Agenda packet, regular meeting — Redlands City Council, October 6, 2026 (part 7 of 7)

E. For any sites with warehouses that are abutting or adjacent to any residential properties or properties containing sensitive receptors, any outdoor storage of materials, high-pile storage, or any other manner of storage or staging shall not exceed the height of the perimeter wall.

F. Additional operating conditions may be enacted for an individual Warehouse project pursuant to a Conditional Use Permit (RMC Redlands Municipal Code Chapter 18.192) for the purpose of avoiding or reducing potential off-site nuisance effects of the warehouse facility (including but not limited to traffic, parking, noise, vibration, air quality emissions, etc.) on nearby sensitive receptors or residential districts, or to protect the public health, safety, or general welfare.” SECTION 11. Redlands Municipal Code Chapter 18.156, Article XII entitled “Warehouses and Logistics Distribution Centers,” is hereby amended to add Section 18.156.970 as follows:
“18.156.970: REBUILDING PROVISIONS FOR EXISTING WAREHOUSES AND LOGISTICS DISTRIBUTION CENTERS:

A. For warehouses and logistics distribution facilities existing as of the effective date of Ordinance No. 3002, the criteria for alterations or repairs to the existing structure or property are as follows:

1. Ordinary repair and maintenance may be performed on a structure or property subject to the provisions of this article, and in accordance with applicable law (e.g., California Building Code, California Fire Code, etc.).

2. Improvements to the existing structure including technology upgrades (e.g., seismic strengthening, energy use efficiency, PV solar or re-roof, water use efficiency, reductions to greenhouse gas emissions, hazardous materials remediation, etc.) may be installed on a structure or property subject to the provisions of this article, and in accordance with applicable laws (e.g., California Building Code, California Fire Code, etc.).

3. Warehouses and logistics distribution facility buildings may be voluntarily rebuilt, reconstructed, or otherwise altered, subject to the provisions of this article, and in accordance with applicable laws (e.g., California Building Code, California Fire Code, etc.).
24 I:\cmo\Ordinances\C-1. Ord. 3002 Warehouses legislative.bm.09.21.2026.docx

4. If the warehouse or logistics distribution facility building is involuntarily damaged or destroyed by natural disasters (i.e., fire, flood, earthquake or other calamity or acts of God), the entirety of the structure may be rebuilt subject to the provisions of this article, and in accordance with applicable laws (e.g., California Building Code, California Fire Code, etc.).

B. Existing warehouses and logistics distribution facilities (existing as of the effective date of Ordinance No. 3002) may be rebuilt to the previously existing square-footage (building footprint), previously existing height, and previously existing number of truck docks if the subject property meets the following criteria:

1. The warehouse or logistics distribution use was legally established prior to the effective date of Ordinance No. 3002; or if not yet established, the subject property had a valid land use entitlement issued prior to the effective date of Ordinance No. 3002.

2. The Development Services Director has determined the existing business to be a permitted or conditionally permitted use.

3. An applicable building permit(s) shall be obtained for reconstruction, if required.

4. A change in ownership or tenancy without any change in use or occupancy shall not affect any of the rebuilding rights, privileges, and responsibilities provided pursuant to this section.

5. It shall be the property owner's responsibility to provide evidence or information to justify the establishment of rebuilding rights.

C. Existing warehouses and logistics distribution facilities (existing as of the effective date of Ordinance No. 3002) may be altered and request an increase to the building height pursuant to the following criteria:

1. Interior ceiling height Building height may be increased up to 15% (and overall building height not to exceed the maximum height allowable within the applicable land use district (or 50 feet if no maximum is specified) or an applicable entitlement) to incorporate technology upgrades, energy efficiency improvements, or other justifiable economic or environmental reasons; and/or may increase the number of previously existing truck dock positions; provided the structure meets the criteria listed below. a. The subject property meets all applicable criteria in Section 18.156.970(B). b. The subject property obtains a Conditional Use Permit issued pursuant to Chapter

18.192 of this title.
c. Construction or redevelopment of a building involving additional height shall include the feasible provisions of Section 18.156.930 through 18.156.960 of this article, as determined by the Planning Commission (the location requirements of Section 18.156.920(A) shall not apply). For purposes of this article, “feasible” has the same meaning as California Code of Regulations Title 14, § 15364. 25 I:\cmo\Ordinances\C-1. Ord. 3002 Warehouses legislative.bm.09.21.2026.docx d. Complete an environmental review process, if applicable, in accordance with the California Environmental Quality Act for a proposed project that will increase building height, increase the number of truck docks, or change non-refrigerated space to refrigerated space.
e. The applicant shall prepare and submit commission may require one or more of the following in conjunction with a development application for a land use entitlement: in instances where the proposed redevelopment, reconstruction, or alteration appears to create impacts to traffic, landscaping, or economic feasibility:
i. Circulation studies, prepared by a traffic engineer, showing the movement of vehicular and truck traffic to and from the subject property, and to and from existing thoroughfares. Special engineering features and/or traffic regulation devices needed to facilitate or ensure safety of circulation may be required.
ii. A landscaping and tree planting plan, prepared by a landscape architect. iii. An economic feasibility report or market analysis, prepared by a qualified economist, justifying the need to increase the building height and/or increase the number of truck docks.
iv. An energy audit analysis report to identify current (baseline) conditions for the existing structure; and an energy analysis for the proposed modified facility to demonstrate compliance with the California Building Code and that there will be a demonstrated improvement to energy efficiency.” SECTION 12. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 13. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in a newspaper of general circulation within the City, and thereafter, this ordinance shall take effect as provided by law.
26 I:\cmo\Ordinances\C-1. Ord. 3002 Warehouses legislative.bm.09.21.2026.docx ADOPTED, SIGNED AND APPROVED this ___ day of ____________, 2026. _________________________
Mario Saucedo, Mayor
ATTEST:
___________________________
Jeanne Donaldson, City Clerk
27 I:\cmo\Ordinances\C-1. Ord. 3002 Warehouses legislative.bm.09.21.2026.docx I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the ___ day of _____________, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Jeanne Donaldson, City Clerk
1 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx ORDINANCE NO. 3002
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING TITLE 18
(ZONING REGULATIONS) OF THE REDLANDS MUNICIPAL CODE TO

PROHIBIT NEW WAREHOUSING AND LOGISTICS DISTRIBUTION

CENTERS, AS DEFINED, IN THE COMMERCIAL AND INDUSTRIAL

ZONES, WHILE ALLOWING FOR EXISTING WAREHOUSES AND

LOGISTICS DISTRIBUTION USES TO REMAIN AS PERMITTED OR

CONDITIONALLY PERMITTED USES SUBJECT TO NEW REBUILD
PROVISIONS.

WHEREAS, the City Council of the City of Redlands has initiated Ordinance Text Amendment No. 372, in accordance with Chapter 18.204 (Amendments) of the Redlands Municipal Code, as the public necessity, convenience, or general welfare justifies such action; and WHEREAS, over the past twenty years, Redlands has experienced the construction of numerous large warehouses and logistics distribution facilities in and around the City of Redlands including the unincorporated County jurisdiction located in northwest Redlands; and WHEREAS, on September 29, 2024, the Governor of the State of California signed Assembly Bill (AB) 98 to add Section 65302.02 to, and to add Chapter 2.8 (commencing with Section 65098) to Division 1 of Title 7 of, the Government Code, and to add Sections 40458.5 and 40522.7 to the Health and Safety Code, relating to land use, and the “Warehouse Concentration Region” defined therein includes the City of Redlands among other nearby cities and counties; and WHEREAS, two major transportation corridors (Interstate 10 and Interstate/S.R. 210 freeways) serve the Southern California region and are gateways to the Interstate Highway System, and both freeways pass through the City of Redlands, which contributes to a significant quantity of heavy-truck and other vehicular traffic to pass through the City to reach destinations located outside the City of Redlands as well as within the unincorporated “donut hole” area; and WHEREAS, heavy-truck traffic that serves several million square feet of warehousing and logistics distribution uses located within the unincorporated County island area (surrounded by the City of Redlands) must pass through the City and utilize City streets on a daily basis at all hours of the day and night; and
WHEREAS, the residents and visitors of the City of Redlands may experience exposure to environmental effects (such as numbers of truck trips, vehicle miles traveled, greenhouse gas emissions affecting air quality, vehicular noise, etc.) and other externalities from such warehousing and logistics distribution uses; and
WHEREAS, in accordance with Government Code § 65854 and/or § 65090, on or about March 24, 2026, the Secretary to the Planning Commission gave notice by publication in a newspaper of general circulation of the holding of a public hearing at which Ordinance Text Amendment No. 372 would be considered by the Planning Commission; and 2 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx WHEREAS, on April 14, 2026, the Planning Commission held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 372 and related Specific Plan Amendments; and WHEREAS, in accordance with Government Code § 65854 and/or § 65090, on or about April 21, 2026, the Secretary to the Planning Commission gave notice by publication in a newspaper of general circulation of the holding of a public hearing at which Ordinance Text Amendment No. 372 would be considered by the Planning Commission; and WHEREAS, on May 12, 2026, the Planning Commission held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 372 and related Specific Plan Amendments; and WHEREAS, the proposed Ordinance No. 3002 is exempt from environmental review in accordance with Sections 15061(b)(3), 15308, and 15378(b)(5) of the California Environmental Quality Act Guidelines; and
WHEREAS, following the public hearing on May 12, 2026, the Planning Commission determined that Ordinance Text Amendment No. 372 would be in conformity with the 2035 General Plan, and would be consistent with goals of the General Plan for transportation, connectivity, compatibility and harmonious relationship of different land uses; and WHEREAS, on May 12, 2026, the Planning Commission recommended approval of Ordinance Text Amendment No. 372 to the City Council; and WHEREAS, in accordance with Government Code § 65854 and/or § 65090, the City Clerk gave notice by publication in a newspaper of general circulation of the holding of a public hearing at which Ordinance Text Amendment No. 372 would be considered by City Council; and WHEREAS, on June 16, 2026, the City Council held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 372 and continued the public hearing; and WHEREAS, on September 1, 2026, the City Council held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 372 and continued the public hearing; and WHEREAS, on September 1, 2026, the City Council held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 372 and continued the public hearing to October 6, 2026; and WHEREAS, on October 6, 2026, the City Council held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 372.
3 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx

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

SECTION 1. California Environmental Quality Act. The proposed Ordinance Text Amendment does not require environmental review in accordance with Sections 15061(b)(3), 15308, and 15378(b)(5) of the California Environmental Quality Act Guidelines. Pursuant to Section 15378(b)(5) of the California Environmental Quality Act (“CEQA”), this proposal 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 proposal is exempt from CEQA review because there is no possibility that the zoning code amendment may have a significant effect on the environment, insofar as it would amend the lists of permitted land uses in the City of Redlands. Furthermore, even if the proposal is considered a project, the proposed zoning code amendment is categorically exempt under CEQA Guidelines Section 15308, because it is clear that it will not create an environmental impact and the action will assure the maintenance, enhancement, or protection of the environment through the adoption of regulations prohibiting new large new warehouses and logistics distribution facilities. Accordingly, no further environmental review is necessary.

SECTION 2. Redlands Municipal Code Section 18.100.040, entitled “Permitted Uses” for the Commercial Industrial (C-M) District, is hereby amended to read as follows:
“18.100.040: PERMITTED USES:

Principal permitted uses in the C-M zone include:

A. Auto services: No open service bays shall face a public street, or they shall be screened:

Brake relining.

Glass installation.

Muffler installation.

Painting.

Repair.

Upholstery.

B. Commercial sales and service:

Agricultural supplies and equipment.

Automobile equipment.

Automobile, new and used.

Bicycle, boat and motorcycle.

Building material and hardware.

Cabinet shop.

Camper and mobilehome.

Drive-in stores, such as milk and food, no alcohol beverage sales.

Electrical apparatus and equipment.

Furniture, appliances and carpeting.
4 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Garden and farm supplies.

Interior decorator studios.

Machinery, equipment and supplies.

Nurseries; no outdoor display of merchandise other than plants.

Office equipment.

Paint.

Pet and pet supply.

Plumbing, heating, air conditioning and refrigeration equipment and supplies.

Radio, television and musical instruments.

C. Industrial:

Uses permitted in the M-P planned industrial district.

Recreation and entertainment: The following uses are subject to approval of a conditional use permit if within three hundred feet (300') of a residential area:

Bowling lanes, skating rinks, and sports arenas, no alcohol beverage sales.

Drive-in theaters.

D. Services:

Auction houses.

Auto rental.

Bus terminals and similar transit facilities.

Cleaning and dyeing plants, laundries, linen and towel service.

Furniture upholstery.

Governmental agencies.

Ice manufacture, cold storage, and frozen food lockers.

Mail order houses.

Motels and hotels.

Parcel delivery.

Pest control.

Public scales.

Radio and television broadcasting studios.

Restaurants.

Retreading of tires.

Sign painters.

E. Other uses:

Agricultural uses permitted in the M-P district.

Business, technical, trade or professional schools.

Clubs, lodges, and similar organizations.

Electric distribution substations, public utility buildings and service yards.

Van and storage.
5 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Warehousing, ancillary to another primary use (see Redlands Municipal Code Chapter 18.156, Article XII).

Warehousing, in buildings with less than 50,000 square-feet in gross floor area, and not more than five truck docks or dock high loading doors.

18.156.970 of this title.

Wholesalers.”
SECTION 3. Redlands Municipal Code Section 18.100.070, entitled “Conditional Uses” for the Commercial Industrial (C-M) District, is hereby amended to read as follows:
“18.100.070: CONDITIONAL USES:

The following uses may be permitted in the C-M zone subject to approval of a conditional use permit:

Uses listed in chapter 18.192 of this title.

Ambulance service.

Animal hospitals.

Bowling lanes, skating rinks, and sports arenas, with alcohol beverage sales.

Cocktail lounges and bars.

Drive-in stores, such as milk and food, with alcohol beverage sales.

Equipment rental.

Radio and television transmitter towers higher than fifty feet (50') above ground level.

Regional shopping center containing at least one department store and a minimum gross land area of thirty five (35) acres; uses permitted shall be limited to those contained in the C-3 zone.

Retail store containing a minimum gross leasable area of seventy five thousand (75,000) square feet, subject to the parking requirements for neighborhood commercial districts.

Service stations.”
SECTION 4. Redlands Municipal Code Section 18.108.030, entitled “Permitted and Accessory Uses” for the (M-1) Light Industrial District is hereby amended to read as follows:
“In the M-1 zone, principal permitted uses shall be as follows:

A. Uses permitted in the M-P, planned industrial district.

B. Accessory uses:

Commercial sales and service incidental to a principal permitted use.

Employee recreational facilities and play areas.

Storage buildings incidental to a permitted use.

Superintendent or caretaker dwelling. One dwelling unit on the same parcel of land as a permitted use needing continual supervision, to be occupied exclusively by a 6 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx superintendent or a caretaker and his family.

Other accessory uses and buildings customarily appurtenant to a permitted use.

C. Manufacturing:

Manufacture and assembly of electrical equipment and supplies, such as coils, condensers, lamps, switches, wire and cable assembly.

Manufacture of ceramic products, such as pottery, figurines and small glazed tile, utilizing only previously pulverized clay, and provided that kilns are fired only by electricity or gas.

Manufacture of cutlery, hardware, hand tools and kitchen utensils.

Manufacture, processing or treatment of products other than those which may be obnoxious or offensive by reason of emission of odor, dust, smoke, gas, noise, vibration or hazard.

Manufacturing, assembling, compounding, packaging and processing of articles or products from the following previously prepared materials: asbestos, bristles, bone, feathers, hair, horns, leather, metal, paints (excluding any boiling process), paper, textiles.

Manufacturing, compounding, processing, canning or packaging of products such as bakery goods, candy and soft drinks, dairy products, food products (excluding fish and meat products, sauerkraut, vinegar, yeast, and the rendering or refining of fats and oils).

Mattress manufacture, repair, rebuildings and recovering.

D. Other uses:

Agricultural supplies and equipment, sales and service.

Agricultural uses, but excluding dairies, stockyards, slaughter of animals, and manufacture of fertilizer.

Automobile accessory and parts sales.

Automobile repair services; no open service bays shall face a public street, or they shall be screened.

Automobile sales, new and used.

Barbershops.

Boat, mobilehome and camper sales and services.

Building material and hardware sales.

Catering services.

Cleaning and dyeing plants, laundries, linen and towel service.

Creameries.

Electric distribution substations, electric transmission substations, and public utility buildings and service yards.

Furniture upholstery.

Ice manufacture and storage, frozen food lockers, and cold storage plants.

Lumberyards (no planing mills).
7 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx E. Machine shops and such uses as the following:

Anodizing shops.

Blacksmith shops.

Cabinet or carpenter shops.

Die and pattern making shops.

Electroplating shops.

Grinding shops.

Metal engraving shops.

Metal finishing and plating shops.

Polishing shops.

Sheet metal shops.

Tinsmith shops.

Welding shops.

Parking lots, commercial.

Petroleum bulk plants.

Plumbing, heating or electrical shops.

Real estate, business and professional offices.

Repair and fix-it shops.

Repair garages, body and fender works and auto painting, providing all work is conducted within a completely enclosed structure.

Retreading and recapping of tires.

Service stations.

Sign painters.

Taxidermy shops.

Tree surgeons.

Volume sales outlets, such as furniture, appliances and carpeting.

Warehousing, ancillary to another primary use (see Redlands Municipal Code Chapter

18.156, Article XII).

Warehousing, in buildings with less than 50,000 square-feet in gross floor area, and not more than five truck docks or dock high loading doors.

Wholesaling.”
SECTION 5. Redlands Municipal Code Section 18.108.050, entitled “Conditional Uses” for the Light Industrial (M-1) District, is hereby amended to read as follows:
“The following uses may be permitted in the M-1 zone subject to approval of a conditional use permit:

Animal and pet hospitals, kennels and animal pounds.

Automobile wash, mechanical or self-service.

Building materials storage yards.

Business, technical, trade or professional schools.
8 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Commercial recreation such as bowling lanes and skating rinks.

Contractors' storage yards.

Equipment rentals.

Feed and fuel yards.

Motels.

Outdoor vehicle storage and holding lot, with no dismantling or wrecking permitted.

Restaurants.”
SECTION 6. Redlands Municipal Code Section 18.112.030, entitled “Permitted and Accessory Uses” for the Industrial (I-P) District, is hereby amended to read as follows:
“18.112.030: PERMITTED AND ACCESSORY USES:

Principal permitted uses in the I-P zone include:

A. Accessory uses:

Commercial sales and service incidental to a principal permitted use.

Employee recreational facilities and play areas.

One dwelling unit on the same parcel of land as a permitted use needing continual supervision, to be occupied exclusively by a superintendent or a caretaker and his family.

Storage buildings incidental to a permitted use.

Other accessory uses and buildings customarily appurtenant to a permitted use.

B. Manufacturing:

Machine tool manufacture, including metal lathes, presses and stamping machines, and woodworking machines.

Machinery manufacture, including electrical, agricultural, construction, mining, air conditioning equipment, dishwashers, dryers, furnaces, heaters, stoves and washing machines.

Manufacture of chemicals and chemical products, except those requiring a conditional use permit.

Manufacture of food products, including such processes as cooking, roasting, refining and extraction involved in the preparation of such products as cereal, chocolate, cider, coffee, glucose, rice, flour, feed and grain, vegetable oils and yeast; but not including fish or meat products.

Manufacturing and processing of the following, conducted in an enclosed building, except that any outdoor manufacturing or processing operation in this group of uses shall be subject to approval of a conditional use permit:

Abrasives.
9 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Aircraft and aircraft accessories.

Aluminum products.

Asbestos.

Automobiles, trucks and trailers.

Automotive accessories and parts.

Boats.

Candles.

Canvas.

Carpets and rugs.

Cellophane.

Cloth.

Composition wallboard.

Cork.

Felt.

Fiber.

Fur.

Glass, but excluding blast furnaces.

Glazed tile.

Hemp products.

Ink.

Jute products.

Leather.

Linter.

Metal foil.

Metal products.

Missiles and missile components, excluding explosive fuels.

Motors and generators.
10 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Paper.

Plastics.

Porcelain products.

Pulp goods.

Putty.

Railroad equipment.

Rubber products.

Sisal products.

Starch and dextrine.

Structural steel products.

Textiles.

Tile.

Wire and wire products.

Yarns.

Metal fabricating, heat treating, pickling and stamping.

Transit and transportation terminals, repair and storage facilities.

C. Services:

Blueprinting, photocopying and film processing.

Business and research offices related to the administration and operation of the permitted industrial uses.

Electrical distribution substations, electrical transmission substations, public utility service yards and steam electric generating stations.

Laboratories.

Lumberyards.

Newspaper publishing.

Off street parking.

Offices, business and professional.

Petroleum bulk plants.
11 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Printing, lithographing, publishing.

Public buildings.

Public utility offices.

Radio and television broadcasting.

Restaurants operated for employees on the premises.

Trade union halls.

18.156.970 of this title.

Warehousing, ancillary to another primary use (see Redlands Municipal Code Chapter 18.156, Article XII).

Warehousing, in buildings with less than 50,000 square-feet in gross floor area, and not more than five truck docks or dock high loading doors.

Wholesaling.”
SECTION 7. Redlands Municipal Code Section 18.112.050, entitled “Conditional Uses” for the Industrial (I-P) District, is hereby amended to read as follows:
“The following uses may be permitted subject to approval of a conditional use permit:

A. Heliports.

B. Manufacturing of:

Acetylene.

Ammonia.

Aniline dyes.

Bleaching powder.

Breweries, distilleries and wineries.

Bronze, babbitt metal and similar alloys.

Carbide.

Carbolic, hydrochloric, picric and sulfuric acid.

Caustic soda.

Cellulose and celluloid.

Chlorine.

Coal, coke or coal tar products.

Exterminating agents.

Film.

Gas.
12 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Lacquer, shellac, turpentine, varnish or calcimine (Kalsomine).

Linoleum or oilcloth.

Matches.

Nitrating of cotton and other materials.

Phenol.

Potash.

Pyroxylin.

Rubber (natural or synthetic).

Soap, tallow, grease and lard.

Radio transmitter towers higher than fifty feet (50') above ground level.

C. Storage of:

Oil or gas in amounts of two thousand five hundred (2,500) barrels or more.

Oil or gas within three hundred feet (300') of any residential zone, school or park.

Recreational vehicles and boats.

D. Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, legally established prior to the effective date of Ordinance No. 3002 (or the property has a valid conditional use permit approved prior to the effective date of Ordinance No. 3002). Such warehouse facilities shall be subject to the rebuild provisions contained in Section 18.156.970 of this title.”
SECTION 8. Redlands Municipal Code Section 18.116.030, entitled “Permitted Uses” General Industrial (M-2) District, is hereby amended to read as follows:
“18.116.030: PERMITTED USES:

Principal permitted uses in the M-2 zone include:

A. Uses permitted in the M-1 industrial zone.

B. Contractors' yards and shops, including building, masonry, painting, concrete, electrical, plumbing, refrigeration, roofing, heating and air conditioning.

C. Electrical distribution substations, electrical transmission substations, nonnuclear electric generating stations, and public utility buildings, office, and service yards, and steam electric generating stations.

D. Food products manufacture, including such processes as cooking, roasting, refining and extraction involved in the preparation of such products as cereal, chocolate, cider, coffee, glucose, rice, flour, feed and grain, vegetable oils and yeast; but not including fish or meat products.

E. Lumberyards, lumber processing and woodworking, including planing mills, plywood, veneering, wood preserving and laminating.
13 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx F. Machine tool manufacture, including metal lathes, presses and stamping machines, and woodworking machines.

G. Machinery manufacture, including electrical, agricultural, construction, mining, air conditioning equipment, dishwashers, dryers, furnaces, heaters, stoves and washing machines.

H. Manufacture of chemicals and chemical products, except those requiring a conditional use permit.

I. Manufacture, storage, reconditioning and exchange of such items as cans, containers, boxes, barrels, bottles and bags.

J. Manufacturing and processing of the following, conducted in an enclosed building, except that any outdoor manufacturing or processing operation in this group of uses shall be subject to approval of a conditional use permit:

Abrasives.

Aircraft and aircraft accessories.

Aluminum products.

Asbestos.

Automobiles, trucks and trailers.

Automotive accessories and parts.

Boats.

Bricks.

Burial vaults and caskets.

Candles.

Canvas.

Carpets and rugs.

Cement products.

Chalk.

Clay pipe and clay products.

Composition wallboard.

Glass, but excluding blast furnaces.

Glazed tile.

Graphite and graphite products.

Hemp products.

Ink.

Jute products.

Linter.

Metal foil.

Metal products.

Missiles and missile components, excluding explosive fuels.

Motors and generators.

Paraffin products.

Plastics.

Porcelain products.
14 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Pulp goods.

Pumice.

Putty.

Railroad equipment.

Rubber products.

Sand and lime products.

Sisal products.

Starch and dextrine.

Steel products.

Stone products.

Structural steel products.

Tile.

Wire and wire products.

K. Metal fabricating, heat treating, pickling and stamping.

L. Storage facilities, except those requiring a conditional use permit.

M. Warehousing, ancillary to another primary use (see Redlands Municipal Code Chapter

18.156, Article XII).

N. Warehousing, in buildings with less than 50,000 square-feet in gross floor area, and not more than five truck docks or dock high loading doors.

O. Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, legally established prior to the effective date of Ordinance No. 3002 (or the property has a valid land use entitlement approved prior to the effective date of Ordinance No. 3002). Such warehouse facilities shall be subject to the rebuild provisions contained in Section

18.156.970 of this title.”
SECTION 9. Redlands Municipal Code Section 18.116.050, entitled “Conditional Uses” General Industrial (M-2) District, is hereby amended to read as follows:
“In the M-2 zone, the following uses may be permitted subject to approval of a conditional use permit:

A. Airports, heliports and landing strips.

B. Animal, food or beverage processing of the following kinds:

Breweries, distilleries and wineries.

Meat or fish products packing, canning or processing.

Vinegar, yeast and sauerkraut.

C. Asphalt, concrete and earth products activities of the following kinds:
15 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Asphalt batching plants.

Concrete mixing and batching plants.

Rock crushing plants and aggregate dryers.

Sandblasting plants.

Butane service and filling stations.

D. Commercial and service type uses which the commission, after study and deliberation, finds are needed to serve the M-2 district, and which will not interfere with the orderly development of the industrial area, and which will be compatible with industrial uses.

E. Distilling of:

Alcohol.

Bones.

Coal.

Coal tar.

Coke.

Wood.

Heavy metal works of the following kinds:

Blast furnaces.

Boiler works.

Drop forge industries.

Drop hammers.

Forges, foundries and forging works.

Metal and metal ore reduction or smelting.

Rolling mills.

F. Manufacturing of:

Acetylene.

Ammonia.

Aniline dyes.

Asphalt or asphalt products.

Bleaching powder.

Bronze, babbitt metal and similar alloys.

Carbide.

Carbolic, hydrochloric, picric and sulfuric acid.

Caustic soda.

Cellophane.

Cellulose and celluloid.

Cement, lime, gypsum or plaster of Paris.

Charcoal, lampblack or fuel briquettes.

Chlorine.

Coal, coke or coal tar products.

Creosote.

Exterminating agents.

Fertilizer.

Film.
16 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx Gas.

Lacquer, shellac, turpentine, varnish or calcimine (kalsomine).

Linoleum or oilcloth.

Matches.

Nitrating of cotton and other materials.

Phenol.

Potash.

Pyroxylin.

Rubber (natural or synthetic).

Soap, tallow, grease and lard.

Radio transmitter towers, higher than fifty feet (50') above ground level.

G. Refining of:

Fats and oils.

Metals and metal ores.

Petroleum and petroleum products.

Sugar.

Salvage, wrecking and disposal activities of the following kind:

Automobile wrecking and salvage.

Building wrecking and salvage.

Dumps, including garbage and trash disposal.

Industrial waste material salvage, waste metal, rag, clothing, glass and paper salvage operations.

Sewer farm or sewage disposal plants.

H. Storage of:

Automobiles and other vehicles purchased for wrecking operations.

