CHINO - City Council members approved to reimburse KB Homes Coastal, Inc. $2.2 million for park land acquisition and development costs.

The funds to the California Corporation for the construction of park land improvements in The Preserve is not to exceed the $2.2 million.

The money will come out of the city's unappropriated reserves of the Park Fund with a corresponding year-end transfer from the Preserve Park Fund.

The item - numbered 10 on the council agenda - was approved in a 4-0 vote with board member Eunice Ulloa absent at Feb. 5 meeting.

On Sept. 19, 2005, the Planning Commission approved Tentative Tract Map authorizing Brehm Communities to develop about 177 single-family homes in the Preserve, generally located west of West Preserve Loop Road, between Bickmore and Pine Avenues with the requirement to develop park land, according to the city's staff report.

In 2009, as part of the economic downturn, Brehm Communities filed for bankruptcy and the project was subsequently sold to KB Homes Coastal, Inc., Wildomar, CA. As part of the Brehm Communities property purchase, KB Homes Coastal, Inc. also assumed Brehm' s project Conditions of

Approval, including the development of the 4.95 acres of park land, according to the staff report.

Based on the price paid by KB Homes Coastal, Inc. to purchase the park land in the Preserve from Brehm Communities, and the estimated cost to construct the park, KB Homes Coastal, Inc. would be entitled to a reimbursement for park land acquisition and development costs.

The city has reviewed and approved the land acquisition documentation submitted by KB Homes, who will be responsible for submitting all construction cost documentation to the city for review and approval prior to any funds being released, according to the staff report.

The developer will also be required to provide documentation that KB Homes has entered into an agreement with the Preserve Master Maintenance Corporation for the maintenance of the park and all common landscape and utility maintenance in accordance with the project's Conditions of Approval, according to the staff report.

Both of these conditions must be met prior to the City releasing any of the reimbursement funds.

Read the whole action by clicking on "Item 11" on the City Council agenda.