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The comments received at the November 18, 2015 Planning Commission meeting were generally supportive. There were some objections noted regarding the building height. The Planning Commission focused their review of the project on removal of the parking and commensurate compensation, the compatibility of residential uses in the Downtown area, and the building height. The Planning Commission voted unanimously to approve the project, including a Condition of Approval for carriage style garage doors and payment of in-lieu fees for the loss of on-street parking (for up to three spaces), but did not approve payment of in-lieu fees for off-street parking. Staff noted the competing policies in play in relation to the project and the City's General and Specific Plans. The project does provide good urban design, second story residential uses, and the new commercial uses in the proposed plaza to add to the vitality of the Downtown area. Staff recommends the developer pay the in-lieu fees. Mayor Thorne stated that he wanted all potential owners of the project to be aware of the Downtown Vitality Zone and to ensure that the construction on the project is noise attenuated, there are train tracks, and there is a restaurant use close by. He inquired as to whether a Condition of Approval could be included for noise attenuation. Staff responded that they will require the deed of sale for all lots include disclosure statements regarding proposed Condition 22. In response to an inquiry from Councilmember Narum, staff noted that if the applicant was willing to upgrade the streetscaping to make it more uniform with the adjacent areas, City staff would work with the applicant to ensure design details are compliant as it is a public right-of-way. Staff stated that it did not want to tie the upgrade of the streetscape to the permitting process, but rather to the Certificate of Occupancy. Staff would prefer to leave flexibility for this aspect of the project and have it approved administratively through staff. Councilmember Pentin stated that he does not want to have the streetscape project delayed due to the Specific Plan update. Councilmember Narum inquired as to the process required to convert certain areas of the project, such as the small house, back to residential use if necessary. Staff noted a Planned Use Development modification would be required to allow for residential uses in that area and they would try to do it as a minor modification, noting the significant investment to revert the project back to residential. Councilmember Brown inquired as to whether there is a potential to allow a higher fence for three (3) of the structures that have only a three (3) foot setbacks, in order to preserve privacy. Staff noted that the developer designed the windows to be sensitive to privacy concern, and although staff generally discourages higher fences, they would support it in this case as it would be a "benign" structure. Staff further noted that the intent to limit building height is not to limit all structures in this area to two (2) stories, but rather, to recognize the design difficulties in meeting regulations with a three (3) story structure in this area. The Mayor opened the public hearing. Bryan Bowers, applicant, stated that the proposed mixed-use project was designed to bring added vitality to the Downtown area and noted the design features of the commercial retail plaza. He affirmed that the infill project meets General Plan and Downtown Specific Plan objectives and that their proposal has 50 policy recommendations. He noted that the proposed project was designed to minimize height, preserve the existing structure, maximize the on-site parking, and maximize the outdoor plaza. The project's height is well under the 40-foot maximum for the CC District. He stated that parking could be saved if the residences were pushed out to the street; however, they wanted to be sensitive to those impacts. They do not want to be punished with additional in-lieu fees due to their conscientiousness with the project's design. He requested that the project be included in the CC zoning, that they be City Council Minutes Page 5 of 15 December 15, 2015