HomeMy WebLinkAbout07-18-2017 Item 15 - Ordinance Intro - Review of Amendments to Muni Code Title 17: Zoning Regulations associated with Development Agreements with an exemption from Environmental Review Meeting Date: 7/18/2017
FROM: Michael Codron, Community Development Director
Prepared By: Doug Davidson, Deputy Community Development Director
SUBJECT: REVIEW OF AMENDMENTS TO MUNICIPAL CODE TITLE 17: ZONING
REGULATIONS, ASSOCIATED WITH DEVELOPMENT AGREEMENTS
WITH AN EXEMPTION FROM ENVIRONMENTAL REVIEW
RECOMMENDATION
Introduce an ordinance to amend Title 17 (Zoning Regulations) of the Municipal Code
(Attachment B) with an exemption from environmental review.
BACKGROUND
A study session was held for the Council on March 21, 2017 to provide an overview of
Development Agreements in the context of state law and Municipal Code findings required by
the City of San Luis Obispo (see Attachment C for study session staff report). This study session
was scheduled in advance of the San Luis Ranch and Avila Ranch projects coming forward that
have both requested a Development Agreement to memorialize the commitments of both the
developer and the City. At the study session, the Council directed staff to bring back a minor
amendment to the Development Agreements Chapter of the Zoning Regulations to enable the
potential for Development Agreements for these larger, complex projects.
A Development Agreement is a mechanism to provide certainty in the development process and
a means by which developers can protect their investment, a municipality can provide certainty
about public improvements and financing and address other issues that are outside the regulatory
authority of a City. A Development Agreement is also a contract between a municipality and a
property owner/developer, which provides the developer with vested rights by freezing the
existing zoning regulations and other issues applicable to a property in exchange for public
benefits.
A Development Agreement is a contract between a developer and a City (or County) in which
the city provides the developer with vested development rights for a defined period. In exchange
for these extra benefits, the developer is required to provide “extraordinary” public or
“community” benefits that exceed what the City could otherwise constitutionally require through
the normal process of exercising its land use regulation authority (these are “police powers”
delegated to local government by the state) in establishing conditions of approval for a project.
In general, the evolution of the Development Agreement as a land use tool is a consequence of a
larger tension between increasingly complicated land use regulations, high degree of public
engagement, and developers’ and a community’s desire for certainty.
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DISCUSSION
The City adopted Municipal Code Chapter 17.94 in 1989 to establish procedures and
requirements for the City’s processing and administration of development. This chapter in the
City’s Municipal Code supplements the framework set forth in the State Government Code
which authorizes the use of Development Agreements as a planning entitlement tool.
The approval process for Development Agreements requires the Planning Commission to make a
recommendation to the City Council, in consideration of the following findings (17.94.100):
A. The proposed development agreement is consistent with the general plan and any
applicable specific plan;
B. The proposed development agreement complies with zoning, subdivision and other
applicable ordinances and regulations;
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;
2. Will be appropriate at the proposed location and will be compatible with adjacent
land uses; or
3. Will not have a significant adverse impact on the environment.
(Ord. 1134 § 1 (part), 1989)
Under Section 17.94.120.B (City Council Approval), the City Council may approve a
Development Agreement by making the Findings in 17.94.100 above.
Final Environmental Impact Reports are being circulated for both the San Luis Ranch and Avila
Ranch developments. Both reports conclude that there will be significant adverse impacts on the
environment even after all reasonable and feasible mitigation measures are implemented. Thus,
under section D.3 above, both projects are not eligible for a Development Agreement.
These two pending projects both propose to use Development Agreement in order to coordinate
the extensive financing, phasing, and environmental mitigations associated with these projects.
The inability to use a Development Agreement would be a significant disadvantage for the City
in terms of addressing the complicated planning and financing issues that are associated with
projects, such as these.
At the study session in March, 2017, the Council directed staff to come back with revisions to
Chapter 17.94 to facilitate the use of Development Agreements for complex housing projects that
may have remaining adverse impacts; even after all reasonable and feasible mitigation measures
have been imposed. Staff is recommending deletion of 17.94.100.D.3:
3. Will not have a significant impact on the environment.
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This change will allow the CEQA process to govern the determination and mitigation of impacts
while enabling projects to use a Development Agreement with the City to provide certainty,
identify community benefits, and address financing issues. The finding in Section 17.94.100.D.3
is not necessary given the mandatory CEQA process to address and mitigate environmental
impacts.
It should also be noted that for large projects, such as San Luis Ranch and Avila Ranch, it is
almost automatic that a significant impact as defined by CEQA will result from project
construction or operation. Two examples of commonly triggered impacts by large projects are
air quality and noise, especially during project construction. San Luis Obispo is defined under
State standards as a “non-attainment” area because ozone and particulate matter exceed the State
thresholds for air quality. Since air quality is considered a significant impact un der existing
conditions, the impacts of a large projects are found to be inconsistent with local air quality
plans, and thus, a significant impact. Likewise, the grading and construction of large projects
typically exceed the local noise standards during the time the project is being constructed.
