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PALMIERI HENNESSEY LEIFER, LLP Honorable Mayor and City Councilmembers of the City of Santa Ana October 20, 2020 Page 3 The Supermassive Proiect seeks significant waivers and concessions based upon a purported density bonus that is unsupported. The waivers and concessions cause a significant detriment to the historic Spurgeon Building, its 41h Street companions and the Downtown. The Project seeks various concessions and incentives based on an assumption of a density bonus from the proposed residential component. In discussing the proposed "business terms" of the potential DDA between the City and the Developer, the Staff Report recognizes that the Developer has an option to convert the hotel component of the proposed Project to residential. (See Staff Report to City Council, p. 5.) Under that conversion scenario, the proposed Project would not comply with the density bonus calculations and requirements pursuant to State Density Bonus Law found in the Government Code. In fact, other than that passing reference to the Developer's option to convert the proposed hotel component to residential in the Staff Report, neither the 2010 EIR nor the Addendum analyze the project under the hotel -to -residential conversion option. The failure to analyze the various Project options makes this Project an analytical "shell game." Is it a hotel? No. Yes. Maybe. Is it residential? Yes. No. Maybe. Is it both? No. Yes. Maybe. What is this Project? Whatever the Developer wants it to be sometime in the future. It is artfully and purposely unclear what "Project" will be moving forward and whether such "Project" has actually been analyzed. The City has not and cannot with a straight face claim that it is analyzing the possible Project scenarios. The City has failed to analyze the requested incentives/concessions/waivers as it relates to the historic properties in the area including the Spurgeon Building and site that is located just steps from the proposed Project. The City Staff Report omits any consideration, analysis or even mention. As there has been no analysis of the impact on the historic properties operating as redeveloped in the area, no mitigation of such impacts on the historic properties in the area, including the Spurgeon Building, has been analyzed, considered, or imposed. The City should not take any action until such an analysis and mitigation measures have been considered.