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ER No. 2017-96, AA No. 2017-02, CUP No. 2017-29 & VA No. 2017-07 — Hampton Inn at 2129 North Main Street February 20, 2018 Page 2 PLANNING COMMISSION ACTION At the December 11, 2017 Planning Commission meeting, the Commission held a public hearing on the proposed entitlements for the new hotel. At the conclusion of the hearing, the Commission continued the item and requested more information on the impact of displacing the 93 parking spaces within the public parking lot currently on the site; the feasibility of the left -turn movement into the property by vehicles travelling southbound on Main Street; and, a review of additional security conditions and/or measures for the project. At its January 22, 2018 meeting, the Planning Commission again held a hearing on the project, with Commissioner Nguyen absent. A discussion ensued about the requested variances and the adequacy of the environmental document for the project. A motion was made to deny the environmental review, with a 3:3 vote by the Commission (Contreras -Leo, McLoughlin, Mendoza opposed). A subsequent motion was made to deny the conditional use permit and variance applications, which ended in another 3:3 vote (Contreras -Leo, McLoughlin, Mendoza opposed), resulting in an impasse (Exhibit A). In the event of an impasse, the Planning Commission Bylaws allows the project proponent the option to continue the items to a later date for further consideration by the Commission or accept a denial without prejudice. The applicant elected to accept a denial, giving him the ability to appeal the decision to the City Council. The applicant has appealed the denial, allowing the project to move forward to the City Council for a final decision on all of the requested entitlements. DISCUSSION In 2015, as part of the Strategic Plan's Economic Development goal to "identify and market underutilized properties (City and non -City owned) for new development," the City provided a tour to local brokers and developers to highlight potential development opportunity sites in Santa Ana. One of the sites identified as underutilized was the City -owned parcel at 2129 North Main Street that is currently being used as a parking lot. In September 2015, the City was approached by Net Development Company to construct a new hotel at this site. On September 20, 2016, the City Council authorized the Community Development Agency to negotiate the sale of the subject property and enter into an exclusive negotiation agreement with Net Development Company for the purpose of developing a hotel on the property. On May 2, 2017, the City Council discussed entering into a purchase and sale agreement for the subject property and continued the matter for two weeks. On May 16, 2017, the City Council authorized a purchase and sale agreement with Net Development Company for the sale of the property. Separately, the applicant entered into agreements to acquire the privately owned properties at 2115 North Main Street, 2119 North Main Street, 2056 North Bush Street, and 2058 North Bush Street to create the 1.9 acre project site. 75A-2