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18-1811 - Approving Development Agreement No. 7-18 between City of Carson and Clear Channel Outdoor, Inc.
ORDINANCENO.18-1811ANUNCODIFIEDORDINANCEOFTHECITYCOUNCILOFTHECITYOFCARSON,CALIFORNIA,APPROVINGDEVELOPMENTAGREEMENTNO.7-18BETWEENTHECITYOFCARSONANDCLEARCHANNELOUTDOOR,INC.TOREMOVEASTATICBILLBOARDANDINSTALLANDOPERATEONE65-FOOT-KICKOUTDOORADVERTISINGSIGN(“DIGITALBILLBOARD”)ALONGTHEPORTIONOFTHE1-110FREEWAYCORRIDORISZONEDMHLOCATEDALONGTHEEASTSIDEOFTHE1-110FREEWAYATFIGUEROASTREETATAPN7406-026-915.THECITYCOUNCILOFTHECITYOFCARSON,CALIFORNIA,HEREBYFINDS,RESOLVESANDORDERSASFOLLOWS:Section1.Anapplicationforadevelopmentagreement(Agreement),pursuanttoGovernmentCodeSections65864through65869.5ofthecityofCarson,wasdulyfiledbytheapplicant,ClearChannelOutdoor,Inc.(“ClearChannel”).,withrespecttotherealpropertylocatedat24499FigueroaStreet(APN7406-026-915),asshowninExhibit“A”attachedhereto.Theapplicantproposesa65-foot-highoutdooradvertisingsign(‘digitalbillboard”)toreplaceanexistingstaticbillboardatthesubjectproperty.Section2.TheCityCouncilheldpublichearingsontheAgreementonJuly3,2018at6:00P.M.atCityHallintheHelenKawagoeCouncilChambers,701EastCarsonStreet,Carson,California.Anoticeofthetime,placeandpurposeoftheaforesaidmeetingsweredulygiven.Section3.TheproposedprojectwasreviewedundertherequirementsoftheCaliforniaEnvironmentalQualityAct(CEQA).TheproposedDevelopmentAgreementiscategoricallyexemptfromtheprovisionsoftheCaliforniaEnvironmentalQualityAct(CEQA)pursuanttoSection15303regardingnewconstructionorconversionofsmallstructures.Section4.Evidence,bothwrittenandoral,wasdulypresentedtoandconsideredbytheCityCouncilattheaforesaidmeeting.Section5.TheCityCouncilfindsthat:a)TheDevelopmentAgreementprovidesforaSitewhichislocatedwithinanareasuitablefortheproposeduse,andisinconformancetheGeneralPlanandtheManufacturing,Heavy(MH)zoningdistrict.b)TheDevelopmentAgreementprovidesforapublicconveniencethroughsignificantmonetarybenefitswhichwillcontributeindirectlytoprogramsandUservicesdesignedtoprovideforthehealth,safetyandwelfareofthepublic,therebyexhibitinggoodlandusepractices.c)TheproposedDevelopmentAgreementwillnotbedetrimentaltothepublic’shealth,safetyandgeneralwelfare,norwillitadverselyaffecttheorderlydevelopmentorpropertyvaiuesforthesubjectpropertyorareassurroundingit.ORDINANCENO.18-1811Page1of4 d)TheDevelopmentAgreementisincompliancewiththeproceduresestablishedbyCityCouncilResolutionNo.90-050asrequiredbyGovernmentCode,Section65865(c).e)TheDevelopmentAgreementinSection5providesforanannualreviewtoensuregoodfaithcompliancewiththetermsoftheAgreement,asrequiredinSection65865.1oftheGovernmentCode.f)TheDevelopmentAgreementspecifiesthedurationoftheagreementinSection2.4,theProcessingFeeinSection2.5;theDevelopmentFeeinSection2.6andtheCommunityBenefitsinSection2.8.g)TheDevelopmentAgreementincludesconditions,terms,restrictionsandrequirementsfordevelopmentofthepropertyinSection3andaspermittedinSection65855.2oftheGovernmentCode.h)TheDevelopmentAgreementcontainsprovisionsinSection4forremovalofthebillboardupontheterminationtheAgreement.I)TheDevelopmentAgreementprovidesfaramendmentorcancellationinwholeorinpart,bymutualconsentofthepartiestotheagreementortheirsuccessorsininterestasrequiredinSection65868oftheGovernmentCode.j)ThattheDevelopmentAgreementisinthebestpublicinterestoftheCityanditsresidentsandthatthisAgreementwillachieveanumberofCityobjectivesincludingutilizingtheBillboardSiteforarevenue-generatinguseandremovingCityOrientedbillboard(s).Section6.TheAgreementprovidesforrecoveryofthecity’scostsandcomplieswiththeStatuewithrespecttoallfeesandcostsprovidedundertheAgreement.Section7.TheDevelopmentAgreementisincompliancewiththeproceduresestablishedbyCityCouncilResolutionNo.90-050andtheCityCouncilfindsthattheAgreement:a)IsconsistentwiththeGeneralPlanandanyapplicablespecificplan;b)Isinconformitywithpublicconvenienceandgoodlandusepractices;c)Willnotbedetrimentaltothehealth,safetyandgeneralwelfare;d)Willnotadverselyaffecttheorderlydevelopmentofpropertyorthepreservationofpropertyvalues;e)IsconsistentwiththeprovisionsofGovernmentCodeSections65864through65869.5.Section8.TheDevelopmentAgreementisattachedasExhibit“B”.ORDINANCENO.18-1811Page2of4 Section9.AgreementisonfileintheofficeoftheCommunityDevelopmentDepartmentandisherebyincorporatedhereinbyreference.Section10.Basedontheaforementionedfindings,theCityCouncilapprovestheAgreementandauthorizesitsexecutionandallactionnecessarytocomplywithitsterms.Section11.TheOrdinanceNo.18-1811isapprovedforintroductionandfirstreadingonJuly3,2018andadoptionatthesecondhearingonJuly17,2018.Section13.TheOrdinanceshallbecomeeffectivethirty(30)daysafterthesecondreadingapprovaldate,orifareferendumpetitionisfiled(a)andfailstoqualifyforanerection,thedatetheCityClerkcertifiesthedisqualificationofthereferendumpetition,or(b)ifanelectionisheldregardingtheordinanceapprovingthisAgreement,thedatetheelectionresultsaredeclaredapprovingtheOrdinance.PASSED,APPROVEDandADOPTEDthis17thdayofJuly,2018.APPROVEDASTOFORM:CITYOFCARSON:ØertRobles,MayorATTEST:ElDonesiaGaise-Aldana,MMC,CityClerkORDINANCENO.18-1811Page3of4r1Section12.TheCityClerkshallcertifytotransmitcopiesofthesametotheapplicant.TheCitypursuanttoCaliforniaGovernmentCode36933withintheadoptionofthisOrdinanceandshallClerkshallpublishtheadoptedOrdinancefifteendaysofitsadoption. STATEOFCALIFORNIACOUNTYOFLOSANGELES)ss.CITYOFCARSONI,DonesiaGause-Aldana,CityClerkoftheCityofCarson,California,herebyattesttoandcertifythattheforegoingordinance,beingOrdinance18-1811passedfirstreadingonthe3dayofJuly,2018,adoptedjbytheCarsonCityCouncilatitsmeetingheldonthel7’dayofJuly,2018,bythefollowingrollcallvote:AYES:COUNCILMEMBERS:Robles,Hilton,Santarina,Davis-Holmes,HicksNOES:COUNCILMEMBERS:NoneABSTAIN:COUNCILMEMBERS:NoneABSENT:COUNCILMEMBERS:NoneDonesiaCause-Aldana,MMC,CityClerkUORDINANCENO.18-1811Page4of4 CityofCarsonExhibitAORDINANCENO.18-1811r•fl4I’-t—4EPUhVEr--APN:7406026915‘usPage1of1 RecordingRequestedbyAndWhenRecordedReturnto:CITYOFCARSON701EastCarsonStreet9Carson,CA90745Attn:CityClerk[ExemptFromRecordingFeePerGov.Code§6103]DEVELOPMENTAGREEMENTNO.7-18ThisDevelopmentAgreement(hereinafter“Agreement”)isenteredintothisdayof—,2018,(hereinafterthe“EffectiveDate”)byandbetweentheCITYOFCARSON(hereinafter“City”)andCLEARCHANNELOUTDOOR,INC.,aDelawarecorporation(hereinafter“Developer”).RECITALSA.TheDevelopmentAgreementLawauthorizescitiestoenterintobindingdevelopmentagreementswithpersonshavingalegalorequitableinterestinrealpropertyforthedevelopmentofsuchproperty,allforthepurposesofstrengtheningthepublicplanningprocess,encouragingprivateparticipationandcomprehensiveplanningandidentifyingtheeconomiccostsofsuchdevelopment.B.TheCaliforniaOutdoorAdvertisingAct(Bus.andProf.CodeSections5200etseq.),andspecificallySections5412and5443.5,empowerscitiesandsignownerstoenterintorelocationagreementsonwhatevertermsareagreeabletosuchparties.C.Developerholdsalicensewithrespecttothe110FreewayBillboard,locatedonthe110FreewayBillboardSite,uponwhichDeveloperseekstorelocateandreconstructthe110FreewayBillboardastheNewDigitalBillboard.Duetostructuralrequirements,the110FreewayBillboardwillberemovedandtheNewDigitalBillboardwillbebuiltatapproximatelythesamelocation.ThedigitaldisplayfacingsandtheoverallsignheightfortheNewDigitalBillboardwillbeapproximatelythesameastheexisting110FreewayBillboard,butnomorethan65feethighfromfootergrade,totheextentnecessarytoobtainthesamevisibilityfromthefreewayastheexisting110FreewayBillboard.D.DeveloperhasaleaseholdinterestintheWalkerSite,uponwhichDeveloperownstheWalkerSiteBillboard.F.DeveloperhasaleaseholdinterestintheChavezSite,uponwhichDeveloperownstheChavezSiteBillboard.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page1of48 F.Developer,,withtheapprovaloftheCity,wishestoremovetheprinted110FreewayBillboardandreplaceitwiththeNewDigitalBillboard,andrelocateitatapproximatelythesamelocation.G.Inexchangefortheapprovalssoughttoconvertthe110FreewayBillboardtotheNewDigitalBillboard,Developerhasofferedto:1.RemovetheCity-OrientedBillboardsandwaiveanyclaimforcompensationfortheremovalofsuchsignssubjecttotheCityenteringintoarelocationagreementfortheNewDigitalBillboard,thetermsofwhicharemorefullysetforthaspartofthisAgreement;2.Relocatethe110FreewayBillboard,andreconstructitastheNewDigitalBillboard,toalocationthatisapproximatelythesameasitscurrentlocation.3.PaytotheCityanannualdevelopmentfeeassetforthinSection2.6fortherighttotherelocationandinstallationandoperationoftheNewDigitalBillboard;and4.ProvidefreeofchargetoCity,onaspaceavailablebasis,advertisingspaceforpublicserviceannouncementsforcity-sponsored,noncommercialciviceventsontheNewDigitaLBillboard,(subjecttoDeveloper’sadvertisingstandardsandprocedures),andoffera10%discountoffofitsapplicableratecardfeesforthedisplaysontheNewDigitalBillboardtoanybusinessthathasitsprincipalplaceofbusinessinCarsonandisamemberingoodstandingoftheCarsonChamberofCommerce.H.The110FreewaySite,WalkerSite,andChavezSitearelocatedwithintheCity’sHeavyManufacturingZone,designatedbytheGeneralPlanasHeavyIndustrialandarealsolocatedwithinthe1-110FreewayCorridorasdefinedperCarsonMunicipalCode§9146.7Signs.I.DeveloperandCityagreethatadevelopmentagreementshouldbeapprovedandadoptedtomemorializethepropertyexpectationsofCityandDeveloperasmoreparticularlydescribedherein.J.OnJune12,2018,thePlanningCommissionoftheCity,atadulynoticedpublichearingtoconsidertheapprovalofthisAgreement,adoptedResolutionNo.18-1637recommendingapprovalofthisAgreementtotheCityCouncilandfindingtheProject,asdefinedbelow,categoricallyexemptfromtheprovisionsoftheCaliforniaEnvironmentalQualityAct(“CEQA”)pursuanttoSection15303regardingnewconstructionorconversionofsmallUstructures.K.On—,2018,theCityCounciloftheCity,atadulynoticedpublichearingtoconsidertheapprovalofthisAgreement,consideredtheproposalandheardtestimonyrelatingtothisAgreement.L.TheCityCouncilhasfoundthatthisAgreementisinthebestpublicinterestoftheCityanditsresidents,adoptingthisAgreementconstitutesapresentexerciseoftheCity’s01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page2of48 