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AGENDA REPORT 2009 1118 CC REG ITEM 10G
ITEM 10.G. CITY OF MOORPARK,CALIFORN City Council Meeting Of ACTION: MOORPARK CITY COUNCIL . AGENDA REPORT TO: Honorable City Council 1 FROM: David A. Bobardt Planning Directo ` Prepared By: Joseph R. Vacca, Principal Plannem7to*ko' DATE: November 4, 2009 (CC Meeting of 11/1812009) SUBJECT: Consider Report of 2009 Annual Development Agreement Review, Established in Connection with Moorpark Highlands Specific Plan No. 2, a Master Planned Community, Located East of Walnut Canyon Road and North of Charles Street,on the Application of Pardee Homes (PA 1- 7) and KB Home (PA 8-9) BACKGROUND: Government Code Section 65864 and City of Moorpark Municipal Code Section 15.40 provide for Development Agreements between the City and property owners in connection with proposed plans of development for specific properties. Development Agreements are designed to strengthen the planning process, to provide developers some certainty in the development process and to assure development in.accordance with the terms and conditions of the agreement. On October 6, 1999, the Moorpark City Council adopted Ordinance No. 263 (effective November 5, 1999), approving a Development Agreement between the City of Moorpark and Fountainwood Agoura (Morrison-Fountainwood Agoura). The agreement was approved in connection with Moorpark Highlands Specific Plan No. 2; a 445-acre, master planned community, located east of Walnut Canyon Road and north of Charles Street. The agreement remains in full force and effect for 20 years from the operative date of the agreement (until November 5, 2019), or until the close of escrow on the initial sale of the last Affordable Housing Unit, whichever occurs last. Provisions of the agreement require an annual review and report to the City Council on the status of completion of all aspects of the agreement. The 2008 annual review was completed on January 7, 2009. Pardee Homes is successor in title and current developer of Planning Areas 1 through 7 of Specific Plan No. 2, which includes 322 single-family residential units, 102 multi-family residential units, the open space areas, former school 98 Honorable City Council November 18, 2009 Page 2 property and public park. Although KB Home has purchased and intends to develop 132 single-family residences within Planning Areas 8 and 9, Pardee Homes has retained responsibility for requirements of the Development Agreement, and has therefore submitted the necessary application form, related materials, and fee/deposit for the 2009 annual review. The Planning Director has reviewed the submitted information and the project status and provides the following report. DISCUSSION: Current Project Status The following aspects of Specific Plan No. 2 were completed since the last Development Agreement Annual review: • Planning Area 1, Magnolia Lane is completed with 95 units constructed, sold and occupied. • Planning Area 4, Shenandoah has 78 units constructed and occupied. • All underground utilities have been constructed. All of the project's public streets have been paved, and the final "lift" of asphalt has been completed. • The connection of Spring Road to Walnut Canyon Road, including operational traffic signals and the final "lift" of asphalt, opened February, 2008. • All storm drain and utility construction has been completed, and final street grades have been established and paved in PA 8 and 9. • The off-site Spring Road wall plans were approved by City Council and staff and Pardee acquired rights-of-entry from property owners, and completed construction of the wall and associated landscaping. The City accepted the maintenance responsibility of the landscaping in February, 2008. • Park improvements in PA 7 have been completed, and the park opened July 29, 2009. • KB Home constructed their model home complex which includes three model homes, a parking area and a sales trailer, but has now closed the model complex and is not selling homes. The following aspects of Speck Plan No. 2 are currently underway: • Planning Area 2, Cherry Hill, has 11 houses constructed and occupied, and the pool/recreation facility constructed and open to residents. There are 58 lots that remain undeveloped at