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high density and residential. She asked him to return in January on what types of things that could be developed that are neighborhoods, service type stores. Mr. Knoelder said there are economic conditions at hand, they worked on it for a long time, their owners have been very cooperative with them, and Councilmember McGovern agreed it would be their bottom line, but it is their choice whether or not to work within the parameters of the Council. Mayor Hosterman thanked Mr. Knoelder for hanging in with the City and the community, as it has been 4-5 years at great expense. She was sorry about timing issues and there is a different set of economic analyses. Councilmember Sullivan said he appreciates the rest of the Council being open to the new information and willing to adjust their viewpoint, said they have been in a lot of turmoil recently about policy, land use decisions, democracy and politics, and what we have done with this project and the community process was constructive, grass-roots, community-centered democracy and is the model which has been done several times. He was very happy with what has been done and the direction. He thinks the Council should discuss what all options there could be and what he does not want to do is suggest a lot of things, have Mr. Knoelder return and the public come out and mass again, oppose it or not understand the impacts. City Manager Fialho said even if the City engages aggressively with Mr. Knoelder, staff will not be able to submit to the Council an alternative site plan that it can vote on as part of a second reading. If it is substantially different, Regency will have to submit an entirely new application and go through the normal process. Options discussed with the Council is 1) denying the project; 2) the Council can deny the project with reconsideration of this project or an altemative site plan upon completion of the general plan update; 3) to deny the project and direct staff to incorporate this project into the Eastside Specific Plan process. The downside is that it will take a lot of time; 4) to deny the project with "recognition" or the idea of directing Regency in terms of what the Council might like to see on the site in the future, such as bringing a retail use that provides value to the broader community but minimizes traffic impacts in general; 5) a phase I or phase II approval, or identifying within the context of the current project what the Council would be willing to live with like the small retail stores along Stanley and Bernal, but denying the large anchor tenant and giving direction to Regency to return with a project that appeals to the broader community and minimizes traffic impacts. This way, Regency has a partial approval and can work to get the appropriate anchor tenant might for the community and neighborhood. Councilmember Cook-Kallio said there is no way a no-traffic impact would be seen at the site. She agreed that it was not so much that people did not mind the retail, but that they did not want a Home Depot store there, so there should be an intrinsic value of the retail there that serves the broader community. Some people could deal with a Trader Joe's or Tesco if they were educated if the value outweighed the traffic. Councilmember Sullivan felt that discussion should take place, but not tonight, and we were also missing a Councilmember. He felt all options should be considered, hear from the community, and then go down one of those roads and he felt that should occur at the next meeting. Councilmember Cook-Kallio asked for Regency's timeframe because there is a certain point where it might not be feasible. City Manager Fialho said staff was planning to bring all options to the Council on January 15~' for discussion. Staff can provide a sense from a business perspective and what ideas could be for the site in the context of options. Mayor Hosterman confirmed that Council direction was for staff to brainstorm creative uses that would keep Regency in the game so as to allow the Council to review and pursue those options. City Council Minutes 16 December 4, 2007