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<br />Plan review process. This review occurred on June 23, 2004 as part of a joint meeting <br />between the City Council and the Planning Commission, and as an outcome of that <br />review, the Council adopted a resolution establishing guidelines (included with Attachment 3) <br />for reviewing requests for IUC's. <br /> <br />The City Council reviewed Ponderosa's request for IUC's on November 2,2004 and approved <br />an Amendment #1 to the Affordable Housing Agreement granting 51 IUC's and establishing <br />affordability requirements for the development on the 23-acre site optioned to the Pleasanton <br />Unified School District (PUSD). Upon receiving the Amendment #1, Ponderosa informed the <br />City that it disagreed with staff's interpretation of City Council action and requested changes to <br />the Amendment. Staff reviewed the matter and met with the developer on a number of <br />occasions but was unable to resolve the differences. At the request of the City Manager, the City <br />Attorney reviewed all available material, including a review of the City Council meeting <br />videotape. Although the City Attorney found some inconsistencies between the discussion at <br />the City Council meeting and the City Council staff report, he determined that Amendment # I <br />was reflective of City Council action and the information in the City Staff report. Staff again <br />met with the developer who requested the matter be forwarded to the City Council. As a result, <br />this matter is before the Council for action. <br /> <br />DISCUSSION <br /> <br />As indicated in the attached November 2, 2004 staff report (Attachment 3) and City Council <br />minutes (Attachment 4), there were numerous options presented and discussed regarding the <br />granting oflUC's for this project. (The staff report provides a description oflUC's and the IUC <br />guidelines approved by the Council previously.) However, the City Council took action <br />approving the use ofIUC's and based on that action, staff modified the Amendment #1 included <br />with the November 2 staff report (Attachment 1) to reflect City Council action. Ponderosa <br />maintains that some terms of Amendment # 1 as presented in this report are not reflective of <br />Council action. The terms of this Amendment about which there is no disagreement are as <br />follows: <br /> <br />. IUC's can be used only by Ponderosa Homes, or a subsidiary owned by a majority of <br />Ponderosa or exclusively by its Chairman, Kile Morgan, Jr., and cannot otherwise be <br />transferred. <br /> <br />. IUC's may be used on the 23-acre Busch site currently under option with the Pleasanton <br />Unified School District (PUSD). With City Council approval, the IUC's could be used on <br />another site. <br /> <br />. IUC's would be applied in accordance with the following ratios: <br />>- Ifused on a multi-family development: 1 IUC for each affordable unit required. <br />>- Ifused for a condo/townhome: 1.5 IUC's for each affordable unit required. <br /> <br />SR:06:052 <br />Page 3 <br />