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Cupertino City Zoning Code

CHAPTER 19

144: DEVELOPMENT AGREEMENTS

19.144.010 Findings and Declaration of Intent.

  1. The California Legislature in Section 65864 of the Government Code has found that the lack of certainty in the approval of development projects can result in a waste of resources, escalate the cost of housing and other development to the consumer, and discourage investment in and commitment to comprehensive planning which would make maximum efficient utilization of resources at the least economic cost to the public. The City Council finds and determines that under appropriate circumstances, development agreements will strengthen the public planning process, encourage private participation in comprehensive planning by providing a greater degree of certainty in that process, reduce the economic costs of development, allow for the orderly planning of public improvements and services and the allocation of costs therefor in order to achieve the maximum utilization of public and private resources in the development process, and assure, to the extent feasible, that appropriate measures to enhance and protect the environment of the City are achieved. The City Council further finds that the lack of public facilities, including, but not limited to, streets, sewerage, transportation, drinking water, school, and utility facilities, is a serious impediment to the development of new housing.
  2. The City Council further finds and determines that the public safety, health, convenience, comfort, prosperity and general welfare will be furthered by the adoption of this chapter in order to provide a mechanism for the enactment of development agreements to accomplish the foregoing purposes and aims and the realization of the benefits.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.020 Purpose of Development Agreement.

Development agreements enacted pursuant to this chapter are to ensure to the applicant for a development project that upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules and regulations, and subject to specified conditions of approval, in order to implement the intent of the City Council in enacting this title. Development agreements will also ensure that all conditions of approval, including the construction of off-site improvements made necessary by such land developments, will proceed in an orderly and economical fashion to the benefit of the City.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.030 Authority for Adoption.

This chapter is adopted under the authority of Government Code Sections 65864 through 65869.5.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.040 Application Requirements.

An application for a development agreement shall include, in addition to the requirements of Chapter 19.12, a development agreement proposal as described in 19.144.060.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011)


19.144.050 Qualification as an Applicant.

  1. Only a qualified applicant may file an application to enter into a development agreement. The Director of Community Development shall require an applicant to submit proof of his or her interest in the real property and of the authority of the agent to act for the applicant. This proof may include a title report, policy or guarantee, issued by a title company licensed to do business in the State evidencing the requisite interest of the applicant in the real property.
  2. Other Parties. In addition to the City and developer, any federal, State or local governmental agency or body may be included as a party to any development agreement. Any additional party shall be made a party to the development agreement pursuant to the provisions of the Joint Exercise of Powers Act (Government Code Section 6500, et seq.) providing for joint powers agreements, or provisions of other applicable federal, State or local law, in order to create a legally binding agreement between such parties.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.060 Proposed Form of Development Agreement.

Each application shall be accompanied by the form of development agreement proposed by the City. This requirement may be met by designating the City's then standard form of development agreement as prepared by the City Attorney and including specific proposals for changes in or additions to the language of the standard form. The City's Proposed Form of Development Agreement shall include the following:

  1. The parties to the development agreement;
  2. The nature of the applicant's legal or equitable interest in the real property constituting such applicant as a qualified applicant under this chapter;
  3. A description of the development project sufficient to permit the development agreement to be reviewed under the applicable criteria of this chapter. Such description may include, but is not limited to, references to site and building plans, elevations, relationships to adjacent properties and operational data. Where appropriate, such description may distinguish between elements of the development project which are proposed to be fixed under the development agreement, those which may vary and the standards and criteria pursuant to which the same may be reviewed;
  4. An identification of the approvals and permits for the development project enacted to the date of or contemplated by the development agreement;
  5. The duration of the development agreement;
  6. The permitted uses of the property;
  7. The maximum height and size of the proposed buildings, and provisions for dedications of land for public purposes;
  8. A program and criteria for periodic review under this chapter;
  9. Appropriate provisions guaranteeing or securing performance of the development agreement on the part of the developer;
  10. Specific standards for periodic review of a development agreement;
  11. Specific standards to insure compliance by the parties to a development agreement;
  12. The Development Agreement may provide that construction shall be commenced within a specified time and that the project or any phase shall be commenced within a specified time and that the project and any phase be completed within a specified time.
  13. Information required in accord with Section 19.140.070;
  14. Any other relevant information which may be deemed necessary by the Director of Community Development pursuant to this chapter.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.070 Contents of a Development Agreement.

