Chapter 23.31: COMMERCIAL AND INDUSTRIAL ZONING DISTRICTS

§ 23.31.010 Purpose.

This chapter lists the commercial and industrial zoning districts as established by PGMC § 23.12.010 and establishes the development standards and types of land uses permitted in each commercial and industrial zoning district.

(Ord. 13-003 § 2, 2013; Ord. 26-003, 1/21/2026)

§ 23.31.020 Commercial and industrial zoning districts.

(a)

Light Commercial (C-1). The C-1 zoning district provides for neighborhood scale and locally oriented retail, service, office uses, as well as residential uses.

(b)

Light Commercial and Hotel (C-1-T). The C-1-T zoning district was enacted by citizen initiative, and the standards of the district are included in the applicable sections of this chapter without modification from the initiative.

(1)

Intent of District. The intent of the C-1-T district as described by the initiative is as follows:

(A)

It is the intent of the people of the city of Pacific Grove in enacting the ordinance codified in this chapter to establish a zone district in the city's downtown area where hotel use is permitted, as are all other uses listed in the C-1 district of this code, as said district may be from time to time amended by the council. The people have determined that the area of downtown defined by subsection (b)(2) of this section is appropriate for hotel development. Further, except as modified by this chapter, all provisions of the motel/hotel regulation ballot measure enacted by the people at the June 3, 1986, special municipal election, as set out at Chapter 23.52 PGMC, shall remain unchanged and in full force and effect.

(B)

It is also the intent of the people of the city of Pacific Grove in enacting the ordinance codified in this chapter to provide for an exception to the strict regulations governing condominium development at Chapter 23.45 PGMC, said section enacted by the people at an election held in the city on November 2, 1982. The people have determined that the area of the downtown defined in subsection (b)(2) of this section is appropriate for condominium development in a manner less restrictive than defined by regulations set out in Chapter 23.45 PGMC. Further, except as modified by this chapter, the provisions of Chapter 23.45 PGMC shall remain unchanged and in full force and effect.

(2)

Boundaries of District. The C-1-T district shall be that area defined by the block bounded by Lighthouse Avenue, Grand Avenue, Central Avenue and Fountain Avenue.

(3)

Amendment. No provision of the C-1-T zoning district shall be repealed or amended except by a vote of the people.

(c)

Downtown Commercial (C-D). The C-D zoning district is intended to provide for a range of uses including retail, restaurants, services, entertainment, and upper floor residential, and other compatible uses which enhance the vitality and character of the city's historic commercial core.

(d)

Forest Hill Commercial (C-FH). The C-FH zoning district serves as an entrance to the city, offering a variety of commercial and service uses, as well as residential uses, while respecting nearby residential uses.

(e)

Heavy Commercial (C-2). The C-2 zoning district is applied to areas of the city that are appropriate for limited residential uses, service commercial and light manufacturing uses, which may involve outdoor storage or activity areas.

(f)

Visitor Commercial (C-V). The C-V zoning district is applied to areas of the city appropriate for retail sales, commercial services, and institutional uses oriented to tourism.

(g)

Restricted Industrial (I). The I zoning district is applied to areas of the city that are appropriate for limited commercial uses, service commercial and light manufacturing uses, which may involve outdoor storage or activity areas.

(Ord. 13-003 § 2, 2013; Ord. 26-003, 1/21/2026)

§ 23.31.025 C-V-ATC zoning district – American Tin Cannery zoning.

(a)

Boundaries of District. The C-V-ATC zoning district shall apply to the American Tin Cannery site that is comprised of Assessor's Parcel Numbers 006-231-001, 006-234-004, and 006-234-005 and that segment of Sloat Avenue that is continuous to the American Tin Cannery site.

(b)

Uses Permitted. Notwithstanding any other provision of the Pacific Grove Municipal Code, the following uses shall be permitted in the C-V-ATC zoning district:

(1)

Hotels and any accessory uses, such as restaurants, bars and lounges, meeting and event facilities, spa and fitness facilities, parking, and buildings, spaces, and structures incidental to such uses, subject to first securing a use permit.

