Agenda Item Wording:
title
Reimbursement agreement amendment - Authorize the City Manager to approve the amendment to the reimbursement agreement for the River Run Ranch Phases 8, 9 & 10 subdivision.
body
Agenda Date: 11/16/2026
Prepared by:
Jason Huckleberry, Director of Eng & Building Dept, jason.huckleberry@visalia.gov, (59)713-4495
Department Recommendation:
Staff recommends authorizing the City Manager to execute the amendment to the existing reimbursement agreement for right-of-way dedications associated with the River Run Ranch Phase 8, 9 & 10 subdivision.
Summary:
The developer of the River Run Ranch Phase 8, 9 & 10 residential subdivision, Century Communities of CA LLC, has requested an amendment to the existing reimbursement agreement for roadway dedications. The requested amendment will transfer a portion of the reimbursement to another entity and provide for cash reimbursement of the transferred amount rather than fee credits as originally stated within the reimbursement agreement.
Background Discussion:
The developer of River Run Ranch Phase 8, 9 & 10, Century Communities of CA, LLC, entered into a development reimbursement agreement with the City of Visalia for right of way dedications consistent with the transportation impact fee program. The reimbursement agreement specified that reimbursement would exclusively be provided in the form of transportation impact fee credits for permits issued within the development.
Based upon prior commitments to the previous landowner, the developer now wishes to transfer a portion of the fee credits from the reimbursement agreement to the previous landowner, Quest Equity, LLC. Additionally, because the previous landowner will not be engaged in building homes in the development, fee credits will not be able to satisfy the reimbursement obligation and the proposed amendment to the reimbursement agreement will allow for cash reimbursement to Quest Equity LLC.
The original reimbursement agreement was for a total fee credit of $291,323.04. The transfer amount being requested to Quest Equity LLC is $250,823.04. Fee credits in the amount of $77,170 have already been issued to permits within the development phase, leaving a total reimbursement balance of $214,153.04 to be paid in cash based upon the amendment to the agreement. The amendment will state the transfer of $250,823.04 less any fee credits already issued to the developer.
Section 6 of the existing reimbursement agreement, titled “Transfer of Reimbursement Rights” states that rights to the reimbursement may be transferred to other owners, builders, or develops with written consent of the City. Section 6 also states the transfer shall be the developer and City with an executed copy on file with the City.
Fiscal impact including annual maintenance and operating costs:
The River Run Ranch Phase 8, 9 & 10 residential development consists of 68 lots. At present, the transportation impact fee per lot is $7,717 equating to a total of $524,756 to be collected as part of this phase of development.
Prior Council Action:
June 15, 2026 - Council approved the recording of the final map and the reimbursement agreement for the River Run Ranch Phase 8, 9 & 10.
Alternatives:
Deny the transfer of reimbursement rights.
Recommended Motion (and alternative motions if expected):
recommendation
I move to approve the City Manager to execute the amendment to the reimbursement agreement for the River Run Ranch Phase 8, 9 & 10 subdivision.
Environmental Assessment Status:
Complete
California Environmental Quality Act (CEQA) Review:
An Initial Study and Negative Declaration 2022-36 were prepared for the project
Deadline for Action: 11/16/2026
Attachments:
1. Amendment to Reimbursement Agreement
2. River Run Ranch Ph 8, 9 & 10 Executed Reimbursement Agreement
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Select all that apply.
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□  Economic Vitality |
□  Organizational Excellence |
□  Fiscal Strength |
■  Infrastructure & Growth |
□  Quality of Life |