Chino council approves $553,019 reimbursement to Lennar for University Park public improvements
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Summary
At its Sept. 16 meeting the Chino City Council approved a construction credit reimbursement agreement with Lennar Homes of California for Tract Map No. 18972 (University Park) totaling $553,019.16 under the city's Development Impact Fee (DIF) program.
The Chino City Council approved a construction credit reimbursement agreement on Sept. 16 that will pay Lennar Homes of California $553,019.16 for DIF-eligible public improvements built as part of Tract Map No. 18972, known as University Park.
City contracts and DIF administrator Sylvia Ramos told the council the reimbursement reflects a reconciliation of developer costs, DIF credits and the city's nexus study estimates. "Therefore, the staff's recommendation to the city council to approve the construction credit reimbursement agreement with Lennar in the amount of $553,019.16 and authorize the necessary appropriations to facilitate the reimbursement in accordance with the terms outlined in the agreement and the city's DIF program," Ramos said.
The work associated with the tract includes intersection and signal work and a 16-inch waterline on Euclid Avenue. Ramos told the council the city accepted the required public improvements as complete on Nov. 15, 2022, and the developer submitted documentation of actual construction costs that city staff and consultants verified. Under the city's DIF ordinance, a developer that finances a DIF-eligible facility is entitled to DIF credits; the city capped credit value at the estimate included in the city's nexus (DIF) study.
Ramos outlined three DIF-eligible improvements related to the tract: the traffic signal at Euclid and Eucalyptus, the signal and intersection improvements at Euclid and Edison, and a 16-inch waterline in Euclid Avenue. The Fern and Eucalyptus signal was constructed under the city's capital improvement program (CIP); Lennar made a cash deposit negotiated as part of a 2024 settlement agreement and Ramos said that deposit covered the developer's portion of the signal cost.
Councilperson Flores moved to approve the agreement; Councilperson Lucio seconded. The motion passed by the council.
Staff told the council the reimbursement will be authorized in accordance with the DIF program and that the agreement formalizes the credits and cash reimbursement due to the developer. The staff presentation said the reimbursement is the result of a detailed reconciliation of DIF-eligible public facilities and actual costs.
The council did not attach additional conditions to the agreement; city staff will process the appropriation and payment consistent with the terms described in the agreement.