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1 DEVELOPMENT IMPACT FEES
IMPROVEMENT CREDIT AGREEMENT
NUMBER D26-01
PEN22-0131 (Tract 38442)
This Development Impact Fees Improvement Credit Agreement is made and entered into as of the date the City signs this Agreement, by and between the City of Moreno Valley, a municipal corporation, hereinafter referred to as “City” and the undersigned Developer, DR Horton Los Angeles Holding Company, Inc., hereinafter referred to as “Developer.”
RECITALS
WHEREAS, Developer and City have entered into an Agreement for Public Improvements (attached hereto as Exhibit “A”), dated September 30, 2025 , which Agreement for Public Improvements sets forth Developer’s obligations for Public Street Improvements that are a condition of approval for the above-titled development (hereinafter referred to as the “Project”), some of which may be eligible for Development Impact Fees (hereinafter referred to as “DIF”) Credit under this Agreement; and WHEREAS, the City of Moreno Valley Municipal Code Chapter 3.38 “ Residential Development Impact Fees” and Chapter 3.42 “Commercial and Industrial Development Impact Fees” requires Developer to pay the DIF for projects identified in the most DRAFT
2 recently adopted DIF study (hereinafter referred to as “DIF Obligation”) which covers the Project’s fair share of the costs to construct improvements that help mitigate the impacts and burdens on the City’s local systems generated by the Project and that are necessary to provide City services and protect the safety, health, and welfare of residential and non-residential users; and
WHEREAS, certain improvements set forth in the Agreement for Public Improvements are also identified in the City’s DIF Program as improvements that are to be funded from DIF, which identified improvements are set forth in Exhibit “B” attached hereto and hereby incorporated by reference and are hereinafter referred to as the DIF Improvements; and
WHEREAS, if the City or some other third party constructs the DIF improvements set forth in the Agreement for Public Improvements prior to Developer , then this Improvement Credit Agreement shall become null and void and the Developer shall be required to pay the full DIF Obligation of the Project; and WHEREAS, the City and Developer now desire to enter into this Improvement Credit Agreement to provide a means by which the Developer may receive a Credit for required DIF improvements actually constructed by the Developer for the subject Project subject to the terms and limitations set forth in this Agreement.
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3 NOW, THEREFORE, for the purpose s set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, Developer and City hereby agree as follows:
1.0 General Provisions.
1.1 Incorporation of Recitals. The Parties hereby affirm the facts and provisions set forth in the above Recitals and agree to their incorporation herein as though set forth in full.
1.2 Incorporation of the Agreement for Public Improvements. The Parties hereby affirm the terms, conditions and requirements set forth in the Agreement for Public Improvements (Exhibit “A”) and agree to their incorporation herein as though set forth in full.
2.0 DIF Obligation.
2.1 Developer’s DIF Obligation. Developer hereby agrees and accepts that, as of June 16, 2026, the Developer is obligated to pay DIF for the Project to City in the amount of two million, six hundred ninety-one thousand, three hundred twenty one dollars ($2,691,321) (hereinbefore and hereinafter referred to as the “DIF Obligation”) of which $696,101 is for the Arterial Street component of the DIF Obligation and $105,224 is for the Traffic Signal component of the DIF Obligation.
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4 2.2 Effect of Agreement. Notwithstanding anything in this Agreement, Developer acknowledges that the DIF Obligation is established by the provisions of the City of Moreno Valley Municipal Code Chapter 3.38 “Residential Development Impact Fees,” or Chapter 3.42 “Commercial and Indu strial Development Impact Fees,” and that this Agreement does not alter, limit, increase or reduce the obligations under those code sections nor prevent City from adjusting or correcting the DIF Obligation amount to conform to the requirements of the Municipal Code.
3.0 DIF Credit Limitations.
3.1 Calculation of DIF Credit. Pursuant to City of Moreno Valley Municipal Code Section s 3.38.150 “Credit for Improvements Provided by Developers” (residential), or 3.42. 110 “Credit for Improvements Provided by Developers” (commercial and industrial), and in accordance with the City’ s Development Impact Fee Credit and Reimbursement Policy, as adopted by the City Council on August 26, 2008, (the “Credit and Reimbursement Policy”) and in consideration of Developer’s obligations under the Conditions of Approval for the Project and the Agreement for Public Improvements to construct the DIF improvements, the maximum amount of DIF Credit that shall be applied by City to offset the DIF Obligation shall be as defined in Sections
4.0 of this Agreement and the Credit and Reimbursement Policy.
