There's a small park on the main square and a balloon-clown works there. I don't know if you need a permit, though. I was there for Jazz Festival, which is pretty big and all over town. Contact the organizers if you want to participate, but they might ask you for a fee. Most festivals in Bay Area charge street artists and performers for the space, it's about 100-150$ a weekend, but you can charge for balloons or sell your CDs.
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