Agenda Item
City Council
Item #: 3.3. 2/25/2025 File #: 25-0103
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Kirsten B. Shea, Senior Assistant City Attorney
1. SUBJECT
Extension of Agreements between the City and Milan REI X, LLC to further evaluate non-residential uses for the “Brandman site” and the “Creekside Village site.”
2. SUMMARY
On February 23, 2024, the City and Milan REI X, LLC entered into “TollingAgreements”in order to continue to evaluate non-residential uses for the “Brandman site” and the “Creekside Village site”.
The City and Milan REI X, LLC, seek to extend the Tolling Agreements for an additional 90 days (which will extend relevant statutes of limitation to file applications and/or lawsuits regarding development applications for the two sites).
3. RECOMMENDED ACTION
Approve the extension of the Tolling Agreements with Milan REI X, LLC, for 90 days; and authorize the City Manager to execute the agreements on behalf of the City.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability
6. DISCUSSION AND BACKGROUND
Milan REI X, LLC (Milan) owns the real property at 6146 Santiago Canyon Road (the “Brandman site”) and the real property located along Santiago Canyon Road with the Assessor’s parcel numbers of 370-011-08, 370-041-12, 370-011-18, 370-011-22, 370-041-25, 093-280-07, 093-280- 27, 093-280- 29, 093-280-30, and 093-280-07 (the “Creekside Village site”) to be henceforth referred to as “Sites”.
The City and Milan (Parties) currently have different interpretations of relevant state law, in part, concerning the processing of the applications, including the scope of the materials Milan must provide to the City and the City’s duty to process and approve the proposed development projects.
The Parties entered into Tolling Agreements (Agreements) to have time to further evaluate non- City of Orange Printed on 2/19/2025Page 1 of 2
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Item #: 3.3. 2/25/2025 File #: 25-0103
The Parties entered into Tolling Agreements (Agreements) to have time to further evaluate non- residential uses for the Sites, including, but not limited to, recreational and sport uses, educational institution uses, acquisition by the City or a third party, or other paths for non-residential uses that may be acceptable to both Parties. In the absence of the time provided by this Agreement, the Parties (and in particular, Milan) may be forced to seek relief through the courts. The Parties believe it is in their best interests to avoid the time, expense, and risk of such litigation for the period identified by these Agreements. The initial term of the Agreements is set to expire on February 23, 2025. Parties wish to extend the term of the Agreements for an additional 90 days to May 28, 2025.
7. ATTACHMENTS
· Extension of Tolling Agreement 90 days (Brandman site) · Extension of Tolling Agreement 90 days (Creekside Village) City of Orange Printed on 2/19/2025Page 2 of 2
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