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Development Agreements

Development agreements are performance contracts between property owners and local governments, requiring mutual consent for approval by the legislative body. These agreements allow cities/counties to provide specific benefits to property owners in return for equivalent or higher community benefits. Their primary use is to extend rights to execute an approved project beyond standard project validity limits, typically preventing city-approved land use permits from expiring within one to two years. Development agreements generally extend vesting to 10-15 years for phased, large-scale projects or those delayed due to issues like soil remediation. They often include community benefits such as user fees or contributions towards public amenities including parks, libraries, and safety facilities. Each agreement varies, with the major restriction being they can't limit a government agency's future legislative rights.

 

Property Disposition

Real estate development is a costly, high-risk endeavor, often split between two key players: the land developer and the builder. Post-recession, builders often prefer buying approved projects to avoid the time, cost, and potential denial of land use proposals. Land developers, on the other hand, bridge the risk gap by developing project plans and securing government approval. This trend is particularly evident in Southern California's urban infill areas.