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HomeMy WebLinkAbout705ORDINANCE NO. 705 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IRWINDALE APPROVING DEVELOPMENT AGREEMENT NO. 01-2015 BETWEEN CITY OF IRWINDALE AND MT. OLIVE STORAGE, LLC, TO ALLOW THE INSTALLATION OF A V -SHAPED, TWO -PANEL, DIGITAL DISPLAY BILLBOARD AT THE SOUTH POINT OF PROPERTY LOCATED AT 2500 E. CENTRAL AVENUE (APN 8604-018 002) CURRENTLY OCCUPIED BY THE MT. OLIVE SELF -STORAGE FACILITY EAST OF THE 1-605 FREEWAY AND NORTH OF THE 1-210 FREEWAY IN THE M-2 (HEAVY MANUFACTURING) ZONE SUBJECT TO CONDITIONS AS SET FORTH HEREIN AND MAKING FINDINGS IN SUPPORT THEREOF; AND FINDING THE PROJECT EXEMPT FROM THE PROVISIONS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, John Bea, on behalf of Mt. Olive Storage, LLC, 2500 E. Central Avenue, Irwindale, CA 91706, the Applicant, has made a request for approval of a Development Agreement (Attachment 1) to allow the installation of a V-shaped, two panel, digital display billboard to replace a previously existing static billboard. The proposed billboard will consist of two 14'x48' digital panels in a V-shape design facing east and west bound traffic just north of the 1-210 Freeway and east of the 1-605 Freeway. The billboard will be located at the same location as the previous billboard and at the same height. The digital panels are proposed on a single pole structure at a total height of 70 feet from the ground but no higher than the maximum allowed height of 65 feet as measured from the higher finished grade of the adjacent freeway from which the advertising display is to be viewed; and WHEREAS, The Subject Property is zoned M-2 (Heavy Manufacturing). Per Irwindale Municipal Code (IMC) Subsection 17.72.030, the repair, replacement, or new installation of a static or digital billboard requires the approval of a Development Agreement with appropriate standards and public benefits to be negotiated with the City and complying with all other standards imposed by the IMC; and WHEREAS, In accordance with the California Environmental Quality Act (CEQA) of 1970, as amended, and the City of Irwindale environmental guidelines, the City, as the Lead Agency, has analyzed the project and has determined that the Project is exempt from the provisions of CEQA pursuant to Section 15061 (b) (3), which states that the activity is covered by the general rule that CEQA applies only to projects that 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. In this case, a prior static billboard existed at the same location for approximately 30 years and was removed to make way for the new sign. As such, no further review is required. Further, the City has determined this project will not have, either individually or cumulatively, an 01005.0005/307086.1 Ordinance No. 705 ; Page 1 of 5 adverse impact on fish and wildlife resources in that the billboard is proposed within an existing paved area. A Notice of Exemption was prepared and will be filed with the County Clerk pending City Council action following the Planning Commission's recommendation; and WHEREAS, On July 20, 2016, the Planning Commission conducted a duly noticed public hearing, at which time they received input from staff, the City Attorney, and the Applicant; heard public testimony; discussed the Proposed Project; closed the public hearing; and, after discussion, approved Resolution No. 683(16) recommending that the City Council approve Development Agreement No. 01-2015; and WHEREAS, On August 10, 2016, the project was scheduled before the City Council as a duly noticed public hearing, at which time they received input from staff, the City Attorney, and the Applicant; heard public testimony; discussed the Proposed Project; closed the public hearing; and, after discussion, conducted a first reading of this Ordinance approving Development Agreement No. 01-2015; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF IRWINDALE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council finds that the above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Council finds as follows: Development Agreement Findings: a. Development Agreement No. 01-2015 is consistent with the provisions of the Development Agreement statutes, at Government Code sections 65864 et seq. b. The proposed digital billboard per Development Agreement No. 01-2015 is consistent with the General Plan and M-2 Zoning designation. c. Development Agreement No. 01-2015 contains provision for annual review of Developer's compliance with its terms, is limited in duration for twenty (20) years following final permit approvals unless duly extended following negotiations between the City and Mt. Olive Storage, LLC, and specifies the permitted use of the site related to the billboard and provisions for City access to the site when necessary. d. Approval of Development Agreement No. 01-2015 is exempt from the provisions of CEQA pursuant to Section 15061 (b) (3) of the CEQA Guidelines, as further described above. 01005.00051307086.1 Ordinance No. 705 Page 2 of 5 SECTION 3. In light of the above findings and further testimony and documentation provided at the public hearing to consider approval of the project described in Development Agreement No. 01-2015, the City Council hereby approves Development Agreement No. 01-2015 and authorizes its execution and all actions necessary to comply with its terms. SECTION 4. The City Council hereby authorizes and directs the Mayor and the City Clerk to execute this Ordinance on behalf of the City of Irwindale forthwith upon its adoption. SECTION 5. The Deputy City Clerk shall certify as to the passage of this Ordinance and shall cause the same to be published and/or posted at the designated locations in the City of Irwindale. PASSED, APPROVED/'AND ADOPTE-b,,this 24th day of August, 2016. Breceda, Mayor ATTEST: wwam'mo) a ra M. Nieto, CMC D puty City Clerk 01005.00051307086.1 Ordinance No. 705 Page 3 of 5 STATE OF CALIFORNIA } COUNTY OF LOS ANGELES )ss. CITY OF IRWINDALE } I, Laura M. Nieto, Deputy City Clerk of the City of Irwindale, do hereby certify that the foregoing Ordinance No. 705 was duly introduced at a special meeting of the Irwindale City Council held on the 10th day of August 2016, and was duly approved and adopted on second reading at its regular meeting held on the 24th day of August 2016, by the following vote of the Council: AYES: Councilmembers: Ambriz, Burrola, Ortiz, Mayor Breceda NOES: Councilmembers: None ABSENT: Councilmembers: Garcia ABSTAIN: Councilmembers: None AFFIDAVIT OF POSTING I, Laura M. Nieto, Deputy City Clerk, certify that I caused a copy of Ordinance No. 705, adopted by the City Council of the City of Irwindale at its regular meeting held August 24, 16, to be posted at the City Hall, Library, and Post Office on August 25, 2016. 67 ura M. Nieto, CMC puty City Clerk 01005.0005/307086.1 Ordinance No. 705 Page 4 of 5 Recording Requested by And When Recorded Return to: CITY OF IRWINDALE 5050 N. Irwindale Ave. Irwindale, CA 91706 Attn: City Clerk [Exempt From Recording Fee Per Gov. Code §61031 DEVELOPMENT AGREEMENT NO. 01-2015 This Development Agreement ("Agreement") is entered into this 24t1' day of August 2016, ("Effective Date") by and between the CITY OF IRWINDALE, a California municipal corporation ("City") and Mount Olive Storage LLC, a California limited liability company ("Developer"). RECITALS A. California Government Code Sections 65864, et seq., ("Development Agreement Law") authorizes cities to enter into binding development agreements with persons having a legal or equitable interest in real property for the development of such property, all for the purposes of strengthening the public planning process, encouraging private participation and comprehensive planning and identifying the economic costs of such development. B. Developer owns that certain portion of real property, located adjacent to north side of the 210 Freeway, approximately 850 feet east of the 605 Freeway, in the City of Irwindale, Assessor Parcel Number 8604-018-002, as more specifically described in Exhibit "A" and partially depicted in Exhibit "C", attached hereto and incorporated herein ("Mount Olive Site"). C. Pursuant to the terms of this Agreement, Developer seeks to install two illuminated L.E.D. displays ("Digital Displays") in a v -shape design oriented towards east and westbound traffic on the 210 Freeway on the Mount Olive Site at the same location where a double -sided billboard was previously located and removed in April of 2015. D. Developer owns the Mount Olive Site and, thus, qualifies to enter into this Agreement in accordance with Development Agreement Law. E. In exchange for the approvals sought to install the Digital Displays, Developer has offered to: 1. Pay to the City an annual Development Fee, as defined and provided in Section 2.6 below, for the cost to the City to mitigate the impact of the installation of the digital sign panels on the Billboards; and 01005.0005/264455.6 1 Development Agreement — Ordinance No. 705 2. Provide advertising time on the Digital Displays on a space available basis to the City for public service and civic causes. F. The Mount Olive Site is located within the City's M-2, Heavy Manufacturing Zone, designated by the General Plan as IndustrialBusiness Park, and subject to Conditional Use Permit 15-04 (2006). G. Developer and City agree that a development agreement should be approved and adopted to memorialize the property expectations of City and Developer as more particularly described herein. H. On July 20, 2016, the Planning Commission of the City, at a duly noticed hearing to consider the approval of this Agreement, adopted Resolution No. 683(16) recommending approval of this Agreement to the City Council and the filing of a Notice of Exemption pursuant to the provisions of the California Environmental Quality Act ("CEQA"). L On August 10, 2016, the City Council of the City, at a duly noticed hearing to consider the approval of this Agreement, considered the proposal, heard testimony, and introduced Ordinance No. 705. J. The City Council has found that this Agreement is in the best public interest of the City and its residents, adopting this Agreement constitutes a present exercise of the City's police power, and this Agreement is consistent with the City's General Plan. This Agreement and the proposed Project (as hereinafter defined) will achieve a number of City objectives. Developer will remove the digital displays if an extension of this Agreement is not negotiated with City and shall have the right to convert the Digital Display to a static billboard with two facings. K. On August 24, 2016, the City Council held the second reading of Ordinance No. 705, thereby approving this Agreement. L. City finds and determines that all actions required of City precedent to approval of this Agreement by Ordinance No.705 of the City Council have been duly and regularly taken. COVENANTS NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. DEFINITIONS AND EXHIBITS. 