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HomeMy WebLinkAboutItem 5.4 First Amendment to the Development Agreement for the SCS Dublin Project (Dublin Centre) (PLPA-004414-2026) Agenda Item 5.4 STAFF REPORT CITY COUNCIL Page 1 of 3 DATE: July 21, 2026 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: First Amendment to the Development Agreement for the SCS Dublin Project (Dublin Centre) (PLPA-004414-2026) Prepared by: Amy Million, Community Development Director EXECUTIVE SUMMARY: On June 16, 2026 the City Council considered a request by the Applicant, Landsea Homes of California, LLC to approve a First Amendment to the Development Agreement for the SCS Dublin Project (Dublin Centre). The request is focused on amending Section 5.9 .2 and the restrictions on issuance of residential building permits prior to non-residential building permits. The City Council waived the first reading and introduced the Ordinance amending the Development Agreement. The City Council is now requested to waive the second reading and adopt the proposed Ordinance. STAFF RECOMMENDATION: Waive the second reading and adopt the Ordinance Approving a First Amendment to the Development Agreement for the SCS Dublin Project Between the City of Dublin and Landsea Homes of California, LLC. FINANCIAL IMPACT: All costs associated with the processing of the application are paid by the applicant. DESCRIPTION: Background The SCS Dublin Project includes development of up to 650 residential units and up to 265,000 square feet of retail commercial development on 76.2 acres north of Interstate 580 between Tassajara Road and Brannigan Street. 151 Page 2 of 3 On December 6, 2022 the City entered into a Development Agreement with SCS Development Company for the development of the property (Ordinance No. 15 -22). The Development Agreement established vested development rights and project phasing requirements intended to ensure that the residential portions of the project would not wholly develop in advance of the commercial portions of the site. Specifically, Section 5.9.2 of the Development Agreement prohibited issuance of building permits for for-sale, market-rate residential units until improvement plans had been approved, bonds posted, and a building permit issued for construction of a non-residential building within the Finnian Way Commercial Area. The Applicant is requesting approval of a First Amendment to the Development Agreement to address the broader phasing relationship between the residential neighborhoods and the full Finnian Way Commercial Area. The proposed amendment would allow the developer to pull building permits for up to 250 for-sale, market-rate residential units prior to issuance of building permits for the non-residential buildings within the Finnian Way Commercial Area. Prior to issuance of the 251st residential building permit, the developer would be required to have improvement plans approved, bonds posted, and building permits issued for all five approved non-residential buildings within the Finnian Way Commercial Area and continue making commercially reasonable efforts toward vertical construction of those buildings to occupancy authorization. On June 16, 2026, the City Council waived the first reading and introduced the Ordinance approving the First Amendment to the Development Agreement with added language requiring occupancy authorization for at least three of th e six moderate-income, for-sale, entry-level townhome units required by the Project entitlements prior to issuance of the 251st residential building permit. The Ordinance approving the proposed amendment is included as Attachment 1, with the amendment to the Development Agreement included as Attachment 2. The June 16, 2026 City Council Staff Report is included as Attachment 3. ENVIRONMENTAL DETERMINATION: In compliance with the California Environmental Quality Act (CEQA), on November 15, 2022 the City Council certified the Final Environmental Impact Report (EIR) for the SCS Dublin Project, which included up to 650 residential units, up to 265,000 square feet of retail commercial development and related infrastructure, and landscape improvements. The EIR included the following permits and approvals from the City of Dublin as part of the project: General Plan Amendment, Specific Plan Amendment, Planned Development Rezone (Stage 1 and Stage 2 Development Plan), Development Agreement, Tentative Tract Map(s) / Parcel Map(s), Site Development Review Permit(s), Grading and Improvement Plans, and Building Permits. Upon approval of the SCS Dublin Project, the City Council adopted a Mitigation Monitoring and Reporting Program and a Statement of Overriding Considerations (Resolution No. 135-22). The proposed project is within the scope of the project covered by the SCS Dublin EIR. The circumstances under which the project is to be undertaken have not substantially changed since the SCS Dublin EIR was prepared