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Mayor Thorne asked and Mr. Bocian confirmed that Alternative 3 does not preclude the Council from using the $3,458,000 for affordable, senior or special needs housing. Mr. Bocian added that staffs perspective is that these funds could be used for any purpose that the Council sees fit, including the broad range of things spelled out in the LIHF. Vice-Chair Pentin asked and Mr. Bocian confirmed that inclusionary requirements are no longer set in stone as a result of the Palmer case and other similar cases, and that the AHA includes an agreement by the developer to either provide the units or pay the negotiated fee. Councilmember Narum asked and Mr. Bocian confirmed that the Lower Income Housing Fee being used to determine the contribution to the LIHF is supported and was determined to be appropriate by the recent nexus study on the city's affordable housing fees. Mayor Thome opened the item for public comment. Arne Olson, Planning Commission, said he favored Alternative 2 because of its more definitive contributions toward affordable housing solutions. He said he would particularly like to see these funds used to support senior affordable housing, which is a clear and pressing need for this community. John Pringle, applicant, commended the city on its negotiation of an in lieu fee that is 4.5 times that required in the IZO. He requested the Council's support for Alternative 2 or 3, which provide a long-term benefit to the property and create an incredible opportunity for the city to leverage funds in a way that benefits a broader community demographic. Scott Raty commended the Council and staff on their management of the current drought challenge. He shared his support for Alternative 3 as it provides the greatest level of flexibility and still allows for financial support of affordable housing and BMR units. He encouraged the Council to take the time afforded by this option to consider the city's changing priorities in the context of opportunities that can have a broad impact on the community in addition to supporting affordable housing. Mayor Thorne closed public comment. Mayor Thome said he was especially concerned with what is a clear shortage of senior housing in this community. He said he would like to ensure that the Council has the opportunity, whether it is through Alternative 2 or 3, to use these funds for something like senior or disabled housing that doesn't heavily impact traffic or schools. Councilmember Cook-Kallio advocated for Alternative 1, noting that little has actually been actually been done with the LIHF to support affordable housing in her time on the Council. She acknowledged the extreme generosity of the in lieu fee but said it does little good just sitting in the LIEF. She expressed concern that people have a tendency to focus on affordable housing for specific groups such as seniors or the disabled when workforce or entry-level housing is also a very real and pressing need. She also expressed concern over reducing the RHNA surplus by 27 units and thought it was unrealistic to assume that the current Housing Element site inventory would be accepted as proposed. She said the city has very laudable goals in terms of working with non-profits to provide affordable housing but noted that no steps have been taken in that direction and said again that she would like to see actual units constructed rather than wait for what might not come. MOTION: It was moved by Cook-Kallio to accept Alternative 1. Motion died for lack of a second. Councilmember Brown said she supported Alternative 3 as she believed the Council should have the flexibility to determine how these additional funds should be spent, which would include facilities and amenities to support the needs of families residing in multi-family developments like this project. City Council Minutes Page 8 of 12 September 16, 2014