HomeMy WebLinkAbout2025-11 CC Ordinance ORDINANCE NO. 2025-11
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TEMECULA APPROVING THE THIRD AMENDMENT
TO THE DEVELOPMENT AGREEMENT BETWEEN THE
CITY OF TEMECULA AND LENNAR HOMES, INC., A
CALIFORNIA CORPORATION AND WINCHESTER HILLS
I LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
AND MAKING A FINDING OF EXEMPTION UNDER THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT
(PLANNING APPLICATION NO. PA25-0016)
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS
FOLLOWS:
Section 1. Procedural Findings. The City Council of the City of Temecula does hereby
find, determine and declare that:
A. The City of Temecula("City"),a general law City in the State of California,Lennar
Homes, Inc., a California Corporation and Winchester Hills ILLC, a California limited liablity
company ("Winchester"), entered into an agreement entitled "Development Agreement By And
Between The City Of Temecula And Lennar Homes, Inc., A California Corporation And
Winchester Hills I LLC, A California Limited Liability Company" by the adoption of Ordinance
No. 01-08 (the "Development Agreement"). The Development Agreement was recorded on
January 16, 2002 as Document No. 2002-026470 in the Official Records of the County of
Riverside.
B. On October 23, 2007, the City Council of the City of Temecula approved that
certain agreement entitled "First Amendment to Development Agreement By And Between The
City Of Temecula And Lennar Homes, Inc., A California Corporation And Winchester Hills I
LLC, A California Limited Liability Company" by the adoption of Ordinance No. 07-14 ("First
Amendment"). The First Amendment was recorded on October 2, 2015 as Document No. 2015-
0437479 in the Official Records of the County of Riverside. The First Amendment extended the
term of the Development Agreement.
C. On January 10, 2023, the City Council of the City of Temecula approved that
certain agreement entitled"Second Amendment to Development Agreement By And Between The
City Of Temecula And Lennar Homes, Inc., A California Corporation And Winchester Hills I
LLC, A California Limited Liability Company" by the adoption of Ordinance No. 2022-14
("Second Amendment"). The Second Amendment was recorded on January 11,2023 as Document
No. 2023-0007919 in the Official Records of the County of Riverside. The Second Amendment
rescinded the First Amendment to the Development Agreement and reinstated the original term of
the Development Agreement for the Winchester Property located within portions of Planning Area
12 of the Harveston Specific Plan.
D. The real property which is subject to the Development Agreement and the First
Amendment is comprised of two components. The first is the Lennar Property described in the
Development Agreement("Lennar Property"). The second is the Winchester Hills I LLC Property
("Winchester Property").
E. The Lennar Property has been developed consistent with the Development
Agreement and the term of the Development Agreement as it pertains to the Lennar property has
expired.
F. On January 7, 2025 the applicant, Winchester Hills I LLC, a California Limited
Liability Company, filed Planning Application No. PA25-0016, a proposed Third Amendment to
the Development Agreement. Winchester Hills I LLC seeks to repeal the First Amendment and
reinstate the original term of the Development Agreement for the Winchester Property.
G. This application was filed in a manner in accord with the City of Temecula General
Plan and Development Code.
H. Government Code Section 65864 authorizes the City to enter into binding
development agreements with persons having legal or equitable interest in real property for the
development of such property in order to, among other matters: ensure high quality development
in accordance with comprehensive plans;provide certainty in the approval of development projects
so as to avoid the waste or resources and the escalation in the cost of housing and other
development to the consumer; provide assurance to the applicants for development projects that
they may proceed with their projects in accordance with existing policies, rules and regulations
and subject to Conditions of Approval, in order to strengthen the public planning process and
encourage private participation in comprehensive planning and reduce the private and public
economic costs of development and provide for economic assistance to Owner for the entitlements
authorizing development related improvements.
I. On May 21, 2025, the Planning Commission of the City of Temecula held a duly
noticed public hearing on the proposed Third Amendment to the Development Agreement("Third
Amendment") as prescribed by law at which time all persons interested in the proposed Third
Amendment had the opportunity and did address the Planning Commission on this matter.
J. Following consideration of the entire record of information received at the public
hearing,the Planning Commission adopted Resolution No. 2025-19, "A RESOLUTION OF THE
PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE
CITY COUNCIL ADOPT AN ORDINANCE ENTITLED AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF TEMECULA APPROVING THE THIRD AMENDMENT TO
THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF TEMCULA AND LENNAR
HOMES, INC., A CALIFORNIA CORPORATION AND WINCHESTER HILLS I LLC, A
CALIFORNIA LIMITED LIABILITY COMPANY (PLANNING APPLICATION NO. PA25-
0016)."
K. On July 8, 2025, the City Council considered the Application at a duly noticed
public hearing which time the City staff presented its report, and all interested persons had an
opportunity to and did testify either in support or in opposition to the Project.
