AgdaPkt 2014-12-08 Closed and Joint SA

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9.B. - Page 3 developments exceeds the MAD limitations. The residential, retail and lodging categories of development are not nearing the limitations set forth by the MAD limitations. The first report to Council pertaining to the 80% threshold occurred on September 22, 2014 (staff report attached). At this meeting, the Council adopted a reservation process by resolution allowing developments that have been deemed complete to "hold a place in line" on the way to an actual entitlement (i.e., building permit). By motion, the Council also directed staff to study potential adjustments to MAD limitations in order to better reflect current market conditions. As directed by the Council, staff has been studying whether the MAD levels can be adjusted and, if so, what form of environmental review may be required under CEQA to support such adjustments. The City cannot approve any development in excess of these approved MAD levels without completing a new, comprehensive environmental analysis, unless it determines that such excess development would not result in any new environmental effects that were not analyzed and addressed in the DTPP EIR. However, the City may be able to rely on the previously-certified DTPP EIR to approve more than 500,000 sf of office development, if it (a) concurrently reduces the MAD level in another category (residential, retail, or hotel lodging), and (b) can demonstrate that the potential environmental effects from the increase in office development are offset by the avoidance of environmental effects from the reduction in other MAD categories. Staff has focused first on whether the previously-certified DTPP EIR can be used to support adjustments to the MAD levels that would better accommodate current market demands in the various development categories, as reflected in the recent development applications submitted to the City. Based on this focus and the preliminary review, staff's recommendation is for the environmental review to analyze a General Plan and DTPP amendment to allow a conversion of up to 740 housing units and 85,000 sq. ft. of retail space for office uses. This could allow for approximately 169,000 square feet of additional office space. Applicants would need to request that this space be converted to office use. Additionally, a portion of the converted allocations would be restricted to additions to existing buildings. Please see the discussion section below for additional details. The purpose of this meeting is for the Council to consider the scope of the amendments. Confirmation of the scope will allow staff to complete the environmental review, and bring forward General Plan and DTPP amendments for Council review.