Agenda - Planning Commission - 06/02/2011 - Special Jt Mtg w CC

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approval on the execution of a development agreement embodying terms and conditions reasonably related to the ordinance requirements. A development agreement is a contract between a landowner or developer and the city that sets the understanding between the developer and the city regarding the design and construction of the particular project. It establishes the parameters under which the development will proceed, as well as the rights and the responsibilities of the developer and the city. Issues resolved in a development agreement include: • The design, installation and financing of public improvements; • Security for completion of improvements installed by developer, a cash deposit, certified Check, irrevocable letter of credit, bond, or other financial security; • Design of lighting, landscaping, sidewalks, underground utilities and other site plans issues; and • Coordination of construction with the installation of various utility improvements. Development agreements also typically detail who will build, pay for and own the improvements; provide the timeline for the construction or installation; and describe who is liable for any defects or claims. The agreement will detail how the infrastructure will meet city specifications, and document all of the required right-of-ways and land dedications, including agreement regarding park dedication fees if any. While a city cannot condition approval on agreement to waive the right to challenge the validity of a fee, it may condition the approval on a waiver agreement regarding costs associated with improvements to be installed. As part of the development agreement, cities should require the developer to provide financial security including a letter of credit from a reputable institution in order to cover costs were the installation of improvements to go awry or payments unmet Finally, development agreements should contain provisions dealing with liability and indemnification, requiring the developer to have liability coverage and ideally to defend and indemnify the city for related claims. Because the agreement can be a sophisticated legally binding contract, it is extremely important for the city attorney to be involved before it is entered into. Exceptions and Alternatives Not all divisions of land are subject to a city's subdivision authority. Excepted under state statute are: • Separations where all the resulting parcels, tracts, lots, or interests will be 20 acres or larger in size and 500 feet in width for residential uses and five acres or larger in size for commercial and industrial uses; • Cemetery lots, • Court ordered divisions or adjustments; and • Lot consolidation, since subdivision refers only to separation of land. Although such divisions may nonetheless go through the city's regulatory subdivision process, it appears cities are without authority to require them do so. 7