L. All legal preconditions to the adoption of this Ordinance have occurred.
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Section 2. Legislative Findings. The City Council in approving the Third Amendment
to theDevelopment Agreeemnt hereby makes the following findings:
A. The City has reviewed the potential impacts of the Third Amendment and the
various potential benefits to the City of the Third Amendment and has concluded that the Third
Amendment is in the best interests of the City.
B. The Third Amendment is consistent with the City's General Plan including the
goals and objectives thereof and each element thereof.
Section 3. CEQA. This Ordinance, which approves the Third Amendment, is exempt
from CEQA review pursuant to CEQA Guidelines Sectiorh 15061(b)(3)because it can be seen with
certainty that there is no possibility that the adoption of the Ordinance may have a significant effect
on the environment. The adoption of the Ordinance will repeal the First Amendment which
extended the term of the Development Agreement. As the term of the Development Agreement is
being shortened by the adoption of the Ordinance,this is covered by the common sense exemption
under CEQA.
Section 4. Approval of Third Amendment to Development Agreement. The City
Council of the City of Temecula hereby approves that certain Third Amendment and authorizes
the Mayor to execute the Third Amendment in substantially the form attached hereto as Exhibit
«A»
Section 5. Authority of the City Manager. The City Manager (or his designee), is
hereby authorized, on behalf of the City,to take all actions necessary and appropriate to carry out
and implement the Third Amendment and to administer the City's obligations,responsibilities and
duties to be performed under the Third Amendment.
Section 6. Severability. If any portion, provision, section, paragraph, sentence, or
word of this Ordinance is rendered or declared to be invalid by any final court action in a court of
competent jurisdiction, or by reason of any preemptive legislation, the remaining portions,
provisions, sections,paragraphs, sentences, and words of this Ordinance shall remain in full force
and effect and shall be interpreted by the court so as to give effect to such remaining portions of
the Ordinance.
Section 7. Effective Date. This Ordinance shall take effect thirty (30) days after its
adoption.
Section 8. Notice of Adoption. The City Clerk shall certify to the adoption of this
Ordinance and cause it to be published in the manner required by law.
I
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula
this 22nd day of July, 2025.
Brenden Kalfus, Mayor
ATTEST:
......42.. ...,
Randi Johl, City Clerk
[SEAL]
I
I
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing
Ordinance No. 2025-11 was duly introduced and placed upon its first reading at a meeting of the
City Council of the City of Temecula on the 8th day of July, 2025, and that thereafter, said
Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held
on the 22nd day of July, 2025 by the following vote:
AYES: 5 COUNCIL MEMBERS: Alexander, Kalfus, Rahn, Schwank,
Stewart
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
----c3
Randi Johl, City Clerk
I
RECORDING REQUESTED
BY AND WHEN RECORDED
MAIL TO:
City of Temecula
41000 Main Street
Temecula, CA 92590
Attn: Randi Johl,JD, MMC
City Clerk
Exempt from recording fees pursuant to Govt.Code Section 27383
(Space above for recorder's use)
THIRD AMENDMENT TO DEVELOPMENT AGREEMENT
BY AND BETWEEN THE CITY OF TEMECULA AND
LENNAR HOMES,INC.,A CALIFORNIA CORPORATION
AND WINCHESTER HILLS I LLC,A CALIFORNIA
LIMITED LIABILITY COMPANY
This Third Amendment to Development Agreement is made and entered into as of
, 2025, by and between the CITY OF TEMECULA, a California municipal
corporation("City"); HARVESTON-SAB SOUTH LLC, a California limited liability company,
a successor in interest to HARVESTON-SAB LLC, a California limited liability company
("Harveston") successor in interest to Winchester Hills 1 LLC, a California limited liability
company; and MERITAGE HOMES OF CALIFORNIA, INC., a California corporation
("Meritage")pursuant to the authority of Section 65864 through 65869.5 of the California
Government Code and Article XI, Section 2 of the California Constitution. Pursuant to said
authority and in consideration of the mutual covenants set forth in this Second Amendment, the
parties hereto agree as follows:
1. Recitals. This Third Amendment is made with respect to the following purposes
and facts which the parties agree to be true and correct:
A. On August 28, 2001,the City Council of the City of Temecula approved that
certain agreement entitled"Development Agreement By And Between The City Of Temecula
And Lennar Homes, Inc., A California Corporation And Winchester Hills I LLC, A California
Limited Liability Company"by the adoption of Ordinance No. 01-08 (the "Development
Agreement"). The Development Agreement was recorded on January 16, 2002 as Document No.
2002-026470 in the Official Records of the County of Riverside.
Page 1 of 8
B. On October 23, 2007,the City Council of the City of Temecula approved that
certain agreement entitled"First Amendment to Development Agreement By And Between The
City Of Temecula And Lennar Homes, Inc., A California Corporation And Winchester Hills I
LLC,A California Limited Liability Company"by the adoption of Ordinance No. 07-14 ("First
Amendment"). The First Amendment was recorded on October 2, 2015 as Document No. 2015-
0437479 in the Official Records of the County of Riverside. On January 10, 2023, the City
Council of the City of Temecula approved that certain agreement entitled"Second Amendment
to Development Agreement By And Between The City of Temecula and Lennar Homes, Inc., A
California Corporation And Winchester Hills I LLC, A California Limited Liability Company"
by adoption of Ordinance No. 2022-14 ("Second Amendment"). The Second Amendment was
recorded on January 11, 2023 as Document No. 2023-0007919 in the Official Records of the
County of Riverside.
