title
2025 ANNUAL COMPLIANCE REVIEW FOR DEVELOPMENT AGREEMENTS
recommended action
RECOMMENDATION
It is recommended that the Planning Commission approve a motion to:
1. Accept the 2025 annual development agreement compliance review and project determinations indicating if applicants’ progress complies or does not comply with the terms and conditions of their respective Development Agreement with the City provided herein; and
2. Direct staff to notify applicants of the compliance determinations.
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Summary
A Development Agreement (DA) is a voluntary legal contract between a local jurisdiction and an entity that owns or has equitable interest in property within the jurisdiction for the development of that property. The DA details the obligations of both parties and specifies the standards and conditions that will govern the development of that property.
Per Stockton Municipal Code (SMC), the Planning Commission is the recommending authority to Stockton City Council for new DAs. The City Council is the final approving authority and must conduct a public hearing to adopt a new DA by ordinance. Subsequent amendments to DAs require recommendation by the Planning Commission and approval by the City Council if “major” or approval by the City Manager if “minor”, in accordance with SMC Section 16.128.120.
California Government Code Section 65865.1 and SMC section 16.128.110, require the City to conduct annual reviews of approved and currently valid DAs. To facilitate the required review, the SMC requires each developer to submit evidence of good faith compliance with the obligations and conditions of the DA. SMC Section 16.128.110.A states that the Planning Commission shall review the evidence provided and determine whether the applicant is in compliance with the DA.
Currently, the City of Stockton has ten active DAs requiring annual review (Attachment A - Map of Development Agreements in 2025).
Staff’s analysis of the ten (10) active DAs in 2025 concludes that all ten comply with the stipulated obligations and conditions. Staff is recommending that the Planning Commission find and direct staff to send out notices of compliance to the DA holders.
DISCUSSION
Background
Development agreements are usually employed for large and complex development projects constructed in phases over multiple years. Agreements may set the specific zoning, design, and other construction requirements for a project and give certainty to the developer that the rules will not be significantly changed by the City 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 (i.e. community benefit).
The City currently has ten (10) active DAs in various forms of developmental progress. The 2025 active DA summaries are detailed in Attachment B.
Per SMC 16.128.110, all DAs must be periodically reviewed at least once every twelve (12) months. This review begins with staff sending a letter to the developer requesting submission of evidence on annual progress made to demonstrate their compliance with the terms or conditions of their DA within 30 days of receipt of staff’s letter.
Staff reviews the response and then prepares a report for the Planning Commission. The Planning Commission then makes the final determination, based on substantial evidence, whether the applicant is in good faith compliance with their DA obligations. Applicants found to be compliant will be sent a letter confirming compliance, and no further action will be required. Applicants found to be non-compliant will be sent a letter notifying them of the findings and stating that they have 30 days to comply with the terms of the DA. Staff will work with applicants to correct non-compliant items, including providing additional time. If compliance takes additional time, staff will update the Planning Commission until compliance is achieved.
Present Situation
In early December 2025, staff sent annual review request letters to DA holders requesting progress on activities in 2025. Applicants’ responses for all of the DAs can be found in Attachment C. Staff analyzed each of the responses and prepared the following report of compliance and recommendations to the Planning Commission for each project.
1. Cannery Park (DA2-03)
• Description: The Cannery Park Development Agreement (DA2-03) allows Holman Investors, LLC. vested approval to develop approximately 450+/- acres of land located at the southwest corner of State Route 99 and Eight-Mile Road. The original DA proposed the construction of 1,116 single-family detached housing units, 210 multi-family housing units, 1,452,508 square feet of light industrial business park, and 1,078,763 square feet of commercial land use. Per the DA, the developer is entitled to allocate the single-family detached housing units and the multi-family housing units on any parcel subject only to the extent that same does not exceed the maximum density for the zoning designation and the maximum units provided for herein.
The Stockton City Council approved the first amendment to the DA on September 14, 2004. This amendment addressed the timing requirements for the DA. In 2019, an amendment to the Master Subdivision Agreement was approved by the City council, that revised the conditions for the approval of the Final Map for Cannery Park to more specifically address the timing for construction of conditioned infrastructure improvements.
The City Council approved a second amendment to the DA on April 2, 2024, as part of a new tentative subdivision map (P21-0435) for the vacant northeastern portion of the DA. The amendment included an extension to the DA, a tentative map, amendments to the zoning map and General Plan land use map that converted some of the commercial area to low density residential and relocated the high-density housing area. The DA term extension was for ten years, that now expires on October 14, 2034.
Status: Cannery Park is currently under construction. Street improvements Holman Road and Eight Mile Road have been completed and Holman Road opened to public traffic from PFC Jesse Mizner Street to Eight Mile Road. Final Subdivision Maps have been recorded for unit numbers 13-15 consisting of 331 lots for single family development.
