CITY OF SIMI VALLEY
MEMORANDUM
Oc
tober 20, 2025
T
O: City Council
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ROM: Department of Environmental Services
S
UBJECT: SECOND READING OF ORDINANCE NO. 1364 OF THE CITY COUNCIL
OF THE CITY OF SIMI VALLEY APPROVING A FIFTH AMENDMENT TO DEVELOPMENT AGREEMENT NO. DA- 04-01 BETWEEN THE CITY OF
SIMI VALLEY AND RUNKLE CANYON, LLC
STAFF RECOMMENDATION
I
t is recommended that Ordinance No. 1364 be adopted.
BACKGROUND
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he attached Ordinance No. 1364 was introduced for first reading at the City Council meeting of October 6, 2025, without modifications.
SUGGESTED CITY COUNCIL MOTION
I
move to adopt Ordinance No. 1364.
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_______________________________
Stratis Perros
Environmental Services Director
P
repared by: Lucy Blanco, City Clerk
INDEX Page
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rdinance No. 1364 ............................................................................. 2 AGENDA ITEM NO.
8A
ORDINANCE NO. 1364
A
N ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SIMI VALLEY
APPROVING A FIFTH AMENDMENT TO DEVELOPMENT AGREEMENT
NO. DA -04-01 BETWEEN THE CITY OF SIMI VALLEY AND RUNKLE
CANYON, LLC
T
he City Council of the City of Simi Valley does ordain as follows:
SECTION 1: The City Council finds and declares that:
A. O
n April 15, 2025, Runkle Canyon, LLC (“Developer”) filed an application to extend Development Agreement No. DA -04-01 (“Project”), recorded as Instrument No. 20040526- 0147236, for an additional five years (until July 10, 2030).
B. T
he City reviewed the Project’s environmental impacts under the California Environmental Quality Act (Public Resources Code §§ 21000, et seq ., “CEQA”) and the regulations promulgated thereunder (14 California Code of Regulations §§ 15000, et seq., the “CEQA Guidelines”).
C. T
he Planning Commission considered the Project on June 18, 2025 and, following a public hearing, made recommendations to the City Council in accordance with applicable law.
D. O
n July 21, 2025, the City Council conducted a duly noticed public hearing to consider the Project. Notice of the time, place and purpose of the public hearing was provided in accordance with Government Code §§ 65867, 65090 and 65091.
E. T
he matter was continued and o n October 6, 2025, the City Council conducted a duly noticed continued Public Hearing to further consider the Project. Notice of the time, place and purpose of the public hearing was provided in accordance with Government Code §§ 65867, 65090 and 65091.
F. T
his Ordinance, and its findings, are based upon the entire administrative record considered during the July 21, 2025 and October 6, 2025 public hearings including, without limitation, the staff report s and accompanying documents.
SECTION 2: Findings. Pursuant to Government Code § 65867.5, the City Council finds the following:
A. T
he Development Agreement is consistent with the General Plan of the City of Simi Valley. The Development Agreement furthers the goals of the General Plan and is in the interest of the general community welfare in that the Development Agreement will, among other things, facilitate the 2 development of the Project site, which is consistent with the following General Plan policies:
1. General Plan Policy III -1.6.1, that states, “The pattern of existing neighborhoods, land use and architecture should be respected.” The Amendment does not affect nor change the pattern of the existing neighborhood, land use, or architecture. The approved Runkle Canyon Project is designed to integrate with the existing single- family houses located adjacent to the project area. The previ ously approved residential lots are similar in size or modestly larger than the existing residential lots surrounding the project area. Further, the Applicant has complied with paying all of the Public Facility Payments that the City will use to offset costs for public improvements, public services, and public community services consistent with General Plan Goal IX -2, which states to “Maintain municipal services, public utilities and facilities at adequate levels of service.” Therefore, the proposed Amendment is consistent with this finding.
2. The Project does not affect or change the authorized uses and standards in the Residential Moderate Density (RMod) and Residential Medium Density (RM) zones of the Runkle
Canyon/Woodlands Project Specific Plan. The proposed Project continues to be compatible since the time extension does not affect or change the land uses. Therefore, this Project is compatible with uses authorized in, and the regulations prescribed for, the zones of the property.
B. The Development Agreement also provides certainty in planning and construction as well as orderly development, while providing assurance to the Applicant that it may construct the Project.
