CITY OF MENIFEE
SUBJECT: Agreement with Core 5 Industrial Partners, LLC for McLaughlin Road Improvements
MEETING DATE: August 19, 2026
TO: Mayor and City Council
PREPARED BY: Chet Robinson, Principal Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Approve and authorize the City Manager to execute an In Lieu Fee Agreement with Core 5 Industrial Partners, LLC through its subsidiary Menifee Commerce Center I, LLC, for developer fee payment in the amount of $1,639,315.52 in lieu of constructing McLaughlin Road between Trumble Road and Dawson Road for the Menifee Commerce Center Project, Parcel Map 38156.
DISCUSSION
Core 5 Industrial Partners, LLC, through its subsidiary Menifee Commerce Center I, LLC (Developer), a Delaware Limited Liability Company, is the developer of Parcel Map 38156 (PM 38156), Menifee Commerce Center, an industrial development south of Ethanac Road between Trumble Road and Dawson Road.
The development entitled PM 38156 included the creation of two parcels for industrial buildings.
Building 1, located between Sherman Road and Dawson Road, is approximately 1,046,539 square feet in size and is currently under construction. Building 2, located between Trumble Road and Sherman Road, was entitled as approximately 385,970 square feet in size; however, this portion of the project was incorporated with the recently entitled Heritage Valley Business Center, Parcel Map 39323.
As part of the PM 38156 development requirements, the Developer was required to construct McLaughlin Road between Trumble Road and Dawson Road. This area of McLaughlin Road has not been previously paved, and the right-of-way has not yet been dedicated for the roadway. The northern half of the roadway is on property owned by Southern California Edison (SCE), and the southern half of the roadway is on private property developed with low-density residential homes.
City of Menifee Staff Report
In Lieu Fee Agreement for PM38156, Menifee Commerce Center August 19, 2026
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The public improvements included with the in-lieu fee for McLaughlin Road include right-of-way acquisition, grading of the pavement subgrade, placement of aggregate base, and installation of a new asphalt concrete pavement surface. Asphalt paved shoulders are included along with graded swales for drainage. Water and sewer utility improvements are not required for the Project within McLaughlin Road, as they are being installed from Ethanac Road.
For the property owned by SCE, the required right-of-way for McLaughlin Road would need to be transferred through their Grant Out process (SCE's formal process for conveying or granting the property rights needed for public right-of-way within SCE's real property). The timeline for Grant Out is longer than can be accommodated by the project's building construction schedule. Rather than delay construction of the project until after the Grant Out process is complete, the City has requested that the Developer provide an in-lieu fee payment for the street improvements. Once the right-of-way has been obtained for McLaughlin Road, the City can use the in-lieu funds to construct the required street improvements.
The Developer has agreed to pay the City $1,639,315.52 in lieu of constructing the conditioned street improvements for McLaughlin Road which includes the estimated costs for the southern right-of-way acquisitions. The proposed In Lieu Fee Agreement (Agreement) memorializes the in- lieu payment between the Developer and the City.
STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community
FISCAL IMPACT
There is no General Fund fiscal impact associated with the recommended action. All costs for development and review of the Agreement have been borne by the developer. The Developer has provided payment to the City in the full amount of the in-lieu fee as of April 16, 2026, which will be held in a trust account to be used by the City to construct the required street improvements once right-of-way has been acquired.
ATTACHMENTS
1. Project Location Map
2. Agreement