HomeMy Public PortalAboutAgreement_2011-10-06_Delorenzo Family Trust_Digital Billboard Advertising and Amortizationr
OFFICIAL BUSINESS
Document exempt from recording
fees pursuant to Cal. Gov. Code § 6103.
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Temple City
9701 Las Tunas Drive
Temple City, CA 91780
ATTN: Community Development Dept.
ATTACHMENT A
COPYof Document Recorded I
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FOR
DIGITAL BILLBOARD ADVERTISING AND
AMORTIZATION AGREEMENT
RIV #4842-7132-3657 v3
by and between the
CITY OF TEMPLE CITY
and
DELORENZO FAMILY TRUST
Dated OCTOBER 6 2011
t
DIGITAL BILLBOARD ADVERTISING AND AMORTIZATION AGREEMENT
This Digital Billboard Advertizing and Amortization Agreement ("Agreement"), which is
dated for reference as indicated on the cover page, is hereby entered into by and between the
CITY OF TEMPLE CITY, a California charter city ("City") and the DELORENZO FAMILY
TRUST ("Digital Billboard Owner") on the following terms and conditions:
RECITALS
A. New outdoor advertizing structures (hereinafter referred to as "billboards") are
prohibited in the City of Temple City except for in the M-1 zone. However, Section 9329 of the
Temple City Municipal Code allows existing legal non -conforming billboards to be upgraded
and modernized subject to a Conditional Use Permit.
B. A legal non -conforming billboard currently exists on the Property ("Existing
Billboard"), as well as a self -serve car wash and automobile repair shop. The Digital Billboard
Owner has applied for and obtained a Conditional Use Permit to expand and remodel the existing
car wash and repair shop on the Property and to modernize the Existing Billboard as provided for
in Section 9329 of the Temple City Municipal Code ("CUP 11-1777").
C. CUP 11-1777 allows the Digital Billboard Owner to demolish the Existing
Billboard and construct a dual -sided 14'x 48' LED digital billboard on the Property ("Digital
Billboard").
D. Subsection (B)(4) of Section 9329 requires any person who obtains a Conditional
use permit to modernize an existing billboard to enter into a written agreement with the City
providing for the amortization of the new, modernized digital billboard and the provision of
advertizing space to the City on the new digital billboard.
E. The Digital Billboard Owner is a co-owner of the Property. The Digital Billboard
Owner has submitted proof of the other co -owner's consent to the installation of the Digital
Billboard.
"Action" shall mean any suit (whether legal, equitable, or declaratory in nature),
proceeding or hearing (whether administrative or judicial), arbitration or mediation (whether
voluntary, court-ordered, binding, or non-binding), or other alternative dispute resolution
process, and the filing, recording, or service of any process, notice, claim, demand, lien, or other
instrument which is a prerequisite or prelude to commencement of the Action.
`ilrnortizaSan Period" shall mean the period of time the Digital Billboard Owner is
permitted to use the Digital Billboard, as provided for in Section 2.1 of this Agreement.
"Existing Billboard" shall mean that dual -sided. externally lighted billboard located on
the Property.
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"City" shall mean the City of Temple City, a charter city and municipal corporation
formed and existing under the laws of the State of California. The term "City" shall also include
any assignee of, or successor to, its rights, powers, and responsibilities.
"City Manager" shall mean the City Manager of the City and/or any person designated
and authorized by the City Manager to act in the City Manager's capacity with regard to this
Agreement.
"Costs and .Expenses" shall mean court costs, filing, recording, and service fees, copying
costs, exhibit production costs, special media rental costs, attorneys' fees, consultants' fees,
witness fees (both lay and expert), travel expenses, deposition and transcript costs, costs of
preparing notices, claims, and demands, investigation costs, and any other cost or expense
reasonably and necessarily incurred by the party.
"CUP 11-1777" shall mean that Conditional Use Permit obtained by Digital Billboard
Owner for the Project.
'Default" shall mean the failure of a party to perform any material action or covenant
required by and within the time periods provided herein following notice and opportunity to
cure, as set forth in Section 5.1 [Default] of this Agreement. A material violation of a condition
of approval of CUP 11-1777 shall be deemed a default.
"Digital Billboard" shall mean the dual -sided 14' x 48' LED billboard the Digital
Billboard Owner is permitted to construct on the Property after the demolition of the Existing
Billboard pursuant to Conditional Use Permit 11-1777, as depicted on the diagram attached
hereto and incorporated herein by reference as Attachment "C".
"Digital Billboard Owner" shall mean the Delorenzo Family Trust. The term "Digital
Billboard Owner" shall, to the extent such is expressly permitted under this Agreement, include
any assignee of, or successor to, the rights and responsibilities of the Digital Billboard Owner
under this Agreement.