C. The Project complies with the conditions, requirements, restrictions, and terms of the SVMC, in that it includes all mandatory provisions required by Government Code § 65865.2 and does not include any provisions that are not authorized by the Development Agreement Act (Government Code §§ 65864 - 65869.5).
SECTION 3: Public Benefits. The Development Agreement provides for public benefits including, without limitation:
A. Public improvements, public services, and community amenities.
B. A remaining in- lieu fee for 30 affordable units of $900,000 that may be utilized by the City for the construction or otherwise provide housing affordable to income eligible senior households.
3 ORD. NO. 1364
SECTION 4: Environmental Review. Because of the facts set forth above, the Project is consistent with the Final Environmental Impact Report (“FEIR”) certified (and adopted) by the City Council on April 24, 2004 via Resolution No. 2001- 41 (State Clearinghouse No. 2002121143) and the FEIR Addendum approved August 13, 2012. None of the elements set forth in Public Resources Code § 21166 or CEQA Guidelines § 15162 exists.
Accordingly, no subsequent or supplemental Environmental Impact Report, Mitigated Negative Declaratio n or Addendum is required to be prepared before adopting the Project. Implementation of mitigation measures identified in the FEIR will be monitored as called for in the Mitigation Monitoring and Reporting Program adopted on April 24. 2004.
SECTION 5: Notice of Determination. The City Manager , or designee, is directed to file a notice of determination in accordance with CEQA §§ 21152, 21167(f); CEQA Guidelines § 15094; and any other applicable law.
SECTION 6: Incorporation of Development Agreement Amendment; Changes; Execution. In accordance with Government Code §§ 65864, et seq. this Ordinance approves the Fifth Amendment to the Development Agreement (“Amendment”) in substantially the form attached as Exhibit “A,” and incorporated into this Ordinance by reference.
A. The Amendment may be changed before execution as authorized by the City Council during the public hearings for the Project.
B. The Amendment may be changed before execution for minor clarifications and technical, clerical, corrections as approved by the City Attorney including, without limitation, completion of references, status of planning approvals, and completion and conformity of all exhibits to the Amendment.
C. The City Council authorizes the Mayor to execute the Amendment on the City’s behalf in a form approved by the City Attorney. The City Manager, or designee, is authorized to execute amendments or operating memoranda as permitted by the DA, in a form approved by the City Attorney.
SECTION 7: Construction. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council’s intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance.
SECTION 8: Enforceability. Repeal of any provision of the Simi Valley Municipal Code does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance’s effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance.
4 ORD. NO. 1364
SECTION 9: Reliance on Record. Each and every one of the findings and determinations in this Ordinance are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the matter. The determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole.
SECTION 10: Limitations. The City Council’s analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts have been made to form accurate assumptions. Somewhat related to this are the limitations on the City's ability to solve what are, in effect, regional, state, and national problems and issues. The City must work within the political framework within which it exists and with the limitations inherent in that framework.
SECTION 11: Recordation. The City Clerk, or designee, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of Simi Valley’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, and cause it to be published or posted in accordance with California law.
SECTION 12: Effective Date. This Ordinance will become effective 30 days after second reading and adoption.
PASSED AND ADOPTED this 20th day of October, 2025.
Attest:
__________________________ __________________________________ Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor of the City of Simi Valley, California
Approved as to Form: Approved as to Content:
__________________________ ______________________________ Algeria R. Ford, City Attorney Samantha C. Argabrite, City Manager
__________________________
Stratis Perros
Environmental Services Director
5 ORD. NO. 1364
EXHIBIT A
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Simi Valley
2929 Tapo Canyon Road
Simi Valley, California
93063 Attn: City Clerk
Space above this line for Recorder’s Use Only
Exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383.
