Chapter 20.510 — DEVELOPMENT AGREEMENTS

• A. Provide procedures. The purpose of this Chapter is to provide procedures for the processing of Development Agreements in compliance with the Government Code Sections 65864 through 65869.5 . A development agreement is a contract between the City and a person 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 City policies, rules, and regulations after project approval. In return, the City is provided assurance that the project would further Citywide goals and policies that have been officially recognized by the Council, and provide the City with significant, tangible benefits beyond those that may be required by the City through project conditions of approval.

• B. Compliance required. All Development Agreements shall be processed in compliance with this Chapter. (Ord. 1017, 2013)

• A. Filing by owner. An application for a Development Agreement may only be filed by a person having a legal or equitable interest in the subject real property. The Director shall require an applicant to submit a title report or other evidence satisfactory to the Director to verify the applicant's interest in the real property.

• B. Director's review and recommendations. The Director is empowered to receive, review, process, and prepare, together with recommendations for Commission and Council consideration, all applications for development agreements. The Director may call upon all other City departments for timely assistance in complying with this Chapter.

• C. Annexation. If the real property is located in unincorporated territory within the City's sphere of influence, the Development Agreement shall not become operative unless annexation proceedings annexing the property to the City are completed within the period of time specified by the Development Agreement. If the annexation is not completed within the time specified, the Development Agreement is void.

• D. Application fees. The applicant shall pay fees for the filing and processing of a Development Agreement application as established by the Planning Fee Schedule.

• (Ord. 1017, 2013)

• A. Required provisions.

  1. A Development Agreement shall include all of the following, as applicable, in compliance with Government Code Section 65865.2 :

     • a. The duration of the Development Agreement;

     • b. The allowed uses of the property;

     • c. The density or intensity of the allowed uses;

     • d. The maximum height and size of the proposed structures;

     • e. Provisions for the dedication of land for public purposes;

     • f. The public benefit offered by the applicant as consideration for entering into the Development Agreement; and

     • g. The provisions specified in Subsection 20.510.080.B (Limitations), below.

  2. Provisions in Subparagraphs 1.b., c., and d., above, may be satisfied by incorporating the terms of a Planned Development Permit governing the same property.

• B. Optional provisions. A Development Agreement may include the following:

  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 or intensity of development specified in the Development Agreement;

  2. Provisions providing that construction shall begin within a specified time and that the project or any phase be completed with a specified time; and

  3. Terms and conditions relating to financing of necessary public facilities and subsequent reimbursement over time.

• C. Provisions not allowed. A Development Agreement shall not include the following:

  1. Requirements for the City to provide public facilities, improvements, or services;

  2. Requirements for the City to exercise its legislative or quasi-judicial powers in a particular way; or

3. Waivers or modifications of any City fees or requirements.

(Ord. 1017, 2013)

• A. Completeness.

  1. The Director shall determine whether the application is complete.

  2. The Director shall schedule the proposed Development Agreement for the required hearing for initial review in compliance with this Section.

• B. Initial review by Council.

  1. The Council shall hold a noticed public hearing to initially review an application for a Development Agreement.

  2. At the hearing, the Council shall determine whether it wishes to enter into a Development Agreement and, if so, the general subject areas the City staff is authorized to negotiate.

  3. Notice of the hearing shall be given as provided in Government Code Sections 65090 and 65091 and Chapter 20.625 (Public Hearings).

• C. Initial review not required. Initial review under this Section is not required for:

  1. A Development Agreement approved in conjunction with the approval or amendment of a Planned Development Permit under Chapter 20.520 (Planned Development Permit). The Development Agreement for these planned development projects shall be substantially in the standard form prepared by the City Attorney's office;

  2. A Development Agreement approved in conjunction with a Specific Plan area, in compliance with Chapter 20.535 (Specific Plans); and

3. An amendment to an existing Development Agreement.

(Ord. 1017, 2013)

• A. Director's responsibilities.

  1. The Director shall direct the negotiations with the developer regarding terms of the Development Agreement.

  2. The Director shall determine what environmental review is appropriate under the California Environmental Quality Act (CEQA).

  3. Once negotiations are completed, the Director shall schedule the proposed Development Agreement for the required hearings in compliance with this Section.

• B. Commission hearing and determination.

  1. The Commission shall hold a public hearing to consider whether the Development Agreement should be approved and to make appropriate recommendation to the City Council.

  2. Notice of the hearing shall be given as provided in Government Code Sections 65090 and 65091 and Chapter 20.625 (Public Hearings).

  3. The Commission may recommend approval, approval subject to conditions, or denial of the application based on the findings specified in Subsection D., below.

• C. Council determination.

