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1 RiversideCA.gov
1 RiversideCA.gov
City Council
September 5, 2023
Agreement with KB Sycamore Hills I, II,
and III, LLC – Transfer of responsibility and
acceptance of an endowment fund
City Manager’s Office
RiversideCA.gov
2 1. On January 25, 2022, the City Council reviewed, approved and certified an Environmental Impact Report (EIR) for a Parcel Map, a Minor Conditional Use Permit, a Design Review, a Variance, a Grading Exception proposal by Darrell Butler and Khosro Khaloghli of KB Development to facilitate the development of two warehouse buildings totaling 603,100 square feet on 48.64 acres, situated on the north side of Alessandro Boulevard, east of Barton Street, west of San Gorgonio Drive.
2. A total of 108 conditions of approval apply to the project including Condition of Approval No. 75
BACKGROUND
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3 LOCATION MAP
RiversideCA.gov
4 SITE PLAN
Alessandro Boulevard
Barton Street
Parcel 2
Parcels A & B
“Restricted Property”
“Conservation Area”
Parcel C
Parcel 1
Sycamore Canyon
Wilderness Park
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5 “As required by Instrument 2009-03 0 6-15-2009 Army Corps, Owner will transfer ownership in fee title of Parcels A & B (conservation easements) to City. City’s acceptance of Parcels A& B is contingent upon:
a. Owner’s successful completion of all regulator agency requirements a n da n yr e l a t e dm i t i g a t i o nm e a s u r e s . b. Owner’s provision of maintenance and land management services for the conservation easement areas, performed by a qualified and city-approved land management organization, funded by Owner in perpetuity with a non-wasting endowment.”
CONDITION OF APPROVAL 75
RiversideCA.gov
6 c. Prior to City’s acceptance of property interest for open space lots APN 263-060-022, 024, a nd 026, the Rivers and Land Conservancy (RLC) Board of Directors shall approve final acceptance of a conservation easement over the property. The conservation easement shall incorporate all cost associated with mitigation and management of the land including, but not limited to any additional cost associated with correction actions required from violations of conservation easement and or natural causes, e.g. – homeless encampments, dumping, vandalism, fire, flood, etc.”
CONDITION OF APPROVAL 75 (CONT’D)
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7 3. On July 26, 2023, the Rivers & Lands Conservancy (RLC) Board of Directors approved Resolution 2023-002. The RLC Board accepted responsibility for the Conservation Easement habitat with a corresponding $866,000 endowment and a fence installation/maintenance/repair endowment of $622,000 for a total endowment of $1,488,000. The Resolution excludes a portion of Condition of Approval No. 75(c), specifically the requirement to address “homeless encampments, dumping, [and] vandalism…”
4. In July 2023, given RLC decision, the property owner/developer requested the City of Riverside consider accepting the responsibility for the portion of Condition of Approval No. 75(c) pertaining to “homeless encampments, vandalism and dumping.”
5. In August 2023, the City of Riverside Community & Economic Development Director issued a substantial conformance determination, which allows a third-party agency capable and willing to accept responsibility for all or a portion of Condition of Approval No. 75(c) to meet the intent and purpose of the Condition o f Approval. This Determination allows the City of Riverside to accept the responsibility should it choose to do so.
BACKGROUND (CONT’D)
RiversideCA.gov
8 The proposed draft Agreement would transfer the responsibility for “homeless encampments, vandalism and dumping” within a designated 12.34 acres Conservation Easement subject to the establishment of an $1,700,000 endowment to the City. The City’s responsibility would begin upon:
1. Successful establishment of the required habitat as determined by an approved biologist, after a minimum of 5-years per the Conditions of Approval
2. Transfer of the Conservation Easement parcels to the City per the Conditions of Approval
3. Satisfaction of all other applicable Conditions of Approval.
T h eC i t yc a nu s et h ee n d o w m e n tf u n d sf o rhomeless encampments, vandalism and dumping for the designated 12.23 acre conservation easement identified as portions of APNs 263-060-026, 263-060-022, 263-060-024, and the surrounding public areas.
DISCUSSION
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9 Strategic Priority 3 - Economic Opportunity
Goal 3.3 – Cultivate a business climate that welcomes
entrepreneurship and investment
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
RiversideCA.gov
10 That the City Council:
1. Approve the Agreement with KB Sycamore Hills I, LLC, a Delaware Limited Liability Company as to an undivided 50% interest, KB Sycamore Hills II, LLC, a Delaware Limited Liability Company as to an undivided 40% interest, and KB Sycamore Hills III, a Delaware Limited Liability Company as to an undivided 10% interest as tenants in common for the Sycamore Hills Project accepting responsibility for a portion of Condition of Approval no. 75.c., pertaining to “ homeless encampments, vandalism and dumping”, and accepting an endowment for that purpose in order to satisfy Condition of Approval 75.c in a designated 12.23 acre conservation easement identified as portions of APNs 263-060-026, 263- 060-022, 263-060-024, and the surrounding public areas;
RECOMMENDATIONS
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11 2. With at least five affirmative votes, a uthorize the Chief Financial Officer, or designee, to record an increase in revenue and appropriate $1,700,000 in the 721 Special Deposit Interest Bearing Account.
3. Authorize the City Manager or designee to execute the Agreement, including making minor and non-substantive changes.
RECOMMENDATIONS (CONT’D)
RiversideCA.gov
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City Council
September 5, 2023
Agreement with KB Sycamore Hills I, II,
and III, LLC – Transfer of responsibility and
acceptance of an endowment fund
City Manager’s Office
11 12
8/24/2023
7 RiversideCA.gov
13 EXISTING SITE PHOTOS
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6 1 5
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Riparian Area C
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