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ORDINANCE NO. 1134 (1989 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO ESTABLISHING
PROCEDURES AND REQUIREMENTS FOR DEVELOPMENT AGREEMENTS
WHEREAS, State law allows cities and counties to establish procedures and requirements
for the consideration of development agreements; and
WHEREAS, such procedures and requirements, once established by law, allow cities and
counties to enter into a development agreement with any person having a legal or
equitable interest in real property; and
WHEREAS, the Council finds that such development agreements serve a public purpose by
providing additional certainty for all parties during the development process, reducing
unnecessary costs and time delays, encouraging investment in and a committment to
comprehensive planning, and by utilizing resources efficiently while reducing public
costs; and
WHEREAS, development agreements provide assurances to applicants that upon approval of a
project, the applicant may proceed with the development in accordance with existing
policies, standards, conditions, and regulations in effect at the time of execution of
the agreement; and
WHEREAS, the Council also finds that such development agreements provide a tool to secure
necessary public improvements, landscaping, open space or other public amenities, and to
establish the terms and conditions for extending urban services prior to annexation; and
WHEREAS, the proposed ordinance has been evaluated in accordance with the California
Environmental Quality Act and the City's Environmental Guidelines, and a negative
declaration has been granted;
NOW, THEREFORE, BE ORDAINED by the City Council of the City of San Luis Obispo as
follows:
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Page 2
SECTION 1. Chapter 17.94 is hereby added to the San Luis Obispo Municipal Code to
read as follows:
Chapter 17.94 -- DEVELOPMENT AGREEMENTS
Sections:
17.94.010
Purpose and Scope.
17.94.020
Authority.
17.94.030
Initiation of Hearings.
17.94.040
Applications - Legal Interest.
17.94.050
Fees.
17.94.060 Pre - application Review.
17.94.070 Applications - Contents.
17.94.080 Public Notice.
17.94.090 Failure to Receive Notice.
17.94.100 Planning Commission Hearing and Recommendation.
17.94.110 City Council Hearing.
17.94.120 City Council Action.
17.94.130 Development Agreement - Contents.
17.94.140 Development Agreement - Adoption of Ordinance - Execution of Contract.
17.94.150 Recordation of Executed Agreement.
17.94.160 Ordinance, Regulations and Requirements Applicable to Development.
17.94.170 Subsequently Enacted State and Federal Laws.
17.94.180 Enforcement - Continuing Validity.
17.94.190 Amendment - Time Extension - Cancellation.
17.94.200 Review for Compliance - Director's Authority.
17.94.210 Violation of Agreement - Council Review and Action.
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Page 3
17.94.220
Modification or Termination for Violations.
17.94.230
Consequences of Termination.
17.94.240
Irregularity in Proceedings.
17.94.250
Coordination of Approvals.
17.94.260
(left blank)
DRAFT ORDINANCE
17.94.010 Purpose and Scope. Development agreements specify the rights and
responsibilities of the City and developers. Used in conjunction with subdivision
approval, annexation, rezoning, or architectural approval, development agreements
establish the terms and conditions under which development projects may proceed.
Development agreements are best used for large, complex, or phased projects which require
extended construction time, and which involve numerous public improvements such as
streets, utilities, flood improvements, schools, parks and open space and other
improvements of community -wide benefit. Under a development agreement, projects may
proceed under the rules, standards, policies, and regulations in effect at the time of
original project approval.
17.94.020 Authority. This Chapter establishes procedures and requirements for
development agreements for the purposes specified in and as authorized by Article 2.5,
Chapter 4, Title 7 of the Government Code Section 65864 et. sea. The Planning Commission
may recommend and the City Council may enter into a development agreement for the
development of real property with any person having a legal or equitable interest in such
property, as provided below. At its sole discretion, the Council may, but is not
required to, approve a development agreement where a clear public benefit or public
purpose can be demonstrated.
Development Agreement
Page 4
17.94.030 Initiation of Hearings. Hearings on a development agreement may be
initiated: A) upon the filing of an application as provided below; or B) by the
Council by a simple majority vote.
