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HomeMy WebLinkAbout03/22/1988, 2 - AN INTRODUCTION TO PLANNING IN THE AIRPORT AREA. M' ING AGENDA2 DATE r�22 88 ITEM #� ��iil!illil'�i iP!i�li ' �I III I II I ►►►►!i�i!��I�� i 11 aty of sAn tuis oaspo 990 Palm Street/Post Office Box 8100 " San Luis Obispo, CA 93403.8100 TO: The City Council and Planning Commission VIA: Michael Multari, Community Development Director % FROM: Terry Sanville, Principal Planner— ? SUBJECT: An introduction to planning in the airport area. The Situation On March 22, the City Council will discuss city annexation and expansion policies. These discussions are timely because there is substantial interest by owners of property at the city's fringe to pursue annexation. The workshops are also timely because city and county staffs, area property owners and consultants have completed preliminary studies for the Airport Planning Area -- 1,700 acres that lie between South Higuera and Broad Streets and north of the county airport. This memo provides the City Council and Planning Commission with a progress report on planning in the airport area. It also presents key elements of a planning strategy that is the basis for beginning a public dialog among the city and county and property owners. Finally, important next steps are identified. A Short History of Airnort Area Plannine Efforts The last two Financial Plans adopted by the City Council (1985-87 and 1987-89) have directed the Community Development Department to "...work with the County to Prepare an Airport Specific Plan and technical reports for review." The preparation of the specific plan is also called for by the county's Land Use Element for the San Luis Obispo Area. A successful planning program for the airport area requires the cooperative efforts of the city, county and area property owners. To facilitate this cooperation, the Airport Area Planning Team was formed. The team's membership includes city and county planning staff and consultants representing area property owners. From time to time the team has been assisted by city and county engineering staffs. The county hired Wildan Engineering of Ventura to conduct a series of technical studies in the airport area. Key elements of the consultant's work include existing land use patterns, circulation and traffic, flood control, ground water analysis, urban service options, and environmental constraints. With preliminary information from the consultants in hand, the planning team drafted a conceptual land use and circulation plan for the airport area. A series of "planning principles" that address the orderly implementation of the concept plan was prepared. CR—/ Page 2 -- Airport Area Concept Plan This conceptual planning work is presented, in part, by the attached materials which include a "Conceptual Land Use Map" and a list of "Planning Principles." A more complete introductory report will be distributed to the City Council at its March 22 meeting. More detailed technical studies prepared by the consultant (eg. circulation, drainage, flood control) will be distributed at a later date. We are now at the mid=point of the first phase of planning for the airport area. Public involvement and direction for city and county decision makers is the next step. (Note: the County Board of Supervisors are also scheduled to begin review of the attached materials on March 22.) Key-Obiectives of Airport Area Plannine Some of the objectives that guided the planning team's efforts to date in preparing the concept plans include the following: A plan for the airport area should be acceptable and adopted by both the city and the county and address the objectives of the area's property owners. To achieve a mutually-acceptable plan for the airport area may require some changes to current city and county land use, annexation, growth management and expansion policies. The plan development and adoption process will involve negotiation and compromise. Adopting a plan for the area should result in higher quality and more orderly development. Involvement of the public and city and county decision makers is essential as part of this first phase of planning. Direction is needed from decision makers before the planning team can pursue the preparation of a specific plan and EIR. The attached materials and soon-to-be-published reports present the planning team's conceptual planning ideas but are not in themselves a specific plan for the area. Their primary intent is to provide a basis for public comment and for discussions between the city and county. By reviewing these concepts, however, the planning team hopes that consensus between the city and county will occur and that decision makers will provide direction for the preparation of the specific plan and EIR. Airport Area Plannine Concepts The concept plan for the airport area includes a land use map, a listing of permitted uses within each land use category (part of the report sent to the council under separate cover), and a list of "Planning Principles." These principles establish a policy framework for the airport area and present the following concepts: 1. Land Use Strategy: Over time, the airport area would be developed with a mixture of service commercial, residential and recreational uses. ' About 750 dwellings would be located in the Margarita Expansion Area at the base of South Street Hill and north of Prado Road (extended). Housing areas were located here to avoid the adverse effects of county airport operations. �-a Page 3 -- Airport Area Concept Plan ' South Street Hill and creek corridors would be preserved as passive open space and recreation areas. ' Over 300 acres, including portions of the base of South Street Hill, would be earmarked for private and public recreation purposes. South of Tank Farm Road and west of Sante Fe Road, a golf course is planned on land previously used for petroleum storage. • Agricultural land at the periphery of the planning area would be preserved . ' Four new "Business Parks" would be established -- three adjacent to Higuera Commerce Park and one on Tank Farm Road near Broad Street. These parks would be similar in character to Higuera Commerce Park except that parcels would be larger and more landscaping required. Prior to further development and subdivision of these areas, the preparation and adoption of a "Development Plan" would be required. ' Service Commercial areas would include land along Broad Street, Suburban Road (east of South Higuera), and Sante Fe Road. These areas are