TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PUBLIC WORKS DIRECTOR
SUBJECT
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Amendments to Subdivision Improvement Agreements for Tract Map Nos. 20446 & 20446-1 (Block 3) in The Preserve.
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RECOMMENDATION
1) Approve an amendment to the Subdivision Improvement Agreement and warranty bond with TH The Preserve Chino LLC, a California limited liability company, for Tract Map No. 20446; 2) approve an amendment to the Subdivision Improvement Agreement and warranty bond with Century Communities of California, LLC, a Delaware limited liability company, for Tract Map No. 20446-1; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
There is no direct fiscal impact to the City.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above will further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Responsible Long-Range Planning
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BACKGROUND
In 2008, the City’s Planning Commission approved an “A” level Master Site Approval and Tentative Tract Map No. 16420 to subdivide 522 acres of land generally located south of Pine Avenue, west of Hellman Avenue, and north and east of Chino Corona Road for what is known as the South of Pine area in The Preserve. The purpose of the original Master Site Approval was to establish large parcels, and phase major backbone street systems for both future residential and non-residential development within the master plan area.
On February 23, 2022, the City’s Planning Commission conditionally approved a Development Modification to the Master Site Approval and Tentative Tract Map No. 16420. The modification removed the phased development concept originally approved, divided the larger land area into smaller lots to be reconveyed for development, and established improvement areas for future development. It is important to note that the Developer modification also incorporated conditions of approval for improvements along Pine Avenue for associated developments within the larger project area to help facilitate needed improvements to the area.
Subsequently, on September 19, 2022, the City’s Planning Commission approved Master Site Approval PL21-0045 and Tentative Tract Map No. 20446 to create 114 numbered lots and 7 lettered lots to accommodate 114 single-family homes (known as “Block 3”). This project is generally located on the north side of Chino Corona Road between East Preserve Loop and Legacy Park Street as shown in Exhibit A. Tract Map No. 16420 (as amended) required surety for portions of offsite improvements within the Tentative Tract Map No. 20446 area.
As a result, the City Council approved Chino Preserve Development Corporation’s (“developer”) Final Tract Map No.16420-5 on November 21, 2023, to subdivide 24.91 acres within Block 3 as shown in Exhibit B.
On February 6, 2024, the City Council approved the developer’s Final Tract Map No. 20446 and No. 20446-1. This subdivided the previously approved Tract Map No. 16420-5 for the development of a 10.78-acre subdivision consisting of 55 single-family residential units (Tract Map No. 20446) and a 10.53-acre subdivision consisting of 59 single-family residential units (Tract Map No 20446-1). These subdivisions are in the Low-Density Residential land use designation area of The Preserve within Block 3, as shown on Exhibit C and C-1.
The Engineering Conditions of Approval (COA) for Block 3 required public improvements including, but not limited to curb, gutter, sidewalk, streetlights, asphalt concrete pavement, median/parkway landscape, sewer, water, recycled water and drainage improvements. To guarantee the completion of these public improvements, the developer entered into a Subdivision Improvement Agreement (SIA) and obtained the necessary securities for the improvements.
The requirements established during the tentative map approval have been fulfilled through the execution of the SIA for Tract Map Nos. 20446 and 20446-1, which were approved by the City Council in February 2024. Additionally, the necessary securities have been posted to guarantee the construction of public improvements conditioned for Block 3. The City Attorney reviewed and approved the SIA and respective securities, which are attached as Exhibit D and D-1.
Subsequently, Chino Preserve Development Corporation sold Tract Map No. 20446 to TH The Preserve Chino LLC (its sole member and manager is Trumark Homes LLC) and Tract Map No. 20446-1 to Century Communities of California, LLC. These new builders will take over the remaining work for each respective tract that was going to be completed by Chino Preserve Development Corporation. This transition requires new Subdivision Improvement Agreements and securities. The new builders provided updated cost estimates for the remaining work on each tract, leading the City to reduce Chino Preserve Development Corporation’s bonds in line with the existing agreements, reflecting the work already completed and the tasks being handed over to the new builders.
The requirements made at the time of tentative map approval have been met by the execution of the replacement SIAs with the guest builders for Tract Map Nos. 20446 and 20446-1 and by posting the necessary securities to guarantee the construction of the remaining public improvements conditioned for Block 3. The City Council approved these agreements on October 1, 2024, which are attached as Exhibits E and E-1.
ISSUES/ANALYSIS
The City would typically release performance and labor/material bonds for Chino Preserve Development Corporation once the guest builders establish SIAs, retaining warranty bonds until the City Council accepts the public improvements as complete. However, the developer has requested the release of warranty bonds. Since the improvements have not yet been officially accepted, the guest builders will maintain warranty coverage. An amendment to the SIAs and adjustment to the warranty bonds are required to reflect the updated coverage. TH The Preserve Chino LLC, a California limited liability company, for Tract Map No. 20446 will be required to retain a warranty bond in the amount of $336,100 based on the full amount of the cost of construction. Century Communities of California, LLC, a Delaware limited liability company, for Tract Map No. 20446-1 will be required to retain a warranty bond in the amount of $241,200 based on the full amount of the cost of construction.
The City Attorney has reviewed and approved the amendments to the SIAs and respective warranty bonds, which are attached as Exhibits F and F-1.
Attachments: Exhibit A Location Map Master Site Approval PL21-0045
Exhibit B Location Map Tract Map No. 16420-5
Exhibit C Location Map Tract Map No. 20446
Exhibit C-1 Location Map Tract Map No. 20446-1
Exhibit D Subdivision Improvement Agreement Tract Map No. 20446
Exhibit D-1 Subdivision Improvement Agreement Tract Map No. 20446-1
Exhibit E Subdivision Improvement Agreement Tract Map No. 20446
Exhibit E-1 Subdivision Improvement Agreement Tract Map No. 20446-1
Exhibit F Amendment Tract Map No. 20446
Exhibit F-1 Amendment Tract Map No. 20446-1