Appellation Petaluma Hotel

The Appellation Petaluma Hotel is seated in the heart of Petaluma’s Historic Downtown, at the intersection of Petaluma Boulevard and B Street. Here, guests and locals alike will be welcomed into an iconic hotel that blends seamlessly into the fabric of the neighborhood, embracing the past and present culture that is Petaluma. The ground floor is home to an epicurean delight led by a local icon, Charlie Palmer. This corner restaurant and bar will boast a carefully curated menu using locally sourced ingredients, making it an instant favorite for the community.

Deeply woven into our fabric, we proudly provide space to foster creativity, connection, and enjoyment. Our programming offers a unique blend of engaging cultural and culinary experiences for our guests and community members to take part in. Hosting events, speakers and classes throughout the year, we contribute to the offerings made available in Petaluma and create a safe space for people to gather. An integral feature to our hotel, the rooftop space will be used to host events, enjoy a glass of wine or just to take a moment to enjoy the sweeping views of the city, river and surrounding hills. Welcoming to anyone wishing to visit, serving as the perfect space to unwind, play or socialize.

Appellation Petaluma Hotel

PROJECT DETAILS

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The Appellation Petaluma Hotel is seated in the heart of Petaluma’s Historic Downtown, at the intersection of Petaluma Boulevard and B Street. Here, guests and locals alike will be welcomed into an iconic hotel that blends seamlessly into the fabric of the neighborhood, embracing the past and present culture that is Petaluma. The ground floor is home to an epicurean delight led by a local icon, Charlie Palmer. This corner restaurant and bar will boast a carefully curated menu using locally sourced ingredients, making it an instant favorite for the community.

Deeply woven into our fabric, we proudly provide space to foster creativity, connection, and enjoyment. Our programming offers a unique blend of engaging cultural and culinary experiences for our guests and community members to take part in. Hosting events, speakers and classes throughout the year, we contribute to the offerings made available in Petaluma and create a safe space for people to gather. An integral feature to our hotel, the rooftop space will be used to host events, enjoy a glass of wine or just to take a moment to enjoy the sweeping views of the city, river and surrounding hills. Welcoming to anyone wishing to visit, serving as the perfect space to unwind, play or socialize.

Rooted in genuine hospitality, Appellation Petaluma will be a gathering place where locals, travelers, and kindred spirits come together.
Paying homage to Petaluma’s agricultural heritage while contributing to its ever-evolving story, Appellation will support local farmers, winemakers, artisans, and makers who continue to shape the city’s creative and agricultural identity. ​
Honoring Petaluma’s rich history, the hotel will celebrate the region’s bounty with chef-driven experiences and a kitchen showcasing local ingredients, all led by iconic local chef Charlie Palmer.​
Appellation Petaluma is a natural extension of the city’s legacy, where culinary innovation, artisanal craftsmanship, and deep agricultural roots intertwine. Here, history isn’t just preserved, it’s woven into something new, honoring the region’s enduring character and craftsmanship while writing its next chapter.​

Project OVERVIEW

Located at Petaluma Boulevard and B Street, Appellation Petaluma Hotel is designed to complement the charm and character of downtown. Thoughtfully woven into the neighborhood, it will be a welcoming space for both visitors and the community.

At its heart, a new restaurant led by acclaimed chef Charlie Palmer will celebrate Sonoma County’s finest ingredients, creating a gathering place for great food and conversation.

More than a hotel, Appellation Petaluma will offer cultural and culinary experiences, a rooftop to take in the city’s beauty, and a welcoming space to connect, unwind, and celebrate Petaluma.

Design Inspiration

The hotel design considered was implemented after working with the city, local architects, and the Historic and Cultural Preservation Society of Petaluma. A study of downtown’s historical buildings led to the proportions of the storefront and upper story windows being designed to mimic the patterns of the surrounding traditional storefronts.

The window and doorframes, which are recessed from the wall plane of the building, echo the pattern of traditional buildings, providing contrast and visual interest.

The proposed site and landscaping elements for the hotel aim to follow the character and design of the building to create a harmonious transition from the surrounding site to the building interior.

Parking

To ensure ample parking accommodations, the hotel will provide 58 underground valet-only spaces, along with offsite valet parking to support additional demand. The property will also feature secure underground bike storage, making alternative transportation easy and accessible. Additionally, two loading spaces will be designated for quick drop-offs and deliveries.

The hotel's parking design fully meets the required parking standards per code while optimizing efficiency and guest experience through valet parking. Studies have shown that valet parking can increase parking capacity up to 40% compared to self-parking by allowing for more strategic use of available space. Implementing valet parking ensures operational efficiency, a high level of service, and compliance with city regulations.