  1. The Council shall hold a public hearing to consider whether the Development Agreement should be approved.

  2. Notice of the hearing shall be given as provided in Government Code Sections 65090 and 65091 and Chapter 20.625 (Public Hearings).

  3. Approval, authorizing the City Manager to sign the Development Agreement, shall be by ordinance (which takes effect 30 days after adoption), based on the findings specified in Subsection D , below.

• D. Findings. The Commission may recommend approval and the Council may approve the Development Agreement only after first making all of the following findings:

  1. The Development Agreement provides benefit to the City;

  2. 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; and

  3. The Development Agreement complies with the requirements of Government Code Sections 65864 through 65869.5 .

• E. Recordation. Within 10 days after the City enters into a Development Agreement, the City Clerk shall record a copy, at the applicant's expense, of the Development Agreement with the County Recorder.

• (Ord. 1017, 2013)

• A. Authority to propose amendment or cancellation. Either party to the agreement may propose an amendment to or cancellation of the development agreement.

• B. Same procedures. A Development Agreement may be amended or cancelled using the same procedure for entering into the agreement in compliance with this Chapter. Initial review in compliance with Section 20.510.040 (Initial Review) is not required.

• C. City initiated amendment or cancellation. Where the City 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 15 days before giving public notice to consider the amendment or cancellation, in compliance with Chapter 20.625 (Public Hearings).

• (Ord. 1017, 2013)

The City may modify or suspend a development agreement if the City determines that failure of the City to do so would place the residents of the area subject to the development agreement, or the residents of the City, or both, in a condition dangerous to their health or safety, or both, in compliance with Government Code Section 65865.3(b) .

(Ord. 1017, 2013)

• A. Timing of review.

  1. The City shall review each Development Agreement at least every 12 months from the date it is entered into.

  2. The Commission or Council, or both, may hold public hearings to conduct more frequent reviews of a Development Agreement as deemed appropriate.

• 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 City.

• C. Notice of periodic review.

  1. The Director shall give notice of the intention to conduct a review under this Section as provided in Government Code Sections 65090 and 65091 and Chapter 20.625 (Public Hearings).

  2. In addition, at least 15 days before the hearing, the Director shall give notice to all persons having a legal or equitable interest in the real property subject to the Development Agreement.

  3. The notice shall include all of the following:

     • a. A statement that the applicant, or the successor(s)-in-interest to the Development Agreement, has the burden of demonstrating good faith compliance with the terms of the agreement; and

     • b. A statement that if, as a result of the review, the Commission or Council finds on the basis of substantial evidence that the applicant or successor(s) to the Development Agreement has not complied in good faith with the terms and conditions of the agreement, the City may modify or terminate the agreement.

• D. Review by Commission. Review shall be conducted by the Commission.

  1. The Commission shall conduct a hearing at which the applicant/contracting party or its successor(s)-ininterest shall demonstrate good faith compliance with the terms of the development agreement.

  2. The burden of proof of this issue is on the applicant/contracting party or its successor(s)-in-interest.

• E. Findings upon hearing. The Commission shall determine, upon the basis of substantial evidence, whether or not 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.

  1. Has complied.

     • a. If the Commission finds and determines, on the basis of substantial evidence, 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 Council and the applicant/contracting party or its successor(s)-in-interest.

     • b. The Council shall review the Commission's action.

     • c. If the Council so desires, it can schedule a public hearing for further review.

2. Has not complied. If the Commission finds and determines, on the basis of substantial evidence, 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 Council and the Council may modify or terminate the agreement.

• G. Modification or termination of development agreement.

  1. Proceedings upon modification or termination. If, upon a finding under Subsection E . (Procedure upon findings), above, the City determines to proceed with modification or termination of the development agreement, the City 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 Council;

     • b. A statement as to whether or not the City proposes to terminate or to modify the development agreement; and

     • c. Other information that the City considers necessary to inform applicant/contracting party or its successor(s)-in-interest of the nature of the proceedings.

  2. 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 Council may affirm, modify, or reject the determination of the Commission.

     • c. The Council may refer the matter back to the Commission for further proceedings or for report and recommendation.

     • d. The Council may impose those conditions to the action it takes as it considers reasonable and necessary to protect the interests of the City.

• e. The decision of the Council on the modification or termination shall be final.

• (Ord. 1017, 2013)

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

• (Ord. 1017, 2013)

Development agreements approved by the Council shall be on file with the City Clerk. (Ord. 1017, 2013)

For newly annexed land comprising territory that was formerly unincorporated, any development agreement entered into by the County before the effective date of the annexation shall remain valid for the duration of the agreement in compliance with the provisions and limitations of Government Code Section 65865.3(a) . (Ord. 1017, 2013)