CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 5 of 8 provision is included to account for the event that not all of the owners decide to contribute, and still allow the extension to be provided. • If matching funding is not secured from the other Mall owners, then the applicant may opt to contribute the equivalent amount of additional funds (up to $150,000), in which case the DA would be extended for another 24 months through December 31, 2026. • At the discretion of the City Manager or the City Council, the DA may be extended for an additional two years from December 31, 2026, or December 31, 2028, if it is determined that adequate progress has been made towards the master planning effort. Each of the above extensions is contingent on the completion of performance milestones intended to advance the Stoneridge Mall Framework and additional master planning for the mall. The proposed Sixth Amendment and the existing agreements are attached as Attachment 1 and Attachment 2, respectively. Analysis During portions of the time period covered by the last three extensions of the DA, the effects of the COVID-19 pandemic have continued to affect the overall retail and commercial development market, and although there has been some recovery, it is not yet complete. The applicant has indicated it needs additional time to evaluate these changes in the retail climate, and how to best proceed with expansion of the shopping center to remain competitive and meet current market demands/trends that have evolved over the past several years and have most likely shifted again post-pandemic. Additionally, since the 2021 extension, the City adopted the Stoneridge Mall Framework components document, and completed the 6th Cycle Housing Element update, with sites identified at Stoneridge Shopping Center among the housing inventory sites that will be rezoned to allow for additional residential uses on certain portions of the mall. Such sites are in addition to those properties within the Mall identified in the 4th and 5th Cycle Housing Elements, one of which is the location of the Stoneridge Mall Apartments project (approved in early 2023). The Stoneridge Mall Framework, as adopted in January 2023, provides a conceptual land use and circulation plan, and policy guidance for future development/redevelopment of the Shopping Center. It is noted that residential development permitted by the 4th, 5th and 6th Cycle Housing Elements is not part of the DA and is subject to the Objective Design Standards and process for approval set forth in other City regulations. The proposed Sixth Amendment provides that the applicant shall contribute $50,000 to allow for an initial six-month extension, and the applicant may agree to fund up to an additional $150,000 toward the Stoneridge Mall Framework process – such funding which would be necessary to secure a further two-year extension through December 31, 2026. The Development Agreement also includes a provision for the other Mall owners to each provide a similar funding amount, in which case the DA would extend for an additional 18 months after December 31, 2024. The DA also provides for an additional two-year extension through December 31, 2028, at the discretion of the City Manager or City Council, upon demonstration of material progress toward a Master Plan. In addition to the funding described above, the DA provides for milestones in Page 319 of 428