Project LOCATION

Project LOCATION

Boost to the Local Economy

The Appellation Hotel will drive economic growth in Petaluma, generating both immediate and long-term financial benefits. By contributing $1 million annually in Transient Occupancy Tax (TOT) revenue, the project will help fund local services, improve infrastructure, and reduce the city’s budget deficit. Since Petaluma retains 100% of the TOT revenue, the hotel directly strengthens the city’s financial flexibility, enabling critical community investments.

Temporary Economic Impacts

During construction, the project will: 

  • Support 328 jobs in construction, architecture, and management.
  • Generate $55.25 million in economic activity across key industries. 
  • Boost demand for local businesses supplying materials and services.

Ongoing Economic Impacts

Once operational, the hotel will: 

  • Support 150+ permanent jobs in hospitality and related sectors. 
  • Generate $18.6 million annually in economic activity. 
  • Drive 2% industry growth across 15 sectors, notably in restaurants and hotels. 

By attracting visitors who dine, shop, and explore Petaluma, the hotel will increase revenue for local businesses and solidify the city as a premier destination. 

Strategic Economic Development

As Petaluma refocuses on economic growth, The Appellation Hotel aligns with city priorities by fostering new investment, jobs, and tax revenue. Through partnerships with the Downtown Business Association and local stakeholders, the hotel will support:

  • Improved transit options to ease congestion.
  • Public restrooms and enhanced lighting for a better downtown experience.
  • Pedestrian-friendly enhancements to boost walkability.

Tax Contributions & Public Benefit

Over 25 years, The Appellation Hotel will generate:

  • $37.1 million in TOT revenue for city services and historic preservation.
  • $36.5 million in Sales Tax revenue for local programs.
  • $24.9 million in Property Tax revenue for schools and emergency services.

By fueling economic growth, funding essential services, and enhancing downtown vitality, The Appellation Hotel will be a cornerstone of Petaluma’s long-term success.

Funding for Historic Preservation Through TOT Revenue

A portion of the $1 million in annual TOT revenue could be reinvested to preserve and celebrate Petaluma’s rich history, ensuring its unique character thrives for future generations.

  • Historic Landmark Restoration – Fund maintenance and rehabilitation of Petaluma’s iconic buildings.
  • Enhancing the Riverfront District – Improve pedestrian access, signage, and public spaces along the historic waterfront.
  • Supporting Museums & Cultural Institutions – Strengthen exhibits, archives, and educational programs.
  • Preservation Grants – Assist property owners in restoring historic homes and businesses.
  • Public Art & Heritage Programs – Fund murals, sculptures, and exhibits celebrating Petaluma’s heritage.

By investing in historic assets, The Appellation Hotel will contribute to economic growth while safeguarding the city’s cultural identity.

Enhanced Community Amenities

New Public Spaces - The Appellation Hotel will introduce vibrant gathering spaces, including:

  • Event venues for local and private functions.
  • A rooftop bar and dining option that are open to both guests and the public.
  • Decorative facets sourced from local artists that will attract art lovers to explore regionally sourced art inside and outside of the hotel.

Fostering a welcoming atmosphere, the hotel will enhance Petaluma’s social and cultural landscape.

Project FREQUENTLY ASKED QUESTIONS

How many parking stalls does the project have?

58 stalls on site, meeting the parking requirements as determined by the City of Petaluma, and exploring additional off-site parking. There will additionally be bicycle parking (street level) and bicycle valet in the parking garage. The Project Team is adding mechanical parking (costly) to allow for 58 stalls, the code required amount, and will be valet only.

Is there designated public space on the rooftop?

A portion of the rooftop is designated as public space even during private events. The rooftop is designed to have the best views in town and will take advantage of the surrounding landscape.

How many stories is the project?

The project is five stories with an occupiable rooftop element. The fifth floor is intentionally stepped back from the fourth floor, substantially minimizing the visual impact and making the building appear as a four-story building. The occupiable rooftop structure is set back 25 feet from the property line, making it invisible from the street below.

What will the public art installation be?

The Project Team is in the process of determining both the type of art installation and the local artisans that will commission the various art pieces. The project will invest at least half a million dollars in public facing art.

What brand will the hotel be?

After an substantial amount of community input we have chosen the project to be an Appellation Hotel, a local, food and beverage-centric brand founded by Charlie Palmer and Chris Hunsberger – based in Sonoma County.

How much traffic will the project add to downtown?