and will not substantially change with approval of the project. As supported by the project description for the proposed amendment to the 152 Page 3 of 3 Development Agreement, the EIR adequately describes the impacts of the project for the purposes of CEQA and no mitigation measures or new alternatives are required by the project other than those previously disclosed and analyzed in the SCS Dublin EIR. Approval of the amendment to the Development Agreement will not create any site‐specific operations giving rise to environmental effects different from those examined by the EIR or requiring the preparation of an Initial Study. The proposed project is subject to the SCS Dublin EIR Mitigation Monitoring and Reporting Program. Consequently, pursuant to CEQA Guidelines Section 15162, the project impacts are covered by the SCS Dublin EIR and no further environmental review is required for this project. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Ordinance Approving the First Amendment to the Development Agreement for the SCS Dublin Project Between the City of Dublin and Landsea Homes of California, LLC 2) Exhibit A to Ordinance – First Amendment to the Development Agreement for the SCS Dublin Project Between the City of Dublin and Landsea Homes of California, LLC 3) City Council Staff Report dated June 16, 2026 (without attachments) 153 Ord. No. XX-26, Item X.X, Adopted 07/21/26 Page 1 of 3 Attachment 1 ORDINANCE NO. XX - 26 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN APPROVING A FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR THE SCS DUBLIN PROJECT BETWEEN THE CITY OF DUBLIN AND LANDSEA HOMES OF CALIFORNIA LLC (PLPA-004414-2026) (APNs 985-0051-004, 985-0051-005, 985-0051-006, 985-0052-024, and 985-0052-025) The Dublin City Council does ordain as follows: SECTION 1. RECITALS A. The Applicant, Landsea Homes of California LLC (now operating under the name of its parent company, Risewell Homes), is requesting to amend the Development Agreement with the City of Dublin for the SCS Dublin Project (Dublin Centre). The Dublin Centre Project site includes properties identified by Assessor Parcel Numbers 985-0051-004, 985-0051-005, 985-0051-006, 985-0052-024, and 985-0052-025, an approximately 76.2-acre site generally bounded by Tassajara Road, Gleason Drive, Brannigan Street, and Dublin Boulevard. B. On December 6, 2022 the City Council adopted Ordinance No. 15-22 approving a Development Agreement between the City of Dublin and Award Homes, Inc., SCS Development Company, and Santa Clara Valley Housing Group, Inc. for the SCS Dublin Project, which was recorded in the Official Records of Alameda County on January 19, 2023, as document number 2023005968. C. The Applicant is developing the 54-acre portion of the Dublin Centre Project north of Dublin Boulevard identified by Assessor Parcel Numbers 985-0051-006, 985-0052-024, and 985- 0052-025. The Development Agreement encompasses the entirety of the 76 .2-acre site; however, in accordance with Section 9.2.1 of the Development Agreement, a partial assignment of the Development Agreement to the Applicant was executed in May 2024. The requested approval or “Project” is a First Amendment to the Development Agreement. D. The California Environmental Quality Act (CEQA), together with the CEQA Guidelines and City of Dublin CEQA Guidelines and Procedures require that certain projects be reviewed for environmental impacts and that environmental documents be prepared . The project is the subject of an Environmental Impact Report (EIR), State Clearinghouse No. 2022040022. Pursuant to CEQA Guidelines Section 15162, the proposed amendment to the Development Agreement does not result in any impacts beyond what was previously analyzed in the EIR and no further environmental review is required. E. The proposed First Amendment to the Development Agreement for the SCS Dublin Project is attached to this Ordinance as Exhibit A. 154 Ord. No. XX-26, Item X.X, Adopted 07/21/26 Page 2 of 3 F. The Planning Commission held a public hearing on the proposed First Amendment to the Development Agreement on May 26, 2026 for which public notice was given as provided by law. G. The Planning Commission recommended that the City Council approve the First Amendment to the Development Agreement for the SCS Dublin Project by Resolution No. 26-05. H. A public hearing on the proposed First Amendment to the Development Agreement was held before the City Council on June 16, 2026 for which public notice was given as provided by law. I. The City Council has considered the recommendation of the Planning Commission, including the Planning Commission’s reasons for its recommendation, the Agenda Statement, all comments received in writing, and all testimony received at the public hearing. SECTION 2. FINDINGS AND DETERMINATIONS Therefore, on the basis of : (a) the foregoing Recitals which are incorporated herein; (b) the City of Dublin General