"Effective Date" shall mean the date the Agreement has been formally approved by the
City's governing board and executed by the appropriate authorities of the City and Digital
Billboard Owner.
"Project" shall mean the total project described in CUP 11-1777, as described in more
detail in Attachment "D" hereto.
"Project Approvals" shall mean any land use, development, and building approvals and
entitlements required by the City for the development and construction of the Project, including,
but not limited to, Conditional Use Permit No. 11-1777.
"Property" shall mean those certain parcels of real property located at 5402 Rosemead
Boulevard, Temple City, California, and 9011 Olive Street, Temple City, California and
conunonly known as Assessor's Parcel Numbers 5388-004-014 and 5388-004-017, as more
particularly described in the legal description attached hereto and incorporated herein by
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reference as Attachment "A" and as depicted on the diagram attached hereto and incorporated
herein by reference as Attachment "B".
"Property Owner" shall mean the Delorenzo Family Trust and the Demarco Family
Trust. "Property Owner" shall include any successors and assignees to the Property Owner's
interests in the Property."
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by
the parties and contained herein and other consideration, the value and adequacy of which are
hereby acknowledged, the parties agree as follows:
ARTICLE I - PROVISION OF ADVERTISING SPACE TO CITY
1.1. Advertising Space. Digital Billboard Owner shall make advertising space on the
Digital Billboard available to the City. One slot in the advertising rotation for the Digital
Billboard shall be made available to the City at all times at no cost to tate City. The terms upon
which the Digital Billboard Owner shall make advertising space available to the City are more
fully described in Attachment "E" to this Agreement.
I.I.I. City shall not sell the advertising time it is provided pursuant to this
Agreement to any third parry.
1.1.2. In the event that the Digital Billboard is offline due to general screen
maintenance, screen upgrades or technology failures, there shall be no cant' forward of City
advertising minutes. Any failure to provide the City with advertising space due to general screen
maintenance, screen upgrades or technology failures shall not be deemed a Default under this
Agreement.
1.2. Non -Use By City. City shall notify Digital Billboard Owner of any planned
periods of non-use of its advertising space. Notification shall be given to the Digital Billboard
Owner at least thirty (30) days prior to the commencement of the planned period of non-use.
Digital Billboard Owner may utilize the City's advertising space during any such planned period
of non-use.
1.3. Operation of Digital Billboard. Digital Billboard Owner shall operate the Digital
Billboard in accordance with the Project Approvals, including CUP 11-1777, a copy of which is
attached as Attachment "F" to this Agreement. Advertisements and other content displayed shall
be static images only, motion video is prohibited.
1.4. Local Business Discount. Digital Billboard Owner agrees to offer up to twenty-
five percent (25%) of the available advertising slots on the Digital Billboard, or up to two (2)
slots, whichever is higher, to businesses located in Temple City at a fifty percent (50%) discount
off of the Standard Rate Card price for the advertising slots.
1.5. Advertising Content. Digital Billboard Owner voluntarily agrees to limit the
types of advertising content it will display on the Digital Billboard in the following manner:
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I.S.I. Digital Billboard Owner will not display any advertising content that
contains obscenity, as defined by the United States Supreme Court in Miller v. California (1973)
413 U.S. 15.
1.5.2. Digital Billboard Owner will not display any advertising content that
contains nudity, and all persons depicted on the Digital Billboard shall have their genitalia, pubic
area, buttocks and female breasts from the top of the areola and below, covered completely and
not displayed in a sexually suggestive or prurient manner.
1.5.3. Digital Billboard Owner will not display any advertising for adult oriented
businesses, as that term is defined in Section 9455.2 of the Temple City Municipal Code,
regardless of whether the adult oriented business is located in Temple City or elsewhere.
ARTICLE Il - AMORTIZATION OF DIGITAL BILLBOARD
2.1. Amortization Period. Digital Billboard Owner shall be permitted to use the
Digital Billboard for a period of forty (40) years, commencing on the Effective Date of this
Agreement ("Amortization Period"). Digital Billboard Owner and City agree that this
Amortization Period is anticipated to provide Digital Billboard Owner sufficient time to recoup
its investment in the Digital Billboard. For the duration of the Amortization Period, the Digital
Billboard shall be deemed to be a legal nonconforming sign under the Temple City Municipal
Code and the City shall not seek to remove the Digital Billboard, except as may be provided
under Section 2.3.2 [Early Removal] of this Agreement.
