Cities Index.
Agenda

Indio City Council
July 15, 2026

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Agenda
Meeting
July 15, 2026
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Indio City Council
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281
Original file
472.4 MB
Text extracted from the city's file for reading and search. Open the original on indio.civicweb.net. That file is the official record.

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1537 of 1638 Credit may reflect actual " hard" and " soft" costs of design, construction and land acquisitions and/ or right of way acquisition costs arising from or related to Developer transactions with third parties in Developer' s performance under this Agreement as to the Public Improvements or the Additional Public Improvements.

5. 14. 5 Development Impact Fee Exemption. Based upon its unique location outside the tributary area of the City' s Master Planned Storm Drain system, the Project will not contribute to the flow within that system. There is no legal basis for requiring Developer' s payment of City' s Storm Drain Facilities Fee per Section 8e of the Fee Ordinance ( the " Storm Drain Fees"); accordingly, Developer shall be exempt from any obligation to pay Storm Drain Fees.

5. 15 Building Height and Size. All building heights, sizes, uses and densities for the Project shall be controlled by the SP.

5. 16 Hotel Site Development. The SP calls for the development, within Area 33 of the Site (" Hotel Site"), of a boutique hotel. Per this Agreement, the Parties note their understanding that another mutually acceptable and functionally equivalent use, subject to Indio' s Uniform Transient Occupancy Tax Ordinance codified in Code of Indio Section 34. 35 et seq., may comply with this provision. In the event that a hotel developer has not purchased the boutique hotel or functional equivalent from the Developer within three ( 3) years of Developer' s completion of the eighteen ( 18) hole Golf Course and Golf Clubhouse (" Golf Course Completion Date"), the Parties agree to the following: ( i) the Parties will retain a mutually acceptable MAI qualified appraiser to determine the fair market value of the Hotel Site for use as a hotel or functionally equivalent use, and make an appraisal report as to same (" Appraisal Report"); (ii) upon completion of the Appraisal Report, Developer and City shall have the right to commence efforts to market the Hotel Site to mutually acceptable qualified hotel developers at the value specified in the Appraisal Report; ( iii) Developer reserves the right to update the Appraisal Report after every six ( 6) month period that the Hotel Site remains unsold. In addition to these understandings, the Parties agree that on the five 5) year anniversary of the Golf Course Completion Date, if the boutique hotel has not been developed Developer shall be permitted to develop the Hotel Site in a manner consistent with the alternate residential use as set forth in the SP, and thereby effectively increase the total number of residential units in the Project to 3, 075. 6, Sewer Service. City will use its best efforts to assist Developer in obtaining sewer service for the Site from Valley Sanitary District.

7. Condemnation for Infrastructure. In the event the development of the Site requires the creation or use of property, easements, land or corridors for utilities, roads or other infrastructure that is not owned or controlled by Developer, the City, following all actions and procedures required under applicable law, will consider in good faith, but shall not be required, to institute condemnation of the necessary property within three 3) months of said request by Developer (" Condemnation"). Developer shall be required SCC/ INDIO CITRUS RANCH,,; / ITY OF INDIO DEVELOPMENT AGREEMENT GE 17 OF 41

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1538 of 1638 to attempt to secure the necessary property or easements privately before requesting the City to institute condemnation proceedings. Developer understands and agrees that as a public agency, in addition to payment of the property purchase price, the City' s acquisition of the property through Condemnation will involve expenses not normally associated with privately negotiated property purchases, including without limitation, one or more Condemnation appraisals, owner and tenant relocation assistance, various Condemnation related public hearings, possible lawsuits, claims or demands by owners or other third parties, CEQA analysis and associated legal expenses ( collectively, the Condemnation Costs"). In the event the City elects to proceed with the Condemnation, the Parties will establish a mutually acceptable purchase price for the property ( the Purchase Price") and a cap on the Condemnation Costs ( collectively, the Condemnation Costs Ceiling" or " CCC"). Developer shall be responsible to pay the City the Purchase Price and all of the City' s costs of Condemnation up to the CCC.

7. 1 Waiver of Condition. In the event that the City declines or is prevented from exercising its power of condemnation to assist the Developer in satisfying a condition concerning the Project' s infrastructure, the condition shall be deemed waived by the City.

8. Improvements and Financing/ Community Facilities District.

8. 1 Public Financing of Improvements. The Developer intends to submit one or more petitions to the City requesting that the City establish one or more assessment and/ or community facilities districts to finance infrastructure, and other public improvements necessary to meet increased demands placed upon local agencies as a result of the development of the Project ( a " Financing District"). The City agrees to use its best efforts to implement such requests subject to applicable State and federal law, and the general considerations set forth in this Agreement. A list of eligible facilities is attached hereto as Exhibit "D".

8. 2 CFD For Police. Developer agrees to annex the Project into the City' s existing Community Facilities District (" CFD") 2004- 1 or a future similar district established to support the operation and maintenance of Police, Fire and Paramedic Facilities/ Services.

8. 3 CFD For Coachella Valley Recreation & Parks District. Developer agrees to annex the Project into the Coachella Valley Recreation & Parks District's CFD at a cost of $60. 00 per dwelling unit per year.

8. 4 Landscape and Lighting District. The Parties agree that the existence of a District formed pursuant to the Landscape and Lighting Act of 1972 codified in California Streets and Highways Code Sections 22500 et seq. (" LLD") can inure to the benefit of the Project and the health, safety and welfare of its residents insofar as it may provide for reliable and efficient funding for the operation and maintenance of public street lighting, landscaping in public right- of-way areas and/ or SCC/ INDIO CITRUS RANCd. L pppp ICITY OF INDIO DEVELOPMENT AGREEMENT L4'/ GE 18 OF 41
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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1539 of 1638 parks, etc. Developer, upon agreement with the City, may create a District specific to the Project that funds public street lighting, including but not limited to lighting along Dillon Road. Furthermore, Developer agrees to cooperate with City in the formation of a new City- wide LLD, encompassing all parcels within the City' s limits..

8. 5 Reimbursement of Costs. Any Financing District will provide for the reimbursement to the Developer of advances by the Developer and other costs incurred by the Developer that are directly related to the Financing District, such as the costs of legal counsel, special tax consultants, engineers, etc. The Developer agrees to promptly submit to the City a detailed accounting of all such costs incurred by the Developer at such time as Developer makes application for reimbursement. Such costs will be reimbursed to the Developer only to the extent the City' s bond counsel determines that such reimbursement is permitted under relevant State or Federal law, and that such costs are reasonable and necessary to the formation of a financing district, or otherwise were incurred in furtherance of the purposes of the financing district. A list of fees deemed eligible for reimbursement to Developer and/ or payment by a Financing District is attached hereto as Exhibit "E".

8. 6 District Principles. The following policies shall apply to any Financing District established by the City in connection with the Project:

8. 6. 1 2% Annual Escalator. The rate and method of
apportionment of any special tax to be levied within a community facilities district shall provide for an annual increase in the amount of the tax of two percent ( 2%).

8. 6. 2 2% Maximum Tax Rate. The total tax rate on property shall not exceed two percent ( 2%) of the appraised fair market value of the subject properties when taking into account all taxes and assessments on property of all jurisdictions, including, but not limited to the following:
a. Ad valorem property taxes levied by the County of Riverside the " County");
b. Voter approved ad valorem taxes levied by the County in excess of one percent ( 1 %) of the fair market value,
including voter approved debt service;
C. The maximum annual special taxes levied by any existing community facilities district for payment of bonded
indebtedness or on -going services;
d. Annual equivalent assessments levied for any special assessment district or maintenance district for the payment of bonded indebtedness or services; and
e. The annual equivalent maximum special tax for the any financing district formed pursuant to this Agreement.

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8. 6. 3 Separate Sale of Bonds: Term. The bonds may be sold in multiple series for each assessment district, community facilities district, improvement area or development phase. The term of the bonds may be up to thirty ( 30) years.

8. 6. 4 Largest Share CFD Policy. The local agency reasonably expected to have responsibility for providing facilities or services to be financed by a larger share of the proceeds of special taxes and bonds of a community facilities district than any other local agency shall have primary responsibility for formation of the district or an improvement area therein. The City will use its best efforts to cooperate with any other local agency that has such primary responsibility for formation of a district and to enter into a joint community facilities agreement with such local agency.

8. 7 Best Efforts Undertaking. The Developer acknowledges that the formation of any financing district is subject to protest hearings and, in some cases, voter approval. Although the City agrees to use its best efforts to form one or more financing districts in accordance with the foregoing, it shall incur no monetary liability for its failure to form any such financing district. City staff shall meet and confer with the Developer from time to time with respect to all major aspects of any financing district, but the final decision regarding all aspects of such financing districts shall be subject to the review and approval of the City Council.

9. Fees and Payments.

9. 1 Development Impact Fees to Be Applied. " Development Fees" shall mean all development related impact fees and charges of every kind and nature imposed by City and subject to City's exclusive control. Development Fees currently imposed are identified in Ordinance number 1463 adopted by the City Council on May 17, 2006. A schedule showing the Development Fees in place as of the Effective Date is attached hereto and incorporated by reference herein as Exhibit " F." Other development related impact fees and charges, assessed or collected by the City but determined, at least in part, based upon input from other government agencies and/ or authorities (" Outside Agency Fees") are identified in Exhibit " F- 1," attached hereto and incorporated herein by this reference. Except as otherwise provided in this Agreement, e. g., in Section 4. 4, the City shall not, whether through the exercise of its police power, the taxing power, or any other means: ( i) impose on the Project any Development Fees or other exactions, apart from existing or future Outside Agency Fees, not provided for in this Agreement or the Project Approvals; or ( ii) increase any Development Fees or other exactions applicable to the Project under this Agreement or the Project Approvals.

Any new Development Fees or increases to same imposed on a City- wide basis shall not be applicable to the Project except as specified by this Agreement.

9. 1. 1 Fees Increases. Notwithstanding Section 9. 1 above, to the extent that the City increases Development Fees set forth in Exhibit " F" through the first ten ( 10) years of the Term, such increases shall only be applied to the Project in accord

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1541 of 1638 with City' s Ordinance number 1463, i.e., per increases in the adjusted Engineering News Record Construction Cost Index for the City of Los Angeles. Commencing upon the first day of the eleventh year of the Term, Development Fees applicable to the Project' s development and payable thereupon shall be established and increased in accord with applicable State law and City Ordinance, without reference to this Agreement.

9. 1. 2 Payment of Proportional Share of Fire Station. To help insure that the City' s established response time needs with respect to provision of fire services to the Project are met, Developer agrees to pay its proportional share of a fire station to be located on the Fire Station Parcel ( the " Fire Station Share"). The Parties agree that the size of the Fire Station Share will be determined prior to the issuance of the first building permit for a residential dwelling unit in the Project. The Fire Station Share shall become payable at the earlier of: ( i) the funding of the first improvement area of the Financing District ( lump sum payment), or ( ii) the issuance of the first building permit for a residential dwelling unit in the Project ( payment on a per unit basis at time of issuance of each permit).

9. 2 Processing Fees. Notwithstanding Section 9. 1 of this Agreement, City may charge processing fees for plan checks, land use, building permits, approvals of entitlements, inspections, and mitigation monitoring provided such processing fees are in force and effect on a City- wide basis at the time application is submitted for such permits, approvals or entitlements (" Processing Fees"). City may also increase Processing Fees based on any increase in the estimated reasonable cost to City of performing the work for which the particular Processing Fee is paid provided that such increases are made on a City- wide basis. Any such increase shall not exceed an amount which will compensate the City for the estimated reasonable cost and increases incurred, as permitted pursuant to CGC Section 54990. Anything herein to the contrary notwithstanding, City shall waive Processing Fees for any building or improvements to be built by Developer for conveyance to City or other government entity for fire protection.

10. Project Elements. The following elements of the Project are hereby approved:

10. 1 Permitted Uses of the Site. The Parties agree that, during the Term, the permitted uses across the Site' s Planning Areas shall conform to those consistent with the Project Approvals, including a diverse mixture of various housing types, corresponding amenities, including but not limited to an eighteen ( 18) hole Golf Course including a Golf Clubhouse incorporating a broad range of recreation uses, and a community center. All uses shall be constructed in conformance with the Project Approvals. The Parties enter this Agreement in reliance on the present provisions and conditions of approval of the Project Approvals and Existing Regulations. These provisions and conditions of approval shall not be modified or amended, except as specified herein, without the consent of City and Developer.

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10. 2 Permitted Density or Intensity of Use. Except as specified above in Section 5. 16, per the SP, the residential component of the Project includes approximately three thousand and fifty-three ( 3,053) dwelling units. City hereby confirms its approval of the EIR as a satisfactory analysis of all environmental impacts arising from and related to the Site' s development, inclusive of the Project' s uses, intensities and densities as specified in the Project Approvals, and an acceptable specification of legally adequate mitigation measures directed at said impacts. City further confirms Developer' s right to density transfers as specified in the SP.

11. Reservations and Dedications. It is hereby further understood and agreed that, City will require no reservations or dedications of land during the Term, except as set forth in this Agreement and the Project Approvals inclusive of their conditions of approval.

12. Operating Memoranda. The provisions of this Agreement require a close degree of cooperation between the City and the Developer. It is anticipated due to the term of this Agreement that refinements to the Project Approvals may be appropriate with respect to the details of performance of the City and the Developer. To the extent allowable by law, the Developer shall retain a certain degree of flexibility as provided herein with respect to all matters, items and provisions covered in general under this Agreement and exhibits thereto. When and if the Developer finds it necessary or appropriate to make changes, adjustments or clarifications, the Parties shall effectuate such changes, adjustments or clarifications through operating memoranda (" Operating Memoranda") approved by the Parties in writing, which reference this Section of the Agreement. Operating Memoranda are not intended to constitute an amendment to this Agreement but mere ministerial clarifications; therefore, public notices and hearings shall not be required. The City Attorney shall be authorized, upon consultation with the Developer, to determine whether a requested clarification may be effectuated pursuant to this Section or whether the requested clarification is of such character to constitute and amendment to the Agreement which requires compliance with the provisions of this Agreement pertaining to amendments. The authority to enter into such Operating Memoranda is hereby delegated to the City Manager, and the City Manager is hereby authorized to execute any Operating Memoranda hereunder without further City Council action.

