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HomeMy WebLinkAbout1995-05-16; City Council; 13145; COUNCIL POLICY STATEMENT REGARDING USE OF DEVELOPMENT AGREEMENTSz 3 0 0 new development fees or increasing the development fees in place at thc approval of the Agreement so long as such fees are applied generally to othei in the City. (Sections 11 and 13, Pages 6 and 7) - 1 PAGE 2 OF AGENDA BILL NO. f 3 1 q 5 7. It contains detailed procedures for processing and negotiating a Develapment Agrl including: A. The establishment of a -/-member Staff Development Agreement Committee. A secondary review process for early feedback from the City Cor whether a project qualifies for consideration of a Development Agr and whether the Staff Review Committee is authorized to en negotiations on a proposed Agreement. The right of the City to prepare the initial draft of the Agreement. Staff is recommending that the City Council adopt the Council Policy Statement on Devel Agreements. Staff will then be able to use the policy in discussing the feasibility of Devel Agreements with project applicants and in negotiating the terms of a proposed Agree1 8, C. EXHIBITS 1. Proposed Council Policy Statement No. 56 CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. 56 Date Issued May 16, Effective Date May 1 C Cancellation Date __ General Subject: DEVELOPMENT AGREEMENTS Supersedes No. Specific Subject: Policy for use of Development Agreements pursuant to California Gover Section 65864 et seq. (:epics to; City Council, City Mrrnrrgcr, City Attorney, Dcpartmcnt of Division of I Icxls Bulletin Boards, Press, File BACKGROUND: The City Council has from time to time been requested by property developers of major planned development projects to enter into Developmen in order to "vest" in the applicant the right to build the project. Government Code Sections 65864 through 65869.5, authorizes a city to Development Agreement with a private property owner or developer, bas following Legislative findings: "(a) The lack of certainty in the approval of development projects can res of resources, escalate the cost of housing and other development to tl would make maximum efficient utilization of resources at the least el to the public. Assurance to the applicant for a development project that, upon a1 project, the applicant may proceed with the project in accordance policies, rules and regulations, and subject to conditions of approval, \I the public planning process, encourage private participation in c( planning, and reduce the economic cost of development." A Development Agreement is an appropriate mechanism by which thc developer may establish certainty that the developer will be allowed to deve project following its approval by the City, and by which the City and the d contractually commit to perform their respective obligations regarding the and discourage investment in and a commitment to comprehensive pl (b) PURPOSE: To establish a policy regarding the requirements which must be met bi Council will approve a Development Agreement. To establish a procedure for processing applications for and negotiating 1 Development Agreement and a staff review committee to apply the requirt policy to such applications and negotiations. 1 e 0 CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. 56 Date Issued Mav 16, Effective Date May 1 Cancellation Date - General Subject: DEVELOPMENT AGREEMENTS Supcrsedes No, Specific Subject: Policy for use of Development Agreements pursuant to California Goveri Section 65864 et seq. City Council, City Manager, City Attorney, Department of Division of Heads, Bulletin Boards, Press, File Copies to: It is not the intent of this policy to relieve any developer of responsibiliti improvements or conditions of development related to the subdividing of processing of tentative or final parcel maps, the approval of permits or develo or the approval of master plan developments. POL1 CY: 1. Determinations to be Made by City Council, The City may approve a Agreement under the provisions of this policy where the City Council de following: a) The proposed development is in the interests of the City; b) The proposed development is a well-planned, comprehensive ( involving more than one building, more than one phase of developrr other condition that the City Council considers justification for er Development Agreement; The proposed development will require a substantial expenditure by of time, predevelopment costs and "holding" costs prior to the appro and other land use entitlements; The proposed development will require a substantial expenditure by to design and construct public infrastructure facilities that wil community; The proposed Development Agreement is consistent with the requirc Policy: The proposed Development Agreement includes legally binding cor the applicant to provide substantial public benefits over and above th applicant would otherwise be obligated to provided as a conditi approval in the absence of a Development Agreement; and It is unlikely that the proposed development, including the public I derived therefrom, would occur when and as provided in t Development Agreement in the absence of the vesting assurances ir the proposed Development Agreement. c) d) e) 9 g) 2. Tvpes of Projects. Projects which may be considered for a Development A< be residential, commercial, industrial, recreational or mixed-use. / 0 0 CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. 