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ENVIRONMENTAL REVIEW FUNDING AGREEMENT This funding agreement ("Agreement") is made and entered into this 5`i` day of December, 2017, by and between the City of Redlands, a municipal corporation (hereinafter "City") and Newland Homes, LLC, a California 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 applications with City for Agricultural Preserve Removal No 125, Zone Change No 458, Demolition No 295, Conditional Use Permit No 1078 and Tentative Tract Map No 20126 The applications request to change the zone designation from A-1 (Agricultural) and R-E (Residential Estate) to PRD/R-E (Planned Residential Development/Residential Estate) District, and subdivide 39 84 acres into 105 lots for future development with single-family residences and 5 common lettered lots The project includes an Option Agreement, Purchase and Sale Agreement, and the creation of a farming easement for a City owned citrus grove (APN 0168-161-07) The project site is located north of Lugoma Avenue and east of Judson Street (APN 0168-161-04,05,06,07) in the City of Redlands (the "Project"), 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 Sections 15162 and 15164 of the CEQA Guidelines, and WHEREAS,in accordance with City's Guidelines implementing CEQA,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 subsequent environmental studies and documents permitted or required by 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 Newland Homes, LLC, agree as follows AGREEMENT Section 1 Funding Obligation Within ten(10) days of the date of written request of City, Applicant shall deposit the sum of thirty seven thousand, four hundred twenty seven dollars and twenty two cents ($37,427 22) (the "Deposit") with City to engage the consultant who will commence work on the Environmental Documents The cost of the Environmental Documents is estimated to be thirty seven thousand, four hundred twenty 1