(2)

All uses that are permitted in the C-V zoning district and additional uses permitted by subsequent amendment to the zoning ordinance.

(c)

Development Standards. Development standards in the C-V-ATC zoning district, including floor area coverage, density, setbacks and height limits shall be in accordance with the applicable standards set forth in the local Coastal Program Land Use Plan, as updated or amended, or if no such standards are provided in the local Coastal Program Land Use Plan, as updated or amended, in accordance with the standards set forth in the use permit or other required permit for a use allowed in the C-V-ATC zoning district.

(d)

Except as modified by this section, all provisions of the motel/hotel regulation ballot measure enacted by the people at the June 3, 1986, special election, as set out at Chapter 23.52 PGMC, shall remain unchanged and in full force and effect.

(Ord. 16-009A § 1, 2016; Ord. 26-003, 1/21/2026)

§ 23.31.030 Commercial and industrial zoning districts allowable land uses and permit requirements.

Key to Zoning District Symbols
C-1	Light Commercial	C-FH	Forest Hill Commercial	I	Restricted Industrial
C-1-T	Light Commercial and Hotel	C-2	Heavy Commercial
C-D	Downtown Commercial	C-V	Visitor Commercial
P = Permitted use; counter review and determination required (see PGMC § 23.70.020)				UP = Use permit required (see PGMC § 23.70.080)
AUP = Administrative use permit required (see PGMC § 23.70.030)				– = Use not allowed

