2022/02/24 Victory Development Agreement for the Deposit and Reimbursement of fees incurred by the City of Menifee in Conducting and Processing Analysis under the California Environmental Quality Act
February 24, 2022
680/031858-0003
14598110.2 a02/24/22
VICTORY DEVELOPMENT
8201 PRESTON ROAD, SUITE 700
DALLAS, TX 75255
Re: Agreement for the Deposit and Reimbursement of fees incurred by the City of
Menifee in Conducting and Processing Analysis under the California
Environmental Quality Act of (“CALIBER COLLISION PAINT AND
AUTOBODY REPAIR SHOP PROJECT”) (“PLOT PLAN NO. PLN21-
0348”)
Dear Mr. Reed:
MCGEE CONTRACTING INC. (“Developer”) has requested that the City of
Menifee (“City”) consider PLOT PLAN NO. PLN21-0348 (“CALIBER COLLISION PAINT
AND AUTOBODY REPAIR SHOP PROJECT”). The proposed project entails the construction
of a one-story, 18,865-square-foot building to house the Caliber Collision Paint and Autobody
Repair shop with six bays, on 2.39 acres. Site is north of Keller Road, south of Scott Road, east of
Howard Way and west of Zeiders Road within Menifee, California (Assessor Parcel Number 384-
130-028). The project also includes construction of a parking lot with 103 parking spaces
(including Americans with Disabilities Act-compliant parking) within the 2.39-acre site. The site’s
General Plan Land Use designation and Zoning Classification is Economic Development Corridor
– Southern Gateway (EDC-SG). The EDC-SG zone allows development of an auto body repair
and paint shop with a Conditional Use Permit. The project is consistent with the surrounding
commercial and industrial land uses. The project also proposes a conceptual landscape plan that
includes 34,931 square feet of landscape area. (“Project”).
To conduct its review and analysis of the Project, the City is required to conduct an
environmental analysis (“CEQA Analysis”) as required by the California Environmental Quality
Act, Public Resources Code section 21000 et seq., and its implementing guidelines found at Title
14 of the California Code of Regulations section 15000 et seq.
The City will commence to take the steps necessary, at Developers sole expense so that the
City will be able to conduct and complete the CEQA Analysis. Developer is prepared to reimburse
the City for all costs associated with the City’s conduct, processing, and consideration of the
CEQA Analysis including without limitation in-house staff time and resources, environmental
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Mr. Bronson Reed
February 24, 2022
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consultant time and resources, City’s legal counsel’s time and resources, and other third party cost
items. For example, the costs incurred by the City to engage an environmental review consultant,
and any necessary sub-consultants or technical consultants, to conduct the CEQA Analysis shall
be borne by Developer. This letter serves as an “Initial Deposit Agreement” by and between
Developer and the City.
To assist the City in undertaking their consideration of whether or not to approve the
Project, Developer agrees to provide the City with an initial deposit, consisting of at least 50% of
the contract amount plus, an administrative cost of 15% of the professional services agreement or
$5,000, whichever is less, in the amount of $57,765.00 (“Initial Deposit”). The Initial Deposit
plus any remaining balance due of the total of the professional services agreement and
administrative cost is to be incurred by the City in connection with the conduct, processing, review,
evaluation, and action taken on the CEQA Analysis (“Analysis Costs”). The Initial Deposit shall
be deposited with the City, to the attention of the Finance Director, on or before March 7, 2022
(“Effective Date”), at least one (1) week in advance of the professional services agreement fully
executed by the City of Menifee with the selected consultant.
The remaining 50% or balance, if applicable, of the Analysis Costs $52,765.00 (“Second
Deposit Payment”) shall be due at the halfway point of completion of the Analysis , but no later
than prior to public release of the CEQA documents. The Community Development Department
shall notify the Developer once the halfway point of completion of the Analysis has been reached.
