HomeMy WebLinkAboutPC RES 4511 Docusign Envelope ID: EAFDB716-6C7F-46C5-BF80-OAE194E3566E
RESOLUTION NO. 4511
A RESOLUTION OF THE PLANNING COMMISSION OF THE
CITY OF TUSTIN, CALIFORNIA, RECOMMENDING THAT THE
TUSTIN CITY COUNCIL APPROVE DEVELOPMENT
AGREEMENT 2024-0007 AMENDING THE TERM AND
SPONSORSHIP CONTRIBUTION PREVIOUSLY ESTABLISHED
BY DEVELOPMENT AGREEMENT 2020-0001 REGARDING
THE FREEWAY ADJACENT DIGITAL DISPLAY BILLBOARD AT
THE TUSTIN AUTO CENTER.
The Planning Commission of the City of Tustin does hereby resolve as follows:
I. The Planning Commission finds and determines as follows:
A. That the previously approved Development Agreement (DA) 2020-0001 term
expires on December 31, 2024.
B. That DA 2020-0001 provided public benefits in the form of a $25,000 annual
contribution towards four(4) Parks & Recreation events and it was understood
the contribution would be negotiated annually.
C. That DA 2020-0001 did not establish a methodology for the annual negotiation
of the sponsorship contribution.
D. That a public hearing was duly called, noticed, and held on said application
on December 10, 2024, by the Planning Commission.
E. That DA 2024-0007 can be supported by the following findings-
1. The project is consistent with the objectives, policies, general land uses
and programs specified in the General Plan and the Auto Center Planned
Community regulations in that the proposed freeway adjacent digital
display billboard use is a conditionally permitted use that supports the
Tustin Auto Center and City programs.
2. The project is compatible with the uses authorized in the district in which
the real property is located in that the site is approved for a freeway digital
display billboard and the proposed project is a minor expansion of the
allowed use.
3. The project is in conformity with the public necessity, public convenience,
general welfare, and good land use practices in that the agreement
incorporates public benefits in the form of advertisements for city events
and financial contributions to City programs.
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Resolution No. 4511
Page 2
4. The project will not be detrimental to the health, safety, and general
welfare in that the freeway adjacent digital display billboard structure is
existing. That, as conditioned, the billboard structure and use will not be
detrimental to health, safety, and general welfare.
5. The project will not adversely affect the orderly development of property
in that the existing and surrounding properties are already improved with
landscaping, signage and multiple automobile dealerships.
6. The project will have a positive fiscal impact on the City in that the
provisions of the proposed DA and conditions of approval will ensure that
the project will have a positive fiscal impact on the City.
F. That this project has been determined to be Categorically Exempt pursuant
to Section 15301 (Class 1) of the California Environmental Quality Act in
that the subject project involves no physical modifications to an existing
structure and results in negligible expansion of an existing use.
II. The Planning Commission hereby adopts Resolution No. 4451 recommending that
the City Council approve DA 2024-0007, attached hereto as Exhibit A and amends
the term and methodology previously established by DA 2020-0001.
PASSED AND ADOPTED by the Planning Commission of the City of Tustin at a regular
meeting on the 10th day of December 2024.
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Signed by;
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ERIC HIGUCHI
Signed by: Chairperson
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JUSTINA L. WILLKOM
Planning Commission Secretary
APPROVED AS TO FORM:
Signed by;
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MICHAEL DAUDT
Assistant City Attorney
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Resolution No. 4511
Page 3
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF TUSTIN )
I, Justina L. Willkom, the undersigned, hereby certify that I am the Planning Commission
Secretary of the City of Tustin, California; that Resolution No. 4511 was duly passed and
adopted at a regular meeting of the Tustin Planning Commission, held on the 10th day of
December, 2024.
PLANNING COMMISSIONER AYES: Douthit, Higuchi, Kozak, Mello (4)
PLANNING COMMISSIONER NOES:
PLANNING COMMISSIONER ABSTAINED:
PLANNING COMMISSIONER ABSENT: Mason (1)
Signed by:
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JUSTINA L. WILLKOM
Planning Commission Secretary
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EXHIBIT A
RESOLUTION NO. 4511
DEVELOPMENT AGREEMENT 2024-0007
Docusign Envelope ID: EAFDB716-6C7F-46C5-BF80-OAE194E3566E
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
City of Tustin
300 Centennial Way
Tustin, CA 92780 Attn:
City Clerk
[Exempt From Recording Fee Per Gov. Code §6103]
DEVELOPMENT AGREEMENT 2024-007
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT 2020-0001
This Amendment, Development Agreement 2024-0007, to Development Agreement 2020-0001
("Amendment")is entered into to be effective this day of ,2025,by and between the CITY
OF TUSTIN ("City") and TUSTIN AUTO CENTER MERCHANTS ASSOCIATION, a non-profit
California Corporation ("Applicant"). City and Applicant are sometimes hereinafter individually referred
to as a"Party" and hereinafter collectively referred to as the "Parties."
