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The Berkeley City Council may by ordinance, such ordinance being subject to referendum, exempt any specific district(s) from the provisions of this chapter provided that:

A. The ordinance enacting the exemption shall also contain a neighborhood area plan for the district(s) being exempt, including amendments to the zoning ordinance with revised use permit criteria; and

B. The neighborhood area plan incorporates the principles set forth in the master plan of 1977 and Section 22.12.070 herein, and has been prepared with the participation of neighborhood residents and merchants and other concerned citizens. (Ord. 5506-NS § 11, 1982)