6.1 Periodic Review.
(A) As required by California Government Code Section 65865.1, and in accordance with Chapter 18.220 of the Redlands Municipal Code (“Chapter 18.220”) the Community Development Director, or person occupying a similar position (“Community Development Director”), will review this Agreement annually, on or before each anniversary of the Effective Date. The purpose of each review will be to ascertain OWNER’S good faith material compliance with this Agreement during the immediately prior year. OWNER shall submit an annual monitoring report (“Annual Monitoring Report”), in a form prepared and approved by the Community Development Director, as set forth in Chapter 18.220. The Annual Monitoring Report must be accompanied by the then-current annual review and administration fee set by the City Council, which may not exceed CITY’S reasonably estimated fees and costs of reviewing OWNER’S compliance with this Agreement.
(B) The City Council may order a special review of OWNER’S compliance with this Agreement at any time.
(C) The annual review and any other special review shall be conducted in accordance with Chapter 18.220, and OWNER will be required to demonstrate its good faith compliance with this Agreement. OWNER shall have the burden of proof concerning the issue.
6.2 Proceedings for Modification or Termination.
If OWNER fails to cure, or to commence to cure, as applicable, the matters constituting the basis for the City Council’s preliminary finding of non-compliance under Chapter 18.220 in the manner described in Section 7.3, then CITY may proceed to modify or Redlands Regular Meeting of 07-19-22 707 of 974
terminate this Agreement, but only by the procedures set forth in Chapter 18.220 and in Section 7.3.
6.3 Certificate of Agreement Compliance. If OWNER is found or deemed to be in material compliance with this Agreement, then CITY will issue a “Certificate of Agreement Compliance” (“Certificate”) to OWNER stating that this Agreement remains in effect and OWNER is not in default of this Agreement. The Certificate must be in recordable form, contain information necessary to communicate constructive record notice of the finding of compliance, state whether the Certificate is issued after an annual or special review, and state the anticipated date of the next annual review. OWNER may record the Certificate with the San Bernardino County Recorder. Whether or not the Certificate is relied upon by assignees, other transferees or OWNER, CITY shall not be bound by the Certificate if a default existed at the time of the annual periodic or special review, but was concealed from CITY or its reviewing person or body.
7. DEFAULT AND REMEDIES
7.1 Remedies in General. It is acknowledged by the Parties that CITY would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof. In general, each of the Parties hereto may pursue any remedy at law or equity ( including but not limited to specific performance and/or injunctive relief) available for the breach of any provision of this Agreement, except that CITY shall not be liable in damages (such damages do not include attorney’s fees with respect to the enforcement of the equitable remedies authorized above ) to OWNER, or to any successor in interest of OWNER, or to any other person, and OWNER covenants not to sue for damages or claim any damages:
(A) For any breach of this Agreement or for any cause of action that arises out of this Agreement; or
(B) For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Agreement; or
(C) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.
7.2 Release. Except for non-monetary remedies, OWNER, for itself, its successors and assignees, hereby releases CITY, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth and Fourteenth Amendments to the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon CITY because it entered into this Agreement or because of the terms of this Agreement. OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF
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KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASED PARTY.”
By initialing below, OWNER hereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. ______________
Owner’s Initials
7.3 Termination or Modification of Agreement for Default of OWNER. CITY may terminate or modify this Agreement for any failure of OWNER to perform any material duty or obligation of OWNER under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as “default”); provided, however, CITY may terminate or modify this Agreement pursuant to this Section only after providing written notice to OWNER of default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within ninety (90) days after the effective date of such notice or, in the event that such default cannot be cured within such ninety (90) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such ninety (90) day period and to diligently proceed to complete such actions and cure such default.
7.4 Termination of Agreement for Default of CITY. OWNER may terminate this Agreement only in the event of a default by CITY in the performance of a material term of this Agreement and only after providing written notice to CITY of default setting forth the nature of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within ninety (90) days after the effective date of such notice or, in the event that such default cannot be cured within such ninety (90) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such ninety (90) day period and to diligently proceed to complete such actions and cure such default.
8. LITIGATION
8.1 Third Party Litigation Concerning Agreement. OWNER shall defend, at its expense, including attorneys’ fees, indemnify, and hold harmless CITY, its agents, officers and employees from any claim, action or proceeding against CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement, or the approval of any permit granted pursuant to this Agreement. CITY shall promptly notify OWNER of any claim, action, proceeding or determination included within this Section 8.1, and CITY shall cooperate in the defense. If CITY fails to promptly notify OWNER of any such claim, action, proceeding or determination, or if CITY fails to cooperate in the defense, OWNER shall not thereafter be responsible to defend, indemnify, or hold harmless CITY. CITY may in its discretion participate in the defense of any such claim, action, proceeding or determination.
8.2 Environmental Assurances. OWNER shall indemnify and hold CITY, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any Redlands Regular Meeting of 07-19-22 709 of 974
act or omission of OWNER, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and OWNER shall defend, at its expense, including attorneys’ fees, CITY, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. CITY may in its discretion participate in the defense of any such action. OWNER shall have no obligation to indemnify or defend CITY against a claim based upon CITY’s intentional misconduct.
8.3 Reservation of Rights. With respect to Section 8.1 and Section 8.2 herein, CITY reserves, the right to either (1) approve the attorney(s) that the indemnifying party selects, hires or otherwise engages to defend the indemnified party hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense; provided, however, that the indemnifying party shall reimburse the indemnified party forthwith for any and all reasonable expenses incurred for such defense, including attorneys’ fees, upon billing and accounting therefor.
8.4 Challenge to Existing Land Use Approvals. By accepting the benefits of this Agreement, OWNER, on behalf of itself and its successors in interest, hereby expressly agrees and covenants not to sue or otherwise challenge any land use approval affecting the Property and in effect as of the Effective Date. Such agreement and covenant includes, without limitation, the covenant against any direct suit by OWNER or its successor in interest, or any participation, encouragement or involvement whatsoever that is adverse to CITY by OWNER or its successor in interest, other than as part of required response to lawful orders of a court or other body of competent jurisdiction. OWNER hereby expressly waives, on behalf of itself and its successors in interest, any claim or challenge to any land use approval affecting the Property and in effect as of the Effective Date. In the event of any breach of the covenant or waiver contained herein, CITY shall, in addition to any other remedies provided for at law or in equity, be entitled to:
(A) impose and recover (at any time, including after sale to a member of the public or other ultimate user) from the party breaching such covenant or waiver, the full amount of Development Impact Fees that the breaching party would have been required to pay in the absence of this Development Agreement; and
(B) impose any subsequently adopted land use regulation on those land use approvals for which the breaching party had not, as of the time of such breach, obtained a building permit.
OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF
KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASED PARTY.”
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By initialing below, OWNER hereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. _______________
Owner’s Initials
8.5 Survival. The provisions of Sections 8.1 through 8.4, inclusive, shall survive the termination of this Agreement.
9. Mortgagee Protection
The Parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER’S sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges:
(A) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law.
(B) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER’S obligations under this Agreement. (C) If CITY timely receives a request from a mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (D) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER’S obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY’S performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Section 2.4 of this Agreement.
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10. Miscellaneous Provisions
10.1 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the County Recorder by the City Clerk within the period required by Section 65868.5 of the Government Code.
10.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the Parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.
10.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provisions of Sections 4.1 through 4.6 are essential elements of this Agreement and CITY would not have entered into this Agreement but for such provisions and, therefore, in the event such provisions are determined by a court of competent jurisdiction to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever.
10.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the procedural and substantive laws of the State of California, without regard to its conflict of laws principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof.
10.5 Section Headings. All Section headings and subheadings are inserted for convenience only and shall not affect the construction or interpretation of this Agreement.
10.6 Singular and Plural. As used herein, the singular of any word includes the plural.
10.7 Attorneys’ Fees. If either Party files any action or brings any proceeding against the other pertaining to the interpretation or enforcement of this Agreement, then the prevailing Party will recover, as an element of its costs of suit and not as damages, its costs of suit, expert fees, consultant costs, collection costs, and reasonable attorneys’ fees as fixed by the court or arbitrator (as applicable), including fees and costs incurred on appeal and in any bankruptcy proceedings.
10.8 Estoppel Certificates.
(A) Within ten (10) days following a Party’s written request, the other Party will certify in writing that, to its actual knowledge:
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(1) This Agreement is in full force and effect and is binding upon the certifying Party, unless the certifying Party disputes this affirmation, in which case the certifying Party will set forth the basis for its position in writing. (2) This Agreement has not been amended or modified, except as otherwise expressly described in the certificate.
(3) The requesting Party is not in material default of its obligations under this Agreement, and that there have been no events that with the passage of time, the giving of notice, or both, would constitute the requesting Party’s default under this Agreement, except as otherwise expressly described in the certificate.
(B) The Party requesting the estoppel certificate will reimburse the certifying party the amount of the certifying Party’s costs incurred in the preparation and/or review of the estoppel certificate, not to exceed Five Hundred Dollars ($500.00).
10.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.
10.10 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by the other Party thereafter.
10.11 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement.
10.12 Force Majeure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other acts of God, pandemic, fires, wars, riots or similar hostilities, recession (defined as two (2) consecutive quarters of decline in quarterly real U.S. Gross Domestic Product), strikes and other labor difficulties beyond the Party’s control, (including the Party’s employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the Party’s control. The Party claiming an extension or delay due to a force majeure event must (i) give written notice to the other Party within sixty (60) days following the onset of the event giving rise to the force majeure delay, and (ii) give written notice to the other Party within thirty (30) days following the cessation of the event giving rise to the force majeure delay. If any force majeure events occur, the Term of this Agreement and the time for performance by either Party of any of its obligations hereunder will be extended for the period of time that such events prevented such performance, provided that the Term of this Agreement shall not be extended under any circumstances due to a force majeure event for more than five (5) years.
10.13 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party.
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10.14 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to the Development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and, (c) is binding upon each Party and each successor in interest during ownership of the Property or any portion thereof.
10.15 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument.
10.16 Survival of Certain Rights and Obligations. Upon the expiration or earlier termination of this Agreement, the entirety of CITY’S and OWNER’S rights and obligations arising under this Agreement will automatically end and be of no further force or effect, except the following: (a) rights and obligations which accrued prior to the expiration or termination of this Agreement, and (b) rights and obligations which specifically state that they will survive the expiration or termination of this Agreement.
10.17 Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture, or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the development of private property by the owner of such property.
10.18 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement.
Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement.
10.19 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. No provision of this Agreement shall be construed to limit the CITY’S obligations and liabilities arising from or related to the exercise of CITY’S power of eminent domain.
10.20 Agent for Service of Process. In the event OWNER is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer resident of the State of California, or it is a foreign corporation, then in any such event, OWNER shall file with the Community Development Director, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her Redlands Regular Meeting of 07-19-22 714 of 974
name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon OWNER. If for any reason service of such process upon such agent is not feasible, then in such event OWNER may be personally served with such process and such service shall constitute valid service upon OWNER.
OWNER is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. OWNER for itself, assigns and successors hereby waives the provisions of the Hague Convention (Convention on the Service Abroad of Judicial and Extra Judicial Documents in Civil or Commercial Matters, 20 U.S.T. 361, T.I.A.S.
No. 6638).
10.21 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership, or business entity and warrants and represents that he or she/they have the authority to bind OWNER to the performance of its obligations hereunder.
10.22 Joint and Several Obligations. If at any time during the Term of this Agreement the Property is owned, in whole or in part, by more than one OWNER, all obligations of such OWNERS under this Agreement shall be joint and several, and the default of any such OWNER shall be the default of all such OWNERS. Notwithstanding the foregoing, no OWNER of a single lot that has been finally subdivided ( or ground lessor of any portion of the Property with a term in excess of 15 years ) and sold/leased to such OWNER as a member of the general public or otherwise as an ultimate user shall have any obligation under this Agreement except as expressly provided for herein as it relates to such portion of the Property ( and not defaults relating to other lots within the Project).
10.23 Good Faith and Fair Dealing. The Parties hereby expressly incorporate a mutual covenant of good faith and fair dealing with respect to their interpretation hereof and respective performance under this Agreement.
[Signatures on following pages]
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SIGNATURE PAGE TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC
OWNER
VPV STATE STREET VILLAGE , LLC , a
Delaware limited partnership
By: VILLAGE PARTNERS VENTURES,
LLC,
a Delaware limited partnership, Its Managing
Member
By: Village Partners Investments, LLC,
a California limited liability company,
its administrative member
By:__________________________
Name:________________________
Title:_________________________
Dated:
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SIGNATURE PAGE TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC CITY
CITY OF REDLANDS, a California municipal
corporation
By:
Mayor
Dated:
By:
City Manager
ATTEST:
By:
City Clerk
APPROVED AS TO LEGAL FORM:
City Attorney
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EXHIBIT A TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Legal Description of the Property
The Project site encompasses approximately 12.25 acres and 11 parcels of land with Citrus Avenue between the main parcel and outparcel. The 11 Assessor’s Parcel Numbers (APNs) of the Project site are listed in the table below.
Assessor’s Parcel Numbers
0171-053-01 0171-251-06
0171-053-02 0171-251-07
0171-053-03 0171-251-08
0171-053-04 0171-251-09
0171-053-05 0171-251-10
0171-053-06
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EXHIBIT B TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Map showing Property and its location
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EXHIBIT C TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Existing Development Approvals
1. Redlands City Council Resolution No. 8337 Adopting Initial Study and Sustainable Communities Environmental Assessment Document Prepared for State Street Village Mixed Use Project.
2. Redlands City Council Resolution No. 8338 Approving Redlands General Plan Amendment No. 142.
3. Redlands City Council Resolution No. 8339 Approving Conditional Use Permit No. 1155 and Commission Review and Approval No. 933.
4. Redlands City Council Resolution No. 8340 Approving Conditional Use Permit No. 1156 and Approving Commission Review and Approval No. 934.
5. Redlands City Council Resolution No. 8341 Approving Vesting Tentative Tract Map No. 20425.
6. The Specific Plan (as defined in Subsection 1.1 (W) of this Agreement).
NOTE: The Existing Development Approvals include all plans and documents referenced in the above Existing Development Approvals including, without limitation, in the Specific Plan.
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EXHIBIT D TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Existing Land Use Regulations
1. City of Redlands 2035 General Plan, adopted December 5, 2017.
2. City of Redlands Zoning Regulations (Title 18 of the Redlands Municipal Code), as amended.
3. The Specific Plan (as defined in Subsection 1.1 (W) of this Agreement).
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EXHIBIT E TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Schedule of Impact Fees
[attached]
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT F TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Fee Credits
OWNER shall be entitled to a credit against Development Impact Fees in the amount equal to the fees otherwise determined on a per square foot basis with respect to the square footage of retail/commercial buildings to be demolished by OWNER within the existing Redlands Mall as described in the Development Plan. For example, if OWNER demolishes 1000 square feet of retail space within the Redlands Mall, OWNER is entitled to a fee credit in the amount of Development Impact Fees which would be imposed by the City on the construction of 1000 square feet of new retail space. The credits may be used for Development Impact Fees for uses other than retail space.
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RECORDED AT REQUEST OF:
Clerk, City Council
City of Redlands
WHEN RECORDED RETURN TO:
City of Redlands
35 Cajon Street, Suite 200
Redlands, CA 92373
Attention: City Clerk
Exempt from Filing Fees, Government Code Section 6103
REDLANDS MALL REDEVELOPMENT INTO STATE STREET
VILLAGE
DEVELOPMENT AGREEMENT
BETWEEN
THE CITY OF REDLANDS,
a California municipal corporation
and
VPV STATE STREET VILLAGE, LLC,
a Delaware limited liability company
Dated as of June 27, 2022, for reference purposes
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TABLE OF CONTENTS
Page
1. Definitions and Exhibits .................................................................................................... 2
1.1 Definitions.............................................................................................................. 2
1.2 Exhibits .................................................................................................................. 6
2. General Provisions ............................................................................................................. 6
2.1 Binding Effect of Agreement ................................................................................. 6
2.2 Ownership of Property ........................................................................................... 6
2.3 Term ....................................................................................................................... 6
2.4 Sale or Assignment ................................................................................................ 7
2.5 Amendment or Cancellation of Agreement ........................................................... 9
2.6 Termination ............................................................................................................ 9
2.7 Notices ................................................................................................................. 10
3. Development of the Property ........................................................................................... 11
3.1 Rights to Develop ................................................................................................ 11
3.2 Effect of Agreement on Land Use Regulations; Development Exactions ........... 11
3.3 Timing of Development ....................................................................................... 12
3.4 Development Phasing .......................................................................................... 12
3.5 Changes and Amendments ................................................................................... 12
3.6 Reservations of Authority .................................................................................... 13
3.7 Public Works ........................................................................................................ 15
3.8 [Intentionally Deleted] ......................................................................................... 15
3.9 Regulation by Other Public Agencies .................................................................. 15
3.10 Tentative Subdivision Map Extension ................................................................. 15
3.11 Vesting Tentative Maps ....................................................................................... 15
3.12 Utilities ................................................................................................................. 15
3.13 Covenants, Conditions and Restrictions .............................................................. 15
3.14 Specific CITY Actions ......................................................................................... 16
4. Public Benefits ................................................................................................................. 16
4.1 Intent .................................................................................................................... 16
4.2 Development Impact Fees.................................................................................... 17
4.3 Prepayment .......................................................................................................... 18
4.4 Dedication of On-Site Easements and Rights of Way ......................................... 18
4.5 Timing of Construction of Off-Site Infrastructure ............................................... 18
4.6 Credits .................................................................................................................. 18
5. Financing of Public Improvements .................................................................................. 18
5.1 Financing Districts ............................................................................................... 18
6. Review for Compliance ................................................................................................... 19
6.1 Periodic Review ................................................................................................... 19
6.2 Proceedings for Modification or Termination ..................................................... 19
6.3 Certificate of Agreement Compliance ................................................................. 20
7. DEFAULT AND REMEDIES ......................................................................................... 20
7.1 Remedies in General ............................................................................................ 20 Redlands Regular Meeting of 07-19-22 733 of 974
7.2 Release ................................................................................................................. 20
7.3 Termination or Modification of Agreement for Default of OWNER .................. 21
7.4 Termination of Agreement for Default of CITY ................................................. 21
8. LITIGATION ................................................................................................................... 21
8.1 Third Party Litigation Concerning Agreement .................................................... 21
8.2 Environmental Assurances ................................................................................... 21
8.3 Reservation of Rights ........................................................................................... 22
8.4 Challenge to Existing Land Use Approvals ......................................................... 22
8.5 Survival ................................................................................................................ 23
9. Mortgagee Protection ....................................................................................................... 23
10. Miscellaneous Provisions................................................................................................. 24
10.1 Recordation of Agreement ................................................................................... 24
10.2 Entire Agreement ................................................................................................. 24
10.3 Severability .......................................................................................................... 24
10.4 Interpretation and Governing Law ....................................................................... 24
10.5 Section Headings ................................................................................................. 24
10.6 Singular and Plural ............................................................................................... 24
10.7 Attorneys’ Fees .................................................................................................... 24
10.8 Estoppel Certificates ............................................................................................ 24
10.9 Time of Essence ................................................................................................... 25
10.10 Waiver .................................................................................................................. 25
10.11 No Third Party Beneficiaries ............................................................................... 25
10.12 Force Majeure ...................................................................................................... 25
10.13 Mutual Covenants ................................................................................................ 25
10.14 Successors in Interest ........................................................................................... 26
10.15 Counterparts ......................................................................................................... 26
10.16 Survival of Certain Rights and Obligations ......................................................... 26
10.17 Project as a Private Undertaking .......................................................................... 26
10.18 Further Actions and Instruments .......................................................................... 26
10.19 Eminent Domain .................................................................................................. 26
10.20 Agent for Service of Process................................................................................ 26
10.21 Authority to Execute ............................................................................................ 27
10.22 Joint and Several Obligations .............................................................................. 27
10.23 Good Faith and Fair Dealing................................................................................ 27 EXHIBIT A – Legal Description of the Property
EXHIBIT B – Map showing Property and its Location
EXHIBIT C – Existing Development Approvals
EXHIBIT D – Existing Land Use Regulations
EXHIBIT E – Schedule of Impact Fees
EXHIBIT F – Fee Credits
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STATE STREET VILLAGE
DEVELOPMENT AGREEMENT
THIS STATE STREET VILLAGE DEVELOPMENT AGREEMENT (“Agreement”) is entered into by the CITY OF REDLANDS, a California municipal corporation and general law city (hereinafter “CITY”), and VPV STATE STREET VILLAGE, LLC, a Delaware limited liability company (hereinafter “OWNER”). CITY and OWNER are sometimes referred to individually as “Party” and collectively as “Parties.” This Agreement is dated _____________, 2022 for reference purposes only; it will not become effective until the “Effective Date” (defined below).
RECITALS
A. CITY is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, pursuant to Section 65864 et seq. of the Government Code.
B. OWNER has requested CITY to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of CITY.
C. By electing to enter into this Agreement, CITY shall bind future City Councils of CITY by certain of the obligations specified herein and limit the future exercise of certain governmental and proprietary powers of CITY including the power of initiative.
D. The terms and conditions of this Agreement have undergone extensive review by CITY and the City Council and have been found to be fair, just and reasonable.
E. The best interests of the citizens of the City of Redlands (the “CITY”) and the public health, safety and welfare will be served by entering into this Agreement.
F. All of the procedures of the California Environmental Quality Act have been met with respect to the Project and this Agreement.
G. This Agreement and the Project are consistent with CITY’S Comprehensive General Plan, as amended, and the Transit Villages Specific Plan, as adopted, provided the Specific Plan is not more restrictive in terms of density or stories or heights than the other Project approvals.
H. All actions taken and approvals given by CITY have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters.
I. Development of the Property in accordance with this Agreement will provide substantial benefits to CITY and will further important policies and goals of CITY.
J. This Agreement will eliminate uncertainty in planning and provide for the orderly development of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Project, and generally serve the purposes for which development agreements under Sections 65864 et seq. of the Government Code are intended.
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K. OWNER has incurred and will in the future incur substantial costs in excess of the generally applicable requirements in order to assure the vesting of its legal rights to develop the Property in accordance with this Agreement.
COVENANTS
NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
1. Definitions and Exhibits
1.1 Definitions. The following terms when used in this Agreement shall be defined as follows:
(A) “Agreement” means this Development Agreement.
(B) “CITY” means the City of Redlands, a municipal corporation, organized and existing pursuant to the laws of the State of California. (C) “Completed,” “Completion,” and initially capitalized variants thereof mean, with respect to that element of the Project to which the term relates, that Owner has received a certificate of occupancy (including a temporary certificate of occupancy). (D) “Development” means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project, including, but not limited to: grading; the construction of infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. “Development” includes the maintenance , repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof if undertaken during the Term of this Agreement. (E) “Development Agreement Policies” means those certain development agreement procedures and requirements established in accord with City Municipal Code Chapter 18.220.
(F) “Development Approvals” means all permits and other entitlements for use or construction and subdivisions subject to approval or issuance by CITY in connection with the Development of the Property, including, but not limited to:
(1) specific plans and specific plan amendments, including the Specific Plan;
(2) tentative and final subdivision and parcel maps;
(3) site plans/design review (Commission Review and Approval); (4) conditional use permits;
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(5) zoning;
(6) demolition, grading and building permits; and
(7) All environmental approvals under the California Environmental Quality Act.
(G) “Development Exaction” means any requirement of CITY in connection with or pursuant to any Land Use Regulation or Development Approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests, including those imposed in accord with the MMRP (as defined in paragraph (P), below). “Development Exaction” includes Development Impact Fees. (H) “Development Impact Fee” means a monetary exaction other than a tax or special assessment, whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by CITY in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include fees for processing applications for governmental regulatory actions or approvals or fees collected under development agreements adopted pursuant to Article 2.5 of the Governments Code (commencing with Section 65864).
(I) “Development Plan” means the Existing Development Approvals and the Existing Land Use Regulations applicable to the Development of the Property, and the more particular plan for the development of the Property as further set forth in Exhibit C. (J) “Effective Date” means the date the ordinance approving this Agreement becomes effective.
(K) “Existing Development Approvals” means all Development Approvals approved or issued prior to the Effective Date. “Existing Development Approvals” include the Development Approvals described on the attached Exhibit C and all other Development Approvals which are a matter of public record on the Effective Date. Notwithstanding any provision herein to the contrary, “Development Approvals” include the Specific Plan. (L) “Existing Land Use Regulations” means all Land Use Regulations in effect on the Effective Date. “Existing Land Use Regulations” include the Land Use Regulations incorporated herein as Exhibit D and all other Land Use Regulations which are a matter of public record on the Effective Date. Notwithstanding any provision herein to the contrary, “Existing Land Use Regulations” include the Specific Plan.
(M) “General Plan Amendment” means the amendment to CITY’S General Plan identified in CITY records as GPA No. 142, providing for the redesignation of five parcels on a portion of the Property necessary to permit the Development of the Property as described herein and approved by City Council Resolution No. 8338 on May 10, 2022.
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(N) “Land Use Regulations” means all CITY ordinances, policies , standards resolutions, codes, rules, regulations and official policies, including without limitation the Specific Plan, governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of proposed buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the Development of the Property. “Land Use Regulations” do not include any CITY ordinance, resolution, code, rule, regulation, or official policy governing:
(1) the conduct of businesses, professions, and occupations; (2) taxes and assessments;
(3) the control and abatement of nuisances;
(4) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; or (5) the exercise of the power of eminent domain.
(O) “Mitigation Monitoring and Reporting Program” or “MMRP” means the mitigation monitoring and reporting program for assessing and ensuring compliance with required environmental impact mitigation measures approved by City Council Resolution No. 8337, on May 10, 2022 in conjunction with the City Council’s certification of the SCEA. (P) “Mortgagee” means a mortgagee of a mortgage, a beneficiary under a deed of trust, or any other security-device lender, and their successors and assigns. (Q) “OWNER” means the persons and entities listed as OWNER on page 1 of this Agreement and their successors in interest to all or any part of the Property. (R) “Project” means the Development of the Property contemplated by the Development Plan, as such Development Plan may be further defined, enhanced, or modified pursuant to the provisions of this Agreement.
(S) “Property” means the real property described on Exhibit A and shown on Exhibit B to this Agreement.
(T) “Reservations of Authority” means the rights and authority excepted from the assurances and rights provided to OWNER under this Agreement and reserved to CITY under Section 3.6 of this Agreement.
(U) “Related General Plan Amendment” means that certain General Plan Amendment related to the Specific Plan, which will be adopted by CITY when the Specific Plan is adopted and which when effective shall automatically be deemed to be included within the Existing Development Approvals and the Existing Land Use Regulations; on condition that the Related General Plan Amendment is not materially inconsistent with those certain land uses otherwise permitted pursuant to this Agreement in that they are the equivalent of a “minor” Redlands Regular Meeting of 07-19-22 738 of 974
deviation therefrom, as such term is otherwise used and applied regarding scope and effect to different circumstances in Section 3.5. In order to attempt to avoid more than a “minor” deviation, CITY will reasonably confer with OWNER prior to adopting the Related General Plan Amendment.
(V) “Secured Entitlements Date” means the date on which both (i) CITY has approved the General Plan Amendment, Tract Map, and the SCEA/MMRP, and all other Development Approvals required by CITY to permit OWNER to obtain a demolition , grading and building permit for the vertical construction of the first (1st)-to-be-developed building described in the Development Plan (individually, an “Approval” and, collectively, “Approvals”) in the substantive form requested by OWNER, subject only to those changes to which OWNER affirmatively consents in writing, and (ii) each and all of the Approvals have become Final. The Approvals will become “Final” when (i) thirty (30) days following the date of the CITY’S approval of the last Approval and no litigation has been filed, or (ii) if litigation is filed, the litigation has been denied by the trial court and the time to appeal, petition for certiorari or move for reargument or rehearing of the trial court’s ruling has expired and no appeal, petition for certiorari or other proceedings for reargument or rehearing is then pending, or (iii) if an appeal, writ of certiorari, reargument or rehearing of the trial court’s ruling has been sought, the Approvals shall have been affirmed by the highest court to which the Approvals were appealed, or certiorari has been denied, or if reargument or rehearing of the trial court’s ruling was sought, the time to take any further appeal, petition for certiorari or move for reargument or rehearing has expired.
Either Party may send written notice to the other that sets forth the sending Party’s assertion of when the Secured Entitlements Date has occurred. The receiving Party must respond within thirty (30) business days following receipt as to its concurrence or disapproval. In the event the receiving Party fails to respond within the time period set forth in the preceding sentence , the “Secured Entitlements Date” shall be deemed to be as set forth in the sender’s notice . (W) “Specific Plan” means the draft “Transit Villages Specific Plan” identified in CITY records as SP No. 65; provided that upon its adoption by CITY, the final Transit Villages Specific Plan, including without limitation all documents certified or adopted relative thereto pursuant to the California Environmental Quality Act, shall automatically be substituted for the draft Specific Plan for purposes hereof, and shall then be deemed to be the Specific Plan. (X) “Subdivision Map Act” means Government Code Sections 66410, et seq. (Y) “Subsequent Development Approvals” means all Development Approvals required subsequent to the Effective Date in connection with the Development of the Property. (Z) “Subsequent Land Use Regulations” means any Land Use Regulations adopted and effective after the Effective Date.
(AA) “Sustainable Communities Environmental Assessment or SCEA” means that certain environmental document prepared in accord with the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) and entitled State Street Village Project Sustainable Communities Environmental Assessment (SCH No. 2021110117). The SCEA for the Project was certified by City Council Resolution No. 8337 on May 10 , 2022.
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(BB) “Term” has the meaning given in Section 2.3 of this Agreement. (CC) “Tract Map” means the subdivision map identified in CITY records as Vesting Tentative Tract Map No. 20425 and approved by the CITY with City Council Resolution No. 8341 on May 10 , 2022.
1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement:
Exhibit A – Legal Description of the Property
Exhibit B – Map showing Property and its Location
Exhibit C – Existing Development Approvals
Exhibit D – Existing Land Use Regulations
Exhibit E – Schedule of Impact Fees
Exhibit F – Fee Credits
2. General Provisions
2.1 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. The Development of the Property is hereby authorized and shall be carried out only in accordance with the provisions of this Agreement.
2.2 Ownership of Property. OWNER represents and covenants that it is the owner of fee simple title to the Property.
2.3 Term.
(A) The initial term of this Agreement shall commence on the Effective Date and shall continue for a period of fifteen (15) years thereafter, unless this term is modified or extended pursuant to the provisions of this Agreement.
(B) The Term of this Agreement may be extended in accord with Section 2.5. (C) The term of all subdivision maps included within the Development Approvals shall be co-terminus with the Term of the Agreement. (D) Thereafter, OWNER shall have no vested right under this Agreement regardless of whether OWNER has paid any Development Impact Fee. (E) Notwithstanding the foregoing, this Agreement shall be terminated effective as of the fifth (5th) anniversary of the Effective Date (“Construction Commencement Deadline”) subject to Section 10.12, unless OWNER shall have commenced, and diligently and continuously proceeded with construction of Phases 1A or 1B of Alternative 1 or Phase 1 of Alternative 2 of the Project, as described in that certain State Street Village Phasing Plan attached Redlands Regular Meeting of 07-19-22 740 of 974
to Redlands City Council Resolution Nos. 8339, 8340 and 8341 approving the Conditional Use Permit, Commission Review & Approval, and Tentative Tract Map.
2.4 Sale or Assignment.
(A) OWNER may sell, transfer, or assign the Property, in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act) to any person, partnership, joint venture, affiliate, firm, or corporation at any time; provided, however, that any such sale, transfer or assignment must be made in compliance with the following conditions:
(1) Any sale, transfer or assignment of any right or interest under this Agreement must be made together with the sale, transfer or assignment of all or a part of the Property.
(2) Concurrent with any such sale, transfer, or assignment, or within twenty (20) business days thereafter, OWNER shall notify CITY, in writing, of such sale, transfer, or assignment and shall provide CITY with an agreement, in a form reasonably acceptable to CITY, executed by the purchaser, transferee, or assignee and providing therein that the purchaser, transferee, or assignee, effective on acquisition of title to the affected property expressly and unconditionally assumes all the duties, covenants, agreements, waivers and obligations of OWNER under this Agreement to the extent applicable to the part of the Property being transferred.
(a) The qualifications and identity of OWNER are of particular concern to CITY. It is because of those qualifications and identity that CITY has entered into this Agreement with OWNER. For the period of the Term, no voluntary or involuntary successor in interest of OWNER shall acquire any rights or (i) powers under this Agreement, nor shall OWNER make any total or partial sale; transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the Property or the Project (any of which is hereafter referred to as a “Transfer”) without prior written approval of CITY, except as expressly set forth hereinafter.
Any proposed total or partial sale, transfer, conveyance, assignment, subdivision, refinancing or lease of the whole or any part of the Property or the Project without CITY consent will constitute a default under this Agreement.
(b) Notwithstanding any other provision of this Agreement to the contrary, CITY approval of a Transfer shall not be required in connection with any of the following:
(i) Any Transfers to an entity or entities in which
OWNER retains a minimum of fifty-percent (50%) of the ownership or beneficial interest and retains management and control of the transferee entity or entities. (ii) The Transfer or dedication of any portion of the
Property to CITY or other appropriate governmental agency, or the granting of easements or permits to facilitate construction of the Project.
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(iii) Any requested assignment/encumbrance for
financing purposes including the grant of a deed of trust to secure the funds necessary for land acquisition, construction and permanent financing of the Project. (iv) In the event of an assignment or Transfer by
Developer under subparagraphs (i) through (iii), inclusive, above not requiring the CITY’S prior approval, OWNER nevertheless agrees that at least thirty (30) days prior to such assignment it shall give written notice to CITY of such assignment or Transfer and satisfactory evidence that the assignee or transferee has assumed jointly with OWNER the obligations of this Agreement. (c) CITY agrees that it will not unreasonably withhold approval of a request made pursuant to this Section 2.4(A), provided OWNER delivers written notice to CITY requesting such approval. Such notice shall be accompanied by sufficient evidence regarding the proposed assignee’s or transferee’s development and/or operational qualifications and experience, and its financial commitments and resources, in sufficient detail to enable CITY to evaluate the proposed assignee or purchaser pursuant to the criteria set forth in this Section 2.4(A) and as reasonably determined by CITY. CITY shall evaluate each proposed transferee or assignee on the basis of its development and/or qualifications and experience in the operation of facilities similar to the Project, and its financial commitments and resources, and may reasonably disapprove any proposed transferee or assignee, during the Term, which CITY determines does not possess equal or better qualifications than OWNER. An Assignment, Assumption and Release Agreement in form satisfactory to the City Attorney shall also be required for all proposed assignments. Within thirty (30) days after the receipt of OWNER’S written notice requesting CITY approval of an assignment or transfer pursuant to this Section 2.4(A), CITY shall either approve or disapprove such proposed assignment or transfer, or shall respond in writing by stating what further information, if any, CITY reasonably requires in order to determine the request complete and determine whether or not to grant the requested approval. Upon receipt of such a response, OWNER shall promptly furnish to CITY such further information as may be reasonably requested.
Any sale, transfer or assignment not made in strict compliance with the foregoing conditions and requirements shall constitute a default by OWNER under this Agreement.
Notwithstanding the failure of any purchaser, transferee, or assignee to execute the agreement required by subparagraph (2) above ,the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to such purchaser , transferee or assignee until and unless such agreement is executed. (B) Notwithstanding any sale, transfer, or assignment, a transferring OWNER shall continue to be obligated under this Agreement unless such transferring OWNER is given a release in writing by CITY, which release shall be provided by CITY upon the full satisfaction by such transferring OWNER of the following conditions:
(1) OWNER no longer has a legal or equitable interest in the part of the Property transferred.