13. Building Permits. Nothing set forth herein shall impair or interfere with the right of City to require the processing of building permits as required by law relating to any specific improvements proposed for the Project pursuant to the applicable provisions of the Code of Indio, inclusive of such Uniforms Codes as have been adopted in accord therewith, that are in effect at the time such permits are applied for; provided, however, no such permit processing shall authorize or permit City to impose any condition on and/ or withhold approval of any proposed improvement the result of which would be inconsistent with the Project Approvals, an approved Map, the Existing Regulations or the provisions of this Agreement.

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14. Design Review Approval(s). Nothing set forth herein shall impair or interfere with City' s right to conduct design review proceedings before its Planning Commission according to the Code of Indio and the SP as to any specific improvements proposed for the Project. However, City may within the sole discretion of its City Manager or Community Development Director, act administratively in granting approval as to specific improvements in lieu of formal design review approval via the Planning Commission.

15. Assignment and Transfer of Rights. City agrees that Developer may, at any time during the Term, subject to City' s approval rights described below, assign, convey, lease, sell or otherwise transfer the rights under this Agreement corresponding to any portion of the Property and/ or any approvals related thereto ("Assignable Rights") to a third party, a subordinate entity, or a related entity ( make an " Assignment"). Any party or entity proposing to make an Assignment of Assignable Rights hereunder will be referenced hereinafter as an " Assignor." Any party or entity acquiring or receiving Assignable Rights from Developer' s or Developer' s successor in interest will be referenced hereinafter as an " Assignee."

15. 1 City Approval Rights. In exercising its approval rights with respect to any proposed Assignment by Developer, City' s concern shall be whether a proposed Assignee: ( a) has the financial capacity to complete the development contemplated by this Agreement or the portion thereof proposed for Assignment ( the " Financial Capacity"), and ( b) whether a proposed Assignee is likely to comply with Developer' s duties and obligations per this Agreement or an amendment or restatement thereof (the Developer Obligations"). In making the second of these determinations, City will require and Assignor will cooperate in procuring a proposed Assignee' s formal written acceptance of and commitment to the fulfillment of Developer Obligations by that Assignee.

15. 2 Limit on Assignments. No Assignor shall undertake any Assignment of Assignable Rights if City has issued a notice of default to that Assignor pursuant to Section 24 and the duly noticed default in question has not been cured by that Assignor within the time for cure provided therein.

15. 3 Assignment Process. Any proposed Assignment by Developer or its successor in interest to a proposed Assignee of Assignable Rights shall be upon thirty ( 30) days' written notice to City. Assignments hereunder shall only be effective with City' s approval after appropriate Council or administrative action, which approval shall not be unreasonably withheld or delayed by City. Written notice of a proposed Assignment to City shall not be complete hereunder absent City receipt upon delivery from Assignor of Assignment documentation sufficient to assist City in determining whether to approve the Assignment in question (" Assignment Documentation").

Assignment Documentation shall in all instances include evidence of a proposed Assignee' s Financial Capacity and its acceptance of and agreement to develop in SCC/ INDIO CITRUS RANCH) L9YCITY OF INDIO DEVELOPMENT AGREEMENT CITY' S INITIALS 7_ IAGE23oF41 DEVELOPER' S INITIALS/

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1544 of 1638 accord with the Developer Obligations. Assignment Documentation shall also include written specification of the Assignable Rights involved and Assignee' s written assumption of Assignor's obligations under this Agreement as they relate to said Assignable Rights ( the "Assignment Specification"), The Assignment Specification shall be in a form suitable for recordation in the Official Records of Riverside County and shall in a form and manner acceptable to City state that Assignor shall be released from any and all obligations under this Agreement, all of which shall pass to the Assignee.

Assignor shall reimburse City for its actual costs incurred in connection with any Assignment, including but not limited to legal fees and administrative costs related thereto. Notwithstanding any statement in this Subsection 15. 3, City shall have the discretion, upon Developer' s request, to approve any proposed Assignment administratively via the signature of the City Manager or his/ her designee.

15.4 Transfers in Ownership not Subiect to City Approval Rights, Limits or Process. Notwithstanding anything stated in this Section 15, any transfer of the Property or any portion thereof, or any transfer of ownership in Developer to: ( a) a non - managing equity member of Developer, ( b) an entity that is at least fifty percent ( 50%) owned by entities controlled by, controlling or under common control with Developer or SCC Acquisitions, Inc., a California corporation, ( c) an entity managed by Developer or SCC Acquisitions, Inc., or managed by any entity controlling, controlled by, or under common control with Developer or SCC Acquisitions, Inc. ( herein a " SunCal Entity"), or d) a SunCal Entity for purposes of securing financing, shall not be considered an Assignment" and shall not require the consent of City hereunder. Developer shall provide City with fifteen ( 15) days' written notice of any such transfer to any entity addressed by this Section 15. 4.

15. 5 Release of Assignor. In any complete Assignment of all of Developer' s obligations hereunder, Developer shall include an express covenant by Assignee to render performance of all Developer duties and obligations per this Agreement, and Developer shall warrant that there has been no default under this Agreement prior to said Assignment. In exchange for this covenant to perform, and warranty of non -default, City shall release Developer, except as to such warranty, and as expressly provided in an Assignment based upon the scope of that Assignment, from obligations arising from and related to this Agreement.

16. Review for Compliance.

16. 1 Periodic Review. Annually during the term of this Agreement beginning with the one year anniversary of the Effective Date, the City shall review the good faith compliance by Developer with the terms of this Agreement. This review shall be limited in scope to compliance with the terms of this Agreement pursuant to CGC Section 65865. 1. During this review, Developer shall be required to demonstrate good faith compliance with the terms of this Agreement.

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16. 2 Procedure for Review. The Community Development Director shall review the Developer' s performance under this Agreement to ascertain whether Developer has complied in good faith with the terms of this Agreement. Upon request of the Community Development Director, Developer shall furnish such documents and information as may be reasonably required and available to Developer to enable the Community Development Director to make and complete the compliance review hereunder. At least ten ( 10) days prior to making the determination of the compliance hereunder, the Community Development Director shall provide to Developer copies of all staff reports ( except those containing privileged information) and other information relied upon by the Community Development Director in making such determination.

16. 3 Result of Review. If the Community Development Director finds good faith compliance by Developer with the terms of this Agreement, the Community Development Director shall issue an executed certificate of compliance, certifying good faith compliance with the terms of this Agreement through the period of the applicable periodic review. Such certificate of compliance shall be in recordable form and shall contain such information as may be necessary in order to impart constructive record notice of the finding of good faith compliance hereunder. Developer shall have the right to record the certificate of compliance in the Official Records of the County of Riverside.

If the Community Development Director, on the basis of substantial evidence, finds that Developer has not complied in good faith with the terms of this Agreement, the Community Development Director shall specify in writing the respects in which Developer has failed to comply. The Community Development Director shall provide Developer with notice of the finding of noncompliance, in the manner provided for Notices in this Agreement, together with written specification of the reasons therefore.

Such written notice shall also specify a reasonable time for Developer to meet the terms of compliance, which shall not be less than thirty ( 30) days and shall be reasonably related to the time necessary to bring Developer' s performance into good faith compliance with the terms of this Agreement.

16. 4 Appeals to the City Council. A determination of noncompliance by the Community Development Director shall be appealable by Developer to the City Council within thirty ( 30) days after receipt of the written notice of non- compliance specified hereinabove. If Developer appeals a determination of noncompliance hereunder to the City Council, then the City Council shall schedule a public hearing thereon not later than thirty ( 30) days after Developer files its notice of appeal. At such hearing, Developer shall be entitled to address all the issues considered by the Community Development Director. Developer' s evidence may be in writing or may be taken orally at the hearing before the City Council, or both. If, after receipt of any written response of Developer, and after considering all of the evidence of such public hearing, the City Council finds and determines, by a majority vote, on the basis of substantial evidence, that Developer has not complied in good faith with the terms and conditions of this Agreement, then the City Council shall specify to Developer the respects in which Developer has failed to comply, and shall also specify a reasonable time for Developer to meet the terms of compliance, which time shall not be less than

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1546 of 1638 thirty ( 30) days and shall be reasonably related to the time necessary to bring Developer' s performance into good faith compliance with the terms of this Agreement.

A determination by the City Council of noncompliance by Developer shall be in writing, delivered in accordance with the Notice section of this Agreement, and shall specify in detail the grounds therefore and all facts demonstrating such noncompliance, so that Developer may have the opportunity to implement any measures necessary to cure such noncompliance. If noncompliance specified by the City Council is not cured within 90 days or such longer period as reasonably required, then the City Council may, after noticed hearing, terminate or modify this Agreement. Should the City elect to modify this Agreement as a result of a default by Developer, such action shall not limit the right of the City to terminate the Agreement by reason of some other default, whether of a similar or dissimilar nature, in the future. No such modification shall change the rights or obligations of Developer without Developer's written consent.

16. 5 Failure of City to Act. Should the City fail in any year to issue a certificate of compliance or a notice of non- compliance within thirty 30 days after the annual anniversary of the Effective Date of this Agreement, Developer will be deemed to be in good faith compliance with this Agreement for the preceding term of the Agreement.

17. Amendment or Cancellation. This Agreement may be amended or canceled in whole or in part only by the written mutual consent of the Parties or in the manner provided in CGC § 65865. 1 or CGC § 65868.

18. Further Annexation of Adjacent Property. Developer may seek to annex properties adjacent to the Site, i.e., properties beyond the Sphere Parcels and the Outside Parcels, by an amendment to this Agreement. To the extent that any such annexation request may be permissible by law and determined by the Council, in its sole discretion, to promote the quality development envisioned by the Entitlement Applications in a fiscally responsible manner, City will approve such an annexation request and amend this Agreement to include any property involved therewith.

19. Coachella Valley Multi -Species Conservation Habitat Plan. The Parties understand and acknowledge that a Multi -Species Conservation Habitat Plan MSHCP") is being considered for adoption throughout the Coachella Valley and that the Site or a portion thereof may be affected by proposed MSHCP conservation areas.

The Parties further understand and acknowledge that the MSHCP may significantly limit, prohibit development and/ or unreasonably delay Site development. The Parties further understand and acknowledge that land immediately adjacent to an MSHCP conservation area may be adversely affected by such MSHCP. In regards to the MSHCP, on or about June 26, 2006, the City, County of Riverside, Coachella Valley Association of Governments and the Coachella Valley Conservation Commission entered into a memorandum of understanding " Concerning the Implementation of the Coachella Valley Multiple Species Habitat Conservation Plan Regarding Citrus Ranch" MSHCP MOU"). Although the original MSHCP failed to be adopted, a revised MSHCP

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1547 of 1638 is currently being prepared and will be circulated for consideration and approval by cities and agencies in the Coachella Valley including City. Because the Parties cannot determine at the time of execution of this Agreement the full affect of the proposed MSHCP, or if the MSHCP will be enacted, the City agrees to use its best commercially reasonable efforts to implement the MSHCP MOU. Likewise, Developer agrees to use its best commercially reasonable efforts to develop the Site in a manner consistent with the provisions of the MSHCP MOU. Furthermore, since the Developer has agreed not to exceed the constraints of the MSHCP MOU in its development of the Project, the City agrees that it will not enter into a revised MSHCP inconsistent with the MSHCP MOU without Developer' s consent.

20. Annexation.

20. 1 Contemplated LAFCO Action. The Parties recognize that the Site includes land that is both within and outside of City' s SOI and subject to annexation.

City will be the sole applicant with respect to the annexation of approximately twentyfive ( 25) square miles to Indio' s SOI, along the Dillon Road " corridor" and from Indio Hills South to Washington Street (the "Indio SOI Expansion"). City anticipates filing the Indio SOI Expansion application with LAFCO prior to or shortly after this Agreement' s consideration by the City Council. In addition, subsequent to City Council certification of the EIR, City will apply to LAFCO for a Project -specific expansion, roughly one thousand five hundred ( 1, 500) square acre in size, of the City' s SOI to include all Outside Parcels therein, and a corresponding annexation of all Sphere Parcels and Outside Parcels to the City ( the " Citrus Ranch Annexation"). The Parties further recognize that CGC § 65865( b) authorizes the City to enter into a development agreement with Developer only for property that is within the City' s SOL The Parties further agree and understand that prior to the contemplated annexation, this Agreement shall function as a pre -annexation agreement with respect to the Property and bind the Parties as such.

20. 2 Contemplated Parties' Action. Upon LAFCO approval of either the Indio SOI Expansion or the Citrus Ranch Annexation, either approval bringing the Outside Parcels within the City' s SOI, the Parties agree, within sixty ( 60) days, to prepare and process an amendment to this Agreement subjecting the Outside Parcels to this Agreement as a development agreement. The Parties intend that such an amendment shall neither trigger any new environmental analysis nor subject the Project to additional burdens. The Parties agree that the amendment shall be in the form attached hereto as Exhibit " G" and incorporated herein by this reference. The Parties agree that if LAFCO denies the Citrus Ranch Annexation, or any successor annexation application prepared by either of the Parties, the Parties will negotiate in good faith to preserve this Agreement and the Project Approvals to the maximum extent that same may be consistent with that denial and the Parties' commercial concerns.

Notwithstanding this commitment to negotiate in good faith, Developer reserves the absolute right to terminate this Agreement in the event that LAFCO denies the Citrus SCC/ INDIO CITRUS :;#
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CITY OF INDIO DEVELOPMENT AGREEMENT

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1548 of 1638 EXHIBIT " G"
OFTHE

DEVELOPMENT AGREEMENT

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Indio
100 Civic Center Mall
P. O. Box Drawer 1788
Indio, CA 92202
Attention: City Clerk

SPACE ABOVE THIS LINE FOR RECORDER' S USE
Recording Fee Exempt per Govenunent Code §6103

FIRST AMENDMENT TO DEVELOPMENT AND PRE -ANNEXATION AGREEMENT

THIS FIRST AMENDMENT TO DEVELOPMENT AND PRE -ANNEXATION AGREEMENT (" First Amendment") is made, entered into and shall be deemed effective this day of 2007 (" First Amendment
Effective Date"), by and between the CITY OF INDIO, a California Municipal Corporation City") and SCC/ Indio Citrus Ranch, LLC, a Delaware Limited Liability Company Developer"). City and Developer are sometimes referenced together herein as the " Parties." In instances when a provision hereof applies to each of the Parties individually, either of the Parties may be referenced as a " Party." The Parties hereby jointly render the following statement as to the background facts and circumstances underlying this First Amendment.

RECITALS
A. On a Development and Pre -Annexation
Agreement between the Parties, designated number ( DA 06- 10- 22) (" Agreement"), became effective relative to real property comprising a development area approximately one thousand one hundred and eighty three ( 1, 183) acres in size and located north of the City and west of Dillon Road known as the Citrus Ranch project.

