AgdaPkt 2014-12-08 Closed and Joint SA

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9.B. - Page 18 and the City Council may, but is not required to, initiate consideration of an amendment to the Precise Plan to modify the M. A. D. specified in the Plan." The overall type of development that is allowed in the DTPP, as well as the look and feel of the buildings, were a result of years of planning and community outreach. The categorical allocations (e.g., how many housing units are planned for, how much office space, etc.) were primarily based on economic conditions during the planning phase. The environmental study then took those allocations into consideration. The relatively high number of housing units is reflective of the constant demand for housing in the area. The relatively low amount of office space is reflective of the high vacancy rates at the time of plan adoption. The demand for office space, particularly downtown office space, has increased significantly since the DTPP was considered and adopted. The following table graphic details how office conditions have changed over the past 5 years: Q1/2009 Q1/2010 Q1/2011 Q1/2012 Q1/2013 Q1/2014 Current Greater RWC Vacancy Rates 26.5% 30.50% 18.20% 9.80% 16.10% 11.80% 8.50% Downtown RWC Vacancy Rates 11.50% 7.90% 12.50% 8.30% 3.80% 5.40% 4.40% Table notes: The Downtown Office vacancy rates will be reduced even further when the Crossing 900 building is occupied in 2015. These numbers were provided in quarterly office market reports published by Cassidy-Turley. Given the pending developments, and the increased demand for office developments in the area, staff has outlined several options below for proceeding given the pending development applications and changing market conditions. Recommended Short Term Option for Modifying MAD Allocations Staff recommends that the overall Maximum Allowed Development limitations not be increased at this time. This can be accomplished in a more comprehensive and longer- term Downtown Precise Plan Phase 2 planning effort (if desired) or by individual applicant proposals. However, staff recommends that more flexibility between categories of development be allowed in the short term. For example, there are currently over 1,100 housing units and approximately 100,000 sq. ft. of retail space remaining under the Maximum Allowed Development limitations. After appropriate CEQA work is completed, the DTPP could be amended to allow housing and retail capacity to transfer to office capacity. The exact "exchange rate" is not currently known, but would be determined during the environmental review stage. It is also likely that not all the projects currently submitted or in the pipeline could be accommodated by the MAD adjustments. Alternatives for projects that do not fit within the adjusted MAD allocations are also explained below. Page 6 of 9