Chapter 18.148 — DEVELOPMENT AGREEMENTS
Merced County Zoning Code · 2026-06 edition · ingested 2026-07-06 · Merced County
§ 18.148.010. Purpose. ¶
A. Purpose.
A development agreement is a contract between the County and an applicant with a legal or equitable interest in land subject to development, in compliance with Government Code Article 2.5 (Development Agreements).
A development agreement is intended to provide assurance to the applicant that an approved project may generally proceed subject to the policies, rules, regulations, and conditions of approval applicable to the project at the time of approval, regardless of any changes to County policies, rules, and regulations after project approval.
In return, the County is provided assurance that the project will further important Countywide goals and policies that have been officially recognized by the Board, and provide the County with significant, tangible benefits beyond those that may be required by the County through project conditions of approval.
B. Construing the Provisions. 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, Government Code Article 2.5, 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:
The provisions of Government Code Article 2.5;
The provisions of this chapter; and
- The plain terms of the development agreement itself. (Ord. 1976 § 2, 2019)
§ 18.148.020. Application Requirements. ¶
A. Equitable Interest. Person(s) having a legal or equitable interest in real property may apply through the Director to enter into a development agreement if all of the following criteria are met:
The status of the applicant, having a legal or equitable interest in the subject real property, is established to the satisfaction of the Director. An applicant may also include an authorized agent; and
The application is made on approved forms, containing all lawfully required documents, materials, and information.
B. Director's Review and Recommendations. The Director is authorized to receive, review, process, and prepare, together with recommendations for Commission and Board consideration, all applications for development agreements. The Director may call upon all other County departments for timely assistance in complying with this chapter.
C. Fees. Processing fees, as established by the Fee Schedule, shall be collected for an application for a development agreement made in compliance with this chapter. Additionally, appropriate fees shall be established and collected for amendments to a development agreement and the periodic review identified in Section 18.148.080 (Periodic Review).
(Ord. 1976 § 2, 2019)
§ 18.148.030. Application Filing, Processing, and Review. ¶
A. Filing. An application for a development agreement shall be filed with the Department in compliance with Chapter 18.112 (Application Processing Procedures).
B. Contents. The application shall be accompanied by detailed data/materials identified in the most up-to-date Department handout for development agreement applications.
C. Project Review Procedures. Following receipt of a completed application, the Director shall investigate the facts necessary for action consistent with the purpose of this chapter.
D. Notice and Hearings.
The Director, upon finding the application for a development agreement complete and in compliance with the provisions of the California Environmental Quality Act (CEQA), shall schedule the application, together with recommendations, for public hearing before the Commission. Following conclusion of the public hearing, the Commission shall make a written recommendation in the form of a resolution to the Board that it approve, conditionally approve, or deny the application, based on the findings identified in Section 18.148.050 (Findings and Decision).
Upon receipt of the Commission's recommendations, the Clerk of the Board shall set the application and written report of the Commission for a public hearing before the Board. Following conclusion of the public hearing, the Board shall approve, conditionally approve, or deny the application, based on the findings identified in Section 18.148.050 (Findings and Decision).
Notice of the hearings identified in paragraphs 1 and 2 of this subsection, shall be given in the form of a notice of intention to consider approval of a development agreement in compliance with Government Code Section 65867 and Chapter 18.146 (Public Notices and Hearings).
(Ord. 1976 § 2, 2019)
§ 18.148.040. Development Agreement Content. ¶
A. Mandatory Contents. A development agreement shall contain the applicable provisions identified below, in compliance with Government Code Section 65865.2 :
Specifying the:
a. Duration of the agreement;
b. Allowed uses for the subject property;
c. The maximum height and size of proposed buildings;
d. Density/intensity of the allowed uses; and
e. Provisions for reservation or dedication of land for public purposes.
Describing the:
a. Maximum height and size of proposed structures by clearly identifying and referring to the documents and exhibits approved;
b. Provisions, if any, for reservation or dedication of land for public purposes; and
c. Provisions, if any, for the protection from either a future growth control ordinance or a future increase in development and/or effect fees.