currently developed with a scattering of uses and the land has generally been subdivided into small parcels. Much of the airport planning area has already been committed to some type of service commercial or light industrial use because of past development and subdivision activity. However, over 44% of the planning area would be earmarked for open space, recreation, agriculture or interim uses. There will be more than enough area earmarked for service commercial uses to meet the community's foreseeable needs. By accommodating commercial and residential development within the city's urban reserve, the concept plan hopes to encourage the preservation of agricultural and open areas beyond the urban reserve and discourage further sprawl into the Edna Valley. This concept — sometimes called the "urban centers concept" -- is something that the city should pursue with the county (via the MOA process) as a way of preserving agricultural and open space territory that lie between communities. 2. Circulation Planning: The concept plan includes a network of major streets that would extend throughout the area and connect with Broad Street on the east and Higuera Street on the west. ' Prado Road would be extended eastward to connect with Broad Street at the Industrial Way intersection. ' Margarita Avenue would also be extended east and intersect with Prado Road (extended). ' The intersection of Sante Fe and Tank Farm Roads would be redesigned. ' The location of local and collector streets would be included in the "Development Plans" required for each Business Park and for the Margarita Expansion Area. Consultant studies show that full development of this area will generate substantial traffic. Providing connections of the area's street system with highway 101 will require additional study. Since the airport planning area is connected to other parts of the community, an analysis of airport area development on community traffic levels will be included as part of the specific plan's EIR and as part of the city's current Circulation Element studies (reference DKS Associates). Page 4 — Airport Area Concept Plan 3. Provision of Services. The concept plan envisions that the city would pursue the phased annexation of the airport area and provide services such as water supply, sewage treatment, police and fire protection. This strategy is consistent with the City's Water and Wastewater Management Element which says that the city will provide services within its urban reserve. Options for providing water supply and sewage treatment to the area will require additional study. The availability of water supplies continues to be a key issue that must be resolved as part of the specific plan for this area. In sum, these are the concepts that the airport area planning team are seeking input on from city and county decision makers and the community. Important Next Stens At the City Council meeting on March 22, the staff will present an overview of of the concept plan for the airport area and answer questions. The Planning Commission has been invited to this meeting. The City Council should sponsor additional workshops with the Planning Commission in April/May. At the next workshop, a more in-depth presentation would be make by city and county staff followed by more detailed discussion of planning concepts and policy for the area. It would be the objective of the commission/council workshop series to formulate a city position on planning the airport area and transmit this position to the Board of Supervisors. Following this transmittal, joint meetings between the City Council and Board would be desirable to discuss options, develop consensus where possible, and provide direction to the planning team for preparing the specific plan and EIR. The structure of this public review process has not been firmly established. The City Council should feel free to suggest other appropriate strategies. Recommended Action At its March 22 meeting, the City Council should ask staff any questions about the the planning process and Phase I Report and set a date for a future joint workshop with the Planning Commission. Attachments \.\\�\\ d � CONCEPT: PLA. _AING-PRiNCiPLES AASP INTRODUCTORY STATEMENT The AASP team, consisting of staff from the county, city and a land use planning firm acting as liaison with the owners of property within the AASP boundary, met many times to review the draft reports prepared by Wildan Associates and to ensure that the interests of the county, city and property owners were considered in the reports. In addition to many other revisions to this summary report, the AASP team prepared several basic planning principles to guide the implementation of the plan, contained in the following section. It is important to note that preparation of this specific plan occurs within an overall planning framework for the entire urban .fringe. A primary principle which should guide planning efforts around the city is that more intensive development should occur within urban and village reserve lines, and that Land outside such areas should retain a rural character. The recommended planning principles for the specific plan area, which is within the urban reserve line, follow from that basic guideline. The overall distinction between land uses of urban scale and intensity within the urban reserve and rural character beyond, together with the detailed planning principles which follow, represent a commitment by the city to accommodate phased urban—intensity development within its urban reserve line, contingent on availability of services and with annexation, and concurrent commitment from the county to retain the rural character outside the urban reserve line. The county and city staffs propose that this approach be incorporated into the specific plans and general plan land use designations and policies of both jurisdictions, and that the county and city should continue to explore additional ways of formalizing this concept, which could include a memorandum of understanding between the two jurisdictions. PLANNING PRINCIPLES I. INTENT A. The city will annex the specific plan area in phases, provide municipal services and implement the planned land uses in an orderly manner. B. The county will coordinate with the city and property owners to assure orderly implementation of the phased specific plan and transition from county to city jurisdiction during implementation. C. The property owners will participate in a fair share allocation of the costs of providing municipal services