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Page 15 of 18 Staff recommends the City Council approve the Arroyo Lago application processing terms provided in Attachment 1, and direct staff to continue discussions with the applicant on PADA terms, and bring these terms to the City Council for review and approval at a future date. Part 3: East Lakes Project Issues The following discussion addresses issues unique to the proposed Arroyo Lago project. Age-Restricted Housing As described in the Background section, the applicant has provided two “City” Alternatives for the East Lakes project (see Attachment 5). Staff has not yet analyzed these alternatives in detail and does not request City Council direction on a preferred alternative at this time. However, staff does request City Council input on the extent to which the project should include age-restricted housing available only to older adults. In both City alternatives, the applicant proposes a mix of market-rate units (no age restriction) and age-restricted units for older adults. Age-restricted units may be assisted living/memory care units (City Alternative 1) and/or active adult units (City Alternative 2). In contrast, the East Lakes County application proposes all units to be age-restricted with a combination of active adult and assisted living/memory care units. Another possibility, though not proposed by the applicant, is to provide all market-rate units with no age restriction. Given that the applicant’s City alternatives include housing without age restrictions, staff discussed the proposed project with the Pleasanton Unified School District. School district staff indicated that, due to declining enrollment in the two elementary schools closest to East Pleasanton (Mohr and Alisal Elementary Schools), the District expects to have sufficient capacity for additional students generated from non-age-restricted housing within the East Lakes, if it were proposed. As noted in the Background section, General Plan programs call for the City to “discourage new gated communities” with “neighborhoods open and accessible to one another.” The applicant has indicated that a perimeter gate is necessary for a project where all units are age- restricted. This change would allow the project to be better integrated, physically and visually with adjacent neighborhoods, allow for better connectivity through the site for all users, and allow for access to any publicly-accessible open space areas created within the 60+ acre site. Furthermore, the project could offer a greater diversity of housing opportunities for different household types, and improve the potential for affordable units to be integrated into the project. For these reasons, staff recommends either a mix of market rate and age- restricted units (as proposed in the City Alternatives) or a project with all market-rate units. Affordable Housing The County East Lakes project would include on-site deed-restricted affordable units consistent with Builder’s Remedy requirements. For the “City” East Lakes project, the applicant has not yet finalized an affordable housing plan and has indicated it is exploring options to provide a dedicated affordable housing site, spread affordable units throughout the project, pay in lieu fees, or implement a combination of those options. Page 214 of 749