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1. Make the findings for the proposed PUD rezoning and development plan and Vesting Tentative Map and CEQA determination as listed in this staff report; and 2. Adopt a resolution recommending approval of: (1) rezoning the three parcels totaling approximately 31,798 square feet from RM -1,500 (Multi - Family Residential) to PUD -HDR (Planned Unit Development — High Density Residential) District; (2) the PUD Development Plan to retain and relocate the existing single - family residence on -site and construct 10 two - story townhomes and related site improvements, subject to the conditions of approval listed in Exhibit A; and (3) Vesting Tentative Map 8326 to allow the subdivision of the three parcels into 11 residential parcels plus one common area parcel, subject to the conditions of approval listed in Exhibit A.1, and forward the applications to the City Council for public hearing and action. EXECUTIVE SUMMARY Todd Deutscher, with Catalyst Development Partners, is proposing to construct 10 townhomes and retain and relocate the existing historic home on the project site. The Planning Commission reviewed a preliminary development application for the project site at the March 23, 2016, Planning Commission Work Session meeting, discussed in more detail later in this report. The applicant has revised the project based on direction from the Planning Commission and staff in addition to public comments received at the Work Session. The formal development and tentative map applications are now before the Planning Commission for consideration. In general, staff believes this is a project that will protect a significant historic resource and provide additional Downtown housing in a way that is sensitive to the surrounding neighborhood. BACKGROUND /HISTORY Preliminary Review On August 25, 2015, the applicant submitted a Preliminary Review application to retain the existing historic dwelling and construct 13 three -story townhomes at 536 and 550 St. John Street and the vacant parcel to the east of 536 St. John Street (for ease of reference, these three parcels are referred to as 536 St. John Street, or "project site," in this report). This initial submittal included relocating the existing dwelling unit from the center of the project site to the northeast corner and reorienting it 90 degrees such that the front no longer faced St. John Street, and constructing 13 three -story townhomes in a motor court type of development (Figure 4, in the Project Alternatives section of this report). After reviewing the application, staff provided the applicant with a letter discussing concerns related to the layout of the units, orientation of the relocated home, aesthetics, architectural styling and the need for the design of the units to be consistent with the Downtown Specific Plan policies and Downtown Design Guidelines (staff notes that elevation drawings were not provided with the Preliminary Review application), lack of private /group open space, and lack of guest parking. Specifically, the initial preliminary layout was not pedestrian- oriented, did not reflect historic patterns of development typically found in the Downtown area, and the proposal diminished the street presence of the historic home by changing its orientation from street - facing to side - facing. Alternative Design Discussions Over the next several months, staff and the applicant discussed alternative design concepts for the subject site that addressed staff's concerns (see Project Alternatives section). This included reducing the number of units and relocating the existing dwelling unit to another Downtown property. On January 29, 2016, the applicant resubmitted preliminary drawings to demolish the existing non - historic home at 4372 Pleasanton Avenue, relocate the existing single - family P16 -1201, PUD -120, & TRACT 8326 Planning Commission 2 of 32