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SPR No. 2016-03, VA No. 2017-05, VA No. 2017-06 December 11, 2017 Page 3 Inclusionary Housin The proposed project is subject to the requirements of the Housing Opportunity Ordinance (HOO), which contains inclusionary unit requirements for projects that consist of the construction of five or more dwelling units (SAMC Sections 41-1900 et al.). The applicant is requesting approval for 260 market rate rental units within the Metro East Mixed Use Overlay Zone. The applicant has opted to pay an in -lieu fee of approximately $3,334,275 to satisfy the City's inclusionary housing requirements, which is subject to adjustment at the time of building permit issuance. Prosect Backaround On April 13, 2015, the Planning Commission approved plans for The Madison that consisted of a six -story development with 217 dwelling units (including four live/work units) and 6,220 square feet of commercial retail uses on the subject site. The development included approximately 20,700 square feet of public open space, 32,000 square feet of private and common open space, and 441 parking spaces within a two-level parking garage. The proposed project is a revision to the 2015 plans with an increase in building height and number of units, architectural modifications and enhancements, and a reduction in parking. In order to adequately provide fire access, the site layout is also modified from prior plans to reduce the building massing along the south and west sides of the site. Pursuant to SAMC Section 41.638.1, a minor exception has been granted by the Planning Manager for 23% tandem residential spaces, specifically 104 parking spaces arranged in tandem configuration. More tandem parking spaces (48%) were provided with the previously approved plans and the current project is proposing less tandem spaces. Tandem parking is only proposed within the access -controlled area of the three-level parking structure and will not impact the publicly available spaces for guests and commercial uses. Tandem parking is a supported, common practice in larger, urban office and residential projects, including other projects in Santa Ana and those in surrounding cities. The tandem spaces are planned to be distributed between one -bed, two -bed, three -bed, and live/work units and managed through a parking management plan. Project Analysis The proposed mixed-use development requires approval of a site plan review and two variances by the Planning Commission. The following sections of this report provide analyses for each of the proposed action items and the basis for staffs recommendation of approval of the project. Site Plan Review Pursuant to MEMU Section 8.1, site plan review approval by the Planning Commission is required for development projects in the overlay zone to ensure conformity with applicable development standards. The subject site is located within the Active Urban District of the MEMU that is intended 75A-11