2025-01124 [Pass for Publication] Airport South Industrial Annexation (P21-017) — Sacramento City Council, October 21, 2025 (part 2 of 6)

4.1 INTRODUCTION
Section 15097 of the California Environmental Quality Act (CEQA) requires all State and local agencies to establish monitoring or reporting programs for projects approved by a public agency whenever approval involves the adoption of either a “mitigated negative declaration” or specified environmental findings related to environmental impact reports.

The following is the Mitigation Monitoring and Reporting Program (MMRP) for the Airport South Industrial Park Project (proposed project). The intent of the MMRP is to ensure implementation of the mitigation measures identified within the EIR for the proposed project. Unless otherwise noted, the cost of implementing the mitigation measures as prescribed by this MMRP shall be funded by the applicant.

4.2 COMPLIANCE CHECKLIST
The MMRP contained herein is intended to satisfy the requirements of CEQA as they relate to the EIR prepared for the proposed project . This MMRP is intended to be used by City of Sacramento staff, and mitigation monitoring personnel to ensure compliance with mitigation measures during project implementation. Mitigation measures identified in this MM RP were developed in the EIR.

The EIR presents a detailed set of mitigation measures that will be implemented throughout the lifetime of the project. Mitigation is de fined by CEQA Guidelines, Section 15370, as a measure that:

• Avoids the impact altogether by not taking a certain action or parts of an action; • Minimizes impacts by limiting the degree or magnitude of the action and its implementation;
• Rectifies the impact by repairing, rehabilitating, or restoring the impacted environment; • Reduces or eliminates the impact over time by preservation and maintenance operations during the life of the project; or
• Compensates for the impact by replacing or providing substitute resources or environments.

The intent of the MM RP is to ensure the implementation of adopted mitigation measures. The MMRP will provide for monitoring of construction activities as necessary and in- the-field identification and resolution of environmental concerns.

Monitoring and documenting the implementation of mitigation measures will be coordinated by the City of Sacramento. The table attached to this report identifies the mitigation measures, the monitoring action for each mitigation measure, the responsible party for the monitoring action, and timing of the monitoring action. The applicant will be responsible for fully understanding and

4. MITIGATION MONITORING

AND REPORTING PROGRAM

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

effectively implementing the mitigation measures contained within the MM RP. The City will be responsible for monitoring compliance.

4.3 MITIGATION MONITORING AND REPORTING PROGRAM
The following table indicates the mitigation measure number, the impact the measure is designed to address, the measure text, the monitoring agency, implementation schedule, and an area for sign-off indicating compliance.

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

4.2 Agricultural Resources

4.2-1 Impacts related to the
conversion of Prime
Farmland, Unique
Farmland, or Farmland
of Statewide Importance
to non-agricultural use.

Industrial Park

4.2-1 The City shall ensure that, prior to impacting
agricultural/open space resources within the
project site by the issuance of a grading
permit, any and all project -related subdivision
maps satisfy the On-Site Open Space and Off-
Site Open Space requirements a s defined
herein. Open space dedications made
pursuant to the Natomas Basin Habitat
Conservation Plan (HCP) shall be made to the
City and/or the Natomas Basin Conservancy
and shall be located in the Natomas Basin.

The remaining non- Natomas Basin HCP
mitigation acreage may be located in
unincorporated Sacramento County, Yolo
County, and/or Sutter County, and may be
held and managed by a qualified third- party
entity with the approval of the City.

Preservation shall be ensured in perpetuity via
conservation easement, fee, or irrevocable
offer of dedication to the satisfaction of the
City. All mitigation acreage shall consist of land
of comparable agricultural and habitat value as
the agricultural/open space resources
impacted by the proposed project, as
determined by the City.

a. On-Site Agricultural/Open Space
Requirements: The following on- site
open space properties are consistent
with the mitigation requirements:

• 86 acres of detention basins.

City of
Sacramento
Community
Development
Department
Prior to issuance of
a grading permit

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

b. Off-site Agricultural/Open Space
Requirements: The following Off-Site
Open Space properties:

• 141.51 acres of currently
unidentified agricultural/open
spaced mitigation property to
be located in the
unincorporated Sacramento
County and/or unincorporated
Sutter County.
• 50-acre habitat mitigation
property APN 225-0020-014.
• 67.59-acre habitat mitigation
property APN 225-0020-015.

c. Phasing: The Airport South Industrial
Project will develop in phases, as
such, the amount of On- Site and Off -
Site Open Space to be provided
hereunder shall be in proportion to the
amount of acreage proposed to be
impacted by such development by the
issuance of a grading permit therefor.

d. With respect to each unidentified open
space property listed above, and any
proposed substitution of an open
space property listed above, the City
must determine, in writing, that the
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
proposed agricultural/open space
property and/or acreage satisfies the
requirements for agricultural/open
space to be counted towards the
requisite Off -Site Agricultural/Open
Space acreage total.

e. Nothing in this Agricultural/Open
Space Mitigation is intended to limit or
restrict USFWS and CDFW in their
consideration of Developer's
applications for incidental take and/or
other habitat mitigation permits or
other entitlements under the federal
Endangered Species Act and the
California Endangered Species Act.

4.2-5 Impacts related to
cumulative loss of
agricultural land.

4.2-5 Implement Mitigation Measure 4.2-1. See Mitigation Measure 4.2-1
See Mitigation
Measure 4.2-1

4.3 Air Quality, Greenhouse Gas Emissions, and Energy

4.3-1 Conflict with or obstruct
implementation of the
applicable air quality plan
during project
construction.

4.3-1(a) The following SMAQMD’s Basic Construction
Emissions Control Practices (BMPs) for dust
control shall be included through a notation on
all project grading plans prior to the issuance
of grading permits, to the satisfaction of the
City of Sacramento Community Development
Department and SMAQMD.

• Water all exposed surfaces two times
daily. Exposed surfaces include, but
are not limited to soil piles, graded
areas, unpaved parking areas, staging
areas, and access roads;
City of
Sacramento
Community
Development
Department

SMAQMD

Prior to issuance of
grading permits

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
• Cover or maintain at least two feet of
free board space on haul trucks
transporting soil, sand, or other loose
material on the site. Any haul trucks
that would be traveling along freeways
or major roadways should be covered;
• Use wet power vacuum street
sweepers to remove any visible
trackout mud or dirt onto adjacent
public roads at least once a day. Use
of dry power sweeping is prohibited;
• Limit vehicle speeds on unpaved
roads to 15 miles per hour (mph);
• All roadways, driveways, sidewalks,
parking lots to be paved should be
completed as soon as possible. In
addition, building pads should be laid
as soon as possible after grading
unless seeding or soil binders are
used;
• Minimize idling time either by shutting
equipment off when not in use or
reducing the time of idling to 5 minutes
[CCR Title 13, Sections 2449(d)(3)
and 2485]. Provide clear signage that
posts this requirement for workers at
the entrances to the site;
• Provide current certificate(s) of
compliance for CARB’s In- Use Off -
Road Diesel-Fueled Fleets Regulation
[CCR Title 13, Sections 2449 and
2449.1]. For more information contact
CARB at 877 -593-6677,

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
[email protected], or
www.arb.ca.gov/doors/compliance_
cert1.html.; and
• Maintain all construction equipment in
proper working condition according to
manufacturer’s specifications. The
equipment must be checked by a
certified mechanic and determine to
be running in proper condition before
it is operated.

4.3-1(b) Prior to approval of any Improvement Plans,
the project applicant shall provide proof of
compliance with the following to the
satisfaction of the City of Sacramento
Community Development Department and
SMAQMD:

The project applicant shall show on the
plans via notation that the contractor shall
ensure that the heavy -duty off -road
vehicles (50 horsepower or more) to be
used in the construction of all project
components (i.e., construction of the
industrial park, n onparticipating parcels,
and off-site force main), including owned,
leased, and subcontractor vehicles, shall
be a combination of engine Tier 3 or Tier 4
off-road construction equipment, or hybrid,
electric, or alternatively fueled equipment
(or any combin ation of the above),
sufficient to achieve a fleet -wide average
reduction in construction -related NOX
emissions to below the applicable

City of
Sacramento
Community
Development
Department

SMAQMD

Prior to the approval
of any Improvement
Plans
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
SMAQMD thresholds of significance (85
lbs/day). For instance, the emissions
presented in Table 4.3- 8 of the Draft EIR
were achieved by requiring all equipment
used during construction to be engine Tier

4. In addition, all off -road equipment
operating at the construction site must be
maintained in proper working condition
according to manufacturer’s
specifications. Idling shall be limited to five
minutes or less in accordance with the In-
Use Off -Road Diesel Vehicle Regulation
as required by CARB. Clear signage
regarding idling restrictions shall be placed
at the entrances to the construction site.

Portable equipment over 50 horsepower
must have either a valid SMAQMD Permit
to Operate (PTO) or a valid statewide
Portable Equipment Registration Program
(PERP) placard and sticker issued by
CARB.

Conformance with the foregoing
requirements shall be included as notes
and be confirmed through review and
approval of grading plans by the City of
Sacramento Community Development
Department.

4.3-2 Conflict with or obstruct
implementation of the

4.3-2 Prior to the approval of project improvement
plans for both the industrial park and
nonparticipating parcels, the project applicant
City of
Sacramento
Community
Prior to the approval
of project
Improvement Plans

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
applicable air quality plan
during project operation.
shall comply with the provisions of the Air
Quality Management Plan prepared for the
proposed project (see Appendix D), and
incorporate all requirements into the Airport
South Industrial Project conditions of approval.

The measures included in the AQMP inc lude
the following:

1. Natural gas use shall be prohibited in
all land uses, with the exception of the
restaurant kitchen.

2. The project shall implement a
Transportation Management
Association (TMA), such as Jibe North
Natomas (for more information, visit
https://jibe.org/). The TMA must
comply with the following criteria, and
is subject to approval by the City of
Sacramento and SMAQMD:
a. The TMA must be legally
constituted as a non- profit
organization,
Property/Business
Improvement District (PBID),
or a government entity with a
non-revocable funding
mechanism, such as a
community finance district,
dedicated to TMA operations
and services; and
b. The TMA must provide a
minimum level of TDM
services to employees and
residents within the area
Development
Department
for both the
industrial park and
nonparticipating
parcels
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
covered by the AQMP
sufficient to achieve the
emission reductions claimed
by the measure. Services
must be enumerated and
funded to the satisfaction of
the lead agency and
SMAQMD.

3. The project applicant shall require all
tenants of the on-site industrial uses to
use zero-emission forklifts.

4. The project applicant shall require that

4.5 percent of the heavy -duty vehicle
fleet be zero emission by full buildout
of the annexation area. It should be
noted that in the event there is a
disruption in the manufacturing of zero
emission vehicles/truc
ks or that
sufficient vehicles/trucks are not
commercially available for the
intended application, the “clean fleet
requirements” may be adjusted as
minimally as possible by the City’s
Community Development Department
to accommodate the manufacturing
disruption or unavailability of
commercially available
vehicles/trucks.

5. The project shall provide complete
sidewalks separated from roadway
throughout the project site and
pedestrian crossing at intersections
on-site to ensure employees and
visitors can walk between land
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
uses/businesses. The project shall
also connect the pedestrian network
on-site to the adjacent properties off -
site (including South Bayou Way,
Power Line Road and potential future
connections) as indicated on the
preliminary site plan when those
portions of the site develop.

6. Provide EV Ready parking spaces at
the ratio with which the current
CalGreen Tier 2 standards require EV
Capable spaces.

4.3-3 Expose sensitive
receptors to substantial
pollutant concentrations.

4.3-3 If Parcel 8 (the 64.3 -acre nonparticipating
parcel owned by Cayocca) is proposed to be
developed with a distribution center (i.e., an
industrial warehouse that accommodates more
than 100 heavy-duty trucks per day, more than
40 trucks with operating transport refrigeration
units [TRUs] per day, or where TRU unit
operations exceed 300 hours per week) within
1,000 feet of a sensitive receptor, prior to the
issuance of any building permit, a Health Risk
Assessment (HRA) shall be conducted to
calculate the cancer risk associated with on-
site truck diesel particulate matter (DPM)
emissions.

The HRA shall be prepared in accordance with
SMAQMD guidelines, as well as the guidelines
identified in the California Office of
Environmental Health Hazard Assessment
(OEHHA) Guidance Manual for Preparation of
Health Risk Assessments. If health risks
associated with Parcel 8 are determined to
City of
Sacramento
Community
Development
Department
As part of the
application for any
development on
Parcel 8

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
exceed the applicable SMAQMD thresholds, a
qualified air quality consultant shall identify
measures sufficient to reduce the project’s
health risks to below the SMAQMD’s
thresholds of significance. Reduction
measures may include, but are not limited to,
relocation of loading docks to further than
1,000 feet from sensitive receptors,
electrification of the heavy -duty truck fleet,
and/or other options as they become available.

Conformance with the foregoing requirement ,
including implementation of identified reduction
measures, shall be confirmed through review
and approval of the HRA by the City of
Sacramento Community Development
Department.

4.3-6 Result in a cumulatively
considerable net
increase of any criteria
pollutant for which the
project region is in non-
attainment under an
applicable federal or
State ambient air quality
standard (including
releasing emissions
which exceed
quantitative thresholds
for ozone precursors).

4.3-6 Implement Mitigation Measure 4.3-2. See Mitigation Measure 4.3-2
See Mitigation
Measure 4.3-2

4.3-7 Generation of GHG
emissions that may have
a significant impact on
the environment or
conflict with an
Construction

4.3-7(a) Prior to the initiation of construction of the industrial park, the project applicant shall
demonstrate that construction- related GHG
emissions would be reduced to 935 MTCO2e/yr

City of
Sacramento
Community

Prior to the initiation
of construction of
the industrial park

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
applicable plan, policy or
regulation of an agency
adopted for the purpose
of reducing the
emissions of GHGs.
and shall submit proof to the City of
Sacramento Community Development
Department. In addition, prior to the initiation of
construction of the nonparticipating parcels,
the future applicant of all future development
proposals on such parcels shall demonstr ate
that construction- related GHG emissions
would be reduced to 165 MTCO2e/yr and shall
submit proof to the City of Sacramento
Community Development Department.

Construction-related GHG emissions can be
reduced through several options. The
SMAQMD recommends the following options
for reducing greenhouse gas emission from
construction projects:

• Modify the construction schedule to
reduce the intensity of construction to
lower emissions;
• Ensure that phases of development do
not overlap;
• Use of renewable diesel for
construction fuel rather than diesel;
• Improve fuel efficiency from
construction equipment by:
o Minimizing idling time either
by shutting equipment off
when not in use or reducing
the time of idling to no more
than three minutes (five-
minute limit is required by the
state airborne toxics control
measure [Title 13, sections
Development
Department

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
2449(d)(3) and 2485 of the
California Code of
Regulations]). Provide clear
signage that posts this
requirement for workers at the
entrances to the site; and
o Using equipment with new
technologies (repowered
engines, electric drive trains).
• Perform on- site emission reductions
such as implementing on-site material
hauling with trucks equipped with on-
road engines (if determined to be less
emissive than the off-road engines) or
real, quantifiable, permanent,
verifiable, and enforceable on- site
emission reductions;
• Use alternative fuels for generators at
construction sites such as propane or
solar, or use electrical power;
• Use a CARB -approved low carbon
fuel for construction equipment; (NO X
emissions from the use of low carbon
fuel must be reviewed and increases
mitigated.)
• Encourage and provide carpools,
shuttle vans, transit passes and/or
secure bicycle parking for construction
worker commutes;
• Reduce electricity use in the
construction office by using LED
bulbs, powering off computers every

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
day, and replacing heating and cooling
units with more efficient ones;
• Recycle or salvage non- hazardous
construction and demolition debris
(goal of at least 75 percent by weight);
• Use locally sourced or recycled
materials for construction materials
(goal of at least 20 percent based on
costs for building materials, and based
on volume for roadway, parking lot,
sidewalk and curb materials). Wood
products utilized should be certified
through a sustainable forestry
program;
• Minimize the amount of concrete for
paved surfaces or utilize a low carbon
concrete option;
• Produce concrete on- site if
determined to be less emissive than
transporting ready mix;
• Use SmartWay certified trucks for
deliveries and equipment transport;
and
• Develop a plan to efficiently use water
for adequate dust control.

The project applicant may elect to implement
any combination of the foregoing measures to
reduce construction- related GHG emissions.

All GHG emissions reductions must be
quantified. Compliance with the
aforementioned measures shall be ensured by

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

If the quantified reduction measures do not
reduce construction-related GHG emissions to
below 935 MTCO 2e/yr for the industrial park
and 165, MTCO 2e/yr for the nonparticipating
parcels, offsite carbon credits may be
purchased to make up the difference. The
purchase of off -site mitigation credits shall be
negotiated with the City and SMAQMD at the
time that credits are sought. Off -site mitigation
credits shall be real, quantifiable, permanent,
verifiable, enforceable, and additional,
consistent with the sta ndards set forth in
Health and Safety Code section 38562,
subdivisions (d)(1) and (d)(2). The offsets shall
be retired, and emissions must be offset
through the year 2045. Such credits shall be
based on CARB -approved protocols that are
consistent with the criteria set forth in
subdivision (a) of Section 95972 of Title 17 of
the California Code of Regulations, and shall
not allow the use of offset projects originating
outside of California, except to the extent that
the quality of the offsets, and their suff iciency
under the standards set forth herein, can be
verified by the City of Sacramento and/or the
SMAQMD. Such credits must be purchased
through one of the following: (i) a CARB -
approved registry, such as the Climate Action
Reserve, the American Carbon Re gistry, and
the Verified Carbon Standard; (ii) any registry
approved by CARB to act as a registry under

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

Operations

4.3-7(b) Prior to the approval of any building permits, the applicant shall implement the following
measures:

1. The proposed project shall be
designed such that all project
components, with the exception of the
on-site restaurant kitchens, are built
all-electric. The kitchens shall include
pre-wiring to allow for the future retrofit
of all natural gas appliances wit h all-
electric appliances. If the kitchens are
electrically powered and do not use
natural gas, further mitigation is not
required; and

2. If natural gas is installed in the
kitchens, the applicant shall reduce
GHG emissions associated with on-
site restaurant kitchens at a rate of
158.77 MTCO 2e/yr through any
combination of the following on- site
mitigation options:

o Requiring on- site renewable
energy generation in excess
of Code requirements.
o Increasing the number of EV
charging stations.
o Constructing on- site or fund
off-site carbon sequestration

City of
Sacramento
Community
Development
Department

SMAQMD

Prior to approval of
any building permits

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
projects (such as tree
plantings or reforestation
projects).
o Implementing a
Transportation Demand
Management Program.
o Should new and quantifiable
GHG emission reduction
technology become available,
the applicant may otherwise
achieve the required GHG
emissions reduction through
other means, subject to
review and approval by the
City of Sacramento and the
SMAQMD.

The project applicant may elect to
implement any combination of the
foregoing measures to reduce
operational GHG emissions. All GHG
emissions reductions must be
quantified.

If it is determined that the above on-
site mitigation options are not
sufficient to achieve the required GHG
reduction, subject to the discretion of
the City of Sacramento and the
SMAQMD, off-site carbon credits may
be purchased to make up the
difference. The purchase of off -site
mitigation credits shall be negotiated
with the City and SMAQMD at the time

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
that credits are sought. Off -site
mitigation credits shall be real,
quantifiable, permanent, verifiable,
enforceable, and additional,
consistent with the standards set forth
in Health and Safety Code section
38562, subdivisions (d)(1) and (d)(2).

The offse ts shall be retired, and
emissions must be offset through the
year 2045. Such credits shall be
based on CARB-approved protocols
that are consistent with the criteria set
forth in subdivision (a) of Section
95972 of Title 17 of the California
Code of Regu lations, and shall not
allow the use of offset projects
originating outside of California,
except to the extent that the quality of
the offsets, and their sufficiency under
the standards set forth herein, can be
verified by the City of Sacramento
and/or th e SMAQMD. Such credits
must be purchased through one of the
following: (i) a CARB -approved
registry, such as the Climate Action
Reserve, the American Carbon
Registry, and the Verified Carbon
Standard; (ii) any registry approved by
CARB to act as a registry
under the
California Cap and Trade program; or
(iii) any registry established by
SMAQMD.

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

4.3-7(c) Consistent with SMAQMD’s GHG BMP-2, prior
to the approval of project improvement plans,
the applicant shall indicate that EV Ready
parking spaces shall be installed throughout
the project site at the ratio with which the
current CalGreen Tier 2 st andards require EV
Capable spaces. Compliance with this
measure shall be ensured by the City of
Sacramento Community Development
Department.

4.3-7(d) Implement Mitigation Measure 4.12-3.

City of
Sacramento
Community
Development
Department

See Mitigation
Measure 4.12-
3 Prior to the approval
of project
Improvement Plans

See Mitigation
Measure 4.12-3

4.4 Biological Resources

4.4-1 Impacts to special-status
plant species, either
directly (e.g., threaten to
eliminate a plant
community) or through
substantial habitat
modifications.

Industrial Park and Nonparticipating Parcels

4.4-1(a) Prior to the issuance of any grading permit and commencement of ground-disturbing activities
associated with development of the industrial
park footprint and nonparticipating parcels, the
following Natomas Basin Habitat Conservation
Plan (HCP) Take Avoidance, Minimization,
and Mitigation Measures shall be
implemented, as applicable:

Natomas Basin HCP Section V.A.1:

Not less than 30 days or more than 6 months
prior to commencement of construction

City of
Sacramento
Community
Development
Department

U.S. Fish and
Wildlife
Service
(USFWS)

California
Department of

Prior to the
issuance of any
grading permit and
commencement of
ground-disturbing
activities

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
activities, a pre -construction survey of the
portion of the site to be disturbed shall be
conducted to determine the status and
presence of, and likely impacts to, all Covered
Species on the site. However, pre-construction
surveys for an individual species may be
completed up to one year in advance if the sole
period for reliable detection of that species is
between May 1 and December 31. The project
proponent will be responsible for contracting
with qualified biological consultants to carry
out the pre- construction surveys, and as
necessary, to implement specific take
minimization, and other Conservation
Measures set forth in the Natomas Basin HCP
and approved by the Wildlife Agencies.

The results of the pre- construction surveys
along with recommended take minimization
measures shall be documented in a report and
shall be submitted to the City, USFWS, CDFG
and the Natomas Basin Conservancy. Based
upon the survey results, the City will identify
applicable take avoidance and other site-
specific Conservation Measures, consistent
with the Natomas Basin HCP, required to be
carried out on the site. The approved pre-
construction survey documents and list of
Conservation Measures will be submitte d by
the developer to the City to demonstrate
compliance with the Natomas Basin HCP.

Fish and
Wildlife
(CDFW)

Natomas
Basin
Conservancy

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

If Sanford’s arrowhead plants are identified
through a pre- construction survey, the City
shall provide notice to USFWS, CDFG and the
California Native Plant Society. Under such
circumstances, the development proponent
shall allow the transplantation of plants prior to
site disturbance.

Natomas Basin HCP Section V.A.5.p:

Prior to issuance of a grading permit, the City
shall require a pre-construction survey. If such
survey determines Boggs Lake hedge-hyssop,
Sacramento orcutt grass, Slender orcutt grass,
Colusa grass, or legenere are present, the City
shall require the dev eloper to consult with
USFWS to determine appropriate measures to
avoid and minimize loss of individuals.

4.4-1(b) With respect to special -status plant species
not covered under the Natomas Basin HCP,
prior to the commencement of construction
activities associated with the nonparticipating
parcels, a qualified biologist shall conduct
preconstruction protocol -level surveys for
special-status plants with potential to occur on-
site. The surveys may be conducted
concurrently with the preconstruction surveys
set forth by Mitigation Measure 4.4- 1(a). The
results of the surveys shall be submitted for
review and approval to the City of Sacramento
Community Development Department and

City of
Sacramento
Community
Development
Department

CDFW

USFWS

Prior to the
commencement of
construction
activities associated
with the
nonparticipating
parcels

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

If any special-status plants are located during
the foregoing surveys, the appropriate agency
(i.e., CDFW and/or USFWS, depending on the
species) shall be consulted to develop
appropriate mitigation for the proposed project
for expected impacts. If special -
status plants
would be impacted, as determined by the
qualified biologist, a mitigation plan shall be
developed in coordination with the appropriate
agency and submitted for review and approval
to the City of Sacramento Community
Development Department. M itigation shall
include that if special-status perennial species
are found in areas proposed for disturbance,
the plants shall be dug up and transplanted
into a suitable avoided area on- site prior to
construction. If the plant found is an annual,
then mitigation shall consist of collecting seed-
bearing soil and spreading it into a suitable
location.

4.4-3 Have a substantial
adverse effect, either
directly or through
habitat modifications, on
giant garter snake.

Industrial Park and Nonparticipating Parcels

4.4-3(a) Prior to the issuance of any grading permit and commencement of ground- disturbing
activities, the project applicant shall ensure
that the following Natomas Basin HCP Take
Avoidance, Minimization, and Mitigation
Measures have been implemented:

Natomas Basin HCP Section V.A.5.a:

City of
Sacramento
Community
Development
Department

USFWS

Prior to the
issuance of any
grading permit and
commencement of
ground-disturbing
activities

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

1. Within the Natomas Basin, all
construction activity involving
disturbance of habitat, such as site
preparation and initial grading, is
restricted to the period between May 1
and September 30. This is the active
period for the giant garter snake and
direct mortality is lessened, because
snakes are expected to actively move
and avoid danger.

2. Pre-construction surveys for giant
garter snake, as well as other NBHCP
Covered Species, must be completed
for all development projects by a
qualified biologist approved by
USFWS. If any giant garter snake
habitat is found within a specific site,
the follo wing additional measures
shall be implemented to minimize
disturbance of habitat and harassment
of giant garter snake, unless such
project is specifically exempted by
USFWS.

3. Between April 15 and September 30,
all irrigation ditches, canals, or other
aquatic habitat should be completely
dewatered, with no puddled water
remaining, for at least 15 consecutive
days prior to the excavation or filling in
of the dewatered habitat. Ma
ke sure
dewatered habitat does not continue
to support giant garter snake prey,
which could detain or attract snakes
into the area. If a site cannot be

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
completely dewatered, netting and
salvage of prey items may be
necessary. This measure removes
aquatic habitat component and allows
giant garter snake to leave on their
own.

4. For sites that contain giant garter
snake habitat, no more than 24- hours
prior to start of construction activities
(site preparation and/or grading), the
project area shall be surveyed for the
presence of giant garter snake. If
construction activities stop on the
project site for a period of two weeks
or more, a new giant garter snake
survey shall be completed no more
than 24- hours prior to the re- start of
construction activities.

5. Confine clearing to the minimal area
necessary to facilitate construction
activities. Flag and designate avoided
giant garter snake habitat within or
adjacent to the project as
Environmentally Sensitive Areas. This
area shall be avoided by all
construction personnel.

6. Construction personnel completing
site preparation and grading
operations shall receive USFWS
approved environmental awareness
training. This training instructs workers
on how to identify giant garter snakes
and their habitats, and what to do if a
giant ga rter snake is encountered

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

7. If a live giant garter snake is found
during construction activities,
immediately notify the USFWS and
the project’s biological monitor. The
biological monitor, or his/her
assignee, shall do the following:

a. Stop construction in the
vicinity of the snake. Monitor
the snake and allow the snake
to leave on its own. The
monitor shall remain in the
area for the remainder of the
work day to make sure the
snake is not harmed or if it
leaves the site, does not
return. Escape routes for giant
garter snake should be
determined in advance of
construction and snakes
should always be allowed to
leave on their own. If a giant
garter snake does not leave
on its own within 1 working
day, further consultation with
USFWS is required.

8. Upon locating dead, injured or sick
threatened or endangered wildlife
species, the project applicant must
notify within 1 working day the

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
Service’s Division of Law Enforcement
(2800 Cottage Way, Sacramento CA
95825) or the Sacramento Fish and
Wildlife Office (2800 Cottage Way,
Room W2605, Sacramento, CA
95825, telephone 916 414- 6600).

Written notification to both offices
must be made within 3 calendar days
and must include the date, time, and
location of the finding of a specimen
and any other pertinent information.

9. Fill or construction debris may be used
by giant garter snake as an over -
wintering site. Therefore, upon
completion of construction activities
remove any temporary fill and/or
construction debris from the site. If this
material is situated near undisturbed
giant garter snake habitat and it is to
be removed between October 1 and
April 30, it shall be inspected by a
qualified biologist to assure that giant
garter snake are not using it as
hibernaculae.

10. No plastic, monofilament, jute, or
similar erosion control matting that
could entangle snakes will be placed
on a project site when working within
200 feet of snake aquatic or rice
habitat. Possible substitutions include
coconut coir matting, tactified
hydroseeding compounds, or other
material approved by the Wildlife
Agencies.

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

4.4-3(b) To address potential impacts to giant garter
snake on- site, but outside of the Natomas
Basin HCP permit area, the project applicant
shall retain a qualified biologist to conduct pre-
construction surveys for giant garter snake
prior to the issuance of any grading permit and
commencement of project -related ground-
disturbing activities outside of the Natomas
Basin HCP Permit Area. If giant garter snake
habitat is not identified on-site and giant garter
snakes are not detected, the project may
commence as scheduled. If giant garter snake
habitat is found and/or giant garter snake
individuals are detected, in areas outside of
the Natomas Basin HCP Permit Area that
would be impacted by the project, the project
applicant shall either:

(1) provide on- and or off-site
preservation of giant garter snake
habitat at a ratio determined by
USFWS and CDFW, and as subject
to regulatory permitting requirements
of the CDFW, USACE, and or
RWQCB, as prescribed by Mitigation
Measures 4.4- 10(a) through 4.4-
10(c) and 4.4- 11(a) through 4.4-
11(d), as applicable. Applicant
purchase of conservation easements
or fee title of lands shall be
acceptable if approved by the
applicable permit -issuing regulatory
agency. Final mitigation
City of
Sacramento
Community
Development
Department

USFWS

CDFW

U.S. Army
Corps of
Engineers
(USACE)

Central Valley
Regional
Water Quality
Control Board
(RWQCB)

Prior to issuance of
any grading permit
and commencement
of project-related
ground-disturbing
activities outside of
the Natomas Basin
HCP

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

(2) Should a portion of the City’s surplus
HCP coverage be made available to
the proposed project, the project
applicant for development projects
less than 50- acres in size shall pay
the Natomas Basin HCP mitigation
fees for land acquisition,
enhancement, and management and
monitoring activities ; otherwise, off -
site land dedication and payment of
NBHCP fees are required for project
greater than 50-acres in size.

4.4-4 Have a substantial
adverse effect, either
directly or through
habitat modifications, on
northwestern pond turtle.

Industrial Park and Nonparticipating Parcels

4.4-4(a) Prior to the issuance of any grading permit and commencement of ground- disturbing
activities, the project applicant shall ensure
that the following Natomas Basin HCP Take
Avoidance, Minimization, and Mitigation
Measure has been implemented:

Natomas Basin HCP Section V.A.5.j:

1. Take of the northwestern pond turtle
as a result of habitat destruction
during construction activities,
including the removal of irrigation
ditches and drains, and during ditch
and drain maintenance, will be
minimized by the dewatering

City of
Sacramento
Community
Development
Department

Prior to the
issuance of any
grading permit and
commencement of
ground-disturbing
activities

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

4.4-4(b) Implement Mitigation Measure 4.4-1(a).

See Mitigation
Measure 4.4-
1(a)

See Mitigation
Measure 4.4-1(a)

4.4-5 Have a substantial
adverse effect, either
directly or through
habitat modifications, on
Swainson’s hawk.

Industrial Park and Nonparticipating Parcels

4.4-5(a) Prior to the issuance of any grading permit and commencement of ground- disturbing
activities, the project applicant shall ensure
that the following Natomas Basin HCP Take
Avoidance, Minimization, and Mitigation
Measure has been implemented:

Natomas Basin HCP Section V.A.5.b:

Measures to Reduce Nest Disturbance

1. Prior to the commencement of
development activities, a pre-
construction survey shall be
completed to determine whether any
Swainson’s hawk nest trees will be
removed on-site, or active Swainson’s
hawk nest sites occur on or within ½
mile of the development site. These
surveys shall be conducted according
to the Swainson’s Hawk Technical
Advisory Committee’s (May 31, 2000)
methodology or updated
methodologies, as approved by the
Service and CDFG, using
experienced Swainson’s hawk
surveyors.

City of
Sacramento
Community
Development
Department

Prior to the
issuance of any
grading permit and
commencement of
ground-disturbing
activities

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

2. If breeding Swainson’s hawks (i.e.
exhibiting nest building or nesting
behavior) are identified, no new
disturbances (e.g., heavy equipment
operation associated with
construction) will occur within ½ mile
of an active nest between March 15
and September 15, or until a qualified
biologist, with concurrence by CDFG,
has determined that young have
fledged or that the nest is no longer
occupied. If the active nest site is
located within 1/4 mile of existing
urban development, the no new
disturbance zone can be limited to the
¼ mile versus ½ mile. Routine
disturbances such as agricultural
activities, commuter traffic, and
routine facility maintenance activities
within ½ mile of an active nest are not
restricted.

3. Where disturbance of a Swainson’s
hawk nest cannot be avoided, such
disturbance shall be temporarily
avoided (i.e., defer construction
activities until after the nesting
season) and then, if unavoidable, the
nest tree may be destroyed during the
non-nestin
g season. For purposes of
this provision the Swainson's hawk
nesting season is defined as March 15
to September 15. If a nest tree (any
tree that has an active nest in the year
the impact is to occur) must be

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

4. If a Swainson’s hawk nest tree is to be
removed and fledglings are present,
the tree may not be removed until
September 15 or until the California
Department of Fish and Game has
concurred that the young have fledged
and are no longer dependent upon the
nest tree.

5. If construction or other project related
activities which may cause nest
abandonment or forced fledgling are
proposed within the ¼ mile buffer
zone, intensive monitoring (funded by
the project sponsor) by a Department
of Fish and Game approved raptor
biologist will be required. Exact
implementation of this measure will be
based on specific information at the
project site.

4.4-5(b) To address potential impacts to Swainson’s
hawk foraging habitat that occurs on- site, but
outside of the Natomas Basin HCP permit
area, the project applicant shall preserve
Swainson’s hawk foraging habitat off -site at a
1:1 ratio, which shall consist of a minimum

0.5:1 ratio habitat preservation off -site plus

0.5:1 ratio as prescribed by Mitigation
Measure 4.2-1. The preserved habitat shall be
provided through applicant purchase of
conservation easements or fee title of lands

City of
Sacramento
Community
Development
Department

CDFW

Prior to the
issuance of any
grading permit and
commencement of
project-related
ground-disturbing
activities outside of
the Natomas Basin
HCP permit area
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
with suitable Swainson’s hawk foraging habitat
as approved by CDFW (consistent with CDFW
guidelines). Additionally, prior to the issuance
of any grading permit and commencement of
project-related ground- disturbing activities
outside of the Natomas Basin HCP permit area
the project applicant shall consult with CDFW
for a Section 2081 Incidental Take Permit, or
demonstrate to the City that none was required
by CDFW.

Should a portion of the City’s surplus HCP
coverage be made available to the proposed
project, the project applicant shall pay the
Natomas Basin HCP mitigation fees for land
acquisition, enhancement, and management
and monitoring activities for development
projects less than 50- acres in size; otherwise
off-site land dedication and payment of
NBHCP fees are required for projects greater
than 50-acres in size.

4.4-6 Have a substantial
adverse effect, either
directly or through
habitat modifications, on
burrowing owl.

Industrial Park and Nonparticipating Parcels

4.4-6 Prior to the issuance of any grading permit and
commencement of ground- disturbing
activities, the project applicant shall ensure
that the following Natomas Basin HCP Take
Avoidance, Minimization, and Mitigation
Measure has been implemented:

Natomas Basin HCP Section V.A.5.h:

City of
Sacramento
Community
Development
Department

USFWS

CDFW

Prior to the
issuance of any
grading permit and
commencement of
ground-disturbing
activities

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

1. Prior to the initiation of grading or
earth disturbing activities, the
applicant/developer shall hire a CDFG
approved qualified biologist to perform
a pre-construction survey of the site to
determine if any burrowing owls are
using the site for foraging or nesting.

The pre- construction survey shall be
submitted to the City prior to the
developer’s commencement of
construction activities and a mitigation
program shall be developed and
agreed to by the City and developer
prior to initiation of any physical
disturbance on the site.

2. Occupied burrows shall not be
disturbed during nesting season
(February 1 through August 31) unless
a qualified biologist approved by the
CDFG verifies through non- invasive
measures that either: 1) the birds have
not begun egg- laying and incubation;
or 2) that juveniles from the occupied
burrows are foraging independently
and are capable of independent
survival.

