HomeMy WebLinkAboutAGR-7850.1 - MILAN REI X, LLC. - FIRST AMENDMENT TO MOU - BUILDER'S REMEDY TOLLING AGREEMENTSDocusign Envelope ID:3CEAF3F0-6B02-850E-81 CC-BCA9EE02C7F0
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AGR-7850. 1 Ui
FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING
RECITALS
WHEREAS, on July 22, 2025 (the "Reference Date"), the City of Orange ("City") and
Milan REI X, LLC ("Developer") (collectively, "Parties") entered into a Memorandum of
Understanding ("MOU") regarding the development of various Developer properties; and
WHEREAS, among other things, Section 1.4 of the MOU provides that upon a request
from the Developer, the existing Builder's Remedy Tolling Agreements between the City and
Developer shall be extended for at least six (6) months from July 22, 2026, upon the City's
determination that such extension is in the best interest of the City; and
WHEREAS,the MOU established a target date of July 1, 2026, for the City to use its best
efforts to approve Developer's 30-unit residential project(the"Residential Project")and to process
and approve, as appropriate and subject to applicable law, any necessary permits for development
of the Developer's Sully-Miller site into public open space (the "Open Space Project") (the
Approval Deadline"); and
WHEREAS, Developer has requested an initial thirty(30) day extension of the Builder's
Remedy Tolling Agreements pursuant to Section 1.4 of the MOU,and the City has determined that
granting such limited extension is in the best interest of the City; and
WHEREAS,the Parties desire to implement an initial limited thirty(30)day extension of
the Builder's Remedy Tolling Agreements, while preserving the City Manager's authority to
approve additional thirty (30) day extensions, provided that the total extension period shall not
exceed six (6) months from July 22, 2026, and provided further that any such extension remains
in the best interest of the City.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
contained herein,and for other good and valuable consideration,the receipt of sufficiency of which
are hereby acknowledged, the Parties agree as follows:
1. Builder's Remedy Tolling Agreements Extension. The Builder's Remedy Tolling
Agreements, currently scheduled to expire on July 22, 2026, are hereby extended 30
days until August 21, 2026, subject to applicable law and without limiting the City's
obligation to process applications in accordance with state housing law.
2. Approval Deadline Extension. The Approval Deadline is hereby extended until August
21, 2026. The Parties acknowledge that maintaining a period of time between the
Approval Deadline and expiration of the Builder's Remedy Tolling Agreements is
intended to allow for administrative coordination and implementation of approvals,
consistent with applicable law.
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3. City Authority to Execute Future Extensions. In addition to the initial thirty (30) day
extension provided herein,the City Manager is hereby authorized to approve additional
extensions of the Builder's Remedy Tolling Agreements and the Approval Deadline in
increments of thirty(30) days each,provided that:
i)the total extension period shall not exceed six (6)months from July 22, 2026;
ii) the City Manager determines that the requested extension is in the best interest of
the City;
iii) Developer provides a written status update identifying the status of the TTM
Project permits, the Residential Project approvals, the Open Space Project approvals,
and all required regulatory clearances associated with the Sully Miller Property; and
iv) such extension does not materially impair the City's ability to enforce the terms
and performance expectations established under the MOU.
No extension beyond the six (6) month period contemplated in Section 1.4 of the
original MOU shall be permitted without formal City Council approval. Each extension
approved by the City Manager shall be in writing, shall include a determination based
on Developer's demonstrated progress under the MOU.
4. No Other Changes. Except as expressly modified herein,all other terms and conditions
of the MOU shall remain unchanged and in full force and effect. Nothing in this
Amendment shall be construed to limit or otherwise affect the City's obligations under
applicable law, including without limitation Government Code Section 65589.5. The
City shall continue to process the residential project in accordance with applicable law.
Nothing herein shall be deemed to grant any land use approval, vested right, or
development entitlement, or to limit the City's exercise of its police powers, land use
authority, or regulatory discretion.
MILAN REI X,LLC,A California limited liability company
DocuSigned by:
By: ati ii6t4,c,r klaSbl.1.
oJuwau oao
Christopher Richelson
President of its Managing Agent
CITY OF ORANGE, a municipal corporation
DocuSigned by:
Danielf‘ nufeuldkAller, Mayor
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ATTEST:
Signed by:
DB BEDCSn Er43Xr.
Pamela Coleman, City Clerk
APPROVED AS TO FORM:
by:
EDocuSigned3k/ A 41ntMO,/i
NathIlie` Moriu an, City Attorney 4
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