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Recommendation: By motion, confirm the scope of a potential General Plan and Downtown Precise Plan amendment to allow applicants to request adjustments to the Downtown Precise Plan Maximum Allowable Development standards. Aaron Aknin, Director of Community Development, gave a presentation discussing the historical background of the Downtown Precise Plan (DTPP), so that it could provide context to what are the Maximum Allowable Development (MAD) Standards. He mentioned how the DTTP has specific guidelines for the City and its partners to follow, including Building Permit Limitations, not Zoning Code Limitations. He discussed the current developments that are happening downtown and how the recession in prior years affected the types of development that is currently taking place. He mentioned the office vacancy rate in downtown Redwood City is decreasing, but there is still housing and retail vacancy. Director Aknin said that the City with the approval of the City Council, has responded to address this particular issue by acting upon the Market Conditions by allowing an increase in Office capacity in exchange for less development in different categories. With this in mind, staff further researched the possible outcomes of this direction, including the potential impact on traffic. According to the findings, City staff recommends that residential and retail be converted to Office space. He also specifically spoke to the concerns the City Council had at a prior meeting such as the possibilities of the increase in traffic, the strength of retail, and Office supply taking away from future housing sites. Director Aknin said that staff will continue with the environmental review, bring it to the Planning Commission, and then to the City Council. He mentioned future developments that will or will not be impacted by the Maximum Allowable Development. Lastly, Director Aknin brought up new projects in the works: Downtown Plan Phase II, Transportation Plan for the downtown area, and an EI Camino Plan. A Council Member asked where the City stands with the Community Benefits discussion. Director Aknin said that there have been several meetings related to this. The frame work from those meetings will be brought to the Planning Commission and the City Council around March/April 2015. The same Council Member brought up the . issue regarding the balance between jobs and housing, which he didn't see referenced in the staff report and wonders if this issue has been resolved. Mr. Aknin said this matter has not been resolved and has spoken with ABAG (Association of Bay Area Governments), which determined that jobs are not created by Office space, but will be over a certain period of time. Another Council Member asked about the 600k square footage for retail and how much is currently used. Director Aknin replied that it is currently at 94%. Vice Mayor Foust asked that with the 94% occupied, if Sean Brooks, Economic Development Manager could respond as to what is included in retail. He said that retail includes shops, restaurants, and gyms. JOINT CITY COUNCIL/SUCCESSOR AGENCY BOARD December 8, 2014 MEETING MINUTES PAGE 9 MINUTE BOOK NO. 65 Page No. 291