3. If nest sites are found, the USFWS
and CDFG shall be contacted
regarding suitable mitigation
measures, which may include a 300
foot buffer from the nest site during the
breeding season (February 1 - August
31), or a relocation effort for the
burrowing owls if the birds have not

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
begun egg -laying and incubation or
the juveniles from the occupied
burrows are foraging independently
and are capable of independent
survival. If on- site avoidance is
required, the location of the buffer
zone will be determined by a qualified
biologist. The developer shall mark the
limit of the buffer zone with yellow
caution tape, stakes, or temporary
fencing. The buffer will be maintained
throughout the construction period.

4. If relocation of the owls is approved for
the site by USFWS and CDFG, the
developer shall hire a qualified
biologist to prepare a plan for
relocating the owls to a suitable site.

The relocation plan must include: (a)
the location of the nest and owls
proposed for relocation; (b) the
location of the proposed relocation
site; (c) the number of owls involved
and the time of year when the
relocation is proposed to take place;
(d) the name and credentials of the
biologist who will be retained to
supervise the re location; (e) the
proposed method of capture and
transport for the owls to the new site;
(f) a description of the site
preparations at the relocation site
(e.g., enhancement of existing
burrows, creation of artificial burrows,
one-time or long -term vegetat ion
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

Relocation options may include
passive relocation to another area of
the site not subject to disturbance
through one way doors on burrow
openings, or construction of artificial
burrows in accordance with the
CDFG’s October 17, 1995, Staff
Report on Burrowi ng Owls Mitigation
(see Appendix D).

5. Where on- site avoidance is not
possible, disturbance and/or
destruction of burrows shall be offset
through development of suitable
habitat on TNBC upland reserves or in
other suitable preserved uplands.

Such habitat shall include creation of
new burrows wi th adequate foraging
area (a minimum of 6.5 acres) or 300
feet radii around the newly created
burrows. Additional habitat design and
mitigation measures are described in
CDFW’s March 7, 2012, Staff Report
on Burrowing Owl Mitigation.

4.4-8 Have a substantial
adverse effect, either
directly or through
habitat modifications, on
loggerhead shrike.

Industrial Park and Nonparticipating Parcels

4.4-8 Prior to the issuance of any grading permit and
commencement of ground- disturbing
activities, the project applicant shall ensure
that the following Natomas Basin HCP Take
Avoidance, Minimization, and Mitigation
Measure has been implemented:

City of
Sacramento
Community
Development
Department

Prior to the
issuance of any
grading permit and
commencement of
ground-disturbing
activities

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

Natomas Basin HCP Section V.A.5.g:

1. Prior to issuance of a grading permit,
the City shall require a pre-
construction survey.

2. If surveys identify an active
loggerhead shrike nest that will be
impacted by development, the
developer shall install brightly colored
construction fencing that establishes a
boundary 100 feet from the active
nest. No disturbance associated with
development shall occur within the
100 foot fenced area during the
nesting season of March 1 through
July 31. A qualified biologist, with
concurrence of USFWS must
determine young have fledged or that
the nest is no longer occupied prior to
disturbance of the nest site.

USFWS

4.4-9 Have a substantial
adverse effect, either
directly or through
habitat modifications, on
northern harrier, white-
tailed kite, song sparrow,
and other nesting birds
and raptors protected
under the MBTA and
CFGC.

Industrial Park and Nonparticipating Parcels

4.4-9(a) Raptors: If ground disturbance or other
construction activities are proposed during the
nesting season (February 1 to August 31), a
focused survey for nesting raptors protected
under the California Fish and Game Code
(CFGC) and Migratory Bird Treaty Act (MBTA)
shall be conducted by a qualified biologist
within seven days prior to the beginning of
construction activities in order to identify active
nests. The survey shall be conducted within
the proposed construction area and all
accessible areas within 0.5 -mile. A report

City of
Sacramento
Community
Development
Department

If ground
disturbance or other
construction
activities are
proposed during the
nesting season
(February 1 to
August 31)

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
summarizing the results of the survey shall be
submitted for review and approval to the City
of Sacramento Community Development
Department. If active nests are not found
during the focused survey(s), additional
mitigation shall not be required. For any period
of project inactivity of more than seven days,
the qualified biologist shall conduct a field
check of the previously surveyed area before
construction activities recommence to confirm
nesting raptors have not entered during the
interim.

If active raptor nests are found within 0.5- mile
of a construction area, construction shall not
commence within 0.5- mile of the nest until a
qualified biologist determines that the young
have fledged, or the biologist has determined
that the nesting attem pt has failed. If
construction activities within 0.5- mile of the
nest are necessary, the qualified biologist shall
be consulted to determine if the nest buffer can
be reduced. The applicant and qualified
biologist shall jointly determine the nest
avoidance buffer, and what (if any) nest
monitoring is necessary.

If an active raptor nest is found within the
project area prior to construction and is in a
tree that is proposed for removal, then the
project applicant shall implement additional
mitigation recommended by a qualified
biologist based on CDFW guidelines and
obtain any required permits from CDFW.

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

4.4-9(b) Songbirds: If ground disturbance or other
construction activities are proposed during the
nesting season (February 1 to August 31), a
focused survey for birds protected under the
MBTA shall be conducted by a qualified
biologist within seven days prior to the
beginning of construction activities in order to
identify active nests. The survey shall be
conducted within the proposed construction
area and all accessible areas within 500 feet.

A report summarizing the results of the survey
shall be submit ted for review and approval to
the City of Sacramento Community
Development Department. If active nests are
not found during the focused survey(s),
additional mitigation shall not be required. For
any period of project inactivity of more than
seven days, t he qualified biologist shall
conduct a field check of the previously
surveyed area before construction activities
recommence to confirm nesting songbirds
have not entered during the interim.

If active special -status species nests/nesting
colonies are located during the survey, the
project applicant shall work with a qualified
biologist to determine a suitable avoidance
buffer and the extent and duration of nest
monitoring needed. The perimeter of the
protected area shall be indicated by bright
orange temporary fencing and signage.

Construction activities and/or personnel shall
not enter the protected area, except with

City of
Sacramento
Community
Development
Department

If ground
disturbance or other
construction
activities are
proposed during the
nesting season
(February 1 to
August 31)

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
approval of the biologist. If trees containing
nests or burrows must be removed as a result
of project implementation, removal shall be
completed during the nonbreeding season
(late September to January 31).

If active songbird nests are found, a qualified
biologist shall establish a 100- foot non-
disturbance buffer. The non- disturbance
buffers may be reduced based on consultation
and approval by the City of Sacramento
Community Development Department. The
perimeter of the protected area shall be
indicated by bright orange temporary fencing.

Construction activities or personnel shall not
enter the protected area, except with approval
of the biologist. If trees containing nests must
be removed as a result of proj ect
implementation, removal shall be completed
during the nonbreeding season (late
September to January 31) or after the adults
and young are not dependent on the nest site,
as determined by a qualified biologist.

4.4-10 Have a substantial
adverse effect on any
riparian habitat or other
Sensitive Natural
Community identified in
local or regional plans,
policies, regulations or
by the CDFW or
USFWS.

Industrial Park

4.4-10(a) Prior to the commencement of ground-
disturbing activities, the project applicant shall
notify CDFW, pursuant to CFGC Section 1600.

The notification shall include a description of
all of the activities associated with the
proposed industrial park, not just those
associated with the drainages and/or riparian
vegetation. Impacts shall be outlined in the
notification and are expected to be in
substantial conformance with the impacts to

City of
Sacramento
Community
Development
Department

CDFW

Prior to the
commencement of
ground-disturbing
activities within
Industrial Park

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
biological resources outlined in the Biological
Resources Assessment prepared for the
Airport South Industrial Project by Bargas
Environmental Consulting. Impacts for each
activity shall be broken down by temporary and
permanent impacts. A description of t he
proposed mitigation for biological resource
impacts shall be outlined per activity and then
by temporary and permanent impact.

Information regarding project-specific drainage
and hydrology changes resulting from project
implementation shall be provided, as well as a
description of stormwater treatment methods.

Minimization and avoidance measures shall be
proposed, as appropriate, and may include
preconstruction species surveys and reporting,
protective fencing around avoided biological
resources, worker environmental awareness
training, seeding disturbed areas adjacent to
open space areas with native seed, and
installation of project-specific stormwater Best
Management Practices (BMPs ). Mitigation for
impacts to Goodding’s willow – red willow
riparian woo dland and forest, valley oak
riparian forest woodland, and California
bulrush marsh may include restoration or
enhancement of resources on- or off -site, or
any other method acceptable to CDFW.

Mitigation shall not result in a net loss of a
Sensitive Natural Community.

If CDFW determines through the course of the
CFGC Section 1600 notification process that
the project does not require a Lake or

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
Streambed Alteration Agreement (LSAA) to
address potential impacts to Goodding’s willow
– red willow riparian woodland and forest,
valley oak riparian forest woodland, and
California bulrush marsh, further mitigation
regarding the aforementioned vegetation
communities shall not be required. Written
verification of the applicant’s compliance with
the Section 1600 LSAA process shall be
submitted to the City of Sacramento
Community Development Department.

Nonparticipating Parcels

4.4-10(b) As part of any application associated with
development of the nonparticipating parcels,
the applicant shall ensure that a qualified
biologist has reviewed areas proposed for
disturbance to identify vegetation communities
that occur in the develop ment footprint and
confirm the presence and acreages of
Sensitive Natural Communities. If a Sensitive
Natural Community would not be impacted,
further mitigation shall not be required. The
qualified biologist shall detail any
recommendations to avoid impac ts to
identified Sensitive Natural Communities in a
report, which shall be submitted for review and
approval to the City of Sacramento Community
Development Department.

4.4-10(c) If a Sensitive Natural Community or potentially jurisdictional aquatic resource is identified in a
nonparticipating parcel for which a
development application has been submitted,

City of
Sacramento
Community
Development
Department

See Mitigation
Measure 4.4-
10(a)

As part of any
application
associated with
development of the
nonparticipating
parcels

If a Sensitive
Natural Community
is identified in a
nonparticipating
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

4.4-11 Have a substantial
adverse effect on State
or federally protected
wetlands (including, but
not limited to, marsh,
vernal pool, coastal, etc.)
through direct removal,
filling, hydrological
interruption, or other
means.

Industrial Park

4.4-11(a) Prior to the issuance of grading permits, the project applicant shall submit the Aquatic
Resources Delineation (ARD) prepared for the
proposed project by Bargas Environmental
Consulting to the U.S. Army Corps of
Engineers (USACE) for a Preliminar y
Jurisdictional Determination and obtain
authorization for the fill of jurisdictional waters
of the U.S. through the Clean Water Act (CWA)
Section 404 permitting process. Timing for
compliance with the specific conditions of the
Section 404 permit shall b e pursuant to the
conditions specified by USACE as part of
permit issuance. Proof of compliance with the
requirements established herein shall be
submitted for review and approval to the City
of Sacramento Community Development
Department.

4.4-11(b) Prior to construction in any areas containing wetlands or waters of the U.S. and/or State,
the project applicant shall obtain a water
quality certification pursuant to Section 401 of
the CWA. Any measures required as part of
the issuance of the w ater quality certification
shall be implemented.

4.4-11(c) Prior to construction in any areas containing wetlands or waters of the U.S. and/or State,

City of
Sacramento
Community
Development
Department

USACE

RWQCB

Prior to the
issuance of grading
permits

Prior to construction
in any areas
containing wetlands
or waters of the
U.S. and/or State

Prior to construction
in any areas

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
the project applicant shall file a report of waste
discharge with the Central Valley Regional
Water Quality Control Board (RWQCB) for
activities affecting wetlands or waters of the
State that are not also under USACE
jurisdiction, if applicable.

4.4-11(d) Implement Mitigation Measure 4.4-10(a).

Nonparticipating Parcels

4.4-11(e) As part of any application associated with
development of the nonparticipating parcels,
the applicant shall ensure that a qualified
biologist has conducted an Aquatic Resources
Delineation (ARD) for areas proposed for
disturbance to identify pote ntial waters of the
U.S. and/or State. The ARD shall be
conducted in accordance with the minimum
standards set forth by the USACE South
Pacific Division and Sacramento District
Regulatory Program, as well as the Corps of
Engineers Wetlands Delineation Manu al,
Regional Supplement to the Corps of
Engineers Wetland Delineation Manual: Arid
West Region, and A Field Guide to the
Identification of the Ordinary High Water Mark
(OHWM) in the Arid West Region of the
Western United States or any manuals that
supplement or replace these manuals.

See Mitigation
Measure 4.4-
10(a)

City of
Sacramento
Community
Development
Department

USACE

containing wetlands
or waters of the
U.S. and/or State

See Mitigation
Measure 4.4-10(a)

As part of any
application
associated with
development of the
nonparticipating
parcels

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
If potential waters of the U.S. and/or State are
not identified, further mitigation shall not be
required. The ARD shall be submitted for
review and approval to the City of Sacramento
Community Development Department and
USACE Sacramento District Regulator y
Division.

4.4-11(f) If waters of the U.S. and/or State are identified within areas proposed for disturbance, the
project applicant shall implement Mitigation
Measures 4.4- 11(a) through 4.4- 11(d), as
applicable.

See Mitigation
Measures 4.4-
11(a) through

4.4-11(d)

If waters of the U.S.
and/or State are
identified within
areas proposed for
disturbance

4.4-12 Interfere substantially
with the movement of
any native resident or
migratory fish or wildlife
species or with
established native
resident or migratory
wildlife corridors, or
impede the use of native
wildlife nursery sites.

4.4-12 Implement Mitigation Measure 4.4-3. See Mitigation Measure 4.4-3
See Mitigation
Measure 4.4-3

4.4-13 Conflict with any local
policies or ordinances
protecting biological
resources, such as a tree
preservation policy or
ordinance.

Industrial Park

4.4-13(a) Prior to the issuance of any grading permit
and commencement of ground- disturbing
activities, the project applicant shall hire a
qualified arborist to evaluate all trees within
areas proposed for disturbance to confirm if
the trees meet the definition of a Private
Protected Tree, as set forth by Sacramento
City Code Section 12.56.020. Results of the
tree survey shall be submitted for review
and approval to the City of Sacramento

City of
Sacramento
Community
Development
Department

Prior to the
issuance of any
grading permit and
commencement of
ground-disturbing
activities within
Industrial Park

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
Department of Public Works’ Urban
Forestry section. Should any on- site tree
that would be potentially impacted by the
proposed project be found to qualify as a
Private Protected Tree, the project applicant
shall obtain a Tree Permit from the City of
Sacramento Community Development
Department and comply with the permit
requirements in effect at the time of project
grading for removal, pruning, or soil
disturbance within the canopy dripline of a
Private Protected Tree.

Nonparticipating Parcels

4.4-13(b) As part of any application associated with
development of the nonparticipating
parcels, the applicant shall hire a qualified
arborist to conduct a tree survey of areas
proposed for disturbance to identify any
trees that meet the definition of a P rivate
Protected Tree, as established by
Sacramento City Code Section 12.56.020.

A report detailing the results of the survey
shall be submitted for review and approval
to the City of Sacramento Community
Development Department. If protected trees
are not identified, further mitigation shall not
be required.

4.4-13(c) If protected trees are identified in areas
proposed for disturbance of nonparticipating
parcels, the applicant shall implement
Mitigation Measure 4.4-13(a).

City of
Sacramento
Community
Development
Department

See Mitigation
Measure 4.4-
13(a)

As part of any
application
associated with
development of the
nonparticipating
parcels

If protected trees
are identified in
areas proposed for
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

4.4-15 Cumulative loss of
habitat for special-status
species.

Industrial Park

4.4-15(a) Implement Mitigation Measures 4.4- 1(a) and

4.4-1(b), 4.4-3, 4.4-4(a), 4.4-5(a) and 4.4-5(b),

4.4-6, 4.4-8, 4.4-9(a) and 4.4- 9(b), 4.4-10(a),

4.4-11(a) through 4.4-11(c), and 4.4-13(a).

Nonparticipating Parcels

4.4-15(b)Implement Mitigation Measures 4.4- 1(a) and

4.4-1(b), 4.4-3, 4.4-4(a), 4.4-5(a) and 4.4-5(b),

4.4-6, 4.4- 8, 4.4- 9(a) and 4.4- 9(b), 4.4- 10(b)
and 4.4-10(c), 4.4-11(e) and 4.4-11(f), and 4.4-
13(b) and 4.4-13(c).

See Mitigation
Measures 4.4-
1(a) and 4.4-
1(b), 4.4-3,

4.4-4(a), 4.4-
5(a) and 4.4-
5(b), 4.4-6,

4.4-8, 4.4-9(a)
and 4.4-9(b),

4.4-10(a), 4.4-
11(a) through

4.4-11(c), and

4.4-13(a).

See Mitigation
Measures 4.4-
1(a) and 4.4-
1(b), 4.4-3,

4.4-4(a), 4.4-
5(a) and 4.4-
5(b), 4.4-6,

4.4-8, 4.4-9(a)
and 4.4-9(b),

4.4-10(b) and

4.4-10(c), 4.4-
11(e) and 4.4-
11(f), and 4.4-
13(b) and 4.4-
13(c)

See Mitigation
Measures 4.4-1(a)
and 4.4-1(b), 4.4-3,

4.4-4(a), 4.4-5(a)
and 4.4-5(b), 4.4-6,

4.4-8, 4.4-9(a) and

4.4-9(b), 4.4-10(a),

4.4-11(a) through

4.4-11(c), and 4.4-
13(a).

See Mitigation
Measures 4.4-1(a)
and 4.4-1(b), 4.4-3,

4.4-4(a), 4.4-5(a)
and 4.4-5(b), 4.4-6,

4.4-8, 4.4-9(a) and

4.4-9(b), 4.4-10(b)
and 4.4-10(c), 4.4-
11(e) and 4.4-11(f),
and 4.4-13(b) and

4.4-13(c)

4.5 Cultural Resources
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

4.5-2 Cause a substantial
adverse change in the
significance of a unique
archeological resource
pursuant to CEQA
Guidelines, Section
15064.5 or disturb
human remains,
including those interred
outside of dedicated
cemeteries.

4.5-2 The following requirements shall be included
through a notation on all project grading plans
prior to the issuance of grading permits, to the
satisfaction of the City Engineer.

In the event subsurface deposits believed to
be cultural or human in origin are discovered
during construction, all work shall halt within a
50-foot radius of the discovery. A qualified
professional archaeologist, meeting the
Secretary of the Interior’s Pr ofessional
Qualification Standards for precontact and
historic archaeologist, shall be retained to
evaluate the significance of the find, and shall
have the authority to modify the no-work radius
as appropriate, using professional judgment.

The following n otifications shall apply,
depending on the nature of the find:

• If the professional archaeologist
determines that the find does not
represent a cultural resource, work
may resume immediately, and agency
notifications are not required.
• If the professional archaeologist
determines that the find does
represent a cultural resource from any
time period or cultural affiliation, he or
she shall immediately notify the City of
Sacramento and applicable
landowner. The project applicant shall
cons
ult on a finding of eligibility and
implement appropriate treatment
measures, if the find is determined to
Sacramento
City Engineer

Sacramento
County
Coroner

Native
American
Heritage
Commission
(NAHC)
Prior to issuance of
grading permits

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
be a Historical Resource under CEQA,
as defined in Section 15064.5(a) of the
CEQA Guidelines. Appropriate
treatment measures that preserve or
restore the character and integrity of a
find may be, but are not limited to,
processing materials for reburial,
minimizing handling of historical
objects, leaving objects in place within
the landscape, construction
monitoring of further construction
activities, and/or returning objects to a
location within the project area where
they will not be subject to future
impacts. Work shall not resume within
the no-work radius until the applicant,
through consultation, as appropriate,
determines that the site either: 1) is
not a historical resource under CEQA,
as defined in Section 15064.5(a) of the
CEQA Guidelines; or 2) tha t the
treatment measures have been
completed to the City’s satisfaction.
• If the find includes human remains, or
remains that are potentially human, he
or she shall ensure reasonable
protection measures are taken to
protect the discovery from disturbance
(Assembly Bill [AB] 2641). The
archaeologist shall notify the City of
Sacramento and the Sacramento
County Coroner (per Section 7050.5
of the Health and Safety Code). The
provisions of Section 7050.5 of the
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
California Health and Safety Code,
Section 5097.98 of the California
PRC, and AB 2641 shall be
implemented. If the Coroner
determines the remains are Native
American and not the result of a crime
scene, the Coroner shall notify the
NAHC, which then shall d esignate a
Native American Most Likely
Descendant (MLD) for the proposed
project (Section 5097.98 of the PRC).

The designated MLD shall have 48
hours from the time access to the
property is granted to make
recommendations concerning
treatment of the remain s. If the
landowner does not agree with the
recommendations of the MLD, the
NAHC shall mediate (Section 5097.94
of the PRC). If an agreement is not
reached, the landowner shall rebury
the remains where they shall not be
further disturbed (Section 5097.98 of
the PRC). The burial shall also include
either recording the site with the
NAHC or the appropriate information
center, using an open space or
conservation zoning designation or
easement, or recording a reinternment
document with Sacramento County
(AB 264 1). Work shall not resume
within the no-work radius until the City,
through consultation as appropriate,
determines that the treatment
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

4.6 Geology and Soils

4.6-3 Be located on a
geological unit or soil
that is unstable, or that
would become unstable
as a result of the project,
and potentially result in
on or off-site landslide,
lateral spreading,
subsidence, liquefaction,
or collapse, or be located
on expansive soil, as
defined in Table 18-1B of
the Uniform Building
Code.

4.6-3 Prior to issuance of grading permits, the
grading plans shall incorporate the
geotechnical recommendations specified in
the Preliminary Geotechnical Exploration
prepared for the proposed project, including,
but not limited to, earthwork
recommendations, fo undation wall
recommendations, pavement
recommendations, exterior flatwork
recommendations, and the preparation of a
design-level geotechnical report. All grading
and foundation plans for the development
must be reviewed and approved by the City
Engineer and Chief Building Official, or their
representative(s), prior to issuance of grading
and building permits in order to ensure that
recommendations in the Preliminary
Geotechnical Exploration are properly
incorporated and utilized in the project design.

Sacramento
City Engineer

City of
Sacramento
Chief Building
Official
Prior to issuance of
grading permits

4.6-4 Directly or indirectly
destroy a unique
paleontological resource
or site or unique geologic
feature.

4.6-4 Should construction or grading activities result
in the discovery of unique paleontological
resources, all work within 100 feet of the
discovery shall cease. The City of Sacramento
Community Development Department shall be
notified, and the resources shall be examined
by a qualified archaeologist, paleontologist, or
historian, at the developer’s expense, for the
purpose of recording, protecting, or curating
the discovery as appropriate. The
archaeologist, paleontologist, or historian shall
submit to t he City of Sacramento Community
City of
Sacramento
Community
Development
Department
Should construction
or grading activities
result in the
discovery of unique
paleontological
resources

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
Development Department for review and
approval a report of the findings and method of
curation or protection of the resources. Work
may only resume in the area of discovery when
the preceding work has occurred.

4.7 Hazards and Hazardous Materials

4.7-2 Create a significant
hazard to the public or
the environment through
reasonably foreseeable
upset and accident
conditions involving the
likely release of
hazardous materials into
the environment.

4.7-2(a) Prior to approval of grading permits, a surficial soil sample laboratory analysis shall be
conducted on the project site. Once the soils
are collected, the soils shall be tested for
OCPs, lead, and asbestos. If soil contaminates
are not found, further acti
on is not required;
however, if OCPs, lead, or asbestos is found
to be higher than the allowable thresholds, the
assessment shall include the appropriate
mitigation including, but not limited to, soil
remediation to an acceptable total threshold
limit concentration (TTLC) level per applicable
State and federal regulations by excavation of
the contaminated soil, and subsequent
transportation and disposal off -site at an
appropriate Class I or Class II facility permitted
by DTSC; or by properly cappin
g the
contaminated soil, in compliance with DTSC
regulations (e.g., placing soils underneath
project roadways, etc.). All recommended
mitigation measures shall be implemented by
the project applicant, subject to review and
approval by the City of Sacrament o
Community Development Department.

4.7-2(b) Prior to approval of grading permits for Parcel 1 and/or Parcel 6A, samples of the soil
stockpiles on -site shall be obtained for
City of
Sacramento
Community
Development
Department

City of
Sacramento
Community
Prior to approval of
grading permits

Prior to approval of
grading permits for
Parcel 1 and/or

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
analysis of contaminants of concern and
comparison with applicable regulatory
screening levels (i.e., Environmental
Screening Levels, California Human Health
Screening Levels, Regional Screening Levels,
etc.). If soil contaminates are not found, further
action is not required. However, where the soil
contaminant concentrations exceed the
applicable regulatory screening levels, the
impacted soil shall be excavated and disposed
of off -site at a licensed landfill facility to the
satisfaction of the City of Sacramento
Community Development Department.

Development
Department
Parcel 6A

4.7-5 For a project located
within an airport land use
plan or, where such a
plan has not been
adopted, within two miles
of a public airport or
public use airport, would
the project result in a
safety hazard or
excessive noise for
people residing or
working in the project
area.

4.7-5(a) To ensure that the final location and design of the detention basins are consistent with the
recommendations of the Airport Land Use
Commission (ALUC) regarding wildlife
hazards to aviation, the project applicant shall
prepare a design and managem
ent plan for
this proposed drainage feature. This plan shall
be prepared in coordination with the
Sacramento International Airport Operations
Manager before commencement of
construction. The plan shall determine an
appropriate size and location for the det ention
basins and incorporate specific design
measures deemed sufficient by Sacramento
County Airport System (SCAS) and the ALUC
to minimize bird strikes and other wildlife-
related airspace safety hazards in the vicinity
of the project area. The plan shall include
information sufficient to satisfy requirements
for preparation of a Wildlife Hazard
Management Plan and shall be prepared by a
Sacramento
International
Airport
Operations
Manager

Sacramento
County Airport
System
(SCAS)

Airport Land
Use
Commission
(ALUC)
Prior to
commencement of
construction

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
qualified wildlife hazard damage biologist. The
project applicant shall submit a detailed design
drawing of the proposed detention basins to
SCAS for review.

To reduce bird attractants associated with the
detention basins, the Wildlife Hazards
Management Plan for the detention basins and
surrounding landscape shall include the
following:

• Any vegetation planted in the vicinity
of the detention basins shall consist of
plant species that do not provide birds
with opportunities for cover, nesting,
perching, or feeding. A detailed design
plan for landscaping surrounding the
detention basins shall be submitted to
SCAS for view;
• Signs shall be placed at regular
intervals around the perimeter of the
detention basins prohibiting the public
from feeding any wildlife. The project
applicant, and any subsequent
property owner shall maintain such
signs in good order and replace such
signs as necessary. This responsibility
shall transfer to the Property
Management Association and shall be
articulated in the covenants,
conditions, and restrictions (CC&Rs);
• The CC&Rs shall specify that the
project proponent and project
applicant shall be responsible for
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
ensuring trash receptacles with covers
are provided and properly emptied on
a regular basis and replaced as
needed;
• Installation of structures near the
detention basins that could serve as
perches for gulls and other birds shall
be minimized. The CC&Rs, or other
mechanism, shall prohibit the future
installation of such structures.
• The project applicant shall prohibit all
activities and uses that could conflict
with implementation of the wildlife
hazard management program.

An Adaptive Management Plan shall be
prepared and incorporated into the Wildlife
Hazard Management Plan. The Adaptive
Management Plan shall provide for the long-
term management of nuisance birds around
the detention basins. The management plan
shall involv e monitoring and employment of
various techniques for controlling birds using
adaptive information and bird control products.

The Property Management Association, or if
none exists, the property owner shall be
responsible for ensuring the implementation
and continued enforcement of the Adaptive
Management Plan and provision of adequate
funding. This requirement shall be specified in
the CC&Rs or other mechanism. The Adaptive
Management Plan shall include the following
components:

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
• Bird control program that involves use
of the most efficient and effective bird
control techniques available that are
practicable and compatible with
surrounding land uses.,
• Monitoring program that involves
patrolling of the detention basins and
assessment of the effectiveness of
bird control measures, the presence of
potential bird attractants, and the need
for modifying or increasing bird control
measures,
• Funding mechanism such as use of an
endowment fund or assessment
district to fund the long- term
monitoring and adaptive management
program.
• Any use of the detention basins that
conflicts with the wildlife control
program shall be prohibited.
• The Adaptive Management Plan shall
include the best available information
on various bird control techniques, an
explanation of the situations in which
various techniques are best
employed, and instructions for
implementing such techniques. The
entity resp onsible for implementing
the management plan shall employ a
qualified and experienced Wildlife
Damage Biologist/Manager
(Manager) who shall be responsible
for determining which bird control
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
techniques to implement based on
information provided in the
management plan and the best
scientific and commercial information
available. The Manager shall be
trained in bird control techniques by
the U.S. Department of Agriculture-
Wildlife Services (USDA ). The initial
cost of such training shall be borne by
the project applicant. The cost of
subsequent training shall be borne by
the Property Management
Association. The Manager shall have
the discretion to use new technologies
or information regarding bird control
provided they are practicable and
within the management budget, and
do not conflict with surrounding land
uses or storm water control functions
of the detention basins.

The monitoring and maintenance portion of the
Adaptive Management Plan shall include the
following:

• Patrol to ensure the detention basin
areas are kept clean and free of refuse
and other such material that may
attract birds;
• Patrol to ensure the public is abiding
by rules prohibiting feeding of birds;
• Control of vegetative growth around
the detention basins to minimize any
vegetation that would attract birds for
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
purpose of cover, nesting, perching, or
food;
• Remove all nesting material prior to
completion of nest if any birds attempt
to nest in areas surrounding the
detention basins. All nest removal
activities must comply with provisions
of the Migratory Bird Treaty Act, the
California Endangered Species Act,
and the federal Endangered Species
Act;
• Inspect the detention basin areas to
determine whether additional
measures are needed to reduce bird
use of the detention basins; and
• Aggressively haze wildlife to
discourage use of the basins.

If monitoring efforts reveal that additional
control efforts are necessary, the Bird Control
Program Manager may implement one or more
control techniques outlined in the Adaptive
Management Plan, or other techniques based
on best available scientific and c ommercial
information. Bird control techniques currently
being used at airports, on agricultural lands,
and in other areas where birds pose a hazard
or nuisance shall be described in the Adaptive
Management Plan. The Bird Control Program
Manager shall have discretion of using any
one or more of the techniques based on the
need, practicability, and land use compatibility.

These techniques may include, but are not
limited to, allowing grass to grow over 8 inches
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

In addition to these control techniques, the
Adaptive Management Plan shall outline an
education program for the Property
Management Association to implement
ensuring that the public is aware of the
importance of eliminating bird attractants from
the area around the lake. The public shall be
prohibitive from feeding birds around the
detention basins and engaging in any other
activities within the boundaries of the
development project which may attract wildlife
hazards to aircraft operations. The public shall
be made aware of the purpose and importance
of various bird control measures being
implemented by the Bird Control Program
Manager.

All activities and uses of the detention basins
that may conflict with the wildlife control
program shall be expressly prohibited.

If the SCAS determines that conditions in the
Airport South Industrial Project Development
are not consistent with the above listed
Management Program, SCAS may take the
following actions:

• Notify the property owner that the
wildlife control measures are out of
compliance;
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
• County Airport System may, at its
option, initiate control measures at the
site, with the costs of such measures
billed to the owner; and
• In the event of an immediate threat to
aircraft safety, County Airport System
personnel can take immediate action
to remedy the air hazard emergency.

To reduce attractants for Canada geese,
American coots, or gulls associated with the
detention basins and surrounding landscape
the Management Plan shall include the
following:

• Signs shall be posted and identify that
feeding birds is prohibited.
• Any nest building activity associated
with birds shall be removed including
all nesting materials.
• To prevent the establishment of
resident populations of Canada geese
on the project site, the Bird Control
Program Manager shall take the
following, but not limited to, actions:
o Chase birds from site,
o Use of noise generators (e.g.,
pyrotechnic devices, blank
cartridges),
o Use of visual devices (e.g.,
flags, scarecrows, water
sprays)
o Use of chase dogs,
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

4.8 Hydrology and Water Quality

4.8-1 Violate any water quality
standards or waste
discharge requirements
or otherwise substantially
degrade surface or
ground water quality
during construction.

4.8-1 Prior to issuance of any grading permits, the
contractor shall prepare a Storm Water
Pollution Prevention Plan (SWPPP) for review
and approval by the Central Valley RWQCB.

The contractor shall file the Notice of Intent
(NOI) and associated fee to the SWRCB. The
SWPPP shall serve as the framework for
identification, assignment, and implementation
of BMPs. The contractor shall implement
BMPs to reduce pollutants in stormwater
discharges to the maximum extent practicable.

Construction (temporary) BMPs for the project
may include, but are not limited to: fiber rolls,
straw bale barrier, straw wattles, storm drain
inlet protection, velocity dissipation devices,
silt fences, wind erosion control, stabilized
construction entrance, hydroseeding,
revegetation t echniques, and dust control
measures. The SWPPP shall be submitted to
both the City Director of Public Works, and the
City Engineer for review and approval and
shall remain on the project site during all
phases of construction. Following
implementation of the SWPPP, the contractor
shall subsequently demonstrate the SWPPP’s
effectiveness and provide for necessary and
appropriate revisions, modifications, and
improvements to reduce pollutants in
stormwater discharges to the maximum extent
practicable.

RWQCB

City of
Sacramento
Director of
Public Works

Sacramento
City Engineer
Prior to issuance of
any grading permits

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

4.8-2 Violate any water quality
standards or waste
discharge requirements
or otherwise substantially
degrade surface or
ground water quality
during operations.

4.8-2 Prior to approval of final project improvement
plans for any on-site development, the project
applicant shall submit a detailed Best
Management Practice (BMP) and water quality
maintenance plan to the City for review and
approval. The BMP and water quality
maintenance plan shall meet the standards of
the City’s NPDES Permit, the California
Stormwater Quality Association (CASQA)
Stormwater BMP Handbook for New
Development and Redevelopment, and the
Stormwater Quality Design Manual for the
Sacramento re gion. Site design measures,
source control measures, hydromodification
management, and Low Impact Development
(LID) standards, as necessary, shall be
incorporated into the design and shown on the
improvement plans.

City of
Sacramento
Community
Development
Department
Prior to approval of
final project
Improvement Plans
for any on-site
development

4.8-5 Substantially alter the
existing drainage pattern
of the site or area,
including through the
alteration of the course
of a stream or river or
through the addition of
impervious surfaces, in a
manner which would
impede or redirect flood
flows, or in flood hazard,
tsunami, or seiche zone,
risk release of pollutants
due to project inundation.

4.8-5 Prior to approval of any grading permits, the
applicant shall obtain from the Federal
Emergency Management Agency (FEMA), a
Conditional Letter of Map Revision (CLOMR)
or Conditional Letter of Map Revision based on
Fill (CLOMR-
F) for fill within a Special Flood
Hazard Area, if required. A copy of the letter
shall be provided to the Engineering Services
Division. A Letter of Map Revision (LOMR), or
a Letter of Map Revision based on Fill (LOMR-
F) from FEMA shall be provided
to the City
Engineer prior to acceptance of grading
permits as complete.

City of
Sacramento
Engineering
Services
Division

Sacramento
City Engineer
Prior to approval of
any grading permits

4.10 Noise
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off

4.10-2 Generation of a
substantial permanent
increase in ambient
noise levels in the vicinity
of the project in excess
of standards established
in the local general plan
or noise ordinance, or
applicable standards of
other agencies.

4.10-2 Prior to approval by the City’s Public Works
Department of the final Improvement Plans for
the nonparticipating parcels portion of the
proposed project, the Improvement Plans shall
include the following requirements:

• An eight -foot-tall sound wall shall be
constructed along the eastern project
boundary, in the location indicated in

4.10-6 and the Environmental Noise
Assessment prepared for the
proposed project by Saxelby
Acoustics, in order to achieve the
City’s nightti me 50 dBA L50 noise
level standards.
• Noise barrier walls shall be
constructed of concrete panels,
concrete masonry units, earthen
berms, or any combination of these
materials that achieve the required
total height. Wood is not
recommended due to eventual
warping and degradation of acoustical
performance.

City of
Sacramento
Public Works
Department
Prior to approval of
the final
Improvement Plans
for the
nonparticipating
parcels

4.12 Transportation

4.12-2 Conflict with a program,
plan, ordinance, or policy
addressing the
circulation system during
operations.

4.12-2 The following requirements shall be noted on
project improvement plans, subject to review
and approval by the City of Sacramento
Community Development Department:

• The project should construct
pedestrian and bicycle facilities along
its frontage to City Standards.

City of
Sacramento
Community
Development
Department
Prior to the approval
of project
Improvement Plans

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
• Class IV separated bicycle facilities
shall be accommodated within the
proposed cross section to provide
separation between cyclists and
heavy truck traffic.
• The bicycle network shall be
connected to the existing and planned
City and County bikeway system,
including, but not limited to, Bayou
Way at the northeast corner of the site,
the Class I bikeway at the southeast
corner of the site, and Metro Air
Parkway north of I-5.
• • The off -street Class IV cycle
track shown on the eastern side of the
site in the City Bikeway Master Plan
shall be accommodated in the
proposed plans.