All of the defined terms in the Agreement shall have the same meaning for purposes of this First Amendment.

B. As set forth in the Agreement, the approved Project consisted of both land within and outside the City' s Sphere of Influence (" SOI"). The Parties recognized at the time the Agreement was executed that the Agreement would need to be amended and re -adopted by the City pursuant to California Government Code § 65865( b) in order to perfect the rights and obligations of the Parties relative to the Outside Parcels.

SCC/ INDIO CITRUS RANCH, LLC/ CITY OF INDIO DEVELOPMENT AGREEMENT PAGG I OF 8
CITY' S INITIALS _/ DEVELOPER' S INITIALS
Exhibit G Page I of 8

Page 160 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1549 of 1638 C. The Project is now fully within the City's SOL This First Amendment is intended to re -adopt the Citrus Ranch Agreement in order to perfect the rights and obligations of the Parties for the entire Project.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties do hereby agree as follows:

1. Binding Effect of First Amendment. The Parties agree that the Recitals above are true and correct and intend to be bound by same. The Parties further agree to the incorporation by reference herein of said Recitals, together with all definitions provided and exhibits referenced therein. This First Amendment pertains to the Site as described in Exhibit " A" and Exhibit " A- 1" of the Agreement The burdens of this First Amendment are binding upon, and the benefits of this First Amendment inure to, all successors -in -interest of the Parties and constitute covenants which run with the Property. In order to provide continued notice thereof, the Parties will record this First Amendment in the public records of Riverside County.

2. Adoption of Development Agreement as to Outside Parcels. The Parties hereby adopt the Agreement as a development agreement with regards to the Outside Parcels. With this First Amendment, the entire Project shall be subject to the terms and conditions of the Agreement as a development agreement. All other terms and conditions of the Agreement shall remain in full force and effect. The adoption of this First Amendment shall not effect the Agreement in any other way.

3. Vesting of Project Rights.

3. 1 Vested Rights to Develop. Developer shall have the vested right to develop the entire Project during the Term of the Agreement in accordance with the SP and other Project Approvals.

3. 2 Legally Binding Contract. Except as otherwise provided by State law, it is the expressed intent of City and Developer that this First Amendment combined with the Agreement constitute a legally binding contract.

4. Counterparts. This First Amendment may be executed in one or more counterparts, each of which will be deemed an original, but all of which constitute one and the same instrument.

5. Execution of Agreement. The Parties shall sign this First Amendment on or within ten ( 10) business days of the First Amendment Effective Date.

6. Headings. The headings in this First Amendment are inserted for convenience only. They do not constitute part of this Agreement and shall not be used in its construction.

SCC/ INDIO CITRUS RANCH, LLC/ CITY OF INDIO DEVELOPMENT AGREEM ENT PAGE 2 of., 8
CITY' S INITIALS-1 DEVELOPER' S INITIALS - I--
Exhibit G Page 2 of 8

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1550 of 1638

7. Jointly Drafted. It is agreed among the Parties that this First Amendment was jointly negotiated and jointly drafted by the Parties and their respective counsel, and that it shall not be interpreted or construed in favor of or against any Party solely on the ground that it drafted the First Amendment. It is also agreed and represented by all Parties that said Parties were of equal or relatively equal bargaining power and that in no way whatsoever shall this Agreement be deemed to be a contract of adhesion, or unreasonable or unconscionable.

8. Independent Le -gal Counsel. Each Party acknowledges that it has been represented by independent legal counsel of its own choice throughout all of the negotiations that preceded the execution of this First Amendment or has knowingly and voluntarily declined to consult legal counsel, and that each Party has executed this First Amendment with the consent and on the advice of such independent legal counsel.

9. Further Cooperation. The Parties agree to execute any and all agreements, documents or instruments as may be reasonably necessary in order to fully effectuate the agreements and covenants of the Parties contained in this First Amendment, or to evidence this First Amendment as a matter of public record, if required to fulfill the purposes of the Agreement or this First Amendment. The Parties further agree to mutually cooperate with one another in carrying out the purposes of this First Amendment.

10. Enforceability. This First Amendment shall not become binding and shall have no force and effect whatsoever until such time as it has been approved by the City Council pursuant to a duly enacted ordinance and fully executed by and delivered to all of the Parties hereto.

SCC/ INDIO CITRUS RANCH, LLC/ CITY OF INDIO DEVELOPMENT AGREEMENT PAGE 3 or 8
CITY' S INITIALS_/ DEVELOPER' S INITIALS_/_
Exhibit G Page 3 of 8

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1551 of 1638 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the First Amendment Effective Date.

Signatures on following pages]
Exhibit G Page 4 of 9

Page 163 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1552 of 1638 CITY" CITY OF INDIO,
California Municipal Corporation
Date: By:
2006

STATE OF CALIFORNIA

COUNTY OF
Mayor
Attest:

Cynthia Hernandez, City Clerk, CIVIC
Approved as to form:

Woodruff, Spradlin & Smart, APC
Edward Z. Kotkin, Esq.

City Attorney, City of Indio
On , before me, personally appeared,
personally known to me or proved to me on the basis of
satisfactory evidence to be the person( s) whose name( s) is/ are subscribed to the within instrument and acknowledged to me that he/ she/ they executed the same in his/ her/ their authorized capacity(ies), and that by his/ her/their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.

WITNESS my hand and official seal.

Signatureof Notary
SCC/ INDIO CITRUS RANCH, LLC/CITY Or INDIO DEVELOPMENT AGREEMENT PAGE 5 Or 8

CITY' S INITIALS / DEVELOPER' S INITIALS /
Exhibit G Page 5 of 8

Page 164 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1553 of 1638 STATE OF CALIFORNIA }
ss
COUNTY OF }
On before me, , personally appeared,
personally known to me or proved to me on the basis of
satisfactory evidence to be the person( s) whose name( s) is/ are subscribed to the within instrument and acknowledged to me that he/ she/ they executed the same in his/ her/their authorized capacity(ies), and that by his/ her/their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature ofNotary
STATE OF CALIFORNIA }
ss
COUNTY OF }
On before me, , personally appeared,
personally known to me or proved to me on the basis of
satisfactory evidence to be the person( s) whose name( s) is/ are subscribed to the within instrument and acknowledged to me that he/ she/ they executed the same in his/ her/ their authorized capacity(ies), and that by his/ her/their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature of Notary

SCGINDIO CITRUS RANCH, LLC/ CITY OF INDIO DEVELOPMENT AGREEMENT PAGE 6 oi, 8
CITY' S INITIALS !_ DEVELOPER' S INITIALS
Exhibit G Page 6 of 8

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1554 of 1638 DEVELOPER"
Date:

SCC/ Indio Citrus Ranch, LLC, a Delaware
Limited Liability Company
By:

NAME
2006 TITLE
Approved as to form:

Ferguson & Bernheimer
Un
Robert A. Bernheimer, Esq.

Attorney for Developer

SCC/ INDIO CITRUS RANCH, LLC/ CITY OF INDIO DEVELOPMENT AGREEMENT PAGIs 7 OF 8 CITY'
S INITIALS _/_ DEVELOPER' SINITIALS / Exhibit
GPage 7of 8

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1555 of 1638

STATE OF CALIFORNIA

COUNTY OF
On , before me, personally appeared,
personally known to me or proved to me on the basis of
satisfactory evidence to be the person( s) whose name( s) is/ are subscribed to the within instrument and acknowledged to me that he/ she/ they executed the same in his/ her/ their authorized capacity(ies), and that by his/her/their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature of Notary

STATE OF CALIFORNIA

COUNTY OF
ss
On , before me, personally appeared,
personally known to me or proved to me on the basis of
satisfactory evidence to be the person( s) whose name( s) is/are subscribed to the within instrument and acknowledged to me that he/ she/ they executed the same in his/ her/ their authorized capacity(ies), and that by his/her/their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature of Notary

SCC/ INDIO CITRUS RANCH, LLUCITY OF INDIO DEVELOPMENT AGREEMENT Pn ce 8 or 8
CITY' S INITIALS /_ DEVELOPER' S INITIALS
Exhibit G Page 8 of 8

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1556 of 1638 Ranch Annexation, or any successor annexation application prepared by either of the Parties.

20. 3 Development of Annexed Property. The Parties agree that upon City approval of an amendment substantially similar to Exhibit " G," the rights of Developer to develop the Project upon the newly annexed Outside Parcels in accord with the SP and the Other Project approvals as set forth in this Agreement shall vest and become equivalent to the vested rights described above in Section 4. 1.

21. Preemption or Frustration of Agreement by Changes in Law. In the event that any Party has or acquires actual knowledge that: ( a) State or Federal law or regulations enacted after the Effective Date preempt this Agreement or City' s authority to perform hereunder, or ( b) the action or inaction of any governmental agency or quasi - public entity arising from or related to this Agreement, apart from City or any instrumentality thereof, frustrates compliance with one or more provisions of this Agreement as a matter of law, such a Party shall:

21. 1 Provide Notice. Provide the other Party with written notice of such State or Federal law or regulation, a copy of such law or regulation and a statement identifying how such law regulation conflicts with the provisions of this Agreement.

21. 2 Meet and Confer. Upon notice by one Party to another as to preemption or frustration of this Agreement by law or regulation, the Parties shall promptly meet and confer in good faith and make a reasonable attempt to modify or amend this Agreement to comply with such applicable Federal or State law or regulation. If the Parties cannot agree on a manner or method to comply with such Federal or State law or regulation, the Parties shall follow the Dispute Resolution procedures set forth in this Agreement.

22. Indemnification During Construction. During the period of the Project' s construction on the Site and until such time as City has accepted the construction of all improvements and released any bonds applicable thereon pursuant to applicable provisions of law, Developer agrees to and shall indemnify and hold City and its agencies, agents, attorneys, contractors, employees, officers, officials and servants harmless from and against any and all liability, loss, damage, costs or expenses including reasonable attorneys' fees payable to legal counsel of City' s choice and court costs) ( a " Loss") arising out of or as a result of the death of any person or any accident, injury, loss or damage whatsoever caused by any act on the Site by, or any errors or omissions of Developer or its agents, servants, employees or contractors. The Parties understand that the Developer' s obligation to indemnify the City may extend beyond the Term of this Agreement if there is a claim made after the expiration or termination of this Agreement for a Loss that occurred or is alleged to have occurred during the Term of this Agreement. Developer shall not be responsible for, and such indemnity shall not apply to, all acts, errors or omissions of City, its agencies, agents, attorneys, contractors, employees, officers, officials and servants.

SMINDIO CITRUS] CH L / CITY OF INDIO DEVELOPMENT AGREEMENT AGE 28 OF 41
CITY' S INITIALS DEVELOPER' S INITIALS " I

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1557 of 1638

23. Defense of Agreement. The City agrees to and shall timely take all actions which are necessary or required to uphold the validity and enforceability of this Agreement and associated Project Approvals. If this Agreement is adjudicated and determined to be invalid or unenforceable, the City agrees, subject to all legal requirements, to consider and implement all modifications to this Agreement and Project Approvals which are necessary or required to render them valid and enforceable to the extent permitted by law.

24. Enforced Delay and Extension of Times of Performance. In addition to specific provisions of this Agreement, performance by Developer hereunder shall not be deemed by City to be in default where delays or defaults are demonstrated by substantial evidence to be enforced due to any Development Limitation( s) delineated above in Sections 3. 1. 1. An extension of time in writing for any such cause shall be granted by City to Developer for the period of the enforced delay, or longer as mutually agreed upon, which period shall commence to run from the time of commencement of such cause. Nothing in the provisions of this Section shall imply that the Parties believe that under applicable law, the provisions of this Agreement may be affected by an injunction or moratorium or other " no growth" or " slow growth" measures.

25. Breach and Remedies. Notwithstanding any provision of this Agreement to the contrary, Developer shall not be deemed to be in default under this Agreement with respect to any obligation owed solely to City, and City may not terminate or modify Developer' s rights under this Agreement, unless City shall have first delivered a written notice of any alleged default to Developer that specifies the nature of such default and complies with the requirements of Section 16 with respect to non-compliance. Default by any assignee or Developer' s successor in interest shall affect only that portion of the Site owned by such assignee or successor, and shall not cancel or diminish in any way Developer' s rights with respect to any portion of the Site not owned by such assignee or successor.

25. 1 Specific Performance. In the event that a breach of this Agreement occurs, irreparable harm is likely to occur to the non -breaching Party and damages will be an inadequate remedy. To the extent permitted by law, therefore, it is expressly recognized that injunctive relief and specific enforcement of this Agreement are proper and desirable remedies, and it is agreed that any claim by Developer against City or by City against Developer for an alleged breach of this Agreement shall be remedied by injunctive relief or an appropriate action for specific enforcement of this Agreement and not by a claim or action for monetary damages, unless the claim is for payment of funds due and owing a Party pursuant to this Agreement.

26. Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be either personally delivered ( which shall include delivery by means of professional overnight courier service which confirms receipt in writing [ such as Federal Express or UPS] ), sent by telecopier or facsimile

SCC/ INDIO CITRUS RANCH, LW/CITY OF INDIO DEVELOPMENT AGREEMENT CITY' S INITIALS / aAGE29OF41 DEVELOPER' S INITIALS 1 /

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1558 of 1638 machine capable of confirming transmission and receipt (" Fax") so long as the writing shall also be sent by regular mail or other form of delivery specified in this Section, or sent by certified or registered mail, return receipt requested, postage prepaid to the following Parties at the following addresses or numbers:

If to City: City of Indio
100 Civic Center Mall
Indio, California 92201
Attention: City Manager and City Attorney
Telephone: ( 760) 342- 6580; Fax: ( 760) 342- 6556
With copy to: Woodruff, Spradlin & Smart
701 S Parker Steet, Suite 8000
Orange, California 92868-4760
Attention: Edward Z. Kotkin, City Attorney
Telephone: ( 714) 558- 7000; Fax: ( 949) ( 714) 835- 7787 If to Developer: SCC/ Indio Citrus Ranch, LLC
c/o SunCal Companies
1250 Corona Pointe Circle, Suite 210
Corona, California 92879
Attention: Stan Brown, Division President
Telephone: (951) 271- 3800; Fax (951) 271- 3850
And with a copy to
SCC/ Indio Citrus Ranch, LLC
c/ o SunCal Companies
2392 Morse Avenue
Irvine, CA 92614
Attention: General Counsel
Telephone: ( 949) 777- 4000; Fax ( 949) 777- 4280
And With copy to: Ferguson & Bernheimer
73101 Highway 111, Suite 1
Palm Desert, California 92260
Attention: Robert A. Bernheimer, Esq.

