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AGREEMENT BETWEEN THE CITY OF REDLANDS AND THE REDLANDS HISTORICAL MUSEUM ASSOCIATION, INC FOR THE GRANT OF FUNDS FOR IMPROVEMENTS TO THE PROPOSED "MUSEUM OF REDLANDS" This agreement ("Agreement") for the grant of City funds for improvements to the proposed "Museum of Redlands" is made and entered into this 19th day of April, 2022 ("Effective Date"), by and between the City of Redlands, a California municipal corporation and general law city ("City"), and the Redlands Historical Museum Association, Inc., a 501(c)(3) nonprofit corporation ("Grantee") City and Grantee are sometimes individually referred to herein as a "Party" and, together, as the "Parties." RECITALS WHEREAS, Resolution No 7445 of the City Council of the City of Redlands ("City Council") designated the Board of Trustees of City's A.K. Smiley Public Library as the administrator of the proposed "Museum of Redlands" and established interim and permanent improvement, repair, maintenance and operational obligations for City and the Board of Trustees, both before and after the City might obtain title to the property located at 700 Brookside Avenue, and WHEREAS, the City Council is in receipt of a grant proposal submitted by the Redlands Historical Museum Association, Inc. which requests funding for the completion of certain improvements associated with the construction of the proposed "Museum of Redlands," and WHEREAS, City has found and determined that the provision of funds to Grantee for the improvements to the "Museum of Redlands" serves a public purpose for the reason that the funds will facilitate the opening of a historical museum that will provide cultural enrichment to the Redlands community and contribute to the City's goals of enhancing tourism and economic development; and WHEREAS, on February 15, 2022, the City Council authorized the grant of One Million Dollars ($1,000,000) ("Grant Funds") for the improvements to the "Museum of Redlands," NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows AGREEMENT Section 1. Grant. City hereby grants to Grantee the sum of One Million Dollars ($1,000,000) (the "Grant Funds") pursuant to the request of Grantee set forth in its grant proposal, which is attached hereto as Exhibit "A" and incorporated herein by this reference City shall disburse the Grant Funds to Grantee on or before May 1, 2022 Section 2. Restrictions on Use of Funds. Grantee warrants and represents that the Grant Funds shall not be used for any activity that would violate City, state, or federal statutory or decisional law, and shall be expended solely for improvements Grantee proposes to make to the "Museum of Redlands," as more particularly described in Exhibit "A" (the "Improvement Work") 1 L:\ca\djm\Agreements\Redlands Historical Museum Grant Agreement.FY21-0102.docx jn