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HomeMy WebLinkAbout1986-05-12 City Council Summary MinutesCITY COUNCIL MINUTEs Regular Meeting May 12, 1986 CITY OF PALO ALTO ITEM PAGE Ural Communications 7 1 ti 2 Approval of Minutes of April 14, 1986, April 12, 7 1 6 3 1986, and May 5, 1986. Consent Calendar 7 1 6 4 Referral 7 1 6 4 Item #1, 1986-87 Budget - Refer to Finance and 7 1 6 4 Public Works Committee Action 7 1 6 4 Item 01, Ordinance re Amending Zoning Code and 7 1 6 4 Subdivision Code (2n` Reading) Item t3, Ordinance re Skateboards in Parking 7 1 6 4 Facilities , 2nd .Reading) Agenda Changes, Additions and deletions 7 1 6 4 Item t3 -A, (Old Item 07), Jordan and Garland Open 7 1 6 5 Space Leases Item it4, Appointment of Board Member to .7 1 6 6 tidpeninsula Access Corporation Board (Continued from 5/5/86) Item #5, Downtown Study - Continued Items from the "Study Session" discussion of Uowntown Issues/Actions: Neighborhood Protection; Housing; and Land Use Plan Map Changes (Continued from 5/5/86) 7 1 6 6 Recess 7 1. 7 3 Item 06, Public Hearing: Downtown Study 7 1 7 3 Adjournment: 11:50 p.m. 7 1 8 8 Regular Meeting May 12, 1936 The City Council of the City of Palo Alto met on this date in the Council Chambers, 250 Hamilton Avenue, at 7:35 p.m. PRESENT: Bechtel, Cobb, Fletcher, Levy, Patitucci, Renzel, Sutorius, Woolley. ABSENT: Klein. Mayor Cobb announced a Special Meeting to interview Midpeninsula Access Corporation Board candidates was held at 7:00 p.m. in the Council Conference Room. ORAL COMMUNICATIONS 1. Robert Lenox, 3261 Ramona Street, was a representative of the Palo Alto Airport Association, a group formed for the purpose of enhancing the airport and its environment. One of their goals was to work with the various jurisdictions that had a "say" over the airport ---federal, state, county, local--te- i ncreese the utility, beauty, and safety of the airport. The community had a ,jewel by the Baylands that was underappre- ciated and more than paid for itself. The airport handled a considerable amount of business, medical, recreational, and training traffic with minimal noise impact because of its location and pilot cooperation. The Association's rnernbershi p consisted of pilots and small business people who.. operated from the airport. The Airport Association would be pleased and respectfully requested they be solicited to assist and provide input to City staff when matters relating to the air- port arose. The community as a whole benefited from the presence of that fine facility. Palo :alto Airport helped local economy by allowing business persons, architects, engineers, attorneys, and other professionals, the ability to move swiftly throughout the west in the conduct of their busi- nesses. Also, critical care and transplant medicine would be severely impacted were it not for the facilities the airport provided for air ambulance aircraft, and many residents used the airport for recreation. He welcomed the airport's new manager, Jinn Spaulding, - and thanked the oetgoi ng manager, Tony Guayliardo. Mr. Hank Barbachano recently returned to Palo Alto Airport dS its Tower Chief, and they welcomed his profes- sionalism and concern for the community. Recently, two individuals began. a campaign to close the airport because of "noise and the danger of little airplanes." They received a fair amount of press from the Palo Alto Weekly and bought ads which he characterized as alarmist. Their latest scheme involved prohibiting aircraft from using a landing pattern on the west side of the airport. He reminded everyone that trains, road traffic, lawnmowers, created objectionable noise; one of the prices paid for living in a modern, urban society. Palo Alto Airport already moved from a location near Stanford and El Camino and situated next to the Baylands to reduce noise impact and allow for growth. The Airport was insulated from residents by not only the golf course and the office industriai complexes, but by a very noisy Bayshore. Well over B0 epercent of the airport's traffic arrived over the Bay or straight in from overhead Moffett. The normal traffic_ pattern was established on the eist side to reduce noise over .the City, even though a_standard, left-hand traffic pattern was easier for pilots, which was on the .west .side. - Almost all of the pilots who arrived from over the City flew as high and quietly as possible. He would not defend the few individuals who flew insensitively but, on the other -hand, they could not sit still while residents With _unreasonable demands endangeiied the airport. They were present -to listen to suggestions and 7 1 6 2 5/1Z/86 legitimate complaints feom the eo muniiy but, likewise, Coun- cil as civic leaders must recognize a balance had to prevail. Several years ago a second runway was planned for the airport and federal funds spent grading a surface, but those plans were dropped because of the increase in traffic that would have resulted on the left side. The general aviation commu- nity had already foregone a major asset in the name of noise abatement. To ban all traffic patterns on the west side would ignore the sacrifices already made. That solution would be uneconomical --wasting time and fuel --and would result in an increase of aircraft noise over the City because they were constrained by how far to the southeast they could fly because of Moffett airfield. If no traffic patteroa were allowed on the west side during busy times, that problem would he com- pounded resulting in the tower requesting aircraft to hold over the City of Palo Alto. Their membership was advised of the procedures laid out by the Good Neighbor Committee. They could not eliminate engine noise any more than Southern Pacific but ;:anted to be good neighbors. He invited the Coun- cilmembers to a flight over the City. 2. Hope Raymond, 639 Arastradero Road, said Mayor Cobb pointed out the time constraint Council was under due to the Downtown Study and requested they not make any presentations that evening about Palo Alto's becoming a sanctuary city. They recognized and appreciated the importance of the study and would cooperate. 3. Michael Rota, 2071 Middlefield Road, spoke in support of refilling Boronda Lake at Foothills Park. Foothills Park was made for the fun of Palo Alto citizens and the lake was half of tile Fun. Animals went to drink at the lake, and ducks and fish lived in it. He suggested a fund raiser or fair to raise the money. 4. Peter Faulkner, 775 17th Avenue, Menlo Park, Director of the Summit Sports Program in Palo Alto, asked the City Council to remove an earlier request regarding the Recreation Department Camp scheduled for Palo Alto High School between June 1 7,-20. He distributed a brochure of a program begun in Menlo Park involving approximately 400 families, which had since,moved to Palo Alto, and involved exhibition lacrosse teams at Candlestick Park, Oakland Coliseum, Stanford, etc. That team would shortly be inv ted to tour the Soviet Union, and one of the proposals he would make to Council in future was consider- ation of recognizing --not sponsoring --the team as an official Palo Alto team. APPROVAL OF MINUTES OF APRIL 14 1936 APRIL 21, 1986,, AND MAY 5� 1986 Mayor Cobb commented that the Minutes of May 5, 1986, were of the meeting of the previous Monday and were produced under tremendous pressure by the City Clerk's office in a very short period of time. It was not the kind of verbatim sense minutes as in the past but was a more abbreviated form and therefore less precise on a word-for-word basis. The effort was extraordinary and required a good deal of midnight oil on the part of Gloria Young and her staff to get the minutes turned around so quickly so Council had the use of them for that evening's continued discussion of the Downtown. Council should not expect that kind of turnaround often. He thanked Ms. Young. MOTION: Mice Mayer Woolley moved, seconded by Fletcher, approval of the Ninates of April 14, 1986, April 21, 1986, sod May 5, 1916, as submitted. MOTION PASSED snaoimessly, Klein absent. 7 1 6 3 5/1.2/86 CONSENT CALENDAR - MOTION: Coencilmember Bechtel moved, seconded by Fletcher, approval of the Consent Calendar. Referral ITEM 41,1986-87 BUDGET - REFER TO FINANCE AND PUBLIC WORKS COMMITTEE (FIN 1-1)) Action ITEM 42,E ORDINANCE RE AMENDING ZONING CODE AND SUBDIVISION CODE (2Od Reading] (ISLA 7-9) ORDINANCE 3683, entitled °ORDINANCE OF THE COUNCIL OF AL0 ALTO AMENDING TITLE 18 (ZONING CODE) AND TITLE 21 (SUBDIVISION CODE) REGARDING OEFIkITION OF LOT COVERAGE, COTTAGES 114 Ti( RE AND OS ZONES, INTERIOR SIDE YARDS AND VERTICAL ADDITIONS IM THE R-1 ZONE, PROJECTIONS INTO YARDS IN ALL RESIDENTIAL ZONES, SETBACKS IN PC DISTRICTS, NONCOMPLYING FACILITIES, AND LOT LINE ADJUSTMENTS' (1st Reading 4/28/86, PASSED 8-0„ Klein absent) ITEM 432_ ORDINANCE RE SKATEBOARDS IN PARKING FACILITIES (2nd Reading) (LEG 5.17) ORDINANCE 3684, entitled 'ORDINANCE OF THE COUNCIL OF THE Gift 6F PALO ALTO AMENDING PALO ALTO MUNICIPAL CODE SECTION 1.0.64.240 TO PROHIBIT THE USE OF SKATEBOARDS IN CITY OF PALO ALTO PARKING FACILITIES' (1st Reading 4/28/86, PASSED 8-0, Klein absent) MOTION PASSED unanimously, Klein absent. AGENDA CHANGES, ADDITIONS AND DELETIONS Councilmember Fletcher suggested roving forward Item 07, Jordan and Garland Open Space leases, and asked if there was any urgency on Item 48, Request of Councilmembers Patitucci and Sutorius re Seven -day -a -week Bingo Games at Fiesta Lanes. Councili,ember Sutorius said the time urgency on Item 48 was the charitable organizations attempting to pursue the potent i al of a Bingo operation needed to negotiate a lease for a Palo Alto prop- erty. The property owner needed to engage in those actions and come to some conclusions in the mid -June period. Therefore, absent any understanding of. Council direction for review of the proposed changes and feedback to Council for its review and con- sideration, the time frame was such the charitable organizations might lose the opportunity, MOTION: Councilmember Fletcher moved, seconded by Cobb, to bring forward Item 47, Jardae and Garland Open Space Leases. City Manager Bill Zaner said Item 47 could be the next item. Councilmember Patitucci suggested including Item 08, Request of Councilmembers Patitucci and Sutorius re Seven -day -a -week Bingo Games at Fiesta Lanes, in the motion, Councilmember Fletcher. said, with the explanation from Council - member Sutorius, she saw no reason to move Item 48 forward. City Manager Bill Zaner wanted to speak on Item 47 if pulled for- ward. Councilmember Levy asked if any members from the Palo Alto .Unified School District (PAUSD) were present to address Item 47. If not, he believed the item should be left in its normal place. 7 1 6 4 5/12/86 Mayor Cobb asked for a show of hands from members of PAUSD. He noted no one was present, and believed the item could be dealt with in a short time. MOTION PASSED by a vote of 6-1, Levy voting no, Woolley 'not participating,' Klein absent. MOTION: Coencilmember Patitecci moved, seconded by Sutorius, to move forward Item #8, Request of Ceencilmembers Patitucci and Setori es re Seven -day -a -week Bingo Games at Fiesta Lanes. Councilmember Patitucci believed Councilmember Sutorius' comments favored dealing with the item quickly because it was a request to modify the ordinance which required a fair amount of time to, implement. Councilmember Levy said that moving an item forward should only be done for extraordinary reasons. In the case in question, the only reason to do so was if members of the public were inconvenienced by being present until late in the evening. He believed the item should be taken in its normal course. If any members of the pub- lic wished to speak to Item #8, they would be shocked to find it being considered at 7:45 p.m. Mayor Cobb asked if there were any members of the public present whowished to speak to the Bingo issue. He noted three people and said if the item was not moved forward, they were unlikely to see the item until the following evening or, Thursday, depending on how long the Downtown Study deliberations took. Councilmember Renzel concurred with Councilmember Levy. Since that particular item could be dealt with the following evening and Council had a public hearing on Downtown which people were told would be on the agenda that evening, it was more appropriate to deal with the subject item, which might be controversial, at its proper course in the agenda. Mayor Cobb preferred to deal with the item in its normal course and would oppose bringing it forward. NOTION FAILED by a vote of 2-6, Patitecc1, Setor'ius voting 'aye,' Klein absent. ITEM #3-A, (OLD ITEM #1 ), JORDAN AND GARLAND OPEN SPACE LEASES TWIR -6-2) (CMR:2r2:6) Vice Mayor Woolley said she would not participate in the item due to a potential conflict of interest. City Manager 8i11 Zaner called Council's attention to the memo placed before them (on file in the City Clerk's office) amending the budget amendment (CMR:272:6), adding $1,644.66 to the amount for a total of $62,753.60. MOTION: Councilmember Bechtel moved, seconded by Fletcher, approval of the ordinance as amended to include the $7,634.60 rebate for a metal appropriation of $62,753.60. ORDINANCE 3685, as amended, entitled 'ORDINANCE OF THE - CITT OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1,85-06 TO PROVIDE AN ADDITIONAL APPROPRIATION TO LEASE THE JORDAN AND GARLAND SCHOOL SITES. NOTION PASSED by a vete if -7 .0, Woolley ° not participating,! Klein absent. 