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BACKGROUND AND PROJECT DESCRIPTION Valley Business Park was approved under Ordinance No. 928 by the City Council on March 11, 1980. The Planned Unit Development plan and the Covenants, Conditions, and Restriction's (CC&R's) for Valley Business Park conditionally permit daycare centers. For the Council's consideration, the CC&R's can be found in Exhibit D of Attachment 3 (Planning Commission staff report). Valley Business Park has a mix of uses that include, but are not limited to; professional offices, light manufacturing and industrial uses, and other uses, such as religious facilities, private schools, and cheerleader training and other sports and recreational facilities. The subject building is currently occupied with professional office uses, with one suite being occupied by a dental equipment manufacturer. The adjacent building (1024 Serpentine Lane) is occupied by office and medical office uses. As required per the PUD, Summer Bowers submitted a Conditional Use Permit application requesting to operate a State-exempt child care learning and enrichment center (Summer Time Learning) for children ages 4 to 7 years old during the summer months (June — August) within Valley Business Park. Although Valley Business Park denied Mrs. Bowers application, she requested that the City review and take action on the subject Conditional Use Permit. Staff notes that although the Board rejected the proposal, the City was required to process the application in accordance with the Pleasanton Municipal Code. Please refer to the Planning Commission staff report (Attachment 3) for additional background and project information. PLANNING COMMISSION ACTION The Planning Commission held a public hearing on June 8, 2011, where it considered staff's recommendation and public testimony regarding the subject Conditional Use Permit. Two representatives of the Board spoke at the hearing. The Board's representatives stated that the Park was not an appropriate place for this type of use and that the Board would no longer be approving child-oriented uses. The Planning Commission discussed whether they should take action on the application given the fact that the Park's Architectural Review Board did not approve the use; however, the Commission followed PMC section 18.04.030(B) which provides that the City is to look to its zoning codes in reviewing an application and not CC&Rs or other private agreements. The Planning Commission also suggested to the Board that if they no longer wanted child-oriented uses in the Park, that they could apply for a PUD modification so that these uses would no longer be allowed. After considering all public testimony, the Planning Commission approved the application. The Planning Commission meeting minutes can be found in Attachment 4 for the Council's consideration. DISCUSSION The Board feels that the City's approval violates their CC&R's because the Architectural Review Board denied the applicant's requested use. Section 3.2.2 Neighborhood and Support Commercial Use (ri)(1) of the CC&R's (Exhibit D in Attachment 3) states that daycare centers are conditionally allowed if approved by Valley Business Park's Architectural Review Board. Although the Board denied the applicant's request, the City Page 2 of 4