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Commissioner Nibert asked if the City would require copies of the lease agreements, and discussed the provision in the draft materials, indicating the "Director may request a dimension or floor plan along with a copy of lease agreement." Ms. Bonn explained the City Council discussion regarding lease agreements in order to verify leasable square footage. She suggested the financial terms or other private matters in the lease agreement could be redacted. Commissioner Pace thanked staff for its presentation and the community for its feedback. He inquired how staff reached the 60 -percent mark rather than a smaller percentage. Ms. Clark explained the City Council wanted a substantial portion of the tenant space dedicated to the active use and staff felt 60/40 was appropriate to retain a useful inactive portion. Commissioner Pace discussed other cities' efforts and the goal to continue to support and encourage a vibrant downtown with opportunities for those whoy would visit and use downtown. He inquired about the effort to determine the economic impact of increased square footage or the impact seen by other cities with similar requirements. Ms. Clark stated other cities had successfully implemented similar policies, some had rolled back requirements due to impacts of the COVID-19 pandemic, and there were more opportunities with more downtown demand. She stated there was no specific metric, rather staff had researched what other cities had done to establish the recommendation. Commissioner Morgan referenced the appeal heard at the February 10, 2021, Planning Commission meeting and the underlying tone of determining whether a business was legitimate. He requested information on whether there was discussion on the pros and cons of broadening the overlay and excluding personal services from active use. Ms. Clark stated it was not discussed at the most recent City Council or Planning Commission meetings but was discussed when the item was considered by the Chamber of Commerce and PDA. She stated other cities had allowed and some had excluded personal services. She summarized the discussion regarding massage businesses that arose during the Downtown Specific Plan (DSP) update, and concerns then about an overabundance of personal services. She discussed the gyms, existing salons, and other personal services, stating the recommendation prohibited new businesses of that type. Chair Brown inquired about Page 4 of the agenda report regarding "vacancy" being replaced with "abandonment' and expressed concern that it went against the intent of the DSP update. Ms. Clark explained the purpose of alignment and consistency with the Non -conforming chapter of the Code and that the recommendation was based on practical experience related to the existing vacancies around the Downtown. Chair Brown inquired whether abandonment was at the time the lease expired or was forfeited, or if the property owner was still receiving revenue. Ms. Clark discussed the practices of landlords to allow flexibility of tenants vacating the premises. Chair Brown stated he was trying to understand the intent of the policy and whether it was based on not creating an undue hardship of property owners in order to meet the City's active ground floor use requirement. THE PUBLIC HEARING WAS OPEN Erica Jasso, owner of Sculptsations, provided public comment regarding her business as a mixed use with part service and part retail. She stated she originally mapped out 15 -percent of her business, but she had remodeled to be compliant to the 25 -percent requirement and questioned why her permits and business license were denied. She discussed the previous Excerpt: Approved Planning Commission Minutes, July 28, 2021 Page 2 of 6