Plan; (c) the Eastern Dublin Specific Plan; (d) the SCS Dublin Project EIR; (e) the Staff Report; (f) information in the entire record of proceeding for the Project, and on the basis of the specific conclusions set forth below, the City Council finds and determines that: A. The First Amendment to the Development Agreement is consistent with the objectives, policies, general land uses, and programs specified and contained in the City’s General Plan, and in the Eastern Dublin Specific Plan in that: (a) the First Amendment to the Development Agreement incorporates the objectives, policies, general land uses, and programs in the General Plan and Specific Plan and does not amend or modify them; and (b) the Project is consistent with the fiscal policies of the General Plan and Specific Plan with respect to the provision of infrastructure and public services. B. The First Amendment to the Development Agreement is compatible with the uses authorized in, and the regulations prescribed for, the land use districts in which the real property is located because the Development Agreement does not amend the uses or regulations in the applicable land use district. C. The First Amendment to the Development Agreement is in conformity with public convenience, general welfare, and good land use policies in that the Developer’s Project will implement land use guidelines set forth in the Eastern Dublin Specific Plan and the General Plan as articulated in Resolution No. 136-22, amending the General Plan and the Eastern Dublin Specific Plan, adopted by the City Council on November 15, 2022. D. The First Amendment to the Development Agreement will not be detrimental to the health, safety, and general welfare in that the Developer’s proposed Project will proceed in accordance with all the programs and policies of the General Plan, Eastern Dublin Specific Plan, and future Project Approvals and any Conditions of Approval. E. The First Amendment to the Development Agreement will not adversely affect the orderly development of property or the preservation of property values in that the project will be consistent with the General Plan, the Eastern Dublin Specific Plan, and future project approvals. 155 Ord. No. XX-26, Item X.X, Adopted 07/21/26 Page 3 of 3 F. The Development Agreement, as amended by the First Amendment, specifies the duration of the agreement, the permitted uses of the property, and the obligations of the Applicant. The Development Agreement, as amended, contains an indemnity and insurance clause requiring the developer to indemnify and hold the City harmless against claims arising out of the development process, including all legal fees and costs. SECTION 3. APPROVAL The City Council hereby approves the First Amendment to the Development Agreement for the SCS Dublin Project (Exhibit A to the Ordinance) and authorizes the City Manager to execute it. SECTION 4. RECORDATION Within ten (10) days after the First Amendment to the Development Agreement for the SCS Dublin Project is fully executed by all parties, the City Clerk shall submit the First Amendment to the County Recorder for recordation. SECTION 5. POSTING OF ORDINANCE The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three public spaces in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. SECTION 6. EFFECTIVE DATE This Ordinance shall take effect 30 days following its adoption. PASSED, APPROVED, AND ADOPTED BY the City Council of the City of Dublin, on this 21st day of July, 2026 by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________________ Mayor ATTEST: ________________________________ City Clerk 156 RECORDING REQUESTED BY: CITY OF DUBLIN WHEN RECORDED MAIL TO: City Clerk City of Dublin 100 Civic Plaza Dublin, CA 94568 Fee Waived per GC 27383 Space above this line for Recorder's use FIRST AMENDMENT TO THE DEVELOPMENT AGREEMENT FOR THE SCS DUBLIN PROJECT BETWEEN THE CITY OF DUBLIN AND LANDSEA HOMES OF CALIFORNIA) LLC Attachment 2 157 158 159 160 161 162 Agenda Item 6.3 STAFF REPORT CITY COUNCIL Page 1 of 4 DATE: June 16, 2026 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: First Amendment to the Development Agreement for the SCS Dublin Project (Dublin Centre) (PLPA-004414-2026) Prepared by: Amy Million, Community Development Director EXECUTIVE SUMMARY: The City Council will consider a request by the applicant, Landsea Homes of California LLC, to approve a First Amendment to the Development Agreement for the SCS Dublin Project (Dublin Centre). The request is focused on amending Section 5.9 and the restrictions associated with the issuance of residential building permits until a permit is issued for the non -residential portions of the project. The City Council will also consider a finding that the proposed amendment is covered by the SCS Dublin Environmental Impact Report and no further environmental review is required. STAFF RECOMMENDATION: Conduct a public hearing, deliberate, waive the reading, and introduce an Ordinance Approving a First Amendment to the Development Agreement for the SCS Dublin Project Between the City of Dublin and Landsea Homes of California, LLC. FINANCIAL IMPACT: All costs associated with the processing of the application are paid by the applicant. DESCRIPTION: Background On November 15, 2022 the City Council approved the SCS Dublin Project (Resolution No. 136-22), which includes development of up to 650 residential units and up to 265,000 square feet of retail commercial development on 76.2 acres north of Interstate 580 between Tassajara Road and Brannigan Street. 