Article 23

DEVELOPMENT AGREEMENTS

Sections:

• § 38-169. Purpose. § 38-170. Application Requirements. § 38-171. Content of Development Agreement. § 38-172. Development Agreement Hearings. § 38-173. Execution and Recordation. § 38-174. Periodic Review. § 38-175. Effect of Development Agreement. § 38-176. Amendments or Extensions to Development Agreements.

(Ord 3326; 06/2003)

This division establishes procedures and requirements for the review and approval of development agreements, consistent with Government Code Sections 65864-65868.5.

A. Any owner of real property may request and apply through the Community Development Department to enter into a development agreement; provided, that:

1. The status of the applicant as the owner or long-term lessee of the property is established to the satisfaction of the Community Development Director; and

2. The application is made on forms provided by the Community Development Department and shall include a draft development agreement, a statement of potential public benefits accruing to the City if the agreement is entered into, the fee as set by City Council Resolution, and any additional information required by the Community Development Director. (Ord. 3653 § 19, 2022; Ord. 3472 § 1, 2012)

B. The Community Development Director is hereby empowered to receive, review, process and prepare, together with recommendations for Planning Commission and City Council consideration, all applications for development agreements. (Ord. 3653 § 19, 2022; Ord. 3472 § 1, 2012; Ord. 3424 § 1, 2009)

The Monterey City Code is current through Ordinance 3716, passed February 3, 2026.

Page 286 of 310

Ch. 38 Zoning Ordinance | Monterey City Code

A. A development agreement entered into in compliance with this Article shall contain the mandatory provisions set forth in Government Code Section 65865.2

B. A development agreement entered into in compliance with this Article shall contain those permissive provisions set forth in Government Code Section 65865.2, as required by the Community Development Director. (Ord. 3653 § 19, 2022; Ord. 3472 § 1, 2012; Ord. 3424 § 1, 2009)

A. Upon finding the application for a development agreement complete, the Community Development Director shall set the application and draft agreement, together with staff recommendations, for a public hearing before the Planning Commission. If the application is being processed with a development project, the public hearing may be held concurrently with the hearing of the project. Following conclusion of the public hearing, the Planning Commission shall make a finding as to whether the development agreement is consistent with the General Plan and shall make a written recommendation to the City Council. (Ord. 3653 § 19, 2022; Ord. 3472 § 1, 2012)

B. Upon receipt of the Planning Commission’s recommendation, the City Clerk shall set the application, draft agreement, and written report for public hearing before the City Council. The public hearing on the development agreement may be held concurrently with the hearing of an accompanying development project. Following conclusion of the public hearing the Council shall approve, conditionally approve or disapprove the application and draft development agreement.

C. Should the City Council approve or conditionally approve the application and draft agreement, it shall as a part of its action, direct the preparation of a final development agreement embodying the terms and conditions of the draft as approved or conditionally approved, and an ordinance authorizing execution of the development agreement by the City Manager.

• D. The ordinance shall contain findings that:

1. The development agreement is consistent with this Article, the general plan, and all applicable neighborhood, community or specific plans;

2. The development agreement will not be detrimental to the health, safety and general welfare and will not adversely affect the orderly development of property or the preservation of property values;

3. Residential Projects Only. That the City Council has considered the effect of the development agreement on the housing needs of the City and has balanced these needs against the public service needs of its residents and available fiscal and environmental resources. (Ord. 3424 § 1, 2009)

The Monterey City Code is current through Ordinance 3716, passed February 3, 2026.

Page 287 of 310

Ch. 38 Zoning Ordinance | Monterey City Code

A. The City shall execute development agreements on or after the effective date of the ordinance approving the agreement.

B. A development agreement shall be recorded in the office of the county recorder no later than 10 days after it is executed.

A. Every development agreement approved and executed in compliance with this section shall be subject to annual City review, during the full term of the agreement. Appropriate fees to cover the City’s costs to conduct the periodic reviews shall be collected from the applicant in compliance with City Resolution.

B. The purpose of the periodic review shall be to determine whether the applicant or its successor-in-interest has complied in good faith with the terms of the development agreement. The burden of proof shall be on the applicant or its successor to demonstrate compliance to the full satisfaction of, and in a manner prescribed by the Community Development Director. (Ord. 3653 § 19, 2022; Ord. 3472 § 1, 2012)

C. If, as a result of periodic review the City Council finds and determines, on the basis of substantial evidence, that the applicant or its successor-in-interest has not complied in good faith with the terms or conditions of the agreement, the City Council may order, after a noticed public hearing, that the agreement be terminated or modified. (Ord. 3424 § 1, 2009)

A. Unless otherwise provided by the development agreement itself, the rules, regulations, and official policies governing allowed uses of the land, density and intensity of use, 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. A development agreement does not prevent the City, in subsequent actions, from applying new rules, regulations, and policies that do not conflict with those applicable to the property, nor does a development agreement prevent the City from conditionally approving or disapproving any subsequent development project application on the basis of existing or new rules, regulations and policies.

A. If any development agreement is amended during its term, any change shall be consistent with the provisions of the general plan and any applicable specific plan.

The Monterey City Code is current through Ordinance 3716, passed February 3, 2026.

Page 288 of 310

Ch. 38 Zoning Ordinance | Monterey City Code

B. If the term of a development agreement is extended, any development that occurs after the original expiration date shall be consistent with the provisions of the general plan as of the adoption date of the amended development agreement.