TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Jarrett Ramaiya, Deputy Development Director
SUBJECT:
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Periodic Review of Development Agreement No. DA-2018-1631 (Ord. No. 569-01) Between the City of Murrieta and Pulte/BP Murrieta Hills, LLC
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ABSTRACT
The City entered into Development Agreement 2018-1631 (DA) for the development of the Murrieta Hills Specific Plan area. This report summarizes the property owner’s progress to date in implementing the specific plan relative to the DA.
RECOMMENDATION
recommendation
Receive and file an annual report for the Development Agreement; and
Find and determine that the Owner of the Murrieta Hills Specific Plan area is complying in Good Faith with the terms and conditions of the Development Agreement for the 12-month Period of January 2025 to January 2026.
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PRIOR ACTION/VOTE
On November 16, 2021, the City Council approved a DA between the City of Murrieta and Pulte/BP Murrieta Hills LLC (Applicant).
STRATEGIC ALIGNMENT
The City Council’s goal of maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency is associated with this administrative priority.
DISCUSSION
The City of Murrieta (City) is authorized by state law and the Murrieta Municipal Code to enter into Development Agreements (DA). Development Agreements provide certainty to applicants and public agencies, especially for projects with long build-out periods due to their size and/or complexity. Included in the Development Agreement process is a requirement for an annual report to document a project’s progress in meeting the objectives of the approved agreement.
Summary
In 2021, the City entered into a DA with the Applicant for the Murrieta Hills Specific Plan Amendment (Project) by adopting Ordinance No. 569-21. The City Council approved the Project to permit and construct 750 dwellings (522 single-family lots/228 multi-family units), 13 acres for mixed-use, 18 acres for commercial use, and a five (5) acre public park on 972 acres. The effective date of the DA was January 6, 2022, and it expires in 2042.
Background
The major DA deal points are as follows:
• Initial Term of 10 years; plus, two (2) automatic time extensions of five (5) years each.
• Developer to dedicate right-of-way for Keller Road/I-215 Interchange Project (approx. 4.2 acres).
• Allowance for change in the number of lots (increase or decrease of up to 10%) for a maximum of 750 units.
• Time extensions for the Tentative Tract Map shall be approved to the maximum allowed as per the Subdivision Map Act. A two-year extension was recently granted.
• DIF Fees are per the Vesting Date (“earliest date upon which any application for any Existing Development Approval was deemed complete”).
• No requirement for affordable housing units.
• City to cooperate with the Regional Conservation Authority (RCA) regarding MSHCP fee/credit.
• City to expedite review of Tentative Map, Final Map, Development Plans, building permits, and inspections.
• City to consider exercising eminent domain for off-site McElwain Road right-of-way, if necessary.
• City to cooperate with Eastern Municipal Water District to implement a Community Facilities District (CFD).
• Developer to form Community Facilities District (CFD) for fire protection services (e.g., CalFire).
Summary of Improvements Completed to Date
The Applicant has been focusing on submittal and review for its mass grading permit and street improvement plan, both of which are in process. No physical improvements have been constructed to date. However, staff is working with the Applicant on condition satisfaction.
Attachment 1 lists all the activities the Owner believes demonstrate its good-faith compliance with the Development Agreement. The information submitted by the Owner provides the City Council with sufficient information to determine whether the Owner has complied with the terms and conditions of the Development Agreement for this period. A copy of the DA is on file with the City Clerk’s Department.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
This action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly.
FISCAL IMPACT
There is no fiscal impact associated with this report. Pursuant to the City’s Development Code the Applicant has deposited funds with the City to cover the cost of this review.
ATTACHMENTS
ATT 1 - Murrieta Hills DA Compliance Matrix 2025-2026 Reporting Year