Table 23.31.030 Commercial and Industrial Zoning Districts Allowable Land Uses and Permit Requirements
Use	Specific Use Regulations (PGMC)	C-1¹	C-1-T¹	C-D¹	C-FH¹	C-2	C-V¹	I
Industry, Manufacturing and Processing
Contract construction – no outdoor storage		P²	P²	–	P²	P^{3, 4}	P²	P³
Contract construction – outdoor storage		–	–	–	–	P^{3, 4}	UP	UP
Construction, large-scale equipment sales and rental		–	–	–	–	P^{3, 4}	UP	UP
Industrial, light		UP	UP	–	UP	AUP^{3, 4}	UP	AUP^3,4
Recycling facility		UP	UP	–	UP	UP	UP	UP
Research and development facility		AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Storage – self-storage facility		–	–	–	–	AUP³	AUP²	AUP³
Warehousing, wholesaling and distribution		–	–	–	–	P³	P²	P³
Recreation, Education and Public Assembly
Commercial recreation facility – indoor (< 10,000 sf)	7.08, 7:12, 23.64.035	P²	P²	P²	P²	P³	P²	P³
Commercial recreation facility – outdoor		AUP²	AUP²	–	–	AUP³	AUP²	AUP³
Community garden		AUP⁵	AUP⁵	AUP⁵	AUP⁵	AUP⁵	AUP⁵	–
Health/fitness studio (< 10,000 sf)		P²	P²	P²	P²	P³	P²	P³
Meeting facility, public or private (< 10,000 sf)		P²	P²	P²	P²	P³	P	P³
Park, playground (public)		P²	P²	P²	P²	P³	P²	P³
Public or quasi-public facility (< 10,000 sf)		P²	P²	P²	P²	P³	P²	P³
School, specialty (< 10,000 sf)		P²	P²	P²	P²	P³	P²	–
Theater or auditorium (< 10,000 sf)		P²	P²	P²	P²	P³	P²	P³
Residential
Accessory building or structure		P	P	P	P	P	–	UP
Condominium		UP	UP⁶	UP	UP	UP	–	UP
Duplex		P	P	P	P	P	–	UP
Dwelling group		UP	UP	UP	UP	UP	–	UP
Emergency shelters⁹		–	–	P	P	P	–	P⁹
Employee housing for 6 or fewer persons¹²		P	P	P	P	P		UP
Home business	23.16	P	P	P	P	P	–	UP
Large family day care home		UP	UP	UP	UP	UP	–	–
Low barrier navigation centers				P⁹	P⁹	P⁹	–	P⁹
Mixed-use (residential above or behind commercial)		P²	P²	P²	P²	P³	–	–
Mobile home park		–	–	–	–	UP	–	UP
Multifamily dwelling
7 or fewer units	23.28.020	P	P	P	P	P	–	UP
8 or more units	23.28.020	P	UP	P	P	UP	–	UP
Residential care
Housing 6 or fewer persons		P¹⁰	P¹⁰	P¹⁰	P¹⁰	P¹⁰	–¹⁰	UP¹⁰
Housing 7 or more persons		UP	UP	UP	UP	UP	–	UP
Rooming and boarding house¹²		UP	UP	UP	UP	UP	–	UP
Second unit	23.80	P	P	P	P	P	–	UP
Single-family dwelling		P	P	P	P	P	–	UP
Single-Room Occupancy		P	P	P	P	P	–	UP
Transitional or supportive housing		P	P	P	P¹¹	P¹¹	–	UP¹¹
Retail Sales
Automobile/vehicle sales and rental		AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Automobile/vehicle service station		AUP²	AUP²	–	AUP²	AUP³	AUP²	AUP³
Bar/tavern/nightclub		–	–	–	–	–	–	–
Brew pub with food service	23.64.290	AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	–
Farmers market		UP	UP	UP	UP	UP	UP	–
Flea market		UP	UP	UP	UP	UP	UP	–
Micro-brewery	23.64.290	–	–	–	UP	UP	UP	UP
Pub or sports bar with food service	23.64.290	AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	–
Restaurant, general and formula general
w/no alcohol sales	23.64.134	P²	P²	P²	P²	P³	P²	–
w/alcohol sales	23.64.134, 23.64.290	AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	–
Restaurant, specialty (not formula)
w/no alcohol sales	23.64.134; if formula, see also 23.64.115	P²	P²	P²	P²	P³	P²	–
w/beer and wine sales only	23.64.134, 23.64.290; if formula, see also 23.64.115	AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	–
