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San Marcos City Zoning Code

CHAPTER 20

540 - DEVELOPMENT AGREEMENTS

Section 20.540.010 - Purpose and Intent

This Chapter provides for the following:

A.

Minimize the waste of resource and escalation in the cost of housing and other development arising from uncertainties inherent in the approval of such projects; and

B.

Provide assurances to applicants for development projects, that upon approval of a project, they may proceed with development in accord with the rules, regulations, and policies in effect at the time of approval.

Section 20.540.020 - Applicability

A.

Any residential, commercial, office/professional, or industrial project meeting the following minimum qualifications shall be eligible for consideration of a Development Agreement:

1.

The minimum staging/phasing period for all projects shall be four (4) years.

2.

The minimum number of units for residential projects shall be two hundred fifty (250).

3.

The minimum gross building square footage for commercial, office/professional, and industrial ("business") projects shall be 250,000 square feet.

4.

Mixed use projects shall qualify for consideration upon meeting the requirements of subsections A.1, and 2, or 3, above.

B.

All public service projects shall be eligible for a Development Agreement in accordance with this Zoning Ordinance. The term "public service project" means all projects that provide a public service, public facilities, or both, whether initiated by a public agency or by a private party pursuant to a contract with a public agency. Public service projects include parks, court facilities, libraries, public transit facilities, solid waste services or facilities, fire service or facilities, water or sewer services or facilities, or other projects providing public facilities or services.

Section 20.540.030 - Applications

A.

Initiation. A Development Agreement may be initiated by an application of one (1) or more qualified applicants. A qualified applicant shall mean a person having legal or equitable interest in the real property that is the subject of the agreement. Applicant shall include the duly authorized agent of such persons.

B.

Application and Content. Application for a Development Agreement shall be made in writing to the Planning Division on a form prescribed by the Director. All applications shall be accompanied by the following:

1.

A map drawn to suitable scale showing the following:

a.

The limits of property covered by the proposed agreement,

b.

The Assessor's Parcel Numbers of all parcels shown, and

c.

All streets within or abutting the subject property and all recorded easements affecting it.

2.

A current title policy or title report for all affected parcels, if required by the Director.

3.

A proposed agreement containing the following:

a.

A legal description of the subject property.

b.

The duration of the agreement.

c.

Permitted use of the property.

d.

Permitted density or intensity of development.

e.

The maximum permissible height and size of proposed buildings and other pertinent development criteria.

f.

Provisions for reservation or dedication of land for public purposes.

g.

A provision that, unless otherwise exempted by terms of the agreement, the rules, regulations, and policies governing permitted use and density/intensity of use of the land, and the design, improvement and construction standards/specifications applicable to its development, shall be those rules, etc. in force on the date the agreement is executed.

h.

Notice that the burdens of the agreement shall be binding upon, with its benefits inuring to, all successors in interest to the parties thereto.

i.

Notice that in the event of subsequently enacted State or federal laws or regulations preventing or precluding compliance with one (1) or more provisions to the agreement, such provision(s) shall be modified or suspended, as appropriate.

4.

A completed Environmental Initial Study Form (Part I).

5.

Such additional information or materials as the Director considers necessary to process the application.

C.

Optional Provisions. A Development Agreement may, at the discretion of the Director, include the following additional provisions:

1.

Conditions relative to financing of necessary public improvements/facilities and subsequent reimbursement over time, if applicable;

2.

A schedule for commencement and completion of the project and any phases thereof, including both private and public improvements;

3.

Conditions, terms, restrictions, and requirements for any subsequent discretionary action(s) by the City, provided that such conditions shall not prevent or preclude development of the land for the uses, and to the density/intensity of use, set forth in the agreement; and

4.

Any other terms or conditions agreed to by the parties.

D.

Form of Agreement. The City Attorney shall prepare a standard Development Agreement form that shall contain all of those elements listed in Section 20.540.030.B.3 (Application and Content) above, and may address any other provision permitted by law, including those listed in Section 20.540.030.C (Optional Provisions). An applicant may submit an alternate form of agreement, use of which shall be subject to approval by the Director.

E.

Fee. The application shall require payment of a fee as established in the City's fee schedule.

F.

Environmental Review. A Development Agreement that qualifies as a project under CEQA shall be subject to environmental review in accord with CEQA and Title 18 of this Code (Environmental Review).

G.

General Process. The process for review of Development Agreements is generally illustrated in Figure 20.540-1, "Development Agreement Process."

