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Mr. Swift said the original plan approved was a restaurant and the twenty parking spaces provided on site met the requirement. Mr. Churka since has modified the plans, and the number of seats has been reduced and the area on the ground floor is being considered retail. Staff calculated the parking demand based on the retail use and the restaurant' based on the number of seats in the restaurant. If in fact the retail is part of the restaurant, then staff will go back and recalculate the fee. Mayor Tarver understood staff was recommending that Council follow the rules that apply to in-lieu fees and Mr. Churka could choose whatever way he wants to use the square footage. Mr. Churka said the in-lieu fee agreement states that if he needed more parking he must submit additional in-lieu fees additions or reductions. Ms. Michelotti said that he needs to decide what that the ground floor would be used for. Mr. Churka said the in-lieu parking agreement states that if there are any changes in the future, the amount of the in-lieu fee could be changed. Ms. Ayala asked if there was a way to approve the appeal, giving Mr. Churka more flexibility, but still using the City's standard in-lieu fee process. Mr. Swift said because the structure has a deferred in-lieu fee agreement and Mr. Churka chooses to defer payment until such time that a parking lot is built, the actual calculation of the parking demand will occur at the time of construction. If the second floor is being used as a restaurant then more parking spaces will be required. If only half of the Coffee Roast is being utilized as a restaurant and the other half leased out, then fewer parking spaces will be required. Ms. Michelotti asked how the deferred payments would be determined. Mr. Swift said at the time the parking lot is constructed a calculation will be made as to whether or not this particular site has a shortfall of spaces. If it does, Mr. Churka will pay a certain amount of dollars, which can be paid over a five year period of time. In year three or five if the uses change and the structure requires additional parking then the additional fee will be paid. Mr. Churka said he was providing 20 parking spaces for the structure he was building. He was not putting in a building without parking and just paying the in-lieu fee. He talked about other buildings being constructed that would cause problems with parking and traffic. Mayor Tarver asked if there was something in the staff report he did not agree with. Mr. Churka said he preferred the parking to be within one block of the project. Pleasanton City Council 16 07/07/98 Minutes