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ZOA No. 2009-04, CUP No. 2009-08, Amend DA No. 05-02 and VA No. 2009-02 April 13, 2009 Page 4 Zoning Ordinance Amendment When the Specific Development No. 76 Zoning District (SD-76) was created it divided the MacArthur Place South project site into two zones. Zone 1 consisted of all the properties within Hutton Centre with the exception of the Nexus projects (Exhibit 8) The permitted uses in Zone 1 remained unchanged, allowing similar uses to what is currently allowed in the C2 zones with the exception of several incompatible uses (such as automobile sales and repair, equipment rental yards and hospitals). Zone 2, which encompasses the currently proposed project as well as the other Nexus projects, was proposed to permit only offices, museums, libraries and galleries by right. Other uses such as retail, restaurants and residential were to be conditionally permitted in the zone to allow the City to review each project and apply conditions necessary to ensure the project remains a quality development. At that time, hotel uses were not considered as either a permitted or conditionally permitted use as there were several other hotels in the area and the project site had already been slated for retail, restaurant and residential uses. Although hotel uses were not considered in the original Specific Development they are still compatible with the underlying goal of SD-76 to create a mixed use, active urban center. In addition to the guests staying at the hotel using the surrounding retail and restaurants within the project site, the hotel's ample meeting space has the potential to attract groups and special events. Both of these activities also have the potential to increase pedestrian activity within the project area on a daily basis. Additionally, the project sites location near several arterial streets as well as convenient access to the Newport-Costa Mesa (SR-55) Freeway make it an appropriate location for a hotel use (Exhibit 9) . Conditional Use Permit In conjunction with the amendment to Specific Development No. 76 to conditionally allow hotel uses within Zone 2, the applicant is also requesting a conditional use permit for the proposed Courtyard by Marriott. By requiring a conditional use permit the City maintains the ability to more fully review projects as well as include any necessary conditions to ensure the project remains of the highest quality. 75B-6