4.12-3 Conflict or be
inconsistent with CEQA
Guidelines Section
15064.3, subdivision (b).

4.12-3 Prior to the certificate of occupancy for each
on-site industrial building, the owner/operator
of each building shall be required to prepare
and implement a VMT Reduction Plan that
includes a sufficient selection of CAPCOA Trip
Reduction Programs (T -6 through T -13) to
reduce VMT by at least 22 percent, consistent
with the VMT Mitigation Memorandum
prepared by the City’s Public Works
Department for the proposed project (see
Appendix Q to the EIR). CAPCOA Trip
Reduction Programs T-6 through T-13 include
measures such as implementing a commute
trip reduction program and/or marketing,
providing a rideshare program, implementing a
subsidized or discounted transit program,
City of
Sacramento
Department of
Public Works

City of
Sacramento
Community
Development
Department
Prior to the
certificate of
occupancy for each
on-site industrial
building

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
providing end-of-trip bicycle facilities, providing
employer-sponsored vanpool, pricing
workplace housing, and implementing
employee parking cash -out. The VMT
Reduction Plan shall be submitted to the City’s
Department of Public Works and Community
Development Department for review and
approval.

4.13 Tribal Cultural Resources

4.13-1 Cause a substantial
adverse change in the
significance of a tribal
cultural resource, defined
in PRC Section 21074.

4.13-1(a) Conduct Cultural Resources Sensitivity
and Awareness Training Prior to Ground -
Disturbing Activities

The City shall require the applicant/contractor
to provide a tribal cultural resources sensitivity
and awareness training program (Worker
Environmental Awareness Program [WEAP])
for all personnel involved in project
construction, including field consultant s and
construction workers. The WEAP will be
developed in coordination with culturally
affiliated Native American tribes. The WEAP
shall be conducted before any project -related
construction activities begin at the project site.

The WEAP will include releva nt information
regarding sensitive tribal cultural resources,
including applicable regulations, protocols for
avoidance, and consequences of violating
State laws and regulations.

The WEAP will also describe appropriate
avoidance and impact minimization measures
for tribal cultural resources that could be
located at the project site and will outline what
City of
Sacramento
Community
Development
Department

Before any project-
related construction
activities begin at
the project site

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
to do and who to contact if any potential tribal
cultural resources are encountered. The
WEAP will emphasize the requirement for
confidentiality and culturally appropriate
treatment of any discovery of significance to
Native Americans and will discuss appropriate
behaviors and responsive actions, consistent
with Native American tribal values.

4.13-1(b) In the Event that Tribal Cultural Resources
are Discovered During Construction,
Implement Procedures to Evaluate Tribal
Cultural Resources and Implement
Avoidance and Minimization Measures to
Avoid Significant Impact.

If tribal cultural resources (such as structural
features, unusual amounts of bone or shell,
artifacts, or human remains) are encountered
at the project site during construction, work
shall be suspended within 100 feet of the find
(based on the apparent di stribution of cultural
materials), and the construction contractor
shall immediately notify the project’s City
representative. Avoidance and preservation in
place is the preferred manner of mitigating
impacts to tribal cultural resources. This will be
accomplished, if feasible, by several
alternative means, including:

• Planning construction to avoid tribal
cultural resources, archaeological
sites and/or other cultural resources;
incorporating cultural resources within

City of
Sacramento
Community
Development
Department

Culturally
affiliated
Native
American
tribes and
other
appropriate
agencies

During construction

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
parks, green -space or other open
space; covering archaeological
resources; deeding a cultural resource
to a permanent conservation
easement; or other preservation and
protection methods agreeable to
consulting parties and regulatory
authorities with jurisd iction over the
activity.
• Recommendations for avoidance of
tribal cultural resources will be
reviewed by the City representative,
interested culturally affiliated Native
American tribes and other appropriate
agencies, in light of factors such as
costs, logistics, feasibility, design,
technology and social, cultural and
environmental considerations, and the
extent to which avoidance is
consistent with project objectives.

Avoidance and design alternatives
may include realignment within the
project site to avoid tribal cultural
resources, modification of the design
to eliminate or reduce impacts to tribal
cultural resources or modification or
realignment to avoid highly significant
features within a cultural resource or
tribal cultural resource.
• Native American representatives from
interested culturally affiliated Native
American tribes will be notified to
review and comment on these
analyses and shall have the

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
opportunity to meet with the City
representative and its representatives
who have technical expertise to
identify and recommend feasible
avoidance and design alternatives, so
that appropriate and feasible
avoidance and design alternatives can
be identified.
• If the discovered tribal cultural
resource can be avoided, the
construction contractor(s), will install
protective fencing outside the site
boundary, including a 100- foot buffer
area, before construction restarts. The
boundary of a tribal cultural resource
will be determined in consultation with
interested culturally affiliated Native
American tribes and tribes will be
notified to monitor the installation of
fencing. Use of temporary and
permanent forms of protective fencing
will be determined in consultation with
Native American representatives from
interested culturally affiliated Native
American tribes.
• The construction contractor(s) will
maintain the protective fencing
throughout construction to avoid the
site during all remaining phases of
construction. The area will be
demarcated as an “Environmentally
Sensitive Area”.

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
If a tribal cultural resource cannot be avoided,
the following performance standard shall be
met prior to continuance of construction and
associated activities that may result in damage
to or destruction of tribal cultural resources:

• Each resource will be evaluated for
California Register of Historical
Resources- (CRHR) eligibility through
application of established eligibility
criteria (California Code of Regulations
15064.636), in consultation with
consulting Native American tribes, as
applicable.

If a tribal cultural resource is determined to be
eligible for listing in the CRHR, the City will
avoid damaging effects to the resource in
accordance with California PRC Section
21084.3, if feasible. The City shall coordinate
the investigation of the find with a qualified
archaeologist (meeting the Secretary of the
Interior’s Professional Qualifications
Standards for Archeology) approved by the
City and with interested culturally affiliated
Native American tribes that respond to the
City’s notification. As part of the site
investigation and resource assessment, the
City and the archaeologist shall consult with
interested culturally affiliated Native American
tribes to assess the significance of the find,
make recommendations for further evaluation
and treat ment as necessary and provide
proper management recommendations should

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
potential impacts to the resources be
determined by the City to be significant. A
written report detailing the site assessment,
coordination activities, and management
recommendations shall be provided to the City
representative by the qualified archaeolog ist.

These recommendations will be documented
in the project record. For any
recommendations made by interested
culturally affiliated Native American tribes that
are not implemented, a justification for why the
recommendation was not followed will be
provided in the project record.

Native American representatives from
interested culturally affiliated Native American
tribes and the City representative will also
consult to develop measures for long- term
management of any discovered tribal cultural
resources. Consultation will be limite d to
actions consistent with the jurisdiction of the
City and taking into account ownership of the
subject property. To the extent that the City
has jurisdiction, routine operation and
maintenance within tribal cultural resources
retaining tribal cultural integrity shall be
consistent with the avoidance and
minimization standards identified in this
mitigation measure.

If the City determines that the project may
cause a significant impact to a tribal cultural
resource, and measures are not otherwise
identified in the consultation process, the

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
following are examples of mitigation capable of
avoiding or substantially lessening potential
significant impacts to a tribal cultural resource
or alternatives that would avoid significant
impacts to the resource. These measures may
be considered to avoid or minimize significant
adverse impacts and constitute the standard
by which an impact conclusion of less -than
significant may be reached:

• Avoid and preserve resources in
place, including, but not limited to,
planning construction to avoid the
resources and protect the cultural and
natural context, or planning
greenspace, parks, or other open
space, to incorporate the resources
with culturall y appropriate protection
and management criteria.
• Treat the resource with culturally
appropriate dignity taking into account
the Tribal cultural values and meaning
of the resource, including, but not
limited to, the following:
o Protect the cultural character
and integrity of the resource.
o Protect the traditional use of
the resource.
o Protect the confidentiality of
the resource.
o Establish permanent
conservation easements or
other interests in real
property, with culturally

Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

4.13-1(c) Implement Procedures in the Event of the
Inadvertent Discovery of Native American
Human Remains.

If an inadvertent discovery of human remains
is made at any time during project -related
construction activities or project planning, the
City will implement the procedures listed
above. The following performance standards
shall be met prior to implementing or
continuing actions such as construction, which
may result in damage to or destruction of
human remains. In accordance with the
California Health and Safety Code (HSC), if
human remains are encountered during
ground-disturbing activities, the City shall
immediately halt potentially damaging
excavation in the area of the remains and
notify the Sacramento County Coroner and a
professional archaeologist to determine the
nature of the remains. The Coroner is required
to examine all discoveries of human remai ns
within 48 hours of receiving notice of a
discovery on private or State lands (HSC
Section 7050.5[b]).

If the human remains are of historic age and
are determined to be not of Native American

City of
Sacramento
Community
Development
Department

Sacramento
County
Coroner

NAHC

If an inadvertent
discovery of human
remains is made at
any time during
project-related
construction
activities or project
planning
Final EIR
Airport South Industrial Park Project
March 2025

Chapter 4 – Mitigation Monitoring and Reporting Program

Page 4 ends

MITIGATION MONITORING AND REPORTING PROGRAM
Airport South Industrial Park Project
Impact
Number Impact Mitigation Measures Monitoring
Agency
Implementation
Schedule Sign-off
origin, the City will follow the provisions of the
HSC Section 7000 (et seq.) regarding the
disinterment and removal of non- Native
American human remains.

If the Coroner determines that the remains are
those of a Native American, he or she must
contact the Native American Heritage
Commission (NAHC) by phone within 24 hours
of making that determination (HSC Section
7050[c]). After the Coroner’s findings have
been made, the archaeologist and the NAHC -
designated Most Likely Descendant (MLD), in
consultation with the landowner, shall
determine the ultimate treatment and
disposition of the remains. The responsibilities
of the City for acting upon notification of a
discovery of Native American human remains
are identified in California PRC Section 5097.9
et seq.

RESOLUTION NO.

Adopted by the Sacramento City Council

INTITIATING THE AIRPORT SOUTH INDUSTRIAL ANNEXATION
(REORGANIZATION) (P21-017)

(APNs: 225-0020-023-0000; 225-0020-022-0000; 225-0020-024-0000; 225-0020-033-0000; 225-0020-034-0000; 225-0020-035-0000; 225-0020- 030-0000; 225-0020-026-0000; 225-0020-027-0000; 225-0020-021-0000; 225-0020-016-0000; 225-0020-017-0000; 225-0020-010-0000; 225-0020- 032-0000; 225-0030-024-0000; 225-0030-048-0000; 225-0030-023-0000; 225-0030-045-0000).

BACKGROUND
A. The City Council conducted a public hearing on November 18, 2025, and the City Planning and Design Commission conducted a public hearing on June 26, 2025, concerning the above annexation (reorganization), and based on documentary and oral evidence submitted at the public hearing, the Council hereby finds:

1. This action of reorganization is being taken pursuant to the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56000 et. seq.);

2. This reorganization is the Annexation to City of Sacramento and Detachment from Natomas Fire Protection District, County Service Area (CSA) 1, and Sacramento County Water Agency (Zone 13): A description of the exterior boundaries of the affected territory subject to this reorganization is attached hereto as Exhibits A and B, and incorporated herein by reference;

3. The City Council hereby finds and determines that the annexation of Airport South Industrial is in the best interest of the City;

4. The reasons for the reorganization are as follows:
a. The affected territory is within the Sphere of Influence of the City. b. The annexation represents a logical and reasonable extension of the City boundaries since it directly abuts the City limits on the eastern project boundary;
c. The annexation does not result in unincorporated land being within the boundaries of another city;
d. The annexation does not preclude what would otherwise be a viable annexation by an adjoining city because the remaining unincorporated area is located such that it could not reasonably be annexed to another city or incorporated as a new city;
e. The annexation does not split lines of assessment or ownership; f. The annexation is consistent with the orderly annexation of territory within the City’s urban service area and is consistent with the City General Plan policy of annexing when providing City services; g. The annexation would facilitate the more efficient provision of municipal services, including compliance with uniform City planning and development standards;
h. The annexation will provide greater protection from inappropriate land uses adjacent to existing land uses that otherwise would be detrimental to the orderly development of the community; i. The annexation is in the interest of public health, safety and welfare, and contributes to the orderly development of the community;
j. The annexation is consistent with the City’s General Plan;

5. The regular County Assessment Roll will be utilized.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. The City Council of the City of Sacramento hereby initiates the reorganization described above, and requests that proceedings be taken for the proposal pursuant to Cortese-Knox-Hertzberg Government Reorganization Act of 2000 (Government Code Section 56700, etal.)

Table of Contents:

Exhibit A Airport South Industrial Annexation Boundary Description Exhibit B Airport South Industrial Annexation Map

3909.004
ASI-Annexation Page 1 of 2

EXHIBIT 'A'

LEGAL DESCRIPTION

FOR THE

AIRPORT INDUSTRIAL SOUTH
(ANNEXATION)

A portion of Sections 4 & 5, Township 9 North, Range 4 East, Mount Diablo Baseline and Meridian, also being all of Lots 1 though 8, as shown on the Map entitled “Natomas Elkhorn Subdivision” recorded in Book 1 5 of Maps, at Page 42, and all of Lots 90 through 92, as shown on the Map entitled “ Natomas Central Subdivision” recorded in Book 16 of Maps, at Page 3, Sacramento County Records, located in the County of Sacramento, State of California, more particularly described as follows:

BEGINNING at a point which is the northwest corner of said Section 4, also being the southwest corner of the City of Limits of the City of Sacramento as described in the Greenbriar Annexation (Reorganization) Resolution No. 2008-055;

1. THENCE North 89°39’24” East, a distance of 2224.34 feet , along the north line of said Section 4, also being on the south line of said City Limits, to the northeast corner of said Lot 92, also being on the City Limits line of the City of Sacramento described in an Ordinance entitled “Natomas Annexation Area No. 1” , filed as Sacramento City Ordinance No. 2295 – Fourth Series;

2. THENCE South 00°34’02” East, a distance of 2289.10 feet, leaving said City Limits of Greenbriar , along a portion of the west line of said City Limits of Natomas Annexation Area No. 1, also being the east line of said Lots 92, 91, and 90, respectively to the southeast corner of said Lot 90;

3. THENCE South 62°36’58” West, a distance of 641.78 feet, leaving said City Limits line, along the boundary line of said Lot 90;

4. THENCE South 89°42’45” West, a distance of 805.34 feet , along the boundary line of said Lot 90;

5. THENCE South 00°18’15” East, a distance of 25.00 feet , along the boundary line of said Lot 90;

6. THENCE South 89°42’45” West, a distance of 853.54 feet to the southwest corner of said Lot 90, also being the southeast corner of said Lot 1;

7. THENCE South 89°45’45” West, a distance of 5297.25 feet , along the south line of said Lots 1 through 8, respectively, to the southwest corner of said Lot 8, also being on the centerline of Power Line Road;

8. THENCE North 00°22’19” West, a distance of 2604.23 feet, along the west line of said Lot 8, also being said centerline, to the northwest corner of said Section 5;

9. THENCE North 89°45’45” East, a distance of 5295.78 feet , along the north line of said Section 5 to the POINT OF BEGINNING.

Containing 447.197 acres, more or less.
3909.004
ASI-Annexation Page 2 of 2
Basis of Bearings for this description is the north line of Section 5, as shown on that certain Subdivision Map No. 96- 0447, entitled “Metro Air Park Unit ‘A’”, Book 328 of Maps, at Page 3, in said County. Said line is taken to bear North 89°45’45” East.

September 3, 2025

END OF DESCRIPTION

PREPARED BY WOOD RODGERS, INC.

SACRAMENTO, CALIFORNIA

ORDINANCE NO. 2025 –

ADOPTED BY THE SACRAMENTO CITY COUNCIL

November 18, 2025

AN ORDINANCE RELATING TO THE APPROVAL OF A DEVELOPMENT AGREEMENT FOR THE AIRPORT SOUTH INDUSTRIAL ANNEXATION PROJECT (P21-017) ON PROPERTY LOCATED IN NATOMAS, BETWEEN POWER LINE RD, INTERSTATE 5, EXISTING CITY LIMITS, AND RD1000 DRAINAGE CANAL

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1

This Ordinance incorporates, and by this reference makes part hereof, that certain Development Agreement, by and between the City of Sacramento and NP Map Land Holding Company, LLC, a copy of which is attached.

SECTION 2

The City Council enacts this ordinance against the following background:

A. The agreement is consistent with the City General Plan and the goals, policies, standards and objectives of the North Natomas Community Plan (NNCP).

B. The project should be encouraged in order to meet important economic, social, environmental or planning goals of the NNCP.

C. The project would be unlikely to proceed in the manner proposed in the absence of a Development Agreement.

D. The landowner will incur substantial costs in order to provide public improvements, facilities or services from which the general public will benefit.

E. The landowner will participate in all programs established and/or required under the General Plan and the NNCP and all of its approving resolutions (including any mitigation monitoring plan), and has agreed to financial participation required under any applicable financing plan and its implementation measures, all of which will accrue to the benefit of the public.

F. The form of the development agreement is as specified in Ordinance No. 95-012, updated to reflect the 2040 General Plan and site-specific needs because the project has its own associated financing plan.

G. The landowner has made commitments to a high standard of quality and has agreed to all applicable land use and development regulations.

H. The local flood management agency has made adequate progress (as defined in California Government Code section 65007) on the construction of a flood protection system that will result in flood protection equal to or greater than the urban level of flood protection in urban or urbanizing areas or the national Federal Emergency Management Agency standard of flood protection in nonurbanized areas for property located within a flood hazard zone, intended to be protected by the system.

SECTION 3

The attached Development Agreement is hereby approved, and the Mayor is authorized to execute the Development Agreement on behalf of the City of Sacramento after the effective date of this Ordinance. This approval and authorization is based upon the California Environmental Quality Act Environmental Impact Report which is the subject of a separate resolution adopted by City Council prior to or concurrent with the adoption of this Ordinance.

SECTION 4

Consistent with City Council Resolution 94-494, the Exhibits to the Development Agreement as they appear in Exhibit A to this Ordinance may be modified by City, in cooperation with Landowner, after City Council approval and execution by the Parties, and prior to recordation, of the Development Agreement, in order to conform to the final City Council approval of the Project.

Table of Contents:

Exhibit A: Development Agreement

No Fee Required: Recording benefits the
City of Sacramento, a government entity.

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

City Clerk
City of Sacramento
915 I Street
Sacramento, CA 95814

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

DEVELOPMENT AGREEMENT

  

Airport South Industrial Annexation
P21-017

NP MAP LAND HOLDING COMPANY LLC
4696/4690 Bayou Way
Sacramento, CA 95835

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

~ i ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

DEVELOPMENT AGREEMENT

Table of Contents

RECITALS

A. Development Agreement/California Government Code
B. Property (Subject to Agreement)
C. City Council Actions
D. City/Landowner Objective
E. Landowners Commitment
F. Landowner’s Objective and Agreement
G. Procedural Ordinance for Development Agreement
H. Development Conditions and North Natomas Community Plan I. Development Conditions and Airport South Industrial (ASI) Finance Plan J. Agreement Voluntary
K. Agreement Authority
L. Procedural Requirements Completed
M. City Council Review and Approval

I. DEFINITIONS

II. TERMS AND CONDITIONS OF AGREEMENT

1. Property Description and Binding Covenants

2. Interests of Landowner

3. Term

4. Assignment

5. Development of the Property
A. Permitted Uses and Development Standards
B. Discretionary Approvals
C. Development Timing
D. Special Conditions
E. Land Use and Development Regulations

~ ii ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ (1) Regulations Applicable on Effective Date
(2) Future Changes in Regulations (Inconsistent)
(3) Future Changes in Regulations (Consistent)
(4) Mandated State or Federal Laws
(5) Effect on Agreement
(6) Health, Safety or Physical Risks
(7) Construction Standards and Permits
(8) City Modifications after Effective Date
F. City Review of Applications
G. Extension of Entitlements
H. Allocation Procedures

6. Fees, Charges, Assessments and Special Taxes
A. City Fees
B. Levies Imposed by Other Jurisdictions
C. Implementation of the ASI Finance Plan
D. Landowner’s Waivers

7. Reconfiguration of Parcels

8. Infrastructure
A. Construction by City
B. Construction by Landowner
C. Drainage Infrastructure
(1) Establishment of Financing Mechanisms
(2) Issuance of Bonds
(3) Linkage of Development to Completion of Drainage System D. Infrastructure Financing Proceedings
(1) Landowner Initiated Proceedings
(2) Proceedings Initiated by City
(3) Maintenance Districts
E. Reimbursement to Landowner
(1) From Financing Proceeds
(2) Reimbursement from Others Benefitted
(3) Reimbursement of Planning, Engineering and Staff Costs

9. Landowner Obligations

~ iii ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ A. Transfer of Land to City
(1) Condition of Entitlements
(2) Request by City
B. Development Timing

10. Litigation/Indemnification
A. Challenge to Agreement or Entitlements
(1) City Discretion to Defend or Tender Defense
(2) Effect of Invalidation in Whole or Part
B. Indemnification

11. Effect of Subsequent Laws
A. Laws of Other Agencies
(1) New Laws by Other Agencies
(2) Termination of Agreement
(3) Landowner/City Right to Institute Litigation
B. Laws Passed by City

12. Enforced Delay; Extension of Times of Performance

13. Legal Actions; Applicable Law; Attorney Fees
A. Legal Actions
B. Applicable Law
C. Attorney Fees

14. Amendment of Agreement

15. City’s Good Faith in Processing

16. Default, Remedies, Termination
A. General Provisions
(1) Landowner Default
(2) City Default
(3) Successors in Interest
B. Cure of Default
C. Remedies after Expiration of Cure Period
(1) Institution of Legal Proceedings
(2) Notice of Intent to Terminate Agreement

17. Annual Review
A. General Provisions

~ iv ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ B. Scope of Review
C. Proceedings
D. Failure of Compliance

18. Termination upon Completion of Development
A. General Provisions
B. Multi-family and Single Family Residential Projects
C. Effect of Termination on Landowner Obligations

19. No Joint Venture, Partnership, or Other Relationship

20. Notices

21. Severability

22. Recording

23. Reimbursement to City

24. Provisions Relating to Lenders
A. Lender Rights and Obligations
B. Notice of Landowner’s Default Hereunder
C. Lender’s Right to Cure
D. Other Notices Given by City

25. Estoppel Certificate

26. Construction

27. Counterparts

28. Time

29. Limitation of Actions

30. No Third parties Benefitted

31. Effect of Agreement upon Title to Property

32. Covenant of Good Faith

33. Exhibits

34. Entire Agreement

35. City Attorney Costs
Execution Page for City and Landowner
Execution Page for Lender

LIST OF EXHIBITS

~ v ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ Exhibit “A” Legal Description of Property
Exhibit “B” Landowner’s Development Plan
Exhibit “C” Special Conditions
Exhibit “D” Assignment and Assumption Agreement
Exhibit “E” ASI Finance Plan
Exhibit “F” Protest Waiver Provisions Agreed to by Landowner Exhibit “G” Irrevocable Offer of Dedication Form
Exhibit “H” Map and Categorical Listing of Land and Infrastructure

- 1 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

DEVELOPMENT AGREEMENT

BY AND BETWEEN

THE CITY OF SACRAMENTO
AND

NP MAP LAND HOLDING COMPANY LLC

This Development Agreement (hereinafter “Agreement”) is made and entered into this ___ day of _____________, 2025, by and between the CITY OF SACRAMENTO, a municipal corporation (hereinafter the “CITY”), and NP MAP LAND HOLDING COMPANY LLC (hereinafter the “LANDOWNER”).

RECITALS
A. To strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risks of development, the Legislature of the State of California adopted section 65864 et seq. of the Government Code which authorizes any city, county, or city and county to enter into a development agreement with an applicant for a development project, in order to establish certain rights and obligations of the parties relative to the Property.

B. LANDOWNER owns a legal or equitable interest in those certain parcels of real property (hereinafter the “Property”), described in Exhibit “A” attached hereto and incorporated herein by this reference, which are located within the CITY. The Property consists of lands designated as Assessor Parcels Nos. 225-0020-023-0000; 225-0020-022-0000; 225-0020-024-0000; 225- 0020-034-0000; 225-0020-035-0000; 225-0020-030-0000; 225-0020-026-0000; 225-0020-027- 0000; 225-0020-021-0000; 225-0020-016-0000; 225-0020-017-0000; 225-0020-010-0000.

LANDOWNER seeks to develop the Property consistent with CITY’s General Plan, the 1994 North Natomas Community Plan, and the Planning and Development Code (Sacramento City Code title 17) as they exist on the Effective Date.

C. On May 3, 1994, after making specific findings and adopting a Statement of Overriding Considerations, the City Council approved the 1994 North Natomas Community Plan by adopting Resolution No. 94-259 (hereinafter the “NNCP”).

D. On February 27, 2024, after a duly noticed public hearing, the City Council (1) certified the Master Environmental Impact Report for the Sacramento 2040 General Plan by adopting Resolution No. 2024-0065; and (2) approved the 2040 General Plan, which includes the North Natomas Community Plan Area, by adopting Resolution No. 2024-0066 (hereinafter the “General Plan”). The uses allowed under the General Plan, the NNCP, and the applicable ordinances provide for a balanced mix of residential housing and employment opportunities as well as for the protection of major open-space and recreational resources.

- 2 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ E. CITY and LANDOWNER desire to enter into a development agreement pursuant to the provisions of Government Code section 65865 et seq. in order to provide for the orderly development of the Property, in accordance with the goals set forth in Government Code section 65865, the General Plan and the NNCP.

F. The coordinated and orderly development of the Property, and LANDOWNER’s commitment to the implementation of the ASI Finance Plan in order to assure the timely and properly-phased construction of all required Infrastructure and facilities, are essential to the proper implementation of the General Plan and the NNCP.

G. LANDOWNER desires to facilitate implementation of the General Plan, the NNCP and the ASI Finance Plan, and LANDOWNER therefore agrees to develop the Property in a manner consistent with the policies of the General Plan, the NNCP, the ASI Finance Plan and the Special Conditions, provided that LANDOWNER is assured that no subsequent changes in the General Plan, the NNCP, the ASI Finance Plan, the Zoning Ordinance or the Special Conditions shall apply to the Property during the term of this Agreement.

H. The City Council, on March 7, 1995, adopted the Procedural Ordinance, by which CITY will, inter alia, consider, adopt, amend and subsequently review the development agreements by and between CITY and a given landowner.

I. Development of the Property, in accordance with the conditions of this Development Agreement, will provide orderly growth and development of the Property in accordance with the requirements, policies, goals, standards, and objectives of the General Plan and the NNCP.

At the same time, it will assure that LANDOWNER is committed to funding its appropriate share of the cost of Infrastructure and other facilities which are the subject of the ASI Finance Plan, and that the funding for acquisition and construction of those facilities will be available to CITY as and when required under the Infrastructure phasing program.

J. This Agreement is voluntarily entered into by LANDOWNER in order to assure the implementation of the General Plan, the NNCP and the ASI Finance Plan, and is made in consideration of the rights conferred and the procedures specified herein for the development of the Property. This Agreement is voluntarily entered into by CITY in the exercise of its legislative discretion in order to assure the implementation of the General Plan, the NNCP, and the ASI Finance Plan and in consideration of the agreements and undertakings of LANDOWNER hereunder. But for LANDOWNER’s contribution to and participation in programs to mitigate the impacts of the development of the Property and the cumulative impacts of development in the NNCP area, and to the implementation of the ASI Financing Plan, the CITY would not approve development of the Property.

- 3 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ K. The authority for this Agreement is contained in the City Charter of CITY, the Procedural Ordinance, other applicable CITY ordinances, resolutions and procedures and Government Code section 65864 et seq.

L. CITY and LANDOWNER have taken all actions mandated by and have fulfilled all requirements set forth in the Procedural Ordinance for the adoption of this Agreement by the City Council.

M. The City Council has reviewed and approved this Agreement. It finds that this Agreement is consistent with the General Plan, the NNCP, the ASI Finance Plan, and all other applicable CITY ordinances, rules and regulations. The implementation of this Agreement is in the best interest of CITY and the health, safety and welfare of its residents. The environmental impacts of the development contemplated herein were adequately considered in the environmental documentation prepared by CITY and adoption of the ordinance and approval of this Agreement complies in all respects with the California Environmental Quality Act.

AGREEMENT

NOW, THEREFORE, in further consideration of the above recitals, all of which are expressly incorporated into this Agreement, and the mutual promises and covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

I. DEFINITIONS

The terms set forth below, unless the context otherwise requires, shall have the meanings prescribed, for purposes of this Agreement.

 Adopting Ordinance: the ordinance pursuant to which the City Council approves this Agreement.

 Allocation Procedures: those procedures set forth in section 5.H. of this Agreement, whereunder the various uses and densities are distributed to and among the various parcels, or portions of them, comprising the Property.

 Annual Review: the process, and procedures therefor, whereby CITY reviews, pursuant to Government Code section 65865.1, the nature and extent of compliance by LANDOWNER with all of the terms and conditions of this Agreement, which process and procedures are as specified in the Procedural Ordinance, and in section 17 of this Agreement.

 Assessment: a special assessment levied on real property within the North Natomas Community Plan area, for the purpose of financing Infrastructure and/or public facilities, or maintenance

- 4 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ thereof, in accordance with the California Streets and Highways Code, the California Government Code, and/or the Sacramento City Code.

 Assessment District Policy Manual: the document entitled “City of Sacramento Policy and Procedures for Use of Special Assessment and Mello-Roos Community Facilities District Financing for Infrastructure and Public Facilities,” as adopted by the City Council on June 29, 1993 (Resolution 93-381), as said document may be amended from time to time.

 Assignee: a third Person executing an Assumption Agreement prepared in accordance with the format prescribed in Exhibit D.

 Assignment: the sale or other transfer by LANDOWNER of all or part of its right, title and interest in the Property and in this Agreement to another Person, in accordance with the terms and conditions of this Agreement.

 Assumption Agreement: the agreement prescribed in Exhibit D, whereby an Assignee undertakes to perform all obligations, and other terms and conditions of this Agreement, as a condition of release of the Assignee’s predecessor in interest from the responsibility for performance of such obligations and other terms and conditions, with respect to the portion of the Property assigned to the Assignee.

 CEQA: the California Environmental Quality Act, set forth at California Public Resources Code section 21000 et seq., as amended from time to time.

 CITY: the City of Sacramento.

 City Agency: the Redevelopment Agency of the City of Sacramento, and the Housing Agency of the City of Sacramento.

 City Council: the Council of the City of Sacramento.

 Comprehensive Flood Management Plan: that plan required to be prepared, and to be adopted by the City Council, pursuant to the CITY’s floodplain policy adopted by Resolution No. 93-696.

 Dedication: the transfer of real property, or a defined interest therein, to CITY or another public agency, free of all encumbrances and other matters affecting the title except as may otherwise be agreed to by CITY or such other public agency, and at no cost to CITY or such other public agency.

 Deed of Trust: a real property security device whereby the debtor (trustor) conveys title to real property to a trustee as security for a debt owed to the creditor (beneficiary).

- 5 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________  Default: a failure of performance, or unreasonable delay in performance, by either party to this Agreement, of any of its terms, conditions, obligations or covenants. Default shall include, but not be limited to failure to comply with all provisions of the ASI Finance Plan and/or failure to pay any fee, tax or assessment enacted pursuant to that Plan.

 Development: the use(s) to which the Property will be put, the buildings and improvements to be constructed on it, and the construction activities incident thereto, together with the process of obtaining all required land use entitlements.
 Development Agreement: this Agreement.

 Development Plan: LANDOWNER’s plan for development of the Property, as set forth in Exhibit B.

Where LANDOWNER, at the time of execution of this Agreement, does not propose a specific development project, the Development Plan shall be deemed to be development consistent with the Land Use and Development Regulations.

 Effective Date: the date on which this Agreement has been approved by the City Council.

 General Plan: the General Plan of the City of Sacramento, as adopted by the City Council on February 27, 2024, as said plan may be amended from time to time.

 Habitat Conservation Plan: that plan, which must be adopted and implemented by the City Council, pursuant to which measures are taken to implement the provisions of the federal and state Endangered Species Acts, and pursuant to which incidental take permits will be issued to the City of Sacramento, to Landowner, or to others under said Acts.

 Infrastructure: all public facilities and improvements needed to serve urban development, as identified in the NNCP and the ASI Finance Plan, or in subdivision maps, parcel maps, or as may otherwise be constructed and conveyed to CITY or another public agency, including but not limited to street and freeway improvements, drainage improvements, sanitary sewer improvements and water storage and transmission facilities.

 Irrevocable Offer of Dedication: an unconditional and irrevocable offer by LANDOWNER to transfer real property to CITY in accordance with any condition of any land use entitlement applicable to the Property, in the form specified in Exhibit G.

 Land Use and Development Regulations: the General Plan, the North Natomas Community Plan, the CITY’s Subdivision Map Act Ordinance, and Zoning Ordinances, together with any other CITY ordinance, or resolutions, rules, regulations and official policies as they exist on the Effective Date, which govern or regulate land use and/or development in the North Natomas Community Plan area.

- 6 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

 Lender: a Person (or a successor in interest to such person) who has advanced funds to, or who is otherwise owed money by a debtor, where the obligation is embodied in a promissory note or other evidence of indebtedness, and where such note or other evidence of indebtedness is secured by a Mortgage or Deed of Trust.

 Mortgage: a contract by which the mortgagor (debtor) as owner hypothecates or pledges real property, or otherwise grants a security interest therein to a Lender (mortgagee), to secure performance under a promissory note or other evidence of indebtedness, and where the holder of the mortgage is granted a power of sale.

 North Natomas Community Plan (NNCP): the Community Plan for development of the North Natomas area, as adopted by the City Council on May 3, 1994, as said plan exists on the Effective Date. The NNCP includes, without limitation, a Land Use Diagram and Policy Statements.

 ASI Finance Plan: the plan, as it may be amended from time to time, which establishes methods for financing required Infrastructure and public facilities through a combination of land transfers, dedications, contributions, fees, assessment districts, community facilities districts, and other measures, and as more particularly described in Exhibit E.  ASI Finance Plan Area: the lands within the area covered by the ASI Finance Plan, and which are obligated thereby, as that area may exist from time to time.

 Parties: the City of Sacramento and LANDOWNER.

 Person: any person, firm, association, organization, partnership, business trust, corporation or company.

 Planning and Development Code: the Planning and Development Code of the City of Sacramento, as that Code exists on the Effective Date.

 Procedural Ordinance: Ordinance No. 95-012, adopted by the City Council on March 7, 1995, and which sets forth procedures for execution, approval, implementation, amendment, and related matters, with respect to development agreements for lands within the NNCP area.

 Project: part or all of the elements set forth in LANDOWNER’s Development Plan.

 Project Review: CITY’s actions in reviewing any project proposed by LANDOWNER with respect to the Property, including but not limited to review of all required land use entitlement applications.

 Property: the real property owned by LANDOWNER, as set forth in Exhibit A.

- 7 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

 Protest Waiver: the agreement set forth in Exhibit F, executed by LANDOWNER pursuant to this Agreement, or in connection with the conditions of any required entitlement.

 Purchaser: an assignee.

 Reconfiguration: the reconfiguration, adjustment or alteration of property lines through parcel or subdivision mapping, or lot line adjustment.

 Reimbursement: the reimbursement of monies to a Person who has advanced funds for Infrastructure required for development of the Property, the ASI Finance Plan, or other document, and which have benefit to land beyond the Property, in accordance with a reimbursement agreement approved by CITY. Any such agreement will be limited to the portion of the funding advanced which is in excess of the allocable share of the cost of the Infrastructure or improvement attributable to the Property.

 Reimbursable Infrastructure Costs: those costs paid by LANDOWNER, and which are identified as reimbursable pursuant to CITY’s Assessment District Policy Manual (as defined in section 8.D.(1) of this Agreement).

 Special Conditions: those conditions, terms and requirements specified in Exhibit C.

 Special Permit: any discretionary permit required pursuant to the Land Use and Development Regulations, and issued by CITY for development of the Property, upon proper application therefor by LANDOWNER.

 Term: the length of this Agreement in terms of time, as specified in section 3, or as that time may be extended pursuant to any applicable provision of this Agreement.

 Transfer: an assignment.

 Transferee: an assignee.

 Zoning: the division of the City of Sacramento into districts, and the application of zoning regulations thereto, which include (without limitation) regulation of the height or bulk of buildings (structural and architectural design) and the use to which the land and buildings within prescribed districts may be put, all as specified in the Zoning Ordinance.

- 8 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ II. TERMS AND CONDITIONS OF AGREEMENT

1. Property Description and Binding Covenants. The Property is that certain real property owned by LANDOWNER and described in Exhibit “A.” The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to the benefit of, the parties and, subject to section 4 below, to their successors-in-interest.

