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Director of Community Development, Brian Dolan, stated that when the City last prepared a Housing Element in 2003, it adopted Program 19.1 which provided that the City conduct and use studies and rezone land to high- density residential in sufficient quantities to meet Regional Housing Needs Assessments (RHNA). The City's Housing Element has since been de- certified by California's Housing and Community Development Department for failure to accomplish that program. In addition, the Urban Habitat Program filed litigation against the City for the same reason. Mr. Dolan noted that the City has made several statements of intent to address this rezoning in a timely manner but has failed to act accordingly. One of those statements committed to doing so as soon as the General Plan, which does anticipate this zoning and mixed -use development at the Hacienda Business Park, was adopted. He said that staff believes this rezoning, at a density of 30 units per acre, is needed to implement the Housing Element and defend against pending litigation. Mr. Dolan reviewed the history of mixed -use in Hacienda Business Park, which dates back to the early 1990s. He said that park and property owners suggested discussion on mixed -use development at the three sites proposed in 2004. Staff anticipated considering this type of use though a specific plan process but at a joint City Council /Planning Commission workshop in August 2008 there was general agreement to use a comprehensive PUD modification with extensive public input facilitated by a task force. He explained that none of these goals have been accomplished to date because the General Plan needed to be adopted first. Staff has tentatively scheduled a discussion for one of the coming November meetings, at which time the Council will decide on the subcommittee and further details of the process. He said that the Council is being asked to consider this rezoning, which does not approve any specific development plans, ahead of the PUD process because of the pending litigation. Mr. Dolan reviewed the proposed sites which are currently zoned Planned Unit Development and allow industrial, commercial, and office use. The rezoning would remain Planned Unit but would allow mixed -use which essentially adds a residential component to the list of possible uses. Site 1, known as the W.P. Carey site, is 11 acres and carries a potential for 330 units. Site 2, the BRE site, is 8.2 acres and would allow 246 units. Site 3, the Roche site, is 12.4 acres and would support 372 units. He noted that all three sites are within a half -mile radius of the BART station, making them prime candidates for transit oriented development (TOD). Mr. Dolan said staff has prepared an ordinance which responds to the requirements of the state by requiring a minimum density of 30 units per acre and also makes specific findings relative to the deferment of the approval of any development plan until the PUD modification is approved. He advised the Council that, independent of pending litigation, the upcoming planning process, or RHNA, the fundamental question with any rezoning is whether the proposal is consistent with the General Plan. Staff has identified 12 specific goals and programs that identify and support this action. Staff also found the proposal to be consistent with the major themes that permeate all elements of the General Plan and noted that Hacienda's land use designation within the General Plan was changed to Mixed Use to facilitate this specific kind of consideration. Mr. Dolan said that, in addition to its consistency with the General Plan, the proposal would rezone one of the City's optimal locations for both fulfilling housing obligations and meeting the General Plan's development criteria. He said this location is ideal in terms of the opportunity for high- density mixed -use development near transit, potential to add housing stock for employees, and the resulting increase in competitiveness of the park. He said that the park and its property owners have expressed specific interest in this type of development. City Council Minutes Page 4 of 25 October 20, 2009