Agenda packet — Lake Elsinore City Council, February 24, 2026 (part 9 of 9)

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Damaris Abraham, Community Development Director Date: February 24, 2026
Subject: Request to Amend Development Agreements for Three Existing Cannabis Businesses to Revise the Community Benefit Fee
Applicants: The Nugg Hubb (PA 2020-86), Roots 2 Harvest (PA 2019-28), The Highest Craft (PA 2018-45)
Recommendation

1. Find that the proposed project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 (Existing Facilities);

2. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-07) FOR THE HIGHEST CRAFT, LLC LOCATED AT 571 CRANE STREET (APNs: 377-410-034, 377-410-031, AND 377-410-020;

3. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-11) FOR THE NUGG HUBB LOCATED AT 570 CENTRAL AVENUE SUITE D-1 (APN: 377-410-037); and
Cannabis Businesses – DA Amendments

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4. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-10) FOR R2H HOLDINGS, LLC LOCATED AT 29370 HUNCO WAY (APN: 377-120-032).

Planning Commission Action
On January 20, 2026, the Planning Commission conducted a duly noticed Public Hearing at their regular meeting and recommended approval of the Development Agreements (DAs) to the City Council with a 5-0 vote. The cannabis business owners/operators were present at the hearing.

There were no comments from members of the public.

Project Location
Pursuant to Lake Elsinore Municipal Code (LEMC) Section 17.156.040, cannabis businesses are permitted only within the M-1 (Limited Manufacturing) and M-2 (General Manufacturing) zoning districts. The subject cannabis businesses are all currently located in the M-1 zoning district. The three businesses are generally located near the main commercial corridor area along Collier Avenue and Central Avenue in the Business District neighborhood.

CANNABIS BUSINESS ZONING DISTRICT ADDRESS
The Highest Craft
(Hyperwolf) M-1 571 Crane Street (APNs: 377-410-034, 031, and 020) Stellar House Farms
(The Nugg Hubb) M-1 570 Central Ave, Suite D-1 (APN: 377-120-037) Roots 2 Harvest M-1 29370 Hunco Way
(APN: 377-120-032)
Table 1: Project Location
Background
On November 28, 2017, the City Council adopted Ordinance No. 1383 (Cannabis Ordinance) to establish land use regulations and permitting requirements for cannabis businesses in LEMC Section 17.156. The Cannabis Ordinance includes regulations such as, but not limited to, allowed types of cannabis businesses, permitted zoning districts, location requirements, and maximum number of cannabis business permits.

In order to operate a cannabis business in the City, a business must have an approved conditional use permit, City business license, and applicable State license(s). The cannabis businesses also enter into a Development Agreement (DA) with the City pursuant to LEMC Chapter 19.12 and Government Code Sections 65864 through 65869.5. The DAs provide a uniform approach to safeguard the City from certain known and unknown impacts and costs on City infrastructure, services and neighborhoods related to the establishment of cannabis related land uses. As such, the DAs include public benefits for the community in the form of payment of Community Benefit Cannabis Businesses – DA Amendments

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Fees (CBF). Under the current terms of the DA, the cannabis businesses are obligated to pay the CBF to the City annually and the fees are assessed based on the floor area square footage for each business at $18 per square foot with an annual four percent (4%) increase in the CBF rate.

Requested DA Amendments
The subject three cannabis businesses are requesting to amend their DA to revise the CBF and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The requested amendments are as a result of the City Council Cannabis Subcommittee’s response to the cannabis business owners’ concerns with operating a viable and successful cannabis business in the City.

Discussion
Since adopting the Cannabis Ordinance, other surrounding cities as well as Riverside County have allowed cannabis uses within their jurisdiction which has created a competitive market for the cannabis businesses in Lake Elsinore. Due to the growing competition, stringent land use regulations and permitting requirements, and costs associated with operating and managing a cannabis business – the businesses have expressed concerns with their ability to remain in operation.

The Cannabis Subcommittee reviewed these concerns and directed staff to amend the Cannabis Ordinance and DAs to alleviate these issues while still ensuring compatible land uses and protecting the general welfare and safety of the community. The proposed DA amendments also include revisions to the definitions and general provisions. All other terms and provisions of the previously adopted DA would remain unchanged and would still be applicable.

The following is a summary of the proposed DA amendments:
 Revised CBF for Cannabis Retail: The CBF rate for cannabis retail would be capped at $25 per square foot. Once the retail CBF rate reaches $25 per square foot, the 4% annual increase will no longer be applicable.
 Revised CBF for Cannabis Non-Retail: The CBF rate for cannabis non-retail would be reduced to $5 per square foot with no 4% annual increase.  CBF Payments: Cannabis businesses would now have the option to pay their CBF payments in 12 (monthly) equal payments instead of a lump sum payment annually (that was due at the time of City business license renewal).
 Floor Area Definition: The definition of “floor area” is proposed to be revised to mean the interior gross floor area square footage of a cannabis facility. In addition, the definition would be clarified to distinguish between cannabis retail and non-retail business floor areas. This revised definition is to create a clear delineation between the types of cannabis uses within a cannabis facility for purposes of calculating a cannabis business’ revised CBF.
 Floor Plan Exhibit(s): An updated floor plan exhibit of the cannabis facility would be included to provide a clear delineation between the retail and non-retail floor areas.

Cannabis Businesses – DA Amendments

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Should the City Council approve the DA and Cannabis Ordinance amendments, it is anticipated that several of the cannabis businesses would amend their conditional use permit (CUP) to modify their floor area because of the less stringent land use regulation and reduced CBF. Any future changes to the cannabis facility’s floor plan layout would require an amendment to the previously approved CUP subject to the Planning Commission’s review at a separate public hearing. Any CUP amendment that would revise the DA floor plan exhibit would be formalized through an Operating Memoranda pursuant to the terms of the cannabis business’ DA.

Environmental Determination
The proposed project is exempt from the California Environmental Quality Act (Cal. Pub. Res.

Code §§21000 et seq.: “CEQA”) and the CEQA Guidelines (14 C.C.R. §§ 15000 et seq.) pursuant to Section 15301 (Class 1, Existing Facilities). Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The proposed projects are existing cannabis businesses which operate in fully developed sites and buildings. The proposed amendments to the businesses’ development agreements would not result in new construction, additional square footage, or expansion of the existing uses.

Public Notice
Notice of the public hearing for all three (3) applications have been published in the PressEnterprise newspaper and mailed to property owners within at least 300 feet of the subject properties. As of the writing of this report, no written comments concerning these applications have been received by staff.

Fiscal Impact
The time and costs related to the processing this application have been covered by the application fees paid for by the applicants. No General Fund budgets have been allocated or used in the processing of these applications.

Attachments
Attachment 1 – DA-2025-07 Ordinance
Exhibit A – DA Amendment with Hyperwolf
Attachment 2 – DA-2025-11 Ordinance
Exhibit A – DA Amendment with The Nugg Hubb
Attachment 3 – DA-2025-10 Ordinance
Exhibit A – DA Amendment with Roots 2 Harvest
Attachment 4 – GIS Exhibits
Attachment 5 – Public Notice Materials
ORDINANCE NO. 2026-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA-2025-07) FOR HYPERWOLF LOCATED AT 571 CRANE STREET, UNITS D, E, AND F (APN: 377-410-034, 377-410-031, AND 377-410-020)
Whereas, Jacob Telo, Hyperwolf, has filed an application with the City of Lake Elsinore (City) requesting approval of Development Agreement (DA) No. 2025-07 (Attachment 2) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 571 Crane Street Units D, E, and F (APNs: 377-410-034, 377-410-031, and 377-410-020); Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within a MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 (Development Agreements) of the Lake Elsinore Municipal Code (LEMC) the Planning Commission (Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement;
Whereas, on January 20, 2026, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-07; and
Whereas, on February 24, 2026, at a duly noticed Public Hearing, the Council has considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1: That in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The Project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

2. The Project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines as the Project is wholly located within an existing Ord. No. 2026-____

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building and does not include any earth disturbing activities therefore Sections 6.1.2 or

6.3.1 of the MSHCP are not applicable.

3. The Project is consistent with the Protection of Narrow Endemic Plant Species Guidelines and the Additional Survey Needs and Procedures because the project is not located within any Narrow Endemic Plant Species Survey Areas or Critical Species Survey Areas.

4. The Project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The Project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 2: The Council hereby finds and determines that the Project is categorically exempt from California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and CEQA Guidelines (14. Cal. Code Regs. §§15000 et seq.), specifically pursuant to Section 15301 (Class 1 – Existing Facilities), because the proposed project is an existing cannabis business that is operating within a fully developed site and building. The proposed amendment to the business’ development agreement would not result in new construction, additional square footage, or expansion of the existing use.

Section 3: That in accordance with California Planning and Zoning Law and the Section

19.12.080.B. of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-07:

1. It is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan.

The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Business Professional (BP). The proposed project is consistent the BP land use designation and with the objectives, policies, general land uses and programs specified in the General Plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

The proposed development agreement amendment will continue to facilitate the establishment of the cannabis facility within an existing industrial building. The cannabis facility has been in operation which includes manufacturing and storage uses consistent with other similar businesses within the Business Professional (BP) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning designation.