The project team is currently working to update their Traffic Study and will post its findings when finalized. Although the project will add traffic from its current use (vacant land) it will be substantially less than its previous use as a Chevron gas station. The project is currently building a program that both encourages and rewards guests to take advantage of alternative transportation, such as The SMART train, into Petaluma.

Why doesn’t the project look like a historical project?

While the project is a new building and takes advantage of the latest green building technologies and design, much thought and care was put into creating a hotel which has many historic features found in Petaluman architecture. Diana Painter is a key project team member, who worked hand-in-hand with the architect to implement and incorporate historic features found in Petaluma’s historic downtown.

Will the project be LEED Certified?

The Project will qualify as a LEED-certified building through the sustainable features included throughout the project’s design, however it will not be officially LEED Certified.

Community Feedback AND Questions

We’re committed to transparent communication and fostering a constructive dialogue with our community.

Will the hotel take away the sidewalk?

No, the hotel will improve and enlarge the sidewalks surrounding the site, significantly improving pedestrian safety at the central location and busy corners.

How will Trash Pickup and Drop off work?

Trash and recycling recovery for the Hotel will be managed with a system designed to maximize efficiency and environmental responsibility, aligning with best practices for urban sustainability. Waste will be sorted to meet recycling requirements and stored in a climate-controlled environment to mitigate odors. Large bins will be used for collection, ensuring proper separation of recyclables and landfill waste. On designated collection days, these receptacles will be placed on B Street for pickup and promptly returned to the dedicated trash storage area. This approach minimizes disruption to the surrounding community while reinforcing our commitment to responsible waste management and recycling.

What is the property used for now?

The property is currently a vacant lot with no active use. Without development, it will remain unused for years to come, rather than contributing to the vitality of downtown Petaluma.

How does the hotel support local Artists and craftsmen?

We are committed to sourcing local art, sculpture and programming to intertwine Petaluma’s character into the atmosphere of the hotel. We are collaborating with multiple local artists on the exterior of the building to craft architectural elements into the structure of the hotel, creating a permanent public art display.

Will your building be the tallest in Petaluma?

No, Appellation Petaluma will not be the tallest building in Petaluma. The tallest structure in the city is the Dairyman’s Feed & Supply Co., which stands at 153 feet. In comparison, Appellation Petaluma reaches a total height of 68 feet, with a 45-foot street wall. For context, other notable buildings include the Mutual Relief Building at 63 feet, the Masonic Building at 52 feet (with its clock tower extending to 72 feet), Hotel Petaluma at 52 feet, and Old Fellows Hall at 50 feet.

How many stories tall is the hotel?

The Appellation Petaluma Hotel is six stories tall, featuring a partially covered rooftop bar and public space, making the roofline less prominent from the ground. The 5th floor design features a strategic 12-foot step back, ensuring that its street-level presence remains consistent with the scale of surrounding contributing structures. This design approach preserves the character of downtown while introducing a refined, contemporary addition to the city’s architectural landscape.

If we refuse this hotel, what will be built on the site instead?

If this hotel is not approved, the site will likely be developed as either a select-service hotel—which would not meet the high standards and community benefits provided by Appellation Petaluma Hotel—the site could also be considered for affordable housing, which is not subject to the same height and design restrictions, allowing an even taller building with fewer limitations on scale, impact and parking.

What is the Overlay?

The Overlay would establish a process so that the City and community could consider development proposals that exceed the current downtown height maximum of 45 feet and that could be as tall as 75 feet, but only in three small subareas of Petaluma’s downtown.

What is the referendum?

The referendum is a community petition opposing the overlay and general plan amendment which allows new downtown developments to be taller than then current historical restrictions of 45 feet, to be as tall as but not to exceed 75 feet.

If passed, it will impede Petaluma’s economic growth and efforts to replace vacant or deteriorating properties with vibrant businesses and residences.

WHAT TYPES OF PROJECTS WOULD BE ABLE TO EXCEED THE 45-FOOT HEIGHT MAXIMUM?

Projects may be eligible for a height increase up to 75 feet with a Conditional Use Permit from the Planning Commission, granted during a public meeting if the project provides community benefits such as public outdoor amenities, publicly accessible open space, or sustainable design. Eligible projects must also demonstrate aesthetic value or use eco-friendly building methods. Additionally, new historic preservation protections ensure compatibility with downtown’s character, and all height increases require environmental review under the California Environmental Quality Act.

What is the Hotel’s association with the Overlay?

Based on economic evaluation, the hotel relies on the overlay to provide Petaluma with a luxury product that brings in new tourism and increases revenue generation for the city.

