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Commissioner Blank stated that the City may want the houses if they were tastefully designed. He noted that if someone were to come in with a 55-units-per-acre project, and the Commission did not like the way the designs or the way the project was laid out, the Commission would have the ability to make changes based on the guidelines. He added that, as an example, he believes a two-story building that is less tall than a one-story building should be allowed in areas that prohibit two-story buildings because of visibility, and if someone came up with a cost-effective, tasteful project that meets all the design standards at 55 units per acre, it should be allowed. Commissioner Pearce agreed. She reiterated that the fundamental purpose of a TOD is to have an urban area that is walkable and close to transportation and retail. She added that this is where the City should allow flexibility and density because this is not supposed to be a suburban area but an area with the type of density that would keep the retail viable. There was consensus to leave the density at a minimum of 30 units and a maximum of 55 units per acre. Retail development: how much and where? Commissioner Pentin stated that in considering retail spaces, he is not concerned as much with the retail on Parcel 1 because with the street modifications and the tandem development of BART and parcel 1 as was specified tonight, he believes this could be very successful. He indicated, however, that he was not convinced about the retail at the corners of Parcels 2 and 3. Commissioner Blank supported Commissioner Pentin's comments. He stated that he is not a retail specialist but in looking at the design, he thinks that if one wants a focused retail so there is an easy connection to retail, these are all the wrong corners to put the retail on. He indicated that he would move Parcel 2's retail to the upper left hand corner and move Parcel l's retail down to the lower right hand corner so they are close to each other to form a bridge, and people could walk back and forth easily. He added that he drove by the area and thinks there is not enough to support retail and draw from the houses across the street because there are other retailers farther down. Commissioner O'Connor noted that those other retailers close to the residential have struggled for years; they have never been full, have had a lot of turnover, and only one or two tenants have stayed for years. Commissioner Blank said he knows the task force worked hard at its meetings, but he questioned examples of where this has worked and said he has never seen any. He felt parcel 2 and 3's retail looks off to him. Commissioner O'Connor noted that of the six Commissioners, he is probably the most involved in retail. He indicated that he would not put any retail on Parcel 2 or Parcel 3; he believes only Parcel 1 has a good chance of being viable and only on Owens Drive. EXCERPT: PLANNING COMMISSION MINUTES, January 26, 2011 Page 25 of 40