Agenda Packet — Redding City Council, June 3, 2025 (part 2 of 2)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize the following actions relative to Bid Schedule No. 5180 (Job No. 2477), Eastside Road over Olney Creek Bridge Project (Project):
(1) Reject the apparent low bid by Stewart Engineering Inc. (SEI) as nonresponsive and award the project to the second low bidder Abacus Construction, Inc., in the amount of $3,703,683.84;
(2) Approve an additional $567,000 to cover the cost of contract administration and inspection fees and $645,000 for project development costs; (3) Approve $370,000 to provide construction contingency funding; (4) Authorize the City Manager to approve additional increases, in either the construction management or construction contingency amounts, up to a total of $15,000; and (5) Adopt Resolution approving and adopting the 42nd Amendment to City Budget Resolution No. 2021-078 appropriating $2,056,690 in federal grant funds and $1,380,390 in Transportation Impact Fee funds for the Project.

Fiscal Impact
The Eastside Road over Olney Creek Bridge Project (Project) is being funded by two sources which consist of the Federal Highway Bridge Program (HBP) and the City of Redding (City) Citywide Transportation Impact Fee Program (TIF). The HBP will fund 88.53 percent of the project while the remaining 11.47 percent will be through TIF. Since the bids were higher than the engineer’s estimated cost, staff will be working with California Department of Transportation (Caltrans) to obtain additional HBP funding for the project. Staff anticipates the HBP to fully fund its share of the project total costs based upon previous experience with other bridge HBP funded projects. Until those additional funds become available, the TIF will cover the costs above the estimate. Any additional HBP funds will be presented and budgeted in a separate resolution. The HBP funds being appropriated at this time are currently authorized funds that were not previously budgeted.

MEETING DATE: May 17, 2022
ITEM NO. 4.11(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(a)--Award Bid Schedule No. 5180 (Job No. 2477), Eastside Road over Olney Creek Bridge Project and Adopt Budget Resolution
Ryan Bailey, Assistant
Director of Public Works
Packet Pg. 436 Attachment: Previous Staff Report 5-17-2022 (4.11(f)--Award RFP Bid Schedule No. 5577 Construction Inspection Services) Report to Redding City Council May 10, 2022
Re: 4.11(a)--Award BS No. 5180, Eastside Road over Olney Creek Bridge Page 2 Cost Summary
Item Estimated
Project Development Costs $ 645,000
Construction Contract + Contingency $ 4,073,683.84
Contract Administration, Inspection, Testing $ 567,000
Additional City Manager Authority $ 15,000
Total Project Costs $ 5,300,683.84
Project Budget $ 5,300,700
Project cost components are estimated, and some shifting of the funds may be necessary to balance the project within the approved budget.

Alternative Action
Without this project, the bridge will not be replaced, and unsafe conditions for pedestrians and motorists will remain. In addition, the City would be at risk of losing federal funds and may have to reimburse project development federal funds spent to date. The City Council has the following alternative actions:
• Choose not to award the bid for the Eastside Road over Olney Creek Bridge Project to the second low bidder Abacus Construction Inc (Abacus), determine that SEI, the low bidder, did make adequate Good Faith Efforts (GFE), and award the project to SEI. This may jeopardize current or future federal funding if the City is audited and the audit determines that SEI did not perform an adequate GFE.
• Choose not to award the bid for the Eastside Road over Olney Creek Bridge Project and re-advertise the project. This action would delay the project; thereby missing the 2022 construction season and potentially requiring staff to update current environmental permits which would further delay the project. Re-advertising the project would, most likely, increase the number of bids received, and there are no guarantees the low bidder will meet the project’s Disadvantaged Business Enterprise (DBE) goal or that it would perform an adequate Good Faith Effort (GFE).
• Provide staff with other direction.

Background/Analysis
Attached is a tabulation of bids opened on January 25, 2022. The low bid in the amount of $3,539,305 was received from SEI of Redding, California. Because the HBP grant funds are from a federal source, the City was required to establish a Disadvantaged Business Enterprise (DBE) participation goal specifically for the project, and a goal of 19 percent was established for this project. SEI did not achieve the goal, therefore, per federal regulations, the contractor must perform a Good Faith Effort (GFE) to be awarded the project. Staff’s evaluation of a bidder’s GFE is based on Section 9 of the Caltrans Local Assistance Procedures Manual (LAPM) as well as Appendix A of Title 49 CFR Part 26 of the Code of Federal Regulations (CFR). Staff performed the following process in GFE evaluation for SEI. • Staff received SEI GFE documentation per the specified five days after bid opening. • Staff received a bid protest letter (January 31, 2022) from the 2 nd low bidder, Abacus,
which did not provide any reasonable argument as to why the City should reject SEI’s bid. It simply stated that because SEI did not meet the goal regardless of an adequate Packet Pg. 437 Attachment: Previous Staff Report 5-17-2022 (4.11(f)--Award RFP Bid Schedule No. 5577 Construction Inspection Services) Report to Redding City Council May 10, 2022
Re: 4.11(a)--Award BS No. 5180, Eastside Road over Olney Creek Bridge Page 3 GFE, SEI’s bid should be rejected and the project should be awarded to Abacus, which is not allowed per the CFR.
• Staff completed its GFE evaluation and determined that SEI did demonstrate an adequate GFE.
• Per LAPM Section 9.8 (Local Public Agency Responsibilities), because the project contract exceeds $2 million and the low bidder did not meet the DBE goal, the City must submit the low bidder’s GFE documentation to the Caltrans Division of Local Assistance (DLA). In addition, the City may not award the contract without receiving a memorandum from the DLA indicating that Caltrans has determined that the low bidder made a GFE. The City submitted SEI’s GFE to Caltrans District 2 DLA for review. • Staff received, via email from Caltrans District 2 DLA, a memorandum (March 2, 2022) stating that Caltrans did not concur with the City’s determination that SEI had demonstrated an adequate GFE and concluded that SEI did not demonstrate it performed a GFE. Caltrans DLA relies on Caltrans Office of Civil Rights (OCR) to perform the GFE evaluations.
• Staff received the Abacus DBE complaint on March 9, 2022. • Per LAPM Section 9.8, because Caltrans did not concur with the City, the City must take Caltrans feedback and re-evaluate the GFE. The City did re-evaluate SEI’s GFE and determined that SEI did not demonstrate an adequate GFE for the reasons noted in the reevaluation and a letter was sent to SEI dated March 21, 2022.

Therefore, in accordance with 49 CFR 26.53, the City must allow the bidder/offeror an opportunity for administrative reconsideration as outlined below:

1. As part of this reconsideration, the bidder/offeror must have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made an adequate GFE to do so.

2. City decision on reconsideration must be made by an official who did not take part in the original determination that the bidder/offeror failed to meet the goal or make adequate GFE to do so.

3. The bidder/offeror must have the opportunity to meet in person with the City reconsideration official to discuss the issues of whether it met the goal or made an adequate GFE to do so.

4. City must send the bidder/offeror a written decision on reconsideration, explaining the basis for finding that the bidder did or did not meet the goal or make an adequate GFE to do so.

5. The result of the reconsideration process is not administratively appealable to the Department of Transportation.

The City’s March 21, 2022, letter to SEI was notification of the City’s determination and its right to reconsideration. SEI responded by email on March 21, 2022, requesting reconsideration and on March 28, 2022, provided the City with a written argument that it made an adequate GFE to meet the goal. The City acknowledged SEI’s request for reconsideration and began the reconsideration process as provided in the City’s letter to SEI, which was dated April 1, 2022.

The reconsideration hearing was held on April 14, 2022, and in attendance were SEI, two Reconsideration Officials (Officials), and staff. All parties agreed on the meeting format and presented positions regarding the SEI GFE to the Officials. After the reconsideration meeting, the Officials deliberated independently to make a final determination. The Officials’ final determination concluded that SEI did not perform an adequate GFE to meet the DBE participation goal for the reasons identified in the final GFE determination letter to SEI dated Packet Pg. 438 Attachment: Previous Staff Report 5-17-2022 (4.11(f)--Award RFP Bid Schedule No. 5577 Construction Inspection Services) Report to Redding City Council May 10, 2022
Re: 4.11(a)--Award BS No. 5180, Eastside Road over Olney Creek Bridge Page 4 April 22, 2022. All correspondence is attached for reference. Therefore, SEI’s bid is deemed nonresponsive to the bid solicitation. It should be noted that a nonresponsive bid is not unusual in the industry, and in no way provides a reflection of the contractor’s ability to perform the work, nor does it reflect the quality of work or affect the ability to bid on future public works projects.

The City proceeded to evaluate the second low bidder, Abacus, of Redding, California in the amount of $3,703,683.84. The City reviewed Abacus’s proposal and DBE commitment form.

Abacus achieved a 23.18 percent participation goal, thereby exceeding the project goal of 19 percent. Since Abacus met the project DBE goal, the CFR does not require the bidder to submit a GFE, although one was provided by Abacus. Staff recommends awarding the project to the second low bidder, Abacus Construction, Inc. The engineer’s estimate was $2,929,351.17. Total project development costs for this project are estimated to be $645,000. Project development costs include engineering, surveying, right-of-way, environmental, and consultant services.

This project includes the replacement of the Eastside Road bridge over Olney Creek and the rehabilitation of the approach roadway. The work will include removal of the existing bridge in stages, construction of a new bridge over two summer seasons, construction of retaining walls, sidewalk, curb and gutter, utility relocation, roadway construction, and other miscellaneous items of work.

On February 6, 2018, the Council adopted the Mitigated Negative Declaration (MND) and the Mitigation Monitoring Program (MMP) and approved the project, thereby satisfying the requirements of the California Environmental Quality Act Guidelines Section 15074 (CEQA).

Council Priority/City Manager Goals
• This agenda item is a routine operational item.

Attachments
^Resolution
^Location Map
^Bid Tab
^Mitigated Negative Declaration
01-31-2022 Abacus BS 5180 Protest of Apparent Low Bidder 02-15-2022 Stewart GFE Evaluation Final
03-02-2022 Caltrans GFE Memo
03-09-2022 Abacus DBE Complaint Form
03-21-2022 COR GFE Letter to SEI
03-21-2022 Stewart GFE Re-Evaluation final
03-28-2022 SEI Response Letter to GFE Evaluation
04-01-2022 COR Response to SEI GFE Evaluation Letter
04-01-2022 COR Reconsideration Meeting Letter
04-22-2022 COR SEI GFE Reconsideration Final Determination Letter Title 49 CFR 26.53
Title 49 CFR 26.53 Appendix A
Caltrans LAPM Section 9.8
Packet Pg. 439 Attachment: Previous Staff Report 5-17-2022 (4.11(f)--Award RFP Bid Schedule No. 5577 Construction Inspection Services)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Adopt Mitigated Negative Declaration and the Mitigation Monitoring Program, and approve the Eastside Road Bridge at Olney Creek Bridge Replacement Project as described. With this action, the City of Redding will be in compliance with the requirements of the California Environmental Quality Act (CEQA Guidelines §15074).

Fiscal Impact
Adoption of the Mitigated Negative Declaration and the Mitigation Monitoring Program allows the project to move forward toward the final design and construction phases. There is no fiscal impact as a direct result of adopting the Mitigated Negative Declaration, and Mitigation Monitoring Program.

Alternative Action
The City Council (Council) can choose to not adopt the Mitigated Negative Declaration. Without approval of the Mitigated Negative Declaration and the Mitigation Monitoring Program, the project would not proceed forward as a City project, as it would be out of compliance with the California Environmental Quality Act (CEQA).

Background/Analysis
The City’s Public Works Department proposes to replace the existing 30-foot wide, 70-foot long, three span bridge on Eastside Road over Olney Creek. The new 52-foot wide, 86-foot long, three span cast-in-place concrete slab bridge will meet current design standards and hydraulic capacity needs. The new roadway approach will include two 12-foot wide travel lanes, eight foot wide shoulders, and six foot wide sidewalks on Eastside Road. The proposed sidewalk on the east side of the road will connect to an existing sidewalk in the southeastern corner of the project area.

MEETING DATE: February 6, 2018
ITEM NO. 4.11(c)
[S-070-050/A-050-300]
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 4.11(c)--Adoption of Eastside Road Bridge over Olney Creek Mitigated Negative Declaration
Brian Crane, Public Works
Director
Packet Pg. 440 Attachment: Previous Staff Report 2-6-2018 (4.11(f)--Award RFP Bid Schedule No. 5577 Construction Inspection Services) Report to Redding City Council January 30, 2018
Re: 4.11(c)--Adoption of Eastside Road Bridge over Olney Creek MND Page 2 Approaching roadwork will extend approximately 200-feet to the south, and up to 300-feet to the north of the bridge. Construction of the proposed project would require two seasons; beginning in the spring of 2019, with completion by late Fall 2020.

The bridge foundation system will likely consist of spread footings supporting the pier walls and cast-in-drilled-hole (CIDH) piles at the abutments. If CIDH piles are used, pile driving will not be necessary. However, driven piles may be needed to support falsework. If pile driving is used, it would occur during the dry summer months when water would likely be absent from the channel. If water is present during construction, a temporary stream diversion using standard culverts and rounded fish gravel would be used during construction. The spread footing would require an excavation of 6 to 8-feet in the channel, and the bridge abutments would be armored with rock slope protection (RSP). The new abutments would sit above the flow line, with two piers in the channel. Approximately 180 cubic yards of ¼ ton RSP would be placed around the bridge abutments, of which approximately 160 cubic yards would be placed below the ordinary high water mark.

Utilities, including a 10-inch gas line and a 10-inch water line, will be relocated from the existing bridge structure to the new bridge structure. Overhead utilities will not require relocation. An existing storm drain that currently discharges into the creek at the northwest corner of the bridge will be reconstructed through the new bridge abutment. The storm drain will outlet at the northern abutment and onto the RSP, which would dissipate flow energy.

Staged construction will be used to build the bridge. Traffic controls, such as a temporary signal or one way traffic control, will be used to maintain traffic flow through the project area.

Alternative routes such as SR 273 and South Bonnyview Road will be available during construction. The contractor staging area will be located on the abandoned road extension immediately north of the bridge. Temporary construction easements would be required for the project.

An Initial Study (IS) was prepared to satisfy the requirements of the California Environmental Quality Act (CEQA). It describes why the Project is being proposed and the potential impacts to the existing environment. The IS shows that the proposed Project could have a significant effect on biological resources, but with implementation of mitigation measures, those impacts will be reduced to a level considered less than significant. The mitigation measures and conservation measures to be implemented are common practices and include, but are not limited to, biological pre-construction surveys, in-water work windows, impact minimization, exclusionary fencing, erosion control, and on-site plant restoration.

Based on the conclusions made in the IS, a Mitigated Negative Declaration (MND) was prepared. The MND describes the project, including mitigation measures, and makes the determination that there will be no significant effect on the environment provided that the defined mitigation measures are implemented as part of the project.

In addition, a Mitigation and Monitoring Program (MMP) has been written and incorporated into the MND (CEQA Section 21081.6). The MMP will be used by City staff, contractors, agencies, and monitoring personnel during and after the project to ensure effective implementation of the adopted mitigation measures outlined in the MND.

Packet Pg. 441 Attachment: Previous Staff Report 2-6-2018 (4.11(f)--Award RFP Bid Schedule No. 5577 Construction Inspection Services) Report to Redding City Council January 30, 2018
Re: 4.11(c)--Adoption of Eastside Road Bridge over Olney Creek MND Page 3 The IS, MND, and MMP documents were sent to the State Clearinghouse for a 30-day public review period before distribution to pertinent state agencies. They were sent to local resource agencies and the Shasta County Clerk, and posted on the Public Works Department website. A public notice was also sent to landowners in the vicinity of the project and posted in the local newspaper. No comments were received during the public comment period.

The City of Redding is the lead agency for the Project pursuant to CEQA. As the lead CEQA agency, the City Council is authorized to adopt the MND per Redding Municipal Code Section §18.24.070.E and state law. Upon adoption of the MND and approval of the project by the City Council, a Notice of Determination will be filed with the Shasta County Clerk’s Office and the State Clearinghouse, completing the environmental review process. The IS and MND are available in the City Clerk’s office for review.

Council Priority/City Manager Goals
This agenda item is a routine operational item.

Attachments
Mitigated Negative Declaration
Site Location Map
Initial Study (available online)
Mitigation Monitoring Program
Packet Pg. 442 Attachment: Previous Staff Report 2-6-2018 (4.11(f)--Award RFP Bid Schedule No. 5577 Construction Inspection Services)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Conduct a Public Hearing, and upon conclusion, authorize and approve the following:
(1) Offer Ordinance, as further described in Option A (Planning Commission’s recommended changes), amending Redding Municipal Code (RMC) Title 18, (Zoning), Chapter 18.43, (Standards for Specific Land Uses) by amending RMC Section 18.43.180 (Short-Term Rentals), for first reading by title only, waive the first reading; (2) Direct the City Attorney to prepare and the City Clerk to publish a summary ordinance according to law; and
(3) Find that adoption of the ordinance is exempt from environmental review, pursuant to 14 CCR 15378, because the passage of the proposed ordinance is not a project according to the definition in the California Environmental Quality Act and, therefore, is not subject to the provisions requiring environmental review.

Fiscal Impact
There is no General Fund fiscal impact related to the proposed Short-Term Rental (STR) Ordinance amendments.

Alternative Action
The City Council (Council) could adopt proposed ordinance option A, which incorporates revisions recommended by the Planning Commission. Alternatively, Council also could also choose:
(1) To adopt ordinance option B, which is original language as presented by staff at the April 22, 2025, Planning Commission meeting; or
(2) Not adopt ordinance options A or B, provide staff direction, and continue the public hearing to a future Council Meeting or refer to Planning Commission.

MEETING DATE: June 3, 2025
ITEM NO. 6.1
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 6.1--Public Hearing to consider Rezoning Application (RZ-2025-00477), by the City of Redding (City); and Ordinance amending the City's Zoning Ordinance regarding the short-term rental require.

Jeremy Pagan, Development
Services Director/Bldg
Official
Packet Pg. 443
Report to Redding City Council May 29, 2025
Re: 6.1--Rezoning Application RZ-2025-00477, by City of Redding Page 2 Background/Analysis
On April 22, 2025, the Planning Commission considered proposed amendments to the STR Ordinance and provided a recommendation to the Council for their adoption. The proposed code amendments are primarily intended to address the allowance for vacation rentals in apartment units and duplexes in the Downtown Mixed-Use District (DMUD), and, to a lesser degree, address some minor “clean-up” of the code language. The staff report for the April 22, 2025, Planning Commission meeting is attached and provides additional background information and analysis.

Modifications Recommended by Planning Commission
On April 22, 2025, the Planning Commission supported staff’s recommendation for proposed amendments to the STR Ordinance, but also requested additional changes. In particular, the Planning Commission expressed concern that allowing vacation rentals in multi-family units in the DMUD may adversely affect housing stock in the DMUD for long-term renters, especially those who are rent-burdened and in need of housing that is affordable. Accordingly, the Planning Commission recommended a 50 percent cap for multi-family buildings in the DMUD, meaning no more than 50 percent of the dwelling units in any one building can be converted to vacation rentals at any one time, thereby preserving the remaining 50 percent of the dwelling units for long-term renters.

In an effort to provide the Council with some additional context regarding housing availability in the DMUD, staff has prepared an exhibit attached to this staff report which depicts the types of housing and the number of units available in the Downtown Core and Mixed-Use Districts. In summary, there are approximately 300 multi-family units in the DMUD (excluding deedrestricted affordable units), meaning that restricting 50 percent of these units from becoming vacation rentals would equate to securing about 150 units of housing stock for long-term renters.

Based upon a fairly small sample size of advertised rental rates, it appears that much of the multi-family units in the DMUD are affordable to “Low” and “Very Low” income levels per the calculation methodology prescribed by the California Department of Housing and Community Development.

As discussed above, attached to this staff report are two draft ordinances for Council’s consideration, option “A” and option “B”. Option “A” is Planning Commission’s recommended changes, specifically under section 18.43.180(F)(2)(j)(4), and Option “B” is the original language proposed to Planning Commission by City staff.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Packet Pg. 444
Report to Redding City Council May 29, 2025
Re: 6.1--Rezoning Application RZ-2025-00477, by City of Redding Page 3 Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^Draft Ordinance (Option A)
^Strikeout Ordinance (Option A)
^Draft Ordinance (Option B)
^Strikeout Ordinance (Option B)
Downtown Specific Plan Zoning Map
Downtown Residential Use
Planning Commission Staff Report - April 22, 2025
Packet Pg. 445
DRAFT NEW ORDINANCE – OPTION A
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES) BY AMENDING SECTION 18.43.180 (SHORT TERM RENTALS),

THEREBY MAKING CHANGES TO THE STANDARDS FOR

REGULATION OF SHORT-TERM RENTALS
THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:

Section 1. Title 18 (Zoning), Chapter 18.43 (Standards for Specific Land Uses), Section 18.43.180 is amended to read in its entirety as follows:

18.43.180 Short-Term Rentals
A. The purpose of this Section is to establish an appropriate permitting process and standards for Short-Term Rental of dwelling units throughout the City; to provide a visitor experience and accommodation as an alternative to the typical hotel, motel, and bed and breakfast accommodations customarily permitted in the City; to minimize potential negative secondary effects of Short-Term Rental use on surrounding residential neighborhoods; to retain the character of the neighborhoods in which any such use occurs; and ensure the payment of required transient occupancy taxes.

B. Types of Short-Term Rentals. For purposes of this Section, the following Short-Term Rental facilities are established:

1. Hosted Homestay. An owner-occupied “Dwelling Unit,” as defined by Section

18.61.020 under “Residential Structure Types” and excluding apartment units and duplexes, with more than one habitable room, where, for compensation, individual overnight room accommodations are provided for a period of less than thirty (30) days.

2. Vacation Rental. An entire “Dwelling Unit,” as defined by Section 18.61.020 under “Residential Structure Types” and excluding apartment units and duplexes, where, for compensation, overnight accommodations are provided for a period of less than thirty (30) days and the owner may or may not reside within the dwelling unit for the term of the rental.

C. Short-Term Rental Permit Requirements. No person shall use, advertise, or market for use, any dwelling unit on any parcel in any zoning district for Short-Term Rental purposes without first obtaining approval as required by this Section. The following approval process is established:

Packet Pg. 446 Attachment: ^Draft Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

1. Hosted Homestay: This use is permitted within all zoning districts subject to obtaining a Letter of Determination from the Director and providing an affidavit certifying that the owner understands, agrees to, and is in compliance with the requirements of this Section. Applicants may be required to provide a site plan or other information determined necessary by the Director to determine compliance with this Section and shall pay an application fee as may be established by resolution of the City Council. Permits for Hosted Homestays shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.

2. Vacation Rental: This use is permitted within all zoning districts subject to obtaining a Site Development Permit issued by the Director in accordance with the provisions of Chapter 18.11, Common Procedures and Chapter 18.13, Site Development Permits of this Code, except that Site Development Permits for Vacation Rentals shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.

D. Districts in Which Permitted. The regulations of this chapter apply to Short-Term Rentals in all zoning districts.

E. General Requirements - Hosted Homestay.

1. No more than one dwelling unit on a lot may be used at any one time.

2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.

3. Occupancy shall be limited to a maximum of two (2) persons per rented bedroom.

The rental shall be limited to a maximum of 180 rental days per calendar year.

4. The owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.

5. At the time of permit renewal, the property owner shall attest they understand and agree to the Hosted Homestay requirements by signing the Hosted Homestay Affidavit available at the Development Services Department and any payment due must be remitted.

6. Except as set forth in Section 18.43.060 as it relates to licensed bed and breakfast inns, no owner shall cook, prepare or serve for consumption food of any kind for consumption by the Short-Term-Rental tenant.

7. The applicant shall state in the application the number of on-site parking spaces available to tenants, but in no case shall it be less than two on-site spaces. ShortTerm-Rental tenant parking spaces shall be within the primary driveway or other on-site location. No tenant parking in excess of this number of on-site parking spaces is permitted. No tenant is permitted to park on the street. External changes Packet Pg. 447 Attachment: ^Draft Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) to a property such as converting significant areas of front yard landscape for purposes of meeting parking requirements is not allowed.

8. All required on-site parking spaces (including garage parking if identified at time of approval) shall be accessible and available to Short-Term-Rental tenants at all times during the rental periods.

9. Short-Term Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.

10. The applicant shall post emergency evacuation instructions and "house policies" within each Short-Term-Rental tenant bedroom. The house policies shall be included in the rental agreement, and shall be enforced by the applicant. At a minimum, the house policies should:
a. Reinforce the City of Redding’s Noise Standards (RMC Section 18.40.100) by establishing outdoor "quiet hours" between 10:00 p.m. and 7:00 a.m. to minimize disturbance to neighboring residences. Outdoor activities are prohibited during “quiet hours.”
b. Require that Short-Term-Rental tenant vehicles be parked on the premises, not the street in compliance with this Section.

11. The property shall not be used to host non-applicant related weddings, parties, and other similar events.

12. On-site advertising signs or other displays indicating that the residence is being utilized as a Short-Term Rental are prohibited.

13. No person shall advertise a Short-Term Rental on any media platform when such advertisement or notice contains an inaccurate or misleading statement of the requirements of, or indicate amenities not allowed by the Redding Municipal Code including the number of parking spaces.

14. All advertisements shall include the number of permissible parking spaces.

15. A City business license shall be obtained and transient occupancy taxes paid in accordance with Chapter 4.12 as required. All advertising for any Short-Term Rental shall include the City of Redding transient occupancy tax number and the City of Redding business license number assigned to the applicant. With submittal of transient occupancy taxes, the applicant shall also submit a statement indicating the number of Short-Term-Rental tenant stays, and the number of Short-TermRental tenants for the reporting period.

16. The permit is not transferrable to a subsequent property owner or to another property.

Packet Pg. 448 Attachment: ^Draft Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

F. General Requirements - Vacation Rentals.

1. With the exception of items 1 through 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.

2. The following additional provisions shall also be applicable to Vacation Rentals which may be supplemented by requirements established by the Director with approval of the required Site Development Permit as necessary to maintain compatibility of the use with the surrounding properties. a. A Vacation Rental shall not be permitted on properties as follows:
(1) Containing an Accessory Dwelling Unit with a building permit application submitted on or after January 1, 2020 in compliance with Government Code Section 66323, as may be amended from time to time; or
(2) Within a six hundred (600) foot radius of an existing permitted Vacation Rental except that, at the discretion of the Director or appellate body as the case may be, within a three hundred (300) foot radius of an existing Vacation Rental when there is a buffer such as an arterial, rail right-of-way, flood control channel, stream corridor or open space easement between the Vacation Rental units. b. The total number of Vacation Rentals in the City shall not exceed four hundred (400) rentals at any one time.
c. The owner shall be the applicant and any natural person signing an application on behalf of an owner shall have legal authority to bind the owner.
d. A Vacation Rental shall not be rented to multiple separate parties concurrently.
e. The applicant shall keep on file with the City the name, telephone number, and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of the Vacation Rental. This information shall be posted in a conspicuous location within the Vacation Rental dwelling. The local contact person shall be available twenty-four (24) hours a day, seven (7) days a week, to accept messages Packet Pg. 449 Attachment: ^Draft Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) and respond physically to the Vacation Rental within forty-five (45) minutes, if necessary. The name and contact information of the local contact person will be made available to the public. The contact information shall be kept current at all times.
f. Occupancy shall be limited to a maximum of two (2) persons per rented bedroom.
g. The maximum number of persons on the property at any time shall be limited to sixteen (16) persons.
h. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
i. Each operator shall maintain a record of each Short-Term-Rental tenant’s vehicle(s). The record shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The record shall be made available at any time upon request by the City.
j. Notwithstanding Subdivision B(2), an apartment unit or duplex located in the Downtown Redding Specific Plan area may be permitted as a Vacation Rental, subject to the following:
(1) For any parcel located within the Downtown Redding Specific Plan Core District, the requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), F(2)(a)(2), and F(2)(i) shall not apply. (2) For any parcel located within the Downtown Redding Specific Plan Mixed-Use District and adjacent to a Residential Single-Family District, the requirement listed in Subdivision F(2)(a)(2) shall apply, but only as measured to Vacation Rentals located in that Residential Single-Family District.
(3) For any parcel located within the Downtown Redding Specific Plan Mixed-Use District with a legal non-conforming apartment or duplex use, the off-street parking requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), and F(2)(i) shall not apply. (4) No more than 50% of the dwelling units in an apartment building, mixed-use building, or duplex shall be permitted as a Vacation Rental at any one time.

G. Application Required.

1. Where a Site Development Permit is required by this Section, applicants for a Short-Term Rental use shall pay the application fee established by resolution of the City Council and apply for a permit in accordance with the provisions of Chapter

18.11 (Common Procedures), except that notices of the Vacation Rental application Packet Pg. 450 Attachment: ^Draft Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) shall be sent to all owners of real property within six hundred (600) feet of the applicant’s property for a ten (10) business day notification period.

2. In making a determination to approve, conditionally approve, or deny any application, including an application for renewal, for a Hosted Homestay or Vacation Rental, the Director, or appellate body as the case may be, may also consider any factor pertinent to the health, safety and welfare of the immediate neighborhood or public generally including, but not limited to, ability to comply with the provisions set forth in this Section, evidence of operation in violation with this Section, complaints of neighbors, code enforcement activity, timeliness of business permit renewal, timeliness or non-payment of transient occupancy tax, proximity of the property to group homes, residential care facilities, and other neighborhood and site characteristics.

3. Appeal of any determination to approve or deny any application, including an application for renewal, shall be in accordance with Section 18.11.090, except for the appeal period shall be ten (10) business days.

H. Suspension and Termination.

1. The Director, or appellate body, shall apply the criteria set forth in Section

18.43.180(G)(2) in determining whether any permit issued pursuant to this Section shall be suspended or terminated. Notice shall be provided to the applicant pursuant to the procedure set forth in Section 18.11.060.

2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with the requirements of Section 18.11.090.

3. Appeal of the suspension or termination by the Director of a Hosted Homestay Permit must be made to the Planning Commission within ten (10) calendar days of service of the Director’s decision, and appeal of the Planning Commission decision to the City Council must be made within ten (10) calendar days of service of the Planning Commission’s determination. Decisions of the City Council are final, and all challenging a decision of the Director must exhaust all remedies set forth in this Section 18.43.180(H)(3) prior to bringing a challenge pursuant to Code of Civil Procedure section 1094.5.

4. Service shall be deemed effective upon the earliest of: 1) announcement by the approving or appellate body of the decision in the presence of the appellant; 2) personal service on the appellant of a written notice of decision; or 3) deposit of a written notice of decision in the United States Mail.

I. Legal Non-Conforming Uses

Packet Pg. 451 Attachment: ^Draft Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) a. A temporary hardship allowance of not more than six (6) months may be granted by the Director of Development services, or designee, if: 1) a medical condition of the permittee, spouse, domestic partner, or immediate family member jeopardizes the ability of the owner to operate the ShortTerm Rental; or 2) the death of a spouse, domestic partner, or immediate family member of the permittee jeopardizes the ability of the permittee to operate the Short-Term Rental.
b. A long-term rental allowance may be granted by the Director of Development Services, or designee, if the permittee provides proof of a long-term lease of twelve (12) months or longer prior to the expiration of the Short-Term Rental permit. This allowance may be repeated if the conditions set forth in this subsection are met. The length of an allowance shall not exceed the term of the lease or twenty-four (24) months, whichever is shorter. If an allowance is granted pursuant to this subdivision, the existing permit shall terminate per its term. However, the Director of Development Services shall consider said permit to be “active” solely for the purpose of allowing the permittee to reapply for a permit after the allowance granted pursuant to this subdivision has lapsed.

J. Enforcement and Remedies. Enforcement of the provisions of this Section include the civil and equitable remedies as permitted by state law, the issuance of a citation and fine, or other legal remedy as provided by Chapter 1.12 through 1.15, inclusive, of the Redding Municipal Code. Upon notification by the City, any Short-Term Rental operating in violation of the requirements of this Section must terminate operations immediately.

Further, a Site Development Permit issued under the authority of this Section may be revoked in accordance with the procedures established in Chapter 18.11 (Common Procedures).

Section 2. The Council hereby finds and determines that the enactment of this Ordinance is exempt from review pursuant to the California Environmental Quality Act (Public Resources Code section 21000 et seq.) (“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. This Ordinance is exempt from CEQA pursuant to the “common sense” exemption (14 CCR 15061(b)(3)), as it can be seen with certainty that there is no possibility that the adoption of the Ordinance will have a significant effect on the environment.

Section 3. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision will remain in effect to the extent permitted by law.

Section 4. This Ordinance shall take effect thirty (30) calendar days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause publication according to law.

Packet Pg. 452 Attachment: ^Draft Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 3rd day of June, 2025, and was duly read and adopted at a regular meeting on the ____ day of _______, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
___________________________________
JACK MUNNS, Mayor
ATTEST: FORM APPROVED:
_______________________________ ____________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney DATE ATTESTED: ________, 2025
Packet Pg. 453 Attachment: ^Draft Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) STRIKEOUT ORDINANCE – OPTION A
OLD LANGUAGE: STRUCK OUT
NEW LANGUAGE: UNDERLINED
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES) BY AMENDING SECTION 18.43.180 (SHORT TERM RENTALS),

THEREBY MAKING CHANGES TO THE STANDARDS FOR

REGULATION OF SHORT-TERM RENTALS

B. Types of Short-Term Rentals. For purposes of this Section, the following Short-Term Rental facilities are established:

1. Hosted Homestay. An owner-occupied “Dwelling Unit,” as defined by Section

1. Hosted Homestay: This use is permitted within all zoning districts subject to obtaining a Zoning Clearance Letter of Determination from the Director and providing an affidavit certifying that the owner understands, agrees to, and is in compliance with the requirements of this Section. Applicants may be required to provide a site plan or other information determined necessary by the Director to determine compliance with this Section and shall pay an application fee as may be established by resolution of the City Packet Pg. 454 Attachment: ^Strikeout Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) Council. Permits for Hosted Homestays shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.

D. Districts in Which Permitted. The regulations of this chapter apply to Short-Term Rentals in all zoning districts.

E. General Requirements - Hosted Homestay.

1. No more than one dwelling unit on a lot may be used at any one time.

2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.

3. Occupancy shall be limited to a maximum of two (2) adults persons per rented bedroom.

Room The rental shall be limited to a maximum of 180 rental days per calendar year.

4. The owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.

7. The applicant shall state in the application the number of on-site parking spaces available to tenants, but in no case shall it be less than two on-site spaces. Short-TermRental tenant parking spaces shall be within the primary driveway or other on-site location. No tenant parking in excess of this number of on-site parking spaces is permitted. No tenant is permitted to park on the street. External changes to a property such as converting significant areas of front yard landscape for purposes of meeting parking requirements is not allowed.

Packet Pg. 455 Attachment: ^Strikeout Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

9. Short-Term Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.

11. The property shall not be used to host non-applicant related weddings, parties, and other similar events.

12. On-site advertising signs or other displays indicating that the residence is being utilized as a Short-Term Rental are prohibited.

14. All advertisements shall include the number of permissible parking spaces.

16. The permit is not transferrable to a subsequent property owner or to another property.

Packet Pg. 456 Attachment: ^Strikeout Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) F. General Requirements - Vacation Rentals.

1. With the exception of items 1 through 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.

The name and contact information of the local contact person will be made available to the public. The contact information shall be kept current at all times. f. Occupancy shall be limited to a maximum of two (2) adults persons per rented bedroom.
g. The maximum number of persons on the property at any time shall be limited to sixteen (16) persons.

Packet Pg. 457 Attachment: ^Strikeout Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) h. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
i. Each operator shall maintain a record of each Short-Term-Rental tenant’s vehicle(s). The record shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The record shall be made available at any time upon request by the City.
j. Notwithstanding Subdivision B(2), an apartment unit or duplex located in the Downtown Redding Specific Plan area may be permitted as a Vacation Rental, subject to the following:
(1) For any parcel located within the Downtown Redding Specific Plan Core District, Tthe requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), and F(2)(a)(2), and F(2)(i) shall not apply. to a Vacation Rental located within the Downtown Redding Specific Plan Core District.

Notwithstanding Subdivision B(2), an apartment unit located in the Downtown Redding Specific Plan Core District may be permitted as a Short-Term Rental.
(2) For any parcel located within the Downtown Redding Specific Plan Mixed-Use District and adjacent to a Residential Single-Family District, the requirement listed in Subdivision F(2)(a)(2) shall apply, but only as measured to Vacation Rentals located in that Residential Single-Family District.
(3) For any parcel located within the Downtown Redding Specific Plan Mixed-Use District with a legal non-conforming apartment or duplex use, the off-street parking requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), and F(2)(i) shall not apply.
(4) No more than 50% of the dwelling units in an apartment building, mixeduse building, or duplex shall be permitted as a Vacation Rental at any one time.

G. Application Required.

1. Where a Site Development Permit is required by this Section, applicants for a ShortTerm Rental use shall pay the application fee established by resolution of the City Council and apply for a permit in accordance with the provisions of Chapter 18.11 (Common Procedures), except that notices of the Vacation Rental application shall be sent to all owners of real property within six hundred (600) feet of the applicant’s property for a ten (10) business day notification period.

2. In making a determination to approve, conditionally approve, or deny any application, including an application for renewal, for a Hosted Homestay or Vacation Rental, the Director, or appellate body as the case may be, may also consider any factor pertinent to the health, safety and welfare of the immediate neighborhood or public generally Packet Pg. 458 Attachment: ^Strikeout Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) including, but not limited to, ability to comply with the provisions set forth in this Section, evidence of operation in violation with this Section, complaints of neighbors, code enforcement activity, timeliness of business permit renewal, timeliness or nonpayment of transient occupancy tax, proximity of the property to group homes, residential care facilities, and other neighborhood and site characteristics.

H. Suspension and Termination.

1. The Director, or appellate body, shall apply the criteria set forth in Section

2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with the requirements of Section 18.11.090.

18.43.180(H)(3) prior to bringing a challenge pursuant to Code of Civil Procedure section 1094.5.

I. Legal Non-Conforming Uses

Packet Pg. 459 Attachment: ^Strikeout Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) b. A long-term rental allowance may be granted by the Director of Development Services, or designee, if the permittee provides proof of a long-term lease of twelve (12) months or longer prior to the expiration of the Short-Term Rental permit. This exemption allowance may be repeated if the conditions set forth in this subsection are met. The length of an exemption allowance shall not exceed the term of the lease or twenty-four (24) months, whichever is shorter. If an allowance is granted pursuant to this subdivision, the existing permit shall terminate per its term. However, the Director of Development Services shall consider said permit to be “active” solely for the purpose of allowing the permittee to reapply for a permit after the allowance granted pursuant to this subdivision has lapsed.

