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ordinance approving a Planned Unit Development (PUD) Rezoning and Development Plan to rezone the site from the C-C (Central Commercial), Downtown Revitalization, Core Area Overlay District to a PUD-HDR/C-C District, to convert the existing single-family residence into a commercial use building including site and exterior building modifications, and to construct three new, 2,400-square-foot, three-story detached single-family residences. Planning Manager Adam Weinstein presented the staff report and provided a PowerPoint Presentation. He gave an overview of the project as outlined in the agenda report, noting that this item requires significant amendments to land uses designated in the City and will require customized special considerations about the fit of the project into the Downtown area. The project is a horizontal mixed use project with residential on the northern side and commercial on the southern side. The project will include alternate sources of access and there will be a publicly accessible, but privately owned, plaza. The Spanish revival architecture proposed is in line with the Downtown design guidelines and allowable architectural styles. Staff and the project applicant have been working on this project for approximately 2 years and several positive changes have been made over time. These include the removal of a unit, preservation of on street parking space on Peters, a refined list of commercial spaces and introduction of higher-grade architectural elements. Staff reviewed the key issues of concern related to the project. The first issue reviewed was parking, including the removal of parking spaces. Staff outlined the Municipal Code requirements for parking spaces and the work done by the Traffic Engineering Division. At this point, two (2) on-site spaces and two (2) on-street parking spaces would be lost. Patrons of the project's commercial uses would have to park elsewhere. A matter of concern is the in-lieu parking fees that should be paid by the developer and how that amount should be established as there are no provisions in the Municipal Code regarding in- lieu fees to be paid for loss of on-street parking. It is staff's recommendation that there should be at least a minimum of in-lieu fees for the two (2) lost on-street parking spaces, however Council could elect to impose up to five (5). In response to an inquiry from Councilmember Brown, staff noted that the Municipal Code could be interpreted so that the applicant could be required to pay in-lieu fees even though the two (2) spaces in front of each garage are not publicly accessible. Staff described the issues of concern related to the maximum heights allowable in the project area. Currently, the project as proposed is over the thirty (30) feet recommended in the Downtown Specific Plan. A Code Amendment would be required to impose a two (2) story thirty (30) foot residential height limit downtown. Currently, forty (40) foot structures are allowed Downtown, however, due to conflicting policies, urban design principles, and desires to accommodate mixed-use development in this area, the proposed height for the project is acceptable to staff. Staff expressed support for the proposed project's good design details and retention of the Spanish revival architectural style. Staff described various policies currently in place that may impact the approval of the project. These include the Downtown Hospitality Transition District guidelines, programs and objectives in the Downtown Specific Plan, and the Business Vitality Policy. Staff noted that small sites are harder to develop while preserving all of the required Downtown features. The project as proposed involves • resolving many competing policies conflicts, but meets many Downtown objectives. Staff reviewed the public comments that have been received on the project, which have been generally supportive. The objections have been related to parking impacts, the appropriateness of residential units in the Downtown area, aesthetic compatibility, and building height. Staff affirmed that the Pleasanton Downtown Association (PDA) supports the project and the Pleasanton Heritage Association (PHA) provided no formal position on the project. City Council Minutes Page 4 of 15 December 15,2015