Title
ZCA24-002; Consideration of a Resolution Recommending that the City Council Adopt an Ordinance Amending Various Sections of the San Leandro Zoning Code to Modify Regulations Pertaining to Tobacco Retailing and the Parking of Oversized Vehicles in Residential Zones.
Staffreport
SUMMARY AND RECOMMENDATION
On June 3, 2024, the City Council enacted a Zoning Moratorium to 1) prohibit the sale of tobacco-related products or electronic-cigarette-related products in new locations and 2) to prohibit the establishment of new Tobacconist/Cigarette stores (businesses devoted primarily to the sale of tobacco-related products or electronic-cigarette-related products). The original term of the Zoning Moratorium was for 45-days, but was later extended by the City Council to a two-year term, expiring on June 3, 2026. The purpose of the Zoning Moratorium was to pause the establishment of new tobacco retailers in the City while providing staff with time to prepare amendments to outdated zoning regulations that had been contributing to enforcement challenges.
Staff has prepared Zoning Code amendments (Attachment 1, Exhibit A) that would establish reasonable limitations on the sale of tobacco-related products, and facilitate effective enforcement. The proposed Zoning Code amendments would refine definitions, prohibit new tobacco retailing locations (except when accessory to specified uses and for Premium Cigar Retailers), establish physical limitations on the amount of tobacco retailing at an individual location, and expressly prohibit the establishment of new Drug Paraphernalia Stores (establishments where drug paraphernalia is displayed, grouped, advertised or promoted for sale).
Staff is also proposing a separate minor Zoning Code amendment pertaining to parking of oversized vehicles on private property in residential zones. This amendment simply relocates an existing provision in the Municipal Code to the Zoning Code to clarify its applicability to private property. These two topics have been combined into one proposed Zoning Code amendment package for efficiency.
Staff recommends that the Planning Commission adopt a resolution recommending that the City Council adopt an Ordinance amending the Zoning Code, as shown in Attachment 1, Exhibit A.
BACKGROUND AND ANALYSIS
Tobacco Retailing
The City’s Zoning Code currently defines a “Tobacconist/Cigarette store” as a “business devoted primarily to the sale of tobacco-related and e-cigarettes, and e-cigarette-related products, as defined by: (1) devoting 20% or more of total floor area or display area to; or (2) deriving 75% or more of gross sale receipts from, the sale or exchange of tobacco-related products.” Tobacconist/Cigarette stores are currently a conditionally permitted use in three zoning districts (CC, SA-1, SA-3). There are no zoning districts where a Tobacconist/Cigarette store is a principally permitted use. Additionally, the Zoning Code requires Tobacconist/Cigarette stores to be located at least 1,500 feet from certain sensitive uses like schools and parks, as well as other Tobacconist/Cigarette stores.
Under the City’s current Zoning Code, businesses may sell tobacco-related products within the City of San Leandro without being classified as a Tobacconist/Cigarette store so long as the percentage of the business dedicated to tobacco products is less than the thresholds referenced above. This is significant because it allows a business to be legally established without complying with the separation requirements or more stringent Conditional Use Permit review process applicable to Tobacconist/Cigarette stores. Some of these businesses are legitimate businesses, such as convenience stores or supermarkets. However, other businesses may initially abide by the limit on a maximum of 20-percent of the total floor area or display area for tobacco products, only to later easily, but illegally, expand the percentage of the business dedicated to tobacco products. This loophole enables the easy establishment of illegal smoke shops. As a result, the City has observed an increase in the appearance of smoke shops by retailers without first complying with the Zoning Code’s requirements for Tobacconist/Cigarette stores.
In 2024, the City received numerous complaints regarding new smoke shops and tobacco retailers throughout the city. Staff analyzed the various complaints and determined that that the uptick was due at least in part because of a loophole which allows businesses that do not reach permitting thresholds to sell tobacco-related products without having to comply with the City’s Zoning Code’s requirements.