1.1 Definitions. This Agreement uses a number of terms having specific meanings, as defined below. These specially defined terms are distinguished by having the initial letter capitalized, when used in the Agreement. In addition to the terms defined in the Recitals above, the defined terms include the following: 01005.0005/264455.6 2 Development Agreement — Ordinance No. 705 1.1.1 "Agreement" means this Development Agreement and all attachments and exhibits hereto. 1.1.2 "City" means the City of Irwindale, a California municipal corporation and charter city. 1.1.3 "City Council" means the City Council of the City. 1.1.4 "Developer" means Mount Olive Storage LLC, a California limited liability company duly existing and operating, and its successors and assigns, doing business at 2500 E. Central Avenue, Irwindale, CA 91706. 1.1.5 "Digital Displays" shall have the meaning ascribed in the Recitals above. 1.1.6 "Development Approvals" means the approved Development, based on the recommended approval by the Planning Commission and approval of the City Council, as further described at Recital I and Section 3.3 herein. 1.1.7 "Effective Date" means the date inserted into the preamble of this Agreement, which is 30 days following approval of this Agreement by ordinance of the City Council, provided the Agreement is signed by the Developer and City. 1.1.8 "Final Permits" shall have the meaning set forth at Section 2.6. 1.1.9 "Land Use Regulations" means all ordinances, resolutions, codes, rules, regulations and official policies of City, including, but not limited to, the City's General Plan, Municipal Code, Zoning Code, and Conditional Use Permit 15-04 (2006), which govern development and use of the Sites, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, the maximum height and size of the Digital Displays and the design, improvement and construction standards and specifications applicable to the Development of the Site which are in full force and effect as of the Effective Date of this Agreement, subject to the terms of this Agreement. Land Use Regulations shall also include National Pollutant Discharge Elimination System ("NPDES") regulations and approvals from the California Department of Transportation Outdoor Advertising Division, to the extent applicable. 1.1.10 "Mortgagee" means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security -device, a lender or each of their respective successors and assigns. 1.1.11 "Mount Olive Site" shall have the meaning ascribed in the Recitals above. 1.1.12 "Owner" or "Owners" mean the individual or collective owners, respectively, of the Sites. Specifically, Developer is the current owner of the Mount Olive Site. 1.1.13 "Project" means the installation, operation and maintenance of the 70 -foot tall (65 feet maximum from freeway grade), 14 x 48 foot double -sided V-shape Digital 01005.0005/264455.6 Development Agreement— Ordinance No. 705 Displays on the Mount Olive Site, all in accordance with the Development Approvals and this Agreement, including the Scope of Development attached hereto as Exhibit `B", Schedule of Performance attached hereto as Exhibit "D" and all conditions of approval and consistent with the approval from the California Department of Transportation Outdoor Advertising Division. 1.1.14 "Site" refers to the Mount Olive Site, as such site is more specifically described on Exhibit "A" and depicted on Exhibit "C" attached hereto and incorporated herein. 1.1.15 "Schedule of Performance" means the Schedule of Performance attached hereto as Exhibit "D" and incorporated herein. 1.1.16 "Scope of Development" means the Scope of Development attached hereto as Exhibit `B" and incorporated herein. 1.1.17 "Subsequent Land Use Regulations" means any Land Use Regulations effective after the Effective Date of this Agreement (whether adopted prior to or after the Effective Date of this Agreement) which govern development and use of the Billboard Sites. 1.1.18 "Term" shall have the meaning provided in Section 2.4, unless earlier terminated as provided in this Agreement. 1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement: Exhibit "A" (Legal Description of Sites), Exhibit `B" (Scope of Developments), Exhibit "C" (Site Plan and Elevations) and Exhibit "D" (Schedule of Performance). 2. GENERAL PROVISIONS. 2.1 Binding Effect of Agreement. From and following the Effective Date, actions by the City and Developer with respect to the Project, including actions by the City on applications for Subsequent Development Approvals affecting the Sites, shall be subject to the terms and provisions of this Agreement. 2.2 Interest in Site. Developer represents to City that Developer has a 100% ownership interest in the Site and thus is qualified to enter into and be a party to this Agreement under the Development Agreement Law. Additionally, prior to the execution of this Agreement, Developer has provided the City with documentation to the City's satisfaction which demonstrates that Developer holds 100% ownership interest in the Site. 2.3 Assignment. Developer may assign or otherwise transfer this Agreement, or any part of this Agreement, to any other entity, upon presentation to the City of an assignment and assumption agreement in a form reasonably acceptable to the City Attorney and the City's written approval of such assignment or transfer by the City Manager, which shall not be unreasonably withheld if the assignee is able to demonstrate sufficient financial assets and experience in undertaking the obligations under this Agreement. However, Developer may, from 01005.0005/264455.6 4 Development Agreement — Ordinance No. 705 time to time and one or more times, assign this Agreement, to another entity without City approval, but with written notice to the City, as long as (1) Property Owner has and maintains at least a twenty-five percent (25%) ownership interest in the assignee(s) or transferee(s); and (2) any assignee(s) or transferee(s) executes an assumption agreement assuming all of Developer's duties and obligations hereunder to the extent of the interest assigned or transferred. After a transfer or assignment as permitted by this Section, the City shall look solely to such assignee or transferee for compliance with the provisions of this Agreement which have been assigned or transferred. 2.4 Term of Agreement. Unless earlier terminated as provided in this Agreement, this Agreement shall continue in full force and effect until the earlier of; (i) twenty (20) years after the date Developer receives Final Permits, as defined in Section 2.6 below; (ii) this Agreement is terminated per Section 6. 1, or; (iii) the permanent removal of the Digital Displays constructed pursuant to the terms hereof. If one face of the Digital Displays is removed permanently and which Digital Display may, at Developer's sole discretion, be replaced with a static face, the then -current Development Fee will be reduced by one half (1/2) and the Agreement will remain in full force and effect for the second digital face. Within thirty (30) days after the expiration or termination of this Agreement, the parties shall execute a written cancellation of this Agreement which shall be recorded with the County Recorder pursuant to Section 9.1 below. If no extension of this Agreement is agreed to, then the Digital Displays shall be removed within the times and as set forth under Section 4 below. 2.5 Processing Fee. Upon submission of its application for the approvals granted by this Agreement, Developer has paid to City a processing ("Processing Fee") in the amount of Three Thousand Six Hundred Sixty Six and 001/00 Dollars ($3,666.00), which includes (1) the Development Agreement fee of $3,000 as an initial deposit for the City Attorney costs of preparation, (2) Environmental Documentation fee of $250; (3) Public Hearing Notices deposit of $350, which does not include the actual cost of ads, and (4) a Noticing fee of $66, representing $2 per parcel times the number of parcels to receive public hearing notices. The City shall retain and use the Processing Fee, or any part thereof, for any public purpose within the City's discretion. In addition to the Processing Fee, any additional City Attorney fees incurred by City in the preparation and negotiation of the Development Agreement, not to exceed $10,000 plus the actual amount of the costs of the Public Hearing Notice ads, shall be Developer's responsibility to pay. The Processing Fee shall be separate from all fees which are standard and uniformly applied to similar projects in the City, including, but not limited to, business license fees (due by Developer to City annually), one time plan check fee and building permit fee and any other fees imposed by the City as may be applicable. Additionally, within 30 days of the City providing Developer with a final invoice of legal fees (subject to the above cap) or incurred by City related to the negotiation and preparation of this Agreement and Public Hearing Notice ads, Developer shall pay City any outstanding balance of such fees. 2.6 Development Fee. The potential aesthetic impacts of the Project on City and surrounding community are discussed in the CEQA documents prepared as part the review process of this Agreement. The Parties agree an annual fee paid by Property Owner to City would adequately mitigate those aesthetic impacts, because that fee will provide City resources to install and maintain other aesthetic improvements throughout the community, including, but not limited to, landscaping, street medians, signs in public parks, street sweeping, street signs 01005.0005/264455.6 5 Development Agreement— Ordinance No. 705 and street lighting. To that end, Developer and City agree that an annual development fee paid by Developer to City would