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Item No. 1. 
MEETING DATE: 06/15/2026
 
TO: HONORABLE MAYOR AND COUNCILMEMBERS
 
FROM: JIM SADRO, CITY MANAGER
By:  Sonya Lui, Planning Manager
 
SUBJECT:
DULY NOTICED PUBLIC HEARING TO RECOMMEND THAT THE CITY COUNCIL CONDUCT THE FIRST READING OF AN ORDINANCE APPROVING ZONE CHANGE 26-0002 (ZC 26-0002) TO AMEND VARIOUS SECTIONS OF TITLE 18 (ZONING) IN ORDER TO IMPLEMENT MINOR CONDITIONAL USE PERMIT REGULATIONS, IMPROVE INTERNAL CONSISTENCY WITHIN TITLE 18 (ZONING) AND CLARIFY/CONSOLIDATE USE REQUIREMENTS

RECOMMENDATION:


That the City Council INTRODUCE FOR FIRST READING ORDINANCE NO. CC 2026- ___ ENTITLED: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LA HABRA, CALIFORNIA, APPROVING ZONE CHANGE 26-0002 (ZC26-0002) TO AMEND SECTIONS 18.04.030 (TERMS DEFINED), 18.06.040 (LAND USES), 18.12.140 (OUTDOOR SEATING AREA), 18.12.170 (SMOKING LOUNGES), 18.14.060 (NUMBER OF SPACES REQUIRED), 18.23.030 (SIGN MATRIX), 18.44.020 (USES), AND 18.62.020 (DEFINITIONS), AND ADD SECTION 18.12.190 (REMEDIATION SYSTEMS) TO TITLE 18 (ZONING) OF THE LA HABRA MUNICIPAL CODE IN ORDER TO ENABLE THE CITY TO IMPLEMENT MINOR CONDITIONAL USE PERMIT REGULATIONS, IMPROVE INTERNAL CONSISTENCY WITHIN TITLE 18 (ZONING), AND MODIFY VARIOUS REGULATIONS BY CLARIFYING AND CONSOLIDATING USE REQUIREMENTS AND MAKING  A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO SECTIONS 15378(b)(5) AND 15061(b)(3) OF THE CEQA GUIDELINES.

DISCUSSION:

On June 17, 2024, the City Council directed staff to initiate amendments to the La Habra Municipal Code (LHMC) related to Conditional Use Permits (CUPs) for non-residential uses in the City’s commercial and industrial zones, including the creation of a new category of CUP called a Minor Conditional Use Permit (MCUP). On June 16, 2025, the City Council adopted Ordinance No. CC 2025-03 to establish procedures for MCUPs.

Staff has prepared the proposed ordinance (Attachment 1) to amend the LHMC to implement the MCUP regulations, improve internal consistency within Title 18 (Zoning Code), and clarify and consolidate use requirements. The Planning Commission reviewed the draft ordinance on May 11, 2026, and adopted the attached resolution, recommending City Council approval, with one recommended modification. The Planning Commission's proposed modification is related to the permitting of "commercial recreation, fitness, and instruction" uses, which, as defined in the draft ordinance, is a use that provides recreation, fitness, amusement, enrichment, or instructional activities for participants, including, but not limited to, instruction, practice, training, classes, structured programs, equipment, or open play. As defined in the draft ordinance, "commercial recreation, fitness, and instruction” includes, but is not limited to, batting cages, bowling alleys, tennis and pickleball courts, pool halls and billiard halls, fitness studios, dance studios, martial arts studios, gymnastics facilities, vocal or music instruction studios, indoor golf simulators, children’s play or bounce facilities, parent-and-child enrichment programs, and similar indoor recreational or instructional uses. The proposed ordinance also provides definitions for small commercial recreation, fitness and instruction uses, large commercial recreation, fitness and instruction uses, and outdoor commercial recreation, fitness and instruction uses.

The proposed ordinance would allow smaller (less than 3,000 square feet), indoor, commercial recreation, fitness and instruction uses, subject to the approval of a MCUP. The Planning Commission's recommendation to the City Council is that this type of use should continue to be subject to the approval of a regular CUP, regardless of the size or location indoors or outdoors. The Planning Commission's resolution (Attachment 2) contains the proposed ordinance, with the modification recommended by the Planning Commission. Attachment 3 provides a red-line comparison between the proposed ordinance's requirements and the Planning Commission's recommendation for conditionally permitting commercial recreation, fitness and instruction uses. The Planning Commission staff report and minutes are provided as Attachments 4 and 5. In addition, the staff reports to the City Council from June 17, 2024, and June 2, 2025 are provided as Attachments 2 and 3 to the Planning Commission staff report. 

ANALYSIS:

As noted above, the proposed ordinance clarifies and consolidates use requirements and improves the internal consistency within the Zoning Code. A detailed description of these changes is provided in the Planning Commission staff report. The most significant change provided by the proposed ordinance is the reduction in permitting requirements for a number of uses, by either allowing certain uses that previously required a CUP to be permitted by right or to be subject to a MCUP.

