CITY OF MENIFEE
SUBJECT: Amendment to Subdivision Improvement Agreement and Bonds for Replacement of Lien Agreement for Tract Map
38303, Menifee Valley, by Minor Ranch LLC
MEETING DATE: October 7, 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 Amendment No. 1 to Subdivision Improvement Agreement and securities to replace an existing Lien Agreement provided to guarantee the completion of required public improvements associated with Tract Map 38303, Menifee Valley, located east of Menifee Road, west of Briggs Road, south of Highway 74 and north of Matthews Road; and
2. Approve and authorize the City Manager to execute a Release of Lien Agreement and authorize the City Clerk to record the release with the Riverside County Clerk Recorder’s Office; and
3. Approve and authorize the City Manager to release prior improvement securities that have been replaced with new improvement securities.
DISCUSSION
Tract Map 38303 (TM38303), also known as Menifee Valley (Project), is a subdivision of 594.6 gross acres of land into 11 lots for industrial, commercial, and residential purposes. The Project is located east of Menifee Road, west of Briggs Road, south of Highway 74 and north of Matthews Road. TM38303 was approved by the City Council on November 6, 2024.
The City Council approved a Lien Agreement as a portion of the required securities for TM38303 with Minor Ranch LLC, a Delaware limited liability company (Developer), as a guarantee for the public improvements on the project frontage along Briggs Road and Highway 74. The Developer City of Menifee Staff Report
Amendment to SIA and Release of Lien Agreement - Tract Map 38303, Menifee Valley October 7, 2026
requested the lien be used as a replacement form of Project security, as the plans were not sufficiently complete at that time for bonds.
The plans for Briggs Road and Highway 74 have since reached a point where the quantities are sufficient for bonding. As such, the Developer has requested an amendment to the Subdivision Improvement Agreement (Agreement) and has provided securities in the form of improvement bonds to replace the existing Lien Agreement that was previously recorded on portions of the property.
A summary of bonds being provided by the Developer as replacement securities to guarantee the completion of the required Project improvements to Briggs Road and Highway 74 is shown in Table 1 below.
TABLE 1- REPLACEMENT PUBLIC IMPROVEMENT SECURITY
Improvement Security Faithful
Performance
Material & Labor
Streets and Drainage –
Briggs Road
902030971-
800182981
$ 2,346,000 $ 2,346,000
Traffic Signals –
Briggs Road
902030980-
800182990
$ 1,503,000 $ 1,503,000
Streets and Drainage –
HWY 74
902045316-
800265832
$ 8,993,000 $ 8,993,000
Total $ 12,842,000 $ 12,842,000
At the time of recordation of TM38303, the Developer had previously posted a bond as security to guarantee the completion of Menifee Road. However, subsequent reviews indicated that a larger bond amount is needed to guarantee the streets and drainage construction quantities. A summary of the originally posted bond is shown in Table 2 below, and a summary of the replacement bond is shown in Table 3 below.
TABLE 2- ORIGINAL PUBLIC IMPROVEMENT SECURITY (TO BE RELEASED) Improvement Security Faithful
Performance
Material & Labor
Streets and Drainage –
Menifee Road
TCS0172691 $ 1,726,000 $ 863,000
Total $ 1,726,000 $ 863,000
TABLE 3- REPLACEMENT PUBLIC IMPROVEMENT SECURITY
Improvement Security Faithful
Performance
Material & Labor
Streets and Drainage –
Menifee Road
TCS0172939 $ 2,430,000 $ 2,430,000
Total $ 2,430,000 $ 2,430,000
City of Menifee Staff Report
Amendment to SIA and Release of Lien Agreement - Tract Map 38303, Menifee Valley October 7, 2026
In addition to the replacement securities, the Developer has also provided securities for additional backbone and frontage improvements for plans that were approved after TM38303 was recorded.
These new improvement securities are shown in Table 4 below.
TABLE 4- NEW PUBLIC IMPROVEMENT SECURITY
Improvement Security Faithful
Performance
Material & Labor
Streets and Drainage –
McLaughlin Rd and Matthews Rd
30260156 $ 1,436,000 $ 1,436,000
Landscape – POC4 TCS0172930 $ 1,298,000 $ 1,298,000
Landscape – POC11 TCS0172928 $ 2,120,000 $ 2,120,000
Landscape – POC5 ES00026537 $ 443,000 $ 443,000
Landscape – POC6 ES00026538 $ 374,500 $ 374,500
Total $ 5,671,500 $ 5,671,500
Staff has reviewed the Developer’s request and determined that the proposed amendment to the Agreement and associated bonds meet the requirements of the Project’s conditions and adequately protect the City’s interests. If approved, and upon full execution of the amendment to the Agreement and the Release of Lien Agreement, the release of lien will be filed with the Riverside County Recorder’s Office to fully discharge the existing lien previously placed on TM38303.
STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community
FISCAL IMPACT
There is no fiscal impact associated with the recommended action. The Developer has paid all necessary fees associated with the replacement of securities. Upon completion of the improvements, and subsequent acceptance by the City, ongoing maintenance costs for the improvements would be supported through fiscal year operating budgets in existing and future annexations into Community Facilities District 2017-1.
ATTACHMENTS
1. Project Map
2. Subdivision Improvement Agreement Amendment No. 1
3. Replacement Bond – Briggs Road Streets and Drainage
4. Replacement Bond – Briggs Road Traffic Signals
5. Replacement Bond – Highway 74 Streets and Drainage
6. Original Bond – Menifee Road Streets and Drainage
7. Replacement Bond – Menifee Road Streets and Drainage
8. New Bond – McLaughlin Road and Matthews Road Streets and Drainage City of Menifee Staff Report
Amendment to SIA and Release of Lien Agreement - Tract Map 38303, Menifee Valley October 7, 2026
9. New Bond – POC4 CFD Landscaping
10. New Bond – POC11 CFD Landscaping
11. New Bond – POC5 CFD Landscaping
12. New Bond – POC 6 CFD Landscaping
13. Release of Lien Agreement