Downtown Petaluma’s Housing and Economic Opportunity Overlay

Have you heard about the big changes coming to Downtown Petaluma? There’s a new zoning overlay in place, and it has sparked a lot of debate—so let’s talk about it.

The Petaluma City Council recently approved something called the Downtown Housing & Economic Opportunity Overlay. It's focused on a small two-block stretch of Petaluma Boulevard South, and the goal is to revitalize parts of our downtown that have sat vacant or underused for years.

Think sites like the old Bank of the West building, the former Walnut Park Grill, and the property at Fourth & C. These are places that could be transformed into housing, businesses, or mixed-use spaces that bring more life to the downtown corridor.

The overlay allows projects to build a little taller or more densely—but only if they offer something back to the community. That could mean public plazas, parks, or preserving historic elements that define Petaluma's character. Every project has to complete a historic resource evaluation, and developers are required to add pedestrian-friendly upgrades—like wider sidewalks, more trees, and streetscape improvements.

The goal is to encourage thoughtful development that fits with downtown’s character while addressing modern needs like housing, walkability, and sustainability.

Supporters say this is a smart way to breathe new life into downtown. More housing near transit, more foot traffic for local shops and restaurants, and development that supports climate goals by encouraging walkable neighborhoods.

But not everyone is on board. Some residents are worried about the scale of new buildings, even with design standards in place. There’s concern that increased density could alter the look and feel of historic downtown, and that too much change could undermine the charm that makes Petaluma special.

Currently, a signature-gathering effort is underway for a referendum that could repeal the overlay. It's become more than just a zoning change—it’s sparked a citywide conversation.

No matter where you stand, it’s clear this decision has sparked a lot of passion and conversation here in town. Whether you support the overlay or have concerns, this is a great time to learn more, get involved, and make sure your voice is part of the process. I’ll be keeping an eye on how things develop, and I’ll share updates as they come.