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FUNDING 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 lAemo\Agreements\Meritage Homes_ Developer Funding Agreement FY22-01l6.doex-la