DEVELOPMENT AGREEMENTS

Sacramento City Code tit. 18, ch. 18.16

in effect

Sacramento City Code § 18.16.010 Authority for adoption-Applicability.

18.16.010 Authority for adoption-Applicability. These regulations are adopted under the authority of Government Code Section 65864 et seq. ("law"), the Sacramento City Charter and the city general plan. These regulations shall not supersede Ordinance No. 95-012 relating to development agreements within the North Natomas community plan area. Development agreements for property within the North Natomas community plan area shall continue to be subject to said ordinance. (Ord. 2007-105 § 2; prior code § 56.06.601)

Sacramento City Code § 18.16.020 Development agreement authorized.

18.16.020 Development agreement authorized. A. The city of Sacramento ("city"), in its sole and exclusive legislative discretion, may enter into a binding agreement with any qualified applicant for the development of property within the city, pursuant to and in accordance with these regulations and the law. B. The authority specified in subsection A of this section includes entering into a development agreement with a qualified applicant who owns land not within the city, but which land lies in an unincorporated area and is within the city's sphere of influence. This authority is founded on the provisions of Government Code Section 65865(b). C. Except in cases covered by subsection B of this section, a development agreement shall be considered only in conjunction with a completed application for any required general and community plan amendments, rezoning, conditional use permit, subdivision map, master parcel map, or other land use entitlement. (Ord. 2013-0021 § 102; prior code § 56.06.602)

Sacramento City Code § 18.16.030 Applications.

18.16.030 Applications. A. All applications for development agreements shall be filed with the director of planning and development. The form of such application and the information and data required to be set forth thereon shall be as prescribed by the planning director. The planning director may require an applicant to submit such additional information and data as considered necessary to process the application. B. A separate application shall be filed for each project for which a development agreement is requested. C. For purposes of these regulations, a "project" shall mean a specific proposal for rezoning or other land use entitlement for development of a parcel or combined parcels of property for which a development agreement application is submitted and may be, in connection with such application, a proposed rezoning, conditional use permit, subdivision map or other land use entitlement, or combination thereof, provided that the development agreement, if entered into for such project, may also include according to its terms all subsequent land use entitlements and all easements, dedications and public and private improvements to be installed pursuant thereto and other requirements to be imposed in connection therewith. (Ord. 2013-0021 § 103; prior code § 56.06.603)

Sacramento City Code § 18.16.040 Fees and cost reimbursement.

18.16.040 Fees and cost reimbursement. Each application shall be accompanied by payment of processing fees as set forth in the schedule of fees established by resolution of the city council. (Prior code § 56.06.604)

Sacramento City Code § 18.16.050 Qualified applicants.

18.16.050 Qualified applicants. A. Only a qualified applicant may file an application to enter into a development agreement. B. A qualified applicant is a person who has legal or equitable interest in the real property which is the subject of the proposed development agreement ("property"). C. The applicant shall submit, with the application, a copy of a preliminary title report which identifies the holders of all legal and equitable interests in the property, and all easements. D. The planning director may require an applicant to submit proof of sufficient interest in the said real property. E. The planning director may also require that all persons having a legal or equitable interest in the real property be made parties to the application and signatories to the agreement or otherwise assure the city, in form approved by the city attorney, that they will be legally bound to comply with the terms and conditions of the development agreement. F. The provisions of subsection E of this section shall not apply to owners or claimants of interests in easements, whether of record or otherwise, unless the city attorney determines that their agreement or undertaking to be bound by the agreement is necessary for the agreement to be effective in achieving the city's objectives. G. The qualified applicant and any successors in interest are hereinafter referred to as "landowner," which term shall include the plural in the case of an applicant consisting of more than one party. H. The planning director may allow an agent for a qualified applicant to file and process the application upon proper execution of an agency letter. (Prior code § 56.06.605)

Sacramento City Code § 18.16.060 Qualified property.