7 16 5 5/ 12/EV: ITEM al_i__ -AP'OINTriENT OF BOARD MFA1ER TO MIDPENINS !ILA ACCESS CORPORAfJON BOARD (Continued from 5/5/86) (PRE 7-3) Mayor Cobb said in the shirtsleeve session on May 5, 1986, Council became deadlocked and unable to reach a decision on the matter. The two people over whom Council was deadlocked were interviewed again by Council. RESULTS OF THE SEVENTH ROUND OF VOTING City Clerk Gloria Young announced the results of the seventh ballot: BECHTEL VOTING FOR: COBB VOTING FOR: FLETCHER VOTING FOR: LEVY VOTING FOR: PAT I TUCC I VOTING FOR: RENZEL VOTING FOR: SUTORIUS VOTING FOR: WOOLLEY VOTING FOR: Josephson Josephson Josephson Burkhardt Burkhardt Josephson Josephson Josephson Ms. Youno said Mr. Josephson received six votes and ,as appointed. Mayor Cobb congratulated Mr. Josephson. He hoped Mr. Burkhardt would apply for other things where Council could make ,use of his talents. There were excellent applicants for the position. ITEM #5, DOWNTOWN STUDY - CONTINUED ITEMS FROM THE "STUDY SESSION" DISCUSSION OF DOWNTOWN ISSUES/ACTIONS: NEIGHBORHOOD PR6TECTION; HOUSING; AND LANG USE PLAN MAP CHANGES (Continued from 5/6/86) (PLA 7-4) (CMRT y Mayor Cobb said on May 5, 1986, Council completed the discussions on the subjects of Growth, Parking and Traffic, Character and Scale, and Economic Vitality, leaving discussions of Neighborhood Protection, Housing, Land Use Plan Map Changes, and whatever over- view and general comments Council wished to make before getting back to the regular process. The Public Hearing continued from the meeting of April 28, 1986. It was his intention that Council complete the Public Henring that evening, and he expected the meeting would be continued to the following evening when Council would start its action, Neiaghborheod Protection Director of Planning and Community Environment Ken Schreiber described the goal of the neighborhood protection item as limiting traffic, parking, and building size and design and other impacts of downtown development so as to protect and preserve the residen- tial qualities of adjacent and other neighborhoods. Four comments related to the items on the agenda under that topic: first, the policy toward on -street parking impacts was to not have the cur- rent situation worsen rather than to shift significant numbers of cars off residential streets. Second, the traffic concerns included both downtewn traffic using residential streets and through traffic being pushed onto residential streets because of downtown congestion,: Third, regarding the item entitled "Commer- cial Height Limits, Setbacks," as a generalization the modified regulations followed the principle of having the commercial regu- lations mirror the residential regulations in the adjoining prop- erties, although there were some exceptions. Fourth , housing densities were scaled to have the lowest densitfes near residential areas. That was a critical part of neighborhood protection, especially in terms of bulk and scale of new development. 7 1 6 6 5/12/86 i 1 1 Councilmember Levy was interested in disrnureging parking in sur- rounding residential neighborhoods, which was point four of the eight -point plan: He did not see that happening very satisfactor- ily in the study and would be grateful for elucidation from staff or the Planning Commission as to the plans afoot to discourage parking in the neighborhoods. Planning Commissioner Ellen Christensen said the 'neighbors throughout the process indicated their willingness to live with the parking already there if the alternative was a permit system for parking in front of, their own houses. That was why the Planning Commission accepted the existing "deficit". the way that was. Mr. Schreiber said to move the cars off neighborhood streets involved one or more of several actions. One was the development of alternative parking more convenient, attractive, and desirable than the on -street parking. The second action was to actively discourage on -street parking which could be done through a number of devices. In any event, a supply of alternative parking was needed. That was not to discount the idea of mov iug people from drive -alone to multiple -occupancy vehicles, but even an aggressive program in that area would not substantially reduce the number of cars. If the structures were not located in the downtown area, they needed to be located either close enough so people could be encouraged to walk or be shuttle bused. Those alternatives were very complex. Structures in the downtown area tended to run up against the objectives and policies coming out of the study regarding discouraging major physical change and increase in bulk and mass of structures_ Considerable expense was also involved. Councilmember Levy clarified the peugr=am council looked at would only discourage parking in an indirect way, i.e., more parking was created closer to the places of business, but the program would not reduce the deficiency. The neighborhoods would have as a min- imum the same amount of parking intrusion they presently had. Mr. Schreiber said that was a fair assessment. Councilmember Levy commented that made Item 4 of the eight point plan misleading. Councilmember Sutorius said Council discussed off -site parking and the potential for in lieu fees, and the mechanics were Council needed a structure defined and sufficiently engineered so it could be identified as a specific plan before in lieu fees could be applied. He asked what was necessary for such a requirement. Council assessed the property a fee related to one space per 250 square feet which would be equivalent to the purchase of a monthly parking permit. City Attorney Diane Northway deferred an answer to that question until the next evening. She said staff had been talking about different aspects of in lieu parking. Councilmember Sutorius was "piggy -backing" on the concern expressed by Councilmember Levy. In the last meeting staff indicated an aggressive enforcement program affecting the neigh- borhood areas would be a difficult effort. Maybe . the combination of an aggressive but imaeinetive approach could ameliorate the situation. Referring to the specific recommendations under Neigh- borhood, the present zoning ordinances contained upwards. of 30-40 pages of parking regulation description and requirements, and within each of . the CN, CS, and CC a lot of specific provisions were built in as to how those properties might be developed when adjacent or across the street from a residential zone of any char- acter. The recommendation was to keep the existing regulations in the newly created zones. Planning Commission Vice Chairman John Northway said that was correct. Councilmember Sutorius asked if the Planning Commission could amplify on their analysis of the needs and benefits that came from the additional two protections: The street setback would need to match the residential district setback if the property was within 15U feet of a residential district, and the building height like- wise would take on the most restrictive height of the abutting residential zone. He asked how those protections were viewed as necessary in light of the existing protections. Planning Commission Chairperson Patricia Cullen said they were fortunate to have present Pam Marsh; a member 'of the Downtown Seedy Committee who also lived in a district impacted by that par- ticular regulation. Pam Marsh, member of the Downtown Study Committee, said one of the goals set up for the Downtown Study was to preserve the existing neighborhoods, and to continue their stability and vitality. The Committee believed there were a number of problems in the downtown that potentially threatened the existing neighborhoods, e.g., rarkiey and traffic. One was the effect of the urban design of large buildings within the downtown on the existing periphery "transitional" area where the neighborhoods met commercial zones. The Committee believed the existing regulations were not strong enough to guarantee what was built within those transitional zones actually provided a transition appropriate into the residential neighborhood. Height and setback were issues the Committee iden- tified. eTo arrive at that point, the Committee took a walking tour of both the north and south neighborhoods looking at areas where commercial buildings abutted residential areas, and those were the two problems they identified and believed could be addressed in the regulations. Councilmember Sutorius understood "abut" to mean adjacent to or contiguous with. The proposal was 150 feet for the two specific protections, and he needed to know how far away from the residen- tial zone the Downtown Study Committee believed those additional controls were appropriate. Ms. Marsh said the 150 feet was already in the regulations in terms of whatever existed for commercial near to residential development. In setting up the new regulations, the Committee simply borrowed the 150 feet from the existing code. It was most critical where commercial development was right next to N-1. In the north the commercial district came next to an i'MD district, and in the south the problem was potentially a more serious prob- lem next to low-lying R-1 cottages. Ms. Cullen said basically it affected approximately a half a block to a third of a block of neighboring residential districts. Councilmember Patitucci referred to parking and asked if Council did nothing to alleviate the actual deficit, they would be creating a new problem by puttingg restrictions on where people presently parked by forcing them to drive around aimlessly. If Council took actions to force people out of the adjacent neighbor- hoods, where would they park. 7 1 5 8 5/ 12/86 Mr. Zimmerman said the intent of the Downtown Study Committee and subsequent Planning Commission recommendations was to make the deficit no worse in the short term and address the existing deficit in the long-term. Councilmember Patitucci said the recommendations dealt with long- term concerns. He believed what Council wanted was some fairly strong indication to see the long-term parking deficit reduced and the impact of parking in the neighborhood equally offset. He wanted to see a plan that addressed a specific. period of time as opposed to e long-range plan. Ms. Christensen pointed out the Planning Commission made a recom- mendation for an additional structure to allow for handicapped and seismic exemptions, and to provide the possibility of in lieu parking for lots too small to develop. To do anything further about the deficit, Council was talking about one additional struc- ture beyond the additional structure recommended by the Planning Commission. Councilmember Patitucci said parking in the immediate neighbor- hoods should be restricted while long term usage patterns in the various lots were created. If a serious parking problem existed, he wanted action taken with associated costs imposed on the bene- factors. Mr. Schreiber did not believe the Citye experienced a "major uproar" from the neighbors regarding the parking problem. In 1981, staff pursued a Parking Management Program which restricted on -street parking and included shuttle lots and buses. Council rejected