CITY OF MENIFEE
SUBJECT: Agreement with Urban3, LLC for Phase 2 and 3 of a Land Use Financial Analysis
MEETING DATE: June 3, 2026
TO: Mayor and City Council
PREPARED BY: Kristina Hernandez, Management Analyst I
REVIEWED BY: Kayla Charters, Economic Development Director APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Approve and authorize the City Manager to execute a Professional Services Agreement with Urban3, LLC. for Phase 2 and 3 of a Land Use Financial Analysis to evaluate the City’s long- term fiscal sustainability and infrastructure obligations for a total not-to-exceed amount of $167,655 through June 30, 2027.
DISCUSSION
On December 17, 2025, the City Council reviewed a Land Use Fiscal Analysis prepared by Urban3, LLC, which evaluated taxable value per acre, land use productivity, development patterns, and comparative fiscal performance throughout Menifee (Phase 1). The analysis used visualization tools and 3D economic modeling to illustrate the relationships among land use, development intensity, and long-term fiscal sustainability. Key findings highlighted the economic impacts and productivity of varying land uses and development patterns while establishing a baseline framework for evaluating future growth.
The study has been utilized as an economic development and planning tool to help communicate the fiscal impacts of varying development patterns, infrastructure intensity, and redevelopment opportunities to City staff, the development community, and prospective investors. Findings and visualizations from the analysis have been incorporated into presentations and outreach efforts with stakeholders, including brokers, developers, and community audiences, to illustrate how strategic land-use decisions can support long-term fiscal sustainability, economic diversification, and future infrastructure investment. The analysis has also become a valuable resource in evaluating future development opportunities and advancing discussions surrounding Menifee’s long-term growth strategy and economic vision.
City of Menifee Staff Report
Urban3 Phase 2 and 3 Analysis
June 3, 2026
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Building upon the initial analysis, staff is proposing Phases 2 and 3 to further evaluate the City’s long-term fiscal sustainability and infrastructure obligations. Phase 2, Fiscal Review and Fiscal Mapping, would analyze the relationship between City revenues and long-term infrastructure costs, including transportation, stormwater, water, and wastewater systems. This phase would also include infrastructure mapping and fiscal sustainability modeling to assist staff in evaluating the fiscal impacts of future development proposals and land use scenarios.
Phase 3, Development Scenario Projections and Final Presentations, would utilize the prior analysis to model and visualize up to three potential development scenarios within the City.
Deliverables would include data-driven projections related to revenue generation, infrastructure costs, long-term fiscal sustainability, interactive visual reports, ESRI-compatible mapping tools, and public presentations.
The additional phases would provide the City with enhanced tools and data to support future discussions related to infrastructure investment, capital improvement planning, corridor planning, downtown development, and evaluation of future development proposals, giving the City a clear roadmap to optimize resources and enhance strategic and sustainable economic growth.
Due to the firm’s specialized expertise, existing access to transaction and use tax records of the Board of Equalization, as well as prior completion of Phase 1, and pursuant to Menifee Municipal Code § 3.12.130, it was determined that competitive solicitation would not provide additional value. Continuing with Urban3 would ensure project continuity, consistency, and cost efficiencies by avoiding duplication of prior work and redevelopment of existing models.
STRATEGIC PLAN OBJECTIVE
Thriving Economy
The proposed Phase 2 and 3 analyses would continue advancing the City Council’s Strategic Plan priority of fostering a “Thriving Economy” by equipping City leadership, staff, and the community with objective data and visualization tools to support informed growth, infrastructure investment, and long-range planning decisions.
FISCAL IMPACT
The fiscal impact of the proposed Agreement with Urban3, LLC, is in the total amount not-to- exceed $167,655. Budget for this request was included and adopted in the FY 2025/26 Mid-year budget.
ATTACHMENTS
1. Agreement
2. Phase 2 and 3 Proposal