2. Interests of Landowner. LANDOWNER represents that LANDOWNER owns a legal or equitable interest in the Property and that all other Persons holding legal or equitable interests in the Property, including (the Lender), have executed and are bound by this Agreement. There is no lender on the property.

3. Term.

A. Initial Term. The term of this Agreement shall commence on the Effective Date and shall extend for a period of fifteen (15) years thereafter, unless it is sooner terminated or modified by the mutual consent of the parties.

B. Renewal Options. Subject to the provisions of this subsection, LANDOWNER shall have the right to renew this Agreement on its same terms and conditions, taking into account any amendments hereto mutually agreed upon after the Effective Date. The term of this Agreement shall mean and include the initial term, plus any renewal periods. The specific conditions for exercise of the renewal options are as follows:

(1) On the Exercise Date, LANDOWNER shall not be in default in any material respect under this Agreement, including any amendments hereto. For purposes of this subsection, “Exercise Date” shall mean the date that LANDOWNER or LANDOWNER’s successor in interest gives written notice of intention to exercise the option to renew this Agreement, in accordance with the provisions of section 20 hereof.

(2) The option to renew shall be exercisable by giving CITY written notice of LANDOWNER’s intention to exercise the option on or before the Exercise Date, which notice shall be given not later than thirty (30) days prior to expiration of the initial term or any renewal term.

(3) LANDOWNER shall be limited to three (3) renewal periods of five (5) years each; the parties specifically intend that under no circumstances shall the term of this Agreement extend beyond thirty (30) years, unless this Agreement is amended in accordance with the procedures set forth herein for Agreement amendments.

- 9 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

4. Assignment. LANDOWNER shall have the right to sell, assign, or transfer its interests under this Agreement as part of a contemporaneous and related sale, assignment or transfer of its interests in the Property, or any portion thereof, without the consent of CITY; provided, however, that LANDOWNER shall notify CITY of such sale, assignment or transfer by providing written notice thereof to CITY in the manner provided in this Agreement. LANDOWNER shall remain obligated to perform all terms and conditions of this Agreement, unless such purchaser, assignee or transferee, to the satisfaction of and in a form acceptable to the City Attorney, executes and delivers to CITY an express agreement to assume all of the obligations and other terms and conditions of this Agreement with respect to the Property or such portion thereof sold, assigned or transferred. The execution of such an assumption agreement shall relieve LANDOWNER of the obligations expressly assumed only if (a) LANDOWNER is not in default under this Agreement at the time of the assignment or transfer; and (b) LANDOWNER has provided CITY with notice of said assignment or transfer in the manner provided hereunder.

Any such assumption agreement with respect to LANDOWNER’s obligations under this Agreement shall be deemed to be to the satisfaction of the City Attorney if executed in the form of the Assignment and Assumption Agreement attached hereto as Exhibit “D” and incorporated herein by this reference, or such other form as shall be proposed by LANDOWNER and approved by the City Attorney prior to the effective date of the assignment.

Any purchaser, assignee, or transferee shall be obligated and bound by the terms and conditions of this Agreement, and shall be the beneficiary thereof and a party thereto, only with respect to the Property, or such portion thereof, sold, assigned, or transferred to it. Any such purchaser, assignee, or transferee shall observe and fully perform all of the duties and obligations of LANDOWNER under this Agreement, as such duties and obligations pertain to the portion of the Property sold, assigned, or transferred.

5. Development of the Property.

A. Permitted Uses and Development Standards. Subject to the Special Conditions set forth in Exhibit C, attached hereto and incorporated herein by this reference (herein the “Special Conditions”), any reserved discretionary approvals specified in this Agreement, and all other terms and conditions of this Agreement, LANDOWNER may develop the Property in accordance with and subject to the terms and conditions specified in the Land Use and Development Regulations in effect on the Effective Date, or, where applicable, the Development Plan, as set forth in Exhibit B, attached hereto and incorporated herein by this reference. Specifically, the permitted uses, density or intensity of use, height or size of buildings and provisions for reservation and dedication of land for public purposes shall be as set forth in the Development Plan.

B. Discretional Approvals.

- 10 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ (1) Development of the Property is subject to all required discretionary approvals. In reviewing and approving applications for special permits and other discretionary approvals, CITY may exercise Project Review and may attach such conditions and requirements as are consistent with the policies, goals, standards and objectives of the General Plan, the NNCP and the ASI Finance Plan, and as may be necessary to comply with all applicable legal requirements and policies of CITY pertaining to such reserved discretionary approvals.

C. Development Timing. This Agreement contains no requirement that LANDOWNER must initiate or complete development of any phase of the development of the Property or any portion thereof within any period of time set by CITY. It is the intention of this provision that LANDOWNER be able to develop the Property in accordance with LANDOWNER’s own schedule; provided, however, that to the extent that phasing is required by the Special Conditions, such provisions shall govern. No future modification of the Sacramento City Code or any ordinance or regulation which limits the rate of development over time shall be applicable to the Property. However, nothing herein shall be construed to relieve LANDOWNER from any time conditions in any permit or subdivision map approval or to excuse the timely completion of any act which is required to be completed within a time period set by any applicable code or permit provisions.

D. Special Conditions. Development of the Property shall be subject to the Special Conditions, as specified in Exhibit C.

E. Land Use and Development Regulations.

(1) Subject to the Special Conditions specified in Exhibit C, development of the Property shall be subject to the Land Use and Development Regulations applicable to such development on the Effective Date.

(2) Except as otherwise provided in this Agreement, to the extent any future changes in Land Use and Development Regulations adopted by CITY purport to be applicable to the Property but are inconsistent with the terms and conditions of this Agreement, including subsection 5E(1) above, the terms and conditions of this Agreement shall prevail, unless the parties or their successors in interest mutually agree to amend or modify this Agreement in accordance with the provisions for modification hereinafter set forth.

(3) To the extent that any future changes in the Land Use and Development Regulations adopted by CITY are applicable to the Property and are not inconsistent with the terms and conditions of this Agreement or are otherwise made applicable

- 11 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ by other provisions of this Agreement, such future changes shall be applicable to the Property.

(4) Nothing in this Agreement shall preclude the application to development of the Property of changes in the Land Use and Development Regulations, the terms of which are specifically mandated by changes in state or federal laws or regulations.

In the event state or federal laws or regulations enacted after the effective date of this Agreement or action by any governmental jurisdiction other than CITY prevent or preclude compliance with one or more provisions of this Agreement or require changes in permits, maps or plans approved hereunder by CITY, this Agreement shall be modified, extended or suspended as may be necessary to comply with such state or federal laws or regulations or the regulations of such other governmental jurisdiction.

(5) To the extent that any actions of federal or state agencies (or actions of regional and local agencies, including CITY, required by federal or state agencies or actions of CITY taken in good faith in order to prevent adverse impacts upon CITY by state or federal actions) have the effect of preventing, delaying or modifying development of the NNCP area or any area therein, CITY shall not in any manner be liable for such prevention, delay or modification of said development. Such actions may include, but are not limited to, flood plain or wetlands designations and actions of CITY or regional agencies as a result thereof and the imposition of air quality measures or sanctions and actions of CITY or regional and local agencies as a result thereof. In such a situation, CITY’s actions shall not be arbitrary or capricious, and the parties shall meet and endeavor to achieve solutions which preserve the integrity of the NNCP, while to the extent feasible allow development of the Property in the manner contemplated by this Agreement.

(6) Nothing herein shall be construed to limit the authority of CITY to enact amendments to the Land Use and Development Regulations, or enact other ordinances or resolutions, which have the legal effect of protecting persons or property from conditions which create a health, safety or physical risk.

(7) Building codes, ordinances and regulations relating to construction standards or permits shall apply as of the time of grant of each applicable construction permit.

(8) No modification of CITY’s ordinances, resolutions, policies, rules or regulations adopted after the Effective Date, which purport to limit the rate of development over time or to govern the sequence of development of land within the NNCP area, shall apply to the Property. The provisions of this subsection apply to modifications adopted or imposed by the City Council, or through the initiative or referendum process; provided, however, nothing in this subsection shall limit the ability of CITY

- 12 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ to act in accordance with the provisions of subsections 5E(4), 5E(5) and 5E(6) of this Agreement.

F. CITY Review of Applications. Consistent with the standards set forth in section 15 of this Agreement, nothing contained in this Agreement shall preclude CITY from its right and responsibility to review applications for entitlements submitted by LANDOWNER in accordance with its normal and usual procedures and practices, as they may exist at the time the application is accepted as complete, or is otherwise deemed complete by operation of law.

G. Extension of Entitlements. Pursuant to Government Code section 66452.6 all vesting tentative subdivision maps, master parcel tentative maps, parcel maps, subdivision tentative maps, planned unit development permits, special permits, or any other maps, rezonings or land use entitlements of potentially limited duration previously, contemporaneously or subsequently approved for the Property subject to this Development Agreement, shall be valid for a minimum term equal to the full term of this Agreement (including the initial term, and any renewal period resulting from exercise by LANDOWNER of the options provided for in section 3 hereof), or for a period of thirty-six (36) months, whichever is longer, but in no event for a shorter period than the maximum period of time permitted by the Subdivision Map Act or Government Code for such land use entitlements. The provisions of section 25 of this Agreement relating to estoppel certificates shall apply to any request made by LANDOWNER to CITY with respect to the life of any entitlement covered by this subsection. Nothing in this section shall be construed to, or operate to extend the term of this Agreement.

H. Allocation Procedures for Building Square Footage. Procedures for allocating the uses or densities approved for the Property among the various parcels and/or portions thereof, and for resolution of any disputes regarding such allocations, shall be as follows:

(1) Allocation. Unless otherwise identified in the Development Plan, which is attached as Exhibit B to this Agreement, the allocation of building square footage shall be as identified in subsequent entitlements for the Property, including but not limited to parcel maps, subdivision maps, PUD schematic plans and development guidelines. The appropriate entitlement to address the allocation of building square footage shall be determined by City. Allocations for residential development shall be determined in the subdivision mapping process, unless CITY determines that some other method is appropriate under the circumstances.

(2) Dispute Resolution. Where a dispute exists between LANDOWNER, and/or any successor or successors in interest, with respect to any matter involving allocation of building square footage for or on the Property, such dispute shall be resolved by arbitration, utilizing the commercial arbitration procedures of the American Arbitration Association, or some other alternative dispute resolution procedure mutually agreed upon by the parties involved in the dispute. In no case shall CITY be a party to such dispute, or to the

- 13 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ dispute resolution procedures. All of the provisions of this Agreement relating to indemnification and defense of CITY, and payment of CITY costs, shall apply to all disputes relating directly or indirectly to allocation.

6. Fees, Charges, Assessments and Taxes.

A. City Fees. All applications for CITY approvals, permits and entitlements shall be subject to the application fees, processing fees, mitigation fees and other development fees within the control of the CITY that are in force and effect as of the date that the application or other request for approval is filed.

B. Levies Imposed by Other Jurisdictions. LANDOWNER shall be responsible for:

(1) all fees, charges, assessments, special taxes or levies of any sort imposed by any other state or local agency, including but not limited to the Sacramento Area Flood Control Agency, in the future as a charge for mitigation measures imposed for the purpose of mitigation of environmental impacts associated with the provision of flood control improvements;

(2) all fees, charges, assessments, special taxes or levies of any sort associated with the financing of the construction and implementation of said flood control improvements and measures;

(3) all special benefit assessments, special taxes or levies of any sort associated with construction of or maintenance of public improvements, where the Property is located within a district formed for that purpose by any agency other than CITY;

(4) any fees or other charges required by RD-1000; and (5) ad valorem real estate taxes, and utility fees.

In the event that any of the fees, charges, assessments, special taxes or levies covered by this subsection B are imposed by or with the assistance of CITY, LANDOWNER shall nevertheless be responsible therefor. Nothing in this Agreement shall be construed to limit LANDOWNER’s right to protest, in accordance with applicable provisions of law: the formation of any district included within the provisions of this subsection or to protest the amount of any assessment levied by or on behalf of such district on the Property or any portion thereof; or to protest the nature and amount of any tax, fee, assessment or charge imposed pursuant to this subsection.

C. Implementation of the ASI Finance Plan. The ASI Finance Plan establishes a method for financing of required Infrastructure and public facilities through a combination of land

- 14 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ transfers, dedications and contributions, fees, assessment districts, community facilities districts and other sources, so that the land within the ASI Finance Plan Area pays for its share of the cost of such Infrastructure and facilities. The plan also recognizes that there are plan area costs associated with certain portions of Infrastructure and facilities, and that that share will ultimately have to be paid from other sources, even though developers within the area, including LANDOWNER, acknowledge that they may have to participate in funding costs on a fair share basis. LANDOWNER shall participate in the ASI Finance Plan, as made applicable to the development of the Property, and shall faithfully and timely comply with each and every provision thereof, including but not limited to assessments, special taxes, and other development fees and exactions set forth therein.

Without limiting the foregoing, applications for special permits, subdivision maps, or other land use entitlements and building permits may be made subject to LANDOWNER’s participation in and compliance with the plan. Failure to so participate shall be an event of default to which the default provisions of this Agreement and the Procedural Ordinance shall apply. For purposes of this Agreement “participate” and “participation” shall mean payment of all monies required by virtue of the ASI Finance Plan, and performance of all obligations imposed thereby.

D. LANDOWNER’s Waivers. LANDOWNER hereby agrees to the provisions of Exhibit F, which (without limitation) contains a comprehensive waiver of protest rights with respect to CITY’s establishment and implementation of development and impact fees; CITY’s actions in forming assessment districts and community facilities districts, and in levying assessments and taxes pursuant thereto; and CITY’s actions in implementing any provision of the ASI Finance Plan. As set forth in Exhibit F, LANDOWNER reserves the right to protest the actual amount of the fee, assessment or tax levy, or other CITY charge imposed on or allocated to the Property pursuant to the ASI Finance Plan.

7. Reconfiguration of Parcels. LANDOWNER shall have the right to file applications with CITY for subdivision, lot line adjustment, or for master parcelization of all or part of the Property, for the purpose of reconfiguration of the Property. Such applications shall be processed and determined in accordance with the provisions of section 5, and all other applicable provisions of this Agreement. Where reconfiguration requires a Special Permit, or a P.U.D. designation, or other entitlement applicable to the Property or portion thereof which is subject to the application, CITY reserves the right to require such entitlements as a condition of granting the application.

8. Infrastructure.

A. Construction by CITY. To the extent that funds are available to CITY pursuant to the ASI Finance Plan, and to the extent that any required real property has been transferred to CITY, or has been obtained by CITY through its power of eminent domain, which CITY

- 15 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ agrees to utilize, where required, and subject to LANDOWNER’s compliance with the terms of this Agreement and all of the terms and conditions of any entitlement applicable to the Property, CITY agrees to use its best efforts to bring about the construction of the Infrastructure required to implement the Development Plan (Exhibit B). Provided, however, that CITY’s obligations hereunder shall be limited to those items of Infrastructure which, under the ASI Finance Plan, are to be constructed by CITY or under CITY’s direction and control; where Infrastructure is to be constructed by LANDOWNER, either pursuant to conditions of approval or otherwise, the provisions of this subsection shall not apply.

B. Construction by LANDOWNER. When required by conditions of approval, and in accordance with CITY specifications and standards in effect as of the date of construction, LANDOWNER shall diligently construct Infrastructure required for implementation of the Development Plan (Exhibit B). LANDOWNER shall further comply with all required funding requirements specified in the ASI Finance Plan.

C. Infrastructure Financing Proceedings.

(1) LANDOWNER-Initiated Proceedings. In the event that LANDOWNER desires to initiate proceedings for the formation of an assessment district, community facilities district, or other similar form of improvement financing mechanism to fund the construction of Infrastructure required by conditions of approval or otherwise, LANDOWNER shall file an application with CITY for that purpose in accordance with CITY’s Assessment District Policy Manual, as same may be amended from time to time, or such other policy document as may after the Effective Date be adopted by the City Council as a substitute therefor. CITY agrees to diligently process any such application, provided that such application:

(a) is complete and is accompanied by payment of CITY fees applicable on the date of filing of the application;

(b) otherwise complies with the Land Use and Development Regulations and applicable law, as it exists on the date of the application, including but not limited to the Assessment District Policy Manual;

(d) provides for a value to lien ratio and other financial terms that are reasonably acceptable to CITY;

- 16 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ (e) provides for all funding requirements established by CITY for the purpose of payment of the costs of outside consultants needed, in CITY’s sole discretion; and
(f) provides that the specific consultants (e.g., bond counsel, financial advisors, underwriters, or other consultants as may be necessary under the circumstances) shall be selected by CITY in its sole discretion.

Notwithstanding any other provision of this Agreement, CITY agrees that upon request made by LANDOWNER, CITY will consider making exceptions to the Assessment District Policy Manual, to allow for alternative methods of financing in- tract improvements, including but not limited to formation of assessment districts or similar financing mechanisms, where such alternatives are contemplated by the ASI Finance Plan, including any amendments thereto. Provided, however, that CITY reserves its discretion to condition use of any such alternatives on satisfaction of performance preconditions (including but not limited to drainage capacity), and to consider underwriting considerations and criteria, together with the manner in which such alternatives further the overall implementation of the ASI Finance Plan.

Further, CITY may in its reasonable discretion deny any such request upon grounds, including but not limited to consistency of application of its policies and the potential for establishing negative precedent.

(2) Proceedings Initiated by CITY. In the event that pursuant to the ASI Finance Plan, CITY in its discretion determines that a particular financing mechanism, including but not limited to an assessment district, a community facilities district, a fee district, a development fees procedure, or any similar mechanism, is required in order to implement the ASI Finance Plan, LANDOWNER’s participation obligations set forth hereunder (including but not limited to Exhibit C), in the ASI Finance Plan, or in any condition of approval, shall apply.

(3) Maintenance Districts. LANDOWNER may, following the procedures specified in subsection 8D(1) above, request that CITY establish one or more maintenance districts for the purpose of financing the maintenance of landscaping or other public improvements, whereunder lands benefitting from the improvements and their maintenance are assessed for a proportionate share of the maintenance cost.

E. Reimbursement to LANDOWNER.

(1) From Financing Proceeds. Subject to Chapter 4 of the ASI Finance Plan, where LANDOWNER has provided advance funding for public Infrastructure required by the ASI Finance Plan or has constructed such Infrastructure under the direction and

- 17 -

FOR CITY CLERK USE ONLY
Ordinance No.______________________

City Agreement No.______________________ Date Adopted:______________________ control of CITY, LANDOWNER shall be reimbursed for Reimbursable Infrastructure Costs at such time as CITY has established a permanent financing mechanism in the form of an assessment district, community facilities district, or other similar mechanism through which permanent public financing for such improvements is established. Those items qualifying as Reimbursable Infrastructure Costs shall be determined pursuant to CITY policies in existence at the time of establishment of the permanent financing mechanism. CITY agrees to entertain reasonable requests from LANDOWNER for exceptions to such policies; provided, however, that CITY may, in its reasonable discretion, deny any such request upon grounds, including but not limited to consistency of application of its policies and the potential for establishing negative precedent. Nothing in this Agreement shall authorize reimbursement of any cost which, in the opinion of CITY’s bond counsel, is not permissible for purposes of establishing or retaining tax free status of any bonds issued, or contemplated to be issued by CITY.

(2) Reimbursement From Others Benefitted. In any case where CITY requires or permits LANDOWNER to plan, design, construct, or fund the planning, design or construction of improvements required for development by the ASI Finance Plan, in excess of or beyond those required for development of the Property, or, where required by the ASI Finance Plan, to make dedications, provide mitigation or incur costs in connection with public improvements or the planning of the ASI area in excess of or beyond those required for development of the Property, and the provisions of the preceding subsection do not apply, CITY shall utilize its best efforts to require that all other Persons benefitted by the improvements shall reimburse (through fee districts, agreements, conditions of approval, or otherwise) LANDOWNER for such Person’s proportionate share of such costs as determined in accordance with the ASI Finance Plan, or by CITY. For purposes of this Agreement, the term “in excess of or beyond those required for development of the Property” shall mean requirements which exceed LANDOWNER’s fair proportionate share, as determined in accordance with the provisions of the ASI Finance Plan and any associated documents or studies.

Such reimbursement shall be subject to the limitations specified in the preceding paragraph (including those provisions relating to consideration by CITY of exceptions to its policies), relating to CITY policy and Reimbursable Infrastructure Costs. Reimbursement shall be limited to that amount which exceeds LANDOWNER’s appropriate share of the cost, determined in accordance with principles established in the ASI Finance Plan, and any associated documents or studies.

- 18 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ (3) Reimbursement of Planning, Engineering and Staff Costs. In accordance with the provisions of the ASI Finance Plan, and as soon as feasible following City Council adoption of the said Plan, CITY shall enact a fee ordinance which imposes a fee upon ASI Finance Plan Area landowners, including LANDOWNER, to pay the planning, engineering, staff and related costs (including but not limited to CITY staff and related costs), as specified in the ASI Finance Plan, and which relate to development of the ASI Finance Plan Area, the general form of the Development Agreement, and all related documents. The fee shall be spread across lands within the ASI Finance Plan Area in the same fashion as the public facilities fees. Credits shall be given to those landowners who have paid some or all of their share of the said costs, for the amounts so paid. The fee shall be payable prior to CITY’s acceptance of an application for the first discretionary entitlement for the land as to which an application has been filed with CITY.

9. LANDOWNER Obligations.

A. Transfer of Land to CITY. As set forth elsewhere in this Agreement, LANDOWNER has agreed to transfer lands needed for Infrastructure or public facilities to CITY, or to such other public agency as is appropriate. Set forth in Exhibit H, attached hereto and incorporated herein by this reference, is a map depicting the currently contemplated approximate location and amount of land which LANDOWNER will be required to transfer to CITY, together with a categorical listing of the types of Infrastructure and public facilities which are covered by the terms of this subsection. LANDOWNER shall transfer the said required lands to CITY, utilizing the Irrevocable Offer of Dedication form set forth in Exhibit G, attached hereto and incorporated herein by this reference, at such time as is:

(1) required pursuant to a condition or term of any entitlement for use or development of the Property; or

(2) requested by CITY, where LANDOWNER has not applied for an entitlement for use or development of the Property, but the land is needed, in CITY’s sole discretion, for purposes of construction of Infrastructure or public facilities.

In the event that, at the time of the required transfer to CITY, the location of, or the quantity of land required for the Infrastructure or public facilities has changed from that depicted on Exhibit H, to such a significant degree or extent that the location or quantity is inconsistent with the ASI Finance Plan, the parties shall meet and negotiate, and in good faith endeavor to reach agreement on any amendments to this Agreement needed to allow development of the Property in a reasonable manner, taking into account the changes in Infrastructure and public facilities. If agreement is reached between the parties, the procedures specified herein and in the Procedural Ordinance shall apply to

- 19 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ amendments to this Agreement. If agreement is not reached, either party shall have the right to terminate this Agreement by providing the other party sixty (60) days notice.

B. Development Timing. LANDOWNER shall have no obligation to initiate or commence development of any particular phase of the Property within any period of time.

C. Transportation Management Association. Notwithstanding anything herein to the contrary, LANDOWNER shall form a transportation management association, or join an existing association, that encompasses all of the Property and imposes an annual fee assessment to fund the association’s operations and services. Formation of the association and the initiation of proceedings to establish a community facilities district or similar benefit assessment district to fund the association operations and services shall occur prior to approval of the first final map or issuance of the first building permit, and the protest waiver set out in Exhibit F shall apply to the creation of that district. The transportation management association shall be charged with the obligation to implement transportation system management measures to achieve a reduction in vehicular trips by employees and residents within the Project. The transportation management association articles of incorporation, bylaws, fee assessment, annual budget and transportation system management measures shall be subject to CITY approval. The transportation system management measures funded by the association may include paying for a portion of the net operating costs for the light rail system and other transit services provided by the Sacramento Regional Transit District that serve the Property.

10. Litigation/Indemnification.

A. Challenge to Agreement or Entitlements.

(1) In the event of any action instituted by a third party challenging the validity of any portion of this Agreement, including but not limited to, the proceedings taken for its approval (including the requirements of the California Environmental Quality Act – “CEQA”) or any other act undertaken by the parties hereto in furtherance of this Agreement or its terms, or any action instituted by a third party challenging the validity of any of the entitlements specified herein (including CEQA challenges), the parties agree to cooperate in the defense of the action. In all such litigation brought to contest the validity of this Agreement or such entitlements, the following shall apply:

(a) City may, in its sole discretion, either defend such litigation or tender its defense to LANDOWNER.

(b) In the event that CITY determines to defend the action itself, LANDOWNER shall be entitled, subject to court approval, to join in or intervene in the action

- 20 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ on its own behalf, or to advocate in favor of validity of this Agreement or any challenged entitlement. In such a case, each party shall bear its own attorney fees and costs.

(c) In the event that CITY determines to tender the defense of the action to LANDOWNER, LANDOWNER shall defend the action on its behalf and on behalf of CITY, and shall bear all attorney fees and costs associated with such defense from and after the date of the tender. Provided, however, that CITY may at any time after the tender elect to assume representation of itself; in that event, from and after the date CITY gives notice of its election to do so, CITY shall be responsible for its own attorney fees and costs incurred thereafter.

(2) If, in such litigation, a final judgment or other final order is issued by the court which has the effect of invalidating or rendering ineffective, in whole or in part, any provision of this Agreement or the Agreement itself, or any entitlement issued during the term of this Agreement and pursuant to its terms, the following shall apply:
(a) if the judgment or order includes a provision for attorney fees and/or costs of the successful party or parties, LANDOWNER shall pay the entire cost thereof, without right of offset, contribution or indemnity from CITY, irrespective of anything to the contrary in the judgment or order.

(b) CITY and LANDOWNER shall meet and endeavor, in good faith, to attempt to reach agreement on any amendments needed to allow development of the Property to proceed in a reasonable manner, taking into account the terms and conditions of the court’s judgment or order. If agreement is reached, the procedures for amending this Agreement as specified herein, and in the Procedural Ordinance, shall apply. If agreement is not reached, either party shall have the right to terminate this Agreement by giving the other party sixty days’ notice of termination.

(c) In the event that amendment is not required, and the court’s judgment or order requires CITY to engage in other or further proceedings, CITY agrees to comply with the terms of the judgment or order expeditiously.

B. Indemnification. LANDOWNER agrees to defend and indemnify CITY, its elective and appointive boards, commissions, officers, agents and employees against any liability for damage or claims for damage for personal injury, including death, or property damage, arising out of or relating in any way to actions or activities to develop the Property,

- 21 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ undertaken by LANDOWNER or LANDOWNER’s contractors, subcontractors, agents or employees.

11. Effect of Subsequent Laws.

A. Laws of Other Agencies.

(1) If any public agency, other than CITY, adopts any new law, regulation, ordinance or imposes any new condition (herein referred to collectively as “the New Law”) after the date of this Agreement, which prevents or precludes either the CITY or LANDOWNER, or both, from complying with one or more provisions of this Agreement, then immediately following the enactment of the New Law the parties shall meet and confer in good faith to determine whether the New Law applies to the Property, and whether suitable amendments to this Agreement can be made, in order to maintain LANDOWNER’s right to develop the Property in a reasonable manner pursuant to Exhibit B.

(2) In the event that the parties, after having engaged in good faith negotiations, are unable to agree on such amendments, the parties shall consider whether suspension of the term of this Agreement is appropriate, and if so, what the terms and conditions of any such suspension should be. In the event that the parties, after having engaged in good faith negotiations are unable to agree on the suspension issues, either party shall have the right to terminate this Agreement by giving the other party sixty (60) days’ written notice of termination.

(3) LANDOWNER or CITY shall have the right to institute litigation relating to the New Law, and raise any issues relating to its validity. If such litigation is filed, this Agreement shall remain in full force and effect until final judgment is issued.

Provided, however, that if any action that CITY would take in furtherance of this Agreement would be rendered invalid, facially or otherwise, by the New Law, CITY shall not be required to undertake such action until the litigation is resolved, or the New Law is otherwise determined invalid, inapplicable, or is repealed. In the event that such judgment invalidates the New Law, or determines that it does not affect the validity of this Agreement, this Agreement shall remain in full force and effect, and its term shall be extended by the amount of time between the effective date of the New Law, and the effective date of the judgment. In the event that such judgment determines that the validity of this Agreement is, directly or indirectly affected by the New Law, the provisions of subsections 11.A(1) and 11.A(2) above shall apply.

- 22 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ B. Laws Passed by CITY. Subject to the provisions of section 5 of this Agreement, neither the CITY nor any CITY Agency shall enact any initiative, ordinance, policy, resolution, general plan amendment or other measure that relates to the density or intensity of development on the Property, or the rate, timing or sequencing of the development or the construction on the Property on all or any part thereof, or that is otherwise in conflict, either directly or indirectly, with this Agreement.

12. Enforced Delay; Extension of Times of Performance. In addition to other specific provisions of this Agreement, performance by either party hereunder shall not be deemed in default where delay or inability to perform is due to war, insurrection, strikes, walkouts, riots, floods, earthquakes, fires, casualties, acts of God, enactment of conflicting state or federal laws or regulations, new or supplementary environmental laws or regulations, litigation instituted by third parties challenging the validity of this Agreement or any of the vested entitlements described in section 5 of this Agreement. Upon request of either party to the other, a written extension of time for such cause shall be granted for the period of the enforced delay, or longer as may be mutually agreed upon.

13. Legal Actions; Applicable Law; Attorney Fees.

A. Legal Actions. In addition to any other rights or remedies, either party may institute legal action to cure, correct, or remedy any default by any other party to this Agreement, to enforce any covenant or agreement herein, or to enjoin any threatened or attempted violation hereunder. Notwithstanding any other provision of law, or of this Agreement, in no event shall LANDOWNER or CITY, its officers, agents or employees be liable in damages for any breach, default or violation of this Agreement, it being specifically understood and agreed that the parties’ sole legal remedy for a breach, default or violation of this Agreement shall be a legal action in mandamus, specific performance or other injunctive or declaratory relief to enforce the provisions of this Agreement.

B. Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. LANDOWNER agrees and acknowledges that CITY has approved and entered into this Agreement in the sole exercise of its legislative discretion and that the standard of review of the validity and meaning of this Agreement shall be that accorded legislative acts of CITY.

C. Attorney Fees. In any arbitration, quasi-judicial, administrative or judicial proceeding (including appeals), brought by either party hereto to enforce or interpret any covenant or any of such party’s rights or remedies under this Agreement, including any action for declaratory or equitable relief, the prevailing party shall be entitled to reasonable attorneys’ fees and all costs, expenses and disbursements in connection with such action, including the costs of reasonable investigation, preparation and professional or expert

- 23 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ consultation, which sums may be included in any judgment or decree entered in such action in favor of the prevailing party. For purposes of this section, and any other portion of this Agreement relating to attorney fees, reasonable attorneys fees of the City Attorney’s Office shall be based on comparable fees of private attorneys practicing in Sacramento County.

14. Amendment of Agreement. This Agreement may be amended from time to time only by the mutual written consent of the parties, in accordance with the provisions of Government Code sections 65867 and 65868. In addition, all of the provisions of the Procedural Ordinance relating to the need for amendment, and the manner thereof, shall apply. Upon request of a party, this Agreement shall be amended to include the terms and conditions of any discretionary entitlement granted with respect to the Property after the Effective Date.

15. CITY’s Good Faith in Processing. Subject to the provisions of section 5B hereof, and LANDOWNER’s compliance with each and every term and condition of this Agreement and all of its exhibits, CITY agrees that it will accept in good faith for processing, review, and action, all complete applications for master parcel maps, zoning, planned unit development designation, planned unit development guidelines, schematic plans, special permits, building permits, parcel maps, subdivision maps, or other entitlements for use of the Property in accordance with the General Plan, the ASI Finance Plan and this Agreement.

CITY shall inform the LANDOWNER, upon request, of the necessary submission requirements for each application for a permit or other entitlement for use in advance, and shall review said application and shall schedule the application for expeditious review by the appropriate authority.

16. Default, Remedies, Termination.

A. General Provisions. Subject to any extensions of time by mutual consent of the parties, and subject to the cure provisions set forth herein, any failure or unreasonable delay by either party to perform any material term or provision of this Agreement shall constitute a default.

(1) LANDOWNER Default. In addition to any other remedy specified herein, in the event that notice of default has been given in accordance with this section, wherein a default by LANDOWNER is alleged, CITY shall not be obligated to issue any building permit, or grant any entitlement as to which an application has been filed.

(2) CITY Default. In addition to any other remedy specified herein, in the event that notice of default has been given in accordance with this section, wherein a default by CITY is alleged, any resulting delays in LANDOWNER’s performance caused by

- 24 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ CITY’s default shall not constitute a LANDOWNER default, or be grounds for termination or cancellation of this Agreement.

(3) Successors in Interest. Where the Property, following the Effective Date, has been lawfully conveyed in whole or in part to one or more successors in interest, in such a manner as to invoke the provisions of section 4 of this Agreement, and one or more of such successors in interest is in default with respect to the portion of the Property owned by it, neither LANDOWNER nor any other non-defaulting successor in interest shall be liable for the default, if the provisions of section 4 have been complied with, and in accordance with the terms and conditions of that section.

B. Cure of Default. In the event of an alleged default or breach of any terms or conditions of this Agreement, the party alleging such default or breach shall give the other party notice in writing specifying the nature of the alleged default and the manner in which said default may be satisfactorily cured and a reasonable period of time in which to cure, that shall in no event be less than thirty (30) days. During any such period, the party charged shall not be considered in default for purposes of termination or institution of legal proceedings.

C. Remedies After Expiration of Cure Period. After notice and expiration of the thirty (30) day period, if the alleged default has not been cured in the manner set forth in the notice, the other party may at its option:

(1) institute legal proceedings to obtain appropriate judicial relief, including but not limited to mandamus, specific performance, injunctive relief, or termination of this Agreement; or

(2) give the other party notice of intent to terminate this Agreement pursuant to Government Code section 65868 and the Procedural Ordinance. In the event that such notice is given, CITY shall schedule the matter for public hearing before the City Council to review the matter and make specific written findings regarding the alleged default. Where LANDOWNER is the party alleged to be in default, LANDOWNER shall be afforded a reasonable opportunity to respond to all allegations of default at such public hearing. CITY shall provide LANDOWNER at least thirty (30) days prior written notice of such public hearing, as well as provide LANDOWNER copies of all CITY staff reports prepared in connection therewith at least five (5) days prior to the hearing.

17. Annual Review.

- 25 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ A. General Provisions. In accordance with Government Code section 65865.1, and the Procedural Ordinance, CITY shall, at least every twelve (12) months during the Term of this Agreement, review the extent of good faith compliance by LANDOWNER with the terms of this Agreement. Failure of CITY to conduct an annual review shall not constitute a waiver by CITY or LANDOWNER of the right to conduct future annual review or to otherwise enforce the provisions of this Agreement, nor shall a party have or assert any defense to such enforcement by reason of any such failure. The failure of CITY to undertake such review, shall not, in itself, invalidate the terms of this Agreement or excuse any party hereto from performing its obligations under this Agreement.

B. Scope of Review. The annual review shall be limited in scope to compliance with the terms and conditions of this Agreement.

C. Proceedings. The procedures specified in the Procedural Ordinance for conduct of the annual review by the City Manager, and by the City Council, shall apply to each annual review of this Agreement. At least ten (10) days prior to the commencement of any annual review, CITY shall deliver to LANDOWNER a copy of any public staff reports and other documents to be used or relied upon in conducting the review. LANDOWNER shall be permitted an opportunity to respond to CITY’s evaluation of LANDOWNER’s performance by written and oral testimony at the public hearing to be held before the City Council, if LANDOWNER so elects.

At the conclusion of the annual review, CITY shall make written findings and determinations on the basis of substantial evidence, as to whether or not LANDOWNER or its successors have complied in good faith with the terms and conditions of this Agreement.

D. Failure of Compliance. Any determination of failure of compliance shall be subject to the notice requirements and cure periods set forth in section 16 of this Agreement. If termination is proposed, it shall apply solely with respect to that portion of the Property (if less than all) affected by the failure to show good faith compliance. If modification of the Development Agreement is proposed, the modification shall pertain solely to the provisions hereof as applicable to that portion of the Property (if less than all) affected by the condition that has prompted the proposed modification.

18. Termination upon Completion of Development.

A. General Provisions. This Agreement shall terminate as to each parcel of property contained within the Property when that parcel of property has been fully developed and all of LANDOWNER’S obligations in connection therewith are satisfied, as reasonably determined by CITY. CITY shall, upon written request made by LANDOWNER to CITY’s

- 26 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ Department of Planning and Development, determine if the Agreement has terminated, with respect to any parcel, and shall not unreasonably withhold termination as to that parcel if LANDOWNER’S obligations therewith are satisfied. CITY shall be entitled to receive payment of a fee commensurate with the cost of processing the request and making such a determination, including but not limited to CITY’s administrative and legal expenses. Upon termination of this Agreement, CITY shall upon LANDOWNER’s request record a notice of such termination in a form satisfactory to the City Attorney that the Agreement has been terminated. The aforesaid notice may specify, and LANDOWNER agrees, that termination shall not affect in any manner any continuing obligation to pay any item specified by this Agreement, by the ASI Financing Plan or any of the measures implementing said plan, and shall have the effect as set forth in section 18C.