Fertilizer or manure.

House movers' equipment and buildings moved from other locations.

Oil or gas in amounts of two thousand five hundred (2,500) barrels or more.

Oil or gas within three hundred feet (300') of any residential zone, school or park.

Sand, gravel, rock or decomposed granite in amounts of two thousand (2,000) tons or more.

Used building materials or secondhand buildings.”
SECTION 10. Chapter 18.156 of the Redlands Municipal Code, entitled “Development Provisions for Specific Uses,” Article XII entitled “Warehouses and Logistics Distribution Centers,” is hereby amended as follows:
“ARTICLE XII. Warehouses and Logistics Distribution Centers

18.156.900: DEFINITIONS:
17 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx ALTERATION: Any construction or renovation to an existing structure other than repair or addition. A change, addition or modification in construction, change in occupancy or use, or structural repair to an existing building or facility. Alterations include, but are not limited to, remodeling, renovation, rehabilitation, reconstruction, historic restoration, resurfacing of interior circulation paths or vehicular ways, changes or rearrangement of the structural parts or elements, and changes or rearrangement in the plan
configuration of walls and full-height partitions. Normal maintenance, reroofing, painting or wallpapering, or changes to mechanical and electrical systems are not alterations unless they affect the usability of the building or facility.

REPAIR: Repair has the same meaning as defined in the California Building Code (Chapter 2, as amended, California Building Code).

WAREHOUSE: Warehouse/distribution facilities primarily used for the storage and/or consolidation of manufactured goods before their distribution to retail locations or other warehouses.

Warehouse/distribution centers are fifty thousand (50,000) square-feet or more in gross floor area or contain six (6) or more truck docks or dock high loading doors. They are characterized by dock high loading doors and could be on opposing sides of the building (cross dock facility); may include grade-level loading doors; interior clear heights a minimum of 28 to 36 feet to ceiling for the warehousing floor area; significant movement and storage of products, materials, or equipment; may include receiving, sorting, re-packaging, and/or re-distribution; truck activities frequently outside of the peak hour of the adjacent street system; and need freeway access. This definition excludes facilities owned and operated by a government agency or any public or private utilities. Warehousing and distribution facilities include, but are not limited to, the following types of uses:

A. Warehousing distribution/high cube distribution centers.

B. Parcel delivery terminals or truck terminals.

C. Parcel sorting and distribution facilities.

D. Package allocation for delivery drivers or independent delivery contractors.

E. Parcel hub or high cube fulfillment center.

F. Freight yards or forwarding terminals.

G. Moving agencies.

H. Shipping/receiving yards.

WAREHOUSING,
ANCILLARY:

The use of a portion of a building for the related storage of goods of any type by one or two businesses and used for the sale or distribution of those goods directly to their customers. A manufacturing, assembly, service commercial, or other type of commercial or industrial use (i.e., primary use) manufactures 18 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx and/or stores and distributes the goods or components that are produced or contained on-site, and therefore includes the related storage of those goods or items. Ancillary storage or warehousing is subordinate and incidental to the primary land use (e.g., manufacturing, assembly, service commercial, or other type of primary commercial or industrial use). Ancillary storage or warehousing may include ground level loading doors on one or more sides of the building, or not more than five (5) dock high loading doors on one side of the building only.

18.156.910: APPLICABILITY:

The provisions of this section shall apply to the following types of development projects:

A. New warehouse development projects that meet one of the following criteria (note: excludes government agency facilities and public or private utility facilities).

1. Gross floor area of fifty thousand (50,000) square-feet or more; or,

2. A structure with six (6) or more truck docks or dock high loading doors (does not include grade-level loading doors or loading spaces).

B. Required Compliance. No new warehouse development project shall be constructed, no redevelopment or reconstruction of a property for warehouse use, and no existing warehouse shall be moved, altered, or enlarged, except in accordance with the applicable development standards of this Article and/or applicable State law. If any provisions of this article conflict or are inconsistent with applicable State law, then State law shall prevail.

C. A property with a valid unexpired land use entitlement for a new warehouse or logistics distribution facility that has not yet been constructed or established as of the effective date of Ordinance No. 3002 shall have the same land use rights as if the structure had been existing on the effective date of Ordinance No. 3002.

18.156.920: SITE LOCATION REQUIREMENT:

A. No warehouses shall be located on a project site more than one mile (5,280 feet) from a freeway entrance/exit ramp to the Interstate Freeway System (Interstate 10 and Interstate 210). For purposes of this requirement, the linear distance shall be measured as a radius from a freeway ramp to any part of the subject property.

B. Assemblage of Parcels Prohibited: No warehouse development project, or redevelopment or reconstruction of a property for warehouse use, may assemble or merge additional properties for the purpose of developing, enlarging, expanding, or intensifying the use of an existing warehouse or logistics distribution facility.
19 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx

18.156.930: SCREENING AND BUFFERING REQUIREMENTS:

A. Warehouse developments shall provide a solid decorative wall(s) of at least ten feet (10’) in height when abutting any of the following land uses: any residence including private homes, condominiums, apartments, and living quarters; schools and preschools; daycare centers and in-home daycares; hospitals; long-term care facilities; retirement and nursing homes; community centers; places of worship; parks (excluding trails); and dormitories. The exterior treatment of the wall(s) shall be decorative or painted.

B. Unless physically impossible, loading docks and truck entries shall be oriented away from abutting sensitive receptors. To the greatest extent feasible, loading docks, truck entries, and truck drive aisles shall be located away from nearby sensitive receptors. In making feasibility decisions, the City must comply with existing laws and regulations and balance public safety and the site development’s potential impacts to nearby sensitive receptors. Therefore, loading docks, truck entries, and drive aisles may be located nearby sensitive receptors at the discretion of the Planning Commission, but any such site design shall include measures designed to minimize overall impacts to nearby sensitive receptors.

C. Trees shall be used as part of the solid screen buffering treatment for any adjacent residential properties or properties with sensitive receptors. Trees used for this purpose shall be evergreen, drought-tolerant, minimum 36-inch box size, and shall be spaced no greater than 40-feet on center. Palm trees shall not be used for screening purposes. The property owner and any successors in interest shall maintain these trees for the duration of ownership ensuring any unhealthy or dead trees are replaced timely as needed.

D. Trees shall be installed in automobile (passenger vehicle) parking areas to provide at least thirty five percent (35%) shade cover of parking areas within fifteen (15) years. This requirement is in addition to the applicable standard design requirements for parking lot landscape and related improvements. Trees shall be planted that are capable of implementing this requirement.

18.156.940: TRAFFIC PATTERNS AND SIGN REQUIREMENTS:

A. Applicants for entitlements shall prepare and submit a Truck Routing Plan demonstrating the most direct route(s) to and from the Interstate Freeway System based on the city’s latest Truck Route Map. Routes to or from freeway ramps shall not pass through any residential zones or districts.

B. A traffic impact assessment (TIA) report shall be prepared to evaluate a proposed warehouse project’s compliance with the City’s Measure U traffic system requirements, and shall include an evaluation of the City’s streets and Truck Routes that provide vehicular access to the Interstate Freeway System, including, but not limited to: existing right-of-way width; roadway capacity to handle the proposed quantity of truck trips to be generated by the proposed use (including 20 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx any road widening that may be necessary); roadway design and improvements to handle the weight and frequency of proposed truck trips; intersection operations to freeway ramps and level of service analysis to include the proposed truck trips; truck turn radii at intersections; and other operational elements of the City’s street network to serve the proposed use. The TIA may be prepared by a qualified consultant selected and directed by the City (and all consultant costs to be reimbursed by the applicant), or by a qualified traffic consultant selected by the applicant (and all work subject to the direction, review, and approval by the City).

C. Entry gates into the loading dock/truck court area with more than 20 loading docks shall be positioned after a minimum of 140 feet of total available stacking depth inside the property line (or alternatively, if 140 feet of depth is not feasible due to site constraints, then provide 70 feet of available stacking depth for two trucks side-by-side as an alternative design). The stacking distance shall be increased by 70 feet for every 20 loading docks beyond 50 docks. Queuing, or circling of vehicles, on public streets immediately pre- or post-entry to an industrial commerce facility is strictly prohibited unless queuing occurs in a deceleration lane or right turn lane exclusively serving the facility.

D. Prior to entitlement approval, applicants shall submit to the City, and obtain approval of, all turning templates to verify adequate truck turning movements at entrance and exit driveways as well as street intersections adjacent to industrial buildings. Unless not physically possible, truck entries shall be located on Collector streets or streets of a higher commercial classification, and vehicle entries shall be designed to prevent truck access on streets that are not Collector Streets (or streets of a higher commercial classification), including but not limited to by limiting the width of vehicle entries.

E. Anti-idling signs indicating a five (5) minute restriction on engine idling for diesel trucks shall be posted at warehouses and industrial commerce facilities along entrances to the site and within the dock areas and shall be strictly enforced by the facility operator (13 CCR § 2480).

F. Signs shall be installed at all truck exit driveways directing truck drivers to the truck route as indicated in the Truck Routing Plan to be routed to the Interstate Freeway System.

G. Signs and drive aisle pavement markings shall clearly identify the onsite circulation pattern to minimize unnecessary on-site vehicular travel.

H. Facility operators shall post signs in prominent locations inside and outside of the building indicating that off-site parking for any Medium Heavy-Duty trucks, Heavy Heavy-Duty trucks, truck trailers or cabs, and other operations-related vehicles is strictly prohibited. City may require facility operator to post signs on adjacent and nearby surface or residential streets indicating that off-site truck parking is prohibited by City ordinance.
21 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx I. All signs under this Section shall be legible, durable, and weather-proof.

18.156.950: SUSTAINABLE ENERGY:

A. A minimum of ninety percent (90%) of the on-site motorized operational equipment shall be zero emission (ZE).

B. All warehouse building roofs shall install photovoltaic (PV) solar collector system or other form of on-site renewable energy, provided such renewable energy source is recognized by the State of California as a renewable resource under the Renewable Portfolio Standard Program. The renewable energy system shall be metered separately from the nonrenewable metered power usage of the building (if not in conflict with other applicable regulations). The renewable energy system shall be built to generate an amount of electricity sufficient to meet the following criteria:

1. Annualized building demand based on the approved use or, if no use is proposed, then the demand for the most energy intensive use that could occupy the building; and

2. Annualized demand required to charge fully electric vehicles and trucks, assuming that all vehicles and trucks to the site are fully electric; and

3. A reasonable rate of efficiency loss over ten years.

Note: Electricity demand that exceeds the generation capacity of the on-site renewable energy system may be obtained from off-site energy sources or suppliers.

C. The warehouse building’s rooftop that is not covered with solar panels or other utilities shall be constructed with light colored roofing material with a solar reflective index (SRI) in accordance with current California Energy Code regulations. This material shall be the minimum solar reflective rating of the roof material for the life of the building.

D. The on-site passenger vehicle parking shall include electric vehicle (EV) ready parking spaces in accordance with current requirements of the California Building Code, and at least fifty percent (50%) of the required EV parking spaces shall be equipped with working Level 2 Quick Charge EV charging stations installed and operational, prior to building occupancy. Signage shall be installed indicating EV charging stations and specifying that spaces are reserved for clean air/EV vehicles. Unless superior technology is developed that would replace the EV charging units, facility operator and any successors in interest shall be responsible for maintaining the EV charging stations in working order for the life of the facility.
22 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx E. Unless the owner of the facility records a covenant on the title of the underlying property ensuring that the property cannot be used to provide chilled, cooled, or freezer warehouse space, a conduit shall be installed during construction of the building shell from the electrical room to all (100%) of the loading dock doors that have potential to serve the refrigerated space. When tenant improvement building permits are issued for any refrigerated warehouse space, electric plug-in units shall be installed at every dock door servicing the refrigerated space to allow transport refrigeration units (TRUs) to plug in. Truck operators with TRUs shall be required to utilize electric plug-in units when at loading docks.

18.156.960: OPERATION AND CONSTRUCTION:

A. Cool surface treatments shall be added to all drive aisles and parking areas, or such areas shall be constructed with a solar-reflective cool pavement such as concrete. Solar collectors may be installed on support structures that provide shade over parking areas to achieve minimum requirements.

B. To ensure that warehouse electrical rooms are sufficiently sized to accommodate the potential need for additional electrical panels, either a secondary electrical room shall be provided in the building, or the primary electrical room shall be sized twenty-five percent (25%) larger than is required to satisfy the service requirements of the building or the electrical gear shall be installed with the initial construction with 25% excess demand capacity.

C. All exterior light fixtures (including but not limited to parking lot lighting, wall fixtures, roof fixtures, light poles, etc.) visible from public right-of-way or abutting properties shall have shielding affixed to contain illumination within the subject property and prevent light trespass and glare overspill.

D. The facility operator shall be required to perform regular maintenance of building structures, landscaping, and paved surfaces to ensure good physical condition and appearance.

F. Additional operating conditions may be enacted for an individual Warehouse project pursuant to a Conditional Use Permit (Redlands Municipal Code Chapter

18.192) for the purpose of avoiding or reducing potential off-site nuisance effects of the warehouse facility (including but not limited to traffic, parking, noise, vibration, air quality emissions, etc.) on nearby sensitive receptors or residential districts, or to protect the public health, safety, or general welfare.” 23 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx SECTION 11. Redlands Municipal Code Chapter 18.156, Article XII entitled “Warehouses and Logistics Distribution Centers,” is hereby amended to add Section 18.156.970 as follows:
“18.156.970: REBUILDING PROVISIONS FOR EXISTING WAREHOUSES AND LOGISTICS DISTRIBUTION CENTERS:

2. The Development Services Director has determined the existing business to be a permitted or conditionally permitted use.

3. An applicable building permit(s) shall be obtained for reconstruction, if required.

4. A change in ownership or tenancy without any change in use or occupancy shall not affect any of the rebuilding rights, privileges, and responsibilities provided pursuant to this section.
24 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx

5. It shall be the property owner's responsibility to provide evidence or information to justify the establishment of rebuilding rights.

1. Building height may be increased up to the maximum height allowable within the applicable land use district (or 50 feet if no maximum is specified) to incorporate technology upgrades, energy efficiency improvements, or other justifiable economic or environmental reasons; and/or may increase the number of previously existing truck dock positions; provided the structure meets the criteria listed below. a. The subject property meets all applicable criteria in Section 18.156.970(B). b. The subject property obtains a Conditional Use Permit issued pursuant to Chapter

18.192 of this title.
c. Construction or redevelopment of a building involving additional height shall include the feasible provisions of Section 18.156.930 through 18.156.960 of this article, as determined by the Planning Commission (the location requirements of Section 18.156.920(A) shall not apply). For purposes of this article, “feasible” has the same meaning as California Code of Regulations Title 14, § 15364. d. Complete an environmental review process, if applicable, in accordance with the California Environmental Quality Act for a proposed project that will increase building height, increase the number of truck docks, or change non-refrigerated space to refrigerated space.
e. The applicant shall prepare and submit the following in conjunction with a development application for a land use entitlement:
i. Circulation studies, prepared by a traffic engineer, showing the movement of vehicular and truck traffic to and from the subject property, and to and from existing thoroughfares. Special engineering features and/or traffic regulation devices needed to facilitate or ensure safety of circulation may be required.
ii. A landscaping and tree planting plan, prepared by a landscape architect. iii. An economic feasibility report or market analysis, prepared by a qualified economist, justifying the need to increase the building height and/or increase the number of truck docks.
iv. An energy audit analysis report to identify current (baseline) conditions for the existing structure; and an energy analysis for the proposed modified facility to demonstrate compliance with the California Building Code and that there will be a demonstrated improvement to energy efficiency.” 25 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx SECTION 12. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

ADOPTED, SIGNED AND APPROVED this ___ day of ____________, 2026. _________________________________
Mario Saucedo, Mayor
ATTEST:
____________________________________
Jeanne Donaldson, City Clerk
26 I:\cmo\Ordinances\C-2. Ord. 3002 Warehouses clean.bm.09.21.2026 final.docx I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the _____ day of ___________, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Jeanne Donaldson, City Clerk
1 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx RESOLUTION NO. 8793
A RESOLUTION OF THE CITY OF REDLANDS AMENDING NONRESIDENTIAL SPECIFIC PLANS AND CONCEPT PLANS TO PROHIBIT

NEW WAREHOUSES AND LOGISTICS DISTRIBUTION USES, AS

DEFINED, IN ALL COMMERCIAL AND INDUSTRIAL DISTRICTS OF

SPECIFIC PLANS, WHILE ALLOWING FOR EXISTING WAREHOUSES

AND LOGISTICS DISTRIBUTION USES TO REMAIN AS PERMITTED OR

CONDITIONALLY PERMITTED USES SUBJECT TO NEW REBUILD
PROVISIONS CONTAINED IN REDLANDS MUNICIPAL CODE TITLE 18.

WHEREAS, the City Council of the City of Redlands has initiated Ordinance Text Amendment No. 372, in accordance with Chapter 18.204 (Amendments) of the Redlands Municipal Code, as the public necessity, convenience, or general welfare justifies such action; and WHEREAS, over the past twenty years, Redlands has experienced the construction of numerous large warehouses and logistics distribution facilities in and around the City of Redlands including the unincorporated County jurisdiction located in northwest Redlands; and WHEREAS, on September 29, 2024, the Governor of the State of California signed Assembly Bill (AB) 98 to add Section 65302.02 to, and to add Chapter 2.8 (commencing with Section 65098) to Division 1 of Title 7 of, the Government Code, and to add Sections 40458.5 and 40522.7 to the Health and Safety Code, relating to land use, and the “Warehouse Concentration Region” defined therein includes the City of Redlands among other nearby cities and counties; and WHEREAS, two major transportation corridors (Interstate 10 and Interstate/S.R. 210 freeways) serve the Southern California region and are gateways to the Interstate Highway System, and both freeways pass through the City of Redlands, which contributes to a significant quantity of heavy-truck and other vehicular traffic to pass through the City to reach destinations located outside the City of Redlands as well as within the unincorporated “donut hole” area; and WHEREAS, heavy-truck traffic that serves several million square feet of warehousing and logistics distribution uses located within the unincorporated County island area (surrounded by the City of Redlands) must pass through the City and utilize City streets on a daily basis at all hours of the day and night; and
WHEREAS, the residents and visitors of the City of Redlands may experience exposure to environmental effects (such as numbers of truck trips, vehicle miles traveled, greenhouse gas emissions affecting air quality, vehicular noise, etc.) and other externalities from such warehousing and logistics distribution uses; and
WHEREAS, in accordance with Government Code § 65854 and/or § 65090, on or about March 24, 2026, the Secretary to the Planning Commission gave notice by publication in a newspaper of general circulation of the holding of a public hearing at which Ordinance Text Amendment No. 372 would be considered by the Planning Commission; and 2 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx WHEREAS, on April 14, 2026, the Planning Commission held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 372 and related Specific Plan Amendments; and WHEREAS, in accordance with Government Code § 65854 and/or § 65090, on or about April 21, 2026, the Secretary to the Planning Commission gave notice by publication in a newspaper of general circulation of the holding of a public hearing at which Ordinance Text Amendment No. 372 would be considered by the Planning Commission; and WHEREAS, on May 12, 2026, the Planning Commission held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 372 and related Specific Plan Amendments; and WHEREAS, following the public hearing on May 12, 2026, the Planning Commission determined that Ordinance Text Amendment No. 372 would be in conformity with the 2035 General Plan, and would be consistent with goals of the General Plan for transportation, connectivity, compatibility and harmonious relationship of different land uses; and WHEREAS, on May 12, 2026, the Planning Commission recommended to the City Council that the proposed Specific Plan Amendment(s) be approved; and WHEREAS, this Resolution is exempt from environmental review in accordance with Sections 15061(b)(3), 15308, and 15378(b)(5) of the California Environmental Quality Act Guidelines; and
WHEREAS, in accordance with Government Code § 65854 and/or § 65090, the City Clerk gave notice by publication in a newspaper of general circulation of the holding of a public hearing at which the proposed Resolution would be considered by City Council; and WHEREAS, on June 16, 2026, the City Council held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, the proposed Specific Plan Amendments and continued the public hearing; and WHEREAS, on September 1, 2026, the City Council held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, the proposed Specific Plan Amendments and continued the public hearing to October 6, 2026; and WHEREAS, on October 6, 2026, the City Council held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, the proposed Specific Plan Amendments.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDLANDS RESOLVES AS FOLLOWS:

SECTION 1. Environmental Determination. The proposed Specific Plan Amendments do not require environmental review in accordance with Sections 15061(b)(3), 15308, and 15378(b)(5) of the California Environmental Quality Act Guidelines. Pursuant to Section 3 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx 15378(b)(5) of the California Environmental Quality Act (“CEQA”), this proposal 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 proposal is exempt from CEQA review because there is no possibility that the specific plan amendment(s) may have a significant effect on the environment, insofar as it would amend the lists of permitted land uses in the City of Redlands. Furthermore, even if the proposal is considered a project, the proposed specific plan amendment(s) is categorically exempt under CEQA Guidelines Section 15308, because it is clear that it will not create an environmental impact and the action will assure the maintenance, enhancement, or protection of the environment through the adoption of regulations prohibiting new large warehouses and logistics distribution facilities. Accordingly, no further environmental review is necessary.

SECTION 2. Concept Plan No. 1 (CP-1), Section III entitled “Development Standards,” subsection ‘B’ entitled “Commercial Industrial District,” Part 1 entitled “Permitted Uses” thereof, is hereby amended as follows:
“g. Other uses typically associated with light manufacturing within enclosed buildings, including but not limited to the following:
• Business, technical, trade or professional schools
• Clubs, lodges and similar organizations
• Government buildings
• Warehouses, not to exceed 50,000 square feet in any single building • Wholesale trade of most consumer items including drugs, dry goods, apparel, groceries, building materials and paper products.
• Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, legally established prior to the effective date of Ordinance No. 3002. Such warehouses or logistics distribution facilities shall be subject to the applicable provisions contained in Chapter 18.156, Article XII, of the Redlands Municipal Code.”
SECTION 3. Concept Plan No. 1 (CP-1), Section III entitled “Development Standards,” subsection ‘B’ entitled “Commercial Industrial District,” Part 2 entitled “Conditionally Permitted Uses” thereof, is hereby amended as follows:
“d. Large Warehouse-Distribution Buildings.

Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, legally established prior to the effective date of Ordinance No. 3002. Such warehouses or logistics distribution facilities shall be subject to the applicable provisions contained in Chapter 18.156, Article XII, of the Redlands Municipal Code.”
SECTION 4. Concept Plan No. 2 (CP-2), Section 3.2 entitled “Regional Industrial District,” subsection ‘A’ entitled “Permitted Uses,” Part 3 thereof is hereby amended as follows:
4 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx “3. Wholesale trade:

Wholesale trade of durable and non-durable goods to commercial, industrial and professional business uses, including motor vehicles, sporting goods, electrical appliances, hardware, machinery and equipment for industry, construction, professional and service establishments.

Warehouses and logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, legally established prior to the effective date of Ordinance No. 3002. Such warehouses or logistics distribution facilities shall be subject to the applicable provisions contained in Chapter 18.156, Article XII, of the Redlands Municipal Code.”
SECTION 5. Specific Plan No. 40 (East Valley Corridor Specific Plan), Chapter 9 titled “Commercial Industrial District,” Section EV3.0910 (Permitted Land Uses), part 7, is hereby amended as follows:
“(7) Other uses typically associated with light manufacturing within enclosed buildings, including but not limited to the following:
• Business, technical, trade, or professional schools
• Clubs, lodges, and similar organizations
• Government buildings
• Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, that were legally established prior to the effective date of Ordinance No. 3002 (or the property has a valid land use entitlement approved prior to the effective date of Ordinance No. 3002). Such warehouses or logistics distribution facilities shall be subject to the applicable provisions contained in Chapter 18.156, Article XII, of the Redlands Municipal Code.
• Warehousing, in buildings with less than 50,000 square-feet in gross floor area, and not more than five truck docks or dock high loading doors (see Chapter 18.156, Article XII, of Redlands Municipal Code Title 18).
• Warehousing, ancillary to another primary use (see Chapter 18.156, Article XII, of Redlands Municipal Code Title 18).
• Wholesale trade of most consumer items, including motor vehicles, drugs, dry goods, apparel, groceries, building materials and paper products.”
5 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx SECTION 6. Specific Plan No. 40 (East Valley Corridor Specific Plan), Chapter 10 titled “Regional Industrial,” Section EV3.1010 (Permitted Land Uses), part 4, is hereby amended as follows:
“(4) Wholesale Trade, such as:
• Warehouses or logistics distribution with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, that were legally established prior to the effective date of Ordinance No. 3002. Such warehouses or logistics distribution facilities shall be subject to the applicable provisions contained in Chapter

18.156, Article XII, of the Redlands Municipal Code.
• Warehousing, in buildings with less than 50,000 square-feet in gross floor area, and not more than five truck docks or dock high loading doors (see Chapter 18.156, Article XII, of Redlands Municipal Code Title 18).
• Wholesale trade of durable and non-durable goods to commercial, industrial and professional uses, including motor vehicles, sporting goods, electrical appliances, hardware, machinery and equipment for industry, construction, professional and service establishments.” SECTION 7. Specific Plan No. 25 (East Valley Complex), Section 3 titled “Property Development Standards,” subsection (B) titled “Office/Industrial,” part 3 (Uses Prohibited) is hereby amended as follows:
“Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, are not permitted.”
SECTION 8. Specific Plan No. 32 (Redlands Aviation Park), Section 3 titled “Property Development Standards,” subsection (B) titled “Office/Industrial District,” part 2 titled “Permitted Uses,” subsection (c) is hereby amended as follows:
“Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, are not permitted.”
SECTION 9. Specific Plan No. 33 (Centennial Commerce Park), Section 3 titled “Development Standards,” subsection (B) titled “Office/Industrial,” part 2 titled “Permitted Uses,” subsection (c) is hereby amended as follows:
“Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, are not permitted.”
6 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx SECTION 10. Specific Plan No. 42 (Redlands Research Park), Section 3 titled “Development Standards,” subsection (A) titled “Office/Industrial Land Use,” part 1 (Permitted Uses), is hereby amended as follows:
“1. Permitted Uses - No building, structure or land shall be used, and no building or structure shall be hereafter erected,structurally altered or enlarged except for the following purposes:
a. Offices, including but not limited to:

Accounting, auditing, and bookkeeping services
Administrative headquarters
Architectural, planning andengineering offices
Business associations
Corporate headquarters
Banks and finance companies
Insurance offices
Law offices
Real estate offices
Such other office uses as deemed similar to the above.
b. Research and development, including but not limited to:

Biochemical and Chemical
Metallurgical Pharmaceutical
Medical and dental
Film and photographic
Electrical and Mechanical
Optical
c. Manufacturing, including but not limited to:

Establishments primarily engaged in manufacturing the
following products:

Apparel, drapery, upholstery,millinery,
and related cloth and clothing
Furniture and fixtures, includingoffice furniture, store fixtures, blinds and shades, and shelving
Paper products, including envelopes, bags, wallpaper,
containers, pressed and molded pulp goods
Publishing, including newspapers, business forms,
typesetting, photoengraving, bookbinding, and
printing
Fabricated plastic products
Fabricated metal products
Professional and scientific goods, including measuring
instruments, clocks and watches, optical goods, surgical and medical instruments, photographic equipment,
engineering, computers, and similar equipment and
7 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx supplies
Miscellaneous manufactured goods, including jewelry,
lapidary, precious metals, toys, sporting goods, musical instruments, and similar goods.

Warehouse and distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, that were legally established prior to the effective date of Ordinance No. 3002. Such warehouses or logistics distribution facilities shall be subject to the applicable provisions contained in Chapter 18.156, Article XII, of the Redlands Municipal Code.