3. It is in conformity with public convenience, general welfare and good land use practices.

The existing cannabis facility has been operating in a manner that has not resulted in negative impacts to the public and its general welfare. The proposed development agreement amendment will ensure the cannabis facility continues to have beneficial impacts to the surrounding community. Furthermore, the project has been reviewed and Ord. No. 2026-____

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conditioned by all applicable City departments to reduce the potential for any adverse effects.

4. It will not be detrimental to the health, safety and general welfare.

The proposed development agreement amendment will not be detrimental to the health, safety, and general welfare of the community because the existing cannabis facility has been operation without negative impacts or concerns. The development agreement amendment will ensure the cannabis facility continues to operate in a safe manner.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects to the health, safety, and general welfare.

5. It will not adversely affect the orderly development of property or the preservation of property values;
The cannabis facility is an existing business that has been operation without land use issues and has not caused adverse impacts for existing businesses and future developments. The proposed development agreement amendment will ensure the cannabis facility continues to operate as such.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

The proposed development agreement amendment includes all mandatory provisions required by Government Code § 65865.2 and does not include any provisions that are not authorized by the Development Agreement Act.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-07 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this ordinance.

Section 5: Severability. If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end each phrase, section, sentence, or word is declared to be severable.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law Passed, Approved, and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, on this day of ,2026.

Ord. No. 2026-____

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Robert E. Magee
Mayor
Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, City Clerk of the City of Lake Elsinore, California, do hereby certify that the foregoing Ordinance No. 2026- _____ was introduced at the Regular meeting of January 20, 2026 and adopted by the City Council of the City of Lake Elsinore, California, at a Regular meeting of , 2026, by the following vote:

AYES
NOES:

ABSTAIN:

ABSENT:

Candice Alvarez, MMC
City Clerk

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
Attn: City Clerk
(Space Above Line For Recorder’s Use Only)
(Exempt from Recording Fees Per Gov. Code § 27383)
_______________ AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE

CITY OF LAKE ELSINORE
AND
___________________________________
Approved ___________ __, 2026
Ordinance No. 2026-_____
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______________ AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND ________________________.

This _________ Amendment to Development Agreement (“Second Amendment”), dated for identification only as of May 20, 2025, is made by and between the City of Lake Elsinore, a California municipal corporation (“City”), and _______________, a California _______________ (“Developer”). This Amendment shall take effect on the “Amendment Effective Date,” as this term is hereafter defined. City and Developer may each be referred to herein individually as a “Party” or collectively as the “Parties.”

RECITALS
A. On ___________, ______, pursuant to Ordinance No. 20__-_____, the City approved and adopted that certain “Development Agreement by and between the City of Lake Elsinore and _____________________,” which Development Agreement was recorded on __________ in the Official Records of Riverside County, California as Instrument No. 20__- _____ (the “Development Agreement”).

B. [If applicable] On ___________, ______, pursuant to Ordinance No. 20__-_____, the City approved and adopted that certain, the City approved and adopted that certain “First Amendment To Development Agreement by and between the City of Lake Elsinore and _________________.,” which Development Agreement was recorded on _________ in the Official Records of Riverside County, California as Instrument No. 20__-_____ (the “First Amendment”).

C. In connection with the Developer Agreement [and the First Amendment], Developer acquired an equitable interest in that certain real property located at _______________________ in the City of Lake Elsinore, County of Riverside, State of California, Assessor Parcel Number ______________, which is within a manufacturing zoning district (the “Site”).

D. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

E. The total Cannabis Retail Business Floor Area (as defined below) is [ ] sq. ft. The total Non-Retail Cannabis Business Floor Area (as defined below) is [ ] sq. ft. The Floor Plan depicting the total floor area is attached hereto as Exhibit C.

F. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, [insert name].

G. The Property Owner have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

H. Developer uses the Site for a Cannabis Business in accordance with California Cannabis Laws and the LEMC, as each may be amended from time to time (the “Project”). -2-
I. On __________ __, 2025, the City Council approved Ordinance No. 2025-____ amending the Lake Elsinore Municipal Code (“LEMC”) Chapter 17.156 to: (i) streamline the regulation of cannabis-related business; (ii) to limit the number of cannabis-related business in the City.

J. To strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development, the California Legislature adopted Government Code section 65864 et seq. (the “Development Agreement Statute”), which authorizes the City and an individual with an interest in real property to enter into a development agreement that establishes certain development rights in real property that is subject to a development agreement application.

K. Consistent with the requirements of the Development Agreement Statute, the City adopted LEMC, Chapter 19.12 (“Development Agreement Ordinance”), authorizing the use of and establishing the procedures and requirements for the consideration of development agreements within the City along with amendments thereto. LEMC, Section 19.12.020, provides for amendments to a development agreement “is the same as the procedure for entering into an agreement in the first instance.” LEMC, Section 19.12.010 requires submittal of an application along with information and supporting data as requested by the Director of Community Development for consideration of any development agreement. Developer has satisfied this requirement.

L. On _________ __, 2025, the City of Lake Elsinore Planning Commission held a duly noticed public hearing to consider the application for this __________ Amendment and recommended to the City Council approval of this Amendment.

M. On ___________ __, 2025, the City Council held a duly noticed public hearing to consider this ______ Amendment and found and determined that this ___________ Amendment:
(a) is consistent with the objectives, policies, general land uses, and programs specified in the City’s General Plan and any applicable specific plan; (b) is compatible with the uses authorized in, and the regulations prescribed for the Site and the surrounding area and will not adversely affect the orderly development of the Site or the preservation of property values; (c) is in conformity with public convenience, general welfare, and good land use practices; (d) will have an overall positive effect on the health, safety and welfare of the residents of and visitors to the City; and (e) constitutes a lawful, present exercise of the City’s police power and authority under the Development Agreement Statute and Development Agreement Ordinance.

N. Based on the findings set forth in Recital __herein, the City Council entered into this Amendment pursuant to and in compliance with the requirements of the Development Agreement Statute and the Development Agreement Ordinance; and did, therefore, in approving this Amendment introduce for first reading Ordinance No. 2025-___ (the “Enabling Ordinance”).

On __________ __, 2025, the City Council conducted the second reading of the Enabling Ordinance, thereby approving this Amendment to become effective thirty (30) days after the adoption thereof.
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NOW, THEREFORE, in consideration of the mutual terms, obligations, promises, covenants, and conditions contained herein and for other valuable consideration, the sufficiency of which is hereby acknowledged, the Parties, and each of them, agree as follows:

SECTION 1. EXHIBITS
The Development Agreement has attached to it four exhibits designated alphabetically as Exhibit A through Exhibit D. Exhibits A through D of the Development Agreement shall remain in full force and effect except to the extent that the provisions of this Section 1 of the Second Amendment modify those Exhibits.

The following documents are referred to in this _______Amendment, attached hereto and incorporated herein by this reference:

Exhibit A Legal Description
Exhibit B Site Plan1
Exhibit C Floor Plan1
Exhibit D Property Owner’s Consent
1 The Approved Site Plan and Floor Plan exhibits are on file as a public record and available for review at the City of Lake Elsinore’s City Clerk’s Office located at 130 South Main Street, Lake Elsinore, CA 92530.

SECTION 2. REVISIONS TO DEFINITIONS
The words and phrases used in this ______Amendment as defined terms shall have the meaning set forth in Section 2 of the Development Agreement, except as added and/or modified below, which defined terms shall be applicable to both the Development Agreement and the ______Amendment.
“Amendment Effective Date” means the later of: (i) the latest date of execution shown on the signature page hereto; or (ii) the Effective Date of the Enabling Ordinance. The Amendment Effective Date does not amend the Effective Date as defined in the Development Agreement, nor does the Amendment Effective Date modify or change the “Term” or the “Term Commencement Date.”
“Cannabis Business License” or “Cannabis Business Permit” means the City license established and authorized by LEMC, Section 17.156.080, authorizing permissible Cannabis Business activity, which can only be issued upon City approval of a conditional use permit, development agreement, and Additional City Approvals for each proposed Cannabis Business activity project.
“Conditional Use Permit” means Conditional Use Permit No. ____-__ issued by the City to Developer pertaining to Developer’s original development of the Project and any subsequent amendments thereto. In the event that an amendment to the Conditional Use Permit -4-
pertaining to the Suite G Site has not been issued to the Developer as of the Amendment Effective Date, the City hereby reserves its discretion under the police power to approve, conditionally approve, or deny the issuance of any amendment to the Conditional Use Permit. “Development Regulations” means the following regulations as they are in effect as of the Effective Date and to the extent they govern or regulate the development of the Site, but excluding any amendment or modification to the Development Regulations adopted, approved, or imposed after the Effective Date that impairs or restricts Developer’s rights set forth in this Agreement, unless such amendment or modification is expressly authorized by this Agreement or is agreed to by Developer in writing: the City’s General Plan; any existing Specific Plan that include the Site, and, to the extent not expressly superseded by this Agreement, all other land use and subdivision regulations governing the permitted uses, density and intensity of use for obtaining required City permits and approvals for development, and similar matters that may apply to development of the Project on the Site during the Term of this Agreement that are set forth in Title 16 of the LEMC (Subdivisions), Title 17 of the LEMC (Zoning), except that Chapter 17.156 of Title 17 shall be as amended by Ordinance No. 2025-___, and Title 19 of the LEMC (Development). Notwithstanding the foregoing, the term “Development Regulations,” as used herein, does not include any City ordinance, resolution, code, rule, regulation, or official policy governing any of the following: (i) the conduct of businesses, professions, and occupations; (ii) taxes and assessments; (iii) the control and abatement of nuisances; (iv) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; (v) the exercise of the power of eminent domain; or (vi) the California Building Standards Codes.
“Cannabis Retail Business Floor Area” means interior gross floor area allocated and dedicated to the retail operation of a Cannabis Retail Business and shall include but not limited to reception or entrance lobby area for customer check-in, retail product storage room(s), office(s), and other ancillary area(s) to support the retail operation (including cannabis delivery). “Cannabis Non-Retail Business Floor Area” means interior gross floor area allocated and dedicated to the cannabis non-retail operation(s) of a Cannabis Non-Retail Business, such as cultivation, distribution, manufacturing, and/or testing laboratory, and shall include but not limited to storage room(s) of finished and raw products, office(s), and other ancillary area(s) to support the non-retail operation(s).