FIFTH AMENDMENT TO FOURTH AMENDED AND RESTATED
DEVELOPMENT AGREEMENT
[DA-2025-0001 (DA-04-01 AMD#05)] BETWEEN THE CITY OF SIMI
VALLEY AND RUNKLE CANYON, LLC
This Fifth Amendment (this “Amendment”) to the Fourth Amended and Restated Development Agreement (DA -04-01 AMD#05 or the “Development Agreement”) is entered into on October 20, 2025, by and between the CITY OF SIMI VALLEY, a municipal corporation (“City”), and RUNKLE CANYON, LLC, a Delaware Limited Liability Company and any successors or assigns (“Developer”). All capitalized terms used but not otherwise defined have the meanings ascribed to them in the Runkle Canyon Development Agreement. The Parties agree as follows:
SECTION 1: RECITALS. This Agreement is made with reference to the following facts and objectives:
a. On May 10, 2004, the Simi Valley City Council adopted Ordinance No. 1058 approving the Development Agreement. The Development Agreement was subsequently amended on August 13, 2012 (Ordinance No. 1197); August 29, 2016 (Ordinance No. 1261); March 11, 2019 (Ordinance No. 1295); and June 13, 2022 (Ordinance No. 1339);
b. The Development Agreement was set to expire on June 10, 2025 (the “Expiration Date”);
c. On April 15, 2025, Developer filed an application to extend the Development Agreement for an additional five years, which application tolled the Expiration Date for the period of City’s review and consideration of the request;
d. City and Developer agree that City has and maintains the requisite authority to extend the Development Agreement and could in the alternative enter into a new agreement entirely on similar terms;
6 ORD. NO. 1364
e. City is exercising its discretion to reinstate and reapprove the existing terms of the Development Agreement, as amended by this Fifth Amendment.
f. City and Developer seek to extend the Expiration Date for up to five years, subject to this Fifth Amendment , to facilitate the buildout of the remaining estate homes and the senior housing site;
g. Developer proposes no physical changes to the Project. Accordingly, no additional environmental review is required under the California Environmental Quality Act (see, Public Resources Code § 21166); and
h. Extending the Expiration Date requires the Parties’ adherence to the Runkle Canyon Milestone Schedule which is attached as Exhibit “A,” and incorporated by reference; it being understood that those milestones listed as “Soft” in Exhibit “A” are shared goals by the City and Developer which may not be timely achieved, while those milestones listed as “Hard” in Exhibit “A” must be achieved by the listed deadlines in order to secure the automatic full five year extension as contemplated in this Fifth Amendment.
SECTION 2: AMENDMENT TO SECTION 3. Section 3 of the Development Agreement is amended as follows:
“Except as otherwise, provided, the Term of this Agreement ends October 6, 2028.
Provided that each of the Hard Milestones listed in Exhibit “A” is timely performed, including any tolling of deadlines pursuant to Section 29 of this Agreement, the Term of this Agreement will automatically be extended to October 6, 2030 without City Council action and upon written confirmation by the City Manager. The Term was established by the Parties as a reasonable estimate of the time required to complete the Project and obtain the public benefits from the Project. City finds that a term of such duration is reasonably necessary to receive the public benefits from the Project. In establishing and agreeing to such term, City has determined that this Agreement incorporates sufficient provisions to permit City to monitor adequately and respond to changing circumstances and conditions in granting permits and approvals and undertaking actions to carry out the Project.”
SECTION 3: AMENDMENT TO SECTION 26. The Development Agreement is amended to add subsection (l) to Section 26 as follows:
“ (l) The City Manager, or designee, and City Attorney, or designee, should meet at least once a month during the Term with Developer’s Regional Vice- President, or designee, and General Counsel, or designee, to facilitate the timely completion of the Project and coordinate quarterly updates to the City Council.”
SECTION 4: ADDITION OF SECTION 29. A new Section 29 is added to the Development Agreement to read as follows:
“ 29. Force Majeure.
(a) Except for Force Majeure Delays, Developer must meet the Hard Milestones identified in Exhibit “A” on or before the dates listed in that 7 ORD. NO. 1364
Exhibit. Should Developer fail to meet any Hard Milestone, Developer must, pay to City within 30 days after that deadline, and without demand, a portion of the outstanding Affordable Housing In Lieu Fee in the amount of $300,000. Should Developer fail to meet every Hard Milestone by October 6, 2028, except as extended due to Force Majeure Delays, the Development Agreement will not automatically extend by two year s as contemplated by this Fifth Amendment. City may, but is not required to, extend the Development Agreement by City Council action in accordance with applicable law.
