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2020-09-23 Planning Commision Regular MEETING - Agenda PacketVirtual Meeting City of Menifee Via RingCentral (see below) Planning Commission Menifee, CA 92586 Regular Meeting Agenda Randy Madrid, Chair Wednesday, September 23, 2020 Benjamin Diederich, Vice Chair 6:00 PM Regular Meeting Robert Karwin, Commissioner Earl Phillips, Commissioner Cheryl Kitzerow, Director Chris Thomas, Commissioner Stephanie Roseen, Clerk AGENDA AS A RESULT OF THE COVID-19 VIRUS, AND RESULTING ORDERS AND DIRECTION FROM THE PRESIDENT OF THE UNITED STATES, THE GOVERNOR OF THE STATE OF CALIFORNIA, AND THE RIVERSIDE COUNTY PUBLIC HEALTH DEPARTMENT, AS WELL AS THE CITY OF MENIFEE EMERGENCY DECLARATION, THE PUBLIC WILL NOT BE PERMITTED TO PHYSICALLY ATTEND THE MENIFEE MEETING TO WHICH THIS AGENDA APPLIES. YOU MAY PARTICIPATE IN THE MEETING BY: VIDEO: https://meetings.ringcentral.com/j/3668649023 PHONE: (623) 404-9000, MEETING ID #3668649023 PUBLIC COMMENTS: TO SUBMIT PUBLIC COMMENTS EMAIL publiccomments@cityofmenifee.us FOR MORE INFORMATION GO TO http://cityofmenifee.us/621/Virtual-City-Clerk-Services, OR CONTACT THE CITY CLERK DEPARTMENT AT (951) 672-6777. REGULAR MEETING (6:00 P.M.) 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. PRESENTATIONS None 5. AGENDA APPROVAL OR MODIFICATIONS 6. PUBLIC COMMENTS (NON-AGENDA ITEMS) 7. APPROVAL OF MINUTES 7.1. Approval of Minutes of August 12, 2020 8. CONSENT CALENDAR None City of Menifee Planning Commission Agenda September 23, 2020 Page 2 9. PUBLIC HEARING ITEMS 9.1. Hidden Hills Development Agreement Amendment RECOMMENDED ACTION 1. Conduct a Public Hearing; and 2. Adopt a Resolution recommending the City Council adopt an Ordinance approving Development Agreement Amendment No. PLN20-0075 subject to the findings and conclusions incorporated in the staff report and Resolution. 10. DISCUSSION ITEMS 10.1. Planning Commission 2020 End of Year Meeting Schedule RECOMMENDED ACTION Discuss the upcoming Planning Commission meeting schedule for 2020 and provide direction to staff. 11. COMMUNITY DEVELOPMENT DIRECTOR COMMENTS 12. COMMISSIONER REPORTS ON COMMITTEE ACTIVITIES 13. FUTURE AGENDA REQUESTS FROM PLANNING COMMISSIONERS 14. ADJOURN Decorum Policy Notes Please use publiccomments@cityofmenifee.us if you wish to address the Commission. The Commission anticipates and encourages public participation at its meeting, both on agenda items and during the public comments period. Please use respect by refraining from talking in the audience or outbursts that may be disruptive. While we encourage participation, we ask there be a mutual respect for the proceedings. Staff Reports Materials related to an item on this Agenda, including those submitted to the Planning Commission after distribution of the agenda packet, are available for public inspection by contacting Stephanie Roseen, Deputy City Clerk, at (951) 672-6777 during normal business hours. Compliance with the Americans with Disabilities Act If you need special assistance to participate in this meeting, you should contact Stephanie Roseen, Deputy City Clerk, at (951) 672-6777. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. Virtual Meeting City of Menifee Via RingCentral Planning Commission Menifee, CA 92586 Adjourned Meeting Minutes Randy Madrid, Chair Wednesday, August 12, 2020 Benjamin Diederich, Vice Chair 6:00 PM Adjourned Regular Meeting Robert Karwin, Commissioner Earl Phillips, Commissioner Cheryl Kitzerow, Director Chris Thomas, Commissioner Stephanie Roseen, Clerk ADJOURNED MEETING MINUTES ADJOUNRED REGULAR MEETING 6:00 P.M. 1. CALL TO ORDER Chair Madrid called the meeting to order at 6:00 P.M. 2. ROLL CALL Attendee Name Title Status Randy Madrid Chair Present Earl Phillips Commissioner Present Benjamin Diederich Commissioner Present Robert P. Karwin Commissioner Present Chris Thomas Commissioner Present 3. PLEDGE OF ALLEGIANCE Vice Chair Diederich led the flag salute. 4. PRESENTATIONS 4.1. Menifee Police Department Commendation Community Development Director Cheryl Kitzerow introduced Menifee Police Chief Pat Walsh. Chief Walsh provided an update to the Commission on the first month of service to the City of Menifee. The Commission inquired about the Police Substation, funding for the volunteer program, coordination with the Menifee Community Emergency Response Team (CERT), mutual aid and a potential Memorandum of Understanding (MOU) with the City of Hemet and Murrieta. The Commission also stated their appreciation to the Chief and the Department. 5. AGENDA APPROVAL OR MODIFICATIONS The agenda was approved (5-0) with no modifications. 