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commitment, staff anticipates some projects to be developed in that parking area and hopes to be able to work something out with Kaiser. Mr. Dolan stated that in light of the fact that they do not know the final outcome of what that trail will be, it doesn't make sense to build it and then tear it out and rebuild it when it ends up half-constructed on the other property. He said staff has discussed with Kaiser the possibility of setting aside some money to contribute to that project but this has not been negotiated. There were also some grant sources which were forwarded to the Council today; however, some require the City to have a certified Housing Element, which he said will be a challenge over the next several months. However, others do not and the area will not be left as dirt in the interim. The landscape plan includes a row of trees and there will be some sort of semi-permanent surface even if it is turf for the short term. Councilmember McGovern questioned and confirmed that those living in the project will ultimately be able to connect with each other and to the BART station in the Hacienda Business Park. Mr. Dolan noted there is a segment between the two projects where others will need to cooperate, and staff's hope is that the segment will be filled in through discussions with Kaiser. He commented that this would work out perfectly if Shaklee would provide a 10 foot easement, although they are not coming in with any development and the City would have to request this. Councilmember McGovern clarified with Mr. Dolan that staff has been working with Kaiser and is optimistic the issue can be resolved. • PUD-81-30-86D: Application for a PUD (Planned Unit Development) Development Plan to construct a high-density residential development containing 247 residential units and four live/work units at the property located at the northern corner of Gibraltar Drive and Hacienda Drive Mr. Dolan explained that Site 2 is in the Hacienda Business Park as well, is nearby large buildings, is not far from the other site, and also has one frontage across Hacienda where there is existing residential development. He presented a slide of the site's internal open space, and described the project as 10 residential buildings with a total of 247 residential units, 4 live/work units, a fitness center, club house and leasing office. The architecture is somewhat different with a more residential feel because of its proximity to residential which is carried throughout the project. Mr. Dolan presented the site plan and said almost all buildings are three stories along Hacienda which is one story higher than across the street. However, there is necessity to go above the two stories to achieve the density required. He said the open space is in the middle of the project and there are three, four-story buildings which are located away from the residential, with two buildings located in the rear of the project. Mr. Dolan said he was not sure whether one would perceive all of the volume from Gibraltar or Hacienda and pointed out the two entrances to the project; one from Hacienda and the main one on Gibraltar. On the corner are the live/work units that could ultimately transition to retail. There is an exception requested here; the guidelines said that 50% of the frontage of Gibraltar was supposed to be in live/work units and this is shy of that standard. Staff did not necessarily realize the frontage would be reduced with the inclusion of a .55 acre public park, and how the guideline is applied to a reduced frontage is something staff needs to work through. But, it is a request for an exception. If the City were to comply with the letter of the law, the live/work would have to be added to the second building along Gibraltar. Councilmember Sullivan asked and confirmed that the project includes the narrowing of Owens and Gibraltar and new configuration of parking and islands. He also questioned whether the developer was paying for this as part of the project, and Mr. Dolan explained that the City will be asking the developer to pay for everything that happens on their side of the median on Owens Drive. The narrowing will not occur on the other side until BART comes forward. On Gibraltar, it is the same way; the City ends up City Council Planning Commission Page 3 of 11 February 8,2012 Joint Workshop Minutes