2025 - 31910 D.R. Horton Los Angeles Holding Co, Inc - Assign & Assum & Amended Dev. Improv. AgrASSIGNMENT AND ASSUMPTION AGREEMENT
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AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 31910 ON -SITE IMPROVEMENTS
This ASSIGNMENT AND ASSUMPTION AGREEMENT AND AMENDMENT TO
SUBDIVISION IMPROVEMENT AGREEMENT ("Assignment & Amendment") is made
and entered into as of the 16th day of September , 20 25 , by and among the
CITY OF LA QUINTA, a municipal corporation of the State of California ("City"),
Capistrano Lots, LP, a California limited partnership ("Assignor"), and D.R. Horton Los
Angeles Holding Company, Inc., a California corporation ("Assignee").
RECITALS
A. City, Assignor, and La Quinta 57 Estates, Inc. entered into that certain
Assignment and Assumption Agreement and Amendment to Subdivision Improvement
Agreement, dated October 9, 2015, pursuant to which Assignor, as the "Subdivider"
defined in the Subdivision Improvement Agreement for Tract No. 31910 ("SIA"), agreed
to plan for, install, and construct certain public and/or private improvements on Tract
No. 31910 ("Tract"), as more fully described in Exhibit "A" of the SIA ("Improvements").
B. Assignor has sold its interest in the Tract to Assignee. In conjunction with
such transfer, Assignor desires to assign the SIA, and all of Assignor's rights and
obligations thereunder, to Assignee and Assignee desire to assume Assignor's position
with respect to the SIA and of Assignor's rights and obligations under the SIA subject to
the terms of this Assignment & Amendment.
C. In connection with the foregoing described assignment and assumption,
the City and Assignee have agreed to certain modifications to the SIA as set forth
herein to be effective upon full execution of this Assignment & Amendment by all the
parties hereto.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and the
covenants and promises hereinafter contained, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:
1. Assignment and Assumption. Assignor hereby transfers and assigns to
Assignee all of the Assignor's rights, title, and interest in and to, and obligations under,
the SIA, and Assignee hereby assumes all rights, title, and interest in and to, and
obligations under, the SIA. City hereby consents to the foregoing assignment and
assumption.
F220
2. Replacement of Improvement Security. Pursuant to the SIA, Assignor
has furnished the City security for the Improvements in the form of:
(a) Faithful Performance Bond in the amount of $1,254,277 for the following
improvements:
ON -SITE IMPROVEMENTS
Performance Security
Improvement Description
Original
Amount
1st Partial
Reduction
(Percent)
1st Partial
Reduction
Amount
Grading
$286,226
75%
$71,557
Street
$797,543
20%
$638,034
Domestic Water
$69,785
70%
$20,936
Storm Drain
$46,648
70%
$13,994
Dry Utilities
$362,970
70%
$108,891
Sewer
$59,469
70%
$17,841
Monumentation
$20,000
0%
$20,000
Standard 10% Contingency
$164,264
0%
$164,264
Professional Fees, Design 10%
$180,691
90%
$18,069
Professional Fees, Construction 10%
$180,691
0%
$180,691
TOTAL
$2,168,287
$1,254,277
(b) Other (Specify type and amount): No other security is currently being
furnished by Assignor to the City.
For purposes of this Assignment & Amendment, such security in the aggregate shall be
hereinafter referred to as "Improvement Security." Assignee hereby warrants that within
five (5) days of this executed Assignment & Amendment, it shall replace Assignor's
Improvement Security with security of its own in an amount equal to the Improvement
Security, unless the City otherwise determines at its discretion and in writing that such
security can be issued at a lesser amount. Assignee's security shall be in full
compliance with the terms and conditions stated in the SIA for such security. The City
agrees that upon receipt of evidence that Assignee has obtained such new security in a
form satisfactory to the City, the City shall release Assignor's Improvement Security.
3. Solvency. As a material inducement to the City to enter into the
Assignment & Amendment, Assignee hereby represents and warrants to City, and City
hereby relies on Assignee's representation and warranty, that Assignee is solvent and
has the financial capability of fulfilling each and every obligation and duty it takes on by
way of the Assignment & Amendment.