Telephone: ( 760) 776- 8233; Fax: ( 760) 776- 8255
Notices sent in accordance with this Section shall be deemed delivered upon the:
a) date of delivery as indicated on the written confirmation of delivery ( if sent by overnight courier service); ( b) date of actual receipt ( if personally delivered by other means); ( c) date of transmission if sent by telecopier or facsimile machine; or (d) date of SCC/ INDIO CITRUS RANCH, I;; LC/ TY OF INDIO DEVELOPMENT AGREEMENT E30OF41

CITY' S INITIALS DEVELOPER' S INITIALS I /

Page 170 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1559 of 1638 delivery as indicated on the return receipt ( if sent by certified or registered mail, return receipt requested). Notice of change of address shall be given by written notice in the manner detailed in this Section.

27. Dispute Resolution. The parties desire to quickly resolve any dispute as to this Agreement, with as little expense as possible. Accordingly:

27. 1 Mediation. The parties agree to mediate any dispute or claim arising between them arising out of this Agreement before resorting to arbitration, court action or submitting the matter to a referee. The Parties shall attempt to mutually agree upon a mediator. The Parties shall first attempt to seek a retired judge or experienced attorney to act as mediator. If the Parties cannot mutually agree upon a mediator, each of the Parties shall select a retired judge or experienced attorney to act as mediator selectors. The mediator selectors shall then agree on a third individual to act as a mediator selector. These three mediator selectors shall then select the mediator by majority vote. Mediation fees, if any, shall be divided equally among the Parties involved. Each Party shall bear its own attorney fees incurred in connection with the preparation for or attendance at the mediation. Refusal to mediate by any Party shall make that Party responsible for all of the attorney fees and costs of the other Party in any litigation, arbitration, referee proceeding, or other legal action or proceeding of any kind, notwithstanding which Party is the prevailing Party.

27.2 Iniunctive Relief. If injunctive or other immediate relief is necessary, the Party seeking such relief may initially forgo mediation, seek the necessary relief, and then pursue mediation once the injunctive or other immediate relief is sought. The Parties shall stipulate to stay any court proceeding pending attempted resolution by mediation.

27. 3 Referee Proceedings. Each controversy, dispute or claim between the Parties arising out of or relating to this Agreement, which controversy, dispute or claim is not settled in writing within thirty ( 30) days after the " Claim Date," as hereinafter defined, or through mediation as set forth hereinabove, will be settled by a reference proceeding in Riverside County, California, in accordance with the provisions of California Code of Civil Procedure (" CCP") § 638 et seq., or their successor sections, which shall constitute the exclusive remedy for the settlement of any controversy, dispute or claim concerning this Agreement, including whether such controversy, dispute or claim is subject to the reference proceeding, and the Parties hereby waive their respective rights to initiate any legal proceedings against each other in any court or jurisdiction. As used herein, " Court" shall mean the Superior Court of Riverside, Indio Branch. The referee shall be a retired judge or commissioner of the Court or an attorney or other qualified person selected by mutual agreement of the Parties. If the Parties cannot so agree to a referee within forty-five (45) days after the Claim Date, the Presiding Judge of the civil division of the Court ( or his/ her representative) shall promptly and unilaterally select the referee. The referee shall be appointed to sit as a temporary judge, with all the powers of a temporary judge, as authorized by law, and SCC/ INDIO CITRUS RAj$ H, C/ CITY OF INDIO DEVELOPMENT AGREEMENT J
PAGE 31 OF 41
klCITY' S INITIAL// DEVELOPER' S INITIALS /_

Page 171 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1560 of 1638 upon selection should take and subscribe to the oath of office as provided for in Rule 244 of the California Rules of Court ( or any subsequently enacted Rule). Each Party shall have one peremptory challenge pursuant to CCP § 170.6. The referee shall: ( a) be requested to set the matter for hearing within sixty ( 60) days after the Claim Date and ( b) try any and all issues of law or fact and report a statement of decision upon them, if possible, within ninety ( 90) days of the Claim Date. Any decision rendered by the referee will be treated as the equivalent of the same decision by the Court and judgment shall be entered thereon pursuant to CCP § 644 in any court in the State of California having jurisdiction. Any Party may apply for a reference commencing on the date thirty ( 30) days after serving notice to any other Party of the nature of the controversy, dispute or claim (" Claim Date") by filing a petition for a hearing and/ or trial.

All discovery shall be directed by the referee with the goal of effectuating the Parties' desire to minimize delay and expense. The referee may shorten any statutory time period in his/ her discretion.

27. 4 Procedures. Except as expressly set forth in this Agreement, the referee shall determine the manner in which the reference proceeding is conducted, including the time and place of all hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any Party so requests, a court reporter will be used at any hearing conducted before the referee. The Party making such a request shall have the obligation to arrange for and pay for the court reporter.

The costs of the court reporter at the trial shall be borne equally by the Parties.

27. 5 Power. The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, to provide all temporary and/ or provisional remedies and to enter equitable orders that will be binding upon the Parties. The referee shall issue a single judgment at the close of the reference proceeding which shall dispose of all of the claims of the Parties that are the subject of the reference. The Parties hereto expressly reserve the right to contest or appeal from the final judgment or any appealable order or appealable judgment entered by the referee. The Parties hereto expressly reserve the right to findings of fact, conclusions of law, a written statement of decision, and the right to move for a new trial or a different judgment, provided that the rules with respect thereto shall be those applicable had the matter been tried in the superior court.

27. 6 Code of Civil Procedure Section 1298(c) Notice. The following notice is given to the extent required by Code of Civil Procedure Section 1298( c) and is not intended to alter or affect the interpretation or meaning of the provisions contained in this Section:

SCC/ INDIO CITRUS ZIPAGECITY OF INDIO DEVELOPMENT AGREEMENT 32 OF 41

CITY' S INITIALSDEVELOPER' S INITIALS/

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1561 of 1638 NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE " REFEREE PROCEEDINGS" PROVISIONS RECITED ABOVE DECIDED BY NEUTRAL REFEREE

AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU

MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW, YOU ARE GIVING UP YOUR

JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE " REFEREE PROCEEDINGS" PROVISIONS. IF

YOU REFUSE TO SUBMIT TO REFEREE PROCEEDINGS AFTER AGREEING TO

THIS PROVISION, YOU MAY BE COMPELLED TO REFEREE PROCEEDINGS UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE.

YOUR AGREEMENT TO THIS REFEREE PROCEEDINGS PROVISION IS VOLUNTARY.

WE HAVE READ AND UNDERSTAND THE FOREGOING, AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE " REFEREE PROCEEDINGS" PROVISION TO A REFEREE:

CITY'S INITIALS / DEVELOPER' S INITIALS /

28. Entire Agreement. This Agreement and the Exhibits herein contain the entire integrated agreement among the Parties. The Parties intend that this Agreement state their agreement in full to each and every one of its provisions. Any prior agreements, understandings, promises, negotiations or representations respecting the matters dealt with herein or the duties of any Party in relation thereto, not expressly set forth in this Agreement, are agreed by all Parties to be null and void.

29. Severability. If any term, provision, condition, or covenant of this Agreement, or the application thereof to any Party or circumstance, shall to any extent be held invalid or unenforceable, the remainder of the instrument, or the application of such term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

30. Attorneys' Fees. In the event any Party hereto brings an action or proceeding for a declaration of the rights of the Parties, for injunctive relief, for an alleged breach or default, or any other action arising out of this Agreement, or the transactions contemplated hereby or institutes a reference or arbitration proceeding as may expressly be permitted by the terms of this Agreement, the prevailing party in any such action shall be entitled to an award of actual attorneys' fees and costs incurred in such action or proceeding, without regard to any rule of court or schedule of such fees maintained by the court, in addition to any other damages or relief awarded, regardless of whether such action proceeds to final judgment. Prevailing party within the meaning of this Section shall include, without limitation, a party who successfully brings an action SCC/ INDIO CITRUS RAN " / CITY OF INDIO DEVELOPMENT AGREEMENT AGE 33 OF 41
t
CITY' S INITIALS DEVELOPER' S INITIALS/_

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1562 of 1638 against the other party for sums allegedly due or performance of covenants allegedly breached, or that party who obtains substantially the relief sought in the action.

31. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which constitute one and the same instrument.

32. Execution of Agreement. The Parties shall sign this Agreement on or within ten ( 10) business days of the Effective Date.

33. Estoppel Certificate. City shall, at any time and from time to time within ten ( 10) days after receipt of written notice from Developer so requesting, execute, acknowledge and deliver to Developer a statement in writing: ( a) certifying that this Agreement is unmodified and in full force and effect ( or, if modified, stating the nature of such modification and certifying that this Agreement, as so modified, is in full force and effect); ( b) acknowledging that there are no uncured defaults on the part of Developer hereunder or specifying such defaults if any are claimed; and ( c) addressing such other reasonable and customary matters as Developer my request. Any such statement may be relied upon by any prospective purchaser or encumbrances of all or any portion of the Site. Upon Developer' s written request, City shall issue a certificate of performance evidencing completion of any of Developer' s obligation( s) under this Agreement.

34. Encumbrances on Real Property.

34. 1 Discretion to Encumber. The Parties hereto agree that this Agreement shall not prevent or limit Developer, in any manner, at Developer' s sole discretion, from encumbering the Site or any portion thereof or any improvements thereon then owned by such person with any mortgage, deed of trust or other security device (" Mortgage") securing financing with respect to the Site or such portion. City acknowledges that the lenders providing such financing may require certain modifications, and City agrees, upon request, from time to time, to meet with Developer and/ or representatives of such lenders to negotiate in good faith any such request for modification. City further agrees that it will not unreasonably withhold its consent to any such requested modification. Any mortgagee or trust deed beneficiary of the Site or any portion thereof or any improvements thereon and its successors and assigns Mortgagee") shall be entitled to the following rights and privileges.

34. 2 Lender Requested Modification/ Interpretation. City agrees upon request, from time to time, to meet with the Developer and representatives of lenders to negotiate in good faith any such request for interpretation, modification or Operating Memoranda. The City will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement, provided, further, that any modifications of this Agreement are subject to the provisions of this Agreement relative to modifications or amendments.

SCC/ INDIO CITRUS RAN C/ CITY OF INDIO DEVELOPMENT AGREEMENT Pace 34 OF 41
CITY' S INITIALS_ DEVELOPER' S INITIALS/_

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1563 of 1638

34. 3 Mortgage Protection. This Agreement shall be superior and senior to the lien of any Mortgage. Notwithstanding the foregoing, no breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any Mortgage made in good faith and for value, and any acquisition or acceptance of title or any right or interest in or with respect to the Site or any portion thereof by a Mortgagee ( whether pursuant to a Mortgage, foreclosure, trustee' s sale, deed in lieu of foreclosure or otherwise) shall be subject to all of the terms and conditions of this Agreement.

34. 4 Mortgagee Not Obligated. No Mortgagee will have any obligation or duty under this Agreement to perform the obligations of Developer or other affirmative covenants of Developer hereunder, or to guarantee such performance, except that to the extent that any covenant to be performed by Developer is a condition to the performance of a covenant by City, the performance thereof shall continue to be a condition precedent to City's performance hereunder. No Mortgagee will be liable for any monetary defaults arising prior to its acquisition of title to the Site or any portion thereof.

34. 5 Written Notice of Default. Each Mortgagee shall be entitled to receive written notice from City of any default by Developer under this Agreement, if such default is not cured within thirty (30) days, provided such Mortgagee has delivered a written request to City for such notice. Each Mortgagee shall have a further right, but not the obligation, to cure such default for a period of thirty ( 30) days after receipt of such notice of default or for such longer period as may reasonably be required to cure such default, provided however that the period of time for cure of any default requiring control of the Property shall be tolled during the pendency of any proceedings, including foreclosure proceedings, by Mortgagee to obtain control of the Property.. Any non - curable defaults of Developer of any obligation owed solely to City arising prior to Mortgagee' s acquisition of title to the Site or any portion thereof shall be waived; provided, however, the non- payment of money shall not be deemed a non -curable default.

35. Binding Effect. This Agreement shall be binding on and inure to the benefit of the Parties to this Agreement and their heirs, personal representatives, successors, and assigns.

36. Governing Law and Venue. This Agreement and the legal relations between the Parties shall be governed by and construed in accordance with the laws of the State of California. Furthermore, the Parties agree to venue in the Indio Branch of the Consolidated Courts of Riverside County, California.

37. Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement (" Successors"). All provisions of this Agreement shall be enforceable as equitable servitude' s and constitute covenants running with the land.

SCC/ INDIO CITRUS RAN cL / CITY OF INDIO DEVELOPMENT AGREEMENT AGE 35 OF 41
V
CITY' S INITIALS DEVELOPERS INITIALS /_

Page 175 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1564 of 1638 Each covenant to do or refrain from doing some act hereunder with regard to development of the Project: ( a) is for the benefit of and is a burden upon every portion of the Property; ( b) runs with the Property and each portion thereof; and, ( c) is binding upon each Party and each Successor during its ownership of the Property or any portion thereof. From and after recordation of this Agreement, the Agreement shall impute notice to all persons and entities in accord with the recording laws of this State.

38. No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the Parties and their Successors and assignees.

No other person or entity shall have any right of action based upon any provision of this Agreement.

39. Waiver. Failure by a Party to insist upon the strict performance of any of this Agreement' s provisions by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party' s right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter. The waiver by any Party to this Agreement of a breach of any provision of this Agreement shall not be deemed a continuing waiver or a waiver of any subsequent breach of that or any other provision of this Agreement.

40. Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

41. Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the County Recorder by the City Clerk within the period required by CGC § 65868. 5.

42. Headings. The headings in this Agreement are inserted for convenience only. They do not constitute part of this Agreement and shall not be used in its construction.

43. Jointly Drafted. It is agreed among the Parties that this Agreement was jointly negotiated and jointly drafted by the Parties and their respective counsel, and that it shall not be interpreted or construed in favor of or against any Party solely on the ground that it drafted the Agreement. It is also agreed and represented by all Parties that said Parties were of equal or relatively equal bargaining power and that in no way whatsoever shall this Agreement be deemed to be a contract of adhesion, or unreasonable or unconscionable.

