City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, District 3
Dean Deines, District 4
AGENDA
Finance Committee
Special Meeting Agenda
Tuesday, December 12, 2023
2:00 PM Special Meeting
Travis Hickey, Chief Financial Officer
Sarah Manwaring, City Clerk
SPECIAL MEETING (2:00 PM)
1. CALL TO ORDER
2. ROLL CALL
3. PRESENTATIONS NONE
4. PUBLIC COMMENTS (NONAGENDA ITEMS)
This is the time for members of the public to address the Committee Members about items which are NOT listed on the agenda. The Ralph M. Brown Act limits the Committee’s ability to respond to comments on nonagendized matters at the time such comments are made. Each speaker will be limited to three minutes on any single item.
5. APPROVAL OF MINUTES NONE
6. DISCUSSION ITEMS
6.1 Proposed Development Agreement with Brookfield for the Menifee Valley Specific Plan Project
RECOMMENDED ACTION
1. Review the proposed Development Agreement deal points between the City of Menifee and Brookfield for the Menifee Valley Specific Plan Project for the development of approximately 578 acres of land and recommend submittal to Planning Commission and City Council for approval.
6.2 2024 Finance Committee Meeting Schedule
RECOMMENDED ACTION
1. Review and confirm availability for proposed January, February, and March 2024 Finance Committee Meeting dates or propose alternative meeting date(s) for consideration.
7. STAFF COMMENTS
8. COMMITTEE MEMBER UPDATES AND COMMENTS
9. FUTURE AGENDA ITEMS
10. ADJOURNMENT
Decorum Policy Notes
The Committee anticipates and encourages public participation at its meetings, both on agenda items and during the public comments period. Please turn your cell phones off, refrain from talking in the audience or outbursts that may be disruptive. We encourage participation and ask for a mutual respect for the proceedings.
Staff Reports
Materials related to an item on this agenda, including those submitted to the Committee after distribution of the agenda packet, are available for public inspection by contacting the City Clerk Department, at (951) 6726777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 during normal business hours.
Compliance with the Americans with Disabilities Act
If you need special assistance to participate in this meeting, you should contact the City Clerk Department at (951) 6726777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 during normal business hours. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.
Special Finance Committee Meeting
December 12, 2023
City Council Chambers
29844 Haun Road
Menifee, CA 92586
Lesa Sobek, District 3
Dean Deines, District 4
AGENDA
Finance Committee
Special Meeting Agenda
Tuesday, December 12, 2023
2:00 PM Special Meeting
Travis Hickey, Chief Financial Officer
Sarah Manwaring, City Clerk
SPECIAL MEETING (2:00 PM)
1. CALL TO ORDER
2. ROLL CALL
3. PRESENTATIONS NONE
4. PUBLIC COMMENTS (NONAGENDA ITEMS)
This is the time for members of the public to address the Committee Members about items which are NOT listed on the agenda. The Ralph M. Brown Act limits the Committee’s ability to respond to comments on nonagendized matters at the time such comments are made. Each speaker will be limited to three minutes on any single item.
5. APPROVAL OF MINUTES NONE
6. DISCUSSION ITEMS
6.1 Proposed Development Agreement with Brookfield for the Menifee Valley Specific Plan Project
RECOMMENDED ACTION
1. Review the proposed Development Agreement deal points between the City of Menifee and Brookfield for the Menifee Valley Specific Plan Project for the development of approximately 578 acres of land and recommend submittal to Planning Commission and City Council for approval.
6.2 2024 Finance Committee Meeting Schedule
RECOMMENDED ACTION
1. Review and confirm availability for proposed January, February, and March 2024 Finance Committee Meeting dates or propose alternative meeting date(s) for consideration.
7. STAFF COMMENTS
8. COMMITTEE MEMBER UPDATES AND COMMENTS
9. FUTURE AGENDA ITEMS
10. ADJOURNMENT
Decorum Policy Notes
The Committee anticipates and encourages public participation at its meetings, both on agenda items and during the public comments period. Please turn your cell phones off, refrain from talking in the audience or outbursts that may be disruptive. We encourage participation and ask for a mutual respect for the proceedings.
Staff Reports
Materials related to an item on this agenda, including those submitted to the Committee after distribution of the agenda packet, are available for public inspection by contacting the City Clerk Department, at (951) 6726777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 during normal business hours.
Compliance with the Americans with Disabilities Act
If you need special assistance to participate in this meeting, you should contact the City Clerk Department at (951) 6726777, or by coming into City Hall located at 29844 Haun Road, Menifee, CA, 92586 during normal business hours. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting.
