CITY OF NAPA - File #: 182-2026

• File #: 182-2026
• Type: Evening Public Hearings
• Status: Agenda Ready
• Meeting Body: CITY COUNCIL OF THE CITY OF NAPA
• On agenda: 7/21/2026
• Title: Franklin Station II Redevelopment Project and Development Agreement

Date	Ver.	Action By	Action	Result
7/21/2026	1	CITY COUNCIL OF THE CITY OF NAPA

To:                     Honorable Mayor and Members of City Council

From:                     Molly Rattigan, Community Resources and Development Director

Prepared By:                     Ryder Dilley, Planning Manager

TITLE:

Title

Franklin Station II Redevelopment Project and Development Agreement

LABEL

RECOMMENDED ACTION:
Recommendation

(1) Adopt a resolution approving, pursuant to a Section 15168 Analysis, an Addendum to the Downtown Napa Specific Plan Programmatic Environmental Impact Report (SCH no. 2010042043), and alternatively, to the CEQA Guidelines Section 15332 Categorical Exemption, for the Franklin Station II Project located at 1251/1351 Second Stret, 820 Randolph Street, & 801/809 Coombs Street Unit A, B, C, & D (APNs 003-212-001, 003-208-001, 003-300-015 through 003-300-024;

(2) Approve the first reading and introduction of  an ordinance repealing in its entirety Ordinance No. O2018-014, adopting planned development overlay district (PD-37) to establish use provisions, development standards, and design guidelines for the Franklin Station II Project located at 1251/1351 Second Street, 820 Randolph Street, & 801/809 Coombs Street Unit A, B, C, & D (APNs 003-212-001, 003-208-001, 003-300-015 through 003-300-024 (PL25-0068) and determining that the actions authorized by this ordinance were adequately analyzed by a previous CEQA action;

(3) Approve the first reading and introduction of an ordinance approving and authorizing the City Manager to execute a Development Agreement pursuant to Government Code Section 65864, et seq. by and between the City of Napa and 1351 Second Street, LLC, Keller Yountville Vineyard LLC, Young Building LLC, and James Keller, authorizing the City Clerk to record the agreement, and determining that the actions authorized by this ordinance were adequately analyzed by a previous CEQA action;

(4) Adopt a resolution approving a (1) a Design Review Permit authorizing the construction of (i) a 5-story hotel building, including a basement and rooftop space, with 94 rooms, food and beverage uses, and spa, event, and fitness amenities; (ii) a 5-story mixed-use building, including rooftop structure and space, with 25 For-Sale Hotel Units and 3 condo units within the Young Building, for a total of 28 For-Sale Hotel Units with on-site parking facilities and retail unit on the ground-level and (2) a Tentative Parcel Map to reconfigure four existing (4) parcels into three (3) parcels for the purpose of financing, ownership, and condominium property division purposes totaling approximately 1.44 cumulative acres and located at 1251/1351 Second Street, 820 Randolph Street, and 801/809 Coombs Street Unit A, B, C, & D (APNs: 003-212-001, 003-208-001, 003-300-015, -016, -017, -018, -019, -020, -021, -022, -023, & -024) and determining that the actions authorized by this resolution were adequately analyzed by a previous CEQA action;

(5) Adopt a resolution approving a Certificate of Appropriateness authorizing major alterations and the preservation of the Franklin Station Post Office building, which is identified as a National Register Property and a Local Landmark, located at 1351 Second Street (APN: 003-208-001) and determining that the actions authorized by this resolution were adequately analyzed by a previous CEQA action.

Body

DISCUSSION:

I.                     EXECUTIVE SUMMARY

The Applicant, James Keller, submitted an application for multiple entitlements (PL25-0068), including a Development Agreement, a Zoning Amendment amending the Planned Development Overlay (PD-37) District, a Tentative Parcel Map, a Certificate of Appropriateness, and a Design Review Permit, and related approvals, to provide for the redevelopment of an approximately 1.44-acre property, including two new buildings and the preservation of the Franklin Station Post Office building.

The Project maintains the rehabilitation and adaptive reuse of the historic Franklin Station Post Office building as a five-story upper-upscale hotel with up to 120 hotel rooms and other amenities, including a rooftop café and bar, restaurant, and event and meeting spaces (APN: 003-208-001) (collectively, the “Post Office Redevelopment”) and includes the redevelopment of the parking lot parcel with a five-story building with up to 37 For-Sale Hotel Units (such units are commonly referred to as “branded residential” and that may be occupied by owner), shared amenities, and ground-floor retail; and integrates 3 existing condominium units as For-Sale Hotel Units in the adjacent Young Building for a total of 40 For-Sale Hotel Units with on-site parking facilities and retail on the ground level (APNs: 003-212-001, 003-300-015, -016, -017, -018, -019, -020, -021, -022, -023, & -024 (collectively, the “Mixed Use Development”).

The Certificate of Appropriateness would authorize major alterations to the Franklin Station Post Office, which is designated as a Local Landmark and on the National Register of Historic Properties. Further historical context is provided below in Section II.B.

The Project is located at 1251/1351 Second Street, 820 Randolph Street, and 801/809 Coombs Street Unit A, B, C, & D (APNs: 003-212-001, 003-208-001, 003-300-015, -016, -017, -018, -019, -020, -021, -022, -023, & -024) (collectively, “Project Site”).

The following actions are requested to facilitate the Project:

Planned Development (PD-37) Overlay Zoning Amendment

Adoption of an ordinance establishing a Planned Development Overlay (PD-37) District with specific use provisions, intensity and density, maximum floor area, and maximum height, along with other development standards. The PD would also establish Project-specific Design Guidelines for the Project which would be site-specific and intended to supersede the more general Downtown Napa Specific Plan Design Guidelines. The proposed amendments, a map of the boundary change, and the draft design guidelines are included in Attachment 2, Draft Ordinance (Planned Development Overlay).

Development Agreement

Adoption of an ordinance to approve a Development Agreement, pursuant to 65864 et seq. of the Government Code and Napa Municipal Code Section 17.52.150 and Resolution No. 93-267, to vest in the Applicant for a period until October 1, 2030, the foregoing Project approvals and to establish certain conditions, procedures, and requirements related to implementation of the Project. The Development Agreement includes the payment of the hotel/motel rate of the Affordable Housing Development Impact Fee for the entirety of both buildings, in addition to a payment to the Affordable Housing Fund  of $1.00 per square foot per residential unit to be paid at the close of escrow for the sale of each for-sale hotel unit. State law requires that a Development Agreement be adopted by Ordinance. The draft Ordinance is provided as Attachment 3, Draft Ordinance (Development Agreement), and the draft Development Agreement is provided as Attachment 6, Draft Development Agreement.

Design Review Permit

Adoption of a resolution approving the design for the rehabilitation and adaptive reuse of the historic Franklin Station Post Office building as a five-story upper-upscale hotel with 94 hotel rooms and other amenities, including a rooftop café and bar, restaurant, and event and meeting spaces and includes the redevelopment of the parking lot parcel with a five-story building with 25 For-Sale Hotel Units including a rooftop unit, shared amenities, and ground-floor retail; and integrates 3 existing condominium units as For-Sale Hotel Units in the adjacent Young Building for a total of 28 For-Sale Hotel Units with on-site parking facilities and retail on the level. The draft resolution to approve the design is included as Attachment 4, Draft Resolution (DR)(TPM), and the plans are shown in Attachment 7, Project Plans.

Tentative Parcel Map

Adoption of a resolution approving the  reconfiguration of four (4) existing parcels into three (3) parcels for the purpose of financing, ownership and condominium property division purposes. The draft resolution approving the tentative parcel map is included as Attachment 4, Draft Resolution (DR)(TPM), and the tentative parcel map is shown in Attachment 7, Project Plans.

Certificate of Appropriateness

Adoption of a resolution approving a Certificate of Appropriateness authorizing major alterations and the preservation of the Franklin Station Post Office building. The Project would preserve significant historic features on the building consistent with pages 116 and 117 of Downtown Specific Plan Appendix G, and as shown in Attachments 7 and 8.