17.94.040 Applications - Legal Interest. Any person having a legal or equitable
interest in real property or such other interest as specified in subsection 17.94.070
A.3(b). may apply for a development agreement, except that a person may not file, and the
Director shall not accept an application which is the same as, or substantially the same
as, an application which was denied within the previous year, unless the application is
initiated by the Council.
17.94.050 Fees. The Council shall establish, and from time to time may amend, a
schedule of fees to cover the City's costs of processing applications for development
agreements.
17.94.060 Pre - Application Review. Before submitting an application and support
materials, applicants shall discuss the proposal with the Community Development
Director. At such review, the applicant should present a preliminary site plan and show
basic features of the proposed project, including its public purposes and /or benefits.
For large or complex projects, the applicant may request Council review of the
preliminary concept. Such a review shall be at the Council's sole discretion, and would
allow Council to review and comment on a proposal early in the review process.
17.94.070 Application - Contents.
A. A Development agreement application shall include the following information:
Y'
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1. A Planning Application and processing fee.
2. The names and addresses of the applicant and of all persons having a legal or
equitable interest in all or a part of the property proposed to be used;
3. Evidence that the applicant:
a. Has a legal or equitable interest in the property involved; or
b. Has written permission from a person having a legal or equitable interest
to make such application;
4. Location of subject property by address and vicinity map.
5. Legal description of the property, including a statement of total area involved;
6. Plan showing the location of all property included in the request for action,
existing and proposed land uses, property lines and dimensions, topography,
significant natural features, setbacks, the location of all highways, street,
alleys and the location and dimensions of all lots or parcels of land within a
distance of 300 feet from the exterior boundaries of the property described in
the application;
7. Mailing list including addresses of all tenants occupying the subject property
and properties within 300 feet from the subject property boundaries; and a
mailing list of owners of adjacent properties within 300 feet from the subject
property boundaries, as shown on the County Assessor's latest available
assessment roll;
8. The proposed development agreement, together with all explanatory text, plans,
maps, drawings, pictures and other information as may be required to evaluate
such proposal, and as further described in Section 17.94.130;
9. Such other information as the Director may require.
t
Development Agreement
Page 6
B. The Director may waive the filing of one or more of the above items where the
required information is filed with an application for a rezoning, use permit,
variance, subdivision approval, or other development entitlement to be considered
concurrently with the development agreement.
1. The Director may reject any application that does not supply the required
information, or may reject incomplete applications.
2. The accurancy of all information, maps and lists submitted shall be the
responsibility of the applicant.
17.94.080 Public Notice.
A. Director Action. When the Director certifies that the application is complete, the
item shall be scheduled for Commission hearing; and the Director shall give notice of
the public hearing, as provided below.
B. Manner of Giving Public Notice Public Notice requirements shall be met by:
1. Mailing or delivery to the applicant and to all owners of real property within
300 feet of the property included in the development agreement, and
2. Mailing or delivery to all tenants of property within 300 feet of the property
included in the development agreement; and
3. Mailing to any person who has filed a written request for such notice with the
Planning Director;
4. Publication at least once in a newspaper of general circulation published and
circulated in the City. Said notice shall be published at least 10 days before
the hearing date, and shall include: a) The time and place of the public
hearing, b) A general explanation of the development agreement including the
property location, proposed land uses, and applicant's name.
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17.94.90 Failure to Receive Notice. The failure to receive notice by any person
entitled thereto by law or this Chapter does not affect the authority of the City to
enter into a development agreement.
17.94.100 Planning Commission Hearing and Recommendation. The Commission shall
consider the proposed development agreement and shall make its recommendation to the
Council. The recommendation shall include whether or not the proposed development
agreement meets the following findings:
A. The proposed development agreement is consistent with the general plan and any
applicable specific plan; and
B. The proposed development agreement complies with zoning, subdivision and other
applicable ordinances and regulations; and
C. The proposed development agreement promotes the general welfare, allows more
comprehensive land -use planning, and provides substantial public benefits or
necessary public improvements, making it in the city's interest to enter into the
development agreement with the applicant; and
D. The proposed project and development agreement:
1. Will not adversely affect the health, safety, or welfare of persons living or
working in the surrounding area; or
2. Will be appropriate at the proposed location and will be compatible with
adjacent land uses; or
I Will not have a significant adverse impact on the environment.
