Morgan Hill – More businesses may get a chance to advertise on freeway signs after the Morgan Hill Planning Commission recommended loosening regulations.

The issue hails from the business community, which for years has believed the city’s sign codes are too restrictive. Measures adopted in 1993 require commercial businesses to be no farther than 200 feet from U.S. 101 and no smaller than 15,000 square feet to get a freeway sign. The code includes exceptions for smaller businesses such as gas stations if they are “freeway dependent.”

In response to the Morgan Hill Chamber of Commerce, city planners recommended expanding the freeway purview from 200 to 750 feet and reducing the size requirement for businesses from 15,000 to 12,000 square feet.

But the planning commission disagreed on how close to the freeway businesses need be, recommending instead a distance of 600 feet.

City planners justified their request for a 750-foot periphery to allow the Aquatics Center and the forthcoming sports complex on Condit Road to apply for highly visible signage. But the commission reasoned a 600-foot boundary would be sufficient to allow the recreational facilities to qualify for freeway signs. It was approved by a 4-2 vote Tuesday.

The commission’s recommendation will be considered by the Morgan Hill City Council later this month. The council must adopt the amendments before they can take effect.

Most recently, the issue resurfaced with the arrival of Trader Joe’s specialty grocery store last December on Laurel Road, near the E. Dunne Avenue exit of U.S. 101. The grocer has expressed strong interest in leasing space on the sign edifice used by Chevrolet and Chevron by the E. Dunne Avenue exit.

“There are a lot of businesses who want to get on those signs,” said Morgan Hill attorney Del Foster, who represents the Simonsen family that owns the sign Trader Joe’s wants to use. “Trader Joe’s is struggling because nobody knows where they are.”

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