4. Incorporation of SIA Provisions. The SIA, and each provision therein,
unless otherwise modified in writing, is incorporated in this Assignment & Amendment in
its entirety and Assignee agrees and warrants that it assumes and is bound by each
obligation found in the SIA in the same manner as Assignor prior to this Assignment &
Amendment.
F220 -2-
5. Counterparts. This Agreement may be executed in one or more
counterparts, which, taken together, shall constitute one complete and enforceable
agreement.
F220 -3-
IN WITNESS WHEREOF, the parties hereto have executed this Assignment &
Amendment on day of , 2025 .
CITY: City of La Quinta
78-495 Calle Tampico
La Quinta, CA 92253
760) 777-7075
JqN,MCMILLEN, CITY MANAGER
_,--City of La Quinta, California
ATTEST:
MONIKA RADEVA, CITY VERK
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
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Da Fe
ASSIGNOR: Capistrano Lots, L.P., a California limited partnership
940 Emmett Ave, Suite 200
Belmont, CA 94002
By: VPI 2004, Inc., a California corporation
Its: General Partner
September 5, 2025
Its: Debra L. Perry, Vice PreWdnt Date
N/A
Its: Date
ASSIGNEE: D.R. Horton Los Angeles Holding Company, Inc., a California corporation
980 Montecito Drive, Suite 300
Mna,92879
Its: Date
Its: Date
F220 -4-
CONSENT CALENDAR ITEM NO. 8
City of La Quinta
CITY COUNCIL MEETING: September 16, 2025
STAFF REPORT
AGENDA TITLE: APPROVE ASSIGNMENT AND ASSUMPTION AGREEMENT AND
AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT FOR TRACT MAP
NO. 31910, CAPISTRANO, A RESIDENTIAL DEVELOPMENT LOCATED ON THE
WEST SIDE OF MONROE STREET APPROXIMATELY 1,300 FEET NORTH OF
AVENUE 58
?ECOMMENDATION
Approve Assignment and Assumption Agreement and Amendment to Subdivision
Improvement Agreement for on -site improvements for Tract Map No. 31910, Capistrano,
and authorize the City Manager to execute said agreement.
EXECUTIVE SUMMARY
• Capistrano Lots, LP has sold its interest in this tract to a new developer, D.R.
Horton Los Angeles Holding Company, Inc. (D.R. Horton) and desires to assign
the subdivision improvement obligations to D.R. Horton.
• D.R. Horton requests approval of Assignment and Assumption Agreement and
Amendment to Subdivision Improvement Agreement (Agreement) for Tract Map
No. 31910, Capistrano.
FISCAL IMPACT
There is no fiscal impact to the City. D.R. Horton will submit replacement security to
guarantee construction of the improvements.
?ACKGROUND/ANALYSIS
Capistrano is a residential development located on the west side of Monroe Street
approximately 1,300 feet north of Avenue 58 (Attachment 1).
In December 2006, La Quinta 57 Estates, Inc. entered into a Subdivision Improvement
Agreement for Capistrano. In October 2015, Capistrano's subdivision improvement
obligations were assigned to Capistrano Lots, LP. Capistrano Lots, LP recently sold its
interest in this tract to D.R. Horton. The City will release Capistrano Lots, LP's security
upon executing the Agreement (Attachment 2) and receiving replacement security from
D.R. Horton.
31
ALTERNATIVES
Staff does not recommend an alternative.
Prepared by: Amy Yu, Associate Engineer
Approved by: Bryan McKinney, P.E., Public Works Director / City Engineer
Attachments: 1. Vicinity Map
2. Assignment and Assumption Agreement and Amendment to
Subdivision Improvement Agreement
32
ATTACHMENT 1
TM 31910 CAPISTRANO
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VICINITY MAP
NOT TO SCALE
33
Bond No. 82380249 Premium: $115.00
FAITHFUL PERFORMANCE BOND
(LQMC 6.16)
Fugitive Dust Control Bond
WHEREAS, the City of La Quinta, California, is prepared to authorize D.R. Horton Los
Angeles Holding Company. Inc. , as Principal, to proceed with certain construction activities
pursuant to one, or more permits issued by the City, for various infrastructure improvements and/or
structures on, or associated with, privately -owned property generally known to the City and others as
The Enclave at Capistrano - TR 31910 :and
WHEREAS, all such construction and demolition activities must be performed in such
manner as to conform with La Quinta Municipal Code, Chaper 6.16, entitled Fugitive Dust Conti -of to
reduce fugitive dust and corresponding PM10 emissions; and
WHEREAS, said Principal is required by LQMC 6.16.050(A)(4) to ensure that Fugitive
Dust Control Plan # , prepared specifically for the subject construction site, is financially
secure by furnishing security for the faithful performance of the dust control activitities required in the
Fugitive Dust Mitigation Plan.