3.2 Effect of Agreement. Notwithstanding the foregoing, Developer acknowledges that the amounts of DIF Credits are established by the provisions of the City of Moreno Valley Municipal Code and the DIF Credit and Reimbursement Policy and this Agreement shall not prevent City from adjusting or correcting the DIF Credit DRAFT
5 amounts set forth in this Agreement to conform to the requirements of the Municipal Code and the Credit and Reimbursement policy.
4.0 DIF Credit
4.1 Maximum DIF Credit. City shall apply DIF C redit to offset , in whole or in part, the Project’s DIF Obligation. The maximum amount of DIF Credit that shall be applied by City to offset the DIF Obligation shall be equal to the least of: (A) the City Engineer’s Estimate of the actual cost of the DIF Improvements (hereinafter collectively referred to as “ Engineer’s Estimate”), or (B) project costs as identified in the DIF study in effect at the time of the issuance of a building permit , or (C) the actual DIF Obligation. In no event shall a DIF Credit exceed the actual DIF Obligation.
4.2 DIF Credit Offset to DIF Obligation . The DIF Credit shall be applied at the time DIF Obligation is due and payable . If the project is to be developed by phases, by specific units, or by specific buildings, DIF Credit shall be applied according to a Public Improvements Phasing Schedule approved by the City and attached and incorporated to this agreement.
4.3 Submittal Timeframe . The Developer shall submit to the City Engineer any and all documentation the Developer deems relevant in substantiating the claim for DIF Credit for the DIF Qualifying Improvements to be constructed by the Developer. Such documentation may include contracts , bids, estimates, or any other relevant documents pertaining to the actual cost of the Qualifying Improvements. The City Engineer shall take into consideration , but shall not be bound by, any such DRAFT
6 documentation submitted by the Developer in formulating the Engineer’s Estimate. All such documentation shall be submitted by the Developer to the City Engineer no later than ninety (90) calendar days prior to the date for payment of DIF for the project. The City Engineer will use his or her best efforts and professional judgment in formulating an Engineer’s Estimate and shall endeavor to provide said estimate to the Developer in writing within sixty (60) calendar days after submittal of the last document submitted by the Developer.
4.4 DIF Credit Calculation (completed by City).
As of the date hereof, the amount of DIF Credit for which Developer is potentially eligible is set forth in Exhibit “C” “DIF Credit Calculation Table ” attached hereto and hereby incorporated by reference.
4.5 Reconciliation - Final DIF Credit . If the dollar amount of the actual DIF Credit is less than the amount of the actual unpaid DIF Obligation (hereinafter referred to as “DIF Balance”), the City shall notify the Developer in writing of the amount of the DIF Balance and Developer shall pay the DIF Balance to fully satisfy the DIF Obligation at the time DIF payments are due . If the dollar amount of the actual DIF Credit exceeds the amount of the actual DIF Obligation, Developer will be deemed to have fully satisfied the DIF Obligation . If the Developer has actually paid DIF and completed DIF Improvements, but has not received full DIF Credit for which the Developer would have been otherwise eligible under the DIF Credit and Reimbursement Policy, t he Developer may be eligible for a Reimbursement Agreement, to the extent DRAFT
7 applicable, as provided in a separate Development Impact Fees Improvement Reimbursement Agreement.
4.6 Credit Transfer for Unfunded DIF Reimbursement Eligibility.
To the extent that Developer has Reimbursement Eligibility Amounts which are both unpaid and unfunded by the City and which have not expired under the ten (10) year limitation set forth in the Development Impact Fee Credit and Reimbursement Policy No. 3.24, Section F – Time Limitation, Developer may apply to receive partial or full DIF Credits for the same component of DIF on another development project within the City owned or controlled by that Developer and which has received all necessary approvals, on a dollar for dollar basis. Written application shall be made to the City and Developer shall provide any and all documentation and other information the City may reasonably request. The City shall not unreasonably withhold approval of such a Credit Transfer.
5.0 No Interest. Developer shall not be entitled to any interest , or any other cost or time value adjustment, for DIF paid to the City whether or not subsequently credited under Section 4.6 or reimbursed.
6.0 Term of Agreement. For purposes of Reimbursement Eligibility and Credit Transfer, this Agreement shall remain in effect for a period not to exceed ten (10) years from the date of execution by the City.
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8 7.0 General.