• DA Compliance: Compliant.
2. Delta Cove (P21-1098)
• Description: The Delta Cove Development Agreement (P21-1098), previously known as the Atlas Tract and The Preserve, provides the Dea Spanos Berberian, as Trustee of F. Spanos Nonexempt Trust and Dea Spanos Berberian, as Trustee of A. Spanos Nonexempt Trust, with a vested right to establish a new development with 1,164-unit single family residences, 381 multi-family residences, parks, open space, and commercial uses on three vacant parcels, approximately 360 acres in size.
A 2008 amendment to the Spanos Park West Density Transfer Agreement (DA3-01), required that 96 high density units be built within the Altas Tract Project (now called Delta Cove). The initial Delta Cove Planned Development (P09-160) was approved by the Stockton City Council on October 19, 2010. This project included the Delta Cove Planned Development Project (PD3-08), a vesting tentative map, rezoning and General Plan designation amendment. Since the approval, the project received the maximum amount of approval extensions for the associated vesting tentative maps and was set to expire on September 9, 2022. A DA was requested to extend the life of the Vesting Tentative Map and supportive approvals. The new DA (P21-1098) was approved by the City Council on November 1, 2022, and provided for a 15-year term to develop the project.
• Status: Delta Cove has not begun substantial construction. The Delta Cove property was conveyed in 2024. In 2025, the applicant requested the consent of the City of Stockton to assign the development agreement to a new entity. City staff have been working with the applicant on this request.
• DA Compliance: Compliant.
3. Mariposa Industrial (P20-0805)
• Description: The Development Agreement (DA) provides Greenlaw Development, LLC. with a vested right to establish a maximum of 3.6 million square feet of new industrial warehouse uses on ten parcels approximately 211 acres in size that are largely vacant with agricultural uses and two residences. On December 6, 2022, the Stockton City Council approved the Mariposa Industrial Park Project Development Agreement (P20-0805) that included six parcels, approximately 203 acres in size.
On September 17, 2024, the City Council approved an amendment (P24-0104) to the DA and an addendum to the Environmental Impact Report (EIR), to include four adjacent parcels, approximately 7.6 acres in size, to simplify the project boundaries, rather than meandering.
• Status: Building construction has begun after staff confirmed compliance with conditions of use and mitigation measures. In the applicant’s annual report, it states that the Walmart project is scheduled for completion next year. Greenlaw worked with the City to form a Community Facility District (CFD) for a future fire station to be constructed and operated in south Stockton. CFD Number 2024-1 was approved by the Stockton City Council on November 12, 2024, which was a requirement of the Development Agreement.
• DA Compliance: Compliant.
4. Mariposa Lakes (DA7-05)
• Description: The Mariposa Lakes Development Agreement (DA7-05) allows PCCP LB Mariposa Lakes LLC. vested approval to pursue a mixed-use urban development on approximately 3,810 acres of unincorporated lands including roughly 11.5 million square feet of industrial and business uses; 10,566 residential dwellings at low, medium, and high-density; and one million square feet of commercial uses. The development includes a town center, schools, parks and lakes. On October 28, 2008, the Stockton City Council approved the Development Agreement, the Mariposa Lakes Specific Plan (SP4-03), and an Environmental Impact Report (EIR).
• Status: The project has been inactive for some time. Per the determination of the Planning Commission during the 2024 DA review, the applicant worked with City staff on an annexation agreement. The applicant submitted a signed agreement to the City by the October 24, 2025 deadline. In the applicant’s annual report, it stated that their team continued to analyze services, utilities, and infrastructure needed for Specific Plan area in preparation to submit an annexation request to San Joaquin Local Agency Formation Commission (LAFCo) to decide which portions would be the initial annexation area.
• DA Compliance: Compliant.
5. The Port of Stockton (P12-087)
• Description: Adopted by the City Council on September 25, 2012, the Port of Stockton Development Agreement (P12-087) provides the Port of Stockton with a vested right to operate approximately 2,300-acres of industrial area according to the General Plan (Industrial Land Use Designation) and Zoning Ordinance with (Port Zoning). The DA boundary includes the Rough and Ready Development Plan (West Section) and map of the existing Port Industrial area west of Boggs Tract (East Section).
• Status: Since 2012, the Port has entitled 30 major development projects and has multiple pending projects that are consistent with the terms of the DA. The Port continues to develop and operate consistently with the PT (Port zoning district) pursuant to the DA.
• DA Compliance: Compliant.
6. Sanctuary (DA3-05)
• Description: The Sanctuary Development Agreement (DA3-05) allows Sanctuary by Grupe, LLC to establish approximately 7,070 dwelling units, 483,984 square feet of offices, 208,272 square feet of retail, and 100 hotel rooms, along with three lakes, a marina, a private River Club, religious facilities, four schools, orchards, vineyards, a small winery, and extensive recreational open space. The entire Sanctuary property, which extends into the surrounding sloughs, totals 1,967 acres. The proposed construction will include improvements to the existing levees.