17.94.110 City Council Hearing. After the recommendation of the Planning
Commission, the Director shall give notice of a public hearing before the City Council in
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the manner provided for in Section 17.94.080.
17.94.120 City Council Action.
A. Referral. After it completes the public hearing and considers the Commission's
recommendation, Council may approve, conditionally approve, modify or disapprove the
proposed development agreement. The Council may refer matters not previously
considered by the Commission during its hearing back to the Commission for review and
recommendation.
B. Approval. The development agreement may be approved if the City Council makes the
findings for approval listed in Section 17.94.100 above.
17.94.130 Development Agreement - Contents.
A. Development agreements shall include the following:
1. The duration of the agreement, including a specified termination date if
appropriate; and
2. The uses to be permitted on the property; and
3. The density or intensity of use permitted; and
4. The maximum height, size and location of buildings permitted; and
5. The reservation or dedication of land for public purposes to be secured,
including, but not limited to rights -of -way, open space preservation, and public
access easements.
6. Proposed exceptions from zoning regulations or other development standard, and
findings where required.
7. The time schedule established for periodic review as required by Section
17.94.200.
Development Agreement
Page 9
B. Development agreements may also include additional terms, conditions, and
restrictions in addition to those provided above.
These additional terms may include, but are not limited to:
A. Development schedules providing that construction of the proposed development as
a total project or in phases be initiated and /or completed within specified time
periods;
B. The construction of public facilities required in conjunction with such
development, including but not limited to vehicular and pedestrian
rights -of -way, public art and other landscape amenities, drainage and
flood - control facilities, parks and other recreational facilities, and sewers
and sewage treatment facilities;
C. Method of financing such improvements and where applicable, reimbursement to
developer or city.
D. Prohibition of one or more uses normally listed as permitted, accessory, subject
to director's review or subject to use permit in the zone normally allowed by
right;
E. Limitations on future development or special terms or conditions under which
subsequent development approvals not included in the agreement may occur;
F. The requirement of a faithful performance bond where deemed necessary to and in
an amount deemed sufficient to guarantee the faithful performance of specified
terms, conditions, restrictions and /or requirements of the agreement.
In lieu of a bond, the applicant may deposit with the City Clerk certificates of
deposit or other surety acceptable to the Finance Director.
G. Specific design criteria for the exteriors of buildings and other structures,
including colors and materials, landscaping and signs;
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H. Special yards, open spaces, trails, staging areas, buffer areas, fences and
walls, public art, landscaping and parking facilities, including vehicular and
pedestrian ingress and egress;
I. Performance Standards regulating such items as noise, vibration, smoke, dust,
dirt, odors, gases, garbage, heat and the prevention of glare or direct
illumination of adjacent properties;
J. Limitations on operating hours and other characteristics of operation which
Council determines could adversely affect the reasonable use and enjoyment of
surrounding properties.
17.94.140 Development Agreement - Adoption by Ordinance - Execution of Contract.
A. The development agreement shall be approved by the adoption of an ordinance.
Upon the adoption of the ordinance, the City shall enter into the development
agreement by the execution thereof by the City Administrative Officer.
B. No ordinance shall be finally adopted and the City Administrative Officer shall
not execute a development agreement until it has been executed by the applicant
and all other parties to the agreement. If the applicant has not executed the
agreement or agreement as modified by the City Council, and returned said
executed agreement to the City Clerk within 60 days following Council approval,
the approval shall be deemed withdrawn, and the Council shall not finally adopt
said ordinance nor shall the City Administrative Officer execute said agreement.
C. Such 60 -day time period may be extended upon approval of the Council.
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17.94.150 Recordation of Executed Agreement. Following the execution of a
development agreement by the City Administrative Officer, the City Clerk shall record the
executed agreement with the County Recorder.
