HomeMy WebLinkAbout _ 4.2(a)-- First Amendment to Development Funding Agreement with K2 Development Company, Inc GI �" Y C� F
� � �- ' � ° � � i � CITY OF REDDING
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REPORT TO THE CITY COUNCIL
MEETING DATE: December 16, 2025 FROM: Steve Bade, Interim City
ITEM NO. 4.2(a) Manager
***APPROVED BY***
sbade@cityofredding.org
t��re a �, 7�t 12f1Q/242�
sbade@cityofredding.org
SUBJECT: 4.2(a)--Approve and Authorize a First Amendment to Development Funding
Agreement with K2 Develo ment Company, Inc
Recommendation
Authorize and approve the following:
(1) Approve the First Amendment to the Agreement with K2 Development Company, Inc.,
conditioned upon approval by the City Attorney, increasing the total funding for the
Quartz I�ill Infrastructure Project (G10294)to $4,054,439;
(2) Authorize the Mayor to execute the First Amendment to the Agreement with K2
Development Company, Inc.;
(3) Determine that the amendment of the agreement does not constitute a project under the
California Environmental Quality Act, and therefore requires no further environmental
review; and
(4) Determine that the amendment to the Development Funding Agreement for
predevelopment costs is categorially exempt under the National Environmental Policy
Act under Title 24 CFR 58.34(a)(1), and acknowledge that a separate environmental
review is in progress for the subsequent project.
Fiscal Impact
The additional funding for the proposed First Amendment to the Agreement (Amendment) will
be fu11y funded by Community Development Block Grant Disaster Recovery Infrastructure
Program Grant (CDBG-DR-INF) funds allocated to the Quartz Hill Infrastructure Project. This
amendment will have no impact on the General Fund.
Alternative Actzon
The City Council (Council) could choose not to approve the Amendment and provide staff
alternate direetion. However, declining to approve the Amendment may delay eompletion of the
needed predevelopment activities and jeopardize the City's ability to meet con�ractual deadlines
with the State o�California's Department of Housing and Community Development(HCD).
Report to Redding City Council December 12, 2025
Re: 4.2(a)--FirstAmendment to Development Funding Agreement with K2 Development
Company, Inc Page 2
Background/Analysis
On August 17, 2021, Council authorized the Housing Division to submit a Notice of Intent to
HCD for CDBG-DR-INF funds to support infrastructure improvements for a future single-family
housing development on City of Redding (City)-owned property at 850 Quartz Hill Road—an
approximately 112-acre parcel, currently referred to as The Peaks Project(Project).
In 2022, the City received a CDBG-DR-INF allocation of $22,563,043.51 for the project. To
accept the funds, Council approved a resolution authorizing the City Manager to execute the
CDBG-DR-INF Master Standard Agreement, which HCD fully executed on August 1'7, 2023.
To initiate predevelopment activities, in December 2023, Council approved a Development
Funding Agreement with K2 Development Company, Inc. with a not-to-exceed amount of
$2,500,000 for environmental studies, surveying, engineering and civil design, entitlement
processing, mapping, and preparation of procurement documents.
The project is intended to deliver a fire-resilient subdivision infrastructure that minimizes
environmental impacts while creating developable single-family lots. The City Manager directed
staff to ensure the design incorporated enhanced features benefiting future residents and meeting
the City's highest development standards.
As a result, the tentative map required significant internal review and multiple redesigns by the
consultant team, along with additional archaeological, biological, and traffic analyses. The
revised map reflects these enhancements and complies with modern fire-resilient subdivision
standards. The Planning Commission approved the tentative map on October 28, 2025. Due to
these expanded efforts, the initial Agreement budget is nearly exhausted.
Accordingly, staff recommends increasing the Agreement by $1,554,439, for a total not-to-
exceed amount of $4,054,439, to complete the remaining design, environmental, engineering,
architectural, and project management work reguired before construction. Prior to initiating
construction, staff will obtain final National Environmental Policy Act (NEPA) clearance from
HCD and return to Council with a detailed consultant contract with K2 Development Company
that outlines the construction schedule and deliverables. Based on current projections, the earliest
accelerated timeline would allow final biological surveys to be completed this spring, vegetation
removal to begin in early summer, and construction to start in autumn 2026.
Environmental Review
Amending an agreement is not a project as defined under the California Environmental Quality
Act, and no further action is required.
Amending a Development Funding Agreement for predevelopment costs is considered exempt
under the National Environmental Poliey Aet under Title 24 CFR 58.34(a)(1). A separate
Environmental Assessment is underway for the resulting project.
Report to Redding City Council December 12, 2025
Re: 4.2(a)--FirstAmendment to Development Funding Agreement with K2 Development
Company, Inc Page 3
Council PNio�^ity/City Manager Goals
� Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
• Economic Development — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
Attachments
^First Amendment- Development Funding Agreement C-10294
Quartz I�ill DFA Phase I Predevelopment C-10294
DEVELOPMENT FUNDING AGREEMENT AMENDMENT NO. 1
850 Quartz Hill Project Phase I (The Peaks)
By and Between the CITY OF REDDING, and K2 DEVELOPMENT COMPANY,INC.
This AMENDMENT NO. 1 to the DEVELOPMENT FL7NDING AGREEMENT("Amendment")
is made and entered into effective as of November 21, 2025, by and between the CITY OF
REDDING, a municipal corporation and general law City ("City"), and K2 DEVELOPMENT
COMPANY, INC., a California corporation ("Developer").
12ECITALS
A. The City and Developer entered into that certain I�evelopment Funding Agreement dated
December 14,2023 (the"DFA") for predevelopment ser�ice�related to the Project located
at 850 Quartz Hill Road, Redding, California,Assessor's Parcel Number 115-170-001 (the
"Property" or "Site").
B. The DFA provides for predevelopment services to support the design of a subdivision of
shovel-ready lots for potential future housing devela�ment, as described in EXHIBIT 4
(Scope of Development) and EXHIBIT 5 (Pre�iminary Project Budget) � the DFA, with
an initial maximum budget aliocation of$2,500,00� from HUD Community Development
Block Grant (CDBG) Disaster Recc�very Infrastructure funds designated for Phase I
predevelopment.
C. The parties desire to amend the DFA via this change order to expand and refine the Phase
I scope of work and design, allc�wing continued prede�elopment activities without
initiating constru�tion.
D. This Amendrnent incorporates ongoing and additional predevelopment tasks under
engineering servic�s (by Developer's subcontractor GHD Inc.), architectural services (by
Developer's subcontr�ctor Russell�:Gallaway Associates, Inc. ("RGA")), and construction
mana�ement s�rvices' (by Developer), �lus an alternate for site management and fire
mitigation, a11 '�in complian�e with I-1�U�D CDBG requirements. The additional scope
necessitates an increase in the Phase I budget by $1,554,439.
E. Th� parties agree that this Amend�nent advances the City's vital interests in community
impro��ment,health, safety,and welfare,without altering the DFA's fundamental purpose.
NOW, THEREFORE, in consideration of the mutual covenants herein and other good and
valuable consideration,'�the parties�agree as follows:
SECTION 1. AMENDMENTS TO THE DFA
1.1 Scope of Work.EXHIBIT 4 to the DFA is hereby amended to include the following additional
predevelopment services for the expanded :Phase I scope, as detailed in the attached :Revised
Exhibit 4-1, incorporated by reference, without deleting or superseding the original scope items.
1.2 Project Budget. EXHIBIT 5 to the DFA is hereby amended to include the following updated
budget breakdown for the Phase I change order, as attached in Revised Exhibit 5-1, incorporated
by reference. This updated breakdown provides for additional costs in the amount of$1,554,439
beyond the previous maximum of$2,500,000; the total Phase I budget shall not exceed$4,054,439
without further amendment. Reimbursements shall be from Phase I predevelopment financing,per
DFA terms.
1.3 Representatives. The DFA representatives remain unchanged.
SECTION 2. NO OTHER CHANGES
Except as expressly modified herein, all DFA terms remain in full force and effect. In case of
conflict, this Amendment controls.
SECTTON 3. COUNTERPAI2TS
This Amendment may be executed in counterparts, each an original, together constituting one
instrument.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.
City of Redding, a municipal corporation
Date
By: Steve Bade, City Manager
ATTEST: API?'ROVED AS TO FORM:
By: Sharlene Tipton, City Clerk B�:��;Christian M. Curtis, City Attorney
K2 � �e�elopment Company, Tnc., a California
corporation
By: Allen A. Knott, Chief Executive Officer
Revised Exhibit 4-l: Additional Scope of Work
The Scope of Work under this DFA is hereby expanded to include the following additional
predevelopment services to design shovel-ready lots for future housing on the Site, in addition to
the original services outlined in Exhibit 4 of the DFA. Developer shall perform these additional
services per the DFA, Schedule of Performance(E�ibit 6),and applicable laws,including CEQA,
NEPA, and HUD CDBG requirements, without commencing construction.
Engineering Services:
• Completion of 0101 Project Management Support
• Completion of 0105 CEQA
• Completion of 01051 CEQA PEER Review
• Completion of 0110 Consolidated Allowance Task
• Completion of 0201 Tentative Map (TM) Alternatives, Development, & Submittal
• Completion of 0202 Preliminary Hydrology and Hydraulics(H&A)Analysis,Calculations
& Report
• Completion of 0203 Prelimina�ry Public Right of Way:Planting Design
• Completion of 0208 Construction Cost Opinions
• 0301 Improvement Plans
• 0302 Hydrology-Hydraulics Analysis and Report, and NPDES MS4 Design and
Documentation
• 0303 Public Right of Way Planting and Irrigation
• 0303A Public Right of Way Landscape Architecture Monumentation
• 0303B Public Right of Way Landscape Architecture(Engineering and Detailing)
• 0304 Structures (Retaining Walls)
• 0305 Dry Utility Coordination
• 0306 Construction Cost Opinions
• 0307 Bid Notice and Specifications
• 0308 Survey Support During Design Activities
• 0309 Resource Agency Permits
• 0310 Consolidated Allowance Task
• 0401 Assistance During Bidding and Award
Revised Exhibit 4-l: Additional Scope of Work
Architectural Services:
• Project.Master Plan Coordination
• Stokes Memorial Project—Conceptual Design
• Park and Trail System—Conceptual Coordination
• Park Entrance Concepts
• Park and Trail System
• Graphic Exhibits
Construction Management Services:
• Running the project for the Developer's team, including subcontractor coordination,
predevelopment oversight, budget management, scheduling, and City reporting.
All services shall be professional and DFA-compliant. Developer shall coordinate with City for
Project alignment and funding compliance.
Revised Exhibit 5-l: Phase I Budget Change Order
Category Subcategory Amount
Construction Owner Requirements as provided by the Infrastructure $2,�,� 771
Management Consultant:Responsibilities
A&E ���Architect $124,384
���Engineer $1,064,534
Legal ���Legal-CC&R-Contracts $67,500
Other Project Costs��Consultants-IBHS $20,250
TOTALS $1,554,439
-----------------------------------------
L)E�EI,��'IvI�NT F'LTI�TI�II��A6�REEMEI�T
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This 1�EVEL�F'1!/IENT FUl�TL�INfr 1�GREEli�IEI�tT ("D�'A"j is made �r�d entered in�o by and
b�twe�n the�IT�'(JF` �DII�E;'r,a unicipal�orporatic�n and g����a�1a�u��fy ("�ity"},and
I�ev�lop �nt �o par�y�Inc,, a Calif�rnia corpor�tion("L��veloper").
�I �LS
Ae I)�velop�r is a cc�r�oratic�n a�r�a�i�ed��der th� laws of th� ��ate caf Californ��.
