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MEMORANDUM Date: March 15, 2024 To: Mayor and City Council From: Gerry Beaudin, City Manager Ellen Clark, Director of Community Development Re: P23-0177, 3200 Hopyard Road This memorandum provides an update to the City Council with respect to the March 13, 2024 Planning Commission approval of application P23-0177, for the project located at 3200 Hopyard Road. The March 13 hearing was a continuation from the February 28, 2024, Planning Commission meeting. At the March 13 meeting, the Planning Commission considered the approval of applications for Design Review and a Vesting Tentative Map for a 57-unit townhome and apartment project at 3200 Hopyard Road. The 57-unit project comprises 48 townhomes, and 9 lower-income apartments (to meet the requirements of the Inclusionary Zoning Ordinance), in nine three story buildings. At the continued hearing, the Planning Commission was presented with an alternative project design, voluntarily proposed by the applicant, which reduced the number of units from 57 to 55, modifying one of the nine, three-story buildings to instead comprise two, 2-story duets. This proposal also modified the inclusionary housing proposal to reduce the total number of on-site units from nine to eight, with those units deed-restricted to moderate-income, versus low- income households. Staff found both projects to be consistent with the applicable objective development standards, also taking into account a series of waivers and concessions for which the project is eligible pursuant to State Density Bonus Law. While none of the changes proposed were required to conform to any objective standard, the applicant-proposed modifications reflect a more favorable transition to neighboring single-family homes to the north and allow for two additional guest parking spaces to be provided. Despite these positive design changes, while the proposal provides a sufficient number of inclusionary units, the moderate-income level for the proposed units does not meet the Inclusionary Zoning Ordinance (IZO), which requires units to be deed-restricted to low- or very- low-income households. The IZO does allow for alternative proposals to be considered and approved by the City Council; and while it is possible that the City and the developer could come to agreement on