B. Effect of Termination On Landowner Obligations. Termination of this Agreement as to the Property or any portion thereof shall not affect any of the LANDOWNER’s obligations to comply with CITY’s General Plan, and all entitlements issued for the Property, nor shall it affect any other covenants of this Agreement specified in this Agreement to continue after the termination of this Agreement, including but not limited to those specified in sections 6 and 10 and subsection 13C.

19. No Joint Venture, Partnership, or Other Relationship. Nothing contained in this Agreement or in any other document executed in connection with this Agreement shall be construed as creating a joint venture or partnership between CITY and LANDOWNER. No relationship exists as between LANDOWNER and CITY other than that of a governmental entity regulating the development of private property, and the owners of such private property.

20. Notices. All notices required or provided for under this Agreement shall be in writing and delivered in person or sent by certified mail, postage prepaid, return receipt requested, to the principal offices of the CITY and LANDOWNER or LANDOWNER’s assigns and successors, and to Lender, if applicable. Notice shall be effective on the date delivered in person, or the date when received if such notice was mailed to the address of the other party as indicated below:

Notice to the CITY: City of Sacramento
915 I Street
Sacramento, California, 95814
ATTN: City Manager

- 27 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ Notice to the LANDOWNER: NP MAP LAND HOLDING COMPANY LLC Attn: Nathaniel Hagedorn
3315 N OAK TRAFFICWAY
KANSAS CITY, MO 64116

with copies to:

NorthPoint Development
Attn: Austin Dowling
3316 No Oak Trafficway
Kansas City, MO 64116

Notice to Lender: _____________________________
_____________________________
_____________________________
_____________________________

Any party may change the address to which notices are to be mailed by giving written notice of such changed address to each other party in the manner provided herein.

21. Severability. If any provision of this Agreement is held invalid, void or unenforceable but the remainder of the Agreement can be enforced without failure of material consideration to any party, then this Agreement shall not be affected and it shall remain in full force and effect, unless amended or modified by mutual consent of the parties, utilizing the procedures specified herein and the Procedural Ordinance. Provided, however, that if such holding affects a material provision of this Agreement, LANDOWNER shall have the right in its sole discretion to terminate this Agreement upon providing written notice of such termination to CITY; provided further, however, that in the event LANDOWNER so elects to terminate, such election shall not affect in any manner the terms and conditions of any entitlement theretofore granted by CITY with respect to the Property, or any portion thereof.

22. Recording. The City Clerk shall cause a copy of this Agreement to be recorded with the Sacramento County Recorder no later than ten (10) days following execution of this Agreement by CITY, which execution will take place no sooner than the effective date of the ordinance approving this Agreement.

23. Reimbursement to CITY. LANDOWNER agrees to reimburse the CITY for reasonable and actual expenses incurred by CITY that relate directly to CITY’S review, consideration and execution of this Agreement. Such expenses include but are not limited to recording fees, publishing fees and any special meeting costs, staff time (including review by the City Attorney), and notice costs. Such expenses shall be paid by LANDOWNER within thirty (30) days of receipt of a detailed written statement of such expenses.

- 28 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

24. Provisions Relating to Lenders.

A. Lender Rights and Obligations.

(1) Prior to Lender Possession. No Lender shall have any obligation or duty under this Agreement to construct or complete the construction of improvements, or to guarantee such construction or completion, and shall not be obligated to pay any fees or charges which are liabilities of LANDOWNER or LANDOWNER’s successors in interest, but shall otherwise be bound by all of the terms and conditions of this Agreement, which pertains to the Property or such portion thereof in which it holds an interest. Nothing in this section shall be construed to grant to a Lender rights beyond those of LANDOWNER hereunder, or to limit any remedy CITY has hereunder in the event of default by LANDOWNER, including but not limited to termination and/or refusal to grant entitlements with respect to the Property.

(2) Lender in Possession. A Lender who comes into possession of the Property, or any portion thereof, pursuant to foreclosure of a mortgage or deed of trust, or a deed in lieu of foreclosure, shall not be obligated to pay any fees or charges which are obligations of LANDOWNER, and which remain unpaid as of the date such Lender takes possession of the Property or portion thereof. Provided, however, that a Lender shall not be eligible to apply for or receive entitlements with respect to the Property, or otherwise be entitled to develop the Property or devote the Property to any uses or to construct any improvements thereon other than the development contemplated or authorized by this Agreement and subject to all of the terms and conditions hereof, including payment of all fees (delinquent, current and accruing in the future) and charges, and assumption of all obligations of LANDOWNER hereunder; provided, further, that no Lender, or successor thereof, shall be entitled to the rights and benefits of the LANDOWNER hereunder or entitled to enforce the provisions of this Agreement against CITY unless and until such Lender or successor thereof qualifies as a recognized assignee under the provisions of section 4 of this Agreement.

B. Notice of LANDOWNER’s Default Hereunder. If CITY receives notice from a Lender requesting a copy of any notice of default given LANDOWNER hereunder and specifying the address for service thereof, then CITY shall deliver to such Lender, concurrently with service thereon to LANDOWNER, any notice given to LANDOWNER with respect to any claim by CITY that LANDOWNER has committed a default, and if CITY makes a determination of non-compliance, CITY shall likewise serve notice of such non-compliance on such Lender concurrently with service thereof on LANDOWNER.

- 29 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ C. Lender’s Right to Cure. Each Lender shall have the right (but not the obligation) during the same period of time available to LANDOWNER to cure or remedy, on behalf of LANDOWNER, the default claimed or the areas of non-compliance set forth in CITY’s notice. Such action shall not entitle a Lender to develop the property or otherwise partake of any benefits of this Agreement unless such Lender shall assume and perform all obligations of LANDOWNER hereunder.

D. Other Notices Given By City. A copy of all notices given by CITY pursuant to the terms of this Agreement shall be sent to Lender at the address provided in section 20 hereof.

25. Estoppel Certificate. Either party may, at any time, and from time to time, deliver written notice to the other party requesting such other party to certify in writing that, to the knowledge of the certifying party, (i) this Development Agreement is in full force and effect and a binding obligation of the parties, (ii) this Development Agreement has not been amended or modified either orally or in writing, or if so amended, identifying the amendments, and (iii) the requesting party is not in default in the performance of its obligations under this Development Agreement, or if in default, describing therein the nature and amount of any such defaults. A party receiving a request hereunder shall execute and return such estoppel certificate, or give a written detailed response explaining why it will not do so, within thirty (30) days following the receipt of each such request. Each party acknowledges that such an estoppel certificate may be relied upon by third parties acting in good faith. A certificate provided by CITY establishing the status of this Agreement with respect to the Property or any portion thereof shall be in recordable form and may be recorded at the expense of the recording party.

26. Construction. All parties have had the opportunity to be represented by legal counsel of their own choice in the preparation of this Development Agreement and no presumption or rule that “an ambiguity shall be construed against a drafting party” shall apply to the interpretation or enforcement of any provision hereof. Captions on sections and subsections are provided for convenience only and shall not be deemed to limit, amend or affect the meaning of the provision to which they pertain.

27. Counterparts. This Agreement may be executed in any number of counterparts and shall be deemed duly executed when each of the parties has executed such a counterpart.

28. Time. Time is of the essence of each and every provision hereof.

29. Limitation of Actions. No court action shall be filed by a party to this Agreement on the ground of default or breach of its terms unless such action is filed within one hundred eighty (180) days from the date of discovery by the aggrieved party of the facts underlying the claim of breach or default.

- 30 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

30. No Third Parties Benefitted. No Person who is not a qualified successor or assign of a party hereto pursuant to section 4 of this Agreement, or who has not become a party by duly adopted amendment hereof may claim the benefit of any provision of this Agreement.

31. Effect of Agreement upon Title to Property. In accordance with the provisions of Government Code section 65868.5, from and after the time of recordation of this Agreement, the Agreement shall impart such notice thereof to all persons as is afforded by the recording laws of the State of California. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the parties to this Agreement.

32. Covenant of Good Faith. CITY and LANDOWNER agree that each of them shall at all times act in good faith in order to carry out the terms of this Agreement.

33. Exhibits: The following are the exhibits to this Agreement:

A Legal Description of the Property
B Landowner’s Development Plan
C Special Conditions
D Assignment and Assumption Agreement
E ASI Finance Plan
F Protest Waiver Form
G Irrevocable Offer of Dedication Form
H Map and Categorical Listing of Land and Infrastructure

34. Entire Agreement. This Agreement, together with its Exhibits A to H, inclusive, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement.

This Agreement is specifically intended by the parties hereto to supersede all prior development agreements, if any, for the Property which may exist between CITY and LANDOWNER. The provisions of subsection 10B of this Agreement, relating to indemnification and defense of CITY, its officers, employees and agents, shall be applicable to any claim whatsoever against CITY, its officers, employees and agents, arising out of or in any way relating to any prior development agreement relating to the Property.

35. City Attorney Costs. Landowner shall pay to the City of Sacramento the sum of $1,500.00 as and for reimbursement of the costs of the City Attorney in preparation and processing of this Agreement.

››› Signature Page Follows ‹‹‹

- 31 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ IN WITNESS WHEREOF, the CITY and LANDOWNER have executed this Development Agreement as of the date first set forth above.

CITY OF SACRAMENTO

By: ________________________________
Kevin McCarty
Mayor of City of Sacramento
Date: _____________, 2025

NP MAP LAND HOLDING COMPANY LLC
By: NPD Management, LLC, its Manager
________________________________
Signature
Nathaniel Hagedorn
Print Name
Manager
Title
Date: _____________, 2025

Attest
Sacramento City Clerk

By: ________________________________
Signature

Approved as to Form
Sacramento City Attorney

By: ________________________________
Signature

Approved as to Form
[Name]

By: ________________________________
[Name]
Attorneys for [Name]

(ATTACH APPROPRIATE ACKNOWLEDGMENT)

Exhibits

EXECUTION PAGE FOR LENDER

[Name + nature of entity] (herein “LENDER”) owns an equitable interest in the Property described in Exhibit “A” of this Agreement as the beneficiary of that certain deed of trust and assignment of rents dated [date] and recorded on [date], as Instrument [#], in Book [#], Page [#], Official Records , Sacramento County, California.

LENDER hereby executes this Agreement and agrees to be bound by the terms and condition hereof, subject to the limitations set forth in section 24 hereof.

LENDER requests that it be provided with copies of all notices mailed to LANDOWNER pursuant to the terms of this Agreement and that said copies be addressed as follows:
________________________
________________________
________________________
Attn: ___________________

Dated: ____________, 20[ ]

LENDER: ________________________________
Signature

By: _____________________________

Its: ____________________________

(ATTACH APPROPRIATE ACKNOWLEDGMENT)

Exhibits

EXHIBIT A

DESCRIPTION OF LANDOWNER’S PROPERTY

SEE ATTACHED

NOTE: UPON RECORDATION OF FINAL MASTER PARCEL MAP, THIS EXHIBIT A WILL BE REPLACED BY THE SAID MAP, WITHOUT NEED FOR AMENDMENT OF THIS AGREEMENT.

Exhibits
Exhibit A: Description of Landowner's Property

Exhibits
Exhibit A (continued)

Exhibits

EXHIBIT B

LANDOWNER’S DEVELOPMENT PLAN

SEE ATTACHED

Exhibits

EXHIBIT C

SPECIAL CONDITIONS

I. PURPOSE AND INTENT

The definitions applicable to the body of the Agreement shall apply to this Exhibit C.

In order to achieve its objectives, and in order to obtain from each LANDOWNER and developer, all required contributions, fees, land transfers, agreements, and other mechanisms required to implement its terms, the NNCP provides that all rezoning and development shall occur through the planned unit development process. Development agreements should be entered into with LANDOWNERS whenever feasible under the circumstances.

Under no circumstances can development of the Property proceed without satisfaction of the conditions specified in this exhibit. These Special Conditions shall constitute binding and legally enforceable obligations of LANDOWNER and its successors and assigns, and binding and legally enforceable requirements and conditions for the development of the Property, in addition to other obligations, requirements and conditions imposed during the rezoning, special permit, subdivision map and other land use entitlement processes.

II. LANDOWNERS’ OBLIGATIONS

A. Mitigation Monitoring; Habitat Conservation Plan.

1. Mitigation Monitoring. When required in order to obtain entitlements, LANDOWNER shall execute a mitigation monitoring agreement, and such other agreements as may be necessary in CITY’s judgment in order to implement any mitigation measure relating to the Project and any mitigation monitoring plans applicable to the Property, and shall fully cooperate with CITY in implementing any mitigation monitoring plan adopted as part of the approval process for development of the Property.

2. Habitat Conservation Plan.

a. Consistent with the Habitat Conservation Plan adopted by CITY, where applicable, LANDOWNER shall be obligated to undertake and exercise one of the following options:

(i) participate in that Plan by payment of the fees applicable to LANDOWNER and/or the Property or provide required proportionate land dedications, at the time specified in the Plan for payment of fees or dedication of required proportionate lands; or

Exhibits
(ii) obtain and present to CITY a duly issued, executed and effective incidental take permit issued by federal and state agencies charged with implementation of the provisions of federal and state Endangered Species Acts, which would allow development of the Property; or

(iii) obtain and present to CITY a duly issued, executed, and effective form of document from said federal and state agencies that development of the Property may proceed without the need for an incidental take permit; or

(iv) participate in such other plan or program which has been approved by said federal and state agencies; or

(v) take any other action required by CITY in its sole discretion, relating to satisfaction of all applicable laws, including but not limited to CEQA and the federal and state Endangered Species Acts, where none of the provisions of subsections (i), (ii), (iii) or (iv) are applicable.

b. The Natomas Basin Habitat Conservation Plan Fee is payable by Landowner at the time of and as a condition of issuance of a grading or building permit. This obligation may also be met by land dedication and payment of a reduced fee, as established under the NBHCP. The current fee without land dedication is, at the time of execution of this Agreement, the sum of $47,031 per acre of the Property subject to the grading or building permit. In addition to the payment of that sum, Landowner shall be subject to the provisions of any “catch-up fee” ordinance, resolution, rule or regulation in effect at the time of issuance of the grading or building permit. The requirement specified in this subsection 2b shall be included in each entitlement issued with respect to the Property. Landowner understands and agrees that the provisions of Government Code sections 66000 through 66025, as those sections are amended, renumbered or reconstituted, shall not apply to the fees covered by this subsection 2b.

B. Agreements with Other Agencies. As required by CITY, LANDOWNER shall enter into agreements with other affected agencies, including but not limited to:

1. Appropriate sanitation districts, including but not limited to SacSewer, for provision of facilities, payment of fees and charges, and payment (if applicable) of any proportionate share of penalties imposed by the Environmental Protection Agency; and

2. Reclamation District 1000, if an agreement is in fact required.

Exhibits

C. Airport South Industrial North Natomas (ASINN) Fee In addition to the Airport South Industrial (ASI) Fee, which funds backbone infrastructure, public land acquisition, and specific plan entitlement costs, the ASI Finance Plan will also include an “ASINN Fee.” This fee will contribute to various regional and city-wide funds, as detailed below. Per-acre contributions will be included in the adopted ASI Finance Plan, which will specify each component of the ASINN Fee. The fee components listed below correspond to specific fees in the North Natomas Finance Plan and will be adjusted on July 1 of each calendar year by the percentage change in the average of the Engineering-News Record’s San Francisco and 20-Cities Construction Cost Indices (CCIs) for the 12-month period ending in March of the current year unless this percentage change is negative, in which case the fees will be kept at the same level.

1. Fee Components

a. ASINN Transit Fee. The ASINN Transit Fee, set at $1,571 per net acre for the year ending June 30, 2026, shall contribute to transit facilities and programs in a manner determined at the discretion of the City of Sacramento.

b. ASINN Fire Facilities Fee. The ASSINN Fire Facilities Fee, set at $5,666 per net acre for the year ending June 30, 2026, shall contribute toward the fire facilities and equipment in a manner determined at the discretion of the City of Sacramento.

D. Transportation Infrastructure Requirements and Phasing

1. A Local Transportation Analysis dated January 30, 2024 and a Fair Share Memorandum dated June 19, 2024 was prepared by DKS Associates. The project’s traffic improvements phasing and fair share analysis memorandum was based on a conceptual buildout scenario that included 3-phases of buildout as identified below:

a. Phase 1
(i) Highway Commercial Parcels 6A, 6B, and 6C (west of Metro Air Parkway)
(ii) Industrial Parcel 1 (west of Metro Air Parkway, north of Airport South Industrial Drive)
b. Phase 2
(i) Highway Commercial Parcels 7A, 7B, and 7C (east of Metro Air Parkway) (ii) Industrial Parcel 2 (west of Metro Air Parkway, south of Airport South Industrial Drive)
c. Phase 3
(i) Remainder of development

Exhibits

2. Phase 1 Improvements – Prior to issuance of any building permits within Phase 1, the following improvements shall be designed and constructed by the Landowner:
a. Onsite Transportation System
(i) The landowner shall construct the extension of Metro Air Parkway from I-5 interchange to Airport South Industrial Drive to the satisfaction of Public Works
(ii) Prior to Improvement Plan submittal to the City, the landowner shall provide a Traffic Signal Design Concept Report (DCR) at the intersection of Metro Air Parkway and Highway Commercial Driveways for review and approval by the City of Sacramento. The DCR shall specifically address any needed signal and intersection phasing and transitions for Metro Air Parkway and other improvements to the satisfaction of the Department of Public Works.
(iii) Abandon South Bayou Way from Power Line Road to Metro Air Parkway.
(iv) Construct Airport South Industrial Drive from Power Line Road to Metro Air Parkway to the satisfaction of Public Works.
(v) Realign South Bayou Way east of Metro Air Parkway as needed to intersect with Metro Air Parkway as the fourth leg of the newly constructed signalized intersection.
b. Offsite Improvements
(i) Off-site Improvements shall include construction of a SB left turn lane on Power Line Road at the intersection of Airport South Industrial Drive.

3. Future Phased Improvements -Prior to issuance of any building permits within Phase 2 or 3, the Landowner shall:

a. Provide an executed agreement with Landowner, City of Sacramento, County of Sacramento, and Caltrans that outlines funding responsibilities and construction commitments for the final stage configuration of the Metro Air Parkway / I-5 Interchange, including improvements directly attributable to the ASI Project per the traffic analysis prepared by DKS Associates dated January 30, 2024.
b. Demonstrate that traffic safety and operational conditions at the Metro Air Parkway/I-5 Interchange remain acceptable, based on ongoing monitoring of queuing lengths and intersection Level of Service in accordance with Caltrans requirements.
c. Demonstrate that the required on-site transportation improvements are designed and constructed to the satisfaction of Public Works, and in accordance with the City of Sacramento Design and Procedures Manual.

Exhibits

4. If the Landowner cannot satisfy the City with all of the said requirements within Item 3 of these Special Conditions, the Landowner shall provide the following prior to issuance of any building permits within Phase 2 or 3:

a. The Landowner shall coordinate with the City, County and Caltrans to modify the ultimate geometric plans for the Metro Air Parkway and I-5 interchange to add the additional westbound left turn at the northbound offramp of the interchange. This shall include updates to all interchange documentation and construction of the additional westbound left turn lane at the northbound offramp of the interchange depending on the timing and construction of the ultimate Metro Air Parkway interchange.
b. Contribute fair share funding per intersection towards signal retiming of the intersections listed below:
(i) Metro Air Parkway and I-5 northbound ramps
(ii) Metro Air Parkway and I-5 southbound ramps
(iii) Del Paso Road and El Centro Road
(iv) Del Paso Road and East Commerce Way
(v) West Elkhorn Blvd and Metro Air Parkway
c. Extend the southbound right turn pocket at Metro Air Parkway and I-5 Southbound Ramps. (interim design).
d. Construct a northbound left turn lane at the intersection of Metro Air Parkway and I-5 Southbound Ramps. (interim design).
e. Extend the northbound left turn lane at Metro Air Parkway and I-5 Northbound ramps intersection. (interim design).

5. In the event that future overall site development is proposed in a different phasing order than the Landowner has proposed above, a new traffic improvements phasing and fair share analysis shall be prepared at the landowner’s expense to determine needed improvements for subsequent phases to the satisfaction of the City of Sacramento.

6. Prior to the issuance of any building permits in Phase 2 or 3, the Landowner may request that the City initiate and prepare a new focused Phasing and Fair Share Local Transportation Analysis, at Landowner’s expense utilizing the City’s On-Call traffic consultants, to examine the timing of the design and construction of the ultimate geometry of interchange construction, taking into consideration any new development and changes from the original traffic baseline assumptions. As an alternative, the Landowner may retain a Professional Traffic Engineering Consultant to prepare the focused Phasing and Fair Share Local Transportation Analysis for review by the City Public Works Department in consultation with the City’s On-Call traffic consultants at the Landowners’ expense. The Landowner is advised to start early and consider the timelines needed to complete this task. Any recommended improvements as a result of such analysis shall be required from the Landowner and reflected in an Amendment to this Development Agreement.

Exhibits

7. Once the project location is annexed into the city limits, the City of Sacramento will include the proposed development and required citywide-serving transportation improvements in the Airport South Industrial (ASI) project in a future update to the Transportation Development Impact Fee (TDIF) Nexus Study for the TDIF program.

Until a new TDIF Nexus Study is completed and approved, the City will reserve any TDIF fees collected from development in the ASI and will not allocate the fees to any improvement identified in the existing TDIF program. When an updated TDIF Nexus Study is adopted, the City will provide reimbursements and/or credits for transportation development impact fees in the ASI development as identified in an updated TDIF Nexus Study.

III. CONDITIONS OF DEVELOPMENT; SPECIAL FINDINGS REQUIRED

A. In addition to other findings and conditions as may be deemed applicable, no special permit, subdivision map or other land use entitlement for the Property shall be approved unless the approving body either: (1) makes the following findings; or (2) expressly waives such findings, in whole or in part, as not applicable to the Property and stating the reasons therefor with such waiver and the reasons therefor appear in the record or document of approval. These findings are:

1. The approval of the proposed project is consistent with the policies, goals, standards and objectives of the NNCP and other relevant factors and circumstances, including but not limited to:

a. The adequacy of the required Infrastructure needed to support the project planned for the Property;

b. The extent of participation required of LANDOWNER under the ASI Finance Plan has been secured;

c. The extent to which LANDOWNER has complied with the provisions of the Policy.

2. The ASI Finance Plan has been adopted by the City Council.

3. All transfers of land, owned by or under the control of LANDOWNER, which are necessary for public purposes, have been transferred to CITY or to the appropriate public agency. For this purpose, a transfer will be deemed to occur upon delivery to CITY of an Irrevocable Offer of Dedication in form and manner approved by the City Department of Public Works and the City Attorney. These dedications include, but are not limited to streets, utilities, drainage facilities and public transit.

Exhibits

5. LANDOWNER has entered into all agreements required pursuant to sections IIA, IIB, and II.C above.

6. Appropriate environmental review of the proposed project has been completed, and any suggested mitigation measures resulting therefrom have been included in the approval of the project to the extent feasible.

B. In the event that any of the special findings required herein cannot be made and are not waived, approval may nevertheless be given to the proposed project if all of the following conditions can be satisfied with respect to each such special finding not made:

1. Practicable and feasible requirements or mitigation measures can be imposed upon the project, the implementation of which would allow such special finding to be made;

2. The applicant has agreed to be bound (through written agreement satisfactory to the City Attorney) by and to implement such requirements or mitigation measures, and has posted such security for compliance therewith as may be required by the City Manager; and

3. It is in the public interest and consistent with the policies, goals, standards and objectives of the Community Plan for the project to be approved with such requirements and mitigation measures.

Exhibits

EXHIBIT D

ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (herein “this Agreement”) is entered into this ____ day of ___________, 20[ ], by and between _________________ (herein “LANDOWNER”) and _________________ (herein “ASSIGNEE”).

RECITALS

A. LANDOWNER has entered into a Development Agreement (herein “the Development Agreement”) dated __________________, with the City of Sacramento, pursuant to which LANDOWNER agreed to develop certain property more particularly described in the Development Agreement (herein “the Property”) in the North Natomas Community Plan Area subject to certain conditions and obligations set forth in the Development Agreement.

B. LANDOWNER has assigned its interests under the Development Agreement to ASSIGNEE under a written agreement dated __________________, as to that portion of the Property identified and incorporated herein by this reference (herein the “Assigned Parcel(s)”).

C. ASSIGNEE desires to assume all of LANDOWNER’s rights and obligations and other terms and conditions under the Development Agreement with respect to the Assigned Parcel(s).

AGREEMENTS

NOW, THEREFORE, LANDOWNER AND ASSIGNEE HEREBY AGREE AS FOLLOWS:

1. ASSIGNEE hereby assumes all of the burdens and obligations of LANDOWNER under the Development Agreement, and agrees to observe and fully perform all of the duties and obligations of LANDOWNER under the Development Agreement, and to be subject to all of the terms and conditions thereof, with respect to the Assigned Parcel(s), it being the express intention of both LANDOWNER and ASSIGNEE that, upon the execution of this Agreement, ASSIGNEE shall become substituted for LANDOWNER as the “LANDOWNER” under the Development Agreement with respect to the Assigned Parcel(s).

2. ASSIGNEE understands and agrees that this Agreement is subject to section 4 of the Development Agreement. Section 4 reads as follows:

Exhibits
obligated to perform all terms and conditions of this Agreement, unless such purchaser, assignee or transferee, to the satisfaction of and in a form acceptable to the City Attorney, executes and delivers to CITY an express agreement to assume all of the obligations and other terms and conditions of this Agreement with respect to the Property or such portion thereof sold, assigned or transferred. The execution of such an assumption agreement shall relieve LANDOWNER of the obligations expressly assumed only if (a) LANDOWNER is not in default under this Agreement at the time of the assignment or transfer; and (b) LANDOWNER has provided CITY with notice of said assignment or transfer in the manner provided hereunder. Any such assumption agreement with respect to LANDOWNER’s obligations under this Agreement shall be deemed to be to the satisfaction of the City Attorney if executed in the form of the Assignment and Assumption Agreement attached hereto as Exhibit “D” and incorporated herein by this reference, or such other form as shall be proposed by LANDOWNER and approved by the City Attorney prior to the effective date of the assignment.

4. At the request of the City, ASSIGNEE agrees to enter into a separate development agreement with respect to the Assigned Parcel(s).

5. All of the covenants, terms and conditions set forth herein shall be binding upon and shall inure to the benefit of the parties hereto and to their respective heirs, successors and assigns.

6. ASSIGNEE agrees that it has read, and has sought and received all required legal and other expert consultation with regard to the Development Agreement, and fully understands all of its terms and conditions. ASSIGNEE further agrees that: (i) LANDOWNER has furnished ASSIGNEE with a copy of the North Natomas Community Plan, the Comprehensive Drainage Plan, the ASI Finance Plan, the RD-1000 Agreement (where applicable), the Habitat Conservation Plan, and all other documents and materials containing or relating to terms and conditions of development in the NNCP area; (ii) ASSIGNEE has read and understands all of the terms and conditions of said documents and materials; and (iii) with such knowledge and understanding, which includes the nature and extent of the fees, taxes, assessments and other financial mechanisms and obligations inherent in such documents and materials, nevertheless has voluntarily, freely and knowingly assumed and agreed to perform all of obligations and requirements, and be bound by all of the provisions of such documents and materials.

Exhibits

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.

By: ______________________________
“ASSIGNEE”

Exhibits

EXHIBIT E

AIRPORT SOUTH INDUSTRIAL FINANCE PLAN

Exhibits

EXHIBIT F

Protest Waiver Provisions Agreed to by LANDOWNER

LANDOWNER understands and agrees that financing of the Infrastructure, public improvements and facilities and other programs required under the NNCP will be accomplished through a variety of financing mechanisms, including but not limited to a combination of special assessment districts, tax districts (such as Mello-Roos Community Facilities Districts) and developer fees, all of which mechanisms are designed to spread the cost of those items in accordance with benefit and other methodologies. LANDOWNER further understands and agrees that an important component of this Agreement is LANDOWNER’s advance consent to the formation of, or implementation of any such district or imposition of any such fee, and LANDOWNER’s agreement not to protest or contest such formation, implementation or fee imposition.

Accordingly, LANDOWNER agrees for itself, its constituents, successors and assigns that it fully, finally and forever waives and relinquishes any right it may have to protest or contest the formation or implementation of any special assessment or tax district or any similar form of financing mechanism, or any combination thereof, together with any rights it may have to contest the imposition of any developer fee established or imposed pursuant to the ASI Finance Plan. Nothing in this Agreement, however, shall prevent LANDOWNER from presenting CITY any information or opinions regarding any financing mechanism CITY may from time to time consider establishing or imposing, which information or opinions relate to the dollar amount of any fees, assessments, taxes or other charges imposed by CITY pursuant to the ASI Finance Plan, or which information or opinions relate to the question of consistency of the financing mechanism with the ASI Finance Plan. If a financing mechanism is proposed for adoption by CITY, which mechanism both: (i) directly and significantly conflicts with the language and the intent of the ASI Finance Plan, as amended; and (ii) directly and significantly conflicts with the ASI nexus study adopted by the City Council in connection with establishment of development fees applicable to the ASI Finance Plan Area, LANDOWNER shall have the right to protest only the actual amount of the directly and significantly conflicting proposed fee, charge, special tax, or assessment proposed to be levied, charged, assessed or taxed against the Property by virtue of the proposed financing mechanism. Provided, however, that LANDOWNER’s said right to protest, together with any right to object, shall be waived unless LANDOWNER’s protest of objection is made at or before the time of the public hearing wherein the proposed financing mechanism, together with the fee, charge, special tax or assessment is established by the City Council. LANDOWNER’s right to judicial challenge of any such mechanism, and the fees, charges, assessments or special taxes imposed or to be imposed in connection therewith, shall be limited to review of the decision of the City Council establishing the said mechanism and the said fees, charges, assessments or special taxes; LANDOWNER shall not have the right, in connection with any land use entitlement proceeding with respect to the Property, to judicially challenge the financing mechanism or the fees, charges, assessments or special taxes as applied to the Property, and waives any statutory or common law right to pay such fees, charges, assessment or special taxes under protest.

For purposes of this Agreement, “fees, charges, assessments or special taxes” shall include any monetary exaction or payment required to be paid by LANDOWNER by virtue of or relating to development of the Property.

Exhibits
Without limiting the generality of the foregoing, LANDOWNER for itself, its constituents, successors and assignees specifically, as to the Property, agrees to the following which are adopted by the City Council pursuant to the ASI Finance Plan:

(1) Waives, and hereby grants advance consent to the formation and implementation of any and all special assessment districts, tax districts (such as Mello-Roos Community Facilities Districts), fee districts or other financing mechanisms of a similar nature recommended or established by CITY for the purpose of financing Infrastructure, public improvements and facilities. Without limiting the generality of the foregoing, LANDOWNER specifically waives:

(i) the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (division 4 of the Streets and Highways Code, beginning at section 2800), together with associated provisions of the California Constitution;

(ii) the provisions of any other statute designed to provide a protest or contest procedure in connection with formation and implementation of a district or similar financing mechanism; and

(iii) the provisions of any procedure embodied in the Sacramento City Code designed to provide a protest or contest procedure in connection with formation and implementation of a district or similar financing mechanism.

(2) Waives, and hereby grants advance consent to the formation and implementation of any and all special fees, exactions, development fees, assessments, taxes or other charges established by CITY for the purpose of financing Infrastructure, public improvements and facilities. Without limiting the generality of the foregoing, LANDOWNER specifically waives:

(i) to the extent applicable, those statutory and constitutional provisions specified in paragraph (1) above; and
(ii) the provisions of Government Code section 66000 et seq. or any other provision of law providing a procedure for contest or protest of establishment or imposition of special fees, exactions, development fees, assessments, taxes or other charges of a similar nature.

(3) Agrees to:

(i) affirmatively petition CITY, where applicable, for the formation of all special districts and other financing mechanisms that have been or will be in the future selected or recommended by CITY in order to implement the ASI Finance Plan;

(ii) execute an irrevocable proxy or proxies when necessary (such as in the formation of, or imposition of taxes relative to, a Mello-Roos Community Facilities District)

Exhibits
authorizing a representative designated by CITY, who will vote in favor of establishing the specific financing mechanism in question; and

(iii) execute immediately upon presentation any document which is required or convenient for the formation of the district or facilitation of the particular financing mechanism.

LANDOWNER agrees and specifically represents to CITY that it is fully aware of all of its legal rights relative to the waivers, advance consents and other agreements set forth herein, having been fully advised by its own independent attorneys. Having such knowledge and understanding of its rights, LANDOWNER has nevertheless voluntarily entered into this Agreement, of which this Exhibit is a material part. LANDOWNER is aware that CITY is relying on the representations contained in this Exhibit in entering into this Agreement.

Exhibits

EXHIBIT G

IRREVOCABLE OFFER OF DEDICATION FORM

Recorded for the benefit of the
City of Sacramento (exempt from
fees under Gov. Code, § 6103)

When recorded return to–

Development Services Department
Attn: Jerry Lovato
300 Richards Blvd., 3rd Floor
Sacramento, CA 95811

IRREVOCABLE OFFER TO DEDICATE

The undersigned hereby certifies that we are the legal owners of, or are parties having an interest in, the hereinafter-described real property; and the undersigned, for themselves and their heirs, successors, and assigns, do hereby irrevocably offer to dedicate to the City of Sacramento, a municipal corporation, [in fee title] [an easement for public road and public utilities on, under, over, and across] the hereinafter- described real property located in the City of Sacramento, County of Sacramento, State of California, described as follows:

SEE EXHIBIT “A,” LEGAL DESCRIPTION, AND EXHIBIT “B,” PLAT, ATTACHED HERETO AND MADE A PART HEREOF.

Reserving, however, unto the undersigned and their heirs, successors, and assigns any and all present lawful uses of the above-described real property until such time as the City Engineer of the City of Sacramento gives written notice that the above-described real property will be improved for public purposes; and it is also hereby understood and agreed by the undersigned and their heirs, successors, and assigns that any improvements hereinafter placed by them in or upon the above-described real property shall be removed without cost or expense to the City of Sacramento. Until such notice is given by the City Engineer, the undersigned and their heirs, successors, and assigns agree to assume full responsibility or liability for any injury or damage to any person or property on the above-described real property or arising out of its use or occupancy by them. It is also hereby understood that all work to be done in or upon the above-described real property shall be done under permit and done in accordance with plans to be furnished by the principal and approved by the City Engineer of the City of Sacramento, and in accordance with the specifications of the City Engineer of the City of Sacramento.

The dedication offered hereunder shall be complete upon its acceptance by the City Engineer of the City of Sacramento.

Witness ______ hand this _______ day of ___________, 20[ ]

By: _________________________ By: _________________________ (ATTACH NOTARY ACKNOWLEDGMENT)

Exhibits

EXHIBIT H

MAP AND CATEGORICAL LISTING

OF LAND AND INFRASTRUCTURE

SEE ATTACHED

ORDINANCE NO. 2025 –

ADOPTED BY THE SACRAMENTO CITY COUNCIL

November 18, 2025

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1

This Ordinance incorporates, and by this reference makes part hereof, that certain Development Agreement, by and between the City of Sacramento and JTS Engineering Consultants Inc. Profit Sharing PLA, a copy of which is attached.

SECTION 2

The City Council enacts this ordinance against the following background:

A. The agreement is consistent with the City General Plan and the goals, policies, standards and objectives of the North Natomas Community Plan (NNCP).

B. The project should be encouraged in order to meet important economic, social, environmental or planning goals of the NNCP.

C. The project would be unlikely to proceed in the manner proposed in the absence of a Development Agreement.

D. The landowner will incur substantial costs in order to provide public improvements, facilities or services from which the general public will benefit.

G. The landowner has made commitments to a high standard of quality and has agreed to all applicable land use and development regulations.

SECTION 3

SECTION 4

Table of Contents:

Exhibit A: Development Agreement

No Fee Required: Recording benefits the
City of Sacramento, a government entity.

