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Application of Portfolio Investments for an In-Lieu Parking Agreement to allow full occupancy of the Hopyard Center, located at the northeast corner of Hop- yard Road and Valley Avenue, without the required off-street parking. The In- Lieu Parking Agreement would provide for developing off-street parking facili- ties available to the 9eneral public within an area of benefit to the Hopyard Center Mr. Harris presented his report (SR 85:267) dated May 16, 1985, regarding this matter. Mr. MacDonald presented his memorandum dated May 21, 1985, set- ting forth three changes to be incorporated into the agreement, and stating that staff has no objections to including the changes as asked. Mayor Mercer declared the public hearing open on this iem. Mr. Tom Byrnes, representing Hopyard Partners who have owned the Center for six months, stated he has ten new leases for the Center including Radio Shack. He stated that after much study for possible solutions to the parking shortage, the possible use of the airspace over the Pleasanton Canal as a com- bined use parking lot appears practical and also economically feasible. It would provide off-street parking to the Hopyard Center, primarily employee and peak period overflow parking, and additional parking for the Sports Park, primarily evening and weekend demand. He stated that enclosing the canal would also improve an often unsightly open canal. He stated he has been suc- cessful in arranging a lease with a day care center for the 1-1/2 acres that are undeveloped. He asked what steps are necessary to receive permits to build the day care center; and what steps are necesssary to receive permission to actually build the canal parking. Mr. Byrnes stated he has worked with the surrounding neighbors, they have reviewed the proposed plans and have general- ly accepted them. The owner of Decadent Desserts stated she has lost a lot of customers be- cause of the lack of parking space, and she felt that covering the canal to provide more parking would be a good solution. She stated this improvement would also help solve the rat problem. She urged Council to approve this application. Mr. R. Pozzebon, 2808 Longspur Way, stated the new owner has been more considerate of the surrounding homeowners and has reviewed the proposed plans with them. He stated he liked parking over the canal. He added that reducing the parking on the 1-1/2 acres of now undeveloped land would ease his con- cerns, and that he would also like to have a gate installed. There being no further testimony, Mayor Mercer declared the public hearing closed on this item. Mr. Harris stated he has suggested to Mr. Byrnes that he apply for PUD zoning for the entire property showing a planned unit development for full build out so that staff can analyze the parking that he would be providing with building space; with rezoning the property to PUD then the uses and park- ing can be spread over all the property. Mr. MacDonald emphasized that the key thing is to start working wth Zone 7 regarding covering the canal, and that staff can work to expedite this matter. Mayor Mercer asked what guarantee the City could get from Mr. Byrnes that he will develop over the canal. Mr. MacDonald stated that the City has an - 7 - s-zl-Bs 886