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DISCUSSION The major issues expressed with the project involve traffic, economic impacts on the community, truck routes, and enforcement of conditions of approval. Specific concerns involve existing and projected traffic levels at the intersection of Santa Rita Road and Valley Avenue, the large number of delivery trucks required to serve Home Depot, the ability of the shopping center management and the City to control and enforce truck delivery routes/ hours and other conditions of approval, and the economic impact that the Home Depot would have on existing smaller home improvement businesses in Pleasanton. Staff studied these issues through the community workshop process. The information obtained did not allay the concerns regarding these issues, and the applicant was asked to consider other options for use of the site. Development Options: The applicant has expressed a willingness to consider other uses for the site which would be more acceptable to the community while reducing the impacts associated with the previous proposal. Although Regency has not submitted a revised development plan, it has requested that the City Council allow Regency to amend its application to make modifications in response to the community's comments and Council's direction. Determining uses for the site involves trade-offs with regard to traffic, economic viability, type of business desired by the community, and design. Arriving at an acceptable mix of uses for this center would seem to require additional discussion to determine: 1) the minimum amount of floor area the developer requires to produce a reasonable rate of return, 2) the maximum acceptable amount of traffic generation, and 3) the type of commercial center that can be designed in a manner appropriate for its location at a city gateway. Procedural Options: Regency has requested that the Council table the second reading of the ordinance to an indeterminate date to allow Regency time to re-evaluate the project in response to the comments from the community and the City Council. (Please see attached letter from Pete Knoedler.) Regency would then amend its application to make modifications in response to those comments. Staff has identified several options for the Council regarding Regency's application: 1. Wait until the General Plan Update is adopted, which is scheduled to occur by December 2008. At that time the City will have a better sense of build-out conditions, including future land use and anticipated circulation improvements (including timing and sequence of future roadway and intersection improvements). Under this scenario, the Council would direct staff to schedule the second reading of the ordinance for the Home Depot proposal so that it may take final action to deny the project. Page 3 of 4