2017/02/02 KB Home Coastal, Inc. TR Map 30142 Model Home Complex Agreement CITY OF MENIFEE
Planning Division
Community Development Department
Model Home Complex Agreement for
Tract Ma� No. 30142
This agreement ("Agreement") is made this ZN day of j (vkvr/ , 2017, by and between
the City of Menifee ("City") and KB Homes Coastal, Inc., ("Developer")kcollectively the"Parties")
in exchange for good and valuable consideration receipt of which is hereby acknowledged.
The City agrees to issue Building Permits for a model home complex and associated facilities (the
"Model Home Complex") as set forth on Exhibit A to this Agreement on property located as Lots
73 through 75 within Tract No. 30142 (the "Tract" or "Tract Map") upon completion of the terms
and conditions set forth in this Agreement.
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The Tract is within the City of Menifee and is the property of KB Home Coastal, Inc. The Tract is
presently zoned One Family Residential (R-1). The Property's land use designation under the
General Plan is Residential (2.1-5 R). Such zoning and General Plan designations allow the
construction and sale of individual single family dwellings, one per recorded lot,with City approval
and recordation of a Tract Map as provided under the State of California Subdivision Map Act.
Developer has requested approval to construct two (2) model homes and associated facilities
within the Model Home Complex for the display of home product types and the sale of homes
("Sales Office") in the Tract. Because the Model Home Complex will contain dwellings that
possess atypical features from those of a standard home, such as office accommodations, k
storefront windows instead of garage door, trap fencing, grass in lieu of a finished driveway, the F
City agrees to allow construction and operation of such atypical features under this Agreement,
for a period not to exceed three (3) years, unless extended in writing as provided herein and
subject to the requirements and stipulations set forth in this Agreement.
It is understood and agreed that all physical public infrastructure improvements required for the
safe ingress and egress to the Model Home Complex from existing, improved and accepted public
rights-of-way shall be in place to the satisfaction of the City's Engineering Department, regardless '
of whether such improvements have been finally approved and accepted by the City prior to
opening the Model Home Complex to the public. Developer shall assure the physical safety of
customers/clients that may visit the Model Home Complex approved under this Agreement. While
phasing of development shall be allowed, each phase must be approved by the City and
constructed in such a manner as to assure the safety of customers/clients, as well as new home
owners and all construction shall be in compliance with all state and federal regulations, including
without limitation, compliance with the Americans with Disabilities Act.
Model Home Complex Agreement for Tract No. 30142
Developer agrees to remove, amend, modify or reconstruct, or cause the removal, amendment,
modification or reconstruction of the individual dwellings within the Model Home Complex to the
level and degree necessary to assure that such structures are clearly identifiable as a typical
home within the surrounding neighborhood of the dwelling units upon full occupancy, but in no
case more than thirty(30) days from the close of escrow from the last dwelling sold by Developer
within Tract No. 30142, unless otherwise agreed to in writing by the City. At a minimum,
Developer shall remove any trap fencing, all signage or other displays, attraction or directional
devices used to direct individuals to the Model Home Complex, remove any parking surface
utilized as a parking lot for the Model Home Complex, and shall remove/modify/reconstruct the
Sales Office to a standard garage, infill any access ways within or through block walls or fences
to the Model Home Complex, remove any landscaping/associated irrigation and install City
required driveway surfaces where needed, and remove all other ancillary items atypical of a
single-family residential dwelling.
The above noted removal, amendment, modification or reconstruction of the individual dwellings
within the Model Home Complex shall be completed within thirty (30) days from the close of
escrow of the final dwelling within the approved Tract, or by the close of escrow of any dwelling
within the Model Home Complex, whichever comes first, unless otherwise mutually agreed in
writing by and between the City and Developer. In no case, however, shall the modifications
agreed to under this Agreement remain in place beyond three (3) years from the date of this !
