The purpose of this chapter is to establish procedures for the processing of development agreements pursuant to the California Government Code, and to ensure that any property not owned by the City or its Housing Authority that requires an amendment to the City's General Plan enter into a development agreement to provide its fair share of public amenities and infrastructure required to mitigate development impacts.

Development agreements are intended to strengthen the public planning process, to encourage private participation in comprehensive planning and to reduce the economic costs of development by providing earlier vesting than otherwise available under California law. Development agreements are within the total discretion of the city.

The application for a development agreement shall be filed on a form as designated by the City Manager and shall include payment of the required fees to establish a deposit account with the City. Additional funds may be requested and must be paid by the applicant for continued processing of the proposed development agreement and any and all documents and entitlements related to the development agreement, including all costs incurred by City staff and consultants. The proposed development agreement shall be based on the City standard form and shall include adequate consideration to the City. The application shall include submittal of all materials designated on the application form.

Only a qualified applicant may file an application to enter into a development agreement. A qualified applicant is a person who has a legal or equitable interest in the real property which is the subject of the development agreement, or his or her authorized agent. The Director of Community Development may 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(s).

The Director of Community Development shall transmit the proposed agreement to the City Manager. The developer shall meet with the City Manager or his or her designee to negotiate the terms of the agreement.

Once the development agreement is in the correct form as to content, consideration, and language, the proposed development agreement shall be scheduled for public hearing by the Planning Commission, preceded by public notice given as provided in Sections 65090 and 65091 of the Government Code, in addition to any other notice required by law for other actions to be considered concurrently with the development agreement.

The Director of Community Development shall prepare a staff report and recommendation to the Planning Commission based on the areas of review and required findings in Section 9.194.040

The Planning Commission may review four aspects of the development agreement:

The Planning Commission shall only recommend approval, and the City Council shall only approve the development agreement upon finding all of the following:

The City Council shall review the proposed development agreement at a public hearing preceded by public notice given as provided in Sections 65090 and 65091 of the Government Code, in addition to any other notice required by law for other actions to be considered concurrently with the development agreement.

The City Council may approve, disapprove, or approve with modifications the proposed development agreement. Development agreements shall be approved by ordinance. After the ordinance approving the development agreement takes effect, and after it has been executed by the applicant, the City shall formally execute the development agreement. The development agreement shall not become effective prior to execution by the City or any other limitations set out in the development agreement or its adopting ordinance.

Within 10 days after the City executes a development agreement, the City Clerk shall cause a copy thereof to be recorded with the County Recorder of the County of Orange.

The City shall review the development agreement at least every 12 months. The owner shall file a report with the Director demonstrating good faith compliance with the terms of the development agreement, beginning on the first anniversary of execution of the development agreement by the City, and annually thereafter. The annual report shall be filed on a form designated by the City, and the agreement shall provide that failure to file such an annual report amounts to a default under the development agreement.

If the City Council finds and determines, on the basis of substantial evidence, that the owner is not in good faith compliance with the development agreement, the City Council may amend or cancel the agreement pursuant to Section 9.194.070.

The owner shall reimburse the City for all costs of the annual review process.

An amendment to the General Plan for property not owned by the City or Lake Forest Housing Authority shall not be processed unless the applicant concurrently files an application for a development agreement pursuant to Section 9.194.020, as well as applications for any other necessary and related entitlements.

An amendment to the General Plan for property not owned by the City or Lake Forest Housing Authority shall be processed pursuant to procedures and requirements approved and adopted by the City Council, shall not be approved unless a development agreement is first approved by the City Council, and shall not become effective until the development agreement becomes effective.