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HomeMy WebLinkAboutContracts & Agreements_156-2025REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF REDLANDS AND MERITAGE HOMES OF CALIFORNIA INC. FOR THE REIMBURSEMENT OF FUNDS FOR IMPROVEMENTS TO THE PROPOSED "COYAZO PARK" WITHIN THE BERGAMOT SPECIFIC PLAN AND TENTATIVE TRACT MAP NO. 20336 This agreement ("Agreement") for the reimbursement of funds for improvements to the proposed "Coyazo Park" is made and entered into this 15th day of July 2025 ("Effective Date"), by and between the City of Redlands, a California municipal corporation and general law city ("City"), and Meritage Homes of California, Inc., a California corporation ("Meritage"). City and Meritage are sometimes individually referred to herein as a "Party" and, together, as the "Parties." RECITALS WHEREAS, Resolution No. 8254 of the City Council of the City of Redlands ("City Council") approved the Bergamot Specific Plan, which includes an 11.84 public sports park that will be dedicated to the City upon completion (the "Sports Park"); and WHEREAS, the City has requested that Meritage build and incorporate a Crow's Nest Building shown on the plans and specifications attached as Exhibit "A" and incorporated herein by this reference (the "Crow's Nest") within the Sports Park to support youth recreational football league operations that have historically shared space with baseball programs at a site designed for baseball; and WHEREAS, the Crow's Nest was not contemplated by the approved Bergamot Specific Plan; and WHEREAS, City has found and determined that the provision of reimbursement funds to — Meritage for the improvements to "Coyazo Park" serves a public purpose for the reason that the funds will facilitate the operations of youth football and provide better distribution of field resources to local youth sports organizations, enhancing the quality of life of local youth; and WHEREAS, Meritage is willing to incorporate the Crow's Nest within the Sports Park as requested by the City upon and subject to the terms and conditions of this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: Section 1. Reimbursement. City hereby reimburses to Meritage the sum of Eight Hundred Thousand Dollars ($800,000) (the "Reimbursement Funds") for the construction of the Crow's Nest and any supplemental improvements associated with its construction. These supplemental improvements include but are not limited to the following: remedial grading, staking & surveying, utility stubs, bid administration, and other improvement required in the construction I I:\cmo\Agreements\Meritage Homes Coyazo Park Agreement (Crows Nest) FY25-0092 (v.4).doex-ms of the Crow's Nest. City shall disburse Reimbursement Funds to Meritage upon the completion of the Crow's Nest building. Meritage shall have obligation to complete the Crow's Nest building prior to the actual receipt of the Reimbursement Funds from the City. Section 2. Conditions to Disbursement. Payments under this Agreement shall be disbursed subject to the following conditions and procedures. The City shall make a one-time reimbursement payment to Developer in the amount of Eight Hundred Thousand Dollars ($800,000) upon the satisfaction of all of the following conditions: 1. Completion of Improvements: Developer shall complete construction of the Crow's Nest in accordance with the plans and specifications approved by the City and attached as Exhibit `A', and in compliance with all applicable laws, codes, and City standards. 2. City Inspection and Acceptance: Developer shall notify the City in writing upon substantial completion of the Improvements. The City shall, within ten (10) business days of such notice, conduct a final inspection. Reimbursement shall not be issued unless and until the City has provided written confirmation of its acceptance of the Improvements as complete and satisfactory. 3. Submittal of Documentation: Developer shall submit the following to the City prior to disbursement: • A final cost summary of the Improvements • Copies of all relevant invoices and proof of payment • Lien releases from all contractors, subcontractors, and material suppliers • Any required as -built plans 4. No Outstanding Defaults: Developer shall not be in default under any agreement with the City related to the development project at the time of reimbursement. City acknowledges and agrees that if Meritage determines that the Funds are insufficient to cover 100% of the cost of the Improvement Work, including without limitation, as a result of any changes to the plans and specifications set forth on Exhibit A that are required by the City, then Meritage shall have the right to require that the City, as a condition to any obligation of Meritage to cause any of the Improvement Work to be undertaken, either: (a) make an additional reimbursement of funds to cover any overage subject to the same disbursement terms as above; or (b) agree to such modifications of the plans and specifications as are needed so that the Funds will cover the Improvement Work. If the City does not, for any reason, make either election within a reasonable period of time, then Meritage shall be entitled to, and the City will accept, a return of the Reimbursement Funds as provided above, in which event Meritage shall not be required to undertake any of the Improvement Work. Section 3. Compliance with California Labor Code. In performing the Improvement Work, Meritage shall comply with all applicable federal, state, and local laws, including, but not limited to, any applicable provisions of the California Labor Code. City makes no representation to Meritage as to whether the Improvement Work constitutes a "Public Work" as that term is defined by California Labor Code section 1720, and Meritage acknowledges and agrees that Meritage shall be solely responsible and liable for the determination of whether such Improvement Work constitutes a "Public Work." Meritage further acknowledges and agrees that City's sole obligation under this Agreement is to provide Meritage with the Reimbursement Funds, and that 2 I9cmo\AgreememsWeritage Homes Coyne Park Agreement (Crows Nest) FY25-0092 (v.4).docx-ms City is not an awarding authority for any contract entered into by Meritage for the Improvement Work, nor is City otherwise undertaking any "Public Work" for purposes of California Labor Code section 1781. Meritage shall