Restaurant, fast food (not formula) - w/no alcohol sales	23.64.134; if formula, see also 23.64.115	AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	–
Restaurant, drive-in/drive-through (not formula) - w/no alcohol sales	23.64.134; if formula, see also 23.64.115	–	–	–	UP	–	–	–
Retail - general, except the following:		P²	P²	P²	P²	P³	P²	UP
Adult-oriented sales		UP⁷	UP⁷	–	UP⁷	–	–	–
Alcoholic beverage sales		UP	UP	UP	UP	UP	AUP²	–
Auction houses		P	–	–	P	P	P	P
Automobile rental		P	–	–	P	P	P	P
Bail bonds		P	–	–	P	P	P	P
Blood, plasma, tissue donation		P	–	–	P	P	P	P
Body piercing/tattoo parlor		P	–	–	P	P	P	P
Check cashing stores		–	–	–	P	P	P	P
Dollar/99 cent stores		–	–	–	P	P	P	P
Electric cigarette/e-vapor		P	–	–	P	P	P	P
Gold and silver exchange stores		P	–	–	P	P	P	P
Kennels or pet boarding**		P	–	–	P	P	P	P
Pawn shops		P	–	–	P	P	P	P
Recreational vehicle sales		P	–	–	P	P	P	P
Meeting halls or places of assembly		P	–	–	P	P	P	P
Tire sales and repair		P	–	–	P	P	P	P
Businesses from which minors excluded by law or owner		UP	UP	UP	UP	UP	UP	–
Floor area over 10,000 sf		AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Operating between 12:00 a.m. and 7:00 a.m.		UP	UP	UP	UP	UP	UP	UP
Outdoor storage or displays		AUP	AUP	AUP	AUP	AUP¹	AUP	AUP¹
Retail - restricted		UP	UP	–	UP	UP	UP	UP
Wine bar	23.64.290	AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Wine tasting room	23.64.290	AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Services
Animal keeping/training facilities or veterinary service		AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Automobile/vehicle repair		AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Bank or financial service, except the following:		P²	P²	P²	P²	P³	P²	P³
Floor area over 10,000 sf at street level		AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
w/drive-through		UP	UP	–	UP	UP	UP	UP
Business support service		P²	P²	P²	P²	P³	P²	P³
Car wash and detailing		AUP²	AUP²	–	AUP²	AUP³	AUP²	AUP³
Catering and events	23.64.290	AUP²	AUP²	AUP²	AUP²	UP	UP	UP
Equipment/appliance rental and repair		AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Laundry or dry cleaning service		AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Lodging
Bed and breakfast inn - w/beer and wine sales only	23.64.290	AUP²	AUP²	AUP²	AUP²	AUP³	AUP²	AUP³
Hotel or motel	23.64.290	–	UP⁸	–	–	–	–	–
Medical service
Ambulance service		UP	UP	–	UP	UP	UP	UP
Clinic or lab		P²	P²	P²	P²	P³	P²	P³
Medical office		P²	P²	P²	P²	P³	P²	P³
Hospital		UP	UP	–	–	UP	UP	UP
Mortuary or funeral home		UP	UP	–	UP	UP	UP	UP
Office, business or professional		P²	P²	P²	P²	P³	UP	UP
Personal service	7.06	P²	P²	P²	P²	P³	P²	UP
Personal service - restricted		UP	UP	UP	UP	UP	UP	UP
Printing or creative service		P²	P²	P²	P²	P³	P²	P³
Transportation and Infrastructure
Parking facility		UP	UP	UP	UP	UP	UP	UP
Public utility		UP	UP	UP	UP	UP	UP	UP
Radio or television station		UP	UP	UP	UP	UP	UP	UP
Taxi service	7.16	UP	UP	UP	UP	UP	UP	UP
Transit center		UP	UP	UP	UP	UP	UP	UP
Wireless telecommunication facility		UP	UP	UP	UP	UP	UP	UP
Temporary wireless telecommunications facility		CRD	CRD	CRD	CRD	CRD	CRD	CRD
Wireless eligible facilities request		AUP	AUP	AUP	AUP	AUP	AUP	AUP

