Council Approves Third Extension for The Lakes; $100,000 Option Fee to Support Navigation Center

Thousand Oaks City Council on Oct. 7 approved amendments to the purchase and sale agreement and extended the development agreement for The Lakes mixed‑use project, a planned residential development on the city‑owned parcel at 2200 East Thousand Oaks Boulevard.

The vote cleared 4–1, with Mayor Newman voting no. Council member Adam moved to approve staff recommendations; Council members Engler, Gutierrez and Mayor Pro Tem Taylor voted yes. The amendments extend the development agreement term to March 29, 2031, and add an option to extend the closing date for the purchase of the property to June 30, 2028, in exchange for a nonrefundable $100,000 payment from the applicant. Staff recommended directing that payment to the navigation center operating expenditures for 2027–28.

Why it matters: The project was originally approved in 2021 as an up to 165‑unit apartment development tied to a community benefit obligation. The purchase price is fixed at $2,000,000 under the existing purchase and sale agreement; the development agreement includes a community benefit payment of roughly $13,000,000 to be paid to the city over 35 years beginning two years after occupancy.

Planning division manager Steve Kearns told council the city previously approved the DA on Nov. 30, 2021, and that the DA currently terminates after construction or on March 29, 2027. The applicant, T O Lakes LLC (represented by Caruso Development), requested the extended deadlines to allow additional time for design, permitting and to wait for more favorable market and financing conditions. Chris Robertson, senior vice president of planning and development for Caruso, said the company remains “strongly committed to this community” but needs “a little bit more time and a little bit more flexibility” to make the project financeable.

Council members pressed the developer for specifics about milestones. Staff and the applicant said a key requirement in the DA is submission of building permit plans and plan check materials before the city will permit escrow to close; Kearns explained the permits must be submitted prior to closing and that preparing a complete building permit package can require months of work by a large consultant team. Kearns also said the $100,000 payment would be nonrefundable and would not be applied to the $2,000,000 purchase price or to the community benefit fee.

Public comment included two speakers. Resident Clint Fultz asked whether the project would include affordable housing; staff and the applicant confirmed the approved project does not include on‑site affordable units and that the city may use the community benefit money for affordable housing if it chooses. Remote speaker Faith Grant asked whether the city should reappraise the property or seek competitive bids; staff replied the city is contractually obligated to the $2,000,000 price so long as the buyer meets the PSA terms.

Council debate highlighted competing priorities: several members said they favored keeping the DA in force so the city retains negotiated community benefits and the potential development, while others cited fiduciary concerns about delaying a payment and the long horizon before the city starts to receive the $13 million spread over 35 years. Council member Engler noted the present market makes financing large projects difficult and urged patience; the motion carried 4–1.

The council found the amendments exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) (general rule exemption).

Next steps: The amendments, as introduced tonight, will be finalized in ordinance form and reflected in the council record. If the developer executes the one‑year PSA extension, the city will direct the $100,000 contribution to the navigation center operating gap as recommended by staff; otherwise the existing PSA and DA deadlines remain in force until their current expiration dates.