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RECOMMENDATION 1. Find that the project would not have a significant effect on the environment pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines; 2. Adopt a resolution approving P14-1024, General Plan Amendment to change the land use designation for an approximately 0.15-acre portion of 377 St. Mary Street from Retail/Highway/Service Commercial; Business and Professional Offices to High Density Residential (Attachment 2); 3. Adopt a resolution approving P14-1025, Downtown Specific Plan Amendment to change the land use designation of 377 St. Mary Street from Office to Downtown Commercial and High Density Residential (Attachment 3); 3. Find that the proposed PUD Rezoning and Development Plan are consistent with the General Plan; 4. Make the PUD findings for the proposed development plan as stated in the November 18, 2015, Planning Commission staff report (pages 20 through 23 in Attachment 4); and 5. Introduce a draft ordinance approving Case PUD-107, PUD Rezoning and PUD Development Plan, subject to the Conditions of Approval, Exhibit "B" (Attachment 1). FINANCIAL STATEMENT The project would be expected to generate revenues to cover its costs of service. Increases in property tax would be used to provide services, such as police and fire services, to the occupants of the dwelling units and commercial space. The applicant will be required to pay development impact fees (e.g., in-lieu park dedication fee, public facilities fee, traffic fees, water/sewer connection fees) that will be used to offset the cost of City facilities and infrastructure, necessitated by development. BACKGROUND On June 27, 2014, several months after submitting a preliminary development application and revising project plans in response to staff comments, the applicant submitted General Plan Amendment, Downtown Specific Plan Amendment, and Planned Unit Development Rezoning and Development Plan applications to convert the existing single-family residence into a commercial use building and construct three approximately 2,400-square-foot, three-story detached single-family residences on the subject parcel. The General Plan Amendment and Downtown Specific Plan Amendment applications are necessary to change the current land use designations for the subject parcel to allow mixed-use development that includes both commercial and residential uses, while the PUD application is required to allow residential uses on the subject parcel, which currently is limited to commercial uses. The applicant refined the project after several meetings with staff. The current proposal was submitted on October 5, Page 2 of 11