TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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Lewis Companies Development Agreement Annual Compliance Certification.
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RECOMMENDATION
1) Certify that Chino Development Corporation, Chino Preserve Development Corporation, and Chino Holding Company, LLC are in compliance with the requirements of the Amended and Restated Development Agreement; 2) approve the issuance of a Certificate of Compliance; and 3) authorize the Director of Development Services to sign the Certificate of Compliance.
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FISCAL IMPACT
There is no fiscal impact.
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
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BACKGROUND
On June 6, 2023, the City entered into an Amended and Restated Development Agreement (“Development Agreement”) with three entities of the Lewis Operating Company known as Chino Development Corporation, Chino Preserve Development Corporation, and Chino Holding Company, LLC (collectively, “Owners”). The Development Agreement was executed to help guide the orderly development of The Preserve, which was envisioned as a master planned residential and commercial community. Further, the Development Agreement set out the terms and conditions for development on Owners’ property and established the rights and obligations of Owners and the City during the course of development.
The Amended Development Agreement supersedes the prior development agreement between the parties, entered into in June 2004, and amended several times (collectively, “Original DA”). At the time of the Original DA approval, Owners owned or controlled 1,125 of the approximately 2,500 developable acres in The Preserve. Since the time of the Original DA, Owners have acquired additional property for future development and disposed of some parcels to other developers to complete the required development obligations under the Original DA. The current Development Agreement provides for Owners to construct residential units and other improvements in The Preserve and comply with several obligations to the City within certain timelines, some of which are relevant to the reporting period covered by this report, as further described below.
ISSUES/ANALYSIS
The Development Agreement requires an annual review of the terms and conditions of the Development Agreement, along with the production of an Annual Monitoring Report. Pursuant to Article 11 of the Development Agreement, the Owners are required to produce an annual monitoring report demonstrating the Owners’ compliance with the terms and conditions of the Development Agreement. Upon receipt of the monitoring report, City staff is to conduct an analysis of the report to determine its accuracy, and then submit a report to the City Council indicating compliance or lack of compliance with the terms and conditions of the Development Agreement. The Owners have the right to request a formal Certificate of Compliance from the City Council.
On June 5, 2024, Owners submitted the annual monitoring report to the City, and staff has completed its analysis of the information contained in the report. Based on the review of the annual monitoring report, staff has determined that the Owners are in compliance with all of the requirements of the Development Agreement for the period July 1, 2023 through June 30, 2024.
The following describes the requirements for the relevant reporting period and statements of Owners’ compliance with each requirement:
a. Per Section 4.3 “Schedule of Development” of the Development Agreement, Owners were required to prioritize Block 3 Low Density Residential Units. Owners are currently developing the required units in accordance with this requirement.
b. Per Section 4.3 “Schedule of Development” of the Development Agreement, Owners are required to develop an average of 100 units per year retroactively between July 1, 2020 through June 30, 2024 for a total of 400 units. This obligation has been completed.
c. Per Section 5.4 “RV Parking” of the Development Agreement, Owners were required to contract with a third party to provide for 50 recreational vehicle parking spaces at the College Park Community. Owners have contracted with a third party for such 50 RV spaces in accordance with this requirement.
d. Per Section 6.1 “Entry Signage and Monumentation” of the Development Agreement, Owners were required to pay to City $50,000 for monument signs at Garden Park and Forest Park. On July 26, 2023, Owners paid such amount to the City in accordance with this requirement.
Owners have requested that the City provide them with a formal Certificate of Compliance relating to this annual review. A copy of the Annual Monitoring Report is attached as Exhibit “A”.
Attachment: Exhibit “A” - Annual Monitoring Report