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Planning Manager Clark provided an overview of the project goals which included clarifying key policy areas, responding to community objectives, strengthening protection of physical features of Downtown and incorporating key concepts from other planning efforts. She provided an overview of the two (2) year plus process to date which included 18 Task Force meetings and over 70 total public outreach opportunities and methods. She advised the public outreach input was completed in 2019 and reported back to the Task Force to provide policy direction in the DSP draft. Ms. Clark provided an overview of principal changes to the 2002 plan which included new `mixed-use" land use designations, a Town Square District concept, an active ground floor overlay and exception process, streetscape concepts, clarification on ground floor residential uses, update on existing conditions, consolidate/combining chapters of the DSP, and Improved readability and graphics. Senior Planner Shweta Bonn provided an overview of topics to which Council already provided direction that included modifying the Municipal Code to address massage establishment requirements citywide, notification to the Planning Commission when any exceptions are made to active ground Floor overlay by staff, prohibiting ground -floor residential uses on some streets, City Council approved property -owner initiated requests at 4212 First Street and 475/483 St. John Street, development standards for Downtown Commercial, Mixed use -Downtown, Mixed -use -Transitional and Residential districts and a right to do business ordinance. Senior Planner Bonn provided an overview of recommended approaches that staff would like Council to confirm which include establishing the Zoning Administrator as the approving body for outdoor dining, a policy implementation action to establish standards for story poles and visuals for downtown projects, to not provide a policy for where ground -floor residential uses may be constructed on corner -lots so that requests may be viewed on a case-by-case basis, establishing additional resident height with a Planned Unit Development (PUD), Draft DSP Policy LD -P.49 which requires improvements to existing buildings and landscaping when new residential in -fill is proposed, the establishment of a parking strategy working group to identify improvements to parking supply and management. Senior Planner Bonn presented the discussion topic on whether or not a PUD should be required for residential development and four options for consideration: Option 1. Maintain current approach: projects that meet development standards, Design Guidelines, and policies are subject to Design Review by the Planning Commission. Projects that seek to deviate from established standards are subject to the PUD process. This is the Planning Commission's recommendation. Option 2. Require PUD for projects that include new ground -floor residential units. This is Staff's recommendation. Option 2.b. Require PUD for projects that propose more than two new ground -floor residential units. Option 3. Require a PUD if residential does not already exist on the site. Option 4. Require a PUD of proposed residential with a redevelopment area of a certain size or a certain unit increase. Additional approvals requested included, General Plan Amendments; Municipal Code Amendments; Downtown Design Guidelines text and DSP boundary map amendments; and Downtown Hospitality Guidelines Senior Planner Bonn advised the Draft Environmental Impact Report (EIR) was made available on February 2019 and was open for public comment through mid-March. The City received seven letters. She advised a Final EIR (FEIR) is the master response which addresses changes to the DSP since the November 2018 DRAFT and advised that the findings and conclusions of the DEIR remain valid. Senior Planner Bonn provided an overview of staff recommendations which include a resolution certifying the FEIR for the DSP update, a resolution to rescind the 2002 DSP, introduction of an ordinance approving changes to the zoning designations for certain properties and introduction of an ordinance amending Chapter 17.24 (Transportation Systems Management) and Title 18 (Zoning) of the Municipal Code to implement the policies of the updated DSP. In response to Mayor Thorne's inquiry, Senior Planner Bonn clarified there are no four-story buildings in the DSP. City Council Minutes Page 4 of 11 August 20, 2019