End Notes:
1. No merchandise, tools, machinery, equipment, or materials shall be stored or displayed outside of a building, except as specifically permitted for retail uses under an administrative use permit. Temporary administrative use permits, good for not over 30 days, may be granted, pursuant to PGMC § 23.70.030(b)(7), for temporary outdoor sales events of new merchandise by merchants holding use permits or otherwise qualified to operate within the applicable district; provided, that such outdoor sales are operated in conjunction with their established retail operations, and for Christmas tree sales, or other sales on private property, connected with festivals or holidays.
2. The permit type specified in this table applies to any new or enlarged commercial use which totals 10,000 square feet or less of interior floor space. An administrative use permit is required for any new or enlarged commercial use which results in either the use of more than one structure on a building site or a total of more than 10,000 square feet of interior floor space. A use permit is required where any new or enlarged commercial use exceeds 25,000 square feet in interior floor space.
3. A use permit is required for any new building or addition which adds more than 25,000 square feet of interior floor space or which results in a building having more than 40 feet in height.
4. Such uses may be granted subject to a use permit, when conducted within a building or enclosed by a fence, subject to architectural approval by the appropriate review authority for design and landscaping pursuant to Chapter 23.70 PGMC; and provided, that said fence and landscaping shall be of sufficient height and screening capacity to prevent the view thereof from any adjacent street or sidewalk.
5. Community gardens on vacant lots may be permitted by administrative use permit, pursuant to PGMC § 23.70.030(b)(7), and shall be reviewable every six months and subject to such conditions as the administrative use permit may prescribe. The application shall be accompanied by a written agreement by the owner to grant the city a lien for any cost incurred by the city in restoring such property to its condition prior to such use, in the event the owner fails to make such restoration after such use ceases.
6. Condominium use shall be allowed, subject to first securing a use permit in each case, and subject to the building height, site coverage, and yard requirements of this chapter. The provisions of Chapter 23.45 PGMC shall not apply to development of condominiums in the C-1-T district. The council shall, by ordinance, establish standards, conditions and other regulations to govern the development of condominiums in the C-1-T district. Until and unless such standards, conditions and other regulations are in place, no application for such development shall be accepted or processed. Such standards, conditions and regulations established by the council shall be in addition to and harmonious with state law governing condominium development. See also PGMC § 23.31.020(b)(1)(B).
7. Adult-oriented sales may comprise no more than 25 percent of floor area or stock-in-trade of a general retail business, must be located in the rear of the general retail business, and must not be visible from the exterior of the general retail business.
8. Hotel uses shall be allowed, subject to first securing a use permit in each case, and subject to the building height, site coverage, and yard requirements of this chapter. All other regulations and conditions of approval shall be as provided by use permit approved pursuant to this title. Said regulations and conditions shall include, without limitation, provisions for architectural review, land area per unit, neighborhood compatibility, landscaping, parking, traffic and accessory buildings. Required parking, if any, may be located on or off site, the location to be designated by the use permit. See also PGMC § 23.31.020(b)(1)(A).
9. Outside the coastal zone only. In addition to the requirements of PGMC § 23.31.040, emergency shelters shall be subject to the following standards:
a. Maximum of 25 beds.
b. Off-street parking shall be provided at a rate of one space per each staff person on duty.
c. On-site management shall be provided at all times the shelter is open. A management and security plan shall be prepared in consultation with the city manager or his or her designee which shall describe hours of operation; staffing; house rules and occupant screening procedures; on- or off-site services to be provided; security measures to ensure the safety of the occupants of the shelter and surrounding areas; and communications protocols to ensure effective coordination between shelter management, adjacent property owners and residents, and public safety personnel.
d. No emergency shelter shall be established closer than 300 feet from another emergency shelter, measured from the nearest property line.
e. Waiting and intake areas shall be screened from view from the public right-of-way.
10. Permitted subject to the same standards as apply to other residential dwellings of the same type in the same zone.
11. Transitional and supportive housing developments shall be subject to the parking requirements of PGMC § 23.64.190, with the exception of developments located within a one-half (0.5) mile distance of a transit stop where no off-street parking shall be required.
12. Rooming houses or boarding houses accommodating employee housing shall be subject to Employee Housing Act. See permitted uses and standards under employee housing.