this time. ftor_pri_serv\Department ShareCommundy DevelopmenAADMIMAGMTSO A\1998-01 PardWagenda reportstc 09 1118 2009Annual Rpt.doc 99 Honorable City Council November 18, 2009 Page 3 • Planning Area 3, Cherry Hill has 66 houses constructed and occupied, and the pool/recreation facility constructed and open to residents. There are 10 lots that remain undeveloped at this time. • Planning Area 5, Waverly Place,the 102 unit multi-family portion of the project, has the 3-unit model complex completed and opened to the public. PA 5 will have a total of 25 affordable homes, for buyers who meet the criteria for low and very low income. Permits have been issued for thirty four (34) multi-family buildings, which will contain a total of one hundred and two (102) housing units and final occupancies have been issued for 31 buildings totaling 93 housing units including 18 affordable units. • Pardee submitted a Zoning Ordinance Amendment Case No. 2009-01, to Specific Plan No. 2, Residential Planned Development(RPD)Permit No.2009-02,Tentative Tract Map No. 5860, Development Agreement applications on September 18, 2009. The applications propose to amend Specific Plan No. 2, Moorpark Highlands, to change Planning Area No. 7 from a school site to residential land use, Tentative Tract Map No. 5860 intends to subdivide the 22 acre property into one-hundred- thirty-three (133) single-family residential lots on property located at the southeast corner of Ridgecrest Drive and Elk Run Loop, and west of Happy Camp Canyon Regional Park, and Residential Planned Development Permit No. 2009-02 intends to develop 133 single family detached homes; the project includes a Development Agreement. The applications were found to be incomplete on October 16, 2009. • KB Home has acquired Planning Areas 8 and 9 from Pardee Homes. On October 27, 2009, KB Home submitted Modification No. 1 to RPD 2004-02 and 03 application. This is a request for approval of a modification to redesign architecture and the plotting and unit mix, of 132 Single Family Homes in, Planning Areas 8 and 9 of Moorpark Highlands, (Tract 5045-8). The request also proposes to prohibit allowing horses in Planning Area 8, which is currently allowed on 37 of the 132 lots. Developer Compliance with Terms of Agreement The developer's responsibilities are included in Section 6 of the Development Agreement and include 32 specific requirements, as summarized below. Compliance with the terms and conditions of the Development Agreement will occur at various stages of the development process. Action by the developer and other clarifying information has been noted. \\MOR_PRI_SERVOepartment Share\Community DevelopmenhADMIMAGMTS\D A\1998-01 Pardee\agenda reports\cc 09_1118_2009Annual Rpt.doc 100 Honorable City Council November 18, 2009 Page 4 NO. REQUIREMENT STATUS 1. Compliance with Development Agreement, To date the developer is in compliance with project approvals and subsequent approvals. this requirement. 2. Land dedicated to the Moorpark Unified School An agreement with Moorpark Unified School District(MUSD)to be dered restricted by covenant District was reached on November 18, 2005. to limit use of the land to school facilities for MUSD has indicated it is no longer interested kindergarten through 12"'grade. in acquiring the site. This action spurred further discussions by Pardee,MUSD and the City. The result was City Council's approval of a Memorandum of Understanding, (MOU), between the City and Pardee Homes,on April 1,2009.The MOU allowed Pardee Homes the ability to.submit an application for residential development of the school site for a maximum of 225 residential units. On September 18, 2009, Pardee Homes filed a Specific Plan Amendment, Development Agreement, Residential Planned Development Permit and Tract Map No. 5860, applications for 133 single family detached housing units on Planning Area 7, the former school site. The application was deemed incomplete on October 16, 2009. Staff continues to work with Pardee Homes and anticipates public hearings on the applications in the first quarter of 2010. 3. Lands and interests in dedicated lands to be free The developer must provide clear title to any of liens and encumbrances. property required for dedications. Final maps were reviewed for compliance with this requirement prior to recordation. 