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The granting of a side yard variance for Lot 7 allows for the reasonable use and continued accessibility of the remaining mall, while also enabling planned redevelopment plans for the whole property to move forward. Duane Grace submitted a report to the City upon reviewing plans for the proposed partial demolition of norther portion of the existing mall involving the old J.C.Penney's store. In his report, Mr. Grace advised the City that according to the Uniform Building Code, a zero-lot line for the remaining mall building will be acceptable provided that 1.) a two- hour (2) fire rated area separation wall be constructed to replace that wall that is removed and that this wall be continued at right angles to the east and west of the exterior of the Cub Foods store for an additional five (5) feet in each direction; 2.) 60 feet of open area be maintained around Cub Foods store-and the remaining portion of the existing mall as is required, with the exception of northern wall; and 3.) that both buildings will maintain a fully automatic fire suppression systems. RECOMMENDATION: Staff recommends that the Planning Commission recommends approval of the 10 foot side yard variance request made by Ste. Marie Corporation. If the variance is granted, it will not alter the essential character of the property or locality. The variance request was made for the purpose of enhancing the redevelopment of the property to return it to its reasonable and best use. Because the Ste. Marie Corporation acquired this property through the deed in lieu of foreclosure, they did not create the hardship that has caused them to request the side yard variance. While redeveloping this property is in their economic best interest, they also want to maintain most of the existing building to accommodate existing tenants. Granting the variance and allowing a phased redevelopment is also in the best economic interest of the remaining tenants.