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Chair Pearce summarized the Commissioners thoughts and noted that the Commission was concerned about the plan, "or lack thereof," for the house, and the concern about, not only the house's location to the street but with regard to this project and its gateway aspect. Therefore, the Planning Commission recommend denial of the application on a 4-0 vote (Commissioners Olson and Posson were absent). DISCUSSION Since the July 10, 2013, Planning Commission meeting, staff and the applicant have agreed upon two options to present to the City Council for review and action. Option 1 is similar to what was presented to Planning Commission; however, Ponderosa has incorporated a private, pedestrian pathway and instead of allowing residential uses, limited commercial personal services and/or office uses would be allowed to occur within the existing house on Lot 13. Option 1, as a residential project, has been designed in conformity with the General Plan and Downtown Specific Plan. Should the Council decide to approve Option 1, the Council would not be approviig a change the Downtown Specific Plan and/or General Plan Land Use designations and the applicant and/or property owner, would later have to apply for a: 1) PUD modification to amend the zoning to allow limited, commercial personal services and/or office uses; and 2) Downtown Specific Plan and General Plan amendments to change the Land Use designation from residential to a special limited, commercial personal services/office designation. Until such an application is filed and approved by the City Council, Lot 13's use would remain residential. Furthermore, since the existing house contains one illegal unit on the second-floor, action on Option 1 would legalize Lot 13 as two units. Ponderosa has also agreed to invest a minimum of $30,000 in landscaping the lot, and re-roofing and painting the existing home instead of paying that amount into the Bernal Sports Park fund. To ensure the work is completed by the applicant, staff has recommended a condition of approval that requires Ponderosa to complete the landscaping and building improvements prior to occupancy of the project homes. Option 2 would allow Ponderosa to demolish the existing house and construct 14 new single-family homes. This option also has a private, pedestrian pathway in addition to providing an area adjacent to the pathway that will accommodate two additional off- street parking spaces and a small common landscaped area. The house designs and development standards would be the same as those proposed in Op!:ion 1. Option 2 has been designed to be in conformance with the General Plan and Downtown Specific Plan Land Use designations. The City's standard condition of approval for the Bernal Sports Park would apply to Option 2 ($2,500/new unit). Should the City Council select Option 2, staff has included draft conditions of approval in Attachment 2 for consideration. The architectural style is the same for both Options, therefore, staff believes that the design of the homes are appropriate for Downtown and the homes wil be an attractive addition to the Stanley Boulevard area. A detailed analysis and discussion of the 13- unit proposal is included in the attached Planning Commission staff report (Attachment 6) including: General Plan and Downtown Specific Plan conformity, zoning and uses, site design, retention of the existing dwelling, cultural resources, traffic and circulation, Page 13 of 17