TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PUBLIC WORKS DIRECTOR
SUBJECT
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Chino Preserve Development Corporation - Final Map, Subdivision Improvement Agreement, and Construction Reimbursement Agreement for Tract Map No. 16420-6 (Block 11).
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RECOMMENDATION
1) Approve Final Tract Map No. 16420-6; 2) approve Subdivision Improvement Agreement and securities with Chino Preserve Development Corporation for Tract Map No. 16420-6; 3) Approve a Development Impact Fee Construction Credit / Reimbursement Agreement with Chino Preserve Development Corporation for the construction of master-planned facilities for Tract Map No. 16420-6; and 4) 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”), is requesting City approval of Final Map No. 16420-6 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, with escrow closures anticipated in the summer of 2025.
Tract Map 16420-6 includes the dedication and required surety for portions of offsite improvements within the Amended Tentative Tract Map 16420 area. Additionally, Lots 4 and 7 of Tract 16420-6 will be further subdivided into fee-simple lots in the future.
The Engineering Conditions of Approval (COA) for Block 11 require 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 is required to enter into a Subdivision Improvement Agreement (SIA) and obtain the necessary securities for the improvements. However, following the close of escrow, the guest builders will coordinate with the City to execute new Subdivision Improvement Agreements (SIAs) and assume any outstanding bond obligations.
Additionally, some of the required public improvements are master-planned facilities and are included in the City’s Preserve Development Impact Fee (“DIF”) program. The DIF Ordinance provides that if, as a COA of a development project, a developer constructs a public facility identified in the DIF Nexus and Calculation Report, developer shall be eligible to receive reimbursement and a fee credit toward the DIFs imposed on the development project. Thus, necessitating a construction credit and reimbursement agreement.
ISSUES/ANALYSIS
The requirements made at the time of tentative map approval have been met by the execution of the Subdivision Improvement Agreement for Tract Map No. 16420-6 and by posting the necessary securities to guarantee the construction of public improvements conditioned for Block 11. The City Attorney reviewed and approved Subdivision Improvement Agreement and respective securities, which are attached as Exhibit B.
Additionally, upon the final acceptance of the public improvements the developer will submit its backup documentation to the City, the City Engineer will review the final accepted/approved "as-built" plans, specifications, and supporting documentation and will determine what costs are eligible for DIF credit/reimbursement per the terms of the DIF Construction Credit/Reimbursement Agreement, attached as Exhibit C. Additionally, once the final cost accounting is approved, staff will bring back to the City Council an action to appropriate funds to make progress payments and apply DIF credits issued to the Developer for Tentative Tract Map No.16420-6 until the terms of the agreement are fulfilled.
Attachments: Exhibit A - Location Map Tract Map No. 16420-6
Exhibit B - Subdivision Improvement Agreement
Exhibit C - Construction Credit & Reimbursement Agreement