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7.A. - Page 3 <br /> been cured," and represents that this issue is resolved. Had SLC terminated the <br /> leases, the project application would have had to be modified. <br /> However, staff understands that additional issues remain, including: (1) whether SLC's <br /> consent is required before the property owner may transfer her interests in the smaller <br /> lease to the Applicant (there is apparently concurrence that the owner need only provide <br /> notice to SLC with respect to transfer of the larger lease), (2) whether the proposed use <br /> of slips by Project residents is allowed or requires amendments to the leases; and (3) <br /> whether the leaseholder will seek to amend the leases or litigate the matter. Staff does <br /> not know whether there are any other remaining disputes. <br /> The interconnectivity between the marina and the residences is an important aspect of <br /> the proposed project so how the SLC disputes are resolved may be important to the <br /> City Council. The issue for the City Council is whether it is prepared to evaluate the <br /> project in the absence of clarity as to how the outer marina will relate to the residential <br /> project and/or the community. For example, if the SLC issues are resolved such that <br /> the outer marina use is restricted to project residents, the City Council can approve (or <br /> deny) the project as proposed for 411 residential units with a marina providing ancillary <br /> recreational facilities to the residents. If, however, the SLC issues were resolved in such <br /> a way that the outer marina must serve the public (i.e. non-project residents), there are <br /> potential impacts on the project as proposed. The Applicant would need to modify the <br /> Project and the City would need to evaluate the modifications. For instance, the Project <br /> as proposed contemplates only parking for its residents, and guests and visitors of the <br /> residents (and a small number of parking spaces for the public access provided per <br /> BCDC). If the Project were to change for the outer marina (or any portion of the marina <br /> for that matter) to be used as a commercial marina, parking would need to be provided <br /> by the Project to accommodate the new commercial component. As discussed in more <br /> detail in Section III below, the Project as presently proposed already seeks a Parking <br /> Exception and Parking Modifications resulting in 835 parking spaces (as compared to <br /> the 925 parking spaces that would have been required but for the exception and <br /> modifications). The City would need to evaluate the impacts resulting from adding a <br /> commercial use to the Project. <br /> Respecting that SLC, a state agency that has property rights to the outer marina, has <br /> yet to determine whether the proposed Project is acceptable to SLC, staff recommends <br /> deferring the matter until there is clarity from SLC as to the ability of the Applicant to use <br /> the outer marina as a marina serving the Project residents only. <br /> Finally, if the applicant chooses to seek an amendment to the leases, it would require <br /> submittal of an application to SLC. Such amendment would then need to be considered <br /> by the Commission at a publicly noticed meeting. As staff understands it, there is <br /> Page 3 of 27 <br />