56 Date Issued May 16, Cancellation Date Effective Date May 16 I General Subject: DEVELOPMENT AGREEMENTS Supersedes No. Specific Subject: Policy for use of Development Agreements pursuant to California Governr Section 65864 et seq. City Council, City Manager, City Attorney, Department of Division of Heads, I Bulletin Boards, Press, File Copies to: 3. Cost of Processinq and Neqotiatinq. Upon application for a Development Agrf in addition to any base application fee, the applicant shall deposit with the Ci credit or funds in a sum sufficient to pay all City fees and costs in connection and negotiation of the Development Agreement, including without limitation, preparing an environmental impact report, financial feasibility or other econorr models and studies which may reasonably be required, and the cost of C consultants, including legal counsel, to be incurred in the review and negc proposed Development Agreement. The City shall be entitled to draw down c as costs are incurred and shall report to the applicant periodically during the negotiation period. The Proiect Site. A Development Agreement shall apply only to real properl City of Carlsbad owned by the applicant or with respect to which the appli equitable interest that would permit the applicant to carry out its obligations the proposed Development Agreement. To satisfy this requirement, the ap demonstrate at the time of application, that the applicant either owns the pro long-term lease (with a remaining term of at least 30 years), an option to F other equitable interest in the property, sufficient to permit the applicant to obligations pursuant to Development Agreement. In addition, the applicant r full and complete disclosure of the identity of any other property owners or c approval will be required to permit the proposed development, and shall be for obtaining all such approvals. The Development Agreement shall not purpo or otherwise directly affect any property other than that which is the su Development Agreement. The Applicant/Developer. A Development Agreement may include property tl and/or controlled by one or more entities. The application for a Developmen shall be made by or on behalf of all such owners (collectively referred to in t the "applicant"). The Development Agreement shall identify each such proposed developer(s) of the property and shall require that any changes owner or proposed developer(s) must be approved by the City. At the time ol the applicant shall provide full and complete disclosure of the identity of tht principals, partners and, to the extent then known, the development team (i.E general contractors, etc.). If a development team has not been selected a application for the Development Agreement, the Agreement shall provid 4. 5. I 0 e CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. 56 Date Issued May 16, Effective Date May 1t Cancellation Date General Subject: DEVELOPMENT AGREEMENTS Supersedes No. Specific Subject: Copics to; Policy for use of Development Agreements pursuant to California Govern Section 65864 et seq. City Council, City Manager, City Attorney, Department of Division of Heads, Bulletin Boards, Press, File selection is subject to the approval of the City. During the term of the [ Agreement, the City shall have the right to approve or disapprove an) assignment of any part of the property that is subject to the Development Agr applicant may not assign the Development Agreement, in whole or in part prior written consent of the City. The City may impose reasonable conditic approval of assignments or transfers of the Agreement or the property, or necessary to ensure that the project approved by the City will be developed in with the Development Agreement. - Scope of Development. A Development Agreement shall include a full desc proposed project to be developed, with such detail regarding land uses, der intensity, design, improvement and construction standards and specificatior may determine appropriate. The Scope of Development shall incorporate all approval imposed by the City. The Development Agreement shall commit ' to construct the project within the limitations of the Scope of Develop otherwise approved by the City. Detailed site development plans shall be 1 Scope of Development. 6. 7. Schedule of Performance. A Development Agreement shall include a performance, setting forth the respective times by which the parties are to respective obligations under the Agreement. At a minimum, the Agreement the applicant or developer, with respect to each component of the project, its plans, construct or install all required infrastructure, satisfy all other ( approval, provide the public benefits as listed in the Development Agreem and complete construction within a given time as set forth in the schedule of The times of performance shall be subject to force majeure delays and to E the prior written consent of the City. The City may condition extensions of t payment of fees or other consideration as it deems appropriate. Method of Financinq. A Development Agreement shall contain a desci applicant's proposed method of financing both public and private portions [ including any infrastructure and other public benefits to be provided by the a Policy does not obligate the City to provide, guarantee or facilitate any fi private development project as the result of entering into a Development Ai a case-by-case basis, the City may agree to include as part of a Developme 8. 0 0 1 CITY OF CARLSBAD Policy No. 56 Date Issued May 16, Effective Date May 16 Cancellation Date - COUNCIL POLICY STATEMENT Gene r a1 Subject : Supcrscdcs No. Specific Subject: DEVELOPMENT AGREEMENTS Policy for use of Development Agreements pursuant to California Goveri Section 65864 et seq. Copies to: City Council, City Manager, City Attorney, Department of Division of Heads, Bulletin Boards, Press, File its commitment to provide, guarantee or facilitate financing needec improvements or facilities in connection with a project, in accordance \ applicable rules, regulations and City policies. Required Infrastructure. A Development Agreement shall contain a detailed li: site and off-site public facilities and improvements required in connection wit project, the method of financing for each such improvement or facility and its construction or installation. The Agreement may require the applicant to fi construct infrastructure: a) b) c) 9. That benefits other property in addition to the property subject to thc In accordance with a schedule that requires the completion of the before it is needed for the development project; and As a condition of the issuance of building permits for some or all cc the proposed project. 