44. Independent Legal Counsel. Each Party acknowledges that it has been represented by independent legal counsel of its own choice throughout all of the negotiations that preceded the execution of this Agreement or has knowingly and voluntarily declined to consult legal counsel, and that each Party has executed this Agreement with the consent and on the advice of such independent legal counsel.

SCC/ INDIO CITRUS RACC/ CITY OF INDIO DEVELOPMENT AGREEMENT CE 36 of 41

CITY' S INITIALS DEVELOPER' S INITIALS /

Page 176 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1565 of 1638

45. Rule Against Perpetuities. This Agreement shall be construed by all interested parties, to the maximum extent possible, to be consistent with, and not in violation of, the Rule Against Perpetuities.

46. Further Cooperation. The Parties agree to execute any and all agreements, documents or instruments as may be reasonably necessary in order to fully effectuate the agreements and covenants of the Parties contained in this Agreement, or to evidence this Agreement as a matter of public record, if required to fulfill the purposes of this Agreement. The Parties further agree to mutually cooperate with one another in carrying out the purposes of this Agreement.

47. Enforceability. This Agreement shall not become binding and shall have no force and effect whatsoever until such time as it has been approved by the City Council pursuant to a duly enacted ordinance and fully executed by and delivered to all of the Parties hereto.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the Effective Date.

Signatures on following pages]

SCCIINDIO CITRUS R C/ CITY OF INDIO DEVELOPMENT AGREEMENT PAGE 37 OF 41
CITY' S INITIALS DEVELOPER' S INITIALS /_

Page 177 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1566 of 1638 CITY"
Date:

STATE OF CALIFORNIA }
l } ss

COUNTY OF

CITY OF INDIO,
a California Mun
Mayor
Attest:

Cy is Hernandez, City Clerk, C
Approved as to form:

Woodruff, Spradlin & Smart, APC
Edward Kotkin, Esq.

City Attorney, City of Indio
On e 7 7 7 before me,`i` " personally appeared,
2 02 e
personally known to me or proved to me on the basis
of satisfactory eVidence to be the person( s) whose name( s) is/ are- subscribed to the within instrument and acknowledged to me that he/ she4hey executed the same in his/ her/their authorized capacity( ie and that by his/ 4&4their signature( s) on the instrument the person( s), or the entity upon behalf of which the person( s) acted, executed the instrument.

WITNESS my hand and official seal.

Sign9ture of Notary
CYNTHIfENANDU momission #
15Cl2418N
RlvelMy ycc; 7
B,. ROG9
SCC/ INDIO CITRUS RANc} ij L
C1,CITY OF INDIO

DEVELOPMENT AGREEMENT AGE

INITIALS,,
38 DEVELOPER'
OF
S
41 INITIALS/_
CITY'S

Page 178 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1567 of 1638

STATE OF CALIFORNIA

COUNTY OF
ss
On before me, personally ap eared,
personally known to me or proved to me the basis
of satisfactory evidence to be the person( s) whose name( s) is/ are sub ribed to the within instrument and acknowledged to me that he/ she/ they execut d the same in his/ her/ their authorized capacity( ies), and that by his/ her/ their signature( s) on the instrument the person( s), or the entity upon behalf of which We person( s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature of Notary

STATE OF CALIFORNIA

COUNTY OF
On
of satisfactory evidence
within instrument and
his/ her/their authorized
instrument the perso'n(,,
executed the instrument.
ss
before me, , personally appeared,
personally known to me or proved to me on the basis
td be the person( s) whose name( s) is/ are subscribed to the knowledged to me that he/ she/ they executed the same in capacity( ies), and that by his/ her/ their signature( s) on the or the entity upon behalf of which the person( s) acted, WITNESS my hand and official seal.

Signature of Notary

SCC/ INDIO CITRUS RANC L ' CITY OF INDIO DEVELOPMENT AGREEMENT A OF 41

CITY' S INITIALS
l
DEVELOPER' S INITIALS V r /

Page 179 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1568 of 1638 am ' 4)& are subscribed to the
xecuted the same in
iis aiF- signatureO on the
of which the person N acted,
DEVELOPER" SCC/ Indio Citrus Ranch, LLC, a
Delaware Limited Liability Company
Date'
2007 / qy
Bruce Elie# GY
CoM. c:

Approved as to form:

Bruce Cook, Esq.

General Counsel to SCC/ Indio Citrus
Ranch, LLC
STATE OF CALIFORNIA }
r }
COUNTY OF 1 }
ss
6On `J "ZGl 1 before me,
kLe- U 7 ; lU personally known t
e the personKs) whose
within instrument and acknowledg d to m thatCh
his/ her/their authorize capacity( ie ), and that by
instrument the person( 1, or the e tity upon beh,,
executed the instrument.

WITNESS my

Page 180 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1569 of 1638 STATE OF CALIFORNIA }
COUNTY OF r }
ss
11 On Zq p1 before mer ( sonbAme"ared,
Coo— personally, know to me or proved to me on the basis of satisfactory evidence to be the person( whos name( ) %/ are subscribed to the within instrument and acknowled ed to m that h executed the same in ii erftheii authorized capacity( iis), and that by i
r signature ) on the
instrument the person), or the entity upon behal of which the persoN) acted, executed the instrument. \\
WITNESS myPZ101
fficial seal.

Signature of Notary
BW' lor• 9 1679093 Comm%stun • C01110 la
Notary
a
Ic
counN
t • CO VpItes 301 2(
SCC/ INDIO CITRUS RANCH tf•L / ITY OF INDIO DEVELOPMENT AGREEMENT GE41OF41

CITY' S INITIALS DEVELOPER' DEVELOPERSS / INITIALS P /

Page 181 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1570 of 1638 EXHIBIT "A"

LEGAL DESCRIPTION

THE NORTHWEST QUARTER AND THE EAST HALF OF THE SOUTHEAST QUARTER OF SECTION 25, TOWNSHIP 4 NORTH, RANGE 7 EAST, S. B. M., IN THE COUN"I' Y OF RIVERSIDE, STATE OF CALIFORNIA;
TOGETHER WITH THE SOUTH HALF OF FRACTIONAL SECTION 31,
TOWNSHIP 4 SOUTH, RANGE 8 EAST, S. B. M., IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;

ALSO TOGETHER WITH THE SOUTH HALF OF THE SOUTHEAST QUARTER

AND THE SOUTH HALF OF THE NORTHEAST QUARTER LYING WESTERLY OF THE CENTERLINE OF DILL.ON ROAD AND THE SOUTH HALF OF THE

NORTHW EST QUARTER OF THE SOUTHWEST QUARTER OF THE
SOUTHWEST QUARTER OF SECTION 32, TOWNSHIP 4 SOUTH, RANGE 8 EAST, S. B. M., IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA; ALSO TOGETHER WITH TLfE SOUTH HALF OF THE SOUTHWEST QUARTER

OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 32, LYING WESTERLY OF THE CENTERLINE OF DILLON ROAD, TOWNSHIP 4 SOUTH, RANGE 8 EAST, S. B. M., IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
ALSO TOGETHER WITH ALL OF SECTION 5 LYING WESTERLY OF THE WESTERLY RIGHT 01: WAY OF DILLON ROAD, TOWNSHIP 5 SOUTH, RANGE 8 EAST, S. B. M., fN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;

ALSO TOGETHER WITH THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 5, LYING EASTERLY OF THE EASTERLY RIGHT OF WAY OF DILLON ROAD, TOWNSHIP 5 SOUTH, RANGE 8 EAST, S. B. M., IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
ALSO TOGETHER WITH ALL OF SECTION 8 LYING WESTERLY OF THE WESTERLY RIGHT OF WAY OF DILLON ROAD, TOWNSHIP 5 SOUTH, RANGE 8 EAST, S. B. M., IN TIME COUNTY OFRIVERSIDE, STATE OF CALIFORNIA;

EXCEPTING THEREFROM THE SOUTH HALF OF THE SOUTHWEST

QUARTER AND ALSO EXCEPTING THEREFROM ANY PORTION WITHIN THE ALL AMERICAN CANAL.

Page 182 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1571 of 1638 w
L' 1111 B " A-- 1" SHEET 1 OF 2
crr iiuf lt-ANC. 1I
S31
745- JOO- 001 745- J60- 001 745- J60- 00J
T4S, R8E
T5S, ME
SCALE: 1" - 1500'
501- 01- 001
745- 401- 014
745- 401- 019 S 32
601- OJ1- 009'
601- OJ1- 010
60/- 01- 00 601- OJI- 005-
L- S5
601- 041- 011
4 64
601- 160- 001
S8
601- 170- 004
601- 00- 006
STA14TEC CONSULTING INC.

73. 733 FR. ED \ HARING DRIVE \
SUITE 100
PALM DESERT, CA 92260
Stantec 760. 346. 9844 JN / i 20150767.22
0112- 00
601 - 041- 00P
601- 041- 009
n
601- 170- 005
601- 170- 006
601- 170- 007

Page 183 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1572 of 1638 K
11 EXHIBIT " A- l" SHEET 2 OF 2
CI t R.UJ R->\NC}It
T 4S, R 7E
S 25
750- 260- 010
750- 260- 012
SCALE. 1" 1500'

STANTEC CONSULTING WANINGARINNG SUITE
100 PALM
DESERT, CA 92260 Stantec
760 946 98d4 ,„,4 ,,,, JN JJ 20760767. 22

Page 184 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1573 of 1638

EXHIBIT B
Phase One

Page 185 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1574 of 1638

EXHIBIT B
Phase Two
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Page 186 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1575 of 1638 I.
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Page 187 of 207 ends

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Page 188 of 207 ends

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Page 189 of 207 ends

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Page 191 of 207 ends

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Page 193 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1582 of 1638 EXHIBIT C- 1
Poll,
Ruomvp vftllsltb.

Pua4, Smwn j4Madvjki
P; l

Page 194 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1583 of 1638 J I KLY ftAN( f I
EXHIBIT " D"
OF THE

DEVELOPMENT AGREEMENT

COMMUNITY FACILITIES DISTRICT ELIGIBLE FACILITIES
PHASE
SPINE ROAD, PHASE 1
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY
DILLON ROAD, PHASE 1

GRADING

STREET IMPROVEMENTS

LANDSCAPING

TRAFFIC CONTROL
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY
WALLS

STORM DRAIN

MONUMENT
PAGE i OF 5
Another
SunCal
Community

Page 195 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1584 of 1638

C I RUI K-ANICII
ENTRY ROAD, PHASE 1

GRADING

STREET IMPROVEMENTS

LANDSCAPING

TRAFFIC CONTROL
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY
WALLS

STORM DRAIN

MONUMENT

WATER FACILITIES, PHASE I

RESERVOIR/ BOOSTER STATIONS AND APPURTENANCES

WELLS AND WELL SITES

CONSULTANTS AND ENGINEERS

PERMITS AND FEES

GRADING

HIGH PRESSURE GAS LINE RELOCATION, PHASE I
INTRACT ROADS, PHASE 1
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY

FEES, PHASE I
FEES
EXHIBIT " D"
PAGE 2 OF 5
Another
MSunCal Community

Page 196 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1585 of 1638 C. IIfW/ 1LAI\) C 1{

PHASE II
DILLON ROAD, PHASE 11

GRADING

STREETIMPROVEMENTS

LANDSCAPING

TRAFFIC CONTROL
WATER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY
WALLS

STORM DRAIN
SPINE ROAD, PHASE Il
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY
AVENUE 88, PHASE II

GRADING

STREET IMPROVEMENTS

LANDSCAPING

STORM DRAINAGE

TRAFFIC CONTROL
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY
WALLS

MONUMENT
EXHIBIT " D"
PAGE 30F5
Another
SunCal
Community

Page 197 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1586 of 1638 s- s
C I I IZU/ fkA1\ 1( I

WATER FACILITIES, PHASE II

RESERVOIR/ BOOSTER STATIONS AND APPURTENANCES

WELLS AND WELL SITES

CONSULTANTS AND ENGINEERS

PERMITS AND FEES

GRADING

IN -TRACT ROADS, PHASE II
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY
FEES, PHASE 11
FEES

PHASE III

MULTIFUNCTION OPEN SPACE RECREATION AREA

SITE PREPARATION

GRADING

LANDSCAPING

STORM DRAINAGE

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

SPINE ROAD, PHASE III
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY
EXHIBIT " D"
PAGE 4 OF 5
PF7.- Another
SunCal
Community

Page 198 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1587 of 1638 C
I I MY iZAW I I
WATER FACILITIES, PHASE 111

RESERVOIR/ BOOSTER STATIONS AND APPURTENANCES

WELLS AND WELL SITES

CONSULTANTS AND ENGINEERS

PERMITS AND FEES

GRADING

IN -TRACT ROADS, PHASE III
WATER
SEWER

CONSULTANTS AND ENGINEERS

SOILS ENGINEER

PERMITS AND FEES

REPAIRS FOR AGENCY INSPECTION

DRY UTILITY

FEES, PHASE III
FEES
EXHIBIT " D"
PAGE 5 OF 5
Another
SunCal
Community

Page 199 of 207 ends

Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1588 of 1638 EXHIBIT " E"
OF THE

DEVELOPMENT AGREEMENT

CFD ELIGIBLE FEES (BASED ON EXISTING FEES)
FIRE STATION MIT. FEE

SHERIFF / POLICE FEE

PUBLIC BUILDING CAPITAL IMPACT FEES

ROADS, BRIDGES AND THOROUGHFARE FEE

SCHOOL FEES
TUMF

WATER CAPACITY FEES

SEWER CAPACITY FEE

PARK CAPITAL IMPACT FEE

STORM DRAINAGE FEES

ART IN PUBLIC PLACES FEE
TRAFFIC SIGNAL FEE_
PACE t OF 1
Another
SunCal
Community

Page 200 of 207 ends

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mo

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1590 of 1638 EXHIBIT " F- 1 "
OF THE

DEVELOPMENT AGREEMENT

OTHER AGENCY FEES
AGENCY
COUNTY

VALLEY SANITARY DISTRICT
DESERT SANDS UNIFIED . SCHOOL. DISTRICT

COACHELLA VALLEY ASSOCIATION OF GOVERNMENT
PAGE 1 OF 1
FEE

TUMF FEES

SEWER FEES

SCHOOL FEES

FRINGE - TOED LIZARD/ MSHCP
Another
SunCal
Community

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1591 of 1638 Exhibit A
Proposed Amendments to DA-06-10-22
AMENDMENT TO SECTION 3 (TERM).

