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Task Force Discussion and Recommendation The Task Force generally supported staff's recommendations but made a further revision to Policy LD-P.16 (with provides provisions for exceptions to the Overlay). The Task Force advised deletion of the limitations on the location and number of non-active uses when granting an exception (in other words, making the findings to grant an exception less stringent). This change was based on the concern that one property owner may be blocked from pursuing a non-active use tenant, based on a prior decision. The final language of Policy LD-P.16 would read as follows, based on the Task Force's direction: Exceptions to Active Ground Floor Use Requirement: The director of Community Development may grant an exception to the requirements of the Active Ground Floor Use Overlay district for uses meeting any of the following criteria: • The tenant space has been vacant for a period of at least 6 months; or • The configuration of the tenant space is such that it would have a storefront frontage of less than 10-feet (as determined by the Director) on a designated active street; or • The tenant is located in an existing, purpose-built building housing a bank or financial institution as its primary tenant/occupant. This version of the policy was approved on a 7-2 vote by the Task Force, with the principal concern for those voting against being inclusion of a special exception for bank buildings. Staff Recommendation/City Council Direction Staff recommends accepting the Task Force's direction on this topic, with inclusion of Policy LD-P.16 as noted above; and with application and the definition of the Overlay as shown in the November 2018 draft DSP. Alternatively, the City Council may consider modifications to the policy, such as removing the exception for bank buildings, to make the criteria for granting an exception more stringent, or to require additional review (e.g., approval by the Planning Commission, rather than the Community Development Director). 3. Ground-Floor Residential in Mixed Use Districts Background The existing Downtown Specific Plan includes two land use designations, "Downtown Commercial" and "Office" that allow both residential and commercial uses (and are considered mixed-use districts). Policy language in the existing Specific Plan references "upper-floor" and "above-ground" residential uses; existing Specific Plan Land Use Policy 12 states: "Prohibit new housing on the first floor of buildings located in the Downtown Commercial area in order to protect land designated for commercial use from being displaced by residential development." In recent years, the City has approved a number of mixed-use development projects in the downtown area, some of Page 5 of 15