The Second Deposit payment shall be deposited with the City, to the attention of the Finance
Director, within and no later than two (2) weeks, ten (10) business days of receiving notification
from the Community Development Department. If Developer fails to timely provide a Second
Deposit Payment, the City may without further notice cease all work on the CEQA Analysis and
order that all consultants, attorneys and third parties do the same (“Stop Work Order”).
Developer understands and acknowledges that, even if the Second Deposit Payment has not yet
been received, it shall remain fully responsible for Analysis Costs incurred by the City up to the
date that the City issues a Stop Work Order.
The Initial Deposit and Second Deposit Payment shall be used to reimburse the Analysis
Costs. If at any time the City in its sole discretion determines that the Analysis Costs will exceed
the amount of the Initial Deposit and Second Deposit Payment, then Developer shall, within ten
(10) days of receipt of written demand from the City, supplement the deposit amount so that the
amount remaining on deposit with the City equals all remaining estimated Analysis Costs
(“Deposit Supplement”). The City may from time to time repeat the process of revising the
estimated Analysis Costs and requiring a revised deposit amount from Developer (upon ten (10)
days written notice) (“Further Deposit Supplement”). If Developer fails to timely provide a
Deposit Supplement or Further Deposit Supplement, the City may without further notice cease all
work on the CEQA Analysis and order that all consultants, attorneys and third parties do the same
and issue a Stop Work Order. Developer understands and acknowledges that, even if the deposit
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Mr. Bronson Reed
February 24, 2022
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is fully exhausted, it shall remain fully responsible for Analysis Costs incurred by the City up to
the date that the City issues a Stop Work Order.
PAYMENT SCHEDULE:
Payment Description Amount Due Description Due Date
Initial Deposit At least 50% Analysis Costs
+ Lesser of 15% of Analysis
Costs OR $5,000
At least one (1) week before
Professional Services
Agreement Signed
Second Deposit 50% or balance Analysis
Costs
Within ten (10) business days
of Notification from
Community Development
Department of halfway point
of Analysis Completion
Deposit Supplement/
Further Deposit
Supplement
TBD, if applicable, for
additional contract
amendment costs identified.
Within ten (10) business days
of Notification from
Community Development
Department of need for
Deposit Supplement.
Developer understands and acknowledges that City shall exercise its sole discretion in
selecting and providing direction to any consultants or other third parties in connection with the
CEQA Analysis.
It is anticipated that the CEQA Analysis will be presented to the Menifee City Council for
consideration and potential action in the future. Developer and the City understand that the City
is reserving the right to exercise its sole and absolute discretion as to all matters over which the
City is, by law, entitled or required to exercise discretion. By executing this Initial Deposit
Agreement, the City is not committing or agreeing to undertake any activity requiring the
subsequent discretion of the City, or any department of the City. The City’s exec ution of this
Initial Deposit Agreement is merely an agreement to allow the necessary work to be completed, at
Developer’s expense, to bring the CEQA Analysis forward for City consideration. Nothing in this
Initial Deposit Agreement shall be deemed to constitute a commitment by the City to approve or
certify the CEQA Analysis, or a prejudgment of the matters required to be considered as part of
the decision whether or not to approve the Project.
DocuSign Envelope ID: E8D5877B-4F85-4234-B573-C5525BD025FDDocuSign Envelope ID: EBA326C3-BFEA-4555-87F0-27F56F5DC0CC
Mr. Bronson Reed
February 24, 2022
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Please document Developer’s concurrence with these terms and limitations by signing
below and returning the originally executed letter to me, along with the Initial Deposit.
Very truly yours,
CITY OF MENIFEE
Cheryl Kitzerow, AICP
Community Development Director
APPROVED AS TO FORM:
By:
Jeffrey Melching, City Attorney
ACCEPTANCE OF INITIAL DEPOSIT AGREEMENT:
VICTORY DEVELOPMENT
By: Date:
Mr. Bronson Reed, Construction Manager
VICTORY DEVELOPMENT
By: Date:
Bobby Dan Roberts, COO Principal
DocuSign Envelope ID: E8D5877B-4F85-4234-B573-C5525BD025FD
2/24/2022
2/24/2022
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