2.2. Maintenance. The Digital Billboard Owner covenants and agrees for itself, its
successors and assigns, and any successor -in -interest to the Digital Billboard, or any part thereof,
that it will, at its sole cost and expense:
2.2.1. Maintain the appearance and safety of the Digital Billboard (including all
improvements and fixtures related thereto) in good order, condition, and repair, and free from the
accumulation of trash, waste materials, and other debris;
2.2.2. Remove all graffiti placed upon the Digital Billboard (including all
improvements and fixtures related thereto) within seventy-two (72) hours of receiving written
notice as provided in this Agreement, or under the City's Municipal Code, from the City. In the
event of a breach of this covenant and of a failure to cure the breach within fifteen (15) days after
service of a written notice by City, the City or its agents, employees and contractors shall have
the right to enter upon the Property and Digital Billboard without further notice and to take such
actions as are necessary to cure the breach. Digital Billboard Owner shall reimburse City for all
costs associated with cure of the breach (including but not limited to, staff services,
administrative costs, legal services, and third -party costs), within fifteen (15) days after service
of a written notice by City. if Digital Billboard Owner fails to pay within the time provided,
such costs shall be a lien upon the Digital Billboard, as provided by California Civil Code §
2881. The City may enforce and foreclose such lien in any manner legally allowed.
2.2.3. Equip the Digital Billboard with automatic dimming capability, and ensure
that the light produced by the Digital Billboard does not exceed 0.3 foot candles over ambient
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light levels. The light produced by the Digital Billboard shall be measured 250 linear feet
directly in front of each ofthe Digital Billboard's faces at 5 feet above the ground.
2.3. Removal of Sian.
2.3.1. Removal at End of Amortization Period. On or before the expiration of the
Amortization Period, Digital Billboard Owner shall, at its sole cost and expense, remove the
Digital Billboard from the Property to the satisfaction of the City's Community Development
Director (or equivalent department head in the event such title should change).
2.3.2. Early Removal. The City may require that Digital Billboard Owner remove
the Digital Billboard prior to the expiration of the Amortization Period in any of the following
events:
2.3.2.1. Uncured Default. Digital Billboard Owner fails to cure a default
of this Agreement within the time provided for cure under Article V [Default] of this Agreement;
2.3.2.2. Bankruptcy. The filing against Digital Billboard Owner of a
petition in bankruptcy or other similar proceeding under law for relief of debtors or the
involuntary appointment of a receiver, custodian, liquidator or trustee in bankruptcy of Digital
Billboard Owner's Property where such petition or appointment is not vacated or discharged
within sixty (60) calendar days after the filing or making thereof.
2.3.2.3. Insolvency. Digital Billboard Owner becomes insolvent or
voluntarily of involuntarily makes an assignment or transfer for the benefit of creditors other
than the City, and/or the voluntary or involuntary appointment of a receiver, custodian, liquidator
or trustee of Digital Billboard Owner's property.
2.4. Security. Digital Billboard Owner shall purchase and maintain a performance
bond or other security, such as a cash deposit or irrevocable letter of credit, in accordance with
the schedule contained herein, to secure the performance of its obligations under this Agreement.
In the event of an uncured breach of the Digital Billboard Owners' obligations under Sections
2.2 [Maintenance] or Section 2.3 (Removal of Sign] of this Agreement, City may make claim
against or draw upon the bond or other security an amount equal to the costs incurred by City to
remedy the breach.
2.4.1. During the first five years of this Agreement, Digital Billboard Owner shall
purchase and maintain a performance bond or other security in an amount greater than or equal
to five thousand dollars ($5,000).
2.4.2. During the sixth through tenth years of this Agreement, Digital Billboard
Owner shall purchase and maintain a performance bond or other security in an amount greater
than or equal to ten thousand dollars ($10,000).
2.4.3. During the eleventh through fifteenth years of this Agreement, Digital
Billboard Owner shall purchase and maintain a performance bond or other security in an amount
greater than or equal to fifteen thousand dollars ($15,000).
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ARTICLE III - COVENANTS RUN WITH THE LAND
3.1. The Covenants set forth herein shall run with the Property and shall be binding
upon Digital Billboard Owner. The Covenants may be enforced by the City. Digital Billboard
Owner shall not challenge the Covenants as set forth in this Agreement or any right of the City
created under this Agreement. Digital Billboard Owner expressly acknowledges and agrees that
the Covenants are reasonable restraints on Digital Billboard Owner's right to own, use, maintain,
and transfer any interest in the Digital Billboard and are not and shall not be construed to be an
unreasonable restraint on alienation.