1844 Attachment 3 163 Page 2 of 4 The project represented the first step in implementing the Preferred Vision for the SCS Dublin Project, which stemmed from an extensive City-led community outreach process focused on identifying appropriate land uses for one of the City’s last major undeveloped gateway sites. The adopted vision emphasized creation of a pedestrian-oriented mixed-use district integrating housing, entertainment, retail, open space, and community gathering areas. A key component of that vision was the creation of a neighborhood-serving commercial corridor along Finnian Way featuring small shops, restaurants, outdoor gathering spaces, and shophouses (residential units with ground-floor commercial space). The broader project also envisioned a regional entertainment district south of Dublin Boulevard intended to create a regional dining and entertainment destination. On December 6, 2022 the City entered into a Development Agreement with SCS Development Company for the development of the property (Ordinance No. 15 -22). The Development Agreement encompasses the entirety of the 76.2 acres; however, in accordance with Section 9.2.1 of the Development Agreement, a partial assignment and assumption was executed in May 2024 assigning a portion of the 76.2 acres from SCS Development Company to Landsea Homes of California LLC. Subsequently, in May 2025 New Home Co. acquired Landsea Homes, and merged the two entities into a new national brand under the name Risewell Homes. The Development Agreement established vested development rights and project phasing requirements intended to ensure that the residential portions of the project would not wholly develop in advance of the commercial portions of the site. Specifically, Section 5.9.2 of the Development Agreement prohibited issuance of building permits for for-sale, market-rate residential units until improvement plans had been approved, bonds posted, and a building permit issued for construction of a non-residential building within the Finnian Way Commercial Area. The phasing requirement was intended to support the City’s long-term vision for the site by ensuring that the commercial corridor would develop concurrently with the surrounding residential neighborhoods and would not be deferred indefinitely. On November 25, 2024 the City and the Applicant entered into a letter agreement to clarify how Section 5.9.2 would apply to the initial phase of construction. The clarification was intended to allow the first residential units and the first shophouse buildings to proceed together, recognizing that the shophouse buildings contain ground-floor commercial space and therefore advance the commercial corridor concurrently with the initial residential construction. The letter agreement was executed pursuant to Section 9.4 of the Development Agreement and allowed building permits to be issued for up to 74 for-sale, market-rate residential units in advance of a building permit for a non-residential building within the Finnian Way Commercial Area. The 74 units were required to include units within at least two shophouse buildings containing ground-floor retail condominium spaces, and the Applicant was required to continue making commercially reasonable efforts toward construction of the non-residential portions of the project. 1845164 Page 3 of 4 Market Conditions and Commercial Leasing Considerations As construction of the residential portions of the project has progressed, including backbone infrastructure, vertical construction of residential units, and two shophouse buildings within the Finnian Way Commercial Area, the Applicant has indicated that additional residential development, completed infrastructure, and surrounding site activation are needed to support the long-term success of the Finnian Way commercial corridor and strengthen tenant attraction and leasing activity. The Applicant has expressed that many commercial users prefer to lease space in projects where nearby residential neighbo rhoods, streets, utilities, landscaping, and surrounding vertical construction are substantially complete or actively occupied. Staff acknowledges that the commercial portions of the project are intended to function as an integrated mixed-use environment rather than an isolated retail center. Completion of nearby