, The�ity is� �r c�f a pr�p�rty locat�d�t 850�u z�I�111�oad,R�;dd`a�g,S�as�a
�aunty, Califa ia. The Asses�ar's P'arcel I�Turr�b�r �s 115�170�001, �the "F'rop�rty�' c�r�`Site'")
and is fully deseribed in Exhibit l�.g "�rc���rty Legal es�r�ptior�g' and depicted in Ex�ibi� 1�,
"P�rcel Map,'g both atta�hed h�reto �nd i��orporated by refer���e her�in. Th� �ite is currently
undev�tap�d 1 d with no t�na�tsa
C. Th��ity d�sir�s tc�develop infrastr�cture to�upp�rt new si��le�fa i1y houses c�r�
the Sate(th�"�'rt�j��t'"): ��nst ctior�ofth�Pre�ject rriay not st til predev�lt�p ent prac�sses
are �cr pl�t�.
L�. City dc��s r�at have suffi��ent pers� ei tc� p�rfor th� services r�qu�r�d h�re�n
thereby n�cessitating this a�r�e ���for pred�velap ent services,
E. The D�velop�r te prov�d�s pr�d�v�lc�p er�t ��rvi�es suc� as surveying,
mapping, crvil �ngineering; hydralcagy; utility d�si�n, �n�ira �n�al studi�s, CEQA
dac� entation and oth�r prede�r�lc�p ent or sit�precans�r�ctior�proc�sses.
�'. F'znancial suppor�is needed to funt�the predev�lop �nt�asts assc�ciated with the
d�si�n ofthe Pr�jeote
�. 'Th� LTn7ted Stat�s L)�part �r�t caf I-�c�usin� a�d CTrbar� I:�evelop �r�t (`�HUT349)
allo�ates funds to th� Ca unityy I�evelap �nt B1c�ck Gra�t (CDBG) progz° . The Gity has
b��n awarded �D C� L9isaster l���c�very Iz��'rastr�cture fu�ds th�t ar� eli�ible far th�se Pro�ect
predevelopmer��costs.
�-I. �ity and eveloper desir� to ent�r ir�to th�s L)evelopr��nt Funding DPA {the
�`L}FA"�to fund the Dev��op�r with�h�predevel�pment and pla i��costs of�h�I'r�j�ct to h�lp
assist wzt� the l�r�ject.
L)evelopment Fanding Agreement-K2 Developtnent Company,Inc.and the City of Redding � � a�'�;1 6� �
S C 1. A 'T
Pur�ose of th�I?FA. The purpose of this L�FA (`et�greament"} is to further th�goals of the
�ity by d�signing a subdivisic�n c�f sh��el-r�ady lafs d�sign�d to suppart a potential ho�asing
develcrp er�t or d��elop �nts in the fi�tur�.
The �ity repr�setats that the car�pletian c�f the �r�ject �s zn th� �ital and best rnt�rests of
th� �ity of Redding f�r th� h��lth, saf�ty, r�l�rals and �r�l�'ar� c�f its r�sid�nts; for th�
purpose �f eo m ity zmprc�ve ent.
It is �ont� �alat�d by the parti�s th�t �Il activities undertaken by Dev�lc�per vdi11 be in
accordance wr�h this D�'A, A11 �ttac ��ts aa�d ��hzbits ar� h�reby ir��orpc�rat�d °znto this
I��A by refer��cee
�co�e of cark,It is cante piated by the parties that th� �e��loper v��11 prc�vide n�cessary
d vital pred�velopm��t s�rvic�s for th�l�ro��ct.The S�ope of Developrr��nt tc�b�c icd
out by th� Il�eveloper under this I�FA zs rnor� parti�ularly des�ribed in Exhibit 4 and
according to the timefrarne des�ri6�d wathin the Schedule �f �e�°for ance attached as
Exl�ibil6.
Tera�e ThXs L�F� shall ca er�c� as crf the Effec�zv� Date d prace�d as r�quired by the
II�F�i and th� Schedule af I�erfo �e� and, ��c�p� for any deed r�stricti�ns, covenants
ru ing w�th th� 1and, or other ��re� ents ar prcrvisioras which by thexr te � survive the
t�r �f th� II�F'�, s�al1 te rnate upc�r�th� co p���i�ra of o�e or more �f th�folla�wing:
�cr pl�t�on of th�pr�d�v�l�apment pc��fion c�f t�i�Proj�ct a�described in Exhrb�fi 4e
�'u1fi11 ent b�the p�arties c�f tl�ezr obli�ations und�r this L)FA.
Co plete expenditure �f th� Phase I C1ty prc�vided pr�devel�pm�nt financing,
provrded that the City has paid I)evelo�er in full fc��°a11 servXces rendered r�gardl�ss
of vvhether the�s� ser�ices ar� p��d �ut c�f p�°�d�v�Ic�p ent fira �ir�g �r c�ther City
sources of financing.
Re�res�ntatives tc�the L�FA:
Citya �ity of Redding Hcausir�g Iaivision
��tent�one S��tt. �d�er
P�?�ox 496071
Reddxn�, �A 96049�6071
530-225-4045
Developer, K2 I)evelopment �ompany, Inc.
Atten�ron: A11en ott
1011 P�rkview Avenu�, �uit�A
Reddi�g, CA 96001
530-244�0596
Devetop�nent Fuliding Agreement-K2 Devalopment Company,Inc.and the�ity of Redding � I �*� ?'; '�
2e � �. I
�ity Ass�stanc�o In arder to �ffectuat�th�pred�v�lcap ent tasks of t11e Project o� th� Site
by t�i�D�vel�aper,th� C�ty sha11 provide funding not t�a exceed Two I�illi�n Fi�e�-Iundr�d
Tho�tsar�d at�d Nt�11�0 I?all s ��2,�QO,OOO.OD} (the "�ity Ftands"). The �ity Funds sha11
�c�nstit�te�he �ity t�ssistanc�to�h�pr�dev�lop ent c�f the�'�°c���ct, Th�City Assi�tan�e is
pre�vid�d for the s�ie purpose c�F�ss���ing L)ev�lc�per �� th� �o pletion o�Phase I af th�
�'roject(pr�dev�le�prr�ent require �nts),
�itv Funds. The City �:�sistarace to the P�°�j�ct �h�11 b� ir�th� for c�f di�°ect funding th�t
nlay be r�zmburs�d�ith�L���`'x gr�t�t fi�nds�or in the ab�enc��r laps�caf su�h fur�ds,ot��r
�ity so�ar�e�of fi� cing�a su�nt to th�t��ns al2d �c�nditic�ns d��cr°rb�d ir�this I�Ft�.
T�r s and �o�diti�ns. D�vele�pe�° shall stab it i�avoic�s tc� City fc�r�r�d�v�lc�p ent va�rk
complet�d �� �h� date of th� i�voi��, �11 invo�c�s sh�ll be 1t�rniz�d t� ad�q�at�ly re�ect
the wark that ha�bee� eo p1e��d in th�t ti e fr e. All cc�r�°�ct, �o piet��nd undisp�t�d
in-voices submitt�d by L��v�l�per tc� Ci�y s�a11 b� paid within th�rty (30} cal�n�ar days c��'
r�c�ipta I�ev�lc�p�r sha11 p�°���d� y additic��a�� infc�rma�ao� r�q�zested by �ity ir� order to
�pprc�v�p�y�r��r�t�r�d�r th���r�� �nt.
�itv A.dditional Fu�din� Ter�ns. Th� ��ty ay t�r is�ate �h7s I9�vela�a �rat Fu�di��
Ag�°ee�ent�por�th� t�ccurr�z�ce of�r�y af t11e fc��lc�v�rir�gn
��veloper's f�il�ar�to pr�c��d avit��nd c� pl���the Proj��t i��c�ordan�e witl�
t����hedule c��`P�rfca anc�; c►�
Ia��r�lop�r ab�ndor�s ar substa�tr��1y s��pe�ds s�rvic�s f�r a p�riod of three (3)
m�r�ths aft�r i�ter� r�c��i�e c�f s�ch abandc� �r�t or s�sp�nsion fro the C�ty�
or
Oth�r �terial br��ch�f t��s�F'A,
Ac�ountin� �t da�°ds. L�ev�Ic�p�r ���°�es tc� ccr p1y �rith 24 ��� �4.21�2$ ar�d �grees ta
adh�r� tc� th� a�co ting prin�ipi�s ��d pr�acediar�s r�q�iir�d therei�, utili�� adequate
�nternal ca��tr�ls, �a�d aint�i� ���es��ry sc�ur��dcs��z er�tatic�� f�ar alI�c�st�i�c�zrrede
Ins�ection c�f Boc�ks arad 12e�c�rd�. �ity �a�s the right, �t a11 r�asc�nable tirn�s d u�on
r�asor��b�e �a�ti�e, to ir�sp�ct th� book� d r�e�rds c��the C���etc�p�r p�rtaining t� the
F"roject as ne��ssary t�ass�ar��aa �lian�� ith th�pro�zs�err�s�f this T7�`�1. I�e��loper shall
keep such books and recc�rd� �s City rz�ay reasc�nably r�qu�r� �ssuring ��veloper�s
perfa c�of its obligatic�n�unde�°this I�FA.
� 'TI 3. �5 r� � �d I S � l�i �
`I'he D�v��c��er c�ve�a�ts and��rees that t�� I�e�r�lc���r shall act as fo1l��vsa
Enviro �nta� R:�v��w Res�uire �nt. I�I�t�iths� ding ��y prc�visic�n s�f �his L�FA, the
parties h�rets� a�r�� and ac ��viedg� th�t this �9�I� d���nc�t�c��stz��at� � �o mit �nt c�f
funds c�r s�t� �pproval �or y �o�s�ruc�tio�z wc�rk. 'The �ity shalt c�n1y b� �bl��at�d to
c�s it f��ds c�r �pprove sites f�r �an�tru��i�� �c�r� upo� sat�sf��tc�ry �o pl�tian c�f
�evelopment Funding Agree�nent-K2 Developrnant Company,Inc.and the Cify of Redflin� � � � z �' t`
envir�s ent�l re�i�va a�d �ity's rec�ipt of fi�nd� fr� the U.�. D�p�rt �r�� af�-Iousi��
and Urb�n evelap �nt ("I�tTD") e�r S�ate Housin� ar�d �� �u `t� Develop �nt
(°'I���"} der 24 �FI� I�art S�ctias� S�. L)es��te th� pr���din� sentenc�, th� �1ty shall
r�rnalz�obl°agat�d tcs pay�eveloper f�r any s�rvic�s aetually r�nd�r�d p�ars�iant ta this L}�'�1
r�gard��ss of wh�ther fiands ha�� b��n r�I�ased by �I�TI) ca�°�I�I�. The City resarves the
ri�ht t�rr�c�dxfy car�a�c�1 the�'ro����based aan�h�results afthe�n�i�°o ental rev��va.
No�disc�°r inatic�r�. L�����operg its s�b��ntra�tors and cor�sultants, s�a11 nc�� dzscrimi�at�
c�� �h� ba�is o�`rac�, �ol�rg reli�zc��, �z���d, ag�, disability, ��x, s��u�l c�r��rl�atia�n, m�rr�al
��atus, ar�cestry �r�ational t�r�gia� �� the sal�, l�ase car r�r�ta� or ir�th� use �r c�cc�apancy c�f
th� Sate and th�I prc�u� �nts,
Tnd� ificat��z�a�d�-lI�ld I�a I�ss.