SECTION 3. REVISIONS TO GENERAL PROVISIONS
In order to update certain renumbering of the Lake Elsinore Municipal Code, subparts e and f of Section 1.8 of the Development Agreement entitled Termination are hereby amended to read as follows.
e. abandonment of the Developer’s Conditional Use Permit pursuant to LEMC, Section 17.415.070(D), including the failure of the Developer to commence operation of the Project on the Site within the time presented following the approval of the Conditional Use Permit;
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f. suspension or revocation of Developer’s Conditional Use Permit pursuant to LEMC, Section 17.415.070(G);
In order to address the potential for Developer modifications to the square footage of area allocated to the Cannabis Retail Business and/or Cannabis Non-Retail Business, Section 1.9(a) of the Development Agreement entitled Operating Memoranda; Amendment of Agreement is hereby amended to read as follows.
a. Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between the City and the Developer. The Development of the Developer Property may demonstrate that clarifications to this Agreement and the Existing Land Use Regulations are appropriate with respect to the details of performance of the City and the Developer. To the extent allowable by law, the Developer shall retain a certain degree of flexibility as provided herein with respect to all matters, items and provisions covered in general under this Agreement, except for those which relate to the (i) term; or (ii) permitted uses. When and if the Developer finds it necessary or appropriate to make changes, adjustments or clarifications to matters, items or provisions not enumerated in (i) through (ii) above, the Parties shall effectuate such changes, adjustments or clarifications through operating memoranda (the “Operating Memoranda”) approved by the Parties in writing which reference this Section 1.9(a). Operating Memoranda are not intended to constitute an amendment to this Agreement but mere ministerial clarifications; therefore public notices and hearings shall not be required. The City Manager shall be authorized, upon consultation with, and approval of, the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute an amendment to this Agreement which requires compliance with the provisions of Section 1.9(b) below. The Parties agree that proposed changes to the Cannabis Retail Business Floor Area and/or the Cannabis Non-Retail Business Floor Area may be addressed by way of an Operating Memoranda and shall generally include and be evidenced by an updated Floor Plan (Exhibit C) reflecting such changes.

SECTION 4. REVISIONS TO COMMUNITY BENEFITS FEE
Section 4.2 of the Development Agreement entitled Community Benefits Fee is hereby amended to add the following subparts c and d:
c. Community Benefits Fee Upon the Amendment Effective Date.

Notwithstanding subparts (a) and (b) above, concurrent with the Amendment Effective Date, and on each anniversary thereafter, Developer shall make payment to the City pursuant to the following fee schedule:
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All Cannabis Business
activities
$[insert rate as of 6/30/25] per square foot
of area allocated to the Cannabis Retail
Business with an annual 4% increase but
in no event to exceed $25 per square foot;
and
$5 per square foot of area allocated to
Cannabis Non-Retail Business with no
annual increase as provided in subpart d.

Developer may elect to make payments of the Community Benefit Fee due on the Amendment Effective Date and each Adjustment Date (as defined herein) in up to 12 (monthly) equal installments, the first installment to be made on the Amendment Effective Date or Adjustment Date, as applicable. Installment payment plans shall be evidenced by separate agreements of the Parties.
d. Annual Increase. In order to account for the increasing cost of providing City services, the Community Benefits Fee set forth in Section 4.2(c) for any Cannabis Retail Business shall be increased annually commencing on each anniversary of the Amendment Effective Date (each of which day shall be continued to be referred to as an “Adjustment Date”) until said fee reaches $25 per square foot of Floor Area. Each Adjustment Date shall be continued to be numbered in sequence (e.g., Third Adjustment Date, Fourth Adjustment Date, etc.).

The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non-Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows:

Article 4 of the Development Agreement is hereby amended to add the following Section

4.5:

4.5 Tax Payment and Facility Payment Offset.
a. In the event that the voters of the City of Lake Elsinore approve a Cannabis business tax or any percentage of gross receipts based fee, Developer shall pay the amount established by any such measure or initiative (“Tax Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Tax Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied. b. In the event that the voters of the City of Lake Elsinore or the City Council approve a fee based on the square footage of premises where permitted commercial cannabis activities, Developer shall pay the amount established thereby -7-
(“Facility Payment”) in accordance with any procedure so established by the City, provided, however, that Developer shall be entitled to an offset, dollar for dollar, of such Facility Payment against the Community Benefit Fee then owing or, alternatively, if the Community Benefit Fee then owing is insufficient to fully satisfy the offset as provided herein, such unsatisfied offset shall be a credit against the payment of any future Community Benefit Fee until such offset is fully satisfied.
c. Imposition of a Tax Payment and/or a Facility Payment obligation by the City or the voters of the City of Lake Elsinore shall not relieve Developer of its obligation to pay the Community Benefit Fee except for the offset as set forth in Sections 4.5.a, 4.5.b, 4.5.c, and 4.5.d above.

SECTION 5. ADDITIONAL PROVISIONS

5.1 Release. In consideration for this ______________ Amendment and the provisions as set forth herein, and subject to the City Council approving/adopting this ______________ Amendment Developer, on behalf of itself and its respective successors, assigns, officials, directors, officers, employees, insurers, lenders, lien holders, attorneys, agents, and other representatives, do hereby release the City as any and all claims, actions and causes of action, obligations, liabilities, indebtedness, breaches of duty, claims for injunctive and other equitable relief, suits, liens, losses, costs or expenses, including attorney’s fees, of any nature whatsoever, known or unknown, fixed or contingent as of the Amendment Effective Date.

5.2 Counterparts. This ______________ Amendment may be executed in counterparts, each of which so executed shall be deemed an original, and such counterparts together shall constitute but one ______________ Amendment.

5.3 No Other Changes. Except as modified by this ______________ Amendment, the terms and conditions of the Original Development Agreement, remain in full force and effect and shall be incorporated as a part of and interpreted as one integrated agreement covering the subjects included therein. If there are any conflicts between the provisions of this ______________ Amendment and the original Development Agreement, the provisions of this ______________ Amendment shall control.

5.4 Recordation by City Clerk. Pursuant to Government Code Section 65868.5, within ten (10) days of execution of this ______________ Amendment by the Parties, the City Clerk shall record a copy with the Riverside County Recorder. Thereafter, pursuant to Government Code Section 65868.5, the burdens of the ______________ Amendment shall be binding upon, and the benefits of the agreement shall inure to, all successors in interest to the Parties to the ______________ Amendment.
[SIGNATURES ON NEXT PAGE]
-8-
IN WITNESS WHEREOF, the Parties have executed this ______________ Amendment as of the dates set forth below.
“CITY”

CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:

Mayor
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

By:

David Mann, Acting City Attorney
“DEVELOPER”
____________________________,
a ___________________
Date: By:
_______________, Its: ____________

STATE OF CALIFORNIA )
) §
County of )
On , before me, a
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 of Notary
(Affix seal here)
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.

