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-. � Consider an Ordinance to Rezone and a Resolution Approving a Conditional Use Permit (CUP) for Michael Schueller and Riaz and Catherine Hussain to allow a Deli and Catering Facility at 1901 Lexington Avenue (PF07-069) Associate Planner Bryan Lloyd provided a summary review of the request of Michael Schueller, in cooperation with property owners Riaz and Catherine Hussain, for REZONING and a CUP to allow a deli and catering facility at 1901 Lexington Avenue. Mr. Lloyd noted that the Planning Commission had approved the request on a 5/2 vote at their December 2007 meeting. Mayor Klausing opined that the concept of a deli appeared to be a good use at this site, with no apparent objections of the neighborhood to such a use; it appeared that the concern was rezoning the site for this low impact use, that may allow future undesirable uses, having greater impact to the safety and traffic concerns for the neighborhood along Autumn Street. Mayor Klausing noted that the land use zoning distinction would Flow with the land, not the specific applicanYs use, if another permitted use was considered. Councilmember Ihlan shared the concerns of the neighbors, and Mayor Klausing, regarding rezoning; expressing preference for accommodating this use through a Planned Unit Development (PUD); allowing for flexibility without amending the zoning code, while addressing concerns of the neighborhood. Discussion included possible zoning text amendment; normal application of PUD's to redevelopment properties, rather than reuse of existing buildings; desire for transparency ir permitted uses; changes to underlying zoning for consistency with the Comprehensive Plan; and the need for future policy review of border zones and limited business zones. Applicant(s) Darlene Schueller and Michael Schueller, co-owners of deli/catering service Mr. Schueller advised that, when addressed by the Planning Commission for B-1B rezoning, he had sought other options to limit other potential uses of the property, while approving the use as a deli. Mr. Schueller noted that he was flexible and had no objection to limiting the scope of the use, and advised that his original intent for a pick-up window, had been removed from the proposal, with their intent for several limited time parking spots instead for pick up of take out orders. Discussion included the 60-day re"view deadline of March 1, 2008; Public Hearing held at the Planning Commission specific to rezoning, and he need for the applicant to withdraw their current application and resubmit an application for a new and separate review process. City Attorney Anderson advised that there were three (3) options: 1) to approve this application as presented and as recommended by staff for rezoning and a CUP; 2) to vote down the current application; or 3) to have the applicant withdraw this application in writing, and submit another application to proceed through a new Public Hearing process. Further discussion ensued regarding how to allow this specific deli use, while not creating an avenue for other permitted, but less desirable uses that would create negative impacts to the neighborhood; of possible changes to uses in specific restaurant class charts. Councilmember Pust recommended that the applicant withdraw this application.