THE DAVIS "PASS-THROUGH" AGREEMENT, A GENERATION OF LAND USE PROTECTION
By Dave Rosenberg
Yolo County Supervisor, District Four
For over a decade now, virtually no discussion about growth has failed to mention the "Pass-Through Agreement." Without question, the term "Pass-Through Agreement" has come to be part of the Davis lexicon.
But what is the "Pass-Through Agreement" (let's call it "PTA" for short)? And what does it really do?
To understand the PTA, a little historical interlude is in order.
Back in 1986, the City of Davis, operating under the 1974 General Plan, was happily controlling growth by saying "no" to development proposals and restricting the number of housing units constructed by others. But in 1986, an event occurred which dramatically altered the course and scope of Davis development. A developer by the name of Frank Ramos owned a large chunk of land almost all of which was just outside of the Davis city limits. He came to the Davis City Council with an annexation proposal and a massive development project. The City Council analyzed the proposal and said "thank you, but no thanks." The proposal was rejected.
Normally, that would have ended the discussion. But Mr. Ramos didn't drop his plan. Rejected by the City of Davis, he turned to the County of Yolo. And the County did a very surprising thing. Even though the two Supervisors then representing Davis (Helen Thomson and Betsy Marchand) opposed the end-run to the County, the remaining three Supervisors who represented areas outside Davis indicated their intent to approve Mr. Ramos' project. The proposed project was, after all, just outside the city limits of Davis on county land and within county jurisdiction. The City was advised that legally, the County was completely within its rights to approve such a project, and further, the project could be self-sustaining and need not to be dependent on Davis' sewer, water or drainage systems. The County, however, gave Davis the ability to work with Mr. Ramos to see if a development agreement could be entered into, but made clear that if the City could not negotiate an agreement, the County was prepared to proceed with processing Mr. Ramos' application. The County put Davis in a terrible fix, but Davis ultimately made the best of a bad situation.
As a result, between 1986 and 1988, the City of Davis developed the following: a new General Plan (the 1987 General Plan), an East Davis Specific Plan, a South Davis Specific Plan, a Development Agreement with Mr. Ramos, the creation of a Redevelopment Agency ("RDA"), the beginnings of a Major Project Finanacing Plan, and the PTA.
The PTA was hammered out through intensive negotiations between the City of Davis (and its RDA) and the County of Yolo. I served as the Chief Negotiator for the City while Betsy Marchand was the Chief Negotiator for the County.
From the City's perspective, the City was concerned that Davis, at least for the next generation, not be forced again into a situation where the County could develop a project just outside the Davis city limits. While county urban development on unincorporated land is common in California (for example, Sacramento County is highly urbanized), it is unusual for Yolo County.
From the County's perspective, the County was in desperate need of money, particularly in the aftermath of Proposition 13. Yolo County's need for revenue was exacerbated by the County's emphasis on preserving farmland; unquestionably counties derive far more revenue from certain urban projects (such as regional shopping malls) than from ag land. Finally, the City's creation of the RDA was a kick in the County's financial teeth. An RDA effectively takes revenue that would otherwise travel to a county and redirects it to the city's RDA.
So, the framework for an agreement was apparent. The City wanted to secure borders and land use protection while the County wanted money.
And that's precisely what the PTA accomplished. The county agreed to not approve "urban development," as defined, in an identified zone around the City. In exchange, the City would "pass through" the RDA to the County a certain share of the revenue that would otherwise be denied the County.
The PTA has served Davis well since 1987. Absolutely no urban development has been approved by the County surrounding the City of Davis. And this protection will continue until a certain revenue threshold is reached, which is predicted to occur around 2008 to 2010. Accordingly, the secure borders and land use protections will have lasted 22 to 23 years - a generation.
The County has been well-served as well. The RDA took money away from the County. The PTA restored it. The County provides many important services to all Yolo County residents, including Davis residents. Without the PTA, the County would be hard-pressed to pay for those services. Further, without the PTA, the County might be inclined to search for other revenue sources such as urban developments, regional shopping malls or industrial zones which would compete with cities and eat up farmland.
All in all, a win-win scenario.
But that doesn't end the story. The land use protections provided by the PTA end in 8 to 10 years. That gives Davis and Yolo County plenty of time to negotiate the next generation of land use protection and revenue sharing. And the time is ripe to do just that. Davis, Woodland, and Yolo County need to agree upon a Greenline Plan which will establish urban limit lines and preserve a large swath of farmland between Yolo County's two largest urban centers. Let's roll up our sleeves and get to work on the next win-win scenario!