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Councilmember Mohr expressed concern regarding the recreational easement along the creek. Mr. Swift advised that it was never anticipated that a rec- reational trail would be on the south side of the creek, and that any trails would not be at the top of the arroyo because there is not room for it. Councilmember Wilson asked if the developer would get credit for the 20 foot recreational easement. Mr. Swift advised this easement has been dedicat- ed by Zone 7. Mayor Mercer asked if any significant historical houses would be torn down because of this development. Mr. Swift advised there would be none removed. Ms. Judy Mayhew, 610 Main Street, representing the Pleasanton Downtown Association, stated this group has no specific objectin to the project, but- felt the item should be continued until after the downtown study is completed to ascertain if there will be any traffic or other problems generated because of this development. She stated that Councilmember Brandes suggested recently that no building be done in the downtown until after further review by the Community Development Agency completes their study. She felt this should ap- ply to the B-W project also. Councilmember Brandes stated his suggestion was to include only commercial development, not residential. Mr. Bill Loube, 855 Main Street, stated he shares the concerns of Ms. Mayhew; he urged Council to be careful before approving projects in the down- town area. Mr. Rubnitz stated that the traffic concerns have been addressed. He ad- vised that construction needs to start as soon as possible. He stated that in addition to the practical aspects to get this project started there are also contractural commitments; he urged Council approval of the proposed project. There being no further testimony, Mayor Mercer declared the public hearing closed on the application and the negative declaration. Councilmember Mohr stated she felt the present residential zoning is a misuse of the property; this area is a key place for commercial development in the north end of Main Street. In light of the downtown study, she felt this area should be reconsidered for commercial rather than residential zoning. Mayor Mercer stated he originally felt this property should be zoned com- mercial, but after review of the proposed project that has gone through all the necessary public hearing, he is in favor of the application. He felt it is unfair to deny the application at this point. Councilmember Brandes stated he felt this is an excellent project but felt it should not be acted upon until after the downtown study and CDA determinations. Councilmember Wilson stated he felt it would be unfair to delay the project. It was moved by Councilmember Brandes, and seconded by Councilmember Mohr, that PUD-87-6, application of B-W Construction Company and First Interstate Bank for development plan approval to construct a 28-unit residential town- house complex to be located on an approximately 2.4 acre site, located at 553 St. John Street, be denied without prejudice. 231 12 - 7-7-87