MEMORANDUM OF UNDERSTANDING
ON
COMMUNITY CENTER CONSTRUCTION AND FUNDING
FOR
THE PRESERVE PROJECT
This Memorandum of Understanding (“MOU”) is made this 20th day of October, 2026, by and between the City of Chino, a California general law municipal corporation (“City”) and Chino Holding Company, LLC, a Delaware limited liability company qualified to do business in California (“CHC”), Chino Preserve Development Corporation, a California corporation (“CPDC”), and Chino Development Corporation, a California Corporation (“CDC”) to memorialize the present intent and understanding of the City and CHC, CPDC and CDC with respect to the construction and funding of the public community center in The Preserve. CHC, CPDC, and CDC are hereafter referred to collectively as “Owners”.
RECITALS
The City and Owners have entered into an Amended and Restated Development Agreement (“DA”) dated June 23, 2023, with respect to the development of the Owners' property in The Preserve.
Section 6.4.4. of the DA outlines the requirements to design and construct a public community center (“Remaining Preserve Facilities”) and the City issued a Notice to Proceed (“Notice to Proceed”) on June 24, 2026, for construction to commence no later than December 20, 2026, and to reimburse the Owners for amounts spent on the design and construction of the Remaining Public Facilities in excess of the Public Use DIF Fees of the Owners' projects. The Notice to Proceed shall become effective only upon City Council approval and full execution of the Construction Credit and Reimbursement Agreement that has been negotiated concurrently with this MOU.
The construction Budget for the Remaining Preserve Facilities has increased by an estimated $17,100,000, and the City has requested Owners to fund an additional $5,700,000 of the construction Budget (“Option 1”). The City may request Owners to fund the additional amount in excess of what Owners are entitled to be repaid out of the Public Use Facilities DIF per the Chino Municipal Code, not to exceed twenty-three million dollars ($23,000,000) (“Excess Design/Construction Cost”) (“Option 2”).
AGREEMENT
NOW, THEREFORE, the City and Owners agree as follows:
The City shall notify Owners in writing prior to October 20, 2028, whether it wants to proceed under Option 1 or Option 2, or neither. Should the City elect to proceed under Option 1, Owners agree to construct the Remaining Preserve Facilities based on the Notice to Proceed from the City, funding the additional $5,700,000 of the construction Budget as a loan to the City with repayment at no interest if paid within five (5) years from commencement of construction. Should the City elect to proceed under Option 2, Owners agree to construct the Remaining Preserve Facilities based on the Notice to Proceed from the City, funding the Excess Design/Construction Cost as a loan to the City with repayment terms at no interest if paid within five (5) years from completion of construction.
Should the City elect to proceed under Option 1, Owners will entirely forgive the repayment requirement of the $5,700,000 loan if the City Council approves an additional 128 residential units to be added to their holdings in Block 10, provided that in no event shall the zoning in Block 10 change from its current zoning. Should the City elect to proceed under Option 2, Owners will entirely forgive the repayment requirement of the Excess Design/Construction Cost loan if the City Council approves an additional 128 residential units to be added to their holdings in Block 10, provided that in no event shall the zoning in Block 10 change from its current zoning and the City Council approves a partial rezone of Block 2 (54 acres) to allow an additional 243 residential units in Block 2. All approvals must be final approvals without a CEQA challenge or, in the event of a CEQA challenge, the litigation must be settled prior to the debt forgiveness, even if that exceeds the five (5) years, interest free payback period. The City staff shall endeavor to get City Council approval of either Option 1 or Option 2 within 6 months after selecting either option.
City and Owners acknowledge that they intend to cooperate fully to affect the foregoing understanding of their intent and agree to act diligently and expeditiously to negotiate and execute a legally binding DA Amendment incorporating that intent, in accordance with the notice, public hearing and Planning Commission and City Council approval and other requirements of law.
WHEREAS, City and Owners have executed this MOU on this 20th day of October, 2026.
CITY:
CITY OF CHINO, a California municipal corporation
By:_____________________________
ATTEST: Name: Eunice M. Ulloa Title: Mayor _______________________________
Natalie Gonzaga, City Clerk
APPROVED AS TO FORM:
_______________________________
Fred Galante, City Attorney OWNERS:
CHINO HOLDING COMPANY, LLC,
a Delaware limited liability company qualified to do business in California By: NORTH MOUNTAIN CORPORATION
By: ___________________________
Name: ________________________
Title: __________________________
Chino Preserve Development Corporation
A California corporation (“CPDC”)
By: ___________________________
Name: ________________________
Title: __________________________
Chino Development Corporation, a California corporation (“CDC”) By: ___________________________
Name: ________________________
Title: __________________________
01225.0018 2204907.6
01225.0018 2204907.6