The Role of Local Government in Development

Why this post?

I often hear questions like these:

  • Why is the County permitting more development when schools are already at capacity?
  • Why is the County approving new projects when we still lack sufficient commercial services?
  • Why aren’t developers covering the full cost of the necessary infrastructure?
  • Why did the County approve business X when the community needs or prefers business Y?

These questions are common, especially when there’s confusion about the role cities and counties play in the development process. The purpose of this post is to clarify the role of local governments in development and help readers better understand how decisions are made. It’s a follow-up to a previous blog post titled How Development Happens in Plumas Lake.

Cities & Counties Make the Rules

In California, the State establishes overarching building codes and land use regulations, delegating authority to cities and counties to define and enforce these rules further. Within city boundaries, the city government holds the land use authority, while outside of city limits, the county government assumes this role. For example, Marysville and Wheatland are incorporated cities responsible for land use within their boundaries. In contrast, Yuba County oversees land use in unincorporated areas such as Plumas Lake, Arboga, Olivehurst, and Linda.

What kinds of “rules” does Yuba County (and other cities and counties) create regarding land use?

  • General Plan: This is a comprehensive framework guiding decisions on where and how development should occur, prioritizing natural resources to ensure the highest quality of life for residents.
  • Development Code:  This code defines specific requirements for implementing the General Plan and includes:
    • Land use regulations:  These rules specify permitted, conditionally permitted, or prohibited land uses in each zoning district, along with any special requirements. You can find the zoning designations section of the Development Code here and access an interactive map showing zoning for every parcel in the unincorporated county here.
    • Development regulations:  These control the height, bulk, location, and appearance of structures, covering specific uses, development and site regulations, performance standards, parking, signage, antennas, wireless communications, and nonconforming uses.
    • Land division regulations: These rules govern the division of land, specifying design, improvement, and survey data for subdivisions, and outline the procedures for securing final approval for subdivision maps.
    • Administrative regulations: These include detailed procedures for administering the Code, including common processes, procedures, and standards for discretionary entitlement applications and other permits.
  • Building Code: This code defines how structures must be built to ensure public health and safety.

  • Permitting Process: Yuba County establishes a permitting process, including associated fees, to validate compliance with the above requirements.

  • Impact Fees: Yuba County sets and collects impact fees to mitigate the effects of development on existing infrastructure. It’s important to note that while Yuba County sets impact fees for infrastructure it provides, other local government entities, like schools and special districts (e.g., OPUD, Linda Fire, RD784, TRLIA, SYTIA), set their impact fees.

Specific Plans: A specific plan, such as the Plumas Lake Specific Plan, serves as a unique development code for a particular geographic area. Generally, both the county’s development code and the specific plan govern development within a specific plan area. However, if there’s a conflict, the specific plan takes precedence.

Cities & Counties Enforce the Rules; but Only the Rules

As outlined earlier, cities and counties establish rules to guide the building and development process. If a building or development project adheres to these rules, it is considered non-discretionary and must be approved as long as all requirements are met, and the necessary fees are paid.

The implications of this include:

Development Timing: Yuba County does not control the timing of residential, commercial, or industrial development. The timing is determined by the free market and the preferences of the property owner and developer for a specific project.

Limited Discretion: Yuba County cannot deny a project if it complies with the established rules. Consequently, neither the County nor residents have the authority to provide input on most projects. This applies to a variety of situations, including:

  • A resident adding a pool, expanding their home, or making other minor modifications, provided they comply with zoning, building, and development codes.
  • A resident constructing a new home on a lot zoned for residential use.
  • A business being built and operated in alignment with the zoning of a commercial parcel.
  • • residential developer building a subdivision on land zoned for single-family development, particularly if there is an existing development agreement.

Public Input: In some cases, the zoning or development code requires specific types of projects to undergo county and/or public input. However, if the project meets reasonable conditions and complies with the regulations, the County has limited discretion to deny approval. This includes situations such as:

  • Approval of new subdivision maps for land zoned for single-family development.
  • Extensions of existing development agreements.

Revisiting the Original Questions

With the background information in mind, let’s address the initial questions:

Why is the County permitting more development when schools are already at capacity?

As mentioned earlier, the County cannot control the timing of development. If land is zoned for residential use and a developer follows all the established rules and pays the required fees, the County—and the school district—cannot legally prevent the development from proceeding. The land in areas like Plumas Lake and Arboga was zoned for residential development back in the early 1990s, which is why development is occurring there now.

Why is the County approving new projects when we still lack sufficient commercial services?

Again, the County does not control the timing of development. Residential and commercial projects are typically undertaken by different landowners and developers. The County cannot require commercial developers to develop their land, nor can it force residential developers to wait until commercial projects are completed. The County’s role is to set aside land for both residential and commercial uses, support these developments to the greatest extent possible, and let property rights and market forces guide the rest.

Why aren’t developers covering the full cost of the necessary infrastructure?

As briefly discussed, the County, school districts, and special districts set impact fees that developers must pay to help fund the infrastructure needed due to their developments. However, there are two important caveats to consider:

  • School Impact Fees: The State caps the amount of impact fees that a school district can charge, and this amount is often significantly less than what is needed to build a new school. While districts can negotiate higher fees, these are still influenced by market forces. If the land is zoned for residential use, developers are under no legal obligation to pay more than the State’s cap.
  • Nexus Requirement for Impact Fees: Courts have ruled that development impact fees for an individual house must have a direct connection (nexus) to the cost of infrastructure needed for that specific house. This means that while a developer may be required to contribute to large infrastructure projects like new schools or transportation improvements, they can only be charged for the share directly associated with each house they build. Since infrastructure like high schools, bypasses, and freeway interchanges serves more than just one development, additional funding sources—such as school bonds or state and federal grants—are often needed.

See the blog post What does it cost to build a home in Plumas Lake for additional details about impact fees in Plumas Lake.

Why did the County approve business X when the community needs or prefers business Y?

Zoning regulations determine what types of businesses are allowed on specific parcels. Zoning is typically broad, allowing for a variety of business types—such as stores, restaurants, gas stations, gyms, cleaners, doctor’s offices, and more—on commercial parcels. The decision about which specific business or brand (e.g., McDonald’s vs. Taco Bell, or Safeway vs. Bel Air) to build is up to the property owner and the business owner, not the County.

I hope this clarifies the County’s role in development. Ultimately, while the County sets the rules, the decisions about what gets built and when are driven by property rights and the free market.