2021/05/24 Agreement First Amendment to Development Agreement, KB HOme Coastal Inc.Doc]rslgn Enwlope lO: FgOAAl6A-E9A0-|3EC-AEEG3€FA7C8FO88A
RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO
CITY OF MENIFEE
City Hall
29844 Haun Road
Menifee, CA 92586
Attn: Cig Manager
DOC # 2021-0315860
0512412021 10:46 AM Fees: $0.00
Page 1 of 11
Recorded in Official Records
County of Riverside
Peter Aldana
Assessor-County Clerk-Recorder
"Thls documert was electronicaly submilted
to the County ofRiverside for recording"
Recaipled by TERESA #134
FIRST ATENDiIENT TO DEVELOPI'ENT AGREEMENT
THIS FIRST AMENOMENT TO DEVELOPMENT AGREEMENT (this 'Flrst
Amendment') is efiec,tive as of th€ 2d day ot March, 2020 (hereinafter the "Effectlve
Date') by and among (i) the CITY OF MENIFEE, a Califomia dty 0h€ 'Clty), and (ii) KB
HOME COASTAL lNC., a Califomia corporation ('L.ndowne/). City and Landownor are
sometimes he.einafrsr colloctively refened to as ths 'Partlor' and singularly as "Party.'
RECITALS
A. On or about March 2, 2010, City and Landowner entercd into that certain
Oevelopment Agreement, whidr was recorded on March 19, 2010, as lnstrument
No. 2010-0126721, in the Ofiicial Records of Riwrsile County, Californh (the
'Devolopmont Agroemanf );
B. On March 26, 2!.20, ths City Fhanco Commi$ion held a duly noticed public
hoaring and votod to rocommond extonding the term of the Devebprnent Agro€rnent
betrye€n th€ City and Lendolvner and amend paynent of Developm€nt lmpec{ F€es; and
C. On scptr*lr 2l 2020, the Planning Commission held a duly noticed public
hearing and voted to rocommsnd extending th6 term of the D6velopmont Agr€oment
bet*een the City and Lando,vner and amend peyment of Dordopm€nt lmpact F€os; and
O. On Dcccrbcr 2 , 2020, th. City Council held a duly noticed public hearing
and r/otod b ond tho term of tho Devebpmcnt A06ernont botw€cn the City and
Landownor and arnond paymGflt of Doyclopment lmpact Foos; and
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(Spaco Abovo For Recorder's Use)
This Firsl tunendment to Osvelopment Agregment
is rocord€d at tho reque3t and ior the b€n€6t of th€
City ol i/taniho end b orompl ftom ths payment of
a rBcording fee pursuanl to Govemmsnt Codo
S€ctions 6103 and 27383-
Oo(lisign Env€lop€ lD: F9OaA16A-E9AO-43EC-AEEG3EFATCSFOBBA Doc #2021-0315860 Page 2 of 11
E. Aft6r reviewing the Project EIR in the context of the consideration and approval of
this First Amondrn€nt, th6 City Council has dotormined that none of the olemonts set forth
in Public Resourcps Code Section 21166 or its implem€ntng regulations (14 Cal. Code
Regs. Seclion 15162) exist and therefors has determinod, in accordance therewith, that
no subsequsnl or supplemental Environmental lmpact Report or Mitigated Negative
Declaratron is required to b€ prepar€d prior to adopting and approving this First
Amondment.
F. For purposes ofensuring the public record accurately reflec'ts the rsvised payment
of D6vslopm6nt lmpact Fees and term of the Development Agrsement, City and
Landowner now desirc to updato the Development Agre€mont lo amsnd the term and
Dgvolopment lmpac.t Fees payment schodule.
NOW, THEREFORE, in consideration of tho above Rocitals, which are incorporated
hsroin by this ,aforsnco, and of th€ mutual @vonants her€inaffer contained, and for other
good and valuable consi&.ation, the recoipt and sufficioncy of which is hereby
acknowledged, City and Landorner a0r6€ as folbws:
1. Defin€d Terms. Capltalized torms that ars not othgrwiss defnod in this First
Amendmenl shall have the meaning essigned to those terms in the Development
Agreement.
