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For further discussion on these topics, please see the Planning Commission meeting minutes (Attachment 3). After listening to public testimony and discussing the project, the Commission, on a 3-2 vote (Chair Allen and Commissioner O'Connor dissented), voted to recommend approval of the project subject to staff's recommended conditions (Exhibit A, Attachment 1) as revised to require the applicant to pay for the cost of 10 in- lieu spaces instead of seven spaces and to increase the height of the solid-wood fence along the northern property line from six feet to eight feet. The Planning Commission did not support granting the applicant a parking credit for three spaces for the floor area of the demolished structure as may be allowed per the Municipal Code because the amount of in-lieu parking requested was deemed excessive for a Downtown location. Please see Attachment 3 for more details related to public testimony and the Planning Commission discussion. DISCUSSION The Planning Commission staff report (Attachment 2) dated December 9, 2015 provides additional background information and a detailed discussion of the proposed application, including project compliance with the General Plan, Downtown Specific Plan, underlying zoning regulations, and other issues. As discussed in more detail in the Planning Commission staff report, the Downtown Specific Plan land use designation for the subject parcel is "Downtown Commercial," which allows pedestrian-oriented commercial and upper floor office and residential uses (i.e., ground floor residential uses are generally not desired). Staff believes that the project includes a substantial pedestrian-oriented commercial presence in the street-facing portion of the site that meets the intent of the Downtown Commercial designation, even though ground floor residential uses are located behind the commercial use, away from Spring Street. This report includes supplemental discussion specific to building height, architectural design quality, and parking pursuant to the Planning Commission recommendation. Building Height and Design The proposed commercial/office/residential building and four, three-story, multi-family residential units are attractive, well designed and would be a significant architectural improvement compared to the existing building on the subject parcel. The proposed buildings have an appropriate scale and mass for Downtown Pleasanton; the proposed windows and gabled roof parapet elements add interest to the design and reduce perceived mass. The buildings' colors and materials will be compatible and complementary with other buildings in the Downtown. During the review process, the applicant reduced the height of the proposed multi-family units to 30 feet, which is considered acceptable in most residential zones within the City. These revisions make the plan consistent with Downtown Specific Plan Land Use Policy No. 1 that states: "In order to preserve the historic character of the Downtown, new or remodeled buildings within the Downtown Commercial area should be limited to two stories, except three-story buildings may be allowed on a case-by-case basis provided: Page 7 of 11