(b) “Force Majeure Delay” means delay beyond the reasonable control of Developer (and despite Developer’s good faith efforts) including, without limitation, (i) unanticipated acts of nature including Severe Weather; (ii) civil commotion; (iii) strikes, picketing or other labor disputes resulting from matters independent from Developer; (i v) shortages of materials or supplies, (vi) terrorism; (vii) the failure, delay or inability of City to provide adequate levels of public services, facilities or infrastructure to the Project Site; (viii) delay caused by governmental restrictions imposed or mandated by governmental entities other than City including enactment of conflicting state or federal laws or regulations ; ( ix) judicial decisions or similar basis for excused performance; (x) governmental action or inaction (including, without limitation, the arbitrary or capricious failure, refusal, or delay in processing submissions, issuing permits or other approvals); (xi) economic conditions rendering continued development commercially unreasonable at Developer’s reasonable discretion and after good cause shown to City ; and ( xii) litigation brought by a third party attacking the validity of this Agreement. If Developer claims a Force Majeure Delay, it must notify City in writing of such delay within 30 days after the commencement of the delay, which notice (“Permitted Delay Notice”) includes the estimated length of the Force Majeure Delay. A Force Majeure Delay will be deemed to occur for the time period set forth in the Permitted Delay Notice unless City objects in writing within 10 days after receiving the Permitted Delay Notice. In the event of such objection, the parties must meet and confer within 30 days after the date of the objection with the objective of attempting to arrive at a mutually acceptable solution to the disagreement regarding the Permitted Delay . “Severe Weather” means weather that a reasonable person would find unusual and unanticipated at the time of the scheduling or the activity based on recent weather patterns for the period in question in the vicinity of the Project. If the Parties cannot come to an agreement, the Party claiming a Force Majeure Delay is entitled to seek judicial resolution via an action for specific performance pursuant to Section 19 of this Agreement. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and Developer.”
SECTION 5: REIMBURSEMENT. A new Section 30 is added to the Development Agreement to read as follows:
“Upon executing the Fifth Amendment, Developer must reimburse City for its costs in processing the Fifth Amendment in an amount of $50,000.
Additionally, it must provide a deposit of at least $25,000 (the “Initial Deposit”) to City for ongoing administration of this Fifth Amendment. City agrees to 8 ORD. NO. 1364
maintain the Initial Deposit in a separate trust account for Developer. The Initial Deposit and any subsequent replenishment must be used only to pay cost actually incurred in administering the Fifth Amendment and will reimburse City of third -party costs i ncluding, without limitation, engineering and legal costs. City may withdraw funds from the Initial Deposit to pay for costs and must provide Developer with monthly statements specifying the costs so incurred by City and paid from the Initial Deposit. Together with such monthly statements, City must provide to Developer copies of invoices for the costs shown in such monthly statements, including invoices for consulting, permitting, and other review fees associated with ensuring the availability or permits and approvals necessary for the development of the Project.
Developer has no obligation to pay as costs for which an invoice is not provided except that Developer understands that invoices for legal costs are privileged; only the total amounts will be provided. Within 10 business days after City notifies Developer in writing that the then remaining balance of the Initial Deposit is reduced to $1,000 or less, Developer must replenish the Initial Deposit to a balance of at least $25,000.”
SECTION 5: INTEGRATION. This Amendment to the Development Agreement reflects the complete understanding of the parties with respect to the subject matter hereof. To the extent this Amendment conflicts with the Development Agreement, this Amendment supersedes the Development Agreement. In all other respects, the parties hereto re- affirm and ratify all other provisions of the Development Agreement. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it means the Development Agreement, as amended. This Fifth Amendment to the Development Agreement must be recorded in the Official Records of the County of Ventura upon its full execution and the effective date of the Ordinance adopted by the City Council of the City to approve this Amendment.
SECTION 6: COUNTERPARTS . This Amendment may be executed in counterparts, each of which shall be deemed an original, and all such counterparts, when taken together, shall constitute one agreement.
SECTION 7: SEVERABILITY. If any provision of this Amendment to the Development Agreement is held to be invalid by a court of competent jurisdiction, the remainder of the Agreement is not affected, unless the court specifically finds that the invalid part is so fundamental and essential to the understanding of the parties that the entire Agreement is invalidated.
[SIGNATURES ON FOLLOWING PAGE]
9 ORD. NO. 1364
SIGNATURE PAGE
TO
FIFTH AMENDMENT
TO
DEVELOPMENT AGREEMENT
IN WITNESS WHEREOF, the City and the Developer have signed this Amendment, by and through the signatures of their authorized representatives as of the day and year first hereinabove written.
Attest: City of Simi Valley,
A Municipal Corporation
By:
Lucy Blanco, City Clerk Dee Dee Cavanaugh, Mayor
of the City of Simi Valley
Approved as to Form: Runkle Canyon, LLC
A Delaware Limited Liability Company
___________________________ By: _______________________ Algeria R. Ford, Esq., City Attorney Keltie Cole, Authorized Agent
Approved as to Content:
Samantha C. Argabrite,
City Manager
Carolyn Johnson
Administrative Services Director
Stratis Perros
Environmental Services Director
10 ORD. NO. 1364