1 AGREEMENT BETWEEN
THE CITY OF MENIFEE AND LENNAR HOMES OF CALIFORNIA, LLC REGARDING COMPLIANCE OF TENTATIVE TRACT MAP NO. 38346
WITH GOVERNMENT CODE SECTION 66477
THIS AGREEMENT (the “Agreement”) is entered into this day of ___________, 2025, by and between the City of Menifee (“City”) and Lennar Homes of California, LLC, a California limited liability company (hereinafter referred to as “ Developer”), regarding Developer’s compliance with California Government Code Section 66477 ( the “Quimby Act”), through payment of in-lieu fees for the Heritage Village Project (Tract Map No. 38346) (“Heritage Village Project”).
RECITALS:
WHEREAS, the Heritage Village Project is proposed to be developed with 162 dwelling units within 9.5 gross acres, located in the City of Menifee, County of Riverside, State of California; and WHEREAS, the Heritage Village Project is located within Community Facilities District No. 2025-4 (Heritage Village) of the City of Menifee (the “Heritage Village CFD”); and WHEREAS, the Developer is in the process of fulfilling all of the conditions of approval for the Heritage Village Project, including all conditions, as accepted by the City and Developer, providing for payment of fees required by the Quimby Act (“Quimby Fees”) in lieu of dedication of parkland; and
WHEREAS, on December 17, 2014, the City adopted Ordinance No. 2014-160, codified in Chapter 9.55 of the Menifee Municipal Code (“MMC”), governing the payment of Quimby Fees and/or dedication of land to the City; and
WHEREAS, on November 6, 2019, the City adopted Ordinance No. 2019- 286 repealing Chapter 9.55 of the City Municipal Code and adding Title 7, Subdivisions, to the City of Menifee Municipal Code codifying Chapter 7.75 Parkland Dedication and Fees, governing the payment of Quimby Fees and /or dedication of land to the City; and WHEREAS, City of Menifee Municipal Code, Chapter 7.75 (“Parkland Dedication and Fees”) requires the payment of Park Development Fees also know n as Quimby Fees, adopted pursuant to Government Code Section 64777 to mitigate the impacts of the project on existing public park and recreation facilities located near the project; and WHEREAS, as stated in Menifee Municipal Code Chapter 7.75, based on the average household size of 2.43 people, for multifamily attached (five or more units), number of units within the Heritage Village Project (162 dwelling units), and the level of service standard of five (5) acres per thousand residents, the Developer is required to dedicate 1.97 acres of parkland or pay Quimby Fees based on the appraisal of one acre of improved land; and WHEREAS, in accordance with Menifee Municipal Code Chapter 7.75.070 “Criteria for Requiring Payment of In- Lieu Fees”, the City and Developer have agreed that the fair market value of one acre of improved land is two hundred fifty thousand dollars ($250,000); and 2 WHEREAS, Developer will also be developing public neighborhood parks and paseos that will be financed by the proceeds of the community facilities district for the Legado Residential Project (“West Park and Paseos”) as a requirement of the neighboring project named Legado (the “Legado Residential Project”), consistent with the conceptual plans set forth in EXHIBIT A, which includes the following development approvals Legado Specific Plan (No. 2017-187), Change of Zone (No. 2017-188), Tentative Tract Map (No. 37408), Tentative Tract Map (No. 37409), Tentative Tract Map (No. 37391), and an environmental impact report; and
WHEREAS, on October 2, 2025, for the Heritage Village Project, the Parks, Recreation and Trails Commission approved the Quimby Fee calculation of 1.97 acres of required parkland valued at $250,000 per acre, for a total of four hundred ninety-two thousand, five hundred dollars ($492,500) for in-lieu fees, and also recommended to City Council the approval of an agreement whereby the Quimby Fees paid with respect to the Heritage Village Project shall be earmarked to use exclusively for the construction of the East and West Park and Paseos for the Legado Residential Project; and
WHEREAS, the cost of the West Park and Paseos for the Legado Residential Project has risen above the contemplated maximum Developer contribution; and WHEREAS, the Developer requested that the Quimby Fees paid to the City for the Heritage Village Project be earmarked for and to be used exclusively to finance the completion of the West Park and Paseos for the Legado Residential Project; and WHEREAS, the West Park and Paseos that are to be constructed by the Developer for the Legado Residential Project w ill be in an adjacent area accessible to residents of the Heritage Village Project; and
WHEREAS, the effectiveness of this Agr eement is exp ressly contingent u pon the City Council’s approval of Amendment No. 1 to the Development Agreement for the Legado Specific Plan Project, and in the event such amendment is not approved, this Agreement shall be deemed null and void and of no further force or effect; and NOW, THEREFORE, the parties to this Agreement do mutually agree as follows:
I. RES
PONSIBILITIES OF DEVELOPER
A. Developer shall pay the Quimby Fees calculated at $492,500 for the Heritage Village Project and the City shall earmark and use such funds for the construction of the West Park and Paseos within the Legado Residential Project.