On November 18, 2008, the Stockton City Council approved the Sanctuary Master Development Plan, Development Agreement, and Environmental Impact Report The DA provided for a 25-year term to develop the project.
• Status: No substantial construction has begun. The developer is engaged with a flood control engineer and the Reclamation District to work with SJAFCA for levee improvement project.
• DA Compliance: Compliant.
7. Spanos Park West (Includes Business Park DA1-00 + Density Transfer DA3-01 + P22-0099)
• Description: Spanos Park West Development Agreement (DA1-00) allows A.G. Spanos Construction, Inc. to facilitate a mixed-use development of a 200-acre residential and commercial center. On January 9, 2002, the Stockton City Council approved the A.G. Spanos Business Park Master Development Plan (MDP), along with the Spanos Park West Development Agreement (DA1-00) and Density Transfer Development Agreement (DA3-01). The original DA1-00, divided the Spanos Park West development into two components: 1) a mainly residential component, The Villages at Spanos Park, and 2) a mixed-use component, A.G. Spanos Business Park. The MDP includes design and use standards and anticipates High-Density Residential, Office, Commercial-Retail, Neighborhood Park, and Open Space uses in addition to on/off-site improvements for the business park component. The Density Transfer Development Agreement included the requirement to construct 935 high density residential (HDR) units within the Business Park.
In 2008, 308 HDR units had been built with the Pavilions Apartment Project but there was not sufficient vacant land in the Business Park to construct the remaining required 627 HDR units. On December 9, 2008, the City Council approved an amendment to the Density Transfer Development Agreement (DA6-05) to permit the applicant to construct the remaining units on other entitled A.G. Spanos projects (Crystal Bay of the Westlake Villages DA, Atlas Tract, which is now called Delta Cove DA), elsewhere in the City, or cause to construct with payment of $2,000 dollars per HDR unit not built to the City or to a non-profit charitable organization, that is reasonably approved by the City. The deadline for the remaining units was December 9, 2018.
In 2022, the applicant requested a second amendment to extend the term limit for the Development Agreement and Density Transfer Development Agreement. On July 11, 2023, the City Council approved the second amendment, Spanos Park West Development Agreement and Density Transfer Agreement (DA3-01) (P22-0099) that extended the agreement and to fulfill the HDR housing obligations to February 28, 2032.
• Status: Major infrastructure has been completed. This includes roads, parks, drainage, and utilities. Most of the parcels have been developed. In the applicant’s annual report, it stated that $200,000 was contributed to the organization that constructed the Anchor Village Apartments in downtown Stockton, that provides affordable housing and services for veterans at risk of homelessness, as well as individual living with special needs. That contribution would account for 100 of the HDR units. They anticipate that 392 of the HDR units will be built in Crystal Bay and 96 HDR units will be built in the Atlas Tract Project (Delta Cove). A parcel map (P23-0266) was recorded in 2025, splitting one parcel into five parcels, which provided for the development of a self-storage facility and three drive-through facilities including restaurants. A building permit was also submitted for a hotel (BP25-08814).
• DA Compliance: Compliant.
8. St. Joseph’s Hospital Expansion Project P21-0958
• Description: The St. Joseph’s Medical Center of Stockton Development Agreement (DA) and St. Joseph’s Medical Center of Stockton Hospital Expansion Project Master Development Plan (MDP) provides Port City Operating Company, LLC with a vested right to expand and modernize the existing medical center within a Master Development Plan on multiple parcels on approximately 18.7 acres on multiple parcels that are largely developed with existing buildings used for the existing St. Joseph’s Medical Center. On September 26, 2023, the Stockton City Council approved the project (P21-0958) that included a DA, MDP, Environmental Impact Report (EIR) and the associated Statement of Overriding Considerations, Findings of Fact, and Mitigation and Monitoring Reporting Program (MMRP). The proposed expansion will include the removal of some existing buildings, construction of a new Acute Care Hospital Tower approximately 331,000 square feet in size, construction of a new parking structure to replace the existing surface parking, and modernization of other facilities on the Medical Center property. The Agreement provides for an initial 20-year term to carry out development of the Master Plan.
• Status: The applicant applied for building permits, one lot line adjustment (LLA25-2385) and other reviews with City staff. In the applicant’s annual report, it stated that several permits have been submitted and construction for Phase 1 (Administrative Support Building) will begin after final permit issuance from the City. The Administrative Support Building will be two stories tall, consisting of approximately 26,000 square feet and will house support offices as well as sleeping quarters for medical personnel. Building construction/demolition has not been completed as of 04/21/2026.
• DA Compliance: Compliant.
