(6) Standards for PUD zoning district review. The commission shall recommend approval, approval with conditions, or denial, and City Council shall approve or deny the proposed PUD zoning district based on the following standards: (a) The use or uses, physical characteristics, design features, or amenities proposed shall have a beneficial effect for the City, in terms of public health, safety, welfare, aesthetics, or convenience, or any combination thereof, on present and potential surrounding land uses. The beneficial effects for the City which warrant the zoning include, but are not limited to, features such as: (i) Innovation in land use and variety in design, layout and type of structures which furthers the stated design goals and physical character of adopted land use plans and policies; (ii) Economy and efficiency of land use, natural resources, energy, and provision of public services and utilities; (iii) Provision of usable open space; (iv) Preservation and protection of natural features that exceeds ordinance requirements, especially for those features prioritized in the land development regulations as being of highest concern, or that preserves existing conditions instead of merely providing mitigation; (v) Employment and shopping opportunities particularly suited to the needs of the residents of the City; (vi) Expansion of the supply of affordable housing for lower income households; and (vii) The use and reuse of existing sites and buildings which contributes to the desired character and form of an established neighborhood. (b) This beneficial effect for the City shall be one which could not be achieved under any other zoning classification and shall be one which is not required to be provided under any existing standard, regulation or ordinance of any local, state or federal agency. (c) The use or uses proposed shall not have a detrimental effect on public utilities or surrounding properties. (d) The use or uses proposed shall be consistent with the master plan and policies adopted by the City or the petitioner shall provide adequate justification for departures from the approved plans and policies. (e) If the proposed district allows residential uses, the residential density proposed shall be consistent with the residential density recommendation of the master plan, or the underlying zoning when the master plan does not contain a residential density recommendation, unless additional density has been proposed in order to provide affordable housing for lower income households in the following manner: (i) Proposed PUD projects exceeding the residential density recommendation of the master plan, or the underlying zoning when the master plan does not contain a residential density recommendation, by up to 25% shall provide 10% of the total dwelling units as dwelling units affordable to lower income households. Proposed PUD projects exceeding the residential density recommendation of the master plan, or the underlying zoning when the master plan does not contain a residential density recommendation, by over 25% shall provide 15% of the total dwelling units as dwelling units affordable to lower income households. (ii) Dwelling units affordable to lower income households shall be provided by the development of units on-site, or payment of an affordable housing contribution in lieu of units consistent with the formula adopted by annual resolution of City Council, or any combination thereof. (iii) When the affordable housing requirement results in a fractional unit, the fractional unit shall be converted to an affordable housing contribution in lieu of units, using the following formula: the fraction shall be multiplied by the per-unit PUD affordable housing contribution as determined by the formula adopted annually by City Council. (iv) The commission shall recommend approval, approval with conditions, or denial, and City Council, in its sole discretion, may approve or deny payment of an affordable housing contribution in lieu of units. (v) Provisions to implement the affordable housing proposal shall be included in the PUD supplemental regulations or the development agreement, or both, as determined by the City. (f) The supplemental regulations shall include analysis and justification sufficient to determine what the purported benefit is, how the special benefit will be provided, and performance standards by which the special benefit will be evaluated. (g) Safe, convenient, uncongested, and well-defined vehicular and pedestrian circulation within and to the district shall be provided and, where feasible, the proposal shall encourage and support the use of alternative methods of transportation. (h) Disturbance of existing natural features, historical features and historically significant architectural features of the district shall be limited to the minimum necessary to allow a reasonable use of the land and the benefit to the community shall be substantially greater than any negative impacts.