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EXHIBIT 2 <br />SPR No. 2017-08IDBA No. 2017-01 <br />September 11, 20117 <br />Page 3 <br />projects, including mixed-use residential communities, livetwork units, hotels, and offices. "Since: its <br />adoption, one mixed-use project at 1901 East First Street has been constructed "and is occupied. <br />Another, located at 200 North Cabrillo Park Drive, is currently entitled but is .undergoing review for <br />proposed_ revisions. <br />The California Density Bonus lagv allows developers to seek increases in base density for providing on- <br />site housing units in exchange for providing affordable units on site. To help make constructing on -'Site <br />affordable units feasible, the law allows developers to seek incentives or waivers, which are essentially <br />variances from development standards that would help the project be built without significant burden <br />and without detriment to public health. The first version of the Density Bonus Law was adopted in 1979 <br />and has since been amended at various times; In early 2017, the law was amended to restrict the <br />ability of local jurisdictions to require studies to "justify" the density bonus and requested <br />incentives/waivers and places the onus on local jurisdictions to prove that the incentives/waivers are <br />not financially warranted. Recent court interpretations of the law have granted unlimited numbers of <br />waivers to projects that meet -or exceed the maximum interpretations, <br />nt density bonus of base density. <br />Analysis of the Issues <br />Section 8 of the MEMU regulating plan, Implementation, requires the Planning Commission to review <br />an application for development subject to the provisions of the overlay district. Upon review, the <br />Planning Commission may take the following actions: 1. Approve the development plan, 2. Approve the <br />development plan with conditions, or 3. Deny the development plan. Should the Planning Commission <br />approve the Site Plan Review application, it must make four findings of fact relating to furthering the <br />goals of the MEMU overlay district, consistency with the regulating plan, compatibility with the <br />surrounding community, and planning a compatible and harmonious project. In addition, Section 41- <br />1607 requires an application for a density bonus agreement containing "deviations" <br />(incentiveslwaivers) to be approved by the Planning Commission. The following subsections analyze <br />the applicant's request for both the Site Plan Review and the Density Bonus,Agreement applications. <br />Site Plan Review <br />The applicant is requesting site plan approval for a proposed residential community that requires <br />approval of incentives or waivers from the development standards contained with the MEMU overlay <br />district regulating plan. These standards ;are outlined in Table 2: Conformance to Development <br />Standards. <br />Table 2: Conformance to Development Standards <br />Standard. <br />Required by the MEMU <br />Provided <br />Stories <br />Minimum 3, no maximum <br />6 <br />Minimum Site Area <br />1 acre <br />3.17 acres <br />Permitted Frontage <br />Forecourt, shopfront, gallery, or <br />arcade <br />Shopfront, with plaza on First Street <br />as permitted W MEh4U <br />1A343 EXHIBIT 2 <br />60 <br />