II.                     SITE CONTEXT AND HISTORY

A.                     Surrounding Land Uses

The Site is within the core of Downtown Napa, bounded on the north by retail, office uses, and a surface parking lot across Second Street, to the east by a hotel, on the south by the adjacent Uptown Theatre and retail uses and the Presbyterian Church across Third Street, and on the west by office and retail uses across Franklin Street. Existing land uses in the vicinity of the Site include a variety of retail stores, offices, restaurants, services and visitor attractions.

B.                     Site History

The Franklin Station Post Office was designed by the Oakland firm Reed and Corlett and completed in 1933, serving as the City of Napa’s main postal facility for more than eighty years. Architect William H. Corlett, who had deep professional roots in Napa, contributed significantly to the City’s built environment through multiple prominent commissions.

The building was listed on the National Register of Historic Places on January 11, 1985, under Criterion C for its architectural significance and as a strong local example of Art Deco design. The nomination cited the building’s unusually well preserved condition at the time, its simple geometric massing with a central projected bay flanked by recessed wings, its decorative terracotta ornament, its distinctive cornice of terracotta rams and cows heads, its brick detailing, steel sash windows, terracotta eagle panels, and its prominent role in the community’s civic identity. The interior lobby was recognized for its significant decorative finishes, including raised plaster ceilings, terrazzo flooring, marble wainscoting, and ornamental plasterwork. For further historic analysis, please refer to Attachment 8, Certificate of Appropriateness Plans.

The building sustained substantial damage during the 2014 South Napa Earthquake, leading to its closure. After the event, the United States Postal Service determined that restoring the structure and completing the required seismic upgrades would be cost prohibitive and initially pursued demolition. While many interior materials were cracked, displaced, or otherwise compromised, a post earthquake evaluation prepared for the United States Postal Service found that the building continued to retain integrity of design, materials, workmanship, and location, and therefore remained eligible for listing on the National Register. Damage was most severe at the east and west ends of the lobby, while the central lobby volume and the exterior character defining features largely remained intact.

C.                     Preservation Covenant

Following the 2014 South Napa Earthquake and the Postal Service’s initial plan to demolish the damaged building, strong community and interagency advocacy led the United States Postal Service, the California Office of Historic Preservation, Napa County Landmarks, and the City of Napa to work together on a Preservation Covenant to guide future rehabilitation of the Franklin Station Post Office.

The Covenant identifies the building’s significant historic features and establishes requirements for their protection while allowing alterations at the sides, rear, and rooftop and the removal of non-contributing portions behind the historic facade when necessary to accommodate rehabilitation. Napa County Landmarks serves as the Covenant holder and is responsible for administering its provisions in accordance with the Secretary of the Interior’s Standards. The Covenant was recorded (see Attachment 10) prior to the sale of the property to ensure that any future work on the building is carried out in a manner that preserves its defining historic qualities.

D.                     Prior Project History

After the Postal Service elected to sell the Franklin Station Post Office property, the Applicant acquired the site with the intent to rehabilitate the earthquake damaged building and repurpose it for a commercially viable use. Beginning in 2017, the Applicant subsequently submitted an application proposing to restore the historic structure and redevelop both the Post Office parcel and the adjacent Ace Hardware parcel with a hotel, ancillary retail, restaurant space, and an automated parking structure with ground floor commercial use on the City’s Parking Lot parcel (APN: 003-212-001).

In approving the previous entitlements, the City Council approved the 2018 Addendum to the Downtown Napa Specific Plan Environmental Impact Report and adopted related amendments to the General Plan, Downtown Specific Plan, including amendments to the Historic Guidelines for the Post Office in Appendix G (see Attachment 8), and Zoning Code, along with a Development Agreement and other required entitlements. These actions included:

•                     Resolution R2018-132: Changing the General Plan designation of 1351 Second Street from Downtown Public to Downtown Mixed Use; and

•                     Resolution R2018-133: Amending the Downtown Napa Specific Plan to redesignate 1351 Second Street from Downtown Public to Downtown Mixed Use; and

•                     Resolution R2018-134: Approving a Certificate of Appropriateness and revising the Downtown Napa Historic Design Guidelines for the Franklin Station Post Office; and

•                     Resolution R2018-135: Authorizing the City Manager to execute the First Amendment to the agreement to sell the Second and Randolph Street surface parking lot; and

•                     Ordinance O2018-013: Amending the zoning map to rezone 1351 Second Street from Downtown Public to Downtown Mixed Use; and

•                     Ordinance O2018-014: Establishing Planned Development Overlay (PD-37) District; and

•                     Ordinance O2018-015: Adopting a Development Agreement No. C2019-036.

These entitlements anticipated that the Applicant would return for Design Review to confirm architectural consistency with the adopted guidelines and would seek a new Certificate of Appropriateness from the Cultural Heritage Commission based on the revised Historic Design Guidelines. Because the previously approved parking structure proved economically infeasible, it was never constructed. The Applicant has since redesigned the project and now seeks amendments to the previously approved entitlements, as well as a new Development Agreement, to reflect the updated development program.

III.                     PROJECT DESCRIPTION

The following section provides a description of the proposed Project and key components. The Project consists of multiple entitlements under consideration including a Development Agreement, a Zoning Amendment amending the Planned Development Overlay (PD-37) District, a Tentative Parcel Map, and a Design Review Permit, and a Certificate of Appropriateness, and related approvals, to provide for the redevelopment of an approximately 1.44-acre property, including two new buildings and the preservation of the Franklin Station Post Office building.

The Planning Commission held a special meeting on Thursday, June 30, and the Cultural Heritage Commission held a regular meeting on Thursday, July 9, with motions recommending the City Council approve the Project. Their discussions and motions are outlined in Section VI and VII. below. Final approval of all entitlements must come from the City Council, consistent with NMC Section 15.52.070(E)(3).

A.                     Post Office Redevelopment

The Project plans for the Post Office Redevelopment consists of a five-story hotel constructed within and behind the retained historic Franklin Station façade, using an adaptive reuse approach that preserves significant character defining features while introducing modern building systems and updated interior spaces. The proposed design incorporates original materials where feasible and applies the Secretary of the Interior’s Standards for Rehabilitation to ensure the historic portion remains the primary visual element of the structure. The hotel includes 94 rooms distributed across the upper floors, although the PD-37 Overlay would allow up to 120 rooms subject to future Design Review. Public facing uses such as the lobby, lounge, restaurant, meeting rooms, and back of house functions are concentrated on the ground floor and lower level to support daily activity and operational needs.

Upper floors transition to guest rooms, suites, and wellness amenities including spa and fitness spaces, with the fourth and fifth levels primarily dedicated to hotel rooms. A rooftop level provides outdoor recreation areas, a pool, and food and beverage service areas designed to take advantage of views and support hotel operations. The overall vertical layout reflects the building’s historic framework while accommodating a contemporary hotel program within the constraints of the existing structure and the Preservation Covenant.

The PD-37 Overlay also permits For-Sale Hotel Units within the Post Office Redevelopment, provided the overall Project does not exceed the maximum of 120 hotel rooms and 40 For-Sale Hotel Units authorized under the PD Overlay. This flexibility accommodates future adjustments to the internal program while maintaining compliance with the Project’s overall entitlements. The definition is for For-Sale Hotel Units is further discussed in Section IV.D. below.

B.                     Mixed-Use Redevelopment

The Mixed-Use Development consists of a new five story structure on the Parking Lot Parcel and the Wine Valley Box Unit Parcel, designed to complement the architectural character of the adjacent Post Office Redevelopment while providing a distinct yet compatible contemporary form. The building includes ground floor parking, retail, and support areas, with 34 on-site parking spaces accessed from Second Street, a lobby serving the For-Sale Hotel Units, and a neighborhood serving commercial space at the corner of Second and Randolph Streets. Upper levels contain the For-Sale Hotel Units, which are designed to access hotel amenities and may participate in the hotel’s rental program. Three existing condominium units in the Young Building are incorporated into the program through a connecting corridor on the second floor, allowing those units to function as For-Sale Hotel Units under the Project.

