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Item 4 - Staff Report with Exhibit 1.Development Agreements Reviewed by: Planning Manager and Community Development Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov TOWN OF LOS GATOS PLANNING COMMISSION REPORT MEETING DATE: 6/12/2024 ITEM NO: 4 DATE: June 7, 2024 TO: Planning Commission FROM: Gabrielle Whelan, Town Attorney SUBJECT: Review Proposed Development Agreement Procedures and Recommend Adoption to Town Council. RECOMMENDATION: Review proposed development agreement procedures and recommend adoption to Town Council. BACKGROUND: Government Code Section 65954 provides that, upon request from an applicant for a planning entitlement that a local jurisdiction adopt development agreement procedures for the processing of development agreements. The Town has received such a request and staff has developed the proposed procedures for review by the Planning Commission. A recommendation from the Planning Commission is required before the proposed development agreement procedures are presented to the Town Council. DISCUSSION: A development agreement is a voluntary 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 will often provide for payments or dedications of land in exchange for vesting to current development standards. Jurisdictions are never obligated to enter into development agreements; it is a voluntary agreement that must be of benefit to the jurisdiction. Government Code Sections 65864 and following, address development agreement requirements. Section 65865 requires that the Town develop and adopt development agreement procedures upon request of an applicant for a planning entitlement. The Town has received a verbal request that the Town adopt development agreement procedures from PAGE 2 OF 2 SUBJECT: Development Agreement Procedures DATE: June 7, 2024 DISCUSSION (continued): counsel for an applicant for a planning entitlement. As a result, Government Code Section 65865 requires that the Town adopt procedures for the consideration and processing of development agreements. Development agreement procedures typically include the following: • A Statement of Purpose/Findings Concerning the Public Benefits of Development Agreements; • Application Requirements; • Notice and Hearing Procedures; • Planning Commission and Governing Body Review; • Recordation Requirements; • Procedures for Amendment or Termination; and • Procedures for Periodic Review. The Town Council discussed potential development agreements in a study session on April 16, 2024, and recommended that, in order to maintain maximum flexibility, development agreements not be limited to specific land uses, projects of a certain size, or projects in which applicants will spend a minimum dollar amount on public infrastructure. Proposed development agreement procedures are included as Exhibit 1. CONCLUSION: Staff recommends that the Planning Commission review the proposed development agreement procedures and make a recommendation of adoption to the Town Council. ENVIRONMENTAL ASSESSMENT: Discussion of potential development agreement procedures is not a project subject to CEQA and no environmental assessment is required. EXHIBITS: 1. Draft Development Agreement Procedures