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Mr. Dolan stated that he understood Commissioner Olson's question as whether or not the City's obligation is only to rezone. He confirmed that the City's obligation under the Housing Element law is only to rezone. Commissioner Olson stated that, regardless of a Negative Declaration, many issues were brought up tonight which can be dealt with during the PUD process. He indicated that he felt it does not make sense to add a housing component to a situation where the City is out of capacity prior to that addition. Ms. Stern confirmed that the issues raised would be dealt with during the PUD process. Commissioner Olson stated that he believes a subcommittee would most likely come to that conclusion based upon public input and that the process should move in that direction. Commissioner Narum inquired if, in the event the Commission approves the rezoning, some retail and services be included in addition to housing. She noted that she felt this may be in conflict with components and programs of the General Plan which were cited in the staff report. Mr. Dolan replied that a follow -up development is evaluated against the policies that exist. He added that there is a possibility, but with no guarantee, that there will be an exploration of the City's ability to provide retail because this is a component of a true transit oriented development. He noted that part of the PUD process will be an evaluation of what the retail demand is, which will be indicated by an on -going study during the PUD process. He indicated that it is somewhat premature to include that requirement because the numbers are yet unknown; however, he noted that retail is a vital component of transit oriented development. Commissioner Narum inquired whether, if the study should state that there is enough mass to support some retail but the PUD is only for residential, there would be an opportunity to reject the PUD based upon the fact that there is enough demand to support the retail and that it is not consistent with, for example, Program 2.1. Mr. Dolan replied that if those turn out to be the facts, it is unlikely that a positive recommendation will be developed by staff and that it would be legitimate for the Commission to come to that conclusion in its recommendation to City Council. Commissioner Narum inquired if all of the units need to be low- and very -low- income units. She noted that the City's policy is that these types of housing be dispersed throughout the community. Mr. Dolan replied that there is some misconception regarding what would occur if a project were to develop. He stated that the State requires a zoning of a minimum of 30 units per acre but does not require all the units to be affordable. He added that the affordability component would be what is required by the City's inclusionary ordinance. DRAFT EXCERPTS: PLANNING COMMISSION MINUTES, 9/23/2009 Page 9 of 18