and the mitigation of environmental impacts associated with the orderly and phased implementation of the specific plan. -2- D. The city and county will adopt the specific plan and amend their general plans accordingly. II. DEFINITIONS A. Urban Housing: more than one dwelling per ten acres. B. Rural Housing: one or fewer dwellings per ten acres. If clustered, the overall density of rural housing shall not exceed one dwelling per 2.5 acres until the year 1993. If municipal services are not available after 1993, rural housing may be clustered at an overall density of one dwelling per acre. C. Urban Commercial Development: development of 30 percent or more of the allowable building coverage within each Business Park or Commercial Visitor-Serving area. D. Rural Commercial Development: development of less than 30 percent of the allowable building coverage within each Business Park or Commercial Visitor-Serving area. E. Municipal Services: water supply, sewage treatment, and fire and police protection provided by the City of San Luis Obispo. -3- a-� F. On-site Services: water supply from wells for domestic use and fire suppression; septic systems. G. Community Service System: interim water supply or. sewage treatment facilities managed by county government that serve clustered rural housing and rural commercial development. III. GROWTH MANAGEMENT A. Urban housing and urban commercial development shall not be developed until affected territory is annexed to the City of San Luis Obispo. B. The city will annex an area only when such action is consistent with the adopted city general plan. C. Rural uses may be developed under county jurisdiction. IV. LAND USE PRINCIPLES A. Residential Areas 1. All urban and rural housing shall be consistent with Master Development Plans prepared and adopted for Residential Single Family areas or with the adopted Edna-Islay Specific Plan (1983). -4- �' / 2. Residential areas on the south side of South Street Hill shall exclude land with slope greater than 15 percent. A precise boundary between residential and open space areas shall be established by the Master Development Plan for this area. 3. Neighborhood park facilities will be established to serve residential development enabled by the Airport Area Specific Plan. B. Business Park Areas 1. The four designated Business Park areas will accommodate a mixture of service and light industrial uses with associated office, warehouse and enclosed storage area. 2. Prior to subdivision and further development of each designated Business Park area, a Master Development Plan shall be prepared and adopted. 3. Both urban and rural commercial development must be consistent with the adopted Master Development Plan for each Business Park area. -5- a�"/0 C. Commercial Service Areas 1. Commercial Service areas include a broad range of commercial and associated office uses that serve city and regional populations. 2. Along the Broad Street, Tank Farm Road, Prado Road, and South Higuera Street corridors, the following uses shall not be permitted: farm equipment and supplies sales; sales lots; vehicle storage; auto and vehicle repair and service; recycling and scrap; chemical manufacturing and processing; collection stations; concrete, gypsum and plaster products; metal industries; transportation equipment; petroleum refining and related industries; auto, mobilehome, vehicles dealers and supplies; contract construction services; truck stops; and drive-in theaters. D. Commercial Retail Areas 1. Development of the Commercial Retail areas with urban commercial uses is contingent upon annexation to the city and/or the provision of municipal services. -6- E. Open Space Areas 1. Hillside open space areas shall be protected by perpetual open space easements or public dedications consistent with the scale of development proposed. Structures, roads, above-ground utilities, significant grading, or removal of vegetation should not be allowed. Controlled public pedestrian access provisions shall be incorporated into the open space easements. At a minimum, public access easements shall be offered for dedication and maintenance purposes to responsible public agencies. 2. Creek corridors shall be protected in open space easements for flood control, riparian habitat protection and enhancement, and controlled public access. F. Recreation Areas 1. The Recreation area south of Tank Farm Road and west of Santa Fe Road is reserved for a golf course and associated facilities and open space. -7- �'/L/ 2. Recreation areas north of the Prado Road extension and west of Broad Street may be developed with public and private recreational uses. G. Agriculture Areas 1. Agricultural areas shall not be converted to residential or commercial designations unless more than 70 percent of the parcels .within Business Park or Residential Single Family areas are developed. H. Public Facilities Areas 1. The county airport should serve the region in a manner compatible with existing and planned land uses. 2. The Airport Area Specific Plan will not foster development that is incompatible with existing or planned airport operations. 3. The county, through its plan adoption process, should coordinate land use planning and airport operations for areas surrounding the airport. -8- �?-/3 V. SERVICES A. Municipal services shall be required to support urban uses within the specific plan area. B. Upon annexation, the City of San Luis Obispo will provide municipal services to territory within the specific plan areas.- Benefitting property owners (including those with on—site or community systems serving rural development) will pay for these services. C. The schematic design of municipal service systems shall be included in the Master Development Plans for. residential areas and for each Business Park area. D. Water Supply and sewage disposal services from on—site or community systems may support rural housing and rural commercial development, and development within Commercial Service, Recreation, and Agriculture areas. The ability of these systems to provide long—term service shall be demonstrated prior to or concurrent with development approval. E. Individual property owners will be responsible for the development and management of on—site services. Community service systems, managed by the county, may be established r to support clustered rural housing or rural commercial development. F. Municipal, on-site or community water and sewer services shall not be made available to the South Street Hills open space areas. G. Municipal services to the county airport will continue to be provided consistent with the provisions of the 1977 services agreement between the city and the county. Any changes in services to this area will require amendment of the agreement. H. Municipal fire protection will be provided to all territory annexed to the city. Areas not annexed to the city will be served primarily by the County Fire Department and secondarily by the city through existing mutual aid agreements. VI. CIRCULATION PRINCIPLES A. Roadways 1. Roadways will be designated and constructed to meet standards adopted as part of the Airport Area Specific Plan. 2. Design principles should be developed for the Prado Road (extension), Tank Farm Road, Broad Street and South Higuera Street corridors that establish standards for signs, lighting, landscape setbacks, building setbacks, and pedestrian and bicycle facilities. 