4. Payment of "Development Fees" of seven These fees are adjusted annually(until paid) thousand three hundred dollars ($7,300.00) per using the Consumer Price Index (CPI) in residential unit and thirty two thousand eight accordance with the agreement. Fees must hundred dollars ($32,800.00) per gross acre of be paid prior to issuance of Zoning Clearance institutional land. for Building Permit. This fee has been paid for all Zoning Clearances for Building Permits which have been issued to date. Cost indexing commenced one year after issuance of first model home building permit,which was issued August 18, 2005. 5. Payment of "Citywide Traffic Fees" of four These fees are adjusted annually(until paid) thousand dollars ($4,000.00) per residential unit using the State Highway Bid Price Index in and eighteen thousand dollars ($18,000.00) per accordance with the agreement. Fees must acre of institutional land. be paid prior to issuance of Zoning Clearance for Building Permit.This fee has been paid for all Zoning Clearances for Building Permits which have been issued to date. \\MOR PRI_SERVOepartment Share\Community DevelopmenhADMIMAGMTS\D A\1998-01 Pardee\agenda reports\cc 09_1118_2009Annual Rpt.doc 101 Honorable City Council November 18, 2009 Page 5 NO. REQUIREMENT STATUS 6. Payment of "Community Service Fees" of five These fees are adjusted annually(until paid) hundred dollars ($500) per residential unit and using the Consumer Price Index (CPI) in two thousand two hundred fifty dollars ($2,250) accordance with the agreement. Fees must per gross acre of institutional land. be paid prior to issuance of Zoning Clearance for Building Permit.This fee has been paid for all Zoning Clearances for Building Permits which have been issued to date. 7. Granting of a conservation easement to the City The conservation easement was included on to retain the Open Space lots within Planning the Final Map for Tract No. 5045-1. Areas 10, 11, 14, 15 and 16, allowing only those uses permitted in the Development Regulations of the Specific Plan Open Space Zones. 8. Payment of all outstanding processing costs. This is an ongoing requirement. At this time the developer is current with all processing costs, including submittal of Annual Review Application and deposit for Development A reement-Annual Review. 9. Dedication of approximately seven (7) acres of Dedication of the park site was included on parkland to the City,including construction of park the Final Map for Tract No. 5045-1. The improvements, as detailed in the agreement. improvements to the park are to be completed prior to occupancy of the 350"' dwelling unit. Prior to occupancy of the 500"'residential unit, the developer shall also submit a cash deposit of $350,000.00 to fund replacement of park amenities.The park has been completed,and officially opened to the public on July 29, 2009. 10. Construct public streets adjacent to school and Street improvements have been constructed, park sites. except for final pavement layer and bringing manhole covers to grade. Spring Road was com leted February, 2008. _ 11. Construct appropriately sized water line,pumping At the present time, no connection points facilities,and storage facilities for recycled water. exist, or are planned within the vicinity of the project. I 12. Dedication of greenbelt, open space areas, The trails, greenbelts and open space areas landscape areas, and trails to the City. Such were included on the Final Maps for No.5045- areas not dedicated to the City shall include a 1,-2,-3,-4 and-5,which have been recorded. conservation easement to the City. Final Maps for Tract No. 5045-6 through 8 have also been approved by City Council and recorded. The trails were also included on the rough grading plan and landscape plans. 