adequately mitigate all such potential impacts. The parties therefore agree that, subject to the obligations of Section 2.7 below, Developer shall pay an annual development fee to City of Sixty Thousand Dollars ($60,000.00) per year (representing $30,000 per Digital Display) thereafter to be adjusted yearly by the change in the price level of the Bureau of Labor Statistics Producer Price Index for the prior year, increased annually in proportion to the cumulative increase during the preceding twelve (12) month period (ending ninety (90) days before the relevant anniversary date to allow for a lag in reporting) in the Consumer Price Index published by the Bureau of Labor Statistics of the U.S. Department of Labor for Urban Wage Earners and Clerical Workers, Los Angeles -Riverside -Orange County, California (1982-84=100) "All Items", or any successor index thereto. This pay schedule reflects the Development Fee for the operation of two (2) Digital Display units. The Development Fee shall be paid annually, with the first installment due no later than one (1) year after Developer receives final approval to construct the Digital Display from the applicable governmental authorities for any and all required permits to maintain and operate the Digital Displays as contemplated under this Agreement ("Final Permits"). Developer shall notify City within five (5) days of its receipt of any income received from use of the Digital Displays and of all Final Permits for the purpose of determining the date annual payments of the Development Fee shall commence. Nothing herein relieves the City from its contractual duty to issue all municipal building permits that are associated with the Project if Developer is in compliance with the terms of this Agreement. In compliance with the provisions of Government Code section 65865(e), City shall maintain the Development Fee, it receives pursuant to this Agreement and other similar agreements in a separate capital facilities account to be expended for the purpose of enhancing and/or improving the aesthetics of the community within the City of Irwindale, such as through new street signs, street lighting, increased landscaping, heightened landscape maintenance, removal of code violations that impact the aesthetics of the community, and other related aesthetic uses. 2.7 Community Benefits. Developer shall also provide free of charge to City on a space -available basis, advertising space on the Digital Displays. Such advertising space shall only be made available for the use of City -related events or agencies. In no event shall the City make the advertising space available to any competitor of Developer or any third party without the express, written consent of Developer. City will be responsible for creating the design of any displays, subject to review and approval of a suggested copy from City by Developer. City will provide any display in electronic format at no cost to the Developer. 2.8 Prohibited Use. Developer shall not utilize any of the displays on the Billboard to advertise tobacco, marijuana, hashish, "gentlemen's clubs," adult entertainment businesses, sexually oriented materials, or use sexually oriented images or language, including, but not limited to, ads such as "Adult Con", vulgar or obscene images or language, or as may be prohibited by any City ordinance existing as of the Effective Date of this Agreement or as may be amended or implemented from time -to -time after the Effective Date and equally -applicable to all digital displays by any duly and valid city ordinance. 01005.0005/264455.6 6 Development Agreement— Ordinance No, 705 3. DEVELOPMENT AND IMPLEMENTATION OF THE PROJECT. 3.1 Rights to Develop Digital Displays on the Sites. Subject to and during the Term of this Agreement, Developer shall develop the Project on the Sites in accordance with, and to the extent of, the Development Approvals, the Land Use Regulations, and this Agreement. 3.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement, the rules, regulations and official policies governing permitted uses of the Sites, the density and intensity of use of the such Sites, the maximum height and size of proposed structures, and the design, and improvement and construction standards and specifications applicable to development of the Project shall be as set forth in the Land Use Regulations, as such term is defined in Section 1.1.9, which are in full force and effect as of the Effective Date of this Agreement, subject to the terms of this Agreement. 3.3 Development Approvals. Developer shall, at its own expense and before commencement of demolition, construction or development of any structures or other work of improvement upon the Sites, secure or cause to be secured all necessary Development Approvals, which shall include any and all permits and approvals which may be required by City or any other governmental agency or utility affected by such construction, development or work to be performed by Developer pursuant to the Scope of Development, including but not limited to, necessary building permits and all approvals required under the California Environmental Quality Act ("CEQA"). Not by way of limiting the foregoing, in developing and constructing the Project, Developer shall comply with all (1) applicable development standards in City's Municipal Code, (2) applicable NPDES requirements pertaining to the Project, (3) all applicable building codes, except as may be permitted through approved variances and modifications. Developer shall pay all normal and customary fees and charges applicable to such permits, and any fees and charges hereafter imposed by City in connection with the Project which are standard and uniformly -applied to similar projects in the City. 3.4 Timing of Project; Scope of Development. Developer shall commence the Project within the time set forth in the Schedule of Performance, attached hereto as Exhibit "D." "Commencement" of the Project is defined herein as commencement of construction or improvements under the building permit for the construction of the Digital Displays on the Sites as soon as possible following Developer's receipt of Development Approvals. In the event that Developer fails to meet the schedule for Commencement of the Project, and after compliance with Section 5.4, either party hereto may terminate this Agreement by delivering written notice to the other party, and, in the event of such termination, neither party shall have any further obligation hereunder. However, if circumstances within the scope of Section 9.10 delay the commencement or completion of the Project, it would not constitute grounds for any termination rights found within this Agreement. In such case, the timeline to commence or complete the relevant task shall be extended in the manner set forth at Section 9.10. Notwithstanding the above, Developer shall, at all times, comply with all other obligations set forth in this Agreement regarding the construction of the Project on the Sites, Developer shall also maintain the Digital Displays at all times during the Term in accordance with the maintenance provisions set forth in Section 3, the Scope of Development, attached as Exhibit `B" herein. 01005.0005/264455.6 7 Development Agreement — Ordinance No. 705 The purpose of this Agreement is to set forth the rules and regulations applicable to the Project, which shall be accomplished in accordance with this Agreement, including the Scope of Development (Exhibit `B") which sets forth a description of the Project and the Schedule of Performance (Exhibit "D"). 3.5 Changes and Amendments. Developer may determine that changes to the Development Approvals are appropriate and desirable. In the event Developer makes such a determination, Developer may apply in writing for an amendment to the Development Approvals to effectuate such change(s); provided that the City may request written consent from Owner if the modification is deemed material. The Parties acknowledge that City shall be permitted to use its inherent land use authority in deciding whether to approve or deny any such amendment request; provided, however, that in exercising the foregoing the City shall use reasonable discretion and shall not apply a standard different than that used in evaluating requests of other developers. Accordingly, under no circumstance shall City be obligated in any manner to approve any amendment to the Development Approvals. The City Manager shall be authorized to approve any non -substantive amendment to the Development Approvals without processing an amendment to this Agreement. All other amendments shall require the approval of the City Council. The parties acknowledge that any extension of the Term for no more than twenty-four (24) months total is an example of a non -substantive change, which the City Manager, in his or her reasonable discretion, may approve in writing. Nothing herein shall cause Developer to be in default if it upgrades the digital display installed pursuant to this Agreement during the term of this Agreement to incorporate newer technology; provided Developer shall secure all applicable ministerial permits to do so and such upgrade is consistent with the dimensions and standards for the displays, as provided under this Agreement, Land Use Regulations and Subsequent Land Use Regulations 3.6 Reservation of Authority 3.6.1 Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the following Subsequent Land Use Regulations shall apply to the development of the Project: (a) Processing fees and charges of every kind and nature imposed by City to cover the estimated actual costs to City of processing applications for Subsequent Development Approvals. (b) Procedural regulations consistent with this Agreement relating to hearing bodies, petitions, applications, notices, findings, records, hearing, reports, recommendations, appeals and any other matter of procedure. Notwithstanding the foregoing, if such change materially changes Developer's costs or otherwise materially impacts its performance hereunder, Developer may terminate this Agreement upon ninety (90) days prior written notice. (c) Changes adopted by the International Conference of Building Officials, or other similar body, as part of the then most current versions of the Uniform Building Code, Uniform Fire Code, Uniform Plumbing Code, Uniform Mechanical Code, or National Electrical Code, as adopted by City as Subsequent Land Use Regulations, if 01005.0005/264455.6 g Development Agreement — Ordinance No. 705 adopted prior to the issuance of a building permit for development of the Digital Displays. Notwithstanding the foregoing, if such change materially changes Developer's costs or otherwise materially impacts its performance hereunder, developer may terminate this Agreement upon ninety (90) days prior written notice. (d) Regulations that are not in conflict with the Development Approvals or this Agreement. (e) Regulations that are in conflict with the Development Approvals or this Agreement, provided Developer has given written consent to the application of such regulations to development of the Project. (f) Applicable Federal, State, County, and multi jurisdictional laws and regulations which City is required to enforce as against the Sites or the development of the Project and that do not have an exception for existing signs or legal nonconforming uses. 3.6.2 Future Discretion of City. This Agreement shall not prevent City from denying or conditionally approving any application for a Subsequent Development Approval on the basis of the Land Use Regulations. 