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SPR No. 2017-OBIDBA No. 2017-01 September 11, 2417 Page 3 projects, including mixed-use residential communities, live/work units, hotels, and offices, Since its adoption, one mixed-use project at 1901 East First Street has been constructed and is occupied. Another, located at 200 North Cabrillo Park Drive, is currently entitled but is undergoing review for proposed revisions. The California Density Bonus law allows developers to seek increases in base density for providing on- site housing units in exchange for providing affordable units on site. To help make constructing on-site affordable units feasible, the law allows developers to seek incentives or waivers, which are essentially variances from development standards that would help the project be built without significant burden and without detriment to public health; The first version of the Density Bonus Law was adopted In 1979 and has since been amended at various times; in early 2017, the law was amended to restrict the ability of local jurisdictions to require studies to "justify" the density bonus and requested IncentivesMaivers and places the onus on local jurisdictions to prove that the incentives/waivers are not financially warranted. Recent court interpretations of the law have granted unlimited numbers of waivers to projects that meet or exceed the maximum 35 -percent density bonus of base density. Analysis of the Issues Section & of the MEMU regulating plan, Implementation, requires the Planning Commission to review an application for development subject to the provisions of the overlay district. Upon review, the Planning Commission may take the following actions: 1, Approve the development plan, 2. Approve the development plan with conditions, or 3. Deny the development plan. Should the Planning Commission approve the Site Plan Review application, it must make four findings of fact relating to furthering the goals of the MEMU overlay district, consistency with the regulating plan, compatibility with the surrounding community, and planning a compatible and harmonious project, In addition, Section 41- 1607 requires an application for a density bonus agreement containing "deviations" (incentivestwalvers) to be approved by the Planning Commission, The following subsections analyze the applicant's request for both the Site Plan Review and the Density Bonus Agreement applications. Site Plan Review The applicant is requesting site plan approval for a proposed residential community that requires approval of Incentives or waivers from the development standards contained with the IVIEMU overlay district regulating plan. These standards are outlined in Table 2: Conformance to Development Standards. Table 2: Conformance to Development Standards 5taandartt --- Required by the MEMU _ Provided Stories Mininaurl 3, no maximurn acre d~orecourt, shopfront, gsilery, or arcade __- 3.17 acres Shopfront with plaza ori First Sircet as permitted b MEMU Minimum into Area Permitted Frontage 601/4327 EXHIBIT 2