7.1 Packet Pg. 3 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 1 2 , 2 0 2 0 6 : 0 0 P M ( A P P R O V A L O F M I N U T E S ) City of Menifee Planning Commission Minutes August 12, 2020 Page 2 6. PUBLIC COMMENTS (NON-AGENDA ITEMS) Deputy City Clerk Stephanie Roseen read a public comment submitted by the following. • Ms. Miller 7. APPROVAL OF MINUTES 7.1. Approval of Minutes of June 24, 2020 7.2. Approval of Minutes of July 22, 2020 The minutes were approved (5-0) unanimously with no modifications. 8. CONSENT CALENDAR None. 9. PUBLIC HEARING ITEMS 9.1. Valley Boulevard Residential Subdivision, TTM 2015-211 Community Development Director Cheryl Kitzerow introduced Senior Planner Tamara Harrison. Ms. Harrison provided a presentation and reported on the project location; general plan and land use; zoning; access and design; conceptual landscaping; walls and fencing; monument signs; Parks, Recreation and Trails Commission recommendation; environmental determination; and staff recommendation. Chair Madrid opened the public hearing at 6:27 P.M. Deputy City Clerk Stephanie Roseen stated the public hearing was legally noticed and correspondence received was included in the staff report. Applicant Brian Ingersol stated he concurred with all the proposed Conditions of Approval. Commissioner Phillips inquired about weed abatement on the property. Mr. Ingersol stated that would be taken care of. Chair Madrid closed the public hearing at 6:31 P.M. The Commission asked questions of staff and discussed the Valley Boulevard missing roadway, reconfiguration of Goetz Road as part of the Cimarron Ridge development, timeline of the proposed project, and contributions through Developer Impact Fees (DIF). ACTION 1. Adopted Resolution No. PC20-516, adopting a Mitigated Negative Declaration, based on the findings incorporated in the Initial Study and the conclusion that the project will not have a significant effect on the environment. 7.1 Packet Pg. 4 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 1 2 , 2 0 2 0 6 : 0 0 P M ( A P P R O V A L O F M I N U T E S ) City of Menifee Planning Commission Minutes August 12, 2020 Page 3 RESULT: Adopted [Unanimous] MOVER: Earl Phillips SECONDER: Robert P. Karwin AYES: Madrid, Phillips, Diederich, Karwin, Thomas 2. Adopted Resolution No. PC20-517, approving Tentative Tract Map No. 2015- 211 (TTM 36911) subject to the Conditions of Approval and based upon the findings and conclusions incorporated in the staff report and Resolution. RESULT: Adopted [Unanimous] MOVER: Earl Phillips SECONDER: Robert P. Karwin AYES: Madrid, Phillips, Diederich, Karwin, Thomas 9.2. Sprouts Farmers Market Finding of Public Convenience or Necessity, PLN20- 0099 Community Development Director Cheryl Kitzerow introduced Assistant Planner Brandon Cleary. Mr. Cleary provided a presentation and reported on the project description; location; general plan and zoning; CenterPointe Plaza; the census tract; public convenience or necessity findings; and staff recommendation. The Commission asked questions of staff regarding process and findings for public convenience, requirements for Conditional Use Permits versus PCNs, on and off site consumption license types, and timing of Sprouts construction. Chair Madrid opened the public hearing at 6:46 P.M. Deputy City Clerk stated the public hearing was legally noticed and there was no correspondence received. Chair Madrid closed the public hearing at 6:47 P.M. Ms. Kitzerow clarified the approval of the Resolution did not include the sale of distilled spirits. ACTION 1. Adopted Resolution No. PC20-518, approving findings for Public Convenience or Necessity No. PLN20-0099 for the sale of beer and wine for off-premises consumption based upon the findings and conclusions. RESULT: Adopted [Unanimous] MOVER: Earl Phillips SECONDER: Robert P. Karwin AYES: Madrid, Phillips, Diederich, Karwin, Thomas 10. DISCUSSION ITEMS None. 7.1 Packet Pg. 5 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 1 2 , 2 0 2 0 6 : 0 0 P M ( A P P R O V A L O F M I N U T E S ) City of Menifee Planning Commission Minutes August 12, 2020 Page 4 11. COMMUNITY DEVELOPMENT DIRECTOR COMMENTS Community Development Director Cheryl Kitzerow reported on Virtual City Hall; the new City website; temporary outdoor dining permits; Census; Housing Element update and increase of residential building permits. 12. COMMISSIONER REPORTS ON COMMITTEE ACTIVITIES None. 13. FUTURE AGENDA REQUESTS FROM PLANNING COMMISSIONERS None. 14. ADJOURN Chair Madrid adjourned the meeting at 6:56 P.M. ______________________________________ Stephanie Roseen, Deputy City Clerk 7.1 Packet Pg. 6 Mi n u t e s A c c e p t a n c e : M i n u t e s o f A u g 1 2 , 2 0 2 0 6 : 0 0 P M ( A P P R O V A L O F M I N U T E S ) CITY OF MENIFEE SUBJECT: Hidden Hills Development Agreement Amendment MEETING DATE: September 23, 2020 TO: Planning Commission PREPARED BY: Kevin Ryan, Planning Manager REVIEWED BY: Kevin Ryan, Planning Manager APPROVED BY: Cheryl Kitzerow, Community Development Director APPLICANT: Scott Hansen, KB Homes -------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION 1. Conduct a Public Hearing; and 2. Adopt a Resolution recommending the City Council adopt an Ordinance approving Development Agreement Amendment No. PLN20-0075 subject to the findings and conclusions incorporated in the staff report and Resolution. DISCUSSION Project Location The site is located north of Garbani Road, south of Craig Avenue, west of Evans Road and east of Murrieta Road. 9.1 Packet Pg. 7 City of Menifee Planning Commission Hidden Hills Development Agreement Amendment September 23, 2020 Page 2 of 4 Project Description DA No. PLN20-0075 proposes to amend the originally approved Development Agreement No. (DA 2009-149) for the Hidden Hills development (Tentative Tract Map No. 30142-2 and –F – “Peppertree and Cypress”) by: 1). extending the expiration date of the agreement from March 2, 2020 to March 2, 2025 and 2) extending allowable City Development Impact Fee (DIF) reductions. Purpose of a Development Agreement Per Section 9.45.010 of the Menifee Municipal Code, the purpose of Development Agreements is to benefit the public, in that: A. Development Agreements increase the certainty in the approval of development projects, thereby preventing the waste of resources, reducing the cost of development to the consumer, and encouraging investment in and commitment to comprehensive planning, all leading to the maximum efficient utilization of resources at the least economic cost to the public. 9.1 Packet Pg. 8 City of Menifee Planning Commission Hidden Hills Development Agreement Amendment September 23, 2020 Page 3 of 4 B. Development Agreements provide assurance to the applicant for a development project that upon approval of the project, the applicant may proceed with the project in accordance with existing policies, rules, and regulations, and subject to conditions of approval, thereby strengthening the public planning process, encouraging private participation in comprehensive planning, and reducing the economic costs of development. C. Development Agreements enable the City to plan or and finance public facilities, including but not limited to streets, sewerage, transportation drinking water, school, and utility facilities, thereby removing a serious impediment to the development of new housing. Background Tract 30142, also known as Hidden Hills by KB Home Coastal, Inc. (KB), was previously approved by the County of Riverside Board of Supervisors on June 8, 2004. The Tentative Tract Map was originally approved as a Schedule “A” subdivision of 166.3 acres into up to 523 single-family residential lots with 409 lots with a 7200 square foot minimum and 114 lots with a 6000 square foot minimum, a 5.3 acre park. 3 detention basins totaling 2 acres, 11 acres of open space (paseo) lots and a 3.3 acre hillside area. The Tentative Map was subsequently amended reducing the total number of lots to 511 to allow for construction of a flood control channel along the eastern side of Evans Road, affecting TTM 30142- 1. The first EOT was approved by the County on June 8, 2007 and the second EOT was approved by the City of Menifee on June 16, 2009 per Extension of Time 2009-036. Construction began in 2009 but slowed during the economic downturn. In 2010 the City Council approved a Development Agreement in an effort to facilitate development, parks/trails amenities, and home construction. The first phase of homes (TR30142-1) was constructed between 2011 and 2013 while the economy was recovering from recession. KB resumed development of the remaining two phases (TR30142 and TR30142-2) around 2015, and construction of the homes began in 2017. There are approximately 147 building permits left to be issued for the project. Development Agreement Provisions The following provisions are included within the amended Development Agreement as proposed: The Applicant is requesting to: • Extend the expiration date of the Development Agreement from March 2, 2020 through March 2, 2025. • Extend the allowable Development Impact Fees (DIF) Reduction for the term of the amended Development Agreement as follows: o All lots shall receive an eighty percent (80%) reduction in the payment of the City’s DIF that is due and paid between March 2, 2020 and March 1, 2022 o All lots shall receive a fifty percent (50%) reduction in the payment of the City’s DIF for fees that are due and paid from March 2, 2022 through March 1, 2025 9.1 Packet Pg. 9 City of Menifee Planning Commission Hidden Hills Development Agreement Amendment September 23, 2020 Page 4 of 4 Environmental Determination No Further Environmental Documentation is required because: (a) all potentially significant effects of the proposed project have been adequately analyzed in an earlier Environmental Impact Report (EIR0045) adopted by the County of Riverside pursuant to applicable legal standards; (b) all potentially significant effects of the proposed