Development agreement

The Facebook Campus Expansion project included a development agreement. Development agreements are legally binding agreements between the City of Menlo Park and an applicant that provide an applicant with vested rights to develop the project in exchange for providing benefits to the City. A development agreement is commonly used for land use developments that will be implemented in phases over a period of time and “freezes” development regulations at the time of approval. Development agreements also allow the City to obtain benefits from the project that would not otherwise be possible in exchange for the vested rights.

The Facebook Campus Expansion Project includes a development agreement and a development agreement amendment, approved in November 2016 and November 2017 respectively.

Facebook and the City also entered into development agreements for the East Campus (approved June 2012) and West Campus (approved April 2013) projects.

Development agreement annual reviews


The Planning Division evaluates Facebook’s good faith compliance with the terms of Facebook’s development agreements annually. The development agreements include a requirement that “The City shall, at least every 12 months during the term of this Agreement, review the extent of Facebook’s and Owner’s good faith compliance with the terms of this Agreement pursuant to Government Code Section 65865.1 and Resolution No. 4159.” The Planning Commission is charged with conducting a public hearing on Facebook’s good faith compliance with the terms of its development agreements. On May 4, 2020, the Planning Commission held a public hearing and determined that Facebook has complied, in good faith, with the terms of all of its development agreements during the 2018- 2019 review year. Future reviews will be conducted by the calendar year for simplicity. A summary of the detailed compliance for all development agreement terms for the 2018-2019 review year is available as attached summary tables to the 2018-2019 review year staff report.