policepower,andthisAgreementisconsistentwiththeCity’sGeneralPlan.ThisAgreementandtheproposedProject(ashereinafterdefined)willachieveanumberofCityobjectivesincludingtheremovaloftheless-desirableCity-OrientedBillboardsandadditionofanaestheticallypleasingbillboardinconformancewithcurrentbillboardstandards.Attheendof[hetermofthisAgreement,DeveloperwillremovetheNewDigitalBillboardifanextensionofthisAgreementC)isnotnegotiatedwithCity.M.On—,2018,theCityCouncilconductedthesecondreadingofOrdinancejNo.18-1811,therebyapprovingthisAgreement.N.CityfindsanddeterminesthatallactionsrequiredofCityprecedenttoapprovalofthisAgreementbyOrdinanceNo.18-1811oftheCityCouncilhavebeendulyandregularlytaken.COVENANTSNOW,THEREFORE,inconsiderationoftheaboverecitalsandofthemutualcovenantshereinaftercontainedandforothergoodandvaluableconsideration,thereceiptandsufficiencyofwhichisherebyacknowledged,thepartiesagreeasfollows:1.DEFINITIONSANDEXHIBITS.1.1Definitions.ThisAgreementusesanumberoftermshavingspecificmeanings,asdefinedbelow.Thesespeciallydefinedtermsaredistinguishedbyhavingtheinitiallettercapitalized,whenusedintheAgreement.InadditiontothetermsdefinedintheRecitalsabove,thedefinedtermsincludethefollowing:1.1.1“110FreewayBillboard”meanstheexistinglawfullypermitteddouble-sidedl4x48footprinteddisplayorientedtowardthe110Freeway,whichisownedbyDeveloperandlocatedatthe110FreewaySite.1.1.2“110FreewaySite”meansthatcertainportionofrealpropertyintheCityofCarson,locatedadjacenttothenorth-boundlanesofthe110Freeway,southofSepulvedaBoulevard,ownedbytheLosAngelesCountyMetropolitanTransportationAuthority,AssessorParcelNumber7406-026-915,asmorespecificallydescribedinExhibit“A”anddepictedatExhibit“A-I,”attachedheretoandincorporatedherein.1.1.3“Agreement”meansthisDevelopmentAgreementandallattachmentsandexhibitshereto.1.1.4“ChavezSite”meansthatcertainportionofrealpropertylocatedat21550-21576SouthMainStreet,CityofCarson,ownedbyVictoriaC.&ArmandoP.Chavez,Assessor’sParcelNumber7334-024-002,asmorespecificallydescribedinExhibit“B-3”anddepictedatExhibit“B-4,”attachedheretoandincorporatedherein.1.1.5“ChavezSiteBillboard”meansthe36feethigh,double-sided,12x24footprinteddisplaythatisnotvisiblefromanyfreeway,whichislocatedattheChavezSiteandownedbyDeveloper.01007.0005/422043.24ExhibitsDevelopmentAgreementORDINANCENO.18-1811Page3of48 1.1.6“City”meanstheCityofCarson,aCaliforniamunicipalcorporation.1.1.7“CityCouncil”meanstheCityCounciloftheCity.1.1.8“City-OrientedBillboards”meanscollectivelytheWalkerSiteBillboardandtheChavezSiteBillboard.1.1.9“City-OrientedBillboardSites”meanscollectivelytheWalkerSiteandtheChavezSite.1.1.10“CommencementDate”shallmeanthedatethattheNewDigitalBillboardbecomesoperational,i.e.,thedateconstructionoftheNewDigitalBillboardhasbeencompleted,finalinspectionbytheCityhasoccurred,andthesigniscapableofdisplayingadvertisingcopyelectronicallyandisconnectedtoapermanentpowersource,followingreceiptbyDeveloperofallDevelopmentApprovals.DeveloperwillprovidetoCityaNoticeofCommencementDatewithinfive(5)businessdaysfollowingthecompletionofalloftheforegoing.1.1.11“Default”or“Breach”shallhavethemeaningsdescribedinSection6.1.1ofthisAgreement.1.1.12“Developer”meansClearChannelOutdoor,Inc.,aDelawarecorporationdulyexistingandoperating,anditssuccessorsandassigns,doingbusinessat19320HaborgateWay,Torrance,California90501.1.1.13“Development”meanstheinstallationoftheNewDigitalBillboardonthe110FreewaySiteandtheinitialinstallationofabove-groundutilitiesandsubjecttoLACMTA’sapproval,thereafterpermanentundergroundingofallutilitiesfromSouthernCaliforniaEdison’selectricalsourcetotheNewDigitalBillboard.1.1.14“DevelopmentAgreementLaw”meansCaliforniaGovernmentCodeSections65864,etseq.1.1.15“DevelopmentApprovals”meanstheapprovedDevelopment,basedontherecommendedapprovalbythePlanningCommissiononJune12,2018,pursuanttoResolutionNo.18-1637andapprovaloftheCityCouncilbyOrdinanceNo.18-1811on—‘2018,asfurtherdescribedatSection3.4herein,andanyandallapprovalsrequiredbytheCaliforniaDepartmentofTransportation(“CalTrans”),LACMTAandanyothergovernmentalorotherrequiredapprovalsfromthirdparties.C)1.1.16“DueDate”meansthedatethirty(30)daysaftertheCommencementDate.1.1.17“EffectiveDate”meansthedateinsertedintothepreambleofthisAgreement,whichis90daysfollowingtheeffectivedateoftheordinanceapprovingthisAgreementbyordinanceoftheCityCouncil,providedtheAgreementissignedbytheDeveloperandCity.01007.0005/422043.24ExhibitSDevelopmentAgreementORDINANCENO.18-1811Page4of48 1.1.18“LACMTA”meanstheLosAngelesCountyMetropolitanTransportationAuthority.1.1.19“LandUseRegulations”meansallordinances,resolutions,codes,rules,regulationsandofficialpoliciesofCity,including,butnotlimitedto,theCity’sGeneralPlan,MunicipalCodeandZoningCode,whichgoverndevelopmentanduseoftheNewDigitalBillboardSite,including,withoutlimitation,thepermitteduseofland,thedensityJorintensityofuse,subdivisionrequirements,themaximumheightandsizeoftheNewDigitalBillboard,theprovisionsforreservationordedicationoflandforpublicpurposes,andthedesign,improvementandconstructionstandardsandspecificationsapplicabletotheDevelopmentoftheNewBillboardSitewhichareinfullforceandeffectasoftheEffectiveDateofthisAgreement,subjecttothetermsofthisAgreement.LandUseRegulationsshallalsoincludeNPDESregulationsandapprovalsfromtheCaliforniaDepartmentofTransportationOutdoorAdvertisingDivision,totheextentapplicable.1.1.20“Mortgagee”meansamortgageeofamortgage,abeneficiaryunderadeedoftrustoranyothersecuritydevice,alender,oreachoftheirrespectivesuccessorsandassigns.1.1.21“NewDigitalBillboard”meansthedouble-sided14x48footdigitaldisplaywhichDeveloperwishestoconstructonthe110FreewaySiteinapproximatelythesamelocationasthe110FreewayBillboard,asdepictedinExhibit“A-2”attachedheretoandincorporatedherein.1.1.22“Project”meanstheremovaloftheCity-OrientedBillboards,relocationandinstallation,includinginstallinganynewandmovingallexistingutilitiesunderground,operationandmaintenanceoftheNewDigitalBillboardonthe110FreewaySite,allinaccordancewiththeDevelopmentApprovalsandthisAgreement,includingtheScopeofDevelopmentattachedheretoasExhibit“D”,