TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Nathalie Adourian, City Attorney
1. SUBJECT
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Second Amendment to Memorandum of Understanding with Milan REI X, LLC.
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2. SUMMARY
On July 22, 2025, the City Council approved a Memorandum of Understanding (MOU) with Milan REI X, LLC establishing a framework for the City to expeditiously process certain development applications while Milan agreed to toll and ultimately withdraw its pending Senate Bill 330 (Builder's Remedy) applications upon satisfaction of the MOU's terms. The First Amendment extended the processing deadlines and related Builder's Remedy Tolling Agreements. The proposed Second Amendment provides Milan the option to extend the applicable tolling agreement if litigation is filed challenging the City's approval of the Residential Project and/or the Open Space Project, thereby preserving the parties' negotiated framework while the litigation is resolved.
3. RECOMMENDED ACTION
recommendation
Approve the second amendment to the Memorandum of Understanding with Milan REI X, LLC; and authorize the Mayor 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
On July 22, 2025, the Orange City Council approved a Memorandum of Understanding (MOU) with Milan REI X, LLC (Milan). The MOU established a cooperative framework under which the City agreed to use its best efforts to expeditiously process Milan's development applications while Milan agreed to toll and ultimately withdraw its pending Senate Bill 330 (Builder's Remedy) applications, subject to the terms of the agreement.
The MOU contemplated the processing of the following projects:
* Mabury-22 (22 single-family homes north of Santiago Creek);
* Arena Residential Project (30 residential units at 6146 E. Santiago Canyon Road); and
* Sull...
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