3. Prado Road should be connected to Broad Street at the Industrial Way intersection. Margarita Avenue should be extended eastward to serve the Residential Single Family areas. (The alignment of the north end of Santa Fe Road should be changed, and improvements to the Prado Road freeway connection should be evaluated). 4. Additional local streets and collectors should be designed as part of the Business Park and residential areas' Master Development Plans, or subdivisions proposed in the Commercial Service areas. B. Transit and Transportation Management Programs 1. City transit service should be extended to serve the specific plan area including the county airport. If this occurs under county jurisdiction, the county should help financially support the extension of the city system. -11- R_/6 2. Area employers should be encodraged to participate in the full range of transportation management programs. DL/lj/cli580H/38 2/18/88 v MEETING AGENDA 'J,JtNEDROGOWAY, AICP DATE MM22 ,rteNING SERVICE orty AVCfILLC,SuitC BRECEIVE D Bay,CA 93442 772-5400 MAR 1 1 1988 cffYCLUW SANLUISOMSPO.CA R, Row: March 10, 1988 Ron Dunin, Mayor and the Honorable City Council City Hall San Luis Obispo, CA Members of the Council: Our firm ( 2083 General Partnership) owns about ten acres on Broad Street just south of the Williams Bros. Shopping Center. As your Council is aware this land and the surrounding parcels are scheduled to come before you as an annexation and as key pro- perties from the San Luis Obispo Airport Specific Plan. Both proposals are far reaching and they are significantly important to the future well being of San Luis Obispo. Property owners in this neighborhood have been most anxious to have settled the long- standing land use disputes over the County and City policies . They want the policy of the City to be sound, stable and progres- sive so that property owners firmly know where they stand and what they can expect. Doubts have been raised about this annexation and the effect it might have on the water supply of the City. In addition, there are some who believe that growth should be rigidly controlled and infill should occur before new vacant lands are annexed. We appreciate these arguments and respect their right to make them. But the Council must look at all facets and implications of imple- menting public policy -- whether it' s timely, whether its effects are beneficial and whether the action is in proportion to all aspects of city progress. Our partnership has filed development requests with both the City and the County. The development proposes to build a 90 , 000 sq. ft. general merchandise store, small retail shops, and business services adjacent to and coordinated with the Williams Bros . Shop- pint Center. Ours is a business approach to make sure our application for the development of our land is given a fair hearing and acted upon. We have prepared a project of substantial conse- quence and if the annexation does not consumate, our project can proceed to a conclusive action with the County. We want your Council to know, however, that it is our preference to have the project supported by City services, and we strongly endorse the proposed annexation. Although we have had water extracted from the property in sufficient amounts to -2- sustain the development, the size and quality of our project warrants City fire flow, sewers and fire-fighting proximity. To ensure a thorough review of benefits, obligations and responsi- bilities from both sides, we have filed a draft development agreement between our partnership and the City. The California Government Code Section 65864 et. seq. enables private entrepre- neurs and public jurisdictions to negotiate and execute contracts for development. In this case, the agreement would become oper- ative at the time of annexation. Unfortunately, staff tells us they are not yet geared up to handle this type of request and we must wait until rules for procedures are enacted by the Council. The agreement will give the City an opportunity to sit down with the developer and hammer out all the details acceptable to both sides in advance of public hearings. The annexation of Broad Street properties can be supported by many arguments in favor of the approval. 1 . The land is in a pocket of territory surrounded on three sides by City jurisdiction. (Jurisdictional in-fill) 2. The properties are currently zoned for urban uses with major city services stubbed to the area or passing through the area. (Urban in-fill) 3 . Half of the properties already have contracted city services including water service. (Expended urban services) 4. The City improvement standards have been required of surrounding development and should be applied to the projects in this area. (Consistent standards) 5. Proposals for zoning the land upon annexation advocate high tax yield structures and low service volumes of water and sewer discharge. (Economic benefits ) 6 . The zoning proposed will result in low intensity employ- ment in high tax yield structures placing minimal growth pressure on the City. (Minimal growth factor) 7 . Annexation agreements call for private water wells to supplement City services in an area where underground basins are not overdrafted. (Minimal resource consumption) It is our position that the City must look to improving its economic viability and continually seek progressive development that produces fiscal responsibility in government and a healthy business economy. In addition, we believe the City must balance its growth patterns so that traffic, water and sewer are not impacted in any sector. It is time to shift the community traffic and shopping desires to unincumbered areas of the City rather than -3- heaping more development upon impacted areas. For these reasons we think public policy and governmental incentives to develop along Broad Street are timely and warranted. If these incentives are to come, then it should be the City, not the County, who administers the growth. We cannot claim to be benevolent in our approach to property development, but certainly what is good for the City economically and based on sound planning implementation is good for us too. Therefore, when we submitted our proposal for a development agree- ment, we laid ourselves wide open to the application of sound planning implementation and the final satisfaction that we've come together on a project of common benefit. Sincerely, Ne Ro a A CP Recording requested by: After recording, mail to: Space above this line for recorder's use DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF SAN LUIS OBISPO AND THE 2083 GENERAL PARTNERSHIP, RELATIVE TO THE DEVELOPMENT OF LOT 92 OF THE SAN LUIS OBISPO SUBURBAN TRACT IN THE COUNTY OF SAN LUIS OBISPO# STATE OF CALIFORNIA This Development Agreement is made and entered into this day of , 19_1 by and between the City of San Luis Obispo, a political subdivision of the State of California whose address is 990 Palm Street, San Luis Obispo, California 93401 (hereinafter "City" ) and the 2083 GENERAL PARTNERSHIP, address is 965 Monterey Street, San Luis Obispo, California 93401 (hereinafter "Owner" ) pursuant to the authority of Section 65864 through 65869.5 of the California Government Code. RECITALS: I. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risks of development, the legislature of the State of California adopted Section 65864 et seq. of the Government Code which authorizes the City of San Luis Obispo and the Owner or a prospective developer of a development project to enter into a development agreement, establishing certain development rights in the property which would become operative at the time of annexation and which would become a development permit. II. Owner owns 9.79 acres of real property in the City of San Luis Obispo described in Exhibit "A", "B" and "Cu attached hereto. It is commonly known as Lot 92 of the San Luis Obispo Suburban Tract and referred to herein as the "subject property" . EXCEPT as provided herein development of the subject property will be controlled by San Luis Obispo City Ordinance No. adopted , when the property is 1 annexed to the City of San Luis Obispo. III. Subject property is a part of a proposal submitted by Southern California Gas Corporation to annex a portion of unincorporated territory South of the City of San Luis Obispo into the City, and thereby bring said properties under the control of the City of San Luis Obispo, in particular Ordinance No. TV. The development of the subject property in accordance with Exhibit "A" will provide for orderly growth and development or the area and it is consistent with the City's General Plan and the City's planning goals and objectives. V. The parties anticipate the successful annexation of the properties South of the City of San Luis Obispo into the City, and the creation of various assessment districts which will construct large-scale improvements near the subject property and adjoining properties. Those improvements will benefit the City, Owner and adjoining property owners and will be financed by secured real property assessments against the affected properties in proportion to the benefits conferred by the improvements. Said benefits shall be conferred upon, and assessed against, all portions of the subject property and other adjoining affected properties. Owner will incur substantial engineering, design and other expenses prior to the annexation and the formation of the Assessment Districts. Owners will be subject to substantial expense to repay the cost of construction of improvements through the Assessment Districts. In anticipation of the completion of the annexation and the subsequent formation of Assessment Districts, the Owner will file and the City approve, subject to various conditions, a development advocating a retail store selling general merchandise, approximately 86,479 square feet, and additional commercial stores, offices and commercial service uses shown on Exhibit W . The condition of this development requires the Owner to construct onsite and offsite improvements more extensive and costly than would normally be imposed for such developments under existing City policies and standards. Such improvements are designed to ultimately serve not only the 2 subject property but also neighboring properties and the remaining portions of the subject property at the intensities of use authorized by the City of San Luis Obispo. It is intended that these conditions will be satisfied by the Assessment Districts for the purpose of constructing offsite improvements. Owner and City intend that, from time to time during the term of this Agreement, Owner shall submit plans for development covering the remaining portions of the subject property in accordance with the approved uses, and their intensity. In addition, provisions for dedication of land for public purposes shall be as authorized by the approved development conditions set forth by the City. VI. Assurances are hereby granted to Owner by this Agreement that Owner will be able to develop to completion the subject property substantially as shown by Exhibit "A" and in accordance with the approved Land Use Permits. Without these assurances, Owner could not economically consider participation in Assessment Districts as proposed, not could Owner have agreed to the extensive conditions placed upon the development through the Land Use Permit process. VII. The proposal for the development of the subject property as shown by Exhibit "A", together with the proposals for assessments in accordance with the program established by the City, are incoporated herein by this reference. THE PARTIES THEREFORE AGREE AS FOLLOWS: A. This Agreement shall apply to Lot 92 of the San Luis Obispo Suburban Tract. The parties agree that the proposal for the development of the subject property (as per Exhibit "A" ) is a private development and is described as as follows: Phase I: General Merchandise and Retail Component: Property will be graded to drain to storm drain crossing property. A drain will be constructed on the Southerly side of the subject property (next to Lots 1 and 93 of the San Luis Obispo Suburban