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BACKGROUND In November 4, 2003, in response to an interest expressed by a group of residents, the Council authorized staff to begin studying the potential for the replacement, expansion and /or renovation of Kottinger Place, and Pleasanton Gardens which is a privately owned 40 -unit affordable senior development located at 251 Kottinger Drive. To assist with this project, in February 2004, the Council approved the formation of a ten member Kottinger Place Task Force (Task Force). The Task Force's membership includes 5 at- large members, 2 members from the Housing Commission, 2 members from the Board at Pleasanton Gardens and 1 member from the City Parks and Recreation Commission (Commission). At your meeting of December 1, 2009, the Council held a joint workshop with the Task Force during which it presented a joint Task Force /staff predevelopment report that recommends, in part, moving forward with selection of a non profit developer to further pursue a new 150 unit development on the current Kottinger Place site that will replace both the existing Kottinger Place and Pleasanton Gardens developments. The report also recognizes the need for additional analysis related to parking requirements, architectural design, landscaping, rent levels, final unit count, building height and location of three story structures, if any, and the overall integration with the neighborhood. During the course of the joint workshop it became apparent that the Council had interests in assuring that neighborhood issues were addressed, that the feasibility of rehabilitating the existing units was explored more thoroughly and that density and building height options remained flexible. In response, following the joint workshop, staff met with representatives from the Task Force and the Pleasanton Gardens Board of Directors and developed the policy objectives that commit to addressing the interests of all parties in a way that enables continued work on the project. Based on agreement from the Pleasanton Gardens' Board, staff is recommending moving forward with the activities outlined in the Policy Objectives. DISCUSSION The Policy Objectives are intended to guide the next phase of this process which may conclude with a decision by the City Council to proceed with a PUD application for the development. A summary of some of the more notable objectives and actions include the following: A recognition that it is beneficial for the Council, Task Force, Pleasanton Gardens, and staff to work with nearby residents To further evaluate the potential for rehabilitation of existing units Authorizes staff and the Task Force to prepare a Request for Qualifications (RFQ) to select a non profit developer to begin preparation of preliminary project plans, financial options, and annual operating costs Assures that the preliminary plans address issues identified by the Task Force including adequate parking, proposed elevations, noise concerns and integration with Page 2 of 3