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

City Clerk
City of Sacramento
915 I Street
Sacramento, CA 95814

SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY

DEVELOPMENT AGREEMENT

  

Airport South Industrial Annexation
P21-017

JTS ENGINEERING CONSULTANTS INC PROFIT SHARING PLAN
3990 Bayou Way
Sacramento, CA 95835

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

~ i ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

DEVELOPMENT AGREEMENT

Table of Contents

RECITALS

I. DEFINITIONS

II. TERMS AND CONDITIONS OF AGREEMENT

1. Property Description and Binding Covenants

2. Interests of Landowner

3. Term

4. Assignment

5. Development of the Property
A. Permitted Uses and Development Standards
B. Discretionary Approvals
C. Development Timing
D. Special Conditions
E. Land Use and Development Regulations

~ ii ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

6. Fees, Charges, Assessments and Special Taxes
A. City Fees
B. Levies Imposed by Other Jurisdictions
C. Implementation of the ASI Finance Plan
D. Landowner’s Waivers

7. Reconfiguration of Parcels

9. Landowner Obligations

~ iii ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ A. Transfer of Land to City
(1) Condition of Entitlements
(2) Request by City
B. Development Timing

10. Litigation/Indemnification
A. Challenge to Agreement or Entitlements
(1) City Discretion to Defend or Tender Defense
(2) Effect of Invalidation in Whole or Part
B. Indemnification

11. Effect of Subsequent Laws
A. Laws of Other Agencies
(1) New Laws by Other Agencies
(2) Termination of Agreement
(3) Landowner/City Right to Institute Litigation
B. Laws Passed by City

12. Enforced Delay; Extension of Times of Performance

13. Legal Actions; Applicable Law; Attorney Fees
A. Legal Actions
B. Applicable Law
C. Attorney Fees

14. Amendment of Agreement

15. City’s Good Faith in Processing

17. Annual Review
A. General Provisions

~ iv ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ B. Scope of Review
C. Proceedings
D. Failure of Compliance

18. Termination upon Completion of Development
A. General Provisions
B. Multi-family and Single Family Residential Projects
C. Effect of Termination on Landowner Obligations

19. No Joint Venture, Partnership, or Other Relationship

20. Notices

21. Severability

22. Recording

23. Reimbursement to City

24. Provisions Relating to Lenders
A. Lender Rights and Obligations
B. Notice of Landowner’s Default Hereunder
C. Lender’s Right to Cure
D. Other Notices Given by City

25. Estoppel Certificate

26. Construction

27. Counterparts

28. Time

29. Limitation of Actions

30. No Third parties Benefitted

31. Effect of Agreement upon Title to Property

32. Covenant of Good Faith

33. Exhibits

34. Entire Agreement

35. City Attorney Costs
Execution Page for City and Landowner
Execution Page for Lender

LIST OF EXHIBITS

~ v ~

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

- 1 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

DEVELOPMENT AGREEMENT

BY AND BETWEEN

THE CITY OF SACRAMENTO
AND

JTS ENGINEERING CONSULTANTS INC PROFIT SHARING PLAN
This Development Agreement (hereinafter “Agreement”) is made and entered into this ___ day of _____________, 2025, by and between the CITY OF SACRAMENTO, a municipal corporation (hereinafter the “CITY”), and JTS ENGINEERING CONSULTANTS INC PROFIT SHARING PLAN (hereinafter the “LANDOWNER”).

B. LANDOWNER owns a legal or equitable interest in those certain parcels of real property (hereinafter the “Property”), described in Exhibit “A” attached hereto and incorporated herein by this reference, which are located within the CITY. The Property consists of lands designated as Assessor Parcels No. 225-0030-023-0000. LANDOWNER seeks to develop the Property consistent with CITY’s General Plan, the 1994 North Natomas Community Plan, and the Planning and Development Code (Sacramento City Code title 17) as they exist on the Effective Date.

- 2 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

- 3 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

L. CITY and LANDOWNER have taken all actions mandated by and have fulfilled all requirements set forth in the Procedural Ordinance for the adoption of this Agreement by the City Council.

AGREEMENT

I. DEFINITIONS

The terms set forth below, unless the context otherwise requires, shall have the meanings prescribed, for purposes of this Agreement.

 Adopting Ordinance: the ordinance pursuant to which the City Council approves this Agreement.

 Assessment: a special assessment levied on real property within the North Natomas Community Plan area, for the purpose of financing Infrastructure and/or public facilities, or maintenance

- 4 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

 Assignee: a third Person executing an Assumption Agreement prepared in accordance with the format prescribed in Exhibit D.

 CEQA: the California Environmental Quality Act, set forth at California Public Resources Code section 21000 et seq., as amended from time to time.

 CITY: the City of Sacramento.

 City Agency: the Redevelopment Agency of the City of Sacramento, and the Housing Agency of the City of Sacramento.

 City Council: the Council of the City of Sacramento.

 Comprehensive Flood Management Plan: that plan required to be prepared, and to be adopted by the City Council, pursuant to the CITY’s floodplain policy adopted by Resolution No. 93-696.

 Deed of Trust: a real property security device whereby the debtor (trustor) conveys title to real property to a trustee as security for a debt owed to the creditor (beneficiary).

- 5 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

 Development Plan: LANDOWNER’s plan for development of the Property, as set forth in Exhibit B.

 Effective Date: the date on which this Agreement has been approved by the City Council.

 General Plan: the General Plan of the City of Sacramento, as adopted by the City Council on February 27, 2024, as said plan may be amended from time to time.

- 6 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

 Parties: the City of Sacramento and LANDOWNER.

 Person: any person, firm, association, organization, partnership, business trust, corporation or company.

 Planning and Development Code: the Planning and Development Code of the City of Sacramento, as that Code exists on the Effective Date.

 Project: part or all of the elements set forth in LANDOWNER’s Development Plan.

 Property: the real property owned by LANDOWNER, as set forth in Exhibit A.

- 7 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

 Protest Waiver: the agreement set forth in Exhibit F, executed by LANDOWNER pursuant to this Agreement, or in connection with the conditions of any required entitlement.

 Purchaser: an assignee.

 Reconfiguration: the reconfiguration, adjustment or alteration of property lines through parcel or subdivision mapping, or lot line adjustment.

 Special Conditions: those conditions, terms and requirements specified in Exhibit C.

 Term: the length of this Agreement in terms of time, as specified in section 3, or as that time may be extended pursuant to any applicable provision of this Agreement.

 Transfer: an assignment.

 Transferee: an assignee.

- 8 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ II. TERMS AND CONDITIONS OF AGREEMENT

3. Term.

- 9 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

5. Development of the Property.

B. Discretional Approvals.

- 10 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

D. Special Conditions. Development of the Property shall be subject to the Special Conditions, as specified in Exhibit C.

E. Land Use and Development Regulations.

- 11 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ by other provisions of this Agreement, such future changes shall be applicable to the Property.

(7) Building codes, ordinances and regulations relating to construction standards or permits shall apply as of the time of grant of each applicable construction permit.

- 12 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ to act in accordance with the provisions of subsections 5E(4), 5E(5) and 5E(6) of this Agreement.

- 13 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

6. Fees, Charges, Assessments and Taxes.

B. Levies Imposed by Other Jurisdictions. LANDOWNER shall be responsible for:

(2) all fees, charges, assessments, special taxes or levies of any sort associated with the financing of the construction and implementation of said flood control improvements and measures;

(4) any fees or other charges required by RD-1000; and (5) ad valorem real estate taxes, and utility fees.

C. Implementation of the ASI Finance Plan. The ASI Finance Plan establishes a method for financing of required Infrastructure and public facilities through a combination of land

- 14 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

8. Infrastructure.

- 15 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

C. Infrastructure Financing Proceedings.

(a) is complete and is accompanied by payment of CITY fees applicable on the date of filing of the application;

(d) provides for a value to lien ratio and other financial terms that are reasonably acceptable to CITY;

- 16 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

E. Reimbursement to LANDOWNER.

- 17 -

FOR CITY CLERK USE ONLY
Ordinance No.______________________

- 18 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

9. LANDOWNER Obligations.

(1) required pursuant to a condition or term of any entitlement for use or development of the Property; or

- 19 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

B. Development Timing. LANDOWNER shall have no obligation to initiate or commence development of any particular phase of the Property within any period of time.

10. Litigation/Indemnification.

A. Challenge to Agreement or Entitlements.

(a) City may, in its sole discretion, either defend such litigation or tender its defense to LANDOWNER.

(b) In the event that CITY determines to defend the action itself, LANDOWNER shall be entitled, subject to court approval, to join in or intervene in the action

- 20 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

- 21 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ undertaken by LANDOWNER or LANDOWNER’s contractors, subcontractors, agents or employees.

11. Effect of Subsequent Laws.

A. Laws of Other Agencies.

- 22 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

13. Legal Actions; Applicable Law; Attorney Fees.

- 23 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

16. Default, Remedies, Termination.

- 24 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

(1) institute legal proceedings to obtain appropriate judicial relief, including but not limited to mandamus, specific performance, injunctive relief, or termination of this Agreement; or

17. Annual Review.

- 25 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

B. Scope of Review. The annual review shall be limited in scope to compliance with the terms and conditions of this Agreement.

18. Termination upon Completion of Development.

- 26 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

Notice to the CITY: City of Sacramento
915 I Street
Sacramento, California, 95814
ATTN: City Manager

- 27 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ Notice to the LANDOWNER: JTS ENGINEERING CONSULTANTS INC PROFIT SHARING PLAN 1808 J ST
SACRAMENTO, CA 95811

with copies to:
_____________________________
_____________________________
_____________________________
_____________________________

Notice to Lender: _____________________________
_____________________________
_____________________________
_____________________________

Any party may change the address to which notices are to be mailed by giving written notice of such changed address to each other party in the manner provided herein.

- 28 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

24. Provisions Relating to Lenders.

A. Lender Rights and Obligations.

C. Lender’s Right to Cure. Each Lender shall have the right (but not the obligation) during the same period of time available to LANDOWNER to cure or remedy, on behalf of

- 29 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________ LANDOWNER, the default claimed or the areas of non-compliance set forth in CITY’s notice. Such action shall not entitle a Lender to develop the property or otherwise partake of any benefits of this Agreement unless such Lender shall assume and perform all obligations of LANDOWNER hereunder.

D. Other Notices Given By City. A copy of all notices given by CITY pursuant to the terms of this Agreement shall be sent to Lender at the address provided in section 20 hereof.

27. Counterparts. This Agreement may be executed in any number of counterparts and shall be deemed duly executed when each of the parties has executed such a counterpart.

28. Time. Time is of the essence of each and every provision hereof.

- 30 -

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

City Agreement No. ______________________ Date Adopted: ______________________

32. Covenant of Good Faith. CITY and LANDOWNER agree that each of them shall at all times act in good faith in order to carry out the terms of this Agreement.

33. Exhibits: The following are the exhibits to this Agreement:

34. Entire Agreement. This Agreement, together with its Exhibits A to H, inclusive, constitutes the entire agreement between the parties with respect to the subject matter of this Agreement.

35. City Attorney Costs. Landowner shall pay to the City of Sacramento the sum of $1,500.00 as and for reimbursement of the costs of the City Attorney in preparation and processing of this Agreement.

››› Signature Page Follows ‹‹‹

- 31 -
North Natomas Development Agreement
Form Revised 10/03/17 JCH&JPC

FOR CITY CLERK USE ONLY
Ordinance No. ______________________

CITY OF SACRAMENTO

By: ________________________________
Kevin McCarty
Mayor of City of Sacramento
Date: _____________, 2025

JTS ENGINEERING CONSULTANTS INC PROFIT

SHARING PLAN
By: ________________________________
Signature
________________________________
Print Name
________________________________
Title
Date: _____________, 2025

Attest
Sacramento City Clerk

By: ________________________________
Signature

Approved as to Form
Sacramento City Attorney

By: ________________________________
Signature

Approved as to Form
[Name]

By: ________________________________
[Name]
Attorneys for [Name]

(ATTACH APPROPRIATE ACKNOWLEDGMENT)

Exhibits

EXECUTION PAGE FOR LENDER

LENDER hereby executes this Agreement and agrees to be bound by the terms and condition hereof, subject to the limitations set forth in section 24 hereof.

LENDER requests that it be provided with copies of all notices mailed to LANDOWNER pursuant to the terms of this Agreement and that said copies be addressed as follows:

________________________
________________________
________________________
Attn: ___________________

Dated: ____________, 20[ ]

LENDER: ________________________________
Signature

By: _____________________________

Its: ____________________________

(ATTACH APPROPRIATE ACKNOWLEDGMENT)

Exhibits

EXHIBIT A

DESCRIPTION OF LANDOWNER’S PROPERTY

SEE ATTACHED

NOTE: UPON RECORDATION OF FINAL MASTER PARCEL MAP, THIS EXHIBIT A WILL BE REPLACED BY THE SAID MAP, WITHOUT NEED FOR AMENDMENT OF THIS AGREEMENT.

Exhibits
Exhibit A: Description of Landowner's Property

All that real property situate in the County of Sacramento, State of California, described as foll ows:

Exhibits

EXHIBIT B

LANDOWNER’S DEVELOPMENT PLAN

SEE ATTACHED

Exhibits

EXHIBIT C

SPECIAL CONDITIONS

I. PURPOSE AND INTENT

The definitions applicable to the body of the Agreement shall apply to this Exhibit C.

II. LANDOWNERS’ OBLIGATIONS

A. Mitigation Monitoring; Habitat Conservation Plan.

2. Habitat Conservation Plan.

a. Consistent with the Habitat Conservation Plan adopted by CITY, where applicable, LANDOWNER shall be obligated to undertake and exercise one of the following options:

(iv) participate in such other plan or program which has been approved by said federal and state agencies; or

B. Agreements with Other Agencies. As required by CITY, LANDOWNER shall enter into agreements with other affected agencies, including but not limited to:

2. Reclamation District 1000, if an agreement is in fact required.

Exhibits

1. Fee Components

D. Transportation Infrastructure Requirements and Phasing

Exhibits
(i) Remainder of development

3. Future Phased Improvements -Prior to issuance of any building permits within Phase 2 or 3, the Landowner shall:

Exhibits

III. CONDITIONS OF DEVELOPMENT; SPECIAL FINDINGS REQUIRED

1. The approval of the proposed project is consistent with the policies, goals, standards and objectives of the NNCP and other relevant factors and circumstances, including but not limited to:

a. The adequacy of the required Infrastructure needed to support the project planned for the Property;

b. The extent of participation required of LANDOWNER under the ASI Finance Plan has been secured;

c. The extent to which LANDOWNER has complied with the provisions of the Policy.

2. The ASI Finance Plan has been adopted by the City Council.

Exhibits

5. LANDOWNER has entered into all agreements required pursuant to sections IIA, IIB, and II.C above.

1. Practicable and feasible requirements or mitigation measures can be imposed upon the project, the implementation of which would allow such special finding to be made;

3. It is in the public interest and consistent with the policies, goals, standards and objectives of the Community Plan for the project to be approved with such requirements and mitigation measures.

Exhibits

EXHIBIT D

ASSIGNMENT AND ASSUMPTION AGREEMENT

RECITALS

C. ASSIGNEE desires to assume all of LANDOWNER’s rights and obligations and other terms and conditions under the Development Agreement with respect to the Assigned Parcel(s).

AGREEMENTS

NOW, THEREFORE, LANDOWNER AND ASSIGNEE HEREBY AGREE AS FOLLOWS:

2. ASSIGNEE understands and agrees that this Agreement is subject to section 4 of the Development Agreement. Section 4 reads as follows:

Exhibits

Assignment. LANDOWNER shall have the right to sell, assign, or transfer its interests under this Agreement as part of a contemporaneous and related sale, assignment or transfer of its interests in the Property, or any portion thereof, without the consent of CITY; provided, however, that LANDOWNER shall notify CITY of such sale, assignment or transfer by providing written notice thereof to CITY in the manner provided in this Agreement. LANDOWNER shall remain obligated to perform all terms and conditions of this Agreement, unless such purchaser, assignee or transferee, to the satisfaction of and in a form acceptable to the City Attorney, executes and delivers to CITY an express agreement to assume all of the obligations and other terms and conditions of this Agreement with respect to the Property or such portion thereof sold, assigned or transferred. The execution of such an assumption agreement shall relieve LANDOWNER of the obligations expressly assumed only if (a) LANDOWNER is not in default under this Agreement at the time of the assignment or transfer; and (b) LANDOWNER has provided CITY with notice of said assignment or transfer in the manner provided hereunder. Any such assumption agreement with respect to LANDOWNER’s obligations under this Agreement shall be deemed to be to the satisfaction of the City Attorney if executed in the form of the Assignment and Assumption Agreement attached hereto as Exhibit “D” and incorporated herein by this reference, or such other form as shall be proposed by LANDOWNER and approved by the City Attorney prior to the effective date of the assignment.

4. At the request of the City, ASSIGNEE agrees to enter into a separate development agreement with respect to the Assigned Parcel(s).

5. All of the covenants, terms and conditions set forth herein shall be binding upon and shall inure to the benefit of the parties hereto and to their respective heirs, successors and assigns.

Exhibits
mechanisms and obligations inherent in such documents and materials, nevertheless has voluntarily, freely and knowingly assumed and agreed to perform all of obligations and requirements, and be bound by all of the provisions of such documents and materials.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written.

By: ______________________________
“ASSIGNEE”

Exhibits

EXHIBIT E

AIRPORT SOUTH INDUSTRIAL FINANCE PLAN

Exhibits

EXHIBIT F

Protest Waiver Provisions Agreed to by LANDOWNER

Accordingly, LANDOWNER agrees for itself, its constituents, successors and assigns that it fully, finally and forever waives and relinquishes any right it may have to protest or contest the formation or implementation of any special assessment or tax district or any similar form of financing mechanism, or any combination thereof, together with any rights it may have to contest the imposition of any developer fee established or imposed pursuant to the ASI Finance Plan. Nothing in this Agreement, however, shall prevent LANDOWNER from presenting CITY any information or opinions regarding any financing mechanism CITY may from time to time consider establishing or imposing, which information or opinions relate to the dollar amount of any fees, assessments, taxes or other charges imposed by CITY pursuant to the ASI Finance Plan, or which information or opinions relate to the question of consistency of the financing mechanism with the ASI Finance Plan. If a financing mechanism is proposed for adoption by CITY, which mechanism both: (i) directly and significantly conflicts with the language and the intent of the ASI Finance Plan, as amended; and (ii) directly and significantly conflicts with the ASI Nexus Study adopted by the City Council in connection with establishment of development fees for the ASI Finance Plan Area, LANDOWNER shall have the right to protest only the actual amount of the directly and significantly conflicting proposed fee, charge, special tax, or assessment proposed to be levied, charged, assessed or taxed against the Property by virtue of the proposed financing mechanism. Provided, however, that LANDOWNER’s said right to protest, together with any right to object, shall be waived unless LANDOWNER’s protest of objection is made at or before the time of the public hearing wherein the proposed financing mechanism, together with the fee, charge, special tax or assessment is established by the City Council. LANDOWNER’s right to judicial challenge of any such mechanism, and the fees, charges, assessments or special taxes imposed or to be imposed in connection therewith, shall be limited to review of the decision of the City Council establishing the said mechanism and the said fees, charges, assessments or special taxes; LANDOWNER shall not have the right, in connection with any land use entitlement proceeding with respect to the Property, to judicially challenge the financing mechanism or the fees, charges, assessments or special taxes as applied to the Property, and waives any statutory or common law right to pay such fees, charges, assessment or special taxes under protest.

(ii) the provisions of any other statute designed to provide a protest or contest procedure in connection with formation and implementation of a district or similar financing mechanism; and

(3) Agrees to:

(ii) execute an irrevocable proxy or proxies when necessary (such as in the formation of, or imposition of taxes relative to, a Mello-Roos Community Facilities District)

Exhibits
authorizing a representative designated by CITY, who will vote in favor of establishing the specific financing mechanism in question; and

(iii) execute immediately upon presentation any document which is required or convenient for the formation of the district or facilitation of the particular financing mechanism.

Exhibits

EXHIBIT G

IRREVOCABLE OFFER OF DEDICATION FORM

Recorded for the benefit of the
City of Sacramento (exempt from
fees under Gov. Code, § 6103)

When recorded return to–

Development Services Department
Attn: Jerry Lovato
300 Richards Blvd., 3rd Floor
Sacramento, CA 95811

IRREVOCABLE OFFER TO DEDICATE

SEE EXHIBIT “A,” LEGAL DESCRIPTION, AND EXHIBIT “B,” PLAT, ATTACHED HERETO AND MADE A PART HEREOF.

The dedication offered hereunder shall be complete upon its acceptance by the City Engineer of the City of Sacramento.

Witness ______ hand this _______ day of ___________, 20[ ]

By: _________________________ By: _________________________ (ATTACH NOTARY ACKNOWLEDGMENT)

Exhibits

EXHIBIT H

MAP AND CATEGORICAL LISTING

OF LAND AND INFRASTRUCTURE

SEE ATTACHED

RESOLUTION NO.

Adopted by the Sacramento City Council

November 18, 2025

RESOLUTION AMENDING THE 2040 GENERAL PLAN LAND USE DIAGRAM TO INCLUDE ±420.9 ACRES OF EMPLOYMENT MIXED-USE, ±6.7 ACRES OF OPEN

SPACE, AMENDING THE GENERAL PLAN CIRCULATION ELEMENT IN

ACCORDANCE WITH THE PROPOSED AIRPORT SOUTH INDUSTRIAL

ANNEXATION PROJECT, AND INCLUDE WITHIN THE NORTH NATOMAS COMMUNITY PLAN (AIRPORT SOUTH ANNEXATION PROJECT (P21-017))

BACKGROUND
A. On June 26, 2025, the Planning and Design Commission conducted a public hearing on, and forwarded to the City Council its recommendation on the Airport South Industrial Annexation Project, and
B. On November 18, 2025 after giving notice as required by Sacramento City Code section 17.812.010 (2)(b), the City Council conducted a public hearing on the Airport South Industrial Annexation Project, receiving and considering evidence concerning it.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. A. The statements in paragraphs A, B, and C of the Background are true.

B. The 2040 General Plan is in full compliance with the applicable requirements of the Planning and Zoning Law and comprises a comprehensive, long-term general plan for the physical development of the city and lands located outside of the territorial limits of the city that have a relation to its planning;
C. The 2040 General Plan contains the substance of each of the state- mandated elements, to the extent that the subject of the element exists within the planning area;
D. The 2040 General Plan comprises an integrated, internally consistent, and compatible statement of policies for the city relating to its physical development.

Section 2. Based on the oral and documentary evidence received at the hearing on the Airport South Industrial Annexation Project, the City Council approves the General Plan Amendment for the Airport South Industrial Annexation Project as set forth in Exhibits A - D by including ±427.6 acres of Employee Mixed-Use (EMU), establishing minimum and maximum floor area ratios, and amending the circulation element to include roadway classifications.

Section 3. The amendment described in Section 2 is internally consistent with the goals, policies, and other provisions of the 2040 General Plan, and it promotes the public health, safety, convenience, and welfare of the City.

Section 4. Exhibit A – D are part of this Resolution.

Table of Contents:

Exhibit A – Land Use Diagram (Map LUP-5 in General Plan) Exhibit B – Minimum Floor Area Ratio (Map LUP-7 in General Plan) Exhibit C – Maximum Floor Area Ratio (Map LUP-6 in General Plan) Exhibit D – Circulation Diagram (Map M-2a in the General Plan)

GENERAL PLAN AMENDMENT EXHIBITAIRPORT SOUTH INDUSTRIALCITY OF SACRAMENTO, CALIFORNIAMAY 5, 2025

AIRPORT SOUTH INDUSTRIAL - GENERAL PLAN AMENDMENT
BUILDING RELATIONSHIPS ONE PROJECT AT A TIME3301 C St, Bldg. 100-BTel 916.341.7760Fax 916.341.7767Sacramento, CA 958164008000NORTH1600

EXISTING GENERAL PLAN

PROPOSED GENERAL PLAN

SUMMARY TABLE
INTERSTATE 5 INTERSTATE 5 EMPLOYMENTMIXED USE420.9 ± AC.

SPECIAL STUDYAREA427.6 ± AC.
± AC.

AG CR.

AG CROPAG CROP
AG CR.

NEIGHBORHOOD

INTIND INT IND
± AC.

AGCROPAGCROPAGCROPAGCROPAGCROP
AGCROP
AGCROP
AGCROP

INTINDINTINDINTINDINTINDINTINDINTINDINTIND
AG CR.

AG CROP
AG CR.

NEIGHBORHOOD

INTIND INT IND

AGCROPAGCROPAGCROPAGCROPAGCROP
AGCROP
AGCROP
AGCROP

INTINDINTINDINTINDINTINDINTINDINTIND

AG CROP
OPEN SPACE6.7 ± AC.

GENERAL PLAN MINIMUM FARAIRPORT SOUTH INDUSTRIALCITY OF SACRAMENTO, CALIFORNIANOVEMBER 18, 2024

AIRPORT SOUTH INDUSTRIAL - GENERAL PLAN MINIMUM FAR
BUILDING RELATIONSHIPS ONE PROJECT AT A TIME3301 C St, Bldg. 100-BTel 916.341.7760Fax 916.341.7767Sacramento, CA 95816 0NORTH2505001000 MIN. FAR = 0.15427.6 ± AC.

INTERSTATE 5

POWER LINE ROAD
S. BAYOU WAY/EL CENTRO ROAD
GENERAL PLAN MINIMUM FARAIRPORT SOUTH INDUSTRIALCITY OF SACRAMENTO, CALIFORNIANOVEMBER 18, 2024

INTERSTATE 5

POWER LINE ROAD
S. BAYOU WAY/EL CENTRO ROAD

LOT EDETENTION/RETENTION BASIN

LOTDDETENTION/RETENTIONBASIN

LOTC DETENTION/RETENTION BASIN

LOTADETENTION/RETENTIONBASIN
PARCEL1INDUSTRIAL
PARCEL2INDUSTRIAL
PARCEL3INDUSTRIAL
PARCEL4INDUSTRIALPARCEL5BINDUSTRIAL
PARCEL5CINDUSTRIAL
PARCEL5DINDUSTRIALPARCEL5AINDUSTRIALPARCEL5EINDUSTRIAL

LOTB DETENTION/RETENTION BASIN
PARCEL6CHCPARCEL7CHC
PARCEL6AHCPARCEL6BHC
PARCEL7BHC
PARCEL7AHC
PARCEL5FINDUSTRIAL PARCEL13INDUSTRIAL
SCALORAAPN: 225-0030-045BK. 225, PG. 003(NAPOTS)
APN: 225-0020-032BK. 225, PG. 002CALTRANSROW(NAPOTS)ISGURAPN:225-0030-024BK. 225, PG. 003(NAPOTS) PATELAPN: 225-0030-028BK. 225, PG. 003(NAPOTS)

SANGSTER(NAPOTS)
SEWERPUMPSTATIONSTATIONPUMPDRN.

1.1 ± AC. (G)0.9 ± AC. (N)1.0 ± AC. (G)0.7 ± AC. (N)
GENERAL PLAN CIRCULATION DIAGRAMAIRPORT SOUTH INDUSTRIALCITY OF SACRAMENTO, CALIFORNIAOCTOBER 29, 2024

AIRPORT SOUTH INDUSTRIAL - GENERAL PLAN CIRCULATION DIAGRAM BUILDING RELATIONSHIPS ONE PROJECT AT A TIME3301 C St, Bldg. 100-BTel 916.341.7760Fax 916.341.7767Sacramento, CA 95816 0 NORTH250
500
1000
22 2
2 4
LEGEND

ARTERIALCOLLECTOR (LOCAL INDUSTRIAL)
INTERSTATE 5

AIRPORT SOUTH INDUSTRIAL DRIVE

METRO AIR PKWY

POWER LINE ROAD
"B" DRIVE
"A" DRIVE
S. BAYOU WAY/

NUMBER OF LANESX
EL CENTRO RD.

ORDINANCE NO.

Adopted by the Sacramento City Council

November 18, 2025

ORDINANCE AMENDING TITLE 17 OF THE SACRAMENTO CITY CODE BY PREZONING APPROXIMATELY 427.6 ACRES FROM AGRICULTURAL 80 (AG-80 (COUNTY)), TO ±336.3 ACRES OF LIGHT INDUSTRIAL PLANNED UNIT DEVELOPMENT (M-1-PUD), ±15.7 ACRES OF HIGHWAY COMMERCIAL PLANNED UNIT DEVELOPMENT (HC-PUD), ±68.9 ACRES OF LIGHT INDUSTRIAL (M-1) AND ±6.7 ACRES OF AGRICULTURAL-OPEN SPACE
A. On June 26, 2025, the City Planning and Design Commission conducted a public hearing on the Airport South Industrial Annexation Project, and forwarded to the City Council a recommendation to approve the prezoning of various parcels as set forth in Exhibit A.

B. On November 18, 2025 the City Council conducted a noticed public hearing, for which notice was given consistent with Sacramento City Code sections

17.812.030, and received and considered evidence concerning the Airport South Industrial Annexation Project.

BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO:

SECTION 1
As used in this ordinance, “Property” means the real property depicted in attached Exhibit A consisting of approximately 427.6 acres.

SECTION 2

Title 17 of the Sacramento City Code (the Planning and Development Code) is hereby amended by prezoning the Property from ±427.6 acres of Agricultural 80 [(AG-80) (County)], to ±336.3 acres of Light Industrial, Planned Unit Development (M-1-PUD), ±15.7 acres of Highway Commercial, Planned Unit Development (HC-PUD), ±68.9 acres of Light Industrial (M-1), and ±6.7 acres of Agricultural-Open Space (A-OS).

SECTION 3

The prezoning of the Property by this ordinance is consistent with the applicable land- use designation, use, and development standards in the City’s 2040 General Plan; with the goals, policies, and other provisions of the General Plan; and with any applicable specific plan. The amendment promotes the public health, safety, convenience, and welfare of the City.

SECTION 4

The City Clerk is hereby directed to amend the City’s official zoning maps to conform to this ordinance.

Table of Contents:

Exhibit A – Airport South Industrial Annexation Existing and Proposed Zones

PRE-ZONE EXHIBITAIRPORT SOUTH INDUSTRIALCITY OF SACRAMENTO, CALIFORNIAMAY 5, 2025

AIRPORT SOUTH INDUSTRIAL - PRE-ZONE EXHIBIT
BUILDING RELATIONSHIPS ONE PROJECT AT A TIME3301 C St, Bldg. 100-BTel 916.341.7760Fax 916.341.7767Sacramento, CA 958164008000NORTH1600

EXISTING ZONING(COUNTY OF SACRAMENTO)

PROPOSED ZONING(CITY OF SACRAMENTO)

SUMMARY TABLE
INTERSTATE 5 INTERSTATE 5 AG-80AG-80AG-80AG-80AG-80
AG-80AG-80AG-80
AG-80AG-80AG-80AG-80
AG-80SPASPASPASPASPASPASPASPAA-OSA-OS
A-OSR-1A
R-1 M-1S
AG-80AG-80AG-80AG-80AG-80
AG-80AG-80AG-80
AG-80AG-80AG-80AG-80
AG-80SPASPASPASPASPASPASPASPAA-OSA-OS
A-OSR-1A
R-1 M-1S
AG-80
AG-80
AG - 80427.6 ± AC.

M-1-PUD336.3 ± AC.HC-PUD15.7 ± AC.
± AC.± AC.

M-157.1 ± AC.

M-16.5 ± AC.M-15.3 ± AC.A-OS6.7 ± AC.

RESOLUTION NO.

Adopted by the Sacramento City Council

November 18, 2025

APPROVING THE AIRPORT SOUTH INDUSTRIAL PLANNED UNIT
DEVELOPMENT (PUD) GUIDELINES AND SCHEMATIC PLAN (P21-017)

BACKGROUND

A. On June 26, 2025, the Planning and Design Commission conducted a public hearing on, and forwarded to the City Council the Airport South Industrial Annexation Project with a recommendation of approval; and

B. On November 18, 2025, the City Council conducted a public hearing, for which notice was given pursuant to Sacramento City Code section 17.812.010 (2)(b) and received and considered evidence concerning the Airport South Industrial Annexation Project.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. Based on the verbal and documentary evidence received at the hearing on the Airport South Industrial Annexation Project, the City Council approves the Airport South Industrial Planned Unit Development Guidelines and Schematic Plan.

Section 2. The City Council approves the Airport South Industrial PUD Guidelines and Schematic Plan based on the following Findings of Fact:

1. The adoption of the PUD is consistent with the applicable general plan land use designation, use, and development standards; the goals, policies, and other provisions of the general plan; and any applicable specific plan; and

2. The designation promotes the public health, safety,
convenience, and welfare of the city; and

3. The zoning classification of the subject parcels is consistent with the proposed adoption of the PUD.

Section 3. The Planned Unit Development Guidelines and Schematic Plan for the Airport South Industrial PUD are adopted as attached hereto as Exhibit A.

Section 4. Exhibits A is a part of this Resolution.

Table of Contents:

Exhibit A – Airport South Industrial Planned Unit Development Guidelines and Schematic Plan

AIRPORT SOUTH INDUSTRIAL

PLANNED UNIT DEVELOPMENT GUIDELINES
City of Sacramento
SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
2 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

TABLE OF CONTENTS
Section 1 | Plan Overview ..................................................................3 Location/Context Map ...................................................................................................4 Section 2 | Land Use............................................................................5 Schematic Plan.................... ..........................................................................................5 Section 3 | Site Design .......................................................................7 Truck Court Exhibit .........................................................................................................8 Employee Break Area Detail ...........................................................................................9 Section 4 | Building Design ..............................................................11 Conceptual Industrial Building Elevations .....................................................................13 Section 5 | Landscaping ...................................................................14 Section 6 | Signage ...........................................................................17 Signage Example ..........................................................................................................17 Section 7 | Lighting ..........................................................................19 SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
3 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
SECTION 1

PLAN OVERVIEW

1.1 PURPOSE AND INTENT
The purpose of the Airport South Industrial
Planned Unit Development Design Guidelines
is to establish minimum site layout/building
design standards and design guidance for
the development of warehouse and light
industrial buildings. Unless otherwise provided
for in the PUD Design Guidelines the highway
commercial portion of the development will
use the existing City’s citywide commercial
design guidelines.

The design standards and guidelines are divided into 7 different sections as follows:
• Section 1 - Plan Overview
Plan overview section provides the local context for the project and the PUD principles and objectives
• Section 2 - Land Use
The Site design section addresses site layout, building and parking requirements, and stormwater requirements
• Section 3 - Site Design
The Building design section addresses architectural requirements • Section 4 - Building Design
The Landscaping section addresses plant selection, locations, fencing and screening
• Section 5 - Landscaping
The Signage section addresses building and monument/pylon after the word monument signs
• Section 6 - Signage
The Lighting sections addresses exterior building and parking lot illumination • Section 7 - Lighting
The Land Use section addresses the Land Use Plan and prohibited uses SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
4 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

THE SITE IS LOCATED ON THE
SOUTH SIDE OF I-5 AT METRO

AIR PARKWAY INTERCHANGE
5 55
80 99
99 West Side FwyWest Side Fwy
Powerline RdPowerline Rd
Metro Air ParkwayMetro Air Parkway
Elkhorn BlvdElkhorn Blvd

AIRPORT SOUTH

INDUSTRIAL

SITE LOCATION
SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
5 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
SECTION 2

LAND USE
Contains the Schematic Plan and prohibited uses

2.1 SCHEMATIC PLAN

METRO AIR PARKWAY

POWERLINE ROAD
SOUTH
BAYOU
WAY
NAPOTS

INDUSTRIAL
±64 AC.

NAPOTS

INDUSTRIAL
±19 AC.

INTERSTATE 5
**
"B" DRIVE
"A" DRIVE

AIRPORT SOUTH INDUSTRIAL DRIVE
o o

HIGHWAY COMMERCIAL

LIGHT INDUSTRIAL

PUMP STATION

IDENTIFICATION SIGN

LOCATIONS
*
o

DETENTION
AIRPORT SOUTH INDUSTRIAL (SACRAMENTO, CA) LAND USE SECTION 2 PAGE 5 EXHIBIT 2023.01.26 SCALE 1:500
N
PARCEL 1

INDUSTRIAL
±49 AC.
±885,000 S.F.

PARCEL 2

INDUSTRIAL
±51 AC.
±1,205,000 S.F.

PARCEL 4

INDUSTRIAL
±52 AC.
±1,205,000 S.F.

PARCEL 3

INDUSTRIAL
±34 AC.
±700,000 S.F.

PARCEL 5A

INDUSTRIAL
±12 AC.
±275,000 S.F.

LOT C

DETENTION BASIN
±32 AC.

LOT A

DETENTION BASIN
±8 AC.

LOT D

DETENTION
BASIN
±11 AC.

PARCEL 6A

HIGHWAY COMMERCIAL
±2 AC.
±3,200 S.F.

PARCEL 6B

HIGHWAY COMMERCIAL
±2 AC.
±3,200 S.F.

PARCEL 6C

HIGHWAY COMMERCIAL
±4 AC.
±6,500 S.F.

PARCEL 7A

HIGHWAY COMMERCIAL
±4 AC.
±60,000 S.F.

PARCEL 7B

HIGHWAY COMMERCIAL
±2 AC.
±3,200 S.F.

