Loading...
HomeMy WebLinkAbout2022-14 CC OrdinanceORDINANCE NO.2022-14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE SECOND 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. PA21-0128) 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 I LLC, 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. 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"). D. 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. E. On January 26, 2021 the applicant, Winchester Hills I LLC, a California Limited Liability Company, filed Planning Application No. 21-0128, a proposed Second 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. F. This application was filed in a manner in accord with the City of Temecula General Plan and Development Code. G. 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. H. On November 16, 2022, the Planning Commission of the City of Temecula held a duly noticed public hearing on the proposed Second Amendment to the Development Agreement ("Second Amendment") as prescribed by law at which time all persons interested in the proposed Second Amendment had the opportunity and did address the Planning Commission on this matter. I. Following consideration of the entire record of information received at the public hearing, the Planning Commission adopted Resolution No. 2022-35, entitled, "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 SECOND 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 (PLANNING APPLICATION NO. PA21-0128)". J. On December 13, 2022, 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. K. All legal preconditions to the adoption of this Resolution have occurred. Section 2. Legislative Findings. The City Council in approving the Application hereby makes the following findings: A. The City has reviewed the potential impacts of the Second Amendment to the Development Agreement and the various potential benefits to the City of the Second Amendment and has concluded that the Second Amendment is in the best interests of the City. B. The Second Amendment to the Development Agreement 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 Second Amendment to the Development Agreement, is exempt from CEQA review pursuant to CEQA Guidelines Section 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 Second Amendment to Development Agreement. The City Council of the City of Temecula hereby approves that certain Second Amendment to Development and authorizes the Mayor to execute the Second Amendment to Development Agreement in substantially the form attached hereto as Exhibit "A". Section 5. Authority of the Cily 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 Second Amendment and to administer the City's obligations, responsibilities and duties to be performed under the Second 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. 1 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 10'' day of January, 2023. ATTEST: Randi o , City Clerk [SEAL] 1 77 L Zak Schwank, Mayor '-1 1 1 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. 2022-14 was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 13t" day of December, 2022, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 10t' day of January, 2023 by the following vote: AYES: 5 COUNCIL MEMBERS: NOES: 0 COUNCIL MEMBERS ABSTAIN: 0 COUNCIL MEMBERS ABSENT: 0 COUNCIL MEMBERS: Alexander, Brown, Kalf is, Schwank, Stewart None None None Randi Johl, City Clerk 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) 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 This Second Amendment to Development Agreement is made and entered into as of January 10, 2023, by and between the CITY OF TEMECULA, a California municipal corporation ("City"); HARVESTON-SAB NORTH LLC, a California limited liability company ("Harveston North") and HARVESTON-SAB SOUTH LLC, a California limited liability company, successors in interest to HARVESTON-SAB LLC, a California limited liability company ("Harveston) successor in interest to Winchester Hills I LLC, a California limited liability company; and MERITAGE HOMES OF CALIFORNIA, INC., a California corporation ("Meritage"), HOEHN ENTERPRISE 5 TEMECULA LLC, a California limited liability company ("Hoehn 5"), SOLANA WINCHESTER LLC, a Delaware limited liability company ("Solana"), LANTERN CREST AT TEMECULA, LLC, a California limited liability company ("Lantern Crest"), and ADVANTAGED ASSET ACQUISITIONS 1, LLC, a California limited liability company ("Advantaged") 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 Second Amendment is made with respect to the following purposes and facts which the parties agree to be true and correct: Page 1 of 25 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. 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. C. 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 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 North sold a portion of the Winchester Property to Hoehn Enterprise 4 Temecula LLC (the "Hoehn 4 Property") in 2016. The Hoehn 4 Property has been developed as an automobile dealership consistent with the Development Agreement, so the term of the Development Agreement as it pertains to the Hoehn 4 Property has expired. Harveston North and Harveston South have 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 portions of the Winchester Property. F. Harveston North has sold portions of the Winchester Property to: i.) Meritage, a "Merchant Builder" under the Development Agreement, and to ii.) Hoehn 5 and iii.) Solana, both of which are "Subsequent Owners" under the Development Agreement. Harveston South has sold portions of the