residential development and supporting infrastructure is anticipated to help create a more complete and marketable commercial setting aligned with the original vision for the project. Additional occupied residential units will help establish the customer base, activity levels, and market confidence necessary to support long-term commercial viability. Proposed Amendment The November 2024 letter agreement addressed phasing for the initial 74 residential units and the first shophouse buildings. The Applicant is now requesting approval of a First Amendment to the Development Agreement to address the broader phasing relationship between the residential neighborhoods and the full Finnian Way Commercial Area. The proposed amendment would allow the developer to pull building permits for up to 250 for-sale, market- rate residential units prior to issuance of building permits for the non-residential buildings within the Finnian Way Commercial Area. Prior to issuance of the 251st residential building permit, the developer would be required to pull building permits for all five approved non-residential buildings within the Finnian Way Commercial Area and continue making commercially reasonable efforts toward vertical construction of those buildings to saleable/leasable condition. The 250-unit threshold represents half of the residential units approved for the project, and the trigger for the 251st permit is tied to building permits for all five approved non-residential buildings rather than a single non-residential building as required in the original agreement. Staff believes the proposed amendment continues to uphold the City’s original intent of ensuring balanced development between the residential and commercial portions of the project while also responding to market realities associated with commercial leasing, tenant attraction, phased site development, and the need to further activate the site prior to full commercial buildout. Planning Commission Review The Planning Commission considered the proposed amendment at their regular meeting on May 26, 2026 and recommended approval. 1846165 Page 4 of 4 ENVIRONMENTAL DETERMINATION: In compliance with the California Environmental Quality Act (CEQA), on November 15, 2022 the City Council certified the Final Environmental Impact Report (EIR) for the SCS Dublin Project, which included up to 650 residential units, up to 265,000 square feet of retail commercial development and related infrastructure, and landscape improvements. The EIR included the following permits and approvals from the City of Dublin as part of the project: General Plan Amendment, Specific Plan Amendment, Planned Development Rezone (Stage 1 and Stage 2 Development Plan), Development Agreement, Tentative Tract Map(s) / Parcel Map(s), Site Development Review Permit(s), Grading and Improvement Plans and Building Permits. Upon approval of the SCS Dublin Project, the City Council adopted a Mitigation Monitoring and Reporting Program and a Statement of Overriding Considerations (Resolution No. 135-22). The proposed project is within the scope of the project covered by the SCS Dublin EIR. The circumstances under which the project is to be undertaken have not substantially changed since the SCS Dublin EIR was prepared and will not substantially change with approval of the project. As supported by the project description, the proposed amendment to the Development Agreement, the EIR adequately describes the impacts of the project for the purposes of CEQA and no mitigation measures or new alternatives are required by the project other than those previously disclosed and analyzed in the SCS Dublin EIR. Approval of the amendment to the Development Agreement will not create any site‐specific operations giving rise to environmental effects different from those examined by the EIR or requiring the preparation of an Initial Study. The proposed project is subject to the SCS Dublin EIR Mitigation Monitoring and Reporting Program. Consequently, pursuant to CEQA Guidelines Section 15162, the project impacts are covered by the SCS Dublin EIR and no further environmental review is required for this project. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: In accordance with State law, a Public Notice was mailed to all property owners and occupants within 300 feet of the subject property. A Public Notice was also published in the East Bay Times and posted at several locations throughout the City. A copy of this Staff Report was posted on the City’s website and provided to the Applicant. ATTACHMENTS: 1) Ordinance Approving the First Amendment to the Development Agreement for the SCS Dublin Project Between the City of Dublin and Landsea Homes of California, LLC 2) Exhibit A to Ordinance – First Amendment to the Development Agreement for the SCS Dublin Project Between the City of Dublin and Landsea Homes of California, LLC 3) Planning Commission Resolution No. 26-05 1847166