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FISCAL IMPACT The project is expected to generate revenues to cover its costs of service as increases in property taxes would be used to provide services, such as police and fire required for the increased demand. The applicant will also be required to pay development impact fees (e.g., capital facility fee, traffic fees, water/sewer connections, etc.) to offset the cost of City facilities and infrastructure necessitated by the development. BACKGROUND The subject property was rezoned to PUD -HDR in 1990 as part of a PUD development plan for 158 dwelling units on a larger combined project site totaling 12.76 acres. The portion of that project located on the subject property was never built, and the PUD development plan expired in 1992, but the PUD rezoning remains in place. On October 19, 2018, the applicant submitted an application for PUD development plan (PUD -133), to demolish the existing home and construct three new single-family homes. The project was presented to the Planning Commission at a workshop on June 12, 2019. The workshop was attended by a neighbor from the property to the east, with privacy concerns due to the proposed two-story homes. At the workshop, the Planning Commission was generally supportive of the project, and requested additional landscape screening for the adjacent property to the east and to provide a more neutral color palette for the homes. Since the workshop, the applicant worked with staff on plan revisions to address the Planning Commission's comments, including modifications to the proposed landscape material along the east property line to increase screening, and revising proposed paint colors for each of the homes. On August 28, 2019, the application was presented to the Planning Commission at a public hearing. At the hearing, seven members of the public spoke in opposition to the project. The majority of the concerns raised focused on privacy, both for the adjacent single family home to the east and the townhomes along Rachael Place to the west, as well as the proposed density of the project and consistency with the neighborhood and Downtown Specific Plan. See the Planning Commission agenda report, Attachment 2, and the excerpted draft minutes of the August 28 Planning Commission hearing (Attachment 3) for additional information. SITE AND AREA DESCRIPTION The subject lot is located on the north side of Stanley Boulevard (aka Old Stanley Boulevard), between Main Street/Santa Rita Road and First Street/Stanley Boulevard, as seen in Figure 1. The property is surrounded by a variety of residential home types that range in density and size from high-density attached townhomes to the north and west, to detached single-family homes to the south and east. The existing houses in the neighborhood are a mix of one- and two-story homes. The subject 14,400 -square -foot lot sits approximately five feet lower than the grade of the public sidewalk and street but is Page2of7