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February 18, 2025 Page 4 7357-017acp printed on recycled paper City’s public and utility services, including but not limited to fire, sewer, and water, in the event of annexation. East Bay Residents objects to Staff’s proposed direction to proceed with separate CEQA documents for the Arroyo Lago and East Lakes Projects. Finally, the City is required to fully comply with CEQA review prior to approving any Project-related entitlements, including but not limited to the proposed Pre-Annexation and Development Agreement (“PADA”) for Arroyo Lago or any other annexation-related approvals for the East Lakes Project. The proposed annexations would be the first obligation of City resources towards approval of the Project.11 In Save Tara v. City of West Hollywood, the California Supreme Court concluded that a city’s “conditional agreement to sell land for private development, coupled with financial support, public statements, and other actions by its officials committing the city to the development, was, for CEQA purposes, an approval of the project that was required… to have been preceded by preparation of an EIR.”12 In Save Tara, the city had expressed its favor for the project, defended it publicly, devoted substantial public resources to it, and announced a detailed agreement to go forward with the project, all without CEQA review. The Court held that this approach violated CEQA. Similarly here, the City’s proposal to proceed with annexation of the Project sites triggers the City’s duty to fully examine the Projects’ conformance with CEQA in a single EIR prior to approval. The Staff Report provides that “If the Council wishes to proceed with the Arroyo Lago application, staff will work with the applicant to prepare a Pre-Annexation and Development Agreement (PADA) for the City Council to consider with the project entitlements. A PADA is a legally binding contract between a City and a developer that sets forth the terms, conditions, and obligations for a development project… Over the past several months, City staff and the applicant have discussed terms related to the processing of a City application and terms to include in the PADA.”13 The proposed action by the City Council to proceed with the Arroyo Lago (and East Lakes) applications is the first step towards Project approval, and requires CEQA compliance prior to approval. We urge the City Council to direct City staff to fully comply with CEQA and prepare a single EIR analyzing the Arroyo Lago and East Lakes Project concurrently before the City takes any approval actions related to annexation or entitlement of the Projects. 11 Save Tara v. City of West Hollywood (2008) 45 Cal.4th 116. 12 Save Tara v. City of West Hollywood (2008) 45 Cal.4th 116, 131. 13 Staff Report, p. 14 of 18.