The following table identifies the difference between these two types of CUP's and permitting processes:

TABLE 1
Requirement Permitted by Right MCUP CUP
Fee Not Applicable $412 $7,203
Approval Authority Staff will confirm use is permitted prior to issuance of a Business License and/or approval of building permits. Community and Economic Development Director ("Director") unless:

1) The Director receives objections to a MCUP application which cannot be resolved by the Director, in which case the MCUP would be referred to the Planning Commission, and the application would be considered one for a CUP and the proceedings by the Planning Commission would be held in the same manner required for a CUP; or,

2) The MCUP application is made in conjunction with, and as a part of, a project that requires Planning Commission action, in which case the application would be made to the Planning Commission. In such instances, the proceedings by the Planning Commission would be held in the manner required for a CUP.		 Planning Commission
Notice Not Applicable Prior to the Director making a decision, a notice of the request will be sent to owners of all properties adjacent to and directly across the street from the exterior boundaries of the property involved, providing at least 10 working days for objections or comments to be submitted to the Director. A notice of the public hearing is sent to the applicant and each property owner within three hundred feet of the exterior boundaries of the property involved and published in the newspaper.
Public Hearing Not Applicable No public hearing, unless a request is referred to the Planning Commission. A public hearing is required
Appeal Review Authority Not Applicable Planning Commission. The Planning Commission's decision may then be appealed to the City Council. City Council

Uses that are currently subject to a CUP and are proposed to be permitted by right in most non-residential zones include:
  • Restaurants (without alcohol, entertainment or drive-throughs)
  • Tutoring (no more than 10 students)
  • Administrative, professional, and medical offices
  • Financial institutions
The following uses that are currently subject to a CUP and are proposed to be subject to the approval of an MCUP in most non-residential zones include:
  • Commercial recreation, fitness, and instruction
  • Art galleries
  • Day care centers
  • Restaurants, with on-sale beer and wine
  • Restaurants, with indoor entertainment
  • Animal care and services facilities
The proposed ordinance addresses the permitting requirements for uses, but would not change the City's ability to influence the design of a given project. Any new development, major remodeling or structural rehabilitation of more than twenty-five (25%) percent of the building area, and additions that result in additional floor area, would still be subject to Design Review or a Planned Unit Development Permit and a Precise Plan. In addition, if a property or specific use is not complying with LHMC requirements, and/or creates a public nuisance, these issues can continue to be addressed through Code Enforcement action.
 

PLANNING COMMISSION ACTION:

On May 11, 2026, the Planning Commission voted 3-1 (Commissioner Manley voted no and Vice Chair Cardenas was absent) to recommend City Council approval of the draft ordinance with a Planning Commission recommendation that all commercial recreation, fitness and instruction uses be subject to a CUP, as currently required. Should the Council want to follow the Planning Commission's recommendation (as amended), a revised land use matrix which reflects that all commercial recreation, fitness and instruction uses to be subject to a CUP has been included as Attachment 3. The Council may accept or reject the proposed redlines in Attachment 3 as part of the motion to introduce the proposed ordinance for first reading.    
 
The Commission also discussed staff’s recommendations for the permitting of restaurants. Currently, the Zoning Code requires a CUP for all restaurants. Pursuant to the draft ordinance, CUPs would continue to be required for restaurants with drive-throughs, serving distilled spirits and/or with outdoor entertainment. However, in order to further accommodate other types of restaurants, only an MCUP would be required for restaurants serving beer and wine and/or with indoor entertainment in the City’s commercial and mixed-use zones; and, all other restaurants would be permitted by right. Chair Ramsland and Commissioner Mahecha were in favor of permitting restaurants with alcohol sales by right; Commissioner Manley was in favor of continuing to require a CUP for all restaurants. The Commission’s recommendation to Council did not include any changes to the draft ordinance related to the permitting of restaurants.

FISCAL IMPACT/SOURCE:

Costs associated with City-initiated amendments to the LHMC are included as part of the Community and Economic Development Department's annual budget.

The uses that are proposed to no longer require a CUP would result in a reduction in CUP fee revenues to the General Fund; however, this will also likely result in less staff time and cost necessary to confirm uses permitted by right or process an MCUP compared to a CUP.

GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:

The proposed amendments support continued implementation of the General Plan by updating and clarifying zoning regulations for non-residential uses, improving the functionality of the Zoning Code, and reducing unnecessary barriers to appropriate business activity while retaining discretionary review for higher-impact uses.

The proposed amendments also support the following City Council Goals and Objectives:

Goal 5 – Development Activity and Business Assistance:
  • Objective B: Monitor commercial property listings that have sales tax generating potential for potential acquisition and/or marketing to attract/retain businesses, and work with property owners and the brokerage community to develop land to its highest and best use.
The proposed amendments update land use classifications and permit requirements to better accommodate modern business types and more flexible reuse of commercial and industrial properties.
  • Objective D: Continue to improve the City’s business retention and expansion program.
The proposed amendments reduce unnecessary permit burdens for certain lower-impact uses, clarify zoning requirements, and create a more predictable entitlement structure for existing and prospective businesses.
  • Objective E: Continue to evaluate and improve the City’s development review process and continue to foster a “business friendly” environment within all City departments.
The proposed amendments will make the development review process more efficient, transparent, and easier to administer.
  • Objective J: Review the Zoning Code on an on-going basis and process amendments that ensure compliance with recent State legislation, streamline project processing, remove unnecessary regulations, and/or make the Zoning Code easier to implement. 
The proposed amendments will implement the City’s MCUP procedures, refine the Land Use Matrix, update definitions, and improve internal consistency within the Zoning Code

Attachments