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G.6 - GT Third Amend to DDA Reimbursement AgreementApproval of Third Amendment to the Disposition and Development Agreement & Reimbursement Agreement with Lewis Land Developers, LLC November 14, 2023 Presented by Adrian R. Guerra, City Attorney City Council Goals Goal #1 “Ensure Fiscal Viability” by securing appropriate cost recovery for services. Goal #2 “Promote Economic Development” by developing proactive economic development plan to support retention and expansion of existing businesses. 2 Issue 1 Disposition and Development Agreement 3 December 19, 2016 Initial Agreement City entered into DDA with Lewis Land Developers, LLC selling approximately 44 acres to develop a residential project. February 27, 2017 Amendment No. 1 to DDA April 28, 2017 Amendment No. 2 to DDA May 2, 2017 Closing Date Section 16 of DDA provided repurchase right to City if Developer did not commence grading within 7 years from closing date. May 2, 2024 Outside Grading Commencement Date Seven-year mark triggering City’s repurchase right. Disposition and Development Agreement 4 Developer has been processing entitlements for the project. Environmental Impact Report, General Plan Amendment, Gateway at Grand Terrace Specific Plan, Zone Change, and Tentative Tract Map. Developer has requested a 90-day extension of the Outside Grading Commencement Date. Third Amendment to DDA Extend DDA Parties have agreed to amend the DDA to extend the Outside Grading Commencement Date for 90 days to July 31, 2024. Will allow parties to negotiate important outstanding matters relating to the project. Empower City Manager City Manager will have authority to execute documents on behalf of City. 5 Issue 2 Reimbursement Agreement No agreements or procedures in place for reimbursement of City’s costs related to the project. Developer had voluntarily reimbursed certain costs. Developer has agreed to commit to reimbursing City for all costs. 6 Reimbursement Agreement Reimbursement for all future costs Staff time, consultant costs, engineering costs, attorneys’ fees and costs, expert costs, environmental review, etc. Reimbursement for all previous costs Developer shall compensate City for all previously incurred but unreimbursed costs incurred by City starting from the original initiation of discussions on August 6, 3014 to the effective date of the Reimbursement Agreement. Deposit for future expenses Developer will deposit $100,000 for future expenses. 7 Recommendation The City Council is recommended to adopt the following Resolution: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING THE THIRD AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT AND REIMBURSEMENT AGREEMENT WITH LEWIS LAND DEVELOPERS, LLC.” 8