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There are, of course, a variety of outcomes that fall within this range. Given current retail trends, the timing and nature of re-tenanting of currently vacant "boxes" is highly uncertain. Meanwhile, successful redevelopment stands to not only increase City property taxes, but also support the mall's retail establishments. It is also important to underscore that fiscal results are only one lens for evaluating land use decisions. Other important considerations include effective urban design and "place-making", addressing local housing needs, mitigating traffic impacts, and preventing prolonged vacancies and blight. Housing Density Under State law, and the City's Municipal Code, the City must provide for increases in residential density (known as "density bonuses") and provide incentives or concessions (generally relaxation or waivers in development standards) for housing developments that provide a specified percentage of affordable units.4 Affordable units are those offered for sale or rent at rates determined "affordable" to households in various income categories (low, very-low, and moderate income), typically well below the cost of market-rate units. State law establishes a sliding scale for density bonuses up to a maximum of 50 percent, and one or more incentives or concessions, depending on the number of affordable units and the levels of affordability. As mentioned in this report, the Draft (6th Cycle) Housing Element contemplates between 900 and 1,440 units at Stoneridge Mall, with a density range of between 50 to 80 du/ac. For consideration by Planning Commission and City Council is whether the maximum number of units (i.e., 1,440 units) includes the Density Bonus or if that maximum may be exceeded with a Density Bonus. Since there potentially some limitations5 to future development capacity at the mall (based on various factors, such as traffic), the City Council could consider an adjustment of the capacity of commercial square footage to accommodate additional residential units. Alternatively, retaining the upper end of the density range and acknowledging that density bonuses may be achieved, may help the viability of residential development at the mall, support providing more of the types of amenities and infrastructure envisioned in the Framework, and increase the yield of affordable units in proportion with the increased number of market rate units. If the Planning Commission and City Council provide direction that the maximum number of units at the mall be 1,440 units inclusive of a density bonus, either density range or the acreage of land for housing in the Draft Housing Element would be adjusted. 4 As part of the 2012 (4th Cycle) Housing Element Update, the City was required to update the Municipal Code to include a Density Bonus Ordinance to be consistent with State Density Bonus Law. Since then, additional changes have been made to the State Density Bonus Law and therefore Program 2.7 of the Draft (6th Cycle) Housing Element requires an update to the City's Density Bonus Ordinance. 5 The "capacity" of the mall with respect to housing depends to some degree on assumptions about other future uses -for example, if retail capacity is decreased in future land use scenarios, there could be "room" for additional residential units to be accommodated. Page 15 of 17