Warehousing, in buildings with less than 50,000 square-feet in gross floor area, and not more than five truck docks or dock high loading doors.” SECTION 11. The adopted Planned Development entitlements within the City of Redlands are hereby amended to prohibit the development or establishment of new warehouses and logistics distribution centers, as defined in Article XII of Chapter 18.156 of the Redlands Municipal Code, while allowing existing warehouses to remain as permitted or conditionally permitted uses within their respective Planned Development (PD) entitlements:
“Warehouses or logistics distribution centers with 50,000 square-feet in gross floor area or more, or having more than five truck docks or dock high loading doors, that were legally established prior to the effective date of Ordinance No. 3002. Such warehouses or logistics distribution facilities shall be subject to the applicable provisions contained in Chapter 18.156, Article XII, of the Redlands Municipal Code.” The applicable Planned Development entitlements are the following:
a. Planned Development No. 1 (PD 1);
b. Planned Development No. 3 (PD 3);
c. Planned Development No. 4 (PD 4);
d. Planned Development No. 7 (PD 7).

SECTION 12. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this resolution for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this resolution. The City Council hereby declares that it would have adopted this resolution, each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 13. Effective Date. This Resolution shall become effective on the effective date of Ordinance No. 3002.
8 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx ADOPTED, SIGNED AND APPROVED this ___ day of ______________, 2026. ________________________________
Mario Saucedo, Mayor
ATTEST:
____________________________________
Jeanne Donaldson, City Clerk
9 I:\cmo\Ordinances\D. Resolution No. 8793 Warehouses.bm.09.21.2026.docx I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Resolution was duly adopted by the City Council at the regular meeting thereof, held on the ___ day of ________________, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Jeanne Donaldson, City Clerk
City Council AGENDA ITEM NO. L1.

DATE: October 6, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the First Amendment to the Public Works Contract with B-81 Paving Inc. for On-Call Pavement Repair Services for Water Utilities to increase the not to exceed amount from $600,000 to $900,000 (Municipal Utilities and Engineering Director Heredia) MOTION:

If the City Council determines that staff recommendation is appropriate, the following motion is provided:

I move to approve the First Amendment to the Public Works Contract with B-81 Paving, Inc., for On-Call Pavement Repair Services for Water Utilities to increase the not to exceed amount of $600,000 to $900,000.

RECOMMENDATION:

Staff recommends that the City Council approve the First Amendment to the Public Works Contract with B-81 Paving, Inc., for On-Call Pavement Repair Services for Water Utilities to increase the not to exceed amount of $600,000 to $900,000.

DISCUSSION:

The Municipal Utilities and Engineering Department (MUED) performs approximately 250 water utility repairs annually throughout the City’s water service area, including repairs to water mains, service lines, valves, blow-offs, and other associated infrastructure. These repairs typically require the removal of existing asphalt concrete (AC) pavement and excavation of the roadway to access the affected utility facilities. After the utility repair, excavated areas are temporarily restored with aggregate base and cold-mix asphalt pending permanent pavement restoration with hot-mix asphalt (HMA). Historically, contractors have performed permanent pavement restoration on an asneeded basis through individual work requests issued by MUED staff.

On July 21, 2026, the City Council approved a Public Works Contract with B-81 Paving, Inc., in an amount not to exceed $600,000 for Fiscal Years 2026/27 and 2027/28 to provide permanent pavement restoration associated with water utility repairs throughout the City and determined the Project to be exempt from environmental review pursuant to Section 15301 of the State's Guidelines implementing the California Environmental Quality Act.

The Contract allows the Water Division to promptly restore roadway surfaces following emergency and routine water system repairs, including main line breaks, service line failures, valve and appurtenance repairs, and other utility-related excavations. Since the Contract was awarded, the Water Division has experienced an increased volume of water main and associated infrastructure repairs throughout the City's water service area, resulting in additional pavement restoration requirements beyond the level initially anticipated. In addition to addressing these recent repairs, the contract continues to be utilized to complete outstanding pavement restoration resulting from prior water infrastructure failures, utility improvements, and associated trenching activities.

Additional funding is therefore necessary to maintain continuity of pavement restoration services, minimize the duration of temporary roadway repairs, and ensure that disturbed roadway surfaces are restored in accordance with City standards. Based on current repair activity, anticipated ongoing water system maintenance needs, and the remaining Contract term, staff anticipates that the requested additional funding will provide sufficient capacity for the Water Division to address pavement restoration requirements through the end of the Contract period.

ALTERNATIVES:

The City Council may choose not to approve the First Amendment and provide alternative direction to staff.

STRATEGIC PLAN:

N/A
SUBMITTED BY:

Monica Heredia, Municipal Utilities and Engineering Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Danielle Garcia, Assistant City Manager
Kurt Wilson, Assistant City Manager
Goutam K. Dobey, City Engineer
James Garland, Finance Director
PREPARED BY:

Paul Mariscal, Water Utility Manager

FISCAL IMPACT
Fiscal Year: FY 2026/27 and FY 2027/28
Revenue Generating: No
Budgeted Y/N: Yes
Account No.: 501900
Additional Appropriation Required: No
Discussion:

There is no additional fiscal impact associated with this action. Funding for these services is included in the FY2026/27 and FY 2027/28 Water Service Fund budgets.

Attachments
A_B-81_Paving_Inc_1st_Amendment.pdf
B_B-81_Executed_Contract_For_Reference_Only.pdf
1 I:\cmo\Agreements\A. B-81 Paving Inc. 1st Amendment.bm.09.22.2026.Fy2627-56.docx

FIRST AMENDMENT TO PUBLIC WORKS CONSTRUCTION CONTRACT
This first amendment (“First Amendment”) to the Public Works Construction Contract for On-Call Pavement Repair Services for Water Utilities dated July 21, 2026 (“Contract”), by and between the City of Redlands, a municipal corporation and a general law city (hereinafter “City”), and B-81 Paving Inc, a California Corporation (hereinafter “Contractor”), is made and entered into this 6th day of October, 2026.

RECITALS
WHEREAS, it is the desire of the City and Contractor to amend their existing Contract, specifically to amend the contract sum, increasing the total not to exceed the contract amount to Nine Hundred Thousand dollars ($900,000).

NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledged, City and Contractor agree as follows:

AGREEMENT
Section 1. Contract Sum, as set forth in Section 2 of the Contract, is hereby amended to read as follows:
“2. CONTRACT SUM: City shall pay Contractor the sum not to exceed Four Hundred and Fifty Thousand dollars ($450,000.00) for fiscal year 2026/27; and the sum not to exceed Four Hundred and FiftyThousand dollars ($450,000.00) for fiscal year 2027/28; totaling an amount not to exceed Nine Hundred Thousand dollars ($900,000.00) as consideration for its performance of the Work in accordance with the terms and conditions set forth in the Contract Documents.

Pursuant to Public Contract Code Section 22300, Contractor has the option to deposit securities with an escrow agent as a substitute for retention of earnings required to be withheld by City pursuant to an escrow agreement as set forth in Public Contract Code section 22300.” Section 2. All other provisions of the Agreement shall remain unchanged by this First Amendment and in effect.

IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective as of the 6th day of October, 2026.

CITY OF REDLANDS B-81 PAVING INC
________________________________ By: ________________________________ Mario Saucedo, Mayor Adalberto Bedolla, President
ATTEST:
__________________________________
Jeanne Donaldson, City Clerk

City Council AGENDA ITEM NO. L2.

DATE: October 6, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of an agreement with Three Peaks Corp. for the crushing of concrete stockpile for a three-year term in a total amount not to exceed $300,000 and determination that the project is exempt from environmental review pursuant to Section 15301 of the State's Guidelines implementing the California Environmental Quality Act (Facilities and Community Services Department Director Crocker)
MOTION:

If the City Council determines that staff's recommendation is appropriate, the following motions are provided:

1. I move to determine that approval of the agreement with Three Peaks Corp. for crushing of concrete stockpile at the California Street Landfill is categorically exempt from environmental review pursuant to Section 15301 of the state's Guidelines implementing the California Environmental Quality Act; and

2. I move to approve an agreement with Three Peaks Corp. for crushing the concrete stockpile at the California Street Landfill for a three-year term in a total amount not to exceed $300,000.

RECOMMENDATION:

Staff recommends that City Council determine that approval of the agreement with Three Peaks Corp. for crushing of concrete stockpile at the California Street Landfill is categorically exempt from environmental review in accordance with California Environmental Quality Act Guidelines Section 15301. Staff further recommends that the City Council approve an agreement with Three Peaks Corp. for crushing the concrete stockpile at the California Street Landfill for a three-year term in a total amount not to exceed $300,000.

DISCUSSION:

The City of Redlands Facilities and Community Services Department Solid Waste Division manages the daily operations at the California Street Landfill located at 2151 Nevada Street. The landfill receives material from residential and commercial customers for various construction activities throughout the City that generate concrete waste. Landfill operations include segregating, processing, crushing, and the stockpiling of concrete for the purpose of diverting concrete debris from the City’s landfill. This process conserves landfill air space and provides recycled material for the use as an aggregate base for onsite improvements performed by City staff. In addition, the crushing and diversion of this material is a regulatory requirement of CalRecycle. Crushing services are performed periodically as stockpiles accumulate to a level that makes processing operationally efficient.

In accordance with the City’s procurement policy, staff issued a Request for Bid (RFB) for as-needed crushing of concrete stockpiles at the California Street Landfill. On June 23, 2026, the City Clerk’s office received and opened two (2) bids. Staff evaluated the bids for conformance with the RFB specifications and the City's purchasing requirements. Three Peaks Corp. met all bidding requirements and purchasing guidelines and was deemed the lowest responsive and responsible bidder.

Staff recommends that the City Council approve an agreement with Three Peaks Corp. for a three-year term and a total amount not to exceed $300,000. The RFB was structured on an as-needed basis and the quantities included in the price sheet are not guaranteed quantities. The $95,300 bid reflects unit pricing for an anticipated crushing operation. Actual work will be ordered on an as-needed basis depending upon the quantity of accumulated material during the three-year contract term. Accordingly, the proposed agreement establishes a total not to exceed amount of $300,000 to accommodate the City's anticipated as-needed crushing services over the three-year term.

VENDOR NAME BID AMOUNT
Three Peaks Corp. $95,300
American International Environmental Inc. $98,795
The proposed project is categorically exempt from the requirements of the California Environmental Quality Act’s guidelines pursuant to Section 15301. The section pertains to the normal operations of existing facilities, and the proposed project is consistent with this exemption as the proposed activity does not increase the existing operational capacity or expand the use of the landfill facilities.

ALTERNATIVES:

The City Council may choose not to enter into the proposed agreement; however, that may result in the inability to eliminate the stockpile of accumulated concrete debris and place the city in violation of the California Street Landfill's operating permit.

STRATEGIC PLAN:

Supports Priority D- Sustainability.

SUBMITTED BY:

Tabitha Crocker, Facilities & Community Services Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Danielle Garcia, Assistant City Manager
Kurt Wilson, Assistant City Manager
Dana Abramovitz-Daniel, Procurement Manager
James Garland, Finance Director
PREPARED BY:

Nathalie Ayala, Administrative Assistant

FISCAL IMPACT
Fiscal Year: FY 2026-27
Revenue Generating: No
Amount: $300,000
Budgeted Y/N: Y
Account No.: 511900-6710
Additional Appropriation Required: No
Discussion: Sufficient funding for this agreement is included in the Solid Waste Division's budget for Fiscal Year 2026-27 as approved by the City Council.

Attachments
Agreement_w_Three_Peaks_Corp.pdf
BID_Report_-_As-Needed_Crushing_of_Concrete_Stockpile.pdf NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 1 AGREEMENT TO PERFORM NON-PROFESSIONAL SERVICES

FOR IMPROVEMENT TO PUBLIC BUILDINGS AND GROUNDS
This agreement for the provision of as-needed crushing of concrete stockpile at the California Street Landfill (“Agreement”) is made and entered in this 6th day of October, 2026 (“Effective Date”), by and between the City of Redlands, a municipal corporation (“City”) and Three Peaks Corp., a California corporation (“Contractor”). City and Contractor are sometimes individually referred to herein as a “Party” and, together, as the “Parties.” In consideration of the mutual promises contained herein, City and Contractor agree as follows:

ARTICLE 1 – ENGAGEMENT OF CONTRACTOR

1.1 City hereby engages Contractor to perform as-needed crushing of concrete stockpile at the California Street Landfill services for City (the “Services”). The Services that Contractor shall perform are more particularly described in Exhibit “A,” titled “Scope of Services,” which is attached hereto and incorporated herein by this reference.

1.2 The Services shall be performed by Contractor in a professional manner, and Contractor represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional Contractors in the industry providing like and similar types of Services.

ARTICLE 2 – RESPONSIBILITIES OF CONTRACTOR

2.1 Contractor shall comply with all applicable federal, state and local laws and regulations in the performance of the Services including, but not limited, to all applicable Labor Code and prevailing wage laws and non-discrimination laws, including the Americans with Disabilities Act. Pursuant to Labor Code section 1773.2, copies of the prevailing rates of per diem wages as determined by the Director of the California Department of Industrial Relations for each craft, classification or type of worker needed to undertake the Services are on file at City’s Municipal Utilities and Engineering Department, located at the Civic Center, 35 Cajon Street, Suite 15A (Mailing: P.O. Box 3005), Redlands, California 92373.

2.2 Contractor acknowledges that if it violates the Labor Code provisions relating to prevailing wages that City may enforce such provisions by withholding payments to Contractor or its subcontractors pursuant to Labor Code section 1771.6.

2.3 If Contractor executes an agreement with a subcontractor to perform any portion of the Services, Contractor shall comply with Labor Code sections 1775 and 1777.7, and shall provide the subcontractor with copies of the provisions of Labor Code sections 1771, 1775, 1776, 1777.5, 1813 and 1815. Contractor acknowledges that the statutory provisions establishing penalties for failure to comply with state wage and hour laws and to pay prevailing wages may be enforced by City pursuant to Labor Code sections 1775 and 1813.

2.4 Contractor and its subcontractors shall comply with the provisions of Labor Code section 1776 regarding payroll records maintenance, certifications, retention and inspection.

NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 2 2.5 Contractor acknowledges that eight (8) hours constitutes a legal day’s work pursuant to Labor Code section 1810.

2.6 Contractor shall comply with the provisions of Labor Code section 1777.5 as to apprenticeships, and Labor Code sections 1771, 1775, 1776, 1777.5, 1813 and 1815.

2.7 Pursuant to Public Contract Code section 7103.5(b), Contractor offers and agrees to assign to City all rights, title and interest in and to all causes of action it may have under section 4 of the Clayton Act (15 U.S.C. section 15) or under the Cartwright Act (Chapter 2 (commencing with section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, goods or materials pursuant to this Agreement.

ARTICLE 3 – RESPONSIBILITIES OF CITY

3.1 City shall make available to Contractor information in its possession that may reasonably assist Contractor in performing the Services.

3.2 City designates Tabitha Crocker, Facilities and Community Services Director, as City’s representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to performance of the Services.

ARTICLE 4 – PERFORMANCE OF SERVICES

4.1 The Services shall commence as of the Effective Date of this Agreement. Contractor shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit “A,” which is attached hereto and incorporated herein by this reference.

4.2 The term of this Agreement shall be for a period of three (3) years commencing as of the Effective Date, unless terminated earlier as provided herein.

4.3 Contractor shall furnish a labor and material bond in the form attached hereto as Exhibit “B,” which is attached hereto and incorporated herein by this reference, in an amount equal to one hundred percent (100%) of the total compensation to be paid to Contractor pursuant to this Agreement.

ARTICLE 5 – PAYMENTS TO CONTRACTOR

5.1 Total compensation for Contractor’s performance of the Services shall not exceed the amount of Three Hundred Thousand Dollars ($300,000.00). City shall pay Contractor on a time and materials basis up to the not to exceed amount in accordance with Exhibit “C,” titled “Price Sheet,” which is attached hereto and incorporated herein by reference.

5.2 Contractor shall submit monthly invoices to City describing the Services performed during the preceding month. Contractor’s invoices shall include a brief description of the NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 3 Services performed, the dates the Services were performed, the number of hours spent and by whom. City shall pay Contractor no later than thirty (30) days after receipt and approval by City of Contractor’s invoice.

5.3 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic mail transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section:

CITY: CONTRACTOR:

City Clerk Erik Simmons, President
City of Redlands Three Peaks Corp.
35 Cajon Street P.O. Box 101
P.O. Box 3005 (mailing) Calimesa, CA 92320
Redlands, CA 92373 [email protected]
[email protected] (909) 795-1690
(909) 798-7531
ARTICLE 6 – INSURANCE AND INDEMNIFICATION

6.1 The following insurance coverage required by this Agreement shall be maintained by Contractor for the duration of its performance of the Services. Contractor shall not perform any Services unless and until the required insurance listed below is obtained by Contractor. Contractor shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City.

A. Workers’ Compensation and Employer’s Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Contractor is self-insured or exempt from the workers’ compensation laws of the State of California. Contractor shall execute and provide City with Exhibit “D,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.

B. Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City.

NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 4 C. Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Contractor owned vehicles used in connection with Contractor’s provision of the Services, hired and non-owned vehicles, and employee non-ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City.

6.2 Contractor shall defend, indemnify, and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses and liability, including attorneys’ fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Contractor, or its officers, employees and agents in performing the Services.

ARTICLE 7 – CONFLICTS OF INTEREST

7.1 Contractor covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Contractor’s Services. Contractor further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement.

7.2 Contractor agrees it is not a designated employee within the meaning of the Political Reform Act because Contractor:

A. Does not make a governmental decision whether to:
(i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof.

B. Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City’s Conflict of Interest Code under Government Code section 87302.

7.3 In the event City determines that Contractor must disclose its financial interests, Contractor shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk’s office pursuant to the written instructions provided by the City Clerk.

NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 5 ARTICLE 8 – GENERAL CONSIDERATIONS

8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys’ fees, including fees for the use of in-house counsel by a Party.

8.2 Contractor shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, results in City’s immediate termination of this Agreement.

8.3 Contractor is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any of its agents shall have control over the conduct of Contractor or Contractor’s employees, except as herein set forth. Contractor shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Contractor are for its account only, and in no event shall Contractor or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Contractor have any authority, express or implied, to bind City to any obligation.

8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Contractor of City’s intent to terminate. If this Agreement is terminated by City, an adjustment to Contractor’s compensation shall be made, but (i) no amount shall be allowed for anticipated profit or unperformed Services, and (ii) any payment due Contractor at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Contractor. Upon receipt of a termination notice, Contractor shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Contractor in performing the Services. Contractor shall be compensated on a pro-rata basis for Services completed up to the date of termination.

8.5 Contractor shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Contractor.

8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, any NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 6 amendment to this Agreement shall be in writing, approved by City and signed by City and Contractor.

8.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California.

8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement.

IN WITNESS WHEREOF, duly authorized representatives of City and Contractor have signed in confirmation of this Agreement.

CITY OF REDLANDS THREE PEAKS CORP.

By: ___________________________ By: ___________________________ Mario Saucedo, Mayor Erik Simmons, President
ATTEST:
___________________________
Jeanne Donaldson, City Clerk
NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 7 EXHIBIT "A"

SCOPE OF SERVICES
Screening of Concrete/Dirt Stockpile, Concrete Crushing and Stockpiling Set up equipment and processing/crushing operation shall be coordinated with the Landfill Manager. The project shall be set up or operated in a location where it shall not interfere with daily operations of the Landfill.

Mobilization of Equipment
Mobilize & demobilize appropriate equipment to screen the existing stockpile of concrete/dirt into various sizes and to crush larger pieces into ¾ inches. The Landfill operating hours for moving equipment in and out are typically 6:00 a.m. to 2:30 p.m. Mobilization/demobilization can take place outside of the normal working hours, including Saturday, provided appropriate arrangements are made in advance with the Landfill Manager.

Concrete Stockpile Screening
Current stockpile is heterogenous and contains estimated 35% to 45% dirt in and a wide variety of concrete chunk sizes with and without reinforcement materials that are recovered shall be managed by the City of Redlands Landfill staff.

Contractor, upon examination of the current stockpile, will be able to identify the most effective means of processing the stockpile. Explosives and blasting are not permitted in the performance of the pre-processing work. Work shall comply with the Landfill’s Storm Water Pollution Prevention Plan.

The Contractor shall ensure the work area affected by the stockpile screening will not allow ponding of water.

Concrete Crushing
Concrete pieces regardless of size are to be crushed. Concrete is to be crushed to produce one size of material for use in landfill road building. The Landfill desires material that is the following size:
- ¾ inches
The Landfill will accept crushed, recycled clean hard fill (as defined by OAC 3745-400-05 (A) (NOT INCLUDING ASPHAULT CONCRETE) for use as road building material. The clean, hard fill is to be reasonably free of protruding reinforcing material (i.e. rebar) that if placed in a roadway intended for landfill refuse truck and support vehicle traffic would represent a potential risk for tire puncture, undercarriage or hydraulic line damage, fuel tank compromise, etc. The Landfill reserves the right to reject any material which in its opinion could present such a risk.

Removal of any rejected material from the landfill and the appropriate handling/disposition of such materials shall be at the sole expense of the Contractor.

NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 8 EXHIBIT "B"

LABOR AND MATERIAL BOND
Whereas, the City of Redlands, State of California, and Three Peaks Corp. (hereinafter designated as “Principal”) have entered into an agreement (the “Agreement”) whereby Principal agrees to set up of equipment and the as-needed processing/crushing operation (the “Work”), which said agreement, dated October 6, 2026, and titled as “Agreement to Perform NonProfessional Services for Improvement to Public Builds and Grounds,” is hereby referred to and made a part hereof; and
Whereas, under the terms of the Agreement, Principal is required before commencing the performance of the Work, to file a good and sufficient Labor and Material bond with the City of Redlands to secure the claims to which reference is made in Title 3 (commencing with Section 9550) of Part 6 of Division 4 of the Civil Code of the State of California.

Now, therefore, said Principal and the undersigned as corporate surety, are held firmly bound unto the City and all contractors, subcontractors, laborers, material men and other persons employed in the performance of the Agreement and referred to in the aforesaid Code of Civil Procedure in the sum of Three Hundred Thousand Dollars ($300,000.00) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by the City in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this bond shall insure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 3 (commencing with Section 9550) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition.
[Signatures on next page]
NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 9 In witness whereof, this instrument has been duly executed by the Principal and surety above named, on _______________________, 2026.
(SEAL) (SEAL)
(Contractor) (Surety)
By:
(Signature) (Signature)
Address:
______________________________________
______________________________________
(Seal and Notarial Acknowledgment of
Surety)
Telephone( )
___________________________
NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 10 EXHIBIT “C”
Price Sheet
Item
No.

Item Description
A
Unit
B
Estimated
Qty.

C
Unit Price
D
Total Price in
Figures
(BxC)

1. Mobilization/Demobilization Lump Sum 1
$ 7,800 /EA $ 7,800.00

2. Concrete Stockpile Screening Tons 10,000
$ 3.50 /TON $ 35,000.00

3. Crushing & Stockpiling Tons 10,000
$ 5.25 /TON $ 52,500.00
Price: Grand Total: $ 95,300.00
Total tons produced shall be documented by the contractor. The Landfill reserves the right to verify tonnage and quantities via the on-site landfill scales and/or volumetric survey of the final product piles. Daily belt scale tickets are provided to the Landfill Manager.

These prices shall be inclusive of any and all permit, fees, and/or rentals needed to stage the equipment at the Landfill.

NPS-2.2 (2/22)
I:\cmo\Agreements\Agreement w Three Peaks Corp.bm.09.18.2026.FY2627-51.doc 11 EXHIBIT “D”
WORKERS’ COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of the following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his or her employees.

CHECK ONE
_____I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake selfinsurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861).
_____I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers’ compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers’ compensation laws of California, immediately I shall provide the City with a certificate of consent to self-insure, or a certification of workers’ compensation insurance.

I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct.

THREE PEAKS CORP.

By: Date: _______ __________
Erik Simmons, President

City Council AGENDA ITEM NO. L3.

DATE: October 6, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a Purchase and Sales Agreement with Zachary D. Smith, an individual, for the property located at 21 N. Church Street (Assessor Parcel Number 0171-089-13-0000), and determine that the approval of the Agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's Guidelines implementing the California Environmental Quality Act (Facilities and Community Services Department Director Crocker) MOTION:

If the City Council determines that staff's recommendation is appropriate, the following motions are provided:

1. I move that the City Council determine that approval of the Agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act; and

2. I move that the City Council approve the Purchase and Sale Agreement with Zachary D. Smith, an individual, for the property located at 21 N. Church Street (Assessor Parcel Number 0171-089-13-0000), for a purchase price in the amount of $50,000.

RECOMMENDATION:

Staff recommends that the City Council determine that approval of the Agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act. Staff further recommends that the City Council approve the Purchase and Sale Agreement with Zachary D.

Smith, an individual, for which purchase for the property located at 21 N. Church Street (Assessor Parcel Number 0171-089-13-0000) shall be in the amount of $50,000.

DISCUSSION:

On October 21, 2025 the City Council approved Resolution No. 8728 declaring the subject property as surplus land. The Resolution was submitted to the Housing and Community Development Department for review and approval. The City received an unsolicited letter offering to purchase the subject property. The proposed buyer, Zachary D. Smith, stated an intent to relocate a home located at 616 E. State Street (APN 0171-089-02) onto the N. Church Street property. Currently, the property located at 616 E. State Street has several code violations and is slated for demolition.

Determination of General Plan Conformity:

Prior to the acquisition or sale of real property by a local agency, Government Code Section 65402 requires that such acquisition or sale be submitted to the Planning Commission for an evaluation as to its conformity with the General Plan. The proposed sale herein was submitted to the Planning Commission for evaluation on March 10, 2026. The Planning Commission evaluated the proposed sale for General Plan conformity and provided its report through the adoption of Resolution No. 1744. Through the adoption of this resolution, the Commission found that the sale would be in conformance with the General Plan.

The subject property totals 5,355 square feet (or 0.12 acre) and is designated as "Transit Village" on the 2035 General Plan Land Use Map. The Surplus Land Act (Government Code Sections 54220 et seq.) applies to the disposition of land by a local agency. The proposed sale is subject to, and consistent with, the applicable requirements of the Surplus Land Act. The Purchase and Sale Agreement include a purchase price for the property of $50,000, the value is consistent with the appraised value as stated in the attached appraisal report.

Approval of the Purchase and Sale Agreement is exempt from environmental review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3), the commonsense exemption, because the action involves only a transfer of ownership and will not result in any physical change to the environment. Any future development or change in use would be subject to separate discretionary approvals and environmental review, as required.

ALTERNATIVES:

The City Council may elect not to approve the agreement and direct staff accordingly.

STRATEGIC PLAN:

Not applicable.

SUBMITTED BY:

Tabitha Crocker, Facilities & Community Services Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Danielle Garcia, Assistant City Manager
Kurt Wilson, Assistant City Manager
James Garland, Finance Director
PREPARED BY:

Marion Cronin, Administrative Analyst

FISCAL IMPACT
Fiscal Year: FY 2025-26
Revenue Generating: Yes
Amount: $50,000
Budgeted Y/N:

Account No.: 101300-4811
Additional Appropriation Required: No
Discussion:

The revenue generated by the sale of this property will be deposited into the City's General Fund.

