TO: Honorable Mayor and Members of the City Council
FROM: Jarad Hildenbrand, City Manager
1. SUBJECT
title
Third 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 (Milan), establishing a framework for processing certain development applications while preserving the parties' existing Builder's Remedy Tolling Agreements.
The First Amendment extended the applicable processing deadlines and authorized the City Manager to approve additional extensions in 30-day increments through January 22, 2027. The Second Amendment addressed potential litigation challenging the City's approval of the Residential Project and/or Open Space Project.
The proposed Third Amendment would extend the City Manager's authority to approve additional 30-day extensions of the Tolling Agreements and applicable processing deadlines through July 22, 2027. The additional time is necessary to continue addressing outstanding environmental and regulatory matters associated with the Sully-Miller Open Space Project, including coordination with the Orange County Local Enforcement Agency, CalRecycle, and the Santa Ana Regional Water Quality Control Board.
3. RECOMMENDED ACTION
recommendation
Approve the Third 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
2.3: Sully Miller Site - Work with the appropriate stakeholders and identify a beneficial use and final resolution for the Sully Miller site
6. DISCUSSION AND BACKGROUND
On July 22, 2025, the Orange City Council approved an MOU with Milan establishing a cooperative framework for processing development applications involving three properties:
Mabury-22 Project (22 single-family homes north of Santiago...
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