ScheduleofPerformanceattachedheretoasExhibit“C”andallconditionsofapprovalandconsistentwiththeapprovalfromtheCaliforniaDepartmentofTransportationOutdoorAdvertisingDivision.1.1.23“Relocation”meanstheremovalbyDeveloperandLACMTA,atDeveloper’ssolecostandexpenseoftheprinted110FreewayBillboardandinstallation,includinginstallinganynewutilitiesand,uponthecompletionofanyremainingdevelopmentonsuchsite,movingallexistingutilitiesunderground,operationandmaintenanceoftheNewDigitalBillboard,toalocationthatisapproximatelythesameasthelocationofthe110FreewayBillboard,withtheapprovaloftheCity.1.1.24“Sites”referscollectivelytothe110FreewaySite,WalkerSite,andChavezSite,assuchsitesaremorespecificallydescribedonExhibits“A,”“B-I,”and“B-3”anddepictedatExhibit“A-l,”“B-2,”and“B-4”attachedheretoandincorporatedherein.1.1.25“ScheduleofPerformance”meanstheScheduleofPerformanceattachedheretoasExhibit“C”andincorporatedherein.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page5of48 1.1.26“ScopeofDevelopment”meanstheScopeofDevelopmentattachedheretoasExhibit“D”andincorporatedherein.1.1.27“SubsequentDevelopmentApprovals”meansanyapprovalsrequestedbyDeveloperaftertheProjectisfullycompletedbutduringthetermoftheAgreementandUrelatedtotheNewDigitalBillboard.1.1.28“SubsequentLandUseRegulations”meansanyLandUseRegulationseffectiveaftertheEffectiveDateofthisAgreement(whetheradoptedpriortooraftertheEffectiveDateofthisAgreement)whichgoverndevelopmentanduseoftheSites.1.1.29“Term”shallhavethemeaningprovidedinSection2.4,unlessearlierterminatedasprovidedinthisAgreement.1.1.30“ThirdPartyClaimsorLitigation”meansanychallengebyanypersonorentitynotaPartytothisAgreement(I)tothelegality,validity,oradequacyofthisAgreement,applicationsprocessedinconnectionwiththeProject,or(ii)seekingdamageswhichmayarisedirectlyorindirectlyfromthenegotiation,formation,execution,enforcementorterminationofthisAgreementand/ortheconstruction,maintenance,andoperationoftheProject.ThirdPartyClaimsandLitigationdonotincludeinitiativesandreferenda.1.1.31“WalkerSite”meansthatcertainportionofrealpropertylocatedat20846SouthMainStreet,CityofCarson,ownedbyEdwardE.Walker,Assessor’sParcelNumber7336-016-026,asmorespecificallydescribedinExhibit“8-1”anddepictedatExhibit“B-2,”attachedheretoandincorporatedherein.1.1.32“WalkerSiteBillboard”meansthe42foothigh,double-sided.12x24footprinteddisplaythatisnotvisiblefromanyfreewaywhichislocatedattheWalkerSiteandownedbyDeveloper.1.2Exhibits.Thefollowingdocumentsareattachedto,andhythisreferencemadeapartof,thisAgreement:Exhibit“A”(LegalDescriptionof110FreewaySite)Exhibit“A-I”(Depictionof110FreewaySite)Exbibit“A-2”(NewDigitalBillboardConceptualRendering)Exhibit“B”(CityOrientedBillboardSites)Exhibit“B-i”(LegalDescriptionofWalkerSite)Exhibit“B-2”(DepictionofWalkerSite)Exhibit“B-3”(LegalDescriptionofChaveiSite)02007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENo.18-1811Page6of48 Exhibit“B-4”(DepictionofChavezSite)Exhibit“C”(ScheduleofPerformance)Exhibit“D”(ScopeofDevelopment)2.GENERALPROVISIONS.2.1BindingEffectofAgreement.FromandfollowingtheEffectiveDate,actionsbytheCityandDeveloperwithrespecttotheRelocation,includingactionsbytheCityonapplicationsforSubsequentDevelopmentApprovalsaffectingsuchSite,shallbesubjecttