Morgan Hill – Business owners and city planners are backing zoning amendments to encourage more shopping, dining and entertainment options along Monterey Road and East Third Street.

The proposed amendments, recently approved by the Morgan Hill Planning Commission, would create a “ground-floor retail area” between Main and Dunne avenues for the city’s main drag, emphasizing restaurants, retail outlets and other attractions for those milling around on foot.

Officials say the new zoning rules are needed to implement the 2004 Morgan Hill Downtown Plan.

“It’s to grow the retail aspect of downtown,” said Ralph Lyle, a member of the Morgan Hill Planning Commission, which finished approving the group of amendments at its Oct. 10 meeting. “We have empty lots and empty buildings. In general, it’s saying ‘let’s build downtown.’ ”

The proposed amendments were referred to the city’s planning commission by the Morgan Hill City Council, at the request of the Morgan Hill Downtown Association.

The city council will decide whether to adopt the amendments at its Nov. 1 meeting.

If adopted, the new rules would restrict storefronts to retail outlets, restaurants, financial services, nightclubs and bars, theaters, commercial services, art galleries, antique shops, vintage clothing stores and specialty food markets.

They also would change the rules on set-backs for new buildings.

“Prior setbacks had been, in the commission’s view, overly biased toward homeowners. If you have a home 25 feet back from the street, there was concern” that a new building next to it would also have to be 25 feet from the curb, Lyle said.

The new rules, he added, allow developers more flexibility to create the pedestrian-friendly downtown shopping area envisioned in the city’s downtown plan.

Tony Burchyns covers Morgan Hill for The Times. Reach him at (408) 779-4106 ext. 201 or tburchyns@morganhilltimes.

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