HomeMy WebLinkAboutContracts & Agreements_178-2020MLC Holdings Developer Funding Agreernmt.FY20-0024
FUNDING AGREEMENT FOR PROFESSSIONAL ENVIRONMENTAL REVIEW
SERVICES FOR A PRIVATE PROJECT
This funding agreement for professional environmental review services ("Agreement") is.
made and entered into this 12th day of August, 2020 ("Effective Date"), by and between the City
of Redlands, a municipal corporation (hereinafter "City") and MLC Holdings, Inc., an incorporated
company, (hereinafter "Applicant"). City and Applicant are sometimes individually referred to
herein as a "Party" and, together, as the "Parties."
RECITALS
WHEREAS, Applicant has filed an application with City for a proposed Specific Plan
Amendment, Specific Plan, Tentative Tract Map and Commission Review and Approval, on four
parcels totaling 58 acres. The project would result in the creation of 317 single family residential
.lots with a 12-acre public park (the "Project") located north of Domestic Avenue and
approximately 700 feet west of Texas Street (APNs: 0167-031-02-0000, 0167-031-03-0000, 0167-
031-04-0000, 0167-031-05-0000, 0167-031-06-0000, 0167-031-07-0000, and 0167-031-16-0000)
which requires environmental review pursuant to the California Environmental Quality Act
("CEQA"); and
WHEREAS, City, as Lead Agency, has determined that an Initial Study (the "IS") for the
Project will be required pursuant to section 15063 of the State CEQA Guidelines; and
WHEREAS, the IS will be prepared by a consultant approved by and under contract to
City; and
WHEREAS, by executing this Agreement, Applicant expressly agrees to advance payment
for all costs and expenses the City incurs in the preparation of the IS related to Applicant's Project
and for any associated investigations, environmental studies, and documents permitted or required
by CEQA or other federal or state law in connection with the processing of Applicant's Project
(collectively, the "Environmental Documents");
NOW, THEREFORE, in consideration of the mutual promises contained herein, the City
of Redlands and MLC Holdings, Inc. agree as follows:
AGREEMENT
Section 1. Funding Obli ag tion. Within ten (10) days of the date of written request of City,
Applicant shall deposit the sum of one hundred twenty four thousand four hundred seventy nine
dollars ($124,479) (the "Deposit") with City to engage a professional consultant who will
commence work on the Environmental Documents. The present estimated cost of the
Environmental Documents is estimated to be one hundred thirteen thousand one hundred sixty
three dollars ($113,163), and the contract administration fee is set at eleven thousand three hundred
sixteen dollars ($11,316). Applicant acknowledges that Applicant is obligated by this Agreement
to pay to City the full, actual cost for the preparation of the Environmental Documents, as deemed
reasonable or necessary by City, to ensure the legal sufficiency of the Environmental Documents.
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MLC Holdings Developer Funding Agreement.FY20-0024
The Deposit will be applied towards the actual total cost of the Environmental Documents.
Applicant shall thereafter make payments to City for the balance of City's costs for preparation of
the Environmental Documents within ten (10) days of the date City submits written invoices to
Applicant.
Section 2. Compliance Required. Applicant acknowledges that City may require Applicant
to make additional payments, supply data and information to determine whether Applicant's
Project may have a significant effect on the environment, and to assist City and the consultant in
preparing the environment documents. Applicant shall promptly comply with all such requests by
City.
Section 3. Failure to Comply. If, at any time, Applicant unreasonably delays in advancing
monies as requested by City, paying any invoice from City when due, or failing to provide City
with information or data requested pursuant to Section 2 hereof, such unreasonable delay shall
suspend the running of the time periods described in State CEQA Guidelines sections 15107 and
15108 for the period of such unreasonable delay. Alternatively, Applicant acknowledges and
agrees that City may, without liability to Applicant, disapprove the Project for Applicant's delay
in satisfying City's requirements.
Section 4. Notices. 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, if continued 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
Brian Desatnik, Director
Development Service Department
35 Cajon Street, Ste. 20
P.O. Box 3005 (mailing)
Redlands, CA 92373
bdesatnik@cityofredlands.org
(909)798-7555
Ap lip earit
Aaron Talarico, Director of Forward Planning
MLC Holdings, Inc.
5 Peters Canyon Road Suite 310
Irvine, CA 92606
aaron.talarico@mlcholdings.net
949-372-3309
Section 5. Attorneys' Fees. 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 costs and
any other relief, be entitled to recovery of its reasonable attorneys' fees, including fees for use of
in-house counsel by a Party.
Section 6. Entire Agreement/Amendinent. This Agreement represents the entire agreement
and understanding between the Parties as to the matters contained herein, and any prior
negotiations, proposals or verbal agreements are superseded by this Agreement. Any amendment
to this Agreement shall be in writing, approved by the City Council of City and signed by City and
Applicant.
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MLC Holdings Developer Funding Agreement.FY204)024
Section 7. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of California.
Section S. Defense and Indemnity. Applicant shall defend, indemnify and hold harmless
City, and its elected officials, officers, employees and agents, from and against any and all actions,
claims, demands, lawsuits, losses and liability for damages to persons or property, including costs
and attorneys' fees, that may be asserted or claimed by any person, firm, entity, corporation,
political subdivision or other organization arising out of or in connection with City's processing
and approval or denial of Applicant's Project and the Environmental Documents.
Section 9. No Third Party Beneficiar. Applicant expressly acknowledges and agrees that
City's contract with the consultant to prepare the Environmental Documents for Applicant's Project
is for the benefit of the public and undertaken in compliance with City's obligations under CEQA,
and is not for the benefit of Applicant.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
Effective Date of this Agreement.
CITY OF REDLANDS
BY:
�V
Janice McConnell,
Assistant City Manager
ATTEST:
Donaldson,
MLC HOLDINGS, INC
By:
'4�� 27—;-�' --
-Naron Talarico
Director of Forward Planning
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