2. Amendment.
2.1. Recital G. of the Develop.nent Agreoment is arnended to read:
G. As used in this Agreernont, th€ term 'Clty't DIF' shall b€ defined to rnean
those dewlopm€nl impact fees and exactions, induding, without limitation,
dedicatbns and any o0ler fee or tax (indutling exciso, construclion or any
other tax) relating to d€vebpment or the privil€ge of devebping, whicfi were
in sficc{ on a Clty-wue ba3is immedlately prtcr to lho efiectlvs dat€ of
Ordlnanca No. 2(n9-43. As consHeration for the Civic Site Conveyance, ln
addltion to reduclions in tho City DIF accodod prior to March 2, 2020, City
has agro€d that all lots withln TTM 30142 shall (i) rscoive an elghty percont
(80%) rsdrction in the peyment of City's DIF that is dus and paid between
March 2, 2o,z0 *d March 1, N2\ and (ii) rocaiw a ftfty porcont (5O%)
r€ducliofl in tho payment of the City's DIF for teos thal are dus and paH
fhom March 2, 2IJ.22 tro,'Jry,h March 1, 2025 (the brcgohg rsducibnc are
collcc-tivcly rclbncd b and defin d in thic Agrccmrnt as th€ 'D.v.lopm.nt
lmprct F.. Roducdonr') . A coflrdcte lbt of City'! DIF is prwidcd on
Exhlblt C attadpd hercto.
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2.2.Exhibit C: Exhibit C to the Development Agreement shall be replaced with the
Exhibit G hereto.
2.3.Countv Public Facilities Fee: From and after the Effective Date of this First
amendment, the term "County Public Facilities Fee" shall be stricken from, and
shall have no further application under, the Development Agreement and its
Exhibits.
2.5. Section 7.2 Fees and Exactions. Section 7.2 ol lhe Developmont Agreemenl is
hereby amended to read in full as follows: "As consideration for the Civic Site
Conveyance, City hereby agrees that all lots within TTM 30142 shall be entitled to
receive the Development lmpact Fee Reductions (as applicable for the time
periods described in Recital G). Protection from any increases in any of the City's
DIF shall not include increases mandated by the County, the State of California,
the federal government, or any other entity that is outside the control of the City.
This section shall not be construed to limit the authority of the City to charge
Processing Fees."
3. Prevailino Waoe lndemnitv and Notice to Landowner of Labor Code Section 1781.
ln connection with, but without limiting, the indemnification obligations set forth in Section
25 of the Development Agreement, Landowner hereby expressly acknowledges and
agrees that the City is not by the Development Agreement and/or this First Amendment
affirmatively representing, and has not previously affirmatively represented, to the
Landowner or any contractor(s) of Landowner for any construction on or development on
or adjacent to the Property, in writing or othenrvise, in a call for bids or in any agreoment
or othenrvise, that any work to be undertaken on the Properly and/or to be undertaken in
connection wilh the development of the Prolect, as may be referred to in the Development
Agreement or construed under the Development Agreement and/or this First Amendment,
is not a 'public work,' as defined in Section 1720 of the Labor Code, or under any similar
existing or hereinafter enacted law or regulation, or that such work qualifies for one of the
exceptions set forth Section 1720 of the Labor Code, or under any similar existing or
hereinafter enacted law or regulation. The Parties agree that, in connection with the
development and construction (as defined by applicable law) of the Pooct, including,
without limitation, any and all public works (as defined by applicable law), Landowner
shall bear all risks of payment or non-payment of prevailing wages under California law
and/or federal law and/or the implementation of Labor Code Section 1781, as tho sams
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2.4. Section 6.2 Term: The Development Agreement is hereby amended from a period
of ten (10) years to a period of fifteen (15) years, thereby amending the termination
date of the Development Agreement from March 2,2020, to March 2,2025.
DocuSign Envelopo lO: F90BA1 6A-E9A0-43EC-AEEG3EFATC8FDBSA
Without limiting the foregoing, Landowner shall indemnify, protect, defend and hold
harmless the City, any City agencies and their respective elected and appointed councils,
boards, commissions, officers, agents, employees, volunteers and representatives
(collectively, 'City Parties"), with counsel reasonably acceptable to City, from and against
'increased costs" as defined in Califomia Labor Code Section 1781 (including City's
reasonable attomeys'fees, court and litigation costs, and reasonable fees of expert
witnesses) in connection with the development or construction (as defined by applicable
law) of or on the Property and/or in connection with the development of the Project, that
results or arises in any way from (1) noncompliance by Landowner of the requirement, if
and to the extent applicable, to pay federal or state prevailing wages and hire apprentices;
or (2) failure by Landowner to provide any required disclosure or identification as required
by California Labor Code Sections 1720 et seq. including without limitation specifically
Section 1781, as the same may be amended from time to time. The foregoing indemnity
shall survive the expiration or earlier termination of the Development Agreement as
amended by this First Amendment.
