Planning Commission Backs Zoning Changes to Support Small Business Flexibility

The West Hollywood Planning Commission voted unanimously on May 15 to recommend a zone text amendment (ZTA) aimed at giving local businesses more flexibility to diversify their operations. The proposed changes, part of the city’s Small Business Initiative, seek to streamline rules for Accessory Business Uses (ABUs) and Incidental Business Activities — two categories of secondary activities that support a business’s main function.

According to city staff, the ZTA would save businesses up to $10,000 in permitting costs and shorten approval timelines by as much as three months. Associate Planner Paige Portwood and Long Range Planning Manager Francisco J. Contreras presented the item, explaining that the changes support small business creativity and post-pandemic resilience.

Accessory Business Uses, such as a café inside an art gallery, may now occupy up to 50% of the primary business’s floor area — double the previous cap of 25%. Businesses can request an additional 10% at the discretion of the Community Development Director.

Incidental Business Activities — like tastings, workshops, or film screenings — will no longer require a conditional use permit (CUP) and can instead be authorized via an administrative permit. Commissioners clarified that the code should reference “co-working in designated remote working areas,” rather than physical rooms like “podcast studios,” to better align with the goal of regulating activities rather than spaces.

Commissioner Lynn Hoopingarner expressed concern about the expanded floor area limit. She noted, “It seems a little bit of a slippery slope when the accessory business uses are bigger than the primary business use,” and suggested a 40% cap with a 10% discretionary increase. Ultimately, the commission opted to keep the 50% baseline.

A second point of debate focused on whether businesses should be allowed to charge admission for incidental activities. The original language permitted only charges to cover “material costs.” Commissioner Andrew Solomon argued for broader flexibility, stating, “I don’t think that we should be in the business of regulating whether or not the business can charge people to walk in to their store for that incidental activity.”

In response, the commission voted to strike the phrase “material costs” and instead allow admission fees to cover general costs, subject to review authority approval. Hoopingarner supported the revision but emphasized the need to avoid confusion. “We want to encourage these accessory business uses and incidental business uses,” she said, but cautioned that clarity in the code is essential so “everybody who reads it understands it and can work with it.”

The final version of the resolution also included edits to remove references to physical spaces in the incidental use definitions and replaced them with action-oriented descriptions — such as “film screenings and discussions” instead of “small theater rooms.”

Commissioners praised the proposal’s potential to help small businesses remain competitive in a challenging economy. “We don’t want to see vacant storefronts,” said Solomon. “This is to allow for a local business to thrive… and appeal to members of the public that want to enjoy a great service.”

Resolution No. PC 25-1604 now advances to the City Council for consideration.