Page 1 ends

EXHIBIT A

LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

Page 1 ends

EXHIBIT B

SITE PLAN
[TO BE INSERTED]

Page 1 ends

EXHIBIT C

FLOOR PLAN
[Delineated to Show Cannabis Retail Business Area versus Non-Retail Area(s)] [TO BE INSERTED]

Page 1 ends

EXHIBIT D
PROPERTY OWNER’S CONSENT
[ATTACHED]

Page 2 ends

PROPERTY OWNER’S CONSENT
__________________________, a California ________________, being the owner of the real properties described in Exhibit A to this ____________ Amendment to Development Agreement by and between the City of Lake Elsinore and ______________________, dated for identification as of ________________, 2025 (the “________ Amendment”), do hereby consent to the recordation of said ____________ Amendment in the Official Records of the County of Riverside. ____________________________,
a ___________________
Date: By:
_______________, Its: ____________
[notary required]

Ordinance NO. 2026-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA2025-11) FOR THE NUGG HUBB LOCATED AT 570 CENTRAL AVENUE SUITE D-1 (APN: 377-410-037)
Whereas, Todd Davis, The Nugg Hubb, has filed an application with the City of Lake Elsinore (City) requesting approval of Development Agreement (DA) No. 2025-11 (Attachment 2) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 570 Central Avenue Suite D-1 (APN: 377-410-037);
Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within a MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 (Development Agreements) of the Lake Elsinore Municipal Code (LEMC) the Planning Commission (Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement; and
Whereas, on January 20, 2026, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-11; and
Whereas, on February 24, 2026, at a duly noticed Public Hearing, the Council has considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1: That in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The Project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

2. The Project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines as the Project is wholly located within an existing Ord. No. 2026-____

Page 2 of 4 ends

building and does not include any earth disturbing activities therefore Sections 6.1.2 or

6.3.1 of the MSHCP are not applicable.

4. The Project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The Project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 3: That in accordance with California Planning and Zoning Law and the Section

19.12.080.B. of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-11:

1. It is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan.

The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Limited Industrial (LI). The proposed project is consistent the LI land use designation and with the objectives, policies, general land uses and programs specified in the General Plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

The proposed development agreement amendment will continue to facilitate the establishment of the cannabis facility within an existing industrial building. The cannabis facility has been in operation which includes manufacturing and storage uses consistent with other similar businesses within the Limited Industrial (LI) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning designation.

3. It is in conformity with public convenience, general welfare and good land use practices.

Ord. No. 2026-____

Page 3 of 4 ends

4. It will not be detrimental to the health, safety and general welfare.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects to the health, safety, and general welfare.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-11 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this ordinance.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law Passed and Adopted on this day of ,2026.

Bob Magee,
Mayor
Ord. No. 2026-____

Page 4 of 4 ends

Attest:
___________________________________
Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, City Clerk of the City of Lake Elsinore, California, do hereby certify that the foregoing Ordinance No. 2026-_ _ was introduced at the Regular meeting of January 20, 2026 and adopted by the City Council of the City of Lake Elsinore, California, at a Regular meeting of , 2026, by the following vote:

AYES
NOES:

ABSTAIN:

ABSENT:

I further certify that said Synopsis was published as required by law in a newspaper of general circulation in the City of Lake Elsinore, California on the _____day of __________, 2026, and on the ______day of _________, 2026.

Candice Alvarez, MMC
City Clerk

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE

CITY OF LAKE ELSINORE
AND
___________________________________
Approved ___________ __, 2026
Ordinance No. 2026-_____
-1-
______________ AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND ________________________.

D. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

F. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, [insert name].

G. The Property Owner have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

The following documents are referred to in this _______Amendment, attached hereto and incorporated herein by this reference:

The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non-Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows:

Article 4 of the Development Agreement is hereby amended to add the following Section

4.5:

SECTION 5. ADDITIONAL PROVISIONS

CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:

Mayor
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

By:

David Mann, Acting City Attorney
“DEVELOPER”
____________________________,
a ___________________
Date: By:
_______________, Its: ____________

Page 1 ends

EXHIBIT A

LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

Page 1 ends

EXHIBIT B

SITE PLAN
[TO BE INSERTED]

Page 1 ends

EXHIBIT C

FLOOR PLAN
[Delineated to Show Cannabis Retail Business Area versus Non-Retail Area(s)] [TO BE INSERTED]

Page 1 ends

EXHIBIT D
PROPERTY OWNER’S CONSENT
[ATTACHED]

Page 2 ends

Ordinance NO. 2026-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE DEVELOPMENT AGREEMENT AMENDMENT (DA2025-10) FOR ROOTS 2 HARVEST LOCATED AT 29370 HUNCO WAY (APN: 377-120- 032)
Whereas, Ted Kingston, Roots 2 Harvest, has filed an application with the City of Lake Elsinore (City) requesting approval of Development Agreement (DA) No. 2025-10 (Attachment 2) to amend the DA to revise the Community Benefit Fee (CBF) and establish a separate CBF rate for retail (e.g. storefront, delivery to customers) versus non-retail (e.g. cultivation, distribution, manufacturing and testing laboratory) cannabis operations. The proposed amendment also includes revisions to the definitions and general provisions. The project is located at 29370 Hunco Way (APN: 377-120-032);
Whereas, Section 6.0 of the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP) requires that all discretionary projects within a MSHCP Criteria Cell undergo the Lake Elsinore Acquisition Process (LEAP) and Joint Project Review (JPR) to analyze the scope of the proposed development and establish a building envelope that is consistent with the MSHCP criteria;
Whereas, Section 6.0 of the MSHCP further requires that the City adopt consistency findings demonstrating that the proposed discretionary entitlement complies with the MSHCP Criteria Cell, and the MSHCP goals and objectives;
Whereas, pursuant to Chapter 19.12 (Development Agreements) of the Lake Elsinore Municipal Code (LEMC) the Planning Commission (Commission) has been delegated with the responsibility of reviewing and making a recommendation to the City Council (Council) whether the development agreement is consistent with the City’s General Plan and whether to approve the development agreement; and
Whereas, on January 20, 2026, at a duly noticed public hearing, the Commission has considered evidence presented by the Community Development Department and other interested parties with respect to this item, and adopted a resolution recommending that the Council approve Development Agreement Amendment No. 2025-10; and
Whereas, on February 24, 2026, at a duly noticed Public Hearing, the Council has considered the recommendation of the Commission as well as evidence presented by the Community Development Department and other interested parties with respect to this item.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1: That in accordance with the MSHCP, the Council makes the following findings for MSHCP consistency:

1. The Project is not subject to the City’s LEAP and the Western Riverside County Regional Conservation Authority’s (RCA) JPR processes as it is not located within a Criteria Cell.

2. The Project is consistent with the Riparian/Riverine Areas, Vernal Pools Guidelines, and the Fuel Management Guidelines as the Project is wholly located within an existing Ord. No. 2026-____

Page 2 of 4 ends

building and does not include any earth disturbing activities therefore Sections 6.1.2 or

6.3.1 of the MSHCP are not applicable.

4. The Project is consistent with the Fuels Management Guidelines because the Project site is not within or adjacent to any MSHCP Criteria Cell or conservation areas.

5. The Project has been conditioned to pay any applicable MSHCP Local Development Mitigation fees.

Section 3: That in accordance with California Planning and Zoning Law and the Section

19.12.080.B. of the LEMC, the Council makes the following findings regarding Development Agreement Amendment No. 2025-10:

1. It is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan.

The proposed development agreement amendment will continue to help offset the potential costs incurred by the City associated with the establishment of a cannabis facility within an industrial district. The project site’s General Plan Land Use designation is Limited Industrial (LI). The proposed project is consistent the LI land use designation and with the objectives, policies, general land uses and programs specified in the General Plan.

2. It is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

The proposed development agreement amendment will continue to facilitate the establishment of the cannabis facility within an existing industrial building. The cannabis facility has been in operation which includes manufacturing and storage uses consistent with other similar businesses within the Limited Industrial (LI) General Plan Land use designation and the Limited Manufacturing (M-1) Zoning designation.

3. It is in conformity with public convenience, general welfare and good land use practices.

Ord. No. 2026-____

Page 3 of 4 ends

4. It will not be detrimental to the health, safety and general welfare.

Furthermore, the proposed project has been reviewed and conditioned by all applicable City departments to reduce the potential for any adverse effects to the health, safety, and general welfare.

6. It is consistent with the provisions of Government Code Sections 65864 through 65869.5.

Section 4: Approval. The City Council hereby approves the Development Agreement Amendment No. 2025-10 attached hereto as Exhibit A with such modifications as approved by the City Attorney. The Mayor and City Clerk are hereby authorized and directed to execute and attest, respectively, the Development Agreement Amendment on behalf of the City of Lake Elsinore. The City Clerk is directed to transmit the Development Agreement Amendment to the County Recorder for recordation no later than ten (10) days after the adoption of this ordinance.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Bob Magee,
Mayor
Ord. No. 2026-____

Page 4 of 4 ends

Attest:
___________________________________
Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

AYES
NOES:

ABSTAIN:

ABSENT:

Candice Alvarez, MMC
City Clerk

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE

CITY OF LAKE ELSINORE
AND
___________________________________
Approved ___________ __, 2026
Ordinance No. 2026-_____
-1-
______________ AMENDMENT TO

DEVELOPMENT AGREEMENT

BY AND BETWEEN THE CITY OF LAKE ELSINORE
AND ________________________.

D. The Site is more particularly described in the Legal Description attached hereto as Exhibit A, and the Site is attached hereto as Exhibit B.

F. Developer affirms that it has an equitable interest in the Site, evidenced by way of a lease with the Property Owner of the Site, [insert name].

G. The Property Owner have provided notarized written consent to the terms of this Amendment and the recordation thereof, attached hereto as Exhibit D.

