In my view, it is clear that Little Zelda is not being "thrown under the bus."
To the contrary, the board seems to have agreed with them that it is ok for a merchant to ask their patrons (regardless if they represent a particular hue more than another), and then get the support of the CB.
It seems as if they are granting individual businesses some level of preference and discretion whether they would like a bike corral. However, the board seems unable to let this discretion extend to having a reserved spot for the owner, a loading zone, or a spot for the disabled.
Thus, the board's powers seem to be very limited, and subject to the actual approval by the DOT. ....the board can merely make a recommendation.