13. Grant a conservation easement to the City for The conservation easements were included Planning Areas 12 and 13 to insure public open on the Final Map for Tract No. 5045-1. space. Wnor_pri_serv\Department Share\Commun'ity DevelopmenAADMIN\AGMTS0 A\1998-01 Pardee\agenda reports\cc 09_1118_2009Annual Rpt.doc 102 Honorable City Council November 18, 2009 Page 6 NO. REQUIREMENT STATUS 14. Prior to recordation of the first final map, provide A Purchase and Sale Agreement in lieu of an a City Council approved Affordable Housing Affordable Housing Agreement has been Implementation and Resale Restriction Plan signed. (Plan)with provisions for: Construction of all the 102 housing units in PA Buyers who meet the criteria for low income 5 is nearly complete. This Planning Area is (80%of median income): made up of the multi-family tri-plex housing Twelve (12) three (3) bedroom and two (2) units, some of which contain affordable bath units no less than 1050 square feet in housing units; in compliance with the size. affordable housing criteria for the overall Thirteen (13) four (4) bedroom and two (2) project, bath units at no less than 1425 square feet in There are 18 affordable housing units size. occupied to date. 14. Prior to occupancy of the first residential unit, The$5,000.00 payment has been received. Cont. execute an Affordable Housing Agreement that The Payment In-Lieu Fees are adjusted incorporates the Plan. annually(until paid)using the Consumer Price Pay City's direct cost, up to five thousand dollars Index (CPI) in accordance with the ($5,000.00) for preparation and review of the agreement. Fees must be paid prior to Implementation and Resale Restriction Plan and issuance of Zoning Clearance for Building Agreement. Permit. Payment of In-Lieu Fees of three thousand, five The In-Lieu fee has been paid for all Zoning hundred dollars($3,580.00) per unit(for each of Clearances for Building Permits which have the dwelling units in the project). been issued to date. 15. Agreement to Mitigation Measures included in the Community Development staff will provide the Final Environmental Impact Report (EIR) lead in Mitigation Monitoring. Air Quality Fees including payment of "Air Quality Fee" to be (TSM)will be calculated and collected prior to calculated as a condition of the issuance of Zoning Clearance for Building Permit.This fee building permit for each unit. (as calculated using URBEMIS)has been paid for all Zoning Clearances for Building Permit which have been issued to date. 16. Installation of block wall fencing and landscape The plans have been approved by staff and screening along the east side of Spring Road construction was completed in March, 2008. along the rear of the homes on Sir George Court. 17. Submit and gain approval from City Council of a An Implementation Plan was approved by City plan to guarantee the agreements contained in Council on April 20,2005. Pardee Homes has Section 6. retained responsibility for the items under the plan,except for construction of the residential units in Planning Areas 8 and 9. 18. Install traffic signals as determined by the City. Design of five(5)traffic signals were included in a City contract, but paid for by Pardee. All five (5) traffic signals, as approved and permitted by the City, were constructed by Pardee and four became fully operational in February,2008. The one internal traffic signal which is installed and not yet operational is at the intersection of Elk Run Loop and Rid ecrest Drive. 19. Waive rights to any density bonus that would To date, the developers have complied with increase the number of dwelling units approved this requirement. r Specific Plan No. 2. \\mor_pri_serv\Department Share\Community DevelopmenAADMIMAGMTS\D A\1998-01 Pardee\agenda reportMec 09_1118_2009Annual Rpt.doc 103 Honorable City Council November 18, 2009 Page 7 NO. REQUIREMENT STATUS 20. Agreement to cast affirmative ballot for formation To date, the developers have complied with of an assessment district for maintenance of this requirement. parkway and median landscaping,street lighting, and parks. 21. Agreement to pay all City capital improvement, To date,the developer has complied with this development and processing fees. requirement. 22. Formation of one (1) or more property owners These requirements have been included in the associations to assume ownership and CC&Rs prepared for the project. The CC&Rs maintenance of open space land,trails,and other were reviewed and approved by the City amenities. Attorney and staff prior to final recordation of the CC&Rs. 23. Provide irrevocable offer of dedication to the City The offer was included on the Final Map for for the future rights-of-way for State Route 23 and Tract No. 5045-1 State Route 118. 