Upper floors are programmed with For-Sale Hotel Units and associated accessory spaces, including a rooftop level with resident serving amenities such as outdoor lounging areas, landscaped terraces, a fitness space, and a stepped back penthouse unit. The building reaches a height of approximately 60 feet at the fifth floor, with the penthouse structure extending to approximately 73 feet while maintaining setbacks to reduce its visibility from the street. Unit sizes range from approximately 1,700 to 1,850 square feet for two-bedroom units and 2,090 to 2,900 square feet for three-bedroom units. The overall program is designed to function cohesively with the hotel operations, offering flexibility for unit owners while maintaining consistency with the Project’s development standards and its integration into the surrounding Downtown context.

The PD-37 Overlay also permits For-Sale Hotel Units within the Mixed-Use Development to incorporate Lock Off configurations. These Lock Offs allow a portion of a unit to function as an independent hotel room for transient occupancy while remaining part of a single legal unit. Their use is subject to the rental term, operational, and management requirements established in the PD-37 Overlay to ensure consistency with the Project’s overall hotel use classification. The definition for Lock-Offs is further discussed in Section IV.D. below.

C.                     Franklin Station Post Office - Preservation and Rehabilitation

The rehabilitation of the Franklin Station Post Office focuses on retaining and restoring the historic portions of the building that contain the defining architectural and spatial features identified in the National Register nomination and subsequent evaluations. The most intact and significant areas of the structure are located at the front of the building and extend to the depth of the historic interior lobby. These portions contain the core exterior and interior elements that convey the building’s Art Deco design and its longstanding civic presence in Downtown Napa.

The 2014 South Napa Earthquake resulted in substantial structural and material damage to the rear and side areas of the building, including failure of interior plasterwork, cracking and displacement of terracotta and brick, and deterioration of structural components. Because much of this damage occurred outside the historic lobby depth, the rehabilitation approach retains the significant front portion of the building and removes the non-contributing and severely compromised areas behind it. This approach is consistent with the Preservation Covenant and aligns with the Secretary of the Interior’s Standards for Rehabilitation, which allow removal of deteriorated non-historic fabric when necessary to protect and preserve the significant features of a historic resource.

All character-defining exterior and interior features, and external spatial characteristics located within the retained historic portion of the building would be preserved, protected, repaired, or reconstructed using in kind materials where deterioration is too severe for retention. The rehabilitation preserves the building’s historic massing and the primary approach from Second Street, along with its significant lobby finishes, circulation patterns, and architectural details. These measures ensure that the Franklin Station Post Office continues to convey the historic qualities that supported its listing in the National Register of Historic Places.

The character defining features (further identified in Attachment 8) are summarized as:

1.                     Exterior:

a.                     Seven piers topped by a terracotta "capital" in a stylized floral motif;

b.                     Cornice extending from the roofline formed of terracotta rams and cows heads;

c.                     Ornament that consists of decorative brickwork and terracotta panels in a geometric motif (i.e., all decorative brickwork and terra cotta);

d.                     Bronze and milk glass urn-shaped light fixtures adjacent to the entryways with granite bases;

e.                     Large terracotta panel containing an Art Deco eagle above each door;

f.                     Monolithic [steel sash] windows on the main façade;

g.                     Front granite steps and area way with granite plinths and bases and ornamental iron railings;

h.                     Carved granite cornerstone.

2.                     Interior:

a.                     Raised-plaster ceiling;

b.                     Decorative terrazzo floor;

c.                     Marble wainscoting;

d.                     Raised bas relief gilt and painted plaster walls and ceiling;

e.                     Ornamental plaster panel with geometricized floral pattern at each end of the central frieze;

f.                     Carved Art Deco wood lintels over the service counter;

g.                     Original brass-framed bulletin boards.

3.                     External Spatial Characteristics:

a.                     Projected central area flanked by two recessed wings;

b.                     Simple geometry of the building’s massing.

In addition to retaining the historic portion of the building, the rehabilitation work will follow the recommended treatments identified in the Materials Conditions and Treatment Summary included within Attachment 8. These recommendations address the condition of individual historic materials and features, outline appropriate preservation and repair methods, and identify which elements require protection in place, careful removal and salvage, or in-kind replacement due to deterioration caused by the 2014 South Napa Earthquake. Compliance with these treatments will ensure that all work on the retained historic portions of the Franklin Station Post Office is carried out in a manner consistent with professional preservation standards and the Secretary of the Interior’s Standards for Rehabilitation.

D.                     Post Office Redevelopment - New Addition Compatibility

The design maintains the historic frontage along Second Street and places the new construction entirely behind the depth of the historic lobby, ensuring that the original façade remains the primary visual element of the structure. The new addition incorporates recessed glass curtain walls on either side of the retained historic façade, allowing the historic masonry and terracotta detailing to remain clearly expressed and reinforcing the prominence of the original building while providing transparency and visual separation between the historic and new construction.

Exterior materials for the addition include brick, metal panels in champagne bronze tones, cement plaster, board formed concrete, and recessed glazing, all selected to complement the historic building without replicating its Art Deco detailing. The upper stories step back from the retained façade to reduce the apparent height and maintain the prominence of the historic structure along Second Street.

E.                     Parking, Site Circulation, and Frontage Improvements

The current site design, as shown in Attachment 7, provides 34 parking spaces for the Project, as part of the mixed-use development, with the intention to be utilized by the For-Sale Hotel Units. Access to the parking facilities would be located along Second Street utilizing one dual-access driveway. When on-site parking spaces are not occupied by owners or guests renting the For-Sale Hotel Units, the spaces should be offered to staff or the public (by valet) to ensure the lot can always remain full.

Furthermore, the Project would provide parking on-site or at an off-site property by an irrevocable license or easement with a minimum term of 30 years, at the ratio of 1 parking space per For-Sale Hotel Unit and 0.8 parking spaces per designated Lock-off Unit. Prior to issuance of a building permit, the Applicant must demonstrate they have secured an offsite property via irrevocable license or easement with a minimum term of 30 years for all other parking required, consistent with the Downtown Napa Specific Plan. Additionally, as the City continues to evaluate the parking demand in Downtown Napa and explore possible acquisition of additional land or construction of a parking garage, the Applicant and City will continue to discuss options to lease City owned parking spaces for exclusive use by the Project.

Trash and loading rooms for the Post Office Redevelopment would be accessed and serviced along Franklin Street, with similar facilities located along Randolph Street for the Mixed-Use Development. Due to brand considerations and trash demand calculations, the Project is conditioned to meet City standards to ensure these facilities are adequately and safely accessed, and that they can provide for the minimum required waste streams.

Lastly, the Project would provide and replace all existing street frontage improvements with new curb, gutter, sidewalk, and street trees meeting the City’s Downtown sidewalk standards. This would also authorize the installation of certain corner curb extensions (commonly referred to as bulb outs) to provide for a safer pedestrian experience and increased visibility for vehicles entering the intersections.

IV.                     ANALYSIS

The following sections provide the staff’s analysis of the Project and its consistency with the General Plan and Zoning Ordinance.

A.                     General Plan

The Project site is designated Downtown Mixed Use under the Napa 2040 General Plan. According to the General Plan, this designation is intended to provide for retail uses; institutional, recreational, entertainment, arts and cultural uses; hotels and conference facilities; that strengthen Downtown’s role as the community’s center.

The goal, according to the Napa 2040 General Plan, is to provide a mix of land uses, including hotels, shops, restaurants, and entertainment. The Project would be consistent with several of the Napa 2040 General Plan Goals and/or Policies, including the following:

Land Use and Community Design Element

•                     Goal LUCD-4: Promote flexibility in parking and other development requirements, especially in areas targeted for higher-intensity, mixed-use, and pedestrian-oriented development, such as in Downtown and along corridors.

Staff Analysis: The Project uses the PD-37 Overlay to establish flexible parking and development standards appropriate for a high intensity, mixed use, pedestrian oriented Downtown location. Allowing parking to be provided on site or through long term licensed spaces, along with flexible building form standards, supports efficient land use while activating the surrounding streetscape.

•                     Goal LUCD-11: Encourage attractive, well-located commercial development to serve the needs of City residents, workers, and visitors.

Staff Analysis: The Project would provide a well-located mix of hotel, retail, restaurant, and café uses that serve residents, workers, and visitors in the heart of Downtown. By restoring the historic Franklin Station Post Office as a landmark hotel and activating the surrounding streets with neighborhood serving commercial uses, the Project contributes to an attractive and vibrant commercial district.