In the CEQA context, there are frequently projects which utilize a Development Agreement that
result in significant unavoidable impacts. In this case, the City Council is required to make a
Statement of Overriding Considerations to acknowledge those impacts and identify the
community benefits that outweigh the project’s environmental risks.
CONCURRENCES
Administration, Community Development, and Public Works Departments concur with the
recommended action on amending the Zoning Regulation chapter on Development Agreements.
ENVIRONMENTAL REVIEW
The activity is covered by the general rule that CEQA applies only to projects, which have the
potential for causing a significant effect on the environment. It can be seen with certainty that
there is no possibility that the activity in question may have a significant effect on the
environment. The activity is not subject to CEQA because the minor amendment to the Zoning
Regulations regarding Development Agreements will have no effect on the environment; any
actual Development Agreement will be subject to Chapter 17.94 of the Zoning Regulations and
CEQA. Any project associated with a Development Agreement will undergo environmental
review under CEQA. This exemption applies as projects will continue to be required to mitigate
impacts to the maximum extent feasible.
FISCAL IMPACT
The proposed minor modification to the Zoning Regulations regarding Development Agreements
will have no fiscal impact. The proposed Ordinance change will facilitate future Development
Agreements for projects. There are a variety of financial objectives related to including a
Development Agreement as part of the entitlement package for any project. A primary purpose
is to clearly articulate both the City and developer’s financial responsibilities and because a
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Development Agreement is voluntary in nature, it provides a mechanism for the City to require
improvements or other remuneration that is not otherwise required by policy, development
standard or any required mitigations.
Development Agreements should be evaluated within the City’s financial policies and
appreciation for comprehensive fiscal impacts. If infrastructure financing is sought as part of a
Development Agreement, comprehensive debt capacity should be viewed as shared resource by
all of the local governments serving the development area.
ALTERNATIVES
1. The City Council could decide not to amend the Zoning Regulations regarding
Development Agreements. This is not recommended because the Council previously
directed staff to revise the Ordinance to facilitate Development Agreements for large,
complex projects, such as San Luis Ranch and Avila Ranch.
2. The Council could continue the introduction of the proposed Zoning Regulations
amendments and provide direction to staff for research and revisions.
Attachments:
a - Legislative Draft of Zoning Regulations Amendments (Chapter 17.94)
b - Draft Ordinance
c – Staff Report – Study session on Development Agreements (3/21/17)
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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 Preapplication review.
17.94.070 Application—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 by ordinance—Execution of contract.
17.94.150 Recordation of executed agreement.
17.94.160 Ordinances, 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.
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.
17.94.010 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
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agreement, projects may proceed under the rules, standards, policies and regulations in
effect at the time of original project approval. (Ord. 1134 § 1 (part), 1989)
17.94.020 Authority.
This chapter establishes procedures and requirements for development agreements . The
purposes specified in and as authorized by Article 2.5, Chapter 4, Title 7 of the Government
Code, Sections 65864 et seq. 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. (Ord. 1134 § 1 (part), 1989)
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. (Ord. 1134
§ 1 (part), 1989)
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 (AX3)(b) of Section 17.94.070 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 applicatio n is initiated by the council. (Ord. 1134 § 1 (part),
1989)
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. (Ord. 1134 § 1 (part),
1989)
17.94.060 Preapplication 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 the council to review and comment on a proposal early in
the review process. (Ord. 1134 § 1 (part), 1989)
17.94.070 Application—Contents.
A. A development agreement application shall include the following information:
1. A planning application and processing fee;
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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 the subject property by address and vicinity map;
5. Legal description of the property, including a statement of total area involved;
6. A 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, streets, a lleys and the
location and dimensions of all lots or parcels of land within a distance of three
hundred feet from the exterior boundaries of the property described in the
application;
7. Mailing list including addresses of all tenants occupying the subjec t property and
properties within three hundred feet from the subject property boundaries; and a
mailing list of owners of adjacent properties within three hundred 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.
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 accuracy of all information, maps and lists submitted shall be the responsibility
of the applicant. (Ord. 1134 § 1 (part), 1989)
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.
