Planning Commission Meeting Agenda Packet 06242026

P25-0116. P25-0116, P25-0018, PUD-154 and Tract 8123 (Arroyo Lago) Planning Commission 19 of 22 Figure 7: Park and Typical Front Yard Planting Pre-Annexation and Development Agreement (PADA) The Pre-Annexation and Development Agreement (PADA) between the City and the applicant would establish the terms and conditions under which the Project may proceed. The key provisions of the PADA are in Exhibit C, and are summarized as follows: ▪ Term of 10 years, with no extensions included. ▪ Completion of public improvements, including the private park with public access allowed, trail to Mohr Avenue; Busch Road improvements as described, including completion of a six-foot sidewalk along Busch Road in front of the City Operations Services Center (OSC); and upstream improvements to the City water and sewer system. Certain of these improvements would be eligible for fee credits or third -party reimbursement by other benefitting projects. ▪ Vesting of Development Impact Fees and City Water and Sewer Connection Fees to the rates in place as of December 2024, subject to any established annual escalator. ▪ Formation of a CFD to address long-term maintenance of public improvements. ▪ Improvements to be designed and constructed per City’s specifications. ▪ Point of Sale Designation for certain construction materials and fixtures. ▪ Developer public benefit contribution in the form of a $3.0 Million contribution towards design and construction of a future El Charro Road Extension. ▪ Affordable Housing Agreement, addressing the provision of 48 deed-restricted Junior ADUs. As described, the City Council discussed the major terms of the PADA at an October 15, 2025 Study Session, and agreed in concept with each of them, with final approval of the PADA to be considered by the City Council as part of the overall project approvals. Based on these terms, staff concludes that the PADA would provide substantial public benefits, including open space preservation, transportation and infrastructure improvements, and financial contributions toward public facilities. In exchange, the applicant receives certainty regarding applicable development regulations and project timing. Accordingly, staff finds that the agreement would result in a balanced exchange of benefits and recommends that the Planning Commission forward a recommendation of approval to the City Council. It is noted that securing the proposed easement across Zone 7’s property is essential to