TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Assumption and Partial Assignment of the Preserve Development Agreement between the City of Chino, a Municipal Corporation; Chino Development Corporation, a California Corporation; and TH The Preserve Chino LLC, a California Limited Liability Company.
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RECOMMENDATION
1) Approve an Assumption and Partial Assignment of the Preserve Development Agreement between the City of Chino, a municipal corporation; Chino Development Corporation, a California corporation; and TH The Preserve Chino LLC, a California limited liability company; and 2) authorize the City Manager to execute all documents on behalf of the City.
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FISCAL IMPACT
There is no direct fiscal impact to the City of Chino.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Public Service Excellence through Internal and External Partnerships
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Transfer Out: Click or tap here to enter text. |
BACKGROUND
In 2004, the City of Chino (“City”) entered into a Development Agreement (“DA”) with three entities of the Lewis Management Corporation known as Chino Development Corporation, Chino Preserve Development Corporation, and Chino Holding Company, LLC (collectively referred to as “Lewis Companies”). The DA was entered into to help guide the orderly development of The Preserve, which was envisioned as a master-planned residential and commercial community. Additionally, the DA set the terms and conditions of development on property owned by Lewis and established the rights and obligations of the developer and the City during development.
On June 6, 2023, the City Council approved an amended and restated DA to incorporate current terms and conditions to ensure responsible Long-Range Planning and Fiscal Stability through build-out of the Preserve Specific Plan area.
Recently, Chino Preserve Development Corporation sold Tract Map No. 20446 to TH The Preserve Chino LLC (also known as Trumark). Trumark will take over the remaining work for this tract that was going to be completed by Chino Preserve Development Corporation. This transition required a new Subdivision Improvement Agreement and securities, which was approved by the City Council on October 1, 2024.
ISSUES/ANALYSIS
Per the terms of the DA, the Lewis Companies have the right to sell, transfer or assign property in whole or in part pending the transfer does not violate the provisions of the Subdivision Map Act - Government Code Section 66410 or Title 19 of the Chino Municipal Code.
Lewis Companies approached the City to request the approval of a Partial Assignment and Assumption Agreement with the purchaser, TH The Preserve Chino LLC for the acquisition of certain property as depicted in Exhibit A. Because this property is covered by the existing DA, it is necessary for the City Council to provide its consent to the Partial Assignment and Assumption Agreement (“Assignment”) as outlined in Exhibit B.
Lewis Companies is selling the said property in accordance with the terms and conditions set forth in the Sale Agreement between TH The Preserve Chino LLC, and Chino Preserve Development Corporation (CPDC). The proposed Assignment requires the City to release CPDC from obligations under the Preserve DA as to the property covered by the Assignment. Staff is not aware of any outstanding issues that would prevent that release. Therefore, it is staff’s recommendation that the City Council approve the Assignment of the Preserve DA between the City of Chino, CPDC, and TH The Preserve Chino LLC, a California limited liability company.
Attachments: Exhibit A - Location Map Tract Map No. 20446
Exhibit B - Partial Assignment of the Preserve Development Agreement