NOW, therefore, we the Principal and Federal Insurance Com an
as Surety, are held and firmly bound unto the City of La Quinta, as Obligee, in the penal
sum of Forty Five Thousand Dollars and 00/100
Dollars ($ 45,000.00 ) lawful money of the United States, for the payment of which sum well and truly
to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally,
firmly by these presents.
The condition of this obligation is such that if the above bonded Principal, his or its heirs, executors,
administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep
and perform the covenants, conditions and provisions in the said dust control plan and any alteration
thereof made as therein provided, on his or their part, to be kept and performed at the time and in the
manner therein specified, and in all respects according to their true intent and meaning, and shall
indemnify and save harmless the Obligee, its officers, agents and employees, as therein stipulated, then
this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
As a part of the obligaton secured hereby and in addition to the face amount specified therefor, there
shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred
by the Obligee in successfully enforcing such obligation, all to be taxed as costs and included in any
judgement rendered.
The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the
terms of the dust control plan or to the work to be performed thereunder or the specifications
accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive
notice of any such change, extension of time, alteration or addition to the terms of the dust control plan or
to the work, the specifications, or the conditions of approval of said plan.
Page 1 of 2
F211
Fugitive Dust Control Bond
Fugitive Dust Control Plan #
Page 2 of 2
In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on
November 18, 2021.
D.R. Horton Los Angeles Holding Company, Inc.
r ci al i
(Seal) By:
Signature of POncipal
Title of Signatory
S�taar�c Federal Insurance Company
x � i Surety
-
u- Y Signature of Surety
Bryan M Caneschi Attorney -in -Fact
Title of Signatory
202B Hall's Mill Road
Whitehouse Station, NJ 08889
Address of Surety
908-903-3485
Phone # of Surety
Surety Claims _
Contact Person For Surety
F211
Bond No. US00146044SU25A Premium: $2,509.00
SUBDIVISION IMPROVEMENTS
Tract Map No. 31910
PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
THAT, the City Council of the City of La Quinta has approved the final map for Tract Map
No. 31910 , prior to installation of certain designated public improvements required by the
Conditions of Approval for the subject map, in accordance with the California Map Act (Government Code
Section 66462)
WHEREAS, the City Council of the City of La Quinta, State of California, and
D.R. Horton Los Angeles Holding Company, Inc. hereinafter designated as ("principal')
have entered into an agreement whereby principal agrees to install and complete certain designated public
improvements, which said agreement, dated _ , and identified as
Tract Map No. 31910 , is hereby referred to and made a part hereof; and
WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the
faithful performance of said agreement.
NOW, THEREFORE, we, the principal and D.R. Horton Los Angeles Holding Company, Inc. ,
as surety, are held and firmly bound unto the City of La Quinta hereinafter called ("City"), in the penal sum
Of One 0/1 Million Two Hundred Fifty Four Th usand Two Hundred Seventy even Dollars and 00 DOLLARS ($ 1,254,277.00 )lawful
money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our
heirs, successors, executors and administrators, jointly and severally, firmly by these presents.
The condition of this obligation is such that if the above bounded principal, his or its heirs, executors,
administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and
perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as
therein provided, on his or their part, to be kept and performed at the time and in the manner therein
specified, and in all respects according to their true intent and meaning, and shall indemnify and save
harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become
null and void; otherwise it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there
shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred
by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment
rendered.
F201 - Performance Bond Page 1 of 2
The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to
the terms of the agreement or to the work to be performed thereunder or the specifications accompanying
the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such
change, extension of time, alteration or addition to the terms of the agreement or to the work or to the
specifications
In witness whereof, this instrument has been duly executed by the principal and surety above named,
on September 10, 2025
D.R. Horton Los Angeles Holding Company, Inc.