Section 20.540.040 - Notice and Hearings

A.

Notice. Notice of intention to consider adoption of a Development Agreement and of other public hearings required by this chapter shall be given as provided in Government Code Sections 65090 and 65091 and Chapter 20.505 (Noticing and Public Hearings). The failure of any person to receive lawfully required notice of any hearing prescribed herein, shall not affect the authority of the City Council to enter into a Development Agreement.

B.

Planning Commission. Applications accepted by the Director as complete shall be considered in public hearing by the Planning Commission. Where applicable, Development Agreement request shall be considered concurrently with other discretionary permits or approvals for a project. Upon completing the public hearing, the Planning Commission shall render its decision in the form of a resolution recommending approval, modification, or disapproval of the agreement to the City Council. The resolution shall include the Planning Commission's determination on findings listed in Section 20.540.040.C (City Council), below.

C.

City Council. Upon receipt of the Planning Commission resolution, the City Clerk shall set the matter for public hearings before the City Council. Upon completing such hearings, the City Council may approve, modify, or disapprove the Development Agreement. Matters not previously considered by the Planning Commission in its deliberations may be referred back to the Planning Commission for report and recommendation. The Planning Commission need not hold a public hearing on such referrals. The City Council shall not approve a Development Agreement unless it finds in writing that the agreement is consistent with:

1.

The goals, policies, objectives, land uses, and programs of the General Plan and any applicable Specific Plan; and

2.

The provision of Government Code Sections 65864 through 65869.5.

Section 20.540.050 - Decision

Development agreements shall be adopted by ordinance and are subject to referendum. The ordinance shall authorize the City Manager to sign the agreement on behalf of the City.

Section 20.540.060 - Duration of Agreement

Each ordinance adopting a Development Agreement shall specify the date upon which the agreement will expire. In establishing the duration of an agreement, the Planning Commission and City Council shall consider the following:

1.

The degree to which the proposed time frame may preempt or impair effective long-range planning for the area;

2.

Permitted use of surrounding properties and the potential for their development over the life of the agreement;

3.

The nature, size, and complexity of the project covered by the agreement;

4.

Proposed phasing and construction intervals for the project; and

5.

Short-term versus long-term market demand for the project.

Section 20.540.070 - Irregularity in Proceedings

No action, inaction, or recommendation regarding a proposed Development Agreement shall be held void or invalid or be set aside by a court by reason of any error or irregularity more specifically set forth in Government Code Section 65801.

Section 20.540.080 - Recordation

Within ten (10) days of the date on which the City enters into, amends, or terminates a Development Agreement, the City Clerk shall have the agreement, amendment, or notice of termination recorded with the County Recorder.

Section 20.540.090 - Review

A.

Each Development Agreement shall be reviewed administratively by City staff at least every twelve (12) months. In the course of such review, the applicant or successor in interest thereof shall be required to demonstrate good faith compliance with the terms and conditions of the agreement. Upon a finding by the Director that substantial compliance has not been achieved, the matter shall be referred for review by the City Council.

B.

Should the City Council determine on the basis of substantial evidence, that one (1) or more terms or conditions of the agreement have not been complied with in good faith, it may initiate proceedings to modify or terminate the agreement. Council action to modify or terminate the agreement shall be taken in public hearing, after written notice of the Council's intent has been given to the other party. Such notice shall contain the following:

1.

The time and place of the hearing.

2.

A statement as to whether or not the City Council intends to modify or terminate the agreement.

3.

A list of the terms or conditions of the agreement that have not been complied with in good faith and a summary of the factual basis upon which the determination of noncompliance was made.

C.

In modifying an agreement, the City Council may, as part of its final determination, impose such conditions as it considers necessary and appropriate to protect the City's interests.

D.

The decision of the City Council to modify or terminate an agreement shall be final. Any court action or proceeding by the applicant or its successor in interest to attack, review, set aside, void, or annul any decision or determination of the Council shall be commenced within thirty (30) days.

Section 20.540.100 - Amendment and Cancellation

Any Development Agreement may be modified, or terminated in whole or in part, by mutual consent of the applicant (or its successor in interest) and the City, or it may be modified or terminated by the City pursuant to Section 20.540.090 (Review) above. The parties to an agreement may also set forth an alternative procedure in the Agreement for processing insubstantial amendments. In such event, alternative procedures shall include a precise definition of the term "insubstantial amendment."