Sample Development Agreement (California)

• Author: David L. Callies/Daniel J. Curtin Jr./Julie A. Tappendorf
• Pages: 239-257

X. SAMPLE DEVELOPMENT AGREEMENT (CALIFORNIA)1

Development Agreement by and between the City

of ____________ and ____________ Relative to

the Development Known as ____________.

THIS DEVELOPMENT AGREEMENT is made and entered into this ____

day of _____, 20__, by and between the CITYOF ________________ _____, a

political subdivision of the Stare of California (“City”), and

________________________, a California corporation (“Developer”), pursu-

ant to the authority of Article 2.5, Chapter 4, Division 1, Title 7 (Section 65864,

et seq. of the Government Code) relating to Development Agreements.

RECITALS

1. In order to strengthen the public land use planning process, to encourage

private participation in the process, to reduce the economic risk of development

and to reduce the waste of resources, the Legislature adopted the Development

Agreement Statutes (Section 65864, et seq. of the Government Code).

2. The Development Agreement Law permits cities and counties to con-

tract with private interests for their mutual benefit in a manner not otherwise

available to the contracting parties. Such agreements, as authorized by the

Development Agreement Law, can assure property developers they may pro-

ceed with projects assured that approvals granted by public agencies will not

change during the period of development of their projects. Cities and counties

are equally assured that costly infrastructure such as roads, sewers, schools,

fire protection facilities, etc. will be available at the time development pro-

jects come on line.

3. The Development Agreement relates to the development known as

___________________, a golf course and residential development of mixed

densities. _______________________ has been in the planning stages since

June of 1988. The parties have, in good faith, negotiated the terms hereinafter

set forth which carry out the legislative purpose set forth above and will assure

the parties to this Agreement of mutually desirable development of the subject

property.

The completion of the Project, which includes two (2) eighteen-hole golf

courses within the City,will provide a long-term source of recreational and ser-

vice opportunities for the residents of the City in furtherance of the planning ob-

jectives contained in the City General Plan, and will, in conjunction with other

approved development within the ______________________, (a) maintain an

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APPENDICES

1 This Sample Development Agreement appeared first in William W.

Abbott, Exactions and Impact Fees in California (Solano Press 2001). The

authors would like to thank William W. Abbott and Solano Press for

granting permission to reprint the Sample Development Agreement.

economic and social balance between housing supply and employment oppor-

tunities; (b) assure that City revenues will be able to meet expenditures neces-

sary to provide an adequate level of municipal services and (c) establish a bal-

ance of land uses that assures the City will be able to provide necessary munici-

pal services.

The means of attaining the aforementioned objectives and the public benefit

to be received as a result of development of the Project through this Agreement

shall provide for:

a. A mix of single-family residential opportunities;

b. Additional recreational opportunities, with the development of a public

and a private golf course; and

c. Asolid residential base to support the financing mechanisms that will be

needed to implement the _________________________Facilities Plan.

4. Developer owns in fee that certain real property located in the City of

_____________________ and desires to create thereon residential develop-

ment.

5. City,in response to Developer ’sapplications, after public hearings and ex-

tensive environmental analysis, has granted the following entitlements:

a. By Resolution No. _____, dated _________________, amended the

City General Plan land use designation for the subject property from the former

designations to ______________________.

b. By Resolution No. _____, effective _______________, adopted the

_____________ Specific Plan and Design Guidelines.

c. By Ordinance No. _____, effective __________________, amended

the zoning designations for the subject property from ______________ classi-

fications to ________________ classifications, subject to various conditions.

d. By action, dated ________________, approved and adopted a vesting

tentative subdivision map subject to conditions, a copy of which map and con-

ditions is attached as Exhibit “B.”

e. By Ordinance No. _____, effective ________________, authorized the

City to enter this Development Agreement with Developer.

6. In support of the various entitlements described in paragraph 5 above, and

in accord with the California Environmental Quality Act (CEQA) and State and

City guidelines, City has certified as adequate and complete a final Environ-

mental Impact Report denominated “Final Environmental Impact Report

(FEIR) for _______________________________.”

7. In support of this Development Agreement, City concurs in and ratifies the

previously certified FEIR for ____________________ and finds that no subse-

quent or supplemental environmental impact report in addition to the previ-

ously certified FEIR is necessary.In reaching this determination, City finds that

there have been no changes proposed to the project by the adoption of this De-

velopment Agreement which relate to new significant environmental impacts

not previously considered. No subsequent changes are anticipated to occur with

respect to the circumstances under which the project will be undertaken, and no

information has become, or is anticipated to become available which will relate

to significant effects not previously discussed, nor will any significant effect

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BARGAINING FOR DEVELOPMENT