The following documents are referred to in this _______Amendment, attached hereto and incorporated herein by this reference:

The annual increase shall not apply to the area allocated and dedicated to any Cannabis Non-Retail Business. Each such annual increase in the Community Benefits Fee shall be determined as follows:

Article 4 of the Development Agreement is hereby amended to add the following Section

4.5:

SECTION 5. ADDITIONAL PROVISIONS

CITY OF LAKE ELSINORE,
a municipal corporation
Date: By:

Mayor
ATTEST:

By:

Candice Alvarez, MMC, City Clerk
APPROVED AS TO FORM:

By:

David Mann, Acting City Attorney
“DEVELOPER”
____________________________,
a ___________________
Date: By:
_______________, Its: ____________

Page 1 ends

EXHIBIT A

LEGAL DESCRIPTION
The real property referred to herein is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

Page 1 ends

EXHIBIT B

SITE PLAN
[TO BE INSERTED]

Page 1 ends

EXHIBIT C

FLOOR PLAN
[Delineated to Show Cannabis Retail Business Area versus Non-Retail Area(s)] [TO BE INSERTED]

Page 1 ends

EXHIBIT D
PROPERTY OWNER’S CONSENT
[ATTACHED]

Page 2 ends

CRANE ST
Vantor
0 62.5 125
US Feet
±
Coordinate System: NAD 1983 StatePlane California VI FIPS 0406 Feet Planning Application No. 2020-86
DA No. 2025-11
Aerial Map
Earthstar
Geographics SH-74

PASADENA ST

CENTRAL CT

COLLIER AVE

CRANE ST

CENTRAL ST
Vantor
0 40 80
US Feet
±
Coordinate System: NAD 1983 StatePlane California VI FIPS 0406 Feet Planning Application No. 2019-28
DA No. 2025-010
Aerial Map
Earthstar
Geographics

HUNCO WAY
SH-74
Vantor

NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council of the City of Lake Elsinore, California, will hold a Public Hearing on February 24, 2026, at the Lake Elsinore Cultural Center, 183 North Main Street, Lake Elsinore, California, 92530, at 7:00 p.m., or as soon thereafter as the matter may be heard, to consider the following:

Planning Application No. 2020-86 (Nugg Hubb – DA Amendment): The proposed request is an amendment to an approved Development Agreement (DA-2025-11) for an existing cannabis business, Nugg Hubb, located at 570 Central Avenue, Suite D-1. The amendment is primarily to reduce the Community Benefit Fund fees including establishing a separate fee rate for retail and non-retail cannabis uses and allowing fees to be paid in monthly payments. The amendment would not change the cannabis business’ approved land use(s) and licenses(s).

The proposed project is exempt from California Environmental Quality Act (CEQA), pursuant to California Environmental Quality Act (Cal. Pub. Res. Code §§21000 et seq.: “CEQA”) and the CEQA Guidelines (14 C.C.R. §§ 15000 et seq.) pursuant to CEQA Guidelines Section 15301 (Class 1: Existing Facilities).

PLANNING COMMISSION RECOMMENDATION: On January 20, 2026, at a duly noticed Public Hearing, the Lake Elsinore Planning Commission by a 5-0 vote recommended that the City Council approve the proposed amendment to the development agreement.

ALL INTERESTED PERSONS are invited to submit written information, express opinions or otherwise submit written evidence by email to [email protected].

If you wish to legally challenge any action taken by the City on the above matter, you may be limited to raising only those issues you or someone else at the Public Hearing described in this notice, or in written correspondence delivered to the City prior to or at the Public Hearing. If you require accommodation to participate in a Public Hearing, please contact the City Clerk’s office at (951) 374-3124, ext. 269. All Agenda materials are available for review on the City’s website at www.lake-elsinore.org, the Friday before the Public Hearing.

FURTHER INFORMATION on this item may be obtained by contacting Carlos Serna, Associate Planner in the Planning Division at [email protected] or (951) 824-7415.

Candice Alvarez, MMC
City Clerk
The Press-Enterprise
3512 14 Street
Riverside, California 92501
(951) 368-9229
City of Lake Elsinore
130 South Main Street
Lake Elsinore, California 92530
Publication: The Press-Enterprise

PROOF OF PUBLICATION OF
Ad Desc: 0011778606
FILE NO. 0011778606

PROOF OF PUBLICATION
I am a citizen of the United States. I
am over the age of eighteen years and
not party to or interested in the aboveentitled matter. I am an authorized representative of THE PRESSENTERPRISE, a newspaper of
general circulation, printed and
published daily in the County of
Riverside, and which newspaper has
been adjudicated a newspaper of
general circulation by the Superior
Court of the County of Riverside, State
of California, under date of April 25,
1952, Case Number 54446, under
date of March 29, 1957, Case Number
65673, under date of August 25, 1995,
Case Number 267864, and under date
of September 16, 2013, Case Number
RIC 1309013; that the notice, of which
the annexed is a printed copy, has
been published in said newspaper in
accordance with the instructions of the
person(s) requesting publication, and
not in any supplement thereof on the
following dates, to wit:
02/14/2026
I certify (or declare) under the penalty
of perjury that the foregoing is true and
correct.

Date: February 14, 2026.

At: Riverside, California
______________________________
Signature
PH-PA2020-86 Nugg Hubb / Stellar House - Page 1 of 1

John and Barbara
Williams Trust
Williams Family
Trust, Morely
Williams
Linehan, LLC
John D. and
Beverly D.

Living Trust
Rve SR Dynasty 1
Kathy L.

Warner
Wildomar Valley
Wood Products
Inc.

Rve SR Dynasty 1
Suspension Direct Inc.

DM 570 Central
570 Central Inc.

Megan Comer-Pearo
Brian and Debra
Golie
Rve SR Dynasty 1

AMCM, LLC
Williams Family
Trust, Morley
Williams
Lake Central
Investment,
LLC
Wildoar Valley
Wood
Products, Inc
The Central Family
Trust, Karla S.

Juhas
Yukata Enterprises
Inc., Mayan
Ventures, Inc.

Timothy J. and
Marian Kimble
Carlos Lara
Maria Lara
Toma Tomas, LLC
James Allen Quinn
Estate of James A.

Gonzalez
Robin L. Manton
Family Trust

FEATHERINGILL

FEATHERINGILL
S & J Design Labls
JRT Property
Management
t, LLC
Lake Central
Property,
LLC
Carlos Lara
Maria Lara
Target Corporation
Lucky King INV
CC Lake Elsinore
Rightway Holdings
Storage Porfolio II Subsidiary PTG EXR 1481
Neighbor APN Proximity
1 377-410-037 SUBJECT Property
2 377-410-001 Same Complex
3 377-410-002 Same Complex
4 377-410-004 Same Complex
5 377-410-005 Same Complex
6 377-410-006 Same Complex
7 377-410-007 Same Complex
8 377-410-008 Same Complex
9 377-410-018 Same Complex
10 377-410-019 Same Complex
11 377-410-021 Same Complex
12 377-410-023 Same Complex
13 377-410-025 Same Complex
14 377-410-026 Same Complex
15 377-410-027 Same Complex
16 377-410-028 Same Complex
17 377-410-032 Same Complex
18 377-410-033 Same Complex
19 377-410-034 Same Complex
20 377-410-035 Same Complex
21 377-410-036 Same Complex
22 377-410-038 Same Complex
23 377-410-042 Same Complex
24 377-410-044 Same Complex
25 377-410-044 Same Complex
26 377-410-047 Same Complex
27 377-430-018 Next Door complex
28 377-430-019 Next Door complex
29 377-120-056 Across Street
30 377-120-057 Across Street
31 377-120-073 Across Street
Owner
WILLIAMS JOHN W & BARBARA A TRUST (DATED 09/28/18); WILLIAMS JOHN W JR Yukata Enterprises Inc., Mayan Ventures Inc.

Timothy J. Kimble, Marian Kimble
Toma Tomas, LLC
Carlos E. Lara, Maria Lara
Lake Central Property, LLC
JRT Property Management, LLC.

Quinn James Allen Estate of Gozalez James A
Megan Comer-Pearo
Golie Brian M., Golie Debra J.

AMCM, LLC
Lake Central Investment, LLC
JUHAS, KARLA S; THE CENTRAL FAMILY TRUST,
WILLIAMS FAMILY TRUST (DATED 6/16/1980); WILLIAMS MORLEY 570 Central, LLC
DM 570 CENTRAL
Wildomar Valley Wood Products, Inc.

Warner Kathy L.

Rve SR Dynasty 1
BASSE JOHN D & BEVERLY D LIVING TRUST (DTD 06/30/92); BASSE JOHN D Linehan LLC
Suspension Direct Inc.