Special Finance Committee Meeting
December 12, 2023
CITY OF MENIFEE
SUBJECT: Proposed Development Agreement with Brookfield for the Menifee Valley Specific Plan Project
MEETING DATE: December 12, 2023
TO: Finance Committee
PREPARED BY: Margarita Cornejo, Deputy Finance Director REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Rebekah Kramer, Acting City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Review the proposed Development Agreement deal points between the City of Menifee and Brookfield for the Menifee Valley Specific Plan Project for the development of approximately 578 acres of land and recommend submittal to Planning Commission and City Council for approval.
DISCUSSION
The Menifee Valley Specific Plan is generally located in the northeast area of the City bound by Highway 74 on the north, Menifee Road on the west, Matthews/Case Road on the south and Briggs Road on the east. Brookfield desires to develop the property with an array of housing types and neighborhood amenities, including greenbelts, trails, a public sports park, open space, and an elementary school within the southerly and easterly portions of the Property and civic node public facilities, business park, commercial business park, and commercial areas within the northerly and westerly portions of the Property. The Specific Plan establishes a land use plan, designation of planning areas, development standards, architectural design guidelines and landscape design guidelines for development of a maximum of 1,718 dwelling units, 120,000 square feet of public facilities, 4.36 million square feet for a business park, 1.15 million square feet of commercial/business park, 560,000 square feet (SF) of commercial/incubator, and additional features and amenities on the Property. In addition to a Specific Plan, the project also includes a Specific Plan amendment to remove the property from the Heritage Lake Specific Plan, Tentative Tract Map to subdivide the property into larger planning areas, Development Agreement, and an Environmental Impact Report.
The proposed Development Agreement with Brookfield provides for the following key points:
•15-year agreement with option for an additional 5 years subject to completion of minimum 75,000 SF of commercial retail.
Item: 6.1
Item Page Number: 1
Menifee Finance Committee December 12, 2023 Page 3 of 24
City of Menifee Staff Report
Proposed Development Agreement with Brookfield for the Menifee Valley Specific Plan Project December 12, 2023
1 9
4 6
•Development Impact Fees (DIF) credits based on facility construction. •Public facility site dedication of graded pad with utilities. •Fire Station cash contribution for City construction of station. •Pre-established timelines for completion of sports park, aquatics center, pedestrian bridge, paseos, private recreation center/clubhouse, and retail commercial spaces. •Administrative approvals and allowances for subsequent approvals with specific conditions.
•Plan Check/inspection effort to maintain 3-2-2 timeframe. •Transportation improvements constructed pursuant to specific development milestones.
Following the review of the proposed deal points of the development agreement with Brookfield, and recommendation of the Finance Committee, the next steps would include submittal of the agreement to the Planning Commission (anticipated January 2024) and City Council (anticipated February 2024).
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Project Site Map
2. Presentation Slides
Item: 6.1
Item Page Number: 2
Menifee Finance Committee December 12, 2023 Page 4 of 24
Service Layer Credits:
ÄÆ74
MENIFEE RD
MATTHEWS RD
MATTHEWS RD
BRIGGS RD
SIMPSON RD
MCCALL BLVD
City of
Menifee
Unincorporated
Riverside County
SOURCE: Google Imagery (2021)
I:\CIM2106\GIS\MXD\EIR\Project_Location_EIR.mxd (9/13/2023) FIGURE 3.2
Proposed Project
0 1000 2000
FEET
LEGEND
Proposed Menifee Valley Specific Plan
Approved Specific Plan 301
City Boundary
Menifee Valley Specific Plan EIR
Item: 6.1
Item Page Number: 3
Menifee Finance Committee December 12, 2023 Page 5 of 24
City of Menifee
Finance Committee
December 12, 2023
Menifee Valley Specific Plan
Development Agreement
Item: 6.1
Item Page Number: 4
Menifee Finance Committee December 12, 2023 Page 6 of 24
Project
Location
2 Item: 6.1
Item Page Number: 5
Menifee Finance Committee December 12, 2023 Page 7 of 24