On June 3, 2024, the City Council enacted a Zoning Moratorium to prohibit the sale of tobacco-related products or electronic-cigarette-related products in new locations (excepting premium cigar retailers and supermarkets greater than 20,000 square feet) and prohibit the establishment of new Tobacconist/Cigarette stores. On July 1, 2024, City Council extended that 45-day Zoning Moratorium to a full two years to allow staff the time to study the issue and prepare code amendments.
Staff has analyzed existing regulations and is proposing the following amendments to the Zoning Code to improve clarity, establish reasonable limitations on the sale of tobacco-related products, and facilitate effective enforcement:
• Prohibiting tobacco retailing, except:
o As accessory to the following uses:
§ Drugstore
§ Beer and Wine Store
§ Liquor Store
§ Supermarket (greater than 20,000 SF)
o Premium Cigar Retailers
• Establishing the following limits for tobacco retailing as an accessory use:
o No more than 10-percent of gross floor area may be utilized for the sale, marketing, display or storage of tobacco-related products and electronic-cigarette-related products.
o No more than 10 total linear feet of display area may be utilized for the sale, marketing, display or storage of tobacco-related products and electronic-cigarette-related products.
o No more than 25-percent of gross receipts may be derived from the sale of tobacco-related products and electronic-cigarette-related products.
o No display of merchandise or signs related to tobacco retailing may be viewable from the street.
• Premium Cigar Retailers would be a permitted use in the three zoning districts that Tobacconists/Cigarette stores are currently conditionally permitted (CC, SA-1, SA-3).
• The proposed amendments would define Drug Paraphernalia Stores in the Zoning Code and expressly prohibit them in order to make it as clear as possible to the public that they are not permitted.
Oversized Vehicle Parking
San Leandro Municipal Code Section 6-1-430 provides regulations for parking of oversized vehicles in the City. Staff is currently preparing an ordinance for the City Council’s consideration to amend and refine these regulations. As part of this effort, staff identified an existing provision (SLMC Section 6-1-430(d)(1)) that would be more appropriately relocated to the Zoning Code. The provision restricts parking of oversized vehicles in front yards and street side yards in residential zones when reasonable alternatives exist to park elsewhere on the property. The proposed amendment would relocate this provision to the Zoning Code where it would clarify that it applies to private property. The provision is currently ambiguous as to whether it applies to private or public property. The remainder of Municipal Code Section 6-1-430 relates only to parking on public streets, which contributes to the confusion.
GENERAL PLAN CONFORMANCE
The proposal is consistent with numerous policies and actions in the City’s General Plan, including:
• Policy LU-1.2: Code Enforcement. Maintain aggressive code enforcement and nuisance abatement programs to ensure that San Leandro’s neighborhoods remain attractive and free of public nuisances.
• Action LU-7.3.A: Zoning Review. Regularly review the Zoning Code to respond to real estate market and development trends, as well as changes in technology.
• Policy T-7.6: Safe Visibility. Maintain site design, engineering, and zoning standards which ensure that adequate visibility is maintained along streets and driveways.
ENVIRONMENTAL REVIEW
The proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a Project that has the potential for causing a significant effect on the environment under CEQA Guidelines Section 15061(b)(3). No further environmental review is necessary.
PUBLIC OUTREACH
A notice of public hearing was published for this project in the East Bay Times Daily Review newspaper and at City Hall. Additionally, interested parties and businesses that recently sold or currently sell tobacco products were sent written notices.
RECOMMENDATION
Staff recommends that the Planning Commission adopt Planning Commission Resolution 2025-XX recommending that the City Council approve the proposed amendments to the Zoning Code.
ATTACHMENTS
Attachment 1: Planning Commission Resolution 2025-XX
Exhibit A: Zoning Code Amendments (Clean Version)
Attachment 2: Zoning Code Amendments (Redline-Strikethrough Version)
PREPARED BY:
Cindy Lemaire, AICP, Senior Planner
Planning Division