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increases. He stated his concern that the ordinance may constrain historic adaptive re -use of buildings and alternatives to construction; and treats new and existing development the same even when economics may vary, which may be an impediment to developers in considering affordable housing. The ordinance does not currently provide options to provide affordable housing units instead of in lieu fees, and limits alternatives that may be considered. Possible modifications were provided in the presentation, including exemptions to projects approved prior to the adoption of the original ordinance; exempt adaptive re -use from the ordinance requirement; provide for off -site construction of units; allow rehabilitation of off -site units; remove Takings Determination; apply the ordinance only to those conversions that exceed the density permitted in the General Plan; allow an in -lieu fee option up to 50 units instead of the current 20 units; simplify the in -lieu fee calculation to $5 per square foot; and re- evaluation of the matter in 3 years. He clarified potential options including modification of the existing ordinance; or a short moratorium to prepare another ordinance and establish an interim ordinance; or do nothing. Councilmember Benavides noted that quality, accessible and mixed income housing is important, and appreciates staff's efforts to modify issues. He suggested incentives to developers that propose mixed income developments. Councilmember Martinez called attention to the county's changing demographics and that people are leaving due to transportation and housing affordability; and specified that the needs of the community must be taken into consideration. Mayor Pro Tern Sarmiento clarified that inquiries from the community are always welcome, noting that the city has a responsibility to residents and also to developers to ensure that working families have a dignified way to live, considering the high housing costs throughout the county. He recommended revisiting the matter within 24 months; summarized that consistency in development fees is important; commented that the goal is quality market rate developments; and that other cities direct their developers' in -lieu funds to projects that are set aside for affordable housing; and he requested that a future report to the City Council include a comparison table of other local cities. This item is scheduled to go before City Council on August 4, 2015. THIRD & BROADWAY UPDATE The City Manager provided a high level overview of the project, and he said there were several submissions for this project. Oliver McMillan was invited back to provide their background and experience, but were not interested in providing a hotel component beyond their residential proposal with ground floor retail; and the firm recommended a hotel feasibility study. Direction is currently sought from Committee members, as the only proposal to include a hotel proposal was from Caribou Industries per Mr. Duncan's earlier comments. Mayor Pro Tern Sarmiento noted the Request for Qualifications (RFQ) was circulated for a 200 time; and Larry Kosmont's office was sought to assist with this matter, although the meeting notification was late and the firm was not able to attend this meeting. He reiterated that Caribou Industries was the only submission that included a hotel component pursuant to the RFQ. He recommended that discussions for refinement, terms and conditions proceed with Caribou Industries; and that Larry Kosmont and other possible developers be consulted with a very short timeframe. Development & Transpodation Cound Committee Minutes 2 June 25, 2015 13A -14