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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 three
hundred feet of the property included in the development agreement;
2. Mailing or delivery to all tenants of property within three hundred feet of the property
included in the development agreement;
3. Mailing to any person who has filed a written request for such notice with the planning
director, and
4. Publication at least once in a newspaper of general circulation published and
circulated in the city. Said notice shall be published at least ten days before the
hearing date, and shall include: (a) the time and place of the public hearing, and (b)
a general explanation of the development agreement, including the property location,
proposed land uses and applicant’s name. (Ord. 1134 § 1 (part), 1989)
17.94.090 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. (Ord. 1134 § 1 (part),
1989)
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;
B. The proposed development agreement complies with zoning, subdivision and other
applicable ordinances and regulations;
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;
2. Will be appropriate at the proposed location and will be compatible with adjacent
land uses;; or
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3. Will not have a significant adverse impact on the environment. (Ord. 1134 § 1 (part),
1989)
17.94.110 City council hearing.
After the recommendation of the planning commission, the director shall give notice of a
public hearing the city council in the manner provided for in Section 17.94.080. (Ord. 1134
§ 1 (part), 1989)
17.94.120 City council action.
A. Referral. After it completes the public hearing and considers the commission’s
recommendation, the 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. (Ord. 1134 § 1 (part), 1989)
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;
2. The uses to be permitted on the property;
3. The density or intensity of use permitted;
4. The maximum height, size and location of buildings permitted;
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.
B. Development agreements may also include additional terms, conditions and restrictions
in addition to those listed in subsection A of this section. These additional terms may
include, but are not limited to:
1. 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;
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2. 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;
3. Method of financing such improvements and, where applicable, reimbursement to
developer or city,
4. 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;
5. Limitations on future development or special terms or conditions under which
subsequent development approvals not included in the agreement may occur,
6. 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
security acceptable to the finance director,
7. Specific design criteria for the exteriors of buildings and other structures, including
colors and materials, landscaping and signs;
8. Special yards, opens spaces, trails, staging areas, buffer areas, fences and walls,
public art, landscaping and parking facilities, including vehicular and pedestrian
ingress and egress;
9. Performance standards regulating such items as noise, vibration, smoke, dust, din,
odors, gases, garbage, heat and the prevention of glare or direct illumination of
adjacent properties;
10. Limitations on operating hours and other characteristics of operation which the
council determines could adversely affect the reasonable use and enjoyment of
surrounding properties. (Ord. 1134 § 1 (pan), 1989)
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 the executed agreement to the city clerk within
sixty days following council approval, the approval shall be deemed withdrawn, and the
council shall not finally adopt such ordinance, nor shall the city administrative officer
execute the agreement.
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C. Such sixty-day time period may be extended upon approval of the council. (Ord. 1134
§ 1 (part), 1989)
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. (Ord. 1134 § 1 (part),
1989)
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 ordina nces, rules,
regulations and policies under the development agreement;
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; or
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, the council reserves
the right to suspend water or sewer service on an equitable basis until such deficiencies
are corrected. (Ord. 1134 § 1 (part), 1989)
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 agreement shall be deemed modified or suspended to the extent
necessary to comply with such laws or regulations. (Ord. 1134 § 1 (part), 1989)
17.94.180 Enforcement—Continuing validity.
A. Unless and until amended or canceled 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 t o
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.
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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. (Ord. 1134 § 1
(part), 1989)
17.94.190 Amendment—Time extension—Cancellation.
A development agreement may be amended, extended or canceled 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.
(Ord. 1134 § 1 (part), 1989)
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 twelve months.
B. The director shall determine whether the applicant or his or her successor in interest has
or has not complied with the agreement. If the director determines that the 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 or her 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 or her successor in interest to provide
the required information shall be 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 or her
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 or her findings, recommending such action as he or she deems appropriate,
including legal action to enforce compliance or to terminate or modify the agreement.
(Ord. 1134 § 1 (part), 1989)
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 or her successor in interest is in violation
of a development agreement, it may take one of the following actions:
1. Schedule the matter for council hearing for modification or possible termination of
the agreement. Procedures for hearing notice shall be the same as provided in
Section 17.94.080; or
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2. Continue the matter for further consideration. (Ord. 1134 § 1 (part), 1989)
17.94.220 Modification or termination for violations.
After the hearing required by Section 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;
2. The scope, design, intensity or environmental effects of a project were represented
inaccurately;
3. 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 of 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 necessar y on-site or off-site improvements
which are determined to be reasonably necessary to protect public health, safety or
welfare, and to correct problems caused by or related to noncompliance with the terms
of the agreement. (Ord. 1134 § 1 (part), 1989)
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 the time of
termination of the agreement. (Ord. 1134 § 1 (part), 1989)
17.94.240 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 of the opinion that the error was
prejudicial and that a different result would have been probable if the error had not occurred
or existed. (Ord. 1134 § 1 (part), 1989)
17.94.250 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.
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B. Zoning 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 this municipal code, (2) the council makes findings as required by
zoning and subdivision regulations, and (3) the 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. (Ord. 1134
§ 1 (part), 1989)
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ORDINANCE NO. #### (2017 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING TITLE 17 (ZONING
REGULATIONS) OF THE MUNICIPAL CODE ASSOCIATED WITH
DEVELOPMENT AGREEMENTS WITH AN EXEMPTION FROM
ENVIRONMENTAL REVIEW (CODE-0107-2017)
WHEREAS, the City Council of the City of San Luis Obispo held a study session in the
Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on March 21, 2017,
(CODE-0107-2017) and directed staff to return with amendments to the City’s Municipal Code
related to Development Agreements; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on July 18,
2017, for the purpose of considering amendments to the Municipal Code relating to Development
Agreements (CODE-0107-2017); and
WHEREAS, the City Council finds that the proposed amendments are consistent with the
City’s General Plan, the purposes of the Zoning Regulations, and other applicable City ordinances;
and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law.