Princi al
Seal By:/
Signature of Principal
FiSSiS-iGn-►' cSCC�G'�'A��i
Title of Signatory
0'
`\Pp�plNlmurrpry4
o�y \NSUR!9Nc goy
o9-Po�r
XL Specialt
u o _ o = y Insurance Company
Surety
By: 'V410—
SEAL:=
nurmm�um
Signature of Surety
Noah William Pierce Attorney -in -Fact
Title of Signatory
677 Washington Blvd., 10th Floor, Suite 1000
Stamford, CT 06901
Address of Surety
(203) 964-5200
Phone # of Surety
Surety Claims
Contact Person For Surety
F201 - Performance Bond Page 2 of 2
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of 12,i yt _r:5 -e—
on q - J l.o - aoaS before me, Ashley Arryann Donovan, Notary Public
(insert name and title of the officer)
personally appeared Vicki Gullion
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/tee
subscribed to the within instrument and acknowledged to me that. a/she/they executed the same in
leis/her/their authorized capacity(4es), and that by Ns/her/their signature(3r) on the instrument the
person(w), or the entity upon behalf of which the person(zl acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
ASHLEY ARRYANN DONOVAN
U COMM #2417574
WITNESS my hand and official seal. 2 =°® NOTARY PUBLIC - CALIFORNIA
RIVERSIDE COUNTY
My Commission Expires September 22. 2026
Signature 'zovek.&— (Seal)
STATE OF NORTH CAROLINA
COUNTY OF ROWAN:
I, Bryan M Caneschi, a Notary Public in and for Rowan County, North Carolina, do hereby certify that
Noah William Pierce personally appeared before me this day and acknowledged the due execution of
the foregoing instrument.
Witness my hand and official seal this
Notary Seal
Bryan M Caneschi, Notary Public
I0 day of 4' ege t 2025
My Commission Expires on the 41h day of April, 2027.
Power of Attorney BOND NUMBER US00146044SU25A
XL Specialty Insurance Company
M,AA XL Reinsurance America Inc LIMITED POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That XL Specialty Insurance Company, a Delaware insurance companies with offices located at 505
Eagleview Blvd., Exton, PA 19341, and XL Reinsurance America Inc., a New York Insurance company with offices located at 70 Seaview Avenue,
Stamford, CT 06902, , do hereby nominate, constitute, and appoint:
Noah William Pierce
each Its true and lawful Attorney(s)-in-fact to make, execute, attest, seal and deliver for and on its behalf, as surety, and as its act and
deed, where required, any and all bonds and undertakings in the nature thereof, , for the penal sum of no one of which is in any event to
exceed $100,000,000.00.
Such bonds and undertakings, when duly executed by the aforesaid Attorney (s) - in - Fact shall be binding upon each said Company as
fully and to the same extent as if such bonds and undertakings were signed by the President and Secretary of the Company and sealed
with Its corporate seal.
The Power of Attorney is granted and is signed by facsimile under and by the authority of the fallowing Resolutions adopted by the Board of Directors of each of the
Companies on the 26th day of Jury 2017.
RESOLVED, that Gary Kaplan, Daniel Riordan, Maria Duhart, Gregory Boal and Kevin Mirsch are hereby appointed by the Board as authorized
to make, execute, seal and deliver for and on behalf of the Company, any and all bonds, undertakings, contracts or obligations in surety or
co -surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to
attest the execution of any such bonds, undertakings, contracts or obligations In surety or co -surety and attach thereto the corporate seal of
the Company.
RESOLVED, FURTHER, that Gary Kaplan, Daniel Riordan, Maria Duhart, Gregory Boal and Kevin Mirsch each Is hereby authorized to execute powers
of attorney qualifying the attorney named in the given power of attorney to execute, on behalf of the Company, bonds and undertakings in surety
or co -surety with others, and that the Secretary or any Assistant Secretary of the Company be, and that each of them Is hereby authorized to
attest the execution of any such power of attorney, and to attach thereto the corporate seal of the Company.
RESOLVED, FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be
affixed to such powers of attorney or to any certificate relating thereto by facsimile, and any such power of attorney or certificate bearing such
facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond, undertaking, contract or
obligation in surety or co -surety with others to which it is attached.
