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BACKGROUND On November 4, 2003, in response to a request from the Housing Commission and 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. To assist with this project, in February 2004, the Council approved the formation of a ten member Kottinger Place Task Force (Task Force). Since that time, staff has been working with the Task Force toward obtaining clarity regarding options for addressing Kottinger Place and Pleasanton Gardens long term needs. In February 2010 the City Council adopted the Principles of Agreement (Attachment 2) for future study of a Kottinger Place and Pleasanton Gardens development, and in accordance with those Principles, in February 2012 the City Council approved an ENRA with MidPen Housing to conduct a predevelopment process and to identify the steps required to proceed with a new or rehabilitated project. The ENRA's scope of work has two tasks: Task 1 includes conducting a predevelopment process and preparing a predevelopment analysis report that explores various development approaches; Task 2 includes conducting a development/entitlement process in accordance with City requirements and a DDA with MidPen. Regarding Task, 1 the ENRA requires review of the following three development scenarios: Development Approach/Option: llncreased Density on the Kottinger Place/ City Sites Only — Conduct an evaluation of the existing physical infrastructure (including water, sewer, and electricity) to determine the feasibility of retaining some or all cottage units as part of a new development and prepare a site plan that incorporates a new two or three story structure with living units on City property at 4138 Vineyard Avenue and the Regalia House and a new two story community building with living units on the second floor to replace the existing Kottinger Place offices. The site plan would identify the removal of existing cottage units, if any, recommended to facilitate the overall development. Development Approach/Option 2: Development on Kottinger Place/ City Sites and Pleasanton Gardens — Prepare a site plan using the Kottinger Place, Pleasanton Gardens, 4138 Vineyard Avenue and the Regalia House sites. The site plan could assume all new units or new units plus the retention of some of the existing cottage units on the Kottinger Place site. Development Approach/Option 3: New Development on Kottinger Place/ City Sites Only Prepare a site plan for a new development on the Kottinger Place, 4138 Vineyard Avenue and the Regalia House sites. The site plan would assume all new units. An overview summary of the three approaches is included in Attachment D. To carry out the Task 1 process, the Task Force, MidPen and staff conducted a number of community meetings and met collectively and individually with tenants of both Kottinger Place and Pleasanton Gardens. As an outcome of this process, the Page 2 of 5