Section 3 of the Development Agreement is hereby amended to add the following sentence at the end thereof (before Section 3.1):
“Notwithstanding anything in this Agreement to the contrary, and in recognition of litigation-related delays and other events affecting the timing of annexation and performance under this Agreement, the Term of this Agreement shall expire on July 26, 2032, unless earlier terminated in accordance with the provisions of this Agreement or later extended by a subsequent written amendment approved by the City in accordance with applicable law.”
Except as expressly set forth above, nothing in this Second Amendment is intended to revive, extend, or modify any expired fee limitation, fee vesting, or fee increase restriction previously applicable under Section 9 or any related provision of the Development Agreement.

AMENDMENT TO SECTION 3.2 (TERM EXTENSION).

Section 3.2 of the Development Agreement is hereby deleted in its entirety and replaced with the following:
“3.2 Term Extension - Request of Developer. This Agreement may be extended for one (1) additional twenty (20) year period following the expiration of the initial Term (as it may be extended pursuant to Section 3.1 of the Development Agreement) ("Developer's Extension") if the Developer including any funds derived from a financing district, either:
a. expends ten million dollars ($10,000,000) or more to install any infrastructure including, but not limited to, power, sewer, water, roads or the fire station; or b. completes the construction of the golf course, clubhouse and two hundred (200) residential units.

Developer shall submit a written request for term extension to the City, which must include documentation of such benchmark achievements. The City may only deny such extension if it finds Developer has not met these requirements.”

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1592 of 1638 -1-
ORDINANCE NO. 1842

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA,

APPROVING A SEONDMENT AMENDMENT TO THE CITRUS RANCH
DEVELOPMENT AGREEMENT (DA-06-10-22)
WHEREAS, SCC/Indio Citrus Ranch, LLC and the City of Indio entered development agreement 06-10-22 on or about June 7, 2007 (the “DA”) and the County recorded the DA on June 15, 2007; and
WHEREAS, as a result of the Riverside County Local Agency Formation Commission approving the City’s westerly Sphere of Influence and under the terms of DA 06-10-22 the City was required to prepare and process an amendment (the “First Amendment” to add approximately six hundred acres to the DA that were included in the Citrus Ranch Specific Plan, but were initially excluded from the DA because they were not located within either the City’s Sphere of Influence or the City limits of the City of Indio as to property generally located on the west side of Dillon Road approximately three miles north of Interstate 10; and WHEREAS, approval of the First Amendment added approximately six hundred (600) acres of land identified by the following Assessor’s Parcel Numbers:
745-380-001, 745-380-002, 745-380-003, 601-031-001, 601-031-003, 601-031- 005, 601-031-006, 601-031-007, 601-031-008, 601-031-009, 601-031-010, 601- 041-002, 601-041-009, 601-041-010, 601-041-011, 601-032-007, 601-032-008, 745-401-014, 745-401-023, 745-401-027, 745-401-019, 750-260-010, and 750- 260-012 (the “Additional Land”) to the area subject to the DA identified by the following Assessor’s Parcel Numbers: 601-001, 601-160-002, 601-160-004, 601- 170-004, 601-170-005, 601-170-006, 601-170-007, and 601-170-008 (the “Original Site”); and
WHEREAS, the Council originally adopted Specific Plan 94-10-3 on June 7, 2007, covering Planned Development Area 7A, the entirety of the approximately 640 acres extending from Avenue 50 to Avenue 52, and from Monroe Street to Madison Street, inclusive of both the Original Site and the Additional Land, the Council made findings that the environmental impacts associated with the Plans were analyzed in the certified environmental impact report as prepared for Citrus Ranch Specific Plan (SP-05-11-16) (the “Findings”); and WHEREAS, staff has determined that the current proposal to amend provisions of the term in section 3 of the agreement will not modify existing land use designations or development regulations for the Original Project Site and that there will be no impact upon the environment beyond that analyzed at the time of the Specific Plan adoption, and that pursuant to the California Environmental Quality Act, this project was previously reviewed as part of the Final Environmental Impact Report (SCH #2005111117) for the Citrus Ranch project and therefore no further environmental review is required for the Second Amendment to the Development Agreement; and
WHEREAS, approval of a Second Amendment to DA-06-10-22 will amend

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1593 of 1638 -2-
the term provisions of the agreement as shown in Exhibit A, attached hereto and incorporated by reference herein to the area subject to the DA as previously amended; and,
WHEREAS, on July 15, 2026, the City Council conducted a duly advertised public hearing, reviewed staff reports, considered testimony both for and against the proposed Amendment, concluded its proceedings, and approved the Amendment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO,
CALIFORNIA, HEREBY ORDAINS, AS FOLLOWS:

1. The above recitals are true and correct and hereby incorporated by reference herein together with all definitions set forth.

2. The Second Amendment to Development Agreement DA-06-10-22 and the Citrus Ranch project in the underlying DA are consistent with the goals and policies of the Indio General Plan encouraging high quality residential projects inclusive of a variety of housing types, significant amenities, community parks, and open space.

3. The Second Amendment to Development Agreement DA-06-10-22 and the Citrus Ranch project in the underlying DA are consistent with the densities and uses for the project site specified in the Indio General Plan and Specific Plan SP05-11-16.

4. The Second Amendment to Development Agreement DA-06-10-22 and the Citrus Ranch project in the underlying DA are consistent with the Zoning Ordinance of the City of Indio per Specific Plan SP-05-11-16, compatible with the present and future logical growth of the project area (as envisioned in the Indio General Plan, and designed to protect and promote the public health, safety and welfare).

5. The City Council hereby finds that amendments to the Term contained within the Second Amendment to Development Agreement DA-06-10-22 will not modify existing land use designations or development regulations for the Original Project Site, that there will be no impact upon the environment beyond that analyzed at the time of the Specific Plan adoption, and that pursuant to the California Environmental Quality Act, this project was previously reviewed as part of the Final Environmental Impact Report (SCH #2005111117) for the Citrus Ranch project and therefore no further environmental review is required for the Second Amendment to the Development Agreement.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. That the above recitals and findings are true and correct, are incorporated herein by this reference inclusive of all definitions and exhibits provided and constitute the findings of the Council in this case.

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1594 of 1638 -3-
Section 2. That the Second Amendment to Development Agreement DA06-10-22 is hereby approved.

Section 3. That a fully executed copy of the Second Amendment to Development Agreement DA-06-10-22 between SCC/Indio Citrus Ranch, LLC and the City of Indio is on file in the Office of the City Clerk and will be recorded at the Office of the Recorder for Riverside County.

Section 4. The City Clerk shall certify to the passage and adoption of this ordinance and shall cause a summary of same to be published once in the Desert Sun, a newspaper of general circulation, printed, published, and circulated within the City of Indio and the same shall be in full force and effect thirty (30) days after its adoption.

PASSED, APPROVED, and ADOPTED this 15th day of July 2026 ____________________________

ELAINE HOLMES, MAYOR
ATTEST:

CITY CLERK
________________________________

SABDI SANCHEZ, MMC
DIR. OF CITY CLERK SERVICES

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1595 of 1638 -4-
Exhibit A: Amendments to Citrus Ranch Development Agreement

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Introduction and First Reading of Ordinance No. 1842 Approving a Second ... Page 1596 of 1638 City of Indio
City Council
July 15, 2026

STAFF REPORT
To: City Council
From: Jonathan Nicks, City Manager
Prepared by: Brian Halvorson, Dir. Of Community Development Subject: Extension to Ordinance 1838, Receive and file a presentation and Planning Commission Recommendation on Data Centers, and Provide direction on the preparation of amendments to the Geneal Plan and Unified Development Code banning data centers or consider an alternative regulatory approach.

RECOMMENDATION:

Council review of 1) an extension to urgency Ordinance 1838 regarding a moratorium on the establishment, expansion, or intensification of Data Centers and other similar high-intensity computing uses; 2) receive and file a staff presentation and Planning Commission recommendation regarding data centers; and 3) provide direction to staff regarding preparing a permanent Unified Development Code amendment banning data centers or an alternative regulatory approach.

SUMMARY:

The City has taken several steps to address concerns regarding data centers following Council approval of Urgency Ordinance 1838 (Attachment 1) for the establishment, expansion or intensification of data centers and other similar high-intensity computing uses. The Urgency Ordinance is set to expire on July 18, 2026. Research on energy/water usage, tax revenue, air quality, noise, decommissioning, General Plan and Zoning code review, planning conference attendance, Sustainability Commission and Planning Commission review, public input, and a variety of other topics have been considered for regulating, limiting, and prohibiting data centers in the City of Indio during the 45-moratorium period. These efforts have been summarized in a staff presentation shown in Attachment 2 which includes a Planning Commission recommendation to ban the establishment of data centers. An extension to the existing moratorium (Attachment 3) on data centers would allow time for staff to draft amendments to the General Plan and/or Unified Development Code or take an alternative action as directed by the City Council.

BACKGROUND INFORMATION:

On May 6, 2026, the City Council directed staff to work with the Planning Commission to consider new policies and provide options for prohibiting data centers and developments that include high water, high energy or high land use, including warehouses or high-water use development and provide a recommendation to the City Council.

On June 3, 2026, the City Council approved Urgency Ordinance No. 1838 for a 45-day moratorium on Data Centers and directed staff to include options to extend the moratorium and review alternatives for a permanent ban on Data Centers. The intent of the moratorium is to allow reasonable time to study, consider, and potentially adopt amendments to the City’s General Plan, AGENDA ITEM #10.7
Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1597 of 1638 Unified Development Code, zoning ordinance, specific plans, development standards, and other applicable regulations to address whether, where, and under what conditions data centers and similar high-intensity computing uses should be allowed within the City.

On June 24, 2026, the Planning Commission received a staff presentation summarizing various types of data centers, including general industry ranges for power usage, water consumption, and facility footprint size, as well as a summary of concerns raised by the Indio Sustainability Commission. The Planning Commission presentation also outlined potential policy and regulatory changes to the City’s General Plan and Unified Development Code aimed at prohibiting data centers. After receiving a report on data centers and hearing public input, the Commission recommended that the City Council move forward with a complete ban on data centers. Following the Commission meeting, the Sustainability Commission also provided a letter supporting the Planning Commission’s recommendation on the data center ban (Attachment 4). Public comments from the June 24, 2026, hearing are shown as Attachment 5.

ATTACHMENTS:

Attachment 1 Ordinance 1838
Attachment 2 Staff Presentation
Attachment 3 Moratorium 90 Day Extension
Attachment 4 Sustainability Commission Recommendation
Attachment 5 Public Comments
APPROVAL(S):

Brian Halvorson, Dir. Of Community Development Approved - 06 Jul 2026 Ruby D. Walla, Director of Finance Approved - 07 Jul 2026 Steven Graham Pacifico, City Attorney Approved - 08 Jul 2026 Jonathan Nicks, City Manager Approved - 09 Jul 2026

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1598 of 1638 ORDINANCE NO. 1838

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDIO,

CALIFORNIA, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858 ESTABLISHING FORTY- FIVE ( 45) DAY MORATORIUM ON THE

ESTABLISHMENT, EXPANSION, OR INTENSIFICATION OF DATA CENTERS

AND OTHER SIMILAR HIGH-INTENSITY COMPUTING USES WITHIN THE CITY

OF INDIO
WHEREAS, the City of Indio (“ City”) is a municipal corporation organized and operating under the laws of the State of California, with the authority to regulate land use within its boundaries pursuant to its police powers and the Planning and Zoning Law; and
WHEREAS, neighboring jurisdictions have received, and the City reasonably anticipates receiving, applications, pre- applications, inquiries, and expressions of interest for the development of data centers and other similar high-intensity computing uses within the City; and
WHEREAS, data centers and similar high- intensity computing uses may require extraordinary electrical demand, substation or transmission improvements, substantial cooling systems, backup generators, water and wastewater capacity, and 24-hour operations, and may thereby create or exacerbate land use compatibility, noise, air quality, greenhouse gas, public health, public safety, emergency response, and infrastructure capacity concerns; and
WHEREAS, such concerns may be especially significant when these uses are proposed in proximity to residential neighborhoods, schools, parks, community facilities, and other sensitive land uses; and
WHEREAS, the City’ existing General Plan, Unified Development Code, zoning regulations, and other applicable land use regulations do not currently define, classify, or comprehensively regulate data centers and similar high- intensity computing uses, including with respect to their permissible locations, size and intensity, utility demand, water consumption, cooling systems, backup generation, buffering, noise, environmental performance, decommissioning, and community benefits; and
WHEREAS, the City Council intends within a reasonable time to study, consider, and potentially adopt amendments to the City’ General Plan, Unified Development Code, zoning ordinance, specific plans, development standards, and other applicable regulations to address whether, where, and under what conditions data centers and similar high- intensity computing uses should be allowed within the City; and
WHEREAS, approval of new data centers or similar high- intensity computing uses, or the expansion or intensification of existing such uses, under the City’ current regulations during the period in which the City is studying and considering such policy

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1599 of 1638 and regulatory changes could result in developments that are inconsistent with or in conflict with the land use policies, zoning standards, infrastructure planning, or other regulations being contemplated, and could thereby frustrate or substantially undermine the effectiveness of any future updates; and
WHEREAS, the City Council finds that there is a current and immediate threat to the public health, safety, and welfare because, absent a temporary moratorium, applications for such uses may be accepted, processed, and approved under regulations that do not adequately address the potentially significant infrastructure, environmental, operational, and land use compatibility issues associated with such uses; and
WHEREAS, the City Council further finds that the approval of additional entitlements, permits, or other approvals for such uses during the period of study would result in that threat to the public health, safety, and welfare by allowing the commitment of land, utility capacity, water resources, and related infrastructure before the City can determine and adopt appropriate standards and safeguards; and WHEREAS, Government Code section 65858 authorizes the City Council to adopt an interim urgency ordinance prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the City is considering, studying, or intends to study within a reasonable time; and WHEREAS, the City Council further finds that this urgency ordinance is narrowly tailored, in both scope and duration, by temporarily prohibiting the establishment, expansion, or intensification of data centers and similar high- intensity computing uses while the City considers appropriate policy and regulatory responses; and
WHEREAS, the City Council recognizes that data centers and similar uses may provide certain economic benefits, but finds that it is in the public interest to temporarily pause new or expanded approvals until the City can comprehensively evaluate whether and under what conditions such uses are compatible with the City’ long-term land use, infrastructure, environmental, and community objectives; and WHEREAS, the City Council desires to adopt this interim urgency ordinance, which shall take effect immediately upon its adoption by at least a four- fifths ( 4/5) vote of the City Council, and remain in effect for forty-five (45) days unless extended as provided by law.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES ORDAIN AS FOLLOWS:

SECTION 1. FINDINGS.