project have been avoided or mitigated pursuant to that earlier EIR except those for which a statement of overriding considerations was adopted; (c) the proposed project will not result in any new significant environmental effects not identified in the earlier EIR; (d) the proposed project will not substantially increase the severity of the environmental effects identified in the earlier EIR; (e) no considerably different mitigation measures have been identified; and, (f) no mitigation measures found infeasible have become feasible. ATTACHMENTS 1. KB Hidden Hills DA Resolution 2. First Amendment to KB Homes Development Agreement 9.1 Packet Pg. 10 RESOLUTION NO. PC20-_______ A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF MENIFEE, CALIFORNIA RECOMMENDING APPROVAL OF THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT NO. PLN20-0075 BY AND BETWEEN THE CITY OF MENIFEE AND KB HOME COASTAL INC WHEREAS, the Development Agreement between the City of Menifee (“City”) and KB Home Coastal, Inc. (“Applicant”) for the Hidden Hills residential development which consists of 511 single-family residential lots, a 5.3 acre park, 3 detention basins totaling 2 acres, 11 acres of open space/regional trail and paseo lots, and a 3.3 acre hillside area on an approximately 166 acre site within the City was set to expire on March 2, 2020 (“Development”); and WHEREAS, on February 28, 2020, the Applicant filed a formal application with the City for a first amendment to the Development Agreement (“First Amendment”) to extend the expiration date of the Development Agreement from March 2, 2020, to March 2, 2025, and extend the allowable City Development Impact Fee (“DIF”) reductions for the term of the Agreement; and WHEREAS, the First Amendment does not intensify or otherwise change the Development; and WHEREAS, on October 26, 2004, prior to the City’s incorporation, the Board of Supervisors of Riverside County certified that Environmental Impact Report No. 445, which analyzed the environmental impacts that would result from the Development had been prepared in full compliance with CEQA (the “EIR”); and WHEREAS, on September 23, 2020, the Planning Commission, held a duly noticed Public Hearing on the First Amendment, considered all public testimony as well as materials in the staff report and accompanying documents, which hearing was publicly noticed by a publication in The Press Enterprise (a newspaper of general circulation), an agenda posting, notices placed on the Development site, and notice to property owners within 300 feet of the Development boundaries, and to persons requesting public notice; and WHEREAS, the First Amendment has been prepared, processed, reviewed, heard, and approved in accordance with applicable law, including but not limited to Section 65864 et seq. of the Government Code; and NOW, THEREFORE, the Planning Commission of the City of Menifee resolves as follows: Section 1: The proposed First Amendment to the Development Agreement is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan. The General Plan land use designation of the site is 2.1-5 Residential (2.15- R) and Open Space-Recreation. The 21.5-R designation is intended for single-family detached and attached residences with a density range of 2 to 5 dwelling units per acre. The project is the First Amendment to a previously approved Development Agreement for the Hidden Hills residential development. The previous Development Agreement and the associated tract map were found to be consistent with the underlying General Plan designations in effect at the time the agreement and tract were originally 9.1.a Packet Pg. 11 At t a c h m e n t : K B H i d d e n H i l l s D A R e s o l u t i o n [ R e v i s i o n 3 ] ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) approved. The current General Plan designations also allows similar residential developments. The First Amendment to the Development Agreement will only extend the expiration date of the agreement and the DIF reductions for the Development, and will not alter any of the previously- approved residential uses. Therefore, the proposed First Amendment is consistent with the objectives, policies, general land uses, and programs specified in the general plan and any applicable specific plan. 2. Consistency with the Zoning Code. The proposed First Amendment is compatible with uses authorized in, and the regulations prescribed for, the zone in which the real property will be located. The zoning designation of the subject site is Low Density Residential – 2 (LDR-2) and Open Space-Recreation (OS-R). The project is the First Amendment to a previously approved Development Agreement for the Hidden Hills residential development. The previous Development Agreement and the associated tract map were found to be consistent with the underlying zoning designations in effect at the time the agreement and tract were originally approved. The current zoning designation also allows similar residential developments. The First Amendment will only extend the expiration date of the Development Agreement and the DIF reductions for the Development, and will not alter any of the previously-approved residential uses. Therefore, the proposed First Amendment is compatible with uses authorized in, and the regulations prescribed for, the zone in which the real property is located. 