RECITALS
A. The City and Applicant entered into that certain Development Agreement dated as of July
22, 2020, and recorded in the Official Records, Orange County, as Document No. 2020000352604 (the
"Development Agreement")pursuant to which,among other things,the City agreed to allow the Applicant
to expand the scope of advertisements and messages permitted on their freeway adjacent digital display
billboard. Initially capitalized terms not defined herein shall have the respective meanings assigned to
such terms in the Development Agreement.
B. Unless extended by mutual written agreement,the Development Agreement will expire on
December 31, 2024.
C. The Parties desire to amend the Development Agreement to extend its term and modify the
Public Benefits provided by Applicant to the City as set forth herein.
D. On , 2024, the City Planning Commission, at a duly noticed public hearing to
consider this Amendment, adopted Resolution No. recommending approval of this Amendment to
the City Council.
E. On , 2025,the City Council of the City, at a duly noticed public hearing to consider
the approval of this Amendment, considered the proposal and heard testimony relating to this Amendment.
F. On , 2025, the City Council conducted the second reading of Ordinance No,
thereby approving this Amendment.
G. City finds and determines that all actions required of City precedent to approval of this
Amendment by Ordinance No. of the City Council have been duly and regularly taken.
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NOW, THEREFORE, in consideration of the mutual promises and covenants herein,the Parties
agree as follows:
1. Incorporation of Recitals. The above-referenced Recitals are hereby incorporated into
this Amendment as though fully set forth herein and made part of the Amendment and each Party
acknowledges and agrees that such Parry is bond, for purposes of this Amendment by the same.
2. Term. Section 1.6 of the Development Agreement is hereby amended and restated in its
entirety to read as follows:
"Section 1.6 Term of Agreement. Unless earlier terminated as provided in Section 4.1
of this Agreement, this Agreement shall continue in full force and effect for an initial term ending
on December 31, 2024. Commencing January 1, 2025, the Agreement shall automatically renew
for additional five-year terms (each a"Successive Term") and shall continue in perpetuity, unless
(a) terminated as provided in Section 4.1 of this Agreement, or (b) until either Parry provides
written notice of non-renewal to the other Parry within ninety (90) calendar days prior to the
expiration of the then current Successive Term. Within thirty (30) calendar days after the
termination or expiration of this Agreement,the Parties shall execute a written cancellation of this
Agreement which shall be recorded with the County Recorder pursuant to Section 6.1. Following
the termination or expiration of the Agreement, Applicant will limit advertisements and messages
on the Existing Sign to businesses,products,persons, or subjects related to the Tustin Auto Center
in accordance with CUP 03-023."
3. Public Benefits. Subsections 1.7.2 and 1.7.3 of the Development Agreement are hereby
amended and restated in their entirety to read as follows:
"1.7.2 Annual Sponsorship Contribution. Applicant shall make an Annual Sponsorship
Contribution("Contribution")to the City's Parks &Recreation Department to support community
events. The initial Contribution for Calendar Years 2020 through 2024 was $25,000. The
Contribution for the next five calendar years, 2025 through 2029, will be calculated by utilizing
car sales tax data from the current five years, Fiscal Year ("FY") 2019-2020 to FY 2023-2024,
specifically the last FY, in this case FY 2023-2024, against the base FY 2018-2019. The base FY
is the FY prior to the current five years. The base year(A), in this case FY 2018-2019, will serve
as the denominator, and the last FY of the current five-year period(B), in this case FY 2023-2024,
will serve as the numerator. The calculation minus the number one equals the percentage
difference (C) from the five-year period against the base FY, and then it is divided by the number
of calendar years in the term (D). The percentage derived, or average annual growth rate (E), will
be applied against the initial contribution of$25,000 (F) to determine the increase (G). The sum
of the Contribution and increase amount equals the New Contribution (H) and will remain fixed
for the five subsequent years, 2025 through 2029. At the next five years, 2030 through 2034, the
calculation will consider the current five years of change. The FY prior to the current five years
will serve as the denominator and the last FY of the current five years will serve as the numerator.
The calculation minus one will be divided by five and that percentage is applied against the 2025
—2029 Contribution, thus becoming the next 5-year Contribution. This manner of calculating the
annual Contribution will be applied for each Successive Term. The Parties acknowledge that the
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Contribution amount may be reduced because of reductions in car sales tax; however, in no event
shall the annual Contribution paid by Applicant be less than $25,000. An example of this
calculation is provided in the table below.