NOW THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Environmental Determination. The activity is covered by the general rule
that CEQA applies only to projects, which have the potential for causing a significant effect on the
environment. It can be seen with certainty that there is no possibility that the activity in question
may have a significant effect on the environment. The activity is not subject to CEQA because the
minor amendment to the Zoning Regulations regarding Development Agreements will have no
effect on the environment; any actual Development Agreement will be subject to Chapter 17.94 of
the Zoning Regulations and CEQA. Any project associated with a Development Agreement will
undergo environmental review under CEQA and will be required to mitigate any impacts to the
maximum extent feasible.
SECTION 2. Findings. Based upon all the evidence, the Council makes the following
findings:
1. The proposed amendments to the City’s Municipal Code regarding Development
Agreements are consistent with the General Plan and implement City goals and policies to
help facilitate large housing developments to increase the City’s housing supply.
2. The proposed amendments to the City’s Municipal Code will enable Development
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Agreements as a tool to coordinate the extensive financing, phasing, community benefits,
and mitigations measures of large, complex projects.
SECTION 3. Section 17.94.100.D of the San Luis Obispo Municipal Code is hereby
amended as follows:
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;
B. The proposed development agreement complies with zoning, subdivision and other applicable
ordinances and regulations;
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.
SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this ordinance, or any other provisions of the city' s rules and regulations. It
is the city' s express intent that each remaining portion would have been adopted irrespective of
the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared
invalid or unenforceable.
SECTION 5. A summary of this ordinance, approved by the City Attorney, together with
the ayes and noes shall be published at least five days prior to its final passage in the Tribune, a
newspaper published and circulated in said City, and the same shall go into effect at the expiration
of 30 days after its final passage. A copy of the full tex t 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 member of the public.
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Ordinance No. (2017 Series) Page 3
O _______
INTRODUCED on the 18th day of July, 2017, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the______ day of______, 2017, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Carrie Gallagher
City Clerk
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Meeting Date: 3/21/2017
FROM: Derek Johnson, Assistant City Manager
Michael Codron, Community Development Director
SUBJECT: DEVELOPMENT AGREEMENTS
RECOMMENDATION
Receive a staff report and presentation about Development Agreements.
REPORT IN BRIEF
The purpose of this report is to provide an overview and opportunity for City Council discussion
related to development agreements. This report includes an overview of State Law and locally
adopted ordinance requirements.
In general, the evolution of the Development Agreement as a land use tool is a consequence of a
larger tension between increasingly complicated land use regulations, high degree of public
engagement, and developers’ and a community’s desire for certainty.
The development process begins with the City’s General Plan. The General Plan outlines
policies that guide projects and the City’s Zoning Ordinance along with other municipal code
sections, which establish the development standards, which implement those policies. From
there, a developer comes up with a vision and secures capital from lending institutions, hires
architects and engineers to formulate plans, and employs consultants to conduct various surveys
regarding the characteristics of the land.
A developer incurs substantial debt, often spending millions of dollars on the early development
entitlement phase. These costs and activities occur prior to the developer receiving the City’s
approval to proceed with the project.
The developer then runs the risk that the municipality will enact a subsequent zoning ordinance
that renders the development infeasible. There are some statutory provisions within the
Subdivision Map Act and Planning and Zoning Law which hedge this risk but those provision
are not absolute or fully protect a development proposal from a major change in policy or zoning
code changes. A Development Agreement is a solution to the inherent uncertainty in the
development process and a means by which developers can protect their investment, a
municipality can provide certainty about public improvements and financing and address other
issues that are outside the regulatory authority of a City. Lastly, a Development Agreement is a
contract between a municipality and a property owner/developer, which provides the developer
with vested rights by freezing the existing zoning regulations and other issues applicable to a
property in exchange for public benefits. This report outlines both state and local requirements
for Development Agreements in the City of San Luis Obispo.
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DISCUSSION
The purpose of this study session is to provide an overview of Development Agreements in the
context of state law and Municipal Code findings required by the City of San Luis Obispo. This
study session is being held now as some of the larger residential housing projects have requested
a Development Agreement to memorialize the commitments of both the developer and the City.
A Development Agreement is a contract between a developer and a City (or County) in which
the city provides the developer with vested development rights for a defined period. In exchange
for these extra benefits, the developer is required to provide “extraordinary” public or
“community” benefits that exceed what the City could otherwise constitutionally require through
the normal process of exercising its land use regulation authority (these are “police powers”
delegated to local government by the state) in establishing conditions of approval for a project.
