TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PUBLIC WORKS DIRECTOR
SUBJECT
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Shea Homes Limited Partnership - Replacement Subdivision Improvement Agreement for Tract Map No. 16420-6 (Block 11 - Lots 5, 6 & 8).
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RECOMMENDATION
Approve replacement Subdivision Improvement Agreement and securities with Shea Homes Limited Partnership for Tract Map No. 16420-6 (Block 11 - Lots 5, 6 & 8); and authorize the City Manager to execute any 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
• Public Service Excellence Through Internal & External Partnerships
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 a 32.63-acre Master Site Approval PL21-0056 and Tentative Tract Map No. 20445 for the future development of 305 single-family homes within four neighborhoods, a pocket park, and private recreation center located in the MDR (Medium Density Residential) and CC16 (Community Core 16) land use designations known as “Block 11”. This project is generally located south of Legacy Park Street, east of Main Street, and north of East Preserve Loop.
The developer, Chino Preserve Development Corporation, a Lewis Management Corporation company (“Lewis”), received City Council approval of Final Map No. 16420-6 on April 1, 2025 to subdivide the previously approved Tentative Tract Map No. 16420, as shown in Exhibit A. Lewis is actively developing the site and has entered into purchase agreements with four guest builders.
The Engineering Conditions of Approval (COA) for Block 11 requires 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, Lewis entered into a Subdivision Improvement Agreement (SIA) with the City and obtained the necessary securities for the improvements which were approved with the Final Map.
ISSUES/ANALYSIS
Now that the final escrows for the guest builders have closed, City staff is working with each builder to execute replacement SIAs to transfer and secure their respective obligations. Shea Homes Limited Partnership has purchased Lots 5, 6, and 8 as depicted in the Exhibit B of the attached SIA, and the requirements established at the time of tentative map approval have been satisfied through execution of the replacement SIA for Tract Map No. 16420-6 and posting of the required securities to guarantee construction of the public improvements conditioned for Block 11 (Exhibit B). The City Attorney has reviewed and approved the SIA and the respective securities, which are attached as Exhibit C. In addition, Lewis has executed a Partial Assignment and Assumption Agreement to the Development Agreement with Shea Homes.
Attachments: Exhibit A - Location Map Tract Map No. 16420-6
Exhibit B - Replacement Subdivision Improvement Agreement