(Ord. 13-003 § 2, 2013; Ord. 15-013 § 4, 2015; Ord. 16-005 § 6, 2016; Ord. 20-001 § 2 (Exh. A), 2020; Ord. 26-003, 1/21/2026)

§ 23.31.040 Commercial and industrial zoning districts development standards.

Table 23.31.040 Commercial and Industrial Zoning Districts Development Standards
	C-1⁷	C-1-T	C-D⁷	C-FH^1,7	C-2⁷	C-V	I
Building Placement Requirements
Setbacks^1,2,3,4
Front, min. (max.)⁶	0'	0'	0'	0' (20')	0'	0'	0'
Side (min.), except:	0'	0'	0'	0'	0'	0'	0'
Residential/Mixed-use	10'	0'	5'	10'	0'	0'	0'
Adjacent to residential zone	5'	5'	5'	5'	5'	10'	10'
Rear (min.), except:	0'	0'	0'	10'	0'	0'	0'
Adjacent to residential zone	5'	5'	5'	10'	5'	10'	10'
Building Form Requirements
Building height (max.)⁴	45'	40' with max. site coverage of 75%; 30' with max. site coverage of 90%	40'	35'	40'	40' with max. site coverage of 75%; 30' with max. site coverage of 90%	40'
Site coverage (max.)	90%	75-90%, depending on building height	100%	75%	90%	75-90%, depending on building height	90%
Stepbacks for portion of building above 25 feet
Front, min	8'⁵	0'	0'	8'	0'	—	—
Side, min	0'	0'	0'	0'	0'	—	—
Rear, min⁶	30'	0'	10'	30'	0'	—	—
Density Requirements
Dwelling units per net acre	Max. 30 units per acre. For Coastal Zones - Max. allowed by the general plan residential land use category nearest to the site, up to 30 units per net acre. nearest to the site, up to 30 units per net acre	Max. allowed by the general plan residential land use category nearest to the site, up to 30 units per net acre	Max. of 45 units per acre; with a minimum density require- ment of 30 units per acre.	Max. of 45 units per acre; with a minimum density require- ment of 30 units per acre.	Max. 30 units per acre. For Coastal Zones - Max. allowed by the general plan residential land use category nearest to the site, up to 30 units per net acre.	N/A	Max. allowed by the GP residential land use category nearest to the site, up to 30 units per net acre.⁶
Floor area ratio	Max. allowed by the general plan
Lot Requirements
Lot area for new parcels (min.)	2,000 sf
Other Requirements
Landscaping	See PGMC § 23.64.195
Parking	See PGMC § 23.64.190
Signs	For C-D district see Chapter 20.05 PGMC. For all other districts see Chapter 20.04 PGMC

End Notes:
1. For mixed-use residential/commercial development where residential ground-floor street frontage is allowed and constructed, the setback standards in PGMC § 23.31.50 shall apply.
2. Cornices, eaves, and other horizontal projections may be allowed, consistent with PGMC §§ 23.64.150 and 23.64.160.
3. Along Central, Lighthouse, and Forest Avenues, commercial ground-floor street frontage standards in PGMC § 23.31.050 also apply.
4. Chimneys and other vertical projections may be allowed, consistent with PGMC § 23.64.120.
5. In C-1 and C-FH districts, front stepbacks requirements shall not apply for up to 30 feet of a building's width.
6. Rear stepback requirements shall not apply within 70 feet of front property line, while rear setback requirements shall continue to apply.
7. Pursuant to Government Code Section 65583.2(h)(2) for mixed-use development projects on sites within C-1, C-2, C-D and C-FH districts, identified in the 6th Cycle Housing Element Site Inventory for lower-income households, a minimum of 50 percent of the total floor area shall be residential.
The 6th Cycle Housing Element can be found on the City's website:
https://www.cityofpacificgrove.gov/our_city/departments/community_development/housing/housing_element.php
Sites within the C-1, C-2, C-FH and C-D that are identified for lower-income housing units include the following:

Site No.	Address	APN(s)
8	601 Lighthouse Ave.	006294017000, 006294015000
9	525, 531 Lighthouse Ave.	006284015000, 006284001000, 006284002000
18	95 Central Ave.	6238005000
20	2749 Forest Hill Blvd.	007651013000, 007651017000
21	1146, 1152 Forest Ave.	7651022000, 7651014000
22	1125, 1129, 1133, 1137 Forest Ave.	006713031000, 006713032000, 006713027000, 006713026000
26	1157 Forest Ave.	6713023000
27	1193 Forest Ave.	6713019000
29	1124, 1140 Forest Ave.	7641009000, 7641008000
30	1160 Forest Ave.	7651019000
31	1180 Forest Ave.	7611031000
33	1219 Forest Ave.	6725023000
48	2184 Sunset Dr.	7091025000
49	17 Mile Dr.	7091026000
55	801 Sunset Dr.	7101036000

(Ord. 13-003 § 2, 2013; Ord. 17-009 § 3, 2017; Ord. 26-003, 1/21/2026)