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2. Approve P16-0588, Design Review, subject to the recommended conditions of approval in Attachment 1, Exhibit A and revised project plans in Attachment 1, Exhibit B; and 3. Approve P16-0587, five growth management unit allocations for the project. FINANCIAL STATEMENT The project would be expected to generate revenue (taxes and fees) to cover costs for 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, and water/sewer connection fees) that will be used to offset the cost of additional demand for City facilities and infrastructure. DISCUSSION The attached Planning Commission and City Council staff reports provide detailed background information and a detailed discussion of the previously-proposed application, including project compliance with the General Plan, Downtown Specific Plan, underlying zoning regulations, and other issues. At the February 2, 2016 Council meeting, Council indicated support for the project, but requested that the following modifications be incorporated into the project plans: (1) reduce the building mass; (2) adjust the proposed building color; (3) increase on-site parking; and (4) reduce the need for in-lieu parking payment. Below is a brief summary of the changes made to the previous proposal to respond to Council's comments: Building Massing and Color • The project is now split into two separate buildings as opposed to one • Prior proposal included one approximately 4,074-square-foot commercial/office building with one approximately 1,225-square-foot, attached apartment, and four attached, three-story multi-family residential units (approximately 2,015 square feet in area each) • Currently-proposed front building includes approximately 1,822 square feet of retail and office space with two attached, three-story multi-family residential units • Back building includes three attached, three-story multi-family residential units • Multi-family residential units are approximately 1,988 to 2,482 square feet in area • The perceived mass and scale of the buildings' second and third levels have been reduced through a variety of changes including: o Wall plane setbacks including the second-story of the building fronting on Spring Street, movement and alternating articulation o Increased use of awnings and trellises (all elevations) o Increased use of balconies and decks (all elevations) o Variation in window shapes (both curved and straight line) o Variation in roofline forms (sloped elements and flat elements) • The primary building color has been modified from white to gray as shown on Plan Sheet M1 (Attachment 1, Exhibit B) Page 2 of 4