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BACKGROUND The subject property is the 30-acre Austin property (3459 Old Foothill Road). The approved project (PUD-58 and Vesting Tentative Subdivision Map 7813) will subdivide the 30.4-acre Austin property into eight lots for new custom homes, four parcels that will be transferred to the property owners on Jorgenson Lane, and one 22-acre parcel that will be dedicated to the City as permanent open space. The approved development plan will preserve the open area surrounding the approved homes in perpetuity and presents the possibility of augmenting the Alviso Adobe Park site. The public infrastructure improvements that are part of the overall development will include the reconstruction of a portion of the southernmost end of Old Foothill Road to accommodate Austin Place and the entrance to the parking area for the Alviso Adobe park, the construction of Austin Place, and the installation of utilities necessary to provide services to the site. At a public hearing held on October 17, 2006, the City Council introduced Ordinance No. 1942, DA Exhibit C, approving PUD-58, the PUD Development Plan for the development of the approximately 30-acre Austin property (3459 Old Foothill Road). At a public hearing on May 23, 2007, the Planning Commission introduced Resolution No. PC-2007-25, DA Exhibit C, approving Vesting Tentative Subdivision Map 7813, for the development subdivision. The final Tract Map has not been submitted for City Council consideration or approval at this time. A requirement of the original Development Plan was to dedicate a 22-acre open space parcel to the City to be set aside as permanent open space at the time of the Final Map approval. As part of this Development Agreement (Attachment 1), the property owner has agreed to dedicate the parcel to the City at this time. City Development agreements are contracts specifically authorized by State law with the intended purpose of giving property owners more certainty about policies which will apply to their property and, therefore, encourage investment, including the provision of public facilities. This Development Agreement sets forth the development rights and responsibilities related to the planned unit development. This Development Agreement also outlines the dedication of the 22-acre open space parcel concurrently with the execution of the Development Agreement with the City. SITE DESCRIPTION The Austin property consists of one parcel totaling approximately 30 acres in area located at 3459 Old Foothill Road. Figure 1 on the next page is an aerial photograph/location map of the site and surrounding area. The Austin property was once part of the Meadowlark Dairy facility, owned and operated by the Austin family. Walter Briggs, great grandfather of Charles and Scott Austin, founded the Meadowlark Dairy in 1919. It was, at one time, the primary supplier of dairy products to Oakland's Children's Hospital. In 1925, it became the first California dairy certified for product purity and quality and continued operation until closing in 1969. Page 2 of 6