The Campbell City Council wants more retail destinations in the downtown core.

At a study session on Feb. 7 the council directed city staff to look into how Campbell could help attract and retain non-restaurant businesses and keep them from closing or relocating to different cities. City staff will research and gather information about some retail-boosting tactics like installing electronic signs to direct visitors to parking areas and allowing different types of businesses within the downtown area.

Food establishments make up the majority of the city’s downtown strip, with pockets of boutiques and service businesses such as salons and spas, according to city staff. In 2015, three downtown retail businesses closed. European Cobblery, a business that specialized in shoe repair and retail, closed last fall. The vintage clothing store 23 Skidoo relocated from the East Campbell Avenue strip last year.

City staff suggested allowing specialty or craft liquor stores, offices serving the public such as real estate and financial advising, pet day cares or grooming services, studios and service stores, and retail medical businesses such as optometrist practices that also have retail components. Service businesses like optometrists and yoga studios are typically not on the East Campbell Avenue strip since a retail component is required to set up shop downtown.

“The idea is to allow additional activity that goes beyond traditional retail and restaurant,” Daniel Fama, senior city planner, told the council.

The council agreed to not actively recruit large chain retailers but instead search for small businesses that would stay in line with the characteristic of the historic downtown. Council members specifically mentioned clothing chain H&M.

Mayor Liz Gibbons and Councilwoman Susan Landry objected to specialty liquor stores and wine tasting businesses, saying the downtown already has enough establishments serving alcohol.

Staff suggested incentives that could help businesses better attract customers such as allowing outdoor merchandise displays without a permit and requiring downtown employees to park in designated areas so visitors can park closer to shops.

To help with shops’ bottom lines, staff floated a sales tax rebate program to give retail business owners a break in paying sales tax to the city if they generate a specific amount of revenue.

The council also considered tacking on parking in-lieu fees, which would give developers the option to pay a fee instead of trying to come up with a required number of parking stalls per seat in a restaurant. Some on the council felt this could be a way to hold restaurants accountable for the increased amount of traffic brought to the downtown.

The council collectively agreed that a sales tax rebate program would not be a beneficial incentive to the city.

“Tax incentives and bonuses are not the answers,” said Councilman Rich Waterman. “We have a very well-working downtown, and we don’t want to mess with it too much.”

City staff will return to the council in the future to discuss a plan.