CITY OF MENIFEE
SUBJECT: Agreement with Faith Lutheran Church for the Purchase of Real Property for the Sun City Greenspace Project
MEETING DATE: August 6, 2025
TO: Mayor and City Council
PREPARED BY: Kori Jones, Senior Management Analyst
REVIEWED BY: Mariana Mitchell, Community Services Director APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Approve and authorize the City Manager to execute a Purchase and Sale Agreement for real property between Faith Lutheran Church for the property located at the northwest corner of Portsmouth Drive and Roanoke Road for a total not-to-exceed amount of $450,741.15; and
2. Approve and authorize the City Manager to execute the Covenants, Conditions, Restrictions and Easement Agreement (CC&R) with Faith Lutheran Church; and
3. Authorize the City Manager to execute any agreements or documents required for the acquisition of real property including but not limited to escrow, broker fees, title, insurance, formal bonding appraisal, documents relating to the grant program with final execution subject to clear title.
DISCUSSION
The Sun City Community has a vibrant history that spans decades before the incorporation of the City of Menifee. As a master planned retirement community built in the 1960’s, Sun City has watched Menifee grow into the full-service City it is today. Although many improvements have taken place involving the local infrastructure, few developments relating to greenspace and recreational amenities have occurred in this area. The opportunity to dedicate passive parkland, open greenspace, and age-appropriate amenities in Sun City is identified in both the 2016 and 2023 Parks Master Plans and was highlighted as part the 2022 Strategic Visioning Workshops.
In 2021, representatives from the Faith Lutheran Church (Faith Lutheran) proposed to sell a 1.94- acre portion of their property, located at 28200 Portsmouth Drive, to the City for development of a dedicated passive park for the local senior community. Subsequently, Faith Lutheran assisted
City of Menifee Staff Report
Purchase and Sale Agreement with Faith Lutheran Church
August 6, 2025
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the City with an application for the California Natural Resources Agency (CNRA) Urban Greening Grant Program by providing a letter indicating they were a “willing seller” of the property.
The CNRA Urban Greening Grant Program focuses on reducing greenhouse gas emissions while enhancing underserved communities. The Sun City Greenspace project meets these criteria based on population served and existing community access to greenspace. Being a community comprised primarily of retirement-aged residents; Sun City is generally considered to be low- income and/or underserved. Sun City also lacks community access to open greenspace due to the prevalence of easier-to-maintain drought tolerant landscaping located throughout the area and lack of a City-maintained public park.
CNRA Grant Funding Available for Acquisition
In March 2023, the City was notified by CNRA that its grant application for land acquisition of the
1.94-acre lot portion, was approved for funding in the total amount of $524,700. The CNRA grant funds cover purchase of the property at the appraised value of $446,500 as well as costs related to the acquisition such as appraisal, title, escrow, insurance, state appraisal review, direct costs, and contingency. A funding match from the City is not required under this grant program. A description of the current grant budget is provided in Table 1.
TABLE 1: CNRA GRANT BUDGET
Item Description Grant
Costs
City
Costs Total
Fair Market Value of Property $446,500 $446,500
Preliminary Title Reports, Appraisals $5,000 $5,000
Escrow Fees, Title Insurance, Closing Costs $20,000 $20,000 Direct Costs (Staff and Consultants) $10,000 $10,000
Contingency $38,200 $38,200
State approval of appraisal/transaction $10,000 $10,000 Funding Acknowledgment Sign $500 $500
Totals $524,700 $5,500 $530,200
Acceptance of the CNRA grant award in the amount of $524,700, along with the associated Budget Amendment Resolution (BAR) for related costs, was approved by City Council on June 21, 2023. As such, an updated BAR is not required as part of the recommended action.
Upon approval of this purchase agreement, a reimbursable retention of 5% of the purchase price (totaling $26,566.15) would be paid by the City to escrow as part of the closing process required by the grant. This retention amount, along with any other qualified grant-related expenses, will be submitted to CNRA for reimbursement prior to the end of the grant term. Staff will request a budget modification to the grant as needed to ensure that all available grant funds have been expended.
Faith Lutheran Covenants, Conditions, Restrictions (CC&R) and Easement Agreement Following notification of the grant award, Community Services negotiated with Faith Lutheran Church on various terms including a lot line adjustment to divide the existing parcel, church parking lot access, purchase agreement terms, and responsibilities of each party. After a thorough City of Menifee Staff Report
Purchase and Sale Agreement with Faith Lutheran Church
August 6, 2025
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negotiation process, both parties have agreed to the terms of the purchase agreement as well as the accompanying CC&R and Easement Agreement.