The City Council hereby finds and determines that the above recitals are true and correct and incorporates them herein as substantive findings in support of this Ordinance. In addition, the City Council specifically finds:

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1600 of 1638 A. Neighboring jurisdictions have received and the City reasonably anticipates receiving, applications, pre- applications, inquiries, and expressions of interest for new data centers and similar high-intensity computing uses, as well as for the expansion or intensification of existing such uses, and such proposals may be processed and approved under existing regulations in the absence of this interim Ordinance.

B. Existing General Plan and zoning provisions do not comprehensively address whether, where, and under what conditions data centers and similar high- intensity computing uses should be permitted, nor do they establish adequate standards concerning location, size, utility demand, water use, cooling systems, backup generation, noise, buffering, environmental performance, public health and safety protections, or related operational characteristics.

C. Data centers and similar high- intensity computing uses may create substantial and unique impacts, including but not limited to significant electrical demand, increased water consumption, substantial mechanical cooling equipment, noise from cooling systems and generators, air emissions from backup generation, fire and life safety considerations, and demands on public infrastructure and emergency services.

D. There is a reasonable likelihood that approvals granted during the City’ study and consideration of potential policy and regulatory changes would be in conflict with, or would substantially undermine, contemplated amendments to the General Plan, Unified Development Code, zoning ordinance, specific plans, or other regulations regulating such uses.

E. There is a current and immediate threat to the public health, safety, and welfare because the City’ current regulatory framework does not adequately address the potential land use, environmental, utility, infrastructure, and operational impacts associated with data centers and similar high-intensity computing uses.

F. The approval of additional subdivisions, use permits, variances, building permits, site development permits, grading permits, or any other applicable entitlement, permit, or approval for the establishment, expansion, or intensification of data centers or similar high- intensity computing uses during the City’ study period would result in the threat described above by allowing such uses to proceed before appropriate standards and safeguards are established.

G. temporary moratorium on the establishment, expansion, or intensification of data centers and similar high-intensity computing uses is necessary to maintain the status quo while the City completes its studies and considers any proposed policy and regulatory changes.

H. This Ordinance has no effect on the Exempted Proposed Data Centers identified herein, if any, and does not impair any vested rights legally obtained prior to the effective date of this Ordinance.

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1601 of 1638 I. The adoption of this interim urgency ordinance is therefore necessary for the immediate preservation of the public peace, health, and safety within the meaning of Government Code section 65858.

SECTION 2. MORATORIUM IMPOSED.

A. Pursuant to Government Code section 65858, an interim moratorium is hereby imposed on the approval of any applications, permits, or entitlements for the establishment, expansion, or intensification of any Data Center Use within the City of Indio, except as expressly provided in this Ordinance. This Ordinance does not apply to the Exempted Proposed Data Centers listed below:

B. During the effective period of this Ordinance, no City official, officer, employee, department, board, commission, or agency shall accept as complete, process, approve, issue, or grant any discretionary or ministerial permit, approval, license, clearance, or entitlement that would authorize any of the following:

1. The establishment, construction, installation, occupancy, or operation of any new Data Center Use;

2. The conversion of any existing building, structure, or site to a Data Center Use;

3. The expansion, enlargement, or intensification of any existing Data Center Use, including but not limited to increases in gross floor area devoted to such use, server capacity, rack density, electrical service capacity, cooling capacity, backup generation capacity, or water demand; or

4. Any subdivision, site development, grading, building, electrical, mechanical, or similar permit to the extent it would facilitate or enable any activity prohibited by this Ordinance.

SECTION 3. DEFINITION.

For purposes of this Ordinance, “ Data Center Use” means any facility, campus, building, structure, or portion thereof used primarily or substantially for the housing, operation, or support of computer servers, server racks, data storage devices, networking equipment, switching equipment, or similar electronic equipment for data processing, storage, transmission, cloud computing, colocation services, artificial intelligence model training or inference, high- performance computing, blockchain operations, digital asset mining, cryptocurrency mining, or other similar highintensity computing activities.

Data Center Use” includes, without limitation, hyperscale data centers, colocation facilities, server farms, cloud computing facilities, artificial intelligence compute facilities, digital asset mining facilities, blockchain mining facilities, and other substantially similar uses, whether or not such use is separately defined or listed in the Municipal Code.

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1602 of 1638 Data Center Use” does not include any of the following:

1. Customary accessory server rooms, IT rooms, or equipment rooms that are clearly incidental and subordinate to a primary permitted use and that serve only on- site business, institutional, governmental, or facility operations;

2. Ordinary office, retail, school, hospital, or industrial computer equipment used solely to support on- site operations;

3. Public safety, emergency communications, or emergency operations facilities; or

4. Telecommunications carrier facilities or public utility facilities necessary to provide essential communications or utility services to the public, to the extent such facilities are not principally used or designed as a commercial data center, colocation facility, cloud computing facility, artificial intelligence compute facility, or digital asset mining facility.

SECTION 4. STUDY AND REVIEW.

During the moratorium period established by this Ordinance and any extension thereof, the City Manager, or designee, is authorized and directed to:

A. Evaluate the potential land use, infrastructure, environmental, public health, and public safety implications of data centers and similar high- intensity computing uses within the City, including but not limited to electricity demand, water use, wastewater demand, cooling systems, backup generation, noise, air quality, greenhouse gas emissions, emergency response, fire and life safety, and compatibility with surrounding land uses;
B. Review the City’ existing General Plan, Unified Development Code, zoning regulations, specific plans, and development standards to determine whether amendments are necessary to address data centers and similar high-intensity computing uses;
C. Consult, as appropriate, with utility providers, water agencies, fire and emergency service providers, public health agencies, environmental professionals, residents, businesses, and other stakeholders regarding the potential impacts of such uses and possible regulatory responses;
D. Develop and present to the City Council for consideration any proposed amendments to the General Plan, Unified Development Code, zoning ordinance, specific plans, and other applicable regulations, including but not limited to use classifications, permitted zoning districts, conditional use requirements, development agreements, siting criteria, separation from sensitive uses, operational standards, utility and water demand standards, noise standards, buffering and screening

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1603 of 1638 requirements, generator standards, sustainability measures, and decommissioning requirements; and
E. Prepare and issue, prior to the expiration of this Ordinance or any extension thereof, a written report to the City Council describing the measures taken to alleviate the conditions that led to the adoption of this Ordinance, consistent with Government Code section 65858.

SECTION 5. APPLICABILITY AND EXEMPTIONS.

A. This Ordinance applies to all property within the City of Indio, including any area subsequently annexed to the City during the effective period of this Ordinance, unless otherwise provided by law.

B. The following are exempt from the moratorium established by this Ordinance:

1. Data Center Uses for which all required discretionary approvals and ministerial permits necessary to authorize construction and operation were finally granted prior to the effective date of this Ordinance, provided that the project is developed in substantial conformance with those approvals;

2. Ordinary accessory server rooms, IT rooms, and similar facilities expressly excluded from the definition of Data Center Use in Section 3;

3. Public safety, emergency communications, and emergency operations facilities;

4. Telecommunications carrier facilities and public utility facilities necessary to provide essential public services, to the extent exempted by Section 3; and

5. Minor repairs, maintenance, replacement in kind, or interior tenant improvements to an existing lawful facility that do not expand the gross floor area devoted to a Data Center Use and do not increase server capacity, electrical service capacity, cooling capacity, backup generation capacity, or water demand.

C. Nothing in this Ordinance shall be construed to deprive any person of vested rights legally obtained prior to the effective date of this Ordinance, as those rights may be determined under applicable state law.

SECTION 6. SEVERABILITY.

If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, and portion

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1604 of 1638 thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

SECTION 7. CEQA.

The City Council finds that this Ordinance is not a “ project” under the California Environmental Quality Act (“ CEQA”) because it has no potential to result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. In the alternative, the Ordinance is exempt from CEQA pursuant to State CEQA Guidelines sections 15060©( 2) and 15061( b)( 3), and, to the extent applicable, section 15308, because it is a regulatory action taken by the City for the protection of the environment and there is no possibility that the adoption of this Ordinance may have a significant effect on the environment.

SECTION 8. EFFECTIVE DATE; DURATION; EXTENSION.

This Ordinance is adopted as an urgency measure pursuant to Government Code section 65858 and is necessary for the immediate preservation of the public peace, health, and safety. This Ordinance shall take effect immediately upon its adoption by at least a four-fifths ( 4/ 5) vote of the City Council.

This Ordinance shall remain in effect for forty-five ( 45) days from the date of its adoption to July 18, 2026, unless extended by the City Council in accordance with Government Code section 65858. Any extension of this Ordinance shall require notice and a public hearing in compliance with Government Code section 65858, and shall be supported by written findings that the conditions warranting the moratorium continue to exist.

PASSED, APPROVED, AND ADOPTED this 3rd day of June, 2026.

ELAINE HOLMES, MAYOR
ATTEST:

CITY CLERK

SABDI SANCHEZ, MMC

DIRECTOR OF CITY CLERK SERVICES

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CERTIFICATION
I, Sabdi Sanchez, Director of City Clerk Services of the City of Indio, California, hereby certify that Urgency Ordinance No. 1838 was duly and regularly adopted at a meeting of the City Council of said City at its meeting held on the 3rd day of June 2026 by the following vote, to wit:

Ayes: Councilmember Miller, Guitron, Ortiz, Mayor Pro Tem Fermon, Mayor Holmes Noes: None
Publication Date: June 10, 2026
IN WITNESS WHEREOF, have hereunto set my hand and affixed the official seal of the City of Indio, California, this 4th day of June 2026.

Sabdi Sanchez, MMC
Director of City Clerk Services
City of Indio

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DATA CENTER

RESEARCH

CITY COUNCIL
WEDNESDAY, JULY 15, 2026

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BACKGROUND • On June 3, 2026, City Council approved a 45-day moratorium on Data Centers within the City of Indio
• The Community Development Department has not
received and is not reviewing any entitlement
applications (or pre-applications) for Data Centers

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45-Day Moratorium
• Defines “Data Center Use”
• Temporarily Prohibits Data Centers
• Time to study, consider, and adopt amendments
to the City’s General Plan, Unified Development
Code, zoning ordinance, development standards
and other applicable regulations.

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General Plan Land Use
• The Workforce and Employment District General Plan land use designation provides an area for a wide variety of employmentgenerating activities including research and development. • The Workforce and Employment District land uses are implemented by the Light Industrial (IL) zone.

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Existing Zoning Regulations
• The Unified Development Code does not define “Data Centers” or provide development standards for Data Centers.
• A Data Center is not a listed use found in the land uses allowed in the non-residential zones listed in Figure 2.04.02-1. Allowed Uses-NonResidential Zones. • “Land uses not listed in the Specific Plan or Project Master Plan as permitted or not found to be substantially like a permitted use are prohibited.” Section 2.06.01.02.B

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COLOCATION FACILITIES (MULTI-TENANT)

TYPES OF DATA CENTERS

ENTERPRISE DATA CENTERS (CORPORATIONS)
Building Footprint: 5,000 sq ft – 100,000 sq ft
Power Use: 1 MW – 10 MW IT load
Water Use: 3 – 30 million gallons/year
Building Footprint: 50,000 sq ft – 300,000 sq ft
Power Use: 10 MW – 50 MW IT load
Water Use: 30 – 150 million gallons/year

HYPERSCALE DATA CENTERS (MAJOR CLOUD/AI PROVIDERS)
Building Footprint: 200,000 sq ft – 1,000,000 sq ft
Power Use: 80 MW – 150 MW IT load
Water Use: 200 million – 1+ billion gallons/year

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HYPERSCALE DATA

CENTERS CAMPUS
• Comprised of 4 – 12 buildings, substation, cooling yards ⚬ Land Use ranges from 100 – 300 acres of total land
• Building footprint 200,000 sq ft – 1.5+ million sq ft • Power Use ranges from 500 MW to 1+ GW
• Water Usage ranges from 300 million – 1.5+ billion gallons/year ⚬ Equivalent to 1-5 million gallons per day

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NOISE

TEMPORARY VS PERMANENT JOBS

HEAT ISLAND EFFECT

OTHER TOPICS FOR ANALYSIS

E-WASTE

DEVELOPMENT AGREEMENTS

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1616 of 1638 • Clustered in Silicon Valley ⚬ Santa Clara ⚬ San Jose ⚬ Fremont ⚬ Sunnyvale • Large Corporations ⚬ Google ⚬ Meta (Facebook) ⚬ Microsoft

HYPERSCALE DATA

CENTERS IN CALIFORNIA

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NATIONAL PLANNING

CONFERENCE

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SUSTAINABILITY COMMISSION
• Data Centers discussed or presented on:
⚬ January 26, 2026
⚬ February 23, 2026
⚬ March 23, 2026
• Main concerns include:
⚬ Water use
⚬ Fire risk
⚬ Electrical grid capacity
⚬ Air quality
⚬ Decommissioning

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SUSTAINABILITY COMMISSION

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OPTIONS
• General Plan Policy • Amend the Unified Development Code to prohibit in all zones
• Extend the Moratorium ⚬ Expiration: July 18, 2026

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PROPOSED GENERAL PLAN POLICY
Proposed Policy: LU‑10.# Resource‑intensive uses. Prohibit development proposals within Workplace and Employment Districts that involve high land consumption, water demand, or energy use where such projects would strain local infrastructure, impact utility services and air quality, reduce land availability for employment‑generating uses, or conflict with the City’s sustainability and resource conservation goals.