17.94.160 Ordinances, Regulations and Requirements Applicable to Development.
Development projects covered by a development agreement shall comply with the General
Plan, Zoning and Subdivision Regulations, and other applicable codes, ordinances, rules,
regulations and official policies in effect on the date of execution of the development
agreement by the City Administrative Officer; provided, however, that a development
agreement shall not:
A. Be construed to prevent the application of later adopted or amended ordinances,
rules, regulations and policies which do not conflict with such existing
ordinances, rules, regulations and policies under the development agreement; or
B. Prevent the approval, conditional approval, or denial of subsequent development
applications pursuant to such existing or later adopted or amended ordinances,
rules, regulations and policies.
C. Preclude the City from adopting and implementing emergency measures regarding
water or sewer deficiencies when the Council determines that such action is
necessary to protect public health and safety. If such action becomes
necessary, Council reserves the right to suspend water or sewer service on an
equitable basis until such deficiencies are corrected.
17.94.170 Subsequently Enacted State and Federal Laws. In the event that State or
Federal laws or regulations enacted after execution of a development agreement prevent or
preclude compliance with one or more provisions of such agreement, the provisions of such
46 i
Development Agreement
Page 12
agreement shall be deemed modified or suspended to the extent necessary to comply with
such laws or regulations.
17.94.180 Enforcement - Continuing Validity.
A. Unless and until amended or cancelled in whole or in part as provided in
Sections 17.94.190 or 17.94.210, a development agreement shall be enforceable by
any party to the agreement, regardless of any change in regulations which alters
or amends the regulations applicable to the project covered by a development
agreement, except as specified in Sections 17.94.160 and 17.94.170.
B. The development agreement shall be binding upon, and the benefits of the
agreement shall inure to, all successors in interest to the parties to the
agreement.
17.94.190 Amendment - Time Extension - Cancellation. A development agreement may be
f
amended, extended, or cancelled in whole or in part, by mutual consent of all parties to
the agreement or their successors in interest. Procedures for amendment, time
extensions, or cancellation of the development agreement by mutual consent shall be the
same as provided for initiation and consideration of such agreement.
17.94.200 Review for Compliance - Director's Authority.
A. Every development agreement entered into by the City Council shall provide for
Director review of compliance with the development agreement at time intervals
as specified in the agreement, but not less than once every 12 months.
B. The Director shall determine whether the applicant or his successor in interest
has or has not complied with the agreement. If the Director determines that the
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Page 13
terms or conditions of the agreement are not being met, all parties to the
agreement shall be notified by registered or certified mail, also indicating
that failure to comply within a period specified may result in legal action to
enforce compliance, termination or modification of the agreement.
C. It is the duty of the applicant or his successor in interest to provide evidence
of good -faith compliance with the agreement to the Director's satisfaction at
the time of the Director's review. Refusal by the applicant or his successor in
interest to provide the required information shall be deemed prima facie
evidence of violation of such agreement.
D. If, at the end of the time period established by the Director, the applicant or
his successor in interest has failed to comply with the terms of the agreement
or has not submitted evidence substantiating such compliance, the Director shall
notify the City Council of his findings recommending such action as he deems
appropriate, including legal action to enforce compliance or to terminate or
modify the agreement.
17.94.210 Violation of Agreement - Council Review and Action.
A. When the Director notifies the Council that a development agreement is being
violated, a public hearing shall be scheduled before the Council to consider the
matter. Procedures for conduct of such hearing shall be the same as provided
for initiation and consideration of a development agreement.
B. If the Council determines that the applicant or his successor in interest is in
violation of a development agreement, it may take one of the following actions:
Schedule the matter for Council hearing for modification or possible
termination of the agreement. Procedures for hearing notice shall be the
Development Agreement
Page 14
same as provided in Section 17.94.080.
2. Continue the matter for further consideration.
17.94.220 Modification or Termination for Violations. After the hearing required by
17.94.210.A., the Council may terminate or modify the agreement upon finding that:
A. 1. Terms, conditions, and obligations of any party to the development agreement
have not been met; or
2. The scope, design, intensity, or environmental effects of a project were
represented inaccurately; or
3. That the project has been, or is being built, operated, or used in a manner that
differs significantly from approved plans, permits, or other entitlements; or
4. Parties to the agreement have engaged in unlawful activity, or have used bad
faith in the performance or the failure to perform their obligations under the
agreement.