Packet Pg. 460 Attachment: ^Strikeout Ordinance (Option A) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) DRAFT NEW ORDINANCE – OPTION B
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES) BY AMENDING SECTION 18.43.180 (SHORT TERM RENTALS),

THEREBY MAKING CHANGES TO THE STANDARDS FOR

REGULATION OF SHORT-TERM RENTALS
THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:

Section 1. Title 18 (Zoning), Chapter 18.43 (Standards for Specific Land Uses), Section 18.43.180 is amended to read in its entirety as follows:

B. Types of Short-Term Rentals. For purposes of this Section, the following Short-Term Rental facilities are established:

1. Hosted Homestay. An owner-occupied “Dwelling Unit,” as defined by Section

Packet Pg. 461 Attachment: ^Draft Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

D. Districts in Which Permitted. The regulations of this chapter apply to Short-Term Rentals in all zoning districts.

E. General Requirements - Hosted Homestay.

1. No more than one dwelling unit on a lot may be used at any one time.

2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.

3. Occupancy shall be limited to a maximum of two (2) persons per rented bedroom.

The rental shall be limited to a maximum of 180 rental days per calendar year.

4. The owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.

7. The applicant shall state in the application the number of on-site parking spaces available to tenants, but in no case shall it be less than two on-site spaces. ShortTerm-Rental tenant parking spaces shall be within the primary driveway or other on-site location. No tenant parking in excess of this number of on-site parking spaces is permitted. No tenant is permitted to park on the street. External changes Packet Pg. 462 Attachment: ^Draft Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) to a property such as converting significant areas of front yard landscape for purposes of meeting parking requirements is not allowed.

9. Short-Term Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.

11. The property shall not be used to host non-applicant related weddings, parties, and other similar events.

12. On-site advertising signs or other displays indicating that the residence is being utilized as a Short-Term Rental are prohibited.

14. All advertisements shall include the number of permissible parking spaces.

16. The permit is not transferrable to a subsequent property owner or to another property.

Packet Pg. 463 Attachment: ^Draft Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

F. General Requirements - Vacation Rentals.

1. With the exception of items 1 through 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.

2. The following additional provisions shall also be applicable to Vacation Rentals which may be supplemented by requirements established by the Director with approval of the required Site Development Permit as necessary to maintain compatibility of the use with the surrounding properties. a. A Vacation Rental shall not be permitted on properties as follows:
(1) Containing an Accessory Dwelling Unit with a building permit application submitted on or after January 1, 2020 in compliance with Government Code Section 66323, as may be amended from time to time; or
(2) Within a six hundred (600) foot radius of an existing permitted Vacation Rental except that, at the discretion of the Director or appellate body as the case may be, within a three hundred (300) foot radius of an existing Vacation Rental when there is a buffer such as an arterial, rail right-of-way, flood control channel, stream corridor or open space easement between the Vacation Rental units. b. The total number of Vacation Rentals in the City shall not exceed four hundred (400) rentals at any one time.
c. The owner shall be the applicant and any natural person signing an application on behalf of an owner shall have legal authority to bind the owner.
d. A Vacation Rental shall not be rented to multiple separate parties concurrently.
e. The applicant shall keep on file with the City the name, telephone number, and email address of a local contact person who shall be responsible for responding to questions or concerns regarding the operation of the Vacation Rental. This information shall be posted in a conspicuous location within the Vacation Rental dwelling. The local contact person shall be available twenty-four (24) hours a day, seven (7) days a week, to accept messages Packet Pg. 464 Attachment: ^Draft Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) and respond physically to the Vacation Rental within forty-five (45) minutes, if necessary. The name and contact information of the local contact person will be made available to the public. The contact information shall be kept current at all times.
f. Occupancy shall be limited to a maximum of two (2) persons per rented bedroom.
g. The maximum number of persons on the property at any time shall be limited to sixteen (16) persons.
h. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
i. Each operator shall maintain a record of each Short-Term-Rental tenant’s vehicle(s). The record shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The record shall be made available at any time upon request by the City.
j. Notwithstanding Subdivision B(2), an apartment unit or duplex located in the Downtown Redding Specific Plan area may be permitted as a Vacation Rental, subject to the following:
(1) For any parcel located within the Downtown Redding Specific Plan Core District, the requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), F(2)(a)(2), and F(2)(i) shall not apply. (2) For any parcel located within the Downtown Redding Specific Plan Mixed-Use District and adjacent to a Residential Single-Family District, the requirement listed in Subdivision F(2)(a)(2) shall apply, but only as measured to Vacation Rentals located in that Residential Single-Family District.
(3) For any parcel located within the Downtown Redding Specific Plan Mixed-Use District with a legal non-conforming apartment or duplex use, the off-street parking requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), and F(2)(i) shall not apply.

G. Application Required.

18.11 (Common Procedures), except that notices of the Vacation Rental application shall be sent to all owners of real property within six hundred (600) feet of the applicant’s property for a ten (10) business day notification period.

Packet Pg. 465 Attachment: ^Draft Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

H. Suspension and Termination.

1. The Director, or appellate body, shall apply the criteria set forth in Section

2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with the requirements of Section 18.11.090.

I. Legal Non-Conforming Uses

1. Continuation and abandonment of short-term rentals which are legal nonconforming uses shall not be governed by Section 18.46.020. The sole allowances for continuation of a legal non-conforming use as a short-term rental are by timely renewal of a valid and current short-term rental permit or as follows:
a. A temporary hardship allowance of not more than six (6) months may be granted by the Director of Development services, or designee, if: 1) a Packet Pg. 466 Attachment: ^Draft Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) medical condition of the permittee, spouse, domestic partner, or immediate family member jeopardizes the ability of the owner to operate the ShortTerm Rental; or 2) the death of a spouse, domestic partner, or immediate family member of the permittee jeopardizes the ability of the permittee to operate the Short-Term Rental.
b. A long-term rental allowance may be granted by the Director of Development Services, or designee, if the permittee provides proof of a long-term lease of twelve (12) months or longer prior to the expiration of the Short-Term Rental permit. This allowance may be repeated if the conditions set forth in this subsection are met. The length of an allowance shall not exceed the term of the lease or twenty-four (24) months, whichever is shorter. If an allowance is granted pursuant to this subdivision, the existing permit shall terminate per its term. However, the Director of Development Services shall consider said permit to be “active” solely for the purpose of allowing the permittee to reapply for a permit after the allowance granted pursuant to this subdivision has lapsed.

Further, a Site Development Permit issued under the authority of this Section may be revoked in accordance with the procedures established in Chapter 18.11 (Common Procedures).

Section 4. This Ordinance shall take effect thirty (30) calendar days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause publication according to law.

Packet Pg. 467 Attachment: ^Draft Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 3rd day of June, 2025, and was duly read and adopted at a regular meeting on the ____ day of _______, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
___________________________________
JACK MUNNS, Mayor
ATTEST: FORM APPROVED:
_______________________________ ____________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney DATE ATTESTED: _______, 2025
Packet Pg. 468 Attachment: ^Draft Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) STRIKEOUT ORDINANCE – OPTION B
OLD LANGUAGE: STRUCK OUT
NEW LANGUAGE: UNDERLINED
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES) BY AMENDING SECTION 18.43.180 (SHORT TERM RENTALS),

THEREBY MAKING CHANGES TO THE STANDARDS FOR

REGULATION OF SHORT-TERM RENTALS

B. Types of Short-Term Rentals. For purposes of this Section, the following Short-Term Rental facilities are established:

1. Hosted Homestay. An owner-occupied “Dwelling Unit,” as defined by Section

1. Hosted Homestay: This use is permitted within all zoning districts subject to obtaining a Zoning Clearance Letter of Determination from the Director and providing an affidavit certifying that the owner understands, agrees to, and is in compliance with the requirements of this Section. Applicants may be required to provide a site plan or other information determined necessary by the Director to determine compliance with this Section and shall pay an application fee as may be established by resolution of the City Packet Pg. 469 Attachment: ^Strikeout Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) Council. Permits for Hosted Homestays shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.

D. Districts in Which Permitted. The regulations of this chapter apply to Short-Term Rentals in all zoning districts.

E. General Requirements - Hosted Homestay.

1. No more than one dwelling unit on a lot may be used at any one time.

2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.

3. Occupancy shall be limited to a maximum of two (2) adults persons per rented bedroom.

Room The rental shall be limited to a maximum of 180 rental days per calendar year.

4. The owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.

Packet Pg. 470 Attachment: ^Strikeout Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

9. Short-Term Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.

11. The property shall not be used to host non-applicant related weddings, parties, and other similar events.

12. On-site advertising signs or other displays indicating that the residence is being utilized as a Short-Term Rental are prohibited.

14. All advertisements shall include the number of permissible parking spaces.

16. The permit is not transferrable to a subsequent property owner or to another property.

Packet Pg. 471 Attachment: ^Strikeout Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) F. General Requirements - Vacation Rentals.

1. With the exception of items 1 through 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.

Packet Pg. 472 Attachment: ^Strikeout Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) h. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
i. Each operator shall maintain a record of each Short-Term-Rental tenant’s vehicle(s). The record shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The record shall be made available at any time upon request by the City.
j. Notwithstanding Subdivision B(2), an apartment unit or duplex located in the Downtown Redding Specific Plan area may be permitted as a Vacation Rental, subject to the following:
(1) For any parcel located within the Downtown Redding Specific Plan Core District, Tthe requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), and F(2)(a)(2), and F(2)(i) shall not apply. to a Vacation Rental located within the Downtown Redding Specific Plan Core District.

G. Application Required.

2. In making a determination to approve, conditionally approve, or deny any application, including an application for renewal, for a Hosted Homestay or Vacation Rental, the Director, or appellate body as the case may be, may also consider any factor pertinent to the health, safety and welfare of the immediate neighborhood or public generally including, but not limited to, ability to comply with the provisions set forth in this Section, evidence of operation in violation with this Section, complaints of neighbors, code enforcement activity, timeliness of business permit renewal, timeliness or nonPacket Pg. 473 Attachment: ^Strikeout Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) payment of transient occupancy tax, proximity of the property to group homes, residential care facilities, and other neighborhood and site characteristics.

H. Suspension and Termination.

1. The Director, or appellate body, shall apply the criteria set forth in Section

2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with the requirements of Section 18.11.090.

18.43.180(H)(3) prior to bringing a challenge pursuant to Code of Civil Procedure section 1094.5.

I. Legal Non-Conforming Uses

1. Continuation and abandonment of short-term rentals which are legal nonconforming uses shall not be governed by Section 18.46.020. The sole allowances for continuation of a legal non-conforming use as a short-term rental are by timely renewal of a valid and current short-term rental permit or as follows:
a. A temporary hardship allowance of not more than six (6) months may be granted by the Director of Development services, or designee, if: 1) a medical condition of the permittee, spouse, domestic partner, or immediate family member jeopardizes the ability of the owner to operate the Short-Term Rental; or 2) the death of a spouse, domestic partner, or immediate family member of the permittee jeopardizes the ability of the permittee to operate the Short-Term Rental. b. A long-term rental allowance may be granted by the Director of Development Services, or designee, if the permittee provides proof of a long-term lease of twelve (12) months or longer prior to the expiration of the Short-Term Rental Packet Pg. 474 Attachment: ^Strikeout Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) permit. This exemption allowance may be repeated if the conditions set forth in this subsection are met. The length of an exemption allowance shall not exceed the term of the lease or twenty-four (24) months, whichever is shorter. If an allowance is granted pursuant to this subdivision, the existing permit shall terminate per its term. However, the Director of Development Services shall consider said permit to be “active” solely for the purpose of allowing the permittee to reapply for a permit after the allowance granted pursuant to this subdivision has lapsed.

Packet Pg. 475 Attachment: ^Strikeout Ordinance (Option B) (6.1--Rezoning Application RZ-2025-00477, by City of Redding) PF
RS-3.5

DMUD-SP-BH
PF

DCD-SP-BH
GC
RM-6
OS
GO
GO
LO
PF

DMUD-SP
GC
GO
HC
GO-BH
GC-VR
RM-9

DMUD-SP-BH
RM-20

DMUD-SP

DMUD-SP
GO
LO
RM-9
RM-9
LO
LO
PF
GO
GO
NC
RM-9
OS
LO
RM-9
NC
RM-12
RM-9
OS
RM-18
RM-9
OS
RS-3.5
OS-SP
PF
PF
GC-VR
RM-12
RS-4
RS-4
RS-3.5
RS-4
LO
PF-SP
RS-3.5

DMUD-SP-BH

DMUD-SP-BH
PF
GC-VR
RM-20

DMUD-SP
RS-3.5
Court St
Cypress Ave
East St
California St
N Court St
Market St
Market St
West St
Willis St
Gold St
Railroad Ave
Continental St
Sundia
Grape Ave
Traveled Way
Oregon St
Chestnut St
Waldon St
Lincoln St
Verda St
Sequoia St
Garden Ave
Placer St
Liberty St
Center St
Tehama St
Pine St
Cliff
Dr
Eleventh St
Ada St
Lee St
Oak Ridge Dr
Florence St
Terrace St
Auditorium Dr
Lowe S
Rose
Av
e
Prince St
Hill St
A
melia Ct
Civic Center Dr
Gilbert St
Vista Ave
Grace Ave
Crestview Ave
Sacramento St
Halverson Ct
Shasta St
Yuba St
Center St
Sacramento St
Gold St
Gold St
Sonoma St
Butte St
Grape
Ave
Gold St
Trinity St
South St
Riverside Dr
East St
Che
stnut St
Butte St
Liberty
St
Benton Dr
West St
South St
Eureka Way
Pine St
Placer St
Market St
MTG. DATE:

ITEM:

ATTACHMENT:

GIS DIVISION

INFORMATION TECHNOLOGY DEPARTMENT
DATE PRODUCED: - 0 200 400 Feet

ZONING MAP
P:\Planning\ProProjects\General Location\DowntownSP_Location.aprx MAY 1, 2024
Downtown Specific Boundary
DMUD District

SACRAMENTO RIVER

DOWNTOWN SPECIFIC PLAN

CITY OF REDDING
Packet Pg. 476 Attachment: Downtown Specific Plan Zoning Map (6.1--Rezoning Application RZ-2025-00477, by City of Redding) Court St
Cypress Ave
South St
East St
Shasta St
N Court St
Pine St
Market St
California St
Market St
West St
Gold St
Yuba St
Railroad Ave
Continental St
Oregon St
Chestnut St
Waldon St
California St
Lincoln St
Verda St
Sequoia St
Garden Ave
Placer St
Placer St
Center St
Tehama St
Pine St
East St
Eureka Way
Lee St
Florence St
Prince St
Gilbert St
Grace Ave
Butte St
Yuba St
Center St
Sacramento St
Sonoma St
Butte St
Gold St
Grape
Ave
Trinity St
South St
Riverside Dr
East St
Liberty
St
Downtown Residential Use
City of Redding /
Print Date: May 19, 2025
0 500 1,000
Feet
P:\Planning\Pro Projects\ShortTermRentals\ShortTermRentals.aprx Residential Use
Mixed-use
Multi-family
Single-family
Parcel
Building Footprints
Downtown Mixed-Use District
Downtown Core
Sacramento River

DCD DMUD
SF Units 3 21
MF Units 140 317
MU Units 206 10
Total 349 348
Affordable Units 277 34
Market Units 72 314
Packet Pg. 477 Attachment: Downtown Residential Use (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

CITY OF REDDING

REPORT TO REDDING PLANNING COMMISSION
Recommendation
Conduct a public hearing, and upon conclusion, recommend that the City Council adopt an Ordinance amending Title 18, Zoning, of the Redding Municipal Code as it pertains to short-term rentals.

Background
On June 20, 2023, the City Council (Council) considered and approved the latest amendments to the Short-Term Rental Ordinance, consisting primarily of the following revisions:
• Added a City-wide cap of 400 units for Vacation Rentals; • Adopted a density buffer separation of 600 feet between Vacation Rentals; • Refined the definition for Hosted Homestay and Vacation Rental to exclude apartment units and duplexes, except that Vacation Rentals may be permitted in apartment units only in the Downtown Core District;
• Required a property inspection prior to issuance of a permit for Vacation Rentals; • Established annual renewals for Hosted Homestays.

Nearly one year after the adoption of these amendments, staff made a presentation to Council on May 7, 2024, and provided general updates regarding implementation of the ordinance. Staff had received a number of inquiries from owners of apartment units in the Downtown Mixed-Use District (DMUD) who wished to obtain permits to operate a Vacation Rental at their property.

However, the ordinance did not (and still does not) allow for Vacation Rentals in apartment or duplex units in the DMUD. Therefore, a significant point of discussion with the Council on May 7, 2024 was whether or not to modify the ordinance to allow for this use. Council offered some initial feedback, but ultimately directed staff to review the ordinance and bring back recommendations for the Planning Commission to consider.

MEETING DATE: April 22, 2025
ITEM NO. 4(b)2
FROM:
***APPROVED BY***
[email protected]
SUBJECT: 4(b)2-- Rezoning Application RZ-2025-00477, by the City of Redding, to consider an amendment to the City’s Zoning Ordinance pertaining to modifications to the shortterm rental requirements (Section 18.43.180).

Packet Pg. 478 Packet Pg. 52 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) Report to Redding Planning Commission April 18, 2025
Re: 4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding Page 2 Since the May 7, 2024 Council meeting, staff has continued to receive feedback from downtown property owners requesting revisions to the ordinance that would allow for the operation of Vacation Rentals in their apartment or duplex units located in the DMUD. Accordingly, staff has analyzed this option, and determined that it is appropriate to allow for this use based on the following:
• Vacation Rentals are already permitted for apartment units in the Downtown Core District and expansion of this use to the DMUD is logical. • The vision of the Downtown Specific Plan (DTSP) is, in part, to create a downtown that is, “economically vibrant, and … inviting to residents and visitors alike.” • A guiding principle of the DTSP is to “develop a mix of downtown land uses that attract and meet the needs of the community and visitors.”
• The zoning districts to the north, west, and south of the DMUD are largely General Commercial (GC), Public Facilities (PF), General Office (GO), and Residential Multiple Family (RM-9 and RM-20). These zoning districts act as a natural buffer between the more intensive short-term rental land use and neighboring single-family zoning districts. • The Garden Tract neighborhood comprises the single-family zoning district to the east of the DMUD with no other zoning districts in between to act as a buffer. The proposed code amendments recognize this fact and require the 600-foot buffer rule be applied in this case, thereby softening the impact of the short-term rental land use on single-family zoning districts, which is consistent with the rules applied throughout the rest of the City.

The proposed code amendments are divided into two categories: 1) Vacation Rentals in Apartment Units and Duplexes in the DMUD, and 2) minor “clean-up” items. The proposed text amendments are summarized as follows:

Vacation Rentals in Apartment Units and Duplexes in the DMUD Section 18.43.180(F)(2)(j): Add section to allow Vacation Rentals in duplexes in the Downtown Redding Specific Plan Core District and expand the allowance of Vacation Rentals in apartment units and duplexes in the Downtown Redding Specific Plan Mixed-Use District.

Section 18.43.180(F)(2)(j)(1): Amend and clarify regulations not applicable to Vacation Rentals in the Downtown Redding Specific Plan Core District.

Section 18.43.180(F)(2)(j)(2): Add section and clarify that Vacation Rental buffer requirements are only applicable to parcels in the Downtown Redding Specific Plan Mixed-Use District adjacent to a Residential Single-Family District.

Section 18.43.180(F)(2)(j)(3): Add section to clarify regulations not applicable to Vacation Rentals on parcels in the Downtown Redding Specific Plan Mixed-Use District with a legal non-conforming apartment or duplex use.

Minor Clean-Up Items
Section 18.43.180(C)(1): Amend Hosted Homestay permit type to be consistent with standard operating procedures.

Packet Pg. 479 Packet Pg. 53 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) Report to Redding Planning Commission April 18, 2025
Re: 4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding Page 3 Section 18.43.180(E)(3): Amend Hosted Homestay rental occupant type to align with industry standard and minor revision of verbiage.

Section 18.43.180(F)(2)(a)(1): Correct the reference to the appropriate Government Code Section.

Section 18.43.180(F)(2)(a)(2): Amend the type of road classification and add open space easement as natural buffer allowances.

Section 18.43.180(F)(2)(e): Clarify local contact availability for responding to operation questions or concerns.

Section 18.43.180(F)(2)(f): Amend Vacation Rental occupant type to align with industry standard and minor revision of terms.

Section 18st.43.180(I)(1)(b): Amend term language.

Alternatives
The Planning Commission has the option of recommending that the City Council adopt or not adopt the proposed amendments or direct staff to modify the proposed amendments prior to consideration by the Council. Should changes be requested, the Commission should provide clear direction to staff.

Environmental Determination
The proposed ordinance is not a “project” as defined in the California Environmental Quality Act (CEQA) and, therefore, is not subject to the provisions requiring environmental review.

Planning Commission Authority
Section 18.10.030 of the Zoning Ordinance authorizes the Planning Commission to make recommendations to the City Council on amendments to Title 18.

Conclusions
Adoption of the proposed minor amendments to the text of the Redding Municipal Code would bring consistency, clarify the intent of the existing regulations, and further enhance the variety of lodging available to travelers within our growing and vibrant Downtown, consistent with the goals and policies of the Downtown Specific Plan. Therefore, staff recommends that the Commission recommend adoption of the proposed amendments by the Council.

Attachments
Downtown Specific Plan Zoning Map
Chapter 18.43.180, Proposed Amended STR Ordinance
Chapter 18.43.180, Proposed Amended STR Ordinance Strikeout Version Packet Pg. 480 Packet Pg. 54 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) PF
RS-3.5

DMUD-SP-BH
PF

DCD-SP-BH
GC
RM-6
OS
GO
GO
LO
PF

DMUD-SP
GC
GO
HC
GO-BH
GC-VR
RM-9

DMUD-SP-BH
RM-20

DMUD-SP

DMUD-SP
GO
LO
RM-9
RM-9
LO
LO
PF
GO
GO
NC
RM-9
OS
LO
RM-9
NC
RM-12
RM-9
OS
RM-18
RM-9
OS
RS-3.5
OS-SP
PF
PF
GC-VR
RM-12
RS-4
RS-4
RS-3.5
RS-4
LO
PF-SP
RS-3.5

DMUD-SP-BH

DMUD-SP-BH
PF
GC-VR
RM-20

ITEM:

ATTACHMENT:

GIS DIVISION

INFORMATION TECHNOLOGY DEPARTMENT
DATE PRODUCED: - 0 200 400 Feet

ZONING MAP
P:\Planning\ProProjects\General Location\DowntownSP_Location.aprx MAY 1, 2024
Downtown Specific Boundary
DMUD District

SACRAMENTO RIVER

DOWNTOWN SPECIFIC PLAN

CITY OF REDDING
Packet Pg. 55
Attachment: Downtown Specific Plan Zoning Map (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 481 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

DRAFT NEW ORDINANCE
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES) BY AMENDING SECTION 18.43.180 (SHORT TERM RENTALS),

THEREBY MAKING CHANGES TO THE STANDARDS FOR

REGULATION OF SHORT-TERM RENTALS
THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:

Section 1. Title 18 (Zoning), Chapter 18.43 (Standards for Specific Land Uses), Section 18.43.180 is amended to read in its entirety as follows:

B. Types of Short-Term Rentals. For purposes of this Section, the following Short-Term Rental facilities are established:

1. Hosted Homestay. An owner-occupied “Dwelling Unit,” as defined by Section

1. Hosted Homestay: This use is permitted within all zoning districts subject to obtaining a Letter of Determination from the Director and providing an affidavit certifying that Packet Pg. 56
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 482 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) the owner understands, agrees to, and is in compliance with the requirements of this Section. Applicants may be required to provide a site plan or other information determined necessary by the Director to determine compliance with this Section and shall pay an application fee as may be established by resolution of the City Council.

Permits for Hosted Homestays shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.

D. Districts in Which Permitted. The regulations of this chapter apply to Short-Term Rentals in all zoning districts.

E. General Requirements - Hosted Homestay.

1. No more than one dwelling unit on a lot may be used at any one time.

2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.

3. Occupancy shall be limited to a maximum of two (2) persons per rented bedroom. The rental shall be limited to a maximum of 180 rental days per calendar year.

4. The owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.

Packet Pg. 57
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 483 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

9. Short-Term Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.

11. The property shall not be used to host non-applicant related weddings, parties, and other similar events.

12. On-site advertising signs or other displays indicating that the residence is being utilized as a Short-Term Rental are prohibited.

14. All advertisements shall include the number of permissible parking spaces.

16. The permit is not transferrable to a subsequent property owner or to another property.

17. This ordinance shall not be construed as waiving or otherwise impacting the rights and obligations of any individual, group, or the members of any homeowner’s association, as defined, to comply with or enforce CC&R’s and no permit shall be issued when it is demonstrated by substantial evidence that issuance of a permit will be in contradiction Packet Pg. 58
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 484 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) to any recorded CC&R’s or other record providing record notice of a restriction on the use of the property.

F. General Requirements - Vacation Rentals.

1. With the exception of items 1 through 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.

Packet Pg. 59
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 485 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) g. The maximum number of persons on the property at any time shall be limited to sixteen (16) persons.
h. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
i. Each operator shall maintain a record of each Short-Term-Rental tenant’s vehicle(s). The record shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The record shall be made available at any time upon request by the City.
j. Notwithstanding Subdivision B(2), an apartment unit or duplex located in the Downtown Redding Specific Plan area may be permitted as a Vacation Rental, subject to the following:
(1) For any parcel located within the Downtown Redding Specific Plan Core District, the requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), F(2)(a)(2), and F(2)(i) shall not apply.
(2) For any parcel located within the Downtown Redding Specific Plan Mixed-Use District and adjacent to a Residential Single-Family District, the requirement listed in Subdivision F(2)(a)(2) shall apply, but only as measured to Vacation Rentals located in that Residential Single-Family District.
(3) For any parcel located within the Downtown Redding Specific Plan Mixed-Use District with a legal non-conforming apartment or duplex use, the off-street parking requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), and F(2)(i) shall not apply.

G. Application Required.

2. In making a determination to approve, conditionally approve, or deny any application, including an application for renewal, for a Hosted Homestay or Vacation Rental, the Director, or appellate body as the case may be, may also consider any factor pertinent to the health, safety and welfare of the immediate neighborhood or public generally including, but not limited to, ability to comply with the provisions set forth in this Section, evidence of operation in violation with this Section, complaints of neighbors, code enforcement activity, timeliness of business permit renewal, timeliness or nonpayment of transient occupancy tax, proximity of the property to group homes, residential care facilities, and other neighborhood and site characteristics.

Packet Pg. 60
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 486 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

H. Suspension and Termination.

1. The Director, or appellate body, shall apply the criteria set forth in Section

2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with the requirements of Section 18.11.090.

18.43.180(H)(3) prior to bringing a challenge pursuant to Code of Civil Procedure section 1094.5.

I. Legal Non-Conforming Uses

1. Continuation and abandonment of short-term rentals which are legal nonconforming uses shall not be governed by Section 18.46.020. The sole allowances for continuation of a legal non-conforming use as a short-term rental are by timely renewal of a valid and current short-term rental permit or as follows:
a. A temporary hardship allowance of not more than six (6) months may be granted by the Director of Development services, or designee, if: 1) a medical condition of the permittee, spouse, domestic partner, or immediate family member jeopardizes the ability of the owner to operate the Short-Term Rental; or 2) the death of a spouse, domestic partner, or immediate family member of the permittee jeopardizes the ability of the permittee to operate the Short-Term Rental. b. A long-term rental allowance may be granted by the Director of Development Services, or designee, if the permittee provides proof of a long-term lease of twelve (12) months or longer prior to the expiration of the Short-Term Rental permit. This allowance may be repeated if the conditions set forth in this subsection are met. The length of an allowance shall not exceed the term of the Packet Pg. 61
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 487 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) lease or twenty-four (24) months, whichever is shorter. If an allowance is granted pursuant to this subdivision, the existing permit shall terminate per its term.

However, the Director of Development Services shall consider said permit to be “active” solely for the purpose of allowing the permittee to reapply for a permit after the allowance granted pursuant to this subdivision has lapsed.

Section 4. This Ordinance shall take effect thirty (30) calendar days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause publication according to law.

I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 2nd day of May, 2025, and was duly read and adopted at a regular meeting on the ____ day of _______, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
___________________________________
JACK MUNNS, Mayor
Packet Pg. 62
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 488 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) ATTEST: FORM APPROVED:
_______________________________ ____________________________________ SHARLENE TIPTON, City Clerk CHRISTIAN CURTIS, City Attorney DATE ATTESTED: May ____, 2025
Packet Pg. 63
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance (4(b)2-- Rezoning Application RZ-2025-00477, by City of Redding) Packet Pg. 489 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

STRIKEOUT ORDINANCE
OLD LANGUAGE: STRUCK OUT
NEW LANGUAGE: UNDERLINED
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 18
(ZONING), CHAPTER 18.43 (STANDARDS FOR SPECIFIC LAND USES) BY AMENDING SECTION 18.43.180 (SHORT TERM RENTALS),

THEREBY MAKING CHANGES TO THE STANDARDS FOR

REGULATION OF SHORT-TERM RENTALS

B. Types of Short-Term Rentals. For purposes of this Section, the following Short-Term Rental facilities are established:

1. Hosted Homestay. An owner-occupied “Dwelling Unit,” as defined by Section

1. Hosted Homestay: This use is permitted within all zoning districts subject to obtaining a Zoning Clearance Letter of Determination from the Director and providing an affidavit certifying that the owner understands, agrees to, and is in compliance with the requirements of this Section. Applicants may be required to provide a site plan or other information determined necessary by the Director to determine compliance with this Section and shall pay an application fee as may be established by resolution of the City Packet Pg. 64
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance Strikeout Version (4(b)2-- Rezoning Application RZ-2025-00477, by City of Packet Pg. 490 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) Council. Permits for Hosted Homestays shall expire twelve (12) months from issuance and are subject to a requirement for renewal in accordance with this Section.

D. Districts in Which Permitted. The regulations of this chapter apply to Short-Term Rentals in all zoning districts.

E. General Requirements - Hosted Homestay.

1. No more than one dwelling unit on a lot may be used at any one time.

2. A maximum of two rooms may be available for rent at any time. A floor plan shall be submitted with the affidavit indicating the rooms for rent.

3. Occupancy shall be limited to a maximum of two (2) adults persons per rented bedroom.

Room The rental shall be limited to a maximum of 180 rental days per calendar year.

4. The owner shall be the applicant, and other than for purposes of daily routines, the applicant must occupy the residence at all times when rooms are being provided for rent.

Packet Pg. 65
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance Strikeout Version (4(b)2-- Rezoning Application RZ-2025-00477, by City of Packet Pg. 491 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

9. Short-Term Rentals shall meet all applicable building, health, fire and related safety codes at all times, including provision of working smoke and carbon monoxide detectors.

11. The property shall not be used to host non-applicant related weddings, parties, and other similar events.

12. On-site advertising signs or other displays indicating that the residence is being utilized as a Short-Term Rental are prohibited.

14. All advertisements shall include the number of permissible parking spaces.

16. The permit is not transferrable to a subsequent property owner or to another property.

Packet Pg. 66
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance Strikeout Version (4(b)2-- Rezoning Application RZ-2025-00477, by City of Packet Pg. 492 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) F. General Requirements - Vacation Rentals.

1. With the exception of items 1 through 6 listed in Section 18.43.180(E) above, the General Requirements provisions for Hosted Homestays shall apply to Vacation Rentals.

Packet Pg. 67
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance Strikeout Version (4(b)2-- Rezoning Application RZ-2025-00477, by City of Packet Pg. 493 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) h. Prior to issuance of a permit, a physical inspection of the dwelling unit and property shall be conducted by City staff.
i. Each operator shall maintain a record of each Short-Term-Rental tenant’s vehicle(s). The record shall minimally consist of the rental period, the license plate, make, model, and color for each vehicle. The record shall be made available at any time upon request by the City.
j. Notwithstanding Subdivision B(2), an apartment unit or duplex located in the Downtown Redding Specific Plan area may be permitted as a Vacation Rental, subject to the following:
(1) For any parcel located within the Downtown Redding Specific Plan Core District, Tthe requirements listed in Subdivisions E(7), E(8), E(10)(b), E(14), and F(2)(a)(2), and F(2)(i) shall not apply. to a Vacation Rental located within the Downtown Redding Specific Plan Core District.

G. Application Required.

2. In making a determination to approve, conditionally approve, or deny any application, including an application for renewal, for a Hosted Homestay or Vacation Rental, the Director, or appellate body as the case may be, may also consider any factor pertinent to the health, safety and welfare of the immediate neighborhood or public generally including, but not limited to, ability to comply with the provisions set forth in this Section, evidence of operation in violation with this Section, complaints of neighbors, code enforcement activity, timeliness of business permit renewal, timeliness or nonPacket Pg. 68 Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance Strikeout Version (4(b)2-- Rezoning Application RZ-2025-00477, by City of Packet Pg. 494 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) payment of transient occupancy tax, proximity of the property to group homes, residential care facilities, and other neighborhood and site characteristics.

H. Suspension and Termination.

1. The Director, or appellate body, shall apply the criteria set forth in Section

2. Appeal of the suspension or termination by the Director of a Vacation Rental Permit shall be in accordance with the requirements of Section 18.11.090.

18.43.180(H)(3) prior to bringing a challenge pursuant to Code of Civil Procedure section 1094.5.

I. Legal Non-Conforming Uses

1. Continuation and abandonment of short-term rentals which are legal nonconforming uses shall not be governed by Section 18.46.020. The sole allowances for continuation of a legal non-conforming use as a short-term rental are by timely renewal of a valid and current short-term rental permit or as follows:
a. A temporary hardship allowance of not more than six (6) months may be granted by the Director of Development services, or designee, if: 1) a medical condition of the permittee, spouse, domestic partner, or immediate family member jeopardizes the ability of the owner to operate the Short-Term Rental; or 2) the death of a spouse, domestic partner, or immediate family member of the permittee jeopardizes the ability of the permittee to operate the Short-Term Rental. b. A long-term rental allowance may be granted by the Director of Development Services, or designee, if the permittee provides proof of a long-term lease of twelve (12) months or longer prior to the expiration of the Short-Term Rental Packet Pg. 69
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance Strikeout Version (4(b)2-- Rezoning Application RZ-2025-00477, by City of Packet Pg. 495 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding) permit. This exemption allowance may be repeated if the conditions set forth in this subsection are met. The length of an exemption allowance shall not exceed the term of the lease or twenty-four (24) months, whichever is shorter. If an allowance is granted pursuant to this subdivision, the existing permit shall terminate per its term. However, the Director of Development Services shall consider said permit to be “active” solely for the purpose of allowing the permittee to reapply for a permit after the allowance granted pursuant to this subdivision has lapsed.

Packet Pg. 70
Attachment: Chapter 18.43.180, Proposed Amended STR Ordinance Strikeout Version (4(b)2-- Rezoning Application RZ-2025-00477, by City of Packet Pg. 496 Attachment: Planning Commission Staff Report - April 22, 2025 (6.1--Rezoning Application RZ-2025-00477, by City of Redding)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following proposed actions related to the sale of City-owned real property located at 815 Parkview Avenue (Assessor Parcel No. 104-350-019), 825 Parkview Avenue (Assessor Parcel No. 104-350-018), and 2520 Leland Avenue (Assessor Parcel No. 104- 350-020) to FaithWorks Community Coalition, Inc.:
(1) Conditioned upon the approval of the Disposition and Financing Agreement (DFA) by the City Attorney, authorize the Mayor to execute the DFA with FaithWorks Community Coalition, Inc. for the transfer and development of the above-referenced parcels; (2) Authorize the City Manager, or designee, to execute all documents necessary to complete the transaction, including but not limited to: (a) a seller carryback loan in the amount of $153,000 at one percent for a 55-year term for the acquisition of the parcels; and (b) a development loan not to exceed $1,600,000 at one percent for a 55-year term to support the construction of a 14-unit, mixed-income, mixed-use development; (3) Find that the aforementioned actions such as allocating funding are exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15312- Surplus Government Property Sales) and 15061(b)(3)–Common Sense Exemption; and (4) Find that administrative and management activities, such as allocating funding, are exempt under 24 CFR §58.34(a)(3) administrative and management activities under the National Environmental Policy Act. The construction of the project has been reviewed for environmental compliance and an Authority to Use Grant Funds has already been received from the Department of Housing and Urban Development.

Fiscal Impact
Staff received an appraisal report for 815 Parkview Avenue (Assessor’s Parcel Number (APN) 104-350-019), 825 Parkview Avenue (APN 104-350-018) and 2520 Leland Avenue (APN 104- 350-020) (Properties) - the combined appraised market value of these properties is $153,000. As proposed in the Disposition and Financing Agreement (DFA), FaithWorks Community Coalition, Inc. (FaithWorks) will purchase the properties for market value utilizing a secured MEETING DATE: June 3, 2025
ITEM NO. 9.2(d)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.2(d)--Consider Disposition and Financing Agreement with FaithWorks Community Coalition, Inc.

Steve Bade, Assistant City
Manager
Packet Pg. 497
Report to Redding City Council May 28, 2025
Re: 9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc. Page 2 City Land Loan with a 55-year term.

The estimated total development cost to transform the vacant land into a mixed-used project consisting of at least 14 income-restricted units and ground floor commercial space (Project) is estimated to be $4.5 million. To date, a total of $1,505,882 has been committed to the project that include $800,000 in Whole Person Care (WPC) funds committed by Shasta County Health and Human Services Agency (a portion of these funds have already been expended toward predevelopment); and $705,882 in REAP 2.0 funds from the Shasta Regional Transportation Agency (SRTA). FaithWorks is expected to secure additional funding in the amount of $1.4 million from a lending partner or through additional grant funding obtained by Faithworks.

As proposed in the DFA, a City Residual Receipts Loan in the amount of $1.6 million from City of Redding (City) Housing Division grant funds to support pre-development and construction costs, including construction of the mixed-use structure, underground utility installation, landscaping, hardscape, and offsite improvements. Grant resources such as the Housing and Homelessness Incentive Program (HHIP) funding, Encampment Resolution Funding 3-Lookback grant, or other grant sources may be utilized for the loan. The funds will be structured as a 55- year loan to FaithWorks, with one-percent annual interest rate and repayment based on residual receipts. There is no impact to the General Fund.

Project Funding Summary
Alternative Action
City Council (Council) could choose not to sell the surplus properties or provide funding to the proposed project. Such actions would require alternate direction to staff and funds already allocated to the project could be lost.

Background/Analysis
On December 21, 2023, staff issued a Request for Proposal (RFP) to solicit interest from qualified developers to purchase surplus properties identified above to develop the project. No proposals were received in response to the RFP. As such, staff contacted FaithWorks directly to explore their interest in developing and owning the project.