the program partially because of a demonstrated lack of support by citizens. The lack of support evidence was fed into the objective of not increasing the deficit but not necessarily reducing it either. Councilmember Bechtel supported the Parking Management Program when it was discussed by the Council. She referred to a group of neighbors east of the Palo Alto Clinic, outside the study area, whose recent petition expressed interest in doing something to protect their neiehborhoode She asked why the Planning Commission did not recommend a restriction on all day parking within the study area. Ms. Cullen said there was no support from people who lived in the area to restrict on -street parking. The opposite was true. The citizens liked their proximity to the downtown vitality and did not want to upset the applecart. On the other hand, they did not want parking to get worse. Councilmember Bechtel referred to Councilmember Patitucci's con- cerns about protecting neighborhoods, and believed the eight -poi ntiti parking proposal s :ggested by the Downtown Study Committee and recommended by the Planning. Commission was a start toward using existing parking more efficiently. For the neighborhoods who wanted parking permits, Council should explore that possibility. Sht saw many parked cars at 6:30 a.m. beyond the two or three hour restricted zone inside of Channing or Homer and on the opposite side of Lytton. Those people did not use the parking structure because they would rather _walk two blocks than pay to park. Councilmember Levy did not believe a deficit existed but rather people desired to park for free. During the noon hour that day, Lot "Pi was over 50 percent vacant. • if people wanted to park in the garage all day, there was no problem. All day parking in neighborhoods needed to be specifically discouraged or prohibited. otherwise the problem would remain status quo. He asked why the specific .discouragement or prohibition was not addressed. If the 1 6 9 5/12/86 neighbors were not interested in City intervention, Council should not get involved. If the existing Lot "J" was over 50 percent vacant, an intensive marketing program was needed to point out its advantages. ,It might be the City was charging too much and the market would not accept it. It was risky to have a plan which called for the construction of Many parking structures if the ones presently available were vacant. Mayor Cobb agreed there were parking spaces available in Lot "J" for a fee but people preferred to park for free. Some employers made it easy for their employees to move their cars every two hours and part of the "marketing" program should be to work with employers downtown to avoid that situation. Mr. Schreiber said the present parking situation in the downtown area did not cause enough discomfort for employers, employees, or neighbors to warrant significant change. Vice Mayor Woolley referred to No. 7 of the eight -point program which said "involve employers in the parking management." The recommendation was for Council to approve the implementation of the eight -point program. She sensed Council wanted more teeth in the implementation. She agreed with a letter from Cheryl Lathrop (on file in the Clerk's Offoce) which suggested Council work with the businesses downtown to get their employees to park in the per- mit parking. Councilmember Patitucci referred to the parking situation and said there was a major effort toward no growth Downtown. He queried whether there would be such a major response toward growth if there was not a major problem with parking. Councilmember Renzel said it was suggested the existence of parking spaces downtown reflected no problem. She asked whether there would be any vacant spaces if all of the cars parked in the neighborhoods parked Downtown. Mr. Schreiber said there would be far more cars than spaces in the downtown area. Councilmember Renzel clarified without significant growth restric- tions the City would end up with more cars in the neighborhoods. Ms. Christensen said the neighborhood accepted the existing situ- ation but expressed unwillingness to live with it getting worse in terms of parka ny moving further into the neighborhoods or more traffic on their streets. The Planning Commission addressed its parking recommendations to new developments so the parking situa- tion Downtown would not get worse. Retaiaq Mr. Schreiber said the Comprehensive Plan Housing Objectives were: 1) maintain character and quality of residential neighborhoods; 2) maintain diversity of housing opportunities; and 3) increase housing especially for households of low and moderate income and households with children. There were many references to housing incentives and he did not believe the word "Incentive -s" was war- ranted because the 25 percent Below -Market -Rate (BMR) requirement on the development of four or more units would have a discouraging effect on the devel opn ent of new housing. It appeared the actual cdr truction costs, including underground parking, were higher than the BMR price levels. Under the current situation, some costs were passed along to the market rate units in the develop- ment with the percentage of market rate units falling from 90. percent to 75 percent. With the BMR program applied to smaller developments there was less flexibility. for shifting construction_ 7 1 7 0 5/12/86 costs. Further, the Downtown Study would probably result in a greater premium for commercial space with higher reets. The best trade off of profit and risk might well be 100 percent commercial space with surface parking especially in the CD -S and CO -N with 0.4 FAR rather than some type of mixed use development which might trigger having some or all of the parking underground. Regarding housing incentives for sub -area one the risk, delay, and complex- ity resulting from the site and design requirements for housing could substantially encourage commercial -only projects regardless of whether they were new developments or rehabilitations. Based on staff's experience, mixed use projects almost always had greater construction and management difficulties for the private sector than 100 percent commercial or housing projects. Those factors were also' fed into reluctance on the part of many property owners and developers to pursue housing in or adjacent to the Downtown core area. Councilmember Fletcher asked whether Mr. Schreiber opined the 25 percent BMR requirement would be a detriment to new housing in the entire City or just sub -area one. Mr. Schreiber clarified his comment regarding sub -area one related to site and design requirements which added a substantial length of time and uncertainty to the applicant. Regarding the 25 per- cent BMR, the objectives in the Comprehensive Plan spoke to main- taining diversity of housing opportunities, especially for house- holds with low or moderate income. While the 25 percent BMR requirement might well be app aapri ate, its economic impacts might discourage individuals and developers from pursuing housing. Councilmember Fletcher asked about a BMR percentage which would not be a disincentive. Mr. Schreiber said no. He did not believe staff had detailed enough knowledge of the intricacies .c►f housing finance to respond. Preliminary indications were the 1986 tax bill might have signif- icant impacts on the overall financing of housing. Ms. Cullen clarified the Planning Commission recommendation regarding the 25 percent BMR, 1.5 FAA and the Site and Design Review was only intended for area one. The rest of the area was left with varied incentives for housing, no BMR requirement and no site and design review. Lou Goldsmith, Palo Alto Housing Corporation (PAHC), believed pro- posed restrictions and restraints for the Downtown contained many factors which would increase the cost of any housing. Site and design review took time and caused uncertainties, and cutting the allowable housing by as much as 50 to 80 percent from what was now allowed by the zoning in and of itself was a major negative factor in terms of housing costs. Requiring more parking for a mixed use development Downtown than would be required somewhere else in the community would force underground parking sooner than otherwise. He referred to the question of counting covered parking at or above grade level as floor area. The April 3, 1986 staff report stated the provision would apply to all covered parking visible at grade. He queried the definition of "visible" and what happened if parking was one foot below grade. If any parking for h .sing below grade on a mixeduse site counted as floor area, there could not be as many units and the cost of construction went up. The Planning Commission was mainly concerned about possible construc- tion of large -private parking structures. He saw no rationale which said the provision of below grade parking as floor area. should be applied to a simple low density development where only .4 commercial could be built and as little as .25 to ,5 housing could be built. Regarding the likelihood of obtaining 8MR units, the chances were virtually zero because small lots would not accommodate enough housing at a .25 to .5 FAR to get up to ten units. Councilmember Bechtel asked about the differences in the amount of housing to be produced with the existing mechanism as opposed to the developable floor area mechanism proposed. Mr. Zimmerman said the concept under existing regulations was based on site area. A FAR of 1 :1, which was the site area, was the amount of units possible depending on the formula. If the formula allowed 44 units per acre, an acre of site area or a 1 :1 FAR would provide 44 units. A developable floor area (DFA) con- cept was based on allowable floor area. A FAR for housing greater than 1:1 would provide more units. The formula recommended by the Planning Commission was one unit per 1,000 square feet of floor area; therefore, a one acre site with a 1.9 FAR would provide approximately 75 dwelling units compared to the existing highest density of 45 dwelling units. Mayor Cubb referred to a prior comment if the housing incentive, especially in sub -area one, was enticing enough, it might make housing the highest economic use of the land. Mr. Schreiber believed one of the objectives was to try to pre- serve the service commercial businesses. If those were to be replaced by redevelopment, and particularly redevelopment with housing, there should be substantial community benefits from the housing. The 25 percent BMR concept came out of the desire to have a major public benefit from new housing in the area --a "pub- lic benefit" being defined as "units less than market rate prices consistent with the Comprehensive Plan." In combination, the relatively low commercial square footage and the strong desire for as much BMR as possible should work to discourage redevelopment and replacement of existing facilities and, if they were replaced with housing, there would be a major public benefit. Mayor Cobb asked if it was likely that would make housing the highest economic use in sub -area one with the ext:a incentives. Mr. Schreiber said staff did not have economic knowledge to respond with great precision, however, he doubted much c `.' that area. would turn over in the foreseeable future to new deveropment with a large amount of housing. There was too much economic utility in the existing •structures, or the existing amount of com- mercial square footage was above what could be achieved: through redevelopment. Mr. Zimmerman said during the Planning Commission deliberations, Ms. McCown acknowledged that the recommendations for area one responded to conflicting objectives --on the one hand to retain existing service business, and on the other to encourage housing in an appropriate higher -density corridor along Alma. Both the Planning Commission and staff acknowledged they did not know how effective the housing incentive would be. Mr. Hirsch pointed out the .Commission was not uniform. He voted against the housing proposal because of its impact on parking and traffic. Councilmember Patitucci agreed with Mr. Hirsch's remarks. It was not clear a housing use had a different traffic pattern and parking requirement than commercial. Development of housing down- town was desirable from that standpoint; more people added vital- ity and patronized the service commercial businesses. He asked if there was a clear view of the simple question of whetner it was desirable or not in light of the traffic and parking problems. 