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the rules for development of the site. Staff envisioned that the Nevada Street side of the equation that would look across the new street to the Arroyo in a trail system and be more pedestrian- oriented. The side of the street that has frontage on Stanley Boulevard would be more traditional commercial development with larger pads. They discussed intensity of development envisioned and decided to explore FAR's between .35 and .5 and a scale at two - and three -story development. Mr. Dolan said they also anticipate discussing the possibility of residential and mixed use. They began dialogue several months ago in advance of the upcoming housing element and the need to identify additional housing sites in town. The development anticipates discussing the possibility of residential. Mr. MacDonald has represented that they are open to that possibility and may want to discuss this. Once they have completed the planning process, brought rezonings forward and had a development agreement, the right -of -way would be granted to the City and they could then complete the utility improvements. The road extension would come at the same pace as future development. He said staff therefore recommends the Council support the non - binding agreement. Councilmember McGovern confirmed with Mr. Dolan that Nevada Street will be a two -lane road and that it was important to discuss doing residential first prior to talking about guidelines for commercial. She believed the property could be developed beautifully because of the trail and walkability to the Arroyo and connection to the downtown. She asked how the discussion would be structured if the Council approved this being looked at as a mixed use project as part of the points of the agreement. Mr. Dolan said this could be in the form of direction to staff; the agreement as written acknowledges this as a possibility to be decided upon through the planning process. He suggested the applicant also weigh in on their level of interest. Councilmember McGovern questioned whether the farm house could be something that could be saved and used as part of the trail system. Mr. Fialho stated that the trail is a nice connection to the downtown with the recent acquisition of the corridor that runs to the downtown. The vision ultimately is to connect the area through the Arroyo, to the fire station, and then ultimately to Shadow Cliffs. Vice Mayor Thorne questioned the type of commercial development that might be proposed, and Mr. Dolan said part of it would be neighborhood commercial. The first flush of the agreement talked about a wide range and staff explored the notion of form based codes. He did not think the owners are committed to one type in particular, but rather wanted a range from retail to second -story office and some service uses, and staff would have to visit the appropriate mix if a significant residential component were introduced. Mayor Hosterman opened the public hearing. Peter MacDonald said representatives were present from all three families. They have some history in the valley, stating that the Irby's purchased their property in 1887. In 1919, Mr. Cavestry purchased another property, which is now the Zia /Cavestry property. The Kaplan's may not have owned their property very long, but he said the Kaplan family goes back to 1849 in the Gold Rush era. The presentation is being watched at home on television by Jeanette Irby, and the families agree with the principles of agreement as portrayed by staff. In looking at all three properties, they are all somewhat differently oriented which should be taken into account for some with a more residential possibilities and others with more City Council Minutes Page 7 of 10 May 18, 2010