FaithWorks is a local non-profit housing and public service provider that operates several transitional and permanent supportive housing projects. FaithWorks’ current housing projects include assisting homeless families with children at Francis Court I, II and III and providing transitional housing to veterans at the House of Cornelius. In addition, FaithWorks offers low barrier services designed to support individuals experiencing, or at risk of, homelessness such as case management, housing navigation, and referrals to local partner agencies. The organization is Funding Source Amount
Whole Person Care $800,000
REAP 2.0 $705,882
FaithWorks' Loan $1,600,000
FaithWorks’ Private
Funding $1,400,000
Total $4,505,882
Packet Pg. 498
Report to Redding City Council May 28, 2025
Re: 9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc. Page 3 founded on the belief that when basic needs are being met (food, clothing, and shelter), individuals are better equipped to address long-term wellness and stability including physical, mental, spiritual, emotional, and relational health. Since 2006, FaithWorks has sheltered and worked to rebuild the lives of 300 unsheltered households, including 86 veterans and more than 500 children.

The subject properties are zoned Neighborhood Commercial - Mixed-Use - Design Review (NCMU-DR). Upon completion of the project, FaithWorks’ plans to provide onsite supportive services to the income-eligible tenants and administrative functions within the new development.

The project is currently in the design phase with Nichols, Melberg and Rosetto and will be subject to a Site Development Permit through the City’s Planning Department. The proposed development is a two-story, mixed-use, mixed-income project consisting of 14 residential units—four studio apartments and ten one-bedroom apartments—facing Leland Avenue. The commercial component, which fronts Parkview, will house FaithWorks’ administrative offices and provide space for case management services dedicated to residents of the project.

Construction is anticipated to commence in the spring of 2026.

Environmental Review
Staff has reviewed the actions and determined that allocation of funds is exempt from environmental review under the California Environmental Quality Act (CEQA), pursuant to Section 15312–Surplus Government Property Sales and 15061(b)(3)–Common Sense Exemption. CEQA applies only to projects which have the potential for causing a significant effect on the environment. A Separate CEQA environmental review will be completed once the details of the project are fully vetted.

Staff has reviewed the actions and determined that allocation of funds is exempt from environmental review under the National Environmental Policy Act (NEPA), pursuant to 24 CFR 58.34(a)(3) Administrative and Management Activities. A NEPA Environmental Assessment has already been completed for the Parkview Project with a Finding of No Significant Impact.

Council Priority/City Manager Goals
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Public Safety – “Work to improve all aspects of public safety to help people feel secure and safe where they live, work, and play in the City of Redding.” Attachments
Faithworks IV DDA Parkview Infill CA2 DRAFT
Packet Pg. 499
=============================================

DISPOSITION AND FINANCING AGREEMENT

FAITHWORKS IV
815, 825 Parkview Avenue and 2520 Leland Avenue
=============================================
By and Between

CITY OF REDDING
and
FAITHWORKS COMMUNITY COALITION, INC.

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DISPOSITION AND FINANCING AGREEMENT
This DISPOSITION AND FINANCING AGREEMENT (“DFA”) is made and entered into by and between the City of Redding, a municipal corporation and general law city (“City”), and FaithWorks Community Coalition, Inc. (”FaithWorks” or “Builder”), a California nonprofit public benefit corporation.

RECITALS
A. The City is a municipal corporation and general law city.

B. The City is the owner of surplus property located at 815 Parkview Avenue, 825 Parkview Avenue and 2520 Leland Avenue, Redding, Shasta County, California, Assessor’s Parcel Numbers 104-350-018-000, 104-350-019-000 & 104-350-020-000, (the “Parkview Properties”). The Parkview Properties are approximately .48 acres combined and are comprised of three separate vacant parcels. The Parkview Properties are depicted in Exhibit 1, “Legal Description and Location Map,” attached hereto and incorporated by reference herein and was recently appraised for $153,000.

C. Builder is interested in purchasing the Parkview Properties from the City via a seller-carry back loan based on Fair Market Value and constructing, and managing an incomequalified mixed-use development consisting of a minimum of fourteen (14) rental units on the Parkview Properties (the “Project”) wherein six will be “income qualifying units”. The Income Qualifying Units will be made available to, restrict occupancy to, and rented at an affordable rent to six Low-Income (80% median income) households as required by funding sources.

D. The City desires to provide a seller-carry back land loan in the amount of $153,000 for Builder to purchase the Parkview Properties.

E. Builder is in need of financial assistance to construct the Project as the cost to construct exceeds the Builder’s financial equity. The City has applied for and was awarded various grants and funds to support the Project including but not limited to: an allocation of $705,882.35 in Regional Early Action Planning Grants 2021 (REAP 2.0); $800,000 in Whole Person Care (WPC) funds; Housing and Homelessness Incentive Program (“HHIP”) funds, and Encampment Resolution Funding 3-Lookback (ERF 3-L). The City wishes to use any or all of these funding sources or any other funding source necessary to complete the development of this Project.

F. City and Builder desire to enter into this DFA to set forth the mutual obligations of the City and Builder in connection with the disposition and conveyance of the Property to Builder; including the planning, designing, financing, and construction of the Project. As such, the City desires to provide a loan in the amount of $1,600,000 to the Builder for the Project.

The remainder of this page is intentionally left blank.

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AGREEMENT

1. Definitions. The following definitions shall apply for the purposes of this DFA:

1.1 “Affordability Period” shall mean a period commencing upon the date of issuance of the Certificate of Occupancy for the Project and continuing for fifty-five (55) years.

1.2 “Affordable Rent” shall have the meaning set forth in Health and Safety Code Section 50053, as it exists as of the date of this DFA.

1.3 “Approved Plans” are the Plans, prepared in accordance with this DFA, that have been approved by the Builder and the City of Redding Development Services Department and the Housing Division.

1.4 “Area Median Income” shall mean the current area median income adjusted for family size appropriate to the size of the rental unit applicable to Shasta County, as determined by the United States Department of Housing and Urban Development.

1.41 “Builder” shall mean FaithWorks Community Coalition, Inc., a nonprofit public benefit corporation organized under the laws of the State of California. The principal office and mailing address of the Builder is 2825 West Street, #1, Redding, CA 96001. The phone number for voice communication with the Builder is 530.242.1492 and for facsimile transmittal to the Builder is 530.242.1441. Builder as it is used in this DFA shall include any permitted nominee, assignee, or successor in interest as herein provided. Builder may also mean the following:

Owner in Context of Exhibit 2-Agreement Containing Covenants Affecting Real Property; Purchaser as in context of Exhibit 6; Trustor, in context of Exhibit 7-City Land Loan Deed of Trust and Exhibit 9 City of Redding Deed of Trust and Assignment of Rents; Maker in context of Exhibit 8 City Land Loan Promissory Note; Borrower in context of Exhibit 10 – City Promissory Note secured by a Deed of Trust.

1.5 “Business Days” shall mean any day other than a Saturday, Sunday or legal holiday.

1.6 “Certificate of Completion” shall mean the document attached as Exhibit 16.

1.7 “Change Order” shall mean the document attached as Exhibit 17. (a) “City” shall mean the City of Redding. The City is a public body, corporate and politic, exercising governmental functions and powers, organized and existing under the Law of the State of California. City as it is used in this DFA, includes the City Council of the City of Redding and any assignees of or successors to its rights, powers, and responsibilities. The principal office of the City is located at 777 Cypress Avenue, Redding, California 96001. The phone number for facsimile transmittal to the City is (530) 225-4126. City shall also mean the following: Beneficiary as in context of Exhibit 7 – City Land Loan Deed of Trust; Lender, in context of Exhibit 8 - City Land Loan Promissory Note and Exhibit 9 - City of Redding Deed of Trust with Assignment of Rents; and Holder, as in context of Exhibit 10 - City Promissory Note secured by Deed of Trust.

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1.8 “City Approval” shall mean written approval authorized by the City Council of the City of Redding or its designee, expressly authorized to give such City approval.

1.9 “City Assistance” shall mean any financial assistance provided to Builder to as described in Section 3.

1.10 “City Deed of Trust” or “City Deed” shall mean the deed of trust recorded against the Site to secure the City Loan, a copy of which is attached as Exhibit 9.

1.11 “City Land Loan” or “Seller carry-back loan” shall mean the loan from the City to Builder made pursuant to Section 3.1 of this DFA.

1.12 “City Loan” or “City Residual Receipts Loan” shall mean the residual receipts loan from the City to Builder made pursuant to Section 3.2 of this DFA.

1.13 “City Promissory Note” shall mean the promissory note to be executed by the Builder which evidences the City Loan, a copy of which is attached as Exhibit 10.

1.14 “City Project Coordinator” or “Project Coordinator” shall mean the City’s designee of a City staff person to verify compliance with this DFA, approve, process and distribute the construction draw requests.

1.15 “Completion Date” shall mean the date stated in the Schedule of Performance for the completion of construction of the Improvements.

1.16 “Conceptual Plans” are the plans for the Project before being finalized by the Builder and City.

1.17 “Construction” (whether or not capitalized), unless the context clearly indicates otherwise, shall mean construction of the “Improvements” on the Property and all required “Public Improvements” in accordance with the Final Plans and this DFA.

1.18 “Construction Lender” shall mean a lender approved by the City and Builder to provide construction financing to the Project.

1.19 “Construction Loan Documents” shall mean all loan and security documents of the Construction Lender used to finance any portion of the construction of the Project.

1.20 “Construction Retention” shall mean a payment (also called retainage) is the amount of money held back until the project is complete. In the case of this Project, the percentage of retainage is ten (10) percent.

1.21 “Contractor” is the contractor or contractors with whom Builder contracts for the construction, and “subcontractors” are those contractors with whom Contractor contracts or with whom another subcontractor contracts for a portion of the construction. Contractor (and all subcontractors who must, by law, hold a contractor’s license) shall have a current and valid contractor’s license, issued by the California Contractors’ State License Board, for the work they are performing.

1.22 “Days” shall mean calendar days unless expressly stated otherwise. If the date or time period for any action under this DFA falls or ends on a Saturday, Sunday or federal, state or Packet Pg. 503 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 5 | Page
legal holiday, then such date or time period shall automatically be extended until 5 p.m. Pacific Time of the next Day which is not a Saturday, Sunday or federal, state or legal holiday.

1.23 “DFA” is this Disposition and Financing Agreement which includes this document and the Plans and referenced exhibits and attachments to this DFA, which are all incorporated in this DFA as if set forth in full in the body of the DFA. A default of any of the referenced exhibits or attachments shall be deemed a default of this DFA.

1.24 “Development Team” shall mean the following:

Builder: FaithWorks Community Coalition, Inc
Architect: Nichols, Melburg & Rossetto Architects
Civil Engineer: Sharrah Dunlap Sawyer, Inc

1.25 “Effective Date” shall mean the date this DFA is signed by the City.

1.26 “Escrow” is the escrow for the disposition of the Property.

1.27 “Final Plans” are the final plans, construction drawings, and specifications for the Project, including the City’s Development Services Department’s conditions of approval.

1.28. “Hazardous Materials” means any hazardous or toxic substance, material or waste that is (i) regulated by any local governmental authority, the State of California or the United States Government, (ii) defined as an "actual hazardous waste”, “extremely hazardous waste”, “hazardous waste”, or “waste” under Section 25110.02, 25115, 25117, or 25124 or listed pursuant to Sections 25141 and 25141.5 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control); (iii) defined as a “hazardous material”, “hazardous substance”, or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum or petroleum hydrocarbons, or volatile organic compounds such as gasoline or diesel fuel; (vi) asbestos; (vii) listed under Chapter 10 of Division 4.5 of Title 22 or defined as hazardous or extremely hazardous pursuant to Division 21.5 of Title 26 of the California Code of Regulations; (viii) designated as a “hazardous waste” pursuant to Section 6903 et seq. of the Resource Conservation and Recovery Act of 1976 (Solid Waste Disposal Act), 42 U.S.C., Chapter 82, Subchapter 1; (ix) defined as a “hazardous substance” pursuant to Section 9601 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq.; (x) any flammable substances or explosive; or (xi) any radioactive material.

1.29 “Improvements” shall mean the improvements to be constructed on the Property in accordance with the Plans and this DFA and the “Public Improvements” described in Section

8.13. 1.30 “Income Qualifying Units” or “Units” shall mean those rental units developed as part of the Project which are subject to the affordability controls contained in the City Declaration of Rent Restrictions as detailed in Exhibit 4.

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1.31 “Lender” shall mean all holders of any lien or encumbrances as security for a loan on all or any part of the Property and references to the Project Site and references to the Project Site shall mean that portion of the Project Site so encumbered.

1.32 “Lower-Income Household” or “Low-Income Household” shall mean a person or family earning no greater than eighty percent (80%) of Area Median Income, as determined by the United States Department of Housing and Urban Development from time to time, as set forth in Health and Safety Code Section 50079.5.

1.33 “Memorandum of DFA” or “Memorandum” is the document attached as Exhibit 3 to be executed by Builder and City and recorded against the Property.

1.34 Reserved

1.35 “Non-Residential” shall mean the commercial space and the associated improvements and amenities, including, but not limited to any garage and landscaping areas constructed according to the Final Plans.

1.36 “Notice of Completion” is the document attached as Exhibit 15.

1.37 “Other Financing” shall mean all non-City financing sufficient to complete the Project pursuant to Section 3.5.

1.38 “Parties” or “Parties to the Contract” shall mean City of Redding, a municipal corporation and general law city (“City”), and FaithWorks Community Coalition, Inc. (”FaithWorks” or “Builder”), a California nonprofit public benefit corporation.

1.39 “Plans” are the Conceptual Plans, Preliminary Plans and/or the Final Plans, as the context requires.

1.40 “Preliminary Plans” are all the necessary plans, documents, and supplemental information to comprise a complete application for the entitlements necessary to develop the Project, as required by the City of Redding Development Services Department.

1.41 “Project” is the acquisition of the Property and subsequent development of a commercial space and residential units, as more particularly described in this DFA, the Preliminary Plans, and the Scope of Development.

1.42 “Project Area” shall mean the Parkview Project properties and surrounding infrastructure components.

1.43 “Project Budget” is the identification of costs for development and construction as required in Section 8.1 of this DFA. A preliminary budget is attached to this DFA as Exhibit 11.

1.44 “Property” or “Project Site” shall mean the real property located in the City of Redding, Shasta County, California, at 815 Parkview Avenue, 825 Parkview Avenue and 2520 Leland Avenue, Redding, Shasta County, California, Assessor’s Parcel Numbers 104-350-018, 019 & 020, more specifically described in Exhibit 1.

1.45 “Project Coordinator” shall mean the City’s designee of a Housing Division staff person to review Plans and approve and process construction draw requests and verify Packet Pg. 505 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 7 | Page
development and construction compliance pursuant to this DFA.

1.46 “Purchase Agreement and Escrow Instructions” or “Purchase Agreement” shall mean the written agreement between City and Builder for the sale of the Property in the form attached hereto as Exhibit 6.

1.47 “Purchase Price” shall mean the purchase price of the Property in the total amount of One Hundred Fifty-Three Thousand and No/100 Dollars ($153,000.00). The commercial and residential proportionality of the purchase price is more specifically described in the Scope of Development.

1.48 “Residual Receipts” shall mean any Project net income remaining after:
a) The payment of:
i) All amounts required to be deposited in the reserve fund for replacements.
ii) All obligations of the Project other than the residual receipts loan including amortized payments on superior loans.
iii) All operational costs of the Project, including staff costs, insurance, utilities, and other costs approved by the City as necessary for the operation of the completed facility.

b) The segregation of:
i) An amount equal to the aggregate of all special funds required to be maintained by the Project.
ii) All tenant security deposits being held.

1.49 “Residual Receipts Loan” shall mean a loan, the repayment of which is dependent upon the availability of net income remaining after deducting the amount necessary to satisfy the City approved operating expenses associated with the operation and maintenance of the Project.

The City approved operating expenses are detailed under “Residual Receipts” as defined above.

1.50 “Redevelopment Plan” is the Parkview Neighborhood Strategic Revitalization Plan developed in 2001 for redevelopment or revitalization of the neighborhood. References to the Redevelopment Plan include all rules, regulations, plans and strategies duly adopted in accordance with the Parkview Neighborhood Strategic Revitalization Plan.

1.51 “Schedule of Performance” is attached as Exhibit 13.

1.52 “Scope of Development” is attached as Exhibit 12.

1.53 “Stored Materials” are materials and items purchased ahead of their planned use in a construction project.

1.54 “Subcontractor” shall mean those contractors or material suppliers with whom the Builder as Owner Builder contracts or with whom another Contractor contracts for a portion of the construction. Subcontractor must have a current and valid contractor’s license, issued by the California Contractor’s State License Board, for the work they are performing.

1.55 “Substantial Change” is a change as described in Subsection 6.2.3 of this DFA.

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2. The Agreement.

2.1 Purpose of the DFA. The purpose of this DFA is to provide for the City to convey the Property to Builder for the purpose of constructing the Project, and for Builder to acquire the Property and develop the Project in accordance with the Plans and this DFA. The City represents that the development of the Property and the completion of the Project, under this DFA, and the fulfillment generally of this DFA, are (1) in the vital and best interests of the City of Redding and the health, safety, morals and welfare of its residents, (2) for the purpose of community improvement and welfare, (3) for the benefit of the Project Area and in accordance with the City’s development plan. Except for the risks and speculation inherent with respect to real estate development projects, Builder represents and agrees that its development of the Property under the DFA is not intended for speculation in land holding.

2.2 Scope of Development. It is contemplated by the parties that the Builder will acquire the Property and construct a mixed-use development consisting of commercial office space and residential units. The residential space will consist of zero-bedroom, one-bedroom or two-bedroom units for a minimum of fourteen (14) Units. The Builder shall make the Units available to, restrict occupancy to, and rent at an affordable rent to Low-Income households against which a City Declaration of Rent Restrictions will be recorded. If any funding sources used in the Project require a deeper affordability, the Builder will comply with the affordability requirements attached to the funding source.

The Scope of Development to be carried out by Builder under this DFA is more particularly specified in the Scope of Development Exhibit 12.

2.3 Term. This DFA shall commence as of the Effective Date and proceed as required by the DFA and the Schedule of Performance attached hereto as Exhibit 13, and, except for any deed restrictions, covenants running with the land, or other agreements or provisions which by their terms survive the term of the DFA, shall terminate upon the completion of all of the following:
(a) Completion of the construction of the Project in accordance with the DFA and Plans;
(b) Fulfillment by the parties of their obligations under this DFA.

3. City Assistance.

3.1 City Land Loan. In accordance with all the terms, covenants, and conditions of this DFA, the City agrees to sell the Property to the Builder. The Property shall be sold pursuant to the terms of the Purchase Agreement and Escrow Instructions attached hereto as Exhibit 6, the City Land Loan Deed of Trust attached hereto as Exhibit 7 and the City Land Loan Promissory Note Attached hereto Exhibit 8. The value of the land loan is One hundred fifty-three thousand and No/100 ($153,000)

3.2 City Loan. In order to effectuate the sale of the Property and subsequent development of the Project on the Property by the Builder, the City shall provide a loan to Builder pursuant to the terms and conditions described in Subsection 3.2.2 (the “City Loan”).

The City’s Loan shall be in the not-to-exceed amount of One Million Six Hundred Thousand and Packet Pg. 508 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 10 | Page
No/100 Dollars ($1,600,000). As a condition precedent, the City shall have no obligation under this Agreement unless all sources of funding for the City Loan are confirmed and available to the City.

3.2.1 The City reserves the right, in its sole discretion to utilize any other funding sources available to it, to fulfill its obligations set forth in this Agreement.

The City Loans are provided for the sole purpose of assisting the Builder in the completion of the Project and to ensure the long-term affordability of the Income Qualifying Units through the recordation of the City Declaration of Rent Restrictions.

3.2.2 City Loan Terms and Conditions. The City Loan shall have a fifty-five (55) year term and be evidenced by a promissory note (City Promissory Note attached hereto as Exhibit 10) in favor of City for the full amount of the City Loan. The City Loan shall bear simple interest at one percent (1%) per annum. Payments to the City will be according to the Residual Receipt process as identified within the City Promissory Note. The City Promissory Note shall be secured by a Deed of Trust (City Deed of Trust) executed by Builder and recorded on the Site.

This City Promissory Note shall not be assumable by the successors and assigns of Builder without the prior written consent of the City, whereby such consent shall not reasonably be withheld.

3.3 Repayment of City Loan. Repayment of the City Loan shall be determined by the Residual Receipts process. Every year the Builder must submit a financial statement from a qualified outside party and pay the City of Redding any excess net income as described in Section 1.48. Payments received by the City or its loan servicing agent shall be applied first to any interest and subsequently to reducing the principal as identified in the City Promissory Note.

Builder may pay in full, or any part of, the City Loan prior to the due date without penalty.

Subject to the notice and cure rights set forth in Section 15, the full amount of the City Assistance, including principal and all accrued interest, shall become immediately due and payable upon the occurrence of any of the following:
(a) Failure to develop the Project in accordance with the Schedule of Performance set forth in Exhibit 13 of this Agreement; or (b) Builder fails to utilize the Site for the Project within the timeframe set forth or as authorized in writing; or
(c) A material breach of this Agreement.

3.4 City Additional Loan Conditions. The full amount of the City Loan including principal and all accrued interest, shall become immediately due and payable upon the occurrence of any of the following:
(a) Builder’s failure to proceed with the construction of the improvements as required by this DFA after written notice thereof from the City; or Packet Pg. 509 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 11 | Page
(b) Builder abandons or substantially suspends construction of the improvements for a period of three (3) months after written notice of such abandonment or suspension from the City; or
(c) Development of the Project Site does not occur by the deadline set forth in the Schedule of Performance; or
(d) A breach of this DFA is not cured within thirty (30) Days of notice to Builder; or
(e) The Builder transfers or suffers any involuntary transfer of the Property in violation of this DFA.

3.5 Other Financing. Builder shall obtain private financing, grants and other financing, which, when combined with the City Assistance shall be sufficient for the completion of the Affordable Housing Project and its operation in conformity with this Agreement.
(a) Specifically, Builder shall provide a portion of the private financing for the Project, including, but not limited to, funding to construct the commercial portion of the project. The parties understand that a number of the funding sources anticipated in this Agreement and Project may only be utilized to construct affordable housing units. (b) Builder shall provide to City evidence of such private financing according to the timeframe set forth in the Schedule of Performance. The private financing for the Project shall be consistent with the lender’s commitment approved by the City and shall comply with this DFA.

3.6 City Grant. In order to effectuate the sale of the Property and subsequent development of the Project on the Property by the Builder, the City shall utilize up to $1,505,882.35 in grant assistance towards the construction of the Project subject to the terms and conditions of the REAP 2.0 Sub-applicant Agreement, and the Whole Person Care Subaward Agreement. Any and all requirements for City Loans also shall be required for the disbursement of the City Grants.

3.7 No Reimbursement. Except as expressly provided in this DFA, no person shall have the right of reimbursement from the City for any funds expended by them for the Project.

This provision does not preclude any person from receiving reimbursement from persons other than the City.

4. Builder’s Acquisition of the Property.

4.1 Acquisition of Property by Builder. Builder shall satisfy all of the terms and conditions of this DFA and the Purchase Agreement and Escrow Instructions, and acquire the Property from City no later than the date set forth in the Schedule of Performance. Nothing contained in this Section is intended to, nor shall abrogate Builder’s obligations, to comply with the dates set forth in the Schedule of Performance or to satisfy any other terms and conditions of this DFA.

4.2 Terms of Sale.

4.2.1 Purchase Agreement and Escrow Instructions. The Parties shall enter into Packet Pg. 510 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 12 | Page
a Purchase Agreement and Escrow Instructions in the form set forth in Exhibit 6 for the conveyance of the Property by City to Builder within thirty (30) Days of the Effective Date of this DFA.

4.2.2 Purchase Price. City shall convey the Property to Builder subject to all the terms and conditions of this DFA, the Purchase Agreement and Escrow Instructions, and any exhibits thereto, for the total sum of One Hundred Fifty-Three Thousand and No/100 Dollars ($153,000.00). The Purchase Price for the Property is its fair market value as established by Appraisal Services, Certified General Real Estate Appraiser as of June 15, 2025.

4.3 Conditions Precedent

4.3.1 In addition to such other conditions precedent that may be provided for in the Purchase Agreement, each of the following shall be a condition precedent to the obligation of City to transfer the Property to Builder:

4.3.2 Builder has executed and delivered all documents required under the Purchase Agreement and this DFA;

4.3.3 Builder has submitted to City the certificates of insurance required under this DFA; and

4.3.4 City has determined, in its sole reasonable discretion, that Builder is not in default of any provision of this DFA, nor is there any condition, which after notice and opportunity to cure, would constitute such a default.

4.4 General Provisions Relating to Acquisition.

4.4.1 Builder shall be solely responsible for investigating and determining the feasibility of developing the Project on the Property. Builder shall conduct its own due diligence investigation of the Property, including an environmental site assessment, soils and geophysical testing, and any other matter relevant to the condition of the Property or the feasibility of the development of the Project, as the Builder may deem necessary. It is the sole responsibility of the Builder to ensure the condition of the Property is in all respects suitable for the contemplated use or physical change being agreed upon in this DFA. The City shall not be responsible for the Builder’s inability make such a decision.

4.4.2 Subject to the City’s representation and warranties in the Purchase Agreement, Builder shall acquire the Property in its “as-is” condition, without any representation or warranty by City except as expressly made in the Purchase Agreement.

4.4.3 Subject to the City’s representations and warranties in the Purchase Agreement, Builder shall be solely responsible, at its own cost and expense, for any environmental cleanup or remediation of Hazardous Materials on, under or about the Property which is required by any law, ordinance or governmental agency, or which is necessary or desirable for the development of the Project on the Property.

4.4.4 Within ten (10) Days of the Effective Date of this DFA, City shall provide Builder with copies of all non-privileged reports, studies, records or other documents in City’s possession, custody or control that relate to the physical or environmental conditions of the Packet Pg. 511 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 13 | Page
Property.

5. Execution, Delivery and Recordation of Documents. Within ten (10) Days of the Effective Date of this DFA, the Builder shall execute the Memorandum of DFA, City Declaration of Rent Restrictions, City Deeds, and City Notes. All of the above-named documents shall be recorded at close of escrow pursuant to the Purchase Agreement and Escrow Instructions, subject only to liens existing on the Property as of the date of the DFA. Cost of recordation of these documents, if any, shall be the responsibility of the City and Builder, as described in the Purchase Agreement.

6. Preparation of Plans and Related Documents. Builder shall be responsible for the preparation of plans and related documents that fulfill the requirements of the Project. Any plans paid for in whole or in part with WPC funds shall be the property of the Builder, regardless of who contracted for the Plan.

6.1 Project Coordinator. Subject to the terms of this Agreement, City shall designate a Project Coordinator who shall, in addition to other responsibilities under this Agreement including grant or funding oversight, receive the following information from the Builder: copies of architectural and site planning plans and drawings, complete structural and engineering plans, landscape plans, and grading plans associated with the Project as well as any changes therein.

6.2 City Review of Substantial Changes to Final Plans. All substantial changes, as described in section 6.2.3, to the Final Plans must be approved by the Development Services Department (plan check) in conjunction with permit issuance and compliance.

6.2.1 City Project Coordinator Approval. Notwithstanding the foregoing, any Substantial Change in the Final Plans is subject to Project Coordinator notification and approval for compliance with the funding source. In addition, the Builder must submit any Substantial Changes in the Final Plans, to the City’s Development Services Department for approval.

Nothing in this Section shall be construed to relieve the Builder of its obligations under all applicable laws regarding such changes.

6.2.2 City Disapproval. If the Project Coordinator disapproves, in whole or in part, any Substantial Change in the Final Plans, the Project Coordinator shall state, specifically and in writing, at the time of disapproval, the reasons for disapproval and the changes which the City requests to be made for its approval. The reasons for disapproval and such City-requested changes shall be consistent with the approved Final Plans and Scope of Development.

6.2.3 Substantial Change. A Substantial Change in the Plans shall mean any of the following changes, with respect to the Project, as the Housing Division is responsible for adherence to grant or funding requirements:
a) Changes in size or design resulting in an increase or decrease of greater than ten percent (10%) of square footage or density of Units. b) Changes in the mix of Units.
c) Changes in the total number of Units.
d) Changes in the building approved by the Development Services Department, may include exterior finishing materials affecting architectural appearance or functional use and operation of the Project.

Packet Pg. 512 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 14 | Page
e) Material changes in size or placement of public service or handicapped facilities; or material changes in general pedestrian or vehicular circulation in, around or through any public areas of the Project as these items are often requirements of grant funding.
f) Material changes in landscaping or in size or quality of exterior pavement, pedestrian walkways, parkways, or any areas shown and specified in the Final Plans.

6.3 Preparation of Preliminary Plans. Builder shall prepare the Preliminary Plans for the Property and submit them to the Development Services Department and provide copies to the Housing Division as indicated on the Schedule of Performance. The Preliminary Plans shall be consistent with the Conceptual Plans that were used to make the decision to fund the Project.

The Housing Division and the Builder shall hold regular progress meetings as necessary to coordinate the payment of agreed upon funding.

6.4 General Provisions Regarding Approval

6.4.1 Purpose of Review and Approval for Funding. Project Coordinator’s review of all Plans is only to ensure the Project complies with funding sources to assure that City funds which may be obligated under this DFA are used as intended by the City. Approval of the Final Plans must conform to funding source requirements in order to effectuate payment under this DFA. The Housing Division does not provide any assurance of the adequacy or correctness of the Plans. Project Coordinator must ensure that the Final Plans conform to the Preliminary Plans and Scope of Development in order to remit payments under this DFA.

6.4.2 Misrepresentation. After the Project Coordinator approves the Preliminary Plans, or the Final Plans, and communicates this to the Builder; then, receives a communication or notification that any part or portion of the Plans previously approved have been changed; the Project Coordinator may claim a material misrepresenting by the Builder, regarding the Plans in question. Nothing in this Section shall be construed to preclude or limit the rights or claims of the City with regard to such misrepresentations, including the City’s ability to rescind Plan approval.

6.4.3 Concurrent Review. The parties will use reasonable efforts to have the Final Plans reviewed by the Project Coordinator prior to or concurrently with the review of the Project by the City of Redding.

6.5 Mitigation Under Environmental Acts. Builder, at Builder’s cost, shall comply with all measures, if any, required under California Environmental Quality Act (CEQA) or the National Environmental Policy Act (NEPA) to mitigate negative impacts of the Project.

7. Conditions Precedent to Construction.

7.1 Conditions Precedent to Construction. In addition to all of the conditions precedent listed under Section 4.3 and such other conditions precedent that may be provided for in the Purchase Agreement the Builder shall not begin construction until the following conditions precedent have been satisfied or waived by the City:

7.1.1 Escrow has closed in accordance with the terms of the Purchase Agreement and this DFA;
Packet Pg. 513 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 15 | Page

7.1.2 The Builder has obtained all consents, approvals, entitlements, and permits required for construction and has completed the approved procurement process;

7.1.3 The Builder must provide the Housing Division construction bid documents, construction contract and final selection of the general contractor for the Project and Builder has must submit satisfactory evidence of all required bonds, if applicable;

7.1.4 The Builder has obtained the proper building permits from the City;

7.1.5 The Builder has requested notice to proceed from the City, and the City has notified the Builder in writing that they may proceed with construction; and

7.1.6 The Builder has issued a notice to proceed under the executed construction contract, if any.

7.1.7 All approvals from all government agencies required to provide approval for planning and construction have been received.

8. Development of the Project.

8.1 Project Budget. At the times called for in the Schedule of Performance, the Builder shall provide a complete final Project Budget for the development and construction of the Project in a form and with specificity reasonably satisfactory to the Project Coordinator, including all “hard” and “soft” costs for the Project and reflecting, as possible, executed contracts. Such final Project Budget shall be substantially in conformance with the Preliminary Project Budget.

8.2 Disbursement of City Loan. The parties agree that upon close of escrow pursuant to the Purchase Agreement and Escrow Instructions, the proceeds of the City Loan will be placed into a non-interest-bearing account controlled by the City’s Finance Department or kept in an escrow account with the selected title company for project disbursements. The Builder and City agree that City Loan funds will not be disbursed prior to applicable Environmental Review analysis and approval. Each and any disbursement of funds from this account shall require a written authorization signed by the Project Coordinator authorizing the release of the requested disbursement. The Project Coordinator shall provide such written approval, which shall not be unreasonably withheld, within fifteen (15) business days of receipt of the request from Builder.

8.2.1 Disbursement Prior to Construction. Pursuant to Section 8.2 and subsequent to the close of escrow, upon Builder’s submittal to the City of satisfactory evidence of Other Financing in an amount sufficient to allow the construction of the Project, the parties agree that a portion of the City Loan proceeds may be utilized by Builder to assist with costs related to completion of the Final Plans and to secure permits required for the construction of the Project. All disbursements shall be based upon documentation of costs submitted by Builder.

The Builder understands that only portions of the City Assistance may pay for only certain costs associated with the Project. A detail of what funds may pay for what portion of the Project is detailed in Exhibit 11. Such documentation will be subject to review and authorization for payment by the Project Coordinator. Builder agrees to provide such documentation as may be determined by the Project Coordinator as necessary.

Packet Pg. 514 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 16 | Page

8.2.2 Disbursement during Construction. Prior to any disbursement of City Loan proceeds for construction, the Project Coordinator and Builder shall develop a mutually agreeable disbursement format. This format shall include certifications from the Builder, as Owner Builder, and Project Coordinator that all materials and construction included in the request for disbursement are consistent with approved Plans and supplemental specifications and that all materials have been delivered to either the Property or installed and inspected as required.

All disbursements shall be based on a percentage of completion and all disbursements shall reflect ten percent (10%) retention not including the costs of stored materials. (Retention shall be released following the recording of the Notice of Completion and successful completion of the 30-Day mechanics lien period.) Each draw request submitted will be complete with any required lien releases from subcontractors included with the draw request.

The City Loan proceeds shall be disbursed in accordance with the mutually agreed upon draw schedule described above. Disbursement shall be based upon satisfaction of the construction component(s) upon which the draw request is based, as determined in good faith by the Project Coordinator. Disbursements shall be documented by paid invoices or receipts and shall not exceed aggregate amounts set forth in the accepted and approved final Project Budget and construction contract(s) for the Project. Any revisions of the budget will be documented by the Builder in a Change Order form, a copy of which attached hereto as Exhibit 17. Builder and City acknowledge that it shall be the sole responsibility of the Builder to obtain the required written authorization for any request for disbursement.

8.3 Bonds/Surety/Project Guarantee. Prior to the start of construction, the Builder agrees to provide to the City a performance bond, surety bond, or project guarantee to ensure the completion of the Project according to the terms of this DFA and payment of the materials and labor by the contractor to all subcontractors and material suppliers. The form of the bond or guarantee is subject to the City of Redding City Attorney’s approval. The bond or guarantee shall be in the amount and be subject to the terms noted below:

8.3.1 The bond, guarantee or form of security shall be for no less than one hundred percent (100%) of the City’s pledged Assistance, including grants, secured to the property in superior position to the City’s loan.

8.3.2 The Builder shall pay all bond premiums, costs, and incidentals.

8.3.3 Should any surety or guarantee at any time become unsatisfactory to the City, notice will be given to the Builder to that effect. No further disbursements shall be deemed due or will be made under the contract until a new surety or guarantee is approved by the City and their counsel.

8.4 Construction. Builder shall construct the Project according to the requirements established in this DFA, including but not limited to the Scope of Development, Schedule of Performance and the Final Plans. In the event that the cost of construction of the Project, or any part of the Project exceeds the costs projected by Builder, Builder shall, nevertheless, bear the responsibility to complete, at Builder’s cost, the construction of the Improvements in accordance with this DFA. The parties agree that such obligations of Builder shall be covenants running with the land and that they shall, in any event, and without regard to technical classification or designation, be to the fullest extent permitted by law and equity, binding for the benefit of the City and enforceable by the City against the Builder, its successors and assigns.

Packet Pg. 515 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 17 | Page

8.5 Substantial Changes. Builder covenants and agrees that Builder shall not make or permit to be made any construction of the Improvements which incorporates a Substantial Change in the Plans, as described in Subsection 6.2.3, without providing such information to the Housing Division’s Project Coordinator to ensure such changes comply with the Housing Division’s funding of the Project. The City’s Development Services Department is responsible for approving any construction deviations from the Final Plans.

8.6 Changes During Construction. Once construction has commenced, Builder shall, prior to their occurrence, notify the Project Coordinator of all Substantial Changes (as that term is defined in Subsection 6.2.3) as such changes may result in a material net increase in cost or extend the period of construction beyond the Completion Date. The Builder must indicate how any Project Cost overruns are going to be paid for. The increase of Project cost is the responsibility of the Builder and in no way obligates the Housing Division to any increase in funding. The Project Coordinator shall confirm with the Builder how each Change Order will affect the financial status of the Project no later than fifteen (15) business days from the Day the Change Order is received by the Project Coordinator. The Builder and the City acknowledge that it shall be the sole responsibility of the Builder to obtain the Project Coordinator’s written authorization for any Change Order.

8.7 No Construction Over Utility Easements. Builder shall not construct any of the Improvements on, over, or within the boundary lines of any easement for public utilities on the Property, unless such construction is provided for in such easement or has been approved in writing by the beneficiary of the easement.

8.8 Requirements Prior to Construction. No construction of the Improvements on the Property shall be undertaken by the Builder until Builder has fulfilled (or City has waived) all the conditions precedent to construction of the Improvements; and the Plans have been approved by all government agencies from which approval is required.

8.9 Commencement and Completion of Construction. Builder shall promptly begin and thereafter diligently pursue to complete the construction of the Improvements and the development of the Property in accordance with the provisions of this DFA and at the times specified in the Schedule of Performance; and complete construction not later than the date set forth in the Schedule of Performance.

8.10 Reports. During the period of construction, the Builder shall submit to the City a written report of the progress of the work once a month. The report shall be in such form and detail as may reasonably be required by the City and shall include a reasonable number of construction photographs taken since the last report if requested by the City.

8.11 Local, State and Federal Laws. The Builder shall carry out the construction of the Project in conformity with all applicable laws, including all applicable federal and state labor standards. In addition to the indemnity provided in this DFA, Builder hereby agrees to indemnify, defend, protect and hold the City harmless from and against any and all liability, damages, penalties, claims, suits, actions, proceedings, loss, cost or expense (including, but not limited to, attorney’s fees and court costs) arising out of the failure of Builder to comply with the Prevailing Wage Law (Labor Code section 1720 et seq.) including, but not limited to the payment of prevailing wages, if required by law in connection with the activities authorized by this Agreement.

Packet Pg. 516 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 18 | Page
Developer further agrees to waive all claims and causes of action it may have against City pursuant to Labor Code section 1781.

8.12 Anti-Discrimination During Construction. The Builder for itself and its successors and assigns, agrees that the following provisions shall apply to, and be contained in all contracts and subcontracts for the construction of the Improvements. (For purposes of this Section 8.12 Builder shall also mean Contractor or Subcontractor.)

8.12.1 Employment. The Builder shall not discriminate against any employee or applicant for employment because of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin. The Builder shall ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin. Such action shall include, but not limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layout or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Builder agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this nondiscrimination clause.