•                     Policy LUCD 11-2: Require new commercial development to be cohesively integrated with the community fabric through well-designed building/street interfaces, and pedestrian and street connections to surroundings, transit stops, and adjacent developments

Staff Analysis: The rehabilitation of the historic Post Office and the new mixed-use building are designed with active frontages, sidewalk-oriented entries, and pedestrian connections that integrate seamlessly with the surrounding Downtown street grid. The Project strengthens the community fabric by creating walkable building interfaces, improving access between Second and Randolph Streets, and reinforcing connections to adjacent developments.

•                     Goal LUCD-20: Continue to promote Downtown Napa as an active and vibrant heart of the community.

Staff Analysis: Restoring the historic Franklin Station Post Office as a landmark hotel and activating the surrounding streets with complementary commercial, restaurant, and entertainment uses that draw residents and visitors into Downtown throughout the day and evening. By concentrating new investment, pedestrian activity, and high quality design in the core area, the Project supports Downtown Napa’s role as an active and vibrant heart of the community.

•                     Policy LUCD 20-1: Continue to improve the vitality and character of Downtown through planning, design, business-community partnerships, and City programs and projects that encourage a variety of social, entertainment, cultural, retail, administrative, and government uses.

Staff Analysis: The Project would construct an active hotel and incorporates a mix of restaurant, café, entertainment, meeting, and retail uses that would contribute to Downtown’s social, cultural, and economic vitality. By activating the site throughout the day and evening and strengthening connections along Second and Randolph Streets, the Project enhances Downtown’s character and complements ongoing City and community efforts to maintain a vibrant urban core.

•                     Policy LUCD 20-2: Enhance Downtown urban design quality and sense of place through strategies including preserving and/or the adaptive reuse of historic buildings.

Staff Analysis: The Project would provide adaptive reuse of a historic resource, which is recognized as a Local Landmark, is on the National Register for Historic Places, and is recognized for its architectural and cultural significance unique to the City of Napa. The Project would reuse, repair, and prominently feature the historic Franklin Station Post Office, thereby enhancing Downtown’s urban design quality and reinforcing its distinctive sense of place.

•                     Goal LUCD-21: Promote a vital downtown that is healthy, sustainable, and contributes to the City’s economic vitality, for the enjoyment of residents and visitors.

Staff Analysis: The Project would construct an Upper Upscale hotel with visitor serving amenities and ground-floor commercial uses that generate substantial economic activity, enhance Downtown’s vitality, and create a healthy, sustainable destination for residents and visitors.

Transportation Element

•                     Policy TE 7-4: Develop parking standards for adaptive reuse of historic buildings on the City’s Historic Resources Inventory, as well as National and State registers, that maintain the historic integrity of buildings.

Staff Analysis: The PD-37 Overlay establishes tailored parking standards that accommodate the adaptive reuse of the historic Franklin Station Post Office without requiring alterations that would compromise its character defining features or historic integrity.

Historic and Cultural Resources Element

•                     Goal HCR-1: Preserve and enhance Napa’s historic resources. Encourage rehabilitation and adaptive reuse, as well as sensitive, context-compatible infill design.

Staff Analysis: The Project would preserve and rehabilitate the historic Franklin Station Post Office in accordance with the Preservation Covenant and Downtown Historic Design Guidelines, while introducing context compatible infill development that respects and reinforces the architectural character of Downtown Napa.

•                     Policy HCR 1-3: Encourage seismic strengthening to protect the City’s valuable historic properties from future earthquakes, wildfire, and other events caused by climate change. This includes the development of incentives to encourage property owners to retrofit their buildings.

Staff Analysis: The property experienced significant damage in the 2014 South Napa Earthquake. By incorporating full seismic retrofitting and structural upgrades as part of the Post Office’s rehabilitation, the Project demonstrates a proactive approach to protecting one of the City’s most significant historic resources from future earthquakes and climate related risks, directly aligning with this policy’s intent.

•                     Policy HCR 1-7: Encourage and assist property owners in bringing damaged or blighted historic properties into use and/or new use.

Staff Analysis: As described above, the property experienced significant damage in the 2014 South Napa Earthquake. The Development Agreement would help to secure the rehabilitation and active reuse of the vacant and damaged Franklin Station Post Office, returning a blighted historic resource to productive use through a comprehensive preservation and investment program.

•                     Policy HCR 1-8: Update parking requirements to encourage adaptive reuse of historic properties into viable contemporary uses.

Staff Analysis: As previously described, the PD 37 Overlay would establish updated parking requirements that allow parking to be provided on site or through long term irrevocable licensed spaces, creating the flexibility needed to support the adaptive reuse of the historic Franklin Station Post Office without altering or compromising its significant features.

•                     Policy HCR 9-2: Encourage the maintenance and restoration of privately owned Downtown properties listed in the City of Napa’s HRI, identified as City landmarks, located within a historic district, or listed on the California Register of Historical Resources or the National Register of Historic Places.

Staff Analysis: The Project would support this policy by using the Development Agreement to facilitate the full rehabilitation and reuse of the long vacant Franklin Station Post Office, enabling a building that holds deep personal meaning for many Napa residents to be restored, preserved, and brought back into active community life instead of continuing to deteriorate.

•                     Goal HCR-10: Work with the local tourism industry, businesses, and property owners to support and foster Downtown historic resources as a destination, demonstrating that historic resources contribute to the uniqueness of the visitor experience.

Staff Analysis: The Project would restore the historic Franklin Station Post Office as a signature downtown destination, demonstrating how reinvestment in historic resources can strengthen and enhance Napa’s visitor experience and highlight the unique character these landmarks bring to the community.

Economic Development Element

•                     Goal ED-6: Ensure that the local economy reinforces and builds on the City’s unique “sense of place,” including its cultural diversity and creative sectors, in a manner that serves both residents and visitors in a mutually-supporting fashion.

Staff Analysis: Restoring the historic Franklin Station Post Office as a distinctive downtown destination and introducing complementary hotel, dining, and cultural uses would help to reinforce Napa’s unique sense of place in a way that benefits both residents and visitors.

•                     Policy ED 6-2: Pursue tourism and placemaking initiatives that build upon the City’s rich array of offerings-such as historic resources, cultural diversity, and the Napa River-to cultivate places and “cultural districts” that engage/serve both tourists and locals (to be coordinated with Goal PHE-8).

Staff Analysis: The Project would introduce a mix of hotel, dining, and public facing uses that strengthen Downtown as a cultural and visitor serving destination, while incorporating the historic Post Office building in a way that complements broader placemaking efforts for both residents and tourists.

•                     Goal ED-8: Support Downtown Napa as a multi-cultural, event, and food destination, anchored by hospitality uses, and with a supportive mix of civic, office, retail, entertainment, and residential uses to promote vibrancy, authenticity, and cultural diversity.

Staff Analysis: By introducing a hotel that would be anchored by restaurant, café, meeting, and entertainment, the uses would contribute to Downtown Napa’s role as a vibrant food, event, and cultural destination, complemented by retail and mixed use elements that serve both residents and visitors.

•                     Policy ED 8-6: Support the preservation and rehabilitation of existing historic structures for adaptive reuse purposes.

Staff Analysis: The Project would restore and adaptively reuse the historic Franklin Station Post Office in a manner that preserves its significant features while integrating it into a viable contemporary hotel and mixed use development.

B.                     Zoning

The Project Site is within the Downtown Mixed Use (DMU) Zoning District. The DMU district allows for tourist-oriented uses such as hotels and their related amenities, recreational facilities, community and visitor-serving retail, commercial, restaurants, and similar compatible uses. The Project proposes a mix of uses consistent with the zoning by providing a hotel and non-residential visitor and local serving uses such as restaurants, retail, and entertainment.

The Project’s mix of hotel, retail, restaurant, and entertainment uses is consistent with the Downtown Mixed-Use district, which is intended to support a broad range of commercial and visitor serving activities that reinforce Downtown’s role as the community’s center. By activating the site with these complementary uses and restoring the historic Post Office as a hotel, the Project aligns with the district’s purpose of creating a vibrant, mixed-use environment that serves both residents and visitors.