3. The proposed First Amendment to the Development Agreement is in conformity with and will promote public convenience, general welfare and good land use practice. The First Amendment would facilitate the construction of the Hidden Hills Development, which includes residential and open space uses. The Development is currently under construction and the residential uses proposed are similar to existing development surrounding the Development site. The Development is compatible with the surrounding land uses, general plan land use designations and zoning classifications. The Development incorporates quality design, trails, parks, landscaping, and other improvements which will enhance the area once construction is complete. The proposed First Amendment does not change the Development design or construction. It merely extends the term of the Development Agreement and the previously-approved DIF reduction, and is therefore in conformity with and will promote public convenience, general welfare and good land use practice 4. The First Amendment will not create conditions materially detrimental to the public health, safety and general welfare within the City. The First Amendment will not result in conditions detrimental to the public health, safety, or general welfare. The associated entitlements to the Development have been reviewed and conditioned by the City of Menifee Community Development, Engineering, Building and Safety, and Fire Departments to ensure that the Development will not create conditions materially detrimental to the surrounding uses. The associated tract map includes conditions of approval for substantial landscaping and timing of required improvements to support the proposed development. The Development is currently under construction and has completed 9.1.a Packet Pg. 12 At t a c h m e n t : K B H i d d e n H i l l s D A R e s o l u t i o n [ R e v i s i o n 3 ] ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) the park and drainage improvements that will benefit the Development site and surrounding areas. In addition, environmental impacts resulting from the implementation of the Development have been analyzed in a previous Environmental Impact Report (“EIR”). The proposed First Amendment does not change the Development or create any impacts not previously analyzed in the EIR, and therefore does not contain any provisions that would create conditions materially detrimental to the public health, safety and general welfare or injurious to or incompatible with other properties or land uses in the Development vicinity and within the City. 5. Orderly Development. The First Amendment would not adversely affect the orderly development of property and surrounding area or the preservation of property values. The proposed First Amendment would assist with and would not interfere with the progress of the Hidden Hills Development. The project site has been under construction and build out is anticipated within the term of the First Amendment. The timing of infrastructure construction, including park construction (completed), was carefully considered and coordinated consistent with the EIR for the Development. The Amendment does not modify construction timing of improvements. Therefore, the First Amendment would not adversely affect the orderly development of the surrounding area. The proposed First Amendment would not alter the land use designation for the site. The proposed First Amendment would not cause the Development to conflict with surrounding existing and planned land uses and would not have the potential to adversely affect property values. The proposed First Amendment would continue to assist with the implementation of the Hidden Hills Development. The improvements associated with the Hidden Hills Development are anticipated to enhance and improve the surrounding area and not adversely affect property values. 