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__ Mr. Lee replied that square footage is not directly related to the amount of land displaced and that the amount of affordable housing would not depend on square footage. He stated that a home with a large square footage could be built on a relatively small lot, given a higher FAR, in the same way that a single-family could have a smaller FAR home on a big lot. Mr. Mercer asked Mr. Lee to comment on the Bren Company situation that it is being charge a different rate because it will build separate units rather than share common walls. O9 Mr. Lee replied that as stated in the Staff Report, the Bren ~ development is an exception to the rule. He stated that it can be ~_, argued that density has no correlation with the need for affordable housing. However, the problem staff has is that there are very few < remaining high density residential parcels in the City, and Z charging a lower fee for single-family homes in those parcels would encourage single-family homes in high density parcels which are intended for multiple-family units. Mr. Tarver stated that fees should be established and that it would make sense to correlate the fees with square footage. He said that the escalator cost should be based on the CPI and that appeals should go through the normal process. He added that there should be incentives to promote housing and that the fee should not apply to remodeling and reconstruction. He pointed out that providing affordable housing for both residents and employees of Pleasanton could be worked out without setting priorities. Mr. Brandes inquired what the definition of "substandard residential units" is and how it would be measured. Mr. Roush replied that the Uniform Housing Code provides that the Building Official determines when a house is substandard. Mr. Brandes commented that there should be a broader definition and clearer understanding of the term because some residents are concerned that affordable housing would diminish their property values. He mentioned that affordable housing means affordable land, which Pleasanton does not have, and that the market, rather than the fees, should take care of affordable housing. He added that he was opposed to the imposition of the fee on commercial development in the City at this time because the City's present economic condition for the past ten years was brought about by the advent of the Business Park in North Pleasanton. He pointed out that the business parks provide the opportunity for people who live in Pleasanton to work in Pleasanton and that the best ways to assure that this community maintains a strong and sound fiscal position is to ensure that business parks have a chance to expand and complete their operations as long as 10-2-90 - 17 -