  1. A development agreement shall specify its duration, the permitted uses of the property, the density and/or intensity of use, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes.
  2. A development agreement shall attach and incorporate by reference all conditions of approval imposed by the City with respect to the development project.
  3. All development agreements shall contain an indemnity and insurance clause in form and substance acceptable to the City Attorney, requiring the developer to indemnify the City against claims arising out of the development process and limiting the developer's sole remedy to specific performance and thereby eliminating any potential damages to be paid by the City under the development agreement; provided, that, these provisions do not violate applicable law or constitute a joint venture, partnership or other participation in business affairs of developer by the City.
  4. All development agreements, or any part of development agreements, may be subject to subsequent condemnation proceedings by the City.
  5. Community Benefits: At the discretion of the City Council, additional heights over the base height standard in gateways and nodes may be approved up to the maximum heights as shown in the General Plan Community Form Diagram (Fig. LU-1 of the General Plan) in conformance with the Community Benefits Program.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.080 Consistency with General and Specific Plans.

Before the City Council may approve the development agreement, it must find that its provisions are consistent with the General Plan and any applicable specific plans of the City. If the City Council approves the development agreement in the form recommended by the Planning Commission, without further findings, then it shall be deemed to have also adopted the findings of the Planning Commission.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011)


19.144.090 Public Hearing and Ordinance Required.

A development agreement is a legislative act and shall be enacted by ordinance only after a public hearing before the City Council. The ordinance shall refer to and incorporate by reference the text of the development agreement.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011)


19.144.110 Findings.

A Development Agreement shall be enacted by ordinance by the City Council upon making the following findings:

  1. Is consistent with the objectives, policies, general land uses and programs specified in the General plan and any applicable specific plan;
  2. Is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is or will be located;
  3. Is in conformity with and will promote public convenience, general welfare and good land use practice;
  4. Will not be detrimental to the health, safety and general welfare;
  5. Will not adversely affect the orderly development of property or the preservation of property values; and
  6. Will promote and encourage the development of the proposed project by providing a greater degree of requisite certainty.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.120 Irregularity in Proceeding.

Formal rules of evidence or procedure which must be followed in a court of law shall not be applied in the consideration of a proposed development agreement under this chapter and the provisions of Chapter 19.12, shall provide the procedure for such consideration. No action, inaction or recommendation regarding the proposed development agreement shall be held void or invalid or be set aside by a court on the ground of the improper admission or rejection of evidence or by reason of any error, irregularity, informality, neglect or omission ("error") as to any matter pertaining to the application, notice, finding, record, hearing, report, recommendation, or any matters of procedure whatever unless after an examination of the entire case, including the evidence, the court finds that the error complained of was prejudicial and that by reason of the error the complaining party sustained and suffered substantial injury, and that a different result would have been probable if the error has not occurred or existed. There is no presumption that error is prejudicial or that injury resulted if error is shown.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.140 Time for and Initiation of Review.

The Director of Community Development shall review the development agreement annually in order to ascertain the good faith compliance by the developer with its terms. The Developer shall submit documentation as required by the Director of Community Development to demonstrate good faith compliance by the developer of the terms of the development agreement. The time for review may be modified by the City Council at any time upon reasonable notice to the developer, and the development agreement may prescribe a procedure and standards and different times for review of compliance with its terms; provided, however, that a development agreement shall in any event be reviewed for compliance at least once every twelve months.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.150 Finding of Compliance–Appeal.

If the Director of Community Development finds good faith compliance by the developer with the terms of the development agreement, he or she may issue a certificate of compliance, which shall be in recordable form and may be recorded by the developer in the official records. The issuance of a certificate of compliance by the Planning Director and the expiration of the appeal period hereinafter specified without appeal, or the confirmation by the City Council of the issuance of the certificate on such appeal, shall conclude the review for the applicable period and such determination shall be final.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.160 Finding of Noncompliance–Appeal.

If the Planning Director, on basis of substantial evidence, finds the developer has not complied in good faith with the terms of the development agreement, he or she may specify in writing to the developer the respects, in which developer has failed to comply. The Director of Community Development shall also specify a reasonable time for the developer to meet the terms of compliance. If such areas of noncompliance are not perfected within the reasonable time limits as prescribed, the development agreement shall be subject to modification or cancellation by the City Council.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.170 Appeal of Determination.

Any interested person may file an appeal of the issuance of a certificate of compliance to the City Council within ten days after the certificate's issuance. The developer may also file an appeal to the City Council of the finding of the Director of Community Development of noncompliance within ten days after the giving of notice of such determination. All appeals before the City Council shall be conducted pursuant to a noticed hearing in the same manner as any other appeal before the City Council, at which evidence shall be taken and findings made.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.190 Cancellation or Modification by Mutual Consent.

Any development agreement may be canceled or amended by mutual consent of the parties, but only in the manner provided in California Government Code Section 65868. Any proposal to cancel or amend a development agreement shall be heard and determined in accordance with the same procedures specified by this chapter for approval of a development agreement.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.200 Cancellation by the City.