9. University Park (DA3-03)
• Description: The University Park Development Agreement (DA3-03) and University Park Master Development Plan (MDP) were approved by the Stockton City Council on November 18, 2003. The DA allows the Stockton Center Site Authority (Joint Powers created by the City and the Trustees of the California State University and the Grupe Huber Company), to establish a mixed-use development that includes: a long-term educational center and a mix of commercial and residential development on approximately 103-acres of land. The MDP includes standards and preferences to retain existing historic buildings.
• Status: California State University Stanislaus completed construction of a two story 55,000 square foot building with classrooms. This building is located at 605 Acacia Street. The KIPP Charter School completed its final phase of construction of three new buildings of its K-8 school, which will be able to accommodate 1,000 elementary students. The KIPP Charter School also proposed a new high school, that they estimate to commence construction in mid-2026. The developer reported on continued maintenance and rehabilitation of building structures.
DA Compliance: Compliant.
10.
a. Westlake Villages (DA1-04)
• Description: The Westlake Villages Development Agreement (DA1-04) at Spanos West Master Development Plan was approved on September 14, 2004, to facilitate the construction of 689.6 acres into a 2,800-unit residential community and Paradise Point Marina (Paradise Marina). The DA included a 173.6-acres neighboring property, “The Spanos Property” that was located in unincorporated San Joaquin County. In 2008, “The Spanos Property” was approved as the Crystal Bay Residential Project which included annexation and Planned Development (PD) standards for constructing a 1,343-unit residential community with parks, roads, infrastructure, and landscaping.
The first amendment to the DA (P10-190) to amend some of the language was approved by the City Council on June 29, 2010. The second amendment to the DA (P19-0583) provided a time extension and replaced the name “The Spanos Property” to Crystal Bay, and was approved by the City Council on October 19, 2019, that.
The Crystal Bay property was conveyed to a new owner by a grant deed recorded October 31, 2024, and the rights and obligations regarding the Crystal Bay property (but not with respect to the remainder of the Westlake Villages portion) under the Westlake development agreement were assigned by the partial assignment and assumption agreement, also recorded on October 31, 2024. Since the Crystal Bay portion was assigned to a new developer, it will be reported separately. In 2025, a minor amendment to the MDP (P25-0062) was approved to permit the construction of single-family homes and public streets, rather than an active senior adult community with private, gated streets.
• Status: Westlake is actively constructing single family housing in multiple villages consistent with the approved entitlements and the DA. The recreation center is now completed along with an 11-acre Community Park. In 2025, a minor amendment to the MDP (P25-0062) was approved to permit the construction of single-family homes and public streets, rather than an active senior adult community with private, gated streets. City staff are reviewing a final map and improvement plan for this portion of the DA.
• DA Compliance: Compliant.
b. Crystal Bay of the Westlake Villages (DA1-04)
• Description: On October 30, 2024, the Westlake (West Lake) Villages DA (DA1-04) at Spanos West Master Development Plan developer agreed to assign the portion of the West Lake development known as Crystal Bay to Dea Spanos Berberian, As Trustee of F. Spanos Nonexempt Trust FBO Dea Spanos Berberian Established U/D/T Dated January 27, 1998, and A. Spanos Nonexempt Trust FBO Dea Spanos Berberian, Established U/D/T Dated January 27, 1998. The Partial Assignment and Assumption Agreement was recorded on October 31, 2024. Accordingly, as of that date, the assignee developer became responsible for DA compliance as to Crystal Bay.
Status:
Crystal Bay has not begun substantial construction on homes, but the property has been upgraded with drainage pipes allowing surface drainage from the Crystal Bay to flow to Lake 3 and the stormwater drainage system on the West Lake property and other improvements facilitating development consistent with the approved entitlements and newly assigned DA. There has been discussion with City staff about a revised preliminary concept plan. Staff will continue to work with the applicant as more information becomes available.
• DA Compliance: Compliant.
Compliance Recommendation
Staff recommends that the Planning Commission find all development projects in compliance for the 2025 calendar year (Attachment D - Development Agreement Compliance Summary). If the Commission agrees with staff’s compliance determination, the Planning Commission should take the recommended actions above.
Environmental Determination
The current action required of the Planning Commission is an annual compliance review of the Development Agreements, not a project as defined by CEQA Guidelines General Rule (14 CCR 15061(b)(3)). Therefore, no additional environmental documents are required.
Public Notice
The City provided a ten-day notice to each DA representative following the annual review request letters that were sent and are included in Attachment D before the scheduled meeting date.
Attachment A - Map of Development Agreements in 2025
Attachment B - Development Agreement Summaries
Attachment C - Annual Review Request Letters and Responses
Attachment D - Development Agreement Compliance Summary
This report was prepared by Senior Planner, Anson Lihosit, (209) 937-8316; Anson.Lihosit@stocktonca.gov.