Attachments
A_Purchase_and_Sale_Agreement-071-089-13_21_N_Church_St_FINAL.pdf B_Appraisal_21_Church_Street_Redlands_8-23-2026.pdf
C_Map.pdf
D_Offer_Letter-_21_Church_St.pdf
E_Resolution_No1744_APN_0171-089-13-0000.pdf

PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
DATED
OCTOBER 6, 2026

BY AND BETWEEN

CITY OF REDLANDS,
a municipal corporation

AS SELLER,
ZACHARY D. SMITH,
An Individual,

AS BUYER
i
I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

TABLE OF CONTENTS
Page

1. PURCHASE AND SALE; COVENANTS AND USE OBLIGATIONS............................1

1.1 Purchase and Sale ..................................................................................................2

1.2 Covenants...............................................................................................................2

1.3 Enforcement/Power of Termination.......................................................................2

2. PURCHASE PRICE. ...........................................................................................................3

2.1 Deposits..................................................................................................................3

2.2 Deposit of Balance .................................................................................................3

3. ESCROW.............................................................................................................................3

3.1 Opening of Escrow ................................................................................................3

3.2 Escrow Instructions................................................................................................3

3.3 Termination/Cancellation ......................................................................................4

4. ACTIONS PENDING CLOSING. ......................................................................................4

4.1 Due Diligence. .......................................................................................................4

4.2 Title. .......................................................................................................................5

5. DESCRIPTION OF PROPERTY........................................................................................6

5.1 The Real Property ..................................................................................................6

6. CONDITIONS TO CLOSING. ...........................................................................................7

6.1 Buyer’s Closing Conditions...................................................................................7

6.2 Seller's Closing Conditions....................................................................................8

7. CLOSING. ...........................................................................................................................8

7.1 Closing Date...........................................................................................................8

7.2 Deliveries by Seller................................................................................................8

7.3 Deliveries by Buyer ...............................................................................................9

7.4 Actions by Escrow Agent ......................................................................................9

7.5 Prorations/Apportionment....................................................................................10

7.6 Closing Costs.......................................................................................................10

7.7 Closing Statement ................................................................................................11

7.8 Deliveries Outside of Escrow ..............................................................................12 ii
I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

8. SELLER’S REPRESENTATIONS AND WARRANTIES. .............................................12

8.1 Due Organization .................................................................................................12

8.2 Seller’s Authority; Validity of Agreements.........................................................12

8.3 No Third-Party Rights..........................................................................................12

8.4 Litigation..............................................................................................................12

8.5 Zoning and Condemnation...................................................................................12

8.6 No Violations of Environmental Laws ................................................................13

8.7 No Other Commitments.......................................................................................13

8.8 Wells....................................................................................................................13

9. BUYER’S REPRESENTATIONS AND WARRANTIES. ..............................................13

9.1 Due Organization .................................................................................................13

9.2 Buyer’s Authority; Validity of Agreements.........................................................13

10. SURVIVAL. ......................................................................................................................14

11. AS-IS..................................................................................................................................14

12. RISK OF LOSS..................................................................................................................14

12.1 Condemnation ......................................................................................................14

12.2 Casualty................................................................................................................15

13. REMEDIES........................................................................................................................15

13.1 Default by Seller ..................................................................................................15

13.2 Default by Buyer..................................................................................................16

14. BROKERS.........................................................................................................................17

15. MISCELLANEOUS PROVISIONS..................................................................................17

15.1 Entire Agreement .................................................................................................17

15.2 Modification; Waiver...........................................................................................17

15.3 Notices .................................................................................................................17

15.4 Expenses ..............................................................................................................18

15.5 Severability ..........................................................................................................18

15.6 Successors and Assigns........................................................................................19

15.7 Counterparts.........................................................................................................19

15.8 Governing Law; Jurisdiction; ..............................................................................19

15.9 Headings ..............................................................................................................19

15.10 Time of Essence ...................................................................................................19

15.11 Further Assurances...............................................................................................19

15.12 Construction.........................................................................................................19

15.13 Attorneys’ Fees....................................................................................................20

15.14 Business Days......................................................................................................20 1 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (this "Agreement") is made and entered into as of 6th day of October, 2026 (the "Agreement Date"), by and between CITY OF REDLANDS, a municipal corporation ("Seller"), and Zachary D. Smith, an Individual ("Buyer"), for the purpose of setting forth the agreement of the parties and to provide instructions to Escrow Agent with respect to the transaction contemplated by this Agreement. Seller and Buyer are sometimes individually referred to herein as a "Party" and, together, as the "Parties."

RECITALS
A. Seller is the owner of an undivided fee simple interest in certain real property located in the City of Redlands ("City"), San Bernardino County ("County"), State of California, located at 21 N. Church Street, Redlands, California, with Assessor Parcel Number 0171-089-13- 0000, and as more particularly described on Attachment "A" attached hereto (the "Land"). The Land, together with any Improvements (as defined in Section 5), are referred to in this Agreement as the "Property."
B. Seller desires to sell, transfer, and convey the Property to Buyer, and Buyer desires to purchase and acquire the Property from Seller, upon and subject to the terms and conditions set forth in this Agreement.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Buyer and Seller hereby agree, and instruct Escrow Agent, as follows:

1. PURCHASE AND SALE; COVENANTS AND USE OBLIGATIONS.

1.1 Subject to and upon all of the terms and conditions of this Agreement, Seller agrees to sell, transfer, and convey to Buyer, and Buyer agrees to purchase and acquire from Seller, the Property.

1.2 Covenants. The Buyer covenants and agrees it shall comply with the following (the “Use Obligations”):
(a) Prior to Closing, Buyer shall submit to the City for its review and approval a “Structure Relocation Plan.” The Structure Relocation Plan shall include documentation and information that demonstrates, to the Seller’s reasonable satisfaction, that the Buyer will relocate the 616 E. State Street Building to the Property in accordance with (a) applicable local, state, and federal laws, (b) reasonable safety precautions, and (c) other terms and conditions required by Seller, in its sole and absolute discretion. If the City, in its sole and absolute discretion, does not provide written approval of the Structure Relocation Plan within ten (10) days of receipt, then it shall be deemed disapproved.
2 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx (b) Within three (3) months from the date the grant deed consummating this transaction is recorded in the Official Records of San Bernardino County (the “Official Records”), Buyer shall acquire the structure currently located at and commonly known as 616 E. State Street, Redlands, California (the “616 E. State Street Building”). (c) Within twelve (12) months from the date the grant deed consummating this transaction is recorded in the Official Records, the 616 E. State Street Building shall have been relocated and all rehabilitation shall have been completed in accordance with the Structure Relocation Plan.
(d) Until such time as the obligations of subdivisions (b) and (c) have been completed, the Buyer shall not transfer, lease, assign, or otherwise convey the Property (or portions thereof) to a third party prior to the completion of the proposed Structure Relocation Plan. (e) Following Close of Escrow, the Property shall be used exclusively for residential purposes allowed by the City of Redlands Municipal Code and any ordinance or regulation affecting the allowable land uses for the Property. (f) The Use Obligations set forth in this section 1.2 shall survive closing for a period of ten (10) years (the “Restricted Period”), unless earlier terminated in accordance with this Agreement.

1.3 Enforcement of Use Obligations; Power of Termination. In the event the Buyer breaches the Use Obligations during the Restricted Period, Seller shall have the power to terminate the fee interest granted hereunder and to re-enter and take title to the Property, including any improvements thereon, without liability to Buyer for damages or losses of any kind including, but not limited to, any compensation or assistance for relocation other than those damages or losses caused by Seller’s gross negligence or intentional misconduct (the “Power of Termination”). The Power of Termination is set forth in the Grant Deed and shall be binding on Buyer and its successors and assigns as covenant running with the land. (a) If Buyer breaches the Use Obligations, Seller may exercise the Power of Termination by delivering written notice to Buyer. If Buyer does not cure the breach within thirty (30) days after Buyer’s receipt of such Seller notice, or if the nature of such violation is such that more than thirty (30) days is reasonably required to complete such cure and Buyer has not commenced a cure within said thirty (30) days and has not diligently completed its cure within ninety (90) days after Buyer’s receipt of such Seller notice, Seller may exercise its power of termination as set forth herein. The interest created in Seller by this paragraph shall be a "power of termination" as defined in California Civil Code Section 885.010. Following an uncured breach of any Use Obligation, Seller may exercise this Power of Termination by delivering notice of termination in any manner permitted by law, and tendering payment of the Purchase Price to Buyer. In the event Seller exercises its Power of Termination as set forth herein due to an uncured breach of the Use Obligation by Buyer, and Seller pays to Buyer the Purchase Price, Seller shall take title to the Property free and clear of the use restrictions described herein. The foregoing power of the Seller shall inure to the benefit of the successors and assigns of the Seller for the Restricted Period, and the successors and assigns of the Buyer shall be subject thereto and bound thereby for such period. Unless the Seller has earlier exercised its Power of Termination in 3 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx accordance with this Section 1, from and after the expiration date of the Restricted Period, the foregoing use restriction on the Property shall automatically be deemed null and void and without legal effect.
(b) Seller’s transfer of the Property to Buyer is subject to the terms, conditions, and covenants set forth in the Grant Deed, including the Use Obligations. For purposes of providing notice hereof, Buyer agrees that the Memorandum of Agreement set forth in Attachment “D” shall be recorded against the Property at Close of Escrow. (c) Upon completion of the Structure Relocation Plan, and all necessary approvals from the City of Redlands, or any other governmental entity with authority over the work to be completed as part of the Structure Relocation Plan, Buyer may request early termination of the Restricted Period and a release of the Memorandum of Agreement. Seller shall have not less than thirty (30) days to review a proposed release and provide its written consent. If Seller agrees to the release and termination of the Restricted Period, then the Power of Termination shall be deemed null and void and have no further affect, and the release shall be recorded in the Official Records for the County of San Bernardino. The termination of the Restricted Period shall only affect the rights and obligations under this Agreement. Buyer shall be responsible for recording the release and any related recording fees. If Seller does not provide written approval of the proposed release within thirty (30) days as provided for herein, then the release shall be deemed disapproved.

2. PURCHASE PRICE.

The purchase price of the Property (the "Purchase Price") shall be Fifty Thousand Dollars ($50,000.00). The Purchase Price shall be payable as follows:

2.1 Deposits. Within one (1) day following the "Opening of Escrow" (as hereinafter defined), Buyer shall deposit into "Escrow" (as hereinafter defined) the sum of One Thousand Dollars ($1,000.00) (which amount, together with any and all interest earned thereon, shall hereinafter be referred to as the "Deposit"). The Deposit shall be fully refundable through the Due Diligence Termination Date, as defined in Section 4.1.2. From and after the Due Diligence Termination Date, provided Buyer does not elect to terminate this Agreement pursuant to the terms of Section 4.1.2, the Deposit shall become non-refundable, except as specifically provided otherwise herein, and shall be credited against the Purchase Price at Closing.

2.1.1 Refund of Deposit. In the event that Buyer delivers its Feasibility Notice, but subsequently elects to terminate this Agreement due to (a) a Seller Default, as defined in Section 12.1 hereunder, (b) a failure of a Buyer’s Condition to Closing, or (c) the occurrence of any other event which by the terms of this Agreement gives rise to Buyer’s right to terminate this Agreement and receive a refund of the Deposit, then, subject to the terms of Section 12.1, (i) the Deposit shall be returned by Escrow Agent to Buyer, or to the extent previously released to Seller, and refunded to Buyer by Seller, (ii) this Agreement and the Escrow shall terminate, and (iii) the Parties shall have no further obligation to one another with respect to this Agreement, except with respect to such provisions which by their terms survive the termination of this Agreement. 4 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

2.1.2 Interest. The Deposit and any other cash held by Escrow Agent for the benefit of Buyer shall be held in a federally insured interest-bearing account, and the interest shall accrue to Buyer’s benefit.

2.2 Deposit of Balance. Buyer shall, at least one (1) business day prior to Closing (as defined in Section 7.1), deposit into Escrow in the form of wire transfer, cash or a certified or bank cashier’s check for immediately available funds, the amount of the Purchase Price less the Deposit, plus Buyer's closing costs and Buyer's share of any prorations to be made in accordance with this Agreement.

3. ESCROW.

3.1 Opening of Escrow. Buyer and Seller shall cause an escrow ("Escrow") to be opened with First American Title Company located at 3281 E. Guasti Rd., Suite 400, Ontario, CA 91761, Attention: Kelly Simoneau, [email protected] ("Escrow Agent") by delivery to Escrow Agent of a fully executed copy of this Agreement. Escrow Agent shall promptly deliver to Buyer and Seller written notice of the date of the “Opening of Escrow.” As used herein, the term "Opening of Escrow" means the day on which Escrow Agent receives a fully executed copy of this Agreement and has notified each Party in writing of such receipt.

3.2 Escrow Instructions. This Agreement shall constitute escrow instructions to Escrow Agent as well as the agreement of the Parties. In the event that any other printed escrow instructions are requested of the Parties and the terms thereof conflict or are inconsistent with any provision of this Agreement or any deed, instrument, or document executed or delivered in connection with the transaction contemplated hereby, the provisions of this Agreement, or such deed, instrument, or document shall control. Escrow Agent is hereby appointed and designated to act as Escrow Agent and instructed to deliver, pursuant to the terms of this Agreement, the documents and funds to be deposited into Escrow as herein provided.

3.3 Termination/Cancellation. Upon any termination or cancellation (the terms being used interchangeably herein) by either of the Parties as expressly allowed under this Agreement (including, without limitation, any deemed termination or cancellation), (a) the Deposit shall be delivered to the Party that this Agreement specifies is entitled thereto; (b) all documents, instruments, and funds delivered into Escrow shall be returned to the Party that delivered the same into Escrow, and (c) the Parties shall thereafter be relieved from further liability hereunder, except with respect to any obligations under this Agreement that are expressly stated to survive any termination of this Agreement. A copy of any notice of termination allowed under this Agreement shall be sent to Escrow Agent by the Party electing to terminate.

4. ACTIONS PENDING CLOSING.

4.1 Due Diligence. Buyer agrees and acknowledges that Seller shall have no obligations under this Agreement to provide Buyer with any documents regarding the Property, and further that Seller has no obligation to provide a Transfer Disclosure Statement under California Civil Code § 1102.2, subdivision (j), or a Natural Hazards Disclosure Report under California Civil Code § 1103.1(a)(9). Notwithstanding the foregoing, Buyer agrees and 5 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx acknowledges that, in the event of Closing, Buyer agrees to accept the Property “as is,” “where is,” and with all faults.

4.1.1 Buyer’s Diligence Tests.

4.1.1.1 For thirty (30) days from the date of this Agreement, Buyer and its employees, agents, consultants, and contractors shall be entitled, at Buyer’s sole cost and expense, to: (a) enter onto the Property, at reasonable times during Seller's normal business hours and upon prior written notice to Seller, to perform any inspections, investigations, studies, and tests of the Property (including, without limitation, physical, engineering, soils, geotechnical, and environmental tests) that Buyer deems reasonable; and (b) investigate such other matters pertaining to the Property as Buyer may desire. Notwithstanding the foregoing, Buyer shall not conduct any invasive testing on the Property without the prior written consent of Seller, which consent shall not be unreasonably withheld, delayed or conditioned. Any entry by Buyer onto the Property shall be subject to, and conducted in accordance with, all applicable laws.

4.1.1.2 Buyer shall keep the Property free and clean of any mechanics' liens and indemnify, protect, defend, and hold Seller and Seller’s partners, officers, directors, shareholders, managers, members, agents, employees, and representatives (each an "Indemnified Party" and collectively, the "Indemnified Parties") harmless from and against any and all claims (including, without limitation, claims for mechanic’s liens or materialman’s liens), causes of action, demands, obligations, losses, damages, liabilities, judgments, costs, and expenses (including, without limitation, reasonable attorneys’ fees, charges, and disbursements) (collectively, "Claims") in connection with or arising out of any inspections of the Property carried on by or on behalf of Buyer pursuant to the terms hereof, provided, however, that Buyer shall have no responsibility or liability for (a) the negligence or willful misconduct of any Indemnified Party; (b) any adverse condition or defect on or affecting the Property not caused by Buyer or its employees, agents, consultants, or contractors but discovered or impacted during their inspections including, without limitation, the pre-existing presence or discovery of any matter (such as, but not limited to, any Hazardous Substance (as hereinafter defined)); and/or (c) the results or findings of any inspection.

4.1.1.3 Upon completion of Buyer's inspections, Buyer shall promptly repair any material damage to the Property caused by its entry thereon and restore the Property to substantially the same conditions as it existed prior to Buyer's entry under this Section 4.1.2.

4.1.1.4 The provisions of this Section 4.1.1 shall survive the Closing or the earlier termination of this Agreement.

4.1.2 Buyer’s Termination Right. Buyer shall have the right at any time on or before the date thirty (30) days following the Opening of Escrow (the "Due Diligence Termination Date") to terminate this Agreement by delivering a written notice of such termination to Seller and Escrow Agent if Buyer determines, in its sole and absolute discretion, that the Property is not acceptable to Buyer for any reason. Buyer shall indicate its satisfaction and/or waiver of the Due Diligence condition described in this Section 4.1 by delivering written notice of such satisfaction and/or waiver ("Feasibility Notice") to Seller and Escrow Agent on or prior to the Due Diligence Termination Date. In the event Buyer fails to timely deliver a Feasibility Notice, then this 6 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx Agreement and the Escrow shall be automatically deemed terminated. In the event this Agreement is terminated in accordance with this Section, then the Deposit shall be immediately returned to Buyer and the Parties shall thereafter be relieved from further liability hereunder, except with respect to any obligations under this Agreement that are expressly stated to survive any termination of this Agreement.

4.2 Title.

4.2.1 Deliveries by Seller. Within three (3) Business Days after the Opening Escrow, or as soon thereafter as reasonably practical, Seller shall cause First American Title Company ("Title Insurer") to issue and deliver to Buyer (a) a current commitment for an ALTA standard coverage Owner’s Policy of Title Insurance for the Property (the "Title Report") and (b) legible copies of all documents referenced therein (collectively with the Title Report, the "Title Documents").

4.2.2 Buyer’s Review of Title. Buyer shall have until the date thirty (30) days following the Opening of Escrow ("Title Review Date") to notify Seller in writing of any objection that Buyer may have to any matters reported or shown in any survey or the Title Documents or any amendments or updates thereof (a "Buyer's Objection Letter") (provided, however, that if any such amendments or updates are received by Buyer after or within five (5) Business Days before the Title Review Date, Buyer shall have five (5) Business Days following Buyer’s receipt of such amendment or update and copies of all documents referenced therein to notify Seller of objections to matters shown on any such amendment or update that were not disclosed on the previously delivered survey or Title Documents and the Closing Date shall automatically be extended as necessary to facilitate such notice period and any subsequent periods for Seller's response and Buyer's election as provided in subsections (i) and (ii), below). Matters shown as exceptions to coverage in the Title Report (or any amendments or updates thereof) that are not timely objected to by Buyer as provided above shall be deemed to be "Permitted Exceptions." Seller shall cooperate, at no cost to Seller, with Buyer to eliminate matters objected to by Buyer, but, except as set forth in the last sentence of this Section 4.2.2, Seller shall have no obligation to cure or correct any matter objected to by Buyer. On or before the fifth (5th) Business Day following Seller’s receipt of Buyer’s Objection Letter, Seller may elect, by delivering written notice of such election to Buyer and Escrow Agent ("Seller's Response"), to cause Title Insurer to remove or insure over any matters objected to in Buyer’s Objection Letter. If Seller fails to deliver Seller’s Response within the period set forth above, it shall be deemed an election by Seller not to cause Title Insurer to so remove or insure over such objections. If Seller elects or is deemed to have elected not to cause Title Insurer to so remove or insure, or if Buyer determines, in its sole discretion, that any proposed endorsement for or insurance over an objected matter is unsatisfactory, then Buyer must elect, by delivering written notice of such election to Seller and Escrow Agent on or before the earlier to occur of (a) the fifth (5th) Business Day following Buyer’s receipt of Seller’s Response or (b) if no Seller’s Response is received by Buyer, the fifth (5th) Business Day following the date on which Seller shall have been deemed to have responded, as provided above, to: (i) terminate this Agreement, in which case the Deposit, to the extent previously deposited in Escrow, shall be immediately returned to Buyer; or (ii) proceed with this transaction, in which event those objected to exceptions or matters that Seller has not elected to cause Title Insurer to so remove or insure shall be deemed to be Permitted Exceptions. In the event 7 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx that Buyer fails to make such election on a timely basis, then Buyer shall be deemed to have elected to terminate this Agreement in accordance with the preceding clause (i).

4.2.3 Condition of Title at Closing. Upon the Closing, Seller shall sell, transfer, and convey to Buyer fee simple title to the Property by a duly executed and acknowledged grant deed in the form of Attachment "B" attached hereto (the "Grant Deed"), subject only to the Permitted Exceptions and the reservations and other matters, if any, referenced or described in said Grant Deed.

5. DESCRIPTION OF PROPERTY.

5.1 The Property. As used in this Agreement, the term "Property" shall mean, collectively, all of Seller’s right, title, and interest in and to: (a) the Land; (b) all improvements thereon (the "Improvements"); and (c) all of the rights, privileges, appurtenances, hereditaments, easements, reversions, and remainders pertaining to or used in connection with the Land and/or any of the Improvements, including, without limitation, all (i) development rights and credits, air rights, water, water rights, and water stock relating to the Land, (ii) strips and gores, streets, alleys, easements, rights-of-way, public ways, or other rights appurtenant, adjacent, or connected to the Land, and (iii) minerals, oil, gas, and other hydrocarbon substances in, under, or that may be produced from the Land. The conveyance of the Property is subject to conditions and covenants set forth in the Grant Deed.

6. CONDITIONS TO CLOSING.

6.1 Buyer’s Closing Conditions. The obligation of Buyer to complete the transaction contemplated by this Agreement is subject to the following conditions precedent (and conditions concurrent, with respect to deliveries to be made by Seller at the Closing) (the "Buyer's Closing Conditions"), which conditions may be waived, or the time for satisfaction thereof extended, by Buyer only in a writing executed by Buyer:

6.1.1 Title. Title Insurer shall be irrevocably and unconditionally prepared and committed to issue to Buyer (with an effective date not earlier than the Closing Date), an ALTA standard coverage owner’s policy of title insurance ("ALTA Standard Policy") in favor of Buyer for the Property (a) showing fee title to the Property vested in Buyer, (b) with liability coverage in an amount equal to the Purchase Price, (c) with those endorsements reasonably requested by Buyer including, without limitation, a Mechanic's Lien Endorsement, and (d) containing no exceptions other than the Permitted Exceptions and the reservations and other matters referenced or described in the Grant Deed (the "Owner’s Title Policy"). Buyer may, at its expense, obtain from the Title Company an ALTA extended coverage owner's policy provided the issuance of such ALTA form title policy shall not be a condition to Close of Escrow and shall cause no delay to the Close of Escrow. In the event Buyer elects to obtain an ALTA extended coverage policy, Buyer shall obtain an ALTA Survey, at its sole cost and expense, in a timely manner so as to facilitate the issuance of the ALTA extended coverage policy upon the Close of Escrow.

6.1.2 Seller’s Due Performance. All of the representations and warranties of Seller set forth in Section 8 shall be true, correct, and complete in all material respects as of the Closing Date, and Seller, on or prior to the Closing Date, shall have complied with and/or 8 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx performed all of the obligations, covenants, and agreements required on the part of Seller to be complied with or performed pursuant to the terms of this Agreement on or prior to the Closing.

6.1.3 Physical Condition of Property. The physical condition of the Property shall be substantially the same on the Closing Date as on the Agreement Date, except for reasonable wear and tear and any damages due to any act of Buyer or Buyer’s representatives.

6.1.4 Bankruptcy. No action or proceeding shall have been commenced by or against Seller under the federal bankruptcy code or any state law for the relief of debtors or for the enforcement of the rights of creditors, and no attachment, execution, lien, or levy shall have attached to or been issued with respect to Seller’s interest in the Property or any portion thereof.

6.1.5 Possession/Removal of Personal Property. Upon the Close of Escrow, Seller shall deliver exclusive possession of the Property to Buyer. Prior to the Close of Escrow Seller shall have the right to remove any or all improvements and Seller's equipment, trade fixtures or other personal property. Any such salvage and removal shall be performed pursuant to all required permits, in accordance with all laws, rules and regulations, and in such manner that the Property is delivered upon the Close of Escrow. Any improvements or personal property of Seller remaining on the Property after the Close of Escrow shall be conclusively deemed abandoned by Seller (the "Abandoned Personal Property"). Seller waives and relinquishes all rights, title, interest and claims in any such Abandoned Personal Property and effective upon abandonment transfers, conveys and assigns all of its right, title and interest in such Abandoned Personal Property to Buyer for disposition as determined by Buyer in Buyer’s sole and absolute discretion.

6.2 Seller's Closing Conditions. The obligation of Seller to complete the transaction contemplated by this Agreement is subject to the following conditions precedent (and conditions concurrent, with respect to deliveries to be made by Buyer at the Closing) (the "Seller's Closing Conditions"), which conditions may be waived, or the time for satisfaction thereof extended, by Buyer only in a writing executed by Seller.

6.2.1 All of the representations and warranties of Buyer set forth in Section 9 shall be true, correct, and complete in all material respects as of the Closing Date.

6.2.2 Buyer, on or prior to the Closing Date, shall have complied with and/or performed all of the obligations, covenants, and agreements required on the part of Buyer to be complied with or performed pursuant to the terms of this Agreement on or prior to the Closing.

6.2.3 Seller shall have received written notice from the California Department of Housing and Community Development finding that the disposition of the Property complies with the Surplus Land Act (Gov. Code § 54220 et seq.)

6.2.4 The disposition of the Property is consistent with the General Plan for the City of Redlands and California Government Code § 65402.

6.2.5 This Agreement and the disposition of the Property as provided for herein has complied with any and all applicable requirements under the California 9 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx Environmental Quality Act (Cal. Public. Resources Code § 21000 et seq.), and any applicable appeal or challenge period has expired.

6.2.6 Buyer has acquired the 616 E. State Street Building, and Seller has approved the Structure Relocation Plan.

6.2.7 Buyer has obtained all necessary permits and approvals for implementation of the Structure Relocation Plan, including but not limited to: (a) any and all approvals under the California Environmental Quality Act (Cal. Public Resources Code § 21000) and implementing regulations, (b) any review of historical designations or restrictions by a local, state or federal agency or commission. For purposes of this paragraph, there shall be no pending action regarding this Agreement or the Structure Relocation Plan, and the time for any appeal or challenge shall have expired.

7. CLOSING.

7.1 Closing Date. Subject to the provisions of this Agreement, the Closing shall take place no later than thirty (30) days after the Due Diligence Termination Date ("Closing Date"). As used herein, the "Closing" shall mean the recordation of the Grant Deed in the Official Records.

7.2 Deliveries by Seller. On or before the Closing Date, Seller, at its sole cost and expense, shall deliver or cause to be delivered into Escrow the following items, documents, and instruments, each dated as of the Closing Date, fully executed and, if appropriate acknowledged, and, if applicable, in proper form for recording:

7.2.1 Grant Deed; Memorandum of Agreement. The Grant Deed conveying the Property to Buyer, and the Memorandum of Agreement;

7.2.2 Non-Foreign Affidavit. A Non-Foreign Affidavit in the form attached hereto as Attachment "C" (the "Non-Foreign Affidavit");

7.2.3 State Affidavit. A California Franchise Tax Board Form 593-C (the "State Affidavit");

7.2.4 Owner’s Affidavit. An owner’s affidavit or seller’s certificate duly executed by Seller in the form customarily required by title insurance companies in the county in which the Property is located, in connection with the issuance of title insurance, to remove standard exceptions for mechanics liens, the gap period from the latest title update of Buyer’s title insurance commitment and Parties in possession;

7.2.5 Proof of Authority. Such proof of Seller’s authority and authorization to enter into this Agreement and the transaction contemplated hereby, and such proof of the power and authority of the individual(s) executing or delivering any instruments, documents, or certificates on behalf of Seller to act for and bind Seller as may be reasonably required by Title Insurer or Escrow Agent; and

7.2.6 Other. Such other items, documents, and instruments as may be reasonably required by Buyer, Title Insurer, Escrow Agent, or otherwise in order to effectuate the provisions 10 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx of this Agreement and the Closing and/or otherwise to fulfill the covenants and obligations to be performed by Seller at the Closing pursuant to this Agreement.

7.3 Deliveries by Buyer. On or before the Closing Date, Buyer, at its sole cost and expense, shall deliver or cause to be delivered into Escrow the following funds and the following items, documents, and instruments, each dated as of the Closing Date, fully executed and, if appropriate acknowledged, and, if applicable, in proper form for recording:

7.3.1 Purchase Price. Cash or other immediately available funds in an amount equal to the unpaid sum of the Purchase Price (less the Deposit) and all of Buyer’s share of the Closing Costs (as hereinafter defined) (and otherwise sufficient to close the transaction contemplated herein);

7.3.2 Proof of Compliance with Structure Relocation Plan. Written verification from Buyer to Seller that Buyer has the rights to acquire and relocate the 616 E. State Street Building and will proceed with the Structure Relocation Plan, subject to all conditions imposed therein and by this Agreement; and

7.3.3 Grant Deed; Memorandum of Agreement. The signed, executed Grant Deed and Memorandum of Agreement.

7.3.4 Other. Such other items, documents, and instruments as may be reasonably required by Seller, Title Insurer, Escrow Agent, or otherwise in order to effectuate the provisions of this Agreement and the Closing and/or otherwise to fulfill the covenants and obligations to be performed by Buyer at the Closing pursuant to this Agreement.

