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BACKGROUND The subject site is located in the Downtown Specific Plan (DTSP) Area and was formerly a portion of a larger 2.1-acre parcel considered one of the potential high-density residential sites during the City's General Plan Housing Element update. The site was ultimately not selected for rezoning to high-density residential uses. The General Plan and Specific Plan land use designations for the subject site are Medium Density Residential. On August 20, 2013, the City Council approved a Planned Unit Development (PUD-97) for Ponderosa Homes, which included the rezoning of the larger 2.1-acre parcel, removal of 32 existing mobile home spaces and related accessory structures, construction of 12 new detached single-family homes, and retention of the existing home on the subject site. The Council also directed staff to process General Plan and Specific Plan Amendments and a PUD Rezoning to allow for limited commercial, personal services and/or office uses within the existing home (e.g., law office, counseling services, consulting services, beauty salon, etc.) on the site. In addition, the Council approval required Ponderosa Homes to complete at least $30,000 worth of improvements (new roof, exterior paint, and landscaping) to the existing home and its designated lot prior to occupancy of the 12 project units. However, if the existing home was sold to a new owner prior to issuance of building permits for the 12-unit project, then Ponderosa would not be responsible for the cost of improving the house and its designated lot, but would be required to pay $2,500 per new unit ($30,000) into the Bernal Park Reserve Fund. Subsequent to the PUD approval, the subject site with the existing home was subdivided from the rest of the Ponderosa Homes site and sold to the current property owner. Therefore, Ponderosa Homes was not required to complete the improvements to the existing home and paid $30,000 into the Bernal Park Reserve Fund. However, the current property owner submitted a staff-level Design Review application to make improvements to the existing house, and the application is currently being reviewed by staff. The proposed General Plan and Specific Plan amendments and PUD rezoning require review and recommendation by the Planning Commission and action by the City Council. SITE AND SURROUNDING AREA DESCRIPTION The subject site is approximately 0.23 acres (9,799 square-feet) in size and is located on the south side of Stanley Boulevard (Figure 1) in a transition area between the Downtown Commercial area and residential uses to the east. The site is relatively flat and is developed with an existing 1,937-square-foot residence built in approximately 1912. A historic evaluation of the house was conducted as part of the review of PUD-97, which determined that the house lacked integrity and was not eligible for listing in the California Register of Historic Resources. Nevertheless, the Council determined that it added to the charm of Downtown and was worth preserving. The approved use for the site pursuant to PUD-97 is single-family residential. P14-0419/P14-0420/P14-0421 Planning Commission 2 of 10