(2) OWNER is not then in default under this Agreement.
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(3) OWNER has provided CITY with the notice and executed agreement required under subparagraph (A)(2), above.
(4) The purchaser, transferee, or assignee provides CITY with security equivalent to any security previously provided by OWNER to secure performance of its obligations under this Agreement.
(C) Any subsequent sale, transfer, or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section 2.4.
(D) Upon issuance of a certificate of occupancy for a building on the applicable lot and the payment of all fees for such lot set forth in this Agreement, a purchaser, transferee, or assignee of a commercial or industrially-zoned lot, which has been finally subdivided as provided for in the Development Plan and for which a commercial or industrial plot plan for development has been approved, shall be entitled to submit a written request to CITY to release said lot from any obligations under this Agreement. Likewise , upon the sale , lease or other transfer of any residential unit pursuant to a final subdivision map of any residential lot or condominium , such residential unit and the owner thereof shall be deemed released from all obligations under this Agreement and may request a written release from CITY. Within thirty (30) days following its receipt of such request, CITY shall review, and if the above conditions are satisfied, shall approve the request for release and notify the purchaser, transferee, or assignee in writing thereof. CITY will execute in recordable form and deliver any instrument as may be requested to evidence the release described in this subparagraph (D). Except as otherwise provided in this Agreement, no such release approved pursuant to this subparagraph (D) shall cause a release of OWNER from its duties and obligations under this Agreement. With respect to the transfer and release referenced in this Section 2.4 the obligations hereunder are not joint and several but several as to portions of the Property transferred as provided in this Section.
2.5 Amendment or Cancellation of Agreement. This Agreement may be amended or canceled in whole or in part only by written consent of all Parties in the manner provided for in Government Code Section 65868 and the Development Agreement Policies. This provision shall not limit any remedy of CITY or OWNER provided by this Agreement.
2.6 Termination.
(A) This Agreement shall terminate and be of no further effect upon the occurrence of any of the following events:
(1) Expiration of the Term.
(2) Entry of a final judgment setting aside, voiding, or annulling the adoption of the ordinance approving this Agreement.
(3) The adoption of a referendum measure overriding or repealing the ordinance approving this Agreement.
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(4) The completion of the Project as a whole or applicable phase, as evidenced by the issuance of all required occupancy permits and acceptance by CITY (or other applicable public agency) of all required public dedications. It is anticipated that completion of the Project as evidenced by issuance of occupancy and required public dedications, may occur in phases as reasonably agreed upon by CITY and OWNER.
(5) Termination of this Agreement in accord with any of the termination provisions set forth in this Agreement.
(B) Termination of this Agreement will not operate to terminate any Development Approval in effect prior to the termination or affect any vested right previously acquired by OWNER under applicable California law. Nothing in this Agreement eliminates, limits, expands, or modifies CITY’S authority to adopt, amend or rescind the Specific Plan or other Development Approvals, subject, however, to OWNER’S vested development rights granted herein , acquired under California law and provided all applicable legal requirements and legal limitations that would be applicable to CITY’S actions in the absence of this Agreement. (C) Upon the termination of this Agreement, neither Party shall have any further right or obligation hereunder, except with respect to any obligation to have been performed prior to such termination, or with respect to any default which occurred prior to such termination, or with respect to any obligations which are specifically set forth as surviving this Agreement.
2.7 Notices.
(A) As used in this Agreement, “notice” includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment, or other communication required or permitted hereunder. (B) All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) by overnight courier, on the first (1st) business day after being delivered to a recognized overnight courier. All notices shall be addressed as follows:
If to CITY: City of Redlands
35 Cajon Street, Suite 200
Redlands, CA 92335
Attn: City Manager
Telephone: (909) 350-7600
with a copy to: City of Redlands
35 Cajon Street, Suite 200
Redlands, CA 92373
Attn: Redlands City Attorney
Telephone: (909) 350-7600
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If to OWNER: VPV STATE STREET VILLAGE, LLC
c/o Village Partners
4350 Von Karman Avenue, Suite 200
Newport Beach, CA 92660
Attn: Don Henry
Telephone: (949) 697-7767
And: VPV STATE STREET VILLAGE, LLC
c\o Village Partners
4350 Von Karman Avenue, Suite 200
Newport Beach, CA 92660
Attn: Michael Morris
Telephone: (949) 433-8568
with a copy to: Dzida, Carey &Steinman
3 Park Plaza, Suite 750
Irvine, CA 92614
Attn: Steven J. Dzida, Esq.
Telephone: (949) 399 0363
Either Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a Party or an officer or representative of a Party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.
3. Development of the Property
3.1 Rights to Develop. Subject to the limitations of this Agreement, including the Reservations of Authority, OWNER shall have the vested right to develop the Property in accordance with, and to the extent of, the Development Plan. The Project shall remain subject to all Subsequent Development Approvals required to complete the Project as contemplated by the Development Plan. Except as otherwise provided in this Agreement, the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Development Plan. OWNER shall comply with all mitigation measures required to be undertaken pursuant to any document prepared in compliance with the California Environmental Quality Act with respect to the Project.
3.2 Effect of Agreement on Land Use Regulations; Development Exactions. (A) Except as otherwise provided under the terms of this Agreement, including the Reservations of Authority, the ordinances, rules, regulations, and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to the Development of the Property shall be the Existing Land Use Regulations. In connection with any Subsequent Development Approval, CITY shall exercise its Redlands Regular Meeting of 07-19-22 745 of 974
discretion in accordance with the Development Plan and this Agreement, including, but not limited to, the Reservations of Authority. CITY shall accept for processing, review, and action all applications for Subsequent Development Approvals and such applications shall be processed in the normal manner for processing such matters.
(B) Unless otherwise permitted by the Reservations of Authority, CITY may not impose any Development Exaction on the Project, including in connection with the Subsequent Development Approvals, that is inconsistent with the Development Plan, the MMRP, or this Agreement.
3.3 Timing of Development. The Parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, (1984) 37 Cal.3d 465, that the failure of the Parties therein to provide for the timing of development resulted in a later adopted initiative restricting the timing of development to prevail over such Parties’ agreement, it is CITY’S and OWNER’S intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment, subject only to any timing or phasing requirements set forth in the Development Plan.
3.4 Development Phasing. The Development of the Property is subject to any timing and phasing requirements established by and set forth in the Development Plan.
3.5 Changes and Amendments.
(A) The Parties acknowledge that refinement and further development of the Project may demonstrate that changes are appropriate and mutually desirable in the Existing Development Approvals. If OWNER finds that a change in the Existing Development Approvals is necessary or appropriate, OWNER may apply for a Subsequent Development Approval to effectuate such change and CITY shall process and act on such application in accordance with the Existing Land Use Regulations, except as otherwise provided by this Agreement, including the Reservations of Authority. If approved, any such change in the Existing Development Approvals shall be incorporated herein as an addendum to Exhibit C and may be further changed from time to time as provided in this Section 3.5.
(B) Unless otherwise required by law, as determined in CITY’S reasonable discretion, a change to the Existing Development Approvals shall be deemed “minor” and may be approved by the City Manager or City Manager’s designee and not require an amendment to this Agreement provided the change does not:
(1) Materially increase the density or intensity of use of the Property as a whole;
(2) Materially increase the square footage of buildings, as long as the maximum height of permitted buildings is not increased; Redlands Regular Meeting of 07-19-22 746 of 974
(3) Materially alter a requirement for the reservation or dedication of land for public purposes; or,
(4) Modify the Project to the extent a subsequent or supplemental environmental impact report pursuant to Section 21166 of the Public Resources Code is required.
For purposes of this Section 3.5(B), materially” shall mean in excess of five percent (5%) of the referenced development parameter.
3.6 Reservations of Authority.
(A) Notwithstanding any other provision of this Agreement, the following Subsequent Land Use Regulations shall apply to the Development of the Property:
(1) Processing fees and charges of every kind and nature imposed by CITY to cover the actual costs to CITY of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued. (2) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals, and any other matter of procedure.
(3) Regulations governing construction standards and specifications applicable to public and private improvements or affecting health and safety including, without limitation, the CITY’S Building Code, Plumbing Code, Mechanical Code, Electrical Code, and Fire Code.
(4) Regulations imposing Development Exactions; provided however, that no such subsequent adopted Development Exaction shall be applicable to development of the Property unless such Development Exaction is applied uniformly to development, either throughout the CITY or within a defined area of benefit which includes the Property. No such subsequently adopted Development Exaction shall apply to completed improvements with respect to which the owner has vested rights or if its application to the Property would physically prevent development of the Property for the uses and to the density or intensity of development set forth in the Development Plan. In the event such subsequently adopted Development Exaction fulfills the same purposes, in whole or in part, as the fees set forth in Section 4.2 of this Agreement, CITY shall allow a credit against such subsequently adopted Development Exaction for the fees paid under Section 4.2 of this Agreement to the extent such fees fulfill the same purposes.
Notwithstanding the foregoing or any provision in this Agreement to the contrary, CITY shall have the right to lower or increase Development Impact Fees from time to time, in its sole discretion, and any and all revised Development Impact Fees shall be applicable to the Project at the time they are due for payment.
(5) Regulations which may be in conflict with the Development Plan but which are uniformly applied by CITY to similar uses and reasonably necessary to eliminate or mitigate a serious and immediate threat to public health or safety. To the extent possible, any such regulations shall use the least restrictive means of accomplishing the identified health and safety Redlands Regular Meeting of 07-19-22 747 of 974
concern, and be applied and construed so as to provide OWNER with the rights and assurances provided under this Agreement.
(6) Regulations which do not conflict with the Development Plan. As one example, any regulation, whether adopted by initiative or otherwise, limiting the rate or timing of the Development of the Property shall be deemed to conflict with the Development Plan and shall, therefore, not be applicable to the Development of the Property. (7) Regulations which conflict with the Development Plan if OWNER has given written consent to the application of such regulations to the Development of the Property. (8) Regulations that impose, levy, alter or amend fees, or Land Use Regulations relating to future services (but not infrastructure or improvements funded by other Development Exactions ), including, without limitation, trash can placement, service charges and limitations on vehicle parking.
(9) Regulations of other public agencies, including Development Impact Fees adopted or imposed by such other public agencies, although collected by CITY. (B) This Agreement shall not prevent CITY, in acting on Subsequent Development Approvals, from applying Subsequent Land Use Regulations which do not conflict with the Development Plan, nor shall this Agreement prevent CITY from denying or conditionally approving any Subsequent Development Approval on the basis of the Existing Land Use Regulations or on the basis of any Subsequent Land Use Regulation not in conflict with the Development Plan. For all purposes of this Agreement generally, and this Section 3.6 specifically, Land Use Regulations will be deemed to conflict with the Development Plan and this Agreement if the Land Use Regulations seek to, whether as part of a specific or general enactment that applies to the Property or Project: (i) limit or reduce the density, intensity, height or size of structures, or modify the type of Development, on the Property; (ii) regulate the timing or sequencing of the Development of the Property in any manner; (iii) require any additional on-site or off-site improvements not required by the Development Plan to be constructed or paid for by OWNER or a subsequent owner of the Property; (iv) materially increase the costs of the Development or materially reduce the value of the Property; or (v) restrict or modify the use of the Property in any manner or degree other than as set forth in the Development Plan. The permitted uses for development of the Project and rights granted hereunder are specified in Redlands Municipal Code Section 18.92 (C-3 General Commercial District) and the Specific Plan, and are incorporated herein by this reference.
(C) In the event that State or Federal laws or regulations enacted after the Effective Date of this Agreement prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations; provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce.
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(D) The Parties acknowledge and agree that CITY is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to CITY all of its police power which cannot be so limited. The CITY reserves all such power and authority which cannot be restricted by contract or is not restricted by vested rights as otherwise established under applicable law.
3.7 Public Works. If OWNER is required by this Agreement to construct any public works facilities which will be dedicated to CITY or any other public agency upon completion, then OWNER shall, if required by applicable laws to do so, perform such work in the same manner and subject to the same requirements as would be applicable to CITY or such other public agency should it have undertaken such construction.
3.8 [Intentionally Deleted]
3.9 Regulation by Other Public Agencies. It is acknowledged by the Parties that other public agencies not within the control of CITY possess authority to regulate aspects of the development of the Property separately from or jointly with CITY and this Agreement does not limit the authority of such other public agencies.
3.10 Tentative Subdivision Map Extension. In accord with Section 66452.6 of the Government Code, every tentative parcel and subdivision map approved in connection with Development of the Property will be valid for a period equal to the longer of: (1) the remaining period of the Term of this Agreement as of the time of tentative map approval; and (2) the longest period authorized by the Subdivision Map Act, City Municipal Code, or other applicable law as of the time of tentative map approval.
3.11 Vesting Tentative Maps. If any tentative or final subdivision map, or tentative or final parcel map, heretofore or hereafter approved in connection with development of the Property, is a vesting map under the Subdivision Map Act (Government Code Section 66410 et seq.) and if this Agreement is determined by a final judgment to be invalid or unenforceable insofar as it grants a vested right to develop to OWNER, then and to that extent the rights and protections afforded OWNER under the laws and ordinances applicable to vesting maps shall supersede the provisions of this Agreement. Likewise OWNER’S vested development rights under applicable law shall not be affected by the total or partial invalidation of this Agreement. Except as set forth above, the Development of the Property shall occur only as provided in this Agreement and the provisions in this Agreement shall be controlling over any conflicting provision of law or ordinance concerning vesting maps.
3.12 Utilities. The Project shall be connected to all utilities necessary to provide adequate water, sewer, gas, electric, and other utility service to the Project. OWNER shall contract with CITY for CITY-owned or operated utilities serving the Project for such prices and on such terms as may be mutually agreed to between the Parties.
3.13 Covenants, Conditions and Restrictions. OWNER shall have the ability to reserve and record such covenants, conditions, and restrictions (CC&Rs) against the Property as OWNER deems appropriate, in its sole and absolute discretion. Such CC&Rs may not conflict with this Agreement or the General Plan. Before recording any CC&Rs, OWNER shall provide a Redlands Regular Meeting of 07-19-22 749 of 974
copy of the CC&Rs to CITY for review and approval by the City Attorney. The City Attorney’s review shall be limited to determining if the CC&Rs substantially comply with this Agreement.
Within thirty (30) days after receiving a copy of the proposed CC&Rs from OWNER, the City Attorney shall provide OWNER with either (i) a statement that the CC&Rs comply with this Agreement (“CC&R Approval”) or (ii) written comments identifying each aspect of the CC&Rs which the City Attorney believes not to be in compliance with this Agreement (a “Statement of Non-Compliance”). If the City Attorney fails to provide OWNER with either CC&R Approval or a Statement of Non-Compliance within thirty (30) days following a written request by OWNER, CITY shall be deemed to have approved the CC&Rs and OWNER may record the CC&Rs against the Property. If the City Attorney provides a Statement of Non-Compliance, OWNER shall have thirty (30) days in which to respond to the Statement of Non-Compliance. Upon submittal of OWNER’S response, the procedure described above for the initial submittal and City Attorney review of proposed CC&Rs shall again be followed. This procedure shall be followed until OWNER either (1) receives CC&R Approval, (2) files an action for declaratory relief in San Bernardino County Superior Court seeking a judicial determination of the compliance of the proposed CC&Rs, or (4) agreement is otherwise reached between the Parties allowing for the recording of the CC&Rs. The CC&Rs may run with the land and bind OWNER’S successors and assigns.
3.14 Specific CITY Actions.
(A) At the cost and expense of OWNER, CITY shall reprogram and modify existing State Street/Orange Street traffic signal to efficiently incorporate the needs of the Project.
Any new traffic signal and related improvements shall be installed by and at the cost and expense of OWNER.
(B) CITY shall, subject to reasonable health and safety conditions, issue annual permits for up to 24 events in the Project plaza on private property with a single public notice in advance or if allowed by applicable law waive such requirement and issue such permit(s) administratively. OWNER shall provide CITY with a description of each event and associated marketing and public notices of same in advance of each event. All of CITY’S existing special event or similar permit approval requirements shall be applicable, including all required findings and imposition of conditions thereunder and including the payment of then current application fees to CITY.
(C) CITY shall, subject to reasonable health and safety conditions and all other requirements of law applicable to street closures at the time of each applicable event, issue an annual permit for up to 12 events allowing closure of State Street and Third Street, if public streets, for civic and public events as provided in the preceding paragraph. (D) CITY shall use commercially reasonable efforts to eliminate all public parking requirements within the 2017 Parking Agreement between City and Brixton.
4. Public Benefits
4.1 Intent. The Parties acknowledge and agree that the Development of the Property will result in substantial public needs which will not be fully met by the Development Plan and Redlands Regular Meeting of 07-19-22 750 of 974
further acknowledge and agree that this Agreement confers substantial private benefits on OWNER which should be balanced by commensurate public benefits. Accordingly, the Parties intend to provide consideration to the public to balance the private benefits conferred on OWNER by providing more fully for the satisfaction of the public needs resulting from the Project , including the following:
(A) OWNER has master-planned the Project and shall develop the Project in logical phases to facilitate public improvements.
(B) OWNER shall construct all public and private streets and infrastructure required to achieve the housing and job benefits to be derived from the Project. (C) OWNER shall implement a marketing and leasing strategy which will initially target the provision of housing to local and regional tenants. (D) Separate and apart from, and in addition to, the provisions set forth in Subsection 3.14(B), OWNER shall grant to CITY, and record in the office of the San Bernardino County Recorder’s Office, a memorandum of license agreement in a form and substance approved by the City Attorney, which agreement shall provide the CITY a non-exclusive license (“License”) to enter upon the Project plaza, for purposes of enabling CITY to conduct or oversee public or private events during up to twelve (12) days in any calendar year; provided that CITY shall provide notice to OWNER of any such proposed use at least thirty (30) days prior to commencement of such proposed use, and such proposed use shall be allowed only if it does not conflict with any confirmed prior reservation of the applicable area by OWNER for a specific event. The License shall include commercially reasonable lender protection/estoppel provisions and indemnification of the Owner for its use.
(E) OWNER shall re-establish historical State Street and Third Street through the Project site.
(F) OWNER shall establish public and private paseos as described in the Development Plan to facilitate public use and recreation of such areas. (G) OWNER shall unbundle parking from residential units such that separate rental fees are charged for parking and living space.
4.2 Development Impact Fees.
(A) CITY has adopted a Development Impact Fee program designed to offset the costs of mitigating environmental and other impacts caused by development upon public facilities and improvements.
(B) During the Term of this Agreement, the only categories of Development Impact Fees (separate and apart from the amount of each Development Impact Fee) that will be applicable to the Project are those Development Impact Fees specified in the “Schedule of Development Impact Fees” attached as Exhibit E (“Schedule of Impact Fees”). OWNER understands and agrees that CITY is in the process of updating Development Impact Fees. During the Term of this Agreement, no categories of Development Impact Fees other than those specified Redlands Regular Meeting of 07-19-22 751 of 974
in the Schedule of Impact Fees adopted by CITY as of the Effective Date will be applicable to the Project. OWNER further understands and agrees that the amount of each Development Impact Fee may be lowered or increased from time to time, in the discretion of CITY and any and all revised Development Impact Fees shall be applicable to the Project at the time they are due for payment.
(C) Nothing in this Section 4.2 limits the right of any other local, regional, state, or federal agency or district to impose upon the Project otherwise lawful fees, including non-CITY fees imposed by these agencies or districts and collected by CITY for the benefit of those agencies or districts.
(D) Development Impact Fees shall be paid by OWNER to CITY at such times as they are ordinarily due and payable to CITY.
4.3 Prepayment. In no event shall the prepayment of any Development Impact Fees required hereunder establish a vested right on the part of OWNER or any other owner of the Property or any person or entity with an interest therein to develop the Project or the Property following the expiration, cancellation or termination of the Term of this Agreement (but termination of this Agreement shall not constitute a forfeiture of Owner’s interest in such prepaid fees , rights to a credit against then applicable Development Impact Fees or vested rights previously obtained by Owner ). Following the expiration, cancellation or termination of this Agreement, all Development Impact Fees then in effect shall be applicable to the Project and Property notwithstanding any provision of this Agreement and notwithstanding the prepayment of the Development Impact Fees set forth in Exhibit D, any increase or amendment of any Development Impact Fee, or any combination thereof.
4.4 Dedication of On-Site Easements and Rights of Way. OWNER shall dedicate to CITY all on-site rights of way and easements deemed necessary for public improvements, in CITY’S sole discretion, within 15 days of receipt of written demand from CITY.
4.5 Timing of Construction of Off-Site Infrastructure. Approval of any building permits on the Property shall be conditioned upon CITY’S determination, in its sole discretion, that sufficient progress is being made on construction of off-site infrastructure serving development of OWNER’S Property.
4.6 Credits. OWNER shall be entitled to credit against the fees required pursuant to Section 4.2 for the dedication of land, the construction of improvements, or the payment of fees as specifically set forth in Exhibit F.
5. Financing of Public Improvements
5.1 Financing Districts.
(A) OWNER may propose and if requested by CITY shall cooperate in the formation of a special assessment district, community facilities district, SCIP, EIFD or alternate financing mechanism, public grants (collectively, a “Financing District”) to pay for the construction or maintenance of those public improvements required by the Development Plan. If a Financing District is formed, OWNER will be reimbursed from the proceeds of any debt Redlands Regular Meeting of 07-19-22 752 of 974
financing issued by the Financing District to the extent that OWNER spends funds for reasonable costs and expenses which are reimbursable under the instruments and law applicable to the debt financing. Tax rates or assessments of the Financing District may not exceed CITY’S then-current policies regarding public financing districts.
(B) This Section 5.1 is not a commitment by CITY to adopt a resolution of formation to form a Financing District or to approve Financing District debt financing. OWNER acknowledges that the adoption and approval of a resolution of formation is a legislative act within CITY’S unencumbered discretion. Likewise, OWNER is not obligated by this Agreement to approve the formation of a Financing District and OWNER reserves all of its legal rights in that regard.
(C) Notwithstanding any other provision in this Section 5.1, OWNER shall have the right, in OWNER’s discretion, to pursue public financing mechanisms to fund the improvement of State Street, Third Street and Plaza Street, either as public or private streets, as long as such improvements are consistent with the Land Use Regulations. For this purpose, CITY shall reasonably cooperate with OWNER to obtain such financing consistent with CITY’s right to approve a proposed mechanism to the extent such approval constitutes a legislative act.
6. Review for Compliance
6.1 Periodic Review.
(A) As required by California Government Code Section 65865.1, and in accordance with Chapter 18.220 of the Redlands Municipal Code (“Chapter 18.220”) the Community Development Director, or person occupying a similar position (“Community Development Director”), will review this Agreement annually, on or before each anniversary of the Effective Date. The purpose of each review will be to ascertain OWNER’S good faith material compliance with this Agreement during the immediately prior year. OWNER shall submit an annual monitoring report (“Annual Monitoring Report”), in a form prepared and approved by the Community Development Director, as set forth in Chapter 18.220. The Annual Monitoring Report must be accompanied by the then-current annual review and administration fee set by the City Council, which may not exceed CITY’S reasonably estimated fees and costs of reviewing OWNER’S compliance with this Agreement.
(B) The City Council may order a special review of OWNER’S compliance with this Agreement at any time.
(C) The annual review and any other special review shall be conducted in accordance with Chapter 18.220, and OWNER will be required to demonstrate its good faith compliance with this Agreement. OWNER shall have the burden of proof concerning the issue.
6.2 Proceedings for Modification or Termination.
If OWNER fails to cure, or to commence to cure, as applicable, the matters constituting the basis for the City Council’s preliminary finding of non-compliance under Chapter 18.220 in the manner described in Section 7.3, then CITY may proceed to modify or Redlands Regular Meeting of 07-19-22 753 of 974
terminate this Agreement, but only by the procedures set forth in Chapter 18.220 and in Section 7.3.
6.3 Certificate of Agreement Compliance. If OWNER is found or deemed to be in material compliance with this Agreement, then CITY will issue a “Certificate of Agreement Compliance” (“Certificate”) to OWNER stating that this Agreement remains in effect and OWNER is not in default of this Agreement. The Certificate must be in recordable form, contain information necessary to communicate constructive record notice of the finding of compliance, state whether the Certificate is issued after an annual or special review, and state the anticipated date of the next annual review. OWNER may record the Certificate with the San Bernardino County Recorder. Whether or not the Certificate is relied upon by assignees, other transferees or OWNER, CITY shall not be bound by the Certificate if a default existed at the time of the annual periodic or special review, but was concealed from CITY or its reviewing person or body.
7. DEFAULT AND REMEDIES
7.1 Remedies in General. It is acknowledged by the Parties that CITY would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof. In general, each of the Parties hereto may pursue any remedy at law or equity ( including but not limited to specific performance and/or injunctive relief) available for the breach of any provision of this Agreement, except that CITY shall not be liable in damages (such damages do not include attorney’s fees with respect to the enforcement of the equitable remedies authorized above ) to OWNER, or to any successor in interest of OWNER, or to any other person, and OWNER covenants not to sue for damages or claim any damages:
(A) For any breach of this Agreement or for any cause of action that arises out of this Agreement; or
(B) For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Agreement; or
(C) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.
7.2 Release. Except for non-monetary remedies, OWNER, for itself, its successors and assignees, hereby releases CITY, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth and Fourteenth Amendments to the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon CITY because it entered into this Agreement or because of the terms of this Agreement. OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF
Redlands Regular Meeting of 07-19-22 754 of 974
KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASED PARTY.”
By initialing below, OWNER hereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. ______________
Owner’s Initials
7.3 Termination or Modification of Agreement for Default of OWNER. CITY may terminate or modify this Agreement for any failure of OWNER to perform any material duty or obligation of OWNER under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as “default”); provided, however, CITY may terminate or modify this Agreement pursuant to this Section only after providing written notice to OWNER of default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within ninety (90) days after the effective date of such notice or, in the event that such default cannot be cured within such ninety (90) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such ninety (90) day period and to diligently proceed to complete such actions and cure such default.
7.4 Termination of Agreement for Default of CITY. OWNER may terminate this Agreement only in the event of a default by CITY in the performance of a material term of this Agreement and only after providing written notice to CITY of default setting forth the nature of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within ninety (90) days after the effective date of such notice or, in the event that such default cannot be cured within such ninety (90) day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such ninety (90) day period and to diligently proceed to complete such actions and cure such default.
8. LITIGATION
8.1 Third Party Litigation Concerning Agreement. OWNER shall defend, at its expense, including attorneys’ fees, indemnify, and hold harmless CITY, its agents, officers and employees from any claim, action or proceeding against CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement, or the approval of any permit granted pursuant to this Agreement. CITY shall promptly notify OWNER of any claim, action, proceeding or determination included within this Section 8.1, and CITY shall cooperate in the defense. If CITY fails to promptly notify OWNER of any such claim, action, proceeding or determination, or if CITY fails to cooperate in the defense, OWNER shall not thereafter be responsible to defend, indemnify, or hold harmless CITY. CITY may in its discretion participate in the defense of any such claim, action, proceeding or determination.
8.2 Environmental Assurances. OWNER shall indemnify and hold CITY, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any Redlands Regular Meeting of 07-19-22 755 of 974
act or omission of OWNER, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and OWNER shall defend, at its expense, including attorneys’ fees, CITY, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. CITY may in its discretion participate in the defense of any such action. OWNER shall have no obligation to indemnify or defend CITY against a claim based upon CITY’s intentional misconduct.
8.3 Reservation of Rights. With respect to Section 8.1 and Section 8.2 herein, CITY reserves, the right to either (1) approve the attorney(s) that the indemnifying party selects, hires or otherwise engages to defend the indemnified party hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense; provided, however, that the indemnifying party shall reimburse the indemnified party forthwith for any and all reasonable expenses incurred for such defense, including attorneys’ fees, upon billing and accounting therefor.
8.4 Challenge to Existing Land Use Approvals. By accepting the benefits of this Agreement, OWNER, on behalf of itself and its successors in interest, hereby expressly agrees and covenants not to sue or otherwise challenge any land use approval affecting the Property and in effect as of the Effective Date. Such agreement and covenant includes, without limitation, the covenant against any direct suit by OWNER or its successor in interest, or any participation, encouragement or involvement whatsoever that is adverse to CITY by OWNER or its successor in interest, other than as part of required response to lawful orders of a court or other body of competent jurisdiction. OWNER hereby expressly waives, on behalf of itself and its successors in interest, any claim or challenge to any land use approval affecting the Property and in effect as of the Effective Date. In the event of any breach of the covenant or waiver contained herein, CITY shall, in addition to any other remedies provided for at law or in equity, be entitled to:
(A) impose and recover (at any time, including after sale to a member of the public or other ultimate user) from the party breaching such covenant or waiver, the full amount of Development Impact Fees that the breaching party would have been required to pay in the absence of this Development Agreement; and
(B) impose any subsequently adopted land use regulation on those land use approvals for which the breaching party had not, as of the time of such breach, obtained a building permit.
OWNER hereby acknowledges that it has read and is familiar with the provisions of California Civil Code Section 1542, which is set forth below:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF
KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR
OR RELEASED PARTY.”
Redlands Regular Meeting of 07-19-22 756 of 974
By initialing below, OWNER hereby waives the provisions of Section 1542 in connection with the matters that are the subject of the foregoing waivers and releases. _______________
Owner’s Initials
8.5 Survival. The provisions of Sections 8.1 through 8.4, inclusive, shall survive the termination of this Agreement.
9. Mortgagee Protection
The Parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER’S sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges:
(A) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law.
(B) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER’S obligations under this Agreement. (C) If CITY timely receives a request from a mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (D) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER’S obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY’S performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Section 2.4 of this Agreement.
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10. Miscellaneous Provisions
10.1 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the County Recorder by the City Clerk within the period required by Section 65868.5 of the Government Code.
10.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the Parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.
10.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. Notwithstanding the foregoing, the provisions of Sections 4.1 through 4.6 are essential elements of this Agreement and CITY would not have entered into this Agreement but for such provisions and, therefore, in the event such provisions are determined by a court of competent jurisdiction to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever.
10.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the procedural and substantive laws of the State of California, without regard to its conflict of laws principles. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof.
10.5 Section Headings. All Section headings and subheadings are inserted for convenience only and shall not affect the construction or interpretation of this Agreement.
10.6 Singular and Plural. As used herein, the singular of any word includes the plural.
10.7 Attorneys’ Fees. If either Party files any action or brings any proceeding against the other pertaining to the interpretation or enforcement of this Agreement, then the prevailing Party will recover, as an element of its costs of suit and not as damages, its costs of suit, expert fees, consultant costs, collection costs, and reasonable attorneys’ fees as fixed by the court or arbitrator (as applicable), including fees and costs incurred on appeal and in any bankruptcy proceedings.
10.8 Estoppel Certificates.
(A) Within ten (10) days following a Party’s written request, the other Party will certify in writing that, to its actual knowledge:
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(1) This Agreement is in full force and effect and is binding upon the certifying Party, unless the certifying Party disputes this affirmation, in which case the certifying Party will set forth the basis for its position in writing. (2) This Agreement has not been amended or modified, except as otherwise expressly described in the certificate.
(3) The requesting Party is not in material default of its obligations under this Agreement, and that there have been no events that with the passage of time, the giving of notice, or both, would constitute the requesting Party’s default under this Agreement, except as otherwise expressly described in the certificate.
(B) The Party requesting the estoppel certificate will reimburse the certifying party the amount of the certifying Party’s costs incurred in the preparation and/or review of the estoppel certificate, not to exceed Five Hundred Dollars ($500.00).
10.9 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.
10.10 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by the other Party thereafter.
10.11 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement.
10.12 Force Majeure. Neither Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other acts of God, pandemic, fires, wars, riots or similar hostilities, recession (defined as two (2) consecutive quarters of decline in quarterly real U.S. Gross Domestic Product), strikes and other labor difficulties beyond the Party’s control, (including the Party’s employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the Party’s control. The Party claiming an extension or delay due to a force majeure event must (i) give written notice to the other Party within sixty (60) days following the onset of the event giving rise to the force majeure delay, and (ii) give written notice to the other Party within thirty (30) days following the cessation of the event giving rise to the force majeure delay. If any force majeure events occur, the Term of this Agreement and the time for performance by either Party of any of its obligations hereunder will be extended for the period of time that such events prevented such performance, provided that the Term of this Agreement shall not be extended under any circumstances due to a force majeure event for more than five (5) years.
10.13 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party.
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10.14 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to the Development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and, (c) is binding upon each Party and each successor in interest during ownership of the Property or any portion thereof.
10.15 Counterparts. This Agreement may be executed by the Parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the Parties had executed the same instrument.
10.16 Survival of Certain Rights and Obligations. Upon the expiration or earlier termination of this Agreement, the entirety of CITY’S and OWNER’S rights and obligations arising under this Agreement will automatically end and be of no further force or effect, except the following: (a) rights and obligations which accrued prior to the expiration or termination of this Agreement, and (b) rights and obligations which specifically state that they will survive the expiration or termination of this Agreement.
10.17 Project as a Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture, or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the development of private property by the owner of such property.
10.18 Further Actions and Instruments. Each of the Parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement.
Upon the request of either Party at any time, the other Party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement.
10.19 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain. No provision of this Agreement shall be construed to limit the CITY’S obligations and liabilities arising from or related to the exercise of CITY’S power of eminent domain.
10.20 Agent for Service of Process. In the event OWNER is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer resident of the State of California, or it is a foreign corporation, then in any such event, OWNER shall file with the Community Development Director, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her Redlands Regular Meeting of 07-19-22 760 of 974
name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon OWNER. If for any reason service of such process upon such agent is not feasible, then in such event OWNER may be personally served with such process and such service shall constitute valid service upon OWNER.
OWNER is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. OWNER for itself, assigns and successors hereby waives the provisions of the Hague Convention (Convention on the Service Abroad of Judicial and Extra Judicial Documents in Civil or Commercial Matters, 20 U.S.T. 361, T.I.A.S.
No. 6638).
10.21 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership, or business entity and warrants and represents that he or she/they have the authority to bind OWNER to the performance of its obligations hereunder.
10.22 Joint and Several Obligations. If at any time during the Term of this Agreement the Property is owned, in whole or in part, by more than one OWNER, all obligations of such OWNERS under this Agreement shall be joint and several, and the default of any such OWNER shall be the default of all such OWNERS. Notwithstanding the foregoing, no OWNER of a single lot that has been finally subdivided ( or ground lessor of any portion of the Property with a term in excess of 15 years ) and sold/leased to such OWNER as a member of the general public or otherwise as an ultimate user shall have any obligation under this Agreement except as expressly provided for herein as it relates to such portion of the Property ( and not defaults relating to other lots within the Project).
10.23 Good Faith and Fair Dealing. The Parties hereby expressly incorporate a mutual covenant of good faith and fair dealing with respect to their interpretation hereof and respective performance under this Agreement.
[Signatures on following pages]
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SIGNATURE PAGE TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC
OWNER
VPV STATE STREET VILLAGE , LLC , a
Delaware limited partnership
By: VILLAGE PARTNERS VENTURES,
LLC,
a Delaware limited partnership, Its Managing
Member
By: Village Partners Investments, LLC,
a California limited liability company,
its administrative member
By:__________________________
Name:________________________
Title:_________________________
Dated:
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SIGNATURE PAGE TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC CITY
CITY OF REDLANDS, a California municipal
corporation
By:
Mayor
Dated:
By:
City Manager
ATTEST:
By:
City Clerk
APPROVED AS TO LEGAL FORM:
City Attorney
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EXHIBIT A TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Legal Description of the Property
The Project site encompasses approximately 12.25 acres and 11 parcels of land with Citrus Avenue between the main parcel and outparcel. The 11 Assessor’s Parcel Numbers (APNs) of the Project site are listed in the table below.