Agreement, unless otherwise extended by mutual agreement of the Parties in writing. I{'
The location of the dwellings subject to this Agreement is lot specific and the approvals granted
herein shall not be transferable between lots. This limitation, however, does not preclude the City
and property owner from amending this Agreement, in writing, to establish alternative location(s)
for the Model Home Complex, or individual dwellings within a Model Home Complex. I
A surety, in a form acceptable to the City Manager of the City of Menifee, is herewith provided in
the sum of (13 ,800.00 for the express purpose of the removal/modifications/reconstruction of
the Model Home Complex as in this Agreement, shall be provided prior to and as an integral part j
of entering into this Agreement. Developer shall notify the City of completion of any
removal/modification/reconstruction undertaken pursuant to the terms of this Agreement and the
City shall inspect and review the Model Home Complex within thirty (30) days of receipt of such
notification. If the City determines and is satisfied that Developer has removed, amended, i
modified or reconstructed, or caused the removal, amendment, modification or reconstruction of
the individual dwellings within the Model Home Complex to the level and degree necessary to
assure to assure that such structures are clearly identifiable as typical homes within the
surrounding neighborhood of the dwelling units , any surety, cash deposit or release of bonds in �.
the possession of the City directly associated with the Model Home Complex following such
removal, amendment, modification or reconstruction shall be returned to the undersigned within
thirty (30) days of the written notification by the property owner or his/her representative of the
completion of such work.
If Developer, or a representative, or agent thereof, fails to remove, amend, modify or reconstruct, j
or cause the removal, amendment, modification or reconstruction of the individual dwellings within
the Model Home Complex to the satisfaction of the City, the undersigned authorizes the City, its
employees, representatives or agents, to enter the tract, physically remove, amend, modify or
reconstruct, the dwellings within the Model Home Complex to a level and degree necessary to
assure compliance with the terms of this Agreement. Any and all costs incurred by the City,
including any fees from agencies other than the City, including attorney fees, for said removal,
amendment, modification or reconstruction shall be deducted from the surety noted above and
Page 2 of 5
Model Home Complex Agreement for Tract No. 30142
provided by Developer. Any costs incurred by the City in excess of the surety established herein
and on file with the City shall be reimbursed by Developer to the City within thirty(30)days of the
written notification of the completion of such work. Neither a Certificate of Occupancy nor Final
Inspection shall be issued or conducted upon the dwellings subject to this Model Home Complex
Agreement until such reimbursement has been provided to the City. Any excess surety, cash
deposit or release of bonds still in the position of the City following any removal, amendment,
modification or reconstruction of the above noted dwellings shall be returned to the undersigned
within thirty (30) days of the completion of such work.
No Certificate of Occupancy or Final Inspection shall be requested or granted for any individual
dwelling subject to this Model Horne Complex Agreement prior to the conversion of the dwellings
within the Model Home Complex until such time as the dwellings are removed, amended, modified
or reconstructed, as identified herein. A temporary Certificate of Occupancy may be issued to
allow the furnishing, preparation of work for display, display and use as office space of the Model
Homes to potential buyers.
To the full extent permitted by law, Developer agrees to indemnify, defend, and hold harmless the
City, its officers, employees, agents, and volunteers ("Indemnified Parties")from and against any
and all actions, either judicial, administrative, arbitration, or regulatory, damages to persons or
property, losses, costs, penalties, obligations, errors, omissions, or liabilities whether actual or
threatened ("Claims or Liabilities") that may be asserted or claimed by any person, firm, or entity
arising out of or in connection with the performance of this Agreement, operations, or activities
provided herein of Developer, its officers, employees, agents, subcontractors, or invitees, or any
individual or entity for which Developer is legally liable ("Indemnors"), or arising.from Developer's
reckless or willful misconduct, or arising from Developer's or Indemnors' negligent performance
of or failure to perform any term, provision, covenant, or condition of this Agreement, and in
connection therewith: I
Developer shall defend (with counsel selected by City) any action or actions filed in connection
with any of said Claims or Liabilities and will pay all costs and expenses, including legal costs and
attorneys' fees incurred in connection therewith.
Developer will promptly pay any judgment rendered against City, its officers, agents, or
employees for any such Claims or Liabilities arising out of or in connection with the performance
of or failure to perform under this Agreement, operations or activities of Developer hereunder;and
Developer agrees to save and hold City, its officers, agents, and employees harmless therefrom.