24. Provide vehicular access to properties west of These access rights are shown on Final Map Spring Road. Tract No.5045-1. A grant deed is required for the private access easement. Final design of access improvements are under review by staff. 25. Construct a solid block wall to replace existing A noise study was completed using projected block wall/wrought iron fence along the Spring traffic counts for project build out and the Road and Charles Street frontages (if deemed study concluded that new sound walls would necessary by the City). not be required. The Community Development Director concurred with the recommendations of the report, and determined that sound walls were not re uired. 26. Remove existing block walls/fences and construct The off-site Spring Road wall plans were a solid decorative block wall along the west side approved by City Council and staff and of Spring Road. Pardee acquired rights-of-entry from property owners, and completed construction of the wall and associated landscaping. The City accepted the maintenance responsibility of the landscaping and wall in February, 2008. 27. Provide irrevocable offer of dedication to the City The offer of dedication for Princeton Avenue for ultimate build out of"Old"Los Angeles Avenue was included on Final Map of Tract No.5045- (Princeton Avenue) improvements and Spring 1. All Spring Road improvements are being Road improvements not required to be constructed by Pardee, and required constructed by the developer. dedications have either been shown on the final map or were acquired by Pardee for the City by separate instrument. \\MOR_PRI_SEWDepartment Share\Community DevelopmenhADMIMAGMTS\D A\1998-01 Pardee\agenda reports\cc 09_1118_2009Annual Rpt.doc 104 Honorable City Council November 18, 2009 Page 8 NO. REQUIREMENT STATUS 28. Acquire the property needed to improve the The developer has acquired the necessary intersection of Charles Street and Spring Road property. Utility construction and street and provide improvements as determined by the construction has been completed, including City. final pavement. The developer has submitted a payment to the City as a buyout of the improvement requirement;and has prepared a grant deed to offer the property on the southwest corner of Spring Road and Charles Street to the City. Staff is reviewing the grant deed for completeness and will present the offer to the City Council for acceptance once the document is reviewed by staff. 29. Provide irrevocable offer of dedication to the City Irrevocable offer of dedication to the City was for right-of-way for the extension of"C" Street. included for recordation of Final Map Tract No. 5045-1. 30. Construct a public trail system as identified in the These improvements were required as part of Specific Plan, including a cash deposit of one Final Map review. All Final Maps have been hundred fifty thousand dollars ($150,000.00) to approved by City Council,and recorded. The fund the maintenance of the trail system. required$150,000.00 maintenance deposit is due prior to occupancy of the 500th unit. 31. Provide irrevocable offer of dedication to the City The dedication was included on the Final Map for Planning Area 17. for Tract No. 5045-1. 32. Payment of one hundred twenty five thousand The required contribution was paid on July 27, dollars ($125,000.00) to satisfy the Final EIR 2006 and deposited in the City Wide Traffic Transportation/Circulation Mitigation Measure 2, Mitigation Fund (2002). and for the developer's share of contribution to intersection improvements at Los Angeles Avenue and Tierra Re'ada Road. All requirements of the Development Agreement will be considered in the City's review and approval process for all aspects of the development; including but not limited to, subsequent entitlement requests, public and private improvements, Final Maps, and building permits. City Compliance with Terms of Agreement The City's responsibilities are included in Section 7 of the agreement and include 12 specific provisions, as summarized below: NO. REQUIREMENT STATUS 1. Commit necessary time and resources on expedited The RPD's, ZOA's and Modification to the parallel processing for subsequent approvals. Tentative Tract Map were processed concurrently as they were