As described above, the DMU District was also determined to be consistent with the General Plan under the Interim Zoning Ordinance (Ordinance No. O2025-007).

C.                     Downtown Napa Specific Plan (DNSP)

The Project site is located within the Downtown Specific Plan boundary. The goal of the Specific Plan is to revitalize Downtown Napa into a vibrant place where residents and visitors alike come together to work, live, play and actively engage in the community. Visitors and residents should be able to pursue a range of activities, such as shopping at local boutiques, eating in restaurants that open onto the sidewalk or public gathering places, attending markets and festivals, and listening to live music and engaging in other entertainment and activities. Downtown hotels are among the broad range of uses that contribute to the vision of Downtown Napa and establish it as a 24-hour destination for locals and visitors alike.

The Project is located within both the Parking Exempt (PE) Overlay District and the Downtown II Building Form Zone. Although the PE Overlay would typically exempt on-site parking and the Downtown II standards would otherwise apply, the PD-37 Overlay establishes the parking, building form, and related development standards for the Project, and the PD-37 provisions, as summarized in Section IV.D., would govern in place of the underlying overlay requirements.

D.                     Planned Development Overlay (PD-37) District

The purpose of a Planned Development Overlay District is to "encourage high quality, innovative and creative development design, and possibilities for varied or mixed uses consistent with the General Plan, by allowing flexibility in underlying zoning standards” and to “provide a mechanism for preservation of open space, natural or historic features while continuing to permit the efficient use of land.”

Under NMC 17.42.020, Planned Development Overlay Districts may be combined with any principal zoning district when doing so is consistent with the purpose and provisions of the PD Overlay district. Here the underlying DMU zoning and DMU designation will be combined with the PD designation, consistent with the specific purposes of a planned development overlay district.  

The Planned Development Overlay (PD-37) was originally adopted by the City Council through Ordinance No. O2018-014 on December 4, 2018, to facilitate a previous entitlement for redevelopment of the earthquake damaged Franklin Station Post Office building and adjacent parcels including the adjacent Zeller’s Ace Hardware parcel (APN: 003-208-002), and the City-owned parking lot parcel at Randolph and Second Street.

For the Franklin Station II Project (PL25-0068), the PD-37 Overlay is amended to reflect a revised project boundary and development program. The updated PD-37 removes the Ace Hardware parcel from the overlay and expands the boundary to include the Wine Valley Box Unit parcel and three condominium parcels within the Young Building. These adjustments reflect the current Project configuration and ensure that the regulatory framework aligns with the properties proposed for redevelopment.

Key Points

The PD Overlay District provides a mechanism to adopt variations to regulations that differ from the underlying zoning standards, where appropriate. For the Franklin Station II Project, the amended PD-37 Overlay establishes a project specific Floor Area Ratio and tailored land use and development standards that supersede those of the DMU district and the Downtown Napa Specific Plan. The Overlay also allows shifts between permitted and conditional uses and provides alternative regulations where needed to implement the Project. Where the PD-37 Overlay establishes such standards, they prevail; where it does not, the underlying regulations remain in effect. The primary components of the amended PD-37 Overlay are summarized below:

1.                     Project Purpose and Scope. The PD-37 Overlay establishes regulations to implement the Franklin Station II Project, allowing rehabilitation of the historic Post Office as a five-story upper-upscale hotel with up to 120 rooms including a rooftop café and bar, restaurant, and event and meeting spaces, the construction of a five story Mixed Use building with up to 37 For Sale Hotel Units and ground floor retail, and integration of three existing condominium units in the Young Building as For Sale Hotel Units for a total of 40 units.

2.                     Application of Underlying Zoning. The PD-37 Overlay supersedes Downtown Mixed Use and Downtown Specific Plan standards where alternative regulations are provided and otherwise defers to underlying zoning requirements.

3.                     Definitions of For-Sale Hotel Units and Lock Offs. The PD-37 Overlay establishes definitions for For-Sale Hotel Units and Lock-Offs as described below:

•                     For-Sale Hotel Units. Individually owned units that are developed, conveyed, and operated as part of a hotel and that rely upon the hotel’s management, services, staffing, and amenities for their use and operation. Owners may occupy these units, and the units may be rented for transient occupancy for periods of thirty (30) consecutive calendar days or less, counting portions of calendar days as full days, through the hotel operator or the same management entity that operates the hotel.  For purposes of land use, zoning, and regulatory classification, For-Sale Hotel Units shall be deemed part of a Hotel use and shall not constitute dwelling units, regardless of the separate ownership of such units.

•                     Lock Off. A hotel room, hotel unit, or For-Sale Hotel Unit that is designed and constructed with a lockable internal door or connection that permits a portion of the hotel room or For-Sale Hotel Unit to be separated and occupied independently as a separate hotel room, with independent ingress and egress. A Lock-Off shall not constitute a separate dwelling unit, lot, condominium unit, or other separately conveyable real property interest.

4.                     Hotel Use and Room Allocation. The PD-37 Overlay establishes the allocation of traditional hotel rooms and For-Sale Hotel Units across the two Project buildings and allows the use of Lock Off configurations, while also specifying that all For-Sale Hotel Units and Lock-Offs operate solely for transient occupancy under unified hotel management and are subject to project specific rental term limitations and operational requirements.

5.                     Entertainment Uses. Joint or incidental entertainment uses associated with the hotel are permitted between 10:00 a.m. and 12:00 a.m., and outdoor entertainment may be processed as an Administrative Permit consistent with Downtown Napa Specific Plan standards, which would otherwise apply to such uses.

6.                     Development Standards. The following Building Form Standards apply to the Project:

Building Form Standards	PD-37
Floor Area Ratio (FAR)	Up to 4.0 FAR; subterranean areas, basements, or ground level parking shall be excluded from FAR calculation.
Building Height (ft)	Max 60’; height limits may be up to 75’ subject to the standards set forth below in subsection 7(ii) below Rooftop Features
Front Setback	Max 15’; setback may be exceeded for Post Office Redevelopment to ensure new front façade sits behind the historically significant façade of the Post Office.
Side Setback	No requirement
Rear Setback	No requirement
Stepbacks	Subject to Additional PD-37 Development Regulations set forth below in subsection 7(ii) below Rooftop Features
Minimum Lot Area (sq ft.)	No requirement
Lot Width (feet) at front set-back line	No requirement
Lot Frontage (feet) at front property line	No requirement

7.                     Rooftop Features. In addition to those height limit exclusions listed in Section 17.52.220, with the approval of a Design Review Permit, the height limits specified in Title 17 may be up to 75 feet for (i) rooftop structures, including For-Sale Hotel Units, where the structure is setback to minimize visibility from the street and (ii) rooftop patios with food and bar service, including restrooms and food and bar service structures, provided that such features are accessory to the main use of the site and are setback to minimize visibility from the street.

8.                     Design Guidelines. The Project must comply with the Design Guidelines included for Franklin Station Hotel, which govern historic preservation, building form, and architectural character for both buildings.

9.                     Parking Requirements and Fees. The PD-37 Overlay establishes project specific parking obligations that may be met through on-site spaces or long term irrevocable licensed off-site parking, allows valet operations to support efficient use of available spaces, and requires payment of Parking Impact Fees at building permit issuance with opportunities for fee reduction when long term licensed parking is secured.

10.                     Project Phasing. The PD-37 Overlay allows the Project to be constructed in phases and identifies the Post Office Redevelopment as Phase 1 and the Mixed-Use Development as Phase 2, and if phasing occurs, a Certificate of Occupancy for Phase 2 may only be issued after Phase 1 is completed to ensure that rehabilitation and preservation of the historic Post Office building remain the Project’s primary implementation priority.

11.                     Administrative Authority. The PD-37 Overlay authorizes the Community Resources and Development Director to approve discretionary actions associated with the Project, including use permits, design review, certificates of appropriateness, minor amendments to Tentative Parcel Map (PL25-0068), and uniform or creative sign programs, provided such approvals are consistent with the Development Agreement, applicable design guidelines, and remain subject to established appeal procedures.

12.                     Sunset Provisions. The Overlay remains in effect only if specified building permit and Certificate of Occupancy milestones are met for each phase and remains valid indefinitely thereafter unless amended by City Council.