Key highlights of the CC&R are as follows:
•Access & Parking: Park visitors will use street parking; only emergency and maintenance access is allowed through the church lot.
•Design & Use Restrictions: The park is intended for passive use—no restrooms, sports fields, or playgrounds; features like open fencing and limited hardscape support safety and visibility.
•Landscaping & Maintenance: The City will remove select trees and maintain the park to City standards, including security.
•Long-Term Use & Coordination: The site is deed-restricted as parkland, with mutual notice required for any future work impacting either property.
In compliance with CNRA grant requirements, both the purchase agreement and property appraisal have been reviewed and approved by the California Department of General Services (DGS). Escrow services will be facilitated by Palm Tree Escrow, Inc. and closing process supported by Dokken Engineering.
Sun City Greenspace Development of Public Amenities (1.94 Acres) Funding for design and construction of parkland within the Sun City area was approved under the Fiscal Year (FY) 2023-24 Capital Improvement Program (CIP) under project number CIP 24-11.
Community Services awarded a contract for design services to BMLA, authorized through the City’s short-list master agreement on September 6, 2023. BMLA has since completed an extensive community outreach effort and complete project design.
On March 4, 2024, a community meeting was held at the Faith Lutheran Church which welcomed approximately 100 attendees primarily comprised of senior residents from the surrounding community. Based on public feedback, and stipulations of the grant award, the 1.94-acres would be constructed as a passive green space focused on serving the unique needs of senior residents with age-appropriate amenities. The space would be an ideal destination for short-term group activities such as exercise classes or short walks along a variety of trails and gardens.
Some unique features of this green space would include:
•Age-appropriate workout stations
•Rose garden
•Habitat gardens
•Shaded picnic area/gathering space
•Art exhibition area
•Hedge buffer at the property line as separation for surrounding homes With the design phase nearing its completion, the initial engineer estimates project approximately $1.5 million would be required to complete the construction of this project. As such, additional funding would be necessary to fully implement the approved design. A resolution for Community Services staff to apply to the Land and Water Conservation Fund (LWCF) 2025 grant cycle in the amount of $750,000 was approved at the July 16, 2025 Council Meeting. The LWCF supports City of Menifee Staff Report
Purchase and Sale Agreement with Faith Lutheran Church
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the acquisition, or development, of parks and open space, with an emphasis on supporting underserved or park-deficient communities.
The list of awarded projects is scheduled to be announced in January 2026. If awarded, the LWCF grant program would require a 50% local match, bringing the total available construction budget to $1,500,000. The City’s match would be funded through CIP 24-11. If the grant application is unsuccessful, staff would work with BMLA to produce a phased design approach. Additional funds for construction may be available in the existing Quimby Local Park fund balance following approval of City Council. A copy of the Sun City Greenspace design has been attached to this report for review.
STRATEGIC PLAN OBJECTIVE
Community Engagement and Social Infrastructure
FISCAL IMPACT
The property acquisition is fully funded through a $524,700 grant from the California Natural Resources Agency, with no City match required. As part of the grant requirements, the City will deposit a 5% retention ($26,566.15) into escrow at closing. This amount will be paid to the seller as part of the total purchase price and later reimbursed to the City by CNRA upon successful completion of the grant close-out process. Expenses for the $26,566.15 and $4,627.15 closing costs will be funded by available budget within Account 4320-PWD-CIPC-906-17002-690010.
The remainder of the acquisition costs will be directly paid with the State moving the funds to the escrow account. All related acquisition costs were previously approved by City Council on June 21, 2023; therefore, no new Budget Amendment Resolution is needed.
Design and construction are currently funded under CIP 24-11, with $600,000 in existing allocations. To support full build-out, staff has submitted a $750,000 grant application to the Land and Water Conservation Fund, which requires a 50% local match. If awarded, this match would be covered through CIP 24-11 funds and supplemented by the Quimby Local Park fund balance, if needed.
Future maintenance of the Sun City Greenspace will be incorporated into the General Fund operating budget in upcoming fiscal years.
ATTACHMENTS
1. Purchase and Sale Agreement
2. Covenants, Conditions, Restrictions and Easement Agreement
3. Conceptual Park Design