Assessor’s Parcel Numbers
0171-053-01 0171-251-06
0171-053-02 0171-251-07
0171-053-03 0171-251-08
0171-053-04 0171-251-09
0171-053-05 0171-251-10
0171-053-06
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EXHIBIT B TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Map showing Property and its location
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EXHIBIT C TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Existing Development Approvals
1. Redlands City Council Resolution No. 8337 Adopting Initial Study and Sustainable Communities Environmental Assessment Document Prepared for State Street Village Mixed Use Project.
2. Redlands City Council Resolution No. 8338 Approving Redlands General Plan Amendment No. 142.
3. Redlands City Council Resolution No. 8339 Approving Conditional Use Permit No. 1155 and Commission Review and Approval No. 933.
4. Redlands City Council Resolution No. 8340 Approving Conditional Use Permit No. 1156 and Approving Commission Review and Approval No. 934.
5. Redlands City Council Resolution No. 8341 Approving Vesting Tentative Tract Map No. 20425.
6. The Specific Plan (as defined in Subsection 1.1 (W) of this Agreement).
NOTE: The Existing Development Approvals include all plans and documents referenced in the above Existing Development Approvals including, without limitation, in the Specific Plan.
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EXHIBIT D TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Existing Land Use Regulations
1. City of Redlands 2035 General Plan, adopted December 5, 2017.
2. City of Redlands Zoning Regulations (Title 18 of the Redlands Municipal Code), as amended.
3. The Specific Plan (as defined in Subsection 1.1 (W) of this Agreement).
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EXHIBIT E TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Schedule of Impact Fees
[attached]
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT F TO
DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VILLAGE PARTNERS VENTURES, LLC Fee Credits
OWNER shall be entitled to a credit against Development Impact Fees in the amount equal to the fees otherwise determined on a per square foot basis with respect to the square footage of retail/commercial buildings to be demolished by OWNER within the existing Redlands Mall as described in the Development Plan. For example, if OWNER demolishes 1000 square feet of retail space within the Redlands Mall, OWNER is entitled to a fee credit in the amount of Development Impact Fees which would be imposed by the City on the construction of 1000 square feet of new retail space. The credits may be used for Development Impact Fees for uses other than retail space.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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EXHIBIT E TO DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF REDLANDS AND VPV STATE STREET VILLAGE, LLC.
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City Council Meeting K. 3.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Ordinance No. 2938 - Extending a Temporary Moratorium on Development Projects for New Warehouses and Distribution Logistics Facilities for 90 Days
(Mayor to declare the meeting open as a public hearing) Public Hearing to consider a determination of exemption pursuant to Sections 15061(b)(3), 15308, and 15378(b)(5) of the California Environmental Quality Act Guidelines; receipt of the report prepared pursuant to Government Code Section 65858(d) and consideration of Ordinance No. 2938 extending a temporary moratorium on development projects for new
warehouses and distribution logistics facilities within the City of Redlands (Development Services Director Desatnik)
A.
PROCEDURE FOR PUBLIC HEARING:
1. Mayor declares the meeting open as a public hearing.
2. Mayor calls upon Department Director for report.
3. Mayor calls for questions/comments from members of the City Council.
Mayor calls for comments/questions/testimony from members of the public (3 minutes per speaker).
4. 5. Mayor calls upon City Clerk to note any written comments received.
6. Mayor closes the public hearing.
7. City Council considers the motion and votes.
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
Mayor requests the City Clerk to read the title of Ordinance No. 2938; I move to waive further reading of Ordinance No. 2938 and to introduce Ordinance No. 2938, to receive and accept the report prepared pursuant to Redlands Regular Meeting of 07-19-22 786 of 974
Ordinance No. 2938, to receive and accept the report prepared pursuant to Government Code Section 65858(d); and further find that the Ordinance is exempt from environmental review pursuant to Sections 15378(b)(5), 15308 and 15061(b)(3) of the California Environmental Quality Act Guidelines.
RECOMMENDATION:
Staff recommends that the City Council receive and accept the report prepared pursuant to Government Code Section 65858(d) related to Ordinance No. 2934, and adopt Ordinance No. 2938 to extend the temporary moratorium by 90 days in accordance with Government Code Section 65858(a).
DISCUSSION:
On June 21, 2022, the City Council adopted Ordinance No. 2934, an interim ordinance adopting a temporary 45-day moratorium on new warehouse and distribution logistics facilities exceeding 50,000 square-feet in gross floor area located within the commercial and industrial zoning districts in the City of Redlands. Click here to view the June 21, 2022, staff report.
Government Code Section 65858(d) mandates that prior to the expiration of that interim ordinance, the legislative body shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance. The expiration date of the initial 45-day period of the moratorium will be August 5, 2022. Therefore, this report provides an update on activities since the adoption of Ordinance No. 2934 on June 21, 2022.
During June and July 2022, staff has begun work on the following tasks.
Evaluating the City’s existing zoning districts that permit warehouse/distribution facilities and ascertain the proximity to existing residential zones and sensitive receptors (e.g., schools, child daycare centers, hospitals, etc.).
Research potential solutions utilizing development standards and operating conditions for warehouse/distribution facilities, such as specific criteria for buffering adjacent residential land uses or sensitive receptors (e.g., screening or landscaping, air quality mitigations or design features, hours of operation, etc.). Staff may have preliminary concepts and draft development standards prepared for discussion with the Planning Commission on July 26, 2022.
Research options for potential amendments to the Zoning Code (RMC Title 18), such as limiting the size of warehouse/distribution facilities located within 1,000 feet of a residential district, and/or limiting the allowable locations for warehouse/distribution facilities to within one mile of a freeway Redlands Regular Meeting of 07-19-22 787 of 974
entrance utilizing the city's designated Truck Routes.
Work will continue on the tasks listed above over the next 90 days and will also include the preparation of an ordinance implementing new standards and operating conditions for warehouse/distribution facilities. Staff anticipates that the research and ordinance can be prepared and presented for approval hearings within a 90-day period. Therefore, staff is requesting an extension of 90 days as permitted by Government Code Section 65858(a).
ALTERNATIVES:
The Council may choose not to extend the moratorium, in which case the temporary moratorium will automatically expire on August 5, 2022.
STRATEGIC PLAN:
Priority B, Public Health and Safety: Enhance services and programs so that all community members are safe, sheltered, and have access to Redlands' core services.
SUBMITTED BY:
Brian Desatnik, Development Services Director
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
PREPARED BY:
Brian Foote, City Planner/Planning Manager
Fiscal Impact
Fiscal Year: 22-23
Revenue Generating: No
Appropriation Required Y/N: No
Discussion:
There are no fiscal impacts associated with adoption of the interim ordinance.
Attachments
Attachment A: Ordinance No. 2934 (Moratorium)
Attachment B: Ordinance No. 2938 (Moratorium Extension) Redlands Regular Meeting of 07-19-22 788 of 974
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ORDINANCE NO. 2938
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
REDLANDS, CALIFORNIA, IN ACCORDANCE WITH GOVERNMENT CODE SECTION 65858 EXTENDING A MORATORIUM FOR AN ADDITIONAL
NINETY (90) DAYS ON THE ISSUANCE OF BUILDING PERMITS FOR THE
CONSTRUCTION OF NEW WAREHOUSES AND DISTRIBUTION LOGISTICS FACILITIES EXCEEDING 50,000 SQUARE-FEET OF GROSS FLOOR AREA THAT ARE LOCATED IN THE CITY OF REDLANDS.
THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS FOLLOWS:
Section 1. Purpose and Urgency Findings. In accordance with California Government Code section 65858, and in order to protect the public health, safety, and welfare, the City Council of the City of Redlands finds as follows:
A. The City of Redlands (“City”) is currently experiencing rapid and unabated construction of industrial development projects, specifically large warehouse and distribution facilities, some of which are proposed to be located near residential neighborhoods, as well as near numerous other properties that are now included in the City’s 2021-2029 Housing Element that have been identified to accommodate the City’s share of the Regional Housing Needs Assessment (“RHNA”). Large warehouse and distribution facilities can generate unique environmental impacts on surrounding properties and the larger community, including hundreds or thousands of trips by large trucks (including tractor-trailers) at all hours throughout the day and night, greenhouse gas emissions and air quality impacts associated with vehicle trips, noise impacts from on-site operations and off-site tractor-trailer trips on City streets, and other potential effects upon sensitive receptors such as residences, schools, daycare centers, and such other locations.
B. The City has the police power, pursuant to Article XI, section 7 of the California Constitution, to make and enforce ordinances to regulate the use of land within its jurisdictional boundaries, to the extent such regulations are not in conflict with the general laws of the State of California.
C. Government Code Section 65858 expressly authorizes the City Council, in order to protect public health, safety, and welfare, to adopt an interim urgency ordinance prohibiting a use that is in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission, or the planning department is considering or studying or intends to study within a reasonable time, provided that the urgency ordinance shall require a fourfifths (4/5) vote of the legislative body for adoption, and shall be of no further force and effect 45 days from its date of adoption unless duly extended.
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D. The City of Redlands Planning Commission discussed concerns related to existing warehouse developments in the City of Redlands including land use impacts and environmental impacts at a regular meeting on February 22, 2022, and unanimously recommended that the City Council adopt a moratorium on new warehouse development projects until the land use and environmental concerns could be studied and addressed. The Planning Commission’s public meetings are televised, video recordings and staff reports for all meetings are available on demand from the City’s website, and the Commission’s meeting minutes and other public information are available from the City’s website.
E. Public information has been available regarding the potential for a moratorium.
City of Redlands staff has received multiple inquiries in the first half of 2022 from several property owners, developers, and potential applicants expressing interest in developing large new warehouses or distribution logistics facilities, City staff has communicated the Planning Commission’s on-going concerns about large warehouse/ distribution facilities, and City staff has previously stated on several occasions in response to multiple inquiries that there was a possibility of a future moratorium that may affect future applications for new warehouses or distribution facilities.
F. In light of the recent and rapid expansion of e-commerce and associated industrial development projects, including large warehouse and distribution facilities, the City Council finds that the following adverse public safety, health, and welfare impacts are of real concern:
i. Increased safety risk for smaller vehicles, pedestrians, and bicyclists; ii. Damage to City streets and property/facilities from collisions (reported and unreported), such as street lights, traffic signal equipment, signs, trees, curbs, medians, etc.;
iii. Traffic congestion and reduced levels of service on streets and at intersections; iv. Increased impacts from improperly over-loaded trucks; v. Deterioration in air quality, health, noise, vibration and increase in other disruptions to the peace and quiet necessary to the enjoyment of residential neighborhoods and efficacy of educational uses; and
G. Because of the actual and potential detrimental impacts of warehouse and distribution uses upon the City, which impacts may not be presently adequately addressed by the City’s current ordinances and zoning regulations, there is a need to impose and extend a temporary moratorium on warehouse and distribution uses in order to study and develop policy guidance and potentially implement changes to the City’s zoning regulations.
H. Adoption of this urgency ordinance extending the original interim prohibition/ moratorium on land use approvals and building permits for new construction of warehouses and Redlands Regular Meeting of 07-19-22 799 of 974
distribution facilities will allow the City sufficient time to study the land use and environmental impacts of such development projects, as well as allow for a deliberate approach to study and develop appropriate policies, development standards, and effective conditions of approval to mitigate the impacts of large warehouses and distribution facilities. The list below identifies some of the tasks that City staff will undertake during the moratorium:
i. Evaluate the operating characteristics of different types and sizes of warehouses and distribution facilities to better understand land use impacts, and develop appropriate policies, development standards, and/or operating conditions that can alleviate land use conflicts or impacts.
ii. Evaluate the City’s existing zoning districts that permit warehouse and distribution facilities, identify the proximity to existing sensitive receptors and residential zones, and identify appropriate development standards and/or operating conditions for warehouse/distribution facilities to buffer adjacent land uses (such as screening or landscaping, hours of operation, air quality mitigations or design features, intensity of use, number of large truck trips per day, designated routes for large trucks, etc.).
iii. Evaluate the City’s designated Truck Routes, and examine whether existing truck routes must be modified or improved to accommodate the volume and frequency of large truck trips (including roadway segments, intersections, traffic signals and signage, etc.), and ensure the best protection of the abutting or nearby residential neighborhoods and educational land uses.
iv. Evaluate the locations of existing points of origin and destination for large trucks, develop land use recommendations and preferences for locating large warehouses and distribution facilities, and examine the need for any changes to land use designations or zoning designations.
I. Accordingly, the City desires to establish and extend, on an urgency basis, a temporary moratorium on certain types of new warehouse and distribution facility development projects within certain areas of the City through the adoption of this urgency ordinance, to further the purposes stated herein.
Section 2. Moratorium.
A. Based on the findings set forth herein for the immediate preservation of the public health, safety, and welfare, no land use approval or building permit may be issued for any new development projects for warehouse/distribution facilities that exceed 50,000 square feet of gross floor area and are situated on properties within the zoning districts and specific plan areas listed below for the effective period of this urgency ordinance; excepting therefrom any permits for Redlands Regular Meeting of 07-19-22 800 of 974
additions, tenant improvements, repairs, maintenance, signs, and the like on existing permitted uses. Title 18 zoning districts and other Specific Plan areas subject to this moratorium shall include: Commercial Industrial (C-M) District; Industrial (I-P) District; Light Industrial (M-1) District; General Industrial (M-2) District; East Valley Corridor Specific Plan (all districts); Downtown Specific Plan (all districts); Specific Plan No. 25 (all districts); Concept Plan No. 1; Concept Plan No. 2; and excluding the fifteen properties identified as Assessor’s Parcel Numbers 0292-163-02-0000, 0292-163-03-0000, 0292-165-05-0000, 0292-165-06-0000, 0292-165-07- 0000, 0292-165-08-0000, 0292-165-09-0000, 0292-165-16-0000, 0292-165-17-0000, 0292-167- 02-0000, 0292-167-07-0000, 0292-167-28-0000, 0292-167-29-0000, 0292-167-30-0000, and 0292-201-20-0000 as listed in Exhibit “A” attached hereto.
B. Any projects which have received full entitlements, including all necessary CEQA approvals, for warehouse or distribution facility projects and have commenced substantial construction or incurred expenses in connection with such construction prior to the effective date of this urgency ordinance, and for which all applicable appeal periods have run, shall be considered exempt from application of this urgency ordinance.
Section 3. Immediate threat to health, safety and welfare. Based on the findings herein, this urgency ordinance is adopted pursuant to California Government Code section 65858 to address a current and ongoing threat to the public health, safety, and welfare. The City Council has determined that granting land use approvals or building permits for new development projects for warehouse or distribution facilities on properties that exceed the above-described square footage and are located within the above-described zoning districts and specific plan areas could result in an immediate threat to the public health, safety, and welfare.
Section 4. Written Report. Pursuant to Government Code Section 65858, staff has prepared a written report for consideration by the City Council that describes measures taken to address the condition which led to the adoption of this urgency ordinance. The report has been provided to the City Council for consideration at least ten (10) days prior to the expiration of the original urgency ordinance.
Section 5. Moratorium Extension. The City Council hereby extends the Moratorium on any land use approvals or building permit issuance for any new development projects for warehouse/distribution facilities that exceed 50,000 square feet of gross floor area and are situated on properties within the zoning districts and specific plan areas listed below for the effective period of this urgency ordinance; excepting therefrom any permits for additions, tenant improvements, repairs, maintenance, signs, and the like on existing permitted uses. Title 18 zoning districts and other Specific Plan areas subject to this moratorium shall include: Commercial Industrial (C-M) District; Industrial (I-P) District; Light Industrial (M-1) District; General Industrial (M-2) District; East Valley Corridor Specific Plan (all districts); Downtown Specific Plan (all districts); Specific Plan No. 25 (all districts); Concept Plan No. 1 and Concept Plan No. 2.
Excluded from this Moratorium are the fifteen properties identified as Assessor’s Parcel Numbers 0292-163-02-0000, 0292-163-03-0000, 0292-165-05-0000, 0292-165-06-0000, 0292- 165-07-0000, 0292-165-08-0000, 0292-165-09-0000, 0292-165-16-0000, 0292-165-17-0000, 0292-167-02-0000, 0292-167-07-0000, 0292-167-28-0000, 0292-167-29-0000, 0292-167-30- Redlands Regular Meeting of 07-19-22 801 of 974
0000, and 0292-201-20-0000, as listed in Exhibit “A” attached hereto. The fifteen properties are included in the City’s housing sites inventory list as contained in the 2021-2029 Housing Element and are subject to a separate moratorium adopted by the City Council with Ordinance No. 2928.
Further, in accordance with Building Industry Legal Defense Foundation v. Superior Court (1999), this Moratorium shall prohibit the issuance of approvals, permits, and/or entitlements pursuant to this section, but shall not prevent the processing of lawfully filed development applications. Development applications may continue to be filed, commencement of processing for development review purposes may continue to proceed, and environmental review for individual development projects may continue to proceed.
Section 6. Duration of Ordinance. The Moratorium is hereby extended for an additional ninety (90) days beyond its original expiration date, such that the Moratorium will now expire on November 3, 2022, or until the City Council adopts an ordinance addressing the issues related to the establishment of warehouses and/or distribution facilities exceeding 50,000 squarefeet in size, whichever occurs first. Thereafter, this Moratorium extension shall be of no further force and effect unless, after a duly noticed public hearing, the City Council further extends the Moratorium for an additional period of time pursuant to Government Code section 65858.
Section 7. Conflicting Laws. For the term of this ordinance, as set forth in Section 6 above, the provisions of this ordinance shall govern over any conflicting provisions of any other City code, ordinance, resolution, or policy.
Section 8. Exempt from Environmental Review. The City Council has reviewed the matter and, based upon the facts and information contained in the staff report, administrative record, and written and oral testimony, hereby finds as follows:
A. Pursuant to Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”), this urgency ordinance is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment, and therefore not a project.
Additionally, pursuant to CEQA Guidelines Section 15061(b)(3), this urgency ordinance is exempt from CEQA review because there is no possibility that the moratorium may have a significant effect on the environment, insofar as it prohibits the construction of certain warehouse and distribution facilities within the City. Furthermore, even if the urgency ordinance is considered a project, the proposed moratorium is categorically exempt under CEQA Guidelines Section 15308, because it is clear that the moratorium will not create an environmental impact and the action will assure the maintenance, enhancement, or protection of the environment through the eventual adoption of regulations and development standards on such warehouse and distribution facilities.
Accordingly, no further environmental review is necessary.
B. Further, as the urgency ordinance is an administrative procedure related to uses, facilities, and regulations, and given that the proposed urgency ordinance is not related to a specific project, the urgency ordinance (i) by virtue of the location of affected improvements, will not impact a sensitive environmental resource of hazardous or critical concern; (ii) will not have a cumulative impact on the environment through successive projects of the same type, in the same place, over time; (iii) does not have any unusual circumstances that will have a significant effect Redlands Regular Meeting of 07-19-22 802 of 974
on the environment; (iv) does not impact a scenic highway; (v) is not located on a hazardous waste site; and (vi) will not adversely impact a historical resource. Accordingly, none of the exceptions to categorical exemptions set forth in the CEQA Guidelines, Section 15300.2, apply to this urgency ordinance.
Section 9. Enforcement. The City may enforce any provision of this urgency ordinance by mandamus, injunction, or any other appropriate civil remedy in any court of competent jurisdiction.
Section 10. Urgency Ordinance. This ordinance is an urgency ordinance and shall take effect and be enforced immediately upon adoption by a four-fifths (4/5) vote of the City Council.
Section 11. Severability. If any provision of this urgency ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the urgency ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this urgency ordinance are severable.
The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. By enacting this urgency ordinance, the City ordains that nothing herein shall be deemed to conflict with or duplicate federal or state law, or otherwise or to license any activity that is prohibited thereunder except as mandated by such laws.
Section 12. Publication and Posting. The Mayor shall sign this urgency ordinance and the City Clerk shall certify to the adoption of this urgency ordinance and shall cause it, or a summary of it, to be published once in the Redlands Daily Facts, a newspaper of general circulation within the City, and thereafter, this ordinance shall take effect in accordance with law. ___________________________
Paul T. Barich, Mayor
ATTEST:
_____________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 803 of 974
I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance was duly adopted by the City Council at a regular meeting thereof held on the 19th day of July, 2022.
AYES:
NOES:
ABSENT:
ABSTAINED:
___________________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 804 of 974
EXHIBIT “A”
List and Map of Properties Excluded from this Urgency Ordinance Assessor’s Parcel Numbers:
0292-163-02-0000
0292-163-03-0000
0292-165-05-0000
0292-165-06-0000
0292-165-07-0000
0292-165-08-0000
0292-165-09-0000
0292-165-16-0000
0292-165-17-0000
0292-167-02-0000
0292-167-07-0000
0292-167-28-0000
0292-167-29-0000
0292-167-30-0000
0292-201-20-0000
[Map Attached]
Redlands Regular Meeting of 07-19-22 805 of 974
CROCUS ST
IOWA ST
SUNFLOWER ST
HYACINTH AVE LUPINE ST
GOLDENROD AVE
SIRIANNI CT STORAGE CT
ORANGE AVE
HOWARD PL
NEVADA ST
AL ABAMA ST
CITRUS AVE STATE ST
029216507
029216509
029216730
029216505
029216508
029216517
029216702
029216729
029216707
029216506
029220120
029216303
029216302
029216728
029216516
0 250 500
Feet
Exhibit A:
July 19, 2022 O
Rezone Parcels
Parcels Parcels Exempt From Interim Prohibition/Moratorium on New Warehouses and Distribution Facilities
Redlands Regular Meeting of 07-19-22 806 of 974
City Council Meeting K. 4.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Ordinance No. 2939 - Extending a Temporary Moratorium on certain Development Projects within the East Valley Corridor Specific Plan for 10 months and 15 days
(Mayor to declare meeting open as a public hearing)
Consideration of a determination of exemption pursuant to Sections 15061(b)(3), 15308, and 15378(b)(5) of the
California Environmental Quality Act Guidelines; and
consideration of Ordinance No. 2939 extending a temporary moratorium on certain development projects for properties located within the Commercial Industrial (EV/IC) district of the East Valley Corridor Specific Plan that are identified on the list of potential housing sites prepared in conjunction with the City’s 2021-2029 Housing Element (Development Services
Director Desatnik)
A.
PROCEDURE FOR PUBLIC HEARING:
1. Mayor declares the meeting open as a public hearing.
2. Mayor calls upon Department Director for report.
3. Mayor calls for questions/comments from members of the City Council.
Mayor calls for comments/questions/testimony from members of the public (3 minutes per speaker).
4. 5. Mayor calls upon City Clerk to note any written comments received.
6. Mayor closes the public hearing.
7. City Council considers the motion and votes.
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion(s) is provided:
Mayor requests the City Clerk to read the title of Ordinance No. 2939; Redlands Regular Meeting of 07-19-22 807 of 974
I move to waive further reading of Ordinance No. 2939 and to introduce Ordinance No. 2939, and further find that the Ordinance is exempt from environmental review pursuant to Sections 15378(b)(5), 15308 and 15061(b)(3) of the California Environmental Quality Act Guidelines.
RECOMMENDATION:
Staff recommends that the City Council adopt Ordinance No. 2939 to extend the temporary moratorium related to Ordinance No. 2928 by 10 months and 15 days in accordance with Government Code Section 65858(a).
DISCUSSION:
On June 7, 2022, the City Council adopted Ordinance No. 2928, an interim ordinance adopting a temporary 45-day moratorium on land use approvals and building permits for new construction that may be approved or issued on fifteen (15) properties located within the Commercial Industrial (EV/IC) district of the East Valley Corridor Specific Plans (see Attachment A - Location Map), except for multi-family housing developments in the Low and Very-Low Income density category (minimum density 30 du/ac) and Moderate-Income density category (density between 12 du/ac to 30 du/ac) at locations consistent with the City of Redlands 2021-2029 Housing Element. Click here to view the June 7, 2022, staff report.
Government Code Section 65858(d) mandates that at least ten days prior to the expiration of that interim ordinance, the legislative body shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance. The expiration date of the initial 45-day period of the moratorium will be July 22, 2022. Therefore, a report was received and accepted by the City Council on July 5, 2022.
The report provided an update on activities since the adoption of Ordinance No. 2928 on June 7, 2022, including the following tasks.
Worked with the City’s consultants for the 2021-2029 Housing Element Update in preparing responses to written comments from the California Department of Housing & Community Development (HCD).
Met with HCD staff regarding the City’s responses to HCD comments, as well as the pending certification of the 2021-2029 Housing Element.
Continued work on the Citywide Zone Map Update.
Worked on the environmental review process for the rezoning of RHNA sites, including the 15 subject parcels.
Redlands Regular Meeting of 07-19-22 808 of 974
Work will continue on the tasks listed above in the coming months and will also include the following tasks.
Obtain certification from HCD for the adopted 2021-2029 Housing Element.
Contract with a consultant to prepare the necessary environmental (CEQA) review and analysis for the rezoning of RHNA sites, including the 15 subject parcels.
Proceed to process the rezoning of the RHNA housing sites.
Present the RHNA sites rezoning to the Planning Commission for review and recommendation.
Present the RHNA sites rezoning to the City Council for approval.
Continue to work on the Citywide Zone Map Update.
The above-described work by staff will require more time to complete (i.e., several months and continuing through Summer and Fall). Therefore, staff is requesting an extension of 10 months and 15 days as permitted by Government Code Section 65858(a) to allow for completion of the analysis described above.
ALTERNATIVES:
The Council may choose not to extend the moratorium, in which case the temporary moratorium will automatically expire on July 22, 2022.
STRATEGIC PLAN:
Priority B, Public Health and Safety: Enhance services and programs so that all community members are safe, sheltered, and have access to Redlands' core services.
SUBMITTED BY:
Brian Desatnik, Development Services Director
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
PREPARED BY:
Catherine Lin, AICP, Principal Planner
Redlands Regular Meeting of 07-19-22 809 of 974
Fiscal Impact
Fiscal Year: 22-23
Revenue Generating: No
Appropriation Required Y/N: No
Discussion:
The proposed moratorium extension will have no fiscal impact.
Redlands Regular Meeting of 07-19-22 810 of 974
Attachments
Attachment A-1: Location Map & Aerial Photo
Attachment A-2: Subject Properties
Attachment B: Ordinance No. 2928 (Moratorium)
Attachment C: Ordinance No. 2939 (Moratorium Extension) Redlands Regular Meeting of 07-19-22 811 of 974
BARTON RD
N SAN MATEO ST
MISSION RD
TERRACINA BLVD
S SAN MATEO ST
BROOKSIDE AVE
ALABAMA ST
W COLTON AVE
TENNESSEE ST
W REDLANDS BLVD
CALIFORNIA ST
NEVAD
A
S
T
W REDLANDS BLVD
BARTON RD
LIMA ST
VERNA CT
FINO CT
CROCUS ST
LUPINE ST
RANCHO DR
1ST ST
ROMERO ST
HOWARD PL
PARKER CT
ESSEX CT
P
RICE
ST
MILBURN AVE
ROBLE ST
ORANGE AVE
MISSOURI CT
EUREKA ST
MEYER ST
MARTY ST
JENNIFER ST
KATHI ST
CALVARY CIR
AMIGOS DR
PINE AVE
CITRUS AVE
CLEMENTINE WAY
B
ELLEVUE AVE
VERNA LN
KANSAS ST
LADERA ST
NEW JERSEY ST
MORNIN
G
D O VE LN
BERMUDEZ ST
W CITRUS AVE
W PARK AVE
NEW YORK ST
W PARK AVE
W STATE ST
IOWA ST
ORANGE AVE
Location Map
OneStop.mxd
0 550 1,100
Feet
Scale
This map was produced by the City of Redlands,
Geographic Information System.
The City of Redlands assumes no warranty or
legal responsibility for the information contained
on this map.
The data used to generate this map is dynamic
in nature, therefore the information shown may
or may not be the most current.
June 30, 2022
.
SUBJECT
PROPERTIES
Redlands Regular Meeting of 07-19-22 812 of 974
CROCUS ST
IOWA ST
SUNFLOWER ST
HYACINTH AVE LUPINE ST
GOLDENROD AVE
SIRIANNI CT STORAGE CT
ORANGE AVE
HOWARD PL
NEVADA ST
AL ABAMA ST
CITRUS AVE STATE ST
029216507
029216509
029216730
029216505
029216508
029216517
029216702
029216729
029216707
029216506
029220120
029216303
029216302
029216728
029216516
0 250 500
Feet
Exhibit A:
wo1747EVCSpecificPlan August 05, 2021 O
Rezone Parcels
Parcels Parcels Subject to Interim Prohibition/Moratorium proposed with Ordinance No. 2928
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ORDINANCE NO. 2939
AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE OF
REDLANDS, CALIFORNIA, IN ACCORDANCE WITH GOVERNMENT
CODE SECTION 65858 EXTENDING A MORATORIUM ON CERTAIN NEW
DEVELOPMENT PROJECTS FOR PROPERTIES LOCATED WITHIN THE
COMMERCIAL INDUSTRIAL (EV/IC) DISTRICT OF THE EAST VALLEY
CORRIDOR SPECIFIC PLAN THAT ARE IDENTIFIED ON THE LIST OF
POTENTIAL HOUSING SITES PREPARED IN CONJUNCTION WITH THE CITY’S 2021-2029 HOUSING ELEMENT (6th CYCLE HOUSING ELEMENT
UPDATE)
THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS FOLLOWS:
Section 1. Purpose and Urgency Findings. In accordance with California Government Code section 65858, and in order to protect the public health, safety, and welfare, the City Council of the City of Redlands finds as follows:
A. The City of Redlands (“City”) has prepared and adopted an update to its Housing Element (a part of the City’s General Plan) known as the 6th Cycle Housing Element Update. This is the statewide effort by many cities and counties as mandated by the California Department of Housing & Community Development (“HCD”). Through this statewide process, HCD, through regional agencies such as the Southern California Association of Governments, allocates a specified number of new housing units to each jurisdiction, and the jurisdiction must then plan accordingly and provide a sufficient amount of land zone properly to accommodate the jurisdiction’s allotment. This process occurs during a Housing Element Update cycle every eight years. Furthermore, HCD specifies time limits within which a Housing Element Update cycle must be completed, and provides penalties for jurisdictions that do not complete their Housing Element Update within the State’s deadlines.
B. The City of Redlands has prepared and adopted its Housing Element (6th Cycle Housing Element Update) and, in so doing, has prepared a housing inventory and map for future potential housing sites throughout the City with sufficient acreage to accommodate the City’s required number and density of housing units (known as the Regional Housing Needs Assessment or “RHNA” number). Some of the identified potential housing sites are within an Industrial land use and/or zoning district(s) and will require rezoning to authorize residential development as a permitted land use and at a density sufficient to comply with State requirements.
C. A critical housing shortage is a statewide and regional concern. California is currently experiencing a housing supply crisis, with housing demand exceeding supply. This lack of housing supply in California has resulted in dramatically increasing housing costs across the State and an increased risk that households will be unable to find available and affordable housing. As such, the City’s ability to identify potential local housing sites within the Industrial land use and/or zoning district(s) in the City to be rezoned to residential development as a permitted land use and at a density sufficient to comply with State requirements and consistent Redlands Regular Meeting of 07-19-22 822 of 974
with the City’s adopted Housing Element is a matter of critical and immediate local concern.
The City’s ability to identify sufficient land area and provide appropriate zoning to accommodate new housing for all persons at all income levels is a matter of public health, safety, and general welfare.
D. To protect the City’s ability to comply with State law and implement its 2021- 2029 Housing Element in accordance with HCD content requirements as well as time limits, and in order to facilitate the development of sufficient local housing to alleviate the regional and statewide housing crisis, City staff needs time to re-zone certain properties from an Industrial zoning to a residential zoning designation at varies densities to accommodate future housing, to study if certain properties will need to change its land use designation under the General Plan to permit residential land uses (i.e., from Industrial to Residential for consistency with zoning as required by existing State law), to study the surrounding land uses and other characteristics of properties identified on the list of future housing sites, and study the process by which future housing projects (including lower-income housing, affordable housing, projects with a State density bonus, and/or market rate housing projects) may be subject to discretionary review and at what level.
E. The City has the police power, pursuant to Article XI, Section 7 of the California Constitution, to make and enforce ordinances to regulate the use of land within its jurisdictional boundaries, to the extent such regulations are not in conflict with the general laws of the State of California.
F. Government Code Section 65858 expressly authorizes the City Council, in order to protect the public health, safety, and welfare, to adopt an interim urgency ordinance prohibiting a use that is in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission, or the planning department is considering or studying or intends to study within a reasonable time, provided that the urgency ordinance shall require a four-fifths (4/5) vote of the legislative body for adoption, and shall be of no further force and effect 45 days from its date of adoption, unless duly extended.
G. On June 7, 2022, the City Council adopted Urgency Ordinance No. 2928, an urgency ordinance establishing a 45-day Moratorium on land use approvals and building permits for new construction may be approved or issued on properties located within the Commercial Industrial (EV/IC) district of the East Valley Corridor Specific Plan identified in Exhibit A, except for multi-family housing developments in the Low and Very-Low Income density category (minimum density 30 du/ac) and Moderate-Income density category (density between 12 du/ac to 30 du/ac) at locations consistent with the City of Redlands 2021-2029 Housing Element; and,
H. The Moratorium will expire on July 22, 2022, unless extended pursuant to Government Code Section 65858, which authorizes the City Council, after notice pursuant to Government Code Section 65090 and a public hearing, to adopt an ordinance extending the Moratorium for ten (10) months and fifteen (15) days, upon approval by a four-fifths vote, and upon making the same findings required for initial adoption of the Moratorium; and, Redlands Regular Meeting of 07-19-22 823 of 974
I. The City intends to process a General Plan Amendment and Zone Change to allow residential development as the primary use on certain properties identified on the City’s RHNA housing sites inventory list included in the 2021-2029 Housing Element; and, J. The City wishes to extend the Moratorium for a period of ten (10) months and fifteen (15) days; and,
K. Adoption of this urgency ordinance extending the original interim prohibition/moratorium will allow the City sufficient time to perform necessary tasks listed below:
i. Obtain certification of the 2021-2029 Housing Element from the Development of Housing & Community Development.
ii. Contract with a consultant to prepare the necessary environmental (CEQA) review and analysis for the rezoning of RHNA sites, including the 15 subject parcels identified in Exhibit A.
iii. Proceed to process the rezoning of the RHNA housing sites. iv. Present the RHNA sites rezoning to the Planning Commission and the City Council for recommendation and approval.
L. Accordingly, the City desires to establish and extend, on an urgency basis, a temporary moratorium on all non-residential development projects for certain properties within the Commercial Industrial (EV/IC) district of the East Valley Corridor Specific Plan that are identified on the list of potential housing sites prepared in the conjunction with the City’s 2021-2029 Housing Element, to further the purposes stated herein.
Section 2. Moratorium.
A. Based on the findings set forth herein for the immediate preservation of the public health, safety, and welfare, and in accordance with the authority granted to the City under Government Code Section 65858, no land use approvals and building permits for a new nonresidential construction may be approved or issued on properties located within the Commercial Industrial (EV/IC) district of the East Valley Corridor Specific Plan identified in Exhibit A, except for multi-family developments in the Low and Very-Low Income density category (minimum density 30 du/ac) and Moderate-Income density category (density between 12 du/ac to 30 du/ac) at locations consistent with the City of Redlands 2021-2029 Housing Element, excepting therefrom any permits for additions, tenant improvements, repairs, maintenance, signs, and the like on existing permitted uses.
