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While the Commission has generally not supported the payment of fees, it can be justified based on the uniqueness of the proposed Oak Grove project and the general unsuitability of the site to accommodate units that are appropriate as affordable housing. The uniqueness of the project relates primarily to the severe topography of the land and the location of the 562-acre site relative to the developed areas of the City. In order to maximize the sensitivity of the grading and minimize visual and environmental impacts, streets and lots will be fitted to the topography, resulting in linear clusters of lots along several ridges and valleys. There would be no single, large developable area that would be suitable for higher density development of the type that could accommodate approximately I0 affordable units. In addition, the proposed project includes 482 acres of permanent open space that would include more than 25,000 lineal feet (about 4.7 miles) of regional and local trails accessible to the public. Summary The developer's proposal provides an opportunity for the development of 20 income restricted ownership or rental units from a development that would otherwise most likely pay the LIHF. As a result, the proposal represents an opportunity to have affordable units built. The IZO was specifically designed to place a high priority on obtaining actual affordable units as part of new residential projects whenever practical and reasonable. However, in developing the IZO, the City also acknowledged that there would be some future projects in which an alternative to providing affordable units might be necessary. Hence, the IZO includes several alternatives (outlined earlier in this report) that can be considered by the Commission/City Council in lieu of constructing affordable units. Staff believes that the Oak Grove project is the type of development in which the application of off-site units is appropriate and warranted. This is based primarily on the fact that on-site units are not practical considering some of the projects unique features including: • Topography and location of the site • Design of the land plan to maximize sensitivity to the site • 482 acres of permanent open space Staff Recommendation Staff recommends that the Commission recommend approval of the developer's proposal to satisfy the City's inclusionary requirement by the use of off-site units as outlined above. If the Commission approves the developer's proposal staff will incorporate the concept into the development agreement and into the affordable housing agreement that will be forwarded to the City Council as part of the project approval documents. Page - S -