4. lndemnification Procedures. Wherever the Development Agreement and/or this
First Amendment requires Landowner to indemnify any City Party:
4.'l.Prompt Notice. City shall promptly notifo Landowner in writing of any claim,
demand, administrative action, or action at law or equity based on a loss, liability,
fine, penalty, forfeiture, cost, and/or in damage (whether in contract, tort or strict
liability, including but not limited to personal injury, death at any time, property
damage, and statutory claims or damages [including, without limitation, under
Labor Code section 1720 et seq]) that is alleged to have arisen out of or is in any
way related to (1) the approval of the Development Agreement and/or this First
Amendment and/or the Project Approvals; (2) and development or use of the
Property under the Development Agreement and/or the First Amendment and/or
the Projoct Approvals, and (3) any actions or inactions by the Landowner or its
contractors, subcontractors, agents, or employees in connection with the
construction or improvement of the Property and the Project, including off-site
Public lmprovements (collectively, a "Claim").
may be amended from time to time, and/or any other similar law. With respect to the
foregoing, Landowner shall be solely responsible, expressly or impliedly and legally and
financially, for determining and effectuating compliance with all applicable federal, state
and local public works requirements, prevailing wage laws, and labor laws and standards,
and City makes no representation, either legally and/or financially, as to the applicability
or non-applicability of any federal, slate and local laws to the construction of the Project
as it may be amended pursuant hereto or othenrise
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4.2. Cooperation. City shall reasonably cooperate with Landowner's defense, provided
Landowner reimburses City for actual reasonable out of pocket expenses
(including reasonable attorneys'fees and costs) of such cooperation.
4.3. Settlement Any settlement shall require the prior written consent of both City and
Landowner, which consent shall not be unreasonably withheld if the settlement is
objectively financially reasonable.
5. Challenqe to Enforceabilitv of Soecific Oblioations. lf a court of competent
jurisdiction finds invalid or unenforceable any provision of the Development Agreement
of this First Amendment that purports to supersede or otherurrise render ineffectual any
federal, state, or local law, Landowner shall perform its obligations under such law or
regulation (or shall perform as othenvise specifically directed by a court of competent
jurisdiction), and the Development Agreemenl and this First Amendment shall othenrise
remain in full force and effect.
6. Effective Date of this First Amendment: The Effective Date of this First Amendment
shall be March 2,2020, and any City's DIF paid by Landowner between March 2,2020,
and the date this First Amendment is executed that is above and beyond what which is
agreed to in this First Amendment shall be refunded by the City.
7. Terms of Development Aoreement. Except as modified by this First Amendment,
all of the terms and conditions of the Development Agreement shall remain in full force
and effect.
8. Counteroarts. This First Amendment may be executed in counterparts, each of
which when executed and delivered shall be deemed to be an original and all such
counterparts together, shall constitute one and the same instrument.
[signatures on next page]
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lN WITNESS WHEREOF, City and Landowner have executed this First Amendment on
the day and year set forth in the preamble above.
"city'
CITY OF MENIFEE, a Califomia
ATTEST:
APPROVED AS TO FORM:
RUTAN & TUCKER, LLP
By:C$n-
Armando G. Villa, City Manager
KB HOME COASTAL lNC., a California
corporation
By:
John P. Fenn, President
G ',i,l" t
J
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Sarah A. Manwaring, City Clerk
az- P E-
I
CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifes only the identity of the individual
who signed the document, to which this certificate is attached, and not the truthfulness, accuracy,
or validity of that document.