3.6.3 Modification or Suspension by Federal, State, County, or Multi - Jurisdictional Law. In the event that applicable federal, State, County, or multi - jurisdictional laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, and there is no exception for the legal nonconforming use, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such federal, State, County, or multi jurisdictional laws or regulations, and this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provision impractical to enforce. Notwithstanding the foregoing, if such change materially changes Developer's costs or otherwise materially impacts its performance hereunder, Developer may terminate this Agreement upon ninety (90) days prior written notice. 3.7 Regulation by Other Public Agencies. It is acknowledged by the parties that other public agencies not subject to control by City may possess authority to regulate aspects of the development of the Project as contemplated herein, and this Agreement does not limit the authority of such other public agencies. Developer acknowledges and represents that, in addition to the Land Use Regulations, Developer shall, at all times, comply with all applicable federal, State and local laws and regulations applicable to the Digital Displays and the Site that do not have an exception for a legal nonconforming use. To the extent such other public agencies preclude development or maintenance of the Project and that do not have an exception for a legal nonconforming use, Developer shall not be further obligated under this Agreement except as provided in Section 4.1. Notwithstanding the`foregoing, if such action by another public agency materially changes Developer's costs or otherwise materially impacts its performance hereunder, 01005.0005/264455.6 9 Development Agreement — Ordinance No, 705 Developer may terminate this Agreement upon ninety (90) days prior written notice or request a change or amendment pursuant to Paragraph 3.5, ante. 3.8 Public Improvements. Notwithstanding any provision herein to the contrary, the City shall retain the right to condition any subsequent Development Approvals to require Developer to pay any required development fees, and/or to construct the required public infrastructure ("Exactions") at such time as City shall determine subject to the following conditions. 3.8.1 The payment or construction must be to alleviate an impact caused by the Project or be of benefit to the Project; and 3.8.2 The timing of the Exaction should be reasonably related to the development of the Project and said public improvements shall be phased to be commensurate with the logical progression of the Project development as well as the reasonable needs of the public. 3.8.3 It being understood, however, that if the there is a material increase in cost to Developer or such action by City otherwise materially impacts developer's its performance hereunder, Developer may terminate this Agreement upon ninety (90) days prior written notice 3.9 Fees, Taxes and Assessments. During the Term of this Agreement, the City shall not, without the prior written consent of Developer, impose any additional fees, taxes or assessments on all or any portion of the Project, except such fees, taxes and assessments as are described in or required by this Agreement and/or the Development Approvals. However, this Agreement shall not prohibit the application of fees, taxes or assessments upon the Site and not the Digital Displays or Developer, including the following: 3.9.1 Developer shall be obligated to pay those fees, taxes or City assessments and any increases in same which exist as the Effective Date or are included in the Development Approvals; 3.9.2 Developer shall be obligated to pay any fees or taxes, and increases thereof, imposed on a City-wide basis such as, but not limited to, business license fees or taxes or utility taxes; 3.9.3 Developer shall be obligated to pay all fees applicable to a permit application as charged by City at the time such application is filed by Developer; 3.9.4 Developer shall be obligated to pay any fees imposed pursuant to any Uniform Code that existed when the application is filed by the Developer or that exists when the Developer applies for any Subsequent Development Approval. 3.10 Notwithstanding anything to the contrary herein, if there is a change is such fees to those charges as of the full execution hereof or any additional fees are charged and such additional or increased fees materially change Developer's costs or otherwise materially impacts 01005.0005/264455.6 10 Development Agreement — Ordinance No. 705 its performance hereunder, Developer may terminate this Agreement upon ninety (90) days prior written notice. 4. REMOVAL OF DIGITAL DISPLAYS 4.1 Removal by Developer. Developer has the right to negotiate an extension of the Term as an amendment to this Agreement. If the extension of the Term is not granted by the City, the Digital Displays will be removed and both displays may be converted back to static displays. Should City be required to enforce the terms of this Agreement and removal of the Digital Displays, Developer shall reimburse City its reasonable city staff, consultant and City Attorney costs incurred in securing such removal; provided, however, that the right to recover such costs and fees is reciprocal, pursuant to Sec. 1717, California Civil Code. Notwithstanding the foregoing, within the term of this Agreement, as may be duly extended per the terms herein, Developer reserves the right, in Developer's sole and absolute discretion, to replace the Digital Displays with other digital displays that conform to the requirements of this Agreement, to upgrade the digital displays, or to permanently remove one or both of the Digital Displays. 4.2 City's Right to Removal. Provided Developer is not in material breach hereof past any applicable notice and cure period, City will not have the right to remove the Digital Displays. Should such a breach occur, City may only require removal of the Digital Displays within ninety (90) days of City's notice to Developer of such breach. 5. REVIEW FOR COMPLIANCE. 5.1 Annual Review. The City Council shall review this Agreement annually at city's sole cost, on or before the anniversary of the Term, to ascertain the good faith compliance by Developer with the terms of the Agreement ("Annual Review"). However, no failure on the part of City to conduct or complete an Annual Review as provided herein shall have any impact on the validity of this Agreement. Developer shall cooperate with the City in the conduct of such any Annual Review and provide the following information and documentation to the City at least thirty (30) days before the anniversary of the Term: (1) description of all complaints from Caltrans or the City regarding the Digital Displays or Billboards, (2) description of all complaints from the public regarding the display unrelated to any content of the message displayed, (3) any updates to Developer's contact information related to complaints concerning the billboards, as required in the conditions at Exhibit "B", Section 6 herein, (4) status and amount of all payment obligations to the City required under this Agreement for the year in question and cumulatively beginning from the Commencement of the Project herein, (5) any easement or lease changes that could in any way materially impact the City or the obligations under this Agreement, (6) any utility changes that could in any way materially impact the City or the obligations under this Agreement, (7) any maintenance issues addressed or needing to be addressed per the requirements of Exhibit `B", and (8) whether any City messages per Section 2.8 have been displayed during the preceding year of the Term and a description of the duration of such displays. 5.2 Special Review. The City Council may, in its sole and absolute discretion, order a special review of compliance with this Agreement at any time at City's sole cost ("Special Review"). Developer shall cooperate with the City in the conduct of such any Special Review. 01005.0005/264455.6 11 Development Agreement — Ordinance No. 705 5.3 City Rights of Access. Subject to the City's execution of a permit to enter in form reasonably acceptable to Owner, the City, its officers, employees, agents and contractors, shall have the right, at their sole risk and expense, to enter the Sites at all reasonable times with as little interference as possible for the purpose of assuring compliance with this Agreement, conducting the review under this Section 5, as well as inspection, construction, reconstruction, relocation, maintenance, repair or service of any public improvements or public facilities located on the Sites, or to perform any rights of the City under Section 4.2 above. Prior to any such entry by City, City will deliver Developer twenty-four (24) hour written notice of its intention to enter. This notice shall be delivered to Developer's office at 1500 Crestfield Drive, Duarte, CA 91010 (which serves as the mailing address for Developer's address identified in Section 1.1.4), during business hours. Any damage or injury to the Sites or to the improvements constructed thereon resulting from such entry shall be promptly repaired at the sole expense of the City. Notwithstanding the foregoing, or any other provision in this Agreement (including without limitation Section 4.2 above), the City shall have no right whatsoever to enter the Site unless and until the City executes and delivers to Owner a permit to enter in form reasonably acceptable to Owner (except that this provision is not intended to interfere with the City's police powers to address any nuisance, dangerous condition, or other condition pursuant to the City's ordinances). Notwithstanding anything to the contrary herein, in no event will City representatives ever climb up the pole of the sign during any inspection. 