A. ��nsist�nt with Ca1i#'orraia Civil �od� �27�2.�,urh�n the services t�a b�p�ovid�d
u�de� this ���°�e �nt ar� d�sign prof�ssionat servic�s tc� b� p�rfo �d by a d��ign
prof�ssron�I, as th�t t�rm is d�tin�d under ��ction 27�2,�, I�ev�l�per �ha119 tc� the fi�ll�st
�xt�nt �aer i��ed by 1�vv, ind�nr�nify prote��, de�°�nd �nd hoid har l�ss, �zty, its �1�c�ed
official�,officer�9� ploy��s,�:�d���nts,�r�d�ach and ev�ry�ne c��`thern,froan�nd a�air�st
�11 actlons, da ages, �osts�1i�bi�ity, clar s,�osses,p�n�ltics a�d�xp�il�es ��ncl�ding, bu�
not 1i it�d t�, reasc��able a�to �y's fees a�f the City At�c� cy c��°1e�al ca�ns�1 retained by
�ity, ex��rt fees, litagatic�� c��ts, �r�d in�re��i�ation c�st�} t�f�v�ry ty�a� d description to
which any crr �11 af therr� ay be s�bje�t�d by re�sc�n o�°, �r r�sulti�g f�c� , directly c�r
ir�da`r�ctly, th� �egliger��e, r��klessn�ss, �r w�llfi�l is�a�nc���t �sf L�ev�l�p�r, it� �ffic�rs,
� p1t��e�s �r �g�r�ts z� th� perfo ���e c�f prof�ssi���l ser�ices aand�r thxs 1��re�m�n�,
�x��pt�uh�r�l�ab�li�y arises du�tc�th� s�a1e �eglig�r���, �cti�e r��gl�g�z�c��r is�ondu�t c�f
�he��tyo
�. C)ther th�z�rn the perfe� c�c�f prafess�onal s��°vi�es by a d�sign prc�fessianal,
�vhich zs addr�ssed s�1�ly by s�.1bd°zv�sion {A.} caf th�s Se�t�onq and t� tl�e �ull�st ext�nt
p�r itted by Ia�v, L3ev�lop�z° sha11 i�de z�ify pro��ct� defcnd �rtd hc�ld ha l�ss, City, �ts
e1��t�d c�f��i�1s, of��ers, � plcsyees; ��zd ag�n�sg ar�d �ac�s d �very �n� csf t��r�9 frc�
�r�d against ail �ct�o�s, d ��e�, c�sts, liabil�ty, clap s, losses, �s��alti�s d exp�nses
(including, but �at 1iz�it�d ta� �°�asonabl� attc� �y's fe�s of th� �rty Atte� �y or legal
co sel r�t�i�ed by City,�xpert fe�sg li�zgatic�n costs,and i�v�stig�tic�r�cc���s)c�f�very tYY��
�nd descrzptican tcs which a�y c�r all c�f�he ay b� subjected by r�asor�of the perfa�rrta�ce
c�f the servi��s r�qufred under �his 1�gre� �r�t by ��velop�r �ts offic�rs, empl�yee� ar
a��nts in �he p�rfo �r�ce c�f prc�f�s�ic��al s�rv�ces und�r this Agree �r�t, �x��pt when
liabilxty ises d��tca the solc n��lig�n��, a�t�v�ra�gligenc� c�r fs�csr�d�ct a�f the �ity.
�. Th�D�v�lop�r's oblz�atic�n t� d�f�nd, i�d� ��fy and hold ha less sha11 not be
����sed bec��se of the Iae�e�op�r's inabzl�ty tc� evaluate Iiability. Tt�� De�re��per shali
resp€�nd withira thirty (30) c�Iendar d�y� to the te�der �f any �1ai for defen�e d
ind�m�ity by tl�e City, ur�Iess �his tirr�e has b�en extend�d iz� wr�tin� by the �itya If th�
I��v�lop�r �ail� tc� �e�ept ��°r�j�ct � ��nd�r af de�`�rtse d inde nity ir� it��xg del�ver�d
to�ity���hin th�rt�(30�cal�r�d�°days,i� additi�n to any a�her�� edy�uthor�zed by 1�.��
the �ity �,y withhold such fia�ds th� �ity r�asor��bly cc��siders n�cessa:ry for its defe��e
d inderr�r�ity until dispc�slt�or�has b��r� ad� c�f th� cl�iYn c�r until ��e ��eloper acce�ats
�r re��cts�he t�nd�r c�fdefens�ar� it�ng deliv�r�d to the C�ty,�ahichev��occurs fir�t. This
subdi�i�i�n s��11 r�ot b� coz�str��d tc� �x�us��h�prtr pt a�ad cc�ntir���d perfc� arz���f �
du�ie�requir�d o�L��velc�per h�reir�,
Developmez�t F'un�ling Agreemet�t-K2 Development Gorrtpany,Ine,and the City of Redding � ( 1$ i ;;� f�".'
. The t�bligati�n to ir�demnzfy, pr�te�t, d�f�nd, d h�id ha Iess s�t forth in this
�e��ion �ppli�s ta all cl�i s and liahitity r�gardl�ss c�f wh�th�r any �r�s�a�°anc� p�lrcf�s ar�
appli��bl�. Th� poli�y llmits c�f said ins�ra�ce poli�ies dcs z��at act as a li Ytat��r��apor� the
� c���t€�f inde ificaticr� tt�be pr�vid�d by ev�lc�pera
ED City shall hav� th� right to �ppr�ve �r dis�pprov� th� 1���1 ��aunsel ret�ined by
L��v�lc�per pursu�r�t tc, th�s Se�tia�n to r�pr�s��t City's int�r���s. �ity sha11 b� reirr�b��s�d
for a11 c�sts a�d a�tc� �y's f��s i�curred by �ity in ��forczn� �h� �abl�gaticrns set forth in
this Se�tior�.
Ins�r ce R�c�uire ents and ��.rblic S�f�tv F'rotecti�r�s, Th� I�ev�lc�per sha11 cabtain �nd
rnaintain insaar�n�e as sp�cified �n th� attach�d Exh�bxt 7,
�'roh�bition A a�ns� Transf�r �f •�hts or C�bli�ations, �fty has ent�red into this I)F� in
r�liance upo� th� id�r�tity �nd q�alificat�a��s of th� LL��ve�t���r, Developer ay not as���n
t�r oth�r�vise tr�n�f�r �evela�p�r'� rights �r obligatic�r�s under this L)�� withoa�t the prior
rtten c€��sent of�ity,
No Waiving�bY Delaye y delay by � party an ass�rtrng ar�y rights s�a1� a�a� c�p�rate as a
�v�iver �f such ri�hts or tfl d�priv� su�h p�rty c�f, crr li it, sttch ri�hts in any waY• Y
waiv�r in f�ct rr��de by a party wlth r�sp��t tc� any specifi� d�fault shall nc�t b� �ons�d�red
a� a waiver of�h�r��hts af suc1�p�r�y with r�spect to �ny �th�r defa�lts c�r vaith respect tc�
�he part�cular default�xcept t+��h� ext�nt speei�i�a�ly waiv�d zn iting.
L�elavs for Causes ����nd �ontrc�l c�f F'ar�e �'s�g the purpt�ses e�f y af the pr��zsioz�s of
the DFA, a�either �ityy �or �v�loper �hal� b� cor�sider�d in br�ac�a of, �r d�faul� zn, its
�bligations �rith r�sp��t to th� Sit� ar th� P'roj�ct; ar th� l�egi ir�g, pxc�s�cutic�n and
co pl�ti�r� of construc�zon �� t�e I �rc�v� �nts, �f delay i� t�e perforrr� c� of such
�blig�ti�n� is du� t� ca�s�� beyc��d �h� d��ay�d p�rty's ��ntrc�[ �nd vv�thc��t its fauit or
neglig�n�� includir�,g, but ncst l�znit�d te�q acts e�f G�d, a�ts of a public ��� yq acts �f any
f�der�l, st�te c�r 1oca� �av�r e�atal body ar �ity, d�l�ys ir� ava�lability, p�°�cure �nts or
deliv�ry of adequate at�rials, equip ent; �uppl��s or perso �� whi�h �re o�tsid� tl��
eontrc�l c�f Develap�r; act� of the �th�r parties, �r�s, flc�cads, �pide ics, disc��ery €�f
protected species sar historical ar�ifacts upon th� Sx��, dis�c�v�ry af pr�-existing hazardous
ater�als; quarant�n� restricti�ns, st�ikes, frergl�t � bar�;c�es, a general c�ratoriutn an
�nar��ing f�r proj�cts o�the sa e typ�, ar�d unusuaily s�ver� vaeather (as �or �xan�pl�,
flcaods, torn:adoes, or hurr�ca��s) ar de��ys c�f��b�ontrac�c�rs due ta such caus�se In the
��ent of the oc�urr�nc� of amy �uch �r�fc�rced d�lay, th� �im� or tirri�s for�erf�rrnance of
such obli�a�ions c�f the City d ���elc�p�r sh�ll b���t�nded fr�r th�perxod of t��er�forc�d
delay> provided that the pa�-ty se�k��g the ber�efit of the prc�v�sic�ns of this �e��ior� shal�,
withrn thirty (30)Zl�ays after th�p has c�r sho�ld hav�knoevl�d�e af any si��h�r�forced
d�1ay,have#irst notzfi�d�h�cather par�y,a�z writing,c�f the d�1ay a�d rts c�use, d requested
��t�nsian f�r th�period�af th�enforced delay, In rics��e�t,h�w�v�r,sha11 any perzod oF
�r�farc�d delay �x���d nin��y (90} L}ays if �h� �art� �1ai ir�g �rzfc�r��d de�ay has ncat
d��nc�r�strat�d, to the reasc�nable s�tisfactian �f �h� c�ther p�.r�y, that 1t has a�ted a�d
cnnt���es �€� �ct pra �t1� and dzligently, t�a ��t� ext��nt reasc�r��bly pc��szble, to t� ir��t�
s�zch�nfQrc�d dela�.
Development Funding Agreement-K2 Development Campany,Inc.and the Gity ofRedtttng � � '` w� �.
�i�.a11d F�e edi�s �u L�lativ�. The rights and r� �di�s of th�parti�s to th� L��`A shall
be �um�l�tiv�, and th� e��r�is� by either part� ���r�v v�� or or� af su�h r� edies shall
r�c�t pre�lude�he �x�rcis� by 7t, �t the sa e or different ti es, of any c�ther such rern�di�s
fc�r the sa e defa�l� or b��a�h or c�f�ny �f 1ts r� edi�s far�ny oth�r d�fauit c�r br�ac�by
th� othe�° party. �� �vaiv�r rri�d� by �fther suc1� p�rty w�t� respe�t �cs t�� p�rfi�rrrianc� �f
any obli�atia�. of th� oth�r parties c�r ar�� c�nditic�n tc� its �wn obligataon �aar�d�r th� L3�'A
sha11 be eons�d�red a waiver t�f y ri�hts b�y�nd th�s� ��pr�ssly w��v�d az� �vriting.
Docu entat�e�r�and�ecord I����i��. L�e�elap�r s�ai1 �i�tain a11 r�cords r�quir�d by th�
regulati�ar�s spe�ified a�24��'I� S7(}.506 that are pertinent tc��h�a�f�viti�s t�b�f��ds ur�d�r
t�is I)�`�.a 5�ch re�s�rds sh��l incl�ade, but nc�t b� li it�d t�sa
I�.��csrd�pr�vidi�g a fi�ll d�scr�ptic�� caf�ach��tivx�y under�ak�n9
�) �Ze�ords�-�qu�r�d tc� d�t� i��the eligibilz�y of activiti�s�
b) Recc�rds requir�d tc� d�c�m�nk the a�quisltic�n, irnprov�rt�e�t, or u�� �r
dispositior�a�f��al prop�rty�cquired e�r i prov�d�vvith ��DB�assis��r�ce�
c� FLe�ords doc� enting cc�rraplian�e with the faz�°housin�, �ectic�n 3 �nd equal
ca�apc�rtu�ity�o�p�nents csf th� �L) CS prc�gra .
Ret�ntic�n. I��velap�r shall retain a1� fnar�ci�i rec�rds, suppor�i�g dc��u��nts, s�atisti�al
r�c�arc�s, ��d a1i a�h�r re�ards perti��n�to thi�L>F� ft�r a p�riod�f fi�r�y�ars. Th�retention
peric�d b�gir�s on t�� dat� of th� subznissic�r� c�f�ity"s a u�l perfc� �nce ar�d �valua�zc�n
rep�rt to H�.T ar�whi�h�h� act�v�ties �ss�st�d d�r this i�FA�r�rep�rt�d t�n ft�r the f�n�1
tizne.I�otwithstarzdrn�th��b�ve; if there is 11ti�ati�n, clair��, ��zdits, r��gatiatisans or ot�ier
acti�ns th�t inv�lv� �z�y of�he records cited d tha�have started b�fore the ��pir��ian cof
th�fivemy�ar p�ric�d,th�n siach r�c�rcls L�s�b�r�tai�ed ut�til cc� ��etic���af the actions�nd
r�sc�lution�f a1I iss�aes, o�°th��xpzr�tio� �f th� f v�-year period� whichever o��urs later.