E.                     Development Agreement

In order to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic costs and risks of development, the Legislature of the State of California enacted section 65864 et seq. of the Government Code (“Development Agreement Statute”) which authorizes a city and a developer having a legal or equitable interest in real property to enter into a binding, long-term development agreement establishing certain development rights in the property.

Prior Development Agreements

Over time, the City Council has considered and authorized a number of Development Agreements intended to facilitate complex redevelopment efforts, provide certainty for long term investment, and advance community goals that may not be achievable through standard zoning alone. In reviewing these agreements, the Council has typically evaluated whether the proposed terms support high quality development, deliver clear public benefits, and provide a predictable framework for project implementation while ensuring accountability over the life of the project.

This intent informs the following summary of past Development Agreements approved by the City Council:

1.                     Vista Tulocay Apartments (PL13-0139) - On September 6, 2016, the City Council adopted Ordinance No. O2016-013, authorizing the City Manager to execute a Development Agreement in conjunction with the Vista Tulocay Apartments, which consisted of entitlements for construction of 282 units and vesting the rights under the prior General Plan designation and Zoning Ordinance regulations allowing the Applicant to construct up to 500 residential units on the project site. 218 of the residential units would be subject to a subsequent Design Review Permit.

a.                     The primary public benefits consisted of providing project proportionate funds for the construction of Gasser Drive Bridge and extension and an alternative equivalent to the affordable housing unit obligation with a payment of $2,000,000.

2.                     Franklin Station I (PL17-0090) - On December 4, 2018, the City Council adopted Ordinance No. O2018-015, authorizing the City Manager to execute a Development Agreement in conjunction with the original entitlements to redevelop and preserve the Franklin Station Post Office with an Upper Upscale 163 room hotel, whereby up to 25% of the rooms may be utilized as a condo-hotel and 25% could be accessory whole-ownership units (now referred to as For-Sale Hotel Units).

a.                     The primary public benefits included the rehabilitation of the historic Franklin Station Post Office, construction of a parking structure for the Project that would have provided a minimum of 65 public parking spaces, transient occupancy tax revenue, and a sales tax point of sale designation.

3.                     Napa Pipe Second Amendment (PL18-0198) - On February 2, 2020, the City Council adopted Ordinance No. O2020-003, authorizing the City Manager to execute a Second Amendment to the Napa Pipe Development Agreement in conjunction with the Napa Pipe Master Plan.

a.                     The primary public benefits included open space, trail connections, historic artifact preservation, the development of housing, including affordable housing to meet the City’s Regional Housing Need Assessment (RHNA) goals, community facilities, Kaiser Road landscape median improvements, and sales tax revenue.

4.                     First Street Phase II Redevelopment (PL20-0135) - On July 15, 2025, the City Council adopted Ordinance No. O2025-008, authorizing the City Manager to execute a Development Agreement in conjunction with the First Street Phase II project authorizing a private/public partnership and the entitlements for the construction of up to 161 hotel rooms with ancillary retail and amenities, up to 78 residential condominium units (now referred to as For-Sale Hotel Units), approximately  30,000 square feet of non-residential uses, and the redevelopment of the Brown Street corridor and a new pedestrian paseo.

a.                     The primary benefits included an affordable housing alternative equivalent contribution beyond the minimum required by the Napa Municipal Code, transient occupancy tax, an enhanced public drop-off zone, a mid-block crossing, and Brown Street Corridor improvements.

Key Points of Draft Development Agreement

Some of the key components of the proposed Development Agreement are as follows:

1.                     Rehabilitation of the Franklin Station Post Office - The Project would rehabilitate and preserve the earthquake damaged Post Office Building. The Developer shall also comply with all State of California Historic Preservation Office (“SHPO”) requirements, including the preservation requirements set forth in the preservation covenant and all requirements and standards established by the United States Secretary of the Interior in connection with the Post Office Redevelopment, including the interim management and maintenance of the Post Office Parcel and improvements.

2.                     Transient Occupancy Tax and Other Tax Revenues - During the initial five years of operation, the project is expected to generate over $18 million in City-allocated tax revenues.

3.                     Affordable Housing Fund Contribution - The Project will pay the hotel/motel rate $6 per square foot for the entirety of the project. Additionally, the project will contribute an additional $1 per square foot upon close of each For-Sale Hotel Unit to the Affordable Housing Fund. Funds in the Affordable Housing Impact Fund invest in deed restricted affordable housing units in the City of Napa. The Developer may also propose to the City Council an alternative equivalent for the development of deed restricted affordable housing units in lieu of paying these fees to the Affordable Housing Impact Fund.

4.                     Sales Tax Point of Sale Designation - The Developer will make reasonable efforts to ensure that major suppliers and contractors identify the Project site as the place of use for materials to allow the local portion of sales and use tax to be allocated to the City, so long as doing so does not add significant construction costs. The Developer and its contractors will also provide information to the City about qualifying subcontractors to help maximize the City’s receipt of applicable tax revenues.

F.                     Hotel Policies

The following is a discussion of how the project complies with the City’s Hotel Policies adopted in 2008.

1.                     A priority should be placed on the development of full-service and resort hotels downtown because of the ancillary and complementary benefits to other downtown uses and activities. This does not preclude the full range of additional lodging products in appropriate locations throughout the city.

The Development Agreement requires the Project to be “Upper Upscale,” which would result in a full service resort hotel. The hotel will have up to 120 hotel rooms, and must be an STR-rated Upper-Upscale facility with amenities such as a rooftop café and bar, restaurant, and event and meeting spaces.

The hotel will have positive economic benefits to the City of Napa (as described under policy 8) from its contribution to increased economic activity in Downtown and around Napa. With accessory retail and related amenities, the Project will create a truly unique hotel experience, attracting visitors and residents into the heart of downtown. The Project incorporates the historic significant aspect of the Franklin Station Post Office while creating a place-defining urban hotel in the core of downtown Napa. The hotel restaurant, lobby and public-facing areas create a meeting place that can be used by both locals and travelers. The hotel will also support the position that Napa is a luxury travel destination.

The Project will complement the many restaurants, shopping and cultural activities that guests experience in the downtown area.

2.                     Limited service hotels with meeting room space and close proximity to surrounding support services would be considered desirable. Bed and breakfasts and small inns as in-fill projects would be encouraged as indicated in the General Plan.

The hotel will be an upper upscale or higher full-service facility with extensive amenities and available services.  The hotel will also feature event and meeting space to accommodate corporate and leisure groups, a restaurant and bar concept and a rooftop patio, all available to both locals and guests of the hotel. Therefore, the desirable amenities would be exceeded.

3.                     New hotel projects should provide a minimum of 15-100 square feet of contiguous meeting room space per guest room depending on the type of hotel and location to facilitate and expand the group meeting demand.

The hotel development area includes approximately 10,430 square feet of meeting and event space. The hotel includes up to 120 hotel rooms, equating to approximately 87 square feet per room, meeting the policy guideline.

4.                     Hotel applicants/developers should demonstrate how they will pursue mass transport activities that reduce traffic congestion such as shuttle services, linkages with other hotels, use of the trolley or like public transit options, for guest and employees, particularly for group-oriented hotels.

With the mixed-use, pedestrian-oriented district envisioned in the DNSP, the hotel is ideally located for foot or bicycle traffic for its employees that live within the proximity of downtown. This location also serves guests who will enjoy the downtown Napa experience. There are several Vine Transit bus routes that currently operate within the vicinity of the hotel, with numerous routes operating along a loop using First Street and Third Street between Jefferson Street to the west and the Soscol Gateway Transit Center to the east.

While on the Project site, guests will have little need for their vehicles given the multiple entertainment, shopping and dining options available within downtown Napa. If vehicle transport is required, the hotel will offer a valet service and a variety of transportation options to off-site locations and activities and actively encourage guests to consider alternative transportation options.

5.                     Hotel applicants/developers should demonstrate how they will link with the Napa Valley College Hospitality Institute and Hospitality and Tourism Management Program, and/or provide in-house hospitality and employment training programs that will provide a career ladder and stable employment sector.

While the chosen hotel operator is not known at this time, Upper Upscale hotel operators typically include a focus on retention, upward mobility, and ongoing training programs. These practices are essential for a successful hotel operation and work force. The hotel’s training and employment will therefore be consistent with the practices of Upper Upscale hotels.