PARCEL 7C

HIGHWAY COMMERCIAL
±1.5 AC.
±4,000 S.F.

LOT F

SEWER PUMP

STATION
±1 AC.

DETENTION
BASIN
±8 AC.

LOT G

DRAINAGE PUMP

STATION
±1 AC.

RIGHT-OF-WAY ±22 AC.

PARCEL 5E

INDUSTRIAL
±3 AC.
±30,000 S.F.

LEGEND:

PARCEL 5B

INDUSTRIAL
±17 AC.
±275,000 S.F.

PARCEL 5C

INDUSTRIAL
±9 AC.
±125,000 S.F.

PARCEL 5D

INDUSTRIAL
±7 AC.
±100,000 S.F.

PARCEL 5F

INDUSTRIAL
±2 AC.
±30,000 S.F.

LOT B

DETENTION BASIN
±32 AC.

PARCEL 13
±2 AC.

LOT H SMUD

SUBSTATION
±2 AC.

EXISTING SOUTH BAYOU

WAY RIGHT-OF-WAY TO
REMAIN

METRO AIR PARKWAY

POWERLINE ROAD
SOUTH
BAYOU
WAY
NAPOTS

INDUSTRIAL
±64 AC.

NAPOTS

INDUSTRIAL
±19 AC.

INTERSTATE 5
**
"B" DRIVE
"A" DRIVE

AIRPORT SOUTH INDUSTRIAL DRIVE
o o

HIGHWAY COMMERCIAL

LIGHT INDUSTRIAL

PUMP STATION

IDENTIFICATION SIGN

LOCATIONS
*
o

DETENTION
AIRPORT SOUTH INDUSTRIAL (SACRAMENTO, CA) LAND USE SECTION 2 PAGE 5 EXHIBIT 2023.01.26 SCALE 1:500
N
PARCEL 1

INDUSTRIAL
±49 AC.
±885,000 S.F.

PARCEL 2

INDUSTRIAL
±51 AC.
±1,205,000 S.F.

PARCEL 4

INDUSTRIAL
±52 AC.
±1,205,000 S.F.

PARCEL 3

INDUSTRIAL
±34 AC.
±700,000 S.F.

PARCEL 5A

INDUSTRIAL
±12 AC.
±275,000 S.F.

LOT C

DETENTION BASIN
±32 AC.

LOT A

DETENTION BASIN
±8 AC.

LOT D

DETENTION
BASIN
±11 AC.

PARCEL 6A

HIGHWAY COMMERCIAL
±2 AC.
±3,200 S.F.

PARCEL 6B

HIGHWAY COMMERCIAL
±2 AC.
±3,200 S.F.

PARCEL 6C

HIGHWAY COMMERCIAL
±4 AC.
±6,500 S.F.

PARCEL 7A

HIGHWAY COMMERCIAL
±4 AC.
±60,000 S.F.

PARCEL 7B

HIGHWAY COMMERCIAL
±2 AC.
±3,200 S.F.

PARCEL 7C

HIGHWAY COMMERCIAL
±1.5 AC.
±4,000 S.F.

LOT F

SEWER PUMP

STATION
±1 AC.

DETENTION
BASIN
±8 AC.

LOT G

DRAINAGE PUMP

STATION
±1 AC.

RIGHT-OF-WAY ±22 AC.

PARCEL 5E

INDUSTRIAL
±3 AC.
±30,000 S.F.

LEGEND:

PARCEL 5B

INDUSTRIAL
±17 AC.
±275,000 S.F.

PARCEL 5C

INDUSTRIAL
±9 AC.
±125,000 S.F.

PARCEL 5D

INDUSTRIAL
±7 AC.
±100,000 S.F.

PARCEL 5F

INDUSTRIAL
±2 AC.
±30,000 S.F.

LOT B

DETENTION BASIN
±32 AC.

PARCEL 13
±2 AC.

LOT H SMUD

SUBSTATION
±2 AC.

EXISTING SOUTH BAYOU

WAY RIGHT-OF-WAY TO
REMAIN
SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
6 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

2.2 PERMITTED USES
All uses permitted in the M-1 and HC zones are permitted except for those prohibited in 2.3 below.

2.3 PROHIBITED USES
The following uses are not allowed in the Light Industrial, M-1 zoned areas of the Airport South Industrial development:
• Residential uses
• Adult entertainment business
• Laundromat, self-service
• Mortuary, crematory, cemetery
• Museum
• Cannabis manufacturing; cannabis testing; cannabis dispensary; cannabis cultivation, distribution, manufacturing
• Railroad ROW
• Amusement center, outdoor
• Bar, nightclub
• Cardroom
• College campus; School, K-12
• Correctional facility
• Drive-in theater
• Golf Course; driving range
• Gun range; rifle range
• Veterinary clinic; veterinary hospital; Kennel
• Animal slaughter
• Boat dock, marina
• Heliport; helistop
• Junk yard
• Livestock yard
• Solid waste landfill
• Surface mining operations
• Wells, gas and oil
SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
7 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
SECTION 3

SITE DESIGN

3.1 PRINCIPLES AND OBJECTIVES
The site design standards are to ensure that
all development within Airport South Industrial
will result in an attractive, desirable, and secure
environment.

3.2 SITE LAYOUT
The site is anticipated to develop for tenants primarily focused on warehouse and distribution uses, light
manufacturing and assembly, cold storage, and other
uses as indicated in City of Sacramento Planning and
Development Code Section 17.220, M-1 zone except
those listed in the Land Use Section 2.
• Building sizes in the M-1 zoning district are anticipated to be 500,000 SF and larger but there are no minimum or maximum building sizes
• Buildings may have one or multiple tenants
• Buildings should be orientated as necessary to meet tenant requirements

3.3 PARKING
Parking shall be provided to meet the tenant requirements as follows:
• Vehicle parking shall be located in a close proximity to the building • Parking ratio shall be provided per Title 17 of the Sacramento City Code • The use of cool pavement is acceptable but not required • Bicycle parking shall be provided per Title 17 of the Sacramento City Code SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
8 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
SRAC

TRAILERS

DOCK PARKING

ACCESS AND BACKING AREA

TRAILER PARKING

EMPLOYEE PARKING
METRO AIR PARK SOUTH (SACRAMENTO, CA) EMPLOYEE BREAK EXHIBIT 2023.01.24 N

TYPICAL TRUCK COURT
SCALE: 1:200

EMPLOYEE BREAK AREA DETAIL
SCALE: 1:20
41'
TRASH
TABLE
30'
HEDGE
BENCH

SIDEWALK
SCORED

CONCRETE

TABLE WITH

UMBRELLA

TYPICAL TRUCK
COURT

3.4 TRUCK COURTS
The truck court is where trucks access the docks, where trailers are parked, and where trash compactors can be
located. Truck courts are provided to serve the following functions:
• Docks and loading spaces shall be provided to meet
tenant requirements
• Trash and recycling compactors are subject to the
requirements of City Code Chapter 17.616 and shall be
located adjacent to the building and away from street
frontages
SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
9 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

EMPLOYEE BREAK AREA DETAIL
SCALE: 1=20'
TRASH
TABLE
30'
HEDGE
BENCH

SIDEWALK
SCORED

CONCRETE

TABLE WITH

UMBRELLA

DOCK PARKING

ACCESS AND BACKING AREA

TRAILER PARKING

TYPICAL TRUCK
COURT

BUILDING PLAN
SCALE: 1-200'
41'

3.5 OPEN SPACE SHALL BE REQUIRED
Open space area shall be provided at each building for tenant leisure/break area.
• Each building shall provide 2 employee break areas
• Employee Break Area Detail indicates typical site furniture • Size and location of the employee break areas shall be determined during Site Plan and Design Review.

SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
10 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

3.6 VEHICLE ACCESS
Access to the site shall be provided via public streets. • Streets shall be designed per City of Sacramento
standards
• Street network shall be designed to maximize
developable area of the site
• Each building shall have access directly to a public
street or an access easement to a public street

3.7 PEDESTRIAN ACCESS
Sidewalks shall be provided from the street sidewalks to building entrances.
• 5’ wide
• 7’ wide when parking abuts sidewalk

3.8 BICYCLE ACCESS
Bicycle lanes will be provided and designed per Sacramento City Bicycle Master Plan.

3.9 STORMWATER
Stormwater management will be provided in the common detention basins designed to serve the entire development per the approved plans and studies. • Basins shall be sized and designed per Department of Utilities regulations • Department of Utilities shall review and approve stormwater plans and studies

3.10 PARCELS 5C – 5F
Due to the proximity of the residential subdivision to the east, these lots shall be subject to the following special restrictions.
• No truck courts, docks, or loading areas may face the east • Maximum building area shall not exceed
> 5C - 129,000 S.F.
> 5D - 100,000 S.F.
> 5E - 30,000 S.F.
> 5F - 30,000 S.F.
• 125-foot building setback along the east property lines of lots 5C, D, & F:
> The setback can include the following
» Passenger vehicle parking
» Berm
» Landscaping – evergreen trees and shrubs, in compliance with ALUC SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
11 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
SECTION 4

BUILDING DESIGN

4.1 FORM & MASSING
Buildings design is to ensure that all buildings are high- quality, will be similar in architectural character, and are constructed of durable materials. ASI’s buildings will
incorporate vertical and horizontal offsets and accents provide scale, balance, rhythm, and interest to the façade.

The design shall be appropriate for the scale and use of the buildings.
• Building walls over 200’ long shall have horizontal
offsets in the wall planes at a minimum of 2’
• Buildings shall have varying wall heights

4.2 ARCHITECTURAL FEATURES AND DETAILS
Architecture shall provide scale, balance, rhythm, and
interest to the façade by utilization of the following:
• score lines
• windows and glazing
• changes in finishes and colors

4.3 BUILDING ENTRANCES
Entrances should be emphasized to complement the architectural features and details by utilization of the following:
• vertical accents
• recessed entrances
• canopies
• windows

4.4 BUILDING HEIGHT
Buildings should not interfere with Sacramento International Airport (SMF). The architect or applicant shall complete and submit Federal Aviation Administration (FAA) Form 7460-1 to the Northern California office. City approval will not be granted until reviewed/approved by the FAA. Building height requirements should comply as follows:
• Maximum building height is 70’ except Parcel 5D, 5E and 5F which shall be limited to 40’ • Maximum building height for hotels in the Highway Commercial zone is 70’ • May be increased with City and FAA approval through a concurrent process SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
12 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
Materials
• Concrete
• Concrete block
• Stone
• Brick
• Cast stone
• Windows
• Accent materials such as metal
panels and other similar materials
Finishes
• Exterior insulation and finishing
systems (EIFS)
• Stucco
• Cement-based acrylic coating
Acceptable Colors
• Earth tones

4.5 MATERIALS AND FINISHES
Buildings should be constructed of durable and sustainable materials with acceptable materials as follows but not limited to the following:

4.6 SUSTAINABILITY
The buildings’ sustainable features shall include the following:
• Buildings shall meet CalGreen building codes
• The use of roof mounted solar panels are acceptable
but not required
• Cool roofs shall be required with a white roof membrane • The use of cool pavement is acceptable but not required

4.7 MECHANICAL EQUIPMENT
The buildings’ mechanical equipment shall meet the following criteria for screening:
• Screening shall only be required from adjacent
public streets
• When required, roof-mounted equipment (RTU) shall
be concealed behind parapets or architecturally
integrated screens
• Screening not required for rooftop mounted solar panels SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
13 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

4.8 CONCEPTUAL INDUSTRIAL BUILDING ELEVATIONS
N:\01 PROJECTS\WRIGHT BROTHERS AIRPORT\BUILDING 1\CAD_WBA BLDG 1\BUILDING 1_PLANNING BASE.DWG : 11/7/2022 12:52:20 PM : agerber Wright Brothers Airport - Building 1 · Rendering A · 11.07.2022 Wright Brothers Airport - Building 1 · Rendering B · 11.07.2022

SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
14 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
SECTION 5

LANDSCAPING/

SCREENING

5.1 PLANT PALETTE
The Landscape/Screening criteria is to provide
a framework for achieving a high-quality
landscape character for Airport South Industrial.

Plants should be selected for screening, shade,
growth habitat, and be heat/drought tolerance.
• Native and drought tolerant species
should be used
• Turf areas requiring irrigation should be
minimized
• Vegetation shall be compatible with airport
overflight zones

5.2 PLANTING AREAS/SCREENING
To establish standards for location for plants and establish screening requirements as follows:
• Landscape buffers
o From front, rear, and street side property lines 20’ minimum o From interior property lines 10’ minimum
• Truck court screening abutting a street (plants per 100’ of truck court):
o 3 overstory trees - minimum 2” caliper, 12’ tall
o 4 ornamental trees - minimum 1.5” caliper, 6’ tall
o 10 shrubs
• Truck court screening not abutting a street (plants per 100’ of truck court):
o 1 overstory tree - minimum 2” caliper, 12’ tall
o 2 ornamental trees - minimum 1.5” caliper, 6’ tall
o 5 shrubs
• Car parking areas
o Car parking areas shall provide 50% shading per Sacramento City Code • Trash compactors
o If truck court is not screened, compactors shall be screened by either landscaping or by metal panels, similar to screening of RTU
SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
15 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

5.3 SHADING OF CAR PARKING AREAS
To minimize heat gain from parking surfaces, parking areas shall be 50% shaded within 15 years after construction. Acceptable shading measures may include the following:
• Trees
• Covered parking
• Truck maneuvering and truck parking and trailer storage areas shall be exempt from tree shading requirements
• All shading must be consistent with the City of Sacramento parking lot tree shading standards

5.4 BUILDING FOUNDATION
Establish standards to frame the buildings and anchor it to the site as follows:
• Plantings shrubs between the parking lot and the building shall be located at building entrances, excluding emergency exits and maintenance doors and along the building façade

5.5 GROUND-MOUNTED EQUIPMENT
Shall be screened by landscaping, fences, or walls
o Pre-cast concrete walls
o Split-face masonry
o Stone or stone veneer
o Brick
o Tubular steel
o Wrought iron
o Similar high-quality materials

5.6 FENCES/WALLS
The fences/walls principles are intended to uniform design, color, and materials throughout the development. Fences/walls are permitted for screening or security purposes and may be allowed in front and side yard setbacks or adjacent to streets.
• Fences/walls shall consist of high-quality materials compatible with the building’s architecture and the site’s landscape design.

Acceptable fencing materials as follows but not limited to:
• Gates for pedestrian and vehicular access to restricted areas that are visible from public areas (i.e., parking lots, drive aisles) shall be constructed of solid durable material, tubular steel, or similar material
• Fences/walls shall be limited to a maximum height of eight feet (8’) unless allowed by the City by issuance of a deviation SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
16 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

5.7 IRRIGATION
Sites shall minimize the use of irrigation systems and select heat/ drought tolerant plants.
• Irrigation systems shall meet water efficient landscape requirements, Chapter 15.92 Sacramento, California City Code SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
17 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
SECTION 6

SIGNAGE
Establishes sign standards for signs on the
Light Industrial and Highway Commercial Uses

6.1 IDENTIFICATION SIGN
To identify the Airport South Industrial PUD
• Two signs allowed along I-5 located as shown in the
Schematic Plan
• Up to 70’ tall
• Sign area is 925 SF per side

EAST SIGN - EAST AND WEST SIGN FACE SHALL BE THE SAME ON BOTH SIDES

WEST SIGN - WELCOME TO SACRAMENTO WILL ONLY BE ON THE WEST SIDE OF THE SIGN

WELCOME TO

SACRAMENTO
SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
18 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES

6.3 ALL OTHER SIGNS
• Ground mounted Monument signs – Based on the underlying zone are subject to the requirements in Sacramento City Code

15.148
• Attached signs – Based on the underlying zone are subject to the requirements in Sacramento City Code 15.148

6.2 CONSTRUCTION
• General Structure: Fab. Aluminum texcoted and painted • Tenant Cabinets: Fab. Aluminum painted
o Faces – Aluminum painted
o Graphics LED illuminated
o Illumination – White LED lighting Aluminum panel with plexiglass logo and letters
• “Airport South” ID Sign: LED illuminated channel letters (26” tall) o Faces – 3/16” acrylic with 1st surface vinyl overlays o Trim Cap – 3/4”
o Returns – 3” deep – aluminum pre-finished
o Illumination – White LED lighting
o Mounting – Attached flush to cabinet face
• Masonry Base Cladding
o Aluminum base with stone veneer to match building finishes SACRAMENTO : CALIFORNIA
ASI-DeSIgnCrIterIAMAnuAl-050525
19 AIRPORT SOUTH INDUSTRIAL

PUD GUIDELINES
SECTION 7

LIGHTING
Establishes fixture type, mounting height,
and light levels. All light is subject to review
and approval by the City.

7.1 FIXTURES
• LED fixtures - downward facing

7.2 MOUNTING HEIGHT
• Up to 30’ mounting for pole and building mounted fixtures • Up to 20’ for pole and building mounted fixtures located within 350’ of the east property line closest to Westlake Subdivision

7.3 LIGHT LEVELS
• Illumination
A. Minimum light levels are an average of 1.0 foot-candles for parking areas B. Minimum light levels are 0.25 foot-candles for pedestrian areas C. Light levels are 0 foot-candles at property lines
RESOLUTION NO.

Adopted by the Sacramento City Council on

November 18, 2025

ADOPTING THE AIRPORT SOUTH INDUSTRIAL PUBLIC FACILITIES FINANCE PLAN (P21-017)

BACKGROUND
A. On June 26, 2025, the City Planning and Design Commission held a noticed public hearing on the Airport South Industrial Annexation Project and the Airport South Industrial Public Facilities Financing Plan in accordance with Government Code Sections 65353 and 65453, received and considered evidence, and forwarded to the City Council a recommendation to adopt the Airport South Industrial Annexation Project and the Airport South Industrial Public Facilities Finance Plan.

B. On November 18, 2025 the City Council conducted a public hearing that was noticed in accordance with Government Code sections 65355 and 65453 and Sacramento City Code section 17.812.030, at which it received and considered evidence concerning the Airport South Industrial Annexation Project and Airport South Industrial Public Facilities Finance Plan.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:

Section 1. Based on the verbal and documentary evidence received at the hearings on the Airport South Industrial Annexation Project and the Airport South Industrial Public Facilities Finance Plan, the City Council finds that adoption of the Airport South Industrial Public Facilities Finance Plan would achieve the following:

1. Implement the City’s 2040 General Plan goal to ensure adequate and funded City services are provided and built to appropriate standards prior to annexation;

2. Establish a program of implementation measures, including regulations, programs, public works projects and financing measures for funding the backbone infrastructure and public facilities required to implement the Airport South Industrial Annexation Project, including identifying existing and potential future development impact fees, public financing mechanisms, and federal, state and local funding programs;

3. Identify the development timing for implementation of the backbone infrastructure and public facilities improvements needed for the initial phase and buildout conditions consistent with the Airport South Industrial Annexation Project; and

4. Establish the policy framework for future financing of the required backbone infrastructure and public facilities improvements needed to implement the Airport South Industrial Annexation Project.

Section 2. The City Council hereby adopts the Airport South Industrial Public Facilities Finance Plan as set forth in Exhibit A.

Section 3. Exhibit A is a part of this Resolution.

Table of Contents:

Exhibit A – Airport South Industrial Public Facilities Finance Plan

Draft Report
Airport South Industrial
Finance Plan
P
repared for:

City of Sacramento
P
repared by:

Economic & Planning Systems, Inc. (EPS)
June 2025
E
PS #222006

Table of Contents
Introduction ................................................................................... 1 Land Use ........................................................................................... 3 Purpose of the Finance Plan .................................................................. 3 Summary .......................................................................................... 6 Organization of the Report ................................................................. 12 Land Uses .................................................................................... 13 Description of Land Uses .................................................................... 13 Backbone Infrastructure and Public Facilities Costs ........................... 14 Summary ........................................................................................ 14 Definitions of Backbone Infrastructure and Public Facilities ...................... 15 Backbone Infrastructure .................................................................... 15 Public Facilities ................................................................................. 18 Backbone Infrastructure and Public Facilities Financing Strategy ......... 20 Financing Strategy and Funding Sources Overview ................................ 20 Detailed Sources of Funding ............................................................... 21 Land-Secured Financing ..................................................................... 27 Phasing and the Financing Strategy ..................................................... 28 Feasibility of the Finance Plan ......................................................... 32 Description of Static Feasibility Analyses .............................................. 32 Total Backbone Infrastructure and Public Facilities Cost Burden ............... 33 Total Taxes and Assessments ............................................................. 37 Maintenance CFD .......................................................................... 41 Implementation ............................................................................ 43 ASI Plan Area Fee Programs ............................................................... 44 Appendices
Appendix A: Airport South Industrial Capital Improvement Program Appendix B: Airport South Industrial Estimated Fee Revenue from Existing and Proposed Fee Programs
Appendix C: Airport South Industrial and Metro Air Park Financial Feasibility Comparison

List of Maps
Map 1-1. Airport South Industrial Regional Location ................................. 2 Map 1-2. Land Use Plan ....................................................................... 5 List of Tables
Table 1-1. Land Use Summary ................................................................ 4 Table 1-2. Backbone Infrastructure and Public Facilities Cost Summary ...................................................................... 7 Table 1-3. Backbone Infrastructure and Public Facilities Costs and Sources of Funding .................................................. 8 Table 1-4. Estimated Sources and Uses Backup for
Backbone Infrastructure.......................................................... 9 Table 3-1. Proposed ASI Public Land Acquisition DA Fee ........................... 19 Table 4-1. Proposed ASI Backbone Infrastructure DA Fee ......................... 24 Table 4-2. Proposed ASI Specific Plan Reimbursement DA Fee ................... 25 Table 4-3. Estimated Mello-Roos CFD Bond Sizing .................................... 29 Table 4-4. Estimated Bond Proceeds ...................................................... 30 Table 5-1. Estimated Cost Burden per 1,000 Bldg. Sq. Ft. (2 pages) ........... 34 Table 5-2. Cost Burden Comparison with Metro Air Park ........................... 36 Table 5-3. Estimated Taxes and Assessments per 1,000 Bldg. Sq. Ft. ......... 39 Table 5-4. Taxes and Assessments Comparison with Metro Air Park ............ 40 Table 6-1. City Estimated Maintenance CFD Maximum Annual Special Tax Rate .................................................................. 42

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 1
Introduction
The Airport South Industrial Project (ASI or Project) is located in an area in unincorporated Sacramento County (County). The site encompasses a total of about 437 undeveloped acres (excluding approximately 38 acres of Caltrans 1-5 Fee Title Right of Way) that are currently used for agricultural purposes.1 The Project location is directly south of Metro Air Park (MAP) and Interstate 5 (I-5), southwest of the Northlake development in the City of Sacramento (City), and west of the North Natomas Community Plan in the City.

Surrounding development in the area includes Sacramento International Airport and adjacent commercial development sites; Metro Air Park; Amazon SMF-1 Fulfillment Center; Life Storage Facility; Westlake and Northlake subdivisions; West Drainage Canal; Paso Verde School; and other undeveloped agricultural land. Map 1-1 shows the regional location of the Project.

The Project site is situated outside of the City’s Sphere of Influence (SOI). Before construction activity can begin, the Project will require discretionary approval by the Sacramento Local Agency Formation Commission (LAFCo) of an SOI Amendment (SOIA) that would expand the Sacramento SOI to include the project site. Subsequent discretionary approval would annex the project site into the City.

This ASI Public Facilities Finance Plan (Finance Plan) presents a financing strategy for backbone infrastructure and public facilities (as defined herein) based on improvement requirements, estimated costs, and existing and proposed funding sources. It details proposed new ASI development impact fee programs that will provide funding for ASI backbone infrastructure and public facilities, required public land acquisition, and required specific plan entitlement costs.

1 City of Sacramento Community Development Department; “Notice of Preparation of Environmental Impact Report and Scoping Meeting for the Airport South Industrial Project (P21-017); March 4, 2022.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 3
Land Use
As shown in Table 1-1, the proposed project will encompass development of 311.3 net developable acres.2 Applicant-sponsored warehouse distribution uses make up the majority of the developable net acreage (235.6 acres), while future industrial uses owned by non-participating landowners make up 62.3 net acres.

Applicant-sponsored highway commercial uses, including restaurant, fueling station, and hotel uses, constitute the remaining 13.4 net acres of developable land. Map 1-2 shows a Project land use plan.

The total planned development will result in approximately 5.7 million square feet of building area at buildout. For reference, Table 1-1 also shows the maximum allowable building area under the California Environmental Quality Act (CEQA).

The CEQA maximum square footage is not used for the financial estimates in this Finance Plan.

Purpose of the Finance Plan
The Finance Plan identifies all backbone infrastructure improvements, public facilities, and associated administrative costs needed to serve the proposed land uses. This Finance Plan describes the backbone infrastructure and public facilities necessary to serve the Project, estimated construction costs for the improvements, and financing mechanisms that could be used to ensure construction of the improvements in a timely manner. The Finance Plan is designed to achieve the following goals:
• Identify ways to finance construction of public infrastructure and facilities through public and private financing.
• Use existing City, Sacramento Area Sewer District (SacSewer), and special district fee programs to the extent possible.
• Identify Project-specific fees (ASI Plan Area Fees) to fund all or a portion of major backbone infrastructure and other public facilities not included in existing fee programs. These fees include three proposed new fee programs to be based on Development Agreement (DA) requirements, as summarized below:
‒ ASI Backbone Infrastructure DA Fee Program: funds backbone infrastructure.
‒ ASI Public Land Acquisition DA Fee Program: funds public land acquisition. ‒ ASI Specific Plan Reimbursement DA Fee Program: funds specific plan entitlement costs.

2 The net developable acreage includes developable land, not including public facilities and internal roads.

DRAFT
Table 1-1
Airport South Industrial Public Facilities Finance Plan Land Use Summary
Area/Land Use Gross [2] Net FAR [3]
Bldg.

Sq. Ft. [4]
Applicant Sponsored (NorthPoint / AKT Investments)
Warehouse Distribution 243.8 235.6 0.46 4,688,440 5,204,500 Highway Commercial
Restaurant 7.6 6.4 0.05 13,650 16,700
Fueling Station / Carwash 3.8 3.0 0.05 6,690 8,100
Hotel 4.4 4.0 0.35 60,600 73,400
Subtotal 15.8 13.4 0.14 80,940 98,200
Public Facilities Roadways
Retention/Detention Basins 89.1 86.0 - - -
Buffer 2.3 2.3 - - -
Sewer Pump Station 0.5 0.5 - - -
Drainage Pump Station 0.4 0.4 - - -
Subtotal 92.3 89.2
Internal Roadways 1.6 15.3 - - -
Total 353.5 353.5
- 4,769,380
5,302,700
Future Industrial (non-participating owners) [6]
Warehouse Distribution
Cayocca 64.3 48.2 0.35 735,238 1,088,200
Campbell 6.5 4.9 0.35 74,324 110,000
Isgur 4.6 3.5 0.35 52,599 77,900
Patel 0.7 0.5 0.35 8,004 11,900
Caltrans Remnant 6.9 5.2 0.35 78,898 116,800
Subtotal 83.0 62.3 0.35 949,064 1,404,800
Public Facilities (25% for Detention, Buffer, R/W) - - - Cayocca - 16.1
Campbell - 1.6
Isgur - 1.2
Patel - 0.2
Caltrans Remnant - 1.7
Subtotal -

20.8 Total 83.0 83.0 - 949,064
1,404,800
Summary
Developable
Warehouse Distribution - Applicant Sponsored 243.8 235.6 0.46 4,688,440 5,204,500 Highway Commercial - Applicant Sponsored 15.8 13.4 0.14 80,940 98,200 Warehouse Distribution - Future Industrial 83.0 62.3 0.35 949,064 1,404,800 Subtotal 342.6 311.3 - 5,718,444
6,707,500
Public Lands (Public Facilities and Internal Roads) 93.9 125.3 - - -
Total 436.5 436.5 - 5,718,444
6,707,500
Caltrans I-5 Fee Title Right of Way [7] 37.9 37.9 - - - Total Including Caltrans Right of Way 474.4 474.4 - 5,718,444 6,707,500
Source: Wood Rodgers, Inc; NorthPoint Development
[1] F
or Applicant Sponsored land, gross and net acres are based on the site plan. For Future Industrial land, net acres are estimated as
75% of gross acres.
[2] F
or Future Industrial land, gross acres are "modified gross acres" net of proposed roadways on the site plan. [3] F
AR calculated from net acres and bldg. sq. ft. for Applicant Sponsored land. Assumed at 0.35 for Future Industrial land. [4] Squar
e feet for building coverage based on site plan for Applicant lands and calculated using average FAR for Future Industrial land. [5] Appl
ication of 11% factor applied to warehouse lands and 21% to retail/commercial lands to arrive at CEQA maximum square feet. [6] F
uture Industrial land net acres assume 25% loss to public facilities. Building square feet assume FAR of 0.35 applied to net acres. [7] C
altrans I-5 Fee Title Right of Way lands are mainline I-5 and do not include the I-5 Caltrans Remnant Property.

Planned DevelopmentAcres [1] CEQA
Maximum
Bldg. Sq. Ft. [5]
Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 4 MAP 1-2. LAND USE PLAN
Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 6
• Make maximum use of “pay as you go” mechanisms.
• Make appropriate use of municipal debt–financing mechanisms. • Build in flexibility to respond to market conditions. • Provide developer funding for appropriate facilities.

Summary
Overview of Financing Strategy
Buildout of the Project will require construction of roadway, sewer, water, and drainage improvements and contributions to construction of other public facilities, such as schools and parks. Cost estimates for required backbone infrastructure and other public facilities have been derived from a combination of engineering data provided by Wood Rodgers and other data obtained from the City, Economic & Planning Systems, Inc. (EPS), the Project developer, and other sources. See Appendix A for the detailed Capital Improvement Plan prepared by Wood Rodgers.

Table 1-2 summarizes the total cost of backbone infrastructure and other public facilities required to serve the Project. At buildout, backbone and other public facilities are estimated to cost approximately $92.3 million. This figure does not include the costs of in-tract improvements, which are anticipated to be financed privately.

Table 1-3 shows the financing sources used to fund backbone infrastructure and other public facilities for the Project. Table 1-4 shows additional detail and backup for the backbone infrastructure. As shown, the major infrastructure required for development to proceed in the Project is anticipated to be funded through a combination of public and private financing. Fees (i.e., City, other agencies, and ASI Plan Area Fees) will be used to fund required facilities when possible. The City and other agencies serving the Project have existing development impact fee programs to fund a portion of the sewer and water infrastructure included in this Finance Plan, as well as required contributions to the parks and school facilities. For most of the backbone infrastructure, the developer will construct the facilities and may be reimbursed through Mello-Roos Community Facilities District (CFD) bond proceeds and appropriate fee program credits and reimbursements if such arrangements are approved by the City and the appropriate reimbursement or credit agreement is executed.

DRAFT
Table 1-2
Airport South Industrial Public Facilities Finance Plan Backbone Infrastructure and Public Facilities Cost Summary (2024$) Item
Estimated
Cost [1]
Backbone Infrastructure [1]
Roadways [2] $32,260,599
Sewer $16,835,648
Water $5,701,189
Storm Drainage $31,113,504
Subtotal $85,910,940
Public Facilities
Parks [3] $1,285,577
Schools [3] $4,460,386
Public Land (Sewer and Drainage Pump Stations) $674,550 Subtotal $6,420,513
Total $92,331,452
Source: City of Sacramento; Wood Rodgers, Inc.; EPS
[1] See Appendix
A for detailed CIP.
[2] Roadw
ay cost includes offsite roadways for which ASI has a fair share obligation. The total c
ost includes ASI's fair share as well as the portion attributable to other benefitting pr
ojects. See Table 1-4.
[3] Par
ks and schools costs estimated as fee revenue generated from the City Park developm
ent fees and the Natomas Unified School District development fees.

See T
able B-1.

Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 7 DRAFT
Table 1-3
Airport South Industrial Public Facilities Finance Plan Backbone Infrastructure and Public Facilities Costs and Sources of Funding (2024$) ASI Fee Program
Reimbursements
Item
Estimated
Cost [1] [2]
Backbone
Infrastructure
DA Fee [3]
Public Land
Acquisition
DA Fee
City Fee
Programs SacSewer
Private
Developer
Metro Air Park
Financing Plan
(Sac County) [3]
Backbone Infrastructure
Roadways $32,260,599 $32,260,599 - - - - - ($1,495,808) Sewer $16,835,648 $1,383,527 - - $12,451,745 - $3,000,375 - Water $5,701,189 $3,144,289 - - - - $2,556,900 -
Storm Drainage $31,113,504 $6,356,300 - - - - $24,757,205 - Subtotal $85,910,940 $43,144,715 - - $12,451,745 - $30,314,480 ($1,495,808) Public Facilities
Parks $1,285,577 - - $1,285,577 - - - -
Schools $4,460,386 - - - - $4,460,386 - -
Public Land (Sewer and Drainage Pump Stations) $674,550 - $674,550 - - - - - Subtotal $6,420,513 - $674,550 $1,285,577 - $4,460,386 - - Total $92,331,452 $43,144,715 $674,550 $1,285,577 $12,451,745 $4,460,386 $30,314,480 ($1,495,808) Source: City of Sacramento; Wood Rodgers, Inc.; EPS
[1] See T
able 1-4 for more detail on backbone infrastructure costs. See Table 3-1 for public land cost calculation. Parks and schools costs calculated as revenue generated through City
and school district fee programs (see Table B-1).
[2] Roadway
cost includes ASI construction obligations for regional roadways for which ASI and other benefiting projects have a fair share obligation. The total estimated cost includes ASI's
fair share as well as the portion attributable to other benefiting projects (i.e. Metro Air Park). Future reimbursements from Metro Air Park to the ASI Fee have been identified based on deduc
tion of the ASI fair share percentage. For the fair share calculations, see the detailed roadway summary (Table 2) in Appendix A). [3] T
he proposed ASI plan area fee program includes the construction obligation for ASI's regional roadway costs as well as regional roadway costs that are reimbursable from the Metro Air Park (
MAP) plan area fee program. These costs are included in the proposed ASI fee program because they are triggered very late in the MAP fee program and may not be reimbursed to the ASI fee pr
ogram for many years.

Proposed ASI Plan Area Fees
Natomas Unified
School District
Fee Program
Funding Sources
Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 8 DRAFT
Table 1-4
Airport South Industrial Public Facilities Finance Plan Estimated Sources and Uses Backup for Backbone Infrastructure (2024$) ASI Fee Program
Reimbursements
Item
Estimated
Cost [1] [2]
Proposed
ASI Plan Area
Fees [3] SacSewer [4]
Water
Dev. Fee
(City of Sac.)
Private
Developer Total
Metro Air Park
Financing Plan
(Sac County) [2]
Backbone Roadways
Onsite Roadways $29,094,984 $29,094, 984 - - - $29,094,984 ($292,086) Offsite Roadways [3] $3,165,615 $3,165, 615 - - - $3,165,615 ($1,203,722) Subtotal $32,260,599 $32,260,599 - - - $32,260,599 ($1,495,808) Backbone Sewer
Onsite Sewer
Sewer Pump Station $4,230,023 $423, 002 $3,807,020 - - $4,230,023 - Trunk Gravity Sewer $459,000 $45,900 $413,100 - - $459,000 - Collector Gravity Sewer $3,000,375 - - - $3,000,375 $3,000,375 - Subtotal $7,689,398 $468,902 $4,220, 120 - $3,000,375 $7,689,398 - Offsite Sewer
Sewer Force Main (onsite & offsite to SASD Interceptor) $9,146,250 $914,625 $8, 231,625 - - $9,146,250 - Subtotal Sewer $16,835,648 $1,383,527 $12,451,745 - $3,000,375 $16,835,648 - Backbone Water
Onsite Water Transmission Main $1,778,629 $1,778,629 - TBD - $1,778,629 - Onsite Water Distribution Mains $3,922,560 $1,365,660 - - $2,556,900 $3,922,560 - Subtotal $5,701,189 $3,144,289 - - $2,556,900 $5,701,189 - Backbone Drainage - Onsite
Detention Basins $13,346,580 - - - $13,346,580 $13,346,580 - Detention Basin Gravity Connection $524,300 $524,300 - - - $524,300 - Pump Station $5,832,000 $5,832, 000 - - - $5,832,000 - Trunk Drainage $4,814,269 - -
-
$4,814,269 $4,814,269 -
Site Import Material $6,596,357 - - - $6,596,357 $6,596,357 - Subtotal $31,113,504 $6,356,300 - - $24,757,205 $31,113,504 - Total $85,910,940 $43,144,715 $12,451,745 - $30,314,480 $85,910,940 ($1,495,808) Source: City of Sacramento; Wood Rodgers, Inc.; EPS
[1] Inc
ludes 35% soft costs and contingencies. See Appendix A for detailed CIP costs. [2] Of
fsite roadway cost includes roadways for which ASI has a fair share obligation. The total cost includes ASI's fair share cost as well as the cost attributable to other benefitting pr
ojects for roads for which ASI has construction responsibility. [3] T
he proposed ASI plan area fee program includes ASI's fair share of regional roadway costs as well as regional roadway costs that are reimbursable from the Metro Air Park plan ar
ea fee program. These costs are included in the proposed ASI fee program because they are triggered very late in the MAP fee program and may not be reimbursed to the ASI f
ee program for many years. When the City implements the ASI fee program, it may decide to exclude the portion of costs to be funded by other plan areas. [4] C
osts covered by SacSewer fees calculated as 90% of the total costs to account for lower contingencies and soft costs allowed for improvements in the SacSewer fee program.