Development Agreements are a unique planning tool authorized by statute pursuant to
Government Code section 65864 – 65869.5. In some circumstances, Development Agreements
can provide both greater flexibility and greater certainty in the development of large or complex
projects, particularly those projects where development occurs in phases over many years.
However, it should be noted that Development Agreements are legislative acts and subject to
referendum, so the flexibility afforded by the tool is limited by community norms and values.
Required Terms
According with State law, a Development Agreement must include the following terms:
1. Duration of Agreement
Depending on the scope of the development, Development Agreements typically have a term
of 10-20 years. Nothing in the authorizing legislation prohibits a shorter or longer term. It
may also include a provision that will extend the term in the event of litigation that seeks to
challenge the approval of the Development Agreement for the period equal to the length of
the time from initiation of litigation until final and non-appealable resolution. The duration
clause can also include a “stale date”, or a timeframe for commencing the Project, which, if
exceeded, results in expiration of the Development Agreement.
Developers will often seek as long a term as possible while the City’s interest is o ften in
incentivizing construction of the project as soon as possible. While it is important to be
flexible, the duration of a Development Agreement should generally equal an adequate time
for remaining pre-development efforts (e.g. engineering, design, financing, etc.),
construction, and marketing.
Accordingly, a large project that involves multiple phases such as Avila Ranch and San Luis
Ranch will likely proceed under a multi-year period of construction should have a matching
extended duration (e.g. 15 to 20 years). Setting an appropriate duration matched to a realistic
forecast of project development prevents developers from obtaining vested entitlements
solely for enhancing property value. Provisions for subsequently amending (lengthening) the
term can be included in the event of unforeseen circumstances, such as an intermittent or
persistent real estate market downturn.
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2. Permitted Uses of the Property
Development Agreements are not “regulatory documents”, they simply provide the
Developer with a vested right for the term of the Agreement to use the property for the
permitted uses, pursuant to adopted land use regulations (i.e., General Plan and zoning
regulations) subject only to the procedures for review of individual projects. Development
Agreements can both shorten or lengthen the term associated with entitlements.
3. Density/Maximum Height and Size of Buildings
Development Agreements provide the Developer with a vested right for the term of the
agreement to build to the approved density, height and size of buildings; subject only to the
procedures for review of individual building projects (i.e. ARC and CHC reviews).
Commonly, an adopted Specific Plan1 or other regulatory documents are included in the
Development Agreement by reference, which is the case of the larger pending housing
projects for Avila and San Luis Ranches.
4. Provisions for Reservation or Dedication of Land for Public Purposes
Development Agreements set forth the developer’s obligations to dedicate and/or improve
property for open space and community facilities. They typically describe all of the proposed
public land dedications and level of improvements and obligate the developer to improve the
land and dedicate it to the local government in accordance with a phasing plan.
Optional Terms
In addition, to the mandatory terms required by state law set forth above, Development
Agreements typically include terms regarding the following matters:
1. Infrastructure Required
Development Agreements typically describe the developer’s obligations f or construction of
infrastructure2, including but also beyond those required by the subdivision map(s) such as
improvements for streets and sidewalks, parks and recreation facilities, stormwater
management and wetlands, grading and floodplain management, storm drain, sanitary sewer,
domestic and recycled water infrastructure, electricity, gas and telecommunications
improvements, and transit. In the case of the two pending developments, it will be important
that the Development Agreement clearly link not only required mitigations and policies, but
also delineate improvements being funded that are beyond the fair share requirements of the
developer and articulate when, how and if the developer will be reimbursed for these
supernumerary improvements.
2. Affordable Housing
Development Agreements typically set forth the developer’s obligation to provide affordable
housing and other public benefits. The Development Agreement can specify the percentage
of affordable and market rate units, the level of affordability, and tenure mix (rental vs. for
sale). Moreover, the Development Agreement can require the delivery of units in terms of
phases. Since the Development Agreement is voluntary, this can include inclusionary
requirements on residential rental units.
1 Both Avila and San Luis Ranches are areas included in existing or new Specific Plan areas.
2 This includes infrastructure required by policy, development standards or through environmental mitigation.
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3. Fees and Exactions
Development Agreements typically specify the types and amounts of fees and exactions that
will apply to the project and the terms related to updating of any such fees, i.e., will the
project be subject to such future increases or be “grandfathered”.
4. Infrastructure Financing
Some portion of the public improvements may be financed through land secured public
financing, such as formation of a Community Facilities District (CFD), use of Tax Increment
Financing (TIF), such as an Enhanced Infrastructure Financing District (EIFD), or other
sources of public investment. The Development Agreement typically includes a financing
plan as an exhibit that specifies the form and mechanism of public financing to be used and
the obligations of the local government and the developer to implement and use the sources
of public financing. Such provisions typically obligate the local agency to create and
administer the financing mechanism(s) and provide other funding sources as may be
specified.