8.12.2 Advertising. The Builder will, in all solicitations or advertisements for employees placed by or on behalf of the Builder, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin.

8.13 Public Improvements. Subject to the provisions of this DFA, the Builder shall at Builder’s expense, undertake and complete any modification, construction, relocation or improvement of public facilities, improvements and utilities on or for the development of the Property that is a condition of a use permit for the Property. Builder shall enter into any improvement agreement required by the City for the construction of such public improvements.

8.14 City Access to the Property. Builder shall permit City representatives’ access, without charge, to the entire Property at any time and for any purpose which City reasonably considers necessary to carry out its obligations and protect its interests under the DFA. Purposes for City entry may include, without limitation, inspection of all work being performed in connection with the construction of the Improvements. Any City personnel entering on the Property after the transfer to Builder shall register immediately at Builder’s Construction office, shall be escorted by Builder’s designee and shall wear proper clothing and safety equipment.

8.15 Project Sign. Builder shall place a weatherproof project sign, approximately eight (8) feet by four (4) feet, on the Property during construction stating the participant names which include, but are not limited to, the Builder, architect, general contractor, and funding sources (Lenders and City). The City logo on the sign shall be in letters not less than the size of letters used to name the lenders for the Project. A fair housing symbol shall be placed on the sign.

Builder shall consult with the Project Coordinator for the exact requirements.

8.16 Non-Substantial Changes. Non-Substantial Changes to this agreement that do not involve funding increases for the project may be approved by the Project Coordinator.

8.17 Notification of Contractors, Architects and Engineers. Builder shall notify its Project Contractors, architects and engineers in writing of the requirements of this DFA. Builder Packet Pg. 517 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 19 | Page
shall include, where applicable, the provisions of this DFA in contracts and subcontracts for the Project, and Builder shall enforce such provisions.

8.18 Supervision of the Work. Builder shall be solely responsible for monitoring all construction, ensuring that the construction is performed in a workmanlike manner, and enforcing the terms of this DFA and the construction contracts. City inspections of construction are made solely for assuring Builder’s performance under this DFA and protecting City’s security interest in the Property.

8.19 Certificate of Completion. After the City has determined that Builder has completed the Improvements in accordance with Builder’s obligations under this DFA and Builder has recorded a Notice of Completion, following the successful 30-Day lien period, the City will furnish the Builder with a Certificate of Completion in a form suitable for recording in the Official Records of Shasta County and certifying such completion. Such certification shall be a conclusive determination of satisfaction and termination of the agreements and covenants in the DFA with respect to the obligations of the Builder to construct the Improvements and of the dates for the commencement and completion of construction, subject to any qualifications or limitations stated in such certification except as to those breaches of contract or defects in construction that could not have reasonably been discovered by the City at the time of issuance of the Certificate of Completion. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any governmental requirements other than City or any obligation of the Builder to any holder of a mortgage, or any insurer of a mortgage, securing money loaned to finance all or any part of the Improvements.

8.19.1 Refusal to Issue. If the City shall refuse or fail to provide a Certificate of Completion within five (5) business days after written request by the Builder, provide the Builder with a written statement, indicating in adequate detail in what respects the Builder has failed to complete the Improvements in accordance with the provisions of the DFA, or is otherwise in default, and what measure or acts it will be necessary, in the opinion of the City, for the Builder to take or perform in order to obtain such certification. If the City wrongfully refuses to issue a Certificate of Completion within five (5) business days, Builder may seek a writ or order compelling City to issue the Certificate.

9. Use of Project Site

9.1 Uses. The Builder covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property, that during construction and through the City Affordability Period (as herein described) the Builder, its successors and assigns, shall devote, use, operate, and maintain the Property in accordance with the City Declaration of Rent Restrictions, Agreement Containing Covenants and this DFA. All uses conducted on the Property, including, without limitation, all activities undertaken by the Builder pursuant to this DFA, shall conform to all applicable provisions of the City of Redding Municipal Code, and any restrictions of record or any of the recorded documents against the Property.

9.2 Nonresidential/Commercial Office Space. Builder shall construct the commercial portion of the Project on the first floor according to funding source requirements and the Final Plans.

9.3 Affordable Housing.

Packet Pg. 518 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 20 | Page

9.3.1 Number and Type of Units; Income Eligibility. The Builder agrees to develop on the Project Site a minimum of twelve residential rental units consisting of zerobedroom, one-bedroom or two-bedroom units and such other amenities necessary and incidental to such rental uses as specified in this DFA, the City Declaration of Rent Restrictions, and the Final Plans. The Builder shall make all Units available to, restrict occupancy to, and rent to Lower-Income Households as dictated by the funding sources.

9.3.2 Duration of Affordability. The Units shall remain available for rent to and occupied by persons or families with incomes that do not exceed that of Lower-Income Households at an Affordable Rent throughout the Affordability Period. The City and Builder agree to enter into a separate and binding City Declaration of Rent Restrictions. The City and Builder shall each execute such document and submit to the Escrow Agent for recording against the Property prior to close of escrow as described more fully in Section 4.3 of this DFA and the Purchase Agreement and Escrow Instructions.

The covenants contained in the City Declaration of Rent Restrictions shall remain in effect throughout the Affordability Period, and issuance of a Certificate of Completion by the City shall not affect the Builder’s obligations under that document.

9.3.3 Determination of Affordable Rent for the Income Qualifying Units. Each Affordable Unit shall be rented at an Affordable Rent in accordance with Section 50053 of the Health and Safety Code or the funding source requirement for the rent of the unit(s) if stricter.

As of the approval of this DFA, the following formula represents the maximum Affordable Rent for the Units:

For Lower-Income Units: One-twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of the Area Median Income adjusted for family size appropriate to the unit applicable to Shasta County, as determined by the United States Department of Housing and Urban Development.

9.3.4 Monitoring of the Income Qualifying Units. The Builder, his designee, or his successor shall prepare and submit a certification report annually to the City during the Affordability Period. The report shall identify each Affordable Unit, the rental rate, and the income and family size of the occupants, as well as any other project information that is required by the funding source(s) and requested by City. The required income information shall be supplied by the tenant in the form of source documentation kept at the Project Site and shall be available for City review at the City’s request.

9.4 Management and Maintenance. The Builder shall manage and maintain, or cause to be managed and maintained, the improvements. The Builder shall maintain the Project Site in good condition throughout the affordability period. The Builder shall keep parking areas, lighting fixtures, trash enclosures, and all areas which can be seen from adjacent streets, free from any accumulation of debris or waste materials by regularly scheduled maintenance. The Builder shall maintain the planted areas and all landscaping for the life of the affordability period. Maintenance shall include, but not be limited to watering, weeding, mowing, cultivating, pruning, staking and tying, trash pick-up and removal, and repairing any damage caused by pedestrian or vehicle encroachment into the planting and/or turf areas.

Packet Pg. 519 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 21 | Page
If at any time the Builder fails to maintain such areas in the manner required pursuant to this DFA, and said condition is not corrected upon written notice by the City pursuant to Section 16.1 of this DFA, the City may, but shall not be obligated to, perform the necessary maintenance and the Builder shall pay such costs as are reasonably incurred for such maintenance, together with interest at the maximum lawful rate until full payment is made to the City. The monies expended by the City shall become a lien against the Project Site which shall be junior and subordinate to deeds of trust for financing or refinancing of the improvements as allowed pursuant to this DFA.

10. Covenants Regarding Use and Operation of the Project and Property. The Builder covenants and agrees for itself, its successors, its assigns and every successor-in-interest to all or any part of the Property that the Builder, such successors and such assignees shall act as follows:

10.1 Nondiscrimination. Builder, its successors and assigns, shall not discriminate on the basis of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, lease or rental or in the use or occupancy of the Property and the Improvements.

10.2 Payment of Taxes, Assessments, Encumbrances and Liens. The Builder shall pay prior to delinquency all real estate taxes and assessments assessed and levied on the Property, at all times following close of escrow on the sale of the Property by the City to the Builder. The Builder shall not allow to be placed on the Property any mortgage, trust deed, encumbrance or lien other than such deeds of trust as the Builder may grant to secure construction or other financing related to the development of the Property unless expressly authorized by this DFA or the City. The Builder shall promptly remove or satisfy any levy or attachment made on all or any part of the Property. Nothing contained in this DFA shall prohibit the Builder from reasonably contesting the validity or amounts of any tax assessment, encumbrance or lien, nor to limit the remedies available to the Builder in respect to such contest.

10.3 Effect and Duration of Covenants. It is intended and agreed that the agreements and covenants provided in the City Declaration of Rent Restrictions shall be covenants running with the land and equitable servitudes thereon and that they shall, in any event, and without regard to technical classifications or designation, be binding, to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by, the City, the City’s successors and assigns, any other governmental entity acting within its authority and any successor in interest to all or any part of the Property against the Builder, its successors and assigns and every successor in interest to all or any part of the Property, and any party in possession or occupancy of the Property and any subcontracting party or parties or other transferees under this DFA.

10.4 Effect of Violation. The City is deemed the beneficiary of the terms and provisions of this DFA, the City Declaration of Rent Restrictions, and the covenants running with the land, both for its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose benefit this DFA and the covenants running with the land have been provided. The DFA, the City Declaration of Rent Restrictions, and the covenants shall run in favor of the City without regard to whether the City has had or does have any interest in the Property.

11. Indemnification. Builder hereby agrees to protect, defend, indemnify and hold harmless, City, its officers, elected or appointed officials, employees, agents and volunteers from and Packet Pg. 520 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 22 | Page
against any and all claims, damages, losses, expenses, judgments, demands, penalties, fines, defense costs, and consequential damage or liability of any kind or nature, however caused, arising directly or indirectly out of the obligations or operations herein undertaken by Builder, but only to the extent such damage or liability is caused in whole or in part by any act or omission of the Builder, any contractors or subcontractors of Builder or anyone for whose acts Builder may be liable, including, but not limited to, concurrent active or passive negligence, except where caused by the active negligence, sole negligence or willful misconduct of the City or resulting or arising from allegations that the City failed to administer the program in accordance with applicable law. Builder will conduct all defense at its sole cost and expense and City shall have right to approve or disapprove legal counsel defending the City. City shall be reimbursed for all costs and attorney's fees incurred in enforcing this obligation. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable, but it is the intent of the parties that nothing in this provision is intended to otherwise reduce any insurance coverage on any policy of insurance held by the Builder or its subcontractors to which the City would otherwise be entitled to in the absence of this provision; accordingly the indemnity obligations hereunder shall not apply to this extent this indemnity would reduce or eliminate existing insurance coverage that would inure directly or indirectly to the benefit of the City. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Builder. This Section 11 shall survive the termination of this DFA, irrespective of the reason for its termination, until a date that is ten (10) years following the date the City furnishes the Builder a “Certificate of Completion;” provided however that nothing in this provision is intended to extend the statute of limitations by which any party other than the City can bring their claim.

12. Insurance Requirements and Public Safety Protections. Builder shall promptly take steps to protect the public from the risk of injury whether from the condition of the Property or Builder’s activities in connection with the Property. The Builder shall obtain and maintain, or require the contractor and subcontractors for the Project to purchase and maintain the following insurance for claims which may result from the operations under the DFA of the Builder, any contractor, subcontractor or anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable:

12.1 Builder Insurance Requirements. Builder shall procure and maintain for the duration of the DFA insurance against claims for injuries to persons or damages to property which may arise from or in connection with Builder’s activities hereunder. The cost of such insurance shall be borne by Builder. Builder shall maintain the following noted insurance:

Coverage Required Not Required
Commercial General Liability X (If Contractor does not carry)

Comprehensive Vehicle Liability X

Workers Compensation and Employee Liability X
Builder’s Risk/Course of Construction X (During Construction) Hazard/All Risks X (Following Construction)

12.1.1 Course of Construction/Builder’s Risk Insurance. Builder shall provide proof of Course of Construction/Builder’s Risk Insurance providing coverage for “all risks” of Packet Pg. 521 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 23 | Page
loss during the construction phase of the Project in the amount of the City Assistance as stated in Section 3 of this DFA. This amount totals the sum of all grants, seller carry back loan, or any other loan. The value of this number calculates to $2,705,882.00.

12.1.2 Hazard Insurance. Following completion of construction, Builder shall keep the improvements now existing or hereafter erected on the Project Site insured for full replacement value against loss by fire, hazards included within the term “extended coverage,” and such other hazards as the City may require and in such amounts for the full remaining term of the DFA.

12.1.3 The obligation to indemnify, protect, defend, and hold harmless set forth in this Section applies to all claims and liability regardless of whether any insurance policies are applicable. The policy limits of said insurance policies do not act as a limitation upon the amount of indemnification to be provided by Contractor.

12.1.4 The City does not accept insurance certificates or endorsements with the wording “but only in the event of a named insured’s sole negligence” or any other verbiage limiting the insured’s insurance responsibility.

12.1.5 Contractor shall designate the City of Redding, 777 Cypress Avenue, Redding, CA 96001 as a Certificate Holder of the insurance. Contractor shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause. Certificates and endorsements shall be submitted electronically via the PINS Advantage system. A link will be provided for the Contractor, or their insurance agent, to enter and upload documents directly to PINS Advantage. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved in PINS Advantage by the City’s Risk Manager prior to the commencement of contracted services. City may withhold payments to Contractor if adequate certificates of insurance and endorsements required have not been submitted as described above or provided in a timely manner.

12.2 Sub-Contractor (General Contractor) Insurance Requirements. During the duration of this DFA, Builder shall ensure that the General Contractor maintains the following noted insurance:

Coverage Required Not Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers Compensation and Employee Liability X
Builder’s Risk/Course of Construction X
Hazard/All Risks X

12.2.1 Minimum Scope and Limits of Insurance. Coverage shall be at least as broad as:
(a) Insurance Services Office form number CG-0001, Commercial General Liability Insurance, in an amount not less than $1,000,000 per occurrence $2,000,000 general aggregate for bodily injury, personal injury and property damage; Packet Pg. 522 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 24 | Page
(b) Insurance Services Office form number CA-0001, Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all owned/non-owned and hired vehicles; (c) Statutory Workers Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers Compensation and Employers' Liability policy shall contain the insurer's waiver of subrogation in favor of the City, its elected officials, officers, agents, employees and volunteers;
(d) Deductibles and Self-Insured Retentions: Any deductibles or selfinsured retentions, and any modifications thereof, must be declared to and approved by the Risk Coordinator of the City of Redding.

12.3 Other Insurance Provisions. The general liability policy is to contain, or be endorsed to contain, the following provisions:
(a) The City, its officers, officials, employees, agents, and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of Builder; products and completed operations of the Builder; premises owned, occupied, or used by the Builder. The coverage shall contain no special limitations of the scope of protection afforded to the City, its officers, officials, employees, agents, or volunteers. (b) Builder’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or selfinsurance maintained by the City, its officers, officials, employees, agents, or volunteers shall be excess of Builder’s insurance and shall not contribute with it. (c) Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) Days prior written notice has been given to the entity. (d) All insurance policies and renewals thereof shall be in form acceptable to the City. Builder shall promptly furnish to City copies of all renewal notices and all receipts of paid premiums. In the event of loss, Builder shall give prompt notice to the insurance carrier and City. City may make proof of loss if not made promptly by Builder.

12.4 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.

12.5 Verification of Coverage. Builder shall furnish the Risk Manager of the City of Redding with certificates of insurance and original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the Risk Manager of the City of Redding as a condition precedent to the obligation of the City to transfer the Property to Builder.

12.6 Failure to Maintain. If Builder fails to obtain or maintain, or cause to be obtained and maintained, any insurance required by this DFA, the City shall have the right to purchase the Packet Pg. 523 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 25 | Page
insurance and Builder shall reimburse the full costs to City of obtaining such insurance.

13. Prohibitions Against Assignment and Transfer.

13.1 Builder may not assign or otherwise transfer Builder’s rights or obligations under this DFA without the prior written consent of City.

13.2 City has entered into this DFA in reliance upon the identities and qualifications of the Builder. Builder may not change or modify the Development Team without the prior written consent of City.

13.3 Prohibition Against Transfer of Interest. Builder represents that it is informed, and Builder shall inform any successors in interest, of the provisions of this Section 14. Subject to restriction of federal and State securities regulation and prior to issuance of a Certificate of Completion, Builder shall not permit transfers of ownership which would result in a change in management authority or fiscal ability with respect to Builder or, with respect to any of the parties in control of the Builder, by any method or means, including, but not limited to sale, transfer, increased capitalization, merger with another corporation, corporate or other amendments, or otherwise. With respect to this provision, the Builder represents that it has the authority to agree to and bind Builder to this provision.

13.4 Prohibitions Against Transfer or Assignment.

13.4.1 Transfer or Assignment of Interests in the DFA. Except as required to obtain the financing approved by City or as permitted in Section 13.1, Builder shall not, prior to the issuance of the Certificate of Completion, make any total or partial sale, assignment or transfer of any interest in the DFA without the prior written approval of the City.

13.4.2 Transfer or Assignment of Interests in the Property. Except as required to obtain financing, Builder shall not, prior to the issuance of the Certificate of Completion, make any total or partial sale, assignment or transfer of any interest in the Property without the prior written approval of the City.

13.4.3 Conditions of Approval. City shall be entitled to require the following as conditions to any approval of any assignment or transfer of any interest in the Property, the DFA, or the Builder:
(a) Qualifications and Financial Responsibility. Any proposed transferee shall have the qualifications and financial responsibility, as determined by City, necessary and adequate to fulfill Builder’s obligations under the DFA (or, in the event of transfer of a part of the Property, such obligations to the extent that they relate to such part). (b) Assumption of Obligations. Any proposed transferee shall, for itself and its successors and assigns, expressly assume all of Builder’s obligations under the DFA and shall agree to be subject to all the conditions and restrictions to which Builder is subject (or, in the event the transfer is of or relates to part of the Property, such obligations, conditions and restrictions to the extent that they relate to such part). Said assumption of obligations shall be in writing in recordable form approved by City and shall expressly be for the benefit of City. The fact that any such transferee shall not have assumed such obligations or so agreed, shall not relieve such transferee from such obligations, conditions, or restrictions, or deprive the City of Packet Pg. 524 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 26 | Page
any rights or remedies or controls with respect to all or any part of the Property or this DFA that the City would have had, had there been no such transfer or change. (c) Review of Documents. Builder shall submit to the City for review all legal documents involved in effecting such transfer. Such documents shall be subject to City’s prior written approval.
(d) Limits on Consideration. Prior to issuance of the Certificate of Completion, the consideration payable for the transfer by such transferee of any interest in the Property or the DFA shall not exceed One Hundred Fifty-Three Thousand and No/100 Dollars ($153,000.00) which shall be paid to City, and which represents the current fair market value of the Property, and, in addition, the actual costs incurred for the design and construction of Improvements, if any, actually made on the Property subject to the transfer. It is the intent of this provision to preclude assignment of the DFA or transfer of the Property for profit prior to the completion of the Improvements. The transferee’s obligation to pay One Hundred Fifty-Three Thousand and No/100 Dollars ($153,000.00) to the City may be satisfied by the transferee’s assumption of the City Note.
(e) Other Conditions. Builder and such transferee shall comply with such other conditions as City may find necessary and reasonable in order to achieve and safeguard the purposes of the DFA.

13.5 Builder Obligations Not Relieved. In the absence of specific written agreement by the City to the contrary, no such transfer or approval of transfer by the City shall relieve the Builder, or any other party bound in any way by the DFA, from any of its obligations under the DFA.

14. Special Provisions.

14.1 City Requirements. The City is a legal entity and the Builder is not by this DFA relieved of any ordinances or fees of the City of Redding, except to the extent superseded by the City in exercise of its authority.

15. Financing and Lender’s Rights.

15.1 Limitation on Encumbrances. Prior to the completion of the Project, the Builder of the Property shall not engage in any financing or any other transaction creating any encumbrance or lien on the Property, whether by express agreement or operation of law, except to obtain funds to be used only for actual construction costs of the Project and other expenditures necessary and appropriate to develop the Property in accordance with this DFA. Builder shall notify the City in advance of any proposed financing to be secured by the Property. In any event, Builder shall promptly notify City of any encumbrance or lien that has been created on or attached to the Property. If Builder is not in default of this DFA, and if City approves all of the construction financing documents, including the terms of any subordinate agreement, which approval shall not be unreasonably withheld, City will subordinate its Deed of Trust to the lien of a construction deed of trust for such financing.

15.2 Provisional Refinancing. Builder may, without City consent, refinance any indebtedness secured by an encumbrance which is superior to the Deed of Trust, provided that the refinanced encumbrance shall have the following characteristics:

Packet Pg. 525 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 27 | Page

15.2.1 Amount. The refinanced encumbrance shall not secure indebtedness in a dollar amount greater than the dollar amount of the indebtedness to which the City’s interest was originally subordinated.

15.2.2 Debt Service. The debt service of the refinanced indebtedness shall be an amount which does not exceed the amount of the debt service of the indebtedness to which the City’s interest was originally subordinated.

15.2.3 No Monies to Builder. Builder shall receive no fees or monies as a result of the refinancing of the indebtedness of the Project.

15.2.4 Subordination Agreement. Subject to City approval, which approval shall not be unreasonably withheld, upon request, City shall execute any document reasonably required to evidence the subordination of the City Deed to a permitted indebtedness or refinancing. City shall not be required to subordinate the City’s Declaration of Rent Restrictions pursuant to Section 15.2 and 15.6.

15.3 Lender’s Option to Cure Defaults. After any default of Builder’s obligations under the DFA, each Lender (or any successor thereof) shall have the right, at its option, to tender the default to the Builder for cure or remedy by the Builder. Should the Builder not cure the default within a reasonable time allowed to Builder under this DFA, the Lender(s) may cure the default. However, such cure by the Lender(s) will add substantial cost to be shouldered by the Builder for noncompliance and subsequent default. Such costs may include but are not limited to: attorney fees, penalties allowed under the law, interest, fees, costs, expenses of such litigation or appeal as warranted in addition to existing debt and the lien secured by the Property or at the option of the Lender(s). The Lender(s) may take any action necessary to recoup any costs from the Builder for default.

15.3.1 Should any breach or default by the Builder relate to the construction of the Project, the Lender(s) shall not undertake or continue the construction of the Project (beyond the extent necessary to conserve or protect Project or construction already made) unless Lender assumes in writing the Builder’s obligations to complete the Project on the Property in the manner provided in the DFA. Any Lender (or successor to Lender) who properly completes the Project as provided in the DFA shall be entitled, upon written request made to the City, to receive a Certificate of Completion from the City in a manner provided in the DFA. Such certification shall mean that any remedies or rights with respect to revesting of title to the Property that the City may have because of Builder’s failure to cure any default with respect to the construction of the Project on other parts of the Property, or because of any other default of the DFA by the Builder shall not apply to the part of the Property to which such Certification relates.

15.4 City’s Option to Pay Debt or Purchase Property. If, after Builder’s default under the DFA and after sixty (60) Days prior written notice from the City, the Lender fails to exercise its option to construct the Project or undertakes, but does not diligently prosecute to completion, construction of the Project, City shall have the option, exercisable only by written notice to Lender within ten (10) Days after expiration of the sixty (60) Day period, to do one of the following:

15.4.1 Pay Debt. City shall be entitled, at its option, to pay to the Lender the amount of the secured debt and acquire or terminate Lender’s secured position.

Packet Pg. 526 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 28 | Page

15.4.2 Deed in Lieu. If title to the Property has vested in Lender by way of a deed in lieu of foreclosure, City shall be entitled, at its option within sixty (60) Days from notice to City of Lender’s acceptance of such a deed, to a conveyance to it of the Property upon payment to Lender of an amount equal to the sum of the following:
(a) The secured debt at the time of the deed in lieu of foreclosure (less application of rentals and other income received during foreclosure proceedings). (b) All expenses with respect to the deed in lieu of foreclosure. (c) The costs of any Improvements made by Lender.

15.4.3 Foreclosure. City shall have the right to bid at any foreclosure sale held by or for any Lender on the Property.

15.4.4 Eminent Domain. Nothing in this DFA shall limit any exercise of City’s power of eminent domain over the Property.

15.5 City’s Option to Cure Loan Default. In the event of a default prior to the completion of the Improvements by the Builder, or any successor in interest to Builder by reason of any of its obligations under any mortgage or other instrument creating an encumbrance or lien upon the Property, the City may at its option cure such default or breach following the expiration of any applicable cure period (or sooner upon notice to Builder), in which case the City shall be entitled, in addition to any of its other rights or remedies, to reimbursement from the Builder of all costs and expenses incurred by the City in curing such default and to a lien upon the Property for such reimbursement, provided that any such lien shall be subject always to the lien of any then existing liens on the Property authorized by the DFA including, but not limited to, any construction financing.

15.6 Assurances to Lenders. City and Builder shall in good faith consider making such reasonable modifications to this DFA and executing such further instruments and agreements as a Lender secured by an interest in the Property may reasonably request to acknowledge and protect such Lender’s rights, provided such modifications, instruments and agreements do not materially, adversely affect any party’s rights or obligations under this DFA and provided such modifications, instruments, and agreements serve a material economic purpose. In conjunction with any financing the City agrees to provide Estoppel Certificate at the conclusion of the Project. This certificate will be delivered to the Builder within 10 business days after receipt of the written request for the certificate

15.7 Inclusion in Loan and Security Instruments. Either: (a) City’s rights and remedies under this Section 15.7 shall be included in all loan and security instruments of Lender related to the Property; or (b) City and such Lender shall enter into an intercreditor agreement in a form and substance acceptable to City and its counsel, incorporating such rights and remedies.

15.8 Lender and Property. For the purposes of the DFA, the term “Lender” shall include all holders, including the Construction Lender, of any lien or encumbrance as security for a loan made to the Builder on all or any part of the Property and references to the Property shall mean that portion of the Property so encumbered.

16. Defaults and Remedies. The provisions of this Section 16 are in addition to any Packet Pg. 527 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 29 | Page
provisions in the City Deed of Trust regarding default and remedies. Subject to any extension of time permitted by this DFA, a failure or delay by a party to perform any term or provision of this DFA constitutes a default of this DFA.

16.1 Cure. Except as otherwise provided in the DFA, if either party shall default in, or breach, the DFA, such party shall cure such default or breach within thirty (30) Days after receipt of written notice from the other party of such default or breach. If the defaulting party does not cure or demonstrate to the reasonable satisfaction of the other party that it has acted and continues to act promptly and diligently to cure the default within such time, the aggrieved party may declare an “Event of Default” and institute proceedings to cure and remedy such default or breach, including, but not limited to, proceedings to compel specific performance by the party in default. While neither party is relieved of any obligation under this DFA to give notice, mere failure to notify the other party shall not be deemed a waiver of the defaulting party’s default.

16.2 Termination Prior to Completion of Construction.

16.2.1 Termination by City. If, prior to completion of construction of the Improvements by Builder and without City approval, Builder assigns any interest in the DFA or the Property (other than as permitted in this DFA), permits a change in the ownership or control in Builder in violation of this DFA, or fails to perform any obligation under the DFA, then City may elect to declare an Event of Default and terminate, subject to the cure period provided in Section 16.1 above, the DFA, at its option. In such event, the City reserves all remedies for any damages incurred.

16.2.2 Termination by Builder. If, prior to completion of construction of the Improvements by Builder, City fails to perform any obligation under the DFA, then Builder may elect to declare an Event of Default and terminate, subject to the cure period provided in Section

16.1 above, the DFA, at its option. In such event, Builder reserves all remedies for specific performance and/or any damages incurred. In no event shall the failure by the City to approve the Project or any Plans for the Project be deemed a default by the City.

16.3 City Right to Purchase After Termination. In addition to any other rights of City in the event of termination under Subsection 16.2.1, City shall have, for a period of six (6) months after such termination, the right to purchase the Property. The purchase price shall be the Fair Market Value of the property or the total cost of the development improvements plus any outstanding City land loans completed to date on the Property, whichever is less. Any balance owing under the Note shall be forgiven. Builder shall convey the Property immediately upon receipt of such purchase price. For purposes of this Section 16.3, total cost shall mean the cost of improvements completed to date by Builder as well as the value of land, as certified by a third-party accountant.

16.4 City Right of Reverter. This DFA is made on the condition that on or before March 26, 2026, Builder shall commence construction on the Property for which City has approved the Plans and specifications pursuant to this DFA. Builder shall diligently pursue completion of the Project on or before the date which is thirty (30) months after the Effective Date of this DFA. In addition to any other available remedy in law or equity, if Builder breaches this condition subsequent, then City or its successors and assigns, without paying any compensation for any buildings or other improvements on the Property and without making any compensation or incurring any liability for damages or losses of any kind, shall have the power to terminate all right, title, and interest in the Property of Builder, its heirs, successors and Packet Pg. 528 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 30 | Page
assigns, in the manner provided by law for the exercise of this power of termination.

Immediately on such a termination, Builder, its heirs, successors or assigns, shall forfeit all rights or title to the Property and the Property shall revert to City or its successors or assigns. The remedy set forth in this Section 16.4 may be exercised in the alternative to the right to purchase after termination provided in Section 16.3.

16.5 Other Rights and Remedies of City. City shall have the right to institute such actions or proceedings as it may deem desirable to carry out the purposes of this section, including the right to record in the public land records a written declaration of the termination of all the rights of the Builder in the Property provided by this DFA.

16.6 No Waiving by Delay. Any delay by a party in asserting any rights under this section shall not operate as a waiver of such rights or to deprive such party of, or limit, such rights in any way. Any waiver in fact made by a party with respect to any specific default shall not be considered as a waiver of the rights of such party with respect to any other defaults or with respect to the particular default except to the extent specifically waived in writing.

16.7 Assignment of Contracts; Power of Attorney. Subject to the rights of the Construction Lender and upon execution by the City of appropriate assignment and assumption documents, in the event of termination under Subsection 16.2.1, all contracts with contractors, subcontractors, suppliers and other entities related to the construction of the Improvements and all sources of funds for construction of the Improvements to the extent assignable are irrevocably assigned by Builder to the City upon City demand. Upon the City taking possession of the Property, the Builder irrevocably appoints the City as its attorney-in-fact with regard to the Property and Improvements, and related construction and financing agreements, until issuance of a Certificate of Occupancy for the said improvements, which assignment is coupled with an interest.

16.8 Delay for Causes Beyond Control of Party. For the purposes of any of the provisions of the DFA, neither City nor Builder shall be considered in breach of, or default in, its obligations with respect to the Property or the Project, or the beginning, prosecution and completion of construction of the Improvements, if delay in the performance of such obligations is due to causes beyond the delayed party’s control and without its fault or negligence including, but not limited to, acts of God, acts of a public enemy, acts of any federal, state or local governmental body or City, delays in availability, procurements or delivery of adequate materials, equipment, supplies or personnel which are outside the control of Builder, acts of the other party, fires, floods, epidemics, discovery of protected species or historical artifacts upon the Property, discovery of pre-existing hazardous materials, quarantine restrictions, strikes, freight embargoes, a general moratorium on financing for projects of the same type, and unusually severe weather (as for example, floods, tornadoes, or hurricanes) or delays of subcontractors due to such causes. In the event of the occurrence of any such enforced delay, the time or times for performance of such obligations of the City and Builder shall be extended for the period of the enforced delay, provided that the party seeking the benefit of the provisions of this section shall, within thirty (30) Days after the party has or should have knowledge of any such enforced delay, have first notified the other party, in writing, of the delay and its cause, and requested an extension for the period of the enforced delay. In no event, however, shall any period of enforced delay exceed ninety (90) Days if the party claiming enforced delay has not demonstrated, to the reasonable satisfaction of the other party, that it has acted and continues to act promptly and diligently, to the extent reasonably possible, to terminate such enforced delay.

Packet Pg. 529 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 31 | Page

16.9 Rights and Remedies Cumulative. The rights and remedies of the parties to the DFA shall be cumulative, and the exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other such remedies for the same default or breach or of any of its remedies for any other default or breach by the other party. No waiver made by either such party with respect to the performance of any obligation of the other party or any condition to its own obligation under the DFA shall be considered a waiver of any rights beyond those expressly waived in writing.

17. General Provisions.

17.1 Time for Actions. City and Builder shall each do the actions required of them, on or before the times specified in this DFA. Unless otherwise provided, City shall give required approvals or disapprovals within fourteen (14) Days after submission, except matters which must be decided by the Board of Directors of the City, which shall be decided within thirty (30) Days.

17.2 Counterparts. This DFA may be executed in two (2) counterpart originals, each of which shall constitute one and the same instrument.

17.3 Priority of Contents of DFA. In the event of a conflict between the terms of this DFA and the Exhibits, this DFA shall be given precedence.

17.4 Inspection of Books and Records. City has the right, at all reasonable times and upon reasonable notice, to inspect the books and records of the Builder pertaining to the Project as necessary to assure compliance with the provisions of this DFA. Builder shall keep such books and records as City may reasonably require to assure Builder’s performance of its obligations under this DFA.

17.5 Fees, Commissions, Gifts or Interests. Neither party shall be liable for any real estate commissions, brokerage fees or finder’s fees which may arise from this DFA. City and Builder each represent that neither has engaged any broker, agent or finder, and that neither claims such a commission or fee, in connection with this DFA. Builder shall pay no fee or commission, make no gifts and provide no interest in the Loan to any employee or official of the City.

17.6 Entire Agreement. This DFA, all of the attached agreements, and all of the agreements contemplated in the DFA, integrates all of the terms and conditions related or incidental to its subject matter, and supersedes all negotiations or previous agreements between the parties with respect to its subject matter.

17.7 Waivers and Amendments. All waivers of the provisions of this DFA must be in writing and signed by the appropriate authorities of the City or the Builder, and all amendments hereto must be in writing and signed by the appropriate authorities of the City and the Builder.

However, minor amendments which do not result in a substantial or functional change to the original intent of the DFA and do not cause an increase to the maximum amount payable under this DFA may be agreed to in writing between Builder and the City Manager of the City.

17.8 Non-liability of City Officials and Employees. No member, official or employee of the City shall be personally liable to the Builder, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Builder or its successors, or on any obligations under the terms of this DFA.

Packet Pg. 530 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 32 | Page

17.9 Notices and Demands. Any notice, demand or other communication under the DFA by either party to the other shall be deemed to have been full and properly given when made in writing, enclosed in a sealed envelope, and deposited in the United States Post Office, certified mail, postage prepaid, to the addresses for Builder and City stated in Sections 1.5 and

1.8, respectively, or delivered by facsimile to the numbers listed for the Builder and City in Sections 1.5 and 1.8, respectively, and evidenced by a fax receipt.

17.10 Jurisdiction, Venue and Attorneys’ Fees.

17.10.1 Jurisdiction and Venue. Any legal action(s) concerning the DFA or the performance of any party thereunder shall be brought only in the court of appropriate jurisdiction in the County of Shasta. The Builder and the City agree that jurisdiction and venue shall only be in said courts.

17.10.2 Attorneys’ Fees. In the event any legal action, including arbitration, is brought by either party to this DFA to enforce this DFA or for breach of this DFA or for a declaration of the rights and duties under this DFA, the prevailing party shall recover costs and reasonable attorney’s fees in addition to any other relief to which that party may be entitled.

17.10.3 No Party Deemed Drafter. In the event of a dispute between the parties hereto over the meaning of this DFA, no party shall be deemed to have been the drafter hereof, and the principle of law that contracts are construed against the drafter does not apply.

18. Parties to the Contract. Within this agreement and associated Exhibits, The remainder of this page is intentionally left blank.

Packet Pg. 531 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 33 | Page
IN WITNESS WHEREOF, the parties have executed this DFA as of the Effective Date.

BUILDER:

FAITHWORKS COMMUNITY COALITION,
INC.
____________________________

CRYSTAL SPENCER
Executive Director
Tax ID No. 33-0805113
CITY:

CITY OF REDDING
_________________________________
TENESSA AUDETTE, Mayor
ATTEST:
_____________________________________
Sharlene Tipton, City Clerk

APPROVED AS TO FORM:

CHRISTIAN M. CURTIS, CITY ATTORNEY
_____________________________________
Packet Pg. 532 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 34 | Page

LIST OF EXHIBITS
EXHIBIT 1: Legal Description of Property
EXHIBIT 2: Agreement Containing Covenants
EXHIBIT 3: Memorandum of Development Funding Agreement
EXHIBIT 4: City Declaration of Rent Restrictions
EXHIBIT 5: Unit Mix
EXHIBIT 6: Purchase Agreement and Escrow Instructions
EXHIBIT 7: City Land Loan Deed of Trust
EXHIBIT 8: City Land Loan Promissory Note
EXHIBIT 9: City Deed of Trust
EXHIBIT 10: City Promissory Note
EXHIBIT 11: Preliminary Budget – Sources and Uses
EXHIBIT 12: Scope of Development
EXHIBIT 13: Schedule of Performances
EXHIBIT 14: Reserved
EXHIBIT 15: Notice of Completion
EXHIBIT 16: Certificate of Completion
EXHIBIT 17: Change Order
EXHIBIT 18: Estoppel Certificate
Packet Pg. 533 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 35 | Page
EXHIBIT 1

LEGAL DESCRIPTION
_____________________________________________________________

THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SHASTA, CITY OF REDDING, DESCRIBED AS FOLLOWS:

LOT 4, 5, AND 6 IN BLOCK 4, AS SHOWN ON THE MAP OF PARK SUBDIVISION RECORDED IN THE OFFICE OF THE COUNTY RECORDER MAY 25, 1936, IN BOOK 5 OF MAPS, AT PAGE 12, SHASTA COUNTY RECORDS.

ASSESSOR’S PARCEL NO. 104-350-018-000, 104-350-018-019-000 AND 104-350-018-020- 000
Packet Pg. 534 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 2
OFFICIAL BUSINESS:

Document entitled to free recording
Per Government Code section 27383.

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

City of Redding
777 Cypress Avenue
Redding, CA 96001
SPACE ABOVE THIS LINE FOR RECORDER’S USE

AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY
(815 Parkview Avenue, 825 Parkview Avenue and 2520 Leland Avenue) This Agreement is entered into this ____ day of _________, 2025, by and between FAITHWORKS COMMUNITY COALITION, INC., a California nonprofit corporation (the “Owner”) and the CITY OF REDDING, a municipal corporation and general law City (the “City”).

WHEREAS, Owner is the owner of the real property (“Property”) described in Exhibit “A” attached hereto. The Property is located within Parkview Neighborhood Strategic Revitalization Plan (defined in the Redevelopment Plan as adopted by the City Council of the City of Redding).

NOW, THEREFORE, CITY AND OWNER AGREE AS FOLLOWS:

1. The Project. Owner represents and covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property or any part thereof, that:

1.1. Owner and City have entered into a Disposition and Financing Agreement (“DFA”) dated ____________, 2025, in which Owner agreed to purchase, develop, use and maintain the Property in conformity with the DFA, and the City has agreed to sell the Property for development of the Project.