B. Modifications. Such remedial action may include, but is not limited to changes to
project design or uses, operating characteristics, or necessary on- or offsite
improvements which are determined to be reasonably necessary to protect public
health, safety or welfare, an to correct problems caused by or related to
non - compliance with the terms of this agreement.
17.94.230 Consequences of Termination. Upon termination of the Development
Agreement, the Owner shall otherwise comply with City codes, regulations, development
standards, and other applicable laws in effect at time of termination of the agreement.
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Page 15
17.74.240 Irregularity in Proceedings. No action, inaction, or recommendation
regarding the proposed development agreement shall be held void or invalid or be set
aside by a court by reason of any error, irregularity, informality, neglect or omission
as to any matter pertaining to the application, notice, finding, record, hearing, report,
recommendation, or any other matters of procedure whatsoever, unless after an examination
of the entire record, the court is the opinion that the error was prejudicial and that a
different result would have been probable if the error had not occurred or existed.
17.74.250 Coordination of Approvals.
A. Public Hearings. Where an application for a development agreement is
concurrently filed with an application for a zone change, use permit, variance,
minor subdivision or tract map, or annexation and the applications may be
feasibly processed together, public hearings may be concurrently held.
B. Zoninp, or Subdivision Exceptions Yards, building height, coverage, parking
requirements, density, and other design standards may be modified or relaxed
during consideration of a development agreement. The Council may modify or
relax development or subdivision standards when: 1) Such modification or
relaxation is otherwise allowed by the Municipal Code; 2) Council makes
findings as required by zoning and subdivision regulations, and 3) Council
determines that such modification or relaxation of standards is consistent with
the General Plan, and reasonably necessary to allow the safe, efficient, or
attractive development of the subject property.
17.74.260 (left blank)
Development Agreement
Page 16
SECTION 2. After City Council review and consideration, the Community Development
Director's action to grant a negative declaration pursuant to the City Environmental
Procedures and California Environmental Quality Act is hereby affirmed.
SECTION 3. Any provision of the San Luis Obispo Municipal Code or Appendices thereto
inconsistent with the provisions of this ordinance, to the extent of such inconsistencies
and no further, is hereby repealed or modified to that extent necessary to affect the
provisions of this ordinance. This ordinance does not alter or change the powers and
duties of any other Board or Commission of the City.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this ordinance
is for any reason held to be invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining
portions of the ordinance. The City Council hereby declares that it would have passed
this ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the
ordinance would be subsequently declared invalid or unconstitutional.
SECTION 5. A summary of this ordinance, approved by the City Attorney, together with
the eyes and noes, shall be published at least five (5) days prior to its final passage
in the Telegram- Tribune, a newspaper published and circulated in said city, and the same
shall go into effect at the expiration of thirty (30) days after its said final passage.
A copy of the full text of this ordinance shall be on file in the office of the City
Clerk on and after the date following introduction and passage to print and shall be
available to any interested member of the public.
Development Agreement
Page 17
7th
INTRODUCED by the Council of the City of San Luis Obispo, at its meeting held on the
day of March 1989', on motion of Councilmember Settle
seconded by _Vice-Mayor Pinard, and on the following roll call vote:
AYES: Councilmember Settle, Vice -Mayor Pinard, Councilmember Reiss and Mayor Dunin
NOES: None
ABSENT: Councilmember Rappa
ezo
Mayor Ron Dunin
ATTEST:
Cit Clerk Pam V eb
APPROVED:
II� 0�t=
City Administrative Officer
A�r___7 �
City Att ney
Community Development Director
jh #5 /ordagre
ORDINANCE NO. 1134
(196� Series)
FINALLY PASSED this 2 Is t day of March 9
19 89 on motion of C;ouncilmember Rags a , seconded by
Vice -Mayor Pinard and on the following roll call
vote:
AYES: Councilmembers Rappa, Pinard and Mayor Dunin
NOES: None
ABSENT: Councilmembers Reiss and Settle
Mayor Ron Dunin
ATTEST:
Cit 'Clerk Pa' oges
',� � � li
,3 �,