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In the event City, its officers, agents, or employees is made a party to any action or proceeding
filed or prosecuted against Developer for such damages or other claims arising out of or in I
connection with the performance of or failure to perform the Agreement, operation or activities of
Developer hereunder, Developer agrees to pay to City, its officers, agents, or employees, any
and all costs and expenses incurred by City, its officers, agents, or employees in such action or
proceeding, including but not limited to, legal costs and attorneys'fees.
This Agreement shall be binding upon the heirs, executors, administrators, successors, and
assigns of the Parties.
This Agreement is in reference to the lots, and dwellings constructed thereon, listed below within
Tract No. 30142.
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Lot No. 73 - Plan 4A"Spanish Colonial"
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Model Home Complex Agreement for Tract No. 30142
Lot No. 74 - Plan 3B "Ranch"
Lot No. 75 - Plan No. (N/A) Parking Lot
Itemized list of removal, amendment, modification or reconstruction required by this Agreement
and associated anticipated costs for surety purposes.
1. Removal of plantings and irrigation within the driveways of the remaining units ($1,250
per house); $2,500.00
2. Installation of driveways ($1,000 per house); $2,000.00
3. Removal of all model home signage; $500.00
4. Removal of parking lots; $5,000.00
5. Clean up of any painted curbs; $300.00
6. Removal of sales office; $10,000.00
7. Replacement of storefront windows on garage for standard garage door; $2,500.00
8. Removal of all other ancillary items not incidental of a typical single-family resident unit.
$15;000.00
Total: $37,800.00 Deposit (Returnable upon proof of completion of all items listed)
This Agreement represents the full and entire agreement of the parties and shall be
effective as of the date first set forth above.
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Page 4 of 5
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Model Home Complex Agreement.for Tract No. 30142
KB Home Coastal Inc.
Dated: 2 Z l By I r—
(Signature for President or other Category 1 Officer)
SCO44— HA(n52NM
(Print Name)
VP
(Title)
Dated: 2i , By
(Signature for S retary or other Category 2 Officer)
I
Awi targo
(Print Name)
(Title)
I
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CITY OF MENIFEE
Dated: O� t� � By �
Cheryl Kitzerow
Community Development Director
Approved as to Form:
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Jeff r T. etching
City Attorney
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Page 5 of 5
BOND NO.: 30001157
PREMIUM: $227.00
SUBDIVISION PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
That KB Home Coastal Inc., as Principal and The Continental Insurance Company,a
corporation licensed to transact surety business in the State of California, as Surety, are held and firmly
bound unto the City of Menifee, as obligee, in the penal sum of Thirty Seven Thousand Eight Hundred
and 00/100 Dollars ($37,800.00), for the payment of which sum well and truly to made, we bind ourselves,
our heirs, executors, successors and assigns,jointly and severally by these presents.
THE CONDITION OF THE ABOVE OBLIGATION IS SUCH, that whereas said Principal, the owner of a
tract of land representing a subdivision entitled Hidden Hills, Tract Map No. 30142, and
WHEREAS, the map of said tract on which Principal desires to construct
Model Home Complex
hereinafter referred to as improvements, and petition the obligee to accept the improvements, and
WHEREAS, said obligee requires a bond conditioned for the improvements of said tract, and
WHEREAS, the Principal proposes at its own cost and expense to improve said tract within the limits of
said subdivision.
NOW, THEREFORE, if the said Principal shall well and truly cause said improvements, as herein before
specified, within the limits of said subdivision to be improved, then this obligation shall cease and be void,
otherwise it shall remain in full force and effect, and the Surety on this bond binds itself to said Obligee, to
the amount on the herein above stated penal sum, that said improvements shall be completed in accordance
with the agreement between Principal and Obligee.