�los�-�ut�. �velc�pe�°'s �bl�gatraza to Cit� p�zrsu�nt tc� �h�s I)FA. �h�li n€�t ��d until �71
cic�s��t��t r�c�ui�°e ents�re co pleted. �ctiviti�s d�aring this cic�se-aut per�od shall includ�,
b�t ar� not Ii it�d to: aki�� �r�al pay en�s, di�pos�ng af prog�ayn ass�ts {including th�
r�turn of al1 �nused at�rials, equlp e�t, unsper�t ca�h �dvances, prc�gra rnccs e
b�l�nces, and ac�au�ts r�ceiv�.bl� to ���y), and d�te ining th� �L�stc�di ship of r�cord�.
Notwithstanding th� fQr�gc�ing, th� te s €�f this T�'FA shall r�rr��in in �ff�ct d�ring �ny
perind tha��Dev�Ic�p�r h�s cc��tro� over�T���funds, incZudi��prc��rarr�inc�rs��.
Audits and Inst�ectz����. Al1 Devel��er r�cords w�th res���t to any atters caver�d by this
DF� shall be ade avail�ble to �ity, stat�; �ndlor fed�ral authori�ies or y authori��d
r�pres�ntat���s, at y ti�� during r�o a1 busrness hQurs; a� o�t�n as d�e ed r�ecessary,
to audit, ��a ine, d make ��cerpts or transcripts of a11 rel�v t data. l�ny defic�en�i�s
not�d ir��uditfmonitoring repc�rts must b� fu11y cleared by �e�elc�p�r wit��r��0 days aft�r
re��ipt of ncatic� �f def cier��y �r d�ficienci�s lay DeveZop�r. Failure �f I)evelc�per to
cc� ply w�t�a th� abe�v� �ud�tf onitorin� req�.iir� e��s vvil] co�stit�a�� a viol���c�� �f thi�
F°A and ay�esult ir�th� vvit �lding c�f futur�p��rn��t�a
Acc�ss tc� �e�o�°ds. T)�velt�p�r shall fi�ra�ish and ca�zs� ea�h �f its own s�b ���ip��nt� c�r
subc�r�tractc�rs tc� f�r�ish all ir�f� ation ��d reporfi�r�quir�d h�re�a�der a�d sh�ll per it
acc�ss t� ��s bo�aks, r���ards d �.�cc�unt� by �ity, �I�T� �r i�s ag��t, �r oth�r ��thori��d
Devalopment Funding Agreemen2-L�2 Dev�l�pment Conzpany,Inc.and t6e City afRedding � � ��y? �� �
f�der�l c�ffici�I� f�r purpos�s c�f iravestigatioa� tc� ascertain cc�rr�plian�e �zth �he rul�s,
r�g�lations az�d provrs�c�ns s�at�d h�r�ine
Mc�r�itorin�. ��velc�p�r shall or�itc�r al1 subcc,ntr��ted s�rvices or�a re�ular basis to assure
�cs�plianc� �vith this DF1�. Th� Ci�y shall b� natifi�d ��ta �diat�ly if� s�bcantracte� is
fo�and to b� t�ut of�o�npli�.nce with any �sp�ct of th�A�re�rr�er�t.
Accessibilitv( Se�tia� 5�4��ev�lop�r�ha11 co ply with al1 fed�ral regulati�ns iss��d
pursuant t�ca pli ce wath S��t�o��04 of the TZ.ehabilit�tion Act( )c�f 1973{29 U.S:�,
794), whi�h prohibits discrimination a�ainst ind7vidu�ls with d�sabiliti�s ar h d1c��s zn
any federally assist�d pr�gra .
Hatch Act. Develop�r agrees th�� r�� f�nds pr�vided, nar p�rsc� �1 empi�y�d und�r thls
L�FA, shall b� i�a�y �ay o�°ta any ext�r�t ��gag�d�n th� cor�du�t e�f pal�ticai acti�ities in
�riolat�or�of�hap�er 15 c�f Title V c�f�h�U.S.C.
La�bb it���. T�eveloper sh�Il�x��ut�the�4.r�ti-�.,abbyin� �eriif��ti�n(Exhib�t 1Q), attach�d
and rncorporat�d herein:
It�li�ious Activ��ies. I��vel�p�r agre�s that �unds prc��id�d u�der tl�is II�F�1 �vill nc�t b�
utili��d f�r inherently rel��ious activities prohibited by 24 �FR 570.200(j), such as
wc�gship, reli�ic�us irastructlon,c�r prr��elytiz�ti�na
S�ction 3. Develc�per sha11 co p1y fu��y wit�applicabl�S��trc�n 3 requ�re �a�ts durzng the
c�aurs�c�fdevel�prr�ent as s�eci��d i� E�ibit�,
L,abar Standards. La�veloper sha11 co p1y �vp�h th�r�quirements �f th� Secret�ry nf Labor
z� a�cordance with th� Davis9�acc�n Act as a ended, th� prc�vis�t�ns of�ontract Wc�rk
�-Iours d �afety Standards A�t (40 U.S:�. �27 et seq.) d all other ap�lieable Fed�ral,
stat�and Ioca1 Ia�rs d re�ula�ic�r�s pertaining to I�.bc��°st�ndards�r�sofar as thos�acts app1Y
to the perf�r ance af this L���a I�evelca�aer sh�11 c€� ply uri�h the �opeland ����-Kick
�ack P�ct (1� U,S.C. §874 et s�q.) arad it's inzple e�ttir�g reg�latic�ns �f the U.S.
L?epartrnent of Labor at 29 �FF� Fart 5, C3�velc�per shall a�nt��a� docu��ntatio� that
dezr�ons�rates ca plianc� �ith h��r and w�ge require �n�s c�f this part. �uch
dc�c entation sh�.I1 b� �d� av�ilabl�to �ity f�r r�view�ap�n r�queste
L)�veloper sha�I co ply with appli��ble fed�ral and state r�quir�mer�ts adopted by �ity
pert�.ining tca such contracts d wit�th��ppli�able r�quire �nts �af the re�ulations of the
Departm�nt c�f Lal��r�ove �ng th�pa� ent of w�g�s and r�t��€�f apprerntices and tra�nees
t� jou ey work�rs; prc�vid�d that, if wage ra�es hagher th k�Zose requ�red under the
r�gula�ior�s are i posed by sta�e ar local law9 r�othing her�under is intend�d to relieve
D�velop�r of its �bliga�ic�n, if any,to r�qurre paym��t of th�hi�he�°wa��. Devel�per shall
cause or require to be ins�rted i�full,in all car�tracts��bj�ct�o such regulations,provisions
m��tiz�g th�require en�s caf this p agraphd
Ec�ual CC:�� o� �tunity �nd Affi �tive taction State ent f EE(�IAA� I)ev�l�p�r sha11, �z� all
solicit�tic�ns csr adv�rtisem�nts for emplc�y��� placed by s�r oz� b�half of D�u�1�ap�r; st�te
that it i�an Equ�l CDpportunity�mploy�r.
Cantracts and�ubcor�tracts.�ith reg�rd tc�subco�tra�t agr�ernents a���pr�av�d by the�ity
�he I)���lop�r shall e�s�are co pli�n�e with all �tat�a�d lcr�ai eivil rights c�a�din�r�ces,law�
I�evetopment randtng Agreem�nt-TL2 Development�Company,Inc,and the City ofRedd'sng � 7 ( �' , °_� �
and r�guiations and w�th Tit1e `II a�the �ivil P.ights Act of 19�4 a� am�nded, Title VIII
oF the Civi1 Itights A�t of 196� �s ended, Sect�on I Cl4(b} and Section 109 of Titl� I of
th�Housirag and Cor�munity I)ev�Ic�pment Act(I��DA}of 1974 as amended, S�ction S�4
of�he Rehabilitatio� P��t ( � of 1973, the Americans w�th I�isab�lities t�c� c�f 1990, the
Ag� Discri ina�i�sn Act c�f 1975, Ex�cutiv� 4�rder 11063, and Ex�c�tive (�rder 11246 (as
a ended by E��cutiv� C�rder� 11375, 1147�, 12107 and 120�6).
�c� en- and Min�rity�Q �d �usiness�� (WfI4�1B�� I)�uelc�p�r shall �ase its b�st effc�rts
to�fford s a11 businesses� incrrity bu�iness ent�rpris�s,and wc�rne�'s business ent�rprises
th� rnaxir�u practicable c�pp�rtur�ity to participat� in the �p�rfc� ce of t�zs DF�, As
us�d in this D�1�, the t�r � "s alI busin�s�" e�ns a busrn.�ss that eets the criter�� s�t
fi�rth in sec�ion 3(a)caft�e S all I��sin��s Act;�s a end�d{15 I.J.S.�4 C32),�r�d"rninor�ty
and wo en's b�siness �nterpr�se" eans a busine�s �t i�ast 5I per�ent t� ed and
cantralled by rr�inority group rne bers ar wa �n, For th� p�arpase m£ this definition,
" inorit� group members" ar� �fre���.mericans; Spa�ish-sp�aking, �p ish �u am�d c�r
S�anish-heritag� A ericans, A�i�n-A �rica�s, and A ericar� Indi s. I��v��oper ay
rely c�n writ�en repr�sentatians by bus�n�s�es regardz�g their st�tLis as r�ainorifiy �nd fe a1�
busin�ss enterprises in If�u o�an i�d��e�d�nt investigation,
Subcontract Provislonsa L?�velc�p�r shall znclud� the provisi�ns related tc� Ncsr�-
I?iscrimznation, Accessibility, Af�'i �tive A�t�c�n and Ez�playment Frovisic�ns, �nd
Minority and �Vo ��-(� �d �us�ness�s, Acc�ss �c� �2ecards� and "��ctic�� 3'? Clau�e
contained �ithin thi� I�Ft� in ev�rg� subcc�ntra�t car �urch�se arder; sp��ific�lly �r by
r�f�ren�e, sc� t�at such pz°ovisxo�s c�zil be b�nding u�aor� ��ch �f i�� s�b r��ipients or
subcQntractors.
Inde�endent Con�ract�r,l�Tcrthxng�a�ta���d in this DFI�is intended to,c�r sha11 l�e�anstr��d
in any rrla er� as creati�� a�r�s�ablishir��th�r��a�i�ns�ip of e ployerl� ployee between
the parties. L7evelop�r sh�ll a�aIl fii es r� �in�n"inc�ependent�c�ntractar"�ith respect to
the s�rvices to be p�rfo ed �nder tl��s L�F�. �ity sha�l be ex�r�pt fram payrraent c�f a11
Ur�e plc�y �r�t Cc�mpens����an, FI��1� retire �nt, ��fe andlc�r edical in��r ce �nd
Work�r's Co pensatia� Ir�sczr�nc�, as I�ev�l�per is an indepe�d��t c�ntrac�c�r.
I��c��nztion. Deve�t�per shall �nsur� recogn�tio�z of�he r�1e of�it� �n prcaviding �ervic�s
thrt�ugh th�s I)FAa A�I acti�riti��, facila�i�s, and it� s�til�z�d pursta �ta��his L�F�i shall be
pro inently labeied as to fundin� so�rcee Ira addi�ion, the Developer will include a
refer�nce ta the supp�,rt prc�vid�d her�in�n a11 publ�catians made passibl��rrth fu�ds made
availabla der thzs FA.
