2024/01/08 Core5 Industrial Partners, LLC Agreement for the Deposit and Reimbursement of fees incurred by the City of Menifee in Conducting and Processing Analysis under CEQA of the Ethanac Business Park Warehouse ProjectJanuary 8, 2024
Core5 Industrial Partners LLC
300 Spectrum Center Drive Suite 880
Irvine, CA 92618
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 the Ethanac Business Park Warehouse Project.
Dear Mr. Kelly,
Core5 Industrial Partners LLC (“Developer”) has requested that the City of Menifee
(“City”) consider Ethanac Business Park Warehouse Project. The proposed project site is
generally located south of Ethanac Road, east of Trumble Road, west of Sherman Road, and North
of McLaughlin Road; APN’s: 331-110-023, -038, &-039. The proposed project would include the
following components:
•Planning Application No. PLN23-0171 (Plot Plan) proposes to construct a new 264,710
square foot warehouse consisting of 254,710 square feet of warehouse area and 10,000
square feet of office area on a 11.47 acre site. The Project proposes 168 automobile parking
spaces and 47 truck trailer parking stalls along with approximately 58,864 square feet of
landscaping.
•Planning Application No. PLN23-0173 (General Plan Amendment) proposes to change APN
331-110-023 (1.16 acres) from Heavy Industrial to Specific Plan.
•Planning Application No. PLN23-0174 (Change of Zone) proposes to change APN 331-110-
023 (1.16 acres) from Heavy Industrial to Menifee North Specific Plan.
•Planning Application No. PLN23-0175 (Specific Plan Amendment) proposes to change the
boundary of the Menifee North Specific Plan by adding APN 331-110-023 (1.16 acres) and
designating it as Planning Area 2 – Industrial.
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
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Jon Kelly
January 8, 2024
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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 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 the 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 $96,250 (“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”). Developer deposited the Initial
Deposit with the City, to the attention of the Finance Director, on or before January 17, 2024
(“Effective Date”), which is at least one (1) week in advance of the Professional Services
Agreement being fully executed by the City of Menifee with the selected consultant.
The remaining 50% or balance, if applicable, of the Analysis Costs $91,250 (“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”) until the
Second Deposit Payment is received. The 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) business days of receipt of written demand from the City, supplement the deposit amount so
DocuSign Envelope ID: 250CE7C4-95BD-4452-8E04-1C9EA2A0504BDocuSign Envelope ID: 614869BF-246F-4422-A0DB-04175896754A
Jon Kelly
January 8, 2024
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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)
business 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. The developer understands and acknowledges that, even if
the deposit 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. Any unspent monies will be reimbursed
within thirty (30) days upon receipt of the project’s final accounting. Core5 Industrial Partners
LLC has made an Initial Deposit and possibly a Deposit Supplement and Further Deposit
Supplements (the “Deposit”). If DEVELOPER terminates in writing the CEQA Analysis, or once
the project is entitled, City will refund to DEVELOPER the remaining funds from the Deposit
within thirty (30) days upon receipt of the project’s final accounting.
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 of 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 Planning
Commission and City Council for consideration and potential action in the future. Developer and
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Jon Kelly
January 8, 2024
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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
execution 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.
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:
Core5 Industrial Partners LLC
By: Date:
Jon Kelly,
DocuSign Envelope ID: 250CE7C4-95BD-4452-8E04-1C9EA2A0504B
VP Development
1/25/2024
DocuSign Envelope ID: 614869BF-246F-4422-A0DB-04175896754A
Jon Kelly
January 8, 2024
Page 5
DocuSign Envelope ID: 250CE7C4-95BD-4452-8E04-1C9EA2A0504BDocuSign Envelope ID: 614869BF-246F-4422-A0DB-04175896754A