Planning Commission Meeting Agenda Packet 06242026

P25-0116. P25-0116, P25-0018, PUD-154 and Tract 8123 (Arroyo Lago) Planning Commission 5 of 22 While remaining under the Alameda County jurisdiction, i n August 2022, 330 Land Company, on behalf of the landowner, USL Pleasanton LP (USL), filed an SB 330 application with the County of Alameda for the construction of a residential community consisting of 194 residential units and 49 JADUs (hereinafter, the County Project). The County Project included on-site utility facilities for sanitary sewer, water, and stormwater retention and treatment, and thus did not propose to connect to City of Pleasanton utilities or systems. While the application was undergoing review by County staff, the applicant team continued their efforts to discuss annexation to Pleasanton with City staff. The County Project was approved by the Alameda County Board of Supervisors, on appeal, on February 10, 2026, and this entitlement remains valid, although the entitled development is not being pursued pending the City’s consideration of the proposed annexation and development of the site under the current applications. City Council Direction on Annexation and Development Understanding the expressed interest by the applicant in developing the project within Pleasanton, in August 2024, the City Council discussed options and considerations for annexation of this and another property in East Pleasanton. Staff was directed to continue the discussion with the applicant and develop additional analysis to support the consideration of the advantages and disadvantages of annexation. On December 3, 2024, 330 Land Company (the applicant) submitted a preliminary review application to t he City for the Arroyo Lago project. The additional analysis was completed and presented to City Council on February 18, 2025, including evaluation of fiscal impacts, infrastructure capacity, traffic impacts, and other concerns, as well as strategies to address concerns raised by neighbors to the west of the Arroyo Lago development. After considering this information, the City Council indicated its general support for annexation and provided directions to staff to process the application, including the following design modifications to be reflected in the City application to reduce impacts of the proposed project on the existing residences located to the immediate west: ▪ Only single-story residences to be located along the westerly property line. ▪ Homes along the westerly property line to provide a rear yard setback of 14 feet. ▪ Lower the project site grades to be comparable to the existing residential lots on the west; therefore, lower the height of the wall along the westerly property line. The City Council also provided direction to staff and the applicant to continue discussions on the key terms of a future Pre-Annexation and Development Agreement (PADA). In accordance with the Council's direction, on December 3, 2024, the applicant submitted a preliminary review application to the City, followed by a formal application on February 25, 2025. Following direction to develop initial terms for the PADA, staff worked with the applicant to develop an outline of such terms, which were presented to the City Council on October 21, 2025 for review and direction – this direction is reflected in the draft PADA as it is included in Exhibit C and discussed in more detail below. Annexation and the Local Agency Formation Commission (LAFCo) The project includes proposed annexation into Pleasanton, which requires separate approval by the Alameda County LAFCo, pursuant to the provisions of the Cortese Knox Hertzberg