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Settlement Agreement With Friends of the Lacy Historic Neighborhood and First Amendment to the DDA with Santa Ana Station District, LLC April 18, 2011 Page 4 ® Addition of language referencing the settlement agreement ® Extension of the time to complete the lot mergers California Environmental Quality Act (CEQA) The Settlement Agreement and the First Amendment to the DDA will not result in any changes to the Station District Project or the circumstances under which the Station District Project is undertaken that would require any major revisions in the Final EIR, and there is no new information with respect to the Project that would require such revisions. Additionally, no other terms of the Settlement Agreement would require revisions to the Final EIR or further environmental analysis because the terms do not involve new significant environmental impacts or a substantial increase in the severity of an impact, and/or have no potential to result in a direct or indirect physical change in the environment, and/or are otherwise exempt from CEQA. Additionally, the preparation of an historic survey is exempt from CEQA under CEQA Guidelines § 15306, which exempts "information collection." Because the Historic Survey would simply evaluate existing resources and would not result in any disturbance of environmental resources, it is exempt from CEQA review. Establishment of the Lacy Neighborhood Housing Fund is similarly exempt from CEQA because any improvements that would result from use of the fund would consist of repair, maintenance or minor alterations of private structures involving negligible or no expansion of the existing use. Therefore, establishment of the fund is exempt under CEQA Guidelines § 15301 (Existing Facilities). Further, any rehabilitation of homes consistent with the Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, Restoring and Reconstructing Historic Buildings would also be exempt under CEQA Guidelines § 15331. The salvage program is also exempt under CEQA because it is a component of the ongoing salvage process with the Santa Ana Historic Preservation Society, which began in 2004, and under the Existing Facilities exemption (CEQA Guidelines § 15301) as it involves only minor exterior and interior alterations. All other provisions of the Settlement Agreement have no potential for resulting in a direct or indirect physical change on the environment and, therefore, are not "projects" as that term is defined in CEQA Guidelines § 15378. Accordingly, they are covered by "the general rule that CEQA only applies to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." (See CEQA Guidelines § 15061(b)(3).) 3-4