B. Any projects which have received full entitlements, including all necessary CEQA approvals, for new construction on properties located within the Commercial Industrial (EV/IC) district of the East Valley Corridor Specific Plan identified in Exhibit A, and multifamily housing developments in the Low and Very-Low Income density category (minimum density 30 du/ac) and Moderate-Income density category (density between 12 du/ac to 30 du/ac), at locations consistent with the City of Redlands 2021-2029 Housing Element prior to the Redlands Regular Meeting of 07-19-22 824 of 974
effective date of this urgency ordinance, and that have commenced substantial construction or incurred expenses in connection with such construction, and for which all applicable appeal periods have run, shall be considered exempt from application of this urgency ordinance.
C. Based on the findings set forth herein, no land use approval or building permit may be issued or approved for any new development including warehouse/distribution facilities or other commercial/industrial land uses on properties within the Commercial Industrial (EV/IC) District of the East Valley Corridor Specific Plan that have been identified as future housing sites to meet the requirements of the Regional Housing Needs Assessment (2021-2029 Housing Element) for the effective period of this urgency ordinance.
Section 3. Immediate threat to health, safety and welfare. Based on the findings herein, this urgency ordinance is adopted pursuant to California Government Code section 65858 to address a current and ongoing threat to the public health, safety, and welfare. The City Council has determined that the City’s ability to identify sufficient land area and provide appropriate zoning to accommodate new housing for all persons at all income levels is a matter of public health, safety, and general welfare.
Section 4. Written Report. Pursuant to Government Code Section 65858, staff has prepared a written report for consideration by the City Council that describes measures taken to address the condition which led to the adoption of this urgency ordinance. The report was provided to the City Council for consideration on July 5, 2022, at least ten (10) days prior to the expiration of original urgency ordinance.
Section 5. Moratorium Extension. The City Council hereby extends the Moratorium that no land use approvals and building permits for a new construction may be approved or issued on properties located within the Commercial Industrial (EV/IC) district of the East Valley Corridor Specific Plan identified in Exhibit A, except for multi-family developments in the Low and Very-Low Income density category (minimum density 30 du/ac) and Moderate-Income density category (density between 12 du/ac to 30 du/ac) at locations consistent with the City of Redlands 2021-2029 Housing Element, excepting therefrom any permits for additions, tenant improvements, repairs, maintenance, signs, and the like on existing permitted uses. Further, in accordance with Building Industry Legal Defense Foundation v. Superior Court (1999), this Moratorium shall prohibit the issuance of approvals, permits, and/or entitlements pursuant to this section, but shall not prevent the processing of lawfully filed development applications.
Section 6. Duration of Ordinance. The Moratorium is hereby extended for an additional ten (10) months and fifteen (15) days beyond its original expiration date, such that the Moratorium will now expire on June 7, 2023, or until the City Council adopts an ordinance addressing the issues related to the City’s ability to identify sufficient land area and provide appropriate zoning to accommodate new housing for all persons at all income levels consistent with the RHNA allocation in the 2021-2029 Housing Element, whichever occurs first.
Thereafter, this Moratorium extension shall be of no further force and effect unless, after a duly noticed public hearing, the City Council further extends the Moratorium for an additional period of time pursuant to Government Code section 65858.
Redlands Regular Meeting of 07-19-22 825 of 974
Section 7. Conflicting Laws. For the term of this ordinance, as set forth in Section 6 above, the provisions of this ordinance shall govern over any conflicting provisions of any other City code, ordinance, resolution, or policy.
Section 8. Exempt from Environmental Review. The City Council has reviewed the matter and, based upon the facts and information contained in the staff report, administrative record, and written and oral testimony, hereby finds as follows:
A. Pursuant to Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”), this urgency ordinance is an organizational or administrative activity of the City that will not result in direct or indirect physical changes in the environment, and therefore not a project. Additionally, pursuant to CEQA Guidelines Section 15061(b)(3), this urgency ordinance is exempt from CEQA review because there is no possibility that the moratorium may have a significant effect on the environment, insofar as it prohibits the development of certain projects for properties located within the Commercial Industrial (EV/IC) district of the East Valley Corridor Specific Plan that are identified on the RHNA inventory that is part of the 2021-2029 Housing Element. Furthermore, even if the urgency ordinance is considered a project, the proposed moratorium is categorically exempt under CEQA Guidelines Section 15308, because it is clear that the moratorium will not create an environmental impact and the action will assure the maintenance, enhancement, or protection of the environment through the implementation of the 2021-2029 Housing Element. Accordingly, no further environmental review is necessary.
B. Further, as the urgency ordinance is an administrative procedure related to uses, facilities, and regulations, and given that the proposed urgency ordinance is not related to a specific project, the urgency ordinance (i) by virtue of the location of affected improvements, will not impact a sensitive environmental resource of hazardous or critical concern; (ii) will not have a cumulative impact on the environment through successive projects of the same type, in the same place, over time; (iii) does not have any unusual circumstances that will have a significant effect on the environment; (iv) does not impact a scenic highway; (v) is not located on a hazardous waste site; and (vi) will not adversely impact a historical resource. Accordingly, none of the exceptions to categorical exemptions set forth in the CEQA Guidelines, Section 15300.2, apply to this urgency ordinance.
Section 9. Enforcement. The City may enforce any provision of this urgency ordinance by mandamus, injunction, or any other appropriate civil remedy in any court of competent jurisdiction.
Section 10. Urgency Ordinance. This ordinance is an urgency ordinance and shall take effect and be enforced immediately upon adoption by a four-fifths (4/5) vote of the City Council.
Section 11. Severability. If any provision of this urgency ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the urgency ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this urgency ordinance are severable.
The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. By enacting this urgency ordinance, the City ordains Redlands Regular Meeting of 07-19-22 826 of 974
that nothing herein shall be deemed to conflict with or duplicate federal or state law, or otherwise or to license any activity that is prohibited thereunder except as mandated by such laws.
Section 12. Publication and Posting. The Mayor shall sign this urgency ordinance and the City Clerk shall certify to the adoption of this urgency ordinance and shall cause it, or a summary of it, to be published once in the Redlands Daily Facts, a newspaper of general circulation within the City, and thereafter, this ordinance shall take effect in accordance with law.
_____________________________
Paul T. Barich, Mayor
ATTEST:
_____________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 827 of 974
I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance was duly adopted by the City Council at a regular meeting thereof held on the 19th day of July, 2022.
AYES:
NOES:
ABSENT:
ABSTAINED:
___________________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 828 of 974
EXHIBIT “A”
List and Map of Properties Included in this Urgency Ordinance Assessor’s Parcel Numbers:
0292-163-02-0000
0292-163-03-0000
0292-165-05-0000
0292-165-06-0000
0292-165-07-0000
0292-165-08-0000
0292-165-09-0000
0292-165-16-0000
0292-165-17-0000
0292-167-02-0000
0292-167-07-0000
0292-167-28-0000
0292-167-29-0000
0292-167-30-0000
0292-201-20-0000
(Map Attached)
Redlands Regular Meeting of 07-19-22 829 of 974
Redlands Regular Meeting of 07-19-22 830 of 974
City Council Meeting K. 5.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Resolution No. 8360 - Delinquent Administrative Citation and Fine Report
(Mayor to declare the meeting open as a public hearing) Public Hearing to Consider Resolution No. 8360 approving the Delinquent Administration Citation Fine Report and submittal to the Auditor-Controller of San Bernardino County for Lien Processing (Assistant City Manager Boatman)
A.
PROCEDURE FOR PUBLIC HEARING:
1. Mayor declares the meeting open as a public hearing.
2. Mayor calls upon Department Director for report.
3. Mayor calls for questions/comments from members of the City Council.
Mayor calls for comments/questions/testimony from members of the public (3 minutes per speaker).
4. 5. Mayor calls upon City Clerk to note any written comments received.
6. Mayor closes the public hearing.
7. City Council considers the motion and votes.
MOTION(S):
If the City Council determines that staff's recommendation is appropriate, the following motion is provided:
I move to approve Resolution No. 8360.
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 8360, and approve the delinquent fines report and submittal of a Notice of Lien to the San Bernardino County Auditor- Controller/Treasurer/Tax Collector for recordation as a special assessment on the 2022-2023 tax roll against the properties identified Redlands Regular Meeting of 07-19-22 831 of 974
in the report resulting from non-payment of City of Redlands' administrative citation fines.
DISCUSSION:
The property owners, identified in the reports, have been found in violation of various sections of the Redlands Municipal Code (RMC). To date, 70 delinquent administrative citations have been issued to the property owners listed in the report with a total unpaid fine balance of $59,300 as of July 1, 2022. In this report, the delinquent 70 administrative citations are related to Chapter 5.04 business license required, Chapter 2.24, 8.04, 8.08, 8.10, 8.20, 8.72, 9.16,
9.32, property maintenance, weeds, trash, graffiti, permits needed, noise disturbance, inoperative vehicles, vacant registration, prohibited RV/boat parking, emergency response, unlawful possession (carts), defecating in public, unsightly appearance, fire hazard, public nuisance, Chapters 12.12, 12.32,
12.46, 13.52, 13.54, 15.04, 15.36, 18.164, 18.168, 18.188, 18.20, HS17920.3 - permits not obtained, mechanical/electrical/building code violations, property alteration of buildings, no landscaping or maintenance of parkway, unsecured property, illegal grading/no permit, maintenance, lack of paint, dumping/burying, prohibited acts/open space, no address posted, premature demo, CUP needed, prohibited signs, buildings not for human habitation, and items in the parkway.
Section 1.22.140 (B) of the RMC states that the fines levied by administrative citations are deemed a special assessment against each lot or parcel of land upon which the violation existed, and as thus made and confirmed, shall also become the personal obligation of each lot or parcel of land. Prior to recording a lien against a property, a report must be prepared by the City Manager in accordance with Section 1.22.140 (B), detailing the fines and additional information on the property and violation. A comprehensive report of the fines and corresponding information has been prepared by staff in accordance with the Redlands Municipal Code and is attached for the City Council's reference.
Recording a lien for non-payment does not relieve the property owner from correcting the violation.
The property owners were mailed a notice of the City Council's consideration of this report on July 6, 2022, which specifies that objections may be presented at the hearing or filed in writing five days in advance of the hearing. The City Council must consider the report, together with any objections or protests which may be raised by any person. The City Council may make corrections, revisions or modifications to the report as it may deem appropriate. If the City Council approves the Resolution confirming the special assessments, the City Clerk will be directed to file a Notice of Lien with the County Auditor-Controller/Treasurer/ Tax Collector. The cost to submit the special assessments for the next tax roll is $1.20 per parcel, charged to the property owner. The current total amount of the delinquencies for these citations is $59,300. In the event the violations are not corrected, and additional citations accrue, future special assessments may be placed on the tax roll to secure payment from the property owner.
Redlands Regular Meeting of 07-19-22 832 of 974
placed on the tax roll to secure payment from the property owner.
ALTERNATIVES:
The City Council may make corrections, revise or modify the report as it may deem appropriate.
SUBMITTED BY:
Glenn Vargas, Senior Code Enforcement Officer
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Joe Bierma, Administrative Analyst
Fiscal Impact
Fiscal Year: 2022-23
Revenue Generating: Y
Appropriation Required Y/N: N
Amount: $59,300
Budgeted Y/N: Y
Account No.: 1013004602
Discussion:
To date, 70 administrative citations have been issued to the property owners listed in the report with a total unpaid fine balance of $59,300 as of July 1, 2022. The cost of adding each special assessment to the tax roll is considered nominal at a cost of $1.20 per parcel, charged to the property owner.
Attachments
A. Resolution No. 8360 - Delinquent Administrative Citations 2022 B. Sample Lien Notice Letter
C: Preliminary Special Assessment Report for FY 2022-23 Delinquent Administrative citations
Redlands Regular Meeting of 07-19-22 833 of 974
RESOLUTION NO. 8360
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
APPROVING A DELINQUENT ADMINISTRATIVE CITATION FINE
REPORT AND SUBMITTAL OF A NOTICE OF LIEN TO THE SAN
BERNARDINO COUNTY AUDITOR-CONTROLLER/TREASURER/TAX
COLLECTOR FOR PROCESSING
WHEREAS, the City of Redlands has issued administrative citations to the owners of various properties located within the City; and
WHEREAS, the property owners who received the administrative citations are identified in the City Manager’s report and have failed to pay the delinquent fines for such citations; and WHEREAS, Section 1.22.140 of the Redlands Municipal Code provides that “…fines levied by administrative citation, or by administrative hearing order, constitute a special assessment against each lot or parcel of land upon which the violation existed, and as thus made and confirmed shall also become the personal obligation of each lot or parcel of land;” and WHEREAS, pursuant to Section 1.22.140 of the Redlands Municipal Code, on July 19, 2022, a duly noticed public hearing was held at which the property owners were provided the opportunity to object or protest the proposed adoption of this resolution; and WHEREAS, the City Council of the City of Redlands, having considered the City Manager’s report regarding delinquent administrative citations, together with any objections and protests by the property owners of various locations, desires to declare the delinquent fines as special assessments and cause such fines to be recorded as a lien against the properties identified in the report;
NOW, THEREFORE, be it resolved by the City Council of the City of Redlands as follows:
Section 1. The City Council approves the delinquent administrative citation fines report submitted by the City Manager and confirms such delinquent fines to be entered as special assessments on the property tax roll against the properties identified in the report.
Section 2. The City Clerk of the City of Redlands, and the City’s Finance Director, are hereby authorized and directed to send a certified copy of this resolution and a Notice of Lien for the delinquent fines (as special assessments), and all other appropriate documentation to place the fines in the tax roll to the San Bernardino County Auditor-Controller/Treasurer/Tax Collector for the County of San Bernardino.
Redlands Regular Meeting of 07-19-22 834 of 974
ADOPTED, SIGNED AND APPROVED this 19th day of July, 2022.
Paul T. Barich, Mayor
ATTEST:
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 835 of 974
I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof, held on the 19th day of July, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 836 of 974
JULY 6, 2022
XXXXXXX
XXXXXXX
XXXXX
RE: APN XXXXX
PREMISE ADDRESS: XXXX
DELINQUENT BALANCE AS OF THIS NOTICE: $XXX.00
NOTICE OF PUBLIC HEARING
This notice is to inform you that on Tuesday, July 19, 2022 at 6:00 p.m., or as soon thereafter as the matter may be heard, in the City of Redlands Council Chambers located at 35 Cajon St., Suite 2, Redlands, California, the Redlands City Council will hold a public hearing to consider the submittal of a report to the Auditor of San Bernardino County for recordation of a Special Assessment on the 2022-2023 tax roll against your property resulting from non-payment of a City of Redlands Administrative Citation.
Pursuant to Section 1.22.130 of the Redlands Municipal Code, you have the opportunity to present objections to the City Council regarding this matter. Alternatively, you may submit your objections in writing at least five (5) days in advance of the hearing, or by Thursday, July 14, 2022.
To prevent this impending lien action, please remit your past due balance in full no later than 5:00 p.m. on Monday, August 22, 2022.
Please be informed that if the assessment is imposed on your property, that the property may be sold after three years by the tax collector for unpaid delinquent assessments. The tax collector’s power of sale shall not be affected by the failure of a property owner to receive notice. The assessment may be collected at the same time and in the same manner as ordinary municipal taxes are collected, and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for ordinary municipal taxes.
For questions regarding this matter, please contact Glenn Vargas, Facilities and Community Services Department Senior Code Enforcement Officer, at (909) 335-4737 or [email protected] .
Redlands Regular Meeting of 07-19-22 837 of 974
CITY OF REDLANDS Legend:
ADMINISTRATIVE CITATIONS Reconciled with GL
FY: 2021-22_____________
MISCELLANEOUS
Updated as of 6/30/2022
Parcel NUMBER N/S/E/W STREET CITY ZIP FIRST MIDDLE LAST NUMBER N/S/E/W STREET CITY STATE ZIP
CITATION
DATE DUE DATE CITATION# CASE#
CURRENT
FINE
AMOUNT
DELINQUENT
FINE
AMOUNT
25% LATE
PAYMENT
CHARGE
INTEREST
(10% PER
MONTH)
AMOUNT
PAID
AMOUNT
INVOICED
FOR
COLLECTION
RESCINDED
AMOUNT
(FINE &/OR
LATE CHARGE
+ INTEREST TOTAL DUE Count
DATE OF FULL
PAYMENT
HEARING
DATE NOTES DEPARTMENT
0167081400000 779 E Pioneer Ave Redlands 92374 Frank H Rodriquez, Jr 779 E Pioneer Ave Redlands CA 92374 10/13/21 11/02/21 21-0568-1 21-0568 $100 $ 25.00 $ 70.00 $ 195.00 1 0167081400000 Total $0 $100 $ 25.00 $ 70.00 0.00 0.00 0.00 $ 195.00 1 0167101130000 780 W San Bernardino Ave Redlands 92374 Roll Real Estate Development LLC 11444 W Olympic Blvd 10th floor Los Angeles CA 90064 01/18/22 02/07/22 21-0666-1 21-0666 $300 $ 75.00 $ 120.00 $ 495.00 1 0167101130000 Total $0 $300 $ 75.00 $ 120.00 0.00 0.00 0.00 $ 495.00 1 0167123030000 1610 Clay St. Redlands 92374 Mark A Sanchez 14062 Springwater Ln Eastvale CA 92880 05/19/22 06/08/22 21-0819-1 21-0819 $100 $ 25.00 $ - $ 125.00 1 0167123030000 Total $0 $100 $ 25.00 $ - 0.00 0.00 0.00 $ 125.00 1 0167181390000 1418 Texas St Redlands 92374 Holy Trinity C O G I C Holiness 1418 Texas St Redlands CA 92374 01/31/22 02/20/22 21-0245-1 21-0245 $200 $ 50.00 $ 80.00 $ 330.00 1 0167181390000 1418 Texas St Redlands 92374 Holy Trinity C O G I C Holiness 1418 Texas St Redlands CA 92374 02/15/22 03/07/22 21-0245-2 22-0245 $400 $ 100.00 $ 120.00 $ 620.00 1 0167181390000 1418 Texas St Redlands 92374 Holy Trinity C O G I C Holiness 1418 Texas St Redlands CA 92374 03/03/22 03/23/22 21-0245-3 21-0245 $1,000 $ 250.00 $ 300.00 $ 1,550.00 1 0167181390000 Total $0 $1,600 $ 400.00 $ 500.00 0.00 0.00 0.00 $ 2,500.00 3 0167211210000 1411 Washington St Redlands 92374 Mark Solls, Louden LLC 8665 E Hartford Dr STE 200 Scottsdale AZ 85255 05/19/22 06/08/22 21-0825-1 21-0825 $100 $ 25.00 $ - $ 125.00 1 0167211210000 Total $0 $100 $ 25.00 $ - 0.00 0.00 0.00 $ 125.00 1 0167233170000 1231 Webster St Redlands 92374 Margaret R Castro 1231 Webster St Redlands CA 92374 06/09/22 06/29/22 21-0699-1 21-0699 $100 $ 25.00 $ - $ 125.00 1 0167233170000 Total $0 $100 $ 25.00 $ - 0.00 0.00 0.00 $ 125.00 1 0167301130000 1157 Alta St Redlands 92374 Dorothy Stogsdill 1157 Alta St Redlands CA 92374 12/08/21 12/28/21 21-0374-1 21-0374 $100 $ 25.00 $ 60.00 $ 185.00 1 0167301130000 Total $0 $100 $ 25.00 $ 60.00 0.00 0.00 0.00 $ 185.00 1 0167771200000 1501 Ohio St Redlands 92374 Jerome G Tuazon 1324 N New Hampshire Ave Unit 102 Los Angeles CA 90027 05/25/22 06/14/22 21-0410-1 21-0410 $100 $ 25.00 $ - $ 125.00 1 0167771200000 Total $0 $100 $ 25.00 $ - 0.00 0.00 0.00 $ 125.00 1 0168437090000 1502 E Brockton Ave Redlands 92374 Henry Jian Phan CCG Holdings SPE LLC 9126 Ralph St Rosemead CA 91770 05/12/22 06/01/22 22-0158-1 22-0158 $100 $ 25.00 $ - $ 125.00 1 0168437090000 1502 E Brockton Ave Redlands 92374 1502 Brockton CCG Holdings LLC 9126 Ralph St Rosemead CA 91770 09/24/21 10/14/21 19-0898-2 19-0898 $100 $ 25.00 $ 80.00 $ 205.00 1 0168437090000 Total $0 $200 $ 50.00 $ 80.00 0.00 0.00 0.00 $ 330.00 2 0168461400000 1400 Padua Ave Redlands 92374 Marcus Ridgway, THR California LP 1717 Main St STE 2000 Dallas TX 75201 05/19/22 06/08/22 21-0846-1 21-0846 $100 $ 25.00 $ - $ 125.00 1 0168461400000 Total $0 $100 $ 25.00 $ - 0.00 0.00 0.00 $ 125.00 1 0169106050000 804 Tribune St Redlands 92374 Olivia M Gonsalez 804 Tribune St Redlands CA 92374 07/30/21 08/19/21 19-0747-1 19-0747 $400 $ 100.00 $ 400.00 $ 900.00 1 0169106050000 804 Tribune St Redlands 92374 Olivia M Gonsalez 804 Tribune St Redlands CA 92374 08/12/21 09/01/21 19-0747-2 19-0747 $800 $ 200.00 $ 720.00 $ 1,720.00 1 0169106050000 804 Tribune St Redlands 92374 Olivia M Gonsalez 804 Tribune St Redlands CA 92374 08/25/21 09/14/21 19-0747-3 19-0747 $1,500 $ 375.00 $ 1,350.00 $ 3,225.00 1 0169106050000 Total $0 $2,700 $ 675.00 $ 2,470.00 0.00 0.00 0.00 $ 5,845.00 3 0169111170000 1003 W Colton Ave Redlands 92374 Bakul Patel 1371 W Redlands Blvd Redlands CA 92373 08/26/21 09/15/21 21-0444-1 21-0444 $100 $ 25.00 $ 90.00 $ 215.00 1 0169111170000 Total $0 $100 $ 25.00 $ 90.00 0.00 0.00 0.00 $ 215.00 1 0169281450000 340 N Eureka St Redlands 92374 Hsieh Jackson, Spirit Master Funding X LLC 2275 W 190th st Torrance CA 90504 12/08/21 12/28/21 21-0630-4 21-0630 $2,700 $ 675.00 $ 1,620.00 $ 4,995.00 1 0169281450000 Total $0 $2,700 $ 675.00 $ 1,620.00 0.00 0.00 0.00 $ 4,995.00 1 0170051080000 1314 E Brockton Ave Redlands 92374 Christina M Villa 1314 E Brockton Ave Redlands CA 92374 05/11/22 05/31/22 21-0457-1 21-0457 $200 $ 50.00 $ - $ 250.00 1 0170051080000 Total $0 $200 $ 50.00 $ - 0.00 0.00 0.00 $ 250.00 1 0170321160000 8 Crafton Ct Redlands 92374 Tony L Butler 8 Crafton Ct Redlands CA 92374 09/22/21 10/12/21 18-0735-1 18-0735 $500 $ 125.00 $ 400.00 $ 1,025.00 1 0170321160000 8 Crafton Ct Redlands 92374 Tony L Butler 8 Crafton Ct Redlands CA 92374 11/18/21 12/08/21 18-0735-2 18-0735 $800 $ 200.00 $ 480.00 $ 1,480.00 1 0170321160000 Total $0 $1,300 $ 325.00 $ 880.00 0.00 0.00 0.00 $ 2,505.00 2 0171022040000 905 W Stuart Ave Redlands 92373 Property One LLC PO Box 7538 Redlands CA 92373 09/09/21 09/29/21 21-0544-1 21-0544 $100 $ 25.00 $ 90.00 $ 215.00 1 0171022040000 Total $0 $100 $ 25.00 $ 90.00 0.00 0.00 0.00 $ 215.00 1 0171022050000 821 W Stuart Ave Redlands 92374 Property One LLC PO Box 7538 Redlands CA 92375 09/09/21 09/29/21 21-0545-1 21-0545 $200 $ 50.00 $ 180.00 $ 430.00 1 0171022050000 Total $0 $200 $ 50.00 $ 180.00 0.00 0.00 0.00 $ 430.00 1 0171031160000 501 W Redlands Blvd Redlands 92373 BSD 501 Redlands LLC 4221 Wilshire Blvd Unit 282 Los Angeles CA 90010 07/13/21 08/02/21 21-0287-1 21-0287 $100 $ 25.00 $ 100.00 $ 225.00 1 0171031160000 Total $0 $100 $ 25.00 $ 100.00 0.00 0.00 0.00 $ 225.00 1 0171061280000 16 E Redlands Blvd Redlands 92373 Debbie S. Marquez 7926 Westgate Ct Riverside CA 92506 04/06/22 04/26/22 22-0124-1 22-0124 $200 $ 50.00 $ 40.00 $ 290.00 1 0171061280000 Total $0 $200 $ 50.00 $ 40.00 0.00 0.00 0.00 $ 290.00 1 0171089170000 539 E Redlands Blvd Redlands 92374 ACAA Limited Partnership 29848 Live Oak Canyon Rd Redlands CA 92373 10/14/21 11/03/21 21-0143-1 21-0143 $100 $ 25.00 $ 70.00 $ 195.00 1 0171089170000 Total $0 $100 $ 25.00 $ 70.00 0.00 0.00 0.00 $ 195.00 1 0171122160000 102 E State St Redlands 92373 Armen Ohanian TR 9/20/88 5546 N Rosemead Blvd Unit 201 Temple City CA 91780 07/29/21 08/18/21 21-0237-1 21-0237 $100 $ 25.00 $ 100.00 $ 225.00 1 0171122160000 Total $0 $100 $ 25.00 $ 100.00 0.00 0.00 0.00 $ 225.00 1 0172021120000 7 S San Mateo St Redlands 92373 Amy P Bowman 7 S San Mateo St Redlands CA 92373 11/04/21 11/24/21 21-0263-1 21-0263 $ 100.00 $ 25.00 $ 70.00 $ 195.00 1 0172021120000 Total $0 $ 100.00 $ 25.00 $ 70.00 0.00 0.00 0.00 $ 195.00 1 0172022450000 24 Dale Ln Redlands 92373 Alice Bauer 24 Dale Ln Redlands CA 92373 08/17/21 09/06/21 21-0274-1 21-0274 $100 $ 25.00 $ 90.00 $ 215.00 1 10/20/2021 Citation is to be redicued from $200 to $100- Per the Hearing Officer 0172022450000 Total $0 $100 $ 25.00 $ 90.00 0.00 0.00 0.00 $ 215.00 1 0172191280000 1004 W Fern Ave Redlands 92373 Nicholas P Wallingford 1004 W Fern Ave Redlands CA 92373 09/20/21 10/10/21 21-0258-3 21-0258 $600 $ 150.00 $ 480.00 $ 1,230.00 1 0172191280000 Total $0 $600 $ 150.00 $ 480.00 0.00 0.00 0.00 $ 1,230.00 1 0172363060000 624 Nottingham Dr Redlands 92373 Jay Murvine 1835 Rossmont Dr Redlands CA 92373 11/04/21 11/24/21 20-0880-1 20-0880 $200.00 $ 50.00 $ 140.00 $ 390.00 1 Admin citation issued to PO with
updated address
0172363060000 624 Nottingham Dr Redlands 92373 Jay Murvine 1835 Rossmont Dr Redlands CA 92373 11/18/21 12/08/21 20-0880-2 20-0880 $400 $ 100.00 $ 240.00 $ 740.00 1 0172363060000 Total $0 $600 $ 150.00 $ 380.00 0.00 0.00 0.00 $ 1,130.00 2 0172401100000 1250 W Palm Ave Redlands 92373 Vadim Kandalov 1250 W Palm Ave Redlands CA 92373 01/31/22 02/20/22 19-0885-3 19-0885 $100 $ 25.00 $ 40.00 $ 165.00 1 0172401100000 1250 W Palm Ave Redlands 92373 Vadim Kandalov 1250 W Palm Ave Redlands CA 92373 07/21/21 08/10/21 19-0885-1 19-0885 $100 $ 25.00 $ 100.00 $ 225.00 1 0172401100000 1250 W Palm Ave Redlands 92373 Vadim Kandalov 1250 W Palm Ave Redlands CA 92373 03/08/22 03/28/22 19-0885-4 19-0885 $200 $ 50.00 $ 60.00 $ 310.00 1 0172401100000 1250 W Palm Ave Redlands 92373 Vadim Kandalov 1250 W Palm Ave Redlands CA 92373 09/14/21 10/04/21 19-0885-2 19-0885 $200 $ 50.00 $ 160.00 $ 410.00 1 0172401100000 Total $0 $600 $ 150.00 $ 360.00 0.00 0.00 0.00 $ 1,110.00 4 0172421240000 127 Carmody St Redlands 92373 John Tekin 127 Carmody St Redlands CA 92373 03/14/22 04/03/22 21-0468-2 21-0468 $100 $ 25.00 $ 20.00 $ 145.00 1 0172421240000 127 Carmody St Redlands 92373 John Tekin 127 Carmody St Redlands CA 92373 03/02/22 03/22/22 21-0468-1 21-0468 $100 $ 25.00 $ 30.00 $ 155.00 1 0172421240000 127 Carmody St Redlands 92373 John Tekin 127 Carmody St Redlands CA 92373 03/31/22 04/20/22 21-0468-3 21-0468 $200 $ 50.00 $ 40.00 $ 290.00 1 0172421240000 127 Carmody St Redlands 92373 John Tekin 127 Carmody St Redlands CA 92373 04/28/22 05/18/22 21-0468-4 21-0468 $500 $ 125.00 $ 50.00 $ 675.00 1 0172421240000 Total $0 $900 $ 225.00 $ 140.00 0.00 0.00 0.00 $ 1,265.00 4 0172441350000 123 Terracina Blvd Redlands 92373 Yanit, E C & G L Family Trust (7-17- 2019 S Second St Alabama CA 91803 07/06/21 07/26/21 21-0141-3 21-0141 $1,700 $ 425.00 $ 1,870.00 $ 3,995.00 1 0172441350000 123 Terracina Blvd Redlands 92373 Yanit, E C & G L Family Trust (7-17- 2019 S Second St Alabama CA 91803 08/26/21 09/15/21 21-0141-4 21-0141 $3,000 $ 750.00 $ 2,700.00 $ 6,450.00 1 0172441350000 Total $0 $4,700 $ 1,175.00 $ 4,570.00 0.00 0.00 0.00 $ 10,445.00 2 0173222020000 453 Chestnut Ave Redlands 92373 Thomas Befort PO Box 1110 Big Bear Lake CA 92315 01/20/22 02/09/22 20-0849-1 20-0849 $100 $ 25.00 $ 40.00 $ 165.00 1 0173222020000 Total $0 $100 $ 25.00 $ 40.00 0.00 0.00 0.00 $ 165.00 1 0173342110000 1005 Coronado Dr Redlands 92374 Lionel O. Huggins 1005 Coronado Dr Redlands CA 92374 09/20/21 10/10/21 21-0562-1 21-0562 $200 $ 50.00 $ 160.00 $ 410.00 1 0173342110000 Total $0 $200 $ 50.00 $ 160.00 0.00 0.00 0.00 $ 410.00 1 0174011110000 516 W Crescent Ave Redlands 92373 Shawn Joseph Ori 516 W Crescent Ave Redlands CA 92373 11/22/21 12/12/21 21-0161-2 21-0161 $200 $ 50.00 $ 120.00 $ 370.00 1 0174011110000 516 W Crescent Ave Redlands 92373 Shawn Joseph Ori 516 W Crescent Ave Redlands CA 92373 08/17/21 09/06/21 21-0161-1 21-0161 $200 $ 50.00 $ 180.00 $ 430.00 1 0174011110000 Total $0 $400 $ 100.00 $ 300.00 0.00 0.00 0.00 $ 800.00 2 0174103230000 114 Franklin Ave Redlands 92373 Cantelupe, Jerry Family TR 5-7-09 114 Franklin Ave Redlands CA 92373 02/24/22 03/16/22 20-0838-1 20-0838 $200 $ 50.00 $ 60.00 $ 310.00 1 0174103230000 Total $0 $200 $ 50.00 $ 60.00 0.00 0.00 0.00 $ 310.00 1 0174161400000 1309 Farview Ln Redlands 92374 Sally Km, Meadowbrook Homes, INC. C/O Sally Kim 2221 W Olympic Blvd Los Angeles CA 90006 09/23/21 10/13/21 20-0702-1 20-0702 $200 $ 50.00 $ 160.00 $ 410.00 1 0174161400000 1309 Farview Ln Redlands 92374 Sally Km, Meadowbrook Homes, INC. C/O Sally Kim 2221 W Olympic Blvd Los Angeles CA 90006 11/16/21 12/07/21 20-0702-2 20-0702 $400 $ 100.00 $ 240.00 $ 740.00 1 0174161400000 Total $0 $600 $ 150.00 $ 400.00 0.00 0.00 0.00 $ 1,150.00 2 0174253220000 328 E Sunset Dr N Redlands 92373 George Irey PO Box 567 Fallbrook CA 92028 11/08/21 11/23/21 21-0355-1 21-0355 $ 100.00 $ 25.00 $ 70.00 $ 195.00 1 0174253220000 Total $0 $ 100.00 $ 25.00 $ 70.00 0.00 0.00 0.00 $ 195.00 1 0175053180000 1058 W Highland Ave Redlands 92373 Matthew S Bennett 347 Campbell Ave Redlands CA 92373 12/16/21 01/06/22 21-0435-1 21-0435 $100 $ 25.00 $ 50.00 $ 175.00 1 0175053180000 Total $0 $100 $ 25.00 $ 50.00 0.00 0.00 0.00 $ 175.00 1 0175144180000 1240 W Sunset Dr Redlands 92373 Forrest F Trust - Est of, Cathey PO Box 115 Alachua FL 32616 06/08/22 06/29/22 21-0178-1 21-0178 $200 $ 50.00 $ - $ 250.00 1 Mailed on 6/09/22 0175144180000 Total $0 $200 $ 50.00 -$ 0.00 0.00 0.00 $ 250.00 1 0175302150000 826 Nottingham Dr Redlands 92373 Jimmy Villegas 826 Nottingham Dr Redlands CA 92373 09/21/21 10/11/21 21-0436-1 21-0436 $ 100.00 $ 25.00 $ 80.00 $ 205.00 1 0175302150000 Total $0 $ 100.00 $ 25.00 $ 80.00 0.00 0.00 0.00 $ 205.00 1 0175451090000 1446 Sterling Rd Redlands 92373 Armando Rubi 11244 Felson St Cerritos CA 90703 08/25/21 09/14/21 20-0359-1 20-0359 $100 $ 25.00 $ 90.00 $ 215.00 1 0175451090000 Total $0 $100 $ 25.00 $ 90.00 0.00 0.00 0.00 $ 215.00 1 0176074040000 1645 Halsey St Redlands 92373 Eugene P Stecz 1225 Ocean Front Lauguna Beach CA 92651 03/09/22 03/29/22 21-0209-1 21-0209 $100 $ 25.00 $ 30.00 $ 155.00 1 0176074040000 1645 Halsey St Redlands 92373 Eugene P Stecz 1225 Ocean Front Lauguna Beach CA 92651 04/14/22 05/04/22 21-0209-2 21-0209 $200 $ 50.00 $ 20.00 $ 270.00 1 0176074040000 1645 Halsey St Redlands 92373 Eugene P Stecz 1225 Ocean Front Lauguna Beach CA 92651 04/26/22 05/16/22 21-0209-3 21-0209 $500 $ 125.00 $ 50.00 $ 675.00 1 0176074040000 Total $0 $800 $ 200.00 $ 100.00 0.00 0.00 0.00 $ 1,100.00 3 0176392060000 458 Marilyn Ln Redlands 92373 Stephanie A Blair PO Box 12084 San Bernardino CA 92423 07/06/21 07/26/21 19-0633-4 19-0633 $2,300 $ 575.00 $ 2,530.00 $ 5,405.00 1 0176392060000 458 Marilyn Ln Redlands 92373 Stephanie A Blair PO Box 12084 San Bernardino CA 92423 08/19/21 09/08/21 19-0633-5 19-0633 $2,600 $ 650.00 $ 2,340.00 $ 5,590.00 1 0176392060000 Total $0 $4,900 $ 1,225.00 $ 4,870.00 0.00 0.00 0.00 $ 10,995.00 2 0176421020000 Duramany Koromah PO Box 8275 Redlands CA 92373 05/24/22 06/13/22 21-0264-1 21-0264 $100 $ 25.00 -$ $ 125.00 1
VIOLATION ADDRESS NAME ADDRESS
C:\Users\DESTIN~2\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@043E40DC\@BCL@043E40DC\Preliminary List 1 of 2 Redlands Regular Meeting of 07-19-22 838 of 974
Parcel NUMBER N/S/E/W STREET CITY ZIP FIRST MIDDLE LAST NUMBER N/S/E/W STREET CITY STATE ZIP
CITATION
DATE DUE DATE CITATION# CASE#
CURRENT
FINE
AMOUNT
DELINQUENT
FINE
AMOUNT
25% LATE
PAYMENT
CHARGE
INTEREST
(10% PER
MONTH)
AMOUNT
PAID
AMOUNT
INVOICED
FOR
COLLECTION
RESCINDED
AMOUNT
(FINE &/OR
LATE CHARGE
+ INTEREST TOTAL DUE Count
DATE OF FULL
PAYMENT
HEARING
DATE NOTES DEPARTMENT
VIOLATION ADDRESS NAME ADDRESS
0176421020000 Duramany Koromah PO Box 8275 Redlands CA 92373 06/06/22 06/26/22 21-0264-2 21-0264 $200 $ 50.00 $ - $ 250.00 1 0176421020000 Total $0 $300 $ 75.00 $ - 0.00 0.00 0.00 $ 375.00 2 0292064240000 2050 W Redlands Blvd Redlands 92374 Wal-Mart Real Estate Business Trust PO Box 8050 Ms 0555 Bentonville AR 72712 10/08/21 10/25/21 21-0597-1 21-0597 $300 $ 75.00 $ 240.00 $ 615.00 1 0292064240000 2050 W Redlands Blvd Redlands 92374 Wal-Mart Real Estate Business Trust PO Box 8050 Ms 0555 Bentonville AR 72712 04/06/22 04/26/22 21-0597-3 21-0597 $1,500 $ 375.00 $ 300.00 $ 2,175.00 1 0292064240000 Total $0 $1,800 $ 450.00 $ 540.00 0.00 0.00 0.00 $ 2,790.00 2 0300071160000 30948 E Sunset Dr South Redlands 92373 Miles Trust 4/21/08 30948 E Sunset Dr South Redlands CA 92373 09/16/21 10/06/21 21-0041-3 21-0041 $1,500 $ 375.00 $ 1,200.00 $ 3,075.00 1 0300071160000 Total $0 $1,500 $ 375.00 $ 1,200.00 0.00 0.00 0.00 $ 3,075.00 1 0301142320000 31727 Avenue N Redlands 92373 Vanderfin, Lars 2015 Trust 31727 Avenue N Redlands CA 92373 09/08/21 09/28/21 21-0289-1 21-0289 $100 $ 25.00 $ 90.00 $ 215.00 1 0301142320000 Total $0 $100 $ 25.00 $ 90.00 0.00 0.00 0.00 $ 215.00 1 1212151070000 855 Gail Ave Redlands 92374 Chan K Bertram & Marie N 2007 Rev T 1534 Orillia Ct Sunnyvale CA 94087 10/21/21 11/05/21 21-0286-1 21-0286 $200 $ 50.00 $ 140.00 $ 390.00 1 1212151070000 855 Gail Ave Redlands 92374 Chan, Bertram K & Marie N 2007 REV T 1534 Orillia Ct Sunnyvale CA 94087 06/09/22 06/29/22 21-0286-2 21-0286 $400 $ 100.00 $ - $ 500.00 1 1212151070000 Total $0 $600 $ 150.00 $ 140.00 0.00 0.00 0.00 $ 890.00 2 1212151290000 1560 N Church St Redlands 92374 C/O Sivaganesh V. Ameya Corp. / Mullapudi 6694 Cowboy St Simi Valley CA 93063 04/28/22 05/18/22 22-0183-1 22-0183 $200 $ 50.00 $ 20.00 $ 270.00 1 1212151290000 Total $0 $200 $ 50.00 $ 20.00 0.00 0.00 0.00 $ 270.00 1 1212271510000 1104 E Pennsylvania Ave Redlands 92374 Gary W Carruthers 13059 E Turquoise Ave Scottsdale AZ 85259 04/18/22 05/05/22 22-0161-1 22-0161 $100 $ 25.00 $ 10.00 $ 135.00 1 1212271510000 1104 E Pennsylvania Ave Redlands 92374 Gary W Carruthers 13059 E Turquoise Ave Scottsdale AZ 85259 05/09/22 05/29/22 22-0161-2 22-0161 $200 $ 50.00 $ 20.00 $ 270.00 1 1212271510000 Total $0 $300 $ 75.00 $ 30.00 0.00 0.00 0.00 $ 405.00 2 Grand Total $0 $30,800 $ 7,700.00 $ 20,800.00 0.00 0.00 0.00 $ 59,300.00 70 C:\Users\DESTIN~2\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@043E40DC\@BCL@043E40DC\Preliminary List 2 of 2 Redlands Regular Meeting of 07-19-22 839 of 974
City Council Meeting L. 1.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of Resolution No. 8370 Ordering the Submission to the Qualified Voters of the City of Redlands, an Initiative Ordinance Titled, "Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 4.2B and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035" for the November 8, 2022 Election (City Clerk Donaldson)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to adopt Resolution No. 8370.