7 1 7 2 5/12/86 1 i Ms. Christensen believed traffic and the parking situation were favorable for housing. The Planning Commission heard a strong sentiment voiced from the community to preserve services business. If there was housing in addition, that housing should be aimed at the primary goal of the Comprehensive Plan which was low/moderate- income, family -type housing. Councilmernber Levy voiced a concern regarding procedure. He recognized Council's need to get to the public, however, the item on Land Use Plan Map Changes was complicated. He suggested staff give an overall review of the Land Use Map Plan Changes. Mayor Cobb proposed Council set aside the "shirtsleeve" session at that point, complete the public hearing, and then finish the land Use Map Changes and whatever overall remarks they wished to make that evening, and save formal actions until the following evening. Councilmember Levy: asked staff to briefly summarize the Land Use Map Plan Changes to clarify what was proposed. Mr. Schreiber said in regard to the first two changes to Neighbor- hood Commercial, they were not particularly controversial. The public conveyed a general sense for both of the changes for the areas north and south of the CC district to reflect the commer- cial activity and the retention of that activity. The change on High Street to Multiple Family Residential reflected an existing situation, and the changes on Aima and Addison frofeeService Com- mercial to Multiple Family Residential received relatively little publi-c input during the Planning Commission process. The south side of downtown was the one area where commercial extended sub- stantially into ,a residential area` and into a single fami ly resi- dential area. The objective of the change was to pull back the commercial land use boundary coterminous with Other areas, COUNCIL RECESSED FROM 9:05 p.m. to 9:20 p.m. ITEM #6t PUBLIC HEARINGL DOWNTOWN STUDY (PLA ►-4) A. Planning Commission recommendations on Draft Environmental Impact Report; Comprehensive Plan Amendments; new zoning and other ordinances; and other policies, implementation programs and projects. (Continued from 4/21/86) B. Historic Resources Board recommendations on changes to the Historic Preservation Ordinance. C. .Planning Commission recommendations re: Comprehensive Plan Land Use Map Change and Zone Change for property located at 657 Alva Street, Mayor Cobb declared the Public Hearing reopened. Cyanne McElhinney, 666 Tennyson Avenue, Palo Alto, a life-long resident of Palo Alto saw many changes occur in the town. During the 1950s and 1960s, the residents of Palo Alto were greatly saddened at the exodus of shoppers from downtown to the sur- rounding shopping centers, and they were excited and pleased: by the downtown revitalization during the late 1970s and early 1980s. Now, however, the Pl enni ng Commission looked closely at the down- town and made its recommendations to the Council, and she was pleased witi those recommendations. She wanted to limit the amount of development in the downtown area and protect the retail establishments and service -oriented businesses She expressed concern about traffic and parking. She asked the Council to keep density down in the downtown area so the residents could enjoy shopping locally. i 7 1 7 3 5/12/86 Ed i 1restoue, 771, Guinda Street, commented on one of the traffic mitigation proposals in the staff report which could adversely affect a residential neighborhood, specifically VI.J.3.(a) in the DEIR. As always in Palo Alto, a balance must be struck between those interested in development and the impact of the proposed development on the ne1 ghborheods a He and his neighbors were con- cerned about the impact of potential mitigation measures and the effect on the neighborhood south of University Avenue and east of Middlefield. Traffic flow on University Avenue was heavy and, as a result, the Downtown Plan recommended an additional lane be added to the westbound approach of University Avenue for through traffic. Since there, did not appear to be any way to reduce the total traffic flow downtown, the one thing that had to be avoided was an additional traffic burden on the residential area. There- fore, streets which already carried most of the traffic, like University Avenue, should continue to carry that traffic. Diverting traffic to areas where children played was not a wise idea. Consequently, he and 115 of his neighbors signed a petition requesting mandatory steps be taken to avoid adding an extra traf- fic burden to their neighborhood. There were three alternatives listed in the EIR: 1) to widen University Avenue; 2) to encourage traffic flow off University and onto Guinda and associated streets; and 3) to do nothing. He opined neither of the last alternatives was advisable. To shift traffic onto Guinda or to do nothing at all would, according to the report, have exactly the same effect --a much greater traffic flow into a residential neigh- borhood. They believed the only safe alternative for their child- ren was to add an extra lane to University Avenue westbound. He presented the petition to the City Clerk (on file in the City Clerk's office.) Mary Carlstead, 147 Walter Hays, said there was great concern throughout the community that Council was more concerned about people who did not live there as opposed to those who did. There was a great deal of talk about the need for the job/housing im- balance as if that was some sort of holy eleventh commandment that could not be disputed. There was no legal, civic, or moral obli- gation for Palo Alto to increase its population and compromise the quality of life of those people who already lived there. If Coun- cil carried the job/housing balance theory to its logical conclu- sion, they would have to say, °If you live here and you don't work here, you ` ve got to leave. If we provide you with housing to live here and work here and you change jobs, you've gat to give up your Housing." If every blade of _grass available in the community was built on, there would still be a tremendous desire by people who did not live in the City to do so. She read Councilmembers' statements on the ballots when they ran for office. °Counci 1 - member Levy: Protect the character of the residential neighbor- hood." "Vice Mayor Woolley: I have come to appreciate the people and forces that shape Palo Alto development through researching of history and participating in civic organizations. This knowledge and experience gives a special respect for the community and a desire to preserve its finest aspects." "Councilrnember Renzel: In the next few years, we will be making crucial choices. Will Palo Alto allow office development and traffic to escalate or will we protect our neighbor=hoods and our quality of life? I stand firmly for the latter. We must retain a human scale downtown. We must slow down excessive growth, employment growth which creates pressure for high density condominiums." "Councilnrember Bechtel: Protect the special qualities of Palo Alto's neighborhoods.° "Councilmember Fletcher: I have strived for comprehensive approaches ,iEo housing, environmental, transportation, and neigh- borhood issues, and I have supported efforts to protect our envir- onment and use or our resources efficiently." 'Councilmember 5utorius: Pursue land use planning that precludes unacceptable zoning potential." "Councilmember Klein: Qualified to maintain Palo Alto as a marvelous place to live and work." Council could not have it both ways and must make the choice. If they built and built, they violated the trust they ran on when they ran for office. 7 1 7 4 5/12/86 Thomas Culligan, President of a newspaper headquartered at 245 Lytton Avenue, spoke about the value of people who went into their community each day from other communities, who worked in the buildings under discussion, and who: added substantially to the social and cultural fiber of their communities during the hours they were there each day. Of the 350 employees who worked at his company, approximately 15 percent lived in Palo Alto, but all were involved with issues of the community; making contributions to that community even though they did not live there. He referred to the limitations being considered and their effects on the particular building that housed their newspaper. The building was designed as half office and half manufacturing facility and cur- rently had 77,000 square feet of space on 88,000 square facet of land. Due primarily to the advance in electronics, in the five years the manufacturing part of that business would occupy 10-15 percent of the total space, where ten years previously that part occupied 50 percent. There -were many options for that marvelous structure on that key block on Lytton Avenue, and he encouraged. Council to look at creative solutions to dealing with their objec- tives and deal in <.,takiny those 15 points and putting then into the measures in order to solve some of the problems.- There was a mar- velous lot behind the building that could be utilized for multi- story parking, and there was no reason why they could not have commercial, both service and retail shops in the front part of that building nor why they could not offer housing above that building. They needed the creativeness brought by a_ratio greater than 1:1, greater than 1:2.5, or perhaps 2.1. He encouraged establishment of ratios that allowed Council to accomplish their objec ives, Mike Morris, 999 Alma Street, President of Don L. Morris Auto Parts, opined the downtown study proposal would preserve many services that 1) were important to the downtown community; 2) would remain in town and not force the public to go elsewhere for services; and 3) would eliminate additional traffic created if the public had to drive out of downtown to those services. The proposal also changed the land use map and created some zoning changes. Those changes would let businesses remain in almost all of the existing areas. He was concerned about the proposed change from commercial to residential in the southern most part of the downtown area known as 1019-1027 Alma, and 112 Addison. His letter (on file in the City Clerk's office), indicated those parcels had a long history of commercial use: auto repair, bicycle repair, etc. Those parcels were always in use and were a benefit to the local community. If the City rezoned those parcels to RM-2 from commercial, Council should be aware the City would lose a bookstore, a bicycle repair shop, an auto repair facility, a stereo repair stop and, most importantly, a private parking lot used by not only those four businesses but other businesses in the local area, thus keeping vehicles off the already -crowded streets during the work week. He firmly believed in the idea of rezoning certain parcels of property from commercial to residential, and that was necessary when there was either a large vacancy rate in available commercial properties or the commercial property became a menace to the neighboring residential area. In .the case of the properties in question, neither circumstance was relevant. The current businesses there were not made for large office complexes and had a vied relationship with the residential neighborhood. The alley between the commercial buildings and the residential houses acted as a buffer, and the years of coexistence proved that business and residential properties could live and work together i that area. He urged Council to take a second look at that part of downtown. Mayor Cobb asked if Mr. Morris owned the parking lot. Mr. Morriss said yes. Mayor Cobb asked about Mr. Morris' long-term plans for the property if the zoning change did not go through. 