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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First Amendment to Memorandum of Understanding with Milan REI X, LLC
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2. SUMMARY
The City Council approved a Memorandum of Understanding with Milan REI X, LLC on July 22, 2025. The Memorandum of Understanding does not mandate City of Orange approvals. It memorializes that the City of Orange will expeditiously process all applications and permit requests by July 1, 2026 with the understanding that Milan REI X, LLC will withdraw its Senate Bill 330 applications. The Memorandum of Understanding first amendment extends the July 1, 2026 deadline, extends the related tolling agreements, authorizes the City Manager to execute up to six months of additional extensions, and incorporates reporting requirements.
3. RECOMMENDED ACTION
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Approve the first 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). While the MOU did not mandate or guarantee City approvals, it memorialized the City's intent to take all considered efforts to expeditiously review Milan applications and/or permit requests as it relates to:
* 22 single family homes north of the Santiago Creek (Mabury 22).
* 30 residential units at 6146 East Santiago Canyon Road (Residential Project); and
* Sully Miller open space project (Open Space Project)
Prior to executing the MOU, in November 2023, Milan submitted preliminary applications for residential projects pursuant to Senate Bill 330 (Builders Remedy). This prompted discussions between the City and Milan which precipitated th...
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