Manton Robin L Familty Trust (DTD 1/19/2017)
S&J Design Labs
S&J Design Labs

FEATHERINGILL
STORAGE PORTFOLIO II SUBSIDIARY PTG-EXR-1481
Rightway Holdings
Target Corporation
Lucky King INV
CC Lake Elsinore
Mailing Address
1901 NUTWOOD CIR
23905 CLINTON KEITH RD # 114325
30525 EMPEROR DR
42311 GOLD CUP LN
20365 TONEY ST
1874 TANDEM
506 S GRAHAM AVE STE 207
22210 VILLAGE WAY DR
114 W 3RD AVE
29540 NIGHTCREST CIR
12391 DOHERTY ST
4233 MORALES WAY
33 CORTE MADERA
41161 SANDALWOOD CIR
570 CENTRAL AVE STE H
24275 CONEJO DR
PO BOX 5955
21930 THE TRAILS CIR
2498 OCEAN ST
30391 POINT MARINA DR
570 CENTRAL AVE STE C
571 CRANE ST STE B
PO BOX 245
601 CRANE ST STE A
601 CRANE ST STE A
6323 EL CAJON BLVD
PO BOX 800729
653 W MINTHORN ST
PO BOX 9456
14912 ROCKHILL DR
8 CORPORATE PARK STE 110
City State ZIP
CORONA CA 92881-7458
WILDOMAR CA 92595-7897
CANYON LAKE CA 92587-7738
MURRIETA CA 92562-7415
PERRIS CA 92570-6739
NORCO CA 92860-3605
LAKE ELSINORE CA 92530
CANYON LAKE CA 92587-7587
ESCONDIDO CA 92025-4107
TEMECULA CA 92591-1885
RIVERSIDE CA 92503-4842
CORONA CA 92883-0740
LAKE ELSINORE CA 92532-0200
MURRIETA CA 92562-7003
LAKE ELSINORE CA 92530-2741
QUAIL VALLEY CA 92587-9225
NORCO CA 92860-8032
MURRIETA CA 92562-9744
CARLSBAD CA 92008-2233
CANYON LAKE CA 92587
LAKE ELSINORE CA 92530-2741
LAKE ELSINORE CA 92530-2742
LAKE ELSINORE CA 92531-0245
LAKE ELSINORE CA 92530-2744
LAKE ELSINORE CA 92530-2744
SAN DIEGO CA 92115-2641
DALLAS TX 75380-0729
LAKE ELSINORE CA 92530-2801
MINNEAPOLIS MN 55440-9456
HACIENDA HEIGHTS CA 91745-3928
IRVINE CA 92606-3167

Planning Application No. 2019-28 (Roots 2 Harvest – DA Amendment): The proposed request is an amendment to an approved Development Agreement (DA-2025-10) for an existing cannabis business, Roots 2 Harvest, located at 29370 Hunco Way. The amendment is primarily to reduce the Community Benefit Fund fees including establishing a separate fee rate for retail and nonretail cannabis uses and allowing fees to be paid in monthly payments. The amendment would not change the cannabis business’ approved land use(s) and licenses(s).

ALL INTERESTED PERSONS are invited to submit written information, express opinions or otherwise submit written evidence by email to [email protected].

FURTHER INFORMATION on this item may be obtained by contacting Carlos Serna, Associate Planner in the Planning Division at [email protected] or (951) 824-7415.

PROOF OF PUBLICATION OF
Ad Desc: 0011778608
FILE NO. 0011778608

Date: February 14, 2026.

At: Riverside, California
______________________________
Signature
PH-PA2019-28 R2H DA AMENDMENT - Page 1 of 1

Planning Application No. 2018-45 (Hyperwolf – DA Amendment): The proposed request is an amendment to an approved Development Agreement (DA-2025-07) for an existing cannabis business, Hyperwolf, located at 571 Crane Street, Units D, E, and F. The amendment is primarily to reduce the Community Benefit Fund fees including establishing a separate fee rate for retail and non-retail cannabis uses and allowing fees to be paid in monthly payments. The amendment would not change the cannabis business’ approved land use(s) and licenses(s).

ALL INTERESTED PERSONS are invited to submit written information, express opinions or otherwise submit written evidence by email to [email protected].

FURTHER INFORMATION on this item may be obtained by contacting Carlos Serna, Associate Planner in the Planning Division at [email protected] or (951) 824-7415.

PROOF OF PUBLICATION OF
Ad Desc: 0011778609
FILE NO. 0011778609

Date: February 14, 2026.

At: Riverside, California
______________________________
Signature
PH-PA2018-45 Hyperwolf DA Amendment - Page 1 of 1

NOTIFICATION PACKAGE
571 Crane St Units D,E,F Lake Elsinore CA 92530
APNs 377410034,377410031,377410020
INCLUDES:
300' OWNER LIST
300' RADIUS MAP*
*Min 30 unique owners included

EXCEL / WORD LABEL FORMAT

CERTIFICATION
COUNT: 38 (duplicates consolidated)
PREPARED 11/12/2025
FILE #5058
4000 Barranca Pkwy #250, Irvine CA 92604
Local (949) 771-0051
[email protected]
www.expressmapping.com
Toll Free (888) 990-MAPS

Affidavit of Notification List
Application No. _________________________________________________________________ Applicant Name _________________________________________________________________ Project Name/Location _________________________________________________________________ I certify that on _____________ day of _________________, 20___ , we prepared a notification list and a radius map, including properties entirely and partially within __________ feet of the most exterior boundaries of the property being considered in the above referenced project known as (Property Address) _______________________________________________________. The property owner names and addresses listed on the notification list, provided in an excel spreadsheet on a CD or external hard drive, were taken from the latest records of the Riverside County Assessor. Such names are recorded in the records of the Riverside County Assessor as being the present owner or owners of both the subject property and the property/properties within the required mailing radius of the subject property.
________________________________________ __________________________

Applicant/Representative Signature Date
This instrument was acknowledged before me on this __________ day of ____________ , 20 ____ , by

In witness whereof I hereunto set my hand and official seal. ________________________________________

Notary Public
My Commission expires on: _________________
Pursuant to Government Code Sections 65090-65096 notification lists shall be from the most recent Accessor Tax rolls. In order for the application to be deemed complete please return the completed, notarized affidavit to the assigned case planner at your earliest convenience.
07/18/2026
571 Crane St Units D,E,F Lake Elsinore CA 92530
12th November 25
300
571 Crane St Units D,E,F Lake Elsinore CA 92530
11/12/2025
12th November 25
377-410-001
Yukata Enterprises Inc
23905 Clinton Keith Rd #114-325
Wildomar CA 92595
377-410-002
Timothy J Kimble
30525 Emperor Dr
Canyon Lake CA 92587
377-410-003
Carlos Lara
20365 Toney St
Perris CA 92570
377-410-004
Tomas Toma
42311 Gold Cup Ln
Murrieta CA 92562
377-410-005
Carlos E Lara
20365 Toney St
Perris CA 92570
377-410-006
Central Prop Lake
1874 Tamden Way
Norco CA 92860
377-410-007
Jrt Property Mgmt
506 S Graham Ave #207
Lake Elsinore CA 92530
377-410-008
Quinn James Allen Estate Of
22210 Village Way Dr
Canyon Lake CA 92597
377-410-018
Megan Comer-Pearo
114 W 3Rd Ave
Escondido CA 92025
377-410-019
Brian M Golie
29540 Nightcrest Cir
Temecula CA 92591
377-410-020, multiple
Rve Sr Dynasty 1
2498 Ocean St
Carlsbad CA 92008
377-410-021
Amcm
12391 Doherty St
Riverside CA 92503
377-410-022, multiple
Williams Family Trust
41161 Sandalwood Cir
Murrieta CA 92562
377-410-023
Lake Central Investment
4233 Morales Way
Corona CA 92883
377-410-024
Wildomar Valley Wood Products Inc
2498 Ocean St
Carlsbad CA 92008
377-410-025
Central Family Trust
33 Corte Madera
Lake Elsinore CA 92530
377-410-027
570 Central
570 Central Ave #H
Lake Elsinore CA 92530
377-410-028
Dm 570 Central
24275 Conejo Dr
Quail Valley CA 92587
377-410-032
Wildomar Valley Wood Products Inc
Po Box 5955
Norco CA 92860
377-410-033
Kathy L Warner
604 Blackberry Cove
Opelika AL 36804
377-410-035
Basse John D & Beverly D Trust
30397 Point Marina Dr
Canyon Lake CA 92587
377-410-036
Linehan
570 Central Ave #C
Lake Elsinore CA 92530
377-410-037
Williams John W & Barbara A Trust
1901 Nutwood Cir
Corona CA 92881
377-410-038
Suspension Direct Inc
571 Crane St #B
Lake Elsinore CA 92530
377-410-042
Manton Robin L Family Trust
Po Box 245
Lake Elsinore CA 92531
377-410-044
S & J Design Labs
601 Crane St #A
Lake Elsinore CA 92530
377-410-045, multiple
Featheringill
6322 El Cajon Blvd
San Diego CA 92115
377-410-048
C&C Collier Dev Partners
2440 Hannaford Dr
Tustin CA 92782
377-410-051
Time Warner Cable Pacific West
Po Box 7467
Charlotte NC 28241
377-410-052
Rock Dev White
2440 Hannaford Dr
Tustin CA 92782
377-410-053
Strikes & Gutters
512 Chaney St
Lake Elsinore CA 92530
377-430-018
Portfolio Subsidiary Storage
Po Box 800729
Dallas TX 75380
377-430-020
Pangma
Po Box 1020
Pleasant Grove UT 84062
377-430-021
Clyde W Brunner
171 B Avenida Vaquero
San Clemente CA 92672
377-430-022
Donna M Dettman
18530 Pasadena St
Lake Elsinore CA 92530
377-430-023
Le Pasadena Investment
18352 Pasadena St
Lake Elsinore CA 92530
377-430-026, multiple
Manchester Ljl
26540 Jefferson Ave #D
Murrieta CA 92562
377-430-030
Ave Holdings Limonite
2845 Westwood Blvd
Los Angeles CA 90064

Page 1 of 3 ends

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: February 24, 2026
Subject: Participation in the Transportation Uniform Mitigation Fee (TUMF) Program; and Adopting a TUMF Schedule
Recommendation

1. Introduce by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING CHAPTER 16.83 OF THE

LAKE ELSINORE MUNICIPAL CODE TO ESTABLISH CONSTRUCTION COST INDEX

ADJUSTMENTS TO THE WESTERN RIVERSIDE COUNTY TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) PROGRAM; and

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, AMENDING THE APPLICABLE TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) APPLICABLE TO ALL DEVELOPMENTS IN CITY OF LAKE ELSINORE.