Winchester Property to: iv.) Lantern Crest, and v.) Advantaged, all of which are "Subsequent Owners" under the Development Agreement. Neither Harveston North nor Harveston South currently own any portion of the Winchester Property but are parties to this Second Amendment to confirm their personal rights under the Development Agreement, including but not limited to their rights to fee credits pursuant to Section 4.8 of the Development Agreement. The portion of the Winchester Property that is owned by Meritage (the "Meritage Property") is specifically described and depicted on Exhibit "A" hereto. The portion of the Winchester Property that is owned by Hoehn 5 (the "Hoehn 5 Property") is specifically described Page 2 of 25 1 and depicted on Exhibit `B" hereto. The portion of the Winchester Property that is owned by Solana (the "Solana Property") is specifically described and depicted on Exhibit "C" hereto. The portion of the Winchester Property that is owned by Lantern Crest (the "Lantern Crest Property") is specifically described and depicted on Exhibit "D" hereto. The portion of the Winchester Property that is owned by Advantaged ("the Advantaged Property") is specifically described and depicted on Exhibit "E" hereto. The properties listed in this paragraph and described in the Exhibits are collectively referred to herein as the "Remaining Winchester Properties." G. Harveston North and Harveston South each warrant and represent to the City that these five entities are the only persons that own the Remaining Winchester Properties and that no other persons are required to consent to or approve this Second Amendment. H. The Planning Commission of the City of Temecula held a duly noticed public hearing on November 16, 2022 and by Resolution No. 2022-35 recommended to the City Council that this Second Amendment be approved. I. On December 13, 2022, the City Council of the City of Temecula held a duly noticed public hearing on the proposed Second Amendment and the CEQA documentation at which time all persons had the opportunity to testify in support of or opposition to the proposed Second Amendment. J. On January 10, 2023 the City Council of the City of Temecula adopted Ordinance No. 2022-14 approving this Second Amendment. 2. Repeal of First Amendment. The First Amendment is hereby repealed and is of no further force and effect as to the Remaining Winchester Properties. 3. Authority to Enter Into Second Amendment. The entities in Recital F above each warrant and represent to the City that its approval of this Second Amendment will not violate any agreements they may have with other persons. The person or persons executing this Second Amendment on behalf of said entities each further warrant and represent to the City that this Second 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 Second 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 Remaining Winchester Properties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as provided herein. Page 3 of 25 CITY OF TEMECULA, a municipal corporation Matt Rahn Mayor Attest: Randi Johl, JD, MMC City Clerk Approved As to Form: Peter M. Thorson City Attorney HARVESTON-SAB NORTH LLC, a California limited liability company Stephen A. Bieri President HARVESTON-SAB SOUTH LLC, a California limited liability company Stephen A. Bieri President Page 4 of 25 C MERITAGE HOMES OF CALIFORNIA, INC., a California corporation Name: Title: HOEHN ENTERPRISE 5 TEMECULA LLC, a California limited liability company Name: Title: SOLANA WINCHESTER LLC, a Delaware limited liability company By: KR Temecula Ventures LLC a Delaware limited liability company, its Manager By: RP Solana Winchester Investors LLC a Delaware limited liability company, its Manager By: ReyLenn Properties LLC, a California limited liability company, its Manager LIN LIM Eric B. Shwisberg, its Manager Louis Kuntz, its Manager By: Winchester MF, LLC an Arizona limited liability company, its Manager By: Kitchell Development Company, an Arizona corporation, its Manager By: _ Name: Title: Page 5 of 25 1 I LANTERN CREST AT TEMECULA, LLC, Name: Title: ADVANTAGED ASSET ACQUISITIONS 1, LLC, a California limited liability company Name: Michael A. Grant Title: President Page 6 of 25 1 1 1 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 7 of 25 1 I 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 8 of 25 1 1 1 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 9 of 25 1 1 1 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 10 of 25 1 1 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 11 of 25 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 r 1 (Seal) Page 12 of 25 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 Arizona 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 Arizona that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 1 (Seal) Page 13 of 25 1 1 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 14 of 25 1 n 1 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 15 of 25 1 EXHIBIT "A" Meritage Property LEGAL DESCRIPTION Page 16 of 25 1 1 EXHIBIT "A" Meritage Property DEPICTION Page 17 of 25 F-j 1 EXHIBIT `B" Hoehn 5 Property LEGAL DESCRIPTION Page 18 of 25 C EXHIBIT `B" Hoehn 5 Property DEPICTION Page 19 of 25 1 1 EXHIBIT "C" Solana Property LEGAL DESCRIPTION Page 20 of 25 1 1 EXHIBIT "C" Solana Property DEPICTION Page 21 of 25 1 1 EXHIBIT "D" Lantern Crest Property LEGAL DESCRIPTION Page 22 of 25 1 EXHIBIT "D" Lantern Crest Property DEPICTION Page 23 of 25 1 1 EXHIBIT "E" Advantaged Property LEGAL DESCRIPTION Page 24 of 25 1 EXHIBIT "E" Advantaged Property DEPICTION Page 25 of 25