Chapter 17.150 — DEVELOPMENT AGREEMENTS

• A. The purpose of this Chapter is to provide procedures and minimum requirements for the review and consideration of development agreements upon application by, or on behalf of property owners or other persons having a legal or equitable interest in the property subject to the agreement.

• B. It is intended that the provisions of this Chapter shall be fully consistent, and in full compliance, with the provisions of State law (Article 2.5 of Chapter 4 of Division 1 of Title 7 , commencing with Section 65864 of the Government Code), and shall be so construed.

• C. In construing the provisions of any development agreement entered into in compliance with this Chapter, those provisions shall be read to fully effectuate, and to be consistent with, the language of this Chapter, State law (Article 2.5 of the Government Code , cited above), and the agreement itself. Should any apparent discrepancies between the meaning of these documents arise, reference shall be made to the following documents and in the following order:

  1. The plain terms of the development agreement itself;

  2. The provisions of this Chapter; and

  3. The provisions of State law (Article 2.5 of the Government Code , cited above).

• D. A development agreement is a legislative act and not a land use permit or entitlement.

• A. Initiated by owner. Any owner of real property may request and apply through the City Planner to enter into a development agreement provided the following:

  1. The status of the applicant as an owner of the property is established to the satisfaction of the City Planner;

  2. The application is made on forms approved, and contains all information required, by the City Planner; and

  3. The application is accompanied by all lawfully required documents, information and materials.

• B. City Planner's review. The City Planner is authorized to receive, review, process, and prepare, together with recommendations for Commission and council consideration, all applications for development agreements; and

• C. Fees. Processing fees, as established by resolution of the Council, shall be collected for any application for a development agreement made in compliance with this Chapter. Additionally, appropriate fees shall be established and collected for periodic reviews conducted by the City Planner in compliance with Section 17.150.080 (Periodic Review), below.

• A. Commission's action. The City Planner, upon finding the application for a development agreement complete, shall set the application, together with recommendations, for a public hearing before the Commission in compliance with Chapter 17.180 (Public Hearings). Following conclusion of a public hearing, the Commission shall make a written recommendation to the Council that it approve, conditionally approve, or deny the agreement.

• B. Council's action. The City Clerk shall set the application and written report of the Commission for a public hearing before the Council in compliance with Chapter 17.180 (Public Hearings). Following conclusion of the public hearing, the Council shall approve, conditionally approve, or deny the agreement.

• C. Notice. Notice of the hearings, outlined in subsections A . and B., above, shall be given in the form of a notice of intention to consider approval of a development agreement in compliance

with State law (Government Code Section 65867 ).

• D. Preparation of agreement. Should the Council approve or conditionally approve the application, it shall direct the preparation of a development agreement containing the terms and conditions of the application as approved or conditionally approved, as well as an ordinance authorizing execution of the development agreement by the City Manager.

• E. Findings. The ordinance shall contain the findings required by Section 17.150.040 (Findings and Decision), and the facts supporting them.

• F. Subject to referendum. The ordinance may be subjected to referendum in the manner provided by State law.

The Council may approve a Development Agreement, with or without conditions, only if all of the following findings can be made:

• A. The Development Agreement would be in the best interests of the City and would promote the public interest and welfare of the City.

  1. The approval of a Development Agreement for a project that is merely developed in compliance with this Development Code would not be considered in the best interests of the City.

  2. Examples of project elements and components that may be considered in the best interests of the City and promote the public interest and welfare including, but are not limited to, the following:

     • a. An enhanced/expanded open space network that ties into existing neighboring open space areas;

     • b. A well designed mixed-use project that further implements the goals, objectives, and policies of the General Plan;

     • c. The dedication of lands for public uses above and beyond those necessary for the project; and

     • d. Off-site improvements in the public right-of-way that would generally be above and beyond those required by the City's standard requirements for a project of the scale and intensity desired in the proposed project.

• A. Mandatory contents. A development agreement entered into in compliance with this Chapter shall contain the following provisions:

  1. Specify the duration of the agreement;

  2. Specify the allowed uses for the subject property;

  3. Specify the density/intensity of the allowed uses;

  4. Clearly identify and refer to the approved documents and exhibits;

  5. Specify the maximum height and size of the proposed structures;

  6. Specify the minimum size and dimensions of the proposed parcels;

  7. Describe the provisions, if any, for reservation or dedication of land for public purposes;

  8. Describe the provisions, if any, for the construction or financing of public improvements;

  9. Negotiate a level of protection from either a future growth control ordinance or a future increase in development fees, including impact fees;

  10. Provide for a tiered amendment review process that may incorporate the following:

  - a. City Planner sign-off for minor changes; 
  
  - b. Commission sign-off for major modifications; and 
  
  - c. Approval of major amendments by the Council. 
  

