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The Hillcrest Development brochure was attached as Exhibit H to the June 12, 2000 draft of Preliminary Concept Plan Application. 3. What is the expected effect of the proposed change? (For example, on property values, health, safety, parking, traffic conditions, etc.). (Paragraph 11 and Narrative/explanation (Paragraph 20.D)) A. Apache Plaza Property i. Uses and the General Redevelopment Plan The effect of the proposed change for the subject property will be positive. The Applicant is proposing a change in use of a dilapidated, underutilized, blighted retail shopping center. The Applicant's Preferred Plan proposes a mix of tenants for the Apache Plaza Shopping Center building ("Apache Plaza") which will include, without limitation, a community space, high technology office/development, general office, office warehouse, a printing facility, and accessory uses ("Office"). All of the uses in the Preferred Plan are permitted pursuant to the newly adopted PUD Ordinance ("PUD Ordinance"). A list of the proposed Permitted and Accessory Uses is attached hereto on Exhibit A ("Uses"). The uses will be permitted under the PUD Ordinance following adoption of the pending amendment to the City's Comprehensive Guide Plan, which will allow for the Uses requested by the Applicant. The Preferred Plan will include interim uses. These interim uses will include warehousing distribution, wholesaling and other non-Office uses ("Interim Uses"). The Interim Uses will be in large part a result of (i) the need to lease space during the initial lease-up and prior to redevelopment of the entire Apache Plaza Building; (ii) the Applicant's tenants' need for the right for expansion space; and (iii) the need to lease space following vacation of initial and/or former tenants. Many of the Applicant's leases will allow for the tenant to expand into adjacent space. A lease may include a right of first refusal or a "put" to the tenant, allowing or requiring the tenant to occupy the adjacent space. In other projects, the Applicant leases space adjacent to a tenant (subject to the tenant's potential future occupancy) to a third party for a warehouse or distribution type use. The Applicant may take the same approach with Apache Plaza. Under the proposed PUD Ordinance, all uses allowed under the City's Comprehensive Plan for the specific area will be permitted uses. The pending Comprehensive Plan Amendment allows for the Applicant's proposed Uses. The Uses, as well as any performance standards or other specific criteria for the development, will not only be regulated by the PUD Ordinance, but also by a PUD Agreement to be negotiated and approved by the City Counsel. 3