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Chapter 18.120
DEVELOPMENT AGREEMENTS

Sections:

18.120.010    Purpose.

18.120.020    Application requirements.

18.120.030    Contents of development agreement.

18.120.040    Review process.

18.120.050    Department review and recommendation – Notice and public hearing.

18.120.060    Planning commission action.

18.120.070    City council action.

18.120.080    Annual review.

18.120.090    Amendment or cancellation.

18.120.100    Administration.

18.120.010 Purpose.

In order to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic cost of development, the Legislature of the State of California adopted provisions in the Government Code authorizing local governments to enter into development agreements with applicants for development projects. The objective of such an agreement is to provide for vesting of certain development rights in the property by granting assurances that, upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules and regulations, subject to the conditions of approval. The purpose of this chapter is to establish procedures and requirements for consideration of development agreements by the city consistent with state law. (Reference: Govt. Code §§ 65864 – 65869.5) (Ord. 710 § 35-33.1, 1996; 1991 code § 35-33.1)

18.120.020 Application requirements.

An applicant may propose that the city consider entering into a development agreement by filing a complete application with the public works and community development department accompanied by plans and materials in the form approved by the department. (Ord. 710 § 35-33.2, 1996; 1991 code § 35-33.2)

18.120.030 Contents of development agreement.

A. A development agreement shall specify all of the following: the duration of the agreement; the permitted uses of the property, including mix and type of uses; the density or intensity of use; the maximum height and size of proposed buildings; and provisions for reservation or dedication of land for public purposes.

B. A development agreement may:

1. Include conditions, terms, restrictions, and requirements for subsequent discretionary actions; provided, that such conditions, terms, restrictions, and requirements shall not prevent development of the land for the uses and to the density or intensity of development set forth in the agreement;

2. Provide that construction shall be commenced within a specified time and that the project or any phase be completed within a specified time;

3. Include terms and conditions relating to applicant financing of necessary public facilities and subsequent reimbursement over time;

4. Provide that a particular rule, regulation or policy will apply as it exists at the time of building permit issuance (for example, building code standards and development processing and impact fees);

5. Provide for specific penalties for failure to perform.

C. Unless otherwise provided by the development agreement, the rules, regulations, and official policies applicable to development of the property subject to a development agreement shall be those rules, regulations, and official policies in effect at the time of agreement execution. In subsequent actions applicable to the project, the city may apply new rules, regulations, and policies which do not conflict with those rules, regulations, and policies in effect at the time of the agreement, and may deny or conditionally approve the project on that basis. No rights shall be deemed to vest in the applicant or any other person under any development agreement, except as set forth in the development agreement.

D. Development agreements shall be limited to a period not to exceed a maximum of 10 years from the effective date of the adopting ordinance. (Ord. 710 § 35-33.4, 1996; 1991 code § 35-33.4)

18.120.040 Review process.

City staff shall not begin to negotiate with the applicant until the city council has so authorized staff, following completion of the review process as set forth below.

A. The zoning administrator shall review the proposal, consult with all city departments, and obtain such additional information from the applicant as may be deemed necessary by the zoning administrator. Within 45 calendar days of receipt of the application, the zoning administrator shall prepare a report to the city council containing the zoning administrator’s recommendation. The recommendation shall consist of the following:

1. A statement of potential public benefits and costs accruing to the city if the agreement were entered into;

2. A recommendation as to whether the city should negotiate further with the applicant;

3. A statement whether the application meets the minimum statutory requirements for a development agreement, as set forth in PHMC § 18.120.030.A;

4. A statement of issues for further research and investigation, and issues that should be addressed in the development agreement;

5. A statement of those documents, applications and other items required by the zoning administrator in order to further process the application or negotiate with the applicant.

B. Upon completion of the report, the matter shall be set for a public hearing before the city council at its next regularly scheduled meeting. Notice of the hearing shall be given in accordance with PHMC Chapter 18.80. The city council shall consider at the hearing whether to authorize city staff to negotiate with the applicant concerning the development agreement.

C. Upon the close of the hearing, the city council shall by resolution either:

1. Direct city staff to continue negotiating with the applicant, and to prepare a proposed development agreement for planning commission review; or

2. Determine that no further negotiations are desirable and reject the application. (Ord. 710 § 35-33.6, 1996; 1991 code § 35-33.6)

18.120.050 Department review and recommendation – Notice and public hearing.

A. Department review and recommendation. If the city council has directed the staff to proceed with the application under PHMC § 18.120.030, the department shall, at the applicant’s expense, undertake environmental review in accord with city guidelines for CEQA implementation (unless the project is categorically exempt). Upon completion of the review, the department shall transmit the application, together with its recommendations and appropriate environmental review documents, to the planning commission.