Tract shown on Exhibit "C" ) , to a storm drain. Drop inlets will feed the underground storm drain in the parking lot. 3 These masonry buildings will be constructed including an elongated building (approximately 20,000 square feet) housing a row retail stores and financial offices ; and a general merchandise store building (approximately 86, 000 square feet) with a garden center annex (approximately 6,000 square feet) . A parking lot will be constructed in conjunction with Phase I accommodating approximately 469 off-street parking spaces. The lot will be graded to drain to underground storm drains and overlaid with concrete asphalt to City specifications. Curbed landscaped islands and planting strips will be located throughout the lot . The property will be accessed by way of two concrete driveway approaches from Broad Street. The most Southerly driveway approach will have left-hand turn center island channels in and out from the property. Driveways around the general merchandise store will allow access from two concrete driveway approaches from Sacramento Drive. Phase I will commence after the date of annexation. Phase II: Business Offices and Commercial Services Component: A public service building (approximately 4, 000 square feet) will be constructed fronting on Broad Steet which will house a financial institution or food services use. One two story building comprising of business offices, wholesale and retail agencies, contractors and commercial services (approximately 25, 200 square feet) will be located behind the general merchandise store building and oriented to Sacramento Drive. The building will be coordinated in appearance with other buildings on the property. A parking lot accommodating 120 off-street parking spaces will be constructed to City specifications. Curbed landscaped islands and planting strips will be located within and around the parking. At the option of Owner, Phase II may be developed concurrently with Phase I. The following improvements will be installed in accordance with City specifications by Owner: 4 (1) Street lighting on Broad Street at Phase I and on Sacramento Drive at Phase II. Onsite lighting will be composed of low level landscape pathway standards and decorative lamp-posts near the buildings. Overhead mercury-vapor area lights will be strategically placed over the parking area. (2) Street trees on Broad Street at Phase I and on Sacramento Drive at Phase II. (3) Sidewalk, curb and gutter on Broad Street with driveway approaches at Phase I and street improvements including curb, gutter, sidewalk, pavement and driveway approaches on Sacramento Drive at Phase II. (4) Fire hydrants at locations designated by the Fire Chief. Sprinkling systems will be installed in the buildings as required by the adopted Uniform Codes. (5) Water hookup to the City water system for domestic and firefighting use only. On-property wells and water lines operated by the Owner for irrigation and nonpotable industrial uses. Well tests will be supplied to the City in advance of development permits. (6) Sewer laterals to Phase I and Phase II. (7 ) Reconstruction and improvement of drainage, drainage courses, channels and facilities for the subject property only as per drainage plan submitted to and approved by the City Engineer. (8) Payment of fees in an amount not to exceed $ for water, sewer and lift station improvements by City. Sewer lines and water lines for domestic and fire fighting purposes will be constructed to each building. (9) Paved, striped and blocked off-street parking for approximately 469 vehicles in Phase I and approximately 120 vehicles in Phase II. (10) Landscaping in accordance with a plan approved by City. Drought resistant plant materials will be used and irrigated by a drip system supplied by an on-site well operated by Owner. Sidewalk and Plaza amenities installed as per landscape plan. 5 (11) On-site indentification signs approved by the City in accordance with a planned sign program approved by the City. (12) Owner will furnish to City a copy of any Articles 4 Incorporation for a Merchants Association and any Shopping Center Rules and Regulations if initiated by the Owner. B. The term of this Agreement shall commence upon the anne7? '.ion of the property to the City of San Luis Obispo, and shall extend for a period of ten (10) years thereafter, unless said term is extended by circumstances described in Section E or M of this Agreement by mutual consent of the parties. C. During the term of this Agreement, the permitted uses of the subject property, and the terms and conditions of development applicable to the subject property shall be limited to those set forth in the approval of the Land Use Permit and implemented at the time of development. Owner may submit working drawings for plan check after approval of this Agreement and during the annexation process. Requirements of the "S" overlay zone relating to public improvements shall call for compliance at the time of development. Assessments and fees for off-site improvements shall be paid at the time building permits are issued. D. During the term of this Agreement, City may apply only such new or modified regulations and official policies which are not in conflict with those in effect on the date of execution of this Agreement. This Section, however, shall not preclude the application to the development of the subject property of changes in City regulations or policies, the terms of which are specifically mandated and required by changes in state or federal laws. In the event that such changes in state or federal laws prevent compliance with one or more provisions of this Agreement in implementation of the project, the parties shall take action pursuant to Section E and M of this Agreement. This Section D shall not be construed to limit the obligation of the City to hold necessary public hearings, or to limit discretion of the 6 City with regard to regulations which require the exercise of discretion by the City. However, subsequent discretionary actions shall, whenever possible, be exercised in conformance with this Agreement and with the official policies of the City which are in effect on the date of execution of this Agreement. They shall not frustrate development of the subject property for the uses and to the intensity of development set forth in the Land Use Permit. E. In the event that governmental laws or regulations enacted after the effective date of this Agreement or action by any lending institution involved in financing