7 5/12/86 Mr. Morris planned to expand the auto parts operation currently at 999 Alma Street, move some of the retail operation to the 112 Addison/1019 property, and continue to utilize the parking lot not only for his employees but for customers and other businesses in the area. Counciirnember Bechtel understood during the Planning Commission hearing on the item; Mr. Morris did not object to allowing the other side of Addison to be rezoned to residential. Mr. Morris said that was correct. Councilmember Bechtel asked if he had changed his mind. Mr. Morris said at the initial Planning Commission hearing he feared more for his business future than for the parcel across the street. The people that owned 1027 Alma Street contacted him and presented positions in regard to those properties. After thinking about it, he agreed with them. Simon Cintz, 1626 Wilshire Drive, Aptos, drew up in Palo Alto and his parents resided in the downtown area on Ramona Street. He spoke to the rezoning of properties owned by Mr. Morris and prop- erty his family owned at 1027 Alma Street. The downtown plan pro- posed to rezone the strip of ]and approximately 150-200 feet on Alma Street from commercial to residential. His family owned the property for 35 years and opposed rezoning. The Minerva'.Bookstore operated on the property for six years. He attended the previous week's Council work session and realized the property should remain commercial. To preserve the character of the local neigh- borhood and retail commercial establishments he believed the prop- erty at 1027 Alma Street and the adjoining property should remain commericial. Their property was zoned and used commercial for approximately 40 years. The property was successful because it was small, located on Alma Street, and attracted small businesses. A letter from the owner of the Minerva Bookstore said commercial property values in downtown Palo Alto increased and it was diffi- cult for a small merchant to maintain a business if located on University Avenue or the area immediately adjacent. It was impor- tant there be other lower -cost locations for small businesses and Council should make i t economically feasible for small businesses to exist Uowntow,n. He urged Council retain the commercial zoning on his family's property. Don Klages, owned 281 University Avenue and Wideman's Men's Store, and spoke on his own behalf. His business :tarted Downtown in 1959 and he continued to work to solve probems the Downtown experienced through the years. Customers were displeased about parking but were generally pleased with the Downtown's develop- menc. There , were nice restaurants and the bleak buildings no longer existed. Retailers were concerned about the seismic ordi- nance and the downzoning 1: 1. Being required to rebuild his structure because of the seismic ordinance without being able to recoup the expenses would mean hundreds of thousands of dollars to be recaptured. It was a Catch 22 situation because if he could not increase the value of his property, his business might be forced to relocate. Council restricted first floor usage so if he was forced to sell, it was impossible to sell to anyone other than another retailer. ler. If he could not survive Downtown, few retailers could. He needed the flexibility to sell the property to a commercial use, bark, savings and loan or someone who might afford to rebuild a building and recapture its value on a 1:i ratio. Counci lweaber -Pat i tucci asked how many stories and the FAR of Mr. Klages' building. If Mr. Klages built and added a second story, he asked who could occupy the space. Mr. Klages said his building was one and one-half stories in height but there was only the downstairs. The current FAR was 3:1, with 7,50U square feet on the first floor and in the basement. Professionals, realtors, advcrtisine agencies, etc. would occupy second story office space. The people Uowhtuwn who used the services provided the retail vitality. Downtown survived after Stanford Shopping Center was built because many lawyers and other professional people walked into stores during the noon hour and bought shoes, clothing and ice creem cones. Those people would occupy the buildings and also be clients and customers. Vice Mayor Woolley appreciated Mr. Klages reference to the Catch 22 situation and asked for comment regarding the Planning Commission recommendation that businesses with the seismic problem receive a 2,000 square -foot incentive, including eight exempt parking spaces. Mr. Klages said on a 7,500 square foot building, 2,000 square feet was meaningless because it would be difficult to add such a small area compared to the entire store. There would be a much larger area to rebuild, and it probably would not be enough to be eco- nomically feasible. Vice Mayor Woolley queried the second floor. Mr. Klages did not believe it would be economically feasible to put the 2,000 on the second floor because of the additional cost. When Mr. Rapp rebuilt his building, his figures reflected one entire floor. Even with the entire floor, he had a negative cash fl ow. Vice Mayor Woolley asked for comment regarding DEIR and Committee consideration of a lower cost loan program for rehabilitation. Mr. Klages said it would help. He was concerned about small busi- nesses being forced out. Urew Young, 3190 Mackell Court, said his family bought 849 High Street in Palo Alto for P1,000 in 1945. It was originally Palo Alto Auto Wreckers. The property was currently National Auto Club and Towing Service. He believed all rights granted his family to continue to serve the community should remain. All service busi- ness owners deserved their fair share in the sweat equity they worked two to t=free generations for. The Downtown Study and the "grandfather" clause would make it possible for him to succeed in the nature process of change. Teresa b.ourke, 610 Coleridge, was concerned about the. building explosion Downtown and in the neighborhoods over the past five ,years and its associated problems. She applauded Council efforts to hear and discuss the citizen's concerns about traffic and parking Downtown and take steps to change zoning and limit growth. :`(growth should be limited in commercial developments to five per- cent rather than the ten percent recommended by the Planning Commission. Some buildings were in the process or construction or were approved but had not yet begun construction. She urged buiidlnee be completed and occupancy habits reviewed before moving ahead with more building.. She wanted Council to protect the interests of residents and businesses from eager developers. She encouraged limitsi on the size .of any new construction. Palo Alto shod.ld sot limits and create asesthetically pleasing new buildings with space for attractive landscaping. In the Urban Redevelopment Area of Los Angeles, she observed a lot of open space for outdoor planting and sitting in the New Muserm of,Modern Art complex still under -construction. Palo Alto could put more effort toward landscaping and planning. She encouraged Council support the diversity of retail shops Downtown. It was sad to see lore time retailers close but healthy and attractive shops and- restaurants remained. She encouraged the , balance to create, a continuingly healthy and aesthetically pleasing Downtown area. 7.1 7 7 5/1.2/86 Linda Ross, lab North California Avenue, spoke as President of the League of Women Voters (LWV) of Palo Alto. During the past year, the LWV reviewed the Employment, Housing and Transportation portions of Palo Alto's Comprehensive Plan and agreed the basic goals of the sections were valid. The LWV was concerned current zoning in many areas did not clearly reflect the goals and should be changed. Current zoning Downtown permitted an amount of development the LWV believed would generate unacceptable levels of traffic, exacerbate parking problems and produce many undesirable changes in the character of the community. Mezeures to reduce the employment potential Ly limiting the overall growth or reduced FARs were important steps to ameliorate the problems. The LWV recognized the need for more housing if Palo Alto was to meet its goal to maintain a di vers ity of housing opportunities and lessen the ,lobs/housing imbalance by increased housing supply. It was important some future development in the'Downtown area consist of housing units and the LWV supported the Planning Commission recom- mendations for a higher FAR for projects partially or entirely housing. -The pilot program wherein additional FARs would be awarded to a project if at least 25 percent of its units were affordable and within the City's OMR Program seemed appropriate. The LWV supported incentives to encourage developers to build more housing rather than offices; measures to keep needed and/or desired businesses and services from being forced out of the City; and the recommendation of a ground floor retail zone in the Downtown area. An ayeressive traffic management program was also needed if the City was to achieve any significant improvement in Downtown's traffic and parking problems. The LWV supported actions by the City to reduce commuter and general public depen- dence on the private automobile. It might be time for Palo Alto to adopt an ordinance similar to the City of Pleasanton whicf required employers to offer incentives and other programs to pro- mote car pooling, van pooling, the use of public transportation, bicycling and walking. A transportation coordinator could assist employers to reach targeted significant reductions in one person, one Car trips for the benefit of all who lived, worked and shopped in Palo Alto. The LWV appreciated the time.and effort invested in the Downtown Study. She urged Council take ;the necessary steps to control growth and associated traffic and parking problems in Palo Alto's Downtown area. Chop Keenan, 400 Hamilton, was not in conflict with the basic goal of ;350,000 square feet over the next 10 years. Historical and seismic incentives were gratuitous at best. Regarding subsidized loans as additional incentives, Palo Alto would soon be a net borrower not a net lender and since net borrowing would not be attainable under Proposition 13, the high level of City services demanded in Palo Alto would have to be reduced. He urged Council refocus on a buy -in parking- grogram which would be required with the 750 to 1,000 new City parking spaces Council would create a market for. He heard no second to the motion for a second parking garage much l*ss another 1,000 space parking garage within the Downtown., The ."beauty contest" concept would assure Council and citizens that 350,000 square feet would be built. Council had control and needed a realistic FAR to go along with it. The FAR had to be consistent with the Council goal of 350,000 square feet but not radically reduce the land values in Downtown Palo Alto. It was not necessary for the last .25 to occur to meet Council's basic goal of 350,000 square feet, but if he believed a 1:1 FAR would have adverse consequences on the land values. Sylvia Porter, 93t Hamilton Avenue, said according to the Transportation Department, the Planning Commission recommendation of 350,000 square feet of additional commercial space meant a 10 to 15 percent ,increase in traffic. One suggestion to restripe University Avenue and eliminate the left -tun! signal at university and Middlefield would create about 21 percent additional traffic into the residential area. She wanted to preserve the quality life and hoped Council would be more concerned about those who lived in Palo Alto than those who commuted in. Wad Bob Moss, 4010 Orme, said the Palo Alto Civic League submitted letters to the Council (on file in the City Clerk's office) regarding its position on the Downtown Study generally similar to those expressed by Linda Rosy fur the LWV. He referred to Downtown development over the past two years and said if develop- ments were allowed to continue at such a pace, the Downtown vitality would be destroyed by uncontrolled growth of offices, increased rents and the loss of retail establishments. Parking would be impossible and traffic would be eridlocked, He believed a 2:1 or 1.25:1 FAR was excessive and development would reach the 350,000 or.500,000 square feet allowed. A 2:1 FAR would allow developers to get in as much as possible before the window closed. Once the buildings were up, there would be arguments about whether to go to a .5 or .75 FEAR on the remaining lots to ameliorate the additional traffic and parking problems, additional jobs, and growth Downtown. A 1: 1 FAR was excessively generous but could be accepted on an interim basis. Regarding whether too low a FAR would restrict the design flexibility and produce many small cubes, a five -story height limit with an FAR of .3 tended towards buildings three, four or five stories hiyh with a similar appear- ance. On the other hand, five stories with an FAR of 1.0 could only cover L0 percent of the land. A one story building could build to 100 percent of the lot coverage with a lot of possible developments in between. The Architectural Review Board (ARB) reviewed and _could reject unattractive designs and buildings. Council could charge the ARB with not allowing any cubes. -He did not object to the basic concept of mixed use commercial and resi- dential with the incentives suggested but strongly objected to the Director of planning and Community Environment forgiving up to 20 percent of the parking normally required on those types of sites. He requested no relaxation in the Downtown area because parking was t i yhtly restricted. The condominiums across the street from the Downtown Library were allowed to build with less than the required parking with the idea they would use the library parking lot at ni yht. However, the parking overflowed onto the streets. Mr. Keenan said if the FAR was reduced, land values would drop. Offices did not pay taxes and based on $200 per square feet to build, on 350,000 square feet of development, the City would get $70,000 per year total property taxes. Based on Proposition 13, the City only received one -tenth of one percent of the value of the bindings. Regarding parking, the short-term spaces were hard to find. Council might consider reducing permit parking spaces and allowing more short term parking in those lots while moni- toring the amount of overflow parking into the neighborhoods from the reduction in the permit parking. If after six months, people were driven into the neighborhoods, the situation could return to the status quo., The City did not know the effects of development in the pipeline and he urged Council not allow further development until all pipeline projects were built and occupied at the 85 per- cent level. David Schrow; 302 College Avenue, said thousands of Council con- stituents did not believe commercial and industrial development in the City over the last five years resulted in a net improvement in the quality of life. for Palo Alto. 1 He queried how the City could fairly stop the process and was concerned aoout the people who spoke reyardiny their businesses and commercial interests. The City did not know where it was in terms of land use in order to plan for the future nor did it know where it was at any time in the past. The buildings already -approved and constructed but not occupied might have a substantial impact on the quality of life in the community, quality of services the City provided, and the revenues to the City to provide them. To plunge forward and agree to accept another 350,000 square feet of industrial and commercial construction in a town which bemoaned the imbalance of such con- struction for decades was foolhearty. Externalities did not appe r on anyone's balance because costs were widely distributed and it did not pay to keep track of then or the people affected did not regard them as something they could personally control. 7 1 7.4 5/12/86 He referred to the 1,200 space parking shortage in the Downtown area. He understood a parking space Downtown cost about $25,000, so 1,200 spaces were worth about $30 million. At current rates of return, the federal government could only borrow at about six percent. Assuming a fair rate of return on $30 million was $1.8 million, then the $2 million someone wrote was being contributed to the public treasury by the commercial enterprises Downtown was 90 percent offset by the $1.8 million subsidy the enterprises were extracting from the neighborhood residents to tolerate the traffic and parking down the streets and in front of where they lived. Jean Rarnacciotti, 959 Waverley, referred to election promises in 1983 when the theme "Preserve Palo Alto" ran through most of the platforms. Downtown Palo Alto improved from 15 years prior. She requested Council differentiate between progress for a few and progress for many. Progress for the small number of builders and developers usually meant obtaining the most profit out of a piece of land. Progress often disregarded the environmental effects of the community and sometimes disregarded the consideration of the surrounding neighbors. She believed progress for most Palo Alto residents meant d drastic reduction in the rate of building both commercial and condominiums. Paul Smith, 1336 Webster Street, supported the staff recornmendatice for a FAR of 1: 1 and commended the intensive review of the problem and the creative way proposed to control growth in the Downtown area. He commended Council's resolve in preserving the integrity of the Downtown area. The ,question was how much growth, if any, was needed in Downtown Palo Alto. If Council did not decrease FARs in the Downtown area, there would be more intensive development of tee land; the construction of l aryer conrrneecial buildings! increases ine jobs'fhousing imbalance; increased parking problems associated with those additional commute parking needs in the downtown area; and increased traffic congestion. An objective of Section 6, "urban Design," of the Comprehensive Plan was to promote the orderly, harmonious development of the City to attain the most desirable land use and improvements through the review of new development. Section 7 dealt with the environmental resources which was conservation of scarce resources. He queried the drain of a 50,000 square -foot commercial structure on those vital energy resources of Palo Alto and how many residents might have to pay in some form for those services. Section 3, dealt with employment. He continually saw references to the jobs/housing imbalance which would get worse if the Job growth exceeded new housing. The objectives in the Comprehensive P:lan.yave some guidance. The Transportation Section of the Comprehensive Plan said the programs which aid the most to reduce employment increases were those which reduced site coverage limits antd established floor areaareae regulations in the zoning ordinance for nonresidential development. Michael Carton, 734 Guinda, said the traffic mitigation proposal .for University and Middlefield had the potential of -increased traffic --on Guinda. One proposal was to widen University Avenue; one was to redirect traffic into Guinda and other subsidiary streets; -and'one was to do notning. The widening of University Avenue involved a choice of whether to spend a few extra dollars or save some mature Magnolia trees, He feared for his children's safety if Council chose to save the Magnolia trees. Every morning between 6:30 a.m. and 8:30 a.m. he ran his dog from- his house to It i ncanada over to Eleanor Pardee Park and back and .every day he saw children from within his area and _outside the neighborhood traveling down Uuinda, Seneca, Floater, and other, streets in the area to schools of Addison, Palo Alto High School and Walter Hayes. Additignal traffic on the streets was repugnant to him and represented_ a serious threat to the children outside his immediate -area.-- Children used streets such as tluinda, Hamilton °, Forest, Seneca and Boyce to avoid traffic on University and Middlefield. He did not. want to ignore and -endanger the silent and iieature minority to save -a few Magnolia trees. Robbie Hill, 925 Hamilton Avenue, lived at her address for 18 years and supported widening University Avenue;westbound rather than having commercial traffic spill into the residential areas. She was concerned Council preserve the variety of services in the Downtown. She feared if commercial growth was not limited, lend costs would continue to escalate driving out the small retailers. She urged Council limit growth more drastically than ten percent. She supported the 1:1 FAR and believed it would encourage more creative designs, some open space and variety. Tatiana Van Houten, 600 Marion,Avenue, was absent iron Palo Alto from 1977 to 1983 and. was shooed at the increase in traffic in Downtown and -throughout the e.esidential neighborhoods. She was concerned about the impact of Downtown development on through traffic in residential neighborhoods and neighborhoods which adjoinedrmajor traffic arteries which fed Downtown. Marion Avenue adjoined Middlefield which was a major traffic road connecting Midtown with Downtown. According to the Traffic Study being done by the City, the average through traffic density for Palo Alto as - a whole was. I0 to 15 percent. According to the traffic study in the Midtown area, the average spillover through traffic for Marion Avenue was 36 percent, which was almost three times'ethe average. More traffic in the Downtown area would aggravate an already bad situation. She urged Council stop Downtown development until its impact on traffic throuyhoet all -of Palo Alto's neighborh000ds were considered. She was concerned about the high density housing springing up everywhere especially in the Midtown area. Midtown was assuming the character of a highly urbanized city with massive buildings and little landscaping. She urged Council consideration when making its decisions regarding Downtown development. Gene McDaniel, 943 Scott Street, lived within the peripheral study area and signed a petition to have parking restricted in his neighborhood. He signed the petition because he was sick of all the cars. He be'ieved the problem was density of people and ars. He was not Opposed to change and did not c r a how Gourrci 1 limited density. The solution was to not make any decision except to not allow any more development for a while. Current development was not completed, and in terms of the quality of his life, he already paid for }part of the development which occurred and more was still to come. He wanted Council to be careful with its decisions. Phyllis Munsey, Z361 Santa Ana Street, said per family owned two historic buildings at 520 and 535 Ramona Street, and recently seismically and structurally refurbished them. They were affected by many of the proposed ordinances. Monday morning did not have a lot of bustle and bustle in Downtown Palo Alto but on Thursday, Friday or Saturday, the situation was different. Reyardiny the retail -only clause, some ground floor spaces were not conducive to retail -only use. Several spaces did not front on a major street but were tucked on a courtyard or back. Even though the build ass might be on the street front, the spaces themselves did not have good frontage and it took a special type of retail to survive at all. The smaller spaces did pot hurt as much if they remained vacant, but they had one space which was 2,000 square feet. They needed $4,000 per month -rent to meet costs, and if that space was vacant for six months awaiting permission to put in a coilrnercial space, they would not be able to meet their financial obligations in Connection with the remodel, which meant economic disaster for her, Council needed'. t,o have parking solutions in place before requiring people to put retail spaces in because if the -parking was not there for the cost' mers to use the retail, it was diffie Cult to ask the retail to survive or ask the property owners to support retail. In all the meetings she attended- regarding the Downtown Study, there did not seem to be any conclusive evidence of an existing. problem She believed the Urban Design Plan should be further discussed And:a plan in. place before many -ordinances ordinances were passed. Once the. plan was in place and the City knew where it was going, then ordinances could be passed to get there. Cur- rently, she was afraid the City did not know where it was going. 7 1 8 1 5/12/86 Ellen Wyman, 546 Washington Avenue, said Palo Alto Tomorrow, appreciated the process and staff, Council, Planning Commission and Downtown Study Committee were open and helpful. Palo Alto Tomorrow saw five key goals! 