CITY OF MENIFEE
SUBJECT: Overview of the City of Menifee Land Use Financial Analysis MEETING DATE: December 17, 2025
TO: Mayor and City Council
PREPARED BY: Kayla Charters, Economic Development Manager REVIEWED BY: Bryan Jones, Assistant City Manager
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Review and discuss the Land Use Financial Analysis presentation provided by Urban3, LLC.
DISCUSSION
On November 6, 2024, the City of Menifee entered into an agreement with Urban3, LLC to perform a Land Use Analysis on the City of Menifee. This effort was guided by the City of Menifee’s Strategic Plan and the strategic priority “Thriving Economy.” A core value detailed within this strategic priority is the commitment to “encourage smart growth.” Although “smart growth” is often cited, the City currently lacks data and analysis on the fiscal impacts of the City’s growth pattern that would empower City leadership to guide smart growth.
Menifee continues to attract national attention for its rapid growth, driven largely by significant residential development throughout the community. As housing growth accelerates, it is increasingly important for the City to understand and plan for the long-term fiscal impacts of this growth. Single-family residential development, while an important component of the community, often does not generate sufficient property tax revenue to cover the cost of the municipal services it requires, particularly in areas such as public safety, infrastructure, and long-term maintenance.
As a result, it is critical that the City explores revenue generation avenues that maximize return on investment and balance the residential growth that the City of Menifee has experienced. This analysis will discuss opportunities to balance existing residential development with diverse housing types and commercial development to achieve a more sustainable model.
The City’s opportunities to generate long-term revenue are limited by the amount of commercially zoned land available, much of which is concentrated along specific corridors. These areas represent some of the last remaining opportunities to maximize return on investment and support long-term fiscal sustainability. Understanding the productivity of these lands, and the City’s overall development pattern, is essential to planning for a balanced and resilient future. As the City
City of Menifee Staff Report
Land Use Analysis
December 17, 2025
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advances the Menifee Innovation District, the Economic Development Corridors, and a future downtown vision, the models presented will serve as important tools to guide and reinforce smart- growth decision making.
In order to promote a balanced pattern of smart growth, the City, in partnership with the consultant Urban3, LLC, have evaluated existing land use productivity and the fiscal impact of current development patterns. This work establishes a baseline condition that allows the City to understand how different land uses contribute to (or draw on) the City’s revenue structure. With this data, the City can evaluate fiscal impacts of existing development and model return-on- investment scenarios for future projects, providing City leadership with the tools needed to guide smart growth decisions.
Urban3, LLC is a consulting firm specializing in land value economics, property tax analysis, and community design. Their methodology analyzes fiscal implications at the parcel level, while also assessing trends across the entire community. The analysis incorporates property tax assessments, sales tax, income levels, and other key economic metrics. The results are translated into clear, data-rich visualizations illustrating value per acre, property tax productivity, and sales tax productivity across the City. These visual tools will help City staff and leadership better communicate and understand Menifee’s economic and spatial dynamics and will support future policy discussions around fiscal sustainability and smart growth.
STRATEGIC PLAN OBJECTIVE
Thriving Economy
The results of this analysis would empower staff and leadership to guide smart growth within the City of Menifee, ultimately supporting a thriving economy.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Fiscal Analysis Report