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EIR No. 2018-01, DA No. 2018-01, GPA No. 2018-06, AA No. 2018-10 2525 North Main Street February 5, 2019 Page 7 comment review period. In addition, a Planning Commission public hearing was held on August 27, 2018 where staff presented the EIR process and environmental information to the Planning Commission and pubic and received public comments on the DEIR. To allow for additional time for public review and comment, and at the request of the North Santa Ana Preservation Alliance, the City extended the DEIR public comment period by an additional two weeks. At the close of the review and comment period on October 4, 2018, a total of 44 comment letters were received on the Draft EIR. The City has evaluated the comments received from persons and agencies on the Draft EIR and completed detailed Response to Comments, revisions to the Draft EIR including clarifications and/or corrections to typographical errors, and a Mitigation Monitoring and Reporting Program (MMRP). The response to comments, MMRP and Final EIR were published on November 15, 2018 for public review. The Draft EIR, responses to comments document, revisions to the Draft EIR, and the MMRP constitute the Final EIR for the project (Exhibit 2). The EIR identified one significant and unavoidable impact associated with this project, which pertains to aesthetics. Based on the City's visual criteria related to scale, height and setbacks, it was determined that the project would result in a substantial change in views from existing conditions and would result in a significant and unavoidable impact to the aesthetics. As a result of this impact that cannot be mitigated to a less than significant level, adoption of a Statement of Overriding Considerations is required prior to approving the project. A Statement of Overriding Considerations is the process through which decision makers balance the economic, legal, social, and technological or other benefits of the proposed project against its unavoidable environmental impacts. Development Agreement The development agreement (DA) is a legal contract between the developer and the City that defines the terms and nature of development proposed for the project site. This agreement establishes development intensity, permitted uses and standards for the term of the agreement. In exchange for the City vesting approval of the proposed project, the development agreement requires certain improvements and public benefits as part of the project (Exhibit 3). For example, the DA will memorialize requirements for public art, monetary contribution to fund physical improvements to Santiago Park, Park Santiago residents benefits such as access to on site amenities, security patrol of the residential neighborhood and Santiago Park, assistance in designating the Park Santiago Neighborhood Association as a historic district, and monetary contribution to Park Santiago Neighborhood Improvements and Traffic Calming for improvements such as street calming, traffic diversion, entry monuments, and street light upgrades. If approved, the agreement will include both deal points and project conditions for the project. Highlights of the DA include: 1. Term of Agreement. The right to build the project as entitled for a period of four years, with an opportunity for up to two, consecutive one-year extensions. Extensions shall be subject to approval by both the Owner and the City Manager. Prior to granting an extension, the Owner shall pay $50,000 to the City's General Fund to compensate the City for lost revenue to be received by the City had the project been completed within the first four years. 75E-7