Pleasanton planners back Arroyo Lago entitlements, press applicant for larger El Charro Road contribution

The Pleasanton Planning Commission on June 24 recommended that the City Council adopt an addendum to the county-certified environmental impact report and approve the entitlements for the Arroyo Lago ("Royal Lago") residential project, but it conditioned its recommendation on a larger transportation contribution for a critical road project.

In a separate motion the commission voted 3-1 to recommend approval of the pre-annexation and development agreement (PADA) only if the applicant amends the agreement to increase the contribution toward El Charro Road from $3 million to $8 million. Commissioners said the higher contribution better matches a traffic engineer's pro-rata estimate for the city's planned El Charro Road, which staff and the applicant described as essential to mitigate long-term congestion in East Pleasanton.

Why it matters: Arroyo Lago is a roughly 30-acre residential proposal east of Pleasanton's core that was previously processed and approved by Alameda County. If annexed, the project would be built under Pleasanton rules and contribute to local infrastructure and housing goals; if it proceeds in the county it would rely on an off-site wastewater treatment approach and the city would not collect the same fees or revenues.

What staff and the applicant told the commission Staff planning presentation: City planning staff summarized the project scope (189 homes on about 29.9 acres, a centrally located HOA-owned park with public access and on- and off-site circulation improvements) and the City Council's prior directions: lower lot pad grades adjacent to the Villages at Ironwood, increase rear-yard setbacks, and limit units along the west property edge to single-story homes. Staff said the county had certified an EIR prepared by First Carbon Solutions and that, after reviewing the county documentation and city refinements, the city found similar impacts; two impacts'greenhouse gas emissions and vehicle miles traveled (VMT)'remain significant and unavoidable and were addressed in the county record with a statement of overriding considerations.

Traffic and El Charro Road: Mike Tassano, the city's traffic engineer, told commissioners that, based on a regional sequencing of East Pleasanton development, El Charro Road is the long-term circulation fix needed to reduce pressure on the Santa Rita/Valley intersection and other key corridors. Tassano said a city-level estimate for full construction of El Charro is roughly $120 million; after subtracting developer responsibilities and allocating the balance by trip generation, the Arroyo Lago share was preliminarily estimated at about $8 million (roughly 9 percent). Staff and the applicant previously discussed and documented a voluntary $3 million applicant contribution in the PADA.

Applicant's position: Steve Riley of 330 Land (the applicant) and owner representative Steve Dunn said they prefer annexation into Pleasanton, emphasized grading changes achieved with city staff that lower pad elevations and reduce impacts to neighbors, and described infrastructure design changes and trail connections. Riley told the commission the applicant has offered $3 million as a community benefit toward El Charro but asked the city to include a Plan B in the PADA in case an easement from Zone 7 cannot be secured.

Zone 7 comment: Kathy Narum, president of the Zone 7 board (speaking as an individual), urged the commission to recommend annexation and to avoid a county plan that relied on a packaged sewer plant and spray fields near the chain of lakes; she said annexation would allow connections to city water and sewer systems, addressing Zone 7's concerns.

Commissioner debate and votes: Commissioners split over whether to accept the city's earlier negotiations (the $3 million PADA term) or press for a contribution closer to the traffic engineer's $8 million estimate. Supporters of the higher amount warned that approving a lower contribution could set a precedent for other East Pleasanton projects and make it harder to assemble the funding needed to build El Charro. Those favoring the staff-recommended $3 million stressed the project's long county history, the economic feasibility constraints for a single project and the risk of losing annexation if the city sets too high a financial hurdle. The commission voted unanimously to recommend adoption of the addendum to the county EIR and to recommend approval of the project entitlements, and then approved the PADA recommendation with the $8 million condition by a 3-1 tally.

Formal actions and next steps: The commission's actions are recommendations to the City Council; final approvals (annexation, development agreement and any changes to the PADA) are for the council to decide. If the City Council accepts the commission's conditional recommendation the applicant would need to accept the amended PADA terms (or the commission's recommendation would serve as a point of policy direction for council consideration). The approved PADA, as presented to the commission, included a 10-year project term and required completion of off-site public improvements and permit obligations.

Key numbers and details - Site area: ~29.9 acres - Units: 189 primary units; applicant includes 48 junior ADU (JADU) conversions offered as deed-restricted units to count for the housing element credit - Applicant contribution in PADA (as proposed to commission): $3,000,000 toward El Charro Road - Traffic engineer preliminary pro rata share for Arroyo Lago: ~$8,000,000 - Estimated full El Charro construction cost (planning-level): ~$120,000,000 - PADA project term: 10 years (no extension included)

Quote: Staff recounted the applicant's offer in its own words: "the applicant agreed to pay, uh, $3 million contribution towards the, uh, the design and, uh, construction of the future El Charro Road." (staff presentation)

What to watch next: The matter will move to the City Council for final action; council members will decide whether to accept the commission's conditional PADA recommendation, adopt the EIR addendum and approve annexation and entitlements. If the council declines the commission's $8 million condition, the applicant could still proceed under the county-approved plan or negotiate different terms with the city.