7.4 Actions by Escrow Agent. Provided that Escrow Agent shall not have received written notice from Buyer or Seller of the failure of any condition to the Closing or of the termination of the Escrow and this Agreement, when Buyer and Seller have deposited into Escrow the documents and funds required by this Agreement and Title Insurer is irrevocably and unconditionally prepared and committed to issue the Owner’s Title Policy in accordance with the terms hereof, Escrow Agent shall, in the order and manner herein below indicated, take the following actions:

7.4.1 Recording. Cause the Grant Deed and any other documents customarily recorded and/or that the Parties hereto may mutually direct to be recorded in the Official Records and obtain conformed copies thereof for distribution to Buyer and Seller.

7.4.2 Funds. Disburse all funds as follows:

7.4.2.1 Pursuant to the Closing Statement (as hereinafter defined), retain for Escrow Agent’s own account all escrow fees and costs, disburse to Title Insurer the fees and expenses incurred in connection with the issuance of the Owner’s Title Policy, and disburse to any other persons or entities entitled thereto the amount of any other Closing Costs;

7.4.2.2 Disburse to Seller an amount equal to the Purchase Price, less or plus the net debit or credit to Seller by reason of the prorations and allocations of Closing Costs provided for in this Agreement; and
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7.4.2.3 Disburse to the Party who deposited the same any remaining funds in the possession of Escrow Agent after the payments pursuant to Sections 7.4.2.1 and

7.4.2.2 above have been completed.

7.4.3 Delivery of Documents. Deliver: (a) to Seller (i) one original of all documents deposited into Escrow (other than the Grant Deed, the other documents recorded pursuant to the terms of this Agreement, the Non-Foreign Affidavit, the State Affidavit and the General Assignment), (ii) one copy of the Non-Foreign Affidavit, the State Affidavit and the General Assignment, and (iii) one conformed copy of each document recorded pursuant to the terms of this Agreement; and (b) to Buyer, (i) one original of all documents deposited into Escrow (other than the Grant Deed and the other documents recorded pursuant to the terms of this Agreement, but including, without limitation, the Non-Foreign Affidavit and the State Affidavit), and (ii) the one conformed copy of each document recorded pursuant to the terms of this Agreement. Originals of any documents recorded at Closing shall be delivered after such recording as indicated thereon.

7.4.4 Owner's Title Policy. Cause Title Insurer to issue or be irrevocably and unconditionally prepared and committed to issue the Owner's Title Policy to Buyer.

7.5 Prorations/Apportionment.

7.5.1 Method of Proration. Taxes and assessments affecting the Property shall be prorated between Buyer and Seller as of the Closing Date based on a 365-day year. All nondelinquent real estate taxes and assessments on the Property, if any, shall be prorated based on the actual current tax bill, but if such tax bill has not yet been received by Seller by the Closing Date or if supplemental taxes are assessed after the Closing for the period prior to the Closing, the Parties shall make any necessary adjustment after the Closing by cash payment to the Party entitled thereto so that Seller shall have borne all real property taxes, including all supplemental taxes, allocable to the period prior to the Closing and Buyer shall bear all real property taxes, including all supplemental taxes, allocable to the period from and after the Closing. If any real property taxes or assessments or any expenses attributable to the Property and allocable to the period prior to the Closing are discovered or billed after the Closing, the Parties shall make any necessary adjustment after the Closing by cash payment to the Party entitled thereto within five (5) Business Days following the discovery thereof or the receipt by any Party of the bill therefor, as the case may be, so that Seller shall have borne all real property taxes, assessments and expenses allocable to the period prior to the Closing and Buyer shall bear all real property taxes, assessments and expenses allocable to the period from and after the Closing.

7.5.2 Survival. The obligations under this Section 7.5 shall survive the Closing and the delivery and recordation of the Grant Deed for the Property.

7.6 Closing Costs. Each Party shall pay its own costs and expenses arising in connection with the Closing (including, without limitation, its own attorneys’ and advisors’ fees, charges, and disbursements), except the following costs (the "Closing Costs"), which shall be allocated between the Parties as follows:
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7.6.1 Escrow Agent’s escrow fees and costs shall be paid one-half by Seller and one-half by Buyer;

7.6.2 The cost of the Owner's Title Policy attributable to the standard coverage portion shall be paid by Buyer;

7.6.3 The cost of the Owner's Title Policy attributable to the extended coverage portion shall be paid by Buyer;

7.6.4 The cost of any items required to be provided by Seller, if any, pursuant to Section 4.2.2, shall be paid by Seller, and the costs of any other endorsements to the Owner’s Title Policy shall be paid by Buyer;

7.6.5 Seller shall pay the cost of any documentary transfer taxes in connection with the recording of the Grant Deed;

7.6.6 Buyer shall pay all recording costs for recording the Grant Deed; and

7.6.7 All other closing fees and costs shall be charged to and paid by Seller and Buyer in accordance with customary practices in the County.

7.7 Closing Statement. Three (3) Business Days prior to the Closing Date, Escrow Agent shall deliver to each of the Parties for their review and approval a preliminary closing statement (the "Preliminary Closing Statement") setting forth: (a) the proration amounts allocable to each of the Parties pursuant to Section 7.5; and (b) the Closing Costs allocable to each of the Parties pursuant to Section 7.6. Based on each of the Party’s comments, if any, regarding the Preliminary Closing Statement, Escrow Agent shall revise the Preliminary Closing Statement and deliver a final, signed version of a closing statement to each of the Parties at the Closing (the "Closing Statement").

7.8 Deliveries Outside of Escrow. Upon the Closing, Seller shall deliver sole and exclusive possession of the Property to Buyer, subject only to the Permitted Exceptions. Effective immediately upon the Closing, any personal property remaining on the Land shall be deemed abandoned and may be removed and disposed of by Buyer at its sole cost and expense. This Section

7.8 shall survive the Closing.

8. SELLER’S COVENANTS, REPRESENTATIONS AND WARRANTIES.

Seller represents, and warrants to and agrees with Buyer, as of the Agreement Date and as of the Closing Date, as follows:

8.1 Due Organization. Seller is a municipal corporation duly formed under the laws of the State of California.

8.2 Seller’s Authority; Validity of Agreements. Seller has full right, power, and authority to sell the Property to Buyer as provided in this Agreement and to carry out its obligations hereunder. The individual(s) executing this Agreement and the instruments referenced herein on behalf of Seller has/have the legal power, right, and actual authority to bind Seller to the terms 13 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx hereof and thereof. This Agreement is, and all other instruments, documents and agreements to be executed, and delivered by Seller in connection with this Agreement shall be, duly authorized, executed, and delivered by Seller and the valid, binding, and enforceable obligations of Seller (except as enforcement may be limited by bankruptcy, insolvency, or similar laws) and do not, and as of the Closing Date will not result in any violation of, or conflict with, or constitute a default under, any provisions of any agreement of Seller or any mortgage, deed of trust, indenture, lease, security agreement, or other instrument, covenant, obligation, or agreement to which Seller or the Property is subject, or any judgment, law, statute, ordinance, writ, decree, order, injunction, rule, ordinance, or governmental regulation or requirement affecting Seller or the Property.

8.3 No Third-Party Rights. Except as disclosed in the Title Report, Seller is not aware of any leases or occupancy agreements that grant third-Parties any possessory or usage rights to all or any part of the Property.

8.4 Litigation. Seller is not aware of (a) any actions, investigations, suits, or proceedings pending or threatened that affect the Property, the ownership or operation thereof, or the ability of Seller to perform its obligations under this Agreement, and (b) there are no judgments, orders, awards, or decrees currently in effect against Seller with respect to the ownership or operation of the Property that have not been fully discharged prior to the Agreement Date.

8.5 No Violations of Environmental Laws. To Seller’s knowledge and except as disclosed in the Property Materials: (a) the Property is not in, nor has it been or is it currently under investigation for violation of any federal, state, or local law, ordinance, or regulation relating to industrial hygiene, worker health and safety, or to the environmental conditions in, at, on, under, or about the Property, including, but not limited to, soil and groundwater conditions ("Environmental Laws"); (b) the Property has not been subject to a deposit of any Hazardous Substance; (c) neither Seller nor any third Party has used, generated, manufactured, stored, or disposed in, at, on, or under the Property any Hazardous Substance; and (d) there is not now in, on, or under the Property any underground or above ground storage tanks or surface impoundments, any asbestos containing materials, or any polychlorinated biphenyls used in hydraulic oils, electrical transformers, or other equipment. Seller hereby assigns to Buyer as of the Closing all claims, counterclaims, defenses, and actions, whether at common law or pursuant to any other applicable federal, state or other laws that Seller may have against any third Party or Parties relating to the existence or presence of any Hazardous Substance in, at, on, under, or about the Property. For purpose of this Agreement, the term "Hazardous Substance" shall be deemed to include any wastes, materials, substances, pollutants, and other matters regulated by Environmental Laws.

8.6 No Other Commitments. Except as may be disclosed in the Title Report, Seller has not made any commitment or representation to any governmental authority, or any adjoining or surrounding property owner, that would in any way be binding on Buyer or would interfere with Buyer’s ability to develop and improve the Property, and Seller shall not make any such commitment or representation that would affect the Property or any portion thereof, without Buyer’s written consent.
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8.7 Actual Knowledge. For purposes hereof, "Seller is not aware" or "to Seller's knowledge," or like terms shall mean the current actual knowledge of Tabatha Crocker, the City’s Finance Director, without implying any duty of investigation or inquiry.

8.8 Survival. All of the representations, warranties, and agreements of Seller set forth in this Agreement shall be true upon the Agreement Date, shall be deemed to be repeated at and as of the Closing Date, and shall survive the delivery of the Grant Deed and the Closing for a period of one (1) year. Prior to a termination of this Agreement, Seller shall not take any action, fail to take any required action, or willfully allow or consent to any action that would cause any of Seller’s representations or warranties to become untrue. If any representation or warranty of Seller was true as of the date of this Agreement, but is not true as of the Closing Date, then Seller shall disclose this changed fact to Buyer in writing. So long as Seller makes the foregoing disclosure and the change of circumstances regarding the representation or warranty did not arise due to the fault of Seller, then Seller shall not be in breach of this Agreement due to the fact that the representation or warranty has become untrue as of the Closing Date; provided, however, the fact that any representation or warranty under this Section 8 is untrue as of the Closing Date shall still be a failure of a condition pursuant to Section 6.1.2. Notwithstanding the foregoing, if Buyer has actual knowledge of the incorrectness of any representation or warranty set forth in this Section 8 as of the Close of Escrow and Buyer has not elected to terminate this Agreement as provided herein, then Buyer will be deemed to have waived any claim against Seller for the incorrectness of such representation or warranty.

9. BUYER’S REPRESENTATIONS AND WARRANTIES.

Buyer represents and warrants to Seller, as of the Agreement Date and as of the Closing Date, as follows:

9.1 Buyer’s Authority; Validity of Agreements. Buyer has full right, power, and authority to purchase and acquire the Property from Seller as provided in this Agreement and to carry out its obligations hereunder. This Agreement is, and all other instruments, documents, and agreements to be executed and delivered by Buyer in connection with this Agreement shall be, duly authorized, executed, and delivered by Buyer and the valid, binding, and enforceable obligations of Buyer (except as enforcement may be limited by bankruptcy, insolvency, or similar laws) and do not, and as of the Closing Date will not, violate any provision of any law, statute, ordinance, rule, regulation, agreement or judicial order to which Buyer is a Party or to which Buyer is subject.

9.2 Indemnification. From and after Closing, Buyer shall defend, indemnify, and hold harmless the Indemnified Parties from any and all claims against any and all Claims in connection with or arising out of Buyer’s ownership, use, management, or improvement of the Property, except to the extent required by law for any Claims arising from Seller’s gross negligence or willful misconduct.

9.3 Compliance with Structure Relocation Plan. Buyer covenants and warrants that Buyer will comply with the Structure Relocation Plan and complete the relocation of the 616 E.

State Street Building to the Property. This covenant shall survive closing and Seller shall have the 15 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx right to enforce this covenant through any rights or remedies under this Agreement or otherwise available at law or equity.

10. SURVIVAL. ALL OF THE REPRESENTATIONS, WARRANTIES, AND

AGREEMENTS OF BUYER SET FORTH IN THIS AGREEMENT SHALL BE TRUE UPON

THE AGREEMENT DATE, SHALL BE DEEMED TO BE REPEATED AT AND AS OF THE

CLOSING DATE AND SHALL SURVIVE THE DELIVERY OF THE GRANT DEED AND THE CLOSING FOR A PERIOD OF ONE (1) YEAR; PROVIDED HOWEVER, THAT SELLER’S POWER OF TERMINATION AND THE USE OBLIGATIONS SHALL SURVIVE CLOSING FOR THE RESTRICTED PERIOD AS SET FORTH IN SECTION 1.2. PRIOR TO A

TERMINATION OF THIS AGREEMENT, BUYER SHALL NOT TAKE ANY ACTION, FAIL

TO TAKE ANY REQUIRED ACTION, OR WILLFULLY ALLOW OR CONSENT TO ANY ACTION THAT WOULD CAUSE ANY OF BUYER’S REPRESENTATIONS OR WARRANTIES TO BECOME UNTRUE. IF ANY REPRESENTATION OR WARRANTY OF

BUYER WAS TRUE AS OF THE AGREEMENT DATE, BUT IS NOT TRUE AS OF THE

CLOSING DATE, THEN BUYER SHALL DISCLOSE THIS CHANGED FACT TO SELLER IN WRITING. SO LONG AS BUYER MAKES THE FOREGOING DISCLOSURE AND THE

CHANGE OF CIRCUMSTANCES REGARDING THE REPRESENTATION OR WARRANTY

DID NOT ARISE DUE TO THE FAULT OF BUYER, THEN BUYER SHALL NOT BE IN

BREACH OF THIS AGREEMENT DUE TO THE FACT THAT THE REPRESENTATION OR WARRANTY HAS BECOME UNTRUE AS OF THE CLOSING DATE; PROVIDED,

HOWEVER, THE FACT THAT ANY REPRESENTATION OR WARRANTY UNDER SECTION 9 IS UNTRUE AS OF THE CLOSING DATE SHALL STILL BE A FAILURE OF A CONDITION PURSUANT TO SECTION 6.2.

11. AS-IS. THE PARTIES HEREBY ACKNOWLEDGE AND AGREE AS
FOLLOWS: (A) BUYER IS A SOPHISTICATED BUYER WHO IS FAMILIAR WITH THIS TYPE OF PROPERTY; (B) EXCEPT AS MAY BE SPECIFICALLY SET FORTH IN THIS

AGREEMENT, THE DEED, AND/OR ANY OTHER DOCUMENT OR INSTRUMENT DELIVERED BY SELLER AT CLOSING (THE "EXPRESS REPRESENTATIONS"),

NEITHER SELLER NOR ANY OF ITS AGENTS, REPRESENTATIVES, BROKERS,

OFFICERS, DIRECTORS, SHAREHOLDERS, MEMBERS, OR EMPLOYEES HAS MADE

OR WILL MAKE ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND

WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY; AND (C) THE PROPERTY IS BEING SOLD TO BUYER IN ITS PRESENT "AS IS," “WHEREAS AS,” AND “WITH ALL FAULTS” CONDITION.

SUBJECT TO THE EXPRESS REPRESENTATIONS AND THE TERMS HEREOF, BUYER

WILL BE AFFORDED THE OPPORTUNITY TO MAKE ANY AND ALL INSPECTIONS OF

THE PROPERTY AND SUCH RELATED MATTERS AS BUYER MAY REASONABLY

DESIRE AND, ACCORDINGLY, SUBJECT TO THE EXPRESS REPRESENTATIONS,

BUYER WILL RELY SOLELY ON ITS OWN DUE DILIGENCE AND INVESTIGATIONS IN PURCHASING THE PROPERTY. IN CONNECTION WITH THE FOREGOING, BUYER

EXPRESSLY AGREES TO WAIVE ANY AND ALL RIGHTS WHICH BUYER MAY HAVE 16 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx UNDER SECTION 1542 OF THE CALIFORNIA CIVIL CODE, WHICH PROVIDES AS FOLLOWS:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE

CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER

FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN

BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR."

12. RISK OF LOSS.

12.1 Condemnation. If, prior to any Closing, all or any portion of the Property is taken by condemnation or eminent domain (or is the subject of pending condemnation or eminent domain action), Seller shall promptly notify Buyer in writing of such fact. In such event, Buyer shall have the option to terminate this Agreement upon written notice to Seller given within ten (10) Business Days after receipt of such notice from Seller, in which event the Deposit shall be returned to Buyer. Notwithstanding the foregoing, Buyer's failure to provide written notice of Buyer's election to terminate within such ten (10) Business Day period shall be deemed Buyer's election to proceed with this Agreement. Prior to any termination or deemed termination of this Agreement, Buyer shall have the right to participate in any proceedings and negotiations with respect to the taking and any transfer in lieu of taking (and Seller shall not consummate any transfer in lieu of taking without Buyer’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed). If Buyer waives the right to terminate this Agreement and elects to proceed with the Closing, then (a) Seller, at, and as a condition precedent to Buyer’s obligation to proceed with, the Closing, must: (i) pay to Buyer (or direct Escrow Agent to credit Buyer against the Purchase Price for) the amount of all awards for the taking (and any consideration for any transfer in lieu of taking) actually received by Seller; and (ii) assign to Buyer by written instrument reasonably satisfactory to Buyer all rights or claims to any future awards for the taking (and any consideration for any transfer in lieu of taking); and (b) the Parties shall proceed to the Closing pursuant to the terms hereof without further modification of the terms of this Agreement.

12.2 Casualty. Prior to the Closing and notwithstanding the pendency of this Agreement, the entire risk of loss or damage by earthquake, hurricane, tornado, flood, landslide, fire, sinkhole, contamination by hazardous materials or other casualty shall be borne and assumed by Seller. If, prior to the Closing, any portion of the Property is damaged as a result of any earthquake, hurricane, tornado, flood, sinkhole, landslide, fire, contamination by hazardous materials or other casualty, Seller shall immediately notify Buyer in writing of such fact. In such event, Buyer shall have the option to terminate this Agreement upon written notice to Seller given within ten (10) Business Days after receipt of any such notice from Seller, in which event the Deposit shall be returned to Buyer. Notwithstanding the foregoing, Buyer's failure to provide written notice of Buyer's election to terminate within such ten (10) Business Day period shall be deemed Buyer's election to proceed with this Agreement. Prior to any termination or deemed termination of this Agreement, Buyer shall have the right to participate in any adjustment of the insurance claim. If Buyer waives the right to terminate this Agreement and elects to proceed with the Closing, then (a) Seller, at, and as a condition precedent to Buyer’s obligation to proceed with, the Closing, must either: (i) pay to Buyer (or direct Escrow Agent to credit Buyer against the Purchase Price for) the amount of any insurance proceeds actually received by Seller plus the amount of any deductible 17 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx under Seller’s insurance; or (ii) if no insurance proceeds have been received by Seller, assign to Buyer by written instrument reasonably satisfactory to Buyer all rights or claims to the insurance proceeds and credit Buyer against the Purchase Price for any deductible payable under Seller’s insurance policy; and (b) the Parties shall proceed to the Closing pursuant to the terms hereof without further modification of the terms of this Agreement.

13. REMEDIES.

13.1 Default by Seller. If Seller shall breach any material terms or provisions of this Agreement or otherwise fail to perform any of Seller’s material obligations under this Agreement at or prior to Closing, and if such failure continues without cure by Seller for five (5) Business Days after Buyer provides Seller and Escrow Agent with written notice thereof (a "Seller Default"), and provided Buyer is not then in default, then Buyer may, as Buyer’s sole remedies for such failure, but without limiting Buyer’s right to recover attorneys' fees pursuant to Section 14.13 below: (a) waive the effect of such matter and proceed to consummate this transaction; (b) cancel this Agreement and receive a full refund of the Deposit ; or (c) proceed with an action against Seller for specific performance of Seller’s obligations under this Agreement.

13.2 Default by Buyer.
(A) PRIOR TO CLOSING. IF, PRIOR TO CLOSING, BUYER SHALL BREACH

ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR OTHERWISE FAIL TO PERFORM ANY OF BUYER’S OBLIGATIONS UNDER THIS AGREEMENT AND IF SUCH FAILURE CONTINUES WITHOUT CURE BY BUYER FOR FIVE (5) BUSINESS DAYS

AFTER SELLER PROVIDES BUYER AND ESCROW AGENT WITH WRITTEN NOTICE

THEREOF, AND PROVIDED SELLER IS NOT THEN IN DEFAULT, THEN SELLER MAY

WAIVE SUCH BREACH AND PROCEED TO CONSUMMATE THIS TRANSACTION IN

ACCORDANCE WITH THE TERMS HEREOF, OR SELLER MAY, AS ITS EXCLUSIVE

REMEDY, CANCEL THIS AGREEMENT AND RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES. BUYER AND SELLER HAVE DETERMINED AND HEREBY AGREE THAT IT

WOULD BE IMPRACTICAL OR EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE, TO

ASCERTAIN WITH ANY DEGREE OF CERTAINTY THE AMOUNT OF DAMAGES THAT

WOULD BE SUFFERED BY SELLER IF BUYER FAILS TO PERFORM ANY OF ITS

OBLIGATIONS IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT, AND

THE PARTIES AGREE THAT A REASONABLE ESTIMATE OF SUCH DAMAGES UNDER THE CIRCUMSTANCES IS AN AMOUNT EQUAL TO THE DEPOSIT. ACCORDINGLY,

BUYER AND SELLER AGREE THAT IF BUYER BREACHES ANY OF ITS OBLIGATIONS

UNDER THIS AGREEMENT OR OTHERWISE DEFAULTS HEREUNDER, SELLER MAY RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES. THE PAYMENT AND RETENTION

OF THE DEPOSIT AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369, BUT IS INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677.

Seller’s Initials Buyer’s Initials
18 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx (B) POST-CLOSING. IF, FOLLOWING CLOSING, BUYER BREACHES ANY OF

THE TERMS OR PROVISIONS OF THIS AGREEMENT OR OTHERWISE FAIL TO PERFORM ANY OF BUYER’S OBLIGATIONS UNDER THIS AGREEMENT AND IF SUCH

FAILURE CONTINUES WITHOUT CURE, THEN SELLER SHALL HAVE ANY RIGHTS

AND REMEDIES ALLOWED UNDER THIS AGREEMENT OR AVAILABLE AT LAW OR EQUITY.

14. BROKERS.

Neither Party has been represented in this transaction by a broker. Each of Buyer and Seller hereby represents and warrants to and agrees with each other that it has not had, and shall not have, any dealings with any third Party to whom the payment of any broker’s fee, finder’s fee, commission, or other similar compensation ("Commission") shall or may become due or payable in connection with the transaction contemplated hereby. Seller shall indemnify, defend, protect, and hold Buyer harmless for, from, and against any and all Claims incurred by Buyer by reason of any breach or inaccuracy of the representation, warranty, and agreement of Seller contained in this Section. Buyer shall indemnify, defend, protect, and hold Seller harmless from and against any and all Claims incurred by Seller by reason of any breach or inaccuracy of the representation, warranty, and agreement of Buyer contained in this Section. The provisions of this Section shall survive the Closing or earlier termination of this Agreement.

15. MISCELLANEOUS PROVISIONS.

15.1 Entire Agreement. This Agreement, including the attachments hereto, constitutes the entire agreement between Buyer and Seller pertaining to the subject matter hereof and supersedes all prior agreements, understandings, letters of intent, term sheets, negotiations, and discussions, whether oral or written, of the Parties, and there are no warranties, representations, or other agreements, express or implied, made to either Party by the other Party in connection with the subject matter hereof except as specifically set forth herein or in the documents delivered pursuant hereto or in connection herewith.

15.2 Modification; Waiver. No supplement, modification, waiver, or termination of this Agreement shall be binding unless executed in writing by the Party to be bound thereby. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

15.3 Notices. All notices, consents, requests, reports, demands or other communications hereunder (collectively, "Notices") shall be in writing and may be given personally, by registered or certified mail, by electronic mail, by courier, or by Federal Express (or other reputable overnight delivery service) for overnight delivery, as follows:

To Buyer: Zachary D. Smith
1107 Orange Street
Redlands CA 92374
Telephone: (909) 809-2464
19 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx Email: [email protected]
To Seller: City of Redlands
300 E. State Street, Suite 690
Redlands, California 92373
Attention: City Clerk
Telephone: (909) 798-7531
Email: [email protected]
To Escrow Agent: First American Title Company
3281 E. Guasti Rd., Suite 400
Ontario, CA 91761
Attention: Kelly Simoneau
Telephone: (909) 510-6206
Email: [email protected]
or to such other address or such other person as the addressee Party shall have last designated by Notice to the other Party and Escrow Agent. All Notices shall be deemed to have been given three (3) days following deposit in the United States Postal Service (postage prepaid) or, upon receipt, if sent by overnight delivery service, courier, facsimile transmission (so long as confirmed by the appropriate automatic confirmation page), electronic mail (so long as receipt is acknowledged or otherwise confirmed), or personally delivered. Notice to a Party shall not be effective unless and until each required copy of such Notice is given. The inability to deliver a Notice because of a changed address of which no Notice was given or an inoperative facsimile number for which no Notice was given of a substitute number, or any rejection or other refusal to accept any Notice, shall be deemed to be the receipt of the Notice as of the date of such inability to deliver or rejection or refusal to accept. Any Notice to be given by any Party hereto may be given by legal counsel for such Party. Telephone numbers are provided herein for convenience only and shall not alter the manner of giving Notice set forth in this Section 15.3.

15.4 Expenses. Subject to the provision for payment of the Closing Costs in accordance with the terms of Section 7.6 of this Agreement and of any other provision of this Agreement, whether or not the transaction contemplated by this Agreement shall be consummated, all fees and expenses incurred by any Party hereto in connection with this Agreement shall be borne by such Party.

15.5 Severability. Any provision or part of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall, as to such situation and such jurisdiction, be ineffective only to the extent of such invalidity and shall not affect the enforceability of the remaining provisions hereof or the validity or enforceability of any such provision in any other situation or in any other jurisdiction.

15.6 Successors and Assigns. Neither Seller nor Buyer shall assign its rights under this Agreement without the consent of the other Party, which consent shall not be unreasonably withheld or delayed. Notwithstanding any such assignment, no assignment shall relieve the 20 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx assignor of any obligations or liability under this Agreement. Subject to the foregoing, all of the Parties’ rights, duties, benefits, liabilities, and obligations under this Agreement shall inure to the benefit of, and be binding upon, their respective successors and assigns.

15.7 Counterparts. This Agreement may be executed in as many counterparts as may be deemed necessary and convenient, and by the different Parties hereto on separate counterparts, each of which, when so executed, including, without limitation, by .pdf scanned counterparts of any initialed or executed pages delivered via electronic mail, shall be deemed an original, but all such counterparts shall constitute one and the same instrument.

15.8 Governing Law; Jurisdiction. This Agreement shall be governed by and construed under the laws of the State of California without regard to conflicts-of-laws principles that would require the application of any other law. Each Party hereby consents to the exclusive jurisdiction of any court of competent jurisdiction in San Bernardino County in any action related to or arising under this Agreement.

15.9 Headings. The Section headings of this Agreement are for convenience of reference only and shall not be deemed to modify, explain, restrict, alter, or affect the meaning or interpretation of any provision hereof.