Background
The City is a Member Jurisdiction of the Western Riverside Council of Governments (“WRCOG”), a joint powers agency comprised of the County of Riverside and eighteen (18) cities located in Western Riverside County. Acting in concert, in 2002-2003 the WRCOG Member Jurisdictions developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials due to new development in Western Riverside County could be made up in part by a Transportation Uniform Mitigation Fee (“TUMF”) on future residential, commercial and industrial development.

TUMF Ordinance Update

Page 2 of 3 ends

As a Member Jurisdiction of WRCOG and as a TUMF Participating Jurisdiction, the City participated in the preparation of a certain “Western Riverside County Transportation Uniform Fee Nexus Study,” (“2002 Nexus Study”) later adopted by the WRCOG Executive Committee. Based on the 2002 Nexus Study, the City adopted and implemented an ordinance authorizing the City’s participation in a TUMF Program.

Pursuant to the Mitigation Fee Act (Gov. Code §§ 66000 et seq.), WRCOG has prepared a new nexus study (“2024 Nexus Study”) to update the fees. On September 9, 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and recommended TUMF Participating Jurisdictions update their fees by amending their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction. On February 25, 2025, the City approved and adopted the 2024 Nexus and its findings.

On December 1, 2025, the WRCOG Executive Committee approved the implementation of an automatic Construction Cost Index (“CCI”) adjustment for all TUMF land uses tied to the September indices of the National Association of Realtors and Engineering News Record with a cap at 5% of any annual adjustments.

Discussion
The proposed Ordinance provides the legal basis for a revised TUMF schedule and allows for an automatic annual CCI adjustments tied to the approved construction cost indices. An automatic CCI adjustment ensures that fees keep pace with increases in constructing transportation projects and avoids large increases at comprehensive TUMF Nexus Study updates. The proposed Ordinance also provides minor refinements to the definitions of a single-family and multi-family residential development.

The actual TUMF schedule will be established through the Resolution. The CCI adjustment of

2.6% will be effective July 1, 2026.

The resolution will establish the Fee Schedule for TUMF as follows:

1. $12,705 per single family residential unit 1,800 square feet or less

2. $14,292 per single family residential unit between 1,801 and 2,300 square feet

3. $15,881 per single family residential unit between 2,301 and 2,700 square feet

4. $19,851 per single family residential unit greater than 2,700 square feet

5. $8,021 per multi-family residential unit

6. $2.39 per square foot of an industrial project

7. $7.92 per square foot of a retail commercial project

8. $5.02 per square foot of a service commercial project

9. $2.51 per square foot of a service Class A and B office Fiscal Impact
Proposed Ordinance will update the TUMF schedule for all new development based on the approved CCI fee adjustment.

TUMF Ordinance Update

Page 3 of 3 ends

Attachments
Attachment 1 – Ordinance
Attachment 2 – Resolution
ORDINANCE NO. 2026-_______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING CHAPTER 16.83 OF THE LAKE ELSINORE

MUNICIPAL CODE TO ESTABLISH CONSTRUCTION COST INDEX

ADJUSTMENTS TO THE WESTERN RIVERSIDE COUNTY

TRANSPORTATION UNIFORM MITIGATION FEE (TUMF) PROGRAM
WHEREAS, the City of Lake Elsinore is a member agency of the Western Riverside Council of Governments (“WRCOG”), a joint powers agency comprised of the County of Riverside and 18 cities located in Western Riverside County. Acting in concert, the WRCOG Member Agencies developed a plan whereby the shortfall in funds needed to enlarge the capacity of the Regional System of Highways and Arterials in Western Riverside County (the “Regional System”) could be made up in part by a Transportation Uniform Mitigation Fee (“TUMF”) on future residential, commercial and industrial development; and WHEREAS, in furtherance of this plan, the WRCOG Executive Committee adopted the “Western Riverside County Transportation Uniform Fee Nexus Study”, dated October 18, 2002 (the “2002 Nexus Study”); and
WHEREAS, based on the 2002 Nexus Study, the City adopted Ordinance 1096 on April 22, 2003, (the “TUMF Ordinance,” and as codified in Chapter 16.83 of the Lake Elsinore Municipal Code) pursuant to California Government Code sections 66000 et seq. authorizing the City to impose the Transportation Uniform Mitigation Fee (“TUMF”) upon new development; and WHEREAS, in 2016, the TUMF Nexus Study (“2016 Nexus Study”) was updated for the purpose of updating the fees. On July 10, 2017, the WRCOG Executive Committee reviewed the 2016 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program; and
WHEREAS, on September 26, 2017, the City adopted Ordinance No. 1381 which adopted the 2016 Nexus Study and updated the TUMF; and
WHEREAS, in 2018, the TUMF Program was altered to adopt a process in which WRCOG calculates and collects TUMF on behalf of member agencies under the Western Riverside County Transportation Uniform Mitigation Fee Program Ordinance of 2018; and WHEREAS, the City adopted Ordinance No. 1501 on February 25, 2025, allowing WRCOG to calculate and collect TUMF on behalf of the City; and WHEREAS, WRCOG, with the assistance of TUMF Participating Jurisdictions, prepared an updated nexus study entitled “Transportation Uniform Mitigation Fee Nexus Study: 2024 Update” (“2024 Nexus Study”) pursuant to California Government Code sections 66000 et seq. (the Mitigation Fee Act), for the purpose of updating the fees; and WHEREAS, in September 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program; and
Ord. No. 2026-

Page 2 of 5 ends

WHEREAS, on February 25, 2025, the City Council approved Ordinance No. 1501, which adopted the 2024 Nexus Study and its findings; and
WHEREAS, the TUMF Administrative Plan calls for a Construction Cost Index (“CCI”) adjustment to be brought forth to the WRCOG Executive Committee on an annual basis; and WHEREAS, on December 1, 2025, the WRCOG Executive Committee approved the implementation of an automatic CCI adjustment for all TUMF land uses tied to the September indices of the National Association of Realtors and Engineering News Record with a cap at 5% of any annual adjustments; and
WHEREAS, an automatic CCI adjustment ensures that fee levels keep pace with increases in cost of constructing transportation projects and avoids large increases at comprehensive TUMF Nexus Study updates; and
WHEREAS, this approach also allows for consistency and predictability for the TUMF Program, while ensuring that the fair share principles under AB 1600 are satisfied; and WHEREAS, the City Council desires to provide for automatic inflationary adjustments to the TUMF to reflect changes in construction costs over time, without modifying the underlying fee nexus, land use assumptions, or fee methodology; and
WHEREAS, this Ordinance also includes minor updates to the definitions portion of the previous Ordinance to clarify the definitions of residential units.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The definition of “Multifamily residential unit” set forth in Section 16.83.030 “Definitions” of the Lake Elsinore Municipal Code is hereby amended to read as follows:
“Multifamily residential unit” means a residential dwelling unit that is physically attached to one or more other dwelling units by a shared wall, floor, ceiling, roof, or structural foundation, regardless of the lot or parcel configuration, ownership structure, or type of subdivision (including condominium subdivisions). Multifamily residential units include, but are not limited to, duplexes, townhomes, apartments, and condominiums with attached units. Accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs), as defined by State law, are exempt from TUMF and shall not be counted in determining residential land use classification.

SECTION 3. The definition of “Single-family residential unit” set forth in Section

16.83.030 “Definitions” of the Lake Elsinore Municipal Code is hereby amended to read as follows:
“Single-family residential unit” means a residential dwelling unit that is physically detached from any other dwelling unit, sharing no common wall, floor, ceiling, roof, or structural foundation with another dwelling unit, regardless of the lot or parcel configuration, ownership structure, or type of subdivision (including condominium subdivisions). Accessory dwelling units (ADUs) and junior accessory dwelling Ord. No. 2026-

Page 3 of 5 ends

units (JADUs), as defined by State law, are exempt from TUMF and shall not be counted in determining residential land use classification.