6. Encourage Development. The First Amendment would promote and encourage the construction and progress of the proposed Development by providing a greater degree of requisite certainty. The proposed First Amendment provides assurances, such as the extension of the expiration date of the original Development Agreement and extending of DIF reductions for the Development, to the Applicant. Such assurances would provide greater certainty and encourage progress of the Development as well as the associated infrastructure, which is slated to serve the surrounding area. 7. The proposed First Amendment does not change the Development, which includes a subdivision. Thus, any tentative map prepared for the subdivision will comply with the provisions in Government Code Section 66473.7. The First Amendment is associated with a previously-approved tract map that is currently under construction. At the time the tract map was entitled, no significant impacts occurred relating to Government Code Section 66473.7. No additional subdivision is being proposed along with this First Amendment. Therefore, the First Amendment complies with the provisions of Government Code Section 66473.7 8. Compliance with CEQA. Processing and approval of the First Amendment application are in compliance with the requirements of the California Environmental Quality Act. 9.1.a Packet Pg. 13 At t a c h m e n t : K B H i d d e n H i l l s D A R e s o l u t i o n [ R e v i s i o n 3 ] ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) No further environmental documentation is required because: (a) all potentially significant effects of the Development have been adequately analyzed in an earlier Environmental Impact Report (EIR0045) adopted by the County of Riverside pursuant to applicable legal standards; (b) all potentially significant effects of the Development have been avoided or mitigated pursuant to that earlier EIR except those for which a statement of overriding considerations was adopted; (c) the proposed First Amendment will not result in any new significant environmental effects not identified in the earlier EIR; (d) the proposed First Amendment will not substantially increase the severity of the environmental effects identified in the earlier EIR; (e) no considerably different mitigation measures have been identified; and (f) no mitigation measures found infeasible have become feasible. Neither a subsequent or supplemental EIR is required, because: a. The proposed approval of the First Amendment contains no substantial changes to the Development due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects requiring major revisions of the EIR; b. No substantial changes have occurred with respect to the circumstances under which the Development is undertaken requiring major revisions of the EIR; c. There is no new information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the EIR was certified; and d. There are no newly feasible, or considerably different, mitigation measures or alternatives which would substantially reduce one or more significant effects of the Development but which the Development proponent declines to adopt. NOW THEREFORE, the Planning Commission of the City of Menifee hereby recommends to the City Council the following: 1. That the City Council determine that the “Findings” set forth above are true and correct. 2. That the City Council finds that the facts presented within the public record and within the Planning Commission Resolution provide the basis to adopt an ordinance approving the First Amendment to Development Agreement No. PLN20-0075 as attached to this Resolution. 9.1.a Packet Pg. 14 At t a c h m e n t : K B H i d d e n H i l l s D A R e s o l u t i o n [ R e v i s i o n 3 ] ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) PASSED, APPROVED AND ADOPTED this the 23rd day of SEPTEMBER 2020 _________________________ Randy Madrid, Chair Attest: ___________________________ Stephanie Roseen, Deputy City Clerk Approved as to form: ______________________________ Thai Phan, Assistant City Attorney 9.1.a Packet Pg. 15 At t a c h m e n t : K B H i d d e n H i l l s D A R e s o l u t i o n [ R e v i s i o n 3 ] ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) -1- RECORDED AT THE REQUEST OF AND WHEN RECORDED RETURN TO: CITY OF MENIFEE City Hall 29844 Haun Road Menifee, CA 92586 Attn: City Manager (Space Above For Recorder’s Use) This First Amendment to Development Agreement is recorded at the request and for the benefit of the City of Menifee and is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383. FIRST AMENDMENT TO DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT (this “First Amendment”) is effective as of the 2nd day of March, 2020 (hereinafter the “Effective Date”) by and among (i) the CITY OF MENIFEE, a California city (the “City”), and (ii) KB HOME COASTAL INC., a California corporation (“Landowner”). City and Landowner are sometimes hereinafter collectively referred to as the “Parties” and singularly as “Party.” RECITALS A. On or about March 2, 2010, City and Landowner entered into that certain Development Agreement, which was recorded on March 19, 2010, as Instrument No. 2010-0126721, in the Official Records of Riverside County, California (the “Development Agreement”); B. On March 26, 2020, the City Finance Commission held a duly noticed public hearing and voted to recommend