Amendrnents. �ity or L�eveloper r�ay ann�nd this L�FA at an� ti � provided th�t su�h
a endments ake sp�cifc referer�c�to t��s II;)FA, d ar��xecut�d i� �ting, si�ned by a
duly authorized repr�sen�ati�e of�ach p . Such amendzrrer�ts shall nc�t invalida�e th�s
LL�F�,nor r�lieve�r release C�t�or Developer fro�its �bli�a�ic�ns�.ind�r this�7FA, If such
amendments r�sult in an increas� in th� funding provided ur�der th� DFA, such
odificatiQ� sha11 be ffrst apprc�v�d by the �ity"s gc��ernir��body, I�o�v�v�r,a �ndtnen�s
which do nc�� r�su1� �n substa��i�� or fiznctic��al �hang� to th� c�ri�inal int�nt af the L}F1�
and d� �ot caus� incre�s� tc� the rra��im�r�cz caunt payabl� und�r this DFA sha11 be
de�med`< inor a er�d ents"��d �y �ae agr��d to rn�rit�ng be eer�t��I�ev�loper d
the �ity Mana��r, or d�si�n��.
D�velopment Funding Agr�ement-K�Developmenf Co�npany,Ino.ancl the Giry ofReflding � ( � `� �� �:
Assi nab�litv, l�ev�loper shall n�t�ssiga� or tr sfer any znterest in this L)�'I� without xhe
priar�vritten cc�ns�nt of�ity theretc�; provided, however� tha�claims fe�r�nan�y due or t�
become due tc� I)�v�loper from �rty under �his I3FA. ay b� �ssign�d t� a bank, t s�
cc� pany, c�r oth�r financial inst�tution �vithc�ut su�h a�aprov�Ia I�otice �f any s��h
assig ��t or tg sfer�hall b� fia ished pro pt�y to City.
Suspension or �'e ination. Ir� a�co�dance with 24 �FI2 �5,43, �ity �ay suspend or
te inate this L9FA �f D�velope� at�ri�lly fails to c€� piy �ath �r�y te s of this I)��,
which in�l�d� {b�at are not limi��d ts�),the f�Ilowing.
a� Fail�r�to ca pIy with any t�f th�ruies,re�ulatio�s or prc�visic��zs refer.red tc�h�rein,
�r such �t�tut�s, re�ulations, ��ecutiv� c�rd�rs, d �U gu�d�lin�s, p�lici�� �r
di�ect�v�s as ay becc� e applicable a�a�y tian��
b} Failure, for any re�sc�n, c�f II)ev�lc�p�r to fu1fi11 i� a ti �ly and prop�r rn�nner its
obligati�ns under this D�'�,;
c} Ineff�etzv�ar irnproper�s�of fu�zds p�°ovid�d�and��°this I)FA; ar
d) �ub rssior�by L�evelaper to City��ports r�q�xred�r�d�r this LL�FA that is i�carr��t
c�r incc�mp�l�tt� i� �ny at�rial resp�ct.
I�'I)evelc���r de�aults izz th�perfo an��af any te c�r�andition c�f this D�'f�,it must c�re
that def�ult by �at�sfactory p�rftsrman�� �vithsn 1Q d�ys a�t�r s�rvice �ptar� it by �fty �f
it��n notzce �f d�fault. If L�eveloper Fails to c�r� the d�fa�lt�ithzn tha� time, then ��ty
ay t��-rr�inate this I�FA withou� furthe�°noticea
I� aec�rd���e with �4 CF�'R �Sn44, �hzs �FA ay �.1so b� t�r inat�d for �o�ver�i�nce by
�ith�r City or Develcrper, in wh�le car in part, by s�tting �'orth t�e r�asons f�r su�h
te inatxon, th� �ff�ctzv� dat�, and, �n �h� case �f par�ial te ia��txc�r�, the par�i�n to be
t� it�ated. Hcav�ever; if in the ca�e of a p�r�ia� �er in�tic�n, �zty d�t� in�s that the
re air�ing portion of the �ward�ill r�c�t accc� p1r�h the�ur�os�s for whi�h th� award�as
�de> �ity �y t� ir�ate thrs DF'�1 in it� �ntire�.
In the ev�nt that�ity f��ls tc�r�c�ive CD��i funds,or th��11c�catic�n of such fiands is reduced
by FIUI7, �i�y may terminat� this L}F� by giving notzce tc� I)ev�loper by r���stered ai1
d by paying any�utsta�din�balances d�e to L)ev�loper pursuant tc��he s�rvices actu�lly
rendered und�r this L�F�i,r�gardl�s� of the so�arce of funds.
Severabilit�. If any pravision ofth�s L7F�is held invalid, the r�lnaxYlder af this I�FA sha11
�at be a�'fected thereby and all other parts af t�is C?FA shall n�vertheless be�n full forc�
a�d effecte
�aivere �ity's farlur�ta act w�th respec�to a br�ach by 1Jev�loper dcses not waive its ri�ht
tc� a�t �uzth r�spect ta subsequent or similar brea�hes. Th� failure �f C�ty t� exer�ise or
enfarce a�y right csr provis�on shall r�ot canstitute a vaai�e�°of�u���ight csr�rs�vision.
Ti e f�r l�ctionse City and I�ev��cs�,�r ��a11 each do th� a�tions r�quzr�d of the , on or
befo�e th�ti es s��cified ir�this I��'�.LT�less�th�rwise prc�vid�d, City�h�11�ive required
apprc�vals or disapprov�is w�thi� ftsa�rt�en {14} a�s �fter sub i�sior�, exc�pt matt�rs
�h3ch ust be d�cided by th�R�dding Ci�y �o���il, �vh�c�i sh�11 be d�czd�d c�vrfihin forty-
Deveiapment F'unding Agreement-K2 Develapment Con�pany,Inc.ancl the City of Redding � ( `� �' �'.
�v� (45) aysa
Go ter�arts. This L��'�i rnay b� ex�cuted in twa (2� cour�ter�sart originals, each of which
shall c�nstit�t� �a�e and �h� sam� ir�strutnent.
�r7orit�of Cc��te�ts o�°II�FA, In the eve�zt af a�onfl`rct b�t�ue�� �he ter s of tl�zs II�FA �nd
th�E�hibits,this L��'11 shall be giv�n pr�c�dence:
Fc��s �o issio�s Gifts �rr Interests. N�ith�r party sh�il b� liable for �ny r�al estat�
cornmisszons, br�kerage ��es c�r �nd�r's f�es which ay �rzse f�°o this L7FA. �'rty d
D�v�lop�r each r�pr�ser�t that nelth�r-has �ng�ged any brak�r, a��nt or firader, and tha�
neith�r cl�i s s��h�ec��n issi�n o�°fee,ir��c� �ction wi�h this DF'�, L��vel�p�r sha�1 paY
no fe� car �c� missie�n, ak� no �ifts and provide no rnterest in �ny �ity L�a�s to any
e plo�ee or�ffi�ial c�f tiae C1ty.
Entire I��A. Th�s DFA., �n�iudir�g all of the e�hibits and a�tac ent�, inte�rates a1i of the
te s and �c�r�ditr�a�s r�lated s�r �1��rde�ta� �� its subjec� rr�atter, and supe�s�des ail
ne�otiatior�s a�r pr�vic��as agr�� ezlts between the parties with resp��t to its sL�b��c�anatter.
Warvers �nd P�mendmen�s. All �raiver� �f the pro�risians of thrs DFA rn�ast be �� writing
d sign�d by th�apprc�pria��aut�orzti��of th�C�ty or the L3�v�lc�per,and a1� endments
her�ta n�list b� in iting and s��n�d b� th� appr�priat� authc��iti�s c�f th� Czty and �he
Develap�r,However, a end ents whi�h da�not result�n a subst tia��r fu��tionai change
to the ori�inal int�nt of th� D�'A �r�d do �ot caus� incr��se �� the axi �m a��ur�t
payabl� under this D�'A shall be d�ern�d " inc�r endm�nt�" and ay be agreed t�s zn
iti�g b�twe�n II:)�veloper�nd th� C�ty Man�ger c�r d�signee.
Non-liab�l��of���C?fficials and Em�l�ee�. I�o me�aber, offcial o�° � ploye� of th�
�ity s�sa11 be persanally Iiable to the Il�ev�lop�r or any successor i�int�rest, i� the event c�f
y defaul� or br�a�h by the City or fc��° �ny a �unt whieh ay b�co � due to the
L?�veZa�er or its s�ccesso�s, �r c�n any obligations ur�der the t�rrns c�f this II:?FA.
Notices a�d I�e a�ds. Any noti��, de and c�r c�ther �o uni�atio� unde� the DFA. by
ei�her� y to th� ather sh�ll be dee �d t�a hav� be�n full d�aroperly gdven when made
in writing, enclosed xn � s�al�d env�ic�p�; and deposited i�the Unit�d State� Pc�st C�ffice,
c�rtifi�d ail, pastage prepaid, to th� addr�sses fc��° �ity and L}eveloper stat�d �n Sectiun
1.
Jurisd�ction and Venue. y Iega�ac�ion�s}conce ing th�I�Ft� c�r th�perfc� ance of a�y
�arty thereur�d�r sha11 be brou�ht only i�th�co�rt�f apprapriate jurisdict�on in the�o ty
of Sha�ta. T�� L}ev�lop�r and the �zty agree that ju�isdict��� and v�nue sha�l only be in
said cc�urts,
�ttorne�s' Fee�. Tn th� �v�nt aa�y legal �ction, ineluding arbitration� is brau�ht by either
party tc�thi�L�F�tc► enforc�thzs Z)F� or far breach c�f this DF� �r far� declarati�n of t�e
ri�hts �nd du�i�s under t��s I�FAg the preva��ir�g p�rty shall reco�ver c�sts and reasanable
at�o ey's f�es in addition to�ny c�ther r�1i�f to wh°rch tl��t part��may b��r�titl�d,
I�10 Pa �Dee ed Il:araft�r. In th� ��er�t c�f� di�p�t� b�tw��n th� part��s h�r��c� c�ver the
e�r�ing c�f this L}FA,, na par�y shall be d�� �d t� h�ve b�en the dra�er her�of, and th�
pri�cipl� af 1aw that�c�ntracts ar� cons� ed ag�:znst the dr�fker do�s not apply.
llevelopment Eunding Agreement-K2 Developrnen�Gampany,Inc.and the�ity of Redding �� ( �<l„x �;
II�I WIT�ES� �+II-�E C�F, the Gity �r�d th�L7�velop�r ha�e�xe�uted th�s �1gr�e ent c�n the
r�sp�ctiv���tes ��t fc�rth belc�yvo
�i cof � i , a urr�czpal car�ar�tit��
�`���.
�M „�.��.�..
� �` �>
z3��
��3�� � � � ��"��°`�
�
�'�uTENESSA AUDETTE9 MAYOR
AT�TE�`�'; A���(��T�I>�1S TC� �'C� a
� � i � �. �a� � .�
'i;�, ��, � �� �' ��,,�� �'
��r�� �,��� � �,� �� �,:� "� � "
�y: �harl�ne Ti����, ��Ity� ���r�C �y; Christ�an I�. Gurtis, �ity Attca �y
2 �v�I� � t �r� � �, �., a �alifo ia
cor��ra.ticsr�
�..
�� �������
� �,'e� �''� ,
�y; ar�iel ,a�t; Chi�f�'inancial C�ffic�r
�,IST F�� I ITS
�XHIBIT I�: Prc�perty[.egai D�seriptlan
EXHIBIT 1B: Farcel IvCap
EXHLBIT 2. Reserv�d
EXI-IIBIT 3; l�eserved
�XHIBIT 4: Scope of Develcspment
EXHIBIT 5: I?r�timinary Project F�udget
EX�IL�T�'6; �chedul�c�f P�rfo �nce
E%�II�IT'7. �nsurance 12�quirements
EXE-IIBIT�. Sectic�n 3�Clause
EXI-IIB�T�. Pre-�4ward 5�ction 3 camplian�e c�rti����ion
EXHI�IT 10; �rxt`r�Lobbying�ertificate
Development�'uuding f�greement-K2 I7evelopmen�Goznpany,Ine.and the Ciry c�f Redding 11 � +` ' ;4� e
� I� �' 1Aa
P�at����t��L���o�.1)����������v
TI�e l�r�d describcd h�reir�is�ituated in th� �tat� �af�alzfc�rrri�, �e�ur�ty af Sh�sta, �1�y of f�eddi�g,
des�r�b�d a�follav��:
`The �t��th one�half crf the �outhw��� c�n�-q��rt�r arad the�ar°theast c�ne�q�art�r of th� South�est
c�n�-qu�rter of S�ctic�n 2�, Tcs sh�p 32 Nc�rth, Rang� S �N�st, i�I.TT�.�n�I�,
E��EF'TII�� TI�� F�2C) th� fs�llcawi�g twcs (2) p�rcel�.
