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Arroyo Lago Application Processing Terms The following terms will guide City processing of the Arroyo Lago application. These terms will not be incorporated in the pre-annexation and development agreement. 1.City Approvals. The Arroyo Lago project requires the following City approvals: (1) General Plan Amendment to designate the Property as Medium Density Residential; (2) Prezoning the property to Planned Unit Development-MDR pursuant to Municipal Code Chapter 18.68; (3) Planned Unit Development (PUD) development plan pursuant to Municipal Code Section 18.68.110. (4) Vesting Tentative Map pursuant to Municipal Code Chapter 19.22 and the Subdivision Map Act; and (5) Other permits and approvals as determined necessary by the City. 2.Project Design. The proposed project design will be substantially consistent with the Arroyo Lago preliminary application received by the City on December 3, 2024, with the exception that the rear setback for all lots abutting the Village at Ironwood community will be increased to 15 feet if it is feasible without requiring a redesign of the entire project or architecture. City staff will work with the developer to modify the current street sections or areas of the site plan in attempt to increase the westerly property line rear setback to from 14 feet to 15 feet. 3.Application Costs. The developer will pay for all costs related to processing the project applications, including costs of technical studies, preparation of CEQA document(s), professional services, and additional third-party staff support if determined necessary by the City to provide staff capacity to meet requested processing deadlines. 4.Pre-Annexation and Development Agreement. The City and applicant intend to enter into Pre-annexation and Development Agreement (PADA) for the Arroyo Lago project. The PADA will be a legally binding contract between the City and applicant that sets forth the terms, conditions, and obligations for the development project. The City and applicant will enter into the PADA upon City Council approval of project entitlements, subject to mutually- agreed upon terms. 5.CEQA. The City will complete environmental review of the Arroyo Lago project consistent with the California Environmental Quality Act (CEQA). To the extent allowed by CEQA, the City will utilize the Arroyo Lago Environmental Impact Report prepared by Alameda County as the basis for the City’s CEQA review. The applicant will provide the City with timely information and materials as needed to support the City’s CEQA review of the project. 6.Application Schedule. The City and applicant will work together to process the Arroyo Lago application with the goal of completing major milestones as specified in the following schedule: Milestone Target Date Applicant submits City application [1] February 5, 2025 City requests additional information needed to deem application complete March 7, 2025 Applicant provides any additional requested information [2] April 7, 2025 ATTACHMENT 1 Page 218 of 749