Entitlement Applications
• General Plan Amendment
• Change of Zone
• Specific Plan Amendment
• Specific Plan
• Tentative Tract Map
• Development Agreement
3 Item: 6.1
Item Page Number: 6
Menifee Finance Committee December 12, 2023 Page 8 of 24
Specific Plan Land Use Plan
• Residential – 1,718 Dwelling Units
• Public Facilities – 120,000 SF
• Business Park – 4.36M SF
• Commercial/Business Park – 1.15M SF
• Commercial – 560,000 SF
4 Item: 6.1
Item Page Number: 7
Menifee Finance Committee December 12, 2023 Page 9 of 24
Land Use
Plan
5 Item: 6.1
Item Page Number: 8
Menifee Finance Committee December 12, 2023 Page 10 of 24
“Concept”
Site Plan
Key Features
• Civic Node – fire station,
transit stop
• Public sports park – ball fields
and aquatic center
• Private clubhouse and pools
• Community farm/produce
stands/garden growing area
• Potential elementary school
• Pedestrian bridge
• Greenbelts
• Preserve Granite Hill
6 Item: 6.1
Item Page Number: 9
Menifee Finance Committee December 12, 2023 Page 11 of 24
Sports Park
&
Private Rec
Center
7 Item: 6.1
Item Page Number: 10
Menifee Finance Committee December 12, 2023 Page 12 of 24
Pedestrian Bridge
8 Item: 6.1
Item Page Number: 11
Menifee Finance Committee December 12, 2023 Page 13 of 24
Circulation Improvements
• State Route 74
• Menifee Rd
• Briggs Rd
• Malaga Rd
• McLaughlin Rd
• Matthews/Case Rd
• McCall Blvd
Roadway
Improvements:
9 Item: 6.1
Item Page Number: 12
Menifee Finance Committee December 12, 2023 Page 14 of 24
Phasing Plan
• Phase 1
o PAs 1 and 2 (Residential)
o PAs 7A, 7B, and 8A (Open Space‐Rec & ‐
Conservation and Greenbelts)
o PA 11 (Business Park)
o PA 12 (Commercial‐Business Park)
o Residential Spine St; Briggs Rd (along PAs 1, 7A and
7B); Menifee Rd (along PA 11); McLaughlin Rd; and
Malaga Rd (from Highway 74)
• Phase 2
o PAs 3, 4, 5 (Residential)
o PA 6 (School)
o PA 8B (Open Space‐Greenbelt)
o PA 10 (Business Park)
o Briggs Rd (along PAs 3 and 5) and Menifee Rd
(along PA 10)
• Phase 3
o PA 9 (Public Facility)
o PA 13 (Commercial Retail)
o Highway 74 and Menifee Rd (along PA 9)
o Pedestrian and bike‐only bridge
10 Item: 6.1
Item Page Number: 13
Menifee Finance Committee December 12, 2023 Page 15 of 24
Development Agreement Deal Points
a) Term: 15 years with option for additional 5 years subject to completion of minimum 75,000 sf of commercial retail constructed along Highway 74. (this is approximately 65% of 115,000 square feet anticipated in PA13C east of Malaga). b) DIF credits for constructed facilities
c) Public Facility Site dedication of graded pad with utilities. d) Fire Station $10m cash contribution for City construction (paid in increments for design/construction with goal to have construction completed close to 1st bldg. occupancies)
e) Sports Park/Aquatics Center/Pedestrian Bridge Timing:
a. Brookfield to submit Plot Plan within 6 months of Tract Map approval creating the park lot. b. Brookfield to submit construction drawings and have approved prior to 1 st production certificate of occupancy. c. Brookfield to complete construction and open to public prior to 250 th residential occupancy. d. Park DIF credits but NO reimbursement available for above‐beyond facilities e. Pedestrian Bridge exception for outside agency approvals f) Paseo Timing: 8B complete prior to BP in PA 10 and 8A complete prior to 1 st res occ. unless facilities in PA9 are completed then the paseos shall be completed prior to any occupancy for PA9 g) Private Rec Center/Clubhouse timing: complete prior to 1 st production certificate of occupancy for the residential h) Retail Commercial timing:
a. Brookfield (or assignee) to construct and complete a minimum of 34,500 square feet (or approximately 30% of the anticipated retail commercial) prior to issuance of any building permits in Phase 2 (anticipated as Food Hall concept)
b. Allowance for further market conditions analysis should the developer/assignee not be able to perform. 11 Item: 6.1
Item Page Number: 14
Menifee Finance Committee December 12, 2023 Page 16 of 24
Development Agreement Deal Points cont.
i.) Subsequent Approvals:
a. Administrative approvals by City Manager/Designee if proposals consistent with SP and all development/design standards. No variances/CUPs/additional CEQA. Authority to take to PC/CC at CM/CDD discretion. Appeal rights would still exist.