1.2. Owner shall construct the Project in accordance with the Final Plans (as defined in the DFA) in conformance with the DFA;

1.3. Owner shall not transfer the Property or any portion thereof during the term of this Agreement, except: (a) in conformance with the DFA and the Declaration of Rent Restrictions (as defined in the DFA); or (b) with the prior written consent of City.

1.4. Owner shall incorporate the provisions of this Agreement in its declaration of covenants, conditions and restrictions.

1.5. The DFA was entered into on the condition that on or before , 2025, Owner shall, pursuant to valid building permit, commence construction on the Property of the Project for which City has approved the plans and specifications pursuant to the DFA, and that Owner shall diligently pursue completion of such Project as provided for in Packet Pg. 535 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 2 | Page
the DFA. In addition to any other available remedy in law or equity, if Owner breaches this condition subsequent, then City or its successors and assigns, without paying any compensation for any buildings or other improvements on the Property and without making any compensation or incurring any liability for damages or losses of any kind, shall have the power to terminate all right, title, and interest in the property of Owner, its heirs, successors and assigns, in the manner provided by law for the exercise of this power of termination. Immediately on such a termination, Owner, its heirs, successors or assigns, shall forfeit all rights or title to the property and the property shall revert to City or its successors or assigns.

2. Covenants Against Discrimination. Owner herein covenants by and for itself and its successors and assigns, and all persons claiming under or through each of them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property herein conveyed, nor shall the Owner itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of the Property herein conveyed. The foregoing covenant shall run with the land. All deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:

2.1. In Deeds: “The grantee herein covenants by and for itself or himself, his heirs, executors, administrators and assigns, and all persons claiming under or through him, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or any person claiming under or through it or him establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land herein conveyed. The foregoing covenants shall run with the land.”

2.2. In Leases: “The lessee herein covenants by and for itself or himself, his heirs, executors, administrators and assigns, and all persons claiming under or through him, and this lease is made and accepted upon and subject to the following conditions:

That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall the lessee himself or any person claiming under or through him establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land herein leased. The foregoing covenants shall run with the land.”

2.3. In Contracts: “There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein leased, nor shall the transferee itself or himself or any person claiming under or through him establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use Packet Pg. 536 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 3 | Page
or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land. The foregoing covenants shall run with the land.”

3. Use Covenants. The Property shall be utilized as approved by the City and any requested changes to the Property’s use must be approved in writing by the City and its use or conduct shall not violate any law, ordinance, regulation or restriction of a governmental entity exercising proper jurisdiction.

4. Payment of Taxes, Assessments, Encumbrances and Liens. Owner shall pay, prior to delinquency, all real estate taxes and assessments assessed and levied on the Property, other than taxes and assessments levied on parties other than Owner. Nothing contained in this Agreement shall prohibit the Owner from reasonably contesting the validity or amounts of any tax assessment, encumbrance or lien, nor to limit the remedies available to the Owner.

5. Maintenance and Restoration. Owner shall maintain the Property, including the buildings, improvements, grounds and equipment in good repair and condition.

5.1. Maintenance Standards. The Owner and successor(s) shall have the affirmative and ongoing obligation to prevent on the Property the occurrence of: a) fire hazards; b) conditions dangerous to the public health, safety and general welfare; and c) conditions which constitute unsightly appearance or otherwise detract from the aesthetic and property values of neighboring properties. The Owner and successor(s) shall adhere to the following minimum performance standards for the maintenance and landscaping of the Property:

5.2. Appearance.

5.2.1. The exterior areas around the Property shall be kept free of rubbish, debris, trash, garbage and other unsightly or unsanitary materials. Trash or refuse cans, bins, boxes or other such containers must be stored out of the public right of way.

5.2.2. There shall be no parking, storing or keeping of any large commercial type vehicle (dump truck, cement mixer truck, oil or gas truck, etc.), or any recreational vehicle (camper unit, camper shell detached from a private passenger vehicle, motor home, trailer, boat trailer, mobile home or other similar vehicle), boats or any vehicle other than a private passenger vehicle.

5.2.3. Property or material such as lumber, salvage materials, broken or neglected equipment or wrecked, dismantled or inoperable vehicles may not be stored at the Property.

5.2.4. Foundations, driveways and walkways are to be maintained in good condition and have no significant cracks that could jeopardize structural integrity or become unsightly.

5.2.5. No buildings abandoned, boarded up, partially destroyed or left in an unmaintained condition so that any of the following exists:
(a) Building abandoned, boarded up, partially destroyed or left unreasonably in a state of partial construction.

Packet Pg. 537 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 4 | Page
(b) Paint in such a condition as to: cause dry rot, warping and termite infestation; or constitute an unsightly appearance that detracts from the aesthetic value of the Property or surrounding properties.
(c) Broken windows or missing glass constituting hazardous conditions and/or inviting trespassers and malicious mischief. (d) Graffiti remaining on any portion of the Property for a period exceeding five (5) Days.

5.3 Landscape. Landscaping shall be absent of the following:

5.3.1 Grass in excess of six (6) inches in height.

5.3.2 Untrimmed hedges.

5.3.3 Dying trees, shrubbery, lawns and other plant life from lack of water or other necessary maintenance.

5.3.4 Trees and shrubbery grown uncontrolled without proper pruning.

5.3.5 Vegetation so overgrown as to be likely to harbor rats or vermin.

5.3.6 Dead, decayed or diseased trees, weeds and other vegetation.

5.3.7 Inoperative irrigation system(s).

6. Term. The use covenants contained in Section 3 of this Agreement shall remain in effect until the expiration of fifty-five (55) years.

7. Covenants. The provisions contained in this Agreement are covenants which subject and burden the Property, as covenants running with the land. It is intended and agreed that the agreements and covenants provided in the Agreement shall be covenants running with the land and equitable servitudes on the land and that they shall, in any event, and without regard to technical classifications or designation be binding, to the fullest extent permitted by law and equity, for the benefit and in favor of, and enforceable by, the City, the City’s successors and assigns, any other governmental entity acting within its authority and any successor in interest to all or any part of the Property against the Grantee, its successors and assigns and every successor in interest to all or any part of the Property, and any other transferees under the DFA.

References in this Agreement to Owner shall include all such successors, assigns, occupants, transferees and any other party over which Owner can enforce its rights concerning such covenants.

8. Existing Covenants, Conditions & Restrictions. This Agreement shall supersede any covenants, conditions and restrictions that have been previously recorded by, or on behalf of, the City for the Property.

9. Rights of Obligees. The provisions of this Agreement do not limit the right of any obligee to exercise any of its remedies for the enforcement of any pledge or lien upon the Property; provided, however, that in the event of any foreclosure under any mortgage, deed of trust, or other lien or encumbrance, or a sale pursuant to any power of sale included in any such Packet Pg. 538 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 5 | Page
mortgage or deed of trust the purchaser or purchasers and their successors and assigns and the Property shall be subject to all of the conditions, restrictions and covenants contained in this Agreement.

10. City as Beneficiary. The City and its successors and assigns are deemed the beneficiaries of the covenants contained in this Agreement, without regard to technical classification and designation. The covenants shall run in favor of the City and its successors and assigns without regard to whether the City has been, remains, or is an owner of any land or interest therein, and shall bind the Owner, its successors and assigns. Such beneficiaries shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other property proceedings to enforce the curing of such breach, to which it or any other beneficiaries of such covenants are entitled. In the event the City shall be abolished or its designation changed by or pursuant to law, its powers, rights and functions under this Agreement may be transferred to any other designated governmental office or City.

11. City Codes. Nothing contained in this Agreement shall be construed as permitting the violation of any requirement of the ordinances or other laws or rules of the City of Redding, it being the intent of this Agreement to impose additional restrictions over and above the requirements of any such ordinances, except that of affordability as required by this DFA.

12. Modifications. City and its successors and assigns, and Owner and its successors and assigns, shall have the right to consent and agree to changes in, or to eliminate in whole or in part any of the covenants or restrictions contained in this Agreement without the consent of any tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under a deed or trust or any other person or entity having any interest less than a fee in the Property.

13. Attorneys’ Fees. If either Owner or City files any lawsuit against the other predicated on this Agreement, the prevailing party in such action shall be entitled to recover, from the non-prevailing party, its attorneys’ fees, and all fees, costs, and expenses incurred in any post-judgment proceedings to collect or enforce any judgment and in any appeal. This provision for the recovery of post-judgment fees, costs, and expenses is separate and several and shall survive the merger of this agreement into any judgment on this agreement.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Packet Pg. 539 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) 6 | Page
IN WITNESS WHEREOF, the City and the Owner have executed this Agreement as of the date first above written.

CITY:

CITY OF REDDING
By: __________________________________
BARRY TIPPIN, City Manager
APPROVED AS TO FORM:
_____________________________________
CHRISTIAN M. CURTIS, City Attorney
OWNER:

FAITHWORKS COMMUNITY
COALITION, INC., a California nonprofit
By: _______________________________
Name: CRYSTAL SPENCER
Title: Executive Director
**Please have Notary Public attach a separate Acknowledgement Form with signature and seal**
Packet Pg. 540 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT A TO AGREEMENT CONTAINING

COVENANTS

LEGAL DESCRIPTION

ALL THAT CERTAIN REAL PROPERTY SITUATED IN CITY OF REDDING, COUNTY

OF SHASTA, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LOT 4, 5, AND 6 OF BLOCK 4, AS SHOWN ON THE MAP OF PARK SUBDIVISION RECORDED IN THE OFFICE OF THE COUNTY RECORDER, MAY 25, 1936, IN BOOK 5 OF MAPS AT PAGE 12, SHASTA COUNTY RECORDS.

Assessor’s Parcel No. 104-350-018-000, 104-350-018-019-000 AND 104-350-018-020-000 Packet Pg. 541 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 3

RECORDING REQUESTED BY AND
WHEN RECORDED SEND TO:

City of Redding
777 Cypress Avenue
Redding, California 96001

No recording fee required pursuant to
Government Code Section 27383 and 6103.

SPACE ABOVE THIS LINE FOR RECORDER’S USE

MEMORANDUM OF DISPOSITION AND FINANCING AGREEMENT
815, 825 Parkview Avenue and 2520 Leland Avenue
THIS MEMORANDUM OF DISPOSITION AND FINANCING AGREEMENT is made this ____________, 2025, by and between the CITY OF REDDING (“City”) and FAITHWORKS COMMUNITY COALITION, INC., a California nonprofit public benefit corporation, hereinafter referred as “Builder.”
City and Builder are parties to that certain Disposition and Financing Agreement with an effective date of ______, 2025 (the “DFA”), the terms and conditions of which are hereby incorporated by this reference as if set forth in full herein. The DFA controls the development and use of that certain real property, including improvements thereto, situated in the County of Shasta, State of California, and described as follows:
[See Exhibit A]
Dated: ___________________

CITY OF REDDING
By:___________________________
Name: Barry Tippin
Title: City Manager
Dated: ___________________

FAITHWORKS COMMUNITY COALITION,
INC. a California nonprofit public benefit
corporation
By:___________________________
Name: Crystal Spencer
Title: Executive Director
**Please have Notary Public attach separate Acknowledgement Form with signature and seal**
Packet Pg. 542 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT “A” to MEMORANDUM OF DFA

LEGAL DESCRIPTION
815, 825 Parkview Avenue and 2520 Leland Avenue

ALL THAT CERTAIN REAL PROPERTY SITUATED IN CITY OF REDDING, COUNTY

OF SHASTA, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LOT 4, 5, AND 6 OF BLOCK 4, AS SHOWN ON THE MAP OF PARK SUBDIVISION RECORDED IN THE OFFICE OF THE COUNTY RECORDER, MAY 25, 1936, IN BOOK 5 OF MAPS AT PAGE 12, SHASTA COUNTY RECORDS.

Assessor’s Parcel No. 104-350-018-000, 104-350-018-019-000 AND 104-350-018-020-000 Packet Pg. 543 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 4
RECORDING REQUESTED BY:

City of Redding

CITY BUSINESS - NO FEE
Section 6103 of the Government Code
of the State of California

AND WHEN RECORDED MAIL TO:

City of Redding
777 Cypress Avenue
Redding, CA 96001

CITY OF REDDING

DECLARATION OF RENT RESTRICTIONS
THIS DECLARATION OF RENT RESTRICTIONS (the “Declaration”) is entered into the ___ day of ______________ 2025, by and between the CITY OF REDDING, a municipal corporation (the “City”) and FAITHWORKS COMMUNITY COALITION, INC., a California nonprofit public benefit corporation (FaithWorks).

A. FaithWorks is fee owner of record of that certain real property (“Real Property” or “Site”) located at 815, 825 Parkview Avenue and 2520 Leland Avenue in the City of Redding, County of Shasta, State of California, legally described in the attached Exhibit “A”. The Real Property is the subject of a Disposition and Financing Agreement dated __________________, 2025, for the acquisition, development, operation, and maintenance of a mixed-use development consisting of commercial space and a minimum of fourteen (14) residential units (the “Project”). The residential portion of the Project includes five (5) Income Qualifying Units for Lower-Income Households to be located on the Real Property as herein defined.

B. The Real Property is located within the Parkview Neighborhood in the City of Redding and the development of the Site for affordable housing is in the best interest of FaithWorks and the CITY, and the health, safety, and welfare of the residents of the City of Redding.

C. To facilitate affordable rental housing and to fulfill a portion of the CITY’s replacement and inclusionary housing obligations, the CITY wishes to place affordable rent restrictions on of the residential units.

NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS:

1. Number of Units. The residential portion of the Project to be constructed on the Site consists of a minimum of fourteen (14) affordable housing units. FaithWorks agrees to make available, restrict occupancy to, and rent at an “Affordable Rent” the residential units as described in the DFA. “Lower-Income Household” shall mean a household with a total household income no greater than eighty percent (80%) of Shasta County median income, as determined by HUD from time to time, as set forth in Health and Safety Code Section 50079.5, as it exists as of the date of this Declaration.

“Affordable Rent” shall have the meaning set forth in Health and Safety Code Section 50053, as it exists as of the date of this Declaration, as further defined in Paragraph 3 of this Declaration.

Packet Pg. 544 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) “Affordability Period” shall mean a period commencing upon the date of issuance of a Certificate of Occupancy by the City of Redding Building Division for the Project and continuing for fifty-five (55) years.

2. Duration of Affordability of Income Qualifying Units. The Income Qualifying Units shall remain available for rent to and occupancy by Lower-Income Households at an Affordable Rent throughout the Affordability Period and shall “run with the land, and will bind and inure to the benefit of successors and assigns.

Not withstanding any other provision of law, the covenants and restrictions contained herein shall run with the land for the duration of the Affordability Period and shall be enforceable, against FaithWorks and/or its successors in interest, by the City, the community and/or others as allowed by law.

This Declaration of Rent Restrictions shall survive termination of the Disposition and Financing Agreement and reconveyance of the City Deed of Trust and shall not be subject to subordination.

3. Determination of Affordable Rent for the Income Qualifying Units. Each Affordable Unit shall be rented at a monthly rental amount ("Affordable Rent") in accordance with Section 50053 of the California Health and Safety Code. As of the approval of this Declaration, the following formulas represent maximum monthly Affordable Rents:
i) For the Lower-Income Units: One-twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of the area median income adjusted for family size appropriate to the unit applicable to Shasta County, as determined by the United States Department of Housing and Urban Development (the "Applicable Median Income"); and

4. Monitoring of the Income Qualifying Units. FaithWorks, its designee or successor shall prepare and submit annually the certification reports, as requested by the City, during the Affordability Period. The report shall identify each rental unit, the rental rate, and the income and family size of the occupants. The required income information shall be supplied by the tenant in the form of source documentation kept at the Real Property and shall be available for City review at the City’s request.

IN WITNESS WHEREOF, the City and FaithWorks have signed this Declaration on the respective dates set forth below.

CITY: CITY OF REDDING
By: __________________________________
BARRY TIPPIN, City Manager
APPROVED AS TO FORM:
_____________________________________
CHRISTIAN M. CURTIS, City Attorney
OWNER: FAITHWORKS COMMUNITY
COALITION, INC., a California nonprofit
By: _______________________________
Name: CRYSTAL SPENSER
Title: Executive Director

****Please have Notary Public attach a separate Acknowledgement Form with signature and seal ****
Packet Pg. 545 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT “A”

LEGAL DESCRIPTION
815, 825 Parkview Avenue and 2520 Leland Avenue

ALL THAT CERTAIN REAL PROPERTY SITUATED IN CITY OF REDDING,

COUNTY OF SHASTA, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LOT 4, 5, AND 6 OF BLOCK 4, AS SHOWN ON THE MAP OF PARK

SUBDIVISION RECORDED IN THE OFFICE OF THE COUNTY RECORDER, MAY 25, 1936, IN BOOK 5 OF MAPS AT PAGE 12, SHASTA COUNTY RECORDS.

Assessor’s Parcel No. 104-350-018-000, 104-350-018-019-000 AND 104-350-018-020- 000
Packet Pg. 546 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 5
Unit Mix
Unit Mix Chart
Number of Units Restrictions* (% AMI,
Medi-Cal Recipient) Funding Type Overlaid Years of Affordability Bedroom Size
2 <= 80% AMI, Medi‐Cal
recipient, with either
declared or diagnosed
mental health issue WPC N 55
Two ‐ One
4 <= 80% AMI HHIP/ERF 3‐L N 55 Two ‐One
0 <= 80% AMI SHA N 55 ‐
8 >= 80% ‐ 120% REAP N 55
Four ‐Studios
Four ‐ One
14 Total Units
AMI: Adjusted Monthly Income (Gross)
<=80% AMI: A household with a gross total household income no greater than eighty percent (80%) of Shasta County median income, as determined by HUD from time to time, as set forth in Health and Safety Code Section 50079.5.

Overlaid: Overlaying of units refers to the laying of subsidy on one unit of construction. For example, six of the above units listed in the chart satisfy the following Funding Types: WPC, HHIP/ERF 3-L and SHA (SHA property provides for 55-year covenant).

Medi-Cal recipient: A California citizen that receives benefits funded by both the federal and state government to that helps to cover medical costs for some people with limited income and resources.

WPC: Whole Person Care funding
HHIP: Housing and Homeless Incentive Program
SHA: Successor Housing Agency
REAP: Regional Early Planning Grant
Packet Pg. 547 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 6
=============================================

PURCHASE AGREEMENT
AND

ESCROW INSTRUCTIONS
815, 825 Parkview Avenue and 2520 Leland Avenue
=============================================
By and Between

CITY OF REDDING
and
FAITHWORKS COMMUNITY COALITION, INC.

Packet Pg. 548 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

PURCHASE AGREEMENT

AND ESCROW INSTRUCTIONS
This Purchase Agreement and Escrow Instructions (“Agreement”) is entered into effective this _____ day of 2025, by and between CITY OF REDDING, a municipal corporation and general law City (“City” or “Seller”), and FAITHWORKS COMMUNITY COALITION, INC (FaithWorks)., a California nonprofit public benefit corporation (“Purchaser”).

RECITALS
A. City is a municipal corporation and general law City.

B. Purchaser is nonprofit public benefit corporation organized under the law of the State of California and qualifying for Federal Tax-Exempt Status under Section 501© (3) of the Internal Revenue Code.

C. The Agreement is being entered into pursuant to the terms of that certain Disposition and Financing Agreement between the City and Purchaser dated as of , 2025 (the “DFA”), incorporated herein by this reference.

D. Pursuant to the terms of the DFA, City will convey the Property (as defined herein) to Purchaser, on the terms and conditions contained in the DFA and this Agreement, for development and use as the Project.

E. City wishes to sell the Property, and Purchaser wishes to purchase the Property, on the terms and conditions contained in the DFA and this Agreement.

F. Capitalized terms not otherwise defined herein have the meaning given to such term in the DFA.

AGREEMENT

1. Definitions:

1.1 “City” means the City of Redding

1.2 “Close of Escrow” shall mean the date upon which the Grant Deed is recorded in the official records of Shasta County.

1.3 “Deed Restrictions” shall mean the restrictions to be included in the Grant Deed pursuant to Section 18.

1.4 “Effective Date” shall mean the date this Agreement is signed by the City.

1.5 “Escrow Holder” shall mean the escrow company at which City opens the Escrow contemplated by this Agreement.

1.6 “Grant Deed” means a grant deed containing the Deed Restrictions.

Packet Pg. 549 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

1.7 “Hazardous Substance”: includes, but is not limited to, any hazardous or toxic substance, material or waste that is (i) regulated by any local governmental authority, the State of California or the United States Government, (ii) defined as an "actual hazardous waste”, “extremely hazardous waste”, “hazardous waste”, or “waste” under Section 25110.02, 25115, 25117, or 25124 or listed pursuant to Sections 25141 and 25141.5 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control); (iii) defined as a “hazardous material”, “hazardous substance”, or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum or petroleum hydrocarbons, or volatile organic compounds such as gasoline or diesel fuel; (vi) asbestos; (vii) listed under Chapter 10 of Division 4.5 of Title 22 or defined as hazardous or extremely hazardous pursuant to Division 21.5 of Title 26 of the California Code or Regulations; (viii) designed as a “hazardous waste” pursuant to Section 6903 et seq. ; (ix) defined as a “hazardous substance” pursuant to Section 9601 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601 et seq.; (x) any flammable substances or explosive; or (xi) any radioactive material.

1.8 “Inspection Period” means a period commencing on the Effective Date, and ending 30 days thereafter.

1.9 “Knowledge” of City means matters within the current actual knowledge of City staff.

1.10 “Property” means the real property located 815 Parkview Avenue, 825 Parkview Avenue and 2520 Leland Avenue, Redding, Shasta County, California, Assessor’s Parcel Numbers 104-350-018, 019 & 020 more specifically described in Exhibit “A” hereto, including all structures, improvements, easements or other rights owned by City appurtenant to or otherwise relating to such real property.

1.11 “Title Company” shall be the title company selected by the City.

1.12 Other defined terms have the meaning ascribed to such terms in the body of this Agreement, or in the DFA. In the event of any apparent conflict in definitions, the definitions contained in this Agreement shall control.

2. Purchase and Sale. City agrees to sell the Property to Purchaser, and Purchaser agrees to purchase the Property from City, on the terms and conditions provided for in the DFA and this Agreement. This Agreement is subject to all of the terms, conditions, and provisions of the DFA.

3. Purchase Price.

3.1 The Purchase Price. The Purchase Price for the Property is the sum of One Hundred Fifty-Three Thousand and no/100 Dollars ($153,000.00), payable upon the terms provided in Section 3.2 herein.

3.2 The Payment of Purchase Price. The Purchase Price shall be paid by Purchaser by execution of the City Land Loan Promissory Note attached to the DFA Packet Pg. 550 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

as Exhibit 8 and payment of deposits at the times and in the amounts required by the DFA.

4. Escrow. The transaction contemplated by this Agreement shall be consummated through an escrow, which shall be opened by City with Escrow Holder within (5) Days after the Effective Date of this Agreement. This Agreement shall, to the extent possible, serve as escrow instructions. The parties agree to execute additional escrow instructions as Escrow Holder may require, provided that such instructions are not inconsistent with the terms of this Agreement. The Close of Escrow shall be no later than 5:00 p.m., , 2025, unless the parties agree in writing to extend such date.

5. Inspection and Due Diligence.

5.1 Purchaser’s Investigation. Subject to the provisions of this Section 5, during the Inspection Period, Purchaser may conduct feasibility and due diligence investigation of the Property and any other matters related to the transaction contemplated herein. In connection with such investigation, Purchaser’s investigation rights shall include, but not be limited to, (i) physical inspections of the Property, (ii) environmental, geophysical, soil, engineering and other forms of inspection or testing upon the Property (iii) investigation of all zoning, development rights, permits and other land use rights relating to the Property, (iv) investigation of the economic potential of the Property and (v) any other matters that Purchaser deems relevant in connection with the decision to consummate the transaction contemplated herein.

5.2 Purchaser’s Access to Records. Upon the Effective Date of this Agreement, and during the Inspection Period, City shall provide Purchaser with physical access to the Property, for the purpose of conducting its investigations.

5.3 Delivery of Documents. Within ten (10) Days of the Effective Date of this Agreement, City shall deliver to Purchaser copies of all environmental, engineering, planning and geological reports and documents, within City’s control or possession relating to the Property. In the event Purchaser does not acquire the Property, Purchaser shall promptly return said copies to City.

5.4 Right of Termination. If for any reason whatsoever Purchaser determines that the Property or any aspect thereof is unsuitable for Purchaser’s acquisition, Purchaser shall have the right to terminate this Agreement by giving written notice thereof to City prior to the expiration of the Inspection Period, and if Purchaser gives such notice of termination within the Inspection Period, this Agreement and the DFA in so far as it relates to the development of the Property shall terminate. If this Agreement is terminated pursuant to the forgoing provisions of this paragraph, then (i) neither party shall have any further rights or obligations hereunder (except for any indemnity obligations of Purchaser pursuant to Section 5.5 of this Agreement) or the DFA in so far as it relates to the development of the Property, and (ii) each party shall bear its own costs incurred hereunder.

5.5 Inspection Indemnity. Purchaser shall indemnify, protect, defend, and hold City harmless from and against all claims arising out of the acts or omissions of Purchaser, its agents and subcontractors in connection with inspection of the Property.

Purchaser shall return the Property to substantially the same condition as it existed prior to any such testing.

Packet Pg. 551 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

5.6 Consent to Testing. If Purchaser wishes to conduct any invasive testing of the Property, including test drills or borings, Purchaser shall only do so after notifying City and obtaining City’s written consent thereto, which consent may be subject to reasonable terms and conditions imposed by City. City reserves the right to have a representative of City present during any such testing.

5.7 Purchaser’s Environmental Reports. Purchaser shall provide City with a copy of any environmental reports conducted by or commissioned for Purchaser, together with the results of any environmental testing conducted by or for Purchaser on and or about the Property.

6. Title.

6.1 Title Inspection. Within fifteen (15) Days of the Effective Date of this Agreement, City shall provide Purchaser with a preliminary report issued by Title Company together with copies of all recorded documents shown as exceptions to title thereon. Purchaser shall advise City within fifteen (15) Days after actual receipt of all such materials, what exceptions to title, if any, will be accepted by Purchaser. City shall have ten (10) Days after receipt of Purchaser’s objections to give Purchaser notice that either: (i) City will remove any objectionable exceptions from title and provide Purchaser with evidence satisfactory to Purchaser of such removal, or City will provide Purchaser with evidence satisfactory to Purchaser that such exceptions will be removed on or before the Closing; or (ii) City elects not to cause such exceptions to be removed. If City gives Purchaser notice that City will not remove any such exception, Purchaser shall have ten (10) Days to notify City of Purchaser’s election (a) to proceed with the purchase of the Property and take the Property subject to such exceptions but otherwise pursuant to the terms of this Agreement, or (b) to terminate this Agreement. If Purchaser shall fail to give City notice of its election within said ten (10) Days, Purchaser shall be deemed to have elected to terminate this Agreement, and each party shall bear its own costs incurred under this Agreement. If any amended or supplemental preliminary report is thereafter issued, Purchaser and City shall have the same rights and obligations as to such new or modified matters as are otherwise provided for herein.

6.2 Lien of Current Taxes. Notwithstanding the provisions of Section

6.1, title may be subject to the lien of current real estate taxes not yet due or payable.

6.3 Title Insurance Policy. At Closing, City shall cause Title Company to deliver to Purchaser a California Land Title Association standard coverage owner’s policy of title insurance (1992), subject only to the exceptions to title permitted in this Section 6, the cost of which shall be paid one half by City and one half by Purchaser. Said policy shall be in the amount of the Purchase Price. Purchaser may elect to obtain an ALTA owner’s policy of title insurance. The additional cost of such policy shall be paid by Purchaser.

6.4 Lender’s Policy of Title Insurance. At Closing, Purchaser shall cause to be delivered to City an ALTA lender’s policy of title insurance in the amount of the City Assistance, the cost of which shall be paid by Purchaser, insuring the priority of the Deed of Trust subject only to private financing approved by the City, and as to which City has agreed to be subordinate. City Assistance shall mean any financial assistance provided to Builder to as described in Section 3 of the related Disposition and Financing Agreement.

Packet Pg. 552 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

7. “As-Is” Sale. This Purchase Agreement shall be subject to the provisions of Section 4.4 of the DFA with respect to due diligence and condition of the property.

8. Possession. Full possession of the Property shall be delivered by City to Purchaser upon the Close of Escrow.

9. Prorations.

9.1 Real Estate Taxes. City is exempt from real estate taxes pursuant to the California Constitution. Real estate taxes have been cancelled pursuant to Revenue and Taxation Code Section 5086 during City’s ownership of the Property. Purchaser will pay Purchaser’s prorated share of such real estate taxes, which would have been due if such taxes had not been cancelled as provided above. All bonds and assessment obligations not cancelled as provided above shall be prorated as of the Close of Escrow.

9.2 Proration of Rents. All rents or other rental income shall be prorated as of the Close of Escrow.

10. Costs.

10.1 Costs and Fees. Purchaser and City shall each pay one-half of (i) Escrow Holder’s fees; (ii) Escrow Holder’s cost of preparing, executing, and acknowledging any deeds or other instruments required to convey title to Purchaser; (iii) the cost of recording the Grant Deed required to convey title to the Property to Purchaser or its nominee; and (iv) any taxes imposed on the conveyance of title to the Property to Purchaser or its nominee under the Documentary Transfer Tax Act. The cost of the title insurance policies shall be paid as provided for in Section 6 of this Agreement.

11. Representations and Warranties of City. City hereby represents and warrants to Purchaser that:

11.1 City’s Authority. City is a municipal corporation, City in good standing and has full power and authority to execute and enter into this Agreement and to consummate the transactions contemplated hereunder. This Agreement constitutes a valid and binding agreement of City enforceable in accordance with its terms.

11.2 City’s Approval. Upon Close of Escrow, the execution and delivery of this Agreement by City has been duly authorized and approved by the Board of Directors of City in accordance with law. No further action is necessary on the part of City to make this Agreement valid and binding upon City and enforceable against City in accordance with its terms.

11.3 Hazardous Substances. To City’s current, actual knowledge there is no (i) pending or threatened litigation or proceeding before any administrative City, (ii) pending notice from any governmental authority, or employee or agent thereof or (iii) communication, notice, or agreement with any governmental City or private party, any of which relates in any way to the presence, release, threat of release, placement, generation, transportation, storage, treatment, or disposal of any Hazardous Substance.

11.4 Absence of Litigation. City has not been served with any lawsuit or administrative proceedings affecting the ownership, title, development, condition or Packet Pg. 553 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

improvements of the Property, and, to City’s knowledge, no such lawsuit or administrative proceeding has been commenced or filed.

11.5 Notice to City. City has not received notice from any governmental City that the Property is in violation of any law, ordinance, rule, or administrative or judicial order affecting the Property.

11.6 Representations True as of Close. City’s representations and warranties as contained herein will be true and correct as of the Close of Escrow.

12. Representations and Warranties of Purchaser. Purchaser hereby represents and warrants to City that:

12.1 Purchaser’s Authority. Purchaser is a nonprofit public benefit corporation in good standing and has full power and authority to execute and enter into this Agreement and to consummate the transactions contemplated hereunder. This Agreement constitutes a valid and binding agreement of Purchaser enforceable in accordance with its terms.

12.2 Purchaser’s Approval. The execution and delivery of this Agreement by Purchaser has been duly authorized and approved by the Purchaser. No further action is necessary on the part of Purchaser to make this Agreement valid and binding upon Purchaser and enforceable against Purchaser in accordance with its terms.

13. Survival of Representations and Warranties. The representations and warranties of City and Purchaser herein shall survive for a period of one year after the Close of Escrow. No claim for a breach of any representation or warranty shall be made unless written notice of such claim is served by the claimant on the other party no later than one year after the Close of Escrow. Such notice shall describe the facts giving rise to such claim in reasonable detail.

14. Purchaser’s Conditions of Closing. The Close of Escrow and Purchaser’s obligation to purchase the Property pursuant to this Agreement are expressly conditioned on:

14.1 The delivery to Purchaser of the Title Insurance Policy, in the amount of the Purchase Price, subject only to such exceptions to title as are permitted in Section 6 hereof;

14.2 City having performed its obligations under the DFA and this Agreement;

14.3 City having delivered into escrow all documents or instruments required by this Agreement, and having complied with all other covenants and conditions to be performed or complied with by City;

14.4 City having approved the Other Financing; and

14.5 City having approved the Construction Loan Documents, if applicable.

Packet Pg. 554 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

14.6 The representations and warranties of City contained in this Agreement being true on and as of the Close of Escrow as if the same were made on and as of such date.

15. City’s Conditions of Closing. The Close of Escrow and City’s obligation to complete the sale of the Property to Purchaser is conditioned on:

15.1 Purchaser having delivered into escrow all funds as required by this Agreement and having complied with all other covenants and conditions to be performed or complied with by Purchasers;

15.2 Purchaser having delivered copies, or written evidence satisfactory to the City, of all approvals, entitlements and permits (other than building permits) necessary for the development of the Property;

15.3 Purchaser having executed and delivered all documents required under this Agreement and the DFA;

15.4 Purchaser having submitted to City the certificates of insurance required under the DFA;

15.5 Purchaser having made its conventional debt or equity contribution, if any, as shown in Exhibit 11 of the DFA, approved by the City;

15.6 City having determined, in its sole and reasonable discretion, that Purchaser is not in default of any provision of this Agreement, nor is there any condition which, after notice and opportunity to cure, would constitute such a default;

15.7 City having obtained all necessary consents and releases to enable City to convey title to the Property to Purchaser free and clear of any liens evidenced by those exceptions to the Preliminary Title Report not approved by Purchaser pursuant to paragraph 6 hereto; provided, however, that City shall have used its best efforts to obtain such consents or releases;

15.8 The issuance by the Escrow Holder of the ALTA lender’s policy of title insurance as required by Section 6.4 herein; and

15.9 The representations and warranties of Purchaser contained in this Agreement being true on and as of the Close of Escrow as if the same were made on and as of such date.

16. Failure of Conditions. Should any of the conditions specified in this Agreement fail to occur prior to the date established herein for the Close of Escrow, the party benefited by such condition shall have the power, exercised by giving written notice to the Escrow Holder and to the other party, to waive the condition or to cancel the escrow and terminate this Agreement and the DFA in accordance with the provisions of Section 16 of the DFA. Upon the termination of this Agreement and the DFA for a failure of a condition to the close of Escrow, Escrow Holder shall return all funds and documents held by Escrow Holder to the party depositing such funds or documents in escrow.

Packet Pg. 555 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

17. Condemnation. In the event that, prior to the Close of Escrow, any governmental entity shall commence any action of eminent domain to take any portion of the Property, Purchaser shall have the option either to (i) elect not to acquire the Property, in which case this Agreement shall be terminated, or (ii) complete the acquisition of the Property, in which case Purchaser shall be entitled to the proceeds of such taking.

18. Deed Restrictions. The Grant Deed from the City to the Purchaser shall contain the following covenants, conditions, reservations, restrictions and power of termination:

18.1 “This grant is made on the condition that Grantee shall, pursuant to valid permits, commence construction on the property of the Project for which Grantor has approved the plans and specifications pursuant to that certain Disposition and Financing Agreement between Grantor and Purchaser dated _________ ____, 2025 (the “DFA”), and that Grantee shall diligently pursue completion of such Project as provided for in the DFA. In addition to any other available remedy in law or equity, if Grantee breaches this condition subsequent, then Grantor or its successors and assigns, without paying any compensation for any buildings or other improvements on the Property and without making any compensation or incurring any liability for damages or losses of any kind, shall have the power to terminate all right, title, and interest in the property of Grantee, its heirs, successors and assigns, in the manner provided by law for the exercise of this power of termination. Immediately on such a termination, Grantee, its heirs, successors or assigns, shall forfeit all rights or title to the property, and the property shall revert to Grantor or its successors or assigns.”, and

18.2 “Grantee herein agrees and covenants, for itself, its heirs, successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall Grantee itself or any person claiming under or through them, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein contained. The forgoing covenants, conditions, reservations and restrictions shall run with the land.”

19. Closing.

19.1 City shall execute in Escrow, or deliver to Escrow Holder for delivery to Purchaser at the Close of Escrow, each of the following:

19.1.1 The Grant Deed.

19.1.2 The Agreement Containing Covenants, as provided in the DFA;

19.1.3 The Memorandum of DFA, as provided in the DFA, if not already recorded;
Packet Pg. 556 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

19.1.4 The City Declaration of Rent Restrictions, as provided in the DFA; and

19.1.5 Any other document required by the DFA which is to be recorded upon sale of the Property by City.

19.2 Purchaser shall execute in escrow, or deliver to Escrow Holder for delivery to City at the Close of Escrow, each of the following:

19.2.1 The City Land Loan Promissory Note and City Promissory Note, plus the amount the Purchaser’s share of the title and escrow costs and expenses and prorations required by this Agreement.

19.2.2 The City Land Loan Deed of Trust and City Deed of Trust;

19.2.3 The Agreement Containing Covenants, as provided in the DFA;

19.2.4 The Memorandum of DFA, as provided in the DFA, if not previously recorded;

19.2.5 The Declaration of Rent Restrictions and the Notice of Affordability Restrictions on Transfer of Property, as provided in the DFA; and

19.2.6 Any other document required by the DFA which is to be recorded upon the acquisition of the Property by Purchaser.

19.3 When the conditions of the Close of Escrow have been satisfied, Escrow Holder shall:

19.3.1 Record the following documents in this order:
(a) Memorandum of DFA;
(b) Grant Deed;
(c) Agreement Containing Covenants;
(d) City Declaration of Rent Restrictions;
(e) City Deeds of Trust(s);
(f) Construction Lender Deed(s) of Trust, if any;

19.3.2 Deliver the Notes to City,

19.3.3 Deliver the appropriate Title Insurance Policies to Purchaser and City.

20. Attorneys’ Fees. In the event any legal action, including arbitration, is brought by either party to this Agreement to enforce this Agreement or for breach of this Agreement or for a declaration of the rights and duties under this Agreement, the prevailing party shall recover costs and reasonable attorney’s fees in addition to any other Packet Pg. 557 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

relief to which that party may be entitled.

21. Entire Agreement. The DFA, all of the attached agreements, and all of the agreements contemplated in the DFA, of which this Purchase Agreement is a part, integrates all of the terms and conditions related or incidental to its subject matter, and supersedes all negotiations or previous agreements between the parties with respect to its subject matter.

22. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Venue for any action related to this Agreement shall be Shasta County.

23. Time of Essence. Time is of the essence in the performance of the parties’ obligations under this Agreement.

24. Notices. All notices and demands of any kind which either party may be required or desires to serve upon the other party shall be in writing and shall be served upon such other party by personal service, facsimile transmission, or by mailing a copy thereof, certified or registered mail, postage prepaid, addressed as follows:

If to City: City of Redding
777 Cypress Avenue
Redding, CA 96001
Attn: Executive Director
If to Purchaser: FaithWorks Community Coalition, Inc
2825 West Street, #1
Redding, CA 96001
Attn: Crystal Spencer
Service shall be deemed complete on the date of personal service, facsimile transaction or the actual delivery as shown on the addressee’s return receipt, whichever is earlier. The addresses to which notices and demands shall be delivered or sent may be changed from time to time by notice to the other party.

25. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same agreement.

REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK
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CITY OF REDDING
Dated: ____________ ______________________________
Barry Tippin, City Manager
ATTEST: APPROVED AS TO FORM:
__________________________ _______________________________ Sharlene Tipton, City Clerk Christian M. Curtis, City Attorney

FAITHWORKS COMMUNITY
COALITION, INC.

Dated: ____________ _______________________________
Crystal Spencer, Executive Director
Packet Pg. 559 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT 7

RECORDING REQUESTED BY AND
WHEN RECORDED SEND TO:

City of Redding
777 Cypress Avenue
Redding, California 96001

No recording fee required pursuant to
Government Code Section 27383 and 6103.

SPACE ABOVE THIS LINE FOR RECORDER’S USE

CITY LAND LOAN DEED OF TRUST,

ASSIGNMENT OF RENTS, SECURITY AGREEMENT

AND FIXTURE FILING

THIS DEED OF TRUST, ASSIGNMENT OF RENTS, SECURITY
AGREEMENT AND FIXTURE FILING (“Deed of Trust”), made this ______day of ___________ 2025 between FAITHWORKS COMMUNITY COALITION, INC., a California nonprofit corporation (“Trustor”), , (Trustee”); and CITY OF REDDING, a municipal corporation (“Beneficiary”).

Trustor, in consideration of the indebtedness referred to below, irrevocably grants, transfers, conveys, and assigns to Trustee, in trust for the benefit of Beneficiary, with power of sale, that certain real property located in the County of Shasta, State of California, described in Exhibit “A” attached hereto, TOGETHER WITH:
(a) all right, title and interest (including any claim or demand in law or equity) which Trustor now has or may hereafter acquire in or to such property; all development rights or credits and air rights; all water and water rights (whether or not appurtenant to such property) and shares of stock pertaining to such water or water rights, ownership of which affects such property; Trustor’s interest in all minerals, oil, gas, and other hydrocarbon substances and rights thereto in, on, under, or upon such property and all royalties and profits from any such rights or shares of stock; and all adjacent lands within enclosures or occupied by buildings partly situated on such property; (b) all buildings, structures, improvements, fixtures and appurtenances now and hereafter placed on such property, including, without limitation, all apparatus and equipment, whether or not physically affixed to the land or any building, used to provide or supply air-cooling, air conditioning, heat, gas, water, light, power, refrigeration, ventilation, laundry, drying, dish washing, garbage disposal or other services; and all elevators, escalators and related machinery and equipment, fire prevention and extinguishing apparatus, security and access control apparatus, partitions, ducts, compressors, plumbing, ovens, refrigerators, dishwashers, disposals, washers, dryers, awnings, storm windows, storm doors, screens, blinds, shades, curtains and curtain rods, mirrors, cabinets, paneling, rugs, attached floor coverings, furniture, pictures, antennas, pools and spas and pool and spa operation and maintenance equipment and apparatus, Packet Pg. 560 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

trees and plants located on such property, all of which, including replacements and additions thereto, shall conclusively be deemed to be affixed to and be part of the real property conveyed to Trustee hereunder.
(c) all intangible property and rights relating to the aforesaid property or the operation thereof or used in connection therewith including, without limitation, permits, licenses, plans, specifications, construction contracts, subcontracts, bids, deposits for utility services installations, refunds due Trustor, trade names, trademarks and service marks.
(d) all rents, issues, profits and other income from the property, including, but not limited to, all proceeds of sale or lease of the property.

Trustor agrees to execute and deliver, from time to time, such further instruments, including but not limited to, Security Agreements, Assignments, and UCC Financing Statements, as may be requested by Beneficiary to confirm the lien of this Deed of Trust on any of the aforementioned property.

All Property, both real and personal, conveyed to Trustee hereunder shall be referred to herein as the “Property”
This Deed of Trust secures the following obligations:
(a) City Land Loan Promissory Note Secured by Deed of Trust (the “Note”) of even date herewith (and any and all renewals or extensions thereof) for One Hundred Fifty-Three Thousand and No/100 Dollars ($153,000.00) with interest thereon according to the terms of said Note, which Trustor covenants and agrees to pay. (b) Payment and performance of every obligation, covenant, promise and/or agreement contained in this Deed of Trust.
(c) Payment and performance of every obligation, covenant, promise and agreement contained in any other written instrument executed by Trustor in favor of Beneficiary on the above-described property.
(d) For the purposes of this Deed of Trust, any reference to a Note contained herein shall be deemed to refer to each and every note secured by this Deed of Trust, and any default under any note secured by this Deed of Trust shall constitute a default under every other note so secured, and shall additionally constitute a default under this Deed of Trust.
(e) This Deed of Trust secures a property acquisition loan evidenced by the Note.
(f) For the purpose of protecting and preserving the security of this Deed of Trust, Trustor promises and agrees:

1. Obligations of Trustor and Cross Default.
(a) Trustor shall promptly pay when due, all deposits, installments, payments, charges or other obligations due under the Note; and all other monetary obligations secured by this Deed of Trust.

Packet Pg. 561 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

(b) Any default of Trustor under the terms of the DFA, if not cured within the time required by the DFA, shall be a default of this Deed of Trust.

2. Repair and Maintenance of the Property. Trustor will: a) comply with the maintenance requirements of the Agreement Containing Covenants and, in general, keep the Property in good condition and repair; b) not substantially alter, remove or demolish the Property or any building or other improvements thereon, except i) when permitted by the DFA; or ii) when incident to the replacement of fixtures, equipment, machinery or appliances with items of like kind; c) restore and repair to the equivalent of its original condition, all or any part of the Property which may be damaged or destroyed, including, but not limited to, damage from termites and dry rot, soil subsidence and construction defects, whether or not insurance proceeds are available to cover any part of the cost of such restoration and repair; d) pay when due all claims for labor performed and materials furnished in connection with the Property and not permit any mechanic’s or materialman’s lien to arise against the Property or furnish loss or liability under such mechanic’s lien claims; e) comply with all laws affecting the Property or requiring that any alterations, repairs, replacements, or improvements be made thereon; f) not commit or permit waste on or to the Property, or commit, suffer or permit any act or violation of law to occur upon the Property; g) not abandon the Property; h) cultivate, irrigate, fertilize, fumigate and prune; i) if required by Beneficiary, provide for the management satisfactory to Beneficiary under a management contract approved by Beneficiary; and j) notify the Beneficiary in writing of any condition at or on the Property which may have a significant and measurable effect on its market value.

3. Insurance. Trustor agrees to provide and maintain insurance covering all buildings, structures and improvements now situated or which hereafter may be erected or placed upon said Property as required by the provisions of Section 12 of the DFA, against loss or damage by fire, and other casualties, and to carry such and, in the event said Property or any part thereof now lies or hereafter lies in an area designated by the Federal Emergency Management Agency as located within a flood insurance rate map or flood hazard boundary map, or which is designated by the Department of Housing and Urban Development as a flood zone, to carry flood insurance; all as required by the provisions of Section 12 of the DFA, or as the Beneficiary may from time to time require.

All such insurance shall be in forms, and with companies and in sums (not less than sufficient to avoid any claim on the part of the insurers for co-insurance) satisfactory to the Beneficiary. All insurance policies shall be held by and be for the benefit of Beneficiary, and shall name Beneficiary as loss payee. Beneficiary shall accept as satisfying the requirements of this Section 3 any insurance policy in the amount of the replacement cost of improvements located on said Property if such policy is satisfactory to the holder of the Deed of Trust. At least fifteen (15) Days before the expiration of each such policy, Trustor shall deliver to the Beneficiary a new and sufficient policy to take the place of the one so expiring. In the event of a loss, the amount collected under any policy of insurance on said Property may, at the sole option of the Beneficiary (1) except to the extent expressly limited or prohibited by statutory or case law in effect as of the date of this Deed of Trust, be applied by Beneficiary upon any indebtedness and/or obligation secured hereby whether the same be then matured or unmatured, and in such order as Beneficiary may determine; (2) be used in replacing or restoring the improvements partially or totally destroyed to a condition satisfactory to said Beneficiary; (3) be used by the Beneficiary to fulfill any of the covenants contained herein as the Beneficiary may determine; or (4) be released to the Trustor. In any of the Packet Pg. 562 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

foregoing events neither the Trustee nor the Beneficiary shall be obligated to see to the proper application thereof, nor shall the amount so released or used under clauses (2), (3), or (4) above be deemed a payment on any indebtedness secured hereby. Such application, use and/or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. The Trustor hereby irrevocably appoints the Beneficiary as the attorney of the Trustor to assign each such policy in the event of the foreclosure of this Deed of Trust or other transfer of the title to the granted Property in extinguishment, in whole or in part, of the debt secured hereby.

No insurance shall be required hereunder in excess of that allowed by Civil Code Section 2955.5. In the event of any conflict between the provisions of the DFA and this Deed of Trust regarding insurance, the DFA shall control.

4. Defense of Deed of Trust; Litigation. Trustor will give Beneficiary prompt written notice of any action or judicial proceeding (including, with limitation, any judicial or non-judicial proceeding to foreclose the lien of a junior or senior mortgage or deed of trust) affecting or purporting to affect the Property, this Deed of Trust, Beneficiary’s security for the performance of Trustor’s obligations under the Note, or the rights or powers of Beneficiary or Trustee under the Note or this Deed of Trust. Notwithstanding any other provision of this Deed of Trust, Trustor hereby agrees that Beneficiary or Trustee may (but neither is obligated to) commence, appear in, prosecute, defend, compromise and settle, in Beneficiary’s or Trustor’s name, and as attorney-in-fact for Trustor, any action or proceeding, whether judicial or non-judicial, reasonably necessary to preserve or protect, or affecting or purporting to affect, the Property, this Deed of Trust, Beneficiary’s security for the performance of Trustor’s obligations under the Note, or this Deed of Trust. If neither Beneficiary nor Trustee elects to do so, Trustor will commence, appear in, prosecute and defend any such action or proceeding. Beneficiary may incur necessary costs and expenses including attorneys’ fees, in any such action.

Trustor will pay all costs and expenses of Beneficiary and Trustee, including costs of evidence of title and reasonable attorneys’ fees, in any such action or proceeding in which Beneficiary or Trustee may appear or for which legal counsel is sought, whether by virtue of being made a party defendant or otherwise; and whether or not the interest of Beneficiary or Trustee in the Property is directly questioned in such action or proceeding, including, without limitation, any action of the condemnation or partition of all or any portion of the Property and any action brought by Beneficiary to foreclose this Deed of Trust or to enforce any of its terms or provisions.

5. Use of Property. Unless otherwise required by applicable law or unless Beneficiary otherwise consents in writing, Trustor will not allow changes in the use of the Property from that which is contemplated by Trustor and Beneficiary at the time of execution of this Deed of Trust, as specified in the Grant Deed from Beneficiary to Trustor and other documents executed by Trustor in connection with obtaining the loan secured hereby. Trustor will not initiate or acquiesce in a change in the zoning classification of the Property without Beneficiary’s prior written consent.

6. Taxes and Assessments. Trustor agrees to pay all taxes and assessments affecting the Property, including assessments on appurtenant water stock, and any accrued interest, cost and/or penalty thereon at least ten (10) Days before default or delinquency; to pay when due all encumbrances (including any debt secured by deed of trust), ground rents, liens, and/or charges, with interest, on said Property or any part thereof which appear to be prior or superior hereto, and to pay immediately and in full all such encumbrances, Packet Pg. 563 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

liens and/or charges, if any, which may now be due or payable; and to pay when due all costs, fees and expenses of these trusts, including cost of evidence of title and Trustee’s fees in connection with sale, whether completed or not, which amounts shall become due upon delivery to Trustee of a declaration of default.

7. Assessment Bonds. Trustor agrees to pay any and all assessments against said Property at least ten (10) Days before any bond or bonds could or would be issued in connection therewith, unless Beneficiary determines in its sole discretion that its security would not be impaired if the assessments were not paid in full.

8. Assessments on Water Bonds. Trustor agrees to pay before delinquency all assessments upon the stock of any water company which stock may be used in connection with said Property, and all rents, assessments or charges for water appurtenant to or used in connection with said Property and/or for the flumes, ditches, pipes or aqueducts in which such water may be furnished or delivered; and all such stock is hereby expressly made a part of the security hereof.

9. Reimbursement of Lender’s Expenses. Trustor agrees to pay immediately upon demand after expenditure, all sums expended or expense incurred by Trustee and/or Beneficiary, including reasonable attorney’s fees, under any of the terms of this Deed of Trust, with interest from date of demand at the rate of ten per cent (10%) per annum.

Without in any way limiting the foregoing, Trustor shall pay to or reimburse Beneficiary for any costs, fees and expenses (including without limitation reasonable attorneys’ fees and any administrative fees or overhead or other indirect costs and expenses) incurred or charged by Beneficiary in protecting its security hereunder or the Property or Beneficiary’s interests under this instrument, or in responding, processing, reviewing or reviewing or otherwise dealing with the demands or claims or requests of Trustor or third parties who claim an interest in the Property or an interest adverse to Beneficiary’s interests under this instrument.

10. Beneficiary Statement. Trustor agrees to pay to the Beneficiary any reasonable amount charged by the Beneficiary, not to exceed the maximum allowed by law, for any statement regarding the obligation secured hereby furnished by the Beneficiary upon demand by the Trustor, the charge for each such statement to be payable immediately upon furnishing of the statement.

11. Assignment of Rents and Leases.
(a) Trustor does hereby immediately and absolutely assign, transfer and set over to the Beneficiary all the rents, issues, proceeds and profits which may be or may become due or to which the Trustor may now or hereafter become entitled, arising or issuing out of, under or by virtue of any and all leases and/or rental agreements, and any and all extensions or renewals thereof, now or hereafter entered into for the Property or any part thereof, or for any improvements located thereon, and all other rents, issues, proceeds and profits due or accruing from the Property or any part thereof or the improvements located thereon. Trustor hereby gives to and confers upon Beneficiary the right, power and authority to collect such rents, issues, proceeds and profits. The assignment herein contained and all rights provided to Beneficiary by this paragraph are granted without regard to the adequacy of the Property as security for payment of the indebtedness secured by this Deed of Trust. This assignment is delivered as a present, immediate and absolute assignment of the rights contained herein; provided, however, Packet Pg. 564 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

that so long as Beneficiary has not given notice of any default under this Deed of Trust or the indebtedness secured hereby, the Trustor shall have the right to manage and operate the Property and all improvements thereon, and to collect, receive and apply for its own account all rents, issues, profits and proceeds accruing by virtue of any lease or rental agreement and to execute and deliver proper receipts thereof. Immediately upon the occurrence of any default under this Deed of Trust or the indebtedness secured hereby for which all applicable cure periods (if any) have expired, and until such default shall have been cured, the right of the Trustor to manage and operate the Property and to collect and receive rents shall cease and terminate and in such event the Beneficiary is hereby expressly and irrevocably authorized to enter into and take possession of the Property and the improvements located thereon by actual physical possession, or by appointment of a receiver by a competent court or by written notice served personally upon or sent by registered mail to the Trustor, as the Beneficiary may elect, or by any other legal means, and to exclude the Trustor and all other persons therefrom. Following such entry and taking of possession the Beneficiary may operate and manage the Property and rent and lease the same and collect any and all rents, issues, income and profits therefrom, and from time to time apply same or accumulate same for application, in such order and manner as Beneficiary, in its sole discretion shall consider advisable. Beneficiary may apply such amounts to the necessary and proper costs of upkeep, maintenance, repair and/or operation of the Property; the repayment of any sums theretofore or thereafter advanced pursuant to the terms of this Deed of Trust; the interest then due or next to become due upon said indebtedness; the taxes and assessments upon the Property then due or next to become due; the unpaid principal of said indebtedness; and any other obligations secured by this Deed of Trust. The collection and/or receipt of rents, issues, income and/or profits from the Property by Beneficiary after declaration of default and election to cause the Property to be sold pursuant to the terms of this Deed of Trust shall not affect or impair such default or declaration of default or election to cause the Property to be sold or any sale proceedings predicated thereon, but such proceedings may be conducted and sale effected notwithstanding the receipt and/or collection of any such rents, issues, income and/or profits. Any such rents, issues, income and/or profits in the possession of said Beneficiary at the time of sale and not theretofore applied as herein provided, shall be applied in the same manner and for the same purposes as the proceeds of the sale. In addition to Beneficiary’s rights under this section, Beneficiary shall have all of the rights and remedies to which Beneficiary is entitled under California Civil Code Section 2938, and nothing contained in this section 11 shall be construed as a limitation or waiver of any such rights or remedies.
(b) Trustor agrees to assign to the Beneficiary, upon request, as security for the indebtedness secured hereby, the lessor’s interests in any or all leases, and the Trustor’s interests in all agreements, contracts, licenses and permits affecting said property, such assignments to be made by instruments in form reasonably satisfactory to the Beneficiary; but no such assignment shall be construed as a consent by the Beneficiary to any lease, agreement, contract, license or permit so assigned, or to impose upon the Beneficiary any obligations with respect thereto.

12. Modification and Termination of Leases and Rent Pre-payment. Except in the ordinary course of business, Trustor agrees not to cancel any of the leases assigned or subject to assignment to Beneficiary pursuant to paragraph 11(b) hereof, nor terminate or accept a surrender thereof (except in accordance with the terms of the assignment) or reduce the payment of the rent thereunder or modify any of said leases (except in Packet Pg. 565 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

accordance with the terms of the assignment) or accept any prepayment of rent therein without first obtaining, on each occasion, the written approval of the Beneficiary.

13. Performance of Leases. Trustor agrees to faithfully keep and perform all of the obligations of the landlord under all of the leases assigned or subject to assignment to the Beneficiary pursuant to paragraph 11 above and not to permit to accrue to any tenant under any such lease any right to prepaid rent pursuant to the terms of any lease other than the usual prepayment of rent which would result from the acceptance by the landlord on the first day of each month of the rent due for the ensuing month, according to the terms of the various leases.

14. Rent Roll. Trustor agrees to deliver to Beneficiary within ninety (90) Days after the expiration of each calendar year, a rent roll of the Property showing the name and street address of all tenants in occupancy, the rent currently owed, the respective lease commencement and expiration dates, the amount of common area or expense contribution, if any, for each tenant, as well as whether there are any concessions, free rent periods or rebates.

15. Use. Trustor agrees to operate such Property at all times in the manner permitted by the DFA.

16. Sale.
(a) Prohibition of Transfer. Except as provided in (b) below, Trustor shall not, without the prior written consent of Beneficiary, which consent may be given or withheld by Beneficiary in its sole discretion, sell, convey, or transfer the herein described Property, or any part of it, or any interest in it, by the operation of law or otherwise. If Trustor is a corporation, limited liability company, partnership or joint venture, any change in the ownership, control or management of, or interest (other than interests of limited partners) in, Trustor shall be deemed to be a transfer of the Property.

Upon the occurrence of any such transaction with Beneficiary’s consent, or without Beneficiary’s consent if Beneficiary elects not to exercise its rights and remedies in the event of default (including, but not limited to, acceleration of the indebtedness secured hereby), Beneficiary shall not be obligated to release Trustor from any liability hereunder or under the Note or under any of the other documents evidencing or securing the note secured hereby. Consent to any such transaction shall not be deemed to be consent, or a waiver of the requirement of consent, to any other transaction. (b) Sale in Ordinary Course. Notwithstanding subparagraph 16(a) above, however, it is agreed that Trustor may (subject to any other provision hereof and to any provision of the Note secured hereby or of any assignment of rents or assignment of leases or any other instrument evidencing security for the loan secured hereby) sell the Property in the ordinary course of business to purchasers, and that such sale of the Property shall not be deemed a sale, conveyance, alienation or encumbrance so as to violate this covenant. For the purposes of this section, a sale of the Property in the ordinary course of business shall consist only of sales of a completed unit in accordance with the DFA and any applicable deed restrictions or other instruments or documents binding the Property.

Packet Pg. 566 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

17. Licenses. As of the date of this Deed of Trust and at all times thereafter during the term of the loan, Trustor shall have and maintain in full force and effect such certificates, consents, licenses, approvals and permits from the proper authorities as are required to operate the Property for the purpose(s) set forth in Paragraph 5 above. A failure on the part of the Trustor or any subsequent owner to maintain any such required certificate, consent, license, approval, or permit in effect or a failure to obtain renewal thereof prior to expiration, shall constitute a default under the terms of this Deed of Trust for which the Beneficiary shall have the right, at its option, upon the expiration of any cure periods, to declare the entire indebtedness evidenced by said Note and hereby secured to be immediately due and payable.

18. Security Interest In Personal Property. Trustor hereby grants to Beneficiary a security interest in and to all personal Property located at the location described in Exhibit A. This Deed of Trust constitutes a security agreement with respect to all of the Collateral, and Beneficiary shall have all of the rights and remedies of a secured party under the California Uniform Commercial Code as well as all other rights and remedies available at law or in equity. Trustor hereby agrees to execute, acknowledge and deliver on demand, and hereby irrevocably appoints Beneficiary as its attorney-in-fact, with full power of substitution, to execute, acknowledge, deliver and, if appropriate, file with the appropriate filing officer or office, such security agreements, financing statements, continuation statements or other instruments as Beneficiary may reasonably require in order to impose, perfect or continue the perfection of, the lien or security interest created hereby. The above power of attorney is coupled with an interest and shall survive the death or incapacity of Trustor. Trustor shall pay all costs and expenses in connection with any such documents or of any record searches for financing statements which Beneficiary may require.

19. Fixture Filing. This Deed of Trust constitutes a financing statement filed as a fixture filing in the real estate records of the county in which the Real Property is located with respect to any and all fixtures now or hereafter owned by Trustor and used in connection with the operation, occupancy and maintenance of the Property described in this Deed of Trust and with respect to any goods or other personal Property owned by Trustor that may now be or hereafter become such fixtures.

20. Foreclosure on Collateral. Without limiting any other rights or remedies which Beneficiary or Trustee may have hereunder or under applicable law, including the right to conduct a unified foreclosure sale of real and personal Property, upon any default not cured within applicable cure periods Beneficiary or Trustee may conduct a public or private sale of the Collateral under the California Uniform Commercial Code pursuant to this Deed of Trust, and Trustor, upon demand by Beneficiary, shall assemble the Collateral and make it available to Beneficiary at the Property, a place which is hereby deemed to be reasonably convenient to Beneficiary and Trustor. Beneficiary shall give Trustor at least twenty (20) Days prior written notice of the time and place of any public sale or other disposition of the Collateral, or of the time of or after which any private sale or other disposition of the Collateral is to be made; if such notice is sent to Trustor in accordance with the procedures for the mailing of notices set forth in the last paragraph of this instrument, it is hereby deemed that such notice shall be and is reasonable notice to Trustor.

21. Maintenance of Fixtures and Collateral. At all times during the term hereof Trustor shall maintain a sufficient level of fixtures and Collateral to properly operate the Packet Pg. 567 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

said Property, which shall in any event not be materially less than that existing on the date hereof. Notwithstanding anything to the contrary in this agreement, during any time when not in default hereunder, Trustor shall have the right, subject to the prior concurrent satisfaction of the conditions set forth in the next sentence, to substitute and replace Collateral and fixtures in the ordinary course of business. To the extent the replacement Collateral and fixtures are of the same general type and are of at least the same value, upon acquisition of the substitute Collateral and fixtures by Trustor and placement thereof on the said Real Property, the replaced Collateral and fixtures shall be deemed released from the lien hereof.

22. Maps and Restrictions. Trustor agrees that it will not without the consent of Beneficiary after the date hereof file or cause to be filed any subdivision or condominium map or plan, or any deed, plan or agreement for cooperative ownership of the Property, or any other covenants or restrictions affecting the Property.

23. Environmental Covenants. Trustor will at all times comply with the following requirements:
(a) No Use, Disposal or Storage. Trustor shall not cause, permit or suffer any Hazardous Material (as defined in paragraph 24(c)) to be brought upon, treated, kept, stored, disposed of, discharged, released, produced, manufactured, generated, refined or used upon, about or beneath the Property or any portion thereof by Trustor, its agents, employees, contractors, invitees, tenants, or any other person, except to the extent commonly used in the day to day operation of the Property and then only so long as in compliance with all Environmental Requirements (as defined in paragraph 24(b)). (b) Compliance with Environmental Requirements. Trustor shall not cause, permit or suffer the existence or the commission by Trustor, its agents, employees, or contractors of a violation of any Environmental Requirements upon, about or beneath the Property or any portion thereof and Trustor shall use its best efforts to prevent any such violation of any Environmental Requirements by any invitees, tenants or any other person. Trustor shall notify Beneficiary in writing of any release of Hazardous Materials at, on, under or within the Property in violation of any Environmental Requirements, or of the presence of Hazardous Materials at the Property in violation of any Environmental Requirements, promptly upon discovery of such release or presence. (c) Environmental Liens. Trustor shall not create or suffer to exist with respect to the Property, or permit any of its agents to create or suffer to exist any lien, security interest or other charge or encumbrance of any kind, including without limitation, any lien imposed pursuant to section 107(f) of the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. Section 9607(l)) or any similar state statute, and Trustor shall use its best efforts to prevent the creation of any such lien, security interest, charge or encumbrance by any of its tenants and shall not permit any of such tenants to suffer to exist any of such items.
(d) Mitigation. Notwithstanding the obligation of Trustor to indemnify pursuant to paragraph 25 Trustor shall, at its sole cost and expense, promptly take all actions required by any federal, state or local governmental agency or political subdivision or which are otherwise reasonably necessary in the sole reasonable discretion of Beneficiary to mitigate Environmental Damages (as defined in paragraph 24(a)) arising from the presence upon, about or beneath the Property of a Hazardous Material, or Packet Pg. 568 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

from a violation of Environmental Requirements. Such actions shall include, but not be limited to, the investigation of the environmental condition of the Property, the preparation of and feasibility studies, reports or remedial plans, and the performance of any cleanup, remediation, containment, operation, maintenance, monitoring or restoration work, whether on or off of the Property. Trustor shall take all actions necessary to restore the Property to the condition existing prior to the introduction of Hazardous Material upon, about or beneath the Property, notwithstanding any lesser standard of remediation allowable under applicable law or governmental policies. Trustor shall proceed continuously and diligently with such investigatory and remedial actions, provided that in all cases such actions shall be in accordance with all applicable requirements of Governmental entities. Any such actions shall be performed in a good, safe and workmanlike manner and shall minimize any impact on the business conducted at the Property. Trustor shall pay all costs in connection with such investigatory and remedial activities, including but not limited to all power and utility costs, and any and all taxes or fees that may be applicable to such activities. Trustor shall promptly provide to Beneficiary copies of testing results and reports that are generated in connection with the above activities. Promptly upon completion of such investigation and remediation, Trustor shall permanently seal or cap all monitoring wells and test holes to industrial standards in compliance with applicable federal, state and local laws and regulations, remove all associated equipment, and restore the Property to the maximum extent possible, which shall include, without limitation, the repair of any surface damage, including paving, caused by such investigation or remediation hereunder. (e) Notice of Environmental Risks. If Trustor shall become aware of or receive notice or other communication concerning any actual, alleged, suspected or threatened violation of Environmental Requirements, or liability of Trustor for Environmental Damages in connection with the Property or past or present activities of any person thereon, including but not limited to notice or other communication concerning any actual or threatened investigation, inquiry, lawsuit, claim, citation, directive, summons, proceeding, complaint, notice, order, writ, or injunction, relating to same, and including without limitation any notice or other communication from any tenant, then Trustor shall deliver to Beneficiary, within ten (10) Days of the receipt of such notice or communication by Trustor, a written description of said violation, liability, correcting information or actual or threatened event or condition, together with copies of any documents evidencing same. Receipt of such notice shall not be deemed to create any obligation on the part of Beneficiary to defend or otherwise respond to any such notification.
(f) Notice of Test Results. Trustor shall promptly provide to Beneficiary the results of any tests and copies of all registration permits regarding any underground storage tanks located on the Property and Trustor shall comply with the same. (g) Right to Enter and Inspect. In the event Beneficiary reasonably believes that there has been a release or threatened release of a Hazardous Material on the Property or a breach of an Environmental Requirement or in the event of any default under this Deed of Trust or under the note, Beneficiary shall have the right in its sole and absolute discretion, but not the duty, to enter upon the Property at any reasonable time to conduct an inspection of the Property, including invasive tests, to determine compliance with all Environmental Requirements and the existence of any Environmental Damages as a result of the condition of the Property or any surrounding properties and activities Packet Pg. 569 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

thereon. Trustor hereby grants to Beneficiary, and the agents, employees, consultants and contractors of Beneficiary, the right to enter upon the Property and to perform such tests on the Property as are necessary to conduct such reviews and investigations in accordance with the preceding sentence. Beneficiary shall use its best efforts to minimize interference with the business of Trustor and to restore the condition of the Property, but Beneficiary shall not be liable for any interference caused thereby or failure to restore if Beneficiary determines in its sole discretion that it is not economically practicable.

Beneficiary shall reimburse Trustor for the cost of repair of any physical injury to the Property caused by the entry and inspection to the extent required by Civil Code section 2929.5(c).
(h) Reimbursement of Lender. In the event of any default under this Deed of Trust or under the Note, Trustor shall promptly reimburse Beneficiary for any environmental studies or tests which Beneficiary deems necessary to ascertain the presence and/or level of any Hazardous Materials on the Property.

24. Definitions of Environmental Terms. For the purposes of this Deed of Trust, the following terms shall have the following meanings:
(a) “Environmental Damages” means all claims, judgments, damages (including without limitation, punitive damages), losses, penalties, fines, liabilities (including strict liability), encumbrances, liens, costs and expenses of investigation and defense of any claim, whether or not such is ultimately defeated, and of any settlement or judgment, of whatever kind or nature, contingent or otherwise, matured or unmatured, foreseeable or unforeseeable, including without limitation reasonable attorneys’ fees and disbursements and consultants’ fees, any of which are incurred at any time as a result of the existence of Hazardous Material upon, about, beneath the Property or migrating or threatening to migrate to or from the Property, or the existence of a violation of Environmental Requirements pertaining to the Property regardless of whether the existence of such Hazardous Material or the violation of Environmental Requirements arose prior to the present ownership or operation of the Property, and including, without limitation:
(1) damages for personal injury, or injury to Property or natural resources occurring upon or off of the Property, foreseeable or unforeseeable, including, without limitation, lost profits, consequential damages, the cost of demolition and rebuilding of any improvements on real property, interest and penalties including but not limited to claims brought by or on behalf of employees of Trustor, with respect to which Trustor waives, for the benefit of Beneficiary only, any immunity to which it may be entitled under any industrial or worker’s compensation laws; (2) fees incurred for the services of attorneys, consultants, contractors, experts, laboratories and all other costs incurred in connection with the investigation, cleanup or remediation of such Hazardous Materials or violation of Environmental Requirements including, but not limited to, the preparation of any feasibility studies or reports or the performance of any cleanup, remedial, removal, abatement, containment, closure, restoration or monitoring work required by any federal, state or local governmental agency or political subdivision, or reasonably necessary to make full economic use of the Property or any other Property or otherwise expended in connection with such conditions, and including without limitation any attorneys’ fees, costs and Packet Pg. 570 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

expenses incurred in enforcing this Deed of Trust or collecting any sums due hereunder; and
(3) liability to any person or entity to indemnify such person or entity for costs expended in connection with the items referenced in subparagraph (2) hereof. (b) “Environmental Requirements” means all applicable present and future statutes, regulations, rules, ordinances, codes, licenses, permits, orders, approvals, plans, authorizations, concessions, franchises and similar items, of all governmental agencies, departments, commissions, boards, bureaus or instrumentalities of the United States, states and political subdivisions thereof and all applicable judicial and administrative and regulatory decrees, judgments and orders relating to the protection of human health or the environment, including, without limitation:
(1) all requirements, including but not limited to those pertaining to reporting, licensing, permitting, investigation and remediation of emissions, discharges, releases or threatened releases of Hazardous Materials, chemical substances, pollutants, contaminants or hazardous or toxic substances, materials or wastes whether solid, liquid or gaseous in nature, into the air, surface water, groundwater or land, or relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, pollutants, contaminants or hazardous or toxic substances, materials, or wastes, whether solid, liquid or gaseous in nature; and (2) all requirements pertaining to the protection of the health and safety of employees or the public.
(c) “Hazardous Materials” means any substance:
(1) the presence of which requires investigation or remediation under any federal, state or local statute, regulation, rule, ordinance, order, action or policy; or (2) which is or becomes defined as a “hazardous waste” or “hazardous substance” or “pollutant” or “contaminant” under any federal, state or local statute, regulation, rule, or ordinance or amendments thereto including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. section 9601 et seq.) or the Resource Conservation and Recovery Act (42 U.S.C. section 6901 et seq.); or
(3) which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic, or otherwise hazardous and is or becomes regulated by any governmental authority, agency, department, commission, board, agency or instrumentality of the United States, any State of the United States, or any political subdivision thereof; or
(4) the presence of which on the Property causes or threatens to cause a nuisance upon the Property or to adjacent properties or poses or threatens to pose a hazard to the Property or to the health or safety of persons on or about the Property; or (5) which contains volatile organic compounds such as gasoline, diesel fuel or other petroleum hydrocarbons; or
Packet Pg. 571 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

(6) which contains polychlorinated biphenyls (PCBs) or asbestos or asbestos-containing materials or urea formaldehyde foam insulation; or (7) radon gas.

25. Environmental Indemnity. Trustor agrees to indemnify, reimburse, defend, exonerate, pay and hold harmless Beneficiary, its affiliates and their respective successors and assigns who acquire all or any portion of the loan secured by this Deed of Trust or the Property in any manner, including but not limited to, purchase at a foreclosure sale, acceptance of a deed in lieu thereof or otherwise through the exercise of the rights and remedies of Beneficiary under this Deed of Trust and the directors, officers, shareholders, employees, successors, assigns, agents, contractors, subcontractors, experts, licensees, affiliates, lessees, mortgagees, trustees, and invitees of Beneficiary and such other persons or entities, from and against any and all Environmental Damages arising from the presence of Hazardous Materials upon, about or beneath the Property or migrating to or from the Property, or arising in any manner whatsoever out of the violation of any Environmental Requirements pertaining to the Property and the activities thereon, or the breach of any warranty or covenant or the inaccuracy of any representation of Trustor contained in this Deed of Trust unless and to the extent such Environmental Damages exist solely as a result of the gross negligence or willful misconduct of Beneficiary; provided, however, that the obligations under this Section 25 shall apply only to the extent that Environmental Damages are related to actions or events occurring after transfer of title to the Property to Trustor or Trustor obtains a right of access to the Property for purpose of environmental testing or construction-related activities, whichever occurs first. This obligation shall include, but not be limited to, the burden and expense of defending all claims, suits and administrative proceedings (with counsel chosen by Trustor and reasonably approved by the indemnified parties), even if such claims, suits or proceedings are groundless, false or fraudulent, and conducting all negotiations of any description, and paying and discharging, when and as the same become due, any and all judgments, penalties or other sums due against such indemnified persons. Trustor’s obligations hereunder shall not apply with respect to Environmental Damages caused after Beneficiary has purchased the Property at a foreclosure sale unless caused by Trustor, either solely or jointly with others, including Beneficiary.

26. Environmental Remedies. Notwithstanding anything to the contrary in this Deed of Trust, the rights of Beneficiary and the obligations of Trustor created under the foregoing paragraphs 23, 24, and 25 shall be in addition to those other rights and obligations, respectively, created or imposed by statutory, common or case law.

27. Provisional Remedies on Default. Should Trustor fail or refuse to make any payment or do any act which it is obligated hereunder to make or do, at the time and in the manner herein provided, or if any representation of Trustor in this Deed of Trust, or other document referred to herein is incorrect, then Trustee and/or Beneficiary, each in its sole discretion, may, without notice to or demand upon Trustor, and without releasing Trustor from any obligation hereof:
(a) Make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, either Trustee or Beneficiary being authorized to enter upon and take possession of said Property for such purposes; Packet Pg. 572 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

(b) Commence, appear in and/or defend any action or proceedings purporting to affect the security hereof, and/or any additional or other security therefore, the interest, rights, powers and/or duties of Trustee and/or Beneficiary hereunder, whether brought by or against Trustor, Trustee or Beneficiary;
(c) Pay, purchase, contest or compromise any claim, debt, lien, charge or encumbrance which in the judgment of either may affect or appear to affect the security of this Deed of Trust, the interest of Beneficiary or the rights, powers and/or duties of Trustee and/or Beneficiary hereunder;
(d) Enter into and upon and take and hold possession of any or all Property covered hereby and exclude the Trustor and all other persons therefrom; (e) Operate, and manage the said Property and rent and lease the same and collect any and all rents, issues, income and profits therefrom, the same being hereby assigned and transferred to Beneficiary, and from time to time apply same and/or accumulate same for application, in such order and manner as Beneficiary in its sole discretion shall consider advisable, to or upon the following: the necessary and proper costs of upkeep, maintenance, repair, and/or operation of said Property, the repayment of any sums theretofore or thereafter advanced pursuant to the terms of this Deed of Trust, the interest then due or next to become due upon said indebtedness, the taxes and assessments upon said Property then due or next to become due, the unpaid principal of said indebtedness, or any other obligation secured by this Deed of Trust.

The collection and/or receipt of rents, issues, income and/or profits from said Property by Beneficiary after declaration of default and election to cause said Property to be sold under and pursuant to the terms of this Deed of Trust shall not affect or impair such default or declaration of default or election to cause said Property to be sold or any sale proceedings predicated thereon, but such proceedings may be conducted and sale effected notwithstanding the receipt and/or collection of any such rents, issues, income and/or profits. Any such rents, issues, income and/or profits in the possession of said Beneficiary at the time of sale and not theretofore applied as herein provided, shall be applied in the same manner and for the same purposes as the proceeds of the sale.

Neither Trustee nor Beneficiary shall be under any obligation to make any of the payments or do any of the acts above mentioned, but, upon election of either or both so to do, employment of an attorney is authorized and payment of such reasonable attorney’s fees and of all other necessary expenditures is hereby secured.

28. Condemnation. All moneys and awards payable as damages and/or compensation for the taking of title to or possession of, or for damage to, any portion of the Property subject to this Deed of Trust by reason of any condemnation, eminent domain or other similar proceeding shall be paid to Beneficiary, and such moneys and awards are hereby assigned to Beneficiary, and judgment therefore shall be entered in favor of Beneficiary, and when paid, may, at the option of the Beneficiary, be applied, in whole or in part, by Beneficiary upon any indebtedness or obligation secured hereby, whether the same be matured or unmatured, and in such order as Beneficiary may determine, be used in whole or in part to replace or restore the Property to a condition satisfactory to the Beneficiary, be used in whole or in part to fulfill any of the covenants contained herein as the Beneficiary may determine, or be released to the Trustor; and the Trustor hereby covenants and agrees, upon request by the Beneficiary, to make, execute and deliver any Packet Pg. 573 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

and all assignments and other instruments sufficient for the purpose of assigning the aforesaid moneys and awards to the Beneficiary free, clear and discharged of any and all encumbrances of any kind or nature whatsoever.