F�areel C�rsea
� pc�rtion ��th� I�tc�r-theast ar�e-quart�r€af�h� S��.ithv�rest or�e0qu�rt�r c�f S��tzc�n 22, To ship 32
I�Torth,l�ange 5 'G��st,�I�I�.I3.8�1V1., descrlb�d as fc�llcsws;
Begi rng�t a pai�t or�the t�Tc��°th li�e c�f`s�id I�Iorth�ast c�ne-q�art�r ofth� �t�uthv�est c�ne-quarter,
200.Q4 f�et�Test c�f the I��rth�ast c�rner th�r��af,ther�ce, West a1o��said Nar�h 1ine;a distanc�of
390.OQ fe��, �re or I�ss, tc� � poiz�t 60a0C} f�et East o�the I�Tcsrthw�st�c�r��r afthe I�Tortheast c�ne-
quarter of the I��rth�ast c�r�� q�arter c�f�h� ��uth�r�st ��e-quart�r of S��tion 22;then��, South
300.00 fe�tg th�nce, E�st 390,00 f�et, car� �r� l�ss �� � pc���t 3QO.Q0 �°e�t Sc���h of th� point of
b�gi ing;�hen�e,Ne�rth 300.00 feet tr��h�p�i��caf be�i ing,
Farcel Tv1o;
A portior� of t�e North�ast one-quart�r co er caf th� South�rest c�ne-q�arter c�f Sectran 22,
To ship 32 I�orth,I�ang� 5 i�est, M.I�.E3.��., �s fall��s;
F3�gi i�� at th�I�Torthe�st co �r t�f the �c�uth�v�st c���-q��rt�r of sa�d S��t�or� 22; then�e, �U�st
�long th�North 1i��c�f said So�thdvvest a�n��quart�x a di�tan��of 150.00 fe�t9 th�nc�, South 300.00
feet; th�n�� East 150.00 fe�t tcs the Eas�lz�� t�f saad ��uthv���t �n�-q�a�ter; then��, �orth 300a00
fe�t to th�poia�t�f b��i in�.
l��'N: 1�5�17090a1
E)eaelopment Fuuding Agreement-I�2 Davelapment Con�pany,Inc�.and the Ciry of Redding �� � �` ; i� ��
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L)ev�lopment Funding Agreern�nt-K2 Devetopfnent Campany,Inc.and tl�a City ofRedding �� I 'x � �; �,
(
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L evelopment Funding Agreeznent-K2 Develapment Company,Inc.and the City of IZedding �� � �" �', �'
I I 30
��s�����
Development Futidiiig Agreement-K2 Devetopment Gomp;�i�,Inc.arid tlie City of I2adding �� � �a ' ��� i:-
I 4�
�ct���ca�' ����,�� ��t`r
A, �eneral.
Th�D��elc�per a�re�s that tla.�pla �d� prc�v� ents are i�accard c�w�th th�pr��is�on
of this A�r���ent and th� �a1 s� dr�wi��s, ��d r�lated d€�c�r�g��ts approved by th� City
pursu�nt h�reto. C}nly pred�v�lc�p �r�t act�a�ns wr�l b�take�by�ev�lope�°and coz�struc�z�an
�c���it��s ay ns�t b�taken until the er�virc� �r�t�1 rev°rew� are �c�mplete.
�, 1'red�v�lc��ment F��tivi�ies.
Predevelap ent a�tzviti�s anct �c��ts a��cess fc�r s��cessfnl c� pi�tzc�n of th� Pr�jec�
�nclud�, b�t ar�r�ot li ited tc�r
� Ar�hite�t�aral
Bid�'�°��ur� ent
� Civ�lI�esi�r�
Develc�p e�t Servic�s
� Er��in��r�r��
� E�t��lerrz���
� Envirc� e�tal �evieva S�rvic�s
l�Iapping
Starveyin�
T1�� Developer sha11 b� respc�ns�b1� fc�r p�e�arin� �rnprs�v� ent �lans, sf�dies, drawin�s,
enviro�7mental clear �es, d�cu�ents, ��d calcula�it��s req�ircd t�a w�rk towards
sub issio� te� th� �ity c�f 1Z�ddir�� �ev�iop �nt �er�i��s ��p�rt e�t tt� c�b���rt approva�
af th� reear�figuratzo� of th� �it� as a res�derztial s�abdi�visic�� ca�sistz�i� o�'at ��ast 12Q
single�f�mily lots, Th� D�velap�r sh�11 pr�pare, ar�d sub it t� th� C�ty far approval t�e
afor� entianed i�nprove �r�t �� s� d��w�ngs ar�d s�udie� includ�ng but �iot lirnit�d to
gradin�, draznage, stor�m dr�in�, 1�nd�����, �r�vircrn erttal-pro�ect�a� �as�res, stre��s,
s�r�ver, wat��°, �1�ctric, �r�d ��lated facilxt�es. The �rnpr�ve �n� plans sha11 show cornpl�te
plansg p�°c�files,a�nd d�ta�ls ft�r��1 r�quir�d i prc�v� ent�t�b�c�nstr�cted,ba�th public��d
private, ir�cl�din� �c� oz� ��°�as. Th� �ity sha11 h�v� th� right c�f r�view csf a11 pl � d
draw�ng�, zncludin� any �hat�ge�ther�i�: �ev�Iop��sha1� c�btain�ity written approval for
any necessary or desxr�d modi�ications to th� apprc�ved pl �.
�. Ata�licable Codese
A1I public � �roveme�ts shall b� d�si�r��d and co�struct�d ir� �c�nfc�r an�e with �he
Redding Nltizr�icipat ��de, �ity ��nstructicar� �t dards, appl�c�ble t�t�lity az�d
transportatic�n rnast�r plan(s}, ��ad th� sp��ific standards c�f �r�y other utality �omp y
inv�lved i�the subdxv�si�n pr�j�ct.
Devalapment Pundfng Agr�emenf-K2 Develapment C�mpany,Inc.and the City ot Reddit�g �� � i ' ;z ;'.
5�
� ��� ���� t���� �� ����'
L�e��laper tc�pr�r�vi�'e b��akdow� �f��dget nat tca�xceed�$2,500,000
�°� �velc� � t ��st��t� �aa°��� � o t�
�rchat�et�ral $166,3 2�
En ir�ee��n �625,OQ0
Le al �30,000
E��irs�nrr��nt�l Re ort�s� �250,000
�xea�technzeal R� cart $2�,Q00
Im act F�es �375,000
CTeneral P.e uirernents �397,917
S A. �1, 72,2�5
t �z~�a�st� A � ��
Gv�rh��d�I'rafit �2�1,4`74
Co�ti� e��ies ��i2,500
�IJ 'I'A �333�97
`I' A. � I r� E C �""�"� �2,2 6,2 �
Development Punding Agreement-K2 Development Company,Inc.and the City af Redding 17 � �� � �� �`
S� E UI,E t��` E ¢� AI���
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Davetoprrtent Funding Agreement-K2 L3eveIapinent Gompany,Inc.at7d the Gity af Recldrng �.$ � �� w
70
I������t���2�c�t.tl��vt��t�'�
�. Unless m�dified in writi�g by�ity's I2isk I�rlanager,L�ev�lc�p�r sh�ll Inaint�in the follawing
�c�tcd insuranc� duri�g�h� durati��of�he L�Ft�:
��� ��e eq�ait°e TVc�t eq�ir°ed
�ammercial�eff�eral L,iability �
Catnprehensive Vehicl�Liabrlity �
ONorkers' Compensatron a�id Emplt�y�rs' I.�abrlity �
Professronal Liabllity(Errors and t�����sxc�r�s} �
B. �e�verage sha11 be at least as broad ��4
1. Insurar�c� S�r�i��s C?ff�� fo rzu b�r C(s-0001, Ca er�z�1 Gen�ral
L,iabil�t�y Iz�sur�r�c�,in��� ��nt not 1�ss th�r��1 g000;004 pe�°oc�urrence d
$2,000,000 g�x�er�1 aggr�g�t� foz°bodily inj , pe�°s�on�1 i�jury d prap�rty
da��g�;
2e Insura�l�e S�rva��s C3�fic�f�r n� b�r CA-Qf�01 �Eda 1t$7}, �ompr�hensiv�
A�ato obile L,iab�lity Insurance, which pravides for tcstal li ��s c�f not 1�ss
�han �1,000;000 �o�nbi�ed s�r��1� 1� its per accident�ppilcable tcr �11�wr�ed,
n�r�-c�vv�,ed and hir�d v�hi�l�s;
3. �tatutory �orker�' �c�rripe7l�atio:�r�qurred by th�Labor�'c�de c�fthe S�at�of
Calift� ia ��d � ploy�rs' �,iability Insurar�c� ir� �rr�o t no� l�s� th�n
$1,000,000 p�r c��c�rr�nc�,�at1�thc�orkers' �c�mper�s�tion and Empla��rs'
I.iabili�y polic��s s�ai1 �ar�tain�h�i�s�rer's�vai��r c��'�t�br�g�t�c�n in favor of
City, i�� e1��ted officials, �ffc�rs, e ploye�s, agents �nd v�Iunteer�g
4. The �ity do�s nc�t �c��pt ir�sur�n�e certificat�s c�r �nd�rsem�n�s varth the
woxd�ng "but or�iy in the e�ent af a na ed�ns��°ed's sa�l�negii��nce"or any
other verbia�� li �tir�g the ins�zr�d'� insurance respc�nsibility.
�'. Any deductibles ar sel���� �d r�ter�txc��s �zst be declared tc� and �pproved by ��tye �.t
th�op�ioz�of�he�ity,either; �he insurer sh�11 reduc�ar�1i in�t�such dedu�tible�ar self-
ins ed r�t�ntio�s as resp�cts the�ity,xts�lect�d offcials,officers,� ployees,agen�s and
vQlnr�teers; or th� I�evelo�er sha11 prc�c�re a bc�nd guar�r�teein� ��y ent of Ioss�s d
rela�ed inves�igations, clai s�d in�stration and defense �xp�ns�s.
I�, The G�n�ral Liabiiity shall cc�r�ta.in�r be�ndars�d tc� cantain the follo�ving pro�risions:
1 e City, its el�cted s�ffi�ials, offic�rs, �rz�ploye�sg�nd ag�n�s ar�to be�avered�s
add7t�onal ins �d �s r�speets liabillty aris�ng e��t af wcark ar operatic�zls
perfo ed by c�r �rz beh�lf�af�ev�lo�er� �ge is�s ovaned? 1�ased c�r us�d by
L3evelaper� �r a�ta c�biles c� ed, leas�d, hir�d o� borrow�d by e��lop�r.
Th� cov�rage sha11 ccatat�ira nc� s��cyal li�altations c�r� th� s�ope of prestecti�n
Deeelopmant Ptianding Agreenient-K21�evelopment�ompany,Inc,ar�d the City of Redding �� � g, „4' ;w
a�forded tc� City, its �iected s�ffi�ials, oftzcers, � ploy�es, a�er��s and
v�lunte��°sa
2. The insurance �over�ge of I)�v�Iaper shall b� primary insurance as resp��ts
�ity, its �lect�d offici�is, of�c�rs, �rnpioy��s, agen�s and vol�ant�ers. �ny
�nsuran��or self-rnsur �e �intain�d by City, its el��ted of��fa�s, af�cers,
�mploye�s,age�ts and volua�teers,sha11 be i�excess ofll:)�v�Iop�r's i�sur�t��e
and shaIl n�t�o�tribut�with it.