the project, prevent full compliance with any provision of this Agreement, the parties agree that the provisions of this Agreement shall be modified, extended or suspended as may be necessary to comply with such requirement. Each party agrees to extend to the other, its prompt and reasonable cooperation in so modifying this Agreement or approved plans. F. The City application feess processing fees, inspection fees or other fees that are created or increased during the term of this Agreement shall apply to development of the subject property provided that: (1) Such fees apply to all private projects or works within the City. (2) Their application to development of the subject property is prospective only. (3) Their application to development of the subject property would not conflict with the terms, spirit and intent of this Agreement, nor frustrate implementation or require amendment to the approved project. G. Other than as reflected in the approved project, or any conditions associated therewith, the City does not contemplate the necessity for additional reservation or dedication of portions of the subject property for public purposes. Any reservations and dedications for those designated purposes in those portions of the property shall be imposed in accordance with the City ordinances, standards and policies in effect upon the date of entry of this Agreement. 7 H. The following fair share fees in conjunction with the establishment of an assessment district will include the following off-site improvements: (1) Contribution to water main replacement and looped fire protection system. The cost to be divided among annexing properties on the basis of area. (2) Contribution to the construction of traffic signals at Capitolia Way and Broad Street in the amount of one- third (1/3) of its total cost. The cost would be divided amount the annexing properties on the basis of area. (3) Contribution for the extension of Sacramento Drive between Capitolia Way and Orcutt Road, some of which will be paid by Southern California Gas Company under a previous agreement and the remaining $60,000.00 to be divided amount the other annexing properties on the basis of area. An alternative plan would require the adjoining property owner to pay for the cost of improvements at the time of the development of that property in accordance with the standard requirements for the proposed land uses. Cost for any improvements in excess of that which is required for the adjoining land would be pro-rated amoung Southern California Gas Company and benefiting property owners on the basis of area. (4) Contribution for the landscaped median on Broad Street along fronting properties between Capitolia Way and Tank Farm Road left-hand turn pockets will be as approved by the City of San Luis Obispo and the cost divided among annexing properties on the basis of area. (5) Contribution for the Southern Pacific Railroad grade separation at Orcutt Road; no boundaries for the assessment district have been determined and no cost estimate made. (6) Contribution for the intersection improvements at Broad Street and Orcutt Road; no boundaries for assessment have been set and no cost estimate made. (7 ) Contribution for the drainage improvements to prevent downstream flooding; no project has been authorized nor have cost estimates been made. 8 Total contribution for all assessments shall not exceed In the event that the anticipated formation of Assessment Districts does not occur; or in the event that affected properties neighboring the subject property are not included within the Assessment District, then the City shall consider: (1) Pursuant to California Government Code Section 66485 et. seq. , reimbursement of Owner from proceeds collected as fees assessed against future development of the affected neighboring properties for the portion of the cost of improvements in the amount equal to the difference between the amount it would have cost Owner to install such improvements to serve the subject property and the actual cost of such improvements. (2) Said reimbursements shall be paid in conformance with a "Plan for Collection of Fees and Reimbursement, " to be prepared by the Owner and submitted for review and approval by the City of San Luis Obispo, prior to the approval of any building permit. Said "Plan for Collection of Fees and Reimbursement" shall include a specific term during which reimbursement shall be paid and a map of properties which are subject to development and benefit from improvements constructed by the Owner. Fees proposed shall be based on actual cost of improvements. I. Nothing in this Agreement shall be interpreted to allow reduction of the Owner's entitlement less than that which was approved by the City of San Luis Obispo. Said Agreement shall not terminate merely by reason of Owner's proposing a change in land use. Rather, this Agreement shall be interpreted to mean that the City approval of any changes to the project shall be subjet to the normal procedures required for zoning and land use changes. Said Agreement shall not apply to proposed changes in circulation, relocation of buildings in the project, or in substantial changes of improvements on the property shown on the approved Development Plan. 9 J. This Agreement may be amended in writing from time to time by mutual consent of the parties hereto and in accordance with the provisions of Government Code Section 65868, provided that: (1) Any amendment to this Agreement which does not relate to the term, permitted uses, intensity of use, size of buildings, provisions for reservation of land, requirements relating to subsequent discretionary actions, or any conditions relating to the use of the subject property shall not require a public hearing before the parties may execute an amendment hereto unless such a hearing is required by local ordinance or state law. (2) Any non-substantial deviations from the approved development as determined by the Planning Director and Director of Public Works, with respect to the location of buildings and configuration, configuration of parking, or other physical facilities do not require an amendment to this Agreement. K. City shall, after twelve (12) months from the commencement of this Agreement and each twelve (12) months thereafter, review the extent of good faith substantial compliance by Owner with the terms of this Agreement. Such review shall be limited in scope to compliance with the terms of this Agreement pursuant to California Government Code Section 65865.1. Notice of such annual review shall include the statement that any review may result in amendment or termination of this Agreement. A finding by City of good faith compliance by Owner with the terms of this Agreement, or a lack of finding to the contrary, shall conclusively determine good faith compliance up to and including the date of said review. The City shall deposit in the mail to Owner a copy of all staff reports and, to the extent practical, related Exhibits concerning contract performance at least thirty (30) calendar days prior to any such periodic review. Owner shall be permitted an opportunity to be heard orally or in writing regarding its performance under this Agreement before the City Council, or, if the matter is referred to the City Planning Commission, before said Commission. 