5. Responsibility for CEQA Mitigation and other Mitigation Measures
Development Agreements typically incorporate all applicable CEQA mitigation measures
adopted by the local government in conjunction with the project approvals. Other mitigation
requirements, for example any measures adopted to offset any negative fiscal effects of the
project can be included in a Development Agreement.
Terms Involving the Development Process
1. Phasing
Development Agreements typically require the developer construct certain improvements (in
addition to those “in-tract” improvements required pursuant to the subdivision map(s) and
they commonly include plans for phasing pursuant to which the developer agrees to provide
the identified infrastructure and community facilities concurrent with the discrete phases of
the project. The required phasing of private development and public improvements is
typically monitored and enforced through the subdivision map process, whereby tentative
map applications would have to be consistent with the approved phasing plan, infrastructure
plan and development standards and guidelines.
It is also the case that project phasing can be arranged such that aspects of the project desired
by the local government are “deferred” until a latter phase of the project, raising questions
about whether there will be the motivation to actually complete this later phase. Remedies
may need to be included to address a potential outcome that could limit desired public
benefits.
2. Subdivision Maps
Development Agreements may allow subdivision map approvals associated with the project
to extend through the full term of the Development Agreement, particularly if the developer
obtains a “master subdivision map” with subsequent phased tentative and final maps. Any
special terms related to such extensions can be included.
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3. Subsequent Approvals
Development Agreements typically set forth the approval process for individual projects.
For example, all individual projects could be required to submit a final package of materials,
including a site plan, building location, floor plans, exterior materials and colors, overall
vertical dimension, hardscape and landscape concepts, vertical dimensions and fenestration
for review pursuant to adopted design standards and guidelines.
Other Standard Terms and Conditions
Development Agreements typically include a common set of terms that are not expressly
required by the State law, these include:
1. Assignment and Transfers
The developer may transfer the property (or portions of the property) and the rights and
responsibilities of the Development Agreement will “run with the land”. However, at the
same time, the Development Agreement should require the original owner to remain fully
responsible for all developer obligations under the Development Agreement (e.g.,
construction of infrastructure and obligation for public benefits), unless the local government
is satisfied that the new owner(s) can meet these obligations. Typical assignment clauses give
local agencies the right to review and approve such assignments, based on its qualifications
and experience of the assignee.
2. Annual Review
By law, Development Agreements must require an annual review of the developer’s
compliance with its obligations under the Development Agreement, which may be at an
administrative level, or at a public hearing.
3. Indemnification
Development Agreements typically indemnify the local agency from any legal action taken
by a third party against the project at any time and for any reason, saving negligence by the
local agency.
4. Vested Rights
Development Agreements may provide that the local government will not enact any
ordinance, policy, rule, regulation, ballot initiative, or other measure applicable to the Project
which would adversely affects the rate, type, manner, timing or sequencing of the
development or construction of the Project or which would otherwise conflict with the scope
of the Project set forth in the Agreement. It may also provide that the local government’s
regulations governing the permitted uses, design, and construction standards and
specifications applicable to the development will be those in force as of the adoption date of
the Development Agreement. However, uniform building codes, typically resulting from
state law, will always be those in effect at the time of approval of the applicable building,
grading or other construction permits.
5. Investor and Mortgagee Protection
Development Agreements typically include terms for the benefit of any equity investors or
commercial lenders that may be involved in the project, such as the right to notice of defaults
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and an ability to cure defaults.
6. Public Benefits
The public benefits offered by the developer or sought by the City will ultimately bear some
relationship to the value of the project; the developer will need to rationalize the additional
cost of these public benefits into their overall project economics. However, as a general
measure, the public benefits offered should meet or exceed the estimated value of the vested
entitlement to the developer combined with the estimated City cost of any terms conferring
additional benefit to the developer (e.g. fee relief). Because of varying financial
circumstances including such factors as the developer’s basis in the land, current economic
conditions, and site assembly and preparation costs the financial feasibility will vary.
Stronger, more feasible projects will have greater capacity and willingness to fund public
benefits while less feasible projects, including those with considerable merit, will have a
lesser ability to fund extraordinary public benefits. Accordingly, there can be no precise
generalized metric regarding “ability to pay”. While the following factors can help frame the
matter and assure that the City’s request for public benefits are at least “in the ball park”, the
amount of public benefit will always result for analysis of the particular case and the related
negotiation with the developer.
a. Overall project value
The extraordinary public benefits required as a part of a development agreement will
ultimately be a project cost, in one fashion or another. As such, they will affect project
economics in the same way as development impact fees and other project mitigation costs
that may be imposed on the project. Generally, a “rule of thumb” or industry standard is
that aggregate infrastructure and off-site mitigation costs should not exceed 15 percent of
total project retail value.
