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,- Chairperson Roberts clarified that she was able to support the project based on staff s further explanation of the zoning and lot sizes in the area -specifically that the larger adjacent lots are zoned PUD-A. The Planning Commission recessed for a break at 7:55 p.m. Chairperson Roberts reconvened the meeting at 7:57 p.m. b. Recommendation Regardine Guidelines for the Use of Inclusionarv Unit Credits as Provided in the Citv Inclusionarv Zonin¢ Ordinance (IZO) Steven Bocian noted that staff recommended that the Commission review the guidelines and make a recommendation to City Council for adoption. He recalled the background of this item and noted that there were a number of directions given by City Council, including the development of guidelines for use of the Inclusionary Unit Credits. A sample resolution was included, and Mr. Bocian briefly described the nine proposed guidelines as detailed in the staff report. Regarding Guideline 1, which addressed the City Council's ability to make the final determination regarding granting or denying IUCs, Commissioner Fox inquired whether a developer could make an arrangement with City Council and provide only 10 percent affordable units, getting the credit for additional units if the original 15 percent threshold was not met. Mr. Bocian confirmed that would not be possible and stated that both "- developments combined must meet the minimum threshold. He noted that staff s concern was that any minimum threshold or number affects how procedures are carried out in the future; staff would rather give the City Council and Planning Commission the greatest amount of flexibility to either require a significant number of excess units or for a particular development. Mr. Bocian advised that Guideline 3 indicates that City Council will consider the amount of financial assistance that it must make to a project as part of the decision-making process on whether to grant units. He noted that Guideline 4 was essentially the reverse of Guideline 3, which considered what a developer puts into a project as it makes the decision on granting the units. Mr. Bocian advised that the Housing Commission recommended that Guideline 5 be removed. The condition states that the Council would be more likely to approve units at an adjacent development. The Housing Commission did not believe this guideline was necessary and that it should not be a criterion; the criteria should be based on the needs of the specific project itself and the need for the inclusionary credits. He noted that this guideline pertained only to new developments. Mr. Bocian advised that with respect to Guideline 6, the City Council would be more likely to grant ICUs for similar unit types, such as transfers from one apartment complex to another. He emphasized that these were guidelines that the City Council could adjust. PLANNING COMMISSION MINUTES August 25, 2004 Page 5 of 9