15.10 Time of Essence. Time shall be of the essence with respect to all matters contemplated by this Agreement.

15.11 Further Assurances. In addition to the actions recited herein and contemplated to be performed, executed, and/or delivered by Seller and Buyer, during the term of this Agreement and after the Closing, Seller and Buyer agree to perform, execute, and/or deliver or cause to be performed, executed, and/or delivered any and all such further acts, instruments, deeds, and assurances as may be reasonably required to consummate the transaction contemplated hereby. In furtherance of the foregoing, so long as Buyer is not in default under the terms of this Agreement, Seller will cooperate, as reasonably needed, and at no cost to Seller, in Buyer's feasibility review process as reasonably requested by Buyer.

15.12 Construction. As used in this Agreement, the masculine, feminine, and neuter gender and the singular or plural shall each be construed to include the other whenever the context so requires. This Agreement shall be construed as a whole and in accordance with its fair meaning, without regard to any presumption or rule of construction causing this Agreement or any part of it to be construed against the Party causing the Agreement to be written. The Parties acknowledge that each has had a full and fair opportunity to review the Agreement and to have it reviewed by counsel. If any words or phrases in this Agreement have been stricken, whether or not replaced by other words or phrases, this Agreement shall be construed (if otherwise clear and unambiguous) as if the stricken matter never appeared and no inference shall be drawn from the former presence of the stricken matters in this Agreement or from the fact that such matters were stricken.

15.13 Attorneys' Fees. In the event that either Party hereto brings an action or proceeding against the other Party to enforce or interpret any of the covenants, conditions, agreements, or provisions of this Agreement, each party, including the prevailing Party, shall bear its own costs and attorneys’ fees. Notwithstanding the foregoing, in any action by Seller to enforce the Use 21 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx Obligations or Power of Termination as provided for in Section 1.3, or a default under Section

13.2(B), the prevailing Party shall be entitled to recover reasonable attorneys’ fees and costs.

15.14 Business Days. As used herein, the term "Business Day" shall mean a day that is not a Saturday, Sunday, legal holiday, or holiday recognized by Seller. In the event that the date for the performance of any covenant or obligation under this Agreement shall fall on a Saturday, Sunday, or legal holiday, the date for performance thereof shall be extended to the next Business Day. Similarly, in the event that the day for the performance of any covenant or obligation under this Agreement involving Escrow Agent shall fall on a Business Day, the date for performance thereof shall be extended to the next Business Day.
[Signatures on following page]
22 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written.

SELLER:

CITY OF REDLANDS, a municipal
corporation
By:

Mario Saucedo, Mayor
ATTEST:
_________________________
Jeanne Donaldson, City Clerk BUYER:

ZACHARY D. SMITH, an Individual
By:

Zachary D. Smith
ESCROW AGENT:

The undersigned Escrow Agent hereby accepts the foregoing Purchase and Sale Agreement and Joint Escrow Instructions, agrees to act as Escrow Agent under this Agreement in strict accordance with its terms, agrees to insert as the "Agreement Date" on page 1 hereof, if not otherwise dated, the latest date this Agreement was signed by Seller and Buyer and delivered to Escrow Agent, and agrees to comply with the applicable provisions of the Internal Revenue Code with respect to the transactions contemplated hereby.

First American Title Company
Date: By:

Name: Kelly Simoneau
Title: Senior Commercial Escrow Officer
23 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

LIST OF ATTACHMENTS
ATTACHMENT "A" DESCRIPTION OF THE PROPERTY
ATTACHMENT "B" GRANT DEED
ATTACHMENT "C" NON-FOREIGN AFFIDAVIT
ATTACHMENT “D” MEMORANDUM OF AGREEMENT
24 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx ATTACHMENT "A"

DESCRIPTION OF THE PROPERTY
25 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx ATTACHMENT "B"

FORM OF GRANT DEED
[SEE FOLLOWING PAGES]
26 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Redlands
35 Cajon Street, Suite 4
P.O. Box 3005 mailing
Redlands, California 92373
Attention: Jeanne Donaldson, City Clerk

EXEMPT FROM RECORDING FEES PURSUANT
TO GOVERNMENT CODE SECTION 27383
(Space Above for Recorder's Use)
APN: 0171-089-13 EXEMPT FROM RECORDING FEES PER GOVT. CODE §27383 Documentary Transfer Tax Calculation Appended Hereto

GRANT DEED

PART ONE
FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, CITY OF REDLANDS, a municipal corporation (the "Grantor"), hereby grants to ZACHARY D. SMITH, an Individual, the real property in the City of Redlands, County of San Bernardino, State of California, described in Exhibit "A" attached hereto and incorporated herein by this reference.

THIS GRANT AND CONVEYANCE IS MADE AND ACCEPTED SUBJECT TO

COVENANTS, CONDITIONS, RESTRICTIONS, RESERVATIONS, RIGHTS OF WAY AND

EASEMENTS NOW OF RECORD, AND AS FURTHER SET FORTH IN PART TWO OF THIS

GRANT DEED

PART TWO
The conveyance of the Property by the Grantor to the Grantee in Part One is subject to the following terms, conditions, covenants and restrictions:

Section 1. Conveyance Subject to Covenants Set forth in Purchase Sale Agreement.

The Property is conveyed pursuant to a Purchase Sale Agreement (“Agreement”), pursuant to which Grantee would take title to the Property on the terms and conditions set forth in the Agreement, including but not limited to the “Use Obligations,” as defined therein. The Use Obligations of the Agreement are incorporated into this Grant Deed by this reference and are deemed to be a part of this Grant Deed, as though fully set forth herein, and enforceable through the Power of Termination set forth in Section 6, below. 27 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx Section 2. Condition of Property. The Grantee acknowledges and agrees that the Property is conveyed by the Grantor to the Grantee in its “AS IS,” “WHERE IS” and “SUBJECT TO ALL FAULTS CONDITION,” as of the date of recordation of this Grant Deed, with no warranties, expressed or implied, as to the environmental or other physical condition of the Property, the presence or absence of any patent or latent environmental or other physical condition on or in the Property, or any other matters affecting the Property.

Section 3. Obligation to Refrain from Discrimination. The Grantee for itself, its successors and assigns to all or any part or portion of the Property, covenants and agrees that:

3.1 There shall be no discrimination against or segregation of any person, or group of persons, on account of actual or perceived race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information, of any person, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property nor shall the Developer, itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sub-tenants, sub-lessees or vendees of the Property.

The covenant of this Section 3 shall run with the land of the Property and shall be enforceable against the Grantee and its successors and assigns in perpetuity and be a covenant in the Grant Deed and the Memorandum of Agreement.

3.2 The covenant of this Section 3 shall run with the land of the Property in perpetuity, shall be enforceable against the Grantee and its successors and assigns, and shall be covenants set forth in the Grant Deed.

Section 4. Form of Non-Discrimination and Non-Segregation Clauses. The Grantee for itself, its successors and assigns to all or any part or portion of the Property, covenants and agrees that:

4.1 The Grantee, such successors and such assigns shall refrain from restricting the sale, lease, sublease, rental, transfer, use, occupancy, tenure or enjoyment of the Property (or any portion thereof) on account of actual or perceived race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information. All deeds, leases or contracts pertaining to the Property shall contain or be subject to substantially the following non-discrimination or non-segregation covenants:
(a) In deeds: “The grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of actual or perceived race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sub-tenants, 28 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx sub-lessee, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.”
(b) In leases: “The Lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of actual or perceived race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased, nor shall the lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants lessees, sub-lessee, sub-tenants, or vendees in the premises herein leased.”
(c) In contracts: “There shall be no discrimination against or segregation of any person or group of persons on account of actual or perceived race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed or leased, nor shall the transferee or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sub-lessees, sub-tenants, or vendees of the premises herein transferred.” The foregoing provision shall be binding upon and shall obligate the contracting party or parties and any subcontracting party or parties, or other transferees under the instrument.

4.2 The covenants of this Section 4 shall run with the land of the Property in perpetuity.

Section 5. Maintenance Condition of the Property. The Grantee for itself, its successors and assigns to all or any part or portion of the Property and/or Project, covenants and agrees that:

5.1 The areas of the Property that are subject to public view (including all existing and future improvements, paving, walkways, landscaping, exterior signage and ornamentation) shall be maintained in good repair and a neat, clean and orderly condition, ordinary wear and tear excepted. If there is an occurrence of an adverse condition on any area of the Property that is subject to public view in contravention of the general maintenance standard described above (a “Maintenance Deficiency”), then the Grantor shall notify the Grantee in writing of the Maintenance Deficiency. If the Grantee fails to cure or commence and diligently pursue to cure the Maintenance Deficiency within thirty (30) days of its receipt of notice of the Maintenance Deficiency, the Grantor shall have the right to enter the Property and perform all acts necessary to cure the Maintenance Deficiency, or to take any other action at law or in equity that may then be available to the Grantor to accomplish the abatement of the Maintenance Deficiency. Any sum expended by the Grantor for the abatement of a Maintenance Deficiency on the Property pursuant to this Section 5.1 shall become a lien on the Property, as applicable. If the amount of the lien is 29 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx not paid within thirty (30) days after written demand for payment from the Grantor to the Grantee, the Grantor shall have the right to enforce the lien in the manner provided in this Section 5.1.

5.2 Graffiti, as this term is defined in Government Code Section 38772, that has been applied to any exterior surface of a structure or improvement on the Property that is visible from any public right-of-way adjacent or contiguous to the Property, shall be removed by the Grantee by either painting over the evidence of such vandalism with a paint that has been colormatched to the surface on which the paint is applied, or graffiti may be removed with solvents, detergents or water, as appropriate. If any such graffiti and is not removed within ninety-six (96) hours following the time of the discovery of the graffiti, the Grantor shall have the right to enter the Property and remove the graffiti, without notice to the Grantee. Any sum expended by the Grantor for the removal of graffiti from the Property pursuant to this Section 5.2, shall be a lien on the Property. If the amount of the lien is not paid within thirty (30) days after written demand to the Grantee from the Grantor, the Grantor shall have the right to enforce its lien in the manner provided in this Section 5.2.

5.3 The Parties further mutually understand and agree that the rights conferred upon the Grantor under this Section 5.3 expressly include a grant by the Grantee of a security interest in the Property with the power to establish and enforce a lien or other encumbrance against the Property or any portion thereof, in the manner provided under Civil Code Sections 2924, 2924b and 2924c, to secure the obligations of the Grantee and it successors under Section 5.1 or Section

5.2, including the reasonable attorneys’ fees and costs of the Grantor associated with the abatement of a Maintenance Deficiency or removal of graffiti. For the purposes of the preceding sentence the words “reasonable attorneys’ fees and costs of the Grantor” mean and include the salaries, benefits and costs of the City Attorney and the lawyers employed in the Office of the City Attorney.

5.4 The provisions of this Section 5.4, shall be a covenant running with the land of the Property, shall be enforceable against the Grantee and its successors and assigns in perpetuity. Nothing in the foregoing provisions of this Section 5 shall be deemed to preclude the Grantee from making any alteration, addition, or other change to any structure or improvement or landscaping on the Property, provided that any such changes comply with applicable zoning and building regulations of the City.

Section 6. Grantor Power of Termination Regarding the Property.

6.1 The Grantor hereby reserves a power of termination (the “Power of Termination”) pursuant to Civil Code Sections 885.010, et seq., exercisable by the Grantor, in its sole and absolute discretion, upon thirty (30) calendar days written notice to the Grantee referencing this Section 6.1, to terminate the fee interest of the Grantee in the Property and/or any improvements to the Property and revest such fee title in the Grantor and take possession of all or any portion of such real property and improvements, without compensation to the Grantee, upon the occurrence of an Event of Default by the Grantee following the Close of Escrow for a breach of the Use Obligations set forth in the Agreement. The Power of Termination shall continue for a period expiring on the thirtieth (30th) anniversary of the date of the recording of this Grant Deed.

6.2 The thirty (30) calendar day written notice specified Section 6.1 shall specify the Event of Default by the Grantee triggering the Grantor’s exercise of its Power of 30 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx Termination. The Grantor shall proceed with its remedy as set forth in Section 6.1 only if the Grantee continues in default for a period of ninety (90) calendar days following such notice or, upon commencing to cure such default, fails to diligently and continuously prosecute said cure to satisfactory conclusion.

6.3 Upon the Grantor’s exercise of its Power of Termination pursuant to this Section 6, the Grantee or its successors or assigns shall convey by grant deed to the Grantor title to the Property, as specified in the Grantor’s notice pursuant to Section 6.1, and all improvements thereon, in accordance with Civil Code Section 1109, as such code section may hereafter be amended, renumbered, replaced or substituted. Such conveyance shall be duly acknowledged by the Grantee and a notary in a manner suitable for recordation. The Grantor may enforce its rights pursuant to this Section 6.3 by means of an injunctive relief or forfeiture of title action filed in any court of competent jurisdiction.

6.4 IMMEDIATELY FOLLOWING THE THIRTY (30) DAY PERIOD
SPECIFIED IN SECTION 6.1, ABOVE, THE GRANTOR, ITS EMPLOYEES AND AGENTS

SHALL HAVE THE RIGHT TO REENTER AND TAKE POSSESSION OF THE PROPERTY

AND ANY IMPROVEMENTS THEREON, WITHOUT FURTHER NOTICE OR COMPENSATION TO THE GRANTEE. BY INITIALING BELOW, THE GRANTEE HEREBY

EXPRESSLY WAIVES, TO THE MAXIMUM EXTENT ALLOWED BY LAW, ANY AND

ALL RIGHTS THAT THE GRANTEE MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 791 AND CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 1162, AS

THOSE STATUTES MAY BE AMENDED, REPLACED, RENUMBERED OR

SUBSTITUTED, OR UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

GRANTEE’S INITIALS ____________

6.5 THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE
GRANTOR’S EXERCISE OF ITS POWER OF TERMINATION AND RIGHT OF REENTRY PURSUANT TO THIS SECTION 6.5 MAY WORK A FORFEITURE OF THE ESTATE IN THE PROPERTY CONVEYED TO THE GRANTEE THROUGH THE GRANT DEED. THE

GRANTEE HEREBY EXPRESSLY WAIVES, TO THE MAXIMUM EXTENT ALLOWED BY

LAW, ANY AND ALL EQUITABLE AND LEGAL DEFENSES THAT THE GRANTEE MAY

HAVE TO SUCH FORFEITURE, INCLUDING, BUT NOT LIMITED TO, THE DEFENSES

OF LACHES, WAIVER, ESTOPPEL, SUBSTANTIAL PERFORMANCE OR COMPENSABLE DAMAGES. THE GRANTEE FURTHER EXPRESSLY WAIVES, TO THE

MAXIMUM EXTENT ALLOWED BY LAW, ANY AND ALL RIGHTS AND DEFENSES THAT THE GRANTEE MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 3275 OR ANY OTHER STATUTE OR COMMON LAW PRINCIPLE OF SIMILAR EFFECT. THE

GRANTEE ACKNOWLEDGES THAT THE TERMS AND CONDITIONS OF THE

AGREEMENT REFLECT THE POSSIBILITY OF FORFEITURE BY VIRTUE OF THE EXERCISE OF THE GRANTOR’S POWER OF TERMINATION PROVIDED IN THIS SECTION 6.5 AND FURTHER ACKNOWLEDGE THAT IT HAS RECEIVED

INDEPENDENT AND ADEQUATE CONSIDERATION FOR ITS WAIVER AND RELINQUISHMENT OF RIGHTS AND REMEDIES PURSUANT TO SECTION 6.4 AND THIS SECTION 6.5.
31 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx GRANTEE’S INITIALS ____________
Section 7. Covenants Run with the Land of the Property. Each of the covenants and agreements contained in this Grant Deed touch and concern the Property and each of them is expressly declared to be a community development covenant that runs with the land for the benefit of the Grantor or the City of Redlands, and such covenants run with the land in favor of the Grantor for the entire period that such covenants are in full force and effect, regardless of whether the Grantor is or remains an owner of any land or interest in land to which such covenants relate. The Grantor, in the event of any breach of any such covenants, has the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings, to enforce the curing of such breach, as provided in the Agreement or by law. The covenants contained in this Grant Deed are for the benefit of and are enforceable only by the Grantor, and shall survive the execution and recordation of this Grant Deed, for the time period set forth above for each covenant.

Section 11. Costs and Attorneys’ Fees for Enforcement Proceeding. If legal proceedings are initiated to enforce the rights, duties or obligations of any of the covenants set forth in this Grant Deed, then each party shall bear its own attorney fees and costs.

Section 12. Effect of Unlawful Provision; Severability. In the event that any provision of this Grant Deed is held to be invalid or unlawful by a final judgment of a court of competent jurisdiction, such invalidity shall not affect the validity of any other provision of this Grant Deed. [signature page follows]
32 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx IN WITNESS WHEREOF, the Grantor has executed this grant deed as of October 6, 2026.

GRANTOR:

CITY OF REDLANDS, a municipal
corporation
By: ________
Mario Saucedo, Mayor
ATTEST:
___________________________
Jeanne Donaldson, City Clerk
33 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx A notary public or other officer completing this
certificate verified only the identity of the
individual who signed the document to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF )
On , 2026, before me,
, Notary Public, personally appeared
, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they/executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary Public
In and For Said County and State
34 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

CERTIFICATE OF ACCEPTANCE OF

GRANT DEED
The undersigned hereby acknowledges acceptance by _______, an individual, as Grantee under the Grant Deed, of the delivery of the subject Property described in the within Grant Deed from the City of Redlands, subject to the covenants and restrictions set forth herein.

GRANTEE:

ZACHARY D. SMITH
Dated:
_________________, 2026 ____________________________
Zachary D. Smith
35 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx A notary public or other officer completing this
certificate verified only the identity of the
individual who signed the document to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document.

STATE OF CALIFORNIA )
) ss.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary Public
In and For Said County and State
36 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx Document No. ______________________________
Recorded ____________________________, 2026

STATEMENT OF TAX DUE AND REQUEST THAT TAX DECLARATION

NOT BE MADE A PART OF THE PERMANENT RECORD IN THE OFFICE OF THE COUNTY RECORDER (PURSUANT TO SECTION 11932 REVENUE

AND TAXATION CODE)
TO: Recorder
County of San Bernardino
Request is hereby made in accordance with the provisions of the Documentary Transfer Tax Act that the amount of the tax due not be shown on the original document which names:

Grantor: CITY OF REDLANDS, a municipal corporation
Grantee: ZACHARY D. SMITH, an Individual
The property described in the accompanying document is located in the City of Redlands, County of San Bernardino.

The amount of tax due on the accompanying document is $____________, computed on the full value of the property conveyed.
(Signature of Grantor or Agent) CITY OF REDLANDS, a municipal corporation
By:

Mario Saucedo, Mayor
ATTEST:
_________________________
Jeanne Donaldson, City Clerk
Note: After the permanent record is made, this form will be affixed to the conveying document and returned with it.
37 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx EXHIBIT “A” TO GRANT DEED

LEGAL DESCRIPTION OF PROPERTY
38 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx ATTACHMENT "C" TO PURCHASE AND SALE AGREEMENT

NON-FOREIGN AFFIDAVIT

STATE OF )
) ss.

County of )
The undersigned, as authorized agent of CITY OF REDLANDS, a municipal corporation ("Transferor"), after being duly sworn upon his oath deposes and says that:

Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform ZACHARY D. SMITH, an Individual ("Transferee"), that withholding of tax is not required upon the disposition of Transferor’s interest in a U.S. real property interest, the undersigned hereby certifies the following:

1. Transferor is not a non-resident alien, foreign corporation, foreign partnership, foreign trust, foreign estate, or other foreign person within the meaning of §1445 and §7701 of the Internal Revenue Code and the treasury regulations promulgated thereunder;

2. Transferor is not a disregarded entity as defined in Treas. Reg. § 1.1445-2(b)(2)(iii);

3. Transferor’s U.S. taxpayer identification number is: ;

4. Transferor’s business address is:
.

Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalties of perjury Transferor declares that it has examined this certification and to the best of its knowledge and belief this certification is true, correct, and complete. The undersigned agent declares that he has the authority to sign this document on behalf of Transferor.

TRANSFEROR:

CITY OF REDLANDS, a municipal
corporation
By:

Mario Saucedo, Mayor
ATTEST:
_________________________
Jeanne Donaldson, City Clerk
39 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx A notary public or other officer completing this
certificate verified only the identity of the
individual who signed the document to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document.

STATE OF CALIFORNIA )
) ss.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary Public
In and For Said County and State
40 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx ATTACHMENT “D” TO PURCHASE AND SALE AGREEMENT

MEMORANDUM OF AGREEMENT
[SEE FOLLOWING PAGES]
41 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Redlands
35 Cajon Street, Suite 4
P.O. Box 3005 mailing
Redlands, California 92373
Attention: Jeanne Donaldson, City Clerk
EXEMPT FROM RECORDING FEES PER GOVT. CODE §27383 (Space Above for Recorder's Use)

APN: 0171-089-13

MEMORANDUM OF AGREEMENT

1. This Memorandum of Agreement (the “Memorandum”) is signed and recorded by the undersigned regarding the real property and improvements located at 21 N. Church Street, Redlands, California (the “Property”), with Assessor Parcel Number 0171-089-13-0000, and as more particularly described as follows:

2. The Memorandum is recorded to provide constructive notice to all third parties that the undersigned parties have entered into a Purchase and Sale Agreement, dated ___________, 2026 (the “Agreement”), incorporated fully herein by reference, regarding the agreement by the City of Redlands (the “City”) to transfer the Property to Zachary D. Smith, an individual (the “Buyer”). The Agreement sets forth “Use Obligations,” defined herein, that impose covenants on Buyer for the use of the Property. In the event Buyer does not comply with the Use Obligations, City has the right to enforce the Use Obligations or exercise a Power of Termination in accordance with California Civil Code Section 885.010 et seq.

3. Buyer’s Use Obligations and the Power of Termination are fully set forth in the Purchase and Sale Agreement available with the City, and covenants that run with the land as set forth in the Grant Deed conveying the Property to Buyer and recorded on or about the same date hereof.

4. The Use Obligations continue for a period of ten (10) years from the date this Memorandum is recorded, unless earlier released by City. 42 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx

5. The Use Obligations set forth in the Agreement and the Grant Deed shall inure to the benefit of, and shall be binding upon the Parties and their respective successors and permitted assigns.

6. This Memorandum is prepared for the purpose of recordation to give notice of the Agreement and Grant Deed. This Memorandum in no way modifiesthe provisions of the Agreement or the Grant Deed. In the event of any conflict between the terms of this Memorandum and the Agreement or the Grant Deed, the terms of the Agreement or Grant Deed shall govern.

7. This Memorandum shall be recorded in the Official Records of San Bernardino County, California.

SELLER:

CITY OF REDLANDS, a municipal
corporation
By:

Mario Saucedo, Mayor
ATTEST:
_________________________
Jeanne Donaldson, City Clerk
BUYER:

ZACHARY D. SMITH, an Individual
By:

Zachary D. Smith
[Seller and Buyer signatures to be acknowledged]
43 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx A notary public or other officer completing this
certificate verified only the identity of the
individual who signed the document to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document.

STATE OF CALIFORNIA )
) ss.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary Public
In and For Said County and State
44 I:\cmo\Agreements\Purchase and Sale Agreement-071-089-13 21 N. Church St FINAL.bm.09.21.2026.FY2627-52.docx A notary public or other officer completing this
certificate verified only the identity of the
individual who signed the document to which
this certificate is attached, and not the
truthfulness, accuracy, or validity of that
document.

STATE OF CALIFORNIA )
) ss.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Notary Public
In and For Said County and State
Towers & Associates
Appraisal of Real Property
Vacant Lot
SW Corner of Church Street and E State Street
21 Church St.

Redlands, CA 92373
As-Is Date of Value: August 13, 2026
Prepared For: Prepared By:

City of Redlands Towers & Associates
c/o Ms. Trish Munoz, MBA James G. Towers, MAI, AI-GRS, CCIM Interim FCS Manager P.O Box 7783
35 Cajon St., Suite 222 Redlands, CA 92375
Redlands, CA 92373 Office: (909) 335-1735
Phone: (909) 684-9507 Direct: (909) 223-9328
Email:[email protected] E-Mail: [email protected] Towers & Associates
Towers & Associates
James G. Towers, MAI, AI-GRS, CCIM
P.O Box 7783
Redlands, CA 92375
Office: (909) 335-1735
Direct: (909) 223-9328
E-mail: [email protected]
August 23, 2026
City of Redlands
C/o: Ms. Trish Munoz, MBA
Interim FCS Manager
35 Cajon Street, Suite 222
Redlands, CA 92373
Email: [email protected]
RE: Appraisal of Real Property
Vacant Lot
SW Corner of Church Street and E. State Street
21 Church St.

Redlands, CA 92373
APN: 0171-089-13
Dear Ms. Munoz,
As requested, I have prepared an appraisal of the real property referenced above. The value reported herein is subject to the assumptions and limiting conditions described in the accompanying report. This report has been prepared under the Appraisal Report option in accordance with the reporting requirements set forth under Standards Rule 2- 2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). I have personally performed the inspection and analysis that form the basis of this report.

The subject of this report is a vacant lot located at the SW corner of Church Street and E.

State Street, in the city of Redlands, CA. The subject site is ±5,355 square feet (gross) in size. The site has ±45’ of frontage along E. State street and 119’ of frontage along Church Street, with paved alley to the rear (south). The site was previously developed but is currently clear of any structures. Based on our conversations with the Redlands City Planning officials, any future development would likely require an additional street dedication of ± 4’ in width along Church Street, new curb / gutter along Church Street, and the relocation of two above ground power poles along Church Street. The site is suitable for future residential construction or assemblage with the adjacent site(s) to the west.

This appraisal report has been prepared in accordance with the real estate appraisal regulations, as imposed by the Financial Institution Reform, Recovery, and Enforcement Act of 1989 (FIRREA), and the current Uniform Standards of Professional Appraisal 21 Church Street, Redlands, CA 92373
Towers & Associates
Practice (USPAP), as promulgated by the Appraisal Standards Board of the Appraisal Foundation.

Based on the investigation and analysis described, and subject to the assumptions and limiting conditions set forth in this report, the As-Is Market Value of the Fee Simple interest in the subject’s real property, as of August 13, 2026, is:

FIFTY THOUSAND DOLLARS
$50,000
Extraordinary Assumptions and / or Hypothetical Conditions made during the appraisal process are stated below. We advise the client to consider these issues carefully, as their use may have affected the assignment results.
❑ Extraordinary Assumptions: Yes; See Page 2.
❑ Hypothetical Conditions: None
The accompanying report, of which this letter is a part, contains summary discussions of the data, reasoning, and analysis that were used to develop the opinion of value. It also includes summary descriptions of the subject property, the property’s locale, the market for the property type, and the appraisers’ opinion of highest and best use.

This report has been prepared for the sole use and benefit of the client and intended users that are specifically identified herein. Neither this report, nor any of the information contained herein, shall be used or relied upon by any person or entity other than those authorized by the client and those named as intended users. Towers & Associates is not responsible for any unauthorized use of or reliance upon this report, its contents, and / or its conclusions.

I appreciate the opportunity to be of service to you and look forward to future consultations at your request.

