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RECOMMENDATION 1. Make the PUD findings for the proposed development plan as stated in the July 13, 2016, Planning Commission staff report (pages 22-25 in Attachment 4); 2. Introduce the draft ordinance approving Case PUD-118, Certificate of Appropriateness and PUD Rezoning and Development Plan, subject to the conditions of approval, Exhibit A (Attachment 1); 3. Adopt a resolution approving the Growth Management Agreement (Attachment 2) for six growth management unit allocations (P16-0203) for the project; and 4. Find that the proposed project was adequately analyzed in the certified Environmental Impact Report (ER) for the Downtown Specific Plan and no further environmental review is required pursuant to the California Environmental Quality Act (CEQA). FINANCIAL STATEMENT The project would be expected to generate revenues to cover its costs of service. Increases in property and sales taxes would be used to provide services, such as police and fire services for the increased demand generated by the homes and office/retail space. The applicant will be required to pay development impact fees that will be used to offset the cost of City facilities and infrastructure necessitated by the development. BACKGROUND On January 21, 2016, the applicant submitted applications for a certificate of appropriateness to demolish all on-site structures and a PUD Rezoning and Development Plan application to construct one, three-story mixed-use building with approximately 952 square feet of office/retail space on the first-floor and three apartments on the remaining second and third floors, and three, three-story detached single-family homes on the subject site. Staff was concerned that the initial proposal lacked consistency with the site's Downtown Specific Plan Office land use designation because it contained a small amount of ground floor office space and was primarily residential in nature. The project was reviewed and discussed at a Work Session with the Planning Commission held on May 25, 2016. The Commission supported the project, but indicated that the design should be modified to better conform to the intent of the Downtown Specific Plan. Suggested modifications included modifying the project to add additional ground-floor commercial space in the residential building proposed in the southwest corner of the site (Residence 1), and re-designing this ground-floor space to look more like a commercial space (e.g., large storefront windows and a separate entrance allowing access into the commercial space). The Planning Commission indicated that these changes would bring the proposed project further into compliance with the Downtown Specific Plan. The Commissioners also provided direction on the project's parking and design as detailed in the Work Session section of the attached Planning Commission staff report (pages 2-4 of Attachment 4). On June 28, 2016, the applicant submitted revised plans that incorporated office space (ranging from 180-194 square feet in area) on the first floors of the three detached single- family homes and modified the south elevation of Residence 1 in order to create a stronger office/retail presence along Old Bernal Avenue. After publication of the Planning Commission Page 2 of 14