State of California
County of Riverside
on /llru l'. ),/ b"for" ,"
per$nittJ i/peared -'c\-X-who proved to me on the basis
of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the wlthin instrument and acknowledged to me that
he/shelthey executed the same in his/he#their authorized capacity(ies),
and that by his/he#the,i+ signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALry OF PERJURY under the laws of the SQte of
California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
CTAUOIACAMORLINGA
Nolrry Pubhc - Calilofid
R&e6de Counly
Com,nissiofl { 2223835
MyComm Expres Dec 1 2021
Claudia amo ga, Notary Public (SEAL)
Claudia Camorlinoa, Notary Public,
DocuSign Envelope lD: F90BA164-EgA043EC-AEE0-3EFATCBFDaBA
EXHIBIT C
COMPLETE LIST OF CITY'S DEVELOPMENT IMPACT FEES
(REPLACTNG EXHtBtT C TO DEVELOPMENT AGREEMENT)
Docusign Envelope lD: F90BA16A-E9A0-43EC-AEEO-3EFA7C8FDB8A
Exhibit'C'
MENIFEE DIF FEE SCHEDULE - ADOPTED DECEMBER 5, 2017
RES|DENTTA|- FEES EFFECflVE JUtY 1,2018 (pER DWETUNG UNrT)
Fee outside
MDP
South/Encanto
Drive SD zones
Fee w/in
MDP South
zone
Single Family Unit*s 7,803 S 8,83s S 10,089
Multi-Family Unitr S s,s67 S 6,137 s 5,82s
Accessory Dwelling Unitr S s,sro S 4o8o 5 q,tae
senior / Assisted Livingr S 3,020 S 3,s90 s 4,278
rlf subject to Quimby subtract Parks Land Acquisition Fee shown in Table E.1
below.
Fee outside
MDP
South/Encanto
SD areas
Fee w/in
Encanto
SD Area
Fee w/in
MDP South
Area
Retail Commercial s 4,306.00 S 4G73.so S s,117.s0
Service Commercial S 3,s4s.so S 3,o7s.oo s 3,831.00
lndustrial/Business Park s 2,183.00 S 2,39s.s0 S z,6s1.so
NON-RESTDENTTAT FEES EFFECTTVE lU![!.2919 (PER r,mo SF)
10096 of the Maxlmum Justlfled Fee
Fee w/in
MDP South
Area
Retail Commercial S 8,612 s gSqt S 10,23s
Service Commercial s 7,(x)1 s 7,3s0 S 7,662
lndustrial/Eusiness Park s 4,366 S 4,7sr S s,303
Fee w/in
Encanto
Drive SD
zone
NON-RES|DENT|AL FEES EFFECTTVE JUtY 1, 2018-JUNE 30.2019 (PER 1,000 SFI
50% of the Maxlmum Justllled Fee
Fee outside
MDP
South/Encanto
SD areas
Fee w/in
Encanto
SD Area
DocuSign Envelope lD: F90BAl 6A-EgA0-43EC-AEEo-3EFA7C8FDBBA
Figure 1: Menifee Storm Drain Fee Zones
W
Logcnd
! counrr Fee zone Boundories
! en."nto Drive zone
Salt Creex Channel Zone
No Fee Zon6
Murrigto Crack Warm Sgrinqs Valey Zona
Honler3nC / Ronroland Lrne { - Zore
I
MDP Soulh Benefit Zone
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Table E.l: Marimum Justmed Fee Su
Llnd t !.
hw
hhccmcnt Fko
Anim.l Gcncral Public Ur
I Shcltcr Govcrnmcnt Facilitica
Ma$r
Planning
PaIks. and Ncxus LibraryStorm
Parks.
Land
Total .
l,laxlmum
Jultifcd
o
ca€
m
g
F.n
e
t!
?m
t
trl
mtr
m
.'.Jo
no
@
Circulation Drai on lm Ana Faciliti.3
tdf/jd]f/-F€fNthtd//,[U t
Sn& Fdnily lJx S
mni-Ari!til
Accesoy DrdrE tff
sck r Assisted LnarE
Ibnesti/P"nttd Der ,.0m So. Fl.
CqmEcdi tutdl S
ComEcd/SE*e/otco
hdEtrid / 8l6iEss k
F.r C!* n fc LfP Sqfi BEdt tula. Sec
4,670 $ 2,2S S 140 S316r r,258 l@
1,878 r,fi8 nl,m 1,m 57
a1 s614S
169 152rm 320& I3S
s,021
75)
532
s8
262
u2
12t
s1n
560
208
151 $
113
0
50
215 S
r50
113
84
0,0s
6,825
4,768
4,278
661
487
w
v51
s 66
18
34
26
58
n
m
SS7,736 S 1,68 S t?3 S5,9{6 5/1 lm
3,941 S7 S
)s S 5$
6
,,
s 10,235
7.662
5 303
5.5 i(.Eeqefl Arm fees
Soucls:Taller 3.{.15.5.7.6.5.7.1,E.5.9.1. 10.7. ll..land 12.5.
23$
11
12
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