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Planning Manager Stern said there have been studies on the types of retail uses that should be allowed, but no specific ratio of one versus others has been established to staff's knowledge. Councilmember Cook-Kallio said she supports the idea behind the proposed amendment and appreciates that it re-examines, rather than prohibits, financial institutions. She referenced the attached letter from Peter MacDonald and noted that he only mildly opposed the amendment and that some of the concerns he expressed were addressed by the staff report. She also noted that the Council has repeatedly discussed the need to revitalize the downtown by increasing certain types of active retail and said she could support it for that reason. Mayor Hosterman opened the public hearing. Nancy Allen spoke in support of the proposed amendment and agreed that it makes sense to begin looking at a more strategic zoning effort rather than one-off efforts such as this. Mayor Hosterman closed the public hearing. Councilmember Cook-Kallio said she would prefer more positive language and proposed the following change: "Where possible, encourage retail business on corners that add to the vitality and pedestrian interest in the downtown." Councilmember Thorne said he fully understood the need to attract businesses that contribute to the vitality of the downtown but that he still had serious concerns that the ordinance complicates matters more than is productive, particularly as there are already two task forces examining downtown guidelines. He felt it would be more productive to focus on providing incentives, particularly with respect to fees, to the right kind of businesses rather than discouraging others. He could support the amendment with a sunset clause in order to allow staff and the task force time to update the Downtown Specific Plan and streamline things in a way that makes sense. Councilmember Sullivan said he supported the concept but would like to see stronger language prohibiting, rather than discouraging, financial institutions in the locations identified. He agreed with the need for a more comprehensive look at uses downtown and said he could support the proposal, with this stipulation and the recommended amendments. Councilmember McGovern asked that the minutes reflect that the amendment does not preclude other uses from occupying a former financial establishment, even within the 180-day period. City Manager Fialho provided clarification on several comments relating to Pastime Pool. He explained that the proposed amendment came about largely because the property owner was approached with an opportunity to lease the space to a financial institution and command a significantly higher rent. Staff is not suggesting that it disagrees with the property owner leaning in that direction, just that the City would like the ability to look at certain locations and make an informed decision about whether or not it meets the goals of a vital downtown. Pastime Pool is a longstanding establishment and while one could argue that it could be in better operation, it serves a specific purpose and is a prime location for the types of uses that need this level of sewer capacity. There was a fear that, because of commanding rents, the city may lose the opportunity for any kind of retail or nighttime activity to return to this location. He agreed with the need for strategic zoning updates, which could be done in the context of a Specific Plan update, but he asked that the Council recognize that the process is not one that can begin in the immediate future. The Council and staff voiced support for the language proposed by Councilmember Cook-Kallio as well as the ground floor reference and 180-day period recommended by staff. City Council Minutes Page 5 of 11 May 1, 2012