7.1 Assignment. Except as specifically set forth in this Agreement, this Agreement shall not be assigned by any Party without the prior written consent of the non -assigning Party, which consent shall not be unreasonably withheld. All assignees and successors in interest shall assume and become obligated to perform all obligations and be entitled to all benefits of the original Party.
7.2 Amendment. This Agreement may only be amended in writing signed by the Parties.
7.3 Law, Venue and Jurisdiction. This Agreement shall be governed by the laws of the State of California. Venue and Jurisdiction of all matters arising out, pertaining to, or in any way related to this Agreement shall be vested in the Superior Court of the State of California, in and for the County of Riverside, California.
7.4 Notices. Any notices to be given pursuant to this Agreement shall be in writing and delivered by First Class Mail addressed to the Parties as follows:
City: City Engineer
City of Moreno Valley
Post Office Box 88005
Moreno Valley, California 92552-0805
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9 Developer: DR Horton Los Angeles Holding Company, Inc. 980 Montecito Drive, Suite
300 Corona, Ca 92879
Attn: Megan Whieldon
7.5 Entire Agreement. This Agreement is the final, complete and exclusive statement of the Agreement of the Parties with respect to the subject matter hereof and supersedes and replaces any prior oral or written agreements between the Parties addressing the same subject matter.
(SIGNATURE PAGE TO FOLLOW)
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IN WITNESS WHEREOF, the Parties hereto have caused their authorized representatives to execute this Agreement.
CITY OF MORENO VALLEY,
a California municipal corporation
By: _________________________________
Brian Mohan, City Manager
Its: __________________________________
Date: ________________________________
APPROVED AS TO FORM:
Steven B. Quintanilla, City Attorney
Date: _____________________________
DR Horton Los Angeles Holding
Company, Inc.
a _______________________________
(legal capacity of Developer)
By: _______________________________
Its: _______________________________
Date: ____________________________
By: _______________________________
Its: _______________________________
Date: _____________________________
SIGNING INSTRUCTION TO THE DEVELOPER:
All signatures on the Contract Agreement on behalf of the Developer must be acknowledged before a notary public. In the event that the Developer is a corporation, the president or vice- president plus the secretary of/or an assistant secretary of the corporation must sign. Corporate seal may be affixed hereto.
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DEVELOPMENT IMPACT FEES
IMPROVEMENT CREDIT AGREEMENT, NO. D26-01
TM 38442
202,355 SQ FT
Revised 092508
EXHIBIT “A”
PUBLIC IMPROVEMENT AGREEMENT
WITH BONDS
(ATTACHED BEHIND THIS PAGE)
EXHIBIT “A”
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EXHIBIT “B”
ENGINEER'S ESTIMATE OF DIF IMPROVEMENTS
Alessandro Boulevard – LCO24-0005
CONSTRUCTION ITEM QUANTITY UNIT
UNIT
PRICE TOTAL
Clearing and grubbing 1 LS $2,000.00 $2,000
Roadway Excavation 4,466 CY $30.20 $134,878
Aggregate Base Class II 1,926 CY $47.23 $90,965
Subgrade Prep 57,150 SF $1.00 $57,150
Asphalt Concrete 4,474 Ton $91.53 $409,505
Sidewalk 65 CY $696.55 $45,276
Median Curb – 8” 68 CY $459.40 $31,239
Curb and Gutter - 8" 64 CY $459.40 $29,141
Striping 1 LS $9567.00 $9,567
Mobilization/Traffic Control 1 LS 80,972.00 $80,972
TOTAL $890,693
EXHIBIT “B”
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EXHIBIT “C” – DIF Credit Calculation Table
*May include, but not be limited to, City Hall, Corporate Yard, Animal Shelter, and/or maintenance equipment. **Credit amount shall not exceed obligation.
EXHIBIT “C”
Item Process for
DIF Credit
Calculation
Streets Traffic
Signals
Police Fire Libraries Parks Community/
Rec Centers
Public
Facilities*
Interchange
Improvements
Electric
Utility
1 Engineer’s
Estimate
$890,693 $0 $ $ $ $ $ $ $ $
2 Project costs as
identified in DIF
study
$866,372 $0 $ $ $ $ $ $ $ $
3 Actual DIF
Obligation
$696,101 $105,224 $ $ $ $ $ $ $ $
3 Developer’s
Credit
Amount** -
Least of Lines 1
2 & 3
$696,101 $0 $ $ $ $ $ $ $ $