Commercial Real Estate in Lagunitas: CP and H1 Zoning, Stream Rules and Septic Limits

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

Lagunitas is the westernmost of the four San Geronimo Valley villages, strung along Sir Francis Drake Boulevard on the way to Samuel P. Taylor State Park. Its commercial property is a handful of buildings: a store and post office area, small offices and a few service businesses. What can happen on those parcels is set by Marin County zoning, the 1997 San Geronimo Valley Community Plan, stream protection rules for Lagunitas and San Geronimo creeks, and the capacity of on-site septic systems. Confirm zoning, septic records and creek setbacks for each parcel with the Marin County Community Development Agency.

Who controls the parcel

Lagunitas is unincorporated, so Marin County decides land use through its Title 22 Development Code. The county’s community plans list includes the San Geronimo Community Plan of 1997 covering Woodacre, San Geronimo, Forest Knolls and Lagunitas. A copy of that plan shows Board of Supervisors adoption on December 2, 1997. Lagunitas is inland of the Coastal Zone, so a coastal permit is generally not needed, but confirm for parcels near the state park boundary.

Water comes from Marin Water. The plan records that the water district absorbed the San Geronimo Valley Water Company in 1951 and, from 1963, served the valley from its reservoirs. There is no community sewer. Every business relies on an on-site septic system permitted by county Environmental Health.

Lagunitas zoning for commercial, industrial and mixed use

The community plan lists three commercial categories for the valley: Commercial General (zoned C-P and H-1), Commercial Residential (zoned VCR) and Commercial Recreational (zoned RCR). The county’s Chapter 22.12 use table controls what each allows. The county housing sites list confirms H1 and CP zoning on two Lagunitas office parcels.

District	Intended uses	Notes
CP Planned Commercial	Lower-intensity retail, office and housing with design controls	Mapped at 7282 Sir Francis Drake. Restaurants, bars, offices, retail and auto repair permitted
H1 Limited Roadside Business	Rural roadside commercial with limited housing	Mapped at 7120 Sir Francis Drake. Most commercial uses need a use permit
VCR Village Commercial/Residential	Historic village centers, resident- and visitor-serving	Small restaurants, offices, retail permitted. Bars and food production by use permit
RCR Resort and Commercial Recreation	Resorts with public recreation	Hotels, restaurants and B&Bs permitted
No industrial district	—	The valley plan sets no industrial category

In CP and H1, housing other than affordable units must be accessory to the primary commercial use. The plan’s own table projected only small residential gains in these zones at buildout, a sign of how little commercial land exists in the valley.

Sir Francis Drake and the Lagunitas village center

Historic core. The community plan notes that the Pedrini Brothers built an early shopping center on the site of the present Lagunitas Post Office, with a lumberyard, grocery, dance hall and lodge, and that the post office dates to 1906. Today’s commercial buildings sit along the same stretch of Sir Francis Drake, so most deals involve older buildings with legal nonconforming features.

Housing overlay on office sites. Two Lagunitas office properties are on the county’s Housing Element list: 7120 Sir Francis Drake (H1:HOD) and 7282 Sir Francis Drake (CP:HOD), counted for 16 and 14 units, mostly through upper-floor and rear-property rehabilitation. The county’s Table 2-12 sets them at 20 units per acre, limited to 1.5 acres, under the Form Based Code’s T3 and T4 zones. HOD housing that meets those standards is approved ministerially. Septic capacity still has to be shown.

What fits. Resident-serving retail, a small café, offices, studios and personal services suit the zoning and the septic limits. A high-water-use restaurant, brewery or event venue faces both use-permit and wastewater hurdles.

Stream conservation, septic and other Lagunitas constraints

Stream Conservation Area rules. In July 2024 the Board of Supervisors approved an updated SCA ordinance and rezoned every lot in the San Geronimo Valley into a new combining district, effective August 18. It sets a minimum 35-foot no-touch zone along all streams, caps residential additions in the SCA at a 300-square-foot footprint and extends site plan review to SCA development. The county links the rules to Lagunitas Creek’s coho salmon run, one of the largest wild populations in Northern California. Any expansion of a creekside commercial building needs early review.

Septic. The plan notes that a leach field needs roughly an acre and that the valley floor’s high winter water table can cause septic problems. A change to a more water-intensive use usually needs an Environmental Health review. Ask for the septic permit, pumping records and any failure history.

Lodging and STRs. Lagunitas has its own STR township cap. The county’s STR administrative procedures list 6 initial licenses falling to 4, among the smallest caps in the county. Some ADUs built after January 1, 2020 cannot get a license. Permitted hotels and B&Bs are exempt from STR licensing, so legally established lodging is scarce and valuable.

Transfer tax, business tax and property tax

Only the county transfer tax applies: $0.55 per $500, net of assumed liens, per the Marin County Recorder’s transfer tax sheet. Businesses need a county business license under Chapter 5.54, renewed by July 31 and taxed by gross receipts class. Lodging and rentals pay $15 per unit per year. A sale generally triggers Proposition 13 reassessment.

Due diligence that matters in Lagunitas

Start with our commercial due diligence checklist, then add:

Confirm the base district (CP, H1, VCR or RCR) and any HOD listing.
Measure distance to San Geronimo or Lagunitas Creek and check SCA combining district limits.
Get septic permits, capacity and inspection history from county Environmental Health.
Confirm a Marin Water meter and service size match the intended use.
Check fire access and defensible space for the wildland setting.
For lodging, confirm whether it is a permitted hotel or B&B or an STR needing one of the township’s few licenses.

Questions people ask

Who regulates commercial property in Lagunitas?

Marin County, through Title 22 and the San Geronimo Valley Community Plan.

Is there sewer service in Lagunitas?

No. Businesses use on-site septic systems, and the community plan notes that a leach field generally needs about an acre.

Can I add apartments to a Lagunitas office building?

Two office sites are on the county’s housing list at 20 units per acre with ministerial review. Elsewhere, housing in CP or H1 is generally accessory to commercial use.

How close to the creek can I build?

The 2024 SCA rules set a minimum 35-foot no-touch zone along streams, with site plan review for work in the conservation area.

How many short-term rental licenses does Lagunitas have?

The county lists 6 initial licenses, dropping to 4.

Is Lagunitas in the Coastal Zone?

Generally no; it is inland. Confirm for parcels near the state park.

Does Diamond handle commercial property in Lagunitas?

Contact Matthew Martinez to discuss buying, selling or leasing commercial property in Lagunitas.

Sources & notes

Marin County Title 22 Development Code and Community and Area Plans
San Geronimo Valley Community Plan, adopted Dec. 2, 1997 (copy hosted by the valley historical society)
Marin County Code (GoCodebook): Ch. 22.12, Ch. 22.14 incl. Table 2-12
Marin County, West Marin housing element sites
Marin County, Board approves San Geronimo Valley SCA policies (July 2024)
Marin County STR administrative procedures, Feb. 2025
Marin County Recorder, transfer tax and business license

Note: The plan copy we read is hosted by a historical society, not the county; the county lists the same plan. We did not open the zoning map, the SCA ordinance text or fire district records, and did not confirm which agency provides fire service.

This page is general information, not legal or tax advice. Last reviewed October 2026 by Matthew Martinez.

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