Under certain circumstances, this percentage could be a bit higher, but there are also
circumstances where it may be too high. In order to do this calculation, it is necessary to
compute the total aggregate burden of impact fees, other infrastructure costs, and other
mitigation and compare the result with estimated project retail value. If there is some
remaining capacity, it can provide an indicator of what may be reasonable in terms of
negotiating public benefits. The City is currently evaluating these factors in the current
Development Agreement being negotiated for the San Luis Ranch and Avila Ranch
Projects.
7. Enforcement
Enforcement is a key element of a Development Agreement in the event of non-performance
by either the Developer or a City or County. Accountability and enforcement terms can
include bonding requirements, encumbrances of title, mechanisms in the event of default,
including reverter clauses, and other contractual cure provisions. Enforcement provisions are
a critical component of a Development Agreement and should be required if the project does
not proceed as planned and approved.
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Locally Adopted Requirements
The City adopted Municipal Code Chapter 17.94 in 1989 to establish procedures and
requirements for development agreements for the purposes of specifying 25 policy areas largely
related to application requirements, findings, public hearing requirements, administration, and
relationship to other approvals and entitlements. The primary purpose is to codify local
requirements related to Development Agreements to compliment the state framework that
established the statutory authority for Development Agreements.
The City has approved one Development Agreement that was overturned by referendum along
with other entitlements related to the San Luis Ranch Property. The City does not have any
current Development Agreements and the codified framework provides a useful foundation for
the local processing of any agreements.
The approval process for Development Agreements is established by the City’s Municipal Code.
The process requires the Planning Commission to make a recommendation to the City Council,
in consideration of the following findings:
A. The proposed development agreement is consistent with the general plan and any
applicable specific plan;
B. The proposed development agreement complies with zoning, subdivision and other
applicable ordinances and regulations;
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;
2. Will be appropriate at the proposed location and will be compatible with adjacent
land uses; or
3. Will not have a significant adverse impact on the environment.
(Ord. 1134 § 1 (part), 1989)
It should be noted that Draft Environmental Impact Reports are being circulated for both Avila
Ranch and San Luis Ranch for public review. Both reports conclude that there will be significant
adverse impacts on the environment even after all reasonable and feasible mitigation measures
are implemented. These two pending projects both propose to use Development Agreement in
order to coordinate the extensive financing, phasing, and environmental mitigations associated
with these projects. The inability to use a Development Agreement would be a significant
drawback for the City in terms of addressing the complicated planning and financing issues that
are associated with these projects.
The City’s municipal code requirements that projects not have a significant adverse impact is
significantly more constraining than required under state law and will otherwise limit a very
useful planning tool to coordinate the extensive planning, infrastructure and financing issues that
are generally within the scope and purpose of a Development Agreement. To that extent, Staff
is requesting direction if the City should pursue ordinance changes to require any project
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associated with a Development Agreement to mitigate impacts to the maximum extent feasible
as required under CEQA.
Questions for City Council direction
Does the City Council support the use of Development Agreements?
1. Does the City Council conceptually support the use of Development
Agreements as outlined in this report?
2. What specific concerns or issues does the City Council have with
Development Agreements?
3. What are examples of public benefits that the Council believes are
generally required to support the use of a Development Agreement?
4. Are there any other details related to Development Agreements that the
City Council wants Staff to consider when negotiating?
Municipal Code requirements
1. Does the City Council want staff to return with any recommended changes
to the City’s Municipal Code to facilitate the use of Development
Agreements for complex housing projects that may have remaining
adverse impacts; even after all reasonable and feasible mitigation
measures have been imposed?
2. Are there any other changes to the City’s Municipal Code that the Council
wants to make in order to address any concerns?
CONCURRENCES
The Public Works and Utilities Departments support the use of Development Agreements to
specify fair share responsibilities and to ensure that infrastructure phasing occurs in conjunction
with planned development.
ENVIRONMENTAL REVIEW
No action is being requested and Development Agreements for individual projects are subject to
environmental review under the California Environmental Quality Act.
FISCAL IMPACT
There is a variety of financial objectives related to including a Development Agreement as part
of the entitlement package for any project. A primary purpose is to clearly articulate both the
City and developer’s financial responsibilities and because a Development Agreement is
voluntary in nature, it provides a mechanism for the City to require improvements or other
remuneration that is not otherwise required by policy, development standard or any required
mitigations.
Development Agreements should be evaluated within the City’s financial policies and
appreciation for comprehensive fiscal impacts. If infrastructure financing is sought as part of a
Development Agreement, comprehensive debt capacity should be viewed as shared resource by
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all of the local governments serving the development area.
ALTERNATIVES
The City Council could decide not to use Development Agreements as a planning tool. This is
not recommended since there are currently two projects moving forward: Avila Ranch and San
Luis Ranch. The projects should be evaluated based on the General Plan and public
infrastructure financed through the City’s fiscal policies, which include land based financing.
The City Council also adopted a Major City Goal to continue to implement the City’s Fiscal
Responsibility Philosophy with a focus on economic development and responsiveness,
structurally balanced fiscal outlook, unfunded liabilities, and infrastructure financing. Through a
Development Agreement, land based financing will be evaluated in accordance with the City’s
financial policies.
