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Ordinance No. Page 22 4. Second units and accessory dwelling units as t-lthose terms+care used in Section 65852.256852.2 of the Government Code; 5. Reconstruction or other new development on a site when such reconstruction replaces an equal number of square feet of floor area, as defined in the Uniform Building Code, when the use is similar, and when such reconstruction occurs within two years from the time the previous structure on the site was demolished; 6. Churches. B. The project developer shall enter into a regulatory agreement with the city in order for a project to qualify for an exemption by the inclusion of lower-income or moderate-income housing units. 17.40.050 Reduction of fee—Commercial, office or industrial project. A. The city council may reduce the required fee for a commercial, office or industrial development project when the project developer can demonstrate (1) that the proposed use will generate substantially fewer workers than the uses which have established the fee; and (2) that the building design is unable to house another use without substantial renovation. Examples of such uses are public utility facilities, exclusive storage buildings, etc. B. In the event such buildings are renovated to house another use, the fee then applicable shall be due at that time. 17.40.060 Commercial, office or industrial projects—Construction of lower-income housing. Commercial, office or industrial development projects may construct lower-income housing to fulfill the requirements of this chapter in accordance with this section. A. Lower-income housing proposed to offset the requirements of this chapter must be proposed in conjunction with the commercial, office or industrial development project which would give rise to the fee and must be approved by the city council in offsetting otherwise required lower income-affordable housing fees. B. For lower-income housing constructed on lands designated for other than residential development in the general plan as of the effective date of the ordinance codified in this chapter, the project developer shall be given a credit, for purposes of offsetting the lower incomoaffordable housing fee otherwise required, in an amount established by separate city council resolution and which credit amount shall be set forth in the city's fees and charges appendix. C. For lower-income housing constructed on lands designated for residential development in the general plan as of the effective date of the ordinance codified in this chapter, for each lower- income housing unit constructed beyond 15 percent of the residential development project, the project developer shall be given a credit for purposes of off-setting the lower inconieaffordable housing fee otherwise required, in an amount established by separate city council resolution and which credit amount shall be set forth in the city's fees and charges appendix. D. In the event the lower-income housing constructed by the developer of a commercial, office or industrial development project creates an offset of the lower incomeaffordable housing fee greater than the total fee required by the development project, the developer may apply the difference to other sites then owned by the developer. This transfer shall be so noted in the regulatory agreement accompanying the project.