18.16.060 Qualified property. The property shall: A. Be situated within the city limits, except as otherwise provided in Section 18.16.020(B) of this chapter; and B. Represent an appropriate parcel or parcels, as to ownership and parcel configuration, size and location, as determined by the planning director, to assure the development of property consistent with the policies, goals, standards and objectives of the general plan and any applicable specific or community plan. Agreements relating to land which is covered by the provisions of Section 18.16.020(B) of this chapter may contain terms and conditions deemed necessary by the city in order to deal with issues peculiar to annexation of land within the unincorporated area. (Prior code § 56.06.606)

Sacramento City Code § 18.16.070 Action by director of planning and development.

18.16.070 Action by director of planning and development. Upon acceptance of the application as complete with the payment of fees required hereunder, the director of planning and development shall review the application and shall at the appropriate time set a public hearing thereon before the planning and design commission in accordance with the provisions of Section 18.16.080 of this chapter. (Ord. 2012-004 § 77; prior code § 56.06.607)

Sacramento City Code § 18.16.080 Notice and hearings.

18.16.080 Notice and hearings. Notice of the intention of either the planning and design commission or the city council to consider the approval of a development agreement shall be given in accordance with the provisions of this section. A. The notice shall contain, except as otherwise provided in subsection C of this section, the following information: 1. The time and place of the hearing before the planning and design commission or the city council, as the case may be; 2. The property location; 3. A brief description of the project proposed to be subject to the agreement; 4. A statement that a copy of the proposed development agreement is on file and available for public inspection. B. Except as provided in subsection C of this section, the notice shall be: 1. Published at least once in a newspaper of general circulation in the city; 2. Mailed to the applicant and to all persons shown on the last equalized assessment roll as owning real property within five hundred (500) feet of the property, postage prepaid, at least ten (10) days before the date set for the hearing. If the number of owners to whom notice is to be mailed is greater than one thousand (1,000), the director of planning and development may as an alternative provide notice in the manner set forth in Section 65091(a)(3) of the Government Code; 3. Provided by such additional means and to such additional persons as the director of planning and development, in his or her discretion, may determine to be appropriate; and 4. Contain the notice specified in Government Code Section 65009(b)(2). C. The public hearing on the development agreement, and the notice thereof, may be combined with the public hearing and notice for an application for rezoning, conditional use permit, subdivision map, or other land use entitlement pertaining to the property, in which case the notice requirements may be the same as those given for such other application, provided that such notice requirements shall comply with the provisions of subsection B of this section. D. The failure of any person entitled to notice required by law or these regulations to receive notice shall not affect the authority of the city to enter into a development agreement. (Ord. 2013-0021 § 104; Ord. 2012-004 § 78; prior code § 56.06.608)

Sacramento City Code § 18.16.090 Irregularity in proceedings.

18.16.090 Irregularity in proceedings. A. No action, inaction or recommendation regarding the proposed development agreement shall be held void or invalid or be set aside by a court by reason of any error, irregularity, informality, neglect or omission ("error") as to any matter pertaining to petition, application, notice, finding, record, hearing, report, recommendation or any matters of procedure whatever unless after an examination of the entire case, including the evidence, the court is of the opinion that the error complained of was prejudicial and that by reason of the error the complaining party sustained and suffered substantial injury and that a different result would have been probable if the error had not occurred or existed. B. There is no presumption that any error was or is prejudicial or that injury was done if an error was shown. (Prior code § 56.06.609)

Sacramento City Code § 18.16.100 Recommendation by planning and design commission.

18.16.100 Recommendation by planning and design commission. After its public hearing, the planning and design commission shall make its recommendation to the city council concerning the development agreement, including its consistency with the general plan and the policies, goals, standards and objectives of any applicable specific or community plan. A public hearing shall then be set and noticed before the city council in the manner specified in Section 18.16.080 of this chapter. (Ord. 2012-004 § 79; prior code § 56.06.610)

Sacramento City Code § 18.16.110 Decision of the city council.