Respectfully Submitted,
James G. Towers, MAI, AI-GRS, CCIM
Principal – Towers & Associates
Certified General Real Estate Appraiser
California BREA Appraiser Identification Number AG003282 (expires 6/7/2026) 21 Church Street, Redlands, CA 92373
Towers & Associates

TABLE OF CONTENTS
EXECUTIVE SUMMARY................................................................................................. 1 EXTRAORDINARY ASSUMPTIONS AND LIMITING CONDITIONS.............................. 2 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS............................................ 3 INTRODUCTION............................................................................................................. 5 SCOPE OF THE APPRAISAL ..................................................................................................................5 PROPERTY RIGHTS APPRAISED..........................................................................................................6 IDENTIFICATION OF CLIENT AND INTENDED USERS OF THE REPORT .........................................7 INTENDED USE OF THE REPORT.........................................................................................................7 PURPOSE OF THE APPRAISAL .............................................................................................................7 FUNCTION OF THE APPRAISAL ............................................................................................................7 PRIOR APPRAISALS AND/OR OTHER SERVICES...............................................................................7 DEFINITION OF MARKET VALUE...........................................................................................................7 PROPERTY IDENTIFICATION ....................................................................................... 9 LEGAL DESCRIPTION.............................................................................................................................9 OWNER(S) OF RECORD.........................................................................................................................9 RECENT SALES HISTORY .....................................................................................................................9 TAX AND ASSESSMENT ANALYSIS......................................................................................................9 REGIONAL DESCRIPTION .......................................................................................... 10 COMMUNITY / NEIGHBORHOOD DESCRIPTION...................................................... 17 MARKET OVERVIEW................................................................................................... 20 SITE DESCRIPTION AND ANALYSIS.......................................................................... 23 HIGHEST AND BEST USE........................................................................................... 35 VALUATION.................................................................................................................. 37 DIRECT SALES COMPARISON APPROACH.............................................................. 38 RECONCILIATION AND CONCLUSION OF AS-IS VALUE ......................................... 51 ESTIMATE OF MARKETING/ EXPOSURE TIME......................................................... 52 CERTIFICATION OF APPRAISAL................................................................................ 53 QUALIFICATIONS OF APPRAISER – JAMES G. TOWERS, MAI, AI-GRS, CCIM...... 54 ADDENDUM ................................................................................................................. 56 Vacant Lot – 21 Church St. Redlands, CA 92373
Towers & Associates Page 1

EXECUTIVE SUMMARY
Address 21 Church St.

City, State, Zip Redlands, CA 92373
County San Bernardino
APN: 0171-089-13
Census Tract 81.00
Gross Land / Site Area (SF) 5,355 SF 0.12 acres
Zoning Specific Plan (SP65) NG2 - Neighborhood General 2 Flood Zone Zone AO
Map Panel, Date 06071C8716H Dated
Highest & Best Use As-If Vacant Develop with small-lot residential use Property Type Vacant Land
No. of Tenants / Occupants None
Gross / Rentable Building Area (SF) 0
Remaining Economic Life (Years) N/A
Current Occupancy 0%
Effective Date of Value (As-IS)
Date of Inspection
Date of Report
Cost Approach Excluded
Sales Comparison Approach
Income Approach Excluded
As-Is Market Value
Net Operating Income @ Market N/A
Personal Property FF&E Included N/A
Insurable Value/Replacement Cost New N/A
Exposure Time 6-12 Months
Marketing Time 6-12 Months
August 13, 2026
$50,000
$50,000

PROPERTY SUMMARY
August 13, 2026
August 23, 2026
8/28/2008

VALUATION SUMMARY
Vacant Lot – 21 Church St. Redlands, CA 92373
Towers & Associates Page 2

EXTRAORDINARY ASSUMPTIONS AND LIMITING CONDITIONS
An extraordinary assumption is defined as:
“An assumption, directly related to a specific assignment, which if found to be false, could alter the appraiser’s opinions or conclusions.”
1 Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.

Extraordinary assumptions utilized in this appraisal include:

1. Per public records information, the subject’s site size is 5,355 square feet, with site dimensions of ± 45’ x 119’. According to officials at the city of Redlands Planning Department, any future development would likely require a street dedication of ± 4’ in width along Church Street, new curb / gutter along Church Street, and the relocation of two above ground power poles along Church Street. It is an extraordinary assumption of this report, that the subject site could be developed to its highest and best use subject to the described street dedication and offsite improvements.

The use of extraordinary assumptions may have affected the appraisal assignment results.

HYPOTHETICAL CONDITIONS
A hypothetical condition is defined as:
“A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.”2
Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.

Hypothetical conditions utilized in this report include:

1. None.

The use of hypothetical conditions may have affected the appraisal assignment results. 1 USPAP 2014-2015
2 USPAP 2104-2015
Vacant Lot – 21 Church St. Redlands, CA 92373
Towers & Associates Page 3

GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This report has been made with the following assumptions and limiting conditions. They are critical to the analysis and conclusion contained in this report.

1. This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPSP). As such, it may not include full discussions of the data, reasoning, and analysis that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning, and analysis is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report.

2. All proposed improvements are assumed to have been fully completed in a workmanlike manner unless otherwise stated. All proposed construction is assumed to conform to the plans and specifications listed in the appraisal report.

3. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. Encumbrances always considered and included in the valuation, where they exist, are: real estate taxes, easements, CC&R's, typical financing (comparable to cash in U. S. dollars), purchase options or sale agreements, signed leases, and unpaid bond debt.

4. Unless otherwise stated in this report, the existence of hazardous substances, including (without limitation) asbestos, mold, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of, nor did the appraisers become aware of such during the inspection. The appraisers have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions.

The value estimate is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them.

5. Responsible ownership and competent property management are assumed.

6. Information furnished by others is believed to be reliable if it cannot be independently verified by the appraisers (e.g., rent rolls, lease abstracts, operating income and expense histories, etc.). However, no warranty is expressed or implied for the accuracy of such.

7. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.

8. All engineering is assumed to be correct. The plot plans and other illustrative material in this report are included only to assist the reader in visualizing the property.

Vacant Lot – 21 Church St. Redlands, CA 92373
Towers & Associates Page 4

9. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

10.It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless otherwise stated, defined, and considered in the report.

11.It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government, or regulatory agency, or private entity or organization have been or can be obtained or renewed for any use on which the value estimate in this report is based.

12.It is assumed that all entitlements required for development of this property, if applicable, have been or can be obtained.

13.Unless otherwise stated, it is assumed that all public utilities, including--but not limited to--electrical service, natural gas, domestic water supplies, waste water disposal, storm drainage facilities, and telephone service, are available.

14.The appraisers assume that the reader(s) or user(s) of this report has been provided with copies of available building plans, and leases and amendments, if any, encumbering the property.

15.The forecasts, projections, or operating estimates contained herein are based upon current market conditions, anticipated short term supply and demand factors and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions.

16.It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.

17.The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.

Vacant Lot – 21 Church St. Redlands, CA 92373
Towers & Associates Page 5

INTRODUCTION

SCOPE OF THE APPRAISAL
This is an Appraisal Report, which is prepared under the reporting requirements set forth in Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). The report includes discussions of the data, reasoning, and analysis that were used to develop the opinion of value. It also includes descriptions of the subject property, the property's locale, the market for the property type, and the appraiser's opinion of highest and best use. Any data and analysis not presented in the summary appraisal report can be obtained from the appraiser's work file(s) upon request.

Prior to accepting this assignment, the appraiser and client have together identified the appraisal problem to be addressed as being the determination of the following value conclusions:
❑ As-Is Market Value (Fee Simple)
❑ Insurable Value
The subject property was visually inspected along with its environs and relevant market data. The appraiser’s inspection of the subject property involved the following:
• James Towers, accompanied by Ryan Towers, conducted an onsite inspection of the subject property without the use of specialized equipment. • The inspection of the comparable data is typically limited to what can be visually observed from the public street.
• The effective date of the As-Is Market Value reflects the last date of physical inspection.
• The subject’s site area was determined from public records. • Public sources and city resources have been utilized to determine the property's existing zoning and/or to confirm the status of any proposed changes to the zoning.

This appraisal includes the following approaches to value:
• Sales Comparison Approach
Approaches to value that have been omitted from the valuation include:
• The income approach has been excluded as vacant industrial land (or land with improvements nearing the end of their economic lives) appeals primarily to developers. This buyer profile typically does not purchase based on the land’s ability to produce income.
• The Cost Approach has been excluded as the existing improvements are at or near the end of their economic lives and have only nominal contributory value.

Vacant Lot – 21 Church St. Redlands, CA 92373
Towers & Associates Page 6
Existing lease contract(s) and any other encumbrances affecting the subject's value and/or marketability were analyzed in arriving at the concluded estimate(s) of the current market value of the identified property rights, as appraised under the stated valuation premise(s).

The market data collected, evaluated, and analyzed in the valuation of the subject property included site sales data, construction cost data, market rental information (rates, terms, etc.), market expense data, and sales of comparable improved properties, as applicable. Market trends, including the supply of, and demand for, competing properties of this type in the subject's market area were also analyzed. All data has been obtained from sources that the appraiser deems reliable. Where possible and practical, the data has been verified with more than one source including the principals and/or agents involved in the transaction. Public records may also have been used as a source of verification.

This appraisal is intended to comply fully with:
• OCC: 12 CFR, Part 34, Real Estate Lending and Appraisals; • Interagency Appraisal and Evaluation Guidelines, December 10, 2010; • The current Uniform Standards of Professional Appraisal Practice ("USPAP") promulgated by the Appraisal Standards Board of the Appraisal Foundation; • Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA); • Appraisal Institute Standards of Professional Appraisal Practice; • Client provided appraisal and evaluation guidelines for Fee Panel Members;

PROPERTY RIGHTS APPRAISED
The valuation of the appraised property pertains only to the land and improvements, and does not include any fixtures, equipment, or personal property located on the premises.

The analysis reflects that of the Fee Simple Estate; defined as:
“..absolute ownership unencumbered by any other interest or estate; subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."3
3 The Appraisal of Real Estate. 11th Edition; Appraisal Institute, (Appraisal Institute, 1992, Chicago Illinois), Page 137.

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IDENTIFICATION OF CLIENT AND INTENDED USERS OF THE REPORT The Client and intended user of this report is identified as City of Redlands. Other potential users of this report include the client’s affiliates, departments, or others specifically designated by the City of Redlands.

INTENDED USE OF THE REPORT
Exclusive use of the client for potential sale purposes.

PURPOSE OF THE APPRAISAL
To determine Market Value.

FUNCTION OF THE APPRAISAL
This report is to function as an impartial, independent, opinion of market value for the exclusive use of the client.

PRIOR APPRAISALS AND/OR OTHER SERVICES
Prior to completion of this appraisal assignment, this appraiser has completed a prior appraisal report that involved the subject property during the three-year period immediately preceding the agreement to perform this assignment. The prior report is summarized as follows:

Client Date of Report Date of Value Appraised Value
City of Redlands August 11, 2025 July 31, 2025 $50,000
The current value of $50,000 represents a 0% change from the prior report.

DEFINITION OF MARKET VALUE
In this appraisal report, "market value" is hereby defined and qualified as:

Market Value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.

Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
a. Buyer and seller are typically motivated;
b. Both parties are well informed or well advised, and acting in what they consider their own best interests;
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c. A reasonable time is allowed for exposure in the open market; d. Payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and,
e. The price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
(Source: Office of the Comptroller of the Currency; 12 CFR, part 34, Subpart C - Appraisals,

34.42 Definitions [g].)
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PROPERTY IDENTIFICATION

LEGAL DESCRIPTION
Lot 15 Timmon’s First Addition, in the City of Redlands, County of San Bernardino, State of California, as per plat recorded in Book 8 of Maps, Page 76, in the Office of the County Recorder of said County.

Except therefrom the westerly 10 feet, measured along the north line of said lot and the easterly line being parallel to the westerly line of said lot.

OWNER(S) OF RECORD
City of Redlands, a municipal corporation

RECENT SALES HISTORY
Per public records, current ownership obtained title on recorded Doc. No. 2001-0362671.

Dated 8/9/2001. No sale transactions are known to have occurred over the prior threeyear mandatory reporting period. The subject property is not currently known to be listed for sale nor is the property known to be under contract / in escrow.

TAX AND ASSESSMENT ANALYSIS
The subject property is publicly held real estate and is not subject to taxation as determined by the County Assessor’s office.

For privately held real estate the county agency collects taxes on behalf of the following entities: the County, most of the county’s incorporated cities, school districts, and all other taxing agencies located in the county including special districts (e.g. flood control districts, sanitation districts, etc.). Property taxes are limited by state law to 1% of the assessed value plus voter-approved obligations and special assessments. If no sale or transfer occurs or now new building takes place, assessments may not increase by more than 2% annually.

APN 0171-089-13
Total Taxable Value ($) n/a
Base Tax Rate n/a
Base Taxes ($) n/a
Special Assessments ($) n/a
Total Taxes ($) n/a
Overall Tax Rate n/a
Tax Summary
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REGIONAL DESCRIPTION
The subject property is located in Southern California. This region is made up of six counties that include San Bernardino, Riverside, Ventura, Los Angeles, Orange, and San Diego. These six counties have been, and continue to be, interdependent upon one another for a variety of goods and services.

The subject property is located in the Standard Metropolitan Statistical Area (SMSA) commonly referred to as the "Inland Empire" region. The Inland Empire consists primarily of the two counties of San Bernardino and Riverside. Combined, these two counties encompass more than 27,300 square miles, making it the largest SMSA, in terms of land area, in the United States.

The Inland Empire has historically been in the direct path of growth from the greater Los Angeles and Orange County areas. Over the past five decades, the region has experienced a rapid growth rate, ranking as one of the fastest growing regions in the Country. The rapid growth can be attributed in part to affordable real estate in comparison to neighboring Los Angeles and Orange County, an abundance of vacant land available for development, and an extensive network of freeways. The freeway system provides business with the infrastructure necessary for moving goods and services and also allows workers to live in Riverside and San Bernardino counties to commute to the urban employment centers of Los Angeles and Orange County.

Population and Growth
According to U.S. Census statistics, the Inland Empire was officially the fastest-growing region in the State of California between the years 1990 and 2000 and again from 2000 to 2010. Riverside County reportedly grew the fastest of any county in the state (with minimum size threshold of one million populations) while San Bernardino ranked as the third fastest growing county. According to the January 2026 figures, Riverside County had a population of 2.50 million which reflects a 12.6% increase over the 2010 figures. San Bernardino County’s January 2026 population figure was reported at 2.21 million which reflect a 8.1% increase over the 2010 figures.

On the following page is a Community Profile for the combined Riverside & San Bernardino Counties.

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Transportation / Access
The Inland Empire has evolved as a primary transportation and distribution hub for all of Southern California. The area’s excellent freeway network, major railroad facilities, and international airport, all provide the ability to process and distribute goods throughout Southern California region and beyond. Interstate 15, 215, and 10 along with State Routes 91, 60, and 210, bisect the region and provide direct access to Los Angeles, Orange, and San Diego Counties, as well as the neighboring states of Nevada and Arizona. Nearly all truck cargo entering or leaving Southern California passes through the Inland Empire. Transportation officials estimate that 35% of all container cargo in the United States passes through the interstate 10 and Interstate 15 corridors. The transcontinental I-10 serves the southern tier of the United States by providing the main east-west link from Santa Monica and Greater Los Angeles in the west to Jacksonville in the east. Major cities served by I-10 include Los Angeles California; Phoenix Arizona; El Paso Texas; San Antonia Texas; Houston Texas; New Orleans Louisiana; and Jacksonville Florida. The Interstate-10 is one of the three coast-to-coast Interstates in the U.S. (the others being Interstates 80 and 90).

LA / Ontario International Airport (ONT) located in Ontario, is the main airport facility serving the Inland Empire. ONT is a full-service origin and destination airport with commercial jet service to every major city in the United States in addition to serving several foreign countries with direct flights. In terms of cargo, the ONT is second only to LAX in Southern California and has the 15th largest cargo volume in the U.S.

Regional Economic Indicators
The unemployment rate in the Riverside-San Bernardino-Ontario MSA was 5.3 percent in June 2026, up from a revised 4.6 percent in May 2026, and below the year-ago estimate of 5.7 percent. This compares with an unadjusted unemployment rate of 5.2 percent for California and 4.4 percent for the nation during the same period. The unemployment rate was 5.4 percent in Riverside County, and 5.2 percent in San Bernardino County. Between May 2026 and June 2026, total nonfarm employment decreased from 1,722,000 to 1,721,700, a loss of 300 jobs. Agricultural employment increased by 600 jobs. Between June 2025 and June 2026, total nonfarm employment increased by 11,100, a 0.6 percent change. Agricultural employment grew by 800 jobs, or 5.6 percent.

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The Inland Empire economy is currently experiencing moderating but continued expansion, reflecting a transition from the rapid growth observed in prior years. The regional Purchasing Managers Index (PMI), published by California State University, San Bernardino Institute of Applied Research, remained firmly in expansionary territory throughout 2025, with recent readings in the mid-60 range, indicating ongoing growth in manufacturing and supply chain-related activity. However, key PMI components such as new orders, production, and employment have shown some deceleration, suggesting that while business conditions remain positive, the pace of growth has slowed. This trend is consistent with broader economic indicators, including modest job growth, softening demand in the logistics and warehousing sector, and rising industrial vacancy rates following a period of significant expansion. At the same time, the region continues to benefit from population growth, relative housing affordability, and ongoing development activity, which support underlying economic stability. Overall, the Inland Empire economy is best characterized as stable with slowing growth, with continued expansion expected at a more measured pace in the near term.

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COVID-19 / Post Pandemic Economic Conditions
The long-term economic effects of the COVID-19 pandemic continue to influence the U.S., California, and Inland Empire economies, although the pandemic itself is no longer the primary driver of economic conditions. The most significant legacy has been the inflation and interest-rate cycle that followed the pandemic-era fiscal stimulus, strong consumer demand, labor-market pressures, and global supply-chain disruptions. The resulting increase in inflation prompted the Federal Reserve to undertake one of its most aggressive monetary tightening cycles in decades beginning in 2022. Higher borrowing costs subsequently reduced real estate transaction volume, development activity, and investment demand, particularly during 2023 and 2024.

Monetary conditions have since eased materially from their peak, although interest rates remain well above the unusually low levels that prevailed during the pandemic period. As of July 2026, the Federal Reserve's target federal funds rate is 3.50% to 3.75%. The Fed has indicated that inflation remains elevated relative to its 2.0% objective, with the July 2026 Consumer Price Index increasing 3.4% from a year earlier. Consequently, monetary policy remains relatively restrictive and the timing and magnitude of additional rate reductions remain dependent upon inflation, employment, and broader economic conditions.

The Inland Empire economy has generally demonstrated resilience, supported by its large population base, transportation infrastructure, proximity to the ports of Los Angeles and Long Beach, and its established role as a major Southern California logistics and distribution center.

Conclusions
COVID-19 no longer presents a material risk to the region’s economic performance.

Instead, macroeconomic factors—most notably inflation, interest rate volatility, and reduced liquidity—are the primary concerns. These conditions have slowed investment activity and heightened investor risk, even as the Inland Empire continues to offer longterm growth prospects due to its strategic location, infrastructure, and demographic trends.

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REGIONAL LOCATION MAP
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COMMUNITY / NEIGHBORHOOD DESCRIPTION
Community Data
The subject property is located within the city of Redlands. Incorporated in 1888, Redlands is located in the eastern portion of San Bernardino County, approximately 64 miles east of Los Angeles, at the base of the San Bernardino Mountains. Originally settled as an agricultural community, the existing citrus groves, natural areas, and historic architecture lend a small town atmosphere to the city.

Redlands has a wide range of industrial, service, high-tech, and retail businesses. It is no longer reliant upon its historical agriculture industry, although many of the citrus groves still operate in the area. Major employers range from government and high-tech computer services to plastic products manufacturing, to large distribution warehouses. ESRI, a world leader in geographic information system software, is headquartered in Redlands and is one of the largest private employers in the Inland Empire. The health care industry is also a very important segment of the economy, influenced heavily by neighboring Loma Linda University Medical Center, Redlands Community Hospital, Beaver Medical Group (headquartered in Redlands), Kaiser Permanente, and the Veterans Administration Hospital
Excellent educational opportunities have played a large part in the establishment of Redlands as a desirable place to live. The highly regarded University of Redlands has been in existence since 1907. The University is unique in the region in that it houses approximately 80 percent of its students on campus. This large on-campus population along with an on campus faculty of 100 has helped to create what the Redlands Chamber of Commerce refers to as an “Ivy League” quality campus.

According to the California State Department of Finance, the 2010 census figures report the population to be 68,747, which represents an increase of just 8.1% over the 2000 population figures. More recent figures show the January 2025 population at 73,488, which reflects continued population growth of 6.453% since the 2010 census. This relatively slow rate of growth is due in part to a history of slow-growth initiatives passed by the city. While residential growth has, at times, proved somewhat difficult in Redlands, most local area brokers / agents agree there is no market resistance to developing commercial, industrial, or residential property within the city.

Recent new construction within Redlands includes a wide variety of property types that include retail, multi-family, industrial along with a limited amount of new office space.

Group Single Single Two to Mobile Vacancy
City Total Household Qtrs Total Detached Attached Four 5+ Units Homes Occupied Rate Redlands 73,488 70,998 2,490 28,318 18,132 1,304 3,122 4,711 1,049 26,863 5.1% Population Housing Units
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Neighborhood Description
Neighborhood Built Up ...... 90% Current Vacancy..... 5% Maintenance/Condition...... ..........Average
Property Compatibility ....... ..........Average
Appeal/Appearance .......... .........Average
Protection/Adverse Influence .......Average
Transportation/Access....... ..........Average
Police/Fire Protection ........ ..........Average
The subject property is located on the periphery of Downtown Redlands. The subject’s immediate neighborhood boundaries are roughly defined as west of University, East of Redlands Boulevard / 9th Street, and south of the I-10 Freeway. This described area is a mix of residential development with commercial / retail uses concentrated along Redlands Blvd. and to a lesser extent along Citrus Avenue. The neighborhood includes the Redlands High School together with its football stadium and baseball fields. The historic Downtown Redlands is directly to the west of the described neighborhood.

The subject property itself is located on the west side of Church Street, ½ block north of Citrus Avenue. Adjacent uses include:
• To the south is Auto Zone, which fronts on Citrus Avenue. • To the north is a small city-owned lot and older single-family residential homes. • To the west is an older single-family residential.
• To the east across Church Street, is Redlands High School.

Church Street is a lightly traveled residential street that can become congested when children get dropped off / picked up from Redlands High School. Access to the I-10 Freeway is good with on / off-ramps within one mile of the subject property itself.

Conclusion
Overall, the subject property is well located within a residential neighborhood, which is heavily influenced by the downtown area to the west and Redlands High School to the east. The neighborhood benefits from the good access to the I-10 Freeway and close proximity to the supporting commercial shopping and schools.

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NEIGHBORHOOD LOCATION MAP
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MARKET OVERVIEW
The California Association of Realtors reports the June 2026 number of sold single family home sales in the Southern California market area (Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties) were up 20.4% from last month and up

20.6% from a year ago. The average median price paid was $857,279, up slightly 1.79% from $847,680 last month and up 2.6% from June 2025’s price of $841,587.

The residential housing prices for San Bernardino County have posted modest increases of 4.5% over the past 12 months. Transactions have also increased year of year.

The California Regional Multiple Listing Service was utilized in reviewing the sales activity for the trailing 12 months (8/1/2025-8/1/2026) and includes new homes as well as resales within this immediate market area of the city of Redlands. The data search revealed 643 sales or approximately 54 sales per month. The average home size was 1,958 square feet; the average sale price was $720,493 with an average of 45 days on the market.

Statistics are as follows:

More specifically, a search of all home sales within a ½ mile radius of the subject property was completed. A total of 23 sales were located and indicate a lower average and median price point when compared to all of Redlands. Statistics for are as follows:

June 2026
Southern California 26-Jun 26-May 25-Jun Price
MTM% Chg
Price
YTY% Chg
Sales
MTM% Chg
Sales
YTY% Chg
Imperial $435,000 $417,500 $400,000 4.20% 8.70% 82.50% 69.80% Los Angeles $910,370 $838,350 $903,650 8.60% 0.70% 2.60% 6.80% Orange $1,490,000 $1,492,500 $1,470,000 -0.20% 1.40% 8.00% 12.20% Riverside $635,000 $640,000 $635,000 -0.80% 0.00% 9.50% 7.10% San Bernardino $508,080 $486,410 $482,460 4.50% 5.30% 21.10% 13.10% San Diego $1,085,000 $1,059,000 $1,025,000 2.50% 5.90% 11.60% 16.10% Ventura $937,500 $1,000,000 $975,000 -6.30% -3.80% 7.50% 19.40% Average $857,279 $847,680 $841,587 1.79% 2.60% 20.40% 20.64% Median Sold Price of Existing Single-Family Homes Sales Vacant Lot – 21 Church St. Redlands, CA 92373
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The statistics suggest that the immediate neighborhood has an older, lower price point than the larger Redlands market.

In general, the market has been cooling over time and prices plateaued in 2022 and have remained relatively stable. The 7-day median list price in Redlands is currently $757,450.

The 7-day median price per square foot is currently $378. The market plateau is seen across the price and value. The price per square foot and median listing price have been reasonably stable since mid-2022. The trend line for the price per square foot is as follows:

Individual lot sales are limited in Redlands. During the trailing 12 months, there have been 12 residential lot sales. Statistics for the 12 sales are as follows:

Interviews with Market Participants
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We interviewed market participants for this and other recent appraisal assignments to obtain their opinions on the Inland Empire market. Specific responses included the following:
• Inflationary pressure and higher interest rates continue to drag on investors and developers of individual lots as well as bulk lot / subdivisions. • Construction costs continue to be high and entitlement periods are long, which reduces the number of small investors or contractors looking to purchase individual lots for development,
• Interest rates remain high, which has made qualifying for entry level buyers difficult.

Development Potential
The development potential for the subject property is limited by its small size. As of the date of value, the subject property has no approved entitlements processed through the city of Redlands. The entitlement process is lengthy (12 to 24 months) with developers suggesting a realistic time frame for processing entitlements for a residential lot would be approximately two years.

The subject site is positioned immediately adjacent to older residential housing and across the street from the Redlands High School. Utilities are known to be available to the site. No cost estimates have been made for development of the onsite infrastructure (i.e., streets, utilities, grading, etc.)
Given the subject’s location, topography, and lot size, the site would likely support a small single home for an entry-level buyer. To determine exactly what product should be constructed goes beyond the scope of this report.

Market Conclusions
As of mid-2026, the elevated construction costs, persistently high interest rates have created an immediate negative impact on the residential real estate market and by extension the market for residential lots / land. The challenges have resulted in moderately declining land values over the past two to three years.

Most Likely Buyer
Given the subject property’s physical characteristics and development potential the most likely buyer would be a developer looking to build an entry-level residential home.

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SITE DESCRIPTION AND ANALYSIS
The subject property consists of a single parcel of land at the southwest corner of Church Street and State Street. The site was previously developed with an older tri-plex but is currently a vacant site having been cleared of all structures. The subject site is summarized as follows:

Address 21 Church St.

City, State, Zip Redlands, CA 92373
County San Bernardino
APN: 0171-089-13
Census Tract 81.00
Gross Land Area 5,355 SF 0.12 acres
Shape Rectangular
Utility Average
Dimensions ±45' x 119'
Street Frontage
Street Publicly maintained and asphalt paved
Curb/Gutters Cut stone with gutters
Sidewalks Concrete
Alley Yes - paved
Rail None
Lighting Yes
Electric Available – So. Cal Edison
Gas Available – So. Cal Gas
Water Available – Public municipality
Sewer Available – Public municipality
Property Ratings
Access Average
Street Frontage Average
Shape Average
Functional Utility Fair - narrow small site
Visibility Average
Drainage Average
Adequacy of Utilities Average
Traffic Pattern Average
119' on Church st., 45' on E State st.

SITE SUMMARY
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Entitlements / Future Development
Per public records information, the subject’s site size is 5,355 square feet, with site dimensions of ± 45’ along State Street and 119’ along Church Street. There are no known entitlements currently being processed or approved for the site.

The city planning officials offered assistance in determining the likelihood of future development. According to officials at the planning department, any future development would likely require a street dedication of ± 4’ in width along Church Street, new curb / gutter along Church Street, and the relocation of two above ground power poles along Church Street. It is an extraordinary assumption of this report, that the subject site could be developed subject to the described street dedication and offsite improvements.

The cost of the future offsites has been determined based on conversation with local contractors together with Marshall Valuation cost service:

Sidewalk: 480 SF x $15 PSF = $9,600
Curb/Gutter: 120 LF x $30 PLF = $4,800
Pavement & Street match = $5,000
Relocate two electric power poles = $40,000
Subtotal: $59,400
Profit / Contingency of 10%: $ 5,940
Total Cost of Offsites: $65,340
Rounded to: $65,000
PSF of the land: $12.14
Frontage / Exposure / Access
The subject property has ±119’ of frontage on Church St., and 45’ on E State St. Church St. is a two lane (one lane in each direction), The property is across the street from Redlands High School and adjacent Autozone. E State St. provides access to Historic Downtown Redlands. The freeway access is considered average to good with the Interstate 10 Freeway approximately 1 mile.