defend, indemnify, and hold harmless City and its elected and appointed officials, officers, and employees from and against any and all losses, damages, costs, claims, causes of action and liability based upon the assertion that City or Meritage has failed to comply with any applicable provision of the California Labor Code in connection with Meritage's undertaking of the Improvement Work. Section 4. Reporting and Accounting Requirements. A. Meritage shall maintain true, proper, and complete books, records and accounts (collectively, "Books and Records") in which shall be entered fully and accurately all transactions taken with respect to the Improvement Work and the expenditure of the Funds. Meritage shall maintain the Books and Records in accordance with Generally Accepted Accounting Principles. B. City reserves the right to designate its employee representatives, or its contracted representatives, with a Certified Public Accounting firm, who shall have the right to audit Meritage's Books and Records as they relate to the Reimbursement Funds, and to examine any cost, payment, claim or other records or supporting documentation relating to Meritage's use and expenditure of the Funds. Any such audit shall be undertaken by City or its representatives at the City's sole cost and expense, at mutually agreed upon reasonable times, and in conformance with generally accepted auditing standards. Meritage agrees to fully cooperate with any such audit. C. City's right to audit shall extend for a period of five (5) years following the date of City's provision of the Reimbursement Funds to Meritage. Meritage agrees to retain all records and documentation relating to the Reimbursement Funds and Meritage's expenditure of the Reimbursement Funds for such period. _ Section 5. Meritage Independence. In the performance of this Agreement, Meritage, and the employees and agents of Meritage, shall act in an independent capacity and are not officers, employees, or agents of City. The manner and means of performing the Improvement Work are under the control of Meritage, except to the extent they are limited by statute, rule, or regulation and the express terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Meritage, or any of Meritage's employees or agents, to be the employees or agents of City. Meritage shall have the responsibility for, and control over, the means of performing the Improvement Work. Similarly, no agency, partnership, joint venture or other relationship is intended hereby, and neither Party shall be deemed the agent, servant, employee, partner, or joint venturer of the other Party. In addition, by virtue of this Agreement, there shall not be deemed to have occurred a merger or any joint enterprises between City and Meritage. Section 6. Prohibition against Transfers. Meritage shall not assign or transfer this Agreement, directly or indirectly, by operation of law or otherwise, without the prior written consent of City. Any attempt to do so without such written consent of City shall be null and void. Section 7. 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 3 L\emo\AgreementsWeritage Homes Coy=o Pwk Agreement (Crows Nest) FY25-0092 (v.4).docx-ms (i) on the date of delivery in person; (ii) on the date of delivery after deposit in first class certified mail, with return receipt requested; or (iii) on the date of delivery if deposited with an overnight courier; 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 OF REDLANDS MERITAGE HOMES OF CALIFORNIA, INC. City Clerk 5 Peters Canyon Road, Suite 310 City of Redlands Irvine, California 92606 35 Cajon Street Attention: Division President P.O. Box 3005 (mailing) with a copy to: Redlands, CA 92373 Meritage Homes of California, Inc. jdonaldson@cityofredlands.org 18655 North Claret Drive, Suite 400 (909)798-7531 Scottsdale, AZ 85255 Attention: CA Regional Counsel Section 8. General Considerations. A. Waiver. A waiver by either Party of any breach, or of any term, covenant, or condition contained herein, shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition contained herein, whether of the same or a different character. B. Entire Agreement. This Agreement represents the full and complete understanding of every kind or nature whatsoever between the Parties with respect to its subject matter, and all preliminary negotiations and agreements of whatsoever kind or nature relating to the same are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. C. Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of the Agreement or any other rule of improvements which might otherwise apply. The Section and subsection 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. D. Amendment. This Agreement may be modified or amended only by a written document executed by both Meritage and City. E. Severability. If any term or provision of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. F. Controlling Law and Venue. The Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws IAcmo\Agreemcros\Merifage Homes Coyazo Park Agreement (Crows Nest) FY25-0092 (v.4).docx-ms 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. G. Equal Opportunity Employment. Meritage represents that it is an equal opportunity employer, and it shall not discriminate against any contractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. H. Attorne 's Fees. In the event any action is commenced to enforce or interpret any term or provision of this Agreement, the prevailing Party in such action, in addition to costs and any other relief, shall be entitled to the recovery of its reasonable attorneys' fees, including fees for a Party's use of in-house counsel. 1. 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, shall be deemed an original, but all such counterparts shall constitute one and the same instrument. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of its Effective Date. CITY OF REDLANDS Mario Saucedo, Mayor ATTEST JeaiiW Donaldson, City Cleric MERITAGE HOMES OF CALIFORNIA, INC., a California corporation Nicholas Emsiek, Division President s L: Crno\AgreementsWeriutge Homes Coyazo Park Agreement (Crows Nest) FY25-0092 (v.4).docx-ms EXHIBIT "A" Plans and Specifications [Attached] 6 I:\cmo\Agrcements\Meritage Homes Coyazo Park Agreement (Crows Nest) FY25-0092 (v.4).doex-ms fN _ ,p��v �/p.�fi1/ D W }°}W®9}ov}=v` W{3�3a sislaas1 fill sBgBSSe§Rg9r®He®R[&(HZ""�. 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