1) drawat i ca l l V limit t Downtown / - � / / � / / /11 i Y development; 2) help Downtown retain its scale and character; 3) protect retail and services; 4) save old structures to the extent possible; and 5) reduce the housiny incentives in order to not be left with oversized structures. Palo Alto Tomorrow recommended 12 percent growth --seven percent from the pipeline, and an additional five percent. Five percent would give the traffic and parking situation time to stabilize and protect the retail uses and rejuvenate Downtown. The five percent growth was fair to all. If too much growth was permitted, the small property owner got lost in the shuffle. Five percent growth would encourage remodeling rather than bulldozing older structures which could provide the character, architectural variety and interest she heard discussed. Small increases would encourage quality remodeling and permit the seismic and handicapped improvements. She saw the Urban Design as totally unnecessary and <a waste of time and money. Most of what existed Downtown was attt ctive and was beoeming more so as people became aware of the opportunities and importance. If Council went for an Urban Design, she hoped it wuuiu be used later to finetune the ordinances passed and not hold up the process. Regarding economy and retail vitality Downtown, residents were beginning to rediscover Downtown and liked it. Residents wanted a Downtown oriented to residents as well as office employees. The retail rent depended on how many shoppers there were. As the office uses were limited and the traffic and parking answers were found, more residents would rediscover and yo Downtown. A key was for Council to find ground floor retail limits which worked. If two or three major property owners Downtown decided to ask out- rageous rents, she envisioned property standing vacant for some time. More hoesiny was needed, but a 1.5 incentive was too much. If Council reduced the number of jobs, it did not need that many housing units. She was told by City staff there were 10 new jobs for eeery one new dwelling unit from 1980 to -early 1984. Palo Alto would never have enough housing no matter how much was built and she saw no point in ruining the community by adding more when it would never be enough. Many eouncilmembers and staff believed housing was sacrosanct; that it was not questioned or touched. She urged Ccuncil find out what their friends and neighbors thought about housing. Many Palo Altans wanted "affordable family housing" which meant not luxury. It did not necessarily mean BMR or subsidized housing. "Family" meant not in huge structures, something that would be inviting for a family' to. live in. The Planning Commission said ten percent and she heard Council's goal was 350,000 square feet. It was important to not push the infra- structure to the limits. Assumptions .were never 100.percent right and she sugyested Council airs low. Warren Thoits, 156 University Avenue, said a letter submitted by Downtown property owners (on file in the City Clerk's office), contained suggestions worthy of Council consideration. He hoped Council would address the problems of traffic, parking And zoning or development separately because they existed apart from the yrowth problem. Sound solutions must be mode outside the purely no -growth atmosphere. He hoped Council would not solve the problem of growth by discouraging or prohibiting improvement and enhancement of the Downtown area in terms , of its development and appearance and hoped Council would analyze and evaluate the true basis of the problems beiny blamed on growth and address them positively. The Downtown was only part of the community but it needed to partially contribute to the quality of life. It could not if its economic vitality and attractiveness were limited. He urged Council use the project to be positive and creative. Downtown and the community it served deserved it. He urged Council take the time necessary and provide the leadership and statesmenship , to rise above purely: political considerations and come up with .a solution .best for Downtown and the community as a whole. (fie 5/12 8, Barbara Newton, 1585 Edgewood Drive, was concerned about the future of Palo Alto and particularly that Council might consider an increase over the Planning. Commission recommendation regarding the proposed FAR allocations for the Downtown commercial zone. The recommended limit of 3511,000 square feet in conjunction with FAR limits was designed to eliminate unfair allocation of square footage. Citizens wanted pedestrian amenities, courtyards, open space, gardens, etc., but she wondered if Council considered the possibility an increase in the FAR might result in unfair dis- tribution of square footage.. Larger FARs attracted large developers disproportionately. The small property owner who was not ready to immediately expand might never get the chance. One day growth limits would have to be revised and eepanded again. She urged Council consideration. Don Mullen, 618 Tennyson, owned a building in the Downtown area. He sensed a desire to be fair and urged Council consider the addi- tional restriction on historic buildings. The downzoriiny of those buildings by refusing the possibility of office rental and forcing them to become retail -only, could be the straw that broke the camel's back. The restriction flew in the opposite direction to the traditional way of preserving buildings across the country and abroad, which was becoming more flexible in their use, e.g., the building he owned used to be the post office and then became a store. If his building had the possibility of being other things in the future instead of just a store it would be easier to save. The restriction affected few buildings but could be dramatic. Elizabeth Kittas, 1643 Edgewood Drive, an Historic Resources board (HMO member, summarized the proposed historic preservation incen- tives. The neneral Plan encouraged historic preservation, and the Downtown Study group included that as one of its goals. A series of recommendations came out of that group, was approved by the Planning Commission, and proceeded to Council. What came about in the early process was the importance of the contributions of those significant buildings to the character and scale of the area, and their contribution to the continuity ,f the history of Palo Alto. Those resources were unique in the greater surrounding area. There .was nothing of similar character or quantity ih Los Altos or Menlo Park. As such, buildings 'contributed t ;i the larger com- munity as well as being part of the community good. The need to further encourage their preservation through incentive arose from the realization that redevelopment pressures --the pressure of the seismic upgrading process --could further endanger them) and the wish was to prevent further losses. Over the past nine months, much research was done by staff, the HRB, and the legal depart- ment, and she assured Council the proposals currently before them had sufficient legal precedent. The Plannning Commission sup- ported their LIR proposals. The'ARB reviewed and unanimously sup- ported all the items, and further recommended a higher FAR for Cateuory 1. and 2 buildings. There was a light .turnout at the Public Hearing, but generally a positive sentiment. The concerns for sufficient support and incentives from the City to accomplish the proposals were also discussed at a Downtown Coordinating Committee meeting, and the retail -only exemption came out of that meeting. The proposals were unanimously recommended by the HRB and Jim Stone, a member for the first four years, in a letter to the HRB and to liaison Gail Woolley. The changes to the historic preservation ordinance and the transfer of densities rights in the Comprehensive Plan were meant to encourage the preservation of those buildings and prevent their unconsidered deaviso. The package included a process to prevent the demolition of Categories 1 and 2 buildings in the Downtown without due consideration. Maintenance, review of structures, and the extensionof the mora- torium were intended to encourage historic preservation but had to go along with support to allow those buildings to remain viable and flourish. 7 1 B 3 5/12/86 Bob McIntyre, 1200 Bryant Street, said when his family moved to Palo Alto in 1946 it was'a sleepy, college town of 11,000 people, and one drove through miles of orOards and open space to reach Sunnyvale, Santa Clara, and Saratoga, and past dairy farms on Embarcadero Road to the duck pond. Palo Alto was still an oasis surrounded by a Bay Area which grew and commercialized beyond any- one's wildest dreams. Palo Alto .improved its quality of life by adding Anany parks, creating an Interpretative Center' at the baylands, maintaining a Junior Museum and a Cultural Center that was the envy of most towns, and by citizens committed to keeping the City a pleasurable place to live, raise children, enjoy cul- tural stimulation, and be good neighbors. The 1921 Sinclair Lewis novel, Babbitt, noted similarities in civic boosterism, progress without reyard to human values, and rampant commercialization which plagued the Bay Area. If two zeros were added to the home prices in that novel, one felt right up to date. He hoped Council did not want that to happen in Palo Alto. The Downtown Study and EIR forcasted traffic congestion, parking problems, air pollution, noise pollution, and the deteriorating quality of life -under any scenario which permitted continued development in the Downtown area, whether it be five or ten percent yrowth, etc.- The Planning Commissioners, Cou;icilmembers,-and Downtown developers seemed to agree development needed to stop not just slow down. If the City allowed the ten percent, he predicted another assembly in 1991 with developers pleading for more room to maneuver. Downtown weathered the storm created by Stanford Shopping Center, added interesting shops, office space, many outstanding restaurants, liquor licenses, and was a vibrant, hub of activity day and night. More development decreased the quality of life and added to con- yestion and parking problems. He implored Council to stop growth at the present point. Palo Alto had heart and soul and its way of life should be preserved. He urged Council heed the voice of its, constituents who lived in Palo Alto. It was a special community williny to do special things to make it a great community. Any decision to delay, limit, or stop growth could be reversed, but a decision to allow growth was irreversible. Mayor Cobb declared the Public Heari n9 cl,osed. Mayor Cobb suggested Counci 1 return to the "shirt -sleeve" agenda. Land Use Map Plan Changes Counci 1 u ember Levy wanted information on the economics of certain recommendations. Lou Goldsmith had some analysis on the effect of the various recommendations on housing in Downtown. Mr. Goldsmith said if Council allowed some housing, it was impor- tant to analayze what the housiny alight look like. Any time only 0.25 to 0.5 FAR housing was allowed on top of 0.4 FAR commercial there was not much housiny, especially with small lots. If a 10,000 square foot lot were developed with 4,000 square feet of commercial and 2,500 square feet in housing, it would result in only two units which was more of a nuisance than it was worth. It became more practical with larger parcels. There would be little affordable housiny under the program because the cornbioation of small parcels with a.1:10 i3 MR ratio, would not result in ten units unless there was a 40,000 square lot at a 0.25 ratio or a 20000 square foot lot at 0.5. With smaller lots there would not be ten units unless the FAR for housing was increased. One exception was the proposed 1.5 Area No 1 in the CD -S zone. PAHC suggested a good balance would be four tenths commercial and six -tenths housing. Many people were worried about the economics of the housiny, or housiny versus commercial. Com'sercial would take precedence over housing -pit cost less to"build and was worth more. The royrars as presently envisioned would probably result in few housiny units. If the cost of housing increased, it would be more difficult to build any kind of housing, let alone 1AR units. /}2f8i Councilmember Levy clarified that Mr. Goldsmith was recommending that Council adopt a policy of 0.4 commercial and 0.6 residen- tial. Mr. Goldsmith was not recommending any kind of zoning parameters because that was not PAHC's responsibility. Council would not get affordable housing unless they had enough of a ratio to warrant the costs involved, and would not yet BMR units unless the BMR requirement applied to a smaller number of units than ten. He suspected most of the projects would be below ten units; there- fore, no