Title
Department of Transportation recommending the Board approve and authorize the Chair to sign Amendment II to Subdivision Improvement Agreement 21-54978 for Campobello Unit 1, TM 05-1403R, with Campobello 24-8, LLC , amending the owner to KB Home Sacramento, Inc., replacing the bonds held on the project, and extending the performance period to June 24, 2026.
(District 2)
FUNDING: Developer Funded.
Body
DISCUSSION / BACKGROUND
On June 14, 2022 (Legistar file 22-0958), the Board approved the Subdivision Improvement Agreement (SIA) and Final Map for the development known as Campobello Unit 1, TM 05-1403R (“Project”), with Campobello 24-8, LLC (“Original Owner”). The SIA required completion of all subdivision improvements no later than June 14, 2024.
Resolution 96-95 authorizes the Department of Transportation (Transportation) director to sign a one-time, twelve (12) month extension of improvement agreement performance periods. This authority was used to execute the First Amendment to the SIA on June 6, 2024, which extended the performance period one year to June 14, 2025. Subsequent extensions must be approved by the Board.
On February 20, 2025, the Project was sold to KB Home Sacramento, Inc. (“Successor Owner”). Transportation staff coordinated with Successor Owner during their due diligence phase and were aware of the potential sale of the project. The proposed Second Amendment to the SIA updates the ownership on the project and transfers all rights and obligations to the Successor Owner. Due to the change in ownership, there have been delays in the completion of the project and the Successor Owner has requested a one year extension of the performance period to June 24, 2026. The construction of this subdivision is substantially complete; however, the Developer needs to be within the performance period of the agreement in order to complete any remaining items and finalize the project. Transportation requires a valid performance period at the time of...
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