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Approval of Payment In-Lieu of Taxes Agreement — Cristo Rey Orange County High <br /> School (3601, 3611, 3621, and 3631 S. Harbor Blvd.) <br /> February 3, 2026 <br /> Page 3 <br /> ENVIRONMENTAL IMPACT <br /> In accordance with the California Environmental Quality Act, the proposed project is <br /> exempt from further review under Section 15332 (Class 32 — In-Fill), as it meets all <br /> threshold criteria for infill exemption, and Section 15301 (Class 1 — Existing Facilities) for <br /> alterations. The Project would not cause significant impacts related to traffic, noise, air <br /> quality, water quality, or biological resources and is not located on a hazardous site, a <br /> scenic highway, or subject to unusual circumstances or cumulative impacts. A Notice of <br /> Exemption, Environmental Review No. 2025-37, was filed on November 13, 2025, for this <br /> project. <br /> FISCAL IMPACT <br /> Under the PILOT agreement, the property owner will make annual payments to the City <br /> of an estimated $16,938 in 2026, with a two percent (2%) annual increase over the 20- <br /> year term. The payments will be recorded as Miscellaneous Revenue — Property Tax <br /> (01102002-50011) and remain fixed regardless. Although the school is exempt from <br /> property taxes, the PILOT agreement ensures that the City does not lose revenue as a <br /> result of its tax-exempt status. These payments offset property tax revenue to the City <br /> that would otherwise be lost, therefore enabling the City to support its services. <br /> EXHIBITS <br /> 1. Payment In-Lieu of Taxes (PILOT) Agreement <br /> 2. Planning Commission Staff Report <br /> Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building <br /> Agency <br /> Approved By: Alvaro Nunez, City Manager <br />