extending the term of the Development Agreement between the City and Landowner and amend payment of Development Impact Fees; and C. On ______________, 2020, the Planning Commission held a duly noticed public hearing and voted to recommend extending the term of the Development Agreement between the City and Landowner and amend payment of Development Impact Fees; and D. On ______________, 2020, the City Council held a duly noticed public hearing and voted to end the term of the Development Agreement between the City and Landowner and amend payment of Development Impact Fees; and 9.1.b Packet Pg. 16 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) -2- E. After reviewing the Project EIR in the context of the consideration and approval of this First Amendment, the City Council has determined that none of the elements set forth in Public Resources Code Section 21166 or its implementing regulations (14 Cal. Code Regs. Section 15162) exist and therefore has determined, in accordance therewith, that no subsequent or supplemental Environmental Impact Report or Mitigated Negative Declaration is required to be prepared prior to adopting and approving this First Amendment. F. For purposes of ensuring the public record accurately reflects the revised payment of Development Impact Fees and term of the Development Agreement, City and Landowner now desire to update the Development Agreement to amend the term and Development Impact Fees payment schedule. NOW, THEREFORE, in consideration of the above Recitals, which are incorporated herein by this reference, and of the mutual covenants hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Landowner agree as follows: 1. Defined Terms. Capitalized terms that are not otherwise defined in this First Amendment shall have the meaning assigned to those terms in the Development Agreement. 2. Amendment. 2.1. Recital G. of the Development Agreement is amended to read: G. As used in this Agreement, the term “City’s DIF” shall be defined to mean those development impact fees and exactions, including, without limitation, dedications and any other fee or tax (including excise, construction or any other tax) relating to development or the privilege of developing, which were in effect on a City-wide basis immediately prior to the effective date of Ordinance No. 2009-43. As consideration for the Civic Site Conveyance, in addition to reductions in the City DIF accorded prior to March 2, 2020, City has agreed that all lots within TTM 30142 shall (i) receive an eighty percent (80%) reduction in the payment of City’s DIF that is due and paid between March 2, 2020 and March 1, 2022, and (ii) receive a fifty percent (50%) reduction in the payment of the City’s DIF for fees that are due and paid from March 2, 2022 through March 1, 2025 (the foregoing reductions are collectively referred to and defined in this Agreement as the “Development Impact Fee Reductions”) . A complete list of City’s DIF is provided on Exhibit C attached hereto. 9.1.b Packet Pg. 17 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) -3- 2.2. Exhibit C: Exhibit C to the Development Agreement shall be replaced with the Exhibit C hereto. 2.3. County 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. 2.4. 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. 2.5. Section 7.2 Fees and Exactions. Section 7.2 of the Development Agreement 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 Impact 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. Prevailing Wage Indemnity and Notice to Landowner of Labor Code Section 1781. In 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 otherwise, in a call for bids or in any agreement or otherwise, that any work to be undertaken on the Property and/or to be undertaken in connection with the development of the Project, 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 Project, 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 the same 9.1.b Packet Pg. 18 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) -4- 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, state and local laws to the construction of the Project as it may be amended pursuant hereto or otherwise 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 California Labor Code Section 1781 (including City’s reasonable attorneys’ 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. Indemnification Procedures. Wherever the Development Agreement and/or this First Amendment requires Landowner to indemnify any City Party: 4.1. Prompt Notice. City shall promptly notify 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 Project 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 Improvements (collectively, a “Claim”). 