The Developer shall pay the Quimby Fees of $492,500 for the Heritage Village Project on or befo re the time such Quimby Fees are due to the City, which is in compliance with Menifee Municipal Code Chapter 7.75 and in accordance with the terms of this Quimby Agreement. Upon receipt of such Quimby Fees from the Developer, the City shall earmark such Quimby Fees to be used exclusively to finance the West Park and Paseos for the Legado Residential Project either through direct payments to the Developer’s contractors working on the West Park and 3 Paseos or in reimbursement to the Developer for costs it incurs in connection with the development of such West Park and Paseos.
II. RESPONSIBILITIES OF CITY
A. City shall provide timely assistance.
City shall make all reasonable efforts to prov ide timely review and approvals of construction plans, cost estimates, inspections, and final park acceptance documentation under this Agreement.
B. Quimby Fees Fully Financeable Through the Heritage Village CFD.
The Quimby Fees paid in connection with the Heritage Village CFD are authorized to be returned to the Developer upon receipt of bond proceeds of the Heritage Village CFD allocated to such Quimby Fees in equal amount, and the use by the City of such Quimby Fees pursuant to this Agreement shall not adversely affect or otherwise disqualify the Quimby Fees from being returned to the Developer upon receipt of bond proceeds of the Heritage Village CFD allocated to such Quimby Fees in equal amount.
III. ASSIGNEES AND SUCCESSORS-IN-INTEREST BOUND
The Developer and its assigns and successors-in- interest, shall be bound by the terms and conditions contained in this Agreement.
IV. MISCELLANEOUS
A. It is expressly understood and agreed by the Developer and the City that the laws of the State of California shall govern them and the interpretation of this Agreement and that any litigation brought because of, or involving this Agreement, shall be initiated exclusively in the Superior Court, Riverside County.
B. In the event of litigation to enforce this Agreement, the prevailing party in such litigation shall be entitled to reasonable costs and attorneys’ fees.
C. No waiver of any term or condition of this Agreement shall be a continuing waiver thereof.
D. This Agreement may be amended only in writing signed by the City and the Developer.
E. This Agreement constitutes th e entire agreement of the p arties and supersedes all other agreements, whether written or oral. However, this Agreement does not supersede any entitlements issued or related conditions of approval.
F. This Agreement may be executed in counterparts, each of which when so executed shall be deemed an original and all of which, when taken together, shall constitute 4 one and the same instrument.
G. This Agreement inures to the benefit of and is binding upon, the parties, and their respective heirs, successors and assigns.
H. The person(s) executing this Agreement on behalf of the parties hereto warrant that (a) such party is duly organized and existing, (b) they are duly authorized to execute and deliver this Agreement on behalf of said party, and (c) by so executing this Agreement, such party is formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the Developer and the City have caused this Agreement to be signed in their names and on their behalf by their duly authorized representatives.
Dated: “City”
CITY OF MENIFEE, a California Municipal
Corporation
By:
Armando G. Villa, City Manager
ATTEST:
Stephanie Roseen, City Clerk
APPROVED AS TO FORM:
Jeffrey T. Melching, City Attorney
Dated: “Owner”
L
ennar Homes of California, LLC,
a California limited liability company
By:
Print Name:
Its:
EXHIBIT A
West Park and Paseo Conceptual Plans