MURRIETA - Still undecided about how to realign Monroe Avenue, city officials have agreed to pay a developer up to $150,000 as reimbursement for losses resulting from the delayed road project.

Tuesday night, the City Council approved the agreement 4-1. Councilman Warnie Enochs, who voted against the agreement, wanted the city to limit the maximum amount of reimbursements to $100,000.

Dr. Michael Basch, one of two partners in the Santa Rosa Medical Plaza development, said Tuesday he was pleased city officials had addressed some of the concerns he raised in August, particularly that the undetermined realignment of the road had delayed his proposed medical building project, prompting nine doctor-investors to pull out.

In March, the city ordered a building moratorium through November along Monroe Avenue between Los Alamos and Murrieta Hot Springs roads after learning that the Murrieta Valley Unified School District planned to build a third high school north of Murrieta Hot Springs Road.

"Monroe goes through the (new) school," City Manager Lori Moss said.

So, city officials said they need the extra time to study Monroe Avenue road alignment alternatives, just west of Jackson.

Tuesday night, Basch thanked the city's staff for being accommodating.

"They've gone out of their way to help us out," said Basch, referring to himself and his remaining partner, Munif Salek. The city will reimburse Basch and Salek $9,100 per month -- the amount of their mortgage -- beginning this month, Moss said.

Basch, however, added that he will lose at least a quarter-million dollars if the city doesn't complete its realignment plan within 10 months and if the city ultimately takes some land away from his proposed 31,000-square-foot medical office building at Jackson Avenue and Murrieta Hot Springs.

The city hasn't ruled on the project and the realignment of Monroe Avenue has delayed a decision on the proposal, officials said.

Basch said he had to secure a loan to pay back the investors who pulled out of the deal to build a medical building on a parcel north of Murrieta Hot Springs and between the two freeways.

"I am extremely worried that the project could be doomed -- it all depends on how much property (city officials) take," said Basch in an interview, who noted that the building plans would have to be changed if the city took as little as 15 feet away from his 1.87-acre property.

According to a city document, if the ultimate realignment of Monroe Avenue prohibits the project from being built as proposed, then "Santa Rosa reserves the right to build a suitable project on any remainder parcel." If that happens, the city will waive processing fees for the new project.

Moss told the council that the realignment "definitely" would necessitate buying some of Santa Rosa's property, possibly a 30-foot strip. She said the total reimbursement to Santa Rosa would be credited to the purchase of a right-of-way on the property or the whole property.

Councilman Rick Gibbs said the agreement -- which he supported -- was a "basic fairness issue."

"We need more medical care in the city of Murrieta, and we want to encourage doctors to (settle) in Murrieta," he said.

- Contact staff writer Brian Eckhouse at (951) 676-4315, Ext. 2626, or beckhouse@californian.com.