Without the overlay, the hotel will be unable to provide the necessary amenities, hotel rooms, and revenue opportunities to significantly contribute to the city's priorities, including funding for public services such as education, parks, fire safety, and police departments.

How does the overlay benefit downtown?

The overlay allows new developments on vacant properties while ensuring downtown retains its historic character through structured guidelines. It fosters economic growth, with projects like the Appellation Hotel generating $1 million annually in Transient Occupancy Tax (TOT) revenue to support local services and infrastructure. Since Petaluma retains 100% of TOT revenue, the overlay creates a sustainable path for development that strengthens the city’s financial future.

Why shouldn’t I sign the Referendum?

By signing the referendum, you would be advocating for keeping downtown Petaluma in a stagnant state. Improving underutilized lots and reinvigorating tourism in the downtown area are crucial for helping local businesses thrive in today’s challenging economy. Additionally, the referendum would block the city's opportunity to receive TOT taxes, which fund essential public services and help preserve the historic charm of Petaluma. Don’t let progress be halted—decline to sign the referendum and support a vibrant future for Petaluma.

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ReSOURCES

TOT TAX

Although Sonoma County overall receives a relatively high amount of TOT income per capita, in comparison, the town of Petaluma receives a relatively low amount of TOT income per capita.

https://www.sco.ca.gov/Files-ARD-Local/LocRep/2022-23_County_TOT.pdf

https://sonomaedc.org/data-center/industry/transient-occupancy-tax-report

https://www.sco.ca.gov/Files-ARD-Local/LocRep/2022-23_County_TOT.pdf

Petaluma City Schools

In the last two years, the Petaluma City Schools' General Fund has experienced a total shortfall of roughly $15M.

https://d3g27eodky9jlt.cloudfront.net/2020-21-Unaudited-Actuals-Financial-Statement.pdf

https://d3g27eodky9jlt.cloudfront.net/2021-22-Unaudited-Actuals-Financial-Statement.pdf

https://d3g27eodky9jlt.cloudfront.net/2022-23-Unaudited-Actuals-Presentation.pdf

https://d3g27eodky9jlt.cloudfront.net/2022-23-Unaudited-Actuals-Financial-Statement.pdf

https://d3g27eodky9jlt.cloudfront.net/Petaluma-City-Schools/documents/2023-2024-UNAUDITED-ACTUALS.pdf

Petaluma City Schools, Staffing

Over the last 3 years, total employment at Petaluma City Schools has steadily decreased, and projections for 2025-26 contemplate another year of layoffs which would bring total staffing levels to a 6-year low.

https://d3g27eodky9jlt.cloudfront.net/Adopted-Budget-2020-2021.pdf

https://d3g27eodky9jlt.cloudfront.net/2021-22-Adopted-Budget.pdf

https://d3g27eodky9jlt.cloudfront.net/2022-23-Adopted-Budget.pdf

https://d3g27eodky9jlt.cloudfront.net/2023-24-Adopted-Budget.pdf

https://d3g27eodky9jlt.cloudfront.net/Petaluma-City-Schools/documents/2024-25-Adopted-Budget.pdf

Petaluma City Population

Census data shows that the population of Petaluma has only grown just under 8% since 2000, and less than 2% since 2010.

https://www.census.gov/quickfacts/fact/table/petalumacitycalifornia/PST045223

https://datausa.io/profile/geo/petaluma-ca/#:~:text=In%202022%2C%20Petaluma%2C%20CA%20had,%24108%2C527%2C%20a%208.12%25%20increase.

https://datausa.io/profile/geo/petaluma-ca/#:~:text=In%202022%2C%20Petaluma%2C%20CA%20had,%24108%2C527%2C%20a%208.12%25%20increase.

https://www.census.gov/quickfacts/fact/table/petalumacitycalifornia/PST045223

https://needecon.org/CityReports/Petaluma.pdf

https://www.census.gov/quickfacts/fact/table/petalumacitycalifornia/PST045223

http://www.bayareacensus.ca.gov/cities/Petaluma.htm

Visitor Spending by Commodity Purchased

Data from the Sonoma County Tourism department shows a 30% increase in the amount of Visitor spending on Accommodations from 2017 to 2022.

https://www.sonomacounty.com/wp-content/uploads/2023/10/2024_Quick_Facts_Sonoma_County_Tourism.pdf

Petaluma City Websites

Members of the public who wish to comment on items may submit their comments to the City Clerk at cityclerk@cityofpetaluma.org

https://cityofpetaluma.org/departments/community-development

https://cityofpetaluma.org/government/

https://www.planpetaluma.org/