3.2. The Covenants and provisions of this Agreement do not limit the right of any
mortgagee, or beneficiary under a deed of trust who has provided funds for acquisition of, or
construction of buildings upon the Property to foreclose or otherwise enforce any mortgage or
deed of trust upon the Property or any portion thereof, or the right of any mortgagee or
beneficiary under a deed of trust, to exercise any of its remedies for the enforcement of any
pledge or lien upon the Property; provided, however, that, in the event of any foreclosure under
any such mortgage or deed of trust or a sale pursuant to any power of sale included in any such
mortgage or deed of trust, the purchaser or purchasers and their successors and assigns and the
Property shall be and shall continue to be subject to all of the Covenants and provisions
contained in this Agreement. Upon request of the Digital Billboard Owner, City shall execute
and deliver to Digital Billboard Owner an Estoppel Certificate in favor of an existing or
prospective lender or a proposed assignee of Digital Billboard Owner, which sets forth the
material terms of this Agreement, a representation that this Agreement is in full force and effect,
and that there are no defaults hereunder.
ARTICLE IV - INDEMNITY
4.1. General Indemnity. Except as to the sole negligence, active negligence or
willful misconduct of the City, Digital Billboard Owner expressly agrees to, and shall,
indemnify, defend, release, and hold the City and its officials, officers, employees, agents, and
contractors ham3less from and against any Action, liability, loss, damage, entry, judgment, order,
lien, and Costs and Expenses which arises out of, or are in any way related to, any act or
omission of Digital Billboard Owner, or its officers, directors, employees, agents, or contractors,
connected with the performance under this Agreement, the construction, use, or operation of the
Project or Digital Billboard, notwithstanding that the City may have benefited therefrom, or any
challenge to this Agreement. This Section shall apply to any acts or omissions, will&11
misconduct or negligent conduct, whether active or passive, on the part of Digital Billboard
Owner's officers, directors, employees, agents and contractors. The Parties expressly agree that
any payment, or Costs and Expenses the City incurs or makes to, or on behalf of, an injured
employee under the City's self administered workers' compensation, is included as a loss or
Costs and Expenses for the purpose of this Section. The City shall not be responsible for any
acts, errors or omissions of any person or entity except the City and its officers, agents, servants,
employees or contractors. The Parties expressly agree that the obligations of Digital Billboard
Owner under this Section shall survive the expiration or early termination of the Agreement.
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ARTICLE V - DEFAULT AND REMEDIES
5.1. Default. In the event of a Default, the injured party shall give written "Notice of
Default" to the defaulting party, specifying the Default. Delay in giving such notice shall not
constitute a waiver of the Default. If the defaulting party fails to cure the Default within thirty
(30) days after receipt of a notice specifying the Default, or, if the Default is of a nature that
cannot be cured within thirty (30) days, the defaulting party fails to commence to cure the
Default within said thirty (30) days and thereafter diligently prosecute such cure to completion,
then the defaulting party shall be liable to the injured party for any and all damages caused by
such Default, unless otherwise provided for by this Agreement.
5.2. No Waiver, Failure to insist on any one occasion upon strict compliance with
any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term,
covenant or condition, nor shall any waiver or relinquishment of any rights or powers hereunder
at any one time or more times be deemed a waiver or relinquishment of such other right or power
at any other time or times.
5.3. Specific Performance. The use, maintenance, and removal of the Billboard in
accordance with this Agreement is of a special and unique kind and character and the rights
granted to the City, and its successors and assigns hereunder, are of a similar special and unique
kind and character so that if there is an uncured default by Digital Billboard Owner of this
Agreement, the City, and its successors and assigns, would not have an adequate remedy at law.
Therefore, the City's rights, and those of its successors and assigns hereunder, may be enforced
by an action for specific performance and such other equitable relief as is provided by the laws
of the State of California, In any action seeking enforcement or interpretation of any of the terms
or provisions of this Agreement, the prevailing party shall be awarded, in addition to damages,
injunctive relief, or other relief, and its Litigation Expenses, as provided in Section 5.4.3
[Attorneys' Fees] of this Agreement.
5.4. Leal Actions. In addition to any other rights and remedies, any party may
institute a legal Action to require the cure of any Default and to recover damages for any Default,
or to obtain any other remedy consistent with the purpose of this Agreement. The following
provisions shall apply to any such legal Action:
5.4.1. Jurisdiction an4 Venue. Legal Actions must be instituted and maintained
in the Superior Court of the County of Los Angeles, State of California, Northeast District, or, if
appropriate, in the United States District Court for the Central District of California, Westem
Division. Digital Billboard Owner specifically waives any rights provided to it pursuant to
California Code of Civil Procedure §394 and any federal statute or rule of similar effect.
5.4.2. Applicable Law. The laws of the State of California shall govern the
interpretation and enforcement of this Agreement.
5.4.3. AgREa21's Fees. In the event either party commences an Action against
the other party which arises out of a Default of, breach of, failure to perform, or that is otherwise
related to, this Agreement, then the Prevailing Party (as defined herein) in the Action shall be
entitled to recover its Litigation Expenses (as defined herein) from the other party in addition to
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