18.16.110 Decision of the city council. A. After its public hearing, the city council in the exercise of its legislative discretion shall determine whether or not to approve and authorize execution of the proposed development agreement. The city council shall not approve the agreement unless it makes all of the following findings: 1. The agreement is consistent with the city general plan and the goals, policies, standards and objectives of any applicable specific or community plan; 2. The project should be encouraged in order to meet important economic, social, environmental or planning goals of any applicable specific or community plan; 3. The project would be unlikely to proceed in the manner proposed in the absence of a development agreement; 4. The landowner will incur substantial costs in order to provide public improvements, facilities or services from which the general public will benefit; 5. The landowner will participate in all programs established and/or required under the general plan or any applicable specific or community plan and all of its approving resolutions (including any mitigation monitoring plan), and has agreed to financial participation required under any applicable financing plan and its implementation measures, all of which will accrue to the benefit of the public; 6. The landowner has made commitments to a high standard of quality and has agreed to all applicable land use and development regulations; and 7. One of the findings in section 17.810.020 of the Planning and Development Code. B. Even if all of the findings set forth in subsection A of this section can be made, the city council may in its sole discretion deny approval of the development agreement on the ground that the development agreement is not in the public interest. C. The city council may add provisions to, or modify or delete any provision of the development agreement as a condition of its approval. Such action may, but need not be, referred back to the planning and design commission for its review and recommendation, without the necessity for a further public hearing before the commission. (Ord. 2016-0012 § 6; Ord. 2012-004 § 80; prior code § 56.06.611)

Sacramento City Code § 18.16.120 Ordinance approving the development agreement.

18.16.120 Ordinance approving the development agreement. A. If the city council approves the agreement, it shall do so by the adoption of an ordinance authorizing the mayor to execute the agreement at such time as the agreement becomes effective. B. The development agreement shall become effective ("effective date") on the effective date of the ordinance approving the agreement. In the event that a referendum petition is filed or referendum proceedings are otherwise commenced within the referendum period, the agreement shall take effect, if at all, at the conclusion of the referendum proceedings. If the referendum proceedings result in a reversal of the action of the city council in approving the agreement, the agreement shall be void in its entirety, and no vested or other rights shall be deemed to have accrued to landowner or the property. (Prior code § 56.06.612)

Sacramento City Code § 18.16.130 Amendment or cancellation.

18.16.130 Amendment or cancellation. A. Any development agreement may be amended or canceled, in whole or in part, by the mutual consent of the parties to the agreement, or their successors in interest. Where amendments are proposed, which amendments are of a substantive nature, the procedures for approval thereof shall be the same as the procedures for approval of a development agreement in the first instance. B. For purposes of these regulations, an amendment is a substantive amendment if it is one which changes the term of the development agreement or modifies the provisions of the agreement dealing with the permitted uses, density or intensity of use, height or size of buildings, provisions for reservation and dedication of land, conditions, terms, restrictions and requirements relating to subsequent discretionary actions, monetary contributions by a landowner, or any other material term or condition of the agreement. C. Any other amendment of the agreement is not a substantive amendment and shall not require a hearing before the planning and design commission or the city council and need not be referred to the planning and design commission. D. Prior to commencement of development or at such earlier time as may be required under the development agreement approval process, parcelization of the property or any portion thereof, shall conform to the applicable zoning. It is contemplated that upon the reparcelization of the property, a development agreement may be amended by the landowner or a successor and the city manager, acting on behalf of the city, to conform the descriptions of the property to such reparcelization, as a non-substantive amendment. E. Determinations as to whether a proposed amendment is a substantive amendment shall be made by the city manager. F. The city council shall not approve a substantive amendment unless it makes all of the findings required pursuant to Section 18.16.110(A) of this chapter. G. Even if the findings set forth in subsection F of this section can be made, the city council may in its sole discretion deny approval of the amendment on the ground that it is not in the public interest. (Ord. 2012-004 § 81; prior code § 56.06.613)

Sacramento City Code § 18.16.140 Default.