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AMEND THE UNIFIED DEVELOPMENT CODE
• Define “Data Centers”
• Prohibit Data Centers in all zoning districts
• Draft amendments to sections of the code
being modified
• Amend existing Specific Plans and Project
Master Plans to prohibit Data Centers

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ALTERNATIVE OPTIONS
• Conditional Use Permit
• Development Agreement
• Impose Development Standards and/or Objective
Design Standards

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PLANNING COMMISSION RECOMMENDATION

RECOMMENDATION
• On June 24, 2026, the Planning Commission received a
presentation on data centers
• Public Comments were received
• The Planning Commission Recommended a complete ban on the establishment of any new Data Center

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MORATORIUM EXTENSION
• The current 45-Day Moratorium Expires on July 18, 2026 • The Sustainability Commission, Planning Commission, and Community Development Department staff have
researched, presented, and reviewed various options for regulating Data Centers
• Staff has prepared an extension to the Moratorium

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STAFF RECOMMENDATION
• Adopt a moratorium extension; • Receive and file staff’s presentation and the Planning Commission Recommendation; and
• Provide direction on preparing a permanent Unified
Development Code amendment banning data centers or
an alternative regulatory approach

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ORDINANCE NO. [____]

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

INDIO, CALIFORNIA, PURSUANT TO GOVERNMENT CODE SECTION
65858, EXTENDING URGENCY ORDINANCE NO. 1838 AND THE

INTERIM MORATORIUM ON THE ESTABLISHMENT, EXPANSION, OR
INTENSIFICATION OF DATA CENTERS AND OTHER SIMILAR HIGHINTENSITY COMPUTING USES WITHIN THE CITY OF INDIO WHEREAS, the City of Indio (“City”) is a municipal corporation organized and operating under the laws of the State of California, with authority to regulate land uses within its boundaries pursuant to its police powers and the Planning and Zoning Law; and
WHEREAS, Government Code section 65858 authorizes the City Council to adopt and extend an interim urgency ordinance prohibiting uses that may conflict with a contemplated general plan, specific plan, zoning, or other land use regulatory proposal that the City is considering, studying, or intends to study within a reasonable time, when necessary to protect the public safety, health, and welfare; and
WHEREAS, on June 3, 2026, the City Council adopted Urgency Ordinance No. 1838 by a four-fifths vote, establishing a forty-five-day interim moratorium on the approval of applications, permits, or entitlements for the establishment, expansion, or intensification of data centers and other similar high-intensity computing uses within the City; and
WHEREAS, Ordinance No. 1838 was adopted to provide the City with reasonable time to study, consider, and potentially adopt amendments to the City’s General Plan, Unified Development Code, zoning regulations, specific plans, development standards, and other applicable regulations to address whether, where, and under what conditions data centers and similar high-intensity computing uses should be allowed within the City; and WHEREAS, Ordinance No. 1838 is scheduled to expire on July 18, 2026, unless extended by the City Council in accordance with Government Code section 65858; and
WHEREAS, during the initial moratorium period, City staff commenced the study and review directed by Ordinance No. 1838, including review of land use compatibility, infrastructure demand, electrical demand, water use, wastewater demand, cooling systems, backup generation, noise, air quality, greenhouse gas emissions, emergency response, fire and life safety,

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1628 of 1638 decommissioning, tax revenue, community benefits, and compatibility with surrounding land uses; and
WHEREAS, on June 24, 2026, the Planning Commission received a staff presentation regarding data centers and similar high-intensity computing uses, considered public input, and recommended that the City Council move forward with a complete ban on data centers within the City; and WHEREAS, following the Planning Commission’s review, the City also received input from the Sustainability Commission supporting the Planning Commission’s recommendation and identifying concerns regarding water consumption, electrical demand, greenhouse gas emissions, heat generation, noise, air quality, and overall quality of life; and
WHEREAS, City staff has prepared and issued a written report describing the measures taken to alleviate the conditions that led to the adoption of Ordinance No. 1838, including staff research, Planning Commission review, Sustainability Commission input, public comments, and staff’s continuing review of potential General Plan and Unified Development Code amendments; and
WHEREAS, despite the work completed during the initial moratorium period, additional time is necessary for staff, the Planning Commission, the City Council, and other City commissions or advisory bodies, as appropriate, to complete the study of data centers and similar high-intensity computing uses and to prepare, review, notice, and consider permanent amendments to the General Plan, Unified Development Code, zoning regulations, specific plans, development standards, or other applicable regulations; and WHEREAS, the City’s existing General Plan, Unified Development Code, zoning regulations, and other applicable land use regulations do not currently define, classify, or comprehensively regulate data centers and similar high-intensity computing uses, including with respect to their permissible locations, size and intensity, utility demand, water consumption, cooling systems, backup generation, buffering, noise, environmental performance, decommissioning, and community benefits; and WHEREAS, data centers and similar high-intensity computing uses may require extraordinary electrical demand, substation or transmission improvements, substantial mechanical cooling systems, backup generators, water and wastewater capacity, and 24-hour operations, and may create or exacerbate land use compatibility, noise, air quality, greenhouse gas, public health, public safety, emergency response, and infrastructure capacity concerns; and

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1629 of 1638 WHEREAS, such concerns may be especially significant when these uses are proposed in proximity to residential neighborhoods, schools, parks, community facilities, and other sensitive land uses; and WHEREAS, approval of new data centers or similar high-intensity computing uses, or the expansion or intensification of existing such uses, during the period in which the City is studying and considering policy and regulatory changes could result in developments that are inconsistent with or conflict with the land use policies, zoning standards, infrastructure planning, or other regulations being contemplated, and could thereby frustrate or substantially undermine the effectiveness of any future updates; and
WHEREAS, the City Council finds that there remains a current and immediate threat to the public health, safety, and welfare because, absent an extension of the temporary moratorium, applications for data centers and similar high-intensity computing uses may be accepted, processed, and approved under existing regulations that do not adequately address the potentially significant infrastructure, environmental, operational, and land use compatibility issues associated with such uses; and WHEREAS, the City Council further finds that approval of additional subdivisions, use permits, variances, building permits, site development permits, grading permits, electrical permits, mechanical permits, business licenses, or any other applicable entitlement, permit, license, clearance, or approval for the establishment, expansion, or intensification of data centers or similar high-intensity computing uses during the continued study period would result in the threat to public health, safety, and welfare described in this Ordinance by allowing such uses to proceed before the City can determine and adopt appropriate standards and safeguards; and WHEREAS, the City Council finds that extension of Ordinance No. 1838 is narrowly tailored, in both scope and duration, because it temporarily maintains the status quo while the City completes its study and considers appropriate permanent policy and regulatory responses; and WHEREAS, the City Council recognizes that data centers and similar highintensity computing uses may provide certain economic benefits, but finds that it is in the public interest to continue the temporary pause on new or expanded approvals until the City can comprehensively evaluate whether and under what conditions such uses are compatible with the City’s longterm land use, infrastructure, environmental, fiscal, public safety, and community objectives; and

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1630 of 1638 WHEREAS, on July 15, 2026, the City Council conducted a duly noticed public hearing to consider extension of Ordinance No. 1838, received and considered all public testimony, the staff report, the written report required by Government Code section 65858, the Planning Commission recommendation, the Sustainability Commission input, public comments, and all evidence in the administrative record; and
WHEREAS, the City Council desires to extend Ordinance No. 1838 and the interim moratorium established thereby.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES ORDAIN AS FOLLOWS:

Section 1. Findings. The City Council hereby finds and determines that the foregoing recitals are true and correct and are incorporated herein as substantive findings in support of this Ordinance. The City Council further finds that there remains a current and immediate threat to the public health, safety, and welfare, and that approval of additional subdivisions, use permits, variances, building permits, site development permits, grading permits, electrical permits, mechanical permits, business licenses, or any other applicable entitlement, permit, license, clearance, or approval for the establishment, expansion, or intensification of data centers and similar highintensity computing uses would result in that threat.

Section 2. Extension of Moratorium. Pursuant to Government Code section 65858, Urgency Ordinance No. 1838 and the interim moratorium established thereby are hereby extended for ninety (90) days after expiration of the initial forty-five-day moratorium. The moratorium shall remain in effect through and including October 16, 2026, unless earlier extended or terminated by the City Council.

Section 3. Continued Applicability of Ordinance No. 1838. During the extended moratorium period, all prohibitions, definitions, exemptions, procedures, and requirements set forth in Ordinance No. 1838 shall remain in full force and effect, except as expressly modified by this Ordinance.

Section 4. Continued Study and Review. During the extended moratorium period, the City Manager, or designee, is authorized and directed to continue the study and review directed by Ordinance No. 1838, including preparation and processing of potential amendments to the General Plan, Unified Development Code, zoning regulations, specific plans, development standards, and other applicable regulations to address data centers and similar high-intensity computing uses. The City Manager, or designee, is further authorized to return to the Planning Commission,

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1631 of 1638 Sustainability Commission, City Council, or other appropriate bodies for additional review, recommendation, or direction.

Section 5. Written Report. The City Council finds that the written report required by Government Code section 65858 has been prepared and issued, and that the staff report and supporting materials describe the measures taken to alleviate the conditions that led to adoption of Ordinance No. 1838.

The City Manager, or designee, is directed to prepare any additional written report required by Government Code section 65858 before expiration of this Ordinance or any further extension.

Section 6. CEQA. The City Council finds that this Ordinance is not a “project” under the California Environmental Quality Act because it has no potential to result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

Section 7. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, and portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions may be declared invalid or unconstitutional.

Section 8. Effective Date; Vote Required. This Ordinance is adopted as an urgency measure pursuant to Government Code section 65858 and is necessary for the immediate preservation of the public peace, health, and safety. This Ordinance shall take effect immediately upon adoption by at least a four-fifths vote of the City Council.

Section 9. Publication. The City Clerk shall certify to the adoption of this Ordinance and shall cause this Ordinance, or a summary thereof, to be published in the manner required by law.

PASSED, APPROVED, AND ADOPTED this 15th day of July, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

RECUSED:

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1632 of 1638 ________________________________

ELAINE HOLMES, MAYOR
ATTEST:
______________________________

SABDI SANCHEZ, MMC
DIR. OF CITY CLERK SERVICES

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1633 of 1638 100 Civic Center Mall, Indio, CA 92201

@cityofindio 760-391-4000 Indio.org
June 29, 2026
Honorable Mayor and Members of the City Council
Re: City of Indio’s June 24, 2026, Planning Commission Recommendation Regarding Data Centers Mayor and Members of the City Council:

Support for the Planning Commission’s General Recommendation for a Large-Scale Data Center Ban On behalf of the Sustainability Commission, I would like to express our appreciation for the Planning Commission's thoughtful evaluation of data centers and its recommendation to prohibit this land use within the City of Indio.

Current Large-Scale Data Center Designs Are Environmentally Unsustainable for Our Desert City The Sustainability Commission has devoted time to researching and discussing the potential environmental and community impacts associated with large-scale (AI) data centers. Our discussions have focused on issues including water consumption, electrical demand, greenhouse gas emissions, heat generation, noise, air quality, and overall quality of life, and found that many impacts are unsustainable— particularly with respect to water and energy supply. We have also monitored developments in neighboring communities and concluded that large-scale data center projects in nearby cities, with which we share water and utility services, can have similar unsustainable impacts in Indio.

A Ban or Restrictions Should Define Affected Data Centers and Consider How to Respond to Externally Permitted Data Centers with Local Impacts
The Sustainability Commission’s role is to advise the City on matters affecting environmental sustainability and resilience. Should the City Council choose to ban or otherwise restrict data centers, we recommend that the City specify the size and type of data center subject to the ban or restrictions. We also recommend that Indio further consider how to respond to any proposed data centers permitted through the California Energy Commission or other cities where the proposed facilities would have unsustainable impacts on Indio and its residents.

Monitoring of Data Center Proposals Will Continue
Although the Sustainability Commission is not scheduled to meet before this matter is considered by the City Council, I wanted to convey our findings to date and our concurrence with the Planning Commission’s evaluation of the potential impact of these facilities on our city. In addition, please note that the Commission will continue to monitor this issue. Thank you for your consideration of this important matter and for your continued commitment to the long-term sustainability of the City of Indio.

Respectfully,
D. Anetha Lue
Chair, Sustainability Commission

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1634 of 1638 Outlook
Fw: Permanent ban on data centers in the City of lndio.

From LukeFannin <[email protected]> Date Wed 6/10/2026 1:58 PM To Paulina Mendoza <[email protected]> Cc Gustavo Gomez <[email protected]>;BrianHalvorson <[email protected]> Hi Paulina,
Please note, we received the below public comment. We will be taking Data Centers to the Planning Commission as study session item on 6/24.

Thanks, Luke Fannin Assistant Planner
[email protected]
P2760—391-4142
take Center stage
100 Civic Center Drive Indio, CA 92201 00®®0
Sent: Wednesday, June 10, 2026 11:15 AM
To: Planning Services <[email protected]>
Subject: Permanent ban on data centers in the City of lndio.

This Message is From an Untrusted Sender Report Susprcrous You have not prevrousiy corresponded Withthis sender. if you have questions regarding this warning, please contact [email protected] Dear Planning Commissioners, My name is Esther Cortez and am resident of lndio. am calling forthe Planning Commission to use the 45 day moratorium to recommend permanent ban on data centers in the City of lndio. There is significant research that shows the negative impacts of data centers on water use and quality, air quality, heat generation, energy prices, and other environmental and social harms. Data centers do not belong in the City of lndio, an area that is already vulnerable to climate change.

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1635 of 1638 do not want any less than permanent ban. demand the Planning Commission officially recommends permanent ban data centers.

Thank you

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1636 of 1638 From: M.B. Ortega To: Sabdi Sanchez Subject: demand an immediate permanent ban of AI data centers in Indio! Date: Monday, June 8, 2026 4:10:16 PM Dear lndio Councilmembers Guitron, Miller, Ortiz and Mayors Holmes and Fermon, oppose the construction of Al data centers in Indio. demand an immediate, permanent ban. moratorium is only temporary and therefore is not enough.

After you are informed about the many bad outcomes that Al data centers directly cause, you will never be able to claim that you are ignorant of the facts. Ifyou then still support the construction of Al data centers in lndio, you willshow the world that you are psychopath or sociopath in power.

Al data centers result in large environmental, social, and economic negative effects. Many testimonies and scientific research demonstrate the following:

1. Environmental Impacts
Huge energy consumption
Water overuse during chronic drought
Noise, light, land and air pollution
Data centers cause "heat islands" increasing surrounding temperature by up to 16 degrees F.

2. Social, Economic and Community Impacts
Burden on public services during construction

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1637 of 1638 Insignificant local employment benefits
Physical and mental harm to Coachella Valley residents
Higher local energy and water costs for everyone, including impoverished and marginalized residents.

4. Long-Term Problems
Infrastructure collapse
Changes to local identity and way of life
Large numbers of unemployment through Al and robot replacement of humans in the workplace Building of an Al digital control grid infrastructure Al data centers are required to build 24/7 total surveillance, centralized, digital, control state that threatens human rights, selfdetermination, human free-will, and human dignity.

Sincerely, Maria Juncal Ortega
lndio resident

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Extension to Ordinance 1838, Receive and file a presentation and Plannin... Page 1638 of 1638

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