  1. The City Council shall conduct a noticed hearing on the recommendations of the Director of Community Development at which the developer and any other interested person shall be entitled to submit evidence and testimony as may be germane to the issue of the developer's good faith compliance with the terms of the development agreement. If the City Council finds, based on substantial evidence, noncompliance with the terms and conditions of the development agreement, it may either cancel the development agreement upon giving sixty days' notice to the developer, or in its discretion, may allow the development agreement to be continued by imposition of new terms and conditions intended to remedy noncompliance. The City Council may impose conditions to the action it takes as it considers necessary to protect the interests of the City. The decision of the City Council shall be final.
  2. Any cancellation or imposition of new terms and conditions pursuant to this section shall be noticed in accordance with the procedures specified in Chapter 19.12.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.210 Rights of the Parties after Cancellation or Termination.

In the event that a development agreement should be canceled, or otherwise terminated, unless otherwise agreed, all rights of the developer, property owner or successors in interest under the development agreement shall terminate. Any and all benefits, including money or land, received by the City shall be retained by the City. Notwithstanding the above provision, any termination of the development agreement shall not prevent the developer from completing and occupying a building or other improvements authorized pursuant to a valid building permit previously approved by the City or under construction at the time of termination, but the City may take any action permitted by law to prevent, stop, or correct any violation of law occurring during and after construction, and the developer or any tenant shall not occupy any portion of the project or any building not authorized by a previously issued building permit. As used herein, "construction" means work under a valid building permit, and "completing" means completion for beneficial occupancy for developer's use, or if a portion of the project is intended for use by a lessee or tenant, then for such portion "completion" means completion except for interior improvements such as partitions, duct and electrical runouts, floor coverings, wall coverings, lighting, furniture, trade fixtures, finished ceilings, and other improvements typically constructed by or for tenants of similar buildings. All such uses shall, to the extent applicable, be deemed nonconforming uses and shall be subject to the nonconforming use provisions of the planning code.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.220 Rules Affecting Development Agreement.

All development agreements shall be subject to the regulation and requirements of the laws of the State, the Constitution of the United States and any codes, statutes or executive mandates and any court decisions, State or federal. In the event that any such law, code, statute, mandate or decision made or enacted after a development agreement has been entered into prevents or precludes compliance with one or more provisions of the development agreement, then such provisions of the development agreement shall be modified or suspended in the manner and pursuant to the procedures specified in the development agreement, as may be necessary to comply with such law, code, statute, mandate or decision.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.230 Separate Procedure.

All development agreements entail and consist of a separate procedure from other land use planning procedures and shall not take the place of the zoning ordinances, the General Plan, planned development permits, development permits, conditional use permits, subdivision approvals, building permits or any other City planning functions. If so specified in the development agreement, it shall constitute an approval pursuant to such planning procedures as if separately enacted under other City planning ordinances. To the extent practicable, public hearings on a proposed development agreement shall be held concurrently with the public hearings on all related land use approvals and all such approvals shall be made concurrently with the approval of the development agreement.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 2056, (part), 2010; Ord. 1256, (part), 1984)


19.144.240 Effect of Development Agreement.

When approved, the development agreement and any development control maps and all notations, references and regulations which are a part of the development agreement shall be part of the development agreement ordinance. Development control maps include, but are not limited to, regulations intended to carry out any plan respecting location or type of activities; height, bulk, siding or design of structures; location or design of open areas; and landscaping and other comparable regulations.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.250 Construction.

This chapter and any subsequent development agreement shall be read together. With respect to any development agreement enacted under this chapter, any provision of such a development agreement which is in conflict with this chapter shall be void. Unless otherwise provided by the development agreement, the City's rules, regulations and official policies governing permitted uses of the land, governing density and governing design, improvement and construction standards and specifications applicable to development of the property subject to a development agreement shall be those City rules, regulations and official policies in force at the time of the approval of the development agreement by the City Council; provided, however, that the developer is subject to all increases in City imposed fees and charges with respect to subsequent applications for development and construction within the property subject to a development agreement.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.260 Execution and Recordation of Development Agreement, Amendment or Cancellation.

  1. Within ten days after the ordinance approving the development agreement takes effect, the City Council shall execute the development agreement, and the City Council Clerk shall have the development agreement recorded with the County Recorder.
  2. If the parties to the development agreement or their successors in interest amend or cancel the development agreement as provided in Government Code Section 65868, and this chapter, or if the City Council terminates or modifies the development agreement as provided in Government Code Section 65865.1 and this chapter for failure of the developer to comply in good faith with the terms or conditions of the development agreement, the City Council Clerk shall, after such action takes effect, have notice of such action recorded with the County Recorder.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)


19.144.270 Judicial Review–Time Limitation.

Any action or proceeding to attack, review, set, set aside, void or annul, any decision of the City pursuant to this chapter shall not be maintained by any person unless the action or proceeding is commenced within ninety days after the date of decision as provided in Section 1094.6 of the Code of Civil Procedure, State of California.

(Ord. 14-2125, § 10 (part), 2014; Ord. 2085, § 2 (part), 2011; Ord. 1256, (part), 1984)