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HACIENDA PUD AND DEVELOPMENT CAP Hacienda was established using the PUD section of the Zoning Ordinance, which recognizes that conditions change over time, including City policy and direction, market and economic conditions and property owner plans. The Zoning Ordinance establishes a PUD modification process that enables changes to a PUD. Hacienda was originally developed in two phases. Phase 1 was established with PUD -81 -30 and covered 573 acres. Phase 2 was established with PUD -85 -08 and covered 260 acres. These two PUD's have undergone numerous changes since their creation. The changes have ranged from small alterations to an individual site plan or architecture, to major modifications that address the requirements of the entire project. Previous Major Modifications have addressed issues relating to FAR, residential uses and the amount of development allowed within Hacienda (the limit or cap on development). Although limits on development have existed since Hacienda's first PUD, the first numerical development cap was set in 1987 and had a not -to- exceed total square footage of 11,755,000 square feet. Subsequent modifications to the PUDs reduced the square footage down to its current cap of 9,889,000 square feet. Reductions in Hacienda's cap have occurred twice and were made at the same time as other changes were made to the PUD. The cap was reduced by 1.4 million square feet in 1992 when 79 acres of land was rezoned to High Density Residential and reduced in 1993 by 500,000 square feet when changes were made to allowed uses within the development. However, rezoning to residential or changing the allowed uses has not always included a reduction in the cap. There are examples of modifications made to the Hacienda PUD when areas were changed to residential without lowering the cap. In 1990, Ordinance 1456 modified the PUD to allow 12.4 acres to be changed to high density residential and the cap remained unchanged. In 1994 FAR's in the Park were increased by Ordinance 1637 and the cap remained unchanged. What is important to note about the recent PUD modifications is the fact that, while the 2011 and 2012 PUD Modifications allowed for the development of High Density Residential, the modifications to the PUDs did not specifically address the relationship of that development with the development cap. The development cap described in the Hacienda PUD excludes residential construction. Ordinance 1596, adopted June 15, 1993, states that all residential areas should be excluded from the calculation of the 9,889,000 square feet as follows: Total Gross Floor Area within the Project shall not exceed nine million, eight hundred eighty -nine thousand (9,889,000) square feet, excluding residential areas, child day -care facilities, transit/public service center facilities, and BART stations and related facilities." However, it is unclear if that language was intended to apply only to the existing and proposed residential projects in 1993, or if it was intended to apply to future residential development in Hacienda. Staff is recommending, based on its review and the environmental impact analysis that assumes the housing element approved residential Page 4 of 7