10. Additional Public Benefits. A Development Agreement shall obligate the provide such additional public benefits in connection with the proposed projt may deem necessary or appropriate. Such additional public benefits shall I to any fees, exactions or conditions which the City otherwise requires of thl a condition of project approval, and may include those which, in the Development Agreement, would require compliance with Government Code - et seq. Such additional public benefits may include, but not be limited to, or monetary contributions to the City which may be applied by the City to ac or more of the following; a) Construction, installation and/or ongoing maintenance or public fa public improvements other than those required as a condition of ai project; Acquisition and/or transfer or dedication of land to the City (or other F for public uses; Acquisition and/or transfer or dedication to the City of land for, df subsidization of public parking; b) c) 0 0 CITY OF CARLSBAD Policy No. 56 Date Issued May 16, Effective Date Mav le Cancellation Date - COUNCIL POLICY STATEMENT Genera 1 Subject : Siipersedcs No. Specific Subject: DEVELOPMENT AGREEMENTS Policy for use of Development Agreements pursuant to California Gover Section 65864 et seq. City Council, City Manager, City Attorney, Department of Division of Heads Bulletin Boards, Press, File Copies to: d) Monetary contributions for sand replenishment programs, ocean testing and research or other programs relating to environmental qui and ocean-front areas of the City; Acquisition and/or transfer or dedication to the City of land for, develoi long-term maintenance of public safety facilities, and/or support for programs and operating costs; Acquisition and/or transfer or dedication to the City of land for, develoi long-term maintenance of public parks and recreational areas or fac support for park or recreational programs and operating costs; Acquisition and/or transfer or dedication to the City of land for, develo long-term maintenance of libraries, and/or support for library pi operating costs; h) Other similar public benefits not specifically designated in this Polic\ The list of particular public benefits, and the amount to be required as contril City, shall be determined on a case-by-case basis with respect to each Agreement, and shall be subject to the approval of the City Council. The am based on factors such as, but not limited to, the economic feasibility of 1 project and the incremental economic benefit to be obtained by the applic: of the Development Agreement. Vestinq Riahts. A Development Agreement shall set forth the following: a) b) Intensity of use; c) d) e) 9 e) 9 g) 11. Permitted use of the property; Maximum height and size of proposed buildings; Provisions for the reservation or dedication of land for public purpo: The conditions of approval, including all environmental mitigation m The "vested rights" of the applicant and its successors to develop tt accordance with the permits and approvals for the property approvt prior to or concurrently with the Development Agreement, the g1 specific plan, other City ordinances, rules, regulations and requirerr on the effective date of the Development Agreement; e e' CITY OF CARLSBAD Policy No. 56 Date Issued May 16 L Effective Date May 1 Cancellation Date - COUNCIL POLICY STATEMENT General Subject: DEVELOPMENT AGREEMENTS Supersedes No. Specific Subject: Policy for use of Development Agreements pursuant to California Goveri Section 65864 9 seq. City Council, City Manager, City Attorney, Department of Division of Heads Bulletin Boards, Press, File Copies to: g) Any exceptions to or limitations on the vested rights. At a rr Development Agreement shall not prohibit the City from imposing new fees or increasing the development fees in place at the time of ap Development Agreement, so long as such fees are applied generall! the City shall have the right to suspend issuing building permits v Council determines that a bona fide emergency situation required thc h) The extent to which the Vested Rights apply to subsequent phases ( Annual Review. A Development Agreement shall set forth a procedure for i by the City of the Developer's compliance with the terms of the Developmer Any determination that the Developer is not in compliance with the Agreement shall be subject to appeal to the City Council. Extendinq Vested Riqhts to Other Proiects Components. In the case of a pro1 applicant, the "vested rights" described in Section 11 of this Policy shall ap portion of the entire property covered by the Development Agreement, as c a case-by-case basis. The City shall extend all or part of the vestec Development Agreement to components of a project, on the basis of wh determines that such project component will provide substantial public ber above those which the applicant would otherwise be obligated to provide i of approval of such component in the absence of a Development Agreemen it is unlikely that the proposed component (including the public benefits therefrom), would be developed when and as provided in the proposed Agreement in the absence of the vesting assurances incorporated in Development Agreement . 14. Other Citv Commitments. A Development Agreement shall set forl commitments made by the City to facilitate the development, including, but the following: a) b) c) 12. 