B. Notice and public hearing. Within six months following council authorization to staff to negotiate with the applicant, a public hearing shall be scheduled before the planning commission. The city and the applicant may agree to a later date. Notice of intention to consider the application shall be given as provided in PHMC Chapter 18.80. If the application is being processed together with a development project, notice of the public hearing shall also be given as required for consideration of the development project. (Ord. 710 § 35-33.8, 1996; 1991 code § 35-33.8)

18.120.060 Planning commission action.

After the public hearing is closed, the commission shall recommend either approval, modification, or disapproval of the proposed development agreement. The commission shall transmit its recommendation to the city council within 30 calendar days.

In making its recommendation, the commission shall consider whether the proposal conforms to the general plan and any applicable specific plan, and whether the proposal contains the minimum statutory requirements of Government Code section 65865.2, as set forth in PHMC § 18.120.030.A. (Ord. 710 § 35-33.10, 1996; 1991 code § 35-33.10)

18.120.070 City council action.

A. Upon receipt of the application, the results of the environmental review, and the recommendations of the department and the planning commission, the city council shall schedule a public hearing on the application. Notice of intention to consider the application shall be given in the manner set forth in PHMC Chapter 18.80.

B. If the application is being processed together with the development project, the public hearing on the application may be held concurrently with the hearing on the project.

C. After the public hearing is closed, the city council shall approve, modify, or disapprove the proposed development agreement. An agreement shall not be approved unless the city council finds that:

1. The agreement is consistent with the general plan and with any specific plan;

2. The agreement is consistent with this title, the city code, and the State Subdivision Map Act;

3. The 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;

4. The city council has considered the effect of the development agreement on the housing needs of the region in which the city is situated and has balanced these needs against the public service needs of its residents and available fiscal and environmental resources;

5. The city council has considered the statement of potential public benefits and costs accruing to the city.

Any approval of a proposed agreement shall be made by ordinance, which shall authorize the city manager to sign the agreement on behalf of the city, and shall become effective 30 calendar days after adoption, unless a referendum is filed within that time.

D. No agreement shall be signed by the city manager until it has been duly signed by the applicant and owner, if the applicant is not the owner. If the applicant has not signed and returned the approved agreement to the city manager for signing within 30 calendar days of council approval, the application is deemed withdrawn by applicant.

E. Within 10 calendar days after the city manager signs a development agreement and the ordinance becomes effective, the city clerk shall cause a copy to be recorded in the office of the county recorder.

F. Following denial of an application for a development agreement, no new application for the same, or substantially the same, development agreement shall be accepted within one year of the date of denial, unless the denial was made without prejudice. (Ord. 710 § 35-33.12, 1996; 1991 code § 35-33.12)

18.120.080 Annual review.

A. A development agreement shall be reviewed at least once every 12 months, or more often at the request of the city council, zoning administrator or applicant.

B. The purpose of the review is to inquire into the good faith compliance of the applicant with the terms of the agreement and for any other purpose specified in the agreement.

C. Before each review, the public works and community development department shall prepare a report on all development that has occurred under the agreement since the last review and any other matters the department wishes to bring to the council’s attention.

D. If the department review determines that all terms of the agreement have been met, and the council concurs, no further review is required.

E. If, as the result of the review, the city council finds and determines that the applicant or successor in interest has not complied in good faith with the terms of the agreement, the city may terminate or modify the agreement or impose penalties as provided in the agreement. (Reference: Govt. Code § 65865.1.)

F. If the department recommends modification or termination of the agreement, a public hearing shall be scheduled before the planning commission on the agreement. Notice of intention to modify or terminate the agreement shall be given in the same manner as the initial consideration under PHMC Chapter 18.80. At the hearing, the applicant has the burden of demonstrating good faith compliance with the terms of the agreement. After closing the public hearing, the planning commission shall determine whether to recommend that the agreement be terminated, modified, or confirmed as is.

G. Upon receipt of the zoning administrator’s or planning commission’s recommendation, the city council shall schedule a public hearing. Notice of intention to modify or terminate the agreement shall be given in the same manner as the initial consideration under PHMC Chapter 18.80. If, after the public hearing is closed, 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 of the agreement, the city council may modify or terminate the agreement. Any modification or termination must be done by ordinance, and is subject to Government Code section 65867.5. (Ord. 710 § 35-33.14, 1996; 1991 code § 35-33.14)

18.120.090 Amendment or cancellation.

The agreement may be amended or canceled: (A) to comply with later enacted federal or state laws or regulations, under Government Code section 65869.5; or (B) by mutual consent, under Government Code section 65868; or (C) following city’s periodic review, under Government Code section 65865.1. Notice of intention to take any such action shall be given in the manner provided for the initial consideration, under PHMC Chapter 18.80, except that the parties may set forth an alternative procedure in the agreement for processing insubstantial amendments. Any significant amendment is subject to Government Code section 65867.5, which provides that the decision be adopted by ordinance. (Ord. 710 § 35-33.16, 1996; 1991 code § 35-33.16)

18.120.100 Administration.

The zoning administrator shall prepare and adopt such application forms, checklists, and other documents as considered necessary to implement these procedures and requirements. (Ord. 710 § 35-33.18, 1996; 1991 code § 35-33.18)