TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
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Majestic Chino Heritage, LLC - Vesting Parcel Map. No. 20071 and Subdivision Improvement Agreement.
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RECOMMENDATION
1) Approve Vesting Parcel Map No. 20071; 2) approve the Subdivision Improvement Agreement with Majestic Chino Heritage, LLC, a Delaware limited liability company; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
The Developer shall pay to the City a one-time lump sum in the amount of $10,417,000 prior to issuance of a certificate of occupancy. This amount shall be subject to an annual escalation of three percent (3%), commencing on October 31, 2021, and increasing annually thereafter until paid in full.
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:
• Positive City Image
• Responsible Long-Range Planning
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BACKGROUND
On May 17, 2021, the Planning Commission approved applications submitted by Majestic Chino Heritage, LLC (Developer) for the development of the southeast corner of Mountain Avenue and Bickmore Avenue (Exhibit A). The approved applications include: PL18-0118 (Site Approval) for the construction of a 1,168,710-square-foot speculative warehouse building on Parcel 1 of the project site; PL18-0119 (Vesting Tentative Parcel Map No. 20071) to subdivide the approximately 97-acre project site into two parcels, consisting of Parcel 1 at approximately 54 acres and Parcel 2 at approximately 43 acres; PL18-0120 (Site Approval) for the construction of a 914,040-square-foot speculative warehouse building on Parcel 2; and PL19-0011 (Special Conditional Use Permit) to allow the loading doors for the building on Parcel 1 to face Bickmore Avenue.
The project site is located largely below the United States Army Corps of Engineers (USACOE) 566-foot flood inundation elevation associated with Prado Dam. As a result, development of the site requires the import of fill material from up to five borrow sites within the Prado Dam Reservoir area to raise the building pads above the 566-foot elevation. The Developer is required to obtain all necessary permits and approvals from the USACOE prior to commencing any grading activities.
Recently, the Developer submitted a request for a one-year time extension for the project. Pursuant to the Chino Municipal Code, the Director of Development Services may approve up to three one-year extensions; any additional extension requires Planning Commission approval. On April 15, 2026, the Planning Commission approved the requested extension, extending the project’s entitlement term through May 17, 2027.
Since the original approval, the Developer has obtained the required approvals from the USACOE in Fall 2024 and has substantially completed final engineering for the project.
The Engineering Conditions of Approval for this development require the construction of public improvements along Mountain Avenue and Bickmore Avenue, including, but not limited to, curb, gutter, sidewalk, streetlights, asphalt concrete pavement, landscaping, traffic signal modifications, sewer, water, and drainage improvements. To guarantee completion of these improvements, the Developer is required to enter into a Subdivision Improvement Agreement (SIA) (Exhibit B) and provide the necessary improvement securities. All required improvements shall be constructed at the sole cost and expense of the Developer.
ISSUES/ANALYSIS
The requirements established at the time of tentative map approval will be satisfied through execution of the SIA for Vesting Parcel Map No. 20071, along with the posting of the required securities to guarantee completion of the public improvements.
Independent of any other fees required, the Developer shall pay the City a fee in the amount of $10,417,000. This amount shall be subject to an annual increase of three percent (3%), commencing on October 31, 2021, and continuing each year thereafter until the fee is paid in full. The fee shall be paid in full prior to issuance of a certificate of occupancy. This payment is intended to offset costs associated with the public improvements along Pine Avenue.
Attachments: Exhibit A - Location Map
Exhibit B - Subdivision Improvement Agreement (SIA)