EXAMPLE:
Calendar Years 2020 through 2024
(A) (B) (C)
Base Fiscal Year Ending Fiscal Year Percent Change(B)/(A)-1
Example Calculations 2018-2019 2023-2024 2018-19 to 2023-24
Car Sales Tax Growth Rate $5,000,000 $6,250,000 25%
(C) (D) (E)
Percent Change Calendar Years Avg.Annual Growth Rate(C)/(D)
Average Annual Growth Rate 25% 5 5%
(E) (F) (G)
Avg.Annual Growth Rate Base Contribution Contribution Increase(E)x(F)
Contribution Increase 5% $25,000 $1,250
(F) (G) (H)
Initial Contribution Contribution Increase New Contribution(F)+(G)
Revised Annual Contribution $25,000 $1,250 $26,250
$26,250 is the new Contribution for five years based on the example scenario. However,
if there is no growth between a five-year period, the Contribution for the next five years will be
equal to the Contribution from the previous five years.
The Contribution will support four(4)major Parks &Recreation events. The City reserves
the right to cancel community events, and the amount of the Contribution shall not be offset or
pro-rated in the event of any such cancellation.
1.7.2.1 Payment Schedule. The City shall provide to Applicant the City's
calculation of car sales tax and the resulting annual Contribution by November 1st of any
year where the Agreement is subjectto renewal for an additional five-year Successive Term
(e.g. car sales tax calculation to be provided in November 2029, for annual Contribution
amount commencing on January 31, 2030). The Contribution shall be paid annually, with
the first installment payable by no later than forty-five days after the second reading of
Ordinance No. ("First Due Date"). Subsequent annual Contribution payments shall
be due no later than the January 31 of that year("Subsequent Due Date(s)"). The First Due
Date and Subsequent Due Date(s) are individually and collectively referred to hereafter as
the "Due Date."
1.7.2.2 Late Payment. Failure by Applicant to pay the Contribution to City within
thirty (30) calendar days following the Due Date is considered a material Breach of this
Agreement subject to termination in accordance with Section 4.1.1.
1.7.3 Annual Review of Public Benefits. By no later than March I" of each year, the
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City Manager or their designee, and Applicant will consider revisions to the City's share of visual
time on the Digital Billboard per Section 1.7.1. The City Manager or their designee is authorized
to approve, by written addendum to this Agreement, adjustments to the quantity of City display
time on the Digital Billboard, provided that the City Manager may not approve a reduction in the
City's allotment of display time on the Digital Billboard ("Reduction in Public Benefit"). Any
Reduction in Public Benefit may only be approved by action of the City Council. The City Manager
may, at their discretion, forward any other proposed modification of Public Benefits to the City
Council."
4. Review for Compliance. Section 3.1 of the Development Agreement is hereby amended
and restated in their entirety to read as follows:
"31 Annual Review. The City Manager or their designee shall review this Agreement
annually, by no later than March lst of each year, to ascertain the good faith compliance by
Applicant with the terms of the Agreement ("Annual Review"). The Annual Review will not
require a public hearing unless amendments to this Agreement are being requested by Applicant
or recommended by City. 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. Applicant shall
cooperate with the City in the conduct of such Annual Review and provide the following
information and documentation to the City on or before February lst of each year: (1) copy of a
current and valid CalTrans permit; (2) description of all complaints from CalTrans or the City
regarding the Digital Billboard; (3) description of all complaints from the public regarding the
display unrelated to any content of the message displayed; and (4) a list of all City Messages
displayed during the preceding year of the Term per Section 1.7.1 and a description of the time
and duration of such displays."
5. No Other Changes. This Amendment is supplemental to the Development Agreement
and is by reference made part of said Development Agreement. All provisions of the Development
Agreement not specifically amended herein shall remain in full force and effect. In the event of any
conflict or inconsistency between the provisions of this Amendment and any provisions of the
Development Agreement,the provisions of this Amendment shall in all respect govern and control.Unless
otherwise specifically defined herein, terms used in this Amendment shall have the same meaning as
ascribed to them in the Development Agreement. The execution and delivery of this Amendment shall
not operate as a waiver of or, except as expressly set forth herein, an amendment of any right, power or
remedy of either Party in effect prior to the date hereof.
6. Counterparts. This Amendment may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument and any of the Parties hereto may
execute this Amendment by signing any such counterpart.
7. Recordation of Amendment. This Amendment shall be recorded with the County
Recorder by the City Clerk within 10 calendar days of execution,as required by Government Code Section
65868.5. Any future amendments approved by the Parties, and any cancellation, shall be similarly
recorded.
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the day and year
first set forth above.
City: CITY OF TUSTIN
By:
Austin Lumbard, Mayor
ATTEST:
By:
Erica N. Yasuda, City Clerk
APPROVED AS TO FORM:
By:
David E. Kendig, City Attorney
/msd/
Applicant: TUSTIN AUTO CENTER
MERCHANTS ASSOCIATION,
By:
Its:
By:
Its:
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