Provide for a tiered amendment review procedure that may incorporate the following:
a. Director approval for minor modifications;
b. Commission approval for major modifications; and
c. Board approval for major amendments.
Provide for the possibility of subsequent discovery of health and safety issues like 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.
B. Permissive Contents. A development agreement may contain the applicable provisions identified below, in compliance with Government Code Section 65865.2 :
Conditions, terms, restrictions, and requirements for subsequent discretionary actions; provided, the conditions, terms, restrictions, and requirements for subsequent discretionary actions shall not prevent development of the land for the uses and to the density/intensity of development specified in the agreement;
Provisions that require that construction shall be commenced within a specified time and that the project, or any single phase, be completed within a specified time;
Terms and conditions relating to applicant financing of necessary public improvements and facilities including applicant participation in benefit assessment proceedings; and
Other terms, conditions, and requirements as the Board may deem reasonable, necessary, and proper, including requirement(s) for ensuring, to the satisfaction of the Director, performance of all provisions of the agreement in a timely manner by the applicant/contracting party.
(Ord. 1976 § 2, 2019)
§ 18.148.050. Findings and Decision. ¶
The Review Authority may approve a development agreement only if it first makes all the following findings:
A. The development agreement is in the best interests of the County;
B. The development agreement is consistent with the purpose, intent, goals, policies, programs, and land use designations of the General Plan, any applicable specific plan, and this Zoning Code;
C. The development agreement will promote the public convenience, health, interest, safety, and general welfare of the County;
D. The project will be compatible with the uses authorized in, and the regulations prescribed for, the zone in which the real property is located;
E. The project will not adversely affect the orderly development of property or the preservation of property values;
F. The project will further important Countywide goals and policies that have been officially recognized by the Board; and
G. The project will provide the County with important, tangible benefits beyond those that may be required by the County through project conditions of approval.
(Ord. 1976 § 2, 2019)
§ 18.148.060. Execution and Recordation. ¶
A. Adoption of Ordinance Becomes Effective.
If the Board approves the development agreement, it shall do so by the adoption of an ordinance.
The County shall not execute a development agreement until on or after the date upon which the ordinance approving the agreement, enacted in compliance with Section 18.148.030(D) (Application Filing, Processing, and Review: Notice and Hearings), becomes effective.
The development agreement shall be signed by the Chairman of the Board or County Executive Officer (CEO).
B. Recordation of Agreement. A development agreement shall be recorded in the County Recorder's Office no later than 10 days after it is executed.
(Ord. 1976 § 2, 2019)
§ 18.148.070. Amendment and Cancellation of Development Agreements. ¶
A. Proposed Amendment or Cancellation. Either party to the development agreement may propose an amendment, in whole or in part, or the cancellation of the development agreement.
B. Processing Procedures. The procedure and notice requirements for amendment or cancellation of the development agreement are the same as the procedure for entering into an agreement in compliance with this chapter.
C. County Initiated Amendment or Cancellation. Where the County initiates the amendment or cancellation of the development agreement, it shall first give notice to the property owner of its
intention to initiate the proceedings at least 10 days before giving public notice to consider the amendment or cancellation, in compliance with Chapter 18.146 (Public Notices and Hearings). (Ord. 1976 § 2, 2019)
§ 18.148.080. Periodic Review. ¶
A. Subject to Periodic Review.
Every development agreement approved and executed in compliance with this chapter, shall be subject to periodic County review during the full term of the agreement, in compliance with Government Code Section 65865.1 .
The County shall review the development agreement upon initiation by the applicant/contracting party or its successor(s)-in-interest, but at least every 12 months from the date the agreement is executed.
The time for review may be shortened either by agreement between the parties or by initiation in one or more of the following ways:
a. Affirmative vote of at least three members of the Commission; or
b. Affirmative vote of at least three members of the Board.
The review schedule shall be specified in the development agreement.
B. Purpose of Periodic Review. The purpose of the periodic reviews shall be to determine whether the applicant/contracting party or its successor(s)-in-interest has complied in good faith with the terms or conditions of the development agreement. The burden of proof shall be on the applicant/contracting party or its successor(s) to demonstrate compliance, to the full satisfaction of, and in a manner prescribed by, the County.