5.4 Procedure. Each party shall have a reasonable opportunity to assert matters which it believes have not been undertaken in accordance with the Agreement, to explain the basis for such assertion, and to receive from the other party a justification of its position on such matters. If, on the basis of the parties' review of any terms of the Agreement, either party concludes that the other party has not complied in good faith with the terms of the Agreement, then such party may issue a written "Notice of Non -Compliance" specifying the grounds therefore and all facts demonstrating such non-compliance. The party receiving a Notice of Non -Compliance shall have thirty (30) days to cure or remedy the non-compliance identified in the Notice of Non -Compliance, or if such cure or remedy is not reasonably capable of being cured or remedied within such thirty (30) days period, to commence to cure or remedy the non- compliance and to diligently and in good faith prosecute such cure or remedy to completion. If the party receiving the Notice of Non -Compliance does not believe it is out of compliance and contests the Notice, it shall do so by responding in writing to said Notice within thirty (30) days after receipt of the Notice. If the response to the Notice of Non -Compliance has not been received in the offices of the party alleging the non-compliance within the prescribed time period, the Notice of Non -Compliance shall be conclusively presumed to be valid. If a Notice of Non -Compliance is contested, the parties shall, for a period of not less than fifteen (15) days following receipt of the response, seek to arrive at a mutually acceptable resolution of the matter(s) occasioning the Notice. In the event that a cure or remedy is not timely effected or, if the Notice is contested and the parties are not able to arrive at a mutually acceptable resolution of the matter(s) by the end of the fifteen (15) day period, the parry alleging the non-compliance may thereupon pursue the remedies provided in Section 6. Neither party hereto shall be deemed in breach if the reason for non-compliance is due to a "force majeure" as defined in, and subject to the provisions of, Section 9.10. 5.5 Certificate of Agreement Compliance. If, at the conclusion of an Annual Review or a Special Review, Developer is found to be in compliance with this Agreement, City 01005.0005/264455.6 12 Development Agreement — Ordinance No. 705 shall, upon request by Developer, issue a Certificate of Agreement Compliance ("Certificate") to Developer stating that, after the most recent Annual Review or Special Review, and based upon the information known or made known to the City Manager and City Council, that (1) this Agreement remains in effect and (2) Developer is in compliance. The Certificate, whether issued after an Annual Review or Special Review, shall be in recordable form and shall contain information necessary to communicate constructive record notice of the finding of compliance. Developer may record the Certificate with the County Recorder. Additionally, Developer may, at any time, request from the City a Certificate stating, in addition to the foregoing, which obligations under this Agreement have been fully satisfied with respect to the Sites. 6. DEFAULT AND 6.1 Termination of Agreement. 6. 1.1 Termination of Agreement for Material Default of Developer. City, in its discretion, may terminate this Agreement for any material failure of Developer to perform any material duty or obligation of Developer hereunder or to comply in good faith with the terms of this Agreement (hereinafter referred to as "default" or "breach"); provided, however, City may terminate this Agreement pursuant to this Section only after following the procedure set forth in Section 5.4. In the event of a termination by City under this Section 6.1.1, Developer acknowledges and agrees that City may retain all fees accrued up to the date of the termination, including the Processing Fee and the Development Fee paid up to the date of termination, and Developer shall pay the prorated amount of the Development Fee within sixty (60) days after the date of termination and removal of the Digital Displays that equates to the percentage of time elapsed in the year of the Term at the time of termination. 6.1.2 Termination of Agreement for Material Default of City. Developer, in its discretion, may terminate this Agreement for any material failure of City to perform any material duty or obligation of City hereunder or to comply in good faith with the term of this Agreement; provided, however, Developer may terminate this Agreement pursuant to this Section only after following the procedure set forth in Section 5.4. In addition, Developer may terminate this Agreement if, despite Developer's good faith efforts, it is unable to secure the necessary permits and/or compliance with requirements under laws necessary to effectuate the Project. In the event of a termination by Developer under this Section 6.1.2, Developer acknowledges and agrees that City may retain all fees, including the Processing Fee and the Development Fee paid up to the date of termination, and Developer shall pay the prorated amount of the Development Fee within sixty (60) days after the date of termination and removal of the Digital Displays that equates to the percentage of time elapsed in the year of the Term at the time of termination. 6.1.3 Rights and Duties Following Termination. Upon the termination of this Agreement, no party shall have any further right or obligation hereunder except with respect to (i) any obligations to have been performed prior to said termination, (ii) any default in the performance of the provisions of this Agreement which has occurred prior to said termination, (iii) Developer's obligation to remove the Digital Displays pursuant to Section 41 or (iv) any continuing obligations to indemnify other parties. 01005.0005/264455.6 13 Development Agreement — Ordinance No. 705 7. INSURANCE, INDEMNIFICATION AND WAIVERS. 7.1 Insurance. 7.1.1 Types oflnsuranee (a) Liability Insurance. Beginning on the Effective Date hereof and until completion of the Term, Developer shall, at its sole cost and expense, keep or cause to be kept in force for the mutual benefit of City, as additional insured, and Developer comprehensive broad form general liability insurance against claims and liabilities covered by the indemnification provisions of section 7.2. Developer has agreed to indemnify City hereunder to the extent of the liability insurance coverage with respect to its use, occupancy, disuse or condition of the Site, improvements or adjoining areas or ways, affected by such use of the Site or for property damage, providing protection of a least One Million Dollars ($1,000,000) for bodily injury or death to any one person, at least Two Million Dollars ($2,000,000) for any one accident or occurrence, and at least One Million Dollars ($1,000,000) for property damage. Developer shall also furnish or cause to be furnished to City evidence that any contractors with whom Developer has contracted for the performance of any work for which Developer is responsible maintains the same coverage required of Developer. (b) Worker's Compensation. Developer shall also furnish or cause to be furnished to City evidence that any contractor with whom Developer has contracted for the performance of any work for which Developer is responsible hereunder carries worker's compensation insurance as required by law. (c) Insurance Policy Form, Sufficiency, Content and Insurer. All insurance required by express provisions hereof shall be carried only by responsible insurance companies qualified to do business by California with an AM Best Rating of no less than "A". All such policies shall be non -assignable and shall contain language, to the extent obtainable, to the effect that (i) the insurer waives the right of subrogation against City and against City's agents and representatives except as provided in this Section; (ii) the policies are primary and noncontributing with any insurance that may be carried by City, but only with respect to the liabilities assumed by Developer under this agreement; and (iii) the policies cannot be canceled or materially changed except after written notice by the insurer to City or City's designated representative as expeditiously as insurance company agrees to provide notice. Developer shall furnish City with certificates evidencing the insurance City shall be named as an additional insured on all liability policies of insurance required to be procured by the terms of this Agreement. 7.1.2 Failure to Maintain Insurance and Proof of Compliance. Developer shall deliver to City, in the manner required for notices, copies of certificates of all insurance policies required of each policy within the following time limits: 01005.0005/264455.6 14 Development Agreement — Ordinance No. 705 (1) For insurance required above, within seven (7) days after the Effective Date or consistent with the requirements of Exhibit "D" (Schedule of Performance), Item No. 8. (2) The City can request to see updated copies of the current certificates of all insurance policies required. The City reserves the right to obtain copies of the entire insurance policy, including endorsements. If Developer fails or refuses to procure or maintain insurance as required hereby or fails or refuses to furnish City with required proof that the insurance has been procured and is in force and paid for, after complying with the requirements of Section 5.4, the City may view such failure or refusal shall be a default hereunder. 7.2 Indemnification. 