DATE:
March 19, 2024
TO:
Mayor and Council Members
FROM:
Rachel Molina, City Manager
BY:
Pam K. Lee, City Attorney
SUBJECT:
NuLevel Partners, Inc. Settlement Agreement
RECOMMENDED ACTION
It is recommended that the City Council approve the attached settlement agreement in the pending litigation matter NuLevel Parners, Inc, v. City of Hesperia (SBSC Case No. CIVSB2133905) regarding the development of approximately 35 acres of vacant land located along the south side of Mojave Street between Topaz Avenue and Tamarisk Avenue (APN 0405-261-77-0000 (the Property)).
BACKGROUND
October 5, 2016, the City Development Review Committee conditionally approved tentative tract map 15868 and parcel map 19780 ("TTM 15868" and “TTM 19780”) for a residential development project involving the construction of 185 single-family homes at the Property (“Project”). TTM 15868 was approved for three phases of final map submittal in accordance with the Subdivision Map Act (California Government Code § 66410 et seq.). TTM 19780 is the parcel map tied to/connected with TTM 15868 for each phase of development of the Project.
On or about March 25, 2020, the developer/applicant submitted an application for its Phase 2 Final Map for recordation. City staff provided comments on or about June 18, 2020. Thereafter, AB 1561 extended the timeline on housing entitlements, including tentative tract maps, issued prior to and in effect as of March 4, 2020 and expiring prior to December 31, 2021 by another 18 months. Thus, TTM 15868 would expire on September 25, 2021. Following the City’s notification that TTM 15868 would expire on September 25, 2021, the developer submitted documents requested by the City to address any alleged corrections to the TTM 15868 Phase 2 final map submittal (“Phase 2 Final Map Submittal”). The developer also submitted its Phase 3 Final Map submittal (“Phase 3 Final Map Submittal”) before September 25, 2021. The City alleged that the Phase 2 and 3 Final Map Submittals were incomplete, which the developer disputed. Thus, on or about October 18, 2021, the City notified Nulevel that tentative TTM 15868 expired on September 25, 2021. The developer then filed a lawsuit regarding TTM 15868.
After several months of settlement discussions, the City and the developer have come to an agreement regarding TTM 15868 and a settlement of the pending litigation.
ISSUES/ANALYSIS
The proposed Settlement Agreement, attached hereto as Attachment 1, provides that the developer will be permitted to submit all required documents pertaining to the phase 3 final map of TTM 15868 as soon as reasonably possible for review, approval, and recordation, which is anticipated to occur within the next six (6) months.
Upon the recordation of the phase 3 final map, TTM 15868 will be extended for a period not to exceed 48 months from the date of recordation, pursuant to Government Code section 664552.6(a). TTM 19780 will also be extended and terminate concurrently with TTM 15868. THe developer will also be afforded the opportunity to complete and submit applications for phase 1 and phase 2 final maps of TTM 15868, in accordance with the conditions set forth in TTM 15868, the City’s Municipal Code, the Subdivision Map Act, and any other applicable law.
Furthermore, any construction of infrastructure improvements for the Project, including but not limited to the A-04 drainage improvements, will be credited against any development impact fees owed by the developer to the City.
Within thirty (30) days after the City provides written confirmation that the phase 3 final map of TTM 15868 has been recorded, and TTM 15868 and TTM 19780 have been extended in accordance with the settlement agreement, the developer will file a Request for/Notice of Dismissal of the pending litigation.
ENVIRONMENTAL REVIEW
The Project already completed an environmental review and a Negative Declaration was prepared and adopted as part of the original Project. No proposed changes to the original Project are contemplated, so the approved Negative Declaration is still applicable.
FISCAL IMPACT
There are no fiscal impacts identified with this action.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
Settlement Agreement and General Release
01071.0001/969337.1
01071.0001/969337.1
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
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