6.                     Hotel projects should demonstrate how they will meet sustainability (green practices as determined by LEED standards) or future green ordinances or initiatives that may be adopted by the City.

The new construction will implement the City’s High Performance Building Regulations and CalGreen standards, which have been updated since the adoption of the City’s Hotel Policies. The sustainability components of the Project include the following key elements: use of efficient lighting in all buildings, installation of cool pavements and shade trees, compliance with the City’s Water Efficient Landscape Ordinance, use of water-efficient irrigation systems, installation of water-efficient plumbing fixtures and appliances, use of permeable surfaces and green roof areas, and installation of electric vehicle charging stations in parking areas.

7.                     Hotel applications should demonstrate as part of the application process a commitment to advancing cultural arts by providing a public art component visible and accessible to the public, particularly for hotels located downtown. Hotel projects in the pipeline may be subject to a future “art in public places” ordinance, pending adoption by City Council in 2008.

The Project will rehabilitate the historic Post Office with the Secretary of the Interior’s Standards for the Treatment of Historic Properties, which satisfies the Project’s public art requirement. The redevelopment of the historic Post Office building will retain and rehabilitate the building’s historic character-defining features. Because the hotel will also be open to the public, the Project will allow the public to visit the historic building in addition to hotel guests.

8.                     Hotel applicants should provide a report or study that provides a comprehensive overview regarding hotel employment. The report or study should be prepared by an independent consultant and include, at a minimum, the following information: the number of employees the hotel would employ, full-time vs. part-time, positions titles, wage rates by position, and types of benefits; the anticipated breakdown of employees residing inside or outside the County of Napa, and the rationale for breakdown; and any programs or policies the applicant or operator will implement in the area of employee housing and congestion management. The City Council has requested this employment information to measure any economic, housing and transportation impacts the hotel would create.

Economic Forensics and Analytics, Inc. (“EFA”), an independent research and consulting firm located in Sonoma County, California since 2000, through the applicant, provided the “Franklin Station Hotel Analysis” economic report for the Project, which describes the significant revenue to the City. The EFA report estimated total state and local tax revenues from the Project based on the assumption that the project would include 94 hotel rooms and 28 for-sale hotel rooms, of which 55% would be put into the rental pool. During the approximately two-year construction period, the Project is estimated to generate $942,158 in sales tax revenues for the City. During the initial five years of operations, the Project is estimated to generate approximately $18,632,326 in additional City-allocated tax revenues, consisting of approximately $15,503,220 in transient occupancy tax (“TOT”) revenue (at 12%), $1,242,646 in sales tax revenues, and $1,959,960 in property tax revenue. TOT revenue alone is estimated to average $3,100,644 annually during the first five years of Project operations, increasing from approximately $2,497,695 in the first year of operation to $3,813,590 in the fifth year.

In general, Upper Upscale hotel facilities of the size of the hotel would be at the high end of wage and salary levels for hotels of this size. An Upper Upscale facility is likely to have the following employment categories:

•                     Executive/Supervisory

•                     Sales & Marketing

•                     Engineering

•                     Front Office

•                     Housekeeping

•                     Laundry

•                     Valet Parking/Bell Staff

•                     Food & Beverage (including restaurant, bar, room service, rooftop, event and meeting servicing)

Specific wage and salary information for positions will not be known until the time the project is under construction. Generally, an Upper Upscale facility would expect salaries and wages to fall with the following ranges (before accounting for benefits).

•                     Executive/Supervisory  -  Salaries  are  expected  to  range from $50,000 per year for assistant supervisors to over $120,000 per year for senior executive staff.

•                     Sales & Marketing - Salaries are expected to range from $50,000 per year to over $100,000 per year for senior level salaries.

•                     Engineering - Salaries for engineers are expected to range from $17/hr. to $28/hr.

•                     Front Office - Salaries are expected to range from $17/hr. to $23/hr.

•                     Housekeeping -Wages are expected to range from $17/hr. to $22/hr.

•                     Laundry - Wages are expected to range from $17/hr. to $20/hr.

As to congestion management, as described in the Addendum, the Project will generate substantially fewer trips than have historically been associated with the use of the Site. In addition, a significant amount of employee by vehicle travel can avoid the highly-congested hours of the day. Transit options (Napa Valley Transportation Authority Vine Transit) are also available nearby with pedestrian access. The Project is located approximately 0.1 miles west of the Third Street at Brown bus stop, which is accessible via sidewalks along Randolph Street, Coombs Street, and Third Street.

V.                     REQUIRED FINDINGS

The following section identifies the required findings City Council must make to support the approval of the Development Agreement, Zoning Amendment, Tentative Parcel Map, Design Review Permit, and Certificate of Appropriateness. The detailed Staff analysis for each finding can be found in the respective ordinance(s) and/or resolution(s) included as Attachments 2 through 5 to this report.

Development Agreement

Pursuant to 65864 et seq. of the Government Code and NMC Section 17.52.150, the Project requests approval of a Development Agreement.

The Development Agreement will promote orderly growth and quality development in accordance with the goals and policies set forth in the City of Napa 2040 General Plan and Downtown Napa Specific Plan; is compatible with the uses authorized in, and the regulations prescribed for, the district in which the Property is located; will promote the public convenience, general welfare, and good land use practice; will not be detrimental to the health, safety and general welfare; will not adversely affect the orderly development of property or the preservation of property value; and will promote and encourage the development of the Project by providing a greater degree of requisite certainty.

Zoning Amendment

Pursuant to NMC Section 17.42.090, amendments to an approved Planned Development Overlay District require a Zoning Amendment processed in accordance with NMC Chapter 17.66. As such, the required findings shall be made, which are analyzed in detail in Attachment 2, Draft Ordinance (Planned Development Overlay), pursuant to NMC Section 17.66.080

•                     The proposed amendment is consistent in principle with the General Plan.

•                     The public health, safety and general welfare are served by the adoption of the proposed amendment.

•                     If a rezoning to district with a larger minimum lot size is proposed, effectively reducing the planned residential density, the city shall also find that the remaining sites in the housing element are adequate to accommodate the jurisdiction's share of the regional housing need pursuant to Section 65584; or if not, that it has identified sufficient additional, adequate and available sites with an equal or greater residential density in the jurisdiction so that there is no net loss of residential unit capacity.

In addition to the required findings for a Zoning Amendment, the Project requires the following findings for approval of a Planned Development Overlay, which are analyzed in detail in Attachment 2, Draft Ordinance (Planned Development Overlay), pursuant to NMC Section 17.42.050.

•                     The development is superior overall to a similar project designed to meet the standards of this title and of the underlying district in which it is located; and

•                     Any variations from the standards of this title and the district in which the development is located are justified by the high quality design of the proposed development when taken together as a whole; and

•                     Each phase (if any) of the development, as well as the development as a whole, can exist as an independent unit capable of creating an environment of sustained desirability and stability; and

•                     The proposed development is planned in coordination and compatible with the existing and planned uses in the surrounding area; and

•                     The proposed structure(s) and/or use(s) are consistent with the General Plan and any applicable specific plan or other adopted plan; and

•                     Any conditions stipulated as necessary in the public interest have been imposed; and

•                     The proposed structure(s) and/or use(s) will not be detrimental to the public health, safety and welfare of the community.

Design Review Permit

Pursuant to NMC Section 17.62.050.C, the Project requires approval of a Design Review Permit to authorize construction of the hotel. To approve the Project, the following findings pursuant to NMC Sections 17.42.060 and 17.62.080 shall be made.

•                     The project design is in accord with the General Plan and any applicable specific plan design policies.

•                     The project design is consistent with applicable design review guidelines adopted by the City Council.

•                     The design review permit is in accord with provisions of this title and will not be detrimental or injurious to property or improvements in the vicinity of the development site, or to the public health, safety or general welfare.

•                     In addition to standard findings required for approving a design review permit, the decision-making body must make the finding that the proposed development is consistent with the approved :PD.

Tentative Parcel Map

Pursuant to NMC Section 16.12.010.A, approval of a Tentative Parcel Map is required for the Project. To approve the Project, the following findings pursuant to NMC Section 16.20.070.A shall be made.

