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to Council between now and the time the option either expires or is exercised, that Council could turn the developer down and remind the Developer that it was supposed to prioritize the use of these credits on the Busch property. He noted that Ponderosa Homes practically has the inability to use these credits until a resolution is reached with regard to the PUSD option. Under staff's proposal, if PUSD does not exercise its option in May 2008, the developer would have only until November 2009 to use them. Ponderosa Homes left the Council meeting in November 2004 with what it believed was a clear understanding that it would have five years from May 2008 to use the IUC's either on the Busch property if PUSD dropped its option, or elsewhere in Pleasanton at Council's discretion. As of today's date, the senior apartment development on the Busch property is 38 percent affordable. Ponderosa Homes assumed that if it presented a project to Council on the PUSD option site it would dilute the affordability on the overall Busch project only to 29 percent, which is still above the affordability threshold of 24 percent. Under staff's proposal, the project ends up at a level of affordability of 33 percent rather than 29 percent. In closing, he mentioned that Ponderosa Homes is not asking Council to interpret what the previous Council did but what this Council believes is fair. He requested that Ponderosa Homes be allowed five years from May 2008 or sooner if the PUSD dropped its option, to either use the IUC's on the PUSD site or elsewhere in Pleasanton, and to consider the overall affordability of the Busch project when it calculates what its percentage of affordable units is on the PUSD site. In response to an inquiry by Mr. Brozosky, Mr. Sweeney said Ponderosa Homes does not have a proposed project to present to Council. The previous Council directed Ponderosa Homes to prioritize the use of the IUC's on the Busch property; it was not an obligation and Council, at its discretion, would be able to decide whether the IUC's could be used elsewhere in Pleasanton. To a degree, Ponderosa Homes is waiting to see what the PUSD might do with its option prior to utilizing the credits. Representatives from Ponderosa Homes have met with the School District but the subject of the option has not been discussed. Ponderosa Homes has not received any indication that PUSD will terminate the option prior to May 2008. Mr. Sullivan asked if Ponderosa Homes was considering any project sites in Pleasanton for which the IUC's might be available prior to 2009? Mr. Sweeney said yes. There is a potential for Ponderosa Homes to return to Council within one year on at least one piece of property, and it would be Council's discretion as to whether the IUC's could be used. Mr. Brozosky and Mr. Thorne disclosed that they spoke with the developer's representatives. Mr. Thorne asked if PUSD decided to exercise the option and subsequently changes its mind during escrow, does the developer only have until 2009 to have a project for the PUSD site? Mr. Sweeney said if PUSD exercises its option and decides to purchase the property and subsequently changes its mind, Ponderosa Homes would be out of time. PUSD received a five-year option from the date of the tentative map on the Busch property and the option price was $1.00. PUSD has the property under its control for live years and if the School District decides it is going to purchase the property, it has 2.5 years to come up with the funding. Ponderosa Homes provided the affordable housing but it would not have any credits because it would be beyond the November 2009 date. Pleasanton City Council Minutes 16 03/07/06