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(1) The buildings are pedestrian in scale, and include features such as first-story storefront windows, recessed entries, building details, and awnings; (2) Buildings are designed to minimize their three-story appearances through use of techniques such as dormer windows, stepping back upper floors, and using design features between building levels to assist in maintaining an overall horizontal design character to the building; and (3) Buildings must conform to the City Municipal Code height limits. In addition, the applicant revised the plans multiple times to improve the finish material quality (smooth cement plaster, awnings, etc.) and to add architectural interest (storefront windows at the street level, decorative and varying roofline parapets, etc.), wall plane articulation (variable second floor wall planes, dormer elements, etc.), and movement on the front and rear elevations. Parking The existing building totals approximately 910 square feet in area. The applicant is proposing to demolish the existing 910-square-foot building on-site and construct a new 4,074-square-foot two-story commercial/office building, resulting in a net increase of approximately 3,164 square feet of commercial/office uses on the subject parcel. The Municipal Code requires that the applicant provide 14 parking spaces for the proposed commercial building area (based on a 1 space/300 sq. ft. ratio). However, pursuant to Municipal Code Section 18.88.020 (D2) the subject project could receive a parking credit for the existing, demolished building area if one of the following conditions is met: a) the approving body determines that the replacement structure would have the same architectural style as the original structure in terms of design, materials, massing and detailing, or b) the approving body determines that the replacement structure will be an architectural improvement compared to the existing structure and will preserve or enhance the overall character of the area. While Staff believes that the proposed building meets the criteria in "b" above, and recommended that the applicant receive a parking credit for the 910 square feet of demolished area (equal to three spaces), the Planning Commission did not concur with this recommendation because it believed the in-lieu parking being requested by the applicant was excessive. Instead, the Planning Commission modified the recommended conditions of approval, did not grant the parking credit for the three spaces despite voicing support for the architectural design of the new building, and required the applicant to pay the in-lieu fee for the three subject spaces (a total of 10 spaces). The applicant is proposing four dedicated on-site parking spaces for the proposed commercial building. Taking into account the three-space parking credit described above and the four dedicated on-site parking spaces, City Council approval would be required for an in-lieu parking agreement for seven spaces (the in-lieu parking fee is currently $19,117.69 per space). Page 8 of 11