Two national retailers plan to open in downtown Sonoma in November. A See's Candies holiday pop-up is set to open in mid-November at Sonoma Marketplace, 201 W. Napa St., Suite 10. Overland Sheepskin Co. is moving into 452 First St. East on the Plaza, with a target of mid-to-late November. Overland got there only after a public vote by the Sonoma Planning Commission. See's needed no hearing at all. The reason is a city ordinance from 2012 that sorts chains by address.
The 2012 rule that splits downtown in two
Sonoma's formula-business ordinance is Section 19.50.035 of the Sonoma Municipal Code. A chain that wants to open or expand anywhere in the historic district needs a use permit, and a permit is a public process. The code counts a store as a "formula business" when its retail, service, grocery or restaurant format is standardized to be substantially identical to 10 or more other businesses in the United States.
According to The Press Democrat's report at the time, the City Council passed the rule on a 3–2 vote in June 2012. The current code still marks it "Ord. 03-2012."
The rule is stricter in some places than others. Everywhere in the historic district, the Planning Commission has to find that a chain adds variety to the local business mix and fits "the unique and historic character of Sonoma." Sites inside the Plaza Retail Overlay have to clear one more finding. Large formula restaurants, meaning chains with 250 or more substantially identical locations, are banned from the overlay outright.
Then the last sentence of the section carves out four shopping centers where the rule doesn't apply: Sonoma Valley Center, the Marketplace, Maxwell Village and Fifth Street West Plaza.
So downtown Sonoma has two sets of rules for chains. Around the Plaza, a chain has to make its case in public. Inside those four named centers, it signs a lease like any other tenant.
What Overland had to show on July 16
The Plaza Retail Overlay's extra requirement reads:
The formula business establishment will be compatible with existing uses in the zone and will promote the zone's economic vitality as the commercial, cultural, and civic center of the community.
Overland Sheepskin Co. went in front of the commission on Thursday, July 16, 2026, asking for a permit for 452 First Street East, Suite A. The site sits inside both the Historic and Plaza Retail Overlay districts. The minutes record a 5–0 vote to approve, with two commissioners absent. City staff treated the company as a formula business because it offers a standardized mix of merchandise, services and features across its other stores. Staff recommended approval, finding the shop "will provide a diversity of commercial offerings that will complement the surrounding businesses."
What Overland proposed was modest. As the Sonoma Index-Tribune reported, the company planned no significant structural changes, only new paint, flooring and wall finishes. It expects to hire five to seven people. The Leahy family founded Overland in Taos, New Mexico, 53 years ago. The brand makes shearling, leather and wool outerwear and is now headquartered in Fairfield, Iowa.
The space came open when The Passdoor, an art gallery and jewelry store, closed its Sonoma store in August to relocate to Santa Rosa. At the July hearing, Overland vice president of operations Cody Phipps put the Sonoma opening at mid-to-late November, telling the commission, "Definitely before Thanksgiving." That's the target, so check before you plan a trip around it.
Why See's skipped that hearing
Sonoma Marketplace is one of the four exempt centers. The See's pop-up there is going into the unit next to Whole Foods that Marketplace Haircutters left in July. According to the Sonoma Index-Tribune, a See's spokesperson said the shop will close when the holidays end and will sell only "pre-packaged" candies and products. That means no long glass case to pick from. The same report says it's unclear whether a permanent tenant will take the space afterward.
Neither the report nor the code says whether the exemption played any part in See's choice of site. The code does mean the store needed no formula-business hearing to open there.
| Overland Sheepskin Co. | See's Candies pop-up | |
|---|---|---|
| Address | 452 First St. East, Suite A | 201 W. Napa St., Suite 10 |
| Setting | Plaza Retail Overlay | Sonoma Marketplace, exempt under §19.50.035 |
| Formula-business permit | Approved 5–0 on July 16, 2026 | Not required |
| Expected timing | Mid-to-late November | Mid-November through the holidays |
| Previous tenant | The Passdoor, relocating to Santa Rosa | Marketplace Haircutters, closed in July |
If you shop downtown, the takeaway is practical. Chains with name recognition tend to show up in the Marketplace and the other exempt centers. Any chain that wants a Plaza storefront has to get on a Planning Commission agenda first, and that agenda is public.
The closures the rule doesn't touch
The ordinance only deals with who can move in. It does nothing to keep a business from leaving, and this fall's biggest losses near the Plaza had nothing to do with chains.
Oso Sonoma and Parkside Wine Bar, side by side on East Napa Street, both closed on Saturday, Sept. 26, after Oso's 12-year run. Chef David Bush owns both with his wife, Kelley Bush. He told the Sonoma Index-Tribune that the kitchen and building badly needed upgrades, and "it was too costly to spend the money on a building we don't own."
A few blocks away, Vella Cheese Company stopped making cheese after 94 years. Its Second Street East shop had expected to need months to sell through its stock. Then, as the Sonoma Index-Tribune reported, customers turned out in such numbers that the store made its last sale on Sept. 4, about 10 days after the closing was announced. The Sonoma Valley Sun reported that an unnamed Sonoma food family hoped to save the factory at 315 Second Street East.
The ordinance screens chains coming onto the Plaza. Whether long-time independents stay depends on lease terms and the cost of updating old buildings, which the rule doesn't address.
Independents still filling Plaza storefronts
Locally owned shops kept opening this fall without any formula-business review. Fine Eye Gallery moved from Sutter Creek to 535 First St. West. Owner Dora Martin opened the Sonoma shop on Sept. 2 and scheduled a ribbon-cutting for Sept. 24.
Belongings is a women's apparel and consignment boutique owned by Sonoma resident Jennifer Adler. It was scheduled to open at 10 a.m. on Nov. 4 inside Nanigins at 529 Broadway. That's a shop inside a shop, which is one way a new independent can get a downtown storefront without taking on a whole building.
The holiday dates around these storefronts
Overland's target and See's opening both land in the same weeks as the Plaza's biggest holiday events:
- Nov. 7 and Nov. 14: Music in Place's "Curated, Reimagined, Unplugged" series presents Cole Porter, then Bel Canto.
- Through Jan. 10: Fairmont Sonoma Mission Inn, 100 Boyes Blvd., runs Harvest Chalets through Nov. 8, then Winter Chalets from Nov. 13 to Jan. 10. Reservations are available for Thanksgiving, Christmas and New Year's Eve.
- Nov. 21, 5 to 8 p.m.: The free Lighting of the Sonoma Plaza brings music, food and drink vendors, and the holiday tree lighting.
- Nov. 28, 6:30 p.m.: The free Lighted Tractor Parade circles the Plaza, presented by the Sonoma Valley Vintners & Growers Alliance with the City.
- Dec. 6, Dec. 12 and Dec. 19: Music in Place continues with a holiday matinee and the Marcus Shelby Big Band, then Candlelight Holiday Classics, then Clairdee.
This post is general information about a city ordinance, not legal advice. If you're a business owner weighing a downtown lease, confirm how the rule applies to your site with the City of Sonoma and a qualified professional.
Who moves into a historic storefront affects every building around it, and helping clients present their homes well in that setting is what we do every day. If you own near the Plaza and wonder how this season's changes might show up in your home's value, Shandrika Powell can walk you through it. Request your free home valuation and staging plan.
