title
2024 ANNUAL COMPLIANCE REVIEW FOR DEVELOPMENT AGREEMENTS
recommended action
RECOMMENDATION
It is recommended that the Planning Commission approve a motion to:
1. Accept the 2024 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 can be made by either the City Council (or City Manager if specified in the DA) and in accordance with SMC Section 16.128.120.
California Government Code, Section 65865.1 and SMC Section 16.128.110, requires the city to conduct annual reviews of 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 material provided and determine whether the applicant is in compliance with the DA.
Currently, the City of Stockton has 10 active DAs requiring annual review (Attachment A - Map of Active Development Agreements in 2024).
Staff’s analysis of the 10 active DAs in 2024 concludes that nine comply and one does not comply with stipulated obligations and conditions. Staff is recommending that the Planning Commission find and direct staff to send out notices to compliant DA holders and one non-compliant DA holder requiring compliance.
DISCUSSION
Background
Development agreements are usually employed for large and complex development projects constructed in phases over the 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 10 active DAs in various forms of developmental progress. The 2024 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 an annual progress report 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 January, staff sent annual review request letters to DA holders requesting progress on activities in 2024. Staff’s requests and the applicant’s responses for all the active DA’s can be found in Attachment C. Staff analyzed the 2024 active DAs and provides the following report of compliance and recommendations to the Planning Commission for each project.
1. Cannery Park (DA2-03)
• Description: The DA 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. Originally 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 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 development site. The amendment included an extension to the DA term, 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 to the northern portion of the site. The DA term extension was for ten years, that now expires on October 14, 2034.
Status: Cannery Park is currently under construction. A builder purchased subdivision 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: The Delta Cove property was recently conveyed, and the new owners are collecting information and preparing to move forward under the development agreement. Delta Cove has not begun substantial construction.
• DA Compliance: Compliant.
3. Mariposa Industrial (P20-0805)
• Description: The Development Agreement 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. The Stockton City Council approved the initial project and Development Agreement on December 6, 2022, that included six parcels, approximately 203 acres in size.
• Status: An amendment (P24-0104) to the Development Agreement and an addendum to the EIR, were approved by the Stockton City Council on September 17, 2024, to include four adjacent smaller parcels, approximately 7.6 acres in size, to simplify the project boundaries, rather than meandering.
Construction permits have been received and have begun construction in compliance with conditions of use and mitigation measures were confirmed by staff. Greenlaw worked with the City to form a Community Facility District for a future fire station to be constructed and operated in south Stockton.
• DA Compliance: Compliant.
4. Mariposa Lakes (DA7-05)
• Description: The Mariposa Lakes Development Agreement (DA7-05) allows PCCP 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. The DA and Mariposa Lakes Specific Plan (SP4-03) were approved by the Stockton City Council on October 28, 2008.
• Status: The Project has been inactive for some time and requires the Applicant to enter into a new Annexation Agreement with the City. During the 2024 annual review of compliance the developer reported a plan to bring forward a pre-zoning and annexation application to the City in early 2025. However, according to the developers February 2025 report (Attachment C) due to challenges facing the development, they now expect to submit the required application in the second quarter of 2026.
• DA Compliance: Not compliant. Pursuant to SMC Section 16.128.110.C, if the Commission finds that the developer has not complied in good faith,staff will send the developer a letter notifying them of the finding of non-compliance with Recital B of the DA and requiring them to apply for a new Annexation Agreement by June 30, 2026, and that failure to comply with that may result in legal action to enforce compliance, termination, or modification of the DA. .
5. 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 with the associated Findings, Statement of Overriding Considerations and Mitigation Monitoring/Reporting Program (MMRP). The DA provided for a 25-year term to develop the project. The developer is engaged with a flood control engineer and the Reclamation District to work with SJAFCA for levee improvement project.
• Status: No substantial construction has begun.
• DA Compliance: Compliant.
6. 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. 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. The Spanos Park West Development Agreement (DA1-00) was approved with the A.G. Spanos Business Park Master Development Plan on January 9, 2002.
The first amendment to the development agreement was the Spanos Park West Density Transfer Development Agreement (DA3-01). The project converted 300-acres of high-density housing (HDR) to low-density residential (LDR) to accommodate new single-family detached housing and the business park. Because this reduction in HDR land was inconsistent with the City’s Housing Element, the owner agreed to construct 935 multi-family units within the Business Park. If units could not be constructed by 2018, an in-lieu housing payment of $2,000 dollars per HDR unit not built would need to be paid to the City or a contribution to a non-profit charitable organization made, reasonably approved by the City, for the loss of HDR development due to Spanos Park West development. Since the owner owned the entitlements for Crystal Bay and Altas Tract Projects and is a known apartment home builder, the city agreed to the amendment to the Density Transfer Agreement DA3-01.
Since the 627 high density residential units had not been built and in-lieu fees had not been paid, the owner requested another amendment to the DA and Density 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 date for the owner to fulfill the HDR construction obligations or payment to February 28, 2032.
• Status: Major infrastructure has been completed. This includes roads, parks, drainage, and utilities. Additional high-density housing (HDR) has not been built in the Spanos West Business Park since the 308-unit Pavillions Apartment Project was completed (Project # SR1-02). The developer indicates their intention to construct a combined 488 HDR Units in the Crystal Bay and Delta Cove, projects that have yet to begin development.
• DA Compliance: Compliant.
7. 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 a one lot tentative parcel map (P24-0012) to merge three parcels into one for the expansion of the St. Joseph’s Medical Center of Stockton. Building construction/demolition has not been completed as of 01/09/2025.
• DA Compliance: Compliant.
8. 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 21 major development projects and has multiple pending projects that are consistent with the terms of the DA. The Port continues to develop and operate consistent with the PT (Port zoning district) pursuant to the DA.
• 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: The developer reported on continued maintenance and rehabilitation of building structures on site, in addition to the construction of 8 new buildings totaling 262,000 square feet of space. KIPP Charter School completed Phase 1 and 2 of its K-8 school.
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 in 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” within the 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.
A 2010 amendment to the Westlake DA replaced the naming of “The Spanos Property” to Crystal Bay. An amendment to the Spanos Park West Density Transfer Agreement (DA3-01), required that 392 high-density residential units be built within Crystal Bay.
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 Westlake or any other property) under the Westlake and Crystal Bay development agreement were assigned by the partial assignment and assumption agreement, also recorded on October 31, 2024. As the Crystal Bay portion of the Westlake DA has been effectively assigned to a new developer, Crystal Bay will be reported on separately.
Status: Westlake is actively constructing single family housing in multiple villages consistent with the approved entitlements and 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.
• DA Compliance: Compliant.
Compliance Recommendation
Staff recommends that the Planning Commission find all development projects in compliance for the 2024 calendar year (Attachment D -Development Agreement Compliance Summary), except for Mariposa Lakes is found to be non-compliant due to a new Annexation Agreement not being filed. A notice of non-compliance would be sent out following Planning Commission’s finding requiring a new Annexation Agreement be filed by April 2026.
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 Active Development Agreements in 2024
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.