Attachments:
a - Council Reading File - Development Agreement
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Newspaper of the Central Coast
on"I-1,111D
3825 South Higuera • Post Office Box 112 • San Luis Obispo, California 93406-0112 • (805) 781-7800
In The Superior Court of The State of California
In and for the County of San Luis Obispo
AFFIDAVIT OF PUBLICATION
AD # 3161831
CITY OF SAN LUIS OBISPO
CITY CLERK
STATE OF CALIFORNIA
ss.
County of San Luis Obispo
I am a citizen of the United States and a resident of the
County aforesaid; I am over the age of eighteen and not
interested in the above entitled matter; I am now, and at
all times embraced in the publication herein mentioned
was, the principal clerk of the printers and publishers of
THE TRIBUNE, a newspaper of general Circulation,
printed and published daily at the City of San Luis
Obispo in the above named county and state; that notice
at which the annexed clippings is a true copy, was
published in the above-named newspaper and not in any
supplement thereof — on the following dates to wit;
JULY 8, 2017 that said newspaper was duly and
regularly ascertained and established a newspaper of
general circulation by Decree entered in the Superior
Court of San Luis Obispo County, State of California, on
June 9, 1952, Case #19139 under the Government Code
of the State of California.
I certify (or declare) under the penalty of perjury that the
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DATED: JULY 8, 2017
AD COST: $187.92
CITY OF
117 `iHry 'T yrY S (MISPO
SAN LUIS OBISPO CITY COUNCIL
NOTICE OF PUBLIC HEARING
The San Luis Obispo City Council invites all interested persons to
attend a public hearing on Tuesday, July 18, 2017, at 6:00 p.m.
In the City Hall Council Chamber, 990 Palm Street, San Luis
Obispo. California, relative to the following:
TO MUNICIPAL CODE TITLE 17:.
SflCIA7E(%WITH DEVELOpM..ENT
A. public hearing to consider introducing an ordinance to amend
Municipal Code Section 17.94.100 D (3) regarding the findings to
approval of Development Agreements with an exemption from envi
ronmental review.
For more inlormallon, you are invited to contact Doug Davidson of
the City's Community Development Department at. (805) 781-7177
or
The Clly Council may also discuss other hearings or business
Items before or after the items listed above. If you challenge the pro-
posed projects In court, you may be limited to raising only those is-
sues you or someone else raised at the public hearing described
In this notice, or in written correspondence delivered to the City
Council at, or prior to, the public hearings.
Reports for this meeting will be available for review in the City Cler-
k's Office and online at www.slocity.org on Wednesday, July 12,
2017. Please call the City Clerk's Office at (805) 781-7100 for mon
information. The City Council meeting will be televised live on Char-
ter Cable Channel 20 and live streaming on
loarrle Gallagher `
'lueid jamod jeapnu uoA
Citywide CODE-####-2017July 18, 2017Review of amendments to Municipal Code Title 17 (Zoning Regulations) associated with Development Agreements with an Exemption from Environmental ReviewApplicant: City of San Luis Obispo
Recommendation2Introduce an ordinance to amend Title 17 (Zoning Regulations) of the Municipal Code associated with Development Agreements, with an exemption from environmental review.
Background 3Current language in Muni Code 17.94 precludes Development Agreements for projects with significant impacts San Luis Ranch and Avila Ranch projects have both applied for Development Agreements Council study session on Development Agreements – March 21, 2017Council direction to return with amendment to 17.94.100
Development Agreements (DA) A DA is a contract between City and property owner which can provide the developer with vested rights in exchange for public benefits.A DA is a solution to uncertainty in the development process by protecting investments and providing certainty to the City on public improvements, financing, and other issues outside the usual regulatory authority of the City. A DA is a tool to address increasingly complicated land use regulations, high degree of public involvement, and the developers’ and community’s desires for certainty. 4
MC 17.94.100 (D)5The proposed project and development agreement:Will not adversely affect the health, safety, or welfare of persons living or working in the surrounding area; Will be appropriate at the proposed location and will be compatible with adjacent land uses; orWill not have a significant adverse impact on the environment.
CEQA & DA Processes/Summary 6The CEQA and DA processes should be separate; a DA focuses on the planning, financial, and infrastructure issues associated with large, complex developments, while CEQA governs the process of identifying and mitigating environmental impacts. SummaryThe Ordinance as written restricts a useful tool from being considered to coordinate complex planning and financing issues of large projects. Under current Regulations, the findings for a DA could likely not be met for most large, complex projects, since air quality and noise impacts are commonly identified as significant in EIRs. The revisions will facilitate Development Agreements to address the complicated planning and financial issues associated with large, complex projects.
RecommendationIntroduce an ordinance to amend Title 17 (Zoning Regulations) of the Municipal Code associated with Development Agreements, with an exemption from environmental review.7