29. Acceptance of Late Payments. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its rights either to require prompt payment when due of all other sums so secured or to declare default as herein provided for failure so to pay, except as to the payment so received.

30. Waivers and Authorizations. At any time, or from time to time, without liability therefore and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and the note or notes secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby or the effect of this Deed of Trust upon the remainder of said Property, Trustee may reconvey any part of said Property; consent in writing to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. Trustor, for itself and its successors and assigns (including without limitation any subsequent or other junior creditor of any part or all of the Property), waives any right to object to such reconveyance, mapping, easement or agreement with respect to such Property and waives any right to require that the value of such Property be applied upon the debt secured hereby (other than the amount, if any, actually received by Beneficiary in connection with any such transaction).

31. Release, Modification and Reconveyance, Waiver of Marshalling. Without affecting the liability of any other person liable for the payment of any obligation herein mentioned, and without affecting the lien or charge of this Deed of Trust upon any Property not then or theretofore released as security, for the full amount of all unpaid obligations, Beneficiary may from time to time, and without notice release any person so liable, extend the maturity or alter any of the terms of any such obligation, or grant other indulgences, release or reconvey, or cause to be released or reconveyed at any time at Beneficiary’s option any parcel or portion or all of the real Property described herein, take or release any other or additional security for any obligation herein mentioned, and/or make composition or other arrangements with debtors in relation thereto. Trustor waives any right to object to the release or reconveyance of such Property and waives any right to require that the value of any Property so released or reconveyed be applied upon the debt secured hereby (other than the amount, if any, actually received by Beneficiary in connection with any such release). Trustor agrees that if the Beneficiary at any time holds any additional security for any obligations secured hereby, it may enforce the sale thereof or otherwise realize upon the same at its option, either before or concurrently therewith or after a sale is made hereunder.

32. Substitution of Trustee. Beneficiary hereunder may, from time to time, appoint another trustee or trustees to execute the trusts hereby created; and upon the recordation of such appointment in the office of the County Recorder of the County where such Property is situated, the new trustee or trustees shall be vested with all the title, interest, powers, duties, and trusts in the premises hereby vested in the Trustee first above named.

33. Reconveyance By Trustee.

Packet Pg. 574 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

(a) Trustor shall be entitled to partial reconveyances of this Deed of Trust, from time to time, as to each lot upon the sale of such completed townhome lot to a homeowner, for use as a residence, in accordance with applicable deed restrictions or other instruments or documents binding the Property.
(b) Upon written request of Beneficiary stating that all sums secured hereby have been paid and upon surrender to Trustee of this Deed of Trust and the note or notes secured hereby for cancellation and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the Property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof.

The grantee in such reconveyance may be described as “the person or persons legally entitled hereto”.

34. Right of Entry. The Beneficiary is authorized by itself, its agents or workmen, to enter at any time upon any part of said Property and the improvements thereon situated for the purpose of inspecting the same, and for the purpose of performing any of the acts it is authorized to perform under the terms of this Deed of Trust. Beneficiary shall reimburse Trustor for the cost of repair of any physical injury to the Property caused by Beneficiary’s gross negligence or willful misconduct during the entry, inspection and acting on the Property pursuant to this paragraph.

35. Default, Acceleration and Private Sale.
(a) Notice of Default. Should breach or default be made by Trustor in payment of any indebtedness secured hereby or in performance of any obligations, covenant, promise or agreement hereunder which breach or default is not cured within any applicable cure periods, or any representation of Trustor in this Deed of Trust, or other document referred to herein is incorrect, Beneficiary may declare all sums secured hereby immediately due and payable, and in such case, shall execute and deliver to Trustee a written declaration of default and demand for sale and written notice of default and election to cause to be sold said Property, and shall surrender to Trustee this Deed of Trust, the note or notes secured hereby and all documents evidencing any expenditures hereunder. Thereafter such notice of default and election to cause said Property to be sold to satisfy the obligations hereof shall be duly filed for record. (b) Right to Rescind. Beneficiary, from time to time before Trustee’s sale, may rescind any such notice of breach or default and of election to cause to be sold said Property by executing and delivering to Trustee a written notice of such rescission, which notice, when recorded, shall also constitute a cancellation of any prior declaration of default and demand for sale. The exercise by Beneficiary of such right of rescission shall not constitute a waiver of any breach or default then existing or subsequently occurring, or impair the right of Beneficiary to execute and deliver to Trustee, as above provided, other declarations of default and demand for sale, and notices of breach or default, and of election to cause to be sold said Property to satisfy the obligations hereof, nor otherwise affect any provision, covenant or condition of said Note or Notes and/or of this Deed of Trust or any of the rights, obligations, or remedies of the parties thereunder. (c) Private Sale. At least three months having elapsed after recordation of notice of default, without demand on Trustor, said Trustee, having first given notice of sale as then required by law, shall sell said Property at the time and place of sale fixed by it in the notice of sale at public auction to the highest bidder for cash, payable at time of Packet Pg. 575 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

sale. The whole of the trust estate shall be sold in a single lot or parcel and as an entirety unless the Beneficiary shall, in writing, direct the Trustee to sell said trust estate in separate parcels and shall direct the Trustee as to the parcels into which the trust estate shall be divided for purposes of sale and the order in which said parcels shall be offered for sale. Trustor, for itself and its successors and assigns (including without limitation any subsequent or other junior creditor of any part or all of the Property), waives any right to marshalling of assets or any right to require any part of the Property to be sold prior to any other part of the Property or any right to require the Property to be sold in parcels rather than as a whole. Trustee may postpone sale of all or any portion of said Property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Without further notice Trustee may make such sale at the time to which same shall be so postponed. Trustee shall deliver to such purchaser its Deed conveying the Property so sold, but without any covenant or warranty, express or implied, and the recitals in such deed or deeds of any matters or facts affecting the regularity or validity of said sale shall be conclusive (except as against the parties hereto) proof of the truthfulness thereof; also such deed or deeds shall be conclusive (except as against the parties hereto) against all persons as to all matters or facts therein recited.

Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale.
(d) Application of Sale Proceeds. Trustee shall apply the proceeds of any such sale to payment of:
(i) All costs, fees, charges and expenses of Trustee and of these trusts, reasonable fees of any attorneys employed by Trustee and/or Beneficiary pursuant to the provisions hereof, Trustee’s fees in connection with sale, and all expenses of sale, including cost of procuring guarantee or evidence of title in connection with the sale proceedings and other costs associated with the Trustee’s Deed; (ii) All other sums then secured hereby, including indebtedness described herein, all sums advanced or expended under the terms hereof and not then repaid, the interest on each of the foregoing items, all in such manner and order of priority or preference as the Beneficiary may in its sole and absolute discretion determine;
(iii) The remainder, if any, to the person or persons legally entitled thereto, upon proof satisfactory to the Trustee of such right.

36. Successors and Assigns. This Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term “Beneficiary” shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein.

37. Severability. If any provision hereof should be held unenforceable or void, then such provision shall be deemed separable from the remaining provisions and shall in no way affect the validity of this Deed of Trust.

38. Acceptance By Trustee. Trustee accepts these Trusts when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law.

Packet Pg. 576 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

39. No Notice By Trustee. Trustee shall be under no obligation to notify any party hereto of any action or proceeding of any kind in which Trustor, Beneficiary and/or Trustee shall be a party, unless brought by Trustee, or of any pending sale under any other Deed of Trust;

40. Number and Gender. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural.

41. Waiver of Statute of Limitations. The right to plead any and all statutes of limitations as a defense to any demand secured by this Deed of Trust is hereby waived to the full extent permissible by law.

42. Trust Irrevocable. The trust created hereby is irrevocable by the Trustor.

43. Interpretation. The term “and/or” as used herein means one or the other or both, or any one or all, of the things or persons in connection with which the words are used.

Paragraph headings are for reference only and shall not be considered in the interpretation of this Deed of Trust.

44. Maximum Interest Rate. Notwithstanding any provision herein or in said note, the total liability for payments in the nature of interest shall not exceed the limits now imposed by the usury laws of the State of California.

45. Request for Notice of Default. The undersigned Trustor requests that a copy of any notice of default and of any notice of sale hereunder be mailed to said Trustor at the following address:

FaithWorks Community Coalition, Inc
2825 West Street, #1
Redding, CA 96001

46. Materiality. Each and every provision, covenant, term and condition, representation and warranty herein contained is agreed to be a material provision hereof, and any breach thereof shall constitute a sufficient ground for acceleration of the due date of the indebtedness secured hereby and a sufficient ground for foreclosure in the event of failure of Trustor either to cure said breach within the time periods, if any, herein provided or to pay in full the indebtedness hereby secured.

Trustor

FAITHWORKS COMMUNITY
COALITION, INC., a California nonprofit
corporation
By: _______________________________
Name: Crystal Spencer
Title: Executive Director
*** Please have Notary Public attach a separate Acknowledgement Form with signature and seal ***
Packet Pg. 577 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT A

LEGAL DESCRIPTION

ALL THAT CERTAIN REAL PROPERTY SITUATED IN CITY OF REDDING, COUNTY

OF SHASTA, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LOT 4, 5, AND 6 OF BLOCK 4, AS SHOWN ON THE MAP OF PARK SUBDIVISION RECORDED IN THE OFFICE OF THE COUNTY RECORDER, MAY 25, 1936, IN BOOK 5 OF MAPS AT PAGE 12, SHASTA COUNTY RECORDS.

Assessor’s Parcel No. 104-350-018-000, 104-350-018-019-000 AND 104-350-018-020-000 Packet Pg. 578 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT 8

CITY LAND LOAN PROMISSORY NOTE

SECURED BY DEED OF TRUST
($153,000.00) ________ ____, 2025
FOR VALUE RECEIVED, the undersigned, FaithWorks Community Coalition, Inc., a California nonprofit corporation (“Maker”) promises to pay to the order of the CITY OF REDDING, a municipal corporation (“Lender”), the principal sum of One Hundred Fifty-Three Thousand and No/100 Dollars ($153,000.00), (the “Loan”), together with interest thereon in the manner provided for below.

Maker and Lender have entered into that certain Disposition and Financing Agreement dated as of ________, 2025 (the “DFA”). Pursuant to the DFA and the Purchase Agreement and Escrow Instructions, and the exhibits thereto, Maker is purchasing certain real property located at 815 Parkview Avenue, 825 Parkview Avenue and 2520 Leland Avenue, Redding, Shasta County, California, Assessor’s Parcel Numbers 104-350-018, 104-350-019-000, 104-350-020-000 (the “Property”) at fair market value from Lender. The purchase price of such Property is the sum of One Hundred Fifty-Three Thousand and No/100 Dollars ($153,000.00).

1. The principal balance of this Note shall bear simple interest from the date of this Note until repaid in full at One percent (1%) per annum.

2. The Term of this Note shall commence with the date of this Note and shall expire fiftyfive (55) years from the date of recordation of a Notice of Completion by the City at which time all outstanding principal and accrued interest will be due.

3. This Note is secured by that certain “City Land Loan Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing” of even date herewith (the “Deed of Trust”). The Deed of Trust creates a lien upon, among other things, Maker’s interest Property constituting the project.

4. In the event of any default of this Note, the unpaid balance of this Note shall bear interest at the rate of ten percent (10%) (the “Default Rate”) from the date of default.

5. Maker shall have the right to prepay this Note, in whole or in part, at any time without penalty. All payments received on account of this Note shall be first applied to accrued interest, if any, and the remainder shall be applied to the reduction of principal.

6. Upon any default, the holder of this Note may apply payments received on any amounts due hereunder or under the terms of any instrument now or hereafter evidencing or securing the indebtedness as said holder may determine and, if the holder of this note so elects, notice of election being expressly waived, the principal remaining unpaid with accrued interest shall at once become due and payable.

7. The Maker waives presentment, protest and demand, notice of protest, demand and dishonor and nonpayment of this Note and agrees to pay all costs of collection when incurred, Packet Pg. 579 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

including reasonable attorneys’ fees, and to perform and comply with each of the covenants, conditions, provisions and agreements of any of the undersigned contained in every instrument now evidencing or securing said indebtedness. No extension of the time for the payment of this Note or any installment hereof made by agreement with any person now or hereafter liable for the payment of this Note shall operate to release, discharge, modify, change or affect the original liability under this Note, either in whole or in part, of any of the undersigned not a party to such agreement.

8. Notwithstanding anything to the contrary herein, except as expressly permitted under the DFA, this Note shall be due in full upon the sale or encumbrance of the Property encumbered by the Deed of Trust, as provided in the Deed of Trust, subject to the provisions of Section 16 of the Deed of Trust, which is incorporated herein by reference. Section 16 of the Deed of Trust provides as follows:
“16. Sale.
(a) Prohibition of Transfer. Except as provided in (b)
below, Trustor shall not, without the prior written consent of Beneficiary, which consent may be given or withheld by Beneficiary in its sole discretion, sell, convey, or transfer the herein described Property, or any part of it, or any interest in it, by the operation of law or otherwise. If Trustor is a corporation, limited liability company, partnership or joint venture, any change in the ownership, control or management of, or interest (other than interests of limited partners) in, Trustor shall be deemed to be a transfer of the Property.

Upon the occurrence of any such transaction with
Beneficiary’s consent, or without Beneficiary’s consent if Beneficiary elects not to exercise its rights and remedies in the event of default (including, but not limited to, acceleration of the indebtedness secured hereby), Beneficiary shall not be obligated to release Trustor from any liability hereunder or under the Note or under any of the other documents evidencing or securing the note secured hereby. Consent to any such transaction shall not be deemed to be consent, or a waiver of the requirement of consent, to any other transaction.
(b) Sale in Ordinary Course. Notwithstanding
subparagraph 16(a) above, however, it is agreed that Trustor may (subject to any other provision hereof and to any provision of the Note secured hereby or of any assignment of rents or assignment of leases or any other instrument evidencing security for the loan secured hereby) sell the Property in the ordinary course of business to purchasers, and that such sale of the Property shall not be deemed a sale, conveyance, alienation or encumbrance so as to violate this covenant. For the purposes of this section, a sale of the Property in the ordinary course of business shall consist only of sales of a completed unit in accordance with the DFA and any applicable deed restrictions or other instruments or documents binding the Property.”
Packet Pg. 580 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

9. At the election of Lender, any material default by Maker of the terms of the DFA, the Agreement Containing Covenants (Exhibit 2 to the DFA), or the City Declaration of Rent Restrictions (Exhibit 4 to the DFA) shall be a default of this Note, and upon any such default by the Maker, this Note shall become due in full.

10. Nothing in this Note shall create any relationship between Maker and Lender, other than a debtor-creditor relationship. Maker and Lender shall not be partners, joint venturers, equity venturers, or any other form of partnership or venture.

11. The provisions of this Promissory Note shall inure to the benefit of and be binding on the successors and assigns of the parties.

MAKER:

FaithWorks Community Coalition, Inc
a California nonprofit corporation
By: _______________________________
Name: Crystal Spencer
Title: Executive Director
Packet Pg. 581 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT 9
RECORDING REQUESTED BY:

City of Redding

CITY BUSINESS - NO FEE
Section 6103 of the Government Code
of the State of California
AND WHEN RECORDED MAIL TO:

City of Redding – Housing Division
P.O. Box 496071
777 Cypress Avenue
Redding, CA 96049-6071

CITY OF REDDING DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this _______ day of _______, 2025, by FAITHWORKS COMMUNITY COALITION INC., a California nonprofit public benefit corporation, as to equitable title, herein called “Trustor,” and/or “Borrower” whose address is 2825 West Street #1, Redding, CA 96001; FIDELITY NATIONAL TITLE COMPANY, herein called “Trustee,” whose address is 2001 Market St., Suite 100, REDDING, CA 96001; and the CITY OF REDDING, a municipal corporation and general law city, whose address is P.O. Box 496071, 777 Cypress Avenue, Redding, California 96049-6071, herein called “Beneficiary” and/or the “Lender”.

WITNESSETH: That Trustor Irrevocably, Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Redding (“City”), County of Shasta, State of California, described as:

EXHIBIT 1 - Legal Description

ASSESSOR’S PARCEL NUMBERS: 104-350-019-000
104-350-018-000
104-350-020-000
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or in the future thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, and (c) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues, and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement.

BORROWER HEREBY expressly acknowledges and agrees that the subject loan, this Deed of Trust, and the property which serves as security for the Note and Deed of Trust, involves a mixed-use, multi-family residential transaction, one that the Borrower is expressly entering into for the provision Packet Pg. 582 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) of affordable housing and not for profit, and not in any way related to Borrower’s home or residence. As such, Borrower further acknowledges and agrees that Lender likewise is making this loan on the aforesaid basis, and thus intends to enforce any and all of its rights accordingly.

FOR THE PURPOSE OF SECURING:

1. Payment of the sum of One Million Six Hundred Thousand and No/100 Dollars ($1,600,000) with interest thereon according to the terms of a certain Note of even date herewith, designated as the “City Promissory Note” made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof.

2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes reciting that they are secured hereby, or (b) as may be added to the indebtedness secured hereby in accordance with the provisions of this Deed of Trust.

3. Performance of each and every obligation, covenant, promise, or agreement of Trustor contained herein.

4. Payment, with interest thereon, of any other present or future indebtedness or obligation of the Trustor (or of any successor in interest of the Trustor to said property) to the Beneficiary reciting that they are secured hereby, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter.

5. Performance of each agreement of Trustor contained in any Development Agreement and/or Disposition and Financing Agreement (including without limitation the Exhibits thereto) entered into between Trustor and Beneficiary for the development, construction of improvements, adoption of rent restrictions or other affordability covenants, or operation of certain activities on the above-described property.

TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:

1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged, or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer, or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings, and equipment located thereon.

If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements or construction of affordable housing on said property, Trustor further agrees, anything in this Deed of Trust to the contrary Packet Pg. 583 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) notwithstanding: (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during construction; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to its last known address, or by personal service of the same; (d) that work shall not cease on the construction of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims for labor and materials furnished in connection with the said construction and/or rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the said property; and (f) not to permit any stop notice claims to be presented to Beneficiary. If the said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction, which shall pertain to the said property only and shall keep separate, full, and complete records of all work and materials furnished to the said property.

Trustee, upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein and to act thereon hereunder.

2. To provide and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall contain an endorsement that such insurance shall not be canceled or modified without thirty (30) days advance written notice to Beneficiary, shall be for a term and in form, content, amount, and with such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of Trustor hereunder.

At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor, by executing this Deed of Trust, specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy theretofore delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) upon prior notice to Trustor, to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Trustor, shall either be used for the cost of rebuilding or restoring the building or improvements on said premises or applied in reduction of the indebtedness secured hereby whether due or not. If Trustor elects to apply such proceeds to a reduction of the indebtedness secured hereby such application shall be in such order as Beneficiary may determine. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value Packet Pg. 584 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder.

3. To pay: (a) all general and special City and County taxes affecting such property; (b) when due, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment; (c) when due, all encumbrances, charges and liens, with interest, on said property, or any part thereof, which are or appears to be prior or superior hereto; (d) if the security of this Deed of Trust is a leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold; (e) all costs, fees and expenses of this trust; (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made; (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable.

If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest.

4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, then Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes; (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee; (c) pay, purchase, contest, or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto; and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so, expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. This provision is not intended to curtail the right of Trustor to contest any such payment in good faith.

5. To perform each agreement of Trustor contained in any Development Funding Agreement (including without limitation the Exhibits thereto) entered into between Trustor and Beneficiary for the development, construction of improvements, adoption of rent restrictions or other affordability covenants, or operation of certain activities on the above-described property.

6. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property is directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust.

Packet Pg. 585 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

7. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate that the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby.

8. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas, or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any part thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily except as allowed by the Agreement, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing.

9. That any award, settlement, or damages for injury or damages to such property, or in connection with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance.

10. That, by accepting payment of any sum secured hereby after its due date, or by making any payment, or performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay.

11. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property; (b) consent to the making of any map or plat thereof; (c) join in granting any easement thereon; (d) join in any agreement subordinating the lien or charge hereof.

12. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof.

13. That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive evidence of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as a re-assignment of the rents, issues, royalties and profits hereinafter assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them).

14. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Deed of Trust for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Deed of Trust, or cause Beneficiary to be (a) "mortgagee in possession" Packet Pg. 586 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Deed of Trust, or for any negligence in the management, upkeep, repair, or control of such property. This is an absolute assignment, not an assignment for security only, and Beneficiary's right to rents, issues, and profits is not contingent upon, and may be exercised without possession of, the property affected by this Deed of Trust.

Beneficiary confers upon Trustor a license (“License”) to collect and retain the rents, issues, and profits of the property affected by this Deed of Trust as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues, and profits without notice and without taking possession of the property affected by this Deed of Trust. This right to collect rents, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon City or Trustee the duty to produce rents, issues, or profits or maintain all or any part of the property affected by this Deed of Trust. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties, and profits and shall be authorized, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make, cancel, enforce, and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties, and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties, and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties, or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties, and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default nor affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties, and profits, less all costs of operation, maintenance, collection, and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor a subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option.

15. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term “Lease” as used herein shall mean the lease creating the “leasehold estate”; (b) Trustor shall not amend, change, or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request, or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions, and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or Packet Pg. 587 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver of any other violation. If the security for this Deed of Trust is a leasehold estate, the term "said property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary.

16. Subject to any applicable notice and cure rights, any default by Trustor in payment of any indebtedness secured hereby or performance of any covenant or condition set forth in a Development Agreement between Trustor and Beneficiary shall constitute a default under this Deed of Trust, and upon default by Trustor under the terms of any encumbrance, charge, or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record.

Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive evidence of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale.) After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first, of all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto.

17. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby.

18. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers, and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee, and Beneficiary hereunder, and the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees, and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law.

Packet Pg. 588 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

19. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, transferees, successors, and assigns. The term Beneficiary” shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural.

20. Trustor agrees to file with Beneficiary annually during October of each calendar year a written operational report which concerns the fiscal year ending on the immediately preceding June 30th and conforms to the standards set forth by the Participating Jurisdiction and 24 CFR Part 92 (with respect to the real property first described in this Deed of Trust) necessary or convenient for Beneficiary to make the annual reports.

21. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California (or successor statutes), Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished.

Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy.

22. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.

23. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, if said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if and notwithstanding that Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable.

24. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder.

Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address herein above set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
Packet Pg. 589 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth.

Dated: _______________, 2025
Signature of Trustor(s):

FAITHWORKS COMMUNITY COALITION, a California
nonprofit public benefit corporation

By:
__________________________________________
CRYSTAL SPENCER, Executive Director

This document must be notarized.

Packet Pg. 590 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT 10

CITY PROMISSORY NOTE SECURED BY DEED OF TRUST
DO NOT DESTROY THIS NOTE: When paid, this note, with Deed of Trust securing same, must be surrendered to Trustee for cancellation before reconveyance will be made.

Amount: $1,600,000
Loan #: ________ , 2025

FOR VALUE RECEIVED, FAITHWORKS COMMUNITY COALITION, a California Nonprofit Public Benefit Corporation, ("Borrower"), promises to pay to the order of the City of Redding ("Holder"), the principal sum of One Million Six Hundred Thousand ($1,600,000) pursuant to Section 4 below.

1. Borrower’s Obligation. This promissory note (“Note”) evidences Borrower’s obligation to pay Holder the principal amount of One Million Six Hundred Thousand ($1,600,000) for the funds loaned to Borrower by Holder to assist with the development of certain real property (“Project”) pursuant to a Disposition and Financing Agreement between Borrower and Holder dated ________, 2025 (“DFA” or “Agreement”).

2. Interest. The principal balance of this Note shall bear simple interest from the date of disbursement until repaid in full at one percent (1%) per annum; provided, however, if an event of default occurs, interest on the principal balance shall begin to accrue, as of the date of the disbursement and continuing until such time as the Loan funds are repaid in full, at the default rate of the lesser of: ten percent (10%), compounded annually; or the highest rate permitted by law.

3. Term and Repayment Requirements. The term of this Note (“Term”) shall commence with the date of this Note and shall expire fifty-five (55) years from said date, at which time the remaining balance of principal and interest shall be due and payable.

4. Terms of Payment.
a. All principal and interest payments are payable in lawful money of the United States. b. All payments on this note shall be paid to the City of Redding at 777 Cypress Avenue, Redding, California, or to such other place as holder of this note may from time to time designate. c. Payments shall be based upon the availability of Residual Receipts generated by the Project as further identified within the Promissory Note and Section 1.47 and 1.48 of the DFA. Payment in full of the remaining balance of principal and interest, if any, shall be due and payable at the conclusion of the City Loan term.

Annual payments shall be contingent upon the availability of residual receipt funds. Within ninety (90) days after the end of each fiscal year during the term of the Note, Borrower shall provide Holder with a Packet Pg. 591 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) written year-end cash flow analysis and audited financial statement for the Project prepared by a certified public accountant. Any Residual Receipts realized from the operation of the Project, as shown by the annual audit, shall provide City with a written year-end cash flow analysis and audited financial statement for the Project prepared by a certified public accountant. Any such Residual Receipts received by the City shall be credited as a payment on the City Loan and shall be applied first to reducing the accrued interest, if any, on the loan, and subsequently, to reducing the principal.

Residual receipts for purpose of this Note shall have the meaning scribed to it in the DFA. d. All payments on this Note shall be without expense to Holder, and Borrower agrees to pay all costs and expenses, including reconveyance fees and reasonable attorney’s fees of Holder, incurred in connection with the payment of this Note and the release of any security hereof. e. Notwithstanding any other provision of this Note, or any instrument securing the obligations of Borrower under this Note, if, for any reason whatsoever, the payment of all sums by Borrower pursuant to the terms of this Note would result in the payment of interest which would exceed the amount that Holder may legally charge under the laws of the State of California, then the amount by which payments exceed the lawful interest rate shall automatically be deducted from the principal balance owing on this Note, so that in no event shall Borrower be obligated under the terms of this Note to pay any interest which would exceed the lawful rate.
f. The whole of this Note shall be nonrecourse to Borrower.

5. Default.
a. Any of the following shall constitute an event of default under this Note. 1) Any failure to pay, in full, any payment required under this Note when due. 2) Any failure in the performance by Borrower of any term, condition, provision, or covenant set forth in this Note.
3) The occurrence of any event of default under the DFA, the Deed of Trust, or the Declaration of Rent Restrictions, (as defined in the DFA). b. Upon the occurrence of such an event of default and the expiration of the applicable cure period, the entire unpaid principal balance, together with all interest thereon, and together with all sums then payable under this Note and the Deed of Trust shall at the option of Holder become immediately due and payable upon written notice by Holder to Borrower without further demand. c. The failure to exercise the remedy set forth in subsection 5b above or any other remedy provided by law upon the occurrence of one or more of the foregoing events of default shall not constitute a wavier of the right to exercise any remedy at any subsequent time in respect to the same or any other default. The acceptance by Holder hereof of any payment which is less that the total of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise any of the foregoing remedies or options at that time or at any subsequent time, or nullify any prior exercise of any such remedy or option, without the express consent of Holder, except as and to the extent otherwise provided by law.

6. No Assumption. This Note shall not be assumable by the successors and assigns of Borrower without the prior written consent of Holder.

Packet Pg. 592 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

7. Security. This Note is secured by a City of Redding Deed of Trust and with Assignment of Rents (“Deed of Trust”), of even date herewith, wherein Borrower is the Trustor and Holder is the Beneficiary, covering the Property.

8. Waivers.
a. Borrower hereby waives diligence, presentment, protest and demand, and notice of protest, notice of demand, notice of dishonor and notice of nonpayment of this Note. Borrower expressly agrees that this Note or any payment hereunder may be extended from time to time, and that Holder may accept further security or release any security for this Note, all without in any way affecting the liability of Borrower.
b. No extension of time for payment of this Note or any installment hereof made by agreement by Holder with any person now or hereafter liable for payment of this note shall operate to release, discharge, modify, change or affect the original liability of Borrower under this Note, either in whole or in part.

c. The obligations of Borrower under this Note shall be absolute and Borrower waives any and all rights to offset, deduct, or withhold any payments or charges due under this Note for any reason whatsoever.

9. Miscellaneous Provisions.
a. Borrower promises to pay all costs and expenses, including reasonable attorney’s fees, incurred by Holder in the enforcement of the provisions of this Note, regardless of whether suit is filed to seek enforcement.
b. This Note may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought. c. This Note shall be governed by and construed in accordance with the laws of the State of California.

Borrower:

FAITHWORKS COMMUNITY COALITION INC., a
California Nonprofit Public Benefit Corporation
By: ______________________________________
Crystal Spencer
Executive Director

Packet Pg. 593 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 11

Packet Pg. 594 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 12

SCOPE OF DEVELOPMENT
The Project Site is specifically delineated on the Legal Description (Exhibit A) pursuant to a Disposition and Financing Agreement (DFA). In accordance with this DFA and related documents, Builder agrees that the Project Site shall be acquired from the City and a mixed-use development constructed in accordance with the provisions of this DFA, and related documents approved by the City of Redding (the “City”) pursuant hereto.

A. GENERAL PROJECT DESCRIPTION
The Builder shall acquire the Project Site pursuant to the DFA and the associated Purchase Agreement and Escrow Instructions. Furthermore, the Builder shall construct or cause to be constructed, on the Project Site, a mixed-use development consisting of commercial space and twelve residential units (“the Project”), all pursuant to the DFA, this Exhibit, and all conditions set forth in any City of Redding Development Services Department (Development Services) permits issued for the Project. The commercial portion of the project shall consist of about 15% of the Project’s floor area. The Project shall include, but is not limited to, the following: 1) underground utility improvements (sewer, electrical, water lines, natural gas, and communication; 2) landscaping (common and unit specific areas), on-site walkways, driveway apron from alley, and fencing; 3) offsite improvements as conditioned by Development Services; and 4) residential units will be 100% complete and move-in ready which includes, heating and air-conditioning systems, plumbing and electrical fixtures, range/oven, cabinetry, flooring and window coverings. The project will be completed to the satisfaction of Development Services and the City’s Housing Departments designated Project Coordinator. The Builder shall commence and complete the Project by the respective times established therefore in the Schedule of Performance (Exhibit 13 to the DFA).

B. DEVELOPMENT STANDARDS
The Project shall conform to all applicable state laws and regulations and to local zoning, applicable provisions of the Municipal Code of the City of Redding (the Municipal Code) and all applicable City development standards.

C. PROCUREMENT STANDARDS
The Builder shall coordinate the solicitation of bids with the General Contractor (GC) based upon the Final Plans. Builder and GC shall obtain a minimum of three bids per subcontract and, to the greatest extent possible, utilize local suppliers and subcontractors from within Shasta County. The GC will comply with the applicable procurement requirements in 24 CFR Part 200. The Project Coordinator will complete a cost analysis and ensure that the bids are cost reasonable and conform to the proposed budget. The final construction bid from the GC must have all non-construction categories, including, but not limited to, general conditions; profit and overhead; and permits, clearly identified as separate line items.

Packet Pg. 595 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) Local, State and Federal Laws. The Builder shall carry out the construction of the Project in conformity with all applicable laws, including all applicable federal and state labor standards Builder must comply with the Prevailing Wage Law (Labor Code section 1720 et seq.) including, but not limited to the payment of prevailing wages, if required by law in connection with the activities authorized by this Agreement.

Packet Pg. 596 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT “A”

LEGAL DESCRIPTION
_____________________________________________________________

ALL THAT CERTAIN REAL PROPERTY SITUATED IN CITY OF REDDING, COUNTY

OF SHASTA, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LOT 4, 5, AND 6 OF BLOCK 4, AS SHOWN ON THE MAP OF PARK SUBDIVISION RECORDED IN THE OFFICE OF THE COUNTY RECORDER, MAY 25, 1936, IN BOOK 5 OF MAPS AT PAGE 12, SHASTA COUNTY RECORDS.

Assessor’s Parcel No. 104-350-018-000, 104-350-018-019-000 AND 104-350-018-020-000 Packet Pg. 597 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 13

SCHEDULE OF PERFORMANCE
Builder executes DFA 14 days before City Council Meeting City approves DFA 7 days after Builder executes DFA
City executes DFA and related documents 10 days after City approves DFA Builder executes documents noted in Section 5 10 days of the City's execution of DFA Parties enter into a Purchase Agreement and Purchase
Agreement and DFA are delivered to Escrow Agent
10 days following execution of DFA
City provides reports relating to Property to Builder 10 days of the City's execution of DFA City opens Escrow 5 days of execution of Purchase Agreement City or Escrow Agent provides preliminary title report 15 days of execution of Purchase Agreement Builder submits Preliminary Plans and Project Budget to the City as applicable (6.3 and 8.1)
15 days of execution of Purchase Agreement
City approves or rejects the Preliminary Plans and Project Budget
14 days following Preliminary Plan and Project Budget submittal Builder submits notice to City of Builder's election to proceed with purchase of Property
14 days of following receipt of City approval of Preliminary Plans and Budget
Builder submits certificates of insurance (4.3.2) Prior to the Close of Escrow Builder submits evidence of Other Financing (3.5) Prior to the Close of Escrow Builder submits Deposit into Escrow 5 days prior to the Close of Escrow Close of escrow. Parties record Agreement Containing
Covenants, Memorandum of DFA, Declaration of Rent
Restrictions, and City Deed of Trust
“Builder formally acquires property”, 14 days after City verifies compliance with items required in DFA and Purchase
Agreement, but no later than June 30, 2025, unless otherwise approved.

Purchaser shall cause to be delivered to City an ALTA
lender’s policy in the amount of the City Loan.

At Close of Escrow
Builder submits Planning Application to City 5 days following Close of Escrow Board of Administrative Review approves Use/Site
Development Permit

Builder submits Final Plans and Final Project Budget to City (6.1 and 8.1)
45 days following Planning Division Approval
City approves or rejects Final Plans (6.5) 14 days following submission Builder submits Building Permit applications 5 days following City approval of Final Plans Builder obtains Building Permits (7.1.4) 60 days following Building Permit Plan submittal Builder requests Notice to Proceed for construction of
improvements from City (7.1.5)
5 days following approval of Building Permits
City notifies Builder to proceed with construction of
improvements
5 days following City receipt of request for Notice to Proceed Builder commences improvements Prior, on or about March 2026 City records a Notice of Completion 2 days following substantial completion of the improvements and written request by the Builder
Builder completes improvements and receives Certificate of Occupancy
24 months following the execution of DFA
City issues a Certificate of Completion (8.19) 5 days following expiration of Notice of Completion and written request by the Builder
Project Lease-up 90 days following issuance of Certificate of Occupancy Packet Pg. 598 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 14

RESERVED
Packet Pg. 599 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 15

NOTICE OF COMPLETION
RECORDING REQUESTED BY:

City of Redding
WHEN RECORDED, MAIL TO:

City of Redding
777 Cypress Avenue
Redding, CA 96001
Loan No.:

THIS SPACE FOR RECORDER'S USE ONLY

NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093 must be filed within 10 days after completion.

NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is the owner or authorized agent of the owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the owner is: FaithWorks Community Coalition, Inc

3. The full address of the owner is: 2825 West Street, #1, Redding, CA 96001

4. The nature of the interest or estate of the undersigned is: In Fee

5. The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: None

6. Work or improvement on the property hereinafter described was construction and was completed on ___________ 2026.

7. Said work or improvement was undertaken on said property pursuant to a contract dated , , 2025 with General Contractor .

8. The street address of the property on which said work or improvement was completed is 815, 825 Parkview Avenue and 2520 Leland Avenue, located in the City of Redding, County of Shasta, State of California. AP# 104-350-018-000, 104-350-018-019-000 AND 104-350-018-020-000

I, the undersigned, state that I am the declarant of the foregoing Notice of Completion; that I have read said Notice of Completion and, to the best of my knowledge, I declare under penalty of perjury that the foregoing is true and correct.

Dated: __________________________________, Redding, California _____________________________________
Crystal Spencer, Executive Director
FaithWorks Community Coalition, Inc
Packet Pg. 600 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.) EXHIBIT 16

CERTIFICATE OF COMPLETION
RECORDING REQUESTED BY:

CITY OF REDDING

CITY BUSINESS - NO FEE
Section 6103 of the Government Code
of the State of California
WHEN RECORDED RETURN TO:

City of Redding
777 Cypress Avenue
P.O. Box 496071
Redding, CA 96049-6071
SPACE ABOVE FOR RECORDER’S USE

CERTIFICATE OF COMPLETION
THIS CERTIFICATE OF COMPLETION (the "Certificate") is made by the CITY OF REDDING, (the "CITY"), in favor of FAITHWORKS COMMUNITY COALITION, INC. (the "OWNER"), as of the date set forth below.

RECITALS
A. The CITY and the OWNER have entered into that certain Disposition and Financing Agreement (DFA) dated [Date of Agreement], concerning the development of certain real property situated in Redding, California, including Assessor’s Parcel Number 104-350-018,104-350-019-000 AND 104-350-020-000 as more fully described in Exhibit "A", attached hereto and made a part hereof (the Property).

B. The DFA sets forth the obligations of FaithWorks Community Coalition, Inc., referred to as Builder, under the DFA.

C. The City has conclusively determined that the OWNER has satisfactorily completed the obligations of the OWNER relative to development of the Property required by the DFA and now desires to furnish OWNER or its successors with a Certificate of Completion. This Certificate is in such form as to permit it to be recorded in the Recorder's Office of Shasta County and is conclusive determination of satisfactory completion of all of the obligations of the OWNER required by the DFA regarding development of the property.

NOW, THEREFORE, the CITY hereby certifies as follows:

1. The obligations of the OWNER regarding development of the Site as stated in Section 8.19 of the DFA have been fully and satisfactorily completed in conformance with the DFA except as to those breaches of contract or defects in construction that could not have reasonably been discovered by City at the time of issuance of the Certificate of Completion.

2. Nothing contained in this instrument shall modify in any way any other provisions of the DFA.

IN WITNESS WHEREOF, the CITY has executed this Certificate this day of , 2025.

CITY OF REDDING
____________________________________
BARRY TIPPIN, City Manager
Packet Pg. 601 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT A to CERTIFICATE OF COMPLETION

LEGAL DESCRIPTION
_____________________________________________________________

ALL THAT CERTAIN REAL PROPERTY SITUATED IN CITY OF REDDING, COUNTY

OF SHASTA, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

LOT 4, 5, AND 6 OF BLOCK 4, AS SHOWN ON THE MAP OF PARK SUBDIVISION RECORDED IN THE OFFICE OF THE COUNTY RECORDER, MAY 25, 1936, IN BOOK 5 OF MAPS AT PAGE 12, SHASTA COUNTY RECORDS.