18.16.140 Default. A. In addition to the provisions of Government Code Section 65865.1, in the event that a landowner or its successor in interest is in default under the terms and conditions of the development agreement, no building permit application shall be accepted nor building permit issued to such landowner or successor unless such default is cured, or the development agreement is terminated and landowner has otherwise satisfied all city land use and development regulations as they exist at the time of application for a building permit. B. Termination of the development agreement as to any landowner or successor shall not affect the land-owner's or successor's obligations to comply with the general plan, any applicable specific or community plan, and all applicable land use and development regulations, together with any applicable financing plan and all of the measures implementing said plan. (Prior code § 56.06.614)

Sacramento City Code § 18.16.150 Recordation.

18.16.150 Recordation. A. Within ten (10) days after the effective date, the city clerk shall have the agreement and the ordinance approving the agreement recorded with the county recorder. B. If the development agreement is terminated, the city clerk shall have notice of such action recorded with the county recorder, within ten (10) days of the termination date. C. Any amendment to the development agreement shall be recorded in the same manner as a development agreement. (Prior code § 56.06.615)

Sacramento City Code § 18.16.160 Compliance review.

18.16.160 Compliance review. A. The city manager shall, on an annual basis and at any other time that the city manager determines to be appropriate, review the extent of good faith substantial compliance by the landowner with the terms and conditions of the development agreement. Such periodic review shall be limited in scope to compliance with the terms and conditions of the agreement, pursuant to Government Code Section 65865.1. The costs of notice and related costs incurred by the city for such annual review shall be borne by the landowner. B. The city manager shall provide thirty (30) days' prior written notice of such periodic review to the land-owner. Such notice shall require the landowner to demonstrate good faith compliance with the terms and conditions of the agreement, and to provide such other information as may be reasonably requested by the city manager and deemed by the city manager to be required in order to ascertain compliance with the agreement. Such notice shall also include the state-ment that any review may result in amendment or termination of the agreement. C. If, following the review, the city manager is satisfied that there has been good faith compliance with the terms and conditions of the agreement, the city manager shall by letter inform the landowner of this finding. If the city manager is not satisfied that the landowner has demonstrated good faith compliance with all the terms and conditions of the agreement, the city manager may refer the matter along with recommendations to the city council. D. Subject to all applicable noticing requirements, the city council shall conduct a hearing on compliance at its first available agenda after referral by the city manager. The landowner shall be given written notice of the hearing by mail at the address specified in the agreement, at least ten (10) days prior to the date of the hearing, in addition to any other notice required by law. When the written notice is sent to the landowner, it shall include any staff report or other materials upon which the city manager based a conclusion that there has not been demonstrated good faith compliance with the terms and conditions of the agreement. E. The landowner shall be provided with opportunity to present written and/or oral testimony at the public hearing. F. The city council shall hear the matter de novo. G. At the conclusion of the hearing, the city council shall make written findings and determinations on the basis of substantial evidence, as to whether or not the landowner or successors have complied in good faith with the terms and conditions of the agreement. H. If the city council determines that the landowner or successor has not complied in good faith with the terms and conditions of the agreement, the city council may terminate the agreement as to the particular landowner or successor, and as to the portion of the property in which the particular landowner or successor holds an interest. Alternatively, the city council may modify the agreement; in that case, the landowner or successor shall decide whether to accept the modification. If the proposed modification is rejected, the agreement shall be terminated. I. Termination of the agreement shall not affect any of landowner's obligations to comply with the general plan, any applicable specific or community plan, any applicable financing plan, any applicable zoning, conditional use permit, subdivision map or other land use entitlement approved with respect to the property, nor shall it affect other covenants of landowner specified in the agreement to continue after termination of the agreement. J. A finding by the city manager or the city council of good faith compliance by a landowner with the terms and conditions of the agreement shall conclusively determine said issue up to and including the date of said review as to such landowner and that landowner's property. (Ord. 2013-0021 § 105; prior code § 56.06.616)

Source: City of Sacramento, Sacramento City Code (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/sacramentoca/latest/sacramento_ca/0-0-0-41892Fetched: 10/24/2026