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2. Loss of Golf Course Homes. Alternative 2 eliminates the homes planned for the golf course. This reduces property tax revenues, as well as economic stimulus from jobs related to construction. Furthermore, the elimination of the golf course homes makes the development of the municipal golf course economically more difficult, as the City may not generate sufficient revenues from green fees and clubhouse sales to maintain its debt service for this new recreational amenity. 3. Biology. Alternative 2 would have environmental effects which are functionally equal to the proposed Project, and this alternative would not substantially reduce any environmental effects of the Project. While there may be some reduction in the area of wetlands or waters of the United States impacted because of a smaller golf course, that biological effect will continue to be present so long as the golf course remains an element of the project. Alternative 3: ONE-ACRE DENSITY INSIDE THE HAPPY VALLEY LOOP / GENERAL ELECTRIC PROPERTY Alternative 3 would include an expanded area (including expanded golf course, open space and trails), as well as an increase of up to a tot~t of211 housing units. Land use impacts would remain similar, subject to the slight increase in allowable housing units. The noise generated by the traffic under Alternative 3 would result in a noticeable increase for existing residents along Happy Valley Road, Alisal Street and Sycamore Road. Furthermore, the expansion of the golf course by an additional 15 acres would result in increased impacts on wetlands and waters of the United States. Therefore, based on the facts set forth below, and the information in the Draft EIR and Final EIR, Chapter 4.B., the City Council finds that Alternative 3 is less desirable than the proposed Project, and rejects Alternative 3 for the following reasons: 1. Noise. The increase in density inside the Happy Valley Loop changes traffic patterns, which results in increased noise impacts to neighborhoods along Happy Valley Road, Alisal Street and Sycamore Road. Such concern regarding noise is heightened in this area of the City which has been planned as semi-rural residential. 2. BiOlogy. The increase in the footprint of the golf course includes an additional 15 acres on the GE Company property. Grading and re-contouring these acres will result in increased impacts on wetlands and channels. 3. Same or Greater Impacts. Alternative 3 would have environmental impacts which are equal to or greater than the Project, and this alternative would not substantially reduce any significant environmental effect of the Project. Exhibit B 4