HomeMy WebLinkAboutContracts & Agreements_17C-2023FUNDING 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 27th day of January, 2023 ("Effective Date"), by and between the City
of Redlands, a municipal corporation (hereinafter "City") and MLC Land Holdings, Inc., an
Arizona Corporation (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 TTM No. 20528
Project is proposed to include the development of 117 motor court homes distributed along two
new central private driveways/fire lanes ("Street A" and "Street B"), a water quality basin, and
seven open space areas totaling 3.18 acres. This Project has a General Plan land use of
Commercial/Industrial and is zoned Industrial (EV/SRP) by the East Valley Corridor Specific Plan
and is (the "Project") located on approximately 14.62 gross acres located at 1160 Pioneer Avenue
Assessor Parcel No's. 0167-06-101 and 0167-06-103which 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 Land Holdings, Inc. agree as follows:
AGREEMENT
Section 1. Funding Obligation. Within ten (10) days of the date of written request of
City, Applicant shall deposit the sun of one hundred fifty-two thousand five hundred eighty-one
dollars ($152,581) (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 thirty-eight thousand seven hundred ten
dollars ($138,710), and the contract administration fee is set at thirteen thousand eight hundred
seventy-one dollars ($13,871). 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
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Documents. 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 enviromnent, 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 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
Brian Desatnik, Director
Development Service Department
35 Cajon Street, Ste. 20
P.O. Box 3005 (mailing)
Redlands, CA 92373
bdesatiiik@cityofrediands.org
(909) 798-7555
APPLICANT
Aaron Talarico, Vice President
MLC Land Holdings, Inc.
5 Peters Canyon Road, Suite 310
Irvine, CA 92606
aaron.talarico@mlcholdingsnet
(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/Amendment. 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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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 Paj:!y Beneficiary . 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.
fN WITNESS WHEREON, the Parties hereto have executed this Agreement as of the
Effective Date of this Agreement.
CITY OF REDLANDS
Charles M. Duggan, Jr.,
City Manager
ATTEST:
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nne Donaldson, City Clerk
MLC Land Holdings, Inc.
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Aaron Talarico
Vice President
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