C. Notice of Periodic Review.
The applicant/contracting party or its successor(s)-in-interest shall initiate the review proceeding by making application to the Director in compliance with this section.
Upon receipt of a complete application, the Director shall begin the review proceeding by giving notice that the County intends to undertake a periodic review of the development agreement to the applicant/contracting party or its successor(s)-in-interest, and any person who has filed a written request for notice with the Director and has paid the required fee for the notice.
The Director shall give the notice at least 10 days in advance of the time when the matter will be considered by the Commission in compliance with Subsection 18.148.030(D) (Application Filing, Processing, and Review: Notice and Hearings).
D. Review by Commission. Review shall be conducted by the Commission.
The Commission shall conduct a hearing at which the applicant/contracting party or its successor(s)-in-interest shall demonstrate good faith compliance with the terms of the development agreement.
The burden of proof of this issue is on the applicant/contracting party or its successor(s)-ininterest.
E. Findings. The Commission shall determine, based upon substantial evidence provided by the applicant/contracting party or its successor(s)-in-interest, whether the applicant/contracting party or its successor(s)-in-interest has, for the period under review, complied in good faith with the terms and conditions of the development agreement.
F. Procedure Upon Findings.
- Has Complied.
a. If the Commission finds and determines that the applicant/contracting party or its successor(s)-in-interest has complied in good faith with the terms and conditions of the development agreement during the period under review, the review for that period is concluded, and a notice of that determination shall be sent to the Board and the applicant/contracting party or its successor(s)-in-interest.
- b. The Board shall review the Commission's action. - c. If the Board so desires, it can schedule a public hearing for further review.- Has Not Complied. If the Commission finds and determines that the applicant/contracting party or its successor(s)-in-interest has not complied in good faith with the terms and conditions of the development agreement, the Commission shall forward its recommendation to the Board and the Board may modify or terminate the agreement, or provide more time for the applicant/contracting party or its successor(s)-in-interest to comply in good faith with the terms and conditions of the development agreement.
G. Modification or Termination of Development Agreement.
Proceedings Upon Modification or Termination. If, upon a finding under subsection F (Procedure upon Findings), the County determines to proceed with modification or termination of the development agreement, the County shall give notice to applicant/ contracting party or its successor(s)-in-interest of its intention to do so. The notice shall contain all of the following:
a. The time and place of the hearing, which shall be conducted by the Board;
b. A statement as to whether or not the County proposes to terminate or to modify the development agreement; and
c. Other information that the County considers necessary to inform applicant/ contracting party or its successor(s)-in-interest of the nature of the proceedings.
Hearing on Modification or Termination of Development Agreement.
a. At the time and place set for the hearing on modification or termination, the applicant/contracting party or its successor(s)-in-interest shall be given an opportunity to be heard.
b. At the hearing, the Board may affirm, modify, or reject the determination of the Commission.
c. The Board may refer the matter back to the Commission for further proceedings or for report and recommendation.
d. The Board may impose those conditions to the action it takes as it considers reasonable, necessary, and proper in order to protect the interests of the County.
e. The decision of the Board on the modification or termination shall be final.
(Ord. 1976 § 2, 2019)
§ 18.148.090. Effect of Development Agreements. ¶
- A. Rules in Force at the Time of Execution. Unless otherwise provided by the development agreement, the policies, regulations, and rules 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 policies, regulations, and rules in force at the time of execution of the agreement.
B. Application of New Rules. In compliance with Government Code Section 65866 , a development agreement shall not prevent the County, in subsequent actions applicable to the property, from applying new policies, regulations, and rules that do not conflict with those policies, regulations, and rules applicable to the property, nor shall a development agreement prevent the County from conditionally approving or denying any subsequent development project application on the basis of existing or new policies, regulations, and rules.
(Ord. 1976 § 2, 2019)
§ 18.148.100. Approved Development Agreements. ¶
Development agreements approved by the Board shall be on file with the Clerk of the Board. (Ord. 1976 § 2, 2019)