November 18, 2025
TO: City Council
REQUESTED BY: Travis Randel, Deputy City Manager, Development Services APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Release of Security Deposit for Indemnification Agreement of Tract 28224 (Maravilla)
RECOMMENDATION:
Staff recommends that the City Council authorize the Finance Department to release the $100,000 security deposit provided by SanJac 55, LLC under the Secured Agreement to Indemnify and Hold Harmless (approved July 15, 2025) for Tract 28224.
BACKGROUND:
On July 15, 2025, the City Council approved the updated Secured Agreement to Indemnify and Hold Harmless and Fee Reimbursement Agreement between the City of San Jacinto and SanJac 55, LLC related to the Maravilla residential subdivision (Vesting Tentative Tract Map No. 28224).
Under Section 3 of the Indemnification Agreement, SanJac 55, LLC was required to provide a $100,000 security, in the form of a bond, letter of credit, or other form acceptable to the City Attorney, to protect the City against potential litigation costs or claims arising from the approval or recordation of the Final Map. The agreement specifies that if no claims are raised, the City shall release the Indemnity Security on or before the date that is 120 days following the successful recordation of the Final Map.
SanJac 55, LLC satisfied this requirement by posting a $100,000 cash security deposit with the City on July 15, 2025.
DISCUSSION:
The Final Map for Tract 28224 was recorded on July 30, 2025. Based on the terms of the agreement, the 120-day release period concludes on November 27, 2025.
As of this report, the City has not received any litigation notices, CEQA challenges, or other claims related to the approval, recordation, or implementation of the Final Map. Therefore, the conditions for release of the Indemnity Security have been met.
The Indemnification Agreement remains valid and enforceable, continuing to protect the City against any future claims related to the project. However, the specific $100,000 security deposit, intended solely to ensure the City’s ability to respond to potential near-term legal challenges, is no longer required.
ENVIRONMENTAL REVIEW:
This action is not a project under the California Environmental Quality Act (CEQA) as defined in CEQA Guidelines Section 15378(b)(5). It constitutes an administrative action that has no potential to result in a direct or reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT:
There is no fiscal impact to the City’s General Fund. The $100,000 deposit was held in trust by the City and will now be returned to SanJac 55, LLC. No City funds were expended.
ATTACHMENTS:
Secured Agreement to Indemnify and Hold Harmless