RECOMMENDATION:
Staff recommends the City Council adopt Resolution No. 8370, ordering the submission to the qualified voters of the City of Redlands, an Initiative Ordinance titled, "Initiative Ordinance of the People of Redlands Amending Sections 1A.0,
4.2B and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035" and providing for the ballot question for consideration by the voters at the general municipal election to be held on November 8, 2022.
DISCUSSION:
On August 3, 2021, the City Council of the City of Redlands, adopted Resolution No. 8241, acknowledging receipt of an initiative petition and ordering the submission to the qualified voters of the City of Redlands, an Initiative Ordinance Titled, "Initiative Ordinance of the People of Redlands Amending Sections 1A.0,
4.2B and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035" and ordering the submission, without alteration, of the Initiative Ordinance to the qualified voters of the City at the regular municipal election to be held on November 8, 2022.
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be held on November 8, 2022.
Resolution No. 8370 provides for the ballot question to be put before the qualified voters of the City of Redlands at the November 8, 2022, election and shall read as follows:
"Shall the Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 4.2B and 4.40s Principles of
Managed Growth of the City of Redlands General Plan 2035 be adopted?"
Yes
No
ALTERNATIVES:
The final day to submit an ordinance/measure to the San Bernardino County Registrar of Voters is August 12, 2022.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
Jeanne Donaldson, City Clerk
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Jeanne Donaldson, City Clerk
Fiscal Impact
Discussion:
The estimated cost for one ballot measure is currently estimated at approximately $81,500 and has been included in the City Clerk's Election budget for FY 2022-23.
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Attachments
Resolution No. 8370 Ordering Submission Initiative Ordinance Redlands Regular Meeting of 07-19-22 842 of 974
RESOLUTION NO. 8370
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS,
CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED VOTERS AN INITIATIVE ORDINANCE TITLED, “INITIATIVE ORDINANCE OF THE PEOPLE OF REDLANDS AMENDING SECTIONS 1A.0, 4.2B AND 4.40S
PRINCIPLES OF MANAGED GROWTH OF THE CITY OF REDLANDS
GENERAL PLAN 2035,” AS REQUIRED BY THE PROVISION OF THE LAWS
OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES WHEREAS, pursuant to authority provided by statute, a petition was filed in with the City Council of the City of Redlands, signed by more than ten percent (10%) of the number of registered voters of the City, to submit to the qualified voters a proposed initiative ordinance titled “Initiative Ordinance Submitted by the People of Redlands Amending Sections 1A.0, 4.2B and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035” (Initiative Ordinance”); and
WHEREAS, the City Clerk caused an examination of the records of voter registration, by the Registrar of Voters of the County of San Bernardino, and ascertained that the petition was signed by more than ten percent (10%), and has so certified; and WHEREAS, on August 3, 2021, the City Council of the City of Redlands, pursuant to authority provided by statute, adopted Resolution No. 8241, acknowledging receipt of the certified petition for the a proposed Initiative Ordinance titled “Initiative Ordinance submitted by the People of Redlands Amending Sections 1A.0, 4.2B and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035” and ordering the submission, without alteration, of the Initiative Ordinance to the qualified voters of the City at the City’s regular municipal election to be held on November 8, 2022;
WHEREAS, under the provisions of the laws relating to General Law cities in the State of California, a General Municipal Election may be held on Tuesday, November 8, 2022; and WHEREAS, on June 7, 2022, the City Council of the City of Redlands adopted Resolution No. 8317, calling and giving notice of the holding a General Municipal Election; and WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the polling places and election officers of the two elections be the same, and that the San Bernardino County Registrar of Voters canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.
NOW, THEREFORE, the City Council of the City of Redlands, California, does hereby resolve, declare, determine and order as follows:
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Section 1. That the City Council, as directed by statute to submit the proposed Initiative Ordinance titled “Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 4.2B and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035” to the qualified voters of the City, shall do so in the form of the following question:
“Shall the Initiative Ordinance of the People of
Redlands Amending Sections 1A.0, 4.2B and
4.40s Principles of Managed Growth of the City of
Redlands General Plan 2035 be adopted?”
Yes
No
Section 2. That the text of the Initiative Ordinance submitted to the voters is attached hereto as Exhibit A and made a part thereof.
Section 3. That the ballots to be used at the election shall be in form and content as required by law.
Section 4. That the City Clerk of the City of Redlands is hereby authorized, instructed, and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct said election.
Section 5. That the polls for said election shall be open at 7:00 A.M. of the day of said election and shall remain open continuously from said time until 8:00 P.M. of the same day when said polls shall be closed, except as provided in Section 14401 of the California Elections Code.
Section 6. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.
Section 7. That notice of the time and place of holding of the election is given and the City Clerk is hereby authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law.
Section 8. Pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2022, for the purpose of submitting to the voters the question relating to the Initiative Ordinance. That the Board of Supervisors of said County is hereby requested to issue instructions to the Registrar of Voters of said County to take any and all steps necessary for the consolidation of the General Municipal Election with said County election.
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Section 9. That the Registrar of Voters of said County is authorized to canvass the returns of the General Municipal Election and provide necessary services pertaining to the election to be held on Tuesday, November 8, 2022.
Section 10. That the City Council of the City of Redlands recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any such costs.
Section 11. That the City Clerk of the City of Redlands is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Registrar of Voters of the County of San Bernardino.
ADOPTED, SIGNED AND APPROVED this 19th day of July, 2022. _____________________________
Paul T. Barich, Mayor
ATTEST:
________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 845 of 974
I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 19th day of July, 2022.
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 846 of 974
EXHIBIT “A”
INITIATIVE ORDINANCE
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City Council Meeting L. 2.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of Resolution No. 8371 Setting Rules for Filing of Written Arguments Regarding an Initiative Ordinance to be submitted at the November 8, 2022, General Municipal Election (City Clerk Donaldson)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to approve Resolution No. 8371.
RECOMMENDATION:
It is recommended that the City Council approve Resolution No. 8371, a resolution of the City Council of the City of Redlands, California, setting rules for the filing of written arguments regarding an Initiative Ordinance titled, "Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 4.2B and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035" for the November 8, 2022 election.
DISCUSSION:
Resolution No. 8371 is a resolution setting rules for the filing of written arguments regarding an Initiative Ordinance submitted by Redlanders for Responsible Growth Management (RRGM), titled, "Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 4.2B and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035" for the November 8, 2022 election.
The last day for receipt of primary arguments for or against the RRGM Initiative Ordinance, not exceeding 300 words, has been established at 5:00 P.M. on August 22, 2022 in the City Clerk's Office, Civic Center, 35 Cajon Street, Suite Redlands Regular Meeting of 07-19-22 852 of 974
August 22, 2022 in the City Clerk's Office, Civic Center, 35 Cajon Street, Suite 4, Redlands, California. The last day for receipt of rebuttal arguments not exceeding 250 words has been established at 5:00 P.M. on August 26, 2022, in the City Clerk's Office, Civic Center, 35 Cajon Street, Suite 4, Redlands, California.
ALTERNATIVES:
Approving Resolution No. 8371 is required in order to submit the measure to the qualified voters at the November 8, 2022 General Municipal Election.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
Jeanne Donaldson, City Clerk
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
PREPARED BY:
Jeanne Donaldson, City Clerk
Fiscal Impact
Discussion:
There is no impact to the General Fund for setting priorities for filing a written argument, for or against, a voter initiative petition ordinance, scheduled to be on the November 8, 2022 ballot.
Attachments
Resolution No. 8371 Setting Priorities for Arguments
Redlands Regular Meeting of 07-19-22 853 of 974
RESOLUTION NO.8371
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS,
CALIFORNIA PROVIDING FOR THE FILING OF PRIMARY AND
REBUTTAL ARGUMENTS AND SETTING RULES FOR FILING OF
WRITTEN ARGUMENTS REGARDING AN INITIATIVE ORDINANCE TO
BE SUBMITTED AT THE NOVEMBER 8, 2022 GENERAL MUNICIPAL
ELECTION
WHEREAS, a General Municipal Election is to be held on Tuesday, November 8, 2022 pursuant to Resolution No. 8370 of the City Council, adopted July 19, 2022 at which there will be submitted to the voters the following Initiative Ordinance:
“Shall the Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 4.2B and 4.40s Principles of
Managed Growth of the City of Redlands General Plan 2035 be adopted?”
YES
NO
NOW, THEREFORE, the City Council of the City of Redlands, California, does hereby resolve, declare, determine, and order as follows:
Section 1. The City Council authorizes (i) the City Council or any member(s) of the City Council, (ii) any individual voter eligible to vote on the above Initiative Ordinance, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations, to file a written argument in favor of or against the Initiative Ordinance, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, which arguments may be changed until and including Monday, August 22, 2022 at 5:00 p.m., in the City Clerk’s Office, Civic Center, 35 Cajon Street, Suite 4, Redlands, California, after which no arguments for or against the Initiative Ordinance may be submitted to the City Clerk. Arguments in favor of or against the Initiative Ordinance shall each not exceed 300 words in length. Each argument shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.
The City Council expressly delegates ____________________ to prepare, sign and file, along with four other qualified persons, a written argument in favor of the Initiative Ordinance.
Section 2. That pursuant to Sections 9220 and 9285 of the California Elections Code, when the City Clerk has selected the arguments for and against the Initiative Ordinance which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the Initiative Ordinance to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. The authors may prepare and submit rebuttal arguments not exceeding 250 words. Rebuttal arguments shall be printed in the same manner as Redlands Regular Meeting of 07-19-22 854 of 974
the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.
Section 3. That the last day for receipt of rebuttal arguments not exceeding 250 words has been established as Friday, August 26, 2022 at 5:00 P.M. in the City Clerk's Office, Civic Center, 35 Cajon Street, Suite 4, Redlands, California, and signed by each proponent and by each author, if different, of the rebuttal argument in conformance with the provisions of Section 9600 of the California Elections Code. Rebuttals may be changed or withdrawn by their proponents at any time prior to and including the final date fixed for filing rebuttals.
Section 4. The City Clerk shall comply with all provisions of law establishing priority of arguments for printing and distribution to the voters, and shall take all necessary actions to cause the selected arguments to be printed and distributed to the voters.
Section 5. Pursuant to Section 9280 of the Elections Code, the City Council directs the City Clerk to transmit a copy of the Initiative Ordinance to the City Attorney. The City Attorney shall prepare an impartial analysis of the Initiative Ordinance, not to exceed 500 words in length, showing the effect of the Initiative Ordinance on the existing law and the operation of the Initiative Ordinance. The City Attorney shall transmit such impartial analysis to the City Clerk, who shall cause the analysis to be published in the voter information guide along with the Initiative Ordinance as provided by law. The Impartial Analysis shall be filed by the deadline set for filing of primary arguments as set forth in Section 1 above. The impartial analysis shall include a statement indicating whether the Initiative Ordinance was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Initiative Ordinance is not printed on the ballot, nor in the voter information portion of the sample ballot, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: “The above statement is an impartial analysis of Initiative Ordinance or Measure ____. If you desire a copy of the Initiative Ordinance or Measure, please call the election official’s office at (insert phone number) and a copy will be mailed at no cost to you.”
Section 6. That the provisions of this Resolution shall apply only to the election to be held on November 8, 2022, and shall then be repealed.
ADOPTED, SIGNED AND APPROVED this 19th day of July, 2022. _____________________________
Paul T. Barich, Mayor
ATTEST:
________________________
Jeanne Donaldson, City Clerk
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I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 19th day of July, 2022.
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Jeanne Donaldson, City Clerk
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City Council Meeting L. 3.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of Request by the University of Redlands to Modify the Alternative Measure Placed on the Ballot by the City Council on June 21, 2022 for the November 8, 2022 General Municipal Election; To Place the Modified Alternative Measure as Proposed by the University of Redlands on the Ballot for the November 8, 2022 General Municipal Election; Withdraw Alternative Measure From the Ballot and Repeal Resolution Nos. 8317 and 8319; Determine that Placement of the Modified Alternative Measure is Exempt Pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines; and Calling and Giving Notice of the Holding of a General Municipal Election and a Request to the Board of Supervisors of the County of San Bernardino to Consolidate Said Election with the Statewide Election on November 8, 2022 (Development Services Director
Desatnik/City Attorney Abich Garcia)
MOTION(S):
If the City Council wishes to place the Modified Alternative Measure as proposed by the University of Redlands on the November 8, 2022 ballot, which Measure was negotiated between the University of Redlands and RRGM leadership, and is supported by the University of Redlands, the following motion is provided:
I move to adopt Resolution No. 8374 to submit to the Voters the Modified Alternative Measure which would amend Sections 1A.0, 1A.10, 1.A.30, 4.2B, and 4.41j of the Principles of the Managed Development of the City of Redlands General Plan 2035; determine that placement of the Measure is exempt pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines; and Calling and Giving Notice of the Holding of a General Municipal Election and a Request to the Board of Supervisors of the County of San Bernardino to Consolidate Said Election with the Statewide Election on November 8, 2022.
I further move to adopt Resolution No. 8373 withdrawing the Alternative Redlands Regular Meeting of 07-19-22 857 of 974
Measure placed on the ballot on June 21, 2022 and repealing Resolution Nos. 8317 and 8319.
RECOMMENDATION:
Hear the presentation from the University of Redlands on the Modified Alternative Ballot Measure proposal and determine whether or not to approve placing the measure on the ballot for the November 8, 2022 election as a City-initiated measure and withdrawing the Alternative Measure placed on the ballot on June 21, 2022.
DISCUSSION:
A. Background.
At its meeting on August 3, 2021, the City Council adopted Resolution No. 8241 to submit the initiative ordinance prepared by Redlanders for Responsible Growth Management (the "RRGM Measure") for consideration by the voters at the regular municipal election of November 8, 2022.
In response to the RRGM Measure, the University of Redlands negotiated with the original RRGM authors a substitute to the RRGM Measure (the "Alternative Measure") and requested that the City Council sponsor and approve placement of the Alternative Measure on the November 8, 2022 ballot as a City-initiated measure. According to University representatives, the author of the RRGM Measure agreed to withdraw the RRGM Measure from the ballot if the City Council approved placing the Alternative Measure on the ballot as a City-initiated measure.
On June 21, 2022, the City Council adopted Resolution No. 8317 placing on the ballot the Alternative Measure with the following modifications: 1) removing proposed amendments to Section 4.40s of the General Plan 2035 as it relates to residential density of land zoned “Urban Reserve” or active agricultural land; and 2) removing proposed amendments to Section 4.42m of the General Plan 2035 which would require density for all lands zoned “Resource Preservation” to be developed to the standards of “Rural Living” classification. Attachment C is Resolution No. 8317 which is the Alternative Measure as modified by the City Council and which was placed on the ballot.
B. Discussion.
Following the City Council’s adoption of Resolution No. 8317 placing the Alternative Measure on the ballot, the University has proposed a modification to the Alternative Measure (“Modified Alternative Measure”), as negotiated with the author of the RRGM Measure. The Modified Alternative Measure makes the following change to the Alternative Measure by adding the following language at Redlands Regular Meeting of 07-19-22 858 of 974
Section 1(c):
AMENDMENT OF GENERAL PLAN SECTION 4.41j
Section 4.41j of the Redlands General Plan 2035 shall be amended to read as follows:
All parcels of land encompassed within the area, including those in San Timoteo Canyon, west of the Southeast Area (Figure 4-3), identified Resource Preservation in the Redlands 2035 General Plan Figure 4-5, are hereby zoned Agriculture. on GP Figure 4-5 are subject to the residential density limitations set forth in Section 4.42m and are hereby designated as Resource Preservation as defined in Section 4.96.
Figures 4-3 and 4-5 of the General Plan are attached here as Attachment D for reference.
The above provision, which has been added in the Modified Alternative Measure, will not actually result in the rezoning of any parcels of land, as the land it refers to is already zoned Agriculture. It will, however, prevent the City Council from rezoning this land in the future; by including this provision in the Modified Alternative Measure it would take a future vote of the people to implement a rezoning.
The Modified Alternative Measure carries over provisions in the RRGM Measure that proposes a number of provisions that are not in compliance with State law based on the staff’s analysis of the Alternative Measure in the June 21, 2022 agenda report and the legal analysis obtained by the City from the law firm Devaney, Pate, Morris, & Cameron, LLP attached here as Attachment E.
C. Options
Option 1: The City Council may take action to place the Modified Alternative Measure on the ballot by adopting Resolution No. 8374 (Attachment A). If it does so, it will also be required to withdraw the Alternative Measure which was placed on the ballot on June 21, 2022 by adopting Resolution No. 8373 (Attachment B).
Option 2: The City Council may decline to place the Modified Alternative Measure on the ballot. If the City Council so elects, no further action is necessary. The Alternative Measure placed on the ballot on June 21, 2022 will remain on the ballot.
CEQA:
Should the City Council decide to place the Modified Alternative Measure on the ballot, that decision is exempt from CEQA pursuant to State CEQA Guidelines, Redlands Regular Meeting of 07-19-22 859 of 974
section 15061(b)(3) because there is no possibility that the ballot measure could lead to a direct or reasonably foreseeable indirect impact to the environment. A Notice of Exemption will be prepared if the Modified Alternative Measure is placed on the ballot.
ALTERNATIVES:
If the City Council does not approve placing the Modified Alternative Measure on the ballot, the Alternative Measure placed on the ballot by the City Council on June 21, 2022 will remain on the ballot.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
Yvette M. Abich Garcia, City Attorney
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Janice McConnell, Assistant City Manager
PREPARED BY:
Yvette M. Abich Garcia, City Attorney
Fiscal Impact
Discussion:
N/A
Attachments
Attachment A: Resolution No 8374
Attachment B: Resolution No.8373
Attachment C: Resolution No. 8317 Adopted by the City Council on June 21, 2022
Attachment D: Figures 4-3 and 4-5 of the Redlands General Plan 2035 Attachment E: June 21, 2022 Agenda Report and Legal Analysis from the firm Devaney, Pate, Morris, & Cameron, LLP
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RESOLUTION NO. 8374
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS,
CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A
GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
NOVEMBER 8, 2022, FOR THE ELECTION OF CERTAIN OFFICERS,
REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN
BERNARDINO TO CONSOLIDATE THE ELECTION WITH THE
STATEWIDE GENERAL ELECTION ON THE SAME DATE; AND FOR THE
SUBMISSION OF A BALLOT MEASURE PROPOSING TO AMEND
SECTIONS 1A.0, 1A.10, 1.A.30, 4.2B AND 4.41j OF THE PRINCIPLES OF
MANAGED DEVELOPMENT OF THE CITY OF REDLANDS GENERAL
PLAN 2035.
WHEREAS, under the provisions of the laws relating to General Law cities in the State of California, a General Municipal Election may be held on Tuesday, November 8, 2022, for the election of Municipal Officers; and
WHEREAS, on August 3, 2021, the City Council of the City of Redlands adopted Resolution No. 8241, acknowledging receipt of a certified petition titled, “An Initiative Ordinance submitted by the People of Redlands Amending Sections 1A.0, 4.2B, and 4.40s Principles of Managed Growth of the City of Redlands General Plan 2035” (the “Original Initiative”) and ordering the submission, without alteration, of the initiative ordinance to the qualified voters of the City at the City’s regular municipal election to be held on November 8, 2022; and WHEREAS, in May 2022, the City Council of the City of Redlands received a proposed alternative ballot measure negotiated by the University of Redlands with the authors of the Original Initiative titled, "Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 1A.10,
1.A.30, 4.2B and 4.40s of the Principles of Managed Development of the City of Redlands General Plan 2035,”(“Alternative Measure”) which the University of Redlands requested be placed on the November ballot by the City Council; and
WHEREAS, on June 21, 2022, the City Council adopted Resolution No. 8317 placing the Alternative Measure on the ballot for the November 8, 2022 General Municipal Election with certain modifications to the Alternative Measure; and
WHEREAS, after the City Council adopted Resolution No. 8317, the University of Redlands requested that the Alternative Measure be modified to add proposed amendments to Section 4.41j of the General Plan (“Modified Alternative Measure”); and WHEREAS, it is now desire of this City Council to place the Modified Alternative Measure on the November 8, 2022 ballot.
NOW, THEREFORE, the City Council of the City of Redlands, California, does hereby resolve, declare, determine and order as follows:
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Section 1. That pursuant to the requirements of the laws of the State of California relating to General Law cities within said State there is called and ordered to be held in the City of Redlands, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing one Member of the City Council from District 1, one Member of the City Council from District 3 and one Member of the City Council from District 5, for the full term of four years.
Section 2. That the City Council submits the proposed ballot measure titled, “An Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 1A.10, 1.A.30, 4.2B and
4.41j of the Principles of Managed Development of the City of Redlands General Plan 2035,” to the qualified voters of the City, and shall do so in the form of the following question:
“Shall the Initiative Ordinance of the People of
Redlands Amending Sections 1A.0, 1A.10, 1.A.30,
4.2B and 4.41j of the Principles of Managed
Development of the City of Redlands General Plan
2035 be adopted?”
Yes
No
Section 3. That the text of the ordinance submitted to the voters is attached hereto as Exhibit “A” and made a part thereof.
Section 4. That the ballots to be used at the election shall be in form and content as required by law.
Section 5. That the City Clerk of the City of Redlands is hereby authorized, instructed, and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct said election.
Section 6. That the polls for said election shall be open at 7:00 A.M. of the day of said election and shall remain open continuously from said time until 8:00 P.M. of the same day when said polls shall be closed, except as provided in Section 14401 of the California Elections Code.
Section 7. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.
Section 8. That notice of the time and place of holding of the election is given and the City Clerk is hereby authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law.
Section 9. That the Board of Supervisors of said County is hereby requested to issue instructions to the Registrar of Voters of said County to take any and all steps necessary for the consolidation of the General Municipal Election with said County election.
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Section 10. That the Registrar of Voters of said County is authorized to canvass the returns of the General Municipal Election and provide necessary services pertaining to the election to be held on Tuesday, November 8, 2022.
Section 11. That the City Council of the City of Redlands recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any such costs.
Section 12. That the City Clerk of the City of Redlands is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Registrar of Voters of the County of San Bernardino.
ADOPTED, SIGNED AND APPROVED this 19th day of July, 2022. _____________________________
ATTEST: Paul T. Barich, Mayor
________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 863 of 974
I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 19th day of July, 2022.
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Jeanne Donaldson, City Clerk
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July ___, 2022
Board of Supervisors
County of San Bernardino
County Civic Building
385 North Arrowhead Avenue
San Bernardino, California 92401
RE: ELECTION CONSOLIDATION
Enclosed is a certified copy of Resolution No. 8374 a resolution of the City Council of the City of Redlands, California, calling and giving notice of the holding of a General Municipal Election and requesting the Board of Supervisors of the County of San Bernardino to authorize the Registrar of Voters to canvass the returns and provide the necessary services pertaining to the election to be held on Tuesday, November 8, 2022.
In accordance with Section 9 of this resolution, we are requesting the Board of Supervisors to consent and agree to the consolidation of this general election.
Thank you in advance for your consideration.
Sincerely,
Jeanne Donaldson
City Clerk
JD:ms
Enclosure
xc: Registrar of Voters
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EXHIBIT “A”
INITIATIVE ORDINANCE
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INITIATIVE ORDINANCE OF THE PEOPLE OF REDLANDS AMENDING SECTIONS 1A.0, 1A.10, 1.A.30, 4.2B, AND 4.41j OF THE PRINCIPLES OF MANAGED DEVELOPMENT OF THE CITY OF REDLANDS GENERAL PLAN 2035
WHEREAS, more than 40 years ago, in 1978, the voters of the City of Redlands approved Proposition "R," which established an ordinance enacting certain standards and procedures relating to managing growth within the City of Redlands; and WHEREAS, more than 30 years ago, in 1987, the voters of the City of Redlands approved Measure "N," which in relevant part enacted an ordinance which amended Proposition "R" to enhance the limitations established by Measure R and establish additional development standards within the City; and
WHEREAS, Measures R and N have been codified in the City of Redlands Municipal Code as Title 19, Growth Management; and
WHEREAS, in 1997 the voters of the City of Redlands approved the General Plan amendment commonly known as Measure "U" to assure consistency between the General Plan and growth management limitations and standards established by Measure R and N; and
WHEREAS, the provisions of Measure U have been fully incorporated in the City's current General Plan 2035 in its current form which was enacted on December 5, 2017 (“General Plan 2035”); and
WHEREAS, in order to assure that future development within the City of Redlands occurs in a way that is consistent with the established values and standards enacted by the people of Redlands that promote the social and economic well-being of the entire community, it is necessary to amend certain provisions of General Plan 2035 to:
a. Reduce costly urban sprawl and minimize future tax and utility rate increases while preventing the overcrowding of public school facilities, over-burdening public services such as police and fire, while providing adequate traffic circulation.
b. Preserve, protect and promote agricultural and open space uses c. Preserve the vitality and character of historic and older neighborhoods d. Preserve the vitality and character of the Historic Downtown - Packinghouse District as the primary source of City sales, business license and property tax revenues.
e. Ensure that sufficient developable land exists within the current City boundaries to meet projected housing needs, including housing for low and moderate income families, the handicapped and the elderly, while still preserving the City's quality of life.
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NOW, THEREFORE, THE PEOPLE OF THE CITY OF REDLANDS DO ORDAIN AS FOLLOWS:
SECTION 1. GENERAL PLAN AMENDMENTS- The following provisions of the City's General Plan 2035, Sections 1A.0, 1A.10, 1.A.30, 4.2B, and 4.41j are hereby amended to read in their entirety as follows (deletions are shown by strikeout and additions are underlined):
a. AMENDMENT OF GENERAL PLAN 2035 SECTION 1A.0 PRINCIPLES OF
MANAGED DEVELOPMENT
1. 1A.10 PRINCIPLE ONE: The cost of infrastructure required to mitigate the effects of development shall be paid by that new development.
(a)Development fee policy - In accord with the provisions of California Government Code Sections 66000 et. seq., all development projects as defined therein shall be required to pay the development fees to cover 100% of their pro rata share of the cost of any public infrastructure, facilities or services, including without limitation police and fire services, necessitated as a result of such development. The City Council shall set and determine development fees sufficient to cover 100% of the estimated cost of such public infrastructure, facilities and services based on appropriate cost-benefit analyses as required by the provisions of California law.
(b)Socio-Economic Cost/benefit Study and Findings Required - Every development project proposal requiring a General Plan Amendment, Zoning Amendment, Subdivision Map, Specific Plan, Pre-Annexation Agreement for Outside City Utility Connections for non-contiguous properties, or for projects involving structures larger than 5,000 square feet, Conditional Use Permit approval, shall submit a socio-economic analysis and cost/benefit study, which shall also be included in all environmental documents submitted to the extent permitted by law, identifying the source of funding for necessary public infrastructure and reflecting the effect of such development on the City, as part of the application process. The City Council shall publish notice of and hold at least one public hearing at which the public may appear and be heard to consider the socio-economic cost/benefit study. Approval of the development project shall only occur if the socioeconomic study finds and determines to the satisfaction of the City Council that the development project 1) will not create unmitigated physical blight within the City or overburden public services, including without limitation the sufficiency of police and fire protection, and 2) the benefit of the development project to the City outweighs any direct cost to the City that may result. The City Council may, however, approve a development project for which the socio-economic study fails to make the required findings or determinations if the City Council finds and determines upon a 4/5 vote of its total authorized membership that the benefits to the City from the development project outweigh the negative socio-economic effects that may result.
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1) For projects with a residential component, the Cost portion of the Cost/Benefit Study for that component shall be determined by dividing the city General Fund Expenditure Budget by the City Population and multiplying that quotient by the projected population of the project. (c) Impacts of New Development on Public Schools Shall Be Mitigated -A mandatory component of the socio-economic cost/benefit studies shall be an analysis of the effect of the proposed development on public schools facilities and resources, and shall include proposed measures to mitigate any identified adverse impacts on school facilities to the greatest extent permitted under California law.
(d) Exception - The provisions of Section 1A.10 shall not apply to any development, or portion thereof, that is located within the University Street Transit Village, funded by and/or subsidized by the federal, state, or local governments, and subject to a master development permit.
2. 1.A.30 PRINCIPLE THREE - Land use classifications set forth in the Redlands General Plan provide for an appropriate range of densities for residential development and intensity of commercial and industrial development in the City of Redlands.
(a) Number of Land Use Classifications and Density Standards Shall Not Be Increased - The density standards set forth in Paragraph 4.40, Residential Land Use Classifications, of Section 4.0, Land Use Element, of the Redlands General Plan shall not be increased, and no new residential land use classification except for the Transit Village Overlay Zone shall be added, without a vote of the people. (b) Prohibition of Transfers of Density - In order to assure that development occurs in a rational way, no transfer of residential development rights from lands other than those designated for single family residential shall be permitted, and then such transfers of single family residential density shall only be permitted to create or preserve agricultural, open space, school or park uses.
(c) Buildings in the Downtown Transit Village and the University Street Transit Village shall be limited to three (3) stories and a height of forty-three (43) feet from ground level to their highest point visible from the fronting street.
(1) Except: Those buildings that are located within ¼ mile of the transit station that is within the University Street Transit Village and that are subject to a master development plan shall be limited to four (4) stories and a height of sixty-eight (68) feet as measured from the ground level to their highest point visible from the fronting street.
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(2) Except: No building more than two stories or (35) feet in height shall be permitted within an established and constructed single - family residential neighborhood.
(d) Buildings in the Alabama Street, California Street and New York Street Transit Villages shall be limited to four (4) stories and sixty-eight (68) feet in height as measured from the ground level to their highest point as viewed from the fronting street.