BMRs were., required. That was why PAHC suggested going to 25 percent BMfs and applying the requirement to four units or more anywhere that applied in Downtown. Councilmember Levy said a number of other elements were suggested to eliminate because they added cost and therefore made housing more difficult. He asked for Mr. Goldsmith's comments. Mr. Goldsmith said one element was counting covered surface parking as allowed FAR, which distinctly cut down the number of units or added to the cost. It was difficult to get affordable housing in the Downtown area. To try to figure out what someone would do was unproductive. The main thng was for Council to decide how much development of what kind was tolerable, and then let the private sector, the PAHC, or any other developer do what- ever came naturally. The land prices and property prices would have to adjust to allow whatever development made sense, otherwise there would be no development. Councilmember Patitucci focused on the RM-3 and RM-2 zones immedi- ately adjacent to the area being rezoned, in the general neighborhood of Horner Avenue, Bryant Street, and Emerson Street, and asked what kind of housing could be developed and what the densities could be in that zone. Mr. Schreiber said from the upper teens to the raid -20 uinits per acre. Councilmember Patitucci asked to what kind of FAR that equated. Mr. Schreiber said local family zones had no FAR. Staff could try to calculate the FAR, but there was no maximum. There would be approximately a 35 percent site coverage, maximum of three stories, so in that sense it could be approximately a 0.9 FAR. Other constraints would keep the FAR less than that. Councilmember Patitucci asked if that was RM-2 or RM-3. Mr. Schreiber replied RM-3. Councilmember Patitucci clarified RM-3 was approximately 0.9 FAR. Mr. Schreiber said the figure was the theoretical maximum. Councilmember Patitucci asked about the area outside the study. Ms. Cullen said between Forest Avenue and Channing Avenue was RM-3 on the eastside of Ramona Street. below Channing Avenue shifted to R-2 along Ramona Street. That was the area adjacent to Areas 3 and 4 in the zoning reap changes in the southern area. On the westside of Ramona Street below Channing Avenue was also R-2. Councilmember Patitucci believed there was a sufficient amount of RIB -3 adjacent to the zone, e.9., Area 3, which was in the block of Emerson Street between Forest Avenue and Homer Avenue, that would have a 0.8 FAR if the whole incentive was used, and across the street would be 0.9. Mr. Schreiber said theoretically that was as high as 0.9, but the density there was governed by unites not square footage, and there i/i298 would probably OA be that much square footage because the units would end up being extremely large. Councilmember Patitucci found the housing incentives to- -be very _complex. There were many little zones and little incentives with the gradation. If all of the way down Homer Avenue was reasonable to zone five or six blocks RM-3 and two or_three blocks RM-S, if Council wanted housing incentives, he asked why it could not have an alternative zone of RM-3. In order words, if someone owned a property, he had a choice between commercial and housing, and that housing was related to one of the existing zones where people knew what kind of_thing could be built, rather than the build-up process which was difficult to understand. Mr. Zimmerman said the Housing Committee was concerned if just existing residential densities were used in those commercial districts, the only thing increases would be the size of the units but not the cumber of units. Councilmember Patitucci asked whose idea it was. Ms. Christensen said with more units there was the option to either create fewer larger units or increased smaller units. flee Planning -Corrtrni ss i on did not want to make the housing incentives o great people chose housing over existing businesses. The point of the gradation was the Planning Commission believed it was important An the area to preserve existing service commercial businesses. Councilmember Levy referred to the nob on South Alma --the IMO block --and said he understood there was a grandfath, ring of -struc- tures Ms. Wheeler said the Planning Commission did a lot of grand - fathering in areas where they went from one commercial zone to another, but in the block where they proposed rezoning to a resi- dential use, there would be no yrandfathering of the commercial uses, which would be amortized. 4r. Schreiber said there was an important distinction between use and structure. In that area, the recommendation was for no grand- fatherine but to amortize the uses and thus eventual elimination of the uses. Zoning regulations did not require demolition of the existing structures. When uses were amortized, many structures might or might not be suitable for reuse for the new use allowed by the zoning, which was multiple family in the subject case. Councilmember Levy asked whether the length of the amortization was 15 years. Mr. Schreiber believed that area would be the minimum amortization period of 15 year;. Councilmember Levy said statements were made there had been no complaints from the adjacent residences about the commercial uses in that area, and asked if that was the case. Mr. Liurmerraan was not aware of any complaints. Ms. Cullen said the Planning Commission recommendation was not based on the hick of complaints from the neighbors or the presence of complaints, but on a good, long-range planning decision of an area immediately adjacent to the R -x where the Planning Commission believed ,:the line should have been drawn in 1978. Councilmember Fletcher referred to the Alma Street Properties which wood be amortized, and clarified those businesses were not being erandfathered because there should be a clean zone as it was adjacent to residential. If those businesses were grandfathered, they would not be able to expand. She asked if the uses had to be the same if yrandfathered. 7186 5/12/86 Mr. Zimmerli -alai said according tu the re{;ofuHenddt1o,l fur L.he other areas, the yrandfatheriny applied to zone categories and not specific use. For example, if a blueprinting shop on a specific site was grandfathered in a new CO -N area, any service commercial use could locate on that particular site. It need not remain as a blueprinting shop. Councilmember Bechtel referred to the recommendation presently rental to multi; -family housing and asked if that meant a structure like the President Apartments could not go back under that recom- mendation to being a hotel. Ms. Cullen understood if the structure was multi -family, it could not become a hotel which was a commercial use. The zone change for that particular property would go from CU -C to MF. Councilmember Bechtel clarified that, was the Planning Commission's recommendation. Ms. Cullen said not yet, there had to be a public hearing, but that would be considered and the Commission world decide after all of the input. She believed that recommendation applied to two other properties downtown. Overview/Summary/Conclusion Mayor Cobb referred to downtown retail and asked if there was the six-month provision for property standing,, vacant with a certain vacancy rate before some use other than retail could be sought after what was the real -world likelihood of the large property owners holding onto a piece of property until they got the office use, especially considering they orly had a`five-year lease with- out a renewal provision. Mr. Jury said Council also had to bear in mind that investors in most properties were looking for a return. Very few large prop- erty owners owned property outright, but usually had limited partners or some other types of investors who would be very dis- satisfied with the return if there was a vacancy for six moral -1i. It was always possible, however, that Council was setting up the scenario where a large property owner with staying power could outlast the six-month time, where a small property owner simply could not last. Mayor Cobb asked if he was correct that if one offered up a lease for five years to a typical tenant for an office lease with no renewal provision, that would limit the kinds of leasing. Mr. Jury said absolutely. Councilmember Sutorius understood the proposal was for the combi- nation of a seven and one-half percent vacancy rate within the ground floor area combined with that specific property being vacant for six months. One scenario was the property itself could be vacant,., but the ground floor vacancy rate was less than 7.5 percent, ergo, no exception. Six, nine, twelve, eighteen months went by and no exception applied until the combination of those two existed. Mr. Jury said that was correct. Close to 100 businesses fronted on University Avenue in the seven block area. Ironically, that worked out to,. about one business per block to be vacant in order for the seven percent to kick in. That was a drastic situation and, if there was a seven percent vacancy rate, there would be a lot of places vacant for .much more than six months. Mayor Cobb said _ Mr. Hirsch made a request to present the minority viewpoint of the Planning Commission. 7 1 8 7 5/12/86 Mr. Hirsch said they spoke about a parking deficit that increased from 1,200 to 1,600 spaces; a 33 percent increase since the beyinniny of the study. No parking spaces were created and traf- fic circulation was the same. The problems at the beginning still existed but were worse. If the Planning Commission recommenda- tions were accepted, it was not 350,000 square feet but 760,000, of which 350,000 was commercial development equal to ten percent of existiny plus pipeline, plus 366,000 housing development. He believed the non -controversial part was the 69,000 square feet north of University Avenue,'•but the pilot area south of University Avenue was almost 300,000 square feet. If the pilot program was suitable and acceptable over ae longer period of time, adding another 99,000 square feet, the total development was not 350,000 but added up to 815,000 square feet or \almost 25 percent of existiny plus pipeline development. The proposal that commercial development to be drastically reduced was laudable, but was not reduced far enough._ Unfortunately, if that ever happened almost 13 percent would be replaced by housing development, a significant proportion of which would be high-priced condominiums, and not even the PAHC supported expensive condominiums in an effort to yet a very minimal number of affordable units. Council heard the recommendation before: Approve no further commercial development until basically the pipeline development was all built out, find out what the problems really were, assess them at that time, and determine what could be tolerated once the situation was stabilized -if a new parking structure could be put in to briny the existing deficit down to something manageable. Councilmen er Levy was intrigued by Councilme:nber° Petitucci's line of questioniny regarding the CS versus the RM-3 concept. He asked staff to clarify, in the existing CS zone at what density could resiiential units be built. Mr. Zimmerman believed the number was 45 to 47 dwelling units per acre. Counc i lmecnher Levy asked if that was RAM -5. Mr. Zimmerman said that was approximately RM-5. Councilmember Levy said if Council allowed the existing CS density they allowed RM-5 in that area. There was something to 1?e said for having a CS zone with RM-3 density permitted. It might be stealer than the overlay presently under consideration, except it would allow a little larger FAR. He asked if that would be an incentive for housing, or would Council be giving an incentive to housing that would also be an incentive to remove the CS use cur- rently there, Mr. Schreiber deferred response until the following evening. Mayor Cobb commented that if any Counci lmembers planned to make motions that were substantially or subste tively different from those of the Planniny Commission and/or staff, he urged them to contact staff during the following day to work out language. NeT1 OIt: Mayer Cobb Barred, seconded by Levy to ca t 1 cue Items iii Downtime Sturdy, to . Mar 13, 19$* Council meeting at 7: 3O p. m. *OT1O4 PASSED seanimossly, Klein absent. AUJOURHMENT Council adjourned at 11:50 p.m. ATTEST: 7 1 8 5/12/8