13. containing more than one phase, or a project to be developed by mc Public facilities and improvements to be financed and/or constructe Agreement to establish assessment districts and/or issue bonds to facilities and Improvements to be financed and/or constructed by su( City's agreement to coordinate with other public agencies in connc proposed project. I 0 a CITY OF CARUBAD COUNCIL POLICY STATEMENT Policy No. 56 Date Issued May 16, Effective Date May I( Cancellation Date General Subject: DEVELOPMENT AGREEMENTS Supersedes No. Specific Subject: Policy for use of Development Agreements pursuant to California Govern] Section 65864 et seq. Copies to: City Council, City Manager, City Attorney, Department of Division of Heads, Bulletin Boards, Press, File 15. Applicable Requirements. A Development Agreement shall not supersede ( obligation of the applicant or its successors to pay any otherwise applicable c fee, or to comply with any applicable laws, regulations, ordinances and policit but not limited to: state or federal requirements that take precedenc Development Agreement, including but not limited to the California Environm Act (CEQA) and guidelines implementing CEQA; all applicable health requirements, and any other subsequent city permit and discretionary review rc Term of Aqreernent. The term of a Development Agreement shall be the PE during which the vested riQhts shall remain in effect. Such term shall be dE a case-by-case basis, in light of all the relevant factors, including, but not lii proposed build-out period in the Schedule of Performance. Continuinq Obliqations. A Development Agreement shall obligate the applica long-term maintenance of any public facilities or improvements required by 1 or required as a condition of approval of the project. 18. Additional Provisions. A Development Agreement shall contain such addi conditions and provisions as the parties shall deem necessary or appro[ proposed development project. Form and Content of Aqreement. An applicant may present to the City proposed form of Development Agreement for consideration by the Cit however, that the City shall have the right, in its sole discretion, to prepar replace in its entirety the proposed Development Agreement, and to take res1 drafting and revising the document. A Development Agreement shall haw effect until the City Council approves the final form and content of the I Agreement in accordance with all applicable procedural requirements. 16. 17. 19. - PROCEDURE: 1. An applicant desiring to enter into a Development Agreement with the City an application, signed by all parties proposed to be signatories to thc requesting that the City consider entering into a Development Agreement include the following: t. e 0 CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. 56 Date Issued May 16, Effective Date Mav 11 Can cell at ion Date General Subject: DEVELOPMENT AGREEMENTS Supersedes No. Specific Subject: Policy for use of Development Agreements pursuant to California Govern Section 65864 et seq. City Council, City Manager, City Attorney, Department of Division of Heads, Bulletin Boards, Press, File Copics to: a) b) c) Description of the boundaries of the property proposed for incli Ag reern ent; Disclosure of all persons having a legal or equitable interest in t including any proposed developers of the property; Description of the proposed project, including, but not limited to, Development, Schedule of Performance, Project Budget and propose Financing; and Explanation of how the proposed project meets the criteria set forth in the Policy. d) 2. At the time of application, the City shall inform the applicant of the amount to I with the City in accordance with Section 3 of the Policy. In order for an appl complete, the applicant shall deposit such funds or letter of credit with the 1 It is the intention of the City Council that applicants have an early opportunitl proposal reviewed by City staff for compliance with this Policy. In that reg Council hereby directs the creation of the Development Agreement Revieu considering of the City Manager, City Attorney, Community Developmi Financial Management Director, Finance Director, Planning Director and City F Committee shall meet on request with applicants to review a project to deter1 or not the project qualifies for consideration of a Development Agreemen review shall take place prior to the presentation of the project to City C Committee determines that the project is eligible, the Committee shall pr Council the proposed project with a recommendation to enter into negotiai applicant. The Committee shall at the same time recommend a specified til the negotiations to occur, it being the intention of the City Council that a Agreement be processed for approval concurrently with any necessE entitlements for a project. The Committee may require the applicant to additional information concerning the project or the applicant as necessary i report to City Council. If the City Council approves the recommendation, the Committee sh: negotiations with the applicant for the preparation of a Development Agree otherwise determined by the Committee, the City will be responsible for F revising drafts of the document. During negotiations, the parties shall meet 3. 4. I CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. 56 . Effective Date May 11 Cancellation Date Date Issued May 16 ! General Subject: DEVELOPMENT AGREEMENTS Supersedes No. Spccific Subject: Policy for use of Development Agreements pursuant to California Govern Section 65864 et seq. City Council, City Manager, City Attorney, Department of Division of Heads, Copics to: Bulletin Boards, Press, File reasonably necessary to resolve any issues and to complete all docui expeditious manner. Where there are multiple applicants, they shall designate a spokesperson i act on their behalf in their negotiations with the City. The negotiations shall be complete when the Committee and the applicants terms, conditions and provisions of the proposed Development Agreemt applicant executes a draft Development Agreement to be presented to the concurrently with any necessary land use entitlements for the project. A draft Development Agreement acceptable to the Committee and signed by shall then be processed for approval in accordance with all procedural req 5. 6. 7. the Development Agreement Law.