10 L. Written notices and communications between City and Owner shall be sufficiently given if dispatched by prepaid first class mail, certified, return receipt requested, to the addresses provided hereinabove or to such other persons and addresses as either party may from time to time designate. M. Performance by either party hereunder shall not be deemed to be in default where delays are due to war, insurrection, strikes, building moratoriums, walkouts, riots, floods, earthquakes, fire casualties, acts of- God, restrictions imposed by other governmental entities, demonstrated inability of Owner to obtain financing, enactment of conflicting state or ` federal laws or regulations, new environmental regulation, litigation, or similar bases for excused performance. An extension of time for such cause shall be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. N. Default, Remedies, Termination: 1. The parties agree that unless this Agreement is terminated pursuant to the provisions of this Agreement and/or violation of existing ordinance or law, this Agreement shall be enforceable by any party hereto notwithstanding any change hereafter in any applicable plan, regulation or policy adopted by the City, which change alters the regulations and policies applicable to the development of the subject property at the effective date of this Agreement, as provided by Government Code Section 65866. 2. Subject to extensions of time by mutual consent in writing, and subject to the provisions of Sections E and M, failure by either party to perform any provision of this Agreement shall constitute a default. In the event of alleged default of any terms of this Agreement, the party alleging such default shall give the other party not less than thirty (30) days notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured. During such thirty (30) day period, (or such longer period during which the charged party diligently attempts to cure the default) , 11 the party charged shall not be considered in default for purposes of termination or institution of legal proceedings. 3. After notice and expiration of the thirty (30) days (or extended) period, either party to this Agreement at its option may institute legal proceedings pursuant to this Agreement 5 or give notice of intent to terminate the Agreement pursuant to California Government Code Section 65868 and regulations of the City implementing said Government Code Section. Following notice of intent to terminate, the matter shall be scheduled for consideration and review in the manner set forth in Government Code Sections 65865, 65867, and 65868 and City regulations implementing said Section by the City Council within thirty (30) calendar days. Following consideration of the evidence presented in said review before the City Council, either party alleging the default by the other party may give written notice of termination of this Agreement to the other party. Evidence of default my also arise in the course of a regularly scheduled periodic review of this Agreement pursuant to Government Code Section 65865.1 . If either party determines that the other party is in default following the completion of the normal scheduled period review, said party may give written notice of intent to terminate this Agreement, specifying in said notice the alleged nature of the default, and potential actions to cure said default where appropriate. If the alleged default is not cured within thirty (30) days or within such longer period either specified in the notice or during which diligent attempts to cure the default are pursued, or the defaulting party waives its right to cure such alleged default, this Agreement may be deemed terminated at the option of the non-defaulting party. 4. In addition to any other rights or remedies, either party may institute an action of arbitration and collection of attorney's fees to remedy any default, to enforce any covenant or agreement herein, or to enjoin any threatened or attempted violation. Any action initiating arbitration shall follow the Commercial Arbitration Rules, American Arbitration Association. 12 5. The Agreement shall be construed and enforced in accordance with the laws of the State of California. O. In the event of any legal action instituted by a third party or other governmental entity or official challenging the validity of any provision of this Agreement, the parties hereby agree to cooperate in defending said action. P. This Agreement shall bind and inure to the benefit of the parties, their successors and assigns. Owner shall specifically have the right to sell, assign, or transfer this Agreement with all its rights, title and interests therein to any person, firm or corporation at any time during the term of this Agreement, provided that the rights contained herein shall pertain only to the subject property. 13 EXHIBIT "A" REFERRED TO IN DEVELOPMENT AGREEMENT By and between City of San Luis Obispo and 2083 General Partnership, a California corporation, relative to the development known as Lot 92, San Luis Obispo Suburban Tract The approximate location of said property is herein described in the following legal description and map shown below: In the City of San Luis Obispo, County of San Luis Obispo, State of California, Lot 92, San Luis Obispo Suburban Tract, San Luis Obispo County, California. Also identified by Assessor's Parcel No. 4 0 m � u ' 7 'P n W ? U O yl CL �_ o D ^ d ut at of ( ( yy Cfw 0. b Qul > / 10 po it. d \c•:•';.. .: O d e, tr c„ S�Yq a � a C+. Z O o o v _ � . o. cv p p 0 nyi N <p'� I I m - -- / P _ cc Y � I n a a m IW n a i m n I Y ¢ p F D i Z m J a • 7 6 d u m V J 4 0 Q O. Z a• G. � y = o c f .. ; I II s � I �• J O Ile 11 m I I _ kk _ W 'r i