  11. Provide for the possibility of subsequent discovery of health and safety issues (e.g., a "compelling public necessity" [e.g., a new environmental health hazard is discovered]), which would necessitate a reconsideration/amendment of the previously approved development agreement; and

  12. Describe the provisions, if any, for any other matter(s) which is reasonably related to the requested land use permit or entitlement and which the Council deems necessary or convenient to implement the General Plan or to promote the public health, safety, or general welfare.

• B. Permissive contents. A development agreement entered into in compliance with this Chapter may contain the following provisions:

  1. Conditions, terms, restrictions, and requirements for subsequent discretionary actions, provided that the conditions, terms, restrictions, and requirements shall not prevent development of the land for the uses and to the density/intensity of development specified in the agreement;

  2. Provisions which require that construction shall be commenced within a specified time and that the project, or any individual phase, be completed within a specified time;

  3. Terms and conditions relating to applicant financing of necessary public improvements and facilities, including applicant participation in benefit assessment proceedings; and

  4. Any other terms, conditions, and requirements the Council may deem necessary and proper, including requirement(s) for ensuring, to the satisfaction of the City, performance of all provisions of the agreement in a timely manner by the applicant/contracting party.

• A. Effective date. The City shall not execute any development agreement until on or after the date upon which the ordinance approving the agreement, enacted in compliance with Section 17.150.050 , above becomes effective;

• B. Mutual consent required. A development agreement may be executed only upon the mutual consent of each party to the agreement;

• C. City's authority under agreement. The provisions of this Chapter shall not be construed to prohibit the City Planner, Site Plan Review Committee, Planning Commission, or council from conditioning approval of a discretionary land use permit or entitlement on the execution of a development agreement where the condition is otherwise authorized by law; and

• D. Recordation of agreement. A development agreement shall be recorded with the County Recorder no later than 10 days after it is executed.

The approval or conditional approval of a development agreement in compliance with this Chapter shall be deemed a discretionary act for purposes of the California Environmental Quality Act (CEQA).

• A. Review required every 12 months or less. Every development agreement, approved and executed in compliance with this Chapter, shall be subject to periodic review, as specified in the agreement, but in no case less than once every 12 months, by the City Planner during the full term of the agreement. Appropriate fees to cover the City's cost(s) to conduct the periodic reviews shall be collected from the applicant/contracting party in compliance with Section 17.150.020(C) (Application);

• B. Determine compliance. The purpose of the periodic review shall be to determine whether the applicant/contracting party or the successor(s)-in-interest has complied in good faith with the terms and/or conditions of the development agreement. The burden of proof shall be on the applicant/contracting party or the successor(s) to demonstrate compliance, to the full satisfaction of, and in a manner prescribed by, the City; and

• C. Termination of agreement. If the City Planner finds and determines, on the basis of substantial evidence, that the applicant/contracting party or the successor(s)-in-interest has not complied in good faith with the terms or conditions of the agreement, the City Planner may recommend to the Council that it order the agreement to be terminated or modified. This action of the Council shall only take place during a noticed public hearing in compliance with Chapter 17.180 (Public Hearings).

A development agreement may be amended or canceled, in whole or in part, by mutual consent of all parties to the agreement, or the successor(s)-in-interest, in compliance with State law (Government Code Section 65868 ). The requested amendment or cancellation shall be processed in the same manner specified by this Chapter for the adoption of a development agreement.

• A. Rules at the time of execution. Unless otherwise provided by the development agreement, the rules, regulations, and official policies governing allowed uses of the land, density, design, improvement, and construction standards and specifications, applicable to development of the property subject to a development agreement, are the rules, regulations, and official policies in force at the time of execution of the agreement.

• B. Subsequent City actions. Unless specifically provided for in the development agreement, the agreement does not prevent the City, in subsequent actions applicable to the property, from applying new rules, regulations, and policies which do not conflict with those rules, regulations, and policies applicable to the property under the development agreement, nor does a

development agreement prevent the City from conditionally approving or denying any subsequent development project application on the basis of existing or new rules, regulations, and policies.

Development agreements approved by the Council shall be on file with the City Clerk.