DATE: January 27, 2026
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT
Title
Business-Friendly Hayward Project Update: Review of Draft Municipal Code and Zoning Maps Revisions Related to the Business-Friendly Hayward Project
End
RECOMMENDATION
Recommendation
That the City Council provides feedback on the draft Municipal Code and Zoning Map revisions related to the Business-Friendly Hayward project.
End
SUMMARY
The Business-Friendly Hayward Project aims to accomplish a series of Strategic Roadmap projects and Downtown Specific Plan implementation programs by focusing on the following objectives:
• Streamline entitlement and permitting processes for desirable businesses across the City’s commercial and mixed-use zoning districts.
• Activate vacant and underutilized properties and storefronts Downtown.
To date, City staff have reviewed best practices from nearby jurisdictions, analyzed Hayward’s existing codes and practices related to commercial and mixed-use districts, conducted an analysis of commercial businesses in the Downtown area, and facilitated a series of public outreach efforts aimed at getting feedback from businesses, the public, and other community stakeholders.
Based on these efforts and feedback received from the Planning Commission and Council, revisions to the Municipal Code and Zoning Map have been drafted for the Council’s feedback. These include a new organization and simplification of the Commercial Districts section of the Zoning Ordinance; relaxed permitting requirements for popular business types; strategic new land use controls; new simple permit types to better support emerging businesses and activation of our commercial areas; and rezonings to simplify the Zoning Map.
At this work session, staff is requesting feedback from the Council on the following:
• Are the draft Municipal Code revisions, new permit types, and proposed rezonings appropriate for Hayward?
• Are the Downtown and Mission Boulevard Corridor the suitable areas to pilot Accessory Commercial Units (ACUs) in Hayward and does the Council support the list of proposed uses allowed (barber/beauty shop, nail salon, pet grooming, fitness studio, retail, take-out coffee shop, neighborhood-serving grocery shop)?
• Does the Council support the types of entertainment uses listed in the Limited Entertainment Permit program, which includes live band/musicians, open mic, and karaoke? Are there other entertainment activities the Council believes should be allowed via this streamlined process?
• Is the Council supportive of adding “event space” into our definition of cultural facility/community center, thus allowing event spaces in more zoning districts through a simpler process, including Downtown, as long as events end by 11:00 p.m.?
ATTACHMENTS
Attachment I Staff Report
Attachment II Section 10-1.800, Commercial Districts - Clean
Attachment III Section 10-1.800, Commercial Districts - Redline Revisions
Attachment IV Section 10-24.2.3.010, Mission Boulevard Use Table - Redline Revisions
Attachment V Section 10-28.2.3.010, Downtown Development Code - Redline Revisions
Attachment VI Section 10-1.1603, Industrial Districts Use Table - Redline Revisions
Attachment VII Section 10-1.2735(a), Accessory Commercial Units - New Code Section
Attachment VIII Section 10-1.2735(f), Limited Entertainment Permit - New Code Section
Attachment IX Section 10-1.2700, General Regulations - Redline Revisions
Attachment X Section 10-1.3500, Definitions - Redline Revisions
Attachment XI Maps of Properties Proposed to be Rezoned