(e) No building more than two stories in height shall be permitted adjacent to a single-family dwelling absent written agreement of the dwelling owner(s); however, this section does not apply to properties across a public right of way.
(f) In multi-story structures with a residential living component in the five Transit Villages, parking for two or more bedroom units shall be two covered parking spaces and for one bedroom and studio units shall be one covered parking space. Every five units shall have one guest parking space.
Except: Parking for projects within ¼ mile of the transit station that is within the University Street Transit Village and that are subject to a master development permit shall be governed by a comprehensive parking management plan made part of the
master development permit that establishes all required parking spaces.
(g) Non-residential hotels are permitted and can be developed anywhere in the five Transit Villages, height and size determined by the City Council and are exempt from 1.A.30(c) and (d). b. AMENDMENT OF GENERAL PLAN 2035 SECTION 4.2B
PRINCIPLES OF MANAGED DEVELOPMENT:
B. EXEMPTIONS
1. Vested projects. This initiative measure shall not apply to or affect any property on which a vested right has been legally perfected and acquired prior to the Effective Date pursuant to state law.
2.Special Categories of Development. The provisions of this initiative measure shall not apply to the following:
A. New individual infill construction of single family homes on existing lots of record bounded by developed property as of March 1, 1997 2020:
B. Rehabilitation, remodeling or additions to existing single family residential structures;
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C. Reconstruction or replacement of any uses to the same density, intensity and classification of use as existed on the Effective Date, including non-conforming uses; D. Development directly related to the proposed Metrolink stations in the City of Redlands, including one at the University of Redlands;
E. New development projects subject to Downtown Specific Plan 45, upon a four-fifths (4/5ths) vote of the total authorized membership of the City Council; F. D. Special, temporary or occasional uses of public streets including parades local sporting and cultural events, graduation ceremonies, approved school activities and other occasional public gatherings.
c. AMENDMENT OF GENERAL PLAN SECTION 4.4lj
Section 4.41j of the Redlands General Plan 2035 shall be amended to read as follows:
All parcels of land encompassed within the area, including those in San Timoteo Canyon, west of the Southeast Area (Figure 4-3), identified Resource Preservation in the Redlands 2035 General Plan Figure 4-5, are hereby zoned Agriculture. on GP Figure 4-5 are subject to the residential density limitations set forth in Section
4.42m and are hereby designated as Resource Preservation as defined in Section
4.96. SECTION 2. DEFINITIONS
a."Effective Date" shall mean the date on which this initiative measure was adopted by the City Council of the City of Redlands or on the date on which it was passed by the voters at the polls, whichever comes first. b.“Dwelling” and “dwelling units” shall be defined as any single family residence, apartment or dwelling unit in a multi-unit structure, or mobile home.
SECTION 3. EXEMPTIONS FOR CERTAIN PROJECTS
A. This measure shall apply to all properties and projects covered by its terms, except it shall not apply to any development project which has obtained a vested right as of the effective date of this measure. For purposes of this measure, a vested right shall have been obtained only and if each and all of the following criteria are met:
1. The proposed project has received a building permit or its final discretionary approval.
2. Substantial expenditures have been incurred in good faith reliance on the permit or final discretionary approval.
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3. Substantial construction has been performed in good faith reliance on the permit or final discretionary approval.
B. The substantiality of expenditures incurred and of construction performed and the question of whether or not such expenditures and construction were in good faith are questions of fact to be determined on a case by case basis by the City Council following application by the developer and notice of a public hearing. Actions taken by the developer to speed up or expedite a development project with knowledge of the pendency of this measure shall not be deemed in good faith and shall not qualify for vested rights. Phased projects shall be considered for exemption on a phase by phase basis to the extent permitted by California law. For purposes of section 19.04.060 of this chapter, with regard to water and sewer connections outside the city, an applicant shall qualify for a vested right only if the foregoing criteria are met after the applicant has obtained a water and sewer connection, commitment, or both if both are required, from the City (4 of Measure N, passed by voters 11-3-1987: 17 of Proposition R, passed by voters 11-7- 1978).
C. This initiative measure is not intended and shall not be applied or construed to authorize the City to exercise its powers in a manner which will take private property for public use without payment of just compensation, but shall be interpreted, applied and implemented so as to accomplish its purposes to the maximum constitutionally permissible extent without requiring payment of compensation.
D. If application of this initiative measure to a specific property of record as of the Effective Date would create a taking then the City Council may, upon application by the landowner, allow additional density or uses on such property, upon findings that the level of additional development permitted is the minimum necessary to avoid a taking, and no lesser level of development would be sufficient to avoid a taking.
SECTION 4. SEVERABILITY
A. In interpreting this initiative measure or resolving ambiguity thereof, the City Council and all other city entities charged with implementing or enforcing this initiative measure or any part of it, as well as a reviewing court, shall interpret this initiative measure in the manner which most vigorously and effectively accomplishes its purposes and operative provisions.
B. If any portion of this initiative measure is hereafter determined to be invalid by a court of competent jurisdiction, all remaining portions of this initiative measure shall remain in full force and effect. Each section, subsection, sentence, phrase, part or portion of this initiative measure would have been adopted and passed irrespective of the fact Redlands Regular Meeting of 07-19-22 872 of 974
that any one or more sections, subsections, sentences, phrases, parts or portions be declared invalid or unconstitutional.
SECTION 5. AMENDMENT AND REPEAL
This initiative measure and all of its provisions may be amended or repealed only by a majority vote of the electorate.
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RESOLUTION NO. 8373
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS, CALIFORNIA REPEALING RESOLUTION NOS. 8317 AND 8319,
WITHDRAWING THE ORDER OF ELECTION AND SETTING OF
PRIORITIES FOR FILING WRITTEN ARGUMENTS RELATED THERETO FROM THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION, AND
DIRECTING THE CITY CLERK TO GIVE NOTICE TO THE COUNTY
BOARD OF SUPERVISORS AND THE SAN BERNARDINO COUNTY
REGISTRAR OF VOTERS
WHEREAS, on June 21, 2022, the City Council adopted Resolution No. 8317 calling and giving notice of a general municipal election to be held on November 8, 2022 and ordering the submission to the qualified voters at said election date a proposed ballot measure titled, “Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 1A.10, 1.A.30 and 4.2B, of the Principles of Managed Development of the City of Redlands General Plan 2035,” (“Alternative Measure”) negotiated by the University of Redlands with the original authors of a similar initiative; and
WHEREAS, after the City Council’s adoption of Resolution No. 8317, the University of Redlands requested that the Alternative Measure be revised to add proposed amendments to Section 4.41j of the General Plan (“Modified Alternative Measure”); and WHEREAS, the City Council adopted Resolution No. 8374 to place the Modified Alternative Measure on the ballot and adopted Resolution No. 8375 to set the priorities for the filing of ballot arguments for the Modified Alternative Measure; and WHEREAS, the City Council now wishes by this Resolution to withdraw the Alternative Measure and the setting of priorities for filing ballot arguments related thereto by repealing Resolution Nos. 8317 and 8319.
NOW, THEREFORE, the City Council of the City of Redlands, California, does hereby resolve, declare, determine, and order as follows:
Section 1. Each recital set forth above is adopted as a finding of the City Council as though set forth fully herein.
Section 2. The City Council hereby repeals Resolution Nos. 8317 and 8319.
Section 3. Pursuant to California Elections Code Section 9605, the City Council orders that the initiative ordinance to be placed on the ballot pursuant to Resolution No. 8317 be withdrawn from the November 8, 2022 ballot.
Section 4. The City Council directs the City Clerk to file a certified copy of this Resolution with the Board of Supervisors of the County of San Bernardino and the San Bernardino Registrar of Voters, to inform them of the City’s withdrawal of the Alternative Measure.
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ADOPTED, SIGNED AND APPROVED this 19th day of July, 2022. __________________________
Paul T. Barich, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 07-19-22 875 of 974
I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 19th day of July, 2022.
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Jeanne Donaldson, City Clerk
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RESOLUTION NO 8317
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS,
CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A
GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, FOR THE ELECTION OF CERTAIN OFFICERS, REQUESTING THE
BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO
CONSOLIDATE THE ELECTION WITH THE STATEWIDE GENERAL
ELECTION ON THE SAME DATE, AND FOR THE SUBMISSION OF A BALLOT MEASURE PROPOSING TO AMEND SECTIONS 1A.0, 1A.10, 1. A.30 AND 4.2B
OF THE PRINCIPLES OF MANAGED DEVELOPMENT OF THE REDLANDS GENERAL PLAN 2035
WHEREAS, under the provisions of the laws relating to General Law cities in the State of California, a General Municipal Election may be held on Tuesday, November 8, 2022, for the election of Municipal Officers, and
WHEREAS, on August 3, 2021, the City Council of the City of Redlands adopted Resolution No 8241, acknowledging receipt of a certified petition titled "An Initiative Ordinance submitted by the People of Redlands Amending Sections 1A.0, 4 2B and 4 40s Principles of Managed Growth of the Redlands General Plan 2035" ( the " Original Initiative") and ordering the submission, without alteration, of the initiative ordinance to the qualified voters of the City at the City' s November 2022 regular municipal election to be held on November 8, 2022, and WHEREAS, the City Council of the City of Redlands has received a proposed alternative ballot measure negotiated by the University ofRedlands with the authors ofthe Onginal Initiative titled " Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 1A.10, 1. A.30 and 4.2B of the Principles of Managed Development of the Redlands General Plan 2035," which the University of Redlands has requested be placed on the November ballot by this City Council, and
WHEREAS, the University of Redlands has informed the City Council that the authors of the Original Initiative have agreed to withdraw their Onginal Initiative from the November ballot ifthis City council approves the alternative ballot measure, and WHEREAS, it is now desire ofthis City Council to place the alternative ballot measure on the November 2022 ballot,
NOW, THEREFORE, the City Council of the City of Redlands, California, does hereby resolve, declare, determine and order as follows
Section 1 That pursuant to the requirements of the laws of the State of California relating to General Law cities within said State there is called and ordered to be held in the City of Redlands, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing one Member of the City Council from Distnct 1, one Member of the City Council from Distnct 3 and one Member of the City Council from Distnct 5, for the full term of four years
1 I.\Resolutions\ Res 8300- 8399\ 8317 University of Redlands Ballot Measure.6. 21. 22 ( 002). docx Redlands Regular Meeting of 07-19-22 877 of 974
Section 2 That the City Council submits the proposed ballot measure titled " An Initiative Ordinance of the People ofRedlands Amending Sections 1A.0, 1A. 10, 1. A.30 and 4.2B ofthe Principles of Managed Development of the Redlands General Plan 2035," to the qualified voters of the City, and shall do so in the form ofthe following question Shall the Initiative Ordinance ofthe People of Yes
Redlands Amending Sections 1A.0, 1A. 10, 1. A.30
and 4.2B ofthe Principles of Managed
Development ofthe Redlands General Plan 2035
be adopted?
No
Section 3 That the text of the ordinance submitted to the voters is attached hereto as Exhibit "A" and made a part thereof.
Section 4
required by law
That the ballots to be used at the election shall be in form and content as Section 5 That the City Clerk ofthe City ofRedlands is hereby authonzed, instructed, and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct said election.
Section 6 That the polls for said election shall be open at 7 00 A.M. ofthe day of said election and shall remain open continuously from said time until 8 00 P M of the same day when said polls shall be closed, except as provided in Section 14401 of the California Elections Code Section 7 That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections Section 8 That notice ofthe time and place of holding of the election is given and the City Clerk is hereby authonzed, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law
Section 9 That the Board of Supervisors of said County is hereby requested to issue instructions to the Registrar of Voters of said County to take any and all steps necessary for the consolidation ofthe General Municipal Election with said County election.
Section 10 That the Registrar of Voters of said County is authonzed to canvass the returns ofthe General Municipal Election and provide necessary services pertaining to the election to be held on Tuesday, November 8, 2022
Section 11 That the City Council of the City of Redlands recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any such costs
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Section 12 That the City Clerk of the City of Redlands is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Registrar of Voters of the County of San Bernardino
ADOPTED, SIGNED AND APPROVED this 21 of June, 2022
ATTEST
e Donaldson, City Clerk
Paul T Barich, Mayor
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I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 21 st day of June, 2022
AYES Councilmembers Tejeda, Davis, Guzman -Lowery, Gallagher, Mayor Barich NOES • None
ABSENT None
ABSTAIN None
e Donaldson, City Clerk
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June 23, 2022
Board of Supervisors
County of San Bernardino
County Civic Building
385 North Arrowhead Avenue
San Bernardino, California 92401
RE ELECTION CONSOLIDATION
Enclosed is a certified copy ofResolution No. 8317 a resolution ofthe City Council of the City of Redlands, California, calling and giving notice of the holding of a General Municipal Election for the election of certain officers and for the submission of a City initiated ballot measure proposing to amend sections 1 a 0, 1 a 10, 1 a 30 and 4 2b of the principles of managed development of the Redlands General Plan 2035 Resolution No 8317 also requests the Board of Supervisors of the County of San Bernardino to authorize the Registrar of Voters to canvass the returns and provide the necessary services pertaining to the election to be held on Tuesday, November 8, 2022
In accordance with Section 9 of this resolution, we are requesting the Board of Supervisors to consent and agree to the consolidation ofthis general election Thank you in advance for your consideration
Sincerely,
Jeanne Donaldson
City Clerk
JD ms
Enclosure
xc Registrar ofVoters
Preserving the Past, t3rotecting the Future"
1 \ Resolutions\ Res 8300 8399\ 83Ryn8laky3615511ands Ba11pt Measure.6.1211 f0016sc CA 92373 Redlands Regular Meeting of 07-19-22 881 of 974
EXHIBIT "A"
INITIATIVE ORDINANCE
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INITIATIVE ORDINANCE OF THE PEOPLE OF REDLANDS
AMENDING SECTIONS 1A.0, 1A.10, 1. A.30, and 4.2B OF THE PRINCIPLES OF MANAGED DEVELOPMENT OF THE CITY OF REDLANDS GENERAL PLAN 2035 WHEREAS, more than 40 years ago, m 1978, the voters of the City of Redlands approved Proposition "R," which established an ordinance enacting certain standards and procedures relating to managing growth within the City of Redlands, and WHEREAS, more than 30 years ago, in 1987, the voters of the City of Redlands approved Measure " N," which in relevant part enacted an ordinance which amended Proposition "R" to enhance the limitations established by Measure R and establish additional development standards within the City; and
WHEREAS, Measures R and N have been codified in the City of Redlands Municipal Code as Title 19, Growth Management; and
WHEREAS, in 1997 the voters ofthe City of Redlands approved the General Plan amendment commonly known as Measure "U" to assure consistency between the General Plan and growth management limitations and standards established by Measure R and N, and
WHEREAS, the provisions of Measure U have been fully incorporated in the City's current General Plan 2035 in its current form which was enacted on December 5, 2017 (" General Plan 2035"), and
WHEREAS, in order to assure that future development within the City of Redlands occurs m a way that is consistent with the established values and standards enacted by the people of Redlands that promote the social and economic well-being ofthe entire community, it is necessary to amend certain provisions of General Plan 2035 to a. Reduce costly urban sprawl and minimize future tax and utility rate increases while preventing the overcrowding of public school facilities, over -burdening public services such as police and fire, while providing adequate traffic circulation.
b Preserve, protect and promote agricultural and open space uses c Preserve the vitality and character of historic and older neighborhoods d. Preserve the vitality and character ofthe Historic Downtown - Packinghouse District as the primary source of City sales, business license and property tax revenues.
e Ensure that sufficient developable land exists within the current City boundaries to meet projected housing needs, including housing for low and moderate income families, the handicapped and the elderly, while still preserving the City's quality aide
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NOW, THEREFORE, THE PEOPLE OF THE CITY OF REDLANDS DO ORDAIN AS
FOLLOWS
SECTION 1 GENERAL PLAN AMENDMENTS- The following provisions ofthe City's General Plan 2035, Sections 1A.0, 1A. 10, 1. A 30 and 4.2B are hereby amended to read in their entirety as follows (deletions are shown by strikeout and additions are underlined) a. AMENDMENT OF GENERAL PLAN 2035 SECTION 1A.0 PRINCIPLES OF
MANAGED DEVELOPMENT
1 1A. 10 PRINCIPLE ONE The cost of infrastructure required to mitigate the effects of development shall be paid by that new development.
a)Development fee policy - In accord with the provisions of California Government Code Sections 66000 et. seq , all development projects as defined therein shall be required to pay the development fees to cover 100% of their pro rata share of the cost of any public infrastructure, facilities or services, including without limitation police and fire services, necessitated as a result of such development. The City Council shall set and determine development fees sufficient to cover 100% of the estimated cost of such public infrastructure, facilities and services based on appropriate cost -benefit analyses as required by the provisions of California law
b) Socio-Economic Cost/benefit Study and Findings Required - Every development project proposal requiring a General Plan Amendment, Zoning Amendment, Subdivision Map, Specific Plan, Pre -Annexation Agreement for Outside City Utility Connections for non-contiguous properties, or for projects involving structures larger than 5, 000 square feet, Conditional Use Permit approval, shall submit a socio-economic analysis and cost/benefit study, which shall also be included m all environmental documents submitted to the extent permitted by law, identifying the source of funding for necessary pubhc infrastructure and reflecting the effect of such development on the City, as part of the application process The City Council shall publish notice of and hold at least one public hearing at which the public may appear and be heard to consider the socio- economic cost/benefit study Approval of the development project shall only occur ifthe socioeconomic study finds and determines to the satisfaction of the City Council that the development project 1) will not create unmitigated physical blight within the City or overburden pubhc services, including without limitation the sufficiency of police and fire protection, and 2) the benefit of the development project to the City outweighs any direct cost to the City that may result. The City Council may, however, approve a development project for which the socio- economic study fails to make the required findings or determinations ifthe City Council finds and determines upon a 4/ 5 vote of its total authorized membership that the benefits to the City from the development project outweigh the negative socio- economic effects that may result.
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the city General Fund Expenditure Budget by the City Population and multiplying that quotient by the projected population of the project. c) Impacts ofNew Development on Public Schools Shall Be Mitigated -A mandatory component of the socio- economic cost/benefit studies shall be an analysis ofthe effect of the proposed development on public schools facilities and resources, and shall include proposed measures to mitigate any identified adverse impacts on school facilities to the greatest extent permitted under Cahfornia law
d) Exception - The provisions of Section 1A.10 shall not apply to any development, or portion thereof, that is located within the University Street Transit Village, funded by and/or subsidized by the federal, state, or local governments, and subject to a master development permit. 2 1. A.30 PRINCIPLE THREE - Land use classifications set forth in the Redlands General Plan provide for an appropriate range of densities for residential development and intensity of commercial and industrial development m the City of Redlands
a) Number of Land Use Classifications and Density Standards Shall Not Be Increased - The density standards set forth in Paragraph 4 40, Residential Land Use Classifications, of Section 4 0, Land Use Element, ofthe Redlands General Plan shall not be increased, and no new residential land use classification except for the Transit Village Overlay Zone shall be added, without a vote of the people b) Prohibition of Transfers of Density --In order to assure that development occurs in a rational way, no transfer of residential development rights from lands other than those designated for single family residential shall be permitted, and then such transfers of single family residential density shall only be permitted to create or preserve agricultural, open space, school or park uses
c) Buildings in the Downtown Transit Village and the University Street Transit Village shall be limited to three ( 3) stories and a height of forty-three (43) feet from ground level to their highest point visible from the fronting street.
1) Except. Those buildings that are located within 1/ 4 mile ofthe transit station that is within the University Street Transit Village and that are subject to a master development plan shall be limited to four 4) stones and a height of sixty --eight (68) feet as measured from the ground level to their highest pomt visible from the fronting street. 2) Except. No building more than two stories or (35) feet in height shall be permitted within an estabhshed and constructed single - family residential neighborhood.
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d) Buildings in the Alabama Street, California Street and New York Street Transit Villages shall be limited to four (4) stories and sixty-eight 68) feet in height as measured from the ground level to their highest point as viewed from the fronting street.
e) No building more than two stories in height shall be permitted adjacent to a single-family dwelling absent written agreement of the dwelling owner(s), however, this section does not apply to properties across a public right ofway.
f) In multi -story structures with a residential living component in the five Transit Villages, parking for two or more bedroom units shall be two covered parking spaces and for one bedroom and studio units shall be one covered parking space Every five units shall have one guest parkmg space
Except: Parking for projects within 1/ 4 mile of the transit station that is within the University Street Transit Village and that are subject to a master development permit shall be governed by a comprehensive parking management plan made part ofthe
master development permit that establishes all required parking spaces.
g) Non-residential hotels are permitted and can be developed anywhere in the five Transit Villages, height and size determined by the City Council and are exempt from 1. A.30( c) and ( d). b AMENDMENT OF GENERAL PLAN 2035 SECTION 4 2B
PRINCIPLES OF MANAGED DEVELOPMENT
B EXEMPTIONS
1 Vested projects This initiative measure shall not apply to or affect any_property on which a vested right has been legally perfected and acquired prior to the Effective Date pursuant to state law
2.Special Categories ofDevelopment. The provisions of this initiative measure shall not apply to the following
A. New individual infill construction of single family homes on existing lots of record bounded by developed property as of March 1, 4-99-7 2020 B Rehabilitation, remodeling or additions to existing single family residential structures,
C Reconstruction or replacement of any uses to the same density, intensity and classification ofuse as existed on the Effective Date, including non -conforming uses, D Development directly related to the proposed Metrolink stations in the City of R e, a1,, nds, in„l„ ding ore the T Tmyersity „ Redlands; Redlands Regular Meeting of 07-19-22 886 of 974
E. New development projects subject to Downtown Specific Plan 45, upon a four fifths (4/ 5ths) vote ofthe total authorized membership ofthe City Council; F—D Special, temporary or occasional uses ofpublic streets including parades local sporting and cultural events, graduation ceremonies, approved school activities and other occasional public gatherings
SECTION 2 DEFINITIONS
a." Effective Date" shall mean the date on which this initiative measure was adopted by the City Council of the City of Redlands or on the date on which it was passed by the voters at the polls, whichever comes first. b " Dwelling" and " dwelling units" shall be defined as any single family residence, apartment or dwelling unit in a multi -unit structure, or mobile home
SECTION 3 EXEMPTIONS FOR CERTAIN PROJECTS
A. This measure shall apply to all properties and projects covered by its terms, except it shall not apply to any development project which has obtained a vested right as ofthe effective date ofthis measure For purposes of this measure, a vested right shall have been obtained only and if each and all of the following criteria are met:
1 The proposed project has received a building permit or its final discretionary approval
2 Substantial expenditures have been incurred in good faith reliance on the permit or final discretionary approval.
3 Substantial construction has been performed in good faith reliance on the permit or final discretionary approval.
B The substantiality of expenditures incurred and of construction performed and the question of whether or not such expenditures and construction were in good faith are questions of fact to be determined on a case by case basis by the City Council following application by the developer and notice of a public hearing Actions taken by the developer to speed up or expedite a development project with knowledge of the pendency of this measure shall not be deemed in good faith and shall not qualify for vested rights Phased projects shall be considered for exemption on a phase by phase basis to the extent permitted by California law For purposes of section 19 04 060 of this chapter, with regard to water and sewer connections outside the city, an applicant shall qualify for a vested right only ifthe foregoing criteria are met after the applicant has obtained a water and sewer connection, commitment, or both ifboth are required, from the City (4 of Measure N, Redlands Regular Meeting of 07-19-22 887 of 974
passed by voters 11- 3- 1987 17 of Proposition R, passed by voters 11- 7- 1978)
C This initiative measure is not intended and shall not be applied or construed to authorize the City to exercise its powers in a manner which will take private property for public use without payment ofjust compensation, but shall be interpreted, applied and implemented so as to accomplish its purposes to the maximum constitutionally permissible extent without requiring payment of compensation.
D If apphcation of this initiative measure to a specific property ofrecord as of the Effective Date would create a taking then the City Council may, upon apphcation by the landowner, allow additional density or uses on such property, upon findings that the level of additional development permitted is the minimum necessary to avoid a taking, and no lesser level of development would be sufficient to avoid a taking
SECTION 4 SEVERABILITY
A. In mterpretmg this initiative measure or resolving ambiguity thereof, the City Council and all other city entities charged with implementing or enforcing this initiative measure or any part of it, as well as a reviewing court, shall interpret this initiative measure in the manner which most vigorously and effectively accomphshes its purposes and operative provisions
B If any portion ofthis initiative measure is hereafter determined to be mvand by a court of competent jurisdiction, all remaining portions ofthis initiative measure shall remain in full force and effect. Each section, subsection, sentence, phrase, part or portion of this initiative measure would have been adopted and passed irrespective ofthe fact that any one or more sections, subsections, sentences, phrases, parts or portions be declared mvand or unconstitutional.
SECTION 5 AMENDMENT AND REPEAL
This initiative measure and all of its provisions may be amended or repealed only by a majority vote of the electorate
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City Council Meeting L. 4.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Resolution No. 8375 Setting Priorities for Filing of Written Arguments Regarding an Initiative Ordinance (City Clerk Donaldson/City Attorney Abich Garcia)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to approve Resolution No. 8375.
RECOMMENDATION:
It is recommended that the City Council approve Resolution No. 8375, a resolution of the City Council of the City of Redlands, California, setting priorities for the filing of written arguments regarding a proposed ballot measure titled, “Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 1A.10,
1.A.30, 4.2B and 4.41j, of the Principles of Managed Development of the City of Redlands General Plan 2035”.
DISCUSSION:
Resolution No. 8375 is a resolution setting priorities for the filing of written arguments regarding a proposed ballot measure prepared by the University of Redlands titled, “Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 1A.10, 1.A.30, 4.2B and 4.41j, of the Principles of Managed Development of the City of Redlands General Plan 2035,”and ordering the submission, of the ballot measure to the qualified voters of the City at the City’s November 8, 2022 regular municipal election.
The last day for receipt of primary arguments for or against the initiative ordinance, not exceeding 300 words, has been established at 5:00 P.M. on August 22, 2022 in the City Clerk's Office, Civic Center, 35 Cajon Street, Suite Redlands Regular Meeting of 07-19-22 908 of 974
August 22, 2022 in the City Clerk's Office, Civic Center, 35 Cajon Street, Suite 4, Redlands, California. The last day for receipt of rebuttal arguments not exceeding 250 words has been established at 5:00 P.M. on August 26, 2022, in the City Clerk's Office, Civic Center, 35 Cajon Street, Suite 4, Redlands, California.
ALTERNATIVES:
The City Council may consider Resolution No. 8375 at a special meeting in July.
STRATEGIC PLAN:
Not Applicable.
SUBMITTED BY:
Yvette M. Abich Garcia, City Attorney
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Fiscal Impact
Discussion:
There is no impact to the General Fund for setting priorities for filing a written argument, for or against, a voter initiative petition ordinance, scheduled to be on the November 8, 2022 ballot.
Attachments
Reso No. 8375 Setting Priorities for Argument
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RESOLUTION NO. 8375
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS,
CALIFORNIA SETTING PRIORITIES FOR FILING A WRITTEN ARGUMENT
REGARDING AN INITIATIVE ORDINANCE
WHEREAS, a General Municipal Election is to be held on Tuesday, November 8, 2022 pursuant to Resolution No. 8374 adopted July 19, 2022; and WHEREAS, on July 19, 2022, the City Council adopted Resolution No. 8374 calling and giving notice of a general municipal election to be held on November 8, 2022 and ordering the submission to the qualified voters at said election date a proposed ballot measure, titled “Initiative Ordinance of the People of Redlands Amending Sections 1A.0, 1A.10, 1.A.30, 4.2B and 4.41j, of the Principles of Managed Development of the City of Redlands General Plan 2035,” negotiated by the University of Redlands with the original authors of a similar initiative.
NOW, THEREFORE, the City Council of the City of Redlands, California, does hereby resolve, declare, determine, and order as follows:
Section 1. The City Council authorizes (i) the City Council or any member(s) of the City Council, (ii) any individual voter eligible to vote on the above Initiative Ordinance, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations, to file a written argument in favor of or against the Initiative Ordinance, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, which arguments may be changed until and including Monday, August 22, 2022 at 5:00 p.m., in the City Clerk’s Office, Civic Center, 35 Cajon Street, Suite 4, Redlands, California, after which no arguments for or against the Initiative Ordinance may be submitted to the City Clerk. Arguments in favor of or against the Initiative Ordinance shall each not exceed 300 words in length. Each argument shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument.
The City Council expressly delegates Mayor Paul T. Barich to prepare, sign and file, along with four other qualified persons, a written argument in favor of the Initiative Ordinance.
Section 2. That pursuant to Sections 9220 and 9285 of the California Elections Code, when the City Clerk has selected the arguments for and against the measure which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. The authors may prepare and submit rebuttal arguments not exceeding 250 words. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.
Section 3. That the last day for receipt of rebuttal arguments not exceeding 250 words has been established as Friday, August 26, 2022 at 5:00 p.m., in the City Clerk's Office, Civic Center, 35 Cajon Street, Suite 4, Redlands, California, and signed by each proponent and by each Redlands Regular Meeting of 07-19-22 910 of 974
author, if different, of the rebuttal argument in conformance with the provisions of Section 9600 of the California Elections Code. Rebuttals may be changed or withdrawn by their proponents at any time prior to and including the final date fixed for filing rebuttals.
Section 4. That the City Council directs the City Clerk to transmit a copy of the Initiative Ordinance to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure showing the effect of the measure on the existing law and the operation of the measure.
The impartial analysis shall be filed by the date set by the City Clerk for the filing of primary arguments.
ADOPTED, SIGNED AND APPROVED this 19th day of July, 2022 ______________________________
Paul T. Barich, Mayor
ATTEST:
_____________________________
Jeanne Donaldson, City Clerk
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I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 19th day of July, 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
_________________________
Jeanne Donaldson, City Clerk
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City Council Meeting L. 5.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a grant award for the FY2022-2023 Community Development Block Grant (CDBG) Program Year in the amount of $340,246, programming of additional appropriation in the amount of $15,976.21 to the Jocelyn Senior Center Rehabilitation Project, reprogramming of $52,448.92 of CDBG-CV (COVID-19) funds to the Senior Outdoor Dining Project and adding appropriation in the amount of $12,200 to FY2021-22 CDBG Program Year
(Development Services Director Desatnik)
MOTION(S):
If the City Council determines that staff's recommendations are appropriate, the following motions are provided:
I move to approve the grant award in the amount of $340,246 for the FY2022-2023 CDBG Program Year;
1. I move to authorize an additional appropriation of $15,976.21 for the FY2022-2023 CDBG Program Year;
2. I move to authorize an additional appropriation of $12,200 for the FY2021-2022 CDBG Program Year; and
3. I further move to authorize the reprogramming of $52,448.92 of CDBG-CV funds to the Senior Outdoor Dining Project.
4. RECOMMENDATION:
Staff recommends that Council accept the grant award for the FY2022-2023 CDBG Program Year in the amount of $340,246, programming of additional appropriation in the amount of $15,976.21 to the Jocelyn Senior Center Rehabilitation Project, reprogramming of $52,448.92 of CDBG-CV (COVID-19) funds to the Senior Outdoor Dining Project and adding appropriation in the amount of $12,200 to FY2021-22 CDBG Program Year.
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amount of $12,200 to FY2021-22 CDBG Program Year.
DISCUSSION:
In February 2022, the Development Services Department (Department) submitted the FY2022-23 CDBG Program Year grant funding request on behalf of the City of Redlands (City) to the County of San Bernardino (County) in the amount of $365,274, which was the estimated award to the City at the time. In May 2022, the County submitted the FY2022-2023 Final Program Year funding request to the United States Department of Housing and Urban Development (HUD). In June 2022, the County notified the City of the final award amount of $340,246, which was $25,028 lower than estimated. Additionally, the County identified total available unprogrammed funds in the amount of $31,204, of which the Department had already appropriated $15,277.79 from the original estimate, leaving $15,976.21 in unprogrammed funds to be allocated to the Jocelyn Senior Center Rehabilitation Project in FY2022-2023. The unprogrammed funds are higher than previously estimated due to adjustments received by the County from HUD that were then allocated to the City. Final changes to the FY2022-23 funding request initially submitted include the cancellation of the Redlands Community and Senior Center ADA Parking Lot Rehabilitation Project. However, since the Facilities and Community Services Department absorbed this project into a larger parking lot rehabilitation project completed at the facility during this fiscal year, the funding for this project was reallocated to the Jocelyn Senior Center Rehabilitation Project.
In addition, in February 2021, the Council approved the FY2021-2022 CDBG Program Year funding, which included an award to the Boys and Girls Club in the amount of $12,200. The appropriation in the amount of $12,200 was inadvertently excluded from the FY2021-2022 12-Month Estimate and needs to be re-appropriated to the FY2021-2022 CDBG budget. Furthermore, in July 2021, the Council approved funding for CBBG-CV (COVID-19) projects. The remaining funding, in the amount of $21,448.92, from the Senior Meals Pickup Program and $31,000 from the Senior Meals Care Package Program, which was canceled, is requested to be reprogrammed to the Senior Outdoor Dining Project. All funds that are CDBG-CV must be reprogrammed to another CDBG-CV project. The Senior Outdoor Dining Project is an approved CDBG-CV project.
ALTERNATIVES:
City Council may elect not to approve these actions. However, electing not to approve these actions may result in a loss or reduction of CDBG funding and impacts on existing CDBG projects.
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STRATEGIC PLAN:
Not applicable.
SUBMITTED BY:
Brian Desatnik, Director of Development Services
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Chris Boatman, Assistant City Manager
PREPARED BY:
Tricia Munoz, Management Analyst
Fiscal Impact
Fiscal Year: 2022-23
Revenue Generating: N
Appropriation Required Y/N: Y
Amount: $368,422.21
Budgeted Y/N: N
Account No.: 200164
Discussion:
Acceptance of this award will increase the FY2022-2023 appropriation for Planning Grants (200164) by $356,222.21 and add an additional appropriation in the amount of $12,200 to FY2021-2022 for the Boys & Girls Club Project No.
F164003 to correct for the excluded amount from the FY2021-2022 12-Month Estimate. Additionally, reprogramming $52,448.92 in remaining unused CDBG-CV funds to the Senior Outdoor Dining Project No. F16428E. There is no fiscal impact on the General Fund.
Attachments
FY2022-2023 County CDBG Funding Form
FY2022-2023_F164040_Jocelyn Senior Center_Add'l Appropriation FY2022-23_Add'l Appropriation Form
FY2021-2022_Add'l Appropriation Form
CDBG-CV Budget Transfer Request Form
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City Council Meeting L. 6.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a request to hold the Soulfood Fest event hosted by Stronger Together Now on September 11, 2022, within Ed Hales Park (Assistant City Manager Boatman)
MOTION(S):
If the City Council determines that the request is appropriate, the following motion is provided:
I move to authorize the Soulfood Fest event hosted by Stronger Together Now on September 11, 2022, within Ed Hales Park.
1. RECOMMENDATION:
Staff recommends the City Council direct staff accordingly concerning the approval of the request to hold the Soulfood Fest event hosted by Stronger Together Now on September 11, 2022, within Ed Hales Park.
DISCUSSION:
The Facilities and Community Services Department manages the administration and issuance of permits for special events held in public areas of the City. Upon the issuance of a special event permit, the event may take place contingent on the event organizer paying the required fees. The City recognizes the value of partnering with non-profit agencies and organizations to provide services beneficial to the community.
The non-profit organization, Stronger Together Now, is requesting to hold a Soulfood event on Sunday, September 11, 2022, at Ed Hales Park. The event description is a food event to support black-owned businesses. The event will have 11 commercial food vendors that will also participate in a local food contest. Activities including dominoes and spades as well as music will be Redlands Regular Meeting of 07-19-22 922 of 974
provided for event participants.
