CITY OF MENIFEE
SUBJECT: Quimby Agreement with Lennar Homes of California, LLC for the Heritage Village Project
MEETING DATE: November 5, 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 Quimby Agreement with Lennar Homes of California, LLC for the Heritage Village Project, located on the northwest corner of Rouse Road and Menifee Road, to support the development of the West Park and Paseo within the Legado Specific Plan, Phase 1, located south of Rouse Road and east of the I-215 freeway.
DISCUSSION
Background
Heritage Village Tentative Tract Map (TTM) 38346 was approved by the Planning Commission on August 9, 2023 and is a project being developed by Lennar Homes of California (Developer) located on the northwest corner of Rouse Road and Menifee Road. This project spans 9.5 gross acres and consists of 162 two-story condominiums. The community will feature privately-owned amenities maintained by the homeowner’s association (HOA) including a private clubhouse, pool, and dog park for residents. A conceptual drawing of the community is provided as Image 1 on the following page.
Parks, Recreation, and Trails Commission Recommendation The proposed Quimby Agreement was presented to the Parks, Recreation, and Trails Commission at their October 2, 2025 meeting. The Commission reviewed and voted unanimously (5-0) to recommend that the City Council approve the proposed Quimby Agreement.
City of Menifee Staff Report
Quimby Agreement for Heritage Village Project (TTM 38346) November 5, 2025
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IMAGE 1 – HERITAGE VILLAGE CONCEPTUAL
Menifee Municipal Code Chapter 7.75: Parkland Dedication And Fees As outlined in Menifee Municipal Code (MMC) Title 7, Article 4, Chapter 7.75, a Quimby assessment is required for new residential development and determines the amount of parkland dedication required by the project and/or fees to be paid in-lieu of parkland dedication by the developer. Quimby assessments are based on several factors including the amount and type of residential dwelling unit, the City requirement to provide five-acres of parkland per 1,000 residents, and fair market value of one-acre of land at the property. Quimby fees collected by the City are then utilized under Local Park (Quimby) Fund 2620 to support City capital projects related to parks, trails, recreation, and facilities. A copy of MMC 7.75 has been attached to this staff report.
In compliance with the municipal code, the City and Developer have agreed upon the fair market value of $250,000 per acre resulting in a total Quimby Assessment of $492,500 for the project.
The Heritage Village development would fulfill its Quimby requirement of 1.97 acres of parkland dedication through the payment of in-lieu fees. The developer has not requested acreage credit for the private HOA amenities as would be allowed under the MMC 7.75
City of Menifee Staff Report
Quimby Agreement for Heritage Village Project (TTM 38346) November 5, 2025
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A calculation of this assessment has been provided as follows:
Heritage Village Quimby Assessment of In-Lieu Fees Calculation:
1.97 Acres of Required Parkland x $250,000 per Acre = $492,500 Quimby Assessment Quimby Agreement
The Developer has requested to enter into a Quimby Agreement that would allow for the reimbursement of Quimby in-lieu fees to be paid for the Heritage Village Project and apply those funds toward the completion of the West Park and Paseo within Legado Specific Plan, Phase 1.
This approach addresses budgetary shortfalls and supports the timely delivery of public park amenities.
Located south of Rouse Road and east of the I-215 freeway, the Legado Phase 1 public park improvements would include an East and West Pocket Park as well as adjacent East and West Paseos. Paseos are paved open space trails designed to connect neighborhoods to parks.
Under the Legado Specific Plan Development Agreement No. 2018-277, adopted by the City Council on June 17, 2020, the developer’s park construction contribution is capped at $3,000,000.
Due to inflationary increases, this amount is no longer sufficient to construct the planned amenities, and there is an estimated $2.88 million funding gap to complete Phase I Park and Paseo improvements.
Because the MMC does not currently provide a mechanism to allocate anticipated Quimby fees between developments, a supplemental Quimby Agreement has been negotiated between the City and Developer and is presented for Council approval. This proposed reimbursement model would authorize the City to reimburse the Quimby fees paid for Heritage Village after they are received and upon verification that the Developer has completed the agreed-upon public park improvements within Legado West Park and Paseo. This agreement offers a cost-effective solution to ensure timely delivery of high-priority park infrastructure while maintaining the City's fiscal flexibility. This agreement is part of the overall funding strategy negotiated between the City and the Developer to be able to complete the Legado Phase I Park and Paseo improvements at the agreed upon standards based on the updated construction costs.
The Quimby Agreement is expressly contingent upon the City Council’s approval of Amendment No. 1 of the Legado Development Agreement, which will address updated parkland construction obligations and funding thresholds. If the amendment is not approved, the Quimby Agreement becomes null and void, ensuring reimbursement occurs only under a Council-approved framework.
The Legado park and paseo conceptual drawings have been reviewed by the Parks, Recreation, and Trails Commission on multiple occasions, with the most recent reviews occurring in 2019 and 2022. This proposal is a unique, site-specific solution that supports the timely delivery of public park amenities and aligns with the City’s broader goal of enhancing access to high-quality recreational spaces in priority growth areas.
City of Menifee Staff Report
Quimby Agreement for Heritage Village Project (TTM 38346) November 5, 2025
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City of Menifee Staff Report
Quimby Agreement for Heritage Village Project (TTM 38346) November 5, 2025
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STRATEGIC PLAN OBJECTIVE
Community Engagement and Social Infrastructure
FISCAL IMPACT
As outlined in Menifee Municipal Code Chapter 7.75 and the terms of the proposed Quimby Agreement, the Developer is required to pay Quimby in-lieu fees in the amount of $492,500 to satisfy the parkland dedication requirement for the Heritage Village Project. These funds will be deposited into the City’s Local Park (Quimby) Fund 2620.
Following confirmation that the Developer has completed the construction of the agreed-upon public park improvements within the Legado West Park and Paseo, and in accordance with the provisions outlined in the Quimby Agreement, the City will reimburse the full amount of $492,500 collected from the Heritage Village Project Quimby fees to Lennar Homes.
There is no anticipated impact to the City’s General Fund, as this involves the collection and reimbursement of Quimby fees only.
ATTACHMENTS
1. Quimby Agreement for Heritage Village (TTM 38346)
2. MMC Title 7, Article 4, Chapter 7.75