Zoning
According to the city planning department, the subject site is located in the Transit Village Specific Plan (SP65) with a land use designation of NG2 or Neighborhood General 2.

The Neighborhood General 2 zone enables house-form buildings that accommodate residential and office uses. New buildings are up to two stories in height and are set back from the sidewalk behind front yards. Parking is located behind buildings. New buildings match or complement prevalent building setbacks along the length of the block and complement building heights and massing of adjacent buildings or buildings across the street.

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Permitted uses include primarily administrative professional uses along with single-family residential and multi-family residential. Development standards are retained in file.

A complete zoning compliance survey has not been completed. However, based on a cursory review of the zoning ordinance, a residential use appears to be a compatible, conforming, and legal use of the site.

Zoning Map
Easements, Encroachments, and Restrictions
The appraiser was not provided with a preliminary title report to aid in the identification of easements, encroachments, or restrictions. Based on a visual inspection the property does not have any obvious adverse easements, encroachments, or restrictions that appear to impact the marketability of the property. The analysis assumes no adverse easements, encroachments, or restrictions.

Subject
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Hazardous Substances
The appraiser was not provided with a Phase I or Phase II Environmental Assessment(s).

Based on the visual inspection, the following has been noted:
- None
No underground fuel tanks are known to exist on or adjacent the site. There are no obvious spillage or significant staining from stored materials noted on site. Based on the cursory visual site inspection, the appraiser has assumed that the subject property is free from toxic and/or hazardous waste contamination.

Topography, Drainage and Soils
The subject site is relatively level and located near street grade. The appraiser is not an expert in the detection or analysis of soils problems. However, based on the visual inspection, there did not appear to be any obvious subsidence or other problematic soils conditions. The appraised value assumes the composition of the soil is adequate to support development of the site to its highest and best use.

Flood Zone
Source FEMA
Flood Zone AO
Description 1% annual chance of flood discharge
Map Panel 06071C8716H
Date 8/28/2008
Special Hazard Area Yes
Participation Regular / Eligible

FLOOD MAP
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Earthquake / Seismic Zones
The subject property is not within a California Alquist-Priolo Special Studies geographic hazard zone (i.e., an earthquake zone). However, the subject property is within five miles of at least two designated fault zones. Southern California is a maze of recorded fault zones. The subject's local area is not known to have any unusual reputation or suffer from any adverse impact associated with earthquakes.

Environmental Issues
The subject property is not covered with aquatic vegetation, nor is it located within close proximity of the ocean and is thus assumed to be out of any designated wetland area. In addition, the subject property is not known to be within a designated agricultural preserve or impacted by any government-protected species. The appraised value assumes the

SUBJECT
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subject site is unaffected by any environmental concern and can be developed to its highest and best use.

Entitlements
None
Structural Improvements
None.

Conclusions
Overall, the property benefits from its close proximity to Downtown Redlands. Given its location and size, the most likely use would be a small-lot residential development. The small size of the site will be made even more challenging with a potential street dedication and costs associated with offsite improvements, which includes the cost associated with relocating two electrical power poles.

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ASSESSOR’S PARCEL MAP
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AERIAL VIEW

SUBJECT PHOTOGRAPHS
Subject
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View of subject property from E. State St.
iew of subject property from Church St.

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SUBJECT PHOTOGRAPHS
View of subject property from Alley
Alley
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SUBJECT PHOTOGRAPHS
Looking West on E. State St.

Looking South on Church St.

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HIGHEST AND BEST USE
Highest and Best Use is defined as:
"The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value."4
The determination essentially requires two analyses. The first determines the highest and best use “as-if vacant”, while the second determines the highest and best use “as improved.”

The first analysis of the site “as if vacant” requires some basic considerations as to what uses are reasonably possible, what uses are legally permitted with respect to zoning, deed restrictions, recorded covenants, conditions, and restrictions. In addition, the analysis must review the uses that are financially supported under existing and projected market conditions. The analysis must determine what uses among the alternatives are physically possible and will be the most profitable.

The second analysis “as-improved” involves much the same determinations as is required for the “as-if vacant” analysis, but must also consider the contributory value of the existing improvements.

As Vacant
❑ Legally Permissible: According to the city planning department, the subject site is located in the Transit Village Specific Plan (SP65) with a land use designation of NG2 or Neighborhood General 2. The Neighborhood General 2 zone enables house-form buildings that accommodate residential and office uses. New buildings are up to two stories in height and are set back from the sidewalk behind front yards. Parking is located behind buildings. New buildings match or complement prevalent building setbacks along the length of the block and complement building heights and massing of adjacent buildings or buildings across the street. ❑ Physically Possible: The property’s physical size and shape are smaller than typical but are likely to be suitable for residential development. The site is generally level and positioned at or near street grade. Access to the site is adequate from publicly maintained streets and all typical utilities are available. Overall, the site is suitable for a small-lot residential use.
❑ Financially Feasible: As was presented previously in the Market Overview section of this report, high interest rates, the onset of inflation, are primary concerns of most market participants. Both rents and sales prices have generally plateaued over the 24 to 36 months. Price declines have been mitigated by the lack of available inventory. Market fundamentals would improve with a drop in interest rates. The increasing cost of construction has a negative impact on vacant land 4 Ibid, Page 50
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values and has reduced profitability. Financial feasibility is questionable under current economic conditions.
❑ Maximally Productive: Given the current volatility in the market, the maximally productive use is to hold for future small-lot residential construction. Any new construction should meet current market expectations with regard to construction amenities and should maximize site coverage according to zoning development standards.

Overall, the highest and best use as if vacant is to hold for future small lot residential development.

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VALUATION
Market Value is the present worth of all expected future net benefits accruing from ownership of real estate. The appraisal process is a systematic, orderly and logical method of collecting, analyzing and processing market data in order to make an informed judgment of the Market Value of specific real property. In order to measure the present worth of future net benefits, three appraisal methods are typically developed for processing market data into indicators of value. They are: the Cost Approach; the Sales Comparison Approach; and the Income Approach. All three are Market Approaches.

All three are interrelated because each is based on specific data collected from active participants in the real estate market. The applicability of each approach depends directly upon the nature of the market, which governs the quality and quantity of the data available.

Applicable Approaches for the Subject Property Valuation For purposes of this analysis, the analysis has relied solely on the Sales Comparison Approach.

Both the Cost Approach and the Income Approach are excluded as the least applicable approaches to value.

Exclusion of the Cost Approach is based on:
❑ There are no structural improvements. Vacant land only.

Exclusion of the Income Approach is based on:
❑ The subject property appeals primarily to small developers rather than investors.

Developers look to purchase similar land on a fee simple basis for construction purposes. This type of property is not typically purchased for its income generating capabilities.

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DIRECT SALES COMPARISON APPROACH
The Direct Sales Comparison Approach involves directly comparing the subject property to similar properties that have recently sold or are listed for sale. The Direct Sales Comparison Approach is based upon the principal of substitution. This principal states that “… The value of a property that is replaceable in the market tends to be set by the cost of acquiring an equally desirable substitute property of similar utility and desirability within a reasonable amount of time.”
A major premise of the Direct Sales Comparison Approach is that the market will determine a price for the subject property in much the same way that it determined the price of the comparable sales. Sales data similar in size, quality, and location to the subject were researched.

To determine the effect of time on the general level of sales prices, the sales were reviewed over a three-year period. The search consisted of a review of public records, published sources such as CoStar COMPS®, LoopNet®, AIR® Commercial Real Estate Association, local Multiple Listing Board, along with data and interviews provided directly by brokers and market participants active in the area.

A summary of comparable sales is located on the following page.

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Site Address Sale Date Sales Price Price
Data City Doc. # Property Rights PSF Flood Zone / Buyer / No. Days On Market Down Payment of Land (NET) SF Acres Zoning Offsites Comments Seller/Owner SUB 21 Church St. Na Na NA 5,355 0.12 SP Flood zone AO Na Redlands, CA 92373 Na Fee Simple (NG2) Utilities available City of Redlands 0171-089-13 Cash Equivalent Part. Curb/Gutter
Verification: CRMLS, Public Records
1 1024 6th St. 2/12/2026 $120,000 $18.69 6,419 0.15 R2 Flood Zone X Younis Loay Redlands, CA 92374 42263 Fee Simple Utilities available Nn Redlands LLC 0169-081-05 2 Cash No curb or gutter
Verification: CRMLS, Public Records
2 28967, Greenspot Rd 3/10/2026 $135,000 $21.10 6,398 0.15 EHV Zone X Deans Services LLC Highland, CA 92346 61828 Fee Simple East Highland Village Utilities available Garcia Ibeth M & Cesar L 1210-201-56 27 Cash Curb/gutter
Verification: CRMLS, Public Records
3 2155 N. Pershing Avenue 8/28/2025 $138,000 $20.44 6,750 0.15 RS Zone X Kemple James Sam Bernardino, CA 92405 208839 Fee Simple Utilities available Residential Credit Opport 0146-012-08 87 Cash Curb/gutter
Verification: CRMLS, Public Records
4 25604 Walker AVE 3/24/2026 $50,000 $6.94 7,201 0.17 R-1 Zone X Rodriguez Victoria San Bernardino, CA 92404 74973 Fee Simple Utilities available Milbes Juma J 0273-261-26 21 Cash None
Verification: CRMLS, Public Records
5 25604 Walker AVE n/a $60,000 $8.33 7,201 0.17 R-1 Zone X San Bernardino, CA 92404 n/a Fee Simple Utilities available Rodriguez Victoria 0273-261-26 21 Active Listing None
Verification: CRMLS, Public Records

SUMMARY OF COMPARABLE DATA
Land Area
Assessor Parcel No.

R-2 Multiple-Family Residential zoning allows for medium density multiple-family housing. Mid-block location.

Single-Family (R-1) District is intended for detached, singlefamily residential, small lot single-family detached, and mobile homes at a maximum allowable density of six DUs per gross acre. The district further establishes minimum parcel sizes of 7,200. Located at the end of a cul-de-sac and lacks offsite improvements. Surrounded by undeveloped land.

Corner site. Future development will likely require 4' street dedication, new curb/gutter/sidewalk, and relocating two power poles. Estimated cost is $65,000.

The RS zone is intended to promote the development of singlefamily detached units in a suburban setting with a minimum lot size of 7,200 SF. Previously developed site. Mid-block
location.

East Highland Village (EHV) District is intended as an area for small lot single-family residential detached housing with a maximum allowable density of six DUs per gross acre. The district further establishes a minimum parcel size of 5,000 square feet. Mid-block location. Long and narrow site.

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SALE DATA NO. 1
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SALE DATA NO. 2
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SALE DATA NO. 3
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SALE DATA NO. 4
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SALE DATA NO. 5
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COMPARABLE LOCATION MAP
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VALUATION
In order to compare the properties with the subject, there must be a common unit of comparison. The primary unit of comparison that is utilized in the Direct Sales Comparison Approach is the price per square foot of the building.

The basic elements of comparison that have been considered within this analysis include:

Transactional adjustments
• Property rights conveyed
• Financing terms
• Conditions of sale
• Expenditures anticipated after sale
• Market conditions
Property Adjustments
• Location
• Physical characteristics
• Economic characteristics
Ideally, the appraiser would make adjustments based on a paired sales analysis between the comparable properties and the subject. However, due to the limitations of the comparable data and complexities of each property, paired adjustments are not always possible. Instead, the appraiser has made most adjustments based on a combination of the appraiser's experience in the market, coupled with interviews conducted with active market participants such as brokers, buyers, and sellers.

Cost of construction is also considered as a basis for certain adjustments. In most cases, the adjustments are not meant to be exact measurements but an attempt to bracket a reasonable range of conclusions from a typical market participant.

The comparable data used in the analysis represents the best data available. An emphasis was placed first on site size, location, zoning and use. The comparable data was chosen in an attempt to “bracket” the subject property to better support the conclusion of value.

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Real Property Rights Conveyed
All the comparables utilized transferred the fee simple interest. No adjustment for property rights is warranted.

Financing Terms
All of the sales reflect cash or market financing and no adjustments are warranted.

Conditions of Sale / Economic Characteristics
None of the closed sales reported any unusual conditions of sale that warrant adjustment.

Land Data No.5 is an active listing, which warrants a downward adjustment for the anticipated negotiations between buyer and seller.

Expenditures after Purchase
Expenditures after purchase is an adjustment made to the comparables for any significant or unusual expenditure that impacted the purchase price such as items of deferred maintenance (i.e., a major roof repair), toxic or hazardous waste clean-up, curing functional obsolescence, lease-up costs to stabilized occupancy, etc.

None of the comparable sales utilized within the analysis reported any unusual expenditure and no adjustments are made.

Market Conditions (Time)
The sale data closed escrow between August 2025 and March 2026, with Land Data No.5 being an active listing.

MLS analytic data presented in the Market Overview section of the report supports that starting in late September 2022, the market exhibited signs of slowing due to interest rate increases and higher cost of capital. Construction costs have continued to increase and the volatility in the market has had a negative impact on land values. The oldest land sale occurred in August 2025 and based on a paired analysis but recognizing the analytical data provided by the MLS, no adjustment for time has been made to any of the closed sales.

Market Identity
The subject property is located in the City of Redlands. Land Data No.1 is located in Redlands and warrants no adjustment.

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Land Data No.2 is located in nearby city of Highland. This location is deemed slightly inferior and warrants an upward adjustment.

Land Data No.3, No.4 / No.5 are located in nearby San Bernardino. San Bernardino has historically been considered an inferior market area in terms of sale prices of finished homes and lots. Upward adjustments are warranted.

Exposure/Access
Sales Data No.3, No.4 / No.5 are in less conforming locations when compared to the subject. Both warrant slight upward adjustments.

Sales Data No.1 and No.2 are generally similar to the subject and no adjustment is warranted.

Site Size
The comparable data range from 6,419 SF to 7,201 SF. No adjustments are warranted.

Zoning
The subject property is zoned SP which allows for both AP and residential development.

The most likely use is that of a small lot residence. All five of the comparable properties would allow residential use. No adjustment is warranted.

Offsite Improvements
The subject property is currently improved with curb, gutters, and sidewalk in place.

However, as was presented previously, City planning officials indicated that any future development would likely require a street dedication of ± 4’ in width along Church Street, new curb / gutter along Church Street, and the relocation of two above ground power poles along Church Street. It is an extraordinary assumption of this report, that the subject site could be developed subject to the described street dedication and offsite improvements.

The cost of the future offsites has been determined based on conversation with local contractors together with Marshall Valuation cost service:

Sale Data No.1, No.2, and No.3 appear to be finished or nearly finished lots, which will not require street match or relocating power poles. As such, all three comparable properties are superior and their respective offsite costs associated with development will be significantly less compared to the subject’s. Therefore, downward adjustments are required for each. The amount of the adjustment is significant and is based on costs but tempered downward from the total costs to recognize that the comparables too will likely require some level of offsite costs.

Sale Data No.4 / No.5 is located at the end of a cul-de-sac street and lacks offsite improvements in front of the property. Although no costs are known for the development, the site will require the extension o the street together with curb, gutter, and sidewalk.

Overall, the level of needed offsite improvements is considered similar to the subject and no adjustment has been made.

Functional Utility
The subject property is narrow and small which reduces the site’s overall utility and makes any future construction more difficult.

Sale Data No.1 though 5 all have slightly superior widths and depths. All warrant downward adjustments.

Flood Zone
The subject property is located in a flood zone AO, which increases the risk of flood and the cost of future insurance premiums. All of the sale comparables are in Zone X, which has no threat of flooding and are superior to the subject. All warrant downward adjustments.

Entitlements
The subject property has no entitlements in place associated with future construction. All five of the comparable properties are similarly unentitled lots. No adjustment is warranted.

Adjustment Summary
The adjustment analysis is summarized on the following page.

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SUBJECT
21 Church St. 25604 Walker AVE
Redlands, CA 92373 Redlands, CA 92374 Highland, CA 92346 Sam Bernardino, CA 92405 San Bernardino, CA 92404 San Bernardino, CA 92404 Sale Date Na 2/12/2026 3/10/2026 8/28/2025 3/24/2026 n/a Sale Price Na $120,000 $135,000 $138,000 $50,000 $60,000 Adjusted Na $120,000 $135,000 $138,000 $50,000 $60,000
Cash Equivalent
Sale Price
Per Sq.Ft. Na $18.69 $21.10 $20.44 $6.94 $8.33
Property Rights Fee Simple Fee Simple 0.00% Fee Simple 0.00% Fee Simple 0.00% Fee Simple 0.00% Fee Simple 0.00% Adjusted
Price/Sq.Ft. $18.69 $21.10 $20.44 $6.94 $8.33
Conditions of Sale Typical Typical 0.00% Typical 0.00% Typical 0.00% Typical 0.00% Listing -10.00% Adjusted
Price/Sq.Ft. $18.69 $21.10 $20.44 $6.94 $7.50
Expenditures After Sale None None 0.00% None 0.00% None 0.00% None 0.00% None 0.00% Adjusted
Price/Sq.Ft. $18.69 $21.10 $20.44 $6.94 $7.50
Time /
Market Conditions Current 2/12/2026 0.00% 3/10/2026 0.00% 8/28/2025 0.00% 3/24/2026 0.00% n/a 0.00% Adjusted
Price/Sq.Ft. of Land $18.69 $21.10 $20.44 $6.94 $7.50
Contributory Value
Building/Site Improvements None Similar 0.00% Similar 0.00% Similar 0.00% Similar 0.00% Similar 0.00% Adjusted
Price/Sq.Ft. of Land N/A $18.69 $21.10 $20.44 $6.94 $7.50 P Market Identity Average Similar 0.00% Inferior 5.00% Inferior 10.00% Inferior 10.00% Inferior 10.00% R Exposure / Access Average Similar 0.00% Similar 0.00% Inferior 10.00% Inferior 15.00% Inferior 15.00% O Acres 0.12 0.15 0.15 0.15 0.17 0.17
P Lot Size - Sq. Ft. 5,355 6,419 0.00% 6,398 0.00% 6,750 0.00% 7,201 0.00% 7,201 0.00% E Zoning SP R2 0.00% EHV 0.00% RS 0.00% R-1 0.00% R-1 0.00% R Offsites Needs Offsite Imp. Superior -50.00% Superior -40.00% Superior -50.00% Similar 0.00% Similar 0.00% T Functional Utility Narrow / small Superior -5.00% Superior -5.00% Superior -5.00% Superior -5.00% Superior -5.00% Y Flood Zone AO X -2.50% X -2.50% X -2.50% X -2.50% X -2.50% Entitlements None None 0.00% None 0.00% None 0.00% None 0.00% None 0.00% Total Adjustment N/A -57.50% -42.50% -37.50% 17.50% 17.50% Adjusted Price / Sq.Ft. Na $7.95 $12.13 $12.78 $8.16 $8.81

ADJUSTMENT GRID
T
R
A
N
S
A
C
T
I
O
N
A
L
SALE DATA NO. 1 SALE DATA NO. 2 SALE DATA NO. 3 SALE DATA NO. 4 1024 6th St. 28967, Greenspot Rd 2155 N. Pershing Avenue 25604 Walker AVE SALE DATA NO. 5
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RECONCILIATION AND CONCLUSION OF AS-IS VALUE
Three of the five comparables warrant substantial downward adjustments due primarily to the high cost of the subject’s offsites. Overall, the comparable sales offer a general cross-section view of the immediate market and provide adequate support for the value conclusion.

Based on the investigation and analysis summarized herein, and subject to the assumptions and limiting conditions set forth in this report, our concluded As-Is Market Value of the Fee Simple Interest in the subject property, as of August 13, 2026 is:
$9.00 PSF x 5,355 SF = $48,150
$50,000 (rounded)
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ESTIMATE OF MARKETING/ EXPOSURE TIME
The estimate of the exposure time for the subject is supported by examining exposure times of similar recent sales in the market area. The estimate of the exposure time for the subject is supported by examining exposure times of similar recent sales in the market area. The comparable sales presented previously within the Sales Comparison Approach exhibited the following exposure times:

Based on these indications, together with conversations with active brokers in the market area, an Exposure Time of 6 to 12 months has been concluded for the subject property.

The conclusion of Marketing Time for the subject property is the estimate of time, going forward, that the property will require to achieve a sale. Most market participants agree that the marketing time going forward is expected to be similar to the trends set in the past 12 months due primarily to the continued sluggish economic and market conditions in the region. As such, the forecast of Marketing Time for the subject property is concluded to be similar to the previously concluded Exposure Time.

Based on the local market data, a Marketing Time of 6 to 12 months has been concluded for the subject property.

Comp. 1 Comp. 2 Comp. 3 Comp. 4 Comp. 5
386 229 87 85 49
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CERTIFICATION OF APPRAISAL
I, James G. Towers certify that, to the best of my knowledge and belief:

1. The statements of fact contained in the appraisal report, upon which the analysis, opinions, and conclusions expressed herein are based, are true and correct.

2. The reported analysis, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and is my personal, impartial, and unbiased professional analysis, opinions and conclusions.

3. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved.

4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

5. My engagement in this assignment was not contingent upon developing or reporting predetermined results.

6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

7. My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice.

8. I have made a personal inspection of the property that is the subject of this report.

9. Digital photography presented in this report has not been altered in any way that would mislead the reader.

10. I did not base, either partially or completely, my analysis and/or the estimate of value on the race, color, religion, sex, handicap, familial status, health, or national origin of either the present or prospective owners, occupants, or users of the subject property or of the present or prospective owners, occupants, or users of the properties in the vicinity of the subject property.

11. I am competent to perform this appraisal assignment, by virtue of previous experience with similar assignments and/or proper research and education as to the specific property type being appraised.

12. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

13. Ryan Towers (CA#3014518) has provided professional assistance in this appraisal assignment. Involvement in the appraisal assignment includes, but is not limited to, the identification and inspection of the subject property and comparable data, research into the physical and economic factors affecting the subject property, data research, and the analyses applied to arrive at the opinions and conclusions herein. James Towers signs the certification in each report as principal appraiser, acknowledges the contributions of Ryan Towers in the certification (Standards Rule 2-3), and takes full responsibility for the contents of the report (Standards Rule 2-2(a) (vii), (b) (vii), or (c) (vii), as applicable).

14. I have not performed a prior appraisal(s) or other service that involved the subject property during the threeyear period immediately preceding the agreement to perform this assignment.

15. I certify that, to the best of my knowledge and belief, the reported analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

16. I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

17. This appraisal is intended to comply with the OCC’s amended Appraisal Rule, effective June 7, 1994, as published in the Federal Register, Volume 59, No. 108, and with the Interagency Appraisal and Evaluation Guidelines, dated December 10, 2010.

18. As of the date of this report, I James G. Towers have completed the continuing education program for Designated Members of the Appraisal Institute.

By: August 23, 2026
James G. Towers, MAI, AI-GRS, CCIM, CA BREA Certification #AG003282 Date Vacant Lot – 21 Church St. Redlands, CA 92373
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QUALIFICATIONS OF APPRAISER – JAMES G. TOWERS, MAI, AI-GRS, CCIM I James G. Towers am self-employed and doing business as Towers & Associates, a full-service real estate appraisal and consulting firm. I specialize in the completion of narrative as well as approved form appraisals of all types of commercial, industrial, and residential properties. I have extensive experience in appraisal and consulting projects ranging from single-family residential homes to investment-grade office buildings, shopping centers, industrial buildings, business parks, apartment buildings / complexes, residential subdivisions, and master-planned communities. Appraisals have been performed throughout Southern California on performing and non-performing real estate at various stages of development.

My primary geographical area for single-family, small residential income and small commercial/industrial properties is typically confined to the Inland Empire (Riverside and San Bernardino Counties). Larger investment grade properties are appraised throughout Riverside, San Bernardino, Los Angeles, and Orange Counties.

PROFESSIONAL DESIGNATIONS AND AFFILIATIONS
California Certified General Appraiser – BREA Appraiser Identification Number AG003282. Expiration Date is June 7, 2028.

Designated Member of the Appraisal Institute (MAI & AI-GRS); Account # 102341 Designated Member of the CCIM Institute (CCIM); Pin #: 23927 California Licensed Real Estate Broker – DRE Identification Number 01342640

EXPERIENCE
TOWERS & ASSOCIATES – Redlands, California
Self-Employed Real Estate Appraiser and Consultant
January 1994 to present
WELLS FARGO BANK – Los Angeles, California
Review Appraiser - Real Estate Technical Services
May 1992 to January 1994
SECURITY PACIFIC BANK / BANK OF AMERICA – Riverside, California Assistant Vice President – Riverside Commercial Appraisal November 1989 to May 1992
TOWERS APPRAISAL SERVICE – Beaumont, California
Self-Employed Real Estate Appraiser and Consultant
March 1986 to November 1989
TOWERS APPRAISAL SERVICE – Beaumont, California
Staff Appraiser
February 1982 to March 1986

EDUCATION
CALIFORNIA STATE UNIVERSITY – San Bernardino, California Graduated 1988, with Bachelor of Arts degree, Business Administration with a concentration in Economics Vacant Lot – 21 Church St. Redlands, CA 92373
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Appraiser Qualifications Continued

SUCCESSFULLY COMPLETED PROFESSIONAL COURSES
Course Provider
Real Estate Appraisal Principles AIREA
Residential Valuation AIREA
Capitalization Theory and Techniques Part A AIREA
Capitalization Theory and Techniques Part B AIREA
Case Studies in Real Estate Valuation Analysis AIREA
Standards of Professional Practice Appraisal Institute
Report Writing and Valuation Analysis Appraisal Institute Condemnation Appraising – 710 Appraisal Institute
Real Estate Appraisal X463 University of California Riverside Real Estate Principles Mt. San Jacinto College
Real Estate Practice Anthony Schools
Real Estate Legal Aspects Anthony Schools
Tools & Techniques for Managing an Appraisal Practice McKissock National USPAP Update Appraisal Institute
California Laws & Regulations McKissock
Appraising the Oddball McKissock
Fair Housing McKissock
Relocation McKissock
Technology for Today’s Appraiser McKissock
The Cost Approach McKissock
Business Practices and Ethics Appraisal Institute
Advanced Sales Comparison & Cost Approach Appraisal Institute Advanced Market Analysis and Highest & Best Use Appraisal Institute Review Theory – General Appraisal Institute
Financial Analysis for Commercial Investment RE CCIM Institute Market Analysis for Commercial Investment RE CCIM Institute User Decision Analysis for Commercial Investment RE CCIM Institute Investment Analysis for Commercial Investment RE CCIM Institute Preparing to Negotiate CCIM Institute
Ethics 2020 CCIM Institute

PARTIAL LIST OF CLIENTS PREVIOUSLY SERVED
 Wells Fargo Bank
 Bank of the West
 Citizens Business Bank
 Hanmi Bank
 U.S. Bank
 Bank of America
 City National Bank
 Union Bank
 Provident Savings Bank
 Citibank
 First Security Bank
 Chase Bank
 California Federal Bank
 Commercial Capital Bank
 Manufacturers Bank
 Inland Valley Credit Union
 Arrowhead Credit Union
 American Business Bank
 Banc of California
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ADDENDUM
Engagement Letter
Appraiser’s License
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City Council AGENDA ITEM NO. M1.

DATE: October 6, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Individual Council Member Report on Activities for September 2026 from Mayor Pro Tem Shaw (City Clerk Donaldson)
DISCUSSION:

Mayor Pro Tem Shaw has requested to include this report on the agenda for recording purposes. The report does not require City Council approval.

Attachments
September_2026_Council_Activities.pdf
September 2026 Council Activities
Mayor Pro Tem Marc Shaw
o Attended Redlands Chamber of Commerce Rise and Shine
o Spoke at Plymouth Village regarding city events and developments o Attended the League of Cities Annual Conference in Anaheim as the City’s Voting Delegate
o Attended the CONFIRE Board of Directors meeting
o Met with consultants working on City Manager and City Attorney performance evaluations
o Meeting with City Manager to discuss ongoing issues

Redlands City CouncilOctober 6, 2026

Redlands City Council
October 6, 2026