C. The real property which is subject to the Development Agreement and the First
Amendment and Second Amendment is comprised of two components. The first is the Lennar
Property described in the Development Agreement("Lennar Property"). The second is the
Winchester Hills I LLC Property which was specifically described in Exhibit A to the First
Amendment("Winchester Property").
D. The Lennar Property has been developed consistent with the Development
Agreement, so the term of the Development Agreement as it pertains to the Lennar Property has
expired.
•
E. Winchester Hills I LLC's interest in the Winchester Property and in the
Development Agreement(as amended by the First Amendment)was transferred to Harveston in
2012. The northerly portion of the Winchester Property acquired by Harveston was transferred
to Harveston North in 2015 and the southerly portion was transferred to Harveston South in
2016. Harveston South has requested to repeal the First Amendment which extended the term of
the Development Agreement and to reinstate the original term of the Development Agreement
for the remaining portion of the Winchester Property.
F. Meritage, a"Merchant Builder"under the Development Agreement owns the
portion of the Winchester Property specifically described and depicted on Exhibit"A"hereto.
Harveston South does not currently own any portion of the Winchester Property but is a party to
this Third Amendment to confirm its personal rights under the Development Agreement,
including but not limited to its rights to fee credits pursuant to Section 4.8 of the Development
Agreement. The property listed in this paragraph and described in the Exhibit is referred to
herein as the"Last Winchester Property."
G. Harveston South warrants and represents to the City that the Meritage entity is the
only person that owns the Last Winchester Property and that no other persons are required to
consent to or approve this Third Amendment.
H. The Planning Commission of the City of Temecula held a duly noticed public
hearing on , 2025 and by Resolution No. 25- recommended
to the City Council that this Third Amendment be approved.
Page 2 of 8
I. On , 2025, the City Council of the City of Temecula held a
duly noticed public hearing on the proposed Third Amendment and the CEQA documentation at
which time all persons had the opportunity to testify in support of or opposition to the proposed
Third Amendment.
J. On , 2025 the City Council of the City of Temecula
adopted Ordinance No. 25- approving this Third Amendment.
2. Repeal of First Amendment. The First Amendment is hereby repealed and is of no
further force and effect as to the Last Winchester Property.
3. Authority to Enter Into Third Amendment. The entities in Recital F above each warrant
and represent to the City that its approval of this Third Amendment will not violate any
agreements they may have with other persons. The person or persons executing this Third
Amendment on behalf of said entities each further warrant and represent to the City that this
Third Amendment has been duly approved by each and that all applicable notices, approvals and
procedures were complied with and that he or she is duly authorized by his/her principal to
execute this Third Amendment on behalf of that entity and has been duly authorized to do so.
4. Other Terms Remain. Except as specifically set forth herein, all other terms and
conditions of the Development Agreement shall remain in full force and effect as to the Last
Winchester Property.
IN WITNESS WHEREOF,the parties hereto have executed this Agreement as provided herein.
CITY OF TEMECULA,
a municipal corporation
Brenden Kalfus
Mayor
Attest:
Randi Johl, JD, MMC
City Clerk
Page 3 of 8
Approved As to Form:
Peter M. Thorson
City Attorney
HARVESTON-SAB SOUTH LLC,
a California limited liability company
Stephen A. Bieri
President
MERITAGE HOMES OF CALIFORNIA, INC.,
a California corporation
Name:
Title:
Page 4 of 8
A Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of )
On , before me,
(insert name and title of the officer)
Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
Page 5 of 8
Notary Public or other officer completing this certificate verifies only the identity of the
individual who signed the document to which this certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California )
County of )
On , before me, ,
(insert name and title of the officer)
Notary Public,personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
I
I
Page 6 of 8
111 EXHIBIT"A"
Meritage Property
LEGAL DESCRIPTION
Real property In the City of Temecula, County of Riverside,State of California,described as follows:
PARCEL 1:(APN:916-400-051,916-400-052 AND 916-400-053)
PARCELS 15, 16 AND 17,AS SHOWN ON THE MAP ENTITLED"PARCEL MAP NO.36336",FILED AUGUST
20, 2015,IN BOOK 239 OF PARCEL MAPS,AT PAGES 33 THROUGH 39,INCLUSIVE,RIVERSIDE COUNTY
RECORDS.
PARCEL II: (APN: 916-400-067,916-400-063,AND A PORTION OF 916-400-066)
PARCEL B AS SHOWN ON LOT LINE ADJUSTMENT NO.LD21-0023,AS EVIDENCED BY DOCUMENT
RECORDED JUNE 10, 2021 AS INSTRUMENT NO. 2021.0351963 OF OFFICIAL RECORDS,
Page 7 of 8
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