TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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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 Century Communities of California, LLC, a Delaware 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 Century Communities of California, LLC, a Delaware 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 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:
• 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.
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 provided 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, Century Communities of California, 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 Century Communities of California, 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. The proposed Assignment also requires Century Communities to assume those obligations. 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 Century Communities of California, LLC, a Delaware limited liability company.
Attachments: Exhibit A - Location Map Tract Map No. 20446-1
Exhibit B - Partial Assignment of the Preserve Development Agreement