7.2.1 General. Developer shall indemnify the City and Owner, and their respective officers, employees, and agents against, and will hold and save them and each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions, or liabilities (herein "claims or liabilities") that may be asserted or claimed by any person, firm, or entity arising out of or in connection with the work, operations, or activities of Developer, its agents, employees, subcontractors, or invitees, hereunder, upon the Site or to attack, set aside, void or annul, any approval of the City, its advisory agencies, appeal boards, or legislative body concerning this Agreement and related Resolutions or Ordinance No, 705. The City will promptly notify the permittee of any such claim, action, or proceeding against the City and will cooperate fully in the defense. To this end, (a) Developer will defend any action or actions filed in connection with any of said claims or liabilities covered by the indemnification provisions herein and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith, which attorneys will be the attorneys hired by the insurance company where insurance coverage applies. (b) Developer will promptly pay any judgment rendered against the City or Owner or their respective officers, agents, or employees for any such claims or liabilities arising out of or in connection with such work, operations, or activities of the Developer hereunder, and Developer agrees to save and hold the City and Owner and their respective officers, agents, and employees harmless therefrom. 7.2.2 Exceptions. The foregoing indemnity shall not include claims or liabilities arising from the sole negligence or willful misconduct of the City, its officers, agents, or employees, who are directly responsible for the City. 7.2.3 Additional Coverage. Without limiting the generality of the foregoing, Developer's indemnity obligation shall include any liability arising by reason of: 01005.0005264455.6 15 Development Agreement — Ordinance No. 705 (1) Any accident or other occurrence in or on the Site causing injury to any person or property whatsoever caused by Developer; (2) Any failure of Developer to comply with performance of all of the provisions of this Agreement; (3) Any harm, delays, injuries or other damages incurred by any party as a result of any subsurface conditions on the site caused solely by Developer, including but not limited to, the presence of buried debris, hazardous materials, hydrocarbons, or any form of soil contamination. (a) Loss and Damage. Except as set forth below, City shall not be liable for any damage to property of Developer, Owners or of others located on the Site, nor for the loss of or damage to any property of Developer, Owners or others by theft or otherwise. Except as set forth below, City shall not be liable for any injury or damage to persons or property resulting from fire, explosion, steam, gas, electricity, water, rain, dampness or leaks from any part of the Site or from the pipes or plumbing, or from the street, or from any environmental or soil contamination or hazard, or from any other latent or patent defect in the soil, subsurface or physical condition of the Site, or by any other cause of whatsoever nature. The foregoing two (2) sentences shall not apply (i) to the extent City or its agents, employees, subcontractors, invitees or representatives causes such injury or damage when accessing or entering the Site or to the extent they cause any damage to any improvements thereon, or (ii) to the extent covered in any permit to enter executed by the City. (b) Period of Indemnification. The obligations for indemnity under this Section 7.2 shall begin upon the Effective Date and shall survive termination of this Agreement. 7.3 Waiver of Subrogation. Developer and City each agrees that it shall not make any claim against, or seek to recover from the other or its agents, servants, or employees, for any loss or damage to it or to any person or property relating to this Project, except as specifically provided hereunder which include but is not limited to, a claim or liability arising from the sole negligence or willful misconduct of the City, its officers, agents, or employees, who are directly responsible for the City. 8. MORTGAGEE PROTECTION. The parties hereto agree that this Agreement shall not prevent or limit Developer, in any manner, at Developer's sole discretion, from encumbering the Site or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Site. City acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and City agrees upon request, from time to time, to meet with Developer or Owner and representatives of such lenders to negotiate in good faith any such request for interpretation or modification. Subject to compliance with applicable laws, City will not unreasonably withhold its consent to any such requested 01005.0005/264455.6 16 Development Agreement — Ordinance No. 705 interpretation or modification provided City determines such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Site shall be entitled to the following rights and privileges: (a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Project or Site made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Project or Site, or any part thereof, which Mortgagee has submitted a request in writing to the City in the manner specified herein for giving notices, shall be entitled to receive written notification from City of any default by Developer in the performance of Developer's obligations under this Agreement. (c) If City timely receives a request from a Mortgagee requesting a copy of any notice of default given to Developer under the terms of this Agreement, City shall make a good faith effort to provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to Developer. The Mortgagee shall have the right, but not the obligation, to cure the default during the period that is the longer of (i) the remaining cure period allowed such party under this Agreement, or (ii) sixty (60) days. (d) Any Mortgagee who comes into possession of the Project or Site, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Project or Site, or part thereof, subject to the terms of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of Developer's obligations or other affirmative covenants of Developer hereunder, or to guarantee such performance; except that (i) to the extent that any covenant to be performed by Developer is a condition precedent to the performance of a covenant by City, the performance thereof shall continue to be a condition precedent to City's performance hereunder, and (ii) in the event any Mortgagee seeks to develop or use any portion of the Project or Site acquired by such Mortgagee by foreclosure, deed of trust, or deed in lieu of foreclosure, such Mortgagee shall strictly comply with all of the terms, conditions and requirements of this Agreement and the Development Approvals applicable to the Project or Site or such part thereof so acquired by the Mortgagee. 9. MISCELLANEOUS PROVISIONS. 9.1 Recordation of Agreement. This Agreement shall be recorded with the County Recorder by the City Clerk within ten (10) days of execution, as required by Government Code Section 65868.5. Amendments approved by the parties, and any cancellation, shall be similarly recorded. 01005.00051264455.6 17 Development Agreement — ordinance No. 705 9.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties with respect to the subject matter set forth herein, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 9.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, then that term, provision, covenant or condition of this Agreement shall be stricken and the remaining portion of this Agreement shall remain valid and enforceable if that stricken term, provision, covenant or condition is not material to the main purpose of this agreement, which is to allow the Project to be permitted and operated and to provide the Development Fee to the City; otherwise, this Agreement shall terminate in its entirety, unless the parties otherwise agree in writing, which agreement shall not be unreasonably withheld. 9.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning, to achieve the objectives and purposes of the parties hereto. The rule of construction, to the effect that ambiguities are to be resolved against the drafting party or in favor of the non -drafting party, shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof. 9.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 9.6 Singular and Plural. As used herein, the singular of any word includes the plural. 9.7 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 9.8 Waiver. Failure of a party to insist upon the strict performance of any of the provisions of this Agreement by the other parry, or the failure by a parry to exercise its rights upon the default of the other party, shall not constitute a waiver of such parry's right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter. 9.9 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit for the Parties and the Owners, as well as their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 9.10 Force Majeure. Notwithstanding the contrary herein, neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by earthquakes, other acts of God, fires, rains, winds, wars, terrorism, riots or similar hostilities, strikes and other labor difficulties beyond the party's control (including the 01005.0005/264455.6 18 Development Agreement — Ordinance No. 705 parry's employment force), government actions and regulations (other than those of the City), court actions (such as restraining orders or injunctions), or other causes beyond the party's reasonable control. If any such events shall occur, the term of this Agreement and the time for performance shall be extended for the duration of each such event, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years and further provided that if such delay is longer than six (6) months, Developer may terminate this Agreement upon written notice to City and City shall return to developer any portion of the Development fee paid for any period after the effective date of such termination.. 9.11 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party. 