State law regarding development agreements requires that the agreements be reviewed on an annual basis. Submittal of this report complies with that requirement.
BACKGROUND
State Law
A “development agreement” is a voluntary legal contract between a local jurisdiction and a person who owns or controls property within the jurisdiction, detailing the obligations of both parties and specifying the standards and conditions that will govern development of the property. Development agreements are usually employed for large, complex development projects that are constructed in phases over a period of years. The agreements set the specific zoning, design, and other construction requirements for the project and give certainty to the developer that the rules will not be significantly changed over time. In return for this regulatory certainty, public agencies often negotiate additional benefits (or mitigation programs) that the developer will provide with the project.
The framework and requirements for development agreements are set forth in provisions of State law. California Government Code Section 65865 identifies the contents of an agreement:
A development agreement shall specify the duration of the agreement, the permitted uses of the property, the density or intensity of use, the maximum height and size of proposed buildings, and provisions for reservation or dedication of land for public purposes. The development agreement may include conditions, terms, restrictions, and requirements for subsequent discretionary actions, provided that such conditions, terms, restrictions, and requirements for subsequent discretionary actions shall not prevent development of the land for the uses and to the density or intensity of development set forth in the agreement. The agreement may provide that construction shall be commenced within a specified time and that the project or any phase thereof be completed within a specified time.
The agreement may also include terms and conditions relating to applicant financing of necessary public facilities and subsequent reimbursement over time.
Development Agreements in Yolo County
Yolo County has entered into development agreements for two types of projects: for Cache Creek mining operations and for a limited number of major development projects.
For the mining projects, Yolo County adopted development agreements when each of the five mining applications were originally approved during the mid-2000 decade. These development agreements have been reviewed and amended over the last decade during the annual review of the mining operations.
Regarding the other projects, County approved separate development agreements for three large subdivisions in Esparto in 2007 and 2008. These projects included the Story subdivision (78 units, Emerald Homes); the E. Parker subdivision (68 units, also Emerald Homes); and the Orciuoli subdivision (180 units, Castle Principles). The three development agreements are included in Attachment A.
The two Emerald Home subdivisions were approved with Tentative Subdivision Maps in October, 2007, and the Orciuoli subdivision Tentative Map was approved in April, 2008. The developers have not proceeded with a Final Map for any of the three projects and thus no construction has occurred since the initial approval of the Tentative Maps and development agreements.
A fourth development agreement was also approved by the County in April, 2008 for the Clark Pacific project north of Woodland. That project has been constructed and is in operation. The development agreement is included in Attachment A.
ANALYSIS
State law requires that development agreements be reviewed annually, "at which time the applicant, or successor in interest thereto, shall be required to demonstrate good faith compliance with the terms of the agreement” (Government Code Section 65865.1). The statute continues: “If, as a result of such periodic review, the local agency finds and determines, on the basis of substantial evidence, that the applicant or successor in interest thereto has not complied in good faith with terms or conditions of the agreement, the local agency may terminate or modify the agreement.”
This analysis examines compliance of the developers with the terms of the nine existing development agreements that have been approved by Yolo County. The analysis concludes that the applicant for all of the development agreements is in compliance with the terms of the agreements.
As already noted above, the development agreements with the companies that operate the five individual mining sites along Cache Creek are routinely reviewed during the preparation of annual mining reports, as required under the County’s Off Channel Mining Program and Ordinance. The annual mining reports are reviewed and accepted by the County Planning Commission and the Board of Supervisors. The most recent annual report found that all of the mining companies are operating in accordance with their conditions of approval and development agreements.
For the three large subdivisions in Esparto, the developers have not proceeded with the projects because the real estate market conditions in the town and the county are still recovering and therefore will not support the new housing. Two of the three subdivisions (the Orciuoli and E. Parker projects) have not proceeded with any work on the Final Subdivision Map (which needs to be prepared verifying that all conditions have been met, and then accepted by the Board of Supervisors before building permits can be applied for).
The developer of the third subdivision (Emerald Homes) has completed work on a Final Map, which has been reviewed by staff. However, significant progress toward completion of the Final Map was completed and then stopped in 2014, and has not been re-initiated.
State law allows approved Tentative Subdivision Maps to remain in effect for up to two years, after which a Tentative Map expires, if a Final Subdivision Map has not been submitted. Extensions of time may be granted by the local jurisdiction to extend the life of a Tentative Map. More importantly, since the years of the Great Recession beginning in 2007 when the real estate market collapsed in many locations in California, the State Legislature has routinely extended the effective life of Tentative Maps approved before the downturn in two year increments. Thus, residential and commercial development projects with a Tentative Map approved during the height of the construction boom just prior to the real estate collapse are automatically extended and have additional time to be completed. Under several State bills that have been signed into law over the last ten years, most Tentative Maps approved in the 2007-2008 period will not expire if Final Maps have not been completed and accepted by the local jurisdiction until 2018 or 2019.
The Clark Pacific development agreement was executed in April 2008. The firm, a pre-cast concrete construction company, opened a plant north of Woodland in 2008 and built an expanded facility in 2013. The original development agreement was amended to reflect terms of the expansion. Most of the requirements of the development agreement have been fulfilled. Ongoing monitoring and maintenance of County access roads continues. |