Should the City Council elect to approve the event, the following conditions of approval will apply:
The event shall be contained with the park perimeter;
The food truck shall be placed as not to interfere with the public right-of-way;
All commercial vendors shall have a current City of Redlands business license to participate in the event; and
The event shall comply with all County of San Bernardino Health Permit regulations.
ALTERNATIVES:
The City Council may elect to deny the event.
STRATEGIC PLAN:
Not Applicable
SUBMITTED BY:
Chris Boatman, Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Janice McConnell, Assistant City Manager
PREPARED BY:
Tricia Swope, Manager, Facilities & Community Services
Fiscal Impact
Discussion:
There is no fiscal impact associated with the approval of this event.
Attachments
A. Special Event Application - SoulFood Fest
SoulFood Fest Site Plan
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STN Soul Food Fest 9.11.22
Site Plan
north
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City Council Meeting L. 7.
DATE: 07/19/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of an agreement between the City of Redlands, Shangri-La Industries, and Step Up on Second Street, Inc. pursuant to the terms of the State of California Department of Housing and Community Development (HCD), Homekey 2 Program Standard Agreement No. 21-HK-17166, for the development and supportive services delivery of the Redlands Good Nite Inn motel conversion project (Assistant City Manager Boatman)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:
I move to approve the agreement between the City of Redlands, Shangri-La Industries, and Step Up on Second Street, Inc. pursuant to the terms of HCD’s Homekey 2 Program Standard Agreement No. 21-HK-17166, for the development and supportive services delivery of the Redlands Good Nite Inn motel conversion project;
1. I move to authorize the Mayor or designee to implement the Agreement including, but not limited to, signing subsequent necessary documents, agreements and amendments, provided it is in accordance with the limitations described in the agreement and previously has previously been approved and budgeted by the City Council, subject to approval by the City Attorney; and
2. RECOMMENDATION:
Staff recommends that the City Council approve the agreement between the City of Redlands, Shangri-La Industries, and Step Up on Second Street, Inc. pursuant to the terms of HCD’s Homekey 2 Program Standard Agreement No. 21-HK-17166, for the development and supportive services delivery of the Redlands Good Nite Inn motel conversion project.
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Furthermore, staff recommends that the City Council Authorize the Mayor or designee to implement the Agreement including, but not limited to, signing subsequent necessary documents, agreements and amendments, provided it is in accordance with the limitations described in the agreement and previously have been approved and budgeted by the City Council, subject to approval by the City Attorney.
DISCUSSION:
On November 16, 2021, the City Council approved a mutually created Memorandum of Understanding with Shangri-La Industries and Step Up on Second Street, Inc. as required to apply for the Homekey Grant Program.
Following the approval, the City prepared and submitted a Homekey grant application to fund a substantial portion of the purchase and operations of the Redlands Good Nite Inn motel conversion project. As a result, on March 14, 2022, the City received an Announcement of an Award in the amount of $30,000,000.00 from the HCD’s Homekey Round 2 Program for the project. As per the Standard Agreement, the City will serve as administrative lead and designated payee for all award amounts received through the Homekey Grant Program. Therefore, the agreement between the City, Shangri-La Industries, and Step Up on Second Street, Inc. will memorialize the terms for distributing grant funds for the purpose of coordinating the development and supportive services delivery of the Redlands Good Nite Inn project per the specified conditions of the Standard Agreement.
Per the Homekey award, $24,142,000 have been designated as “Acquisition Award Funds”. These funds will be issued directly to the project’s escrow account for the acquisition of the Good Nite Inn Hotel. Council’s additional appropriation authorization of $5,858,000 from the Department of Housing and Community Development’s Homekey 2 grant funds includes: $4,878,000 of the Homekey Operating Funds; and an anticipated Expedited Occupancy Conditional Bonus Operating Fund Award in the amount of $980,000 contingently awarded as a part of the Homekey grant upon achieving 90% occupancy within eight (8) months of the award date. Additional grant funds in the amount of $3,573,485 will also be sought to supplement the HCD Homekey 2 award for the purpose of funding the City’s contribution towards operating costs for services and rent for all residents within the project. The City has already obligated the first two year annual installment payments in the Fiscal Year 2022-23 and 2023-24 Adopted Budget. The remaining five years of annual installment payments will remain a commitment in future budgets, unless grants funds are subsequently identified.
To maximize efficiencies, staff recommends that the City Council provide additional flexibility to promptly execute future amendments to this agreement in the event that additional grant funds are awarded from other sources for this project. Specifically, the agreement would delegate authority to the Mayor or designee to amend the Term of the Agreement, Schedule of Performance and Redlands Regular Meeting of 07-19-22 936 of 974
designee to amend the Term of the Agreement, Schedule of Performance and Approved Financing Plan within the agreement to incorporate any additional grant fund sources. This provision is subject to the following stipulations: (a) the sum of the total grant allotments from all sources does not exceed a cumulative aggregate amount of $3,573,485 during the term of the Agreement; (b) additional grant awards sources have been approved and budgeted by the City Council; (c) amendments to the Agreement are subject to approval by the City Attorney.
ALTERNATIVES:
The City Council may elect not to approve the agreement between the City of Redlands, Shangri-La Industries, and Step Up on Second Street, Inc or authorize the Mayor or designee to implement the Agreement and direct staff accordingly.
STRATEGIC PLAN:
Priority B: Public Health and Safety, 4. Homelessness, Develop and implement a method by which to measure the success of the Homeless Housing Plan.
SUBMITTED BY:
Chris Boatman, Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Maira Durazo, Grants Coordinator
Fiscal Impact
Fiscal Year: 2022-23
Discussion:
Homekey Capital Award: $24,142,000
Homekey Operating Subsidy Award: $$5,858,000
City Operating Contribution: $3,573,485
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Attachments
Attachment A - Agreement
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CITY OF REDLANDS HOMEKEY GRANT AGREEMENT
This Homekey Grant Agreement (the "Agreement") is dated as of July 19, 2022 (the "Effective Date"), and is between the City of Redlands, a political subdivision of the State of California (the "City"), Step Up on Second Street, Inc., a California nonprofit public benefit corporation ("Step Up"), 1675 Industrial Park, LP, a Delaware limited partnership (“Owner”), and Shangri-La Industries, LLC, a Delaware limited liability company, and permitted successors and assigns (collectively "Grantee"). City, Step Up, Owner and Grantee are collectively referred to herein as the “Parties”.
RECITALS
WHEREAS, the State of California implemented a statewide initiative known as “Project Homekey” with the intention to secure thousands of motel/hotel rooms to provide non-congregate shelter for extremely vulnerable individuals experiencing homelessness to help keep susceptible, homeless persons safe from the COVID-19 virus, flatten the curve, and preserve hospital capacity; and
WHEREAS, the State of California Department of Housing and Community Development issued a Notice of Funding Availability (“NOFA”) for the Homekey 2.0 2021 Program (NOFA); and
WHEREAS, City has determined that the development of an affordable permanent motel/hotel housing site for Project Homekey could be accomplished most effectively and economically if undertaken by an experienced developer under an agreement with City; and WHEREAS, Owner has identified, and is in escrow to acquire, the Good Nite Inn, located at 1675 Industrial Park Avenue as more particularly described in Exhibit A (the "Property"), as the most desirable motel within the City for the interim to permanent housing conversion contemplated by Project Homekey; and
WHEREAS, the Parties have prepared this Agreement to comply with the NOFA’s requirements to demonstrate how the development team is connected and how the development team will work together.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and for such other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows:
A. The City, Step Up, and the Grantee jointly applied and were awarded Homekey 2.0 2021 Funds from HCD which shall be disbursed pursuant to the terms of Standard Agreement, Award: 21-HK-17166 by and among HCD, the City and the Grantee, which shall govern the expenditure of the Homekey Funds (the "Standard Agreement").
B. The Department of Housing and Community Development ("HCD") issued a Notice of Funding Availability (“NOFA”) for the Homekey Program, Round 2 on September 9, 2021. The NOFA incorporates by reference the Multifamily Housing Program (MHP), as well as the MHP Final Guidelines (“MHP Guidelines”), dated June 19, 2019, both as amended and in Redlands Regular Meeting of 07-19-22 939 of 974
effect from time to time. In addition, the NOFA states that Homekey grant funds are derived primarily from Coronavirus Relief Fund (“CRF”) money received from the U.S. Department of the Treasury. The CRF was established by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law No. 116-136).
C. The Grantee and Owner intend to convert the Property to provide ninety-eight (98) permanent supportive housing units and one (1) unrestricted manager’s unit for individuals who are experiencing homelessness, are chronically homeless, or who are at risk of homelessness (“Target Population”) on the Property in order to provide increased affordable housing (the "Improvements"). The Improvements and the Property are referred to as the "Development." D. The City desires to make a revocable grant to Grantee in an amount not to exceed $3,573,485.00 of City funds ("City Funds") to fund a City Operating Subsidy (the "Grant").
E. Pursuant the terms of the Standard Agreement, the City is required to cause a 55- year use restriction to be recorded against the Property in first lien priority (the "Use Restriction") to secure performance under the Standard Agreement.
F. The Grant is being made to finance an operating subsidy reserve for the Development to ensure the affordability of the units for the Homekey Term in order to help achieve financial feasibility for the Development. The Development will increase the supply of affordable rental housing in the City of Redlands. Due to the assistance provided to Grantee pursuant to this Agreement and the Standard Agreement, the City has classified ninety-eight (98) units as Cityassisted units (each such unit a "City-Assisted Unit").
NOW, THEREFORE, the Parties agree as follows:
AGREEMENT
ARTICLE 1.
DEFINITIONS AND EXHIBITS
Section 1.1 Definitions.
The following terms have the following meanings:
(a) "Affiliate" means an entity that is controlling or controlled by Grantee. For the purposes of this definition "Control" means (1) direct or indirect management or control of the managing member or members in the case of a limited liability company; (2) direct or indirect management or control of a general partner or general partners in the case of a partnership; and (3) direct or indirect control of a majority of the directors in the case of a corporation. (b) "Agreement" means this Homekey City Grant Agreement, as such may be amended from time to time.
(c) "Shangri-La" means Shangri-La Industries LLC, a Delaware limited partnership.
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(d) "Approved Financing" means all of the loans, grants and equity obtained by Grantee for the purpose of financing the Development, which include the following, estimated as of the Effective Date:
1) An equity contribution from the Grantee of not less than Nine Hundred Four Thousand Eight Hundred Dollars ($904,800)
2) A loan of approximately Ten Million Two Hundred Seventy Thousand Six Hundred Twenty Dollars ($10,270,620) (the “Construction Loan”) 3) A grant of approximately Twenty Four Million One Hundred Forty-Two Thousand Dollars ($24,142,000) of Homekey program funding from HCD (the “Homekey Acquisition Funds”) or such other amount approved by HCD; and
4) A grant of approximately Four Million Eight Hundred Seventy-Eight Thousand Dollars ($4,878,000) of Homekey program funding from HCD (the “Homekey Operating Funds”) or such other amount approved by HCD; and
5) A conditional occupancy grant of approximately Nine Hundred Eighty Thousand Dollars ($980,000) of Homekey program funding from HCD (the “Expedited Occupancy Conditional Bonus Operating Fund Award”) contingent upon achieving full occupancy (with consideration for an average of 10% vacancy) within eight (8) months of the date of award pursuant to the terms of the NOFA and Standard Agreement (e) "Approved Financing Plan" means the Financing Plan approved by the City as of the date of this Agreement, as the same may be amended pursuant to Section 3.5. The Approved Financing Plan shall be updated at the Close of Escrow without need for amendment of this Agreement.
(f) "Certificate of Completion" means the final Certificate of Completion issued by the City of Redlands, or comparable City sign-off on the completion of conversion of the Development.
(g) "City" means the City of Redlands, a political subdivision of California. (h) "Completion Date" means the date that a temporary or final Certificate of Completion, or equivalent document is issued by the City to certify completion of the rehabilitation and conversion of the Development.
(i) "City-Assisted Units" has the meaning set forth in Recital F. (j) "City" has the meaning set forth in the first paragraph of this Agreement. (k) "City Executive Officer" means the City's City Manager, or an authorized designee.
(l) "Development" has the meaning set forth in Paragraph C of the Recitals.
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(m) "Escrow" means the escrow account established by the Grantee for the closing of Development financing with Ticor Title Company of California in its Los Angeles office, located at 660 S. Figueroa Street, #1888, Los Angeles, CA 90017 or another escrow company satisfactory to the City.
(n) "Event of Default" has the meaning set forth in Section 6.1. (o) "Grant" has the meaning set forth in Paragraph D of the Recitals. (p) "Grant Documents" means this Agreement, and the Use Restriction. (q) "Grantee" has the meaning set forth in the first paragraph of this Agreement. (r) "Hazardous Materials" has the meaning set forth in Section 4.5(a). (s) “Hazardous Materials Claims” has the meaning set forth in Section 4.5(b). (t) "Hazardous Materials Law" has the meaning set forth in Section 4.5(b). (u) "Homekey Program" has the meaning set forth in Paragraph B of the Recitals.
(v) "Homekey Funds" means the Homekey Acquisition Funds provided by HCD under the Standard Agreement.
(w) "Homekey Term" means the period beginning on the date of this Agreement and ending on the tenth (10th) anniversary of the Completion Date. (x) "Homekey Regulations" has the meaning set forth in Paragraph B of the Recitals.
(y) "Improvements" has the meaning set forth in Paragraph C of the Recitals. (z) "Notice of Completion" means the Notice of Completion executed by Grantee in the form specified in California Civil Code Section 3093. (aa) "Owner" means 1675 Industrial Park, LP, a Delaware limited partnership. (bb) "Permitted Transfer" has the meaning set forth in Section 4.11 (c). (cc) "Property" has the meaning set forth in Exhibit A of this Agreement. (dd) "Use Restriction" means the Regulatory Agreement and Declaration of Restrictive Covenants between the City and Grantee as described in the Standard Agreement related to the Grant and the Homekey Funds, to be recorded against the Grantee's fee interest in the Property.
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(ee) "Schedule of Performance" means the schedule for performance of various tasks and obligations under this Agreement that is attached as Exhibit B, as such may be modified pursuant to Section 3.1."Services Budget" has the meaning set forth in Section 3.6. (ff) "Services Plan" has the meaning set forth in Section 3.6. (gg) "Program Participant" means a person or household that occupies a Unit in the Development meeting the Target Population.
(hh) "Term" means the period of time that commences on the date of this Agreement, and expires, unless sooner terminated in accordance with this Agreement, on the fourteenth (14th) anniversary of the Completion Date.
(ii) "Transfer" has the meaning set forth in Section 4.11. (jj) "Unit" means one (1) of the approximately ninety-eight (98) affordable housing units to be constructed at the Development, including one (1) unrestricted manager's unit.
Section 1.2 Exhibits.
The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:
Exhibit A: Legal Description of the Property
Exhibit B: Schedule of Performance
ARTICLE 2.
GRANT PROVISIONS
Section 2.1 Grant.
Subject to the satisfaction of the conditions set forth in this Article, the City shall provide to Grantee the Grant, which the Grantee may use solely to fund the operating subsidy for the ninety-eight (98) City-Assisted Units at the Development for the Homekey Term, consistent with the terms of the Use Restriction and the Standard Agreement. Except as set forth in Section 2.4, Grantee has no obligation to repay the Grant.
Section 2.2 Security.
(a) Owner and Grantee shall also cause or permit the Use Restriction to be recorded against the fee interest in the Property, in first lien position. The Use Restriction shall not be subordinated.
Section 2.3 Forgiveness of Revocable Grant.
(a) Provided that no Default exists under this Agreement or the Use Restriction, without further action of the parties, the Grant shall be forgiven by Five Hundred Thousand Dollars Redlands Regular Meeting of 07-19-22 943 of 974
($500,000) for each year of the Homekey Term commencing on the first anniversary of the Effective Date.
Section 2.4 Revocation of Grant Upon Default.
Notwithstanding any provision herein to the contrary, and in addition to any other rights and remedies available to the City set forth in Article 6, upon a Default by Grantee or Owner, the City may revoke the outstanding balance of the Grant, and declare the outstanding balance of the Grant (other than any portion of the Grant that has been previously forgiven by the City as set forth in Section 2.3 above) to be immediately due and payable, subject to the non-recourse provisions set forth in Section 2.5.
Section 2.5 Non-Recourse.
Neither Grantee or Owner, nor any member of Grantee (that is not a Guarantor) or any partner of the Owner (that is not a Guarantor), shall have any direct or indirect personal liability for payment of the principal of, and interest on, the Grant.
Section 2.6 Conditions Precedent to Disbursement of Grant Funds. (a) A special "Capitalized Operating Subsidy Reserve" shall be created and maintained as a segregated interest-bearing account held by the Grantee or Owner for the Homekey Term of this Agreement, subject to subsections (c) and (d) below. The Capitalized Operating Subsidy Reserve shall be capitalized in the amount of the City Grant. Any interest earned on funds in the Capitalized Operating Subsidy Reserve shall be added to and become part of the Capitalized Operating Subsidy Reserve.
(b) The Capitalized Operating Subsidy Reserve shall be used to pay monthly operating costs for City-Assisted Units occupied by income qualifying households from the Target Population, during the Term, and is expected to be drawn down completely within seven (7) years of the Term.
(c) The City shall disburse the City Grant in seven annual installments of $510,497. The initial payment shall be made by or before September 1, 2022, and subsequent payments shall be made annually by or before the anniversary of the effective date thereafter. The City shall have no obligation to make any disbursements or to take any other action under the Grant Documents unless the following conditions precedent are satisfied prior to each such disbursement of the Grant funds. There exists no Event of Default or any other financing agreements or contracts between the City and Grantee, Owner or their affiliates relating to the Development;
(1) Grantee has delivered to the City a copy of Grantee's organizational documents, including an Operating Agreement, and a corporate authorizing resolution authorizing Grantee's execution of this Agreement and the transactions contemplated by this Agreement;
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(2) Owner has delivered to the City a copy of Owner's organizational documents, including a limited partnership agreement, and a corporate authorizing resolution authorizing Owner's execution of this Agreement and the transactions contemplated by this Agreement;
(3) Step Up has delivered to the City a copy of Step Up's organizational documents, and a corporate authorizing resolution authorizing Step Up's execution of this Agreement and the transactions contemplated by this Agreement; (4) Grantee or Owner have closed, or are closing, on the Construction Loan and has provided the Grantee Equity into escrow;
(5) Grantee, Step Up and Owner have furnished the City with evidence of the insurance coverage meeting the requirements of Section 4.12 below; (6) The City has received from Grantee and approved a form of program participation agreement;
(7) The City and the Grantee and Owner have agreed on a Participant Selection Plan;
(8) The City has received, from Grantee, Step Up and Owner, and approved a copy of the Services Plan for the provision of service to residents; (9) Grantee or Owner have submitted a certification from the architect or a City approved Certified Access Specialist certifying that the Development will be rehabilitated in compliance with the accessibility requirements set forth in the Standard Agreement or has provided the City with other evidence that the Development, as built, complies with the accessibility requirements set forth in the Standard Agreement; (10) The City has received from Grantee or Owner a copy of the Management Plan, and a management agreement and contact information for the property manager of the Development and the name and phone number of the on-site property manager, in compliance with the terms of the Use Restriction;
(11) There exists no material adverse change in the financial condition of Grantee from that shown by the financial statements and other data and information furnished by Grantee to the City prior to the date of this Agreement; (d) The Capitalized Operating Subsidy Reserve is intended to assure the affordability of the City-Assisted Units at the Development and shall not be transferable and must remain with the Development for the Term of this Agreement. During the Term of this Agreement, the Grantee and Owner shall be required to either: (1) allow the Capitalized Operating Subsidy Reserve to remain with the Development upon transfer; or (2) repay to the City any amounts remaining in the Capitalized Operating Subsidy Reserve as of the date of a transfer. (e) Notwithstanding any other provisions of this Agreement, the City shall have no further obligation to disburse any portion of the Grant to Grantee or Owner under this Redlands Regular Meeting of 07-19-22 945 of 974
Agreement following: (i) termination of this Agreement; (ii) notification by the City to the Grantee of an Event of Default (excluding any Event of Default of the City) under terms of this Agreement until such time as the Event of Default has been cured.
ARTICLE 3.
GRANTEE OBLIGATIONS
Section 3.1 Schedule of Performance.
Subject to this Agreement, the Grantee shall perform the tasks described in the Schedule of Performance no later than the dates set forth in the Schedule of Performance, which shall at all times be in substantial conformance with the terms and conditions of the Standard Agreement.
The Schedule of Performance may be modified in writing by Grantee and the City Executive Officer on behalf of the City without the need for formal amendment of this Agreement or further approval by the City Council .
Section 3.2 Conversion and Rehabilitation.
(a) Grantee shall be solely responsible to obtain all permits and approvals for the rehabilitation and operation of the Development. Grantee shall convert the Development to permanent housing and shall cause the commencement and completion of conversion of the Development to permanent housing no later than the dates set forth in the Standard Agreement. (b) Grantee shall make Development available for occupancy as permanent housing in accordance with the terms of the Use Restriction. Grant funds provided to the Grantee may only be used to fund operating subsidies for Units that are occupied by eligible households.
Section 3.3 Prevailing Wages; Accessibility.
(a) Prevailing Wages. The funding of an operating subsidy is not a public work under the meaning set forth in Labor Code Section 1720. Nonetheless, if and to the extent required by law, in the rehabilitation of the Development, Grantee and Owner shall and shall cause all contractors and subcontractors to pay prevailing wages in performing any construction activities as may be required under federal Davis-Bacon Act (40 USC 3141-3148) and the labor compliance provisions to be provided by the City (if applicable), and pursuant to Labor Code Sections 1720 et seq. (the "Prevailing Wage Requirements"), and the implementing regulations of the Department of Industrial Relations (the "DIR"), to employ apprentices as required by Labor Code Sections 1777.5 et seq., and the implementing regulations of the DIR and comply with the other applicable provisions of Labor Code Sections 1720 et seq., 1777.5 et seq., 1810-1815, and implementing regulations of the DIR.
(b) Grantee and Owners shall indemnify, hold harmless and defend (with counsel reasonably acceptable to the City) the City and its City Council, officers and employees against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Grantee, its contractors and subcontractors) to pay prevailing wages as determined pursuant to Labor Code Sections 1720 et seq. and prevailing wage requirements of the federal Davis-Bacon Act (40 USC 3141-3148), to employ apprentices pursuant to Labor Code Sections 1777.5 et seq., and implementing regulations Redlands Regular Meeting of 07-19-22 946 of 974
of the DIR or to comply with the other applicable provisions of Labor Code Sections 1720 et seq., 1777.5 et seq., and the implementing regulations of the DIR in connection with the performance of the development activities or any other work undertaken or in connection with the Property.
The requirements in this subsection survive the termination of this Agreement. (c) Accessibility Requirements. The Development will be operated at all times in compliance with all applicable federal, state, and local disabled persons accessibility requirements including, but not limited to the applicable provisions of the Standard Agreement.
Section 3.4 Inspections.
(a) The Grantee and Owner shall permit and facilitate, observation and inspection of the Development by the City and by public authorities during reasonable business hours upon forty-eight (48) hours' written notice for the purposes of determining compliance with this Agreement, provided, however, that nothing in this Agreement shall entitle the City to enter an occupied unit in the Development without notice to the program participant thereof, which the Grantee and/or Owner shall deliver on behalf of the City, and permission from such program participant to the extent such permission is required by law. Such inspections do not relieve the Grantee, or its contractors, from any applicable requirement to obtain other City or City inspections in connection with the conversion of the Improvements.
(b) After the completion of an inspection the City shall deliver a copy of the inspection report to the Grantee. If the City determines as a result of the inspection that there are any deficiencies for any of the inspectable items in the Development, the Grantee shall correct such deficiencies within fifteen (15) days from the delivery of the inspection report or if a period longer than fifteen (15) days is reasonably necessary to correct the deficiency, then Grantee must begin to correct the deficiency within fifteen (15) days and correct the deficiency as soon as reasonably possible.
Section 3.5 Approved Financing Plan.
As of the date of this Agreement, the City has approved the Approved Financing Plan.
Grantee shall submit any proposed or required amendments to the Approved Financing Plan, along with evidence that the changes to the Approved Financing Plan are reasonable and necessary, to the City for approval within fifteen (15) days of the date Grantee receives information indicating that actual costs of the Development materially vary or will vary from the costs shown on the Approved Financing Plan, which approval shall not be unreasonably withheld or delayed. The City will respond in writing within seven (7) days after receipt of a proposed amendment to the Approved Financing Plan.
(a) Step Up will be providing on-site services to all program participants in the Development which are required under the Homekey Program (the "Social Services"). By the time specified in the Schedule, Step Up shall submit to the City for approval a proposed services plan which shall include written guidelines or procedures for providing the Social Services (the "Services Plan"), and a proposed budget for the provision of Social Services (the "Services Budget").
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(b) The Services Plan shall include the types of Social Services provided, staffing levels, and overall coordination of the Social Services. (c) Upon receipt of the proposed Services Plan and Services Budget, the City shall promptly review the proposed Services Plan and Services Budget and shall approve or disapprove them within fifteen (15) days after submission. If either the Services Plan or Services Budget is not approved, Step Up shall submit a revised Services Plan and/or Services Budget within fifteen (15) days following Step Up's receipt of the City's written disapproval. If the City does not approve the revised Services Plan and/or Services Budget because the Step Up fails to make specific revisions requested by the City, Step Up, the Grantee and Owner shall be in default hereunder. If the City does not approve or disapprove updates to Resident Services Plan or Resident Services Budget within the timeframe specified herein, then the Resident Services Plan or Resident Services Budget, as applicable, from the prior year shall remain in effect.
ARTICLE 4.
GRANT REQUIREMENTS
Section 4.1 Annual Operating Budget.
At the beginning of each year of the Term, Grantee or Owner shall provide to the City an annual budget for the operation of the Development.
Section 4.2 Information.
Grantee, Step Up, and Owner shall provide any information related to the Development reasonably requested by the City in connection with the Development, including (but not limited to) any information required by HCD in connection with the Standard Agreement, and any information required by the City in connection with the Grantee's use of the Grant funds.
Section 4.3 Records.
(a) Grantee, Step Up, and Owner shall keep and maintain at the Development, or at the corporate offices of the Grantee or the Owner's general partner, or elsewhere with the City's written consent, full, complete and appropriate books, records and accounts relating to the Development. Books, records and accounts relating to Grantee's compliance with the terms, provisions, covenants and conditions of this Agreement. All applicable financial documents are to be kept and maintained in accordance with generally accepted accounting principles consistently applied. All such books, records, and accounts shall at reasonable times be open to and available for inspection and copying by the City, its auditors or other authorized representatives at reasonable intervals during normal business hours and forty-eight hours' prior written notice to Grantee and Owner. Grantee, Step Up and Owner shall preserve such records for a period of not less than five (5) years after the expiration of the Standard Agreement. Copies of all tax returns and other reports that Grantee or Owner may be required to furnish to any governmental agency are to be open for inspection by the City at all reasonable times at the place that the books, records and accounts of Grantee, Step Up or Owner are kept. If any litigation, claim, negotiation, audit exception, monitoring, inspection or other action relating to the use of the Grant is pending at the end of the record retention period stated herein, then Grantee, Step Up and Owner shall retain the Redlands Regular Meeting of 07-19-22 948 of 974
records until such action and all related issues are resolved. Such records are to include but are not limited to:
(1) Records providing a full description of the activities undertaken under the Standard Agreement;
(2) Records providing a full description of the activities undertaken with the use of the Grant funds;
(3) Records documenting compliance with the Participant Selection Plan and all applicable fair housing, equal opportunity, and affirmative fair marketing requirements;
(4) Records demonstrating compliance with Use Restriction; (5) Records demonstrating compliance with all applicable accessibility requirements;
(6) Records demonstrating compliance with any applicable relocation requirements, which must be retained for at least five (5) years after the date by which persons displaced from the property have received final payments; and (7) Records demonstrating compliance with any applicable labor requirements (including certified payrolls from Grantee or Owner's general contractor evidencing that applicable prevailing wages have been paid if it has been deemed a prevailing wage is required to be paid.
(b) The City shall notify Grantee or Owner of any records it deems insufficient.
Grantee has thirty (30) calendar days after the receipt of such a notice to correct any deficiency in the records specified by the City in such notice, or if a period longer than thirty (30) days is reasonably necessary to correct the deficiency, then Grantee must begin to correct the deficiency within thirty (30) days and correct the deficiency as soon as reasonably possible.
Section 4.4 City Grant Requirements.
(a) Grantee, Step Up and Owner shall, at all times during the Term hereof, comply with all applicable laws and regulations governing the use of the Homekey Funds under the Standard Agreement. Grantee shall also comply with the laws and regulations governing the use of the Grant funds including (but not limited to) the following:
(1) Civil Rights, Housing and Community Development, and Age Discrimination Acts. The Fair Housing Act (42 U.S.C. 3601 et seq.) and implementing regulations at 24 C.F.R. Part 100; Title VI of the Civil Rights Act of 1964 as amended; Title VIII of the Civil Rights Act of 1968 as amended; Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended; Section 504 of the Construction Act of 1973 (29 USC 794, et seq.); the Age Discrimination Act of 1975 (42 USC 6101, et seq.); Executive Order 11063 as amended by Executive Order 12259 and implementing regulations at 24 C.F.R. Part 107; Executive Order 11246 as amended by Executive Orders 11375, 12086, Redlands Regular Meeting of 07-19-22 949 of 974
11478, 12107; Executive Order 11625 as amended by Executive Order 12007; Executive Order 12432; Executive Order 12138 as amended by Executive Order 12608, Executive Order 13672 concerning Gender Identity.
(2) Relocation. The parties agree and acknowledge that the project contemplated under this Agreement is not expected to result in any displacement. From and after the Closing, if and to the extent the rehabilitation of Development results in the permanent or temporary displacement of residential tenants, program participants, homeowners, or businesses, then the Grantee shall comply with all applicable local, state, and federal statutes and regulations, (including without limitation the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601, et seq.), and implementing regulations at 49 C.F.R. Part 24; 24 C.F.R. 570.606; Section 104(d) of the Housing and Community Development Act of 1974 and implementing regulations at 24 C.F.R. 42 et seq.; 24 C.F.R. 92.353; and California Government Code Section 7260 et seq. and implementing regulations at 25 California Code of Regulations Sections 6000 et seq. ) with respect to relocation planning, advisory assistance, and payment of monetary benefits. The Grantee and Owner shall be solely responsible for payment of any relocation benefits to any displaced persons and any other obligations associated with complying with such relocation laws. The Grantee and Owner shall defend (with counsel reasonably selected by the City) the City, its governing board members, officers, representatives, agents, assigns and employees against any claim for damages, compensation, fines, penalties, relocation payments or other amounts arising out of the failure or alleged failure of any person or entity (including the Grantee or the City) to satisfy relocation obligations related to the rehabilitation of the Development. This obligation to indemnify shall survive termination of this Agreement.
(3) Homekey Regulations. Any other HCD regulations present or as may be amended, added, or waived in the future pertaining to the Homekey Funds.
Section 4.5 Hazardous Materials.
(a) Grantee and Owner shall keep and maintain the Property in compliance with, and may not cause or permit the Property to be in violation of any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. Grantee and Owner may not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of "hazardous substances," "hazardous wastes," "hazardous materials," or "toxic substances" under any applicable federal or state laws or regulations (collectively referred to hereinafter as "Hazardous Materials") except such of the foregoing as may be customarily used in rehabilitation of projects like the Development or kept and used in and about residential property of this type.
(b) Grantee or Owner shall immediately advise the City in writing if at any time it receives written notice of: (1) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Grantee or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Redlands Regular Meeting of 07-19-22 950 of 974
Materials, ("Hazardous Materials Law"); (2) all claims made or threatened by any third party against Grantee, Owner or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (1) and (2) above are hereinafter referred to as "Hazardous Materials Claims"); and (3) Grantee's or Owner's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be classified as "border-zone property" (as defined in California Health and Safety Code Section 25117.4) under the provision of California Health and Safety Code, Section 25220 et seq., or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law. (c) The City has the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys' fees in connection therewith paid by Grantee or Owner. Grantee and Owner shall indemnify and hold harmless the City and its board members, supervisors, directors, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Property including without limitation: (1) all foreseeable consequential damages; (2) the costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, remedial or other required plans and (3) all reasonable costs and expenses incurred by the City in connection with clauses (1) and (2), including but not limited to reasonable attorneys' fees and consultant's fees. This indemnification applies whether or not any government agency has issued a cleanup order. Losses, claims, costs, suits, liability, and expenses covered by this indemnification provision include, but are not limited to: (A) losses attributable to diminution in the value of the Property; (B) loss or restriction of use of rentable space on the Property; (C) adverse effect on the marketing of any rental space on the Property; and (D) penalties and fines levied by, and remedial or enforcement actions of any kind issued by any regulatory agency (including but not limited to the costs of any required testing, remediation, repair, removal, cleanup or detoxification of the Property and surrounding properties). This obligation to indemnify will survive termination of this Agreement. (d) Without the City's prior written consent, which will not be unreasonably withheld, neither Grantee or Owner may take any remedial action in response to the presence of any Hazardous Materials on, under or about the Property (other than in emergency situations or as required by governmental agencies having jurisdiction), nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims.
Section 4.6 Maintenance and Damage.
(a) During the Term, Grantee or Owner shall maintain the Development in good repair and in a neat, clean and orderly condition, consistent with quality affordable housing developments owned or operated by Shangri-La or Shangri-La affiliates and in compliance with the City approved Management Plan. If there arises a condition in contravention of this requirement, and if Grantee or Owner have not cured such condition within thirty (30) days after receiving written notice from the City of such a condition, if Grantee or Owner are incapable of curing a default within such thirty (30) day period, the City will give the Grantee or Owner ninety Redlands Regular Meeting of 07-19-22 951 of 974
(90) days to cure such default provided Grantee or Owner has commenced to cure within such thirty (30) day period and is diligently proceeding to cure such default through the end of such period, then in addition to any other rights available to the City, the City may perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Property, subject to the provisions provided in subsection (b) below. (b) Subject to the requirements of Senior Lenders, and if economically feasible in the City's judgment after consultation with Grantee and Owner, if any improvement now or in the future on the Property is damaged or destroyed, then Grantee or Owner shall, at its cost and expense, diligently undertake to repair or restore such improvement. Such work or repair is to be commenced no later than the later of one hundred twenty (120) days, or such longer period approved by the City in writing, after the damage or loss occurs or thirty (30) days following receipt of the insurance proceeds, and is to be completed within one (1) year thereafter. Any insurance proceeds collected for such damage or destruction are to be applied to the cost of such repairs or restoration and, if such insurance proceeds are insufficient for such purpose, then Grantee or Owner shall make up the deficiency. If Grantee or Owner do not promptly make such repairs then any insurance proceeds collected for such damage or destruction are to be promptly delivered by Grantee or Owner to the City as a special repayment of the Grant, subject to the rights of the Senior Lenders, as applicable.
Section 4.7 Fees and Taxes.
(a) Grantee and Owner are solely responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority or utility company with respect to the Property or the Development, and shall pay such charges prior to delinquency, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with generally accepted accounting principles. (b) City acknowledges that the Grantee or Owner intend to apply to the State Board of Equalization for a welfare exemption from property taxes under California Revenue and Taxation Code Section 214 for the Development.
Section 4.8 Notice of Litigation.
