HomeMy WebLinkAbout05-16-2017 Item 05 Authorization to enter into development agreement discussions with Avila Ranch, LLC Meeting Date: 5/16/2017
FROM: Derek Johnson, Assistant City Manager
Prepared by: Lee Johnson Economic Development Manager
SUBJECT: AUTHORIZATION TO ENTER INTO DEVELOPMENT AGREEMENT
DISCUSSIONS WITH AVILA RANCH, LLC
RECOMMENDATION
1. Authorize staff to initiate discussions with Avila Ranch, LLC for a Development Agreement;
and
2. Authorize the City Manager to negotiate and execute a Third Party Reimbursement
Agreement with Avila Ranch, LLC, as necessary, requiring Avila Ranch, LLC to reimburse
the City for the costs of any outside legal or technical consultants the City may require to
assist with the negotiation or review of the Avila Ranch application for a Development
Agreement.
DISCUSSION
Background
Avila Ranch, LLC, has submitted a development plan proposal for a new, primarily residential
development with up to 720 dwelling units on a 150-acre site north of Buckley Road, located
within the Airport Area Specific Plan (AASP) boundaries (Attachment 1). The project also
includes 15,000 square feet of neighborhood-serving retail and office uses next to a
neighborhood park, as well as the preservation of agricultural uses and open space. The
development plan contains the specific development proposal for the site, including a land use
framework, design guidelines and concepts, circulation plan, and infrastructure plan. The project
as proposed is envisioned to implement the policies and development parameters as articulated in
the recent Land Use and Circulation Elements (LUCE) update, other elements of the General
Plan, the AASP, and the City’s Community Design Guidelines.
Request for City Consideration of Development Agreement
Avila Ranch, LLC, has submitted a formal Development Agreement (DA) application. A DA
establishes certain development rights, but also commits the developer to construct or pay for
certain amenities for the City’s public benefit that are greater than the infrastructure and
mitigations that are required to facilitate the development. These are also known as “public
benefits” and can include but not be limited to public infrastructure and services such as road and
circulation improvements, bike facilities, endowments to support public services such as open
space, and/or other items of value.
There are significant infrastructure development needs associated with the development of the
Avila Ranch project. The area’s major infrastructure needs are likely to exceed available
resources and thus a DA is a mechanism to establish a reimbursement and fair share agreement .
Avila Ranch, LLC has requested the City consid er a DA to facilitate orderly development and
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implement necessary infrastructure while attaining specific public benefits that are to be
negotiated.
Pursuant to California Government Code, Section 65865, cities are expressly authorized to enter
into DA’s and may adopt procedures by which to do so. The City has adopted such procedures,
which are set forth in Chapter 17.94 of the City’s Municipal Code. Per Section 17.94.060 of the
Municipal Code, staff brings forward the conceptual information regarding a possible DA that
has been provided by Avila Ranch, LLC. A City’s decision to enter into a DA is a legislative act
and agreements are subject to environmental review and General Plan consistency findings.
Thus, the requested action to authorize staff to initiate discussions is a very early step in the
process and the fully developed agreement will undergo comprehensive planning review, and a
Planning Commission recommendation, prior to returning to Council for consideration of a final
agreement.
FISCAL IMPACT
There are no direct fiscal impacts of Council’s action to authorize staff to begin discussions with
Avila Ranch, LLC on a DA. The City will be reimbursed at full cost recovery for staff time and
materials associated with City review of a DA application.
ALTERNATIVES
1. Direct staff not to enter into discussions with Avila Ranch, LLC. Council could decline to
authorize staff to negotiate a DA based on Avila Ranch’s application. This alternative is not
recommended as entering negotiations does not represent any commitment by the City to
approve a DA. Moreover, a DA is a mechanism to memorialize commitments of the City and
the Developer and for the City to obtain extraordinary public benefits.
Attachments:
a - Vicinity Map
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Public Hearing Draft Avila Ranch Development Plan Page 12
Revised: February 22, 2017
Figure 3 Vicinity and Site
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