3. �c�vera�e sha11 st�te that th�insur�n�� �f Develo��r s�a11 apply s�parate�y�c�
each �nsured �ga�r�st whca clal is ade ar s�i� rs brc��ght� excep� �vi�h
respe�t tc��he l� its of the �ns�rer's li�bality.
4, Each i�suranc� pc�li�y requir�d by this DF� shall b� �r�dorsed ta s��t� that
cov�ra�� shall not be � ee��d �xcept after thirty (3Q} �alenda�° d�y�" prior
i�tez� no�ic� has beer� g�ve�a to City. I� additian, I��v�lc�p�r agrees that zt
shall n�t redu�e ifis coverag� or li it� on �ny such policy exc�pt after thirty
(30} cal�nd days' prior itt�n nc��ic�has b�en�iver��a �ity.
E. Insurance is tc�be placed with i�su��rs wi�h� curr�nfi A. . ��s�"s rat° � �f z�o less tha�A-
�II.
F, L7evel�per sha11 d�signate the �rty of Redding as a ��rtifi�at� Iiolder of the i�surar��e.
l��ve�ap�r sha11 fi� ish Ci�y with ��rtifc�tes af insurar�ce ��d ar�gi��1 e�darsem�nts
�ff�c�in� the cov�rag�s rec��z�r�d by this claus�. Certificates �nd �ndo�°se �nts sha11 be
furnished to: 'sk �nag�rn�n� L��partr�ent, Cityy crf Reddx�g, 7'77 Cypr�ss t�v�nu�;
Peddir��, C�96t�01. 'I'h� certi�icat�s and end�rs� �r�t�for����ins�ara�ce pol��y are to b�
signed by a �erson aut�aor���d by the ir�surer tc� bind �overage o� its b�half. A11
endt�rs� ents ar� to be receiv�d and �ppraved by th� City's l�isk Manager p�°ic�r to th�
co�nmencement c�f contracted service�, City ay wi� ald paym�nt� to ��v�loper if
adequat� certificat�s c�f�n��ranc� d end�rs� �nts required ha�� not b��n prca��ded, or
nc�t beer�provid�d in a ti��l� a �r.
�, The r�quir� ents as to the typ�s and li its of 7nsur ce caverag� tc� be �intai�ed by
I�ev�loper as req�arred by this DFA, and any approval of said insuran�e by City, are not
inter�ded to and wi11 not �n any rna er li it or q�aal�fy the Iia6ili�ies d tablr�ation�
oth�rvv�se assu ed by �ev�lop�r pursuant to thzs �D�'A, ir�clud�ng, witho�t li �tat��n,
prc�visions conce ing inde ifi�at�ona
I-�e If any policy af insurance req�zired by this 5�ction is a"clai s �d�'" pc�licy, p�rsu t to
Code �f��vil Procedure § 342 arsd Ga�re ze�at Cc�de § 945.6, D�vel�per sh�11 keep said
insur ce 1�effec�fo�a period a�f eighte�n{1�} a�ths aft�r th�ter�minatinn of this�}�'A.
Io If any darr�age, incl�diz�g death, persc�nal �n� or prop�rty da ag�, occurs �� �c� ect�on
with th� perfo ar��e af this I���., IIi�velc���r shall i n�di�tely nc�tify City's I2zsk
1� ager by t�lephone at (53Q) 225m406�a Nci lat�r thar� thr�e {3) �a1�nd d�ys after th�
��ent, Dev�Ic�p�r shail sub �t a i�t�n r�port ta� �ity's '�k li��ra�g�r �c�r�t�i��ng th�
folic��ving inf�r�nation,as�.pplicabl�; 1}r�a e az�d addres�c�f inj �d or de��as�d p�rsot�(s}�
DevelopmenC Funding Agreement-K2 Deuelopment Cornpany,Inc.�nd the City of R�dding �� ) s' ; � �,:
2)z�am�and�ddz°ess af vJitnesses;3}n�.zn�and�ddr�ss of I��v�lop��'s z�sur��c��ampa�y>
a�d 4) a d�t�il�d d�scription af th� da agc ar�d�heth�r y�ity prap�rty was ir�volv�d.
I�evelapmant Funding AgreemenC-K2 Bevelopment Cornpany,Inc.and the City of Redding �� I !; ? `' `v:
I � a
S�c�°z�z�3 Ca:��vs�
I�il S��tian 3 �c�vered con�r��ts shall ir��lud� th� �o1l�wirzg cl�use (r�ferred tc� as th� Seeticsn 3
�I���e)a
A. Th�w�rk to be perfc�r �d urider tl�is co�tract is subjeet to th�r�q�zir� �s�ts af��c��a� 3 of
�he �-Ic�usi��az�d Urb�n I7�v�lc�p �,n�A�t c�f 1968, as a ended, 12 U.S.�. 1702� (Se�t��an
3)e Th� p�tp�se of Section 3 i� to e�sure that ecc�n�mic c�pport��ities, �s� i port tly
err�pl��rri�z�t, ger��rat�d by c��taia� I-�UD �'in cial assist�nce shall� to th� gr��test e�t��t
feas�bl�, b� d�r����d tc� law- �nd ��ry lc�w-irl�o e perso�s, particular�y those �vhc� ar�
recipie��s of gs�v�rn e�zt assistar�ce �°or ho�si�� �r re�idents of the cca unity �n which
the�ed�ral ass�stance is spe�t.
Ba The pa�ties to thas �ontract��r�� to camply with I��J�°s r�gulati�ns in 24 ��'1� part 7�,
�rhich irr�pl�gnent S�ctian 3.�s evid�nced by their e�e��z�i�az�csft�is cc��tract,�h�parties to
thfs cc��tra�t cez-��fy th�t they are und�r �c� �o�tractu�l c�r other i pedi �rat that woi�ld
pre�r�n�th� fr�rr�t csarr�ply�z�g�rith the S�ctfo� 3 regulat�a�ns,
C. T'h� Award l��cipient, ��ntractc�r, a�r I�eveloprr���t C��v����° agrees ta s�nd t� �ach 1�bor
c�r�ani�atio� or r�pr�seratat�ve c�f�vorkers witl��h%ch th� Avv�rd R�c�p�ent, �or�tracto�, c�r
I��v��opment CD ��•has a�c�ll�ctiv�bar�ainir�g��reer�ae�t or other�nd�rst��d�ng,rf any,
��c�t�c�advising th�1ab�r��°g�nizatior��r w�rkers'repr�s��tativ��f th�Aw�rd R�cipi�r��g
�aar�tra�t€�r, c�r L��velcr� er�t (�w��r"� ca rtme�ts und�r this Se�tzon 3 clause d �vill
pc��t ccspi�s�sf�h��ot�c� in cc�r�spic�c�us plac�s�t th�work sit�wh�r� botl�� plc�ye�s�nd
app�icants fc�r tr�i�i�g d ��nplc�y �n� pcssitiar�s can s�� �h� r�e�ti�e, The noti�� shall
d�s�rib�the Sectic�n 3 pr�fe�°en�e;sha11 set farth th� ini �. number a�djob titl�s subject
�c�hir�,�vailability�f ap���n�ic�ship�nd trainin�positic�ns,ti��qualifi��tions f€�r each; ar�d
�h� narr�� �nd 1oc�tfo� of th� per��n(s) taking applica�ians for e�eh of th� pc�siti�ns; ai�d
the an�icip�ted d�te the wor� shall be�in.
I�. The ��va�d IZ�cipi�zat, Cantr�cfio�, �ar I��velap ent�} er agrees to enga�� i� quali��tiv�
��`f�rts �n�l�ading but��t li it�d to;
1, En�agin� i�outre�c.h e�forts to gen�rate job applic�nts who ar� Tar��ted S�c��c�r� 3
Workers.
2a Prouiding�r�ini�� or��apre�ticeshzp opp� it��sa
3. Pres�iding�r r�f�rrin� �ectic�n 3 W��k�rs to servic�s s�pparting vaork readiness d
r�ter�tian�e.�.,wc�rk readla��s���tiv�tzes,int�rview clathi�g,tes�fe�s�tr�n�portati�n,
child�ar�)a
4, E�gaging zr� o�tre��h �ffarts tc� id�r�tif� d sec�r� bids from Sectio� 3 busin�ss
c�nc� se
5. Pramc�ting th� use of busxn�ss r��istr��s d�sig�ed tc� creat� a�p�ort�nzt°res for
disadv t�ged�nd s a�l b�zsin�ss�s.
6. Engagir�g�n e�utr�ach d ref�rr�ls�rith the st�t�'s c�n�6stop syst�m of th��vtrrkforce
I ov�ti�n �r�d(��apor��r��tg� A�t.
E. Th�Av�ard R�cip�e��, �ontr��tsar, c�r I3ev�la�rri�nt Qwn�r agre�s tc� include this S��tion 3
clause in every subc�ntra�t subje�t ts� cc� �lianc� with reg�lati�ns 1z�24 �F�s part 7S �r�d
agre�s�c� tak� appropria�e�c�ia�, �s prc���d�d�r�an applzcabl�pro�isi�n�f th�sub��n��°�.�t
Development Funding Agreement-K2 Ueveloprnent t"ompany,Inc.and the City ofRedding �� ( v = � w`
ar in this S�cti�n 3 claus�, upon a findi�g that th� subcontra�tor �s i� vi�lation of the
reg�l�ti�ns in 24 ��'�.�aa°t 75. 'Th�.Award T�eci��e��t, �c�ntracto�°q or I�ev�loprr��nf C� er
wi�l nc�t sub�s�r�tr��t w�th ar�y sub�ontra�tar wh�r� the �1��rd R.�cipi�r�t, ��ntractor, e�r
I�evelop �r�t Own�r has r�atice o�° knowl�d�e that th� subcc�nt��ctor has b�e� f�ur�d in
vicsla�ic�� c�f the r�gulatro�� °rn 24 �FR�Sart�5,
F. 'The Awa�°d I2��i�a�en�, ��an�ractor, c��177���1op e�t O er ust e�t th� ��quirements of
24 �FR p�rt 75,19, r�g�rdless �af wh�th�r S��tic�� 3 lar��uag� xs in�luded ��a �.gr�emer�ts,
�rogra r��c�Ia�€�ry agz°�� ents, ar c���ra�t�a '�hese r�qu�re���nts ir�ci�d�:
1. E plcay �r�t ar�d T��iz�ing
ao T�a the �r�at�s� �x��nt feasible d coz���st��t with e�lstang Fed�ral, st�te,
a�d ic���l laws ��td regui�t�ons, contr�ctors �over�d by this subpart will
erssur� t�at e ploy �nt �r�d �r�inin� oppc�rtuni�ies arisi�g ir� �on�ae���c�n
with �ectic��l 3 pro��cts are pr�vid�d ts� ��cti�n 3 V�ork�rs within the
e�ra�olitan �r�a (�r nn �trop�litan �ou�ty) in which th� project is
lo��t�d.
b. ere fe�sfble, g��°ior�t� for s�pp�art ifies d tr�i��ng sho�Id b�given tc��
�. 5ectic�n 3 Wc�rk��°s r��xdxn� wit�rn th� s�rvice area ar the
n�i�hborho�d ofth�prs��e�t, �nd
ii, ���th��ild particip ts,
2, �ontractirsg
a. Tc� th� �r�at�st extent f��sibi� �nd �a�n�i�tent with �xi��in� Fed�ral, sfi����
�nd 1��a� laws and r��ul�tions, r�cipie�ts �overe� by this subpart s�ali
�ns�re�oz�tr��t�fc�r cvork a�vard�d��co ectton with��ctic�n 3 pro,��cts a�°e
provrd�d �c� busiraess ct�r���rns t1��t provzd� e��n�sr�ie apporturzitz�s tc�
Sectiar� 3 �rk�rs residing vuith7� t�e �e�rapc�lit�r� �rea (or
n� etrc��alit�r�county� in whi�h th�pr�����i� located.
be �re fe�sibl�,priority �or��r�tra���r�� c�ppartl�n�tz�s shc��a�d be grven tc�;
�: S��tr�r�3 busi��s�c���e s�h�t presv�d��cc�r�a ic opp€�rtunzti�s�o
�ecti�z� 3 �orl��rs residin� wi��an th� s�rvice �re� or the
rz�ighb�rh+�od c�f th�prc�ject; and
i�. ���th�uild pr�gra sa
C"am Th� Av��rd F�.�cipYea�t, Cc��tractt�r, c�r �3�velop ��� O�u��r will �ertify tl��t any vacant
�mploy�ent pc�sitions, includi�z�tr�:inia�g p�aszti�ns, that e �lled {1) �fter th� c�r�tr�ctor
�s selected but befc�r� the contr�ct �s �xecut�d a�d (�} �v�th persons oth�r than thos� to
whom th�r�gulations c�f 24 �FR�art 7� r�qu�re e ploy ent opp�r�unit��s ta b� �ire�t�d,
v�ere not f�led tc� circu vent the contract�r's c�bligations�nd�r 24 C�""�. p 7S.
