One of local developer Andy Sehremelis’ corporations filed a lawsuit against the City of Menifee on June 30, seeking reversal of the City’s approval of the Menifee Boardwalk commercial center to be built adjacent to one of Sehremelis’ properties.
This becomes the second lawsuit in which Sehremelis is involved in Menifee. He is being sued by another local developer in a dispute over potential land development on Newport Road – land adjacent to another of Sehremelis’ businesses.
Sehremelis is the developer and owner of the ARCO AM/PM gas station/car wash and Archibald’s restaurant at the intersection of Newport Road and Menifee Road. He is the developer who donated $5,500 to Mayor Ricky Estrada’s campaign in 2024 – a campaign in which Estrada signed a pledge that he would not take money from developers.
In his campaign statement, Estrada said, “I am the ONLY candidate for Mayor to have signed the oath that I will not accept campaign contribution money from developers. Since 2022, I have voted on projects without influence or bias of developer money.”
That campaign controversy is back in the news because of Sehremelis’ recent involvement in Menifee development projects. Sehremelis has not developed any warehouses – the type of project Estrada has publicly opposed – but both of his current lawsuits involve his attempts to prevent the very kind of commercial business development Estrada says he favors.
“What residents are concerned with is the abundance of housing development while economic development gets put on the back burner,” Estrada told Menifee 24/7 in May. Ironically, the primary supporter of his mayoral campaign is now fighting to stop the development of stores and restaurants in two sites in Menifee.
The Menifee Boardwalk project, with plans including restaurants, drive-thru dining establishments and retail outlets, would be located next to Archibald’s on a site Sehremelis once planned to develop himself.
The lawsuit filed by Sehremelis’ Foothill Arch, LLC vs. the City of Menifee this week disputes the validity of an environmental report approved by the Planning Commission and upheld (against Sehremelis’ appeal) by the City Council on June 3 for the Menifee Boardwalk project. (Estrada recused himself from that vote, citing a “prior relationship”).
Sehremelis’ lawsuit claims that the City violated the California Environmental Quality Act (CEQA) by adopting a mitigated negative declaration of environmental impacts, and that the traffic study conducted by an outside company for the City is flawed.
In the other litigation, Sehremelis is being sued by Diamond Brothers Five Partnership, which sold Sehremelis the parcels on which he built the gas station and Archibald’s restaurant. At issue is the interpretation of an agreement signed between Sehremelis and Diamond Brothers Five that restricts some types of development on a parcel east of the ARCO station and car wash on Newport Road.
Faced with recent accusations that he used a false promise to help get himself elected in 2024, Estrada is no longer saying that Sehremelis is not a developer. Estrada has remained adamant, however, that he didn’t lie in signing the pledge, using the claim that Sehremelis is not currently involved in development in Menifee.
During the public comments portion of the June 17 City Council meeting, local resident Ed Samuelson told Estrada he couldn’t be trusted because of his alleged misconduct. He demanded Estrada resign or be recalled. The Brown Act prevented Estrada from replying at that time, but during the section reserved for council member comments, Estrada said, “Andy Sehremelis is not a developer with the city. He is not developing any projects with the city. I am in accordance with the pledge.”
However, at the June 3 City Council meeting, Parkcrest Construction attorney Joseph Cardella stated that Sehremelis is indeed a developer. In addition, the Parkcrest Construction website indicates that Sehremelis continues to have interest in further development in Menifee. The “Our Developments” section of the website lists plans for an assisted living facility on the site where the Menifee Boardwalk has now been approved.
Cardella told council members that Sehremelis later decided not to pursue that project. Now, Sehremelis is opposing another development approved for the same site.
In his rebuttal to Samuelson’s comments at the July 17 City Council meeting, Estrada said, “I hate to take up a City Council meeting to talk about old elections.”
Sehremelis’ recent actions regarding development in Menifee has made his relationship with Estrada a current issue.