b. Allowances as follows consistent with SP Figure 2.1:
‐Residential Tract Maps
‐Commercial Plot Plans
‐Industrial Plot Plans as long as buildings do not exceed:
‐1,450,000 SF in PA 10
‐1,400,000 SF in PA 11
‐570,000 SF in PA 12
j.) Plan Check/Inspection:
a. City cannot commit to dedicated staff/consultants as this is dependent on available qualified staff
b. City to aim to process all plan checks with a 3‐2‐2 timeframe (ie 3 weeks 1 st submittal/2 weeks all subsequent submittals) subject to:
a. Available staffing; and
b. Brookfield to construct/submit plans for a phased project and all submittals to include detailed memo identifying all design exceptions, responses to all comments, and presubmittal meetings with all relevant experts in attendance. 12 Item: 6.1
Item Page Number: 15
Menifee Finance Committee December 12, 2023 Page 17 of 24
Development Agreement Deal Points cont.
k.) McCall Blvd. Offsite Improvements – construct prior to any occupancy in Phase 2 with reimbursement for costs above Brookfield obligation to be paid back through collected fair shares, TUMF, CFD premiums, or BESS CBA funds within 3 years of completion. Project will be required to participate in future RBBD (with allowances for credits for improvements constructed)
Off‐site fair share contributions per TIA
Off‐site construction improvement timing per TIA. City to assist with eminent domain when necessary for General Plan designated roadways
13 Item: 6.1
Item Page Number: 16
Menifee Finance Committee December 12, 2023 Page 18 of 24
Project Public Benefits:
Parks: $25M
a. Park DIF estimated at $1.7M to be credited
b. Construction Costs of Sports Park/Aquatic Center &
Pedestrian Bridge estimated at $20M
c. Other parks (linear, rec. ctr. Dog park) estimated at $5.5M Civic Parcel/Fire: $19.6M
a. Fire DIF estimated at $2.7M to be credited
b. Value of land estimated at $9.6M
c. Fire Station construction estimated at $10M
McCall Improvements Advance: $17M (40% Brookfield
obligation/60% to be reimbursed)
14 Item: 6.1
Item Page Number: 17
Menifee Finance Committee December 12, 2023 Page 19 of 24
Other Project Economic Impacts:
• Net fiscal benefit estimated at over $1M per year to City of Menifee (general fund).
• Over 5,800 jobs
• Up to 1,700 homes
• Payment of DIF and TUMF fees estimated at over $65M.
• Development of a Community Farm valued at +/‐ $3M.
• Development of Incubator Space designed specifically for small business along Highway 74.
• Development of retail/commercial center at Highway 74 and Malaga.
15 Item: 6.1
Item Page Number: 18
Menifee Finance Committee December 12, 2023 Page 20 of 24
Next Steps
• Draft EIR public review period
October 19 to December 4, 2023
• Tentative Planning Commission Meeting
January 10, 2024
• Tentative City Council Meeting
February 7, 2024
16 Item: 6.1
Item Page Number: 19
Menifee Finance Committee December 12, 2023 Page 21 of 24
Thank You.
Questions?
Item: 6.1
Item Page Number: 20
Menifee Finance Committee December 12, 2023 Page 22 of 24
CITY OF MENIFEE
SUBJECT: 2024 Finance Committee Meeting Schedule
MEETING DATE: December 12, 2023
TO: Finance Committee
PREPARED BY: Margarita Cornejo, Deputy Finance Director REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Rebekah Kramer, Acting City Manager
-------------------------------------------------------------------------------------------------------------------------------
RECOMMENDED ACTION
1. Review and confirm availability for proposed January, February, and March 2024 Finance Committee Meeting dates or propose alternative meeting date(s) for consideration.
DISCUSSION
The 2024 regular meeting schedule for the City Council Finance Committee was reviewed during the November 7, 2023, Committee meeting. Based upon the availability of the committee members, the January 9, and March 12, 2024, meeting dates were canceled.
The 2024 regular meeting schedule:
•Tuesday, January 9, 2024, 2:00 PM (canceled)
•Tuesday, March 12, 2024, 2:00 PM (canceled)
•Tuesday, May 7, 2024, 2:00 PM (confirmed)
•Tuesday, July 9, 2024, 2:00 PM (confirmed)
•Tuesday, September 10, 2024, 2:00 PM (confirmed)
•Tuesday, November 12, 2024 2:00 PM (confirmed)
Anticipating future agenda items for the Committee’s review during the early part of the calendar year, staff is proposing the following alternative meeting date(s) for consideration:
•Tuesday, January 23, 2024, 3:30 PM (proposed)
•Tuesday, February 13, 2024, 2:00 PM (proposed)
•Tuesday, March 26, 2024, 2:00 PM (proposed)
Item: 6.2
Item Page Number: 1
Menifee Finance Committee December 12, 2023 Page 23 of 24
City of Menifee Staff Report
2024 Finance Committee Meeting Schedule
December 12, 2023
1 9
6 8
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
None.
Item: 6.2
Item Page Number: 2
Menifee Finance Committee December 12, 2023 Page 24 of 24