9.12 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 9.13 Litigation. Any action at law or in equity arising under this Agreement or brought by any party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of Los Angeles, State of California, or such other appropriate court in said county. Service of process on City shall be made in accordance with California law. Service of process on Developer shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. In the event of any action between City and Developer seeking enforcement of any of the terms and conditions to this Agreement, the prevailing party in such action shall be awarded, in addition to such relief to which such party is entitled under this Agreement, its reasonable litigation costs and expenses, including without limitation its expert witness fees and reasonable attorneys' fees. 9.14 Covenant Not To Sue. The parties to this Agreement, and each of them, agree that this Agreement and each term hereof is legal, valid, binding, and enforceable. The parties to this Agreement, and each of them, hereby covenant and agree that each of them will not commence, maintain, or prosecute any claim, demand, cause of action, suit, or other proceeding against any other party to this Agreement, in law or in equity, which is based on an allegation, or assert in any such action, that this Agreement or any term hereof is void, invalid, or unenforceable. 9.15 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private activity, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property, on the one hand, and the holder of a legal or equitable interest in such property on the other hand. City agrees that by its approval of, and entering into, this Agreement, that it is not taking any action which would transform this private Project into a "public work" project, and that nothing herein shall be interpreted to convey upon 01005.0005/264455.6 19 Development Agreement — Ordinance No. 705 Developer any benefit which would transform Developer's private project into a public work project, it being understood that this Agreement is entered into by City and Developer upon the exchange of consideration described in this Agreement, including the Recitals to this Agreement which are incorporated into this Agreement and made a part hereof, and that City is receiving by and through this Agreement the full measure of benefit in exchange for the burdens placed on Developer by this Agreement. 9.16 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with aclmowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. 9.17 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by City of its power of eminent domain or Developer's right to seek and collect just compensation or any other remedy available to it. 9.18 Amendments in Writing/Cooperation. This Agreement may be amended only by written consent of both parties specifically approving the amendment and in accordance with the Government Code provisions for the amendment of development agreements. The parties shall cooperate in good faith with respect to any amendment proposed in order to clarify the intent and application of this Agreement, and shall treat any such proposal on its own merits, and not as a basis for the introduction of unrelated matters. Minor, non -material modifications may be approved by the City Manager upon approval by the City Attorney. 9.19 Corporate Authority. The person(s) executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party, if not an individual, is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which such party is bound. 9.20 Notices. All notices under this Agreement shall be effective when delivered by United States Postal Service mail, registered or certified, postage prepaid return receipt requested; and addressed to the respective parties as set forth below or as to such other address as the parties may from time to time designate in writing by providing notice to the other party: To City: City of Irwindale 5050 N. Irwindale Ave. Irwindale, CA 91706 Attn: City Manager 01005.0005/264455.6 20 Development Agreement — Ordinance No. 705 With Copy to: Aleshire & Wynder, LLP 18881 Von Karman Ave., #1700 Irvine, CA 92612 Attn: Fred Galante, Esq. To Developer: Mt. Olive Storage, LLC John Bea 1500 Crestfield Drive Duarte, CA 91010 With Copy To: Carlos Bea 2727 Pierce St. San Francisco, CA 94123 9.21 Nonliability of City Officials. No officer, official, member, employee, agent, or representatives of City shall be liable for any amounts due hereunder, and no judgment or execution thereon entered in any action hereon shall be personally enforced against any such officer, official, member, employee, agent, or representative. No Brokers. City and Developer represent and warrant to the other that neither has employed any broker and/or finder to represent its interest in this transaction. Each party agrees to indemnify and hold the other free and harmless from and against any and all liability, loss, cost, or expense (including court costs and reasonable attorneys' fees) in any manner connected with a claim asserted by any individual or entity for any commission or finder's fee in connection with this Agreement or arising out of agreements by the indemnifying party to pay any commission or finder's fee. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first set forth above. City: CITY OF IRWINDALE Mark A. Breceda, Mayor ATTEST: By City Clerk APPROVED AS TO FORM: By City Attorney 01005.0005/264455.6 21 Development Agreement — Ordinance No. 705 Developer: MT. OLIVE STORAGE, A CALIFORNIA LIMITED LIABILITY COMPANY [end of signatures] 01005.0005/264455.6 22 Development Agreement — Ordinance No. 705 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) On 2016, before me, , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) On 2016, before me, , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 01005.0005264455.6 23 Development Agreement — Ordinance No. 705 EXHIBIT "A" LEGAL DESCRIPTION OF SITES Mount Olive Site: Development Agreement— Ordinance No. 667 A-1 EXHIBIT B SCOPE OF DEVELOPMENT Developer and City agree that the Project shall be undertaken in accordance with the terms of the Agreement, which include the following: 1. The Project. The use authorized by this Agreement allows for the replacement of an a formerly existing on-site advertising pole sign (`Billboard") with 2 outdoor advertising sign faces as Digital Displays. The former Billboard was a double -sided static display. A Digital Display, as further defined in this Agreement, as an off-site sign face that uses digital technology to change the static messages on the sign electronically. This type of display shall not contain video, animation, movement, flashing or the appearance of movement. The Digital Display only, contains only messages that are static for eight (8) seconds at a time and then change to the next message. To this end, Developer shall replace a former double -sided static display Billboard with a 14 x 48 foot double -sided V -display Digital Display Billboard, facing East and West, 850 feet East of Interstate 605 freeway in the City of Irwindale. Developer shall operate and maintain the Digital Displays on the Sites in accordance with the Development Approvals and this Agreement and all conditions of approval and consistent with the approval from the California Department of Transportation Outdoor Advertising Division. The former Billboard consisted of a 12 x 48 foot double -sided static display billboard that was freeway -oriented having a single support column and which will be replaced with Digital Displays pursuant to the terms of this Agreement. The Digital Display shall comply with Section 17.72.050, General Standards, of the Irwindale Municipal Code. Specifically, the area of the sign face shall not exceed six hundred seventy-five (675) square feet, excluding border, trim, cutouts and other special advertising features or additions and base or apron supports and other structural members. The building height may not exceed sixty-five (65) feet or, exclusive of cutouts or special additions, measured from the higher of either: 1) The finished grade of the roadway adjacent to the lot on which the structure is located (the 210 Freeway) and from which the advertising display is to be viewed; or 2) The finished grade of the base of the sign. Developer shall install underground all utilities necessary for the Digital Displays. The Digital Displays shall be constructed in the location shown therefor on Exhibit "C." The existing Mt. Olive Storage on -premises advertising (allowing only the display of the business on-site) sign consists of a 10 x 15 foot double sided static sign and will remain in place 22 feet from the Digital Display. 2. Building Fees. Developer shall pay all applicable City building fees, as described at Section 2.5 of this Agreement, at the time that a building permit is issued for the installation of the Digital Displays on the Sites. 3. Maintenance and Access. Developer, for itself and its successors and assigns, hereby covenants and agrees to be responsible for the following: Development Agreement— ordinance No. 705 B-1 (a) Maintenance and repair of the Digital Displays, including but not limited to, the displays installed thereon, and all related on-site improvements, easements, rights-of-way and, if applicable, at its sole cost and expense, including, without limitation, poles, lighting, signs and walls, in good repair, free of graffiti, rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, State, and local bodies and agencies having jurisdiction over the Site unless those federal, State, and local bodies have an exception for a legal nonconforming use. Such maintenance and repair shall include, but not be limited to, the following: (i) sweeping and trash removal related to the Project; (ii) the ongoing maintenance by the Developer of any access road to the Digital Displays to minimize dust caused by the Project; (iii) the adequate and complete removal or painting over of all graffiti within 48 hours of notice of such graffiti being affixed on the Digital Displays; and (iv) the repair, replacement and repainting of the structures and displays as necessary to maintain such Digital Displays in good condition and repair. (b) Maintenance of the Sites in such a manner as to avoid the reasonable determination of a duly authorized official of the City that a public nuisance has been created by the absence of adequate maintenance of the Project such as to be detrimental to the public health, safety or general welfare or that such a condition of deterioration or disrepair causes appreciable harm or is materially detrimental to property or improvements within three hundred (300) feet of the Sites. 