submitted. \\MOR_PRI_SERV\Department Share\Community DevelopmenhADMWWGMTS\D A\1998-01 Pardee\agenda reports\cc 09_1118_2009Annual Rpt.doc 105 Honorable City Council November 18, 2009 Page 9 NO. REQUIREMENT STATUS 2. Commence proceedings to form a Mello-Roos A Community Facilities District has been Community Facilities District, upon receipt of a approved by City Council. landowners' petition by Developer and Developer's payment of a fee, as prescribed in California Government Code Section 53318, City shall commence proceedings to form a Mello-Roos Community Facilities District,("District")and to incur bonded indebtedness to finance all or portions of the public facilities infrastructure and services that are required by the Specific Plan and that may be provided pursuant to the Mello- Roos Community Facilities Act of 1982, (the"Act"); provided, however, the City Council, in its sole and unfettered discretion,may abandon establishment of the District upon the conclusion of the public hearing required by California Government Code Section 53321 and/or deem it unnecessary to incur bonded indebtedness at the conclusion of the hearing required by California Government Code section 53345. In the event that a District is formed, the special tax levied against any residential lot or residence thereon shall afford the buyer the option to prepay the special tax in full prior to the close of escrow on the initial sale of the developed lot by the builder of the residence. 3. Proceed to acquire, if requested,and at developer's The developer has acquired the necessary sole cost and expense,easements or fee title to land property. not held by the developer, but necessary for construction of required improvements. 4. Authorization for City Manager to sign an early An Early Grading Agreement has been grading agreement. executed, and mass grading has been completed. 5. Agreement to allow concurrent processing of land Concurrent processing has been done. use entitlements for the same property, so long as, deemed complete. 6. Agreement that the land and improvements required Per this Agreement. under subsection 6.9 of the Development Agreement meet the developer's obligation for park land dedication for the designated 570 units. 7. Agreement to allow the developer to receive the Per dedication of public open space area. maximum amount of tax benefit for dedication of public open s ace in Planning Areas 12 and 13. 8. Agreement to appoint an affordable housing staff David Moe, Redevelopment Manager is the person to oversee the implementation of the City's housing coordinator. affordable housing requirements. 9. Agreement to allow for a variation of five feet (6) Per this Agreement. maximum in grades as shown on the grading exhibit for Specific Plan No. 2, subject to approval of the Community Development Director. \\MOR_PRI SEWDepartment Share\Community Development\ADMIMAGMTS\D A\1998-01 Pardee\agenda reports\cc 09 1118_2009Annual Rpt.doc 106 Honorable City Council November 18, 2009 Page 10 NO. REQUIREMENT STATUS 10. Agreement to limit the payment of the Los Angeles AOC fees have been collected for 558 Avenue Area of Contribution (AOC) fee to only the residential units resulting in an overpayment first four hundred seventy five(475)residential units and there is currently a partial credit available and any institutional uses within the project. The toward the remaining institutional uses(which AOC fee shall be the amount in effect at the time of include the private pool lot recreation areas, issuance of building permit. and future school site or residential project; AOC fees were not required to be collected for the 7 acre public park site). 11. Agreement to facilitate the reimbursement to the Pending construction of potentially developer of costs incurred that may be subject to reimbursable improvements. No request has partial reimbursement from other developers. been submitted to date. 12. Agreement that the developer shall not be required Per this Agreement. to pay the Gabbert Road/Casey Road Area of j Contribution Fee referenced in the Final EIR. (Specific Plan No. 2 is not within the boundaries of this AOC). Evaluation of Good Faith Compliance Based on a review of the Development Agreement Annual Review Application and the status of the project, the Planning Director has determined, on the basis of substantial evidence that Pardee Homes has, to date, complied in good faith with the terms and conditions of the agreement. FISCAL IMPACT None. STAFF RECOMMENDATION: 1. Accept the Planning Director's report and recommendation that, on the basis of substantial evidence, Pardee Homes has complied in good faith with the terms and conditions of the agreement. 