IN WITNESS WHEREOF, the XL SPECIALTY INSURANCE COMPANY has caused its corporate seal to be hereunto affixed, and these presents to
be signed by its duly authorized officers this April 13th, 2018.
W�+ro
XL SPECIALTY INSURANCE COMPANY
:y\PO NC
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m.off:
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;..SEAL;.Y2
by %<
Gregory Boal, VICE PRESIDENT
M11AI0W
STATE OFSYLVANIA
COUNTY OFF CH
CHESTER Ate'
Kevin M. Mirsch, ASSISTANT SECRETARY
On this 13th day of April, 2018, before me personally came Gregory Boal to me known, who, being duly sworn, did depose and
say: that he Is Vice President of XL SPECIALTY INSURANCE COMPANY, described in and which executed the above Instrument; that
he knows the seals of said Companies; that the seals affixed to the aforesaid instrument is such corporate seals and were affixed
thereto by order and authority of the Boards of Directors of said Companies; and that he executed the said Instrument by like
order.
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SB0042
Commomlrsalth of Pamdyllmla • Notary Seal
Rebecca C. Shalhoub, Notary Public
Northampton County
Mycommisslon 9*mApril 28, 2028
Commission number 1268765
Meftw. Pennsylvatpa Anod~ of Notaries
Rebecca C. Shalhoub, NOTARY PUBLIC
STATE OF PENNSYLVANIA
COUNTY OF CHESTER
I, Kevin M. Mirsch, Assistant Secretary of XL SPECIALTY INSURANCE COMPANY, a corporation of the State of Delaware, do hereby certify
that the above and forgoing Is a full, true and correct copy of a Power of Attorney Issued by said Companies, and that I have compared
same with the original and that it Is a correct transcript therefrom and of the whole of the original and that the said Power of Attorney is still
In full force and effect and has not been revoked.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Corporation, at the City of Exton, this 10th day of
September, 2025
RIP Q-i OR9r .n�
Kevin M. Mirsch, ASSISTANT SECRETARY
........ SEAL:2
IN WITNESS WHEREOF, XL REINSURANCE AMERICA INC. has caused Its corporate seal to be hereunto affixed, and these presents to be signed by its duly
authorized officers this 13th day of April, 2018.
A)s al„j\ .
�0 4��i, XL REINSURANCE AMERICA INC.
by: �/
�,I s -Al, f Gregory Boa], VICE PRESIDENT
Attest:
�Kevin M. Mirsch, ASSISTANT SECRETARY
STATE OF PENNSYLVANIA
COUNTY OF CHESTER
On this 13th day of April, 2018, before me personally came Gregory Boal to me known, who, being duly sworn, did depose and say: that he Is Vice
President of XL REINSURANCE AMERICA INC., described in and which executed the above Instrument; that he knows the seal of said Corporation;
that the seal affixed to the aforesaid Instrument Is such corporate seal and was affixed thereto by order and authority of the Board of Directors of
4cp- Nlvhq�9 :
Carnman"akh of Pennsylvania - Notary Seal
olo F,q'r, O -
A*.
Rebecca C. Shalhoub, Notary Public
=OC:v OF
Northampton County
:
Mycommission explresApril 28, 2028
Commission number 1268765
yhSYtvP'�c''
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�o� :•`
AWy
Memw, Pom "aria Associatbn of NotsrW
STATE OF PENNSYLVANIA
COUNTY OF CHESTER
Rebecca C. Shalhoub, NOTARY PUBLIC
I, Kevin M. Mirsch, Assistant Secretary of XL REINSURANCE AMERICA INC. a corporation of the State of New York, do hereby certify that the
person who executed this Power of Attorney, with the rights, respectively of XL REINSURANCE AMERICA INC., do hereby certify that the above
and forgoing is a full, true and correct copy of a Power of Attorney issued by said Corporation, and that I have compared same with the original
and that it is a correct transcript therefrom and of the whole original and that the said Power of Attorney Is still In full force and effect and has
not been revoked.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Corporation, at the City of Exton, this 10th
day of September, 2025
�V OR,
n
S"AL
✓OR�r
This Power of Attorney may not be used to execute any bond with an Inception date
SB0042
Kevin M. Mirsch, ASSISTANT SECRETARY
4/28/2028 12:00:OOAM