Funding Sources
Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 9 Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 10
It is expected that costs will change over time. As described in Chapter 7, if costs or land uses change significantly, or if other funding becomes available, the proposed new ASI Plan Area Fee programs will need to be updated accordingly.

Bond financing likely will be needed to help fund items required during the early years of development in the Project, as well as at other strategic times when accumulated development impact fees or other proposed public funding are insufficient to fund the necessary facilities required for new development in a timely manner. Debt financing, however, will be limited to prudent levels and shall be consistent with federal, State of California (State), and City requirements and guidelines.

Financing Strategy Implementation
The strategy of the Finance Plan is detailed below:
• Fully fund or construct all backbone infrastructure and other public facilities needed to serve the entire Project.
• Use, when available, existing City and other agency fee programs to fund backbone infrastructure and other public facilities.
• Create the ASI Backbone Infrastructure DA Fee Program to help fund backbone infrastructure not funded through other public financing mechanisms or private funding sources.
• Create the ASI Public Land Acquisition DA Fee Program to fund the acquisition of public land required for various uses, such as pump stations. • Create the ASI Specific Plan Reimbursement DA Fee Program to fund specific plan entitlement costs.
• Identify future beneficiaries of ASI infrastructure and establish appropriate funding mechanisms.
• Phase backbone infrastructure to ensure it is constructed when necessary for new development and when funds are available to construct such public improvements.
• Permit the use of land-secured bond debt financing programs to provide up- front financing for necessary backbone infrastructure and other public facilities when other funding sources are unavailable to provide sufficient funds concurrent with development demands.
• Ensure financing mechanisms are flexible to accommodate different combinations of infrastructure timing and funding requirements.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 11
The City will administer implementation of the Finance Plan, and such administration is anticipated to include the following actions:
• When appropriate, update relevant existing citywide fee programs (such as the Transportation Development Impact Fee (TDIF), Park Impact Fee (PIF) or Water System Development fee) to reflect updated Project land uses, facilities, costs, or revenue sources.
• Implement the ASI Backbone Infrastructure DA Fee Program, the ASI Public Land Acquisition DA Fee Program, and the ASI Specific Plan Reimbursement DA Fee Program.
• Form a Mello-Roos CFD for infrastructure.
• Form a Mello-Roos CFD for maintenance of streetscapes, utilities, signage, monumentation and other amenities.

Depending on the timing of other Project entitlement documents and related public hearing process, the Finance Plan may need to be revised to integrate one or more of the following items:
• Additional City comments/requirements for the Finance Plan. • Changes to the Tentative Master Parcel Map and accompanying land uses. • Additional Project comments from the City and affected stakeholders. • Development of the Mitigation Monitoring and Reporting Program (MMRP). • Local Agency Formation Commission (LAFCO) municipal services review and plan for services.
• Development of Project Conditions of Approval.
• Preparation of a Project DA.

After its approval, the Finance Plan will need to be updated periodically to account for changes in land uses, infrastructure improvements and costs, and funding sources. Changes in the Finance Plan should be re-evaluated within the context of the overall financing strategy to ensure required funding is available when needed. Consistent with prior City practices, a Finance Plan update will require an amendment to the Development Agreement.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 12
Organization of the Report
In addition to this introduction and summary chapter, the Finance Plan contains the following chapters and appendices:
• Chapter 2 summarizes the proposed land uses.
• Chapter 3 identifies the backbone infrastructure and other public facility costs.
• Chapter 4 identifies the infrastructure financing strategy and likely funding sources.
• Chapter 5 evaluates the financial feasibility of the Finance Plan. • Chapter 6 identifies the services and ongoing operation and maintenance cost funding sources.
• Chapter 7 outlines implementation and administration of the Finance Plan. • Appendix A contains the Backbone Infrastructure Capital Improvement Program prepared by Wood Rodgers.
• Appendix B contains an estimate of the revenue generated by the Project at buildout from all existing and proposed building and development impact fee programs.
• Appendix C details a cost burden comparison and a special taxes and assessments comparison between ASI and Metro Air Park development.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 13
Land Uses
Description of Land Uses
ASI is located in an unincorporated area of the County. The ASI site encompasses a total of about 437 undeveloped acres (excluding approximately 38 acres of Caltrans 1-5 Fee Title Right of Way) that are currently used for agricultural purposes.3 As shown in Map 1-1 in Chapter 1, the Project is located directly south of MAP and I-5, southwest of the Northlake development in the City, and west of the North Natomas Community Plan in the City.

Surrounding development in the area includes Sacramento International Airport and adjacent commercial development sites; MAP; Amazon SMF-1 Fulfillment Center; Life Storage Facility; Westlake and Northlake subdivisions; West Drainage Canal; Paso Verde School; and other undeveloped agricultural land.

The Project site is situated outside of the City’s SOI. Before construction activity can begin, the Project will require discretionary approval by the Sacramento Local Agency Formation Commission (LAFCo) of an SOI Amendment (SOIA) that would expand the Sacramento SOI to include the project site. Subsequent discretionary approval would annex the project site into the City.

As shown in Table 1-1 in Chapter 1, the proposed project will encompass development of 311.3 net developable acres.4 Public facilities and internal roads will account for another 125.3 net acres. Applicant-sponsored warehouse distribution uses make up the majority of the developable net acreage (235.6 acres), while future industrial uses owned by non-participating landowners make up 62.3 net acres. Applicant-sponsored highway commercial uses, including restaurant, fueling station, and hotel uses, constitute the remaining 13.4 net acres of developable land. Map 1-2 in Chapter 1 shows the proposed Project land use plan.

The total planned development will result in 5.7 million square feet of building area at buildout. For reference, the maximum allowable building area under the California Environmental Quality Act (CEQA) is around 6.7 million square feet.

The CEQA maximum square footage is not used for the financial estimates in this Finance Plan.

3 City of Sacramento Community Development Department; “Notice of Preparation of Environmental Impact Report and Scoping Meeting for the Airport South Industrial Project (P21-017); March 4, 2022.
4 The net developable acreage includes developable land, not including public facilities and internal roads.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 14
Backbone Infrastructure and Public
Facilities Costs
Summary
Buildout of the Project will require construction of roadway, sewer, water, and storm drainage infrastructure, as well as a variety of other public facilities. This Finance Plan identifies those backbone infrastructure and public facility requirements that benefit the Airport South Industrial Park, including the following improvements:

Backbone Infrastructure:
• Roadways
• Sanitary Sewer
• Storm Drainage
• Potable Water

Public Facilities:
• Parks
• School Facilities
• Public Lands (Sewer and Drainage Pump Stations)
This chapter discusses the required infrastructure and public facilities for the Project and provides the estimated construction costs (in 2024$) associated with each category. The backbone infrastructure requirements are based on the Airport South Industrial Capital Improvement Plan prepared by Wood Rodgers, which is attached as Appendix A to this report. The parks and schools cost estimates are based on estimated fee revenue from existing development impact fee programs that would be generated by the Project’s planned uses. The public land acquisition requirements and costs were provided by the developer and the City. The cost estimates included herein have been prepared by a qualified engineering consultant based on the best available information. Cost estimates are typically reviewed by City and other agency public works or engineering staff to ensure they reflect appropriate opinions of probable cost. As the Project continues through entitlement and into the development stages, updated cost information will be available (based on more detailed improvement plans) and, when appropriate, can be used to update the funding mechanisms described in this Finance Plan.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 15
Table 1-2 in Chapter 1 summarizes the estimated backbone infrastructure and public facilities costs, which total approximately $92.3 million. Nearly 70 percent of the costs are attributable to roadway and storm drainage improvements.

Definitions of Backbone Infrastructure
and Public Facilities
This Finance Plan will use the following definitions to more precisely define these terms:
• Backbone Infrastructure: This term includes most of the essential public service-based items that are underground or on the surface. It includes roads, water, sewer, drainage, recycled water, levees, erosion control, and dry utilities. Backbone infrastructure is sized to serve numerous individual development projects in the Project and in some cases serves the broader region’s development areas.
• Public Facilities: This group of items provides amenities to the Project or infrastructure support. In this Finance Plan, these facilities include parks, schools, and public land used for sewer and drainage pumpstations. • Facilities: This term is used in the Finance Plan to generically include a combination of backbone infrastructure and public facilities when a precise breakdown is not required.
• Subdivision Improvements include in-tract improvements (roads, sewer, water, drainage, recycled water, erosion control, and dry utilities) that are in or adjacent to individual subdivision projects. These improvements are funded privately, and the costs of these improvements are not estimated in the Finance Plan.

Backbone Infrastructure
Roadways
Project development will generate vehicular trips inside and outside of the Project, which will result in the need for additional roadway capacity to maintain adequate levels of service. The proposed roadway system consists of major arterials and collectors that work together to provide convenient and safe access to all areas in the Project and adequate off-site access to proposed development in the Project.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 16
Onsite Improvements
The on-site roadways and intersections listed below are included in this Finance Plan. The roadway improvements generally include construction of the full roadway, including all travel lanes, medians, and frontage. The intersection improvements include intersection construction, widening, and signalization:
• Metro Air Parkway from the I-5 Metro Air Parkway Interchange south to ASI Drive.
• Airport South Industrial Drive, including roundabout and drain bridge/culvert construction.
• NAPOTS Connector Road—ASI Drive to South Bayou.
• Power Line Road—South Bayou to the project south boundary. • Power Line Road—I-5 south to South Bayou Road.
• South Bayou Road (road abandonment).
• South Bayou Road (Campbell West Pl. to east project boundary). • Intersection improvements: Metro Air Parkway at Airport South Industrial Drive; Power Line Road at Airport South Industrial Drive; Power Line Road at South Bayou (west boundary).

Offsite Improvements
Off-site roadway requirements include improvements to the Metro Air Parkway interchanges and the City of Sacramento intersections listed below:
• Metro Air Parkway Interchange at Northbound I-5 Off Ramp. • Metro Air Parkway Interchange at Southbound I-5 On Ramp. • Del Paso Road and El Centro Road Intersection.
• Del Paso Road and East Commerce Way Intersection.

Cost Summary
As summarized in Table 1-4 in Chapter 1, the on-site roadway costs total approximately $29.1 million, and off-site roadway costs total approximately $3.2 million. It is anticipated that all of the roadway costs will be funded by the proposed ASI Backbone Infrastructure DA Fee Program, with an estimated $292,000 in on-site costs and $1.2 million in off-site costs expected to be reimbursed from the Metro Air Park Financing Plan.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 17
Roadway Improvement Timing
Refinements to the required roadway improvements and timing are further described in the Development Agreement for the Project. These refinements include the need for additional buildout analysis to address the timing and extent of the transportation improvements and/or the fair share contributions for the Project.

Sanitary Sewer
SacSewer will serve the Project with sanitary sewer collection and treatment. The Finance Plan includes backbone sanitary sewer improvements, including an on- site sewer pump station, on-site trunk and collector gravity sewer, and an off-site sewer main. As summarized in Table 1-4 in Chapter 1, sanitary sewer improvement costs total approximately $16.8 million, with $7.7 million in on-site sewer improvement costs and the remaining $9.1 million allocated to off-site improvements.

This Finance Plan is based on the assumption the Project is eligible for SacSewer credits or reimbursements for sanitary sewer improvements included in the SacSewer fee program. Approximately $1.4 million of sewer pump station, trunk gravity sewer, and off-site sewer costs will be funded through the proposed ASI Backbone Infrastructure DA Fee Program with the remaining $12.5 million funded through the SacSewer fee programs. The estimated $3.0 million of collector gravity sewer costs will be funded by private developers.

Water
The City will provide water service to the Project upon its connection to the existing water supply and distribution network. The City determines placement of new water distribution facilities as development plans are formulated. Provision of water service to the Project land uses will require the construction of on-site water transmission and distribution facilities. No off-site improvements will be required to provide water service to the Project.

This Finance Plan includes on-site 30-inch transmission lines that will connect to City facilities for water delivery, and 12-inch distribution lines that will deliver water to Project land uses.

As summarized in Table 1-4 in Chapter 1, water improvement costs for the Project total approximately $5.7 million. The water distribution mains cost is currently proposed to be funded through $3.1 million in ASI Backbone Infrastructure DA Fee Program funds and $2.6 million from private developer funds. Future coordination with the City Department of Utilities (DOU) and the City Manager’s office will determine whether City water development fees will Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 18
fund up to $1.8 million (for conversion of a County transmission main to a City transmission main) of the $5.7 million total backbone water infrastructure costs.

Storm Drainage
Backbone storm drainage infrastructure serving the Project is designed to meet City design criteria. Stormwater flows generated in the Project generally will drain to proposed detention basins at multiple locations throughout the proposed Project development and then will be pumped to trunk line facilities along Metro Air Parkway and Airport South Industrial Drive. The detention basin is designed to accommodate the Project’s flood control and stormwater quality treatment requirements. The storm drainage costs also include site import material costs.

As summarized in Table 1-4 in Chapter 1, on-site drainage improvement costs total approximately $31.1 million. This total amount is proposed to be funded through $6.4 million in ASI DIF funds and the remaining $24.8 million from private developer funds.

Public Facilities
Parks
The Project land use plan does not specify any specific park sites or projects, so the funds are used as part of a broader impact fee program at the current time. The total park facilities cost of $1.3 million (see Table 1-3 in Chapter 1) is estimated as the total revenue generated through the City Park Impact Fee Program and will be used to fund parks facilities throughout the City.

Schools
The Project is located in the Natomas Unified School District (NUSD). Payment of the existing NUSD school facilities fees fulfills the Project’s obligation for school facility construction. The total school facilities cost of $4.5 million (see Table 1-3 in Chapter 1) is estimated as the total revenue generated by payment of the NUSD school facilities fees and will be used to fund NUSD facilities.

Public Land
The Project will include public land dedicated for sewer and drainage pump stations. The public land acquisition will total about 1.5 acres, with acreage split evenly between the sewer and drainage pump facilities. As detailed in Table 3-1, the public land acquisition cost totals approximately $675,000 and will be funded entirely out of the proposed ASI Public Land Acquisition DA Fee.

DRAFT
Table 3-1
Airport South Industrial Public Facilities Finance Plan Proposed ASI Public Land Acquisition DA Fee (2024$)
Item Formula Amount
Net Developable Acres [1] 311.3
Public Land Acres
Sewer Pump Station 0.76
Drainage Pump Station 0.75
Subtotal 1.51
Land Value per Acre
Land Acquisition Cost per Acre [2] A $410,984
Administration (3% of total cost) B*3% $13,402
Contingency (5% of total cost) B*5% $22,336
Total Public Land Cost per Acre B=A/92% $446,722
Total Public Land Ac
quisition Cost $674,550
Proposed Fee per Net Developable Acre (rounded) $2,167
Source: City of Sacramento; NorthPoint Development; Wood Rodgers, Inc.; EPS [1] See T
able 1-1.
[2] F
rom public land appraisal for North Natomas.

Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 19 Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 20
Backbone Infrastructure and Public
Facilities Financing Strategy
This chapter outlines the Project’s financing strategy and describes how a combination of funding sources will be used to fund the backbone infrastructure and other public facilities required to serve the Project.

Financing Strategy and Funding Sources
Overview
The backbone infrastructure and public facilities required to serve development in the Project will be funded using a combination of public and private funding sources. In addition, Project developers will fund specific plan entitlement costs through a proposed plan area fee program. Specific requirements for developer construction of backbone infrastructure and public facilities are defined in tentative map conditions and Development Agreement (DA) requirements.

Backbone Infrastructure
Initially, developers will construct and privately finance the construction costs for most of the backbone infrastructure (roads, sewer, water, drainage) needed at the outset of development. For improvements that the developer constructs and pays the upfront costs to construct, the developers may receive credits or reimbursements from the appropriate existing or new fee programs (including the proposed ASI Backbone Infrastructure DA Fee Program discussed in this chapter) depending on credit/reimbursement eligibility and policy requirements of the appropriate agency. In addition, the financing strategy includes formation of one or more land-secured bond financing districts (e.g., Mello-Roos CFD or Assessment District), which may fund a portion of the total backbone infrastructure and public facilities needed at the outset of development.

Public Facilities
For the public facilities identified in the Finance Plan, the Project developers will pay applicable existing and new development impact fees. The proposed ASI Public Land Acquisition DA Fee will fund the ASI acquisition of public land required for sewer and drainage pump stations.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 21
Detailed Sources of Funding
The following sections detail the existing and proposed sources identified to fund Project Facilities:
• Existing City and Other Agency Fee Programs.
• Proposed ASI Backbone Infrastructure DA Fee Program.
• Proposed ASI Public Land Acquisition DA Fee Program.
• Proposed ASI Specific Plan Reimbursement DA Fee Program. • Other Funding Sources.

Existing City and Other Agency Fee Programs
Specific building projects will be subject to all applicable City and other agency development impact fees in place at the time of acceptance of the building permit application. Revenues generated by certain specific fee programs will be available to directly fund backbone infrastructure and public facilities identified in this Finance Plan. Fee program revenues generated by the following fee programs may be available to partially or fully fund Facilities required for Project development and therefore are included in the Finance Plan and estimated in Table B-1 in Appendix B:
• Citywide Park Impact Fee.
• Citywide Water System Development Fee.
• SacSewer Development Impact Fee.
• NUSD School Mitigation Fee.

The sections below offer additional detail regarding fee programs that may provide partial or full funding for backbone infrastructure and public facilities.

Citywide Park Impact Fee
In February 2017, the City adopted an update to the citywide Park Impact Fee (PIF). All new residential and nonresidential development in the City is subject to the PIF, which funds park improvements in the Community Plan Area in which a project is located. In addition, the updated PIF includes a fee component that funds citywide park facilities (e.g., regional parks, community centers, aquatic centers, etc.). This Finance Plan is based on the assumption that ASI development will fulfill all park improvement obligations through payment of the PIF. The PIF is estimated to fund $1.3 million in park improvements, consisting of approximately $991,000 for neighborhood and community parks and $295,000 for citywide parks.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 22
Citywide Water System Development Fee
The City charges a citywide fee on all new connections to the water system to fund water treatment and transmission facilities to provide water to customers in the City. Future coordination with DOU and the City Manager’s office will determine whether City water development fees will fund up to $1.8 million (for conversion of a County transmission main to a City transmission main) of the $5.7 million total backbone water infrastructure costs. The $1.8 million cost is currently excluded from City water development fee reimbursements and credits and has been placed as a Project-wide ASI backbone infrastructure cost.

SacSewer Development Impact Fee
SacSewer levies a development impact fee to fund sewer capacity, infrastructure, and associated costs. Approximately $12.5 million of the $16.8 million total backbone sewer infrastructure cost is anticipated to be funded by SacSewer impact fees, which may take the form of impact fee credits and reimbursements for developer-constructed infrastructure.

NUSD School Mitigation Fees
State law allows school districts to impose fees on new residential and nonresidential development. The Project pays the current NUSD school development fees for nonresidential development, which will satisfy ASI’s funding obligation for school facilities. NUSD school mitigation fees are estimated to fund $4.5 million of school facilities.

Other Existing Development Impact Fee Programs and Charges The Project will be subject to other City, County, and Other Agency development impact fee programs that are not anticipated to fund Project-related backbone infrastructure and public facilities. These fees and projected fee revenue are identified in Table B-1 in Appendix B.

Proposed ASI Backbone Infrastructure DA Fee Program
The proposed ASI Backbone Infrastructure DA Fee Program will help fund backbone infrastructure costs that are not funded by existing fee programs or other identified funding sources. This Finance Plan proposes adoption of a new plan area development impact fee program, the ASI Backbone Infrastructure DA Fee Program, that will fund backbone infrastructure and public facilities needed to serve the Project after taking into consideration a variety of other funding sources for the improvements. It is proposed that this fee program establish a fee per net acre across all development types. The fee would be established as part of the Development Agreement and would not be established in accordance with the Mitigation Fee Act.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 23
Table 4-1 shows the estimated cost and proposed ASI Backbone Infrastructure DA fee per net developable acre by improvement type and in total across all improvement types. The ASI Backbone Infrastructure DA Fee Program would include a three percent fee program administration component. The total proposed ASI fee is estimated at $142,777 per net developable acre.

Proposed ASI Public Land Acquisition DA Fee Program
It is proposed that an ASI Public Land Acquisition DA Fee Program be established to fund the acquisition of land required for public facilities. Currently, land acquisition is only needed for sewer and drainage pumping stations. It is proposed that the ASI Public Land Acquisition DA Fee be a fee per net acre across all development types.

The fee would be established as part of the Development Agreement and would not be established in accordance with the Mitigation Fee Act.

Table 3-1 in the previous chapter shows the public land acreage requirement, the approximate land value per acre, the total estimated public land cost, and the resulting estimated fee per net developable acre. Note that the value per acre includes the land acquisition cost, a three percent administration component, and a five percent contingency. The total Public Land Acquisition DA Fee is estimated at $2,167 per net developable acre.

Proposed ASI Specific Plan Reimbursement DA Fee Program Summary
Certain property owners have been funding the entitlement costs for the Project, including all City staff and consultant costs incurred in the review and consideration of the Specific Plan, Environmental Impact Report (EIR), infrastructure plans, financing plans for infrastructure and urban services, and other technical studies, as well as agreements and plans prepared by consultants in support of the Specific Plan. It is proposed that an ASI Specific Plan Reimbursement DA Fee be established to fund these entitlement costs that have been incurred and are projected to be incurred in the future and that the fee be assessed per net acre across all development types. The fee would be established as part of the Development Agreement and would not be established in accordance with the Mitigation Fee Act.

Table 4-2 shows the estimated current and projected entitlement costs and the proposed ASI Specific Plan Reimbursement DA Fee per net developable acre. The Specific Plan Reimbursement DA Fee Program would include a three percent fee program administration component. The total proposed fee is estimated at $12,376 per net developable acre.

DRAFT
Table 4-1
Airport South Industrial Public Facilities Finance Plan Proposed ASI Backbone Infrastructure DA Fee (2024$)
Fee Component Pct. Total
Applicant
Sponsored
Future
Industrial
(rounded)
Net Developable Acres [1] 311.3 249.0 62.3
Roads $32,260,599 $25,808,479 $6,452,120 $103,649
Sewer $1,383,527 $1,106,822 $276,705 $4,445
Water $3,144,289 $2,515,431 $628,858 $10,102
Storm Drainage $6,356,300 $5,085,040 $1,271,260 $20,422 Subtotal $43,144,715 $34,515,772 $8,628,943 $138,618
Administration 3.0% $1,294,341 $1,035,473 $258,868 $4,159 Total $44,439,056 $35,551,245 $8,887,811 $142,777
Source: Wood Rodgers, Inc.; EPS
[1] See T
able 1-1.

ASI Backbone Infrastructure DA Fee-Funded Cost Proposed Fee per Net
Developable Acre
Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 24 DRAFT
Table 4-2
Airport South Industrial Public Facilities Finance Plan Proposed ASI Specific Plan Reimbursement DA Fee (2024$) Item Pct. Total
Applicant
Sponsored
Future
Industrial
Net Developable Acres [1] 311.3 249.0 62.3
Entitlement Costs
Cost to Date (5/7/24) $2,155,850 $1,724,680 $344,936 $6,926 Projected Future Costs $1,583,852 $1,267,082 $253,416 $5,089 Subtotal $3,739,702 $2,991,762 $598,352 $12,015
Fee Program Administration 3% $112,191 $89,753 $17,951 $360 Total (rounded) $3,851, 893 $3,081,514 $616,303 $12,376 Source: NorthPoint Development; EPS
[1] See T
able 1-1.

Specific Plan Reimbursement DA
Fee-Funded Cost Proposed
Fee per Net
Developable Acre
Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 25 Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 26
Entitlement Costs
Project entitlement costs generally incurred may be organized into the following categories:
• Engineering
• Transportation/Air Quality
• Planning
• EIR Consultant
• Wetlands/Biology
• Government Review/Processing
• Project/Management
• Legal
• Public Outreach
• Finance
• Schools
• Other Technical Studies
Through the DA, the applicant and City will determine the terms for implementing the ASI Specific Plan Reimbursement DA Fee, which would include the annual adjustment factor.

Other Funding Sources
Other funding sources anticipated to fund a portion of required backbone infrastructure include reimbursements from private developer funding and other adjacent development projects.

Private Developer Funding
Private developers will be responsible for funding in-tract or other project improvements that benefit individual development projects. For example, private developers will have sole responsibility for funding and constructing in-tract infrastructure. These facilities will generally consist of parcel specific circulation connections, landscaping, sewer connections, domestic and fire water facilities, drainage detention and conveyance.

Other Development Projects
The Project will participate in funding of facilities whose benefit is shared by other neighboring development projects. Specifically, certain roadway improvements funded by ASI ultimately will benefit the Metro Air Park project (MAP) to the north of ASI. It is anticipated that MAP will reimburse ASI for MAP’s fair share of those costs through MAP’s plan area fee program. Funding for these shared roadway improvements, and coordination between the City and Sacramento County, is further detailed in Chapter 3.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 27
Tables 1-3 and 1-4 in Chapter 1 show the future reimbursements anticipated for ASI’s construction or funding of infrastructure that also benefits future development in MAP. Note that the ASI Backbone Infrastructure DA Fee Program includes the MAP cost obligation of the road facilities. In the event that MAP reimburses ASI, the reimbursement would be made to the ASI Backbone Infrastructure DA Fee Program.

The reimbursement mechanisms will be further identified between ASI and other County Projects (Metro Air Park and WattEV). It is anticipated that coordination with Sacramento County will be completed during the processing of Project entitlements. This process may occur concurrently with or following the adoption of the Finance Plan. If it follows the Finance Plan adoption, any detail on reimbursement mechanisms will be included in an update to the Finance Plan to be approved by the City Council and referenced in the Development Agreement.

Land -Secured Financing
This Finance Plan includes the potential use of land-secured financing for a portion of Backbone Infrastructure and Public Facilities costs. Although this Finance Plan identifies sources of funding for all the included backbone infrastructure and public facilities, major facility oversizing and substantial up-front capital outlays may be required for certain projects. Land-secured financing, in the form of either a Mello-Roos CFD or an Assessment District, may be used to provide debt financing for some of these oversized Facilities:
• Mello-Roos CFD. The Mello-Roos Community Facilities Act of 1982 enables public agencies to form CFDs and levy a special tax on property owners in those CFDs. These special taxes may be used to pay debt service on CFD bonds or to finance public improvements directly on a pay-as-you-go (PAYGO) basis.
• Assessment Districts. California statutes give local governments the authority to levy several special assessments for specific public improvements such as streets, storm drains, sewers, streetlights, curbs, gutters, and sidewalks. The agency creates a special Assessment District that defines both the area to benefit from the improvements and the properties that will pay for the improvements.

A CFD is the most likely form of land-secured financing to be used to mitigate up- front costs of construction or acquisition of backbone infrastructure and public facilities in the Project, and it is anticipated that Project developers may request that the City form a CFD on all or a portion of the Project.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 28
The proceeds from a CFD bond sale can be used for direct funding of improvements, to acquire facilities constructed by the developer, to reimburse developers for advance-funding improvements, or to pay certain development fees. The annual special tax can be used toward bond debt service or to build or reimburse for infrastructure as needed. The proceeds of the Mello-Roos special tax can be used for direct funding of facilities or to service bond debt.

Tables 4-3 and 4-4 show preliminary estimates of the annual maximum special tax revenue and Mello-Roos CFD bonding capacity of the Project, based on assumptions regarding maximum special tax rates, reserve fund requirements, and interest rates. Based on current assumptions, which are estimates for purposes of example in this document, the Project is estimated to have capacity to bond for approximately $33.8 million, of which $28.4 million could be available to fund Project infrastructure costs. Actual tax rates and related bond capacity will be established at the time of formation of the CFD.

Phasing and the Financing Strategy
Phasing of backbone infrastructure and public facilities construction is an important component of the overall financing strategy. The ability to sequence facilities will depend on the type of facility and the pace of new development.

When possible, construction of facilities will be sequenced over time as needed to serve new development. The sequencing of facilities costs will help ensure that adequate monies are available from the various financing sources to fund the public facility improvements.

Completion of backbone infrastructure and public facilities will be phased to serve logical increments of development, based on the demand for such facilities as the Project builds out. The timing and amount of development in each increment will depend on many factors, such as market demand. In the normal course of the development approval process, the City will condition the Project’s tentative maps with backbone infrastructure and other public facility requirements.

The Finance Plan is designed to be flexible enough to accommodate faster or slower growth of Project development in response to the market for housing and nonresidential development.

The developers of the Project will be responsible for advance funding and constructing all of the backbone infrastructure and public facilities needed to serve the Project, unless the City and Project proponents agree otherwise to City construction of specific improvements. Although there are currently no planned City-constructed improvements, such improvements could include interchange facilities or other fee creditable items such as water transmission facilities and parks if agreed to in the future by the City.

DRAFT
Table 4-3
Airport South Industrial Public Facilities Finance Plan Estimated Mello-Roos CFD Bond Sizing (2024$)
Item Assumption
Warehouse
Distribution
Highway
Commercial Buildout
Assumptions [1]
Interest Rate 6.00%
Term 30 years
Annual Escalation 2%
Maximum Special Taxes Available for Debt Service
Estimated Annual Maximum Special Taxes [2] $1,767,000 $100,500 $466,875 $2,334,375 Less Estimated Administration Costs 3.00% ($54,000) ($4,000) ($15,000) ($73,000) Less Delinquency Coverage 10.00% ($177,000) ($10,000) ($47,000) ($234,000) Adjustment for Rounding $4,000 $3,500 $5,125 $12,625
Estimated Gross Debt Service (Rounded) $1,540,000 $90,000 $410,000 $2,040,000 Total Bond Size
Total Bond Size without Tax Escalation $21,198,000 $1,239,000 $5,644,000 $28,081,000 Adjustment for Rounding $2,000 $61,000 $56,000 $119,000 Total Bond Size (Rounded) $21,200,000 $1,300,000 $5,700,000 $28,200,000 Increase for Annual Escalation [3] 20% $4,240,000 $260,000 $1,140,000 $5,640,000 Total Bond Size (Rounded) . $25,440,000 $1,560,000 $6,840,000 $33,840,000 Estimated Bond Proceeds
Total Bond Size (Rounded) $25,440,000 $1,560,000 $6,840,000 $33,840,000 Less Capitalized Interest 12 months ($1,526,000) ($94,000) ($410,000) ($2,030,000) Less Bond Reserve Fund 1-yr. debt service ($1,540,000) ($90,000) ($410,000) ($2,040,000) Less Issuance Cost 4.00% ($1,018,000) ($62,000) ($274,000) ($1,354,000) Estimated Bond Proceeds $21,356,000 $1,314,000 $5,746,000 $28,416,000 Source: EPS.
[1]
Es
timated bond sizing based on conservative assumptions. The interest rate will be determined at the time of the bond sale.

Thi
s analysis is based on an assumed bond term of 30 years. [2] See Tabl
e 4-4.
[3] As
sumes special taxes are escalated 2.0% annually for 30 years, which increases total bond size by approximately 20%.

Estimated Bond Sizing
Applicant Sponsored Future
Warehouse
Distribution
Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 29 DRAFT
Table 4-4
Airport South Industrial Public Facilities Finance Plan Estimated Bond Proceeds (2024$)
Item
Net
Acres Amount
Pct. Of
Total Amount [1] Per Acre Amount Per Acre
Formula A B C = A *B D = C / Total E= D x total bond F = E / A G = D x bond H = G / A Max Tax proceeds
Applicant Sponsored per acre per acre
Warehouse Distribution 235.6 $7,500 $1, 767,000 75.7% $25,440,000 $107,980 $21,356,000 $90,645 Highway Commercial 13.4 $7,500 $100,500 4.3% $1,560,000 $116,418 $1,314,000 $98,060 Subtotal 249.0 $7,500 $1,867,500 80.0% $27,000,000 $108,434 $22,670,000 $91,044 Future Industrial Warehouse Distribution 62.3 $7,500 $466,875 20.0% $6,840,000 $109,880 $5,746,000 $92,305 Total 311.3
$2,334,375 100.00% $33,840,000 $108,723 $28,416,000 $91,296 Source: NorthPoint Development; EPS.
[1] S
ee Table 4-3 for total bond calculation.

Maximum Annual
Special Tax Revenue Bond Size Bond ProceedsMax. Annual
Special Tax
Rate per Acre
Prepared by EPS 7/7/2025 Z:\Shared\Projects\SAC\222000\222006 Sacramento Northpointe Annexation Public\Models\222006 Airport South FP 7.1.25.xlsx 30 Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 31
Subject to the City’s fee credit and reimbursement policies, some or all of the private developer funding of backbone infrastructure and public facilities will be reimbursed to the landowners/developers over time as the City is able to issue public debt through the CFD, issue credits due for landowner/developer proportionate share of fees, and collect fees from other developers that will provide reimbursements. The timeframe for reimbursement is unknown and could be a considerable period of time depending on market conditions and the actual absorption of the development projects. There is no guarantee the initial developers will be fully reimbursed for the costs to oversize facilities for later development projects.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 32
Feasibility of the Finance Plan
This chapter reviews issues associated to the overall financial feasibility of the Finance Plan. The financial feasibility is addressed by reviewing a total infrastructure burden analysis, as well as bond issuance guidelines, to ensure the Project’s total infrastructure cost burden for each developable land use category is at an acceptable level that will allow Project development to proceed. The financial feasibility is assessed by estimating the Project’s total infrastructure and property tax burdens and comparing these amounts to the amounts for the neighboring MAP project.

Description of Static Feasibility
Analyses
This analysis includes the following static methods for evaluating the financial feasibility of the proposed Project:
• Total Backbone Infrastructure and Public Facilities Cost Burden. • Total Taxes and Assessments as a Percentage of Sales Price.

Each of these methods is based on a static financial feasibility evaluation. To be considered financially feasible, the Project should have a similar cost burden and property tax level as other comparable projects in the region. For the purposes of this Finance Plan, a comparison is made to warehouse development in the neighboring MAP project.

It is important to note that these feasibility metrics, described in detail below, should be considered initial diagnostics, offering a general indicator of whether or not a project is likely to meet financial feasibility criteria or whether measures should be taken to improve viability, either through a reduction in cost burdens, identification of other funding sources, or other approaches. None of the indicators, by themselves, should be considered absolute determinations regarding Project feasibility.

Airport South Industrial Finance Plan
June 2025
Economic & Planning Systems, Inc. (EPS) 33
Total Backbone Infrastructure and
Public Facilities Cost Burden
The purpose of estimating the total backbone infrastructure and public facilities cost burden is to assess the financial feasibility of the Project, given all current and proposed fees and the additional burden of Project-specific infrastructure costs. The total backbone infrastructure and public facilities cost burden provides a performance indicator of a project’s feasibility.

A relatively high infrastructure cost burden does not necessarily indicate the project is infeasible. In certain circumstances, there are ways in which a development project can mitigate against a high cost burden. In addition, the backbone infrastructure and public facilities costs will be fine-tuned and possibly reduced as engineering studies are completed closer to actual construction.

The total infrastructure cost burden per 1,000 building square feet for each developable ASI land use is shown in Table 5-1. This table includes the total cost burden as well as the cost burden net of potential CFD bond proceeds. CFD bond proceeds could be used to fund certain infrastructure currently included in the ASI Backbone Infrastructure DA Fee Program, in which case the overall fee burden could be reduced accordingly. Appendix B contains a total fee revenue estimate at buildout of the Project. The total fee revenues are estimated by multiplying the fees by the development at buildout and summing across all fees.

Cost Burden Comparison with Metro Air Park
As one test of the financial feasibility of ASI, the estimated cost burden for warehouse development is compared to the estimated cost burden for warehouse development in MAP. Table 5-2 summarizes the comparison. For the purposes of the comparison, ASI warehouse development is compared to a recently constructed 240,000 square foot building in MAP, and it is assumed that the ASI development would have the same number of acres and building square feet as the MAP building. Note that these assumptions for the purposes of the comparison result in some different fees than those in Table 5-1.

Appendix C provides the detailed comparison, including estimates of all of the fees and CFD bond proceeds for each area. Note that MAP is located in unincorporated Sacramento County, whereas ASI will annex into the City, so a number of the required fees differ. The two areas also will have different Plan Area fees and CFD special taxes.

DRAFT

Page 1 of 2 ends

Sacramento City CouncilOctober 21, 2025

Sacramento City Council
October 21, 2025