2. Deem the 2009 annual review process complete. ATTACHMENTS 1. Location Map 2. Site Plan 3. Letter from Pardee Homes, dated October 27, 2009. \\MOR_PRI_SERV\Department Share\Community DevelopmenAADMWWGMTS\D A\1998-01 Pardee\agenda reports\cc 09_1118_2009Annual Rpt.doc 107 --E Tract 5045 —SP — 2 Moorpark Highlands (Pardee Homes & KB Home) oil _ alnut t �� °.eu■:�'�iI Plinil�� i,'U111111rr��� Canyon •.• 'mss R��J. t-4 ��� ♦ JIB\► i/��%IIIIV/I////_ �� a.°°j�..r�°•G i�`\i��llll/// O � /�t� 11 ��� I� r°°j •111►.-� �II�--���0. a❑ /glllllll� m�B�i•i�� ��•�,�/e� • .�°�°°OUT.Ip■.ee.e.melule� � �t s,I rr�P .�� �aum•i-- �.. 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PA9YR.5045-B MF Residential 95 Units PA 3 TR.50453 MF Residential 102 Units Residential Area 45.3 Ac. TR.3043-1 MAJORS 0 Units PA 2TR.3045.7 SF Residential 69 Units 'Open Space Area 47.1 Ac. Residential Area 85 Ac •Habitat Conservation Area 1013 Ac. Residential Area 17.4 Ac TOTAL=92A Ac. •Hwy Dedication 47.1 AC. 'Recreation Area 0.4 AC TOTAL=6.5 AC. NET=45.3 Ac. •Private Open Space 27.0 Ac' 'Parkway Landscape Area 0,3 Ac. NET=8.5 Ac. •Major Roads 27.0 Ac. 'Park Area IPA 6) 7.1 Ac. TONAL:118.1 AA cc PA 6 PARR,SEE TR.5045.1 MAJORS SITE PLAN TOTAL=209.SAc. NET. 0 Ac. PA 3 TR.5045.4 SF Residential 76 Units PA 15045-2 SF Residential 95 Units C C ATTACHMENT 2 Residential Area 21.0 Ac. i Residential Area 16.8 Ac •Recreation Area OS Ac. PA 7 TR.6045.7 School 0 Units 'Detention Basin 14.1 Ac •Parkway Landscape Area 0.6 Ac. 0 -Parkway Landscape Area 0.9 Ac School Area 21.9 Ac TOTAL=22.1 Ac Not to Suis TOTAL=3/A Ac NET=21A Ac TOTAL=21.9 Ac NOTE' MET 16.8 Ac. NET>•219Ac. 'Not included In Net Areas MOORPARK HIGHLANDS M:Irbn11e1024MIMMan RM1aNlpd Uar Pat fe••aMIn11 IM 03-0}2006 ff ,0 3 W PardeeHomes 10880 Wbhite Boulevard,Suite 1900 JAMES C. B I Z Z E L L E. I I I Los Angeles,CA 90024 Vice President Community Devebpment Phone(310)446-1275 Fax (310)446-1293 October 27, 2009 Mr. Joe Vacca Principal Planner City of Moorpark Community Development Department 799 Moorpark Avenue Moorpark, CA 93012 RE: Development Agreement Annual Review Dear Joe: Enclosed are the Application, Fee, and submittal materials requested for our Annual Development Agreement Review. As you know, a good portion of the project has been constructed to date. A status update is provided below. ❑ All lots in Tract 5045-2 (Magnolia Lane) have all been released. ❑ A portion of the lots in Tract 5045-3 (Cherry Hill) have.been released and are occupied. Within Tract 5045-3, a total of 58 homes are still in need of building permits.A large portion of homes in Tract 5045=4 (Cherry Hill) have been released and are now occupied. ❑ Tract 5045-5 (Shenandoah) has been released and all homes are occupied. ❑ A large.portion of the units in Tract 5045-6 (Waverly) have been released and are occupied. The final.phase of the project is under construction and all building permits have been pulled. ❑ The 7-acre park is complete and open to the public. ❑ Tract 5045-8 (Planning Areas 8 and 9)was sold to KB Homes and these areas are no longer under Pardee Ownership. CC ATTACHMENT 3 110 ❑ A Specific Plan Amendment Document, Tract Map, and Development Plan documents have been submitted to change Planning Area 7 from its previous designation as a school site to a single family neighborhood. Approval of the Specific Plan Document for the former school site is currently in process with the City. As you can see, significant progress has been made over the past twelve months toward implementing the project. Please find the enclosed exhibits and tables detailing the information summarized above. We feel that we are in good faith compliance with the Development Agreement and look forward to a successful completion of the project. Since ly, ARD HOMES James C. 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