�ie N�ancormpliance with I-�t�TI�'s regulatic�ns in 24 �F� part 7S a� result in sar�ctions,
te z�at�an c���his �c�ntract f�r d�f�ult, d d�b �r�t �r susp�n�ic�t� �'ro f�tur� HLTL�-
assist�d contra�ts.
I. LVith r�sp�ct to �€�rk p�r�'c� �d in �o����ti�� `th Se�tio� 3 ec���r�d I�diar� hc�usin�
assist�nc�, S�ctzon 7(b�of th�Ind�az���lf-L��te ir���i�an arad�det��tic�n Assist ���.ct(2S
Development Fianding 1�greenlent-K2 Developmant�ompany,Inc.ar�d the City of Redding �� � � y' �°
t.T.S.C. 4SOe} �1so a��laes to th� wc�rk t�a b� p�rfc� ed t�nder this �ontr�ct, �ectiar� 7(b)
r�quire�th�t t�th�greatest extent f��s�ble,(i)pref�rene� d csppor iti�s for tr�ini��g�z�d
�rr�ploym�nt shall be giv�� to I��i��s, �nd (ii} pref�r�nc� in the award c�f�o�tract� d
s�bcc�nt�°acts shall b� giv�� tc� I�diar� o�°gani�atic�rgs and I�dian-ovan�d Econo �c
Enter�ris�s. Par�ie� �o this cc�n�racti that are s�bj�ct ta� th� pravisi�ns �f Se�tio�1 3 and
se�ti�rz 7(b� agree tc� �c�mply �aith Scctic�r� 3 to the ��1xn�m �xt�nt fe�sible b�t no� in
derag�tic�n a�cc� plian���vith ��ctzon 7(b}.
3, Th� �waz°d �:�e�pient, Gcar��r��ta�, c�r De�elop ent C� er agrees tcs �a ply wi�� a11
rr�onxtc�rir�g, rep�rting, recordke�ping9 �nd other prc���dur�� spe�ified by City of I2�dding
�nd the Un�ted States D�pa�t �nt c�f �I�us�rtg and tJrba� I)evelop �r�t �IIUD�. �,.11
docu�a�ntation,con�r��ts,arzd r�cords sh��Ic�b�r�tained for a i�ai ur�offi��y�az°s fr�
th� date the prc�j�ct has been�c� �I�ted or sevez�y��rs frc� the date c�f th� �ozztract if the
cc�rnpletion date is u o . The A��.rd Re�ipi��t, ��ntra�tor, �r�evelo� �nt C? ��is
r�sponsibl�f�rr prc��iding S��t�o� 3 p�rfo anc�m�trlc�a�d suppartir�g dc�c�a entati�r� ftar
a11 its subre�ipi�r�ts, contrac�c�rs, a�d subc��tractors; as appl�c�b1�,
Develogment Punding Agreement-K2 Development Company,Inc�and the City af Redding �� ( �` ci;;� =,
E 9
�12����dr���6�1YIPC�I��i�E�E&t'I"�F'��A'�I�lv
�r�� ���d ����I��r��� ��r��fi��ti�r�
���� �� �.:c���������� ��r��� ����r���� ��� k��� ��€��°z
r���c� � e: ��el�p�r/ wr��r:
��r��r��t�r �rr��o
�eantr��tc�r,4ddr�s�:
�or�t��� er��ar�: hca��: rr�a�l
��nfir��t A o�r�t{�}: �t� c�f�c�ntract;
The undersigned own�r and gener�l �ontr�ctor c�f th� �bcav�-referenc�d project i� ct�mmit�ed
t� ct�mpiy vvith the S�ction 3 �ct at�d ���ti�n 3 r�c�c�l�tierns. City ca€ ��ddinc� v�riif vv�rk with the
c�wr�er ar�d�he ger��ra(�c�n�r���c�r�o ensur��carr�pli�r�c�, t�th�gr��t��fi exter�t fe�sible; thrc�ugh
fihe�rnpl�ayrra�r�f�f�ectic�n 3 VVc�rkers�c�d T�rg�t�d��cti�r��V�icrrkers, Furtherrrr�ore,the ow�er
h�reby agr��s tca irnplerr�ent �t fe���th� f�ll��ing �ctQ�r�� �ir�ct�d ta�ards �mpl�yir�g Se�ti�n
3 Wc�rkers �nd Targ�ted ��cti�r� 3�ifc�rk�r�a
Th� ��n�r�r gen�r�l cc�n�r��tor rr���t ��abmifi the ��cticar� 3 '(ear �nd c�r�ifi�ri�g Report
by July 10th of���h fi��al y��r.
� T'he g�ner�l cor��r����r��d s�abce�rr�r�ctar� r��ast�ub�it r��r�thfy��pc�r��(E�hibit F, L�bor
��ar� Tr�cking Form� r�n �I� �ect6c�r� 3 cc�v�r�d prc�jects4 ��pc�rts �r� du� at �h� end c�f
�a�h rmc�nfih. epc�rts sh�ll b���kamit��d t� th� F1C1 stafF�or�tact�car�o�r prc���ct.
Th� c��rn�r s�r gerreral cctr�tr;�cfic�r �hal# rn�i►�tair� c�arr�prehensive d�acur�ent�tican of th�ir
Sectitara 3 outr���h ��Far�s and irr�pl�m�nt�t�ar�activTties. Secti�►� 3 file��hould be clearly
rn��r�tair��d �r�d be �vaii�bl�f�r r�u��� �y City c�fi Redding and/or h#UC}offieia6�,
l"h� ���er �nd g�r�er�l car��r�c�csr �vill rn�ke b�s� e�fic�rt� t� ens�re �hat �II ��ction 3
usiness��ncerns; and T�rgeted ���tia� 3 Wc�rk�rs vv�thin the��rvice�r�a�r� notifi�d
of p�ndir�g c�pportunit6es,
The owen�r a�d gen�r�i contr�ct�r �iIC �r�sur� �11 ��b��ntractor� ar� �vuar� caf th�ir
obligati�n tca r�eet S���is�n 3 ber��h�raarks I�id�at�t ir� City�a� �dding'��ectic�r�3 CuPdar�c�
�nu�L Srab��ntr�ctcars will c�r��ta6t e�ith fih� g�n�r�l ccar�tr�ctc�r ir�st�ad csf th� City
r�g�rding que�ti�n� �nd r�pt�rtar�g.
Development F'unding AgreernenC-K2 Dev�]opment Campany�,Inc.ancl the City af Raddiszg �� ( �� � v? �.
T�e c�wn�r �r�d g���r�l ��r�tra�t�r �gr�� tc� r�gi�t�r c�n HIJ '� ��ctit�n 3
pport�nity artal t� help rn�tch 5ecti�r� 3 w�rk�r� to job� �nd training
capport�nitie� �nd ��cti�n 3 b�s�nes�es tca c�ntr�ctir�g opp�rfu�iti�s
(https:llh�d�ppsehud.g�v/�pport�ar�ityP�rt�ll).
� the und�rsigr��d, h�v� r��d �nd full}��gr�e �c� thi� ���tian 3 �c�mpl��r�c� �ert�f6c��i�r�, �nd
becc�rn� p�rty t� the f�ll impl�r��r�t�tic�� c�f thi� pr�gr�m.
�igr����r�:
l'itf�e
�te.
(if � li� I �
Signature:
Titl�:
a�e:
DevelapmenC Funding Agreatnent-K2 I>evelopment CQmpany,Zne.and t6e C"tty c�f Redding �� ( � <� .� �'
1e
��1`�[��:,����r�����T��r��T�
A I-L I C `I'I IG� I
Th��nd�rsign�d���trfies, t�th�b�st c�f h�s �r hea krr�c�wledge �nd b��ief, thata
1, Nc� Fed��°al appropriated ds have b�en paid c�r will be paid, by �r c�n b�l�alf �f th�
d�rslgr�ed,to y p��s�� �i�r ia�fluencin�c�r atte pting tcs ir�fluer�ce ar�offi�er or ernpic�ye�
af�ny age�cy, � I�1e b�r of�c��gr�ss, an+�ffi��r or e plc�ye� of Co��res�, c�r an employ��
of a Memb�r of �c�ngress in co �ctic�n �ith the awa�dir�g t�f any ��d�ral �o�tract, th�
akin� af y F�d�r�1 �r t, th� aking c�f any F�der�l lc�an, the ent�r��g i�tc� o�` any
co�perativ� a�r�e e�t, ��d th� e�t�r��ioaa� �ontznuatia�n, renewal, end��nt, s�r
csd�fic�tion of�r�y F�d�ral cantract, grazat, lc�ar�� ca�cc�c�perat�v�a�r�� �r�t,
2. If�ny funds ather tha� F�d�ra1 ap�r�priat�d f�nds hav� b�en �aaid or �vil1 be paid tc� �ny
persan for influenc��g �r�tt� pting to znfl�e�ce �r� c�f�icer o�° � p1s�y�� ��'�ny ag�ncyq a
Ivle b�r of�c�ngr�ss, �f�"i�er e�r emplr�yee of�c�ngr�s�, �r ar�e p1ay�� of� Ivlemb�r of
�o�gress zn co �etion�v�th this Federal contr�ct,gr t,1r� ,c�r coop�ratrve agre� en�,the
ur�dersign�cl sha11 co pl�t� and �ubmi� �tand d Fc�r -LLL,, "'I�iscics� � Fo to I2�p�rt
Labbying," in�cccardar����ith its i�st cticr�as.
3. The undersigned sha11 requir�that th�lang�a�g�t�f�h�s c�rtif�atian be�n�luded ir�th�award
docu ent� for all ��ba�vards �t �11 ti�rs (including subc�r�tracts, subg�ants, d c�antr�cts
�nde�°gr ts, 10 s, and�oc�per��iv�a�r��rr��nts} �nd th�t al1 subreci�ie�ts sh�ll e�rtify d
d�is�lose accc�rdfngly.
This certificatic�n is a rnateria� repr�s�r�t��ion of facfi upan whf�h r�Iiance w�s plac�d wh�n t�is
tr sactl�n was ad�c���,ntered i�tc�. �ub issici� of this�erti�cation is �pr�r�quis�te fc�r�naking
or er�terrng into this tr �act�on i��c�sed by s�ction 1352,titl� 31, �7.5.�. ��y perso�a w��fails to
file the r�q�ired certificatio�a sh�ll be subj�c� t� a �ivil pen�lty �f nc�t l��s th �10,0t�0 �nd nat
ar�than�100,00� for�ach s�ch faill�r�.
I�ATE: SI(�I�1t�TLT :
X:\I�edev\3 -�-ICB W4�RKING�ILES\�I)�G\GL��CJ£��2 Infi°astru��ur�l�uartz I-��11\�evelapment Furiding
Agreement�D�velopznent F'unding Agreement Quartz�-Ii11 Ra�d Project Phase I.docx
Develapment Funding fjgreement-K2 Deveiopment Company,Inc.and the C;ity of Redding �� I �� ci z' �.