Often it is advantageous for the City to have a developer construct certain public infrastructure improvements that directly benefit the City and community members rather than having the City build the improvements. In such instances, the City enters into Reimbursement Agreements with developers to construct the improvements. Examples of public improvements include streets, sidewalks, bike lanes, parks and libraries. Reimbursements to developers are in the form of cash and/or credits against future building permits issued. For a project to be eligible for reimbursement, the project must be identified in the applicable Nexus Study or Public Facilities Financing Plan. These studies identify eligible projects and ensure a fair share contribution of Development Impact Fees towards mitigating the need for public spaces due to new development and growth. 

Reimbursement Agreement Application Submittal

To initiate a request for a Reimbursement Agreement, an applicant must first contact the City Planning’s Public Spaces team by emailing publicspaces@sandiego.gov  to determine if the project is eligible for reimbursement. To be eligible for Citywide credits or funding, projects must be listed in the Mobility Development Impact Fee Nexus Study, or meet the criteria in the Citywide Park Development Impact Fee Nexus Study, the Library Development Impact Fee Nexus Study, or the Fire-Rescue Development Impact Fee Nexus Study. Certain communities may have access to  and to be eligible for these funds, the projects must be listed in the  Public Facilities Financing Plan for the community in which the project is located.

Once a project is determined eligible for reimbursement, certain steps need to occur to begin the process of executing the Reimbursement Agreement. A deposit of $20,000 is required to set up an account to cover the administrative expenses necessary to take the Reimbursement Agreement to the City Council for approval and execution. Additional deposits may be required to keep the deposit account positive. Any account balance remaining after execution of the reimbursement agreement will be refunded to the applicant.

The steps for agreement initiation are as follows:

• Complete General Application form DS-3032.
• Complete Deposit Account/Financially Responsible Party form DS-3242.
• Return completed and signed forms by emailing them to: publicspaces@sandiego.gov
• Once staff has set up the deposit account, staff will invoice the applicant for the $20,000 deposit.
• Applicant pays the deposit in person at the Development Services Department by check or online at OpenDSD.
• Once the deposit has been confirmed, negotiations and processing of the agreement can begin. Public Spaces staff will send the applicant the Reimbursement Agreement template and exhibits to complete with applicable information including but not limited to the scope, schedule, and cost of the project. To ensure a project is processed efficiently, the project's scope, schedule, and cost must be submitted to the Public Spaces staff before August each year. This timeline allows for the project to be considered for funding in the following July's budget. If information is submitted after August, funding may not be available until the subsequent budget cycle.
• Once all information has been agreed upon, Public Spaces staff will take the Reimbursement Agreement through the Public hearing process for  City Council approval.
• Once the Reimbursement Agreement is approved by the City Council, the applicant must put the work out to bid following City requirements. To ensure efficient review of the contracts by the City, the below guidelines must be followed:
  • Insurance Notes -Guidelines for Developers
• Reimbursement to the developer will be issued in three phases: once at 30%, once at 90%, and once at 100% of the work completed. For reimbursement, all requirements specified in the Reimbursement Agreement must be met.

Please note that it may take a minimum of 12 months from the time an applicant contacts the Public Spaces team to the full execution of the Reimbursement Agreement. The City is no longer entering into agreements that are anticipated to take longer than 5 years to complete. 

Executed Reimbursement Agreements

Development Agreements

Development agreements are similar to Reimbursement Agreements as they are legal contracts between developers and the City. However, while Reimbursement Agreements focus on specific City assets being built, Development Agreements outline the terms and conditions for an entire development project. Development Agreements aim to promote orderly and planned growth while providing certainty in the development approval process for both parties. 

Steps for Initiating a Development Agreement:

• Application Filing: Submit an application to the Development Services Department describing the development and what public benefits would be included 

• Fees and Deposits: Pay filing fees to cover the costs associated with City review and action on the application. Additional fees or deposits may be necessary for permits relative to the development of the property.

• Review Process: The City Manager reviews the application for compliance with technical requirements and consistency with applicable land use plans and policies. Negotiations may occur to optimize the agreement.

• Decision-Making Process

• Planning Commission Recommendation - The Planning Commission shall hold a public hearing to consider whether to recommend approval or denial of the Development Agreement

• City Council - The City Council may approve or deny a Development Agreement by ordinance after receiving the Planning Commission’s recommendation. The City Council makes a decision based on findings that the agreement aligns with land use plans, provides significant public benefits, and exceeds existing policies and regulations.

For detailed information on Development Agreements and their procedures, refer to the Municode Section §124.01.