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PUBLIC HEARINGS AND OTHER MATTERS Public Hearing: 18. PCUP-165/PDR-529/PUD-81-25-7M, Regency Centers (Don MacKenzie and Pete Knoedler)/Home Depot – Consider an application for a PUD major modification, conditional use permit, and design review approval to allow the construction of 193,481 square feet of commercial area, including a Home Depot building supply store and garden center, a Longs Drugs pharmacy with drive-through, and miscellaneous neighborhood retail convenience stores including one drive-through, on an approximately 16-acre parcel located at 3450 Stanley Boulevard, at the Valley Avenue/Bernal Avenue/Stanley Boulevard intersection, in the Stanley Business Park; and a Negative Declaration for said project Director of Planning and Community Development Jerry Iserson gave the staff report, stating the project is for a Home Depot, Longs Drug Store and other commercial buildings, resulting in a 193,400 square foot commercial center in the Stanley Business Park. He presented and described the location map showing the project site, the site plan, said the project has had extensive review by the Planning Commission and the Economic Vitality Committee, who both recommended approval. He indicated the Planning Commission felt the project was well designed, incorporated sufficient mitigation measures to make it compatible with the area and to resolve the traffic-related impacts. The Commission also concurred with the Economic Vitality Committee that the project would be economically beneficial to the City, added a number of conditions relating to operations, design, landscaping, and uses. Mr. Iserson addressed the traffic and noise issues associated with the project, and referred to a memo dated May 15 concerning revised conditions. Economic Development Fiscal Officer Emily Wagner presented the fiscal impact analysis prepared on the proposed project which included the feasibility of having two Home Depots in the community, sales tax revenues, property tax revenues, and other tax revenues, mainly business license taxes. She indicated they looked at the impact on the cost of City services, which vary. They selected two; “average costing” where the service cost is based on other retail development in the community, and “marginal incremental costs”, where you look at what the incremental or marginal increase in City services are due to the development of the property. She said average cost is approximately $1.00 per square foot and staff determined that the estimated cost of City services for the project would be about $190,000 per year based on the proposed square footage. In looking at marginal or incremental costs, staff spoke with Bay Area Economics who is the fiscal consultant preparing the fiscal analysis for the General Plan update, spoke to other city staff members, and came to the conclusion that this is about ½ FTE. The majority of impact would come from public safety, police, fire, and street maintenance. In conclusion, Director Iserson said the Planning Commission, staff and the applicant have worked to address issues expressed by the community and others regarding the project, they have come up with a site that is well-designed, fits the location and will benefit the City as a whole. Workshops were held that invited the public which caused the project to be re-designed, a number of conditions have been added to address traffic, noise, fiscal and other impacts, and he recommended the Council approve the project with revised conditions. City Council Minutes 4 May 15, 2007