Assessor’s Parcel No. 104-350-018-000, 104-350--019-000 AND 104-350--020-000

Packet Pg. 602 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT 17

CHANGE ORDER
CHANGE ORDER NO. _____
Client Name: FaithWorks Community Coalition, Inc.

Project Address: 815, 825 Parkview Avenue and 2520 Leland Avenue You are hereby authorized to make the following changes from the Plans or Specifications or Contract, at the following costs or credit to the Owner:

All work described below shall be performed in accordance with contract requirements unless otherwise stated.

Change Added Cost
to Owner
Credit to
Owner

SUBTOTAL:

TOTAL:

Signed: Date:

Crystal Spencer, Executive Director
FaithWorks Community Coalition, Inc.

Packet Pg. 603 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

EXHIBIT 18

ESTOPPEL CERTIFICATE
This Estoppel Certificate (“Certificate”) dated as of ___________, 2026 (“Date Hereof”) is executed by the City of Redding (“City”) in favor of FaithWorks Community Coalition, Inc. (“Owner”) loan with _____________________ (“Lender”).

NOW THEREFORE, the City certifies to Lender:

1. As of the date of this Certificate, to the best of the City’s knowledge, Owner has performed all obligations required of City under the Disposition and Financing Agreement (DFA); no offsets, claims or breach of the DFA exist as of the Date Hereof and no events have occurred that are known to the Declarant which would constitute an uncured breach of the DFA.

2. From the Date of this Certificate, the City agrees to notify Lender in the event of discovery of facts that would make this Certificate inaccurate.

DATED:__________________________________

CITY OF REDDING
By: ____________________________________
Barry Tippin, City Manager
Packet Pg. 604 Attachment: Faithworks IV DDA Parkview Infill CA2 DRAFT (9.2(d)--Disposition & Financing Agmt with Faithworks Community Coalition, Inc.)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Accept report; and
(2) Provide direction to staff regarding the development and implementation of an ordinance allowing an Entertainment Zone in the City of Redding pursuant to Senate Bill 969.

Fiscal Impact
Fiscal impacts will vary depending on the scope of implementation, including signage, public education, container distribution logistics, and enforcement needs, but are not expected to be significant.

Alternative Action
The City Council (Council) could decline to pursue an Entertainment Zone at this time or provide staff alternate direction.

Background/Analysis
Senate Bill 969, effective January 1, 2025, authorizes California cities to create designated public "entertainment zones" where individuals, aged 21 and over, may legally possess and consume open containers of alcoholic beverages purchased from licensed participating businesses. The goal of this legislation is to stimulate local economies, enhance cultural and social activities, and promote downtown vibrancy through well-regulated, inclusive public spaces.

Staff is evaluating the potential formation of an Entertainment Zone in Downtown Redding to support ongoing revitalization efforts and to enhance the visitor experience. The following key parameters are being proposed for the initial framework:

MEETING DATE: June 3, 2025
ITEM NO. 9.2(e)
FROM:
***APPROVED BY***
[email protected]
[email protected]
SUBJECT: 9.2(e)--Consider development and implementation of an Entertainment Zone in the City of Redding.

Steve Bade, Assistant City
Manager
Packet Pg. 605
Report to Redding City Council May 28, 2025
Re: 9.2(e)--Provide direction regarding an Entertainment Zone Page 2 • Geographic Boundaries:

The proposed Entertainment Zone would encompass an area similar to the Downtown Core as identified in the City of Redding’s (City) Downtown Specific Plan (see map attached). Final boundaries will be developed in coordination with planning staff, public safety personnel, and stakeholders, and will be clearly marked to ensure compliance and enforcement.
• Days of Operation:

The zone would operate every day of the year (365 days), creating a consistent and predictable environment for residents, businesses, and visitors. • Hours of Operation:

Alcohol consumption would be permitted from 10:00 a.m. to 10:00 p.m. daily, allowing for safe daytime and early evening enjoyment while minimizing late-night disturbances. • Allowable Open Alcoholic Beverage Containers:

The City will determine a standardized container for alcohol consumption within the zone. At present, staff is considering the use of a durable, non-glass, non-metal container which is in line with the State of California ABC Guidelines, affixed with a recognizable sticker or marking, issued by licensed participating vendors, to easily identify compliant containers.
• Alcohol Type:

The type of alcoholic beverage permitted will not be restricted, allowing beer, wine, and spirits to be served in accordance with individual business licenses and state law.

Staff has and will continue to conduct outreach with downtown businesses, the Redding Police Department, and community members to inform zone logistics and ensure alignment with public safety and operational needs. In accordance with SB 969, a biennial review of the zone's operation will be conducted to evaluate impacts on public safety, health, and economic activity.

Environmental Review
This action is not considered a project under the California Environmental Quality Act (CEQA) and is therefore exempt from CEQA review at this stage.

Council Priority/City Manager Goals
• Economic Development - “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.

Attachments
^Entertainment Zone - Downtown Specific Plan Boundary Map (2022) Packet Pg. 606
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SPECIFIC PLAN AREA (2022)
Packet Pg. 607 Attachment: ^Entertainment Zone - Downtown Specific Plan Boundary Map (2022) (9.2(e)--Provide direction regarding an Entertainment Zone)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the City of Redding Electric Utility’s Fiscal Year 2024-25 Third Quarter Financial Report and Industry Activities Update.

Fiscal Impact
There is no fiscal impact related to accepting this report.

Alternative Action
The City Council (Council) could choose not to accept the report and provide further direction to staff.

Background/Analysis
The attached March Financial Report shows that Redding Electric Utility (REU) outperformed budget projections in Net Operating Revenues for the first nine months of the fiscal year. Higher revenues and savings in System Operation and Maintenance (O&M) expenses offset increased power costs. The favorable financial results and a decline in unrestricted reserves are primarily driven by a $2.1 million increase in inventory during the fiscal year and $6.1 million in encumbrances, representing commitments for future expenditures.

Although unrestricted reserves decreased by approximately $4.8 million through March, the cash reserve balance complies with the Council’s Financial Management Policy. In addition, it aligns with REU’s five-year financial plan, which forecasts unrestricted reserves declining until proceeds from the bond financing are received and used to replenish reserves ($19,761,492 of bond proceeds were received subsequent to quarter-end on April 11, 2025).

MEETING DATE: June 3, 2025
ITEM NO. 9.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(b)--Consider Redding Electric Utility's Quarterly Financial Report and Industry Activities Update.

Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 608
Report to Redding City Council May 27, 2025
Re: 9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter Page 2 Revenue
As of March, Billed Retail Revenue was $8,767,139 (8.7 percent) above budget, primarily driven by warmer weather that increased overall energy usage. Additionally, colder-than-average temperatures in January and early February contributed to higher-than-expected demand during those months. Total wholesale sales were $6,983,569 (61.9 percent) above budget. Overall, operating revenue was $17,364,689 (15.3 percent) above budget. Operating revenue after energy costs was $11,908,238 (21.3 percent) above budget. The primary drivers for increased wholesale sales were sales of excess energy into the California Independent System Operator (CAISO) due to our favorable hydro conditions.

Expenses
Power Cost (Cost of Energy)
The combined costs for generation, purchases from the Western Area Power Administration (WAPA), Big Horn Wind Project, contracts, and the spot market were $5,456,452 (9.4 percent) above budget projections. The Redding Power Plant generation costs were higher than anticipated, due to increased wholesale sales. The total cost of energy decreased by $5,692,488 (8.3 percent) year over year. The Power Cost for the load (Power Cost less Wholesale Sales) increased by $2,008,423 year over year due to reduced wholesale sales (4.7 percent).

System Operations & Maintenance (O&M)
System O&M costs are aligned with budget projections.

Debt Service and Capital Outlay
Debt service payments and obligations through March totaled $10.8 million (on plan). Capital expenditures totaled $10.6 million (44.7 percent spent). The pace of capital expenditures remains delayed due to extended lead times for procuring high-demand items, particularly those requiring specialized materials. While the severity of supply chain challenges has eased somewhat, longer lead times, increased shipping costs, tariffs and trade policies, and raw material constraints continue to affect the timing of capital projects
Special Fund Expenditures
Special Fund Expenditures, which include spending for Public Benefit and Cap-and-Trade Programs, totaled $1,971,061 (representing 23.9 percent of the budget) through March.

Electric Utility Unrestricted Cash Balance
At the end of March, the unrestricted cash balance was $35.8 million, representing approximately 98 days of cash. REU’s Financial Management Policy (Council Policy 1414) has a minimum of 75 days of cash and a goal of 150 days of cash.

Director’s Contingency Fund
The REU Director’s Contingency Fund was not utilized through March.

Packet Pg. 609
Report to Redding City Council May 27, 2025
Re: 9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter Page 3 Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• Budget and Financial Management – “Achieve balanced and stable 10-year Financial Plans for all funds.”
c: Finance Director
Attachments
Attachment 1 - Notes on Financial Operating Statement
Attachment 2 - Electric Utility Financial Results for Mar 2025 Attachment 3 - Electric Utility Financial Dashboard for Mar 2025 Attachment 4 - Electric Utility Unrestricted Cash Balance Mar 2025 Attachment 5 - Electric Utility Industry Update
Packet Pg. 610
Attachment 1
City of Redding Electric Utility
Notes to Financial Report
Notes on Financial Operating Statement
Operating revenues are divided into three revenue elements: Retail Sales are sales of electricity to end-use customers; Wholesale Sales are to customers who resell electricity; Other Revenue includes the sale of services, joint-pole arrangements, interest income, and other miscellaneous revenue generated in the operations of Redding Electric Utility (REU).

Operating Expenses are divided into two expense elements: Power Cost and System O&M.

Cost of Energy summarizes Purchased Power costs. The primary sources of purchased power include Western Area Power Administration deliveries and long-term contracts for Wind Energy through M-S-R. Fuel expenses, purchases from the spot market, and expenses associated with participation in the California Independent System Operator make up the remainder. The Generation and Transmission component comprises power plant variable costs (fuel) and fixed costs (all non-fuel costs), as well as all JPA costs (M-S-R and TANC), except Wind Energy.

The Wholesale Sales and Power Costs budgets are based on known contracts and confirmed resources. Throughout the year, an effort is made to provide the most cost-effective energy supply for our ratepayers. This is often done by buying and selling natural gas or electricity to reduce the overall cost. This could include selling natural gas and replacing it with less expensive electricity than burning the gas in our power plant. It could also include selling energy we have contracted for at one trading hub and buying it at another less expensive one. It could also include maximizing the value of our gas storage facility to purchase natural gas in one month when it is less expensive and use it or sell it in another month. All these transactions benefit our customers but significantly inflate the Wholesale Sales and Cost of Energy numbers over their original budgets. This is because accounting rules require us to record these transactions at their gross revenue and expense amounts and not on the net benefit to the Utility.

System O&M Expenses summarize costs for all other functional groups, i.e., Administration, Customer Services, Engineering, Financial Services, Line, Compliance, and Resources. Special Revenue funds, i.e., Public Benefits and Cap-and-Trade, are shown separately. Debt Service is paid twice per fiscal year, once in December and again in June. Capital Outlay includes currentyear appropriations and unfinished projects approved by Council in prior years.

This financial report provides year-to-date comparisons to the current budget and the same yearto-date results for the prior year. Operating revenues are reported as billed. Costs for energy, other operating expenses, and capital outlay are recorded when paid. For this report, debt payments are spread evenly over the year, giving a more helpful picture of the financial results.

Projections are based on normal weather trends and known industry activity. If actual weather conditions are above or below average for the month or unexpected industry disruption occurs, revenue and expenses will increase or decrease accordingly. REU’s residential and small commercial rate structures are heavily weighted on volumetric charges ($/kWh), and abnormal weather causes more significant variances in net operating results, emphasizing the difference between the rate structure and cost structure.

The recorded results are preliminary and subject to revision until the final audit is complete.

Packet Pg. 611 Attachment: Attachment 1 - Notes on Financial Operating Statement (9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter) ELECTRIC UTILITY FINANCIAL RESULTS ‐ MARCH 31, 2025
YTD‐Actual YTD‐Budget Variance Variance YTD‐Actual
March March % Value March
Item FY2025 FY2025 FY2025 FY2025 FY2024
Energy
System Load (MWh) 593,491                                      551,821 7.6% 41,670                                         576,244 Key Performance Indicators
Days Cash on Hand 98                                                        107 Operating Revenues
Retail Sales 109,772,439                      101,005,300 8.7% 8,767,139                              99,181,760 Wholesale Sales 18,268,159                            11,284,590 61.9% 6,983,569                              25,969,070 Miscellaneous Income1                3,057,334                1,443,353 111.8% 1,613,982                                   582,697 Total Operating Revenues 131,097,932                      113,733,243 15.3% 17,364,690                         125,733,527 Operating Expenses
Power Cost
Purchased Power 16,747,658                            12,750,500 31.3% 3,997,158                              13,885,983 Generation, Transmission and JPA (Variable) 24,688,441                            23,431,875 5.4% 1,256,566                              31,426,260 Generation A&G and O&M (Fixed) 21,847,375                            21,644,648 0.9% 202,728                                 23,663,720 Subtotal Power Cost 63,283,475                          57,827,023 9.4% 5,456,452                            68,975,963 System O&M
General & Administrative 4,034,442                                 ‐ 6,009,608 32.9% (1,975,165)                               3,593,704 Interdepartmental (Incl. In‐Lieu of Tax)2                9,483,133                9,362,693 1.3% 120,440                                   9,983,045 Transmission & Distribution 24,042,860                            22,754,689 5.7% 1,288,171                              21,709,329 Customer & Field Services1                2,377,250                2,377,253 0.0% (2)                                              2,416,140 Subtotal System O&M 39,937,685                           ‐ 40,504,241 1.4% (566,556)                              37,702,217 Total Operating Expenses 103,221,160 $         $          98,331,264 5.0% 4,889,896 $              $        106,678,180 Net Operating Revenue 27,876,772 $           $          15,401,979 81.0% 12,474,794 $           $          19,055,347 Total Debt Service 10,791,423 $           $          10,801,515 0% (10,092) $                  $          10,788,980 YTD‐Actual Budget % of Budget Budget YTD‐Actual
March Annual Spent Remaining March
Item FY2025 FY2025 FY2025 FY2025 FY2024
Capital Outlay
Capital Outlay (Revenue Funded)                3,194,854 Capital Outlay (Bond Funded) 10,624,160                            23,745,800 44.7% 13,121,640                              2,991,987 Total Capital Outlay 10,624,160 $           $          23,745,800 44.7% 13,121,640 $           $             6,186,841 Special Fund Expenditures
Public Benefit Programs 1,777,812                                5,090,700 34.9% 3,312,889                                1,762,193 Cap‐and‐Trade Programs 193,250                                   3,171,670 6.1% 2,978,420                                   515,170 Total Special Fund Expenditures 1,971,061 $              $             8,262,370 23.9% 6,291,308 $              $             2,277,363 Financial Results 4,490,128 $              $               (197,837) CHANGES IN FY2024/FY2025: 1 Customer Services and Field Services are removed from the Electric Department's Financial Results, and an allocation of expenses is recorded. 2 Interdepartmental Allocations are not assigned to various divisions within the Electric Department as in previous years but recorded as its own category.

Council Report
Packet Pg. 612 Attachment: Attachment 2 - Electric Utility Financial Results for Mar 2025 (9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter) ELECTRIC UTILITY FINANCIAL DASHBOARD ‐ MARCH 31, 2025 2.8 4.8 4.0 7.0 6.87.47.6 7.68.8 ‐
2 4
6 8
10 12
14 16
18 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$‐Millions
Retail Sales ($‐Millions)
Cumulative Difference 2024 Actual 2025 Actual 2025 Budget ‐1.1
‐0.4

0.0 ‐0.1

0.7 1.2

3.2 5.9

7.0 (2)
(1)
‐
1 2
3 4
5 6
7 8

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$‐Millions
Wholesale Sales ($‐Millions)
Cumulative Difference 2024 Actual 2025 Actual 2025 Budget Packet Pg. 613 Attachment: Attachment 3 - Electric Utility Financial Dashboard for Mar 2025 (9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter) ELECTRIC UTILITY FINANCIAL DASHBOARD ‐ MARCH 31, 2025
‐4.6
‐3.1
‐1.5
‐1.2

0.8 1.8

4.7 5.3

4.9 (10)
(5)
‐
5 10
15 20
25 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$‐Millions
Total Operating Expense ($‐Millions)
Cumulative Difference 2024 Actual 2025 Actual 2025 Budget 3.2 5.9 5.3 8.18.810.0 12.6 15.1 17.4 ‐
2 4
6 8
10 12
14 16
18 20

JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
$‐Millions
Total Operating Revenues ($‐Millions)
Cumulative Difference 2024 Actual 2025 Actual 2025 Budget Packet Pg. 614 Attachment: Attachment 3 - Electric Utility Financial Dashboard for Mar 2025 (9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter) Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
Unrestricted Cash - 2024-25 33.5 38.5 38.9 34.3 33.2 32.6 33.4 36.6 35.8Unrestricted Cash - 2023-24 49.7 51.4 52.4 44.4 42.6 40.6 42.8 41.7 39.3 40.5 40.1 40.6

20.025.030.035.040.045.050.055.060.065.070.0
MILLION $

REU UNRESTRICTED CASH BALANCE
JULY 2023 ‐ JUNE 2025
Packet Pg. 615
Attachment: Attachment 4 - Electric Utility Unrestricted Cash Balance Mar 2025 (9.5(b)--Electric Utility's City of Redding Electric Utility
Industry Activities Update –3rd Quarter FY2025
Federal Update
The Trump administration and congressional Republicans have proposed legislation to roll back key clean energy tax credits established under the Inflation Reduction Act (IRA), specifically credits 48E and 45Y. These credits have been instrumental in promoting investments in renewable energy projects.

In Congress, a bipartisan group introduced the “Fix Our Forests Act,” a legislative initiative to overhaul federal forest management to mitigate catastrophic wildfires, restore forest ecosystems, and enhance community safety. Introduced in both the House (H.R. 8790) and Senate, the bill is spearheaded by Representatives Bruce Westerman (R-AR) and Scott Peters (D-CA), along with Senators Alex Padilla (D-CA), John Curtis (R-UT), John Hickenlooper (D-CO), and Tim Sheehy (R-MT).

In October 2024, FERC released Order 1977-A, addressing the siting of interstate electric transmission facilities. This order seeks to streamline the permitting process for critical transmission projects, potentially affecting how municipal utilities engage with regional transmission initiatives. Also, in April 2025, FERC issued Order 1920-B, refining its earlier directives on regional electric transmission planning and cost allocation. This order aims to enhance grid reliability and accommodate the growing electricity demand, particularly from renewable sources.

Mayor Pro Tempore Erin Resner, Director Nick Zettel, and Assistant Director Joe Bowers represented the City of Redding and Redding Electric Utility (REU) at the 2025 Federal Policy Conference jointly hosted by the Northern California Power Agency (NCPA) and Northwest Public Power Association (NWPPA). The annual event brings together public power leaders from across the Western United States to engage with federal policymakers on the most pressing energy and infrastructure issues facing their communities. While the conference covered a wide range of topics reflecting the broad and diverse membership of NCPA and NWPPA, REU focused its federal advocacy on several core priorities essential to maintaining affordable and reliable electricity for Redding’s residents and businesses. Key issues included the protection of federal hydropower and CVP resources, workforce stability for generating agencies and power marketing administrations, wildfire risk reduction and liability reform, infrastructure financing and tax policy, and continued engagement with federal policymakers.

Packet Pg. 616 Attachment: Attachment 5 - Electric Utility Industry Update (9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter) State Legislative Update
Between October 2024 and March 2025, several legislative developments in California have emerged that could significantly impact municipal electric utilities. Key areas of focus include grid modernization, renewable energy integration, rate structures, and energy equity.

Senate Bill 797 seeks to exempt certain electric utility distribution and transmission system facilities from the California Environmental Quality Act (CEQA) when projects involve undergrounding and insulation. This measure aims to expedite grid hardening efforts to mitigate wildfire risks.

The California Legislature is preparing to consider the reauthorization of the state’s Cap-and-Trade program, which will be renamed “Cap-and-Invest.” The goal is to extend the program beyond its current 2030 expiration while placing greater emphasis on how auction revenues are reinvested— particularly in disadvantaged communities and clean technology. While the core cap-and-trade structure will remain, changes to allowance allocation, revenue use, and equity requirements are being discussed. REU is monitoring this closely to assess potential impacts on utility operations and customer programs.

Senate Bill 647 focuses on equitable building decarbonization by enhancing low-income energy assistance programs. The bill aims to support under-resourced communities in transitioning to cleaner energy solutions.

State Regulatory Update
The California Air Resources Board (CARB) has indicated that the 45-day public comment period for proposed Cap-and-Trade regulatory amendments is expected soon and will likely be announced in the coming weeks. Any updates to the 2025 regulation would have required board approval in October 2024; therefore, any upcoming regulatory amendments won’t take effect until 2026.

In October 2024, the California Energy Commission (CEC) issued a Notice of Proposed Scope for revisions to the Renewables Portfolio Standard (RPS) Eligibility Guidebook, which is now moving toward its 10th edition. This proposed scope includes 18 areas for potential updates to better align the RPS with technological advancements and evolving grid needs. The RPS Guidebook is exempt from the full rulemaking process, which means the CEC can adopt changes to the Guidebook through a regularly scheduled business meeting. The California Municipal Utilities Association (CMUA) submitted comments on behalf of its members, which addressed concerns around energy storage and dynamically transferred facilities. A follow-up scoping meeting is scheduled in May to go over the proposed updates and address issues raised during the previous comment period.

Packet Pg. 617 Attachment: Attachment 5 - Electric Utility Industry Update (9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter) The California Air Resources Board (CARB) recently withdrew the Advanced Clean Fleets (ACF) waiver, meaning the regulation no longer applies to private fleets. This decision significantly shifts the regulatory landscape and raises questions about compliance expectations for public agencies.

In response, NCPA and CMUA are actively engaging with the Legislature and the Governor’s Office to advocate for regulatory changes that reflect the new reality and address the challenges utilities and public fleets may face as a result. REU is tracking these efforts to understand potential impacts on fleet planning and long-term compliance strategies.

Senate Bill 1158, adopted on September 16, 2022, mandates that starting January 1, 2028, every retail seller in California must report hourly data on their electricity sources used to serve lossadjusted load for each hour of the previous calendar year, including the associated greenhouse gas emissions. This legislation seeks to enhance transparency and accuracy in tracking renewable energy usage and emissions, thereby helping California achieve its climate goals more effectively.

The Bill tasked the CEC with developing and adopting the reporting rules through an open process by July 2024. REU has been collaborating with the CMUA to provide feedback to the CEC, ensuring the reporting requirements are reasonable, not overly restrictive, and avoiding placing undue burdens on retail sellers and their customers.

Conclusion
REU staff, in close coordination with the Northern California Power Agency (NCPA) and the California Municipal Utilities Association (CMUA), are actively engaging with legislative staff to advocate for public power interests. This includes requesting — and in some cases drafting — amendments to ensure that emerging legislation protects our ability to deliver safe, reliable, and affordable service to our customers.

As one of the lowest-cost electric providers in California, Redding Electric Utility remains committed to maintaining affordability while meeting state energy and climate goals. Ongoing legislative engagement is essential to preserving local control, operational flexibility, and rate stability for our community.

Packet Pg. 618 Attachment: Attachment 5 - Electric Utility Industry Update (9.5(b)--Electric Utility's Quarterly Report - 3rd Quarter)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Offer an Ordinance amending RMC Title 2 (Administration and Personnel), Chapter

2.56 (Community Services Department) by amending RMC Sections 2.56.010 (Definitions), 2.56.060 (Approval for use of sound amplification equipment), 2.56.070 (Concessions), and 2.56.080 (Smoking), all relating to the Community Services Department, for first reading by title only and waive the full reading; (2) Authorize the City Attorney to prepare and the City Clerk to publish the ordinance in accordance with law; and
(3) Find that the action is exempt from environmental review under the California Environmental Quality Act Guidelines, pursuant to section 15061(b)(3) – Common Sense Exemption.

Fiscal Impact
Amending the Redding Municipal Code (RMC) will not impact the General Fund.

Alternative Action
The City Council (Council) could choose not to amend the RMC or provide staff with alternate direction.

Background/Analysis
The first major proposed amendment to the RMC addresses concession permit requirements for giveaways, services, or other distributions in park facilities. The changes will make giveaway events or activities match the current requirements of the vendor/sales requirements. These changes will place additional requirements for food and clothing giveaways or other free services at facilities, in parks, and in open spaces by requiring a permit from the Director of Community MEETING DATE: June 3, 2025
ITEM NO. 9.6(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(b)--Consider Ordinance amending Redding Municipal Code (RMC) Title 2 (Administration and Personnel), Chapter 2.56 (Community Services Department).

Travis Menne, Director of
Community Services
Packet Pg. 619
Report to Redding City Council May 28, 2025
Re: 9.6(b)--Adopt ordinance amending RMC Chapter 2.56 Page 2 Services. Currently, these activities can exceed attendee thresholds for permitted events, as well as cause issues with litter, vandalism, interfere with permitted events and activities, and allow user groups to avoid insurance requirements, concession permits, reservations, and deposits. The effort should result in a new system with real accountability for user groups, limiting damage to City of Redding (City) facilities and reduce other RMC violations and disruptions.

The second major change would modify requirements for Park permits to obtain Council permission to bypass the City’s Noise Ordinance in park facilities. The changes would allow the Director of Community Services to approve requests to have amplified sound outside of the current restricted hours exceeding a set decibel limit, rather than the Council. The change is prompted by the needs of the Civic Auditorium and hosting outdoor concerts, which can exceed current noise level restrictions and go later than 10 P.M., violating the existing ordinance. In addition to generating Transient Occupancy Tax and local economic impact, these outdoor events are vital to the Civic Auditorium’s success and the community’s cultural wellbeing. The changes will remove some risk for the operator and the performer when planning and booking acts, removing some of the red tape by shortening the timeline for event approval and simplifying the process, thereby improving our partnership and enhancing our support for the venue.

The third major change is the removal of section 2.56.080 (Smoking), which is duplicative of another existing Municipal Code section, 10.20.080 (Smoking). Municipal Code Section

10.20.080 is more expansive, better defined, and is more enforceable as it includes littering, vaping, and other substances.

Environmental Review
This is not a project defined under the California Environmental quality Act, and no further action is required.

Council Priority/City Manager Goals
• This is a routine operational item.

Attachments
^Clean Ordinance Title 2 Community Services
^Strikeout Ordinance Title 2 Community Services
Packet Pg. 620

DRAFT ORDINANCE
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF REDDING AMENDING REDDING
MUNICPAL CODE TITLE 2 (ADMINISTRATION AND PERSONNEL),
CHAPTER 2.56 (COMMUNITY SERVICES DEPARTMENT)
THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:

Section 1. Redding Municipal Code Title 2 (Administration and Personnel), Chapter 56 (Community Services Department), is amended to read as follows:

2.56.010 - Definitions.

As used in this chapter:
"City" means the city of Redding.
"City event" means any event under the direct management and control of the department whereby temporary exclusive use of park facilities is utilized for those participating in city recreation programs.
"Concession" means the sale or distribution of goods or services approved by a contract or the director pursuant to Section 2.56.070 of this code.
"Director" means the director of community services.
"Department" means the community services department.
"Event" means any organized recreation activity.
"Park facility" means any body of water, land, trail, open space, archeological site, skate park, building, structure, other appurtenance owned by the city and managed, controlled or operated by the department, including the grounds of the Redding civic auditorium. "Park facility reservation permit" is a permit issued by the director pursuant to Chapter 2.56 of this code to an individual or group granting permission for the temporary exclusive use of park facilities for an event which is not under the management and control of the city and that may or may not be open to the general public.
"Regulation" means posted notice governing the use of park facilities which are not inconsistent with the law contained in this chapter and which promote public health and safety and the preservation of property.
"Special event" means an event approved with a special events permit. "Special event permit" means a permit issued by the city clerk pursuant to Chapter 11.44 of this code.

2.56.020 - Responsibility for park facilities.

The director shall be responsible for overall management, control, development and use of park facilities.

Packet Pg. 621 Attachment: ^Clean Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56)

2.56.030 - Hours of operation and closure of facilities.

A. The director may restrict the hours of operation of park facilities based on the following criteria:

1. Weather conditions;

2. Seasonal recreation activities scheduled or expected to occur at the parks or recreation facilities;

3. Nature or extent of public use of the parks or recreation facilities;

4. Cost effectiveness of operation of the parks or recreation facilities.

B. The director, or his or her designee, shall have the authority to close any park facility or portion thereof and require the exit of all persons therein when it is determined that conditions exist in said facility or portion thereof which present a hazard to the facility or to public safety.

2.56.040 - Priority of use—Reservation of facilities—Special events.

As designated in city's schedule of fees and service charges (available in the office of the city clerk or on-line at the city finance department web page), certain park facilities may be available for temporary exclusive use through issuance of a park facilities reservation permit or a special event permit.

A. The director shall be responsible for processing of applications for and approval of park facilities reservation permits. Any use of a magnitude, scope or nature that will require the participation of other city departments shall not be eligible for a park facilities reservation permit and shall be considered by the city clerk for issuance of a special events permit pursuant to Chapter 11.44 of this code.

B. Nothing in this section shall be construed as granting any right or entitlement to exclusive use of park facilities. The director may deny any request for a park facilities reservation permit upon determining in writing that:

1. The proposed activity or use of the park will unreasonably interfere with or detract from the general public enjoyment of the park; or

2. The proposed activity or use will unreasonably interfere with or detract from the promotion of public health, welfare, safety, and recreation; or

3. The proposed activity or use could reasonably be anticipated to incite violence, crime, or disorderly conduct; or
Packet Pg. 622 Attachment: ^Clean Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56)

4. The proposed activity or use will entail unusual, extraordinary, or burdensome expense or security operation by the city; or

5. The proposed activity will conflict with a city event; or

6. The park facilities desired have already been reserved with another park facilities reservation permit.

C. In processing any park facilities reservation permit, the director may impose reasonable conditions or restrictions on the granting the request upon the sponsor/applicant, including, but not limited to, any of the following:

1. Restrictions on fires, fireworks, amplified sound, decibel rating and distance, dancing, sports, use of animals, equipment, or vehicles, the number of persons to be present, the location of any bandstand or stage, or any other use which appears likely to create a risk of unreasonable harm to the use and enjoyment of the park or public space by others, or of damage to public property;

2. A requirement that the sponsor post a reasonable security deposit for the repair of any damage to park or public property, or the cost of cleanup, or both;

3. A requirement that the sponsor pay any required business license tax or other required fees;

4. A requirement that the sponsor furnish additional sanitary and refuse facilities that might be reasonably necessary based on the use or activity;

5. A requirement that the sponsor shall be liable for any loss, damage or injury to any person or property whatever by reason of the negligence of the person or persons to whom the reservation was granted;

6. A requirement that responsibility for the event shall not be transferable without the written consent of the director;

7. Insurance coverage may be required, if in the opinion of the director the size or scope require insurance coverage.

D. All park rules and regulations, including the provisions of Chapter 10.20 of this code shall be followed and deemed incorporated into the conditions of any park facilities reservation permit, unless expressly waived or modified in writing by the director in granting the park facilities reservation permit.

E. Exhibiting Permit. Park facilities reservation permits shall be carried by the applicant and available at the event. No person shall fail to produce and exhibit a permit he or she claims to have been issued upon request of any department employee or any peace officer who desires to inspect said permit for the purpose of enforcing compliance with this code.

Packet Pg. 623 Attachment: ^Clean Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56)

2.56.050 - Boats.

Regulations governing the use of boats within any park facility may be established and posted by the director. Said regulations shall promote the safety of swimmers and boaters, the protection of property, and general public enjoyment of the facility.

2.56.060 - Approval for use of sound amplification equipment.

B. Sound amplification, as used in this section, shall not be construed as including a standard automobile radio when used and heard only by the occupants of the vehicle in which it is installed.

2.56.070 – Concessions and Distribution of Goods or Services.

A. The sale or distribution of goods and services, including but not limited to, food products, apparel, instructional lessons, and entertainment by persons potentially adversely and seriously impacts the use of park facilities for use by the general public for recreational purposes. Any such sales or distributions must be regulated through the use of concession contracts, as permitted by the Director, to ensure that the goods and services will promote the beneficial use of park facilities for recreational purposes.

B. A request for consideration of a concession contract as required by this section shall be submitted to the community services director for consideration. Nothing in this section shall be construed as granting any right or entitlement to a concession contract.

C. The provisions of this section shall not be deemed to apply to the sale or distribution of newspapers, books, pamphlets, or other activity constituting protected speech under the First Amendment of the United States Constitution or comparable protections under the California Constitution.

Section 2. Severability. If any section, subsection, sentence, clause or phrase of these ordinances is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of remaining portions of the ordinances.

The City Council of the City of Redding hereby declares that it would have passed this ordinance Packet Pg. 624 Attachment: ^Clean Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56) and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional.

Section 3. The passage pf this ordinance is not a “project” according to the definition in the California Environmental Quality Act, and therefore is not subject to the provisions requiring environmental review.

Section 4. This Ordinance shall take effect thirty (30) days after the date of its adoption, and the City Clerk shall certify to the adoption thereof and cause publication according to law.

I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council of the City of Redding at a regular meeting on the 3rd day of June, 2025, and was duly adopted at a regular meeting on the ___ day of _______, 2025, by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

STRIKEOUT ORDINANCE
OLD LANGUAGE: Struck Out
NEW LANGUAGE: Underline

AN ORDINANCE OF THE CITY OF REDDING AMENDING REDDING
MUNICPAL CODE TITLE 2 (ADMINISTRATION AND PERSONNEL),
CHAPTER 56 (COMMUNITY SERVICES DEPARTMENT)

2.56.010 - Definitions.

As used in this chapter:
"City" means the city of Redding.
"City event" means any event under the direct management and control of the department whereby temporary exclusive use of park facilities is utilized for those participating in city recreation programs.
"Concession" means the sale or distribution of goods or services approved by a contract or the Director pursuant to Section 2.56.070 of this code.
"Director" means the director of community services.
"Department" means the community services department.
"Event" means any organized recreation activity.
"Park facility" means any body of water, land, trail, open space, archeological site, skate park, building, structure, other appurtenance owned by the city and managed, controlled or operated by the department, including the grounds of the Redding civic auditorium. "Park facility reservation permit" is a permit issued by the director pursuant to Chapter 2.56 of this code to an individual or group granting permission for the temporary exclusive use of park facilities for an event which is not under the management and control of the city and that may or may not be open to the general public.
"Regulation" means posted notice governing the use of park facilities which are not inconsistent with the law contained in this chapter and which promote public health and safety and the preservation of property.
"Special event" means an event approved with a special events permit. "Special event permit" means a permit issued by the city clerk pursuant to Chapter 11.44 of this code.

2.56.020 - Responsibility for park facilities.

The director shall be responsible for overall management, control, development and use of park facilities.

2.56.030 - Hours of operation and closure of facilities.

A. The director may restrict the hours of operation of park facilities based on the following criteria:

Packet Pg. 626 Attachment: ^Strikeout Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56)

1. Weather conditions;

2. Seasonal recreation activities scheduled or expected to occur at the parks or recreation facilities;

3. Nature or extent of public use of the parks or recreation facilities;

4. Cost effectiveness of operation of the parks or recreation facilities.

2.56.040 - Priority of use—Reservation of facilities—Special events.

1. The proposed activity or use of the park will unreasonably interfere with or detract from the general public enjoyment of the park; or

2. The proposed activity or use will unreasonably interfere with or detract from the promotion of public health, welfare, safety, and recreation; or

3. The proposed activity or use could reasonably be anticipated to incite violence, crime, or disorderly conduct; or

4. The proposed activity or use will entail unusual, extraordinary, or burdensome expense or security operation by the city; or

5. The proposed activity will conflict with a city event; or Packet Pg. 627 Attachment: ^Strikeout Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56)

6. The park facilities desired have already been reserved with another park facilities reservation permit.

2. A requirement that the sponsor post a reasonable security deposit for the repair of any damage to park or public property, or the cost of cleanup, or both;

3. A requirement that the sponsor pay any required business license tax or other required fees;

4. A requirement that the sponsor furnish additional sanitary and refuse facilities that might be reasonably necessary based on the use or activity;

6. A requirement that responsibility for the event shall not be transferable without the written consent of the director;

7. Insurance coverage may be required, if in the opinion of the director the size or scope require insurance coverage.

Packet Pg. 628 Attachment: ^Strikeout Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56)

2.56.050 - Boats.

2.56.060 - Approval for use of sound amplification equipment.

A. Within any park facility, except in connection with a city event, no person shall use sound amplification equipment without a park facilities reservation permit from the director. All sound amplification of speech or music of whatever type orf kind is prohibited within the confines of park facilities; provided, that between the hours of eleven a.m. and ten p.m. sound amplification shall be permitted up to a maximum volume level of seventy-five decibels of sound registered at a distance of fifty yards from the amplification source, as measured on a sound level meter meeting the requirements of the American National Standards Institute, Standard S1.4-1971, for sound level meters, which has its frequency weighting network set for the 'A' weighting and slow response., where a written permit is previously obtained from. tThe director or his or her their agent may permit; and further provided, that sound amplification not exceeding seventy-five decibels and outside of the hours of eleven a.m and ten p.m upon request and dependent on the conditions. of sound similarly measured may be permitted in designated portions of Lake Redding Park, Caldwell Park, Enterprise Community Park, Martin Luther King Junior Park, the grounds of the Civic Auditorium, the Sculpture Park at City Hall, or South City Park at other and additional times as established and approved by the city council, where the council has determined the proposed amplification to be in the public interest, such as in the case of political rallies, conventions, public celebrations, and other significant public events as determined in the sole discretion of the city council.

B. Sound amplification, as used in this section, shall not be construed as including a standard automobile radio when used and heard only by the occupants of the vehicle in which it is installed.

2.56.070 – Concessions and Distribution of Goods or Services.

A. The sale or distribution of goods and services, including but not limited to, food products, apparel, instructional lessons, and entertainment by persons or entities for commercial gain potentially adversely and seriously impacts the use of park facilities for use by the general public for recreational purposes. Any such sales or distributions must be regulated through the use of concession contracts, to or as permitted by the Director, insure to ensure that the goods and services marketed will promote the beneficial use of park facilities for recreational purposes.

Packet Pg. 629 Attachment: ^Strikeout Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56) C. The provisions of this section shall not be deemed to apply to the sale or distribution of newspapers, books, pamphlets, or other activity constituting protected speech under the First Amendment of the United States Constitution or comparable protections under the California Constitution.

2.56.080 – Smoking.

It is the policy of the city that smoking any substance in or upon any park facility is not permitted.

Packet Pg. 630 Attachment: ^Strikeout Ordinance Title 2 Community Services (9.6(b)--Adopt ordinance amending RMC Chapter 2.56)

Redding City CouncilJune 3, 2025

Redding City Council
June 3, 2025