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18. Public Hearing: PUD-73, Steve Maestas and Mike Carey -Consider the application for a Planned Unit Development (PUD) rezoning of an approximately .22-acre parcel from the RM-4,000 (Multiple-Family Residential) District to the PUD-HDR (Planned Unit Development -High Density Residential) District located at 204 Kottinger Drive Principal Planner Donna Decker gave the staff report, described the request for rezoning, described zoning of the site, adjacent zoning, parcel size and uses, development standards, irregularity of the sites rezoned to PUD's, the proposed site plan, and said the development reflects a plan for flag lots with a 10-foot access easement to the rear property area which would be recorded on the Map, and the front parcel with the 1026 square foot home would remain as is. Part of the development standard is to allow the applicants to create or construct carports where there is no covered parking, as it is currently deficient. She described the 5-foot frontage dedication area along Kottinger, and the City would then modify the curb and street section. Ms. Decker said the project was approved with conditions by the Planning Commission, there were three areas where staff differed in its opinion; staff recommended originally that the building heights be able to maintain and match the straight zoned development standards of 30 feet in height and that it be allowed to have a maximum FAR of 40% on the site, and also to have a design review process for any new development and additions to be through the Zoning Administrator approval process. The Planning Commission believed that due to the sensitivity in the downtown area, conditions 4 and 8 be modified to require that only the existing heights for both the proposed parcels A and B be limited to the existing heights of 22 feet and 14 feet, and to limit the FAR maximum to 30% on both sites. The applicants have since discussed these particular restrictions and are willing to modify the FAR to increase it to 35%, but are displeased with the recommendation and constraints by the Planning Commission on the development. The existing homes are an original 1948 construction and an 1895 home, both of which are listed on the City's landmark historical structures list. However, at the time the list was constructed, Architectural Resources Group (ARG) reviewed the homes and found that neither one had no real architectural detailing or components worthy. Regarding the discussions relating to second story, there was concern by 3 residents who provided testimony indicating they were opposed to further development, increased height and second-story development. The applicant had shared that the front home could be modified for a second story by changes to the interior ceiling height of 11 feet and putting dormers in to create a second story; however, the rear unit is too constrained to have a second unit and it would limit the opportunity to actually increase the livability and investment in the downtown area with existing homes. Ms. Decker presented existing FAR's from 20-25% with a total overall FAR of 20%. She presented the differences between the proposed staff recommended 40% FAR for both homes and at the 30-40% FAR levels. She said one question the Planning Commission felt remained unanswered was that it was very difficult to understand what the streetscape would look like and how it would change over time with an increase of height, thereby restricting the height to 22 feet and 14 feet. Staff created aphoto-montage of the existing streetscape, showing those developments with PUD's and discussed modifications to those PUD's. The existing home front of the subject site is set back considerably, and the Planning Commission discussed whether it was more appropriate to have additions that expanded the buildings or go up in height for second stories, and if spread out, it would decrease the distance between neighbors. She provided examples of FAR's and homes on Second Street which have been approved, which show up to 50% FAR with a 21-foot tall structure, and a single story at 26 feet tall, which is the basis of the applicant's concerns. She also presented streetscape, setbacks and homes