REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Yu Tagai, City Engineer
Date:September 23, 2025
Subject:Traffic Impact Fee Agreement with In-N-Out Burgers for the Third Street and Dexter Avenue Signal Improvement Project
Recommendation
Approve and authorize the City Manager to execute a Traffic Impact Fee (TIF) Street Improvement Reimbursement Agreement with In-N-Out Burgers for the Third Street and Dexter Avenue signal improvement project.
Background
The City administers a Traffic Impact Fee as part of the Development Impact Fee Program (Municipal Code Chapter 16.74). The TIF is assessed as a condition of building permit issuance for residential, multi-family, office, commercial, and industrial development. Revenues generated from this fee are used to finance the construction of traffic infrastructure improvements required to serve new development and the community of Lake Elsinore.
In-N-Out Burgers, a California Corporation, has received approval to develop a new restaurant at Dexter Avenue and Crane Street. As a condition of the Project’s entitlement, the Developer is required to construct a traffic signal and intersection improvements at the intersection of Third Street and Dexter Avenue.
Discussion
The City and In-N-Out Burgers propose to enter into a reimbursement agreement for the required improvements. Under the terms of the agreement, the developer may seek reimbursement for eligible improvements as approved by the City Engineer. These improvements include construction of a new traffic signal, installation of ADA compliant ramps, and incidental improvements as necessary to accommodate the intersection upgrades at Third Street and Dexter Avenue. The project’s TIF obligation, based on the proposed 3,886 square foot restaurant, is $14,922.24. The Developer has requested that the City reimburse additional eligible costs In-N-Out Reimbursement Agreement
reasonably incurred in connection with the construction of the improvements. Pursuant to the TIF Program, the total of the Developer’s TIF obligation and any TIF reimbursement shall not exceed $175,000, which represents the maximum allowable credit for the intersection improvements.
Fiscal Impact
The developer’s City TIF obligation is $14,922.24 and the agreement identifies a maximum of $175,000 eligible for reimbursements or credit for TIF network improvements. The balance of $160,077.76 is programmed through City’s TIF program.
Attachments
Attachment 1 - Agreement
Engineering