Item Number: 19
City Council / Board of Directors
Written Communications
Meeting of: August 19, 2025
Submitted By:
Fredy Bonilla, City Engineer
Subject:
Development Impact Fee Credit Agreement for Regional Drainage Fees by and between Victorville 142 LP and the City of Victorville
Recommendation:
That the Honorable City Council:
(1) Approve the attached Development Impact Fee Credit Agreement for Regional Drainage Fees between Victorville 142 LP and the City of Victorville; and (2) Authorize the City Manager and City Attorney to make non-substantive changes and clarifications, if needed, to the Development Impact Fee Credit Agreement.
Fiscal Impact:
This action will result in an estimated fiscal impact that would range from $159,489.15 to $195,599.26. The approval of this agreement will provide a credit of $2,018.85 to $2,475.94 per residential lot against the Regional Drainage Development Impact Fees (DIF). The Drainage DIF is due at the time of occupancy of the individual residential parcels that are currently being developed by Victorville 142 LP. The DIF account is shown in the table below.
Account Description Account Code
Storm Drain DIF Revenue 3570010-44500
As explained in the Background and Discussion Sections of this report, the City’s Implementation Plan for residential development will increase DIFs on January 1, 2026, and since DIFs are due at occupancy, the final credit amount will depend on the DIFs due at occupancy.
Strategic Plan Goal:
This item aligns with “Goal E Invest in Infrastructure” in the City of Victorville Strategic Plan 2023-2026. This DIF credit agreement will assist Victorville 142 LP in offsetting the 4 2
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construction of a 60" master planned storm drain on Mojave Drive between Onyx Road and Topaz Road.
Background:
On June 7, 2022, the City Council approved Resolution No. 22-050, which adopted Nexus Studies for various DIF and Capacity Charges, established fees associated with each respective DIF/Capacity Charge category, a Capital Improvement Plan, and Council Policy CP-22-01, which included a Phased Fee Implementation plan for residential development (collectively as amended, the “DIF Program”). The City is currently in Year 3 of the 4-year phasing plan and the current Regional Drainage Fee is $2,018.85 per lot.
Please note that on January 1, 2026, the Regional Drainage DIF will increase to $2,475.94 per lot.
Council Policy CP-22-01, which has since been rescinded and replaced first by CP-23- 02, and most recently by CP-24-05 (Attachment D), also outlines the criteria for receiving DIF Credits for public improvements a developer installs as part of its project. CP-24-05 requires a developer to submit a letter requesting a credit, followed by an internal staff review of the request, and finally Council’s approval of a Development Impact Fee Credit Agreement (DIF Credit Agreement). Furthermore, CP-24-05, Section VII, Subsection C outlines the circumstances in which a developer may receive credit for Drainage Improvements. On July 7, 2025, Victorville 142 LP submitted a letter formally requesting DIF Credits (Attachment C).
Please note: Although Policy No. CP-24-05 is the Council Policy currently in effect, the provisions of prior Policy No. CP-23-02, which was in effect when the Developer acquired the Property that govern certain aspects of the attached DIF Credit Agreement.
Tract Map No. 16894 is a residential subdivision of 142 single-family lots, located at the southwest corner of Mojave Drive and Topaz Road (Attachment A). On December 27, 2017, Mojave Onyx Development Company (Mojave Onyx), a California limited liability company, as the property owner recorded Phase 1 of the map after providing a Subdivision Improvement Agreement (SIA) secured by a lien agreement as security for the required public improvements. On April 21, 2021, Mojave Onyx, as the property owner recorded Phase 2 of the map after providing a SIA secured by a lien agreement as security for the required public improvements. When Phase 2 recorded, the Phase 1 SIA and lien agreement were released, and both tracts were placed under one new SIA and lien agreement. Mojave Onyx did not construct any improvements, and all 142 residential lots remain vacant land.
On September 12, 2024, Victorville 142 LP, a California limited partnership also known as Legacy Homes, acquired the tract from Mojave Onyx and is the current owner of all 142 undeveloped lots in Tract 16894.
On May 20, 2025, the City Council approved a security substitution for Tract No. 16894 with Legacy Homes. In summary, the City Council approved a SIA with improvements bonds as security for Tract No. 16894-1 and a separate SIA with a lien agreement as 4 2
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security for Tract No. 16894-2. On June 17, 2025, the Engineering Department issued a permit to Legacy Homes for the development of Tract No. 16894-1. Legacy Homes is ready to begin the off-site improvements on the south side of Mojave Drive, which include the construction of a 60-inch master planned storm drain, the construction of an additional travel lane for eastbound traffic, curb & gutter, sidewalk, and landscaping and irrigation (LMAD) improvements from Onyx Road to Topaz Road.
Discussion:
Legacy Homes is now ready to begin the off-site improvements on the south side of Mojave Drive which include a master planned storm drain (Line E-07-01) from Onyx Road to Topaz Road. Since Mojave Drive is part of their marketing corridor, and model homes will be constructed along Onyx Road, just south of Mojave Drive, Legacy Homes has submitted a request to receive Drainage DIF credits for the regional drainage improvements that they will be installing.
Of the required and abovementioned public improvements, on the southside of Mojave Drive, only the master planned storm drain is eligible for DIF Credits. The cost of the storm drain is approximately $837,000 and each residential unit (79 total in Phase 1) is eligible for a $2,018.85 credit against the Regional Drainage DIF, so in total Legacy Homes would receive a credit in the amount of $159,489.15 which is approximately 19% of the total construction cost. If the individual homes are occupied after January 1, 2026, the Regional Drainage DIF will increase to $2,475.94 per lot and the total credit will increase to $195,599.26 which is approximately 23% of the total construction cost.
Once the construction is complete, Legacy Homes will be required to submit the following to the City Engineer:
(1) Supporting documentation for the actual cost of the work. (2) General contractor and sub-contractor names and license numbers. (3) Signed contracts and lien releases for all contractors and subcontractors associated with the work.
(4) Certified payroll substantiating that State prevailing wages were paid.
This is the second DIF Credit Agreement that has been requested since the City updated its DIF Program and the policy relative to DIF credits in June of 2022. The first DIF Credit Agreement was approved by the City Council in December 2024 for the Good Year project at SCLA that was completed earlier this year.
Staff recommends that the Honorable City Council approve the attached DIF Credit Agreement for Regional Drainage Fees between Victorville 142 LP and the City of Victorville and authorize the City Manager and City Attorney to make non-substantive and/or clarifying changes to said DIF Credit Agreement, if needed.
Staff is available for any questions Council may have.
Prepared By:
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Jean Kim, Assistant Engineer II
Attachments: A. Vicinity Map
B. Victorville 142 LP DIF Credit Agreement
C. Victorville 142 LP Letter Requesting DIF Credits
D. City Council Policy CP-24-05