4. Other Rights of City. In the event of any violation or threatened violation of any of the provisions of this Exhibit `B," then in addition to, but not in lieu of, any of the rights or remedies the City may have to enforce the provisions of this Agreement, the City shall have the right, after complying with Section 5.4 of this Agreement, (i) to enforce the provisions hereof by undertaking any maintenance or repairs required by Developer under Paragraph 3 above and charging Developer for any actual maintenance costs incurred in performing same, and (ii) to withhold or revoke, after giving written notice of said violation, any building permits, occupancy permits, certificates of occupancy, business licenses and similar matters or approvals pertaining to the Sites or any part thereof or interests therein as to the violating person or one threatening violation. 5. No City Liability. The granting of a right of enforcement to the City does not create a mandatory duty on the part of the City to enforce any provision of this Agreement. The failure of the City to enforce this Agreement shall not give rise to a cause of action on the part of any person. No officer or employee of the City shall be personally liable to the Developer, its successors, transferees or assigns, for any default or breach by the City under this Agreement. 6. Conditions of Approval. The following additional conditions shall apply to the installation of the Digital Displays and shall conform to all applicable provisions of the Irwindale Municipal Code (IMC), including but not limited to the Outdoor Advertising provisions of the IMC at Section 17.72.030, and the following conditions, in a manner subject to the approval of the Community Development Director or designee: Development Agreement—Ordinance No. 705 B-2 (a) Conditions to be met before Final Permits. Prior to the issuance of a business license, occupancy permit, final inspection by the Community Development Department, and Final Permits, all applicable conditions of approval (except those involving construction permits) shall be completed to the reasonable satisfaction of the City. (b) Building Permit. A building permit from the Building and Safety Division will be required, structural calculations shall be prepared by a licensed civil engineer and approved by the City Building Official. All construction shall be in compliance with the Irwindale Building Code and all applicable regulations including Caltrans Advertising Department. (c) Plans. The use and improvements authorized by this Agreement shall conform to the plans as finally approved by the City (date stamped July 20, 2016) as conditioned herein, and any appreciable modification of the plans or mode of operation, as determined by the Director of Community Development, shall require the prior approval of the Planning Commission. (d) Digital Display dimensions. The size of each sign display of Digital Displays shall not exceed a maximum area of 675 square feet, with no more than 128 total feet of extensions or borders, and shall not to exceed a maximum height of 65 feet, as measured per Section 17.72.050 standards, including all extensions, and shall be consistent with the Elevations at Exhibit "C" approved by the City as part of the Development Approvals. (e) Plan Check. Plans and specifications for the proposed installation of the Digital Displays, including plans for all utilities, shall be submitted to the City Community Development and Building Departments for plan check and approval prior to the issuance of building permits. (f) Compliance with applicable law. Developer shall maintain the Sites and use thereof in full compliance with all applicable codes, standards, policies and regulations imposed by the City, County, State or federal agencies by any dully and valid city, county or state ordinance with jurisdiction over the facilities, unless the Project is exempted as a legal nonconforming use. (g) Developer shall, at all time, comply with the approval for the Digital Displays from the California Department of Transportation Outdoor Advertising Division and shall maintain acceptable clearance between the Digital Displays and utility distribution lines. (h) Fees. The Developer shall pay any and all applicable fees due to any public agency prior to the final issuance of the building permits. (i) Use within Sites. The activities proposed in this Agreement shall be conducted completely upon the respective Site and shall not use or encroach on any public right-of-way. Development Agreement— Ordinance No. 705 B-3 (j) Access Roads. Developer shall ensure that all access to the Digital Displays is kept restricted to from the general public to the extent permitted under local laws. (k) Landscaping. If any portion of the landscape or artwork installed adjacent to the Digital Displays is damaged by the Project and becomes damaged, or otherwise in need of replacement, as determined by the City's Community Development Department Director or designee, the Developer shall ensure that the replacement is accomplished within fourteen (14) days of notification by the City, unless such time is extended by the City's Community Development Director or designee if Developer shows unusual circumstances requiring more time to accomplish such replacement. Developer or Owner may trim such landscaping so as not to block the billboards. (1) Utilities. Developer shall be required to install all utilities underground in connection with the Digital Displays. To this end, City shall cooperate with the applicable utility provider's requirement upon Developer to upgrade Developer's current electrical service to the Billboards. (m) Light/Glare. Developer shall comply with State law regarding the limitation of light or glare or such other standards as adopted by the Outdoor Advertising Association of America, Inc. (OAAA), including but not limited to, the 0.3 foot-candles limitation over ambient light levels and ensuring additional flexibility in further reducing such maximum light level standard given the lighting environment upon request by the City's Planning Officer, the obligation to have automatic diming capabilities, as well as providing the City's Planning Officer or designee with a designated Developer employee's phone number and/or email address for emergencies or complaints that will be monitored 24 hours a day/7 days per week. Upon any reasonable complaint by the City's Planning Officer or designee, Developer shall perform a brightness measurement of the display using OAAA standards, or such lower level given the lighting environment, and provide City with the results of same within 5 days of the City's complaint. Developer shall dim the display to the appropriate setting immediately upon the conclusion of any such measurement that concluding that the light standards were exceeded. (n) Public Works: (1) NPDES. Developer shall comply with all necessary NPDES requirements pertaining to the proposed use, to the extent applicable. (2) Separate permits are required for all work within the public right-of-way. The applicant shall be responsible for all fees for the necessary permits and construction inspections for work within the public - right -of -way. Development Agreement— Ordinance No. 705 B-4 EXHIBIT C DEPICTION OF SITES [See following pages] 01005.0005/264455.6 RK Development Agreement —Ordinance No. 667 C-1 EXHIBIT D SCHEDULE OF PERFORMANCE ITEM OF PERFORMANCE TIME FOR REFERENCE PERFORMANCE 1. Developer to provide proof of At least 20 days before 2.2 100% ownership to the Planning Commission hearing satisfaction of the City. 2. City's Planning Commission July 20, 2016 Recitals holds public hearing and recommends approval of Agreement and Conditions of Approval 3. City's City Council holds August 10, 2016 (1" Reading); Recitals hearings to approve Agreement August 24, 2016 (2nd Reading) and first and second reading of provided Developer has fully Ordinance executed the Agreement 4. Effective Date of this Agreement. 30 days following Council's N/A second reading of Ordinance, or September 26, 2016. 5. Developer prepares and submits Within 120 days of the 3.4 to City working drawings Council's second reading of the specifications and engineering, Ordinance approving this City commences approval Agreement process. 6. Developer to provide copy of Prior to the City's issuance of 1.1.13 Caltrans preliminary approval to all necessary permits per No. 7 City below 7. City to approve all construction, Within 30 days of City's receipt 3.3, 3.4 engineering drawings and of Applicant's construction specifications with a plan check drawings and specifications approval and issue all necessary addressing all of City's permits, including but not limited comments to, a building permit. 8. Developer to submit proof of Prior to commencing any 7.1.2 insurance to City inspections and work on the Project 01005.0005/264455.6 RK D-1 FITEM OF PERFORMANCE TIME FOR PERFORMANCE REFERENCE 9. Developer pays City first Within 1 year of Developer 2.6 installment of Development Fee if receiving Final Permits Developer receives Final Permits 10. Developer pays City second Beginning within 2 years of 2.6 through twentieth installments of Developer receiving Final Development Fee if Developer Permits, and ending 20 years receives Final Permits thereafter. Each payment occurring at the end of each year of the Term. It is understood that this Schedule of Performance is subject to all of the terms and conditions of the text of the Agreement. The summary of the items of performance in this Schedule of Performance is not intended to supersede or modify the more complete description in the text; in the event of any conflict or inconsistency between this Schedule of Performance and the text of the Agreement, the text shall govern. The time periods set forth in this Schedule of Performance may be altered or amended only by written agreement signed by both the Developer and the City. Notwithstanding any extension of the Term in the manner described in, and subject to the provisions of, Section 3.5, the City Manager shall have the authority to approve extensions of time set forth in this Schedule of Performance without action of the City Council not to exceed a cumulative total of 180 days. Development Agreement— ordinance No. 705 D-2