•                     That the proposed subdivision, together with the provisions for its design and improvement, is consistent with the General Plan and any applicable specific plan.

•                     Except for condominium conversion projects where no new structures are added, that the design of the proposed subdivision provides, to the extent feasible, for future passive or natural heating or cooling opportunities in the subdivision, as described in the State Subdivision Map Act and any guidelines promulgated by the Council.

In addition to the above findings to approve a Tentative Parcel Map, a Tentative Parcel Map shall be denied if any of the following findings of Government Code Section 66474 or NMC Section 16.20.070.D are made.

•                     The proposed map is not consistent with applicable general and specific plans as specified in Section 65451.

•                     The design or improvement of the proposed subdivision is not consistent with applicable general and specific plans.

•                     The site is not physically suitable for the type of development.

•                     The site is not physically suitable for the proposed density of development.

•                     The design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

•                     The design of the subdivision or type of improvements is likely to cause serious public health problems.

•                     The design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision.

•                     All the requirements of the California Environmental Quality Act and the rules and procedures adopted by the Council pursuant thereto have not been met.

•                     The proposed map fails to meet or perform any of the requirements or conditions of this title or the State Subdivision Map Act, unless the Council finds that such failure is a result of a technical and inadvertent error which does not materially affect the validity of the map.

•                     The applicant has failed to submit complete or adequate information.

Certificate of Appropriateness

Pursuant to NMC Section 15.52.070.D.2, major alterations to a Local Landmark require the approval of a Certificate of Appropriateness processed in accordance with NMC Section 15.52.070.E.3. As such, the required findings shall be made, which are analyzed in detail in Attachment 5, Draft Resolution (Certificate of Appropriateness), pursuant to NMC Section 15.52.070.F.3.

•                     The project preserves, enhances or restores the exterior architectural features of the local landmark; and

•                     The project will not result in a substantial adverse change to the integrity of the local landmark or its major exterior character-defining features; and

•                     The project will not adversely affect the special character or special historic, architectural, or aesthetic interest or value of the local landmark; and

•                     The project is consistent with the applicable Secretary of the Interior's Standards; and

•                     The project is consistent with applicable historic design guidelines; and

•                     The project will not negatively impact the integrity of a cultural landscape through alteration of spatial organization, landscape features, circulation patterns, or small scale features that are character defining features of the resource.

VI.                     PLANNING COMMISSION

The Planning Commission held a Special Meeting on June 30, 2026, to consider a recommendation to the City Council regarding multiple entitlements (PL25-0068), including a Development Agreement, a Zoning Amendment amending the Planned Development Overlay (PD-37) District, a Tentative Parcel Map, and a Design Review Permit, and related approvals, to provide for the redevelopment of an approximately 1.44-acre property, including two new buildings and the preservation of the Franklin Station Post Office building.

The Planning Commission generally had discussion points regarding the south-facing façade of the Mixed-Use Development building, the parking requirements, the overall design and materials for the new addition of the Post Office Redevelopment, the Development Agreement, the proposed public improvements, and the affordable housing contribution.

During public comment, two (2) members of the public spoke voicing support of the Project and two (2) members sharing concerns. The supporting members of the public spoke about general support with the preservation of the Franklin Station Post Office with representation from Napa County Landmarks and the Napa County Chamber of Commerce. The two members, sharing their concerns, voiced frustrations with the loss of the parking lot on the southeast corner of Second Street and Randolph Street and concerns with the service facilities for the Post Office Redevelopment proposed to be located near Uptown Theatre, which may conflict with artist bus staging.

After the closure of public comment and further deliberation by the Planning Commission, the Planning Commission made multiple motions recommending the City Council consider the following:

1.                     Zoning be updated to include that the left and right side full glass floor to ceiling panels that enhance the post office building be considered a Major Amendment if changed (5-0).

2.                     Any substantial change (as determined in the discretion of the CRD Director) to the design style and color of materials presented as Attachment 6 of the PC Report on June 30, 2026, return to the Planning Commission for review and approval (5-0).

3.                     City Council consider changes to the Mixed-Used Building South Wall with some sort of large formal aesthetic improvement (4-1; no is Massaro).

4.                     Language be struck from Zoning and DA documents regarding paying the in-lieu fee for the transient uses and the in-lieu fee can be paid for non-transient uses in hotel and mixed-use building (4-1, no is Ebach).

At the conclusion of the hearing, the Planning Commission recommended approval of the project by a vote of 5-0.

VII.                     CULTURAL HERITAGE COMMISSION

The Cultural Heritage Commission held a Regular Meeting on July 9, 2026, to consider a recommendation to the City Council regarding a Certificate of Appropriateness, pursuant to NMC Section 15.52.070, authorizing major alterations and the preservation of the Franklin Station Post Office building.

The Cultural Heritage Commission generally had discussion points regarding the materials for the new addition, preservation of the mailboxes, lighting, and clerestory windows within the interior of the lobby

During public comment, two (2) members of the public spoke voicing support of the Project. The members of the public spoke about general support of the preservation of the Franklin Station Post Office on behalf of Napa County Landmarks, with clarity added regarding the historical records.

After the closure of public comment and further deliberation by the Cultural Heritage Commission, the Cultural Heritage Commission made two motions recommending the City Council consider the following:

1.                     The Commission recommends that the City Council consider expanding preservation of the existing signage and the lobby including preservation of the mailboxes, the clerestory windows above the counter, and such other aspects of the lobby that the Council may consider, and if the Council agrees, the Commission would like input on the modification to the plans (5-0).

2.                     The Commission recommends that the City Council consider requiring the applicant work with a qualified third party to be approved by the CRDD Director to provide more detail, document all history, including nomination forms, and expanding the inventory and treatment as well as an archival record (5-0).

At the conclusion of the hearing, the Cultural Heritage Commission recommended approval of the project by a vote of 5-0.

PUBLIC COMMENTS:

As of this writing, one (1) written public comment letter was received by email for the Council meeting. There were five (5) written public comments received prior to the Planning Commission meeting, with one (1) received after the hearing. There were two (2) written public comments received prior to the Cultural Heritage Commission meeting from Napa County Landmarks.

FINANCIAL IMPACTS:

No direct financial impacts to the General Fund have been identified with this application.

CEQA:

Staff recommends that the City Council finds that the Project would not have environmental effects that were not already examined in the Downtown Napa Specific Plan Environmental Impact Report (the “DNSP EIR”), that the Project is within the scope of the development program analyzed in the DNSP EIR, and that no subsequent EIR is required for the Project, as documented in the Section 15168 Analysis and Addendum, as provided in Attachment 11, CEQA Addendum, and the Project Mitigation and Monitoring Report Program (the “MMRP”); and alternatively, that the Project is exempt from CEQA under CEQA Guidelines Section 15332 and none of the exceptions in CEQA Guidelines Section 15300.2 have application.

DOCUMENTS ATTACHED:

ATCH 1 - Resolution (CEQA)

EX A Project MMRP

ATCH 2 - Ordinance (Planned Development Overlay)

EX A Planned Development Overlay (PD-37) Amendments & Design Guidelines

EX B Planned Development Overlay (PD-37) District Map

ATCH 3 - Ordinance (Development Agreement)

ATCH 4 - Resolution (DR)(TPM)

EX A Conditions of Approval

EX B Correspondence

ATCH 5 -Resolution (COA)

EX A Conditions of Approval

ATCH 6 - Draft Development Agreement

ATCH 7 - Project Plans

ATCH 8 - Certificate of Appropriateness Plans

ATCH 9 - Tentative Condominium Map

ATCH 10 - Preservation Covenant

ATCH 11 - CEQA Addendum

ATCH 12 - Planning Commission Staff Report (6-30-2026)

ATCH 13 - Cultural Heritage Commission Staff Report (7-9-2026)

NOTIFICATION:

Notice was provided on July 10, 2026, by US Postal Service to all property owners within a 500-foot radius of the subject property. Notice was also published in the Napa Valley Register on July 9, 2026, and provided to people previously requesting notice on the matter at the same time notice was provided to the newspaper for publication. The Applicant was also provided with a copy of this Report and the associated attachments in advance of the public hearing on the Project.