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PXXX17-0904, 1008-1700 Stoneridge Mall Road Planning Commission 2 of 7 EXECUTIVE SUMMARY The applicant, Stoneridge Properties, LLC (Simon Property Group), proposes to amend and extend the existing Development Agreement (DA) for the Stoneridge Shopping Center by six months until December 31, 2024, with two options to further extend the term of the DA. The initial option provides the City Manager with the discretion to extend the term up to 24 months, or December 31, 2026, and is subject to performance to specific milestones intended to advance initial phases of Master Planning for Stoneridge Mall, including securing funding of up to a total of $200,000 that would include funding from the applicant and/or the other property owners to support this effort. The second option becomes available on December 31, 2026, and provides the City Manager or City Council with the discretion to extend the DA for an additional two years, or December 31, 2028, based on further progress towards Master Planning. The applicant’s proposal would not allow for additional development beyond the approximately 362,790-square-foot shopping center expansion already approved in the existing DA. BACKGROUND The Stoneridge Shopping Center was constructed in the early 1980’s by the Taubman Company. As part of the City’s approval of the regional shopping center, the Taubman Company participated in funding portions of the I-680/Stoneridge Drive freeway interchange, construction of improvements to the nearby streets and intersections that accessed the shopping center from the I-580 and I-680 freeways, and construction of Fire Station No. 2 (6300 Stoneridge Mall Road). Development Agreement Development agreements (DAs) are public/private contracts specifically authorized by state law with the purpose of providing property owners more certainty about the entitlements and exactions that will apply to their property. In exchange, the local government often receives a legally binding promise that the property owner will provide infrastructure and/or pay fees required by a new project. The property owner receives a legally binding promise it can build a project. The DA sets forth the rights and responsibilities between the City and the property owner/developer. DAs are primarily utilized on large, master-planned developments constructed in a phased manner over a relatively long period of time and often require significant investments in public infrastructure on the part of the private developer . DAs encourage private investment, including the provision of public facilities that would not normally be required under a typical development plan review. In November 1992, the City Council approved the original DA (Exhibit B) for the Stoneridge Shopping Center, which granted rights to expand the shopping center by approximately 178,000 square feet in exchange for developer contributions to various traffic improvements and approved a related Sewer Agreement that reserved and allocated sewer capacity for the uses within the shopping center. On January 6, 1998, the City Council approved the First Amendment to the DA, further increasing the Stoneridge Shopping Center by an additional approximately 202,000 square feet, thereby totaling approximately 380,000 square feet of expansion area, and modified the traffic improvements. An amendment to the Sewer Agreement was also approved at that time which reserved 10,000 gallons of sewer capacity for the shopping center.