Grantee, Step Up, and Owner shall promptly notify the City in writing of any litigation related to the Development, and any litigation related to the Grantee, Step Up, or Owner for which the amount claimed or at issue is in excess of Fifty Thousand Dollars ($50,000), and of any claims or disputes that involve a material risk of such litigation. The conditions and obligations set forth in this Section shall apply for the entire Term of this Agreement.
Section 4.9 Operation of Development as Affordable Housing. (a) Grantee and Owner shall operate the Development as an affordable housing development consistent with: (1) HCD's requirements for use of the Homekey Funds and the terms and conditions set forth in the Standard Agreement; (2) the Use Restriction; and (3) any other regulatory requirements imposed on Grantee including but not limited to regulatory agreements associated with the City Grant.
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(b) Before leasing any City-Assisted Unit in the Development, Grantee or Owner shall submit proposed form of program participation agreement for the City's review and approval. Any program participation agreement for any unit in the Development or refusal to renew must be preceded by not less than sixty (60) days written notice to the Program Participant by Grantee specifying the grounds for the action.
(c) Before letting any City-Assisted Unit in the Development, Grantee, Owner, Step Up, and the City shall agree upon a written program participant selection plan for the Development (the "Participant Selection Plan").
(d) Grantee and Owner shall evaluate the income eligibility of each Program Participant in Units pursuant to the City's approved eligibility certification procedures within sixty (60) days before the household's expected occupancy of one of the Units. For all City-Assisted Units, Grantee or Owner shall certify or cause the property manager to certify each Program Participant's continued program eligibility an annual basis. (e) Grantee or Owner shall maintain all documents setting forth the program eligibility, as applicable, household income of each household occupying a Unit, and the total amount for contribution, utilities, and related services charged to each household occupying the Development, as prescribed by the Use Restriction and all other recorded regulatory restrictions.
Section 4.10 Nondiscrimination.
(a) Grantee, Step Up, and Owner herein covenant by and for themselves, their heirs, executors, administrators, successors and assigns, and all persons claiming under or through them, that there will be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age (except for lawful senior housing in accordance with state and federal law), familial status, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor may Grantee or any person claiming under or through Grantee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of program participants, tenants, lessees, subtenants, sublessees or vendees in the Property. Grantee shall comply with Executive Orders 11246, 11375, 11625, 12138, 12431, 12250, 13672, Title VII of the Civil Rights Act of 1964, the California Fair Housing and Employment Act and other applicable Federal, State and local laws and regulations and policies relating to equal employment and contracting opportunities, including laws and regulations hereafter enacted. Notwithstanding the above, with respect to familial status, the above should not be construed to apply to housing for older persons as defined in Section 12955.9 of the Government Code and other applicable sections of the Civil Code as identified in Health and Safety Code Section 33050(b). The foregoing covenant will run with the land.
Section 4.11 Transfer.
(a) Definition. For purposes of this Agreement, "Transfer" means any sale, assignment, or transfer, whether voluntary or involuntary, of: (1) any rights and/or duties under this Agreement; and/or (2) any interest in the Development, including (but not limited to) a fee simple interest, a joint tenancy interest, a life estate, a partnership interest, a fee interest, a security Redlands Regular Meeting of 07-19-22 953 of 974
interest, or an interest evidenced by a land contract by which possession of the Development is transferred and Grantee retains title. The term "Transfer" excludes the leasing of a Unit in the Development to an occupant in compliance with the Use Restriction. The City Executive Officer is authorized to execute assignment and assumption agreements on behalf of the City to implement any approved Transfer.
(b) Prohibition. Except as expressly permitted in this Agreement, the Grantee represents and agrees that the Grantee shall not make or create, or suffer to be made or created, any Transfer, either voluntarily or by operation of law without the prior written approval of the City.
(1) The limitations on Transfers set forth in this Section shall apply throughout the Term.
(2) Any Transfer made in contravention of this Section shall be void and shall be deemed to be a default under this Agreement whether or not the Grantee knew of or participated in such Transfer.
(c) Permitted Transfers. Notwithstanding the foregoing, the following are permitted Transfers shall be permitted and are hereby approved by the City (each a "Permitted Transfer"):
(1) Any Transfer creating a Security Financing Interest either: (A) permitted pursuant to the Approved Financing Plan; or (B) created as a result of a loan made to developer that replaces any existing Senior Lender.
(2) Any Transfer directly resulting from the foreclosure of a Security Financing Interest or the granting of a deed in lieu of foreclosure of a Security Financing Interest or as otherwise permitted under this Agreement.
(3) Except as set forth in subsection (c) above, during the Term, Grantee will not refinance, re-syndicate, take out a line of credit or otherwise further encumber the property or restructure the debt constituting the Approved Financing without prior notification to the City.
Section 4.12 Insurance Requirements.
(a) Grantee, Step Up and Owner shall maintain the following insurance coverage throughout the Term of the Grant written by insurers authorized to do business in the State of California and with a minimum "Best" Insurance Guide rating of "A-VII". If the Grantee, Step Up or Owner uses existing coverage to comply with these requirements and that coverage does not meet the specified requirements, the Grantee, Step Up, and Owner agrees to amend, supplement, or endorse the existing coverage to do so. The type(s) of insurance required is Redlands Regular Meeting of 07-19-22 954 of 974
determined by the scope of the contract services and the requirements set forth in the Standard Agreement.
(b) Without in anyway affecting the indemnity herein provided and in addition thereto, the Grantee, Step Up, and Owner shall secure and maintain throughout the contract term the following types of insurance with limits as shown:
(1) Workers' Compensation/Employers Liability.
(A) Workers' Compensation A program of Workers'
Compensation insurance or a state-approved, self-insurance program in an amount and form to meet all applicable requirements of the Labor Code of the State of California, including Employer's Liability with $1,000,000 limits covering all persons including volunteers providing services on behalf of the Grantee and all risks to such persons under this Agreement. A Waiver of Subrogation or Right to Recover endorsement in favor of the State of California, the Department of Housing and Community Development and the City will be attached to the certificate – per the Standard Agreement and the NOFA.
(B) If Grantee, Step Up, or Owner have no employees, each may certify or warrant to the City, that it does not currently have any employees or individuals who are defined as "employees" under the Labor Code and the requirement for Workers' Compensation coverage will be waived by the City’s Director of Risk Management. (C) With respect to borrowers that are non-profit corporations organized under California or federal law, volunteers for such entities are required to be covered by Workers' Compensation insurance.
(2) Commercial General Liability. General Liability Insurance covering all operations performed by or on behalf of Grantee, Step Up, and Owner providing coverage for bodily injury and property damage with a combined single limit of not less than One Million Dollars ($1,000,000), per occurrence and Two Million Dollars ($2,000,000) aggregate for bodily injury and property damage liability. The policy coverage must include:
(A) Premises operations and mobile equipment.
(B) Products and completed operations.
(C) Broad form property damage (including completed
operations).
(D) Explosion, collapse, and underground hazards.
(E) Personal injury.
(F) Contractual liability.
(G) Name the State of California, the Department of Housing and Community Development and the City, as well as the respective appointees, officers, agents, Redlands Regular Meeting of 07-19-22 955 of 974
and employees of each, as additional insured, but only with respect to work performed under the contract – per the Standard Agreement and the NOFA.
(3) Commercial Automobile Liability.
(A) Primary insurance coverage must be written on ISO
Business Auto coverage form for all owned, hired and non-owned automobiles or symbol I (any auto). The policy will also name the State of California, the Department of Housing and Community Development, and the City, as well as the respective appointees, officers, agents, and employees of each, as additional insureds, but only with respect to work performed under the contract – per the Standard Agreement and the NOFA.
(B) The policy must have a combined single limit of not less than One Million Dollars ($1,000,000) for bodily injury and property damage, per occurrence. (C) If the Grantee, Step Up or Owner is transporting one or more non-employee passengers in performance of contract services, the automobile liability policy must have a combined single limit of Two Million Dollars ($2,000,000) for bodily injury and property damage per occurrence.
(D) If the Grantee, Step Up, or Owner own no autos, a nonowned auto endorsement to the General Liability policy described above is acceptable. (4) Builder’s Risk/Installation Floater
(A) Builders Risk/Installation Floater insurance to cover the labor, materials, and equipment to be used for completion of the work performed under this contract against all risks of direct physical loss, excluding earthquake and flood, for an amount not less that the full amount of the property and/or materials being installed and/or constructed on or within the facility. (c) Insurance Review – Insurance requirements are subject to periodic review by the City. The City’s Director of Risk Management or designee is authorized, but not required, to reduce, waive or suspend any insurance requirements whenever Risk Management determines that any of the required insurance is not available, is unreasonably priced, or is not needed to protect the interests of the City. In addition, if the Department of Risk Management determines that heretofore unreasonably priced or unavailable types of insurance coverage or coverage limits become reasonably priced or available, the Director of Risk Management or designee is authorized, but not required, to change the above insurance requirements to require additional types of insurance coverage or higher coverage limits, provided that any such change is reasonable in light of past claims against the City, inflation, or any other item reasonably related to the City’s risk.
Section 4.13 Anti-Lobbying Certification.
(a) Grantee, Step Up, and Owner, certify, to the best of Grantee's Step Up's and Owner's respective knowledge or belief, that:
(1) No federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a Redlands Regular Meeting of 07-19-22 956 of 974
member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement;
(2) If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, Disclosure Form to Report Lobbying, in accordance with its instructions.
(b) This certification is a material representation of fact upon which reliance was placed when this Agreement was made or entered into. Submission of this certification is a prerequisite for making or entering into this Agreement imposed by Section 1352, Title 31, U. S.
Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than Ten Thousand Dollars ($10,000) and no more than One Hundred Thousand Dollars ($100,000) for such failure.
Section 4.14 Covenants Regarding Approved Financing.
(a) Grantee and Owner shall promptly pay the principal and interest when due on any Approved Financing.
(b) Grantee and Owner shall promptly notify the City in writing of the existence of any default under any documents evidencing Approved Financing. (c) .
Section 4.15 Affordability and Project Monitoring.
(a) Throughout the Term, the Grantee and Owner shall comply with all applicable record keeping and monitoring requirements set forth in the Homekey Regulations and shall annually complete and submit to City a Certification of Continuing Program Compliance. (b) Representatives of the City (and HCD or its authorized representatives) shall be entitled to enter the Property upon at least forty-eight (48) hours' notice at reasonable times to monitor compliance with this Agreement to inspect the records of the Development with respect to the City-Assisted Units, and to conduct an independent audit of such records. The Grantee and Owner agree to cooperate with the City in making the Property available for such inspection. If for any reason the City is unable to obtain the Grantee's or Owner's consent to such an inspection, the Grantee and Owner understand and agree that the City may obtain, at the Grantee or Owner's expense, an administrative inspection warrant or other appropriate legal order to obtain access to and search the Property.
(c) The Grantee and Owner agree to maintain records in a business-like manner and to make such records available to the City upon forty-eight (48) hours' notice at reasonable Redlands Regular Meeting of 07-19-22 957 of 974
times. Unless the City otherwise approves, such records shall be maintained for the most recent five years until five years after the expiration of the Homekey Term. (d) Throughout the Term, the Grantee and Owner grant the City inspection rights as set forth in Section 3.4 above, and Grantee and Owner shall make best efforts to allow the City to comply with all applicable physical monitoring requirements.
ARTICLE 5.
REPRESENTATIONS AND WARRANTIES OF BORROWER
Section 5.1 Representations and Warranties of Grantee.
Grantee hereby represents and warrants to the City as follows and acknowledges, understands, and agrees that the representations and warranties set forth in this Article 5 are deemed to be continuing during the Term. The Grantee shall immediately advise the City in writing if there is any material change relating to any matters set forth or referenced in the items set forth below:
(a) Organization. Grantee is duly organized, validly existing and in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted. Copies of the documents evidencing the organization of the Grantee delivered to the City are true and correct copies of the originals. (b) Authority of Grantee. Grantee has full power and authority to execute and deliver this Agreement and to make and accept the borrowings contemplated hereunder, to execute and deliver the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.
(c) Authority of Persons Executing Documents. This Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Grantee, and all actions required under Grantee's organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken.
(d) Valid Binding Agreements. This Agreement and the Grant Documents and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Grantee enforceable against it in accordance with their respective terms.
(e) No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement and the Grant Documents or of any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, nor the performance of any Redlands Regular Meeting of 07-19-22 958 of 974
provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on Grantee, or any provision of the organizational documents of Grantee, or will conflict with or constitute a breach of or a default under any agreement to which Grantee is a party, or will result in the creation or imposition of any lien upon any assets or property of Grantee, other than liens established pursuant hereto. (f) Compliance with Laws; Consents and Approvals. The conversion of the Development will comply with all applicable laws, ordinances, rules and regulations of federal, state and local governments and agencies and with all applicable directions, rules and regulations of the fire marshal, health officer, building inspector and other officers of any such government or agency.
(g) Pending Proceedings. Grantee is not in default under any law or regulation or under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Grantee, threatened against or affecting Grantee or the Development, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Grantee, materially affect Grantee's ability to repay the Grant or impair the security to be given to the City pursuant hereto.
(h) Title to Land. At the time of recordation of the Use Restriction, Grantee will have good and marketable fee title to the Development and there will exist thereon or with respect thereto no mortgage, lien, pledge or other encumbrance of any character whatsoever other than liens for current real property taxes and liens ancillary to the Approved Financing and liens in favor of the City or approved in writing by the City. (i) Financial Statements. The financial statements of Grantee and other financial data and information furnished by Grantee to the City fairly and accurately present the information contained therein. As of the date of this Agreement, there has not been any material adverse change in the financial condition of Grantee from that shown by such financial statements and other data and information.
(j) Sufficient Funds. Grantee holds or reasonably expects to receive firm financial commitments for sufficient funds to complete the acquisition of the Property and the conversion of the Development in accordance with the Standard Agreement. (k) Taxes. Grantee and its subsidiaries have filed all federal and other material tax returns and reports required to be filed, and have paid all federal and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their income or the Property otherwise due and payable, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with generally accepted accounting principles. There is no proposed tax assessment against Grantee or any of its subsidiaries that could, if made, be reasonably expected to have a material adverse effect upon the Property, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of Grantee and its subsidiaries, taken as a whole, which would be expected to result in a material impairment of the ability of Grantee to perform under any Grant Document to which Redlands Regular Meeting of 07-19-22 959 of 974
it is a party, or a material adverse effect upon the legality, validity, binding effect or enforceability against Grantee of any Grant Document.
Section 5.2 Representations and Warranties of Owner.
Owner hereby represents and warrants to the City as follows and acknowledges, understands, and agrees that the representations and warranties set forth in this Article 5 are deemed to be continuing during the Term. The Owner shall immediately advise the City in writing if there is any material change relating to any matters set forth or referenced in the items set forth below:
(a) Organization. Owner is duly organized, validly existing and in good standing under the laws of the State of Delaware and has the power and authority to own its property and carry on its business as now being conducted. Copies of the documents evidencing the organization of the Owner delivered to the City are true and correct copies of the originals. (b) Authority of Owner. Owner has full power and authority to execute and deliver this Agreement and to make and accept the borrowings contemplated hereunder, to execute and deliver the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.
(c) Authority of Persons Executing Documents. This Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Owner, and all actions required under Owner's organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken.
(d) Valid Binding Agreements. This Agreement and the Grant Documents and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Owner enforceable against it in accordance with their respective terms.
(e) No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement and the Grant Documents or of any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, nor the performance of any provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on Owner, or any provision of the organizational documents of Owner, or will conflict with or constitute a breach of or a default under any agreement to which Owner is a party, or will result in the creation or imposition of any lien upon any assets or property of Owner, other than liens established pursuant hereto.
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(f) Compliance with Laws; Consents and Approvals. The conversion of the Development will comply with all applicable laws, ordinances, rules and regulations of federal, state and local governments and agencies and with all applicable directions, rules and regulations of the fire marshal, health officer, building inspector and other officers of any such government or agency.
(g) Pending Proceedings. Owner is not in default under any law or regulation or under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Owner, threatened against or affecting Owner or the Development, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Owner, materially affect Owner's ability to repay the Grant or impair the security to be given to the City pursuant hereto. (h) Title to Land. At the time of recordation of the Use Restriction, Owner will have good and marketable fee title to the Development and there will exist thereon or with respect thereto no mortgage, lien, pledge or other encumbrance of any character whatsoever other than liens for current real property taxes and liens ancillary to the Approved Financing and liens in favor of the City or approved in writing by the City.
(i) Financial Statements. The financial statements of Owner and other financial data and information furnished by Owner to the City fairly and accurately present the information contained therein. As of the date of this Agreement, there has not been any material adverse change in the financial condition of Owner from that shown by such financial statements and other data and information.
(j) Sufficient Funds. Owner holds or reasonably expects to receive firm financial commitments for sufficient funds to complete the acquisition of the Property and the conversion of the Development in accordance with the Standard Agreement. (k) Taxes. Owner and its subsidiaries have filed all federal and other material tax returns and reports required to be filed, and have paid all federal and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their income or the Property otherwise due and payable, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with generally accepted accounting principles. There is no proposed tax assessment against Owner or any of its subsidiaries that could, if made, be reasonably expected to have a material adverse effect upon the Property, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of Owner and its subsidiaries, taken as a whole, which would be expected to result in a material impairment of the ability of Owner to perform under any Grant Document to which it is a party, or a material adverse effect upon the legality, validity, binding effect or enforceability against Owner of any Grant Document.
Section 5.3 Representations and Warranties of Step Up.
Step Up hereby represents and warrants to the City as follows and acknowledges, understands, and agrees that the representations and warranties set forth in this Article 5 are deemed to be continuing during the Term. Step Up shall immediately advise the City in writing if Redlands Regular Meeting of 07-19-22 961 of 974
there is any material change relating to any matters set forth or referenced in the items set forth below:
(a) Organization. Step Up is duly organized, validly existing and in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted. Copies of the documents evidencing the organization of Step Up delivered to the City are true and correct copies of the originals. (b) Authority of Step Up. Step Up has full power and authority to execute and deliver this Agreement and to make and accept the borrowings contemplated hereunder, to execute and deliver the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.
(c) Authority of Persons Executing Documents. This Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Step Up, and all actions required under Step Up's organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken.
(d) Valid Binding Agreements. This Agreement and the Grant Documents and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Step Up enforceable against it in accordance with their respective terms.
(e) No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement and the Grant Documents or of any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, nor the performance of any provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on Step Up, or any provision of the organizational documents of Step Up, or will conflict with or constitute a breach of or a default under any agreement to which Step Up is a party, or will result in the creation or imposition of any lien upon any assets or property of Step Up, other than liens established pursuant hereto. (f) Compliance with Laws; Consents and Approvals. The conversion of the Development will comply with all applicable laws, ordinances, rules and regulations of federal, state and local governments and agencies and with all applicable directions, rules and regulations of the fire marshal, health officer, building inspector and other officers of any such government or agency.
(g) Pending Proceedings. Except as disclosed to the City in the estoppel certificate provide by Step Up to the City, Step Up is not in default under any law or regulation or Redlands Regular Meeting of 07-19-22 962 of 974
under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Step Up, threatened against or affecting Step Up or the Development, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Step Up, materially affect Step Up's ability to perform the obligations to the City pursuant hereto.
ARTICLE 6.
DEFAULT AND REMEDIES
Section 6.1 Events of Default.
(a) Subject to Section 7.15, each of the following constitutes an "Event of Default" by Grantee under this Agreement:
(1) Failure under Standard Agreement. Failure of Grantee or Owner to obtain permits, commence, and prosecute to completion, conversion of the Development within the times set forth and in compliance with the requirements of the Standard Agreement. Any failure under this section will not be considered an Event of Default if it is not formally identified as such by HCD, and in any event, may be cured by Grantee or Owner within 120 days. (2) Failure to Comply with the Management Plan. Failure to comply with the Management Plan approved by the City and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the City to the Grantee, Step Up and Owner, which notice provides reasonable detail of the default and the required cure for such default.
(3) Failure to Comply with the Participant Selection Plan. Failure to comply with the Participant Selection Plan approved by the City and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the City to the Grantee, Step Up, and Owner, which notice provides reasonable detail of the default and the required cure for such default.
(4) Breach of Covenants. Failure by Grantee, Step Up, or Owner to duly perform, comply with, or observe any of the conditions, terms, or covenants of any of the Grant Documents, and Grantee, Step Up, or Owner fail to cure such default within forty-five (45) days after receipt of written notice thereof from the City to Grantee Step Up, and Owner, if Grantee, Step Up, or Owner are incapable of curing a default within such forty-five (45) day period, the City will give the Grantee, Step Up, or Owner one hundred twenty (120) days to cure such default provided Grantee, Step Up, or Owner have commenced to cure within such fortyfive (45) day period and is diligently proceeding to cure such default through the end of such period; provided, however, that if a different period or notice requirement is specified under any other section of this Article 6, the specific provisions shall control. (5) Insolvency. A court having jurisdiction makes or enters any decree or order: (1) adjudging Grantee or Owner to be bankrupt or insolvent; (2) approving as properly filed a petition seeking reorganization of Grantee or Owner, or seeking any arrangement for Grantee or Owner under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction; (3) appointing a receiver, trustee, liquidator, Redlands Regular Meeting of 07-19-22 963 of 974
or assignee of Grantee or Owner in bankruptcy or insolvency or for any of their properties; (4) directing the winding up or liquidation of Grantee or Owner if any such decree or order described in clauses (1) to (4), inclusive, is unstayed or undischarged for a period of ninety (90) calendar days; or (5) Grantee or Owner admit in writing its inability to pay its debts as they fall due or will have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (1) to (4), inclusive.
(6) Assignment; Attachment. Grantee or Owner assigns their assets for the benefit of its creditors or suffers a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon is returned or released within ninety (90) calendar days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution. (7) Suspension; Termination. Grantee, or Owner or its general partner, shall have: (1) the operation of their business voluntarily or involuntarily suspended by the State of California, (2) voluntarily stopped or terminated the operation of their business; (3) the Grantee or Owner shall have the operation of the partnership voluntarily or involuntarily dissolved, suspended or terminated by the State of California or Delaware. (8) Unauthorized Transfer. Any Transfer other than as permitted pursuant to Section 4.12.
(9) Failure to Timely Occupancy. Failure of Grantee or Owner to make the City-Assisted Units available for occupancy within the time specified in the Standard Agreement. Any failure under this section will not be considered an Event of Default if it is not formally identified as such by HCD, and in any event, may be cured by Grantee or Owner within 120 days.
Section 6.2 Remedies.
(a) Upon the occurrence of an Event of Default and following the expiration of all applicable notice and cure periods will, either at the option of the City or automatically where so specified, gives the City the right to proceed with any and all remedies set forth in this Agreement and the Grant Documents, including but not limited to the following:
(A) Revocation of Grant. The City may demand that any portion of the Grant not forgiven pursuant to Section 2.3 above, together with any accrued interest thereon, to become immediately due and payable.
(B) Specific Performance. The City has the right to mandamus or other suit, action or proceeding at law or in equity to require Grantee, Step Up, and Owner to perform their obligations and covenants under the Grant Documents or to enjoin acts on things that may be unlawful or in violation of the provisions of the Grant Documents. (C) Termination. The City has the right to terminate this Agreement and, at its sole option, to seek any remedies at law or equity available hereunder.
Section 6.3 Right of Contest.
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Grantee and Owner may contest in good faith any claim, demand, levy, or assessment the assertion of which would constitute an Event of Default hereunder. Any such contest is to be prosecuted diligently and, as to a default related to a third party or third party event, in a manner unprejudicial to the City or the rights of the City hereunder.
Section 6.4 Remedies Cumulative.
No right, power, or remedy given to the City by the terms of this Agreement or the Grant Documents is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy will be cumulative and in addition to every other right, power, or remedy given to the City by the terms of any such instrument, or by any statute or otherwise against Grantee, Step Up or Owner and any other person. Neither the failure nor any delay on the part of the City to exercise any such rights and remedies will operate as a waiver thereof, nor does any single or partial exercise by the City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.
ARTICLE 7.
GENERAL PROVISIONS
Section 7.1 Relationship of Parties.
Nothing contained in this Agreement is to be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the City and Grantee, Step Up or Owner or their agents, employees or contractors, and Grantee, Step Up and Owner will at all times be deemed an independent contractor and to be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement. Grantee, Step Up, and Owner have and retain the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services under the Agreement. In regard to the rehabilitation and operation of the Development, Grantee and Owner are solely responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding, and all other laws and regulations governing such matters, and must include requirements in each contract that contractors are solely responsible for similar matters relating to their employees. Grantee, Step Up and Owner are solely responsible for their own acts and those of their agents and employees.
Section 7.2 No Claims.
Nothing contained in this Agreement creates or justifies any claim against the City by any person that Grantee, Step Up or Owner may have employed or with whom Grantee, Step Up, or Owner may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the tenancy of the Property, the rehabilitation or operation of the Development, and Grantee, Step Up and Owner shall include similar requirements in any contracts entered into for the rehabilitation or operation of the Development.
Section 7.3 Indemnification.
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The Grantee, Step Up and Owner, each agrees to indemnify, defend (with counsel reasonably approved by City) and hold harmless the City and its authorized officers, employees, agents and volunteers ("Indemnities") from any and all claims, actions, losses, damages, and/or liability arising out of this contract from any cause whatsoever, including the acts, errors or omissions of any person and for any costs or expenses incurred by the City on account of any claim except where such indemnification is prohibited by law. This indemnification provision shall apply regardless of the existence or degree of fault of Indemnities, except as provided in the following sentence. The indemnification obligations apply to the City's "active" as well as "passive" negligence but does not apply to the City's "gross negligence" or "willful misconduct" within the meaning of Civil Code Section 2782. The provisions of this Section shall not be limited by the existence of insurance and will survive the expiration of the Term.
Section 7.4 Non-Liability of City Officials, Employees and Agents.
No board member, official, employee or agent of the City is personally liable to Grantee, Step Up, or Owner in the event of any default or breach by the City or for any amount that may become due to Grantee, Step Up, or Owner or their successor or on any obligation under the terms of this Agreement.
Section 7.5 No Third Party Beneficiaries.
There are no third party beneficiaries to this Agreement.
Section 7.6 Conflict of Interest.
(a) Except for approved eligible administrative or personnel costs, no person described in Section 7.6(b) below who exercises or has exercised any functions or responsibilities with respect to the activities funded pursuant to this Agreement or who is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest or financial benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during, or at any time after, such person's tenure. Grantee, Step Up, and Owner shall exercise due diligence to ensure that the prohibition in this Section is followed.
(b) The conflict of interest provisions of Section 7.6(a) above apply to any person who is an employee, agent, consultant, officer of the City, or any immediate family member of such person, or any elected or appointed official of the City, or any person related within the third (3rd) degree of such person.
(c) In accordance with California Government Code Section 1090 and the Political Reform Act, California Government Code Section 87100 et seq., no person who is a director, officer, partner, trustee or employee or consultant of Grantee, or immediate family member of any of the preceding, may make or participate in a decision, made by the City or a City board, commission or committee, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or Grantee. Interpretation of this Section is governed by the definitions and provisions used in the Redlands Regular Meeting of 07-19-22 966 of 974
Political Reform Act, California Government Code Section 87100 et seq., its implementing regulations manual and codes, and California Government Code Section 1090.
Section 7.7 Notices, Demands and Communications.
All notices required or permitted by any provision of this Agreement must be in writing and sent by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally, to the principal office of the Parties as follows:
City:
City of Redlands
35 Cajon Street, Suite 200
Redlands, CA 92373
Attn: Mayor Paul T. Barich
with a copy to:
City of Redlands
35 Cajon Street, Suite 200
Redlands, CA 92373
Attn: City Attorney
Grantee:
Shangri-La Industries, LLC
c/o Shangri-La Industries
660 S Figueroa St, Suite 1888
Los Angeles, CA 90017-3433
Attn: Andy Meyers/Cody Holmes
Owner:
1675 Industrial Park, LP
c/o Shangri-La Industries
660 S Figueroa St, Suite 1888
Los Angeles, CA 90017-3433
Attn: Andy Meyers/Cody Holmes
with a copy to:
Cornelius & Cohanghadosh, APC
23801 Calabasas Rd., Suite 100
Calabasas, CA 91302
Attn: Alex Cornelius
Step Up:
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Step Up on Second Street, Inc.
1328 Second Street
Santa Monica, CA 90401-1122
Attn: Tod Lipka, President and Chief Executive Officer
Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected party may from time to time designate by mail as provided in this Section.
Receipt will be deemed to have occurred on the date shown on a written receipt as the date of delivery or refusal of delivery (or attempted delivery if undeliverable).
Section 7.8 Amendments.
No alteration or variation of the terms of this Agreement is valid unless made in writing by the Parties. The City Executive Officer is authorized to execute on behalf of the City amendments to the Grant Documents or amended and restated Grant Documents.
Section 7.9 City Approval.
The City has authorized the City Executive Officer or designee to execute the ancillary Grant documents and deliver such approvals or consents as are required by this Agreement, and to execute estoppel certificates concerning the status of the Grant and the existence of defaults under the Grant Documents, including subordination agreements substantially consistent with the terms of Section 2.7 above.
Section 7.10 Applicable Law and Venue.
This Agreement is governed by the laws of the State of California.
Section 7.11 Parties Bound.
Except as otherwise limited herein, this Agreement binds and inures to the benefit of the parties and their heirs, executors, administrators, legal representatives, successors, and assigns.
This Agreement is intended to run with the land and to bind Grantee and its successors and assigns in the Property and the Development for the entire Term, and the benefit hereof is to inure to the benefit of the City and its successors and assigns.
Section 7.12 Attorneys' Fees.
If any lawsuit is commenced to enforce any of the terms of this Agreement, the prevailing party will have the right to recover its reasonable attorneys' fees and costs of suit from the other party.
Section 7.13 Severability.
If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions will continue in full force and effect unless Redlands Regular Meeting of 07-19-22 968 of 974
the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.
Section 7.14 Force Majeure.
In addition to specific provisions of this Agreement, performance by any party hereunder shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; casualties; acts of god; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; governmental restrictions or priority; litigation (including suits filed by third parties concerning or arising out of this Agreement); weather or soils conditions which, in the opinion of the Grantee's or Owner's contractor, will necessitate delays; inability to secure necessary labor, materials or tools; acts of the other party; acts or failure to act of any public or governmental City or entity (other than the acts or failure to act of the City); or any other causes (other than the Grantee's inability to obtain financing for the Improvements) beyond the control or without the fault of the party claiming an extension of time to perform. An extension of time for any cause will be deemed granted if notice by the party claiming such extension is sent to the other within ten (10) business days from the date the party seeking the extension first discovered the cause and such extension of time is not rejected in writing by the other party within ten (10) business days of receipt of the notice. Times of performance under this Agreement may also be extended in writing by the City and the Grantee. In no event shall the cumulative delays during the Term of this Agreement exceed three hundred and sixty (360) days, unless otherwise agreed to by the Parties in writing. As allowed under Section 7.20 of this Agreement, the City Executive Officer at the City Executive Officer's reasonable discretion may extend the cumulative delay limit without need for additional Board of Supervisor approval.
Section 7.15 Waivers.
Any waiver by the City of any obligation or condition in this Agreement must be in writing.
No waiver will be implied from any delay or failure by the City to take action on any breach or default of Grantee or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Grantee to perform any obligation under this Agreement does not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by Grantee may not be construed to be consent to any other or subsequent act or omission or to waive the requirement for the City's written consent to future waivers.
Section 7.16 Title of Parts and Sections.
Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and are to be disregarded in interpreting any part of the Agreement's provisions.
Section 7.17 Entire Understanding of the Parties.
The Grant Documents constitute the entire agreement of the Parties with respect to the Grant.
Section 7.18 Multiple Originals; Counterpart.
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This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
Section 7.19 Action by the City. Except as may be otherwise specifically provided in this Agreement or any other of the Grant Documents, whenever any approval, notice, direction, finding, consent, request, waiver, or other action by the City is required or permitted under this Agreement or any other of the Grant Documents, such action shall be given, made, taken, refused, denied or withheld by the City Executive Officer, at the City Executive Officer's reasonable discretion (unless some other standard is expressly stated), or by any person who shall have been designated in writing to the Borrowers by the City Executive Officer, without further approval by the City Council. Any such action shall be in writing.
WHEREAS, this Agreement has been entered into by the undersigned as of the Effective Date.
[Signatures On Next Page]
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GRANTEE:
Shangri-La Industries, LLC, a Delaware limited liability company By: _____________________________________
Name: _____________________________________
Its: _____________________________________
Date: ___________________________________________
OWNER:
1675 Industrial Park, LP, a Delaware limited partnership By: _____________________________________
Name: _____________________________________
Its: _____________________________________
Date: ___________________________________________
STEP UP:
STEP UP ON SECOND STREET, INC., a California nonprofit
public benefit corporation
By: _____________________________________
Name: _____________________________________
Its: _____________________________________
Date: ___________________________________________
[Signature Page Continues]
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CITY:
CITY OF REDLANDS, a political subdivision of the State of California
By: _________________________________
Name: Paul T. Barich
Title: Mayor
Date: _______________
ATTEST:
_____________________________
Jeanne Donaldson
City Clerk
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EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The land is situated in the State of California, City of Redlands, and is described as follows:
APN: 0292063380000
H L WILLIAMS TR PTN LOT 2 BLK 1 LYING SLY OF LI DESC AS COM AT PT ON W LI SD LOT S O DEG 25 MIN 34 SECONDS E 198.80 FT FROM NW COR THEREOF TH N 89 DEG 34 MIN 16 SECONDS E 469.83 FT TH ALG A TANGENT CURVE CONCAVE SWLY WITH RADIUS OF 370 FT THRU ANGLE OF 30 DEG 55 MIN 23 SECONDS 199.69 FT TO E LI SD LOT EXE 475 FT THEREOF MEAS AT R/A TO AND PARALLEL WITH E LI SD LOT AND EX ST 7-17-87
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EXHIBIT B
SCHEDULE OF PERFORMANCE
This Schedule of Performance sets forth the schedule for various activities under the Agreement to which this exhibit is attached. The description of items in this Schedule of Performance is meant to be descriptive only, and shall not be deemed to modify in any way the provisions of the Agreement to which such items relate. Times for performance are subject to Force Majeure, as further provided in Section 7.15 of the Agreement, and the notice and cure rights as further provided in Section of the Agreement.
As provided in the Agreement, this Schedule of Performance may only be modified in a writing executed by all Parties, in accordance with Section 7.9 of the Agreement.
Milestone Date
Execute Standard Agreement May 24, 2022
Execute Grant Documents On or before July 30, 2022
Submit Evidence of Insurance Prior to Acquisition Closing Close on Acquisition Financing, Construction Financing and Acquire Property On or before June 29, 2022
Submit and obtain approval of Management Plan and Social Services Plan On or before November 15, 2022
Submit nondiscrimination policy in accordance with Exhibit D of the Standard Agreement On or before November 15, 2022
Draft Regulatory Agreement for use restriction On or before November 15, 2022 Final HCD-approved Regulatory Agreement or other use restriction recorded against the project real property On or before March 14, 2023 Submit plans and application(s) for plan check and building permit to City of Redlands On or before March 25, 2022
City Grant Issuance
In seven installments on or before
July 15 annually after initial plans
and application submittal
Obtain Building Permits
Within thirty (30) calendar days of
building plan and application
submittal
Begin rehabilitation and Unit conversion Within thirty (30) business days from obtaining Building Permits
Complete rehabilitation and unit conversion On or before March 14, 2023 Provide to the City, project information for Homekey Program and Expenditure Report as outlined in Section 601 of the NOFA Annually for five (5) years on
January 15th for the prior calendar
year (January 1 to December 31)
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