground floor offices would be appropriate in the C166 D district. The Council was concerned about the potential erosion of commercial inventory for retail use, and instead suggested a CUP in the C-D district, with perhaps small offices under 1,500 square feet (or some other size threshold) allowed by right or with an AUP.
In prior hearings, food and beverage service remained focused on the possibility of Food Trucks. The updated code provides specific regulations that would apply to all food and beverage service businesses, even those without a use permit. These regulations codify the “good neighbor policy” that is often required as a CUP condition of approval for restaurants. By codifying these regulations, the intention is to reduce the need for CUPs and also provide clear guidance to businesses and staff. Evidence of violation of any of these regulations would be subject to code enforcement. The Planning Commission and City Council were both supportive of these regulations as drafted. 20.40.041 Specific regulations – Food trucks on private property. In the current code food trucks are not mentioned, but staff precedent has been to require a CUP to locate a food truck on private property (food trucks on public property are subject to state regulations). The updated code provides specific regulations for food trucks on private property.
City Staff recommended 5,000 square-foot threshold for larger spaces like the former Rite Aid space, but not setting it too high. The Planning Commission felt that the size threshold should be 3,000 in downtown downtown commercial districts.
Mill Valley Chamber: “There remains interest in and discussion of food trucks, though none more than Zorba’s at Goodman’s. Mill Valley currently has two very large, very empty historic restaurants, and maybe there is a business that might be interested in giving a food truck a shot and potentially eyeing it for a future brick & mortar business. Maybe that’s backwards thinking…but we should be thoughtful and not restrictive and keep our options open.”