Davis, CA — The City Council on Tuesday will consider approving a revised development agreement that formally transfers responsibility for the long-delayed Chiles Ranch housing project to a new development team, potentially paving the way for construction on the long-vacant infill site at 2411 East 8th Street.
City planning staff are recommending the council adopt a resolution approving an Amended and Restated Assignment and Assumption of the Chiles Ranch Development Agreement. The agreement shifts the project from the original developer, New Urban Development Davis, LLC, to Century Communities of California, LLC—one of the nation’s largest homebuilders—and its financing partner, Chiles Ranch – Davis, L.P. (also known as Hearthstone).
The revised agreement clarifies the roles and responsibilities of the new parties without altering the terms of the original development agreement, which was first approved in 2009. Century Communities will be responsible for building out the project under the same requirements and timelines that have been repeatedly amended since the project was first greenlit over a decade ago.
Originally approved in June 2009 as a 103-unit housing development, Chiles Ranch has experienced years of delays and multiple rounds of amendments. These included changes to the housing count, extensions of the project timeline, and updated city fee requirements. In its current form, the agreement authorizes the development of 96 residential lots and extends the term of the project through July 2029.
The most recent amendment, passed in May 2024, included increased fees, stronger site maintenance obligations, revised timing requirements, and a new mandate for an annual progress report. The Supplemental Residential Fee was also raised to $6,000 per market-rate unit.
In May 2024, Century Communities entered into a purchase agreement with New Urban Development to acquire the project. The City Council formally approved an initial assignment of the agreement that July, with the legal transfer recorded in February 2025. Since then, Century has partnered with Hearthstone, which closed on the land and will act as the project’s land banker, while Century remains responsible for construction and phased lot acquisition.
The amendment before the council on Tuesday essentially restates the prior transfer agreement in fuller detail, making several clarifications:
- Development Responsibility: Century Communities will remain responsible for all development obligations under the city’s agreement. The company retains the right to purchase lots in phases under a prearranged option.
- Land Ownership and Financing: Hearthstone holds title to the land and will serve as the financing entity. Century’s obligation to develop the project is maintained under a separate agreement with Hearthstone.
- City’s Role: The city is legally compelled to approve the assignment, provided the incoming developer demonstrates sufficient financial capacity and experience—criteria city staff determined Century meets.
The staff report notes that “approval of the agreement will allow development of the project to occur with assumption of the project’s development agreement requirements” and emphasizes that there is “no direct fiscal impact on the city.”
The report frames the approval as furthering the City Council’s stated goal of “Shoring Up the Housing Continuum” by facilitating long-stalled housing production within city limits.
Given Davis’ severe housing shortage, the restart of the Chiles Ranch project could provide a modest but symbolically important contribution to local supply. As an infill site, the development offers an alternative to controversial peripheral growth proposals while aligning with the city’s sustainability and land use objectives.
Staff noted that the item is being brought directly to the City Council without commission review, reflecting the procedural nature of the assignment rather than any substantive change to the underlying development plan.
The matter is on the Consent Calendar and is scheduled as part of Tuesday’s City Council meeting.