9.1.b Packet Pg. 19 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) -5- 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. Challenge to Enforceability of Specific Obligations. If a court of competent jurisdiction finds invalid or unenforceable any provision of the Development Agreement of this First Amendment that purports to supersede or otherwise render ineffectual any federal, state, or local law, Landowner shall perform its obligations under such law or regulation (or shall perform as otherwise specifically directed by a court of competent jurisdiction), and the Development Agreement and this First Amendment shall otherwise 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 Agreement. 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. Counterparts. 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] 9.1.b Packet Pg. 20 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) -6- IN 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 California city By:_________________________ Armando G. Villa, City Manager ATTEST: _____________________________ Sarah Manwaring, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP _____________________________ Jeffrey T. Melching, City Attorney KB HOME COASTAL INC., a California corporation By: ________________________ John P. Fenn, President 9.1.b Packet Pg. 21 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t A g r e e m e n t A m e n d m e n t ) 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 _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their 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 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. Signature (Seal) 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 _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their 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 PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. 9.1.b Packet Pg. 22 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t WITNESS my hand and official seal. Signature (Seal) 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 _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their 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 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. Signature (Seal) 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 _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they 9.1.b Packet Pg. 23 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t executed the same in his/her/their authorized capacity(ies), and that by his/her/their 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 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. Signature (Seal) 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 _________________________, before me, , (insert name and title of the officer) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their 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 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. Signature (Seal) 9.1.b Packet Pg. 24 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t EXHIBIT C “Exhibit C” Development Impact Fees 2020 1Fee includes MDP South Benefit Area Notes: A. Per the Quimby Agreement dated September 25, 2008, Tract No. 30142 has met its park obligations. B. Per the Conditions Of Approval dated June 16, 2009, condition 67 and 82 the project is eligible for Traffic Signal Mitigation Fee credits for the signals at Garbani/Murrieta and Craig/Murrieta. C. Tract No. 30142 may be eligible for drainage credits for construction of MDP facilities as listed in Table 6.3 of the 2017 Development Impact Fee Nexus Analysis adopted by the City of Menifee on December 6, 2017. 9.1.b Packet Pg. 25 At t a c h m e n t : F i r s t A m e n d m e n t t o K B H o m e s D e v e l o p m e n t A g r e e m e n t ( 2 6 6 2 : H i d d e n H i l l s D e v e l o p m e n t CITY OF MENIFEE SUBJECT: Planning Commission 2020 End of Year Meeting Schedule MEETING DATE: September 23, 2020 TO: Planning Commission PREPARED BY: Stephanie Roseen, Deputy City Clerk REVIEWED BY: Kevin Ryan, Planning Manager APPROVED BY: Cheryl Kitzerow, Community Development Director -------------------------------------------------------------------------------------------------------- RECOMMENDED ACTION Discuss the upcoming Planning Commission meeting schedule for 2020 and provide direction to staff. DISCUSSION There may be future Planning Commission Meeting dates that conflict with upcoming holidays, or there may be dates the Commission would prefer to cancel for convenience related to other schedule conflicts. Listed below are upcoming Planning Commission meetings and potential holiday conflicts for 2020. The Planning Commission may also consider any other dates that could conflict with the meeting calendar. The Deputy City Clerk will post a notice of cancellation for any cancellations made by the Planning Commission. Holiday Meeting Date Veteran’s Day – November 11 November 11 Thanksgiving – November 26 November 25 Christmas Eve/Christmas – December 24/25 December 23 10.1 Packet Pg. 26