TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Wayne W. Winthers, Interim City Attorney
1. SUBJECT
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Memorandum of Understanding between City and Milan REI X, LLC.
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2. SUMMARY
This Memorandum of Understanding is a roadmap describing the future development of the property currently owned by Milan in the east Orange area commonly known as Sully Miller, consisting of two residential projects and a large open space area.
3. RECOMMENDED ACTION
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Approve the Memorandum of Understanding with Milan REI X, LLC; and authorize the City Manager and City Clerk to execute on behalf of the City.
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4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Enhance Economic Development and Achieve Fiscal Sustainability.
6. DISCUSSION AND BACKGROUND
Milan owns real property in east Orange identified as: (i) the "TTM Property" which is north of Santiago Creek adjacent to Mabury Ranch; (ii) Sully Miller pit property; and (iii) 6146 E. Santiago Canyon Road (the current Arena site).
The TTM property is currently entitled to build 22 single family homes and the Memorandum of Understanding (MOU) confirms that. It is contemplated that the Sully Miller site will be transformed into open space through an agreement with a third party, Landify, who will import clean fill and leave the property in a condition as agreed upon between Landify, Milan, and the City. The Arena property will be developed with a 30 unit residential project, utilizing state Density Bonus law.
The MOU does not mandate any City approvals, the City is agreeing to use its best efforts to process all applications and permit requests as fast as possible and apply all applicable State and City reviews and laws. Milan states its intention to dismiss its Builders Remedy applications for the Sully Miller and Arena sites when, and if, all applications and permits are approved by June 30, 2026.
7. ATTACHMENT
* Memorandum of Understanding betw...
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