SECTION 4. Section 16.83.040.C is hereby amended to add the following subpart 1 to read as follows:

1. Beginning July 1, 2026, and annually thereafter, the Transportation Uniform Mitigation Fee (TUMF) shall be automatically adjusted to reflect changes in construction costs.

The annual adjustment shall be calculated by WRCOG based on a blended Construction Cost Index derived from: (1) the National Association of Realtors – Median Sales Price of Existing Single-Family Homes, and (2) the Engineering News-Record (ENR) Construction Cost Index, using the September values of each index from the prior calendar year.

The percentage adjustment applied to the TUMF shall equal the annual percentage change in the blended index; provided, however, that in no event shall the annual adjustment exceed five percent (5%), whether positive or negative.

The calculated adjustment shall be implemented on July 1 of the year following index calculation.

If either referenced index is discontinued or materially altered, WRCOG shall apply a comparable, industry-recognized index that most closely reflects regional transportation construction costs.

SECTION 5. Effect. No provisions of this Ordinance shall entitle any person who has already paid the TUMF to receive a refund, credit or reimbursement of such payment. This Ordinance does not create any new TUMF.

SECTION 6. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this ordinance is found to be invalid by a court of competent jurisdiction, the balance of this ordinance shall not be affected.

SECTION 7. No Procedural Defenses. Prohibition of Jurisdictions from raising procedural defenses, including without limitation a statute of limitations, laches, the California Government Tort Claims Act, and necessary parties in a dispute with WRCOG regarding the matters set forth herein.

SECTION 8. Judicial Review. In accordance with State law, any judicial action or proceeding to attack, review, set aside, void or annul this Ordinance shall be commenced within ninety (90) days of the date of adoption of this Ordinance.

SECTION 9. Ordinance. This Ordinance amends certain provisions of Chapter 16.83 of the Lake Elsinore Municipal Code provided this Ordinance is not declared invalid or unenforceable Ord. No. 2026-

Page 4 of 5 ends

by a court of competent jurisdiction. If, for whatever reason, this Ordinance is declared invalid or unenforceable by a court of competent jurisdiction, Chapter 16.83 and all other related ordinances and polices shall remain in full force and effect.

SECTION 10. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, on this ___ day of __________ 2026.

Robert E. Magee
Mayor
Attest:

Candice Alvarez, MMC
City Clerk
Ord. No. 2026-

Page 5 of 5 ends

STATE OF CALIFORNIA
)
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2026- was introduced by the City Council of the City of Lake Elsinore, California, at the Regular meeting of , 2026 and adopted at the Regular meeting of , 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk
RESOLUTION NO. 2026-_______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, AMENDING THE APPLICABLE TRANSPORTATION UNIFORM

MITIGATION FEE (TUMF) APPLICABLE TO ALL DEVELOPMENTS IN THE

CITY OF LAKE ELSINORE
WHEREAS, the City of Lake Elsinore (“City”) is a member agency of the Western Riverside Council of Governments (“WRCOG”), a joint powers agency comprised of the County of Riverside and eighteen cities located in Western Riverside County; and WHEREAS, the member agencies of WRCOG recognized that there was insufficient funding to address the impacts of new development on the regional system of highways and arterials in Western Riverside County (the “Regional System”); and WHEREAS, in order to address this shortfall, the member agencies formulated a plan whereby a transportation mitigation fee would be assessed on new development and would be used to fund the necessary improvements for the Regional System; and WHEREAS, WRCOG, with the assistance of TUMF Participating Jurisdictions, prepared an updated nexus study entitled “Transportation Uniform Mitigation Fee Nexus Study: 2024 Update” (“2024 Nexus Study”) pursuant to California Government Code sections 66000 et seq. (the Mitigation Fee Act), for the purpose of updating the fees; and WHEREAS, in September 2024, the WRCOG Executive Committee reviewed the 2024 Nexus Study and TUMF Program and recommended TUMF Participating Jurisdictions amend their applicable TUMF ordinances to reflect changes in the TUMF network and the cost of construction in order to update the TUMF Program; and
WHEREAS, consistent with its previous findings made in the adoption of Ordinance No. 1501, the City Council has been informed and advised, and hereby finds, that if the capacity of the Regional System is not enlarged and unless development contributes to the cost of improving the Regional System, the result will be substantial traffic congestion in all parts of Western Riverside County, with unacceptable Levels of Service. Furthermore, the failure to mitigate growing traffic impacts on the Regional System will substantially impair the ability of public safety services (police and fire) to respond and, thus, adversely affect the public health, safety and welfare. Therefore, continuation of a TUMF Program is essential; and WHEREAS, the City Council finds and determines that there is a reasonable and rational relationship between the use of the TUMF and the type of development projects on which the fees are imposed because the fees will be used to construct the transportation improvements that are necessary for the safety, health, and welfare of the residential and non-residential users of the development in which the TUMF will be levied; and
WHEREAS, the City Council finds and determines that there is a reasonable and rational relationship between the need for the improvements to the Regional System and the type of development projects on which the TUMF is imposed because it will be necessary for the residential and non-residential users of such projects to have access to the Regional system.

Such development will benefit from the Regional System improvements and the burden of such developments will be mitigated in part by payment of the TUMF; and CC Reso. No. 2026-

Page 2 of 4 ends

WHEREAS, the City Council finds and determines that the cost estimates set forth in the new 2024 Nexus Study are reasonable cost estimates for constructing the Regional System improvements and the facilities that compromise the Regional System, and that the amount of the TUMF expected to be generated by new development will not exceed the total fair share cost to such development; and
WHEREAS, the fees collected pursuant to the TUMF Ordinance shall be used to help pay for the design, planning, construction of and real property acquisition for the Regional System improvements and its facilities as identified in the 2024 Nexus Study. The need for the improvements and facilities is related to new development because such development results in additional traffic and creates the demand for the improvements; WHEREAS, by notice duly given and published, the City Council set the time and place for a public hearing on the 2024 Nexus Study and the fees proposed thereunder and at least ten (10) days prior to this hearing, the City Council made the 2024 Nexus Study available to the public; and
WHEREAS, at the time and place set for the hearing, the City Council duly considered data and information provided by the public relative to the cost of the improvements and facilities for which the fees are proposed and all other comments, whether written or oral, submitted prior to the conclusion of the hearing; and
WHEREAS, section 16.83.040.C of the Lake Elsinore Municipal Code authorizes periodic review and adjustment to the applicable TUMF in accordance with any adjustments made by the WRCOG Executive Committee; and
WHEREAS, section 16.83.040.C.1 of the Lake Elsinore Municipal Code implements an annual automatic construction cost index (“CCI”) adjustment to the TUMF; and WHEREAS, the purpose of the Resolution is to implement the initial automatic CCI adjustment as provided for in the Lake Elsinore Municipal Code; and WHEREAS, further CCI increases shall be automatically implemented pursuant to section

16.83.040.C.1 of the Lake Elsinore Municipal Code; and
WHEREAS, the automatic CCI adjustment implemented by this Resolution is inflationary only and does not modify the underlying fee nexus, land use assumptions, improvement program, or proportionality findings previously adopted by the City; and WHEREAS, the fees collected pursuant to this Resolution shall be used to finance the public facilities described or identified in the Nexus Study; and WHEREAS, the levying of TUMF has been reviewed by the City Council and staff in accordance with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines and it has been determined that the adoption of this Resolution is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

CC Reso. No. 2026-

Page 3 of 4 ends

SECTION 1. Findings. The recitals set forth above are hereby adopted as findings in support of this Resolution. In addition, the City Council re-adopts the findings contained in Section

16.83.020 in support of the adjusted TUMF contained herein.

SECTION 2. TUMF Schedule. In accordance with Section 16.83.040.C.1 of the Lake Elsinore Municipal Code, there is hereby adopted the following fee schedule implementing the initial CCI adjustment for the TUMF which replaces the fee schedule set forth in Sections 2 and 3 of Resolution No. 2025-7 in its entirety as of July 1, 2026, shall go into effect upon the Effective Date set forth in Section 4, below:

A. There is hereby adopted the following TUMF schedule:
(1) $12,705 per single family residential unit 1,800 square feet or less (2) $14,292 per single family residential unit between 1,801 and 2,300 square feet (3) $15,881 per single family residential unit between 2,301 and 2,700 square feet (4) $19,851 per single family residential unit greater than 2,700 square feet (5) $8,021 per multi-family residential unit
(6) $2.39 per square foot of an industrial project
(7) $7.92 per square foot of a retail commercial project (8) $5.02 per square foot of a service commercial project (9) $2.51 per square foot of a service Class A and B Office SECTION 3. CEQA Findings. The City Council hereby finds that in accordance with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines the adoption of this Resolution is exempt from CEQA pursuant to Section 15061(b)(3).

SECTION 4. Effective Date. This Resolution shall be come in effect on July 1, 2026.

SECTION 5. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 24th day of February 2026.

Robert E. Magee
Mayor
Attest:

Candice Alvarez, MMC
City Clerk
CC Reso. No. 2026-

Page 4 of 4 ends

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2026- was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of February 24, 2026 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk

Lake Elsinore City CouncilFebruary 24, 2026

Lake Elsinore City Council
February 24, 2026