BOARD MEMBERS:

DISTRICT 1 - Dom Zanger
DISTRICT 2 - Kollin Kosmicki
DISTRICT 3 - Mindy Sotelo
DISTRICT 4 - Angela Curro
DISTRICT 5 - Vacant
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Agenda Item
Regular Meeting of the
Board of Supervisors
Tuesday, October 13, 2026

Website:
www.sanbenitocountyca.gov
COUNTY EXECUTIVE OFFICER:
Esperanza Colio Warren

COUNTY COUNSEL:
Gregory P Priamos

CLERK OF THE BOARD:
Vanessa Delgado
 

Item Number: 3.3
MEETING DATE:
10/13/2026
 
DEPARTMENT:
RESOURCE MANAGEMENT AGENCY
 
AGENDA ITEM PREPARER:
Abraham Prado
 
DEPT HEAD/DIRECTOR:
Abraham Prado
 
 
SUBJECT:


PLANNING AND BUILDING DEPARTMENT - A. PRADO
1. Adopt Resolution approving the Agreement for Tax Transfer Upon Annexation between the County of San Benito and the City of Hollister for the property owner-initiated Chappell Road Annexation (LAFCO 2024-549), accepting the property tax exchange set forth in the Agreement; and
2. Authorize the Chair, County Executive Officer, or designee to sign the Agreement.
SBC FILE NUMBER: 790
RESOLUTION NO.: 2026-137

 
AGENDA SECTION:


REGULAR AGENDA

 
BACKGROUND/SUMMARY:


Revenue and Taxation (R&T) Code 99 provides the state law that governs the processing of the tax exchange agreements for annexations.  The R&T Code allows a Master Agreement to be used by the jurisdictions or for a separate tax agreement negotiated by the City and County.  The previous Tax Sharing Agreement between the City and County expired on December 31, 2019.  In December 2019, the Board of Supervisors and the City of Hollister approved a new master residential agreement for tax transfer that sets forth how property tax shall be divided between the jurisdictions in the event of a property annexation to the City of Hollister.  Please see attached "2019 Master Residential Tax Sharing Agreement Between the City of Hollister and County of San Benito." The December 2019 Master Residential Tax Agreement does not pertain to applicant/owner initiated annexations with the City of Hollister.  The December 2019 Master Residential Tax Sharing Agreement is limited to City initiated annexations. Per Section 4b "Applicable Jurisdictional Changes" of the 2019 Master Residential Tax Sharing Agreement between the City of Hollister and County of San Benito, "notwithstanding any other provision to the contrary, if annexation of any property is initiated in any manner other than by CITY application, this agreement is not applicable to that property and a separate annexation agreement shall be required prior to LAFCO consideration." 

 

The City of Hollister 2040 General Plan Land Use Map identifies all seven parcels included in the Tax Transfer Agreement as being within the City of Hollister’s Sphere of Influence. For ease of reference, the Attachment A "Chappell Road Annexation Hollister 2040 General Plan" identifies each of the seven parcels as Parcels 1 through 7 using the land use map of the 2040 Hollister General Plan. Of the seven parcels, three are designated Low Density Residential under the City of Hollister 2040 General Plan, which allows a density of 6 to 10 dwelling units per gross acre. These parcels include:

  • Parcel 1 – APN 019-350-017, consisting of approximately 25 acres;
  • Parcel 2 – APN 019-350-018, consisting of approximately 1.95 acres; and
  • Parcel 3 – APN 019-330-011, consisting of the southern portion of approximately 12.56 acres that's traversed by the Highway 25 Bypass.

 

Three parcels located along Santa Ana Road are designated High Density Residential under the City of Hollister 2040 General Plan, which allows a density of 30 to 65 dwelling units per gross acre. These parcels include:

  • Parcel 4 – APN 019-350-006, consisting of approximately 5 acres;
  • Parcel 5 – APN 019-350-010, consisting of approximately 4.91 acres; and
  • Parcel 6 – APN 019-350-009, consisting of approximately 4.91 acres.

The remaining portion of APN 019-330-011, located on the north side of the Highway 25 Bypass/Pinnacles National Parkway, is designated North Gateway Commercial under the City of Hollister 2040 General Plan and its identified in Attachment A as Parcel 7. This designation allows commercial uses with a floor area ratio of up to 2.0 and residential development at a density of 30 to 65 dwelling units per gross acre. Attachment A "Chappell Road Annexation Hollister 2040 General Plan" is provided to illustrate the location and configuration of all seven parcels and to identify each parcel by its corresponding number for reference to the descriptions above.

 

Per the City of Hollister 2040 General Plan, the Low Density Residential land use designation "is intended to promote and protect single-family neighborhoods.  Low Density Residential land uses are intended to provide sites for single-family detached units, duplexes, and Planned Unit Development (PUD)." Per the City of Hollister 2040 General Plan, the High Density Residential land use designation "provides opportunities for multiple family residential development. The range of unit types includes multifamily apartments and condominiums." Per the City of Hollister 2040 General Plan, the North Gateway Commercial  land use designation "is intended to foster an attractive entry to the City of Hollister by featuring commercial and service-oriented businesses along with high-employment uses such as office parks. This designation also allows multifamily dwellings, such as townhomes, condominiums, and apartments." 

 

This resolution approves the Agreement for Tax Transfer Upon Annexation by and between the City of Hollister and the County of San Benito for applicant/owner initiated Chappel Road Annexation into the City of Hollister consisting of seven parcels constituting 61.33 acres by private petitioners James T. Dassel Revocable Trust, Perreira Family Trust, Silva Irrev. Residual Trust, Daniel De Roza, Righetti Living Trust, Righetti Bros, and Antonio and Anne Faria for the term remaining in effect through January 1, 2030, as indicated in Exhibit A "Agreement for Tax Transfer Upon Annexation Righetti Annexation" identifying the Chappell Road Annexation into the City of Hollister.

 
FISCAL IMPACT:


N/A

 
STAFF RECOMMENDATION:


1. Adopt Resolution approving the Agreement for Tax Transfer Upon Annexation between the County of San Benito and the City of Hollister for the property owner-initiated Chappell Road Annexation (LAFCO 2024-549), accepting the property tax exchange set forth in the Agreement; and
2. Authorize the Chair, County Executive Officer, or designee to sign the Agreement.

 
ATTACHMENTS:
Board Agenda Fact Sheet - Resolution Agreement for Tax Transfer
Resolution BOS Tax Agreement for Applicant-Owner Initiated Annexations with the COH SC
Exhibit 1 - Tax Sharing Agreement - Righetti Annexation
2019 Master Residential Tax Sharing Agreement Between the City of Hollister and County of San Benito
Attachment A- Chappell Road Annexation Hollister 2040 General Plan