IN WITNESS WHEREOF, said Principal has hereunto set its hands and seals, and said Surety has caused
these presents to be executed by its officers thereunto authorized this 2°d day of February, 2017,
KB Home Coasta
By: '
ck)1"S Jf, rtRUVv-✓ (Name RTitle)
The Contin' ntal Insurance Company
B U OR, l�
rend Wong, Attorney-in- ct
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document, to which this certificate is attached, and not the truthfulness, accuracy,
or validity of that document.
State of California
County of Riverside
On February 3, 2017 before me, Sonia Rodriquez, Notary Public,
personally appeared Chris Larsen, who proved to me on the basis of
satisfactory evidence to be the person(&) whose name(&) is/afe subscribed
to the within instrument and acknowledged to me that he/s#e4hey
executed the same in his/#e4thei-r authorized capacity(+e&), and that by
his/her/their signature(&) on the instrument the person(&), or the entity
upon behalf of which the person(&) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of
California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
I SONIA RODRIGUE
Commission #2100652
Notary Public - California z
Riverside Count
ibly Comm. Expires Feb 20,2019
onia Rodrig,e (SEAL)
LCALIFORNIAALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE §1189
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of Los Angeles
On FEB 0 2 2017 before me, Kari Davis, Notary Public, personally
appeared Brenda Wong who proved to me on the basis of satisfactory
evidence to be the person(-) whose name(-) is/atesubscribed to the within
instrument and acknowledged to me that 4e/she/t4ey executed the same in
4i&/her/#he# authorized capacity4e-s4, and that by 4i&/her/ -signature(-) on
the instrument the person(-), or the entity upon behalf of which the person(&)
acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
r
(seal) Signature
Kari Davis, Notary Public
,' . •'s:'`• ComniiSsien �f20?29CJ
igpi3ry Public - rdfife- slid
FAY
;� �:: My Comm.Expires Sep 20,2017 i;
POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT
Know All Men By These Presents,That The Continental Insurance Company,a Pennsylvania insurance company,is a duly organized and existing
insurance company having its principal office in the City of Chicago,and State of Illinois,and that it does by virtue of the signature and seal herein
affixed hereby make,constitute and appoint
Jeffrey Strassner, Cesar F Javier, Tenzer V Cunningham, Natalie K Trofimoff, Patricia Talavera, Brenda Wong, Kari
Davis,Individually
of Los Angeles,CA,its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred to sign,seal and execute for and on its behalf
bonds,undertakings and other obligatory instruments of similar nature
-In Unlimited Amounts-
and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all
the acts of said Attorney,pursuant to the authority hereby given is hereby ratified and confirmed.
This Power of Attorney is made and executed pursuant to and by authority of the By-Law and Resolutions,printed on the reverse hereof,duly
adopted,as indicated,by the Board of Directors of the insurance company.
In Witness Whereof,The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be
hereto affixed on this 2nd day of April,2014.
XLtNS(�R,•• The Continental Insurance Company
• n'
M
Paul T. Brut at Idl Vice President
State of South Dakota,County of Minnehaha,ss:
On this 2nd day of April,2014,before me personally came Paul T. Bruflat to me known,who,being by me duly sworn,did depose and say: that he
resides in the City of Sioux Falls,State of South Dakota;that he is a Vice President of The Continental Insurance Company,a Pennsylvania insurance
company,described in and which executed the above instrument;that he knows the seal of said insurance company;that the seal affixed to the said
instrument is such corporate seal;that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he
signed his name thereto pursuant to like authority,and acknowledges same to be the act and deed of said insurance company.
J.MOHR s
NOTARY PUBLIC
S11iL I SOUTH OAKOTA SEAL
My Commission Expires June 23,2015 J. Mohr Notary Public
CERTIFICATE
I,D. Bult,Assistant Secretary of The Continental Insurance Company,a Pennsylvania insurance company,do hereby certify that the Power of
Attorney herein above set forth is still in force,and further certify that the By-Law and Resolution of the Board of Directors of the insurance company
printed on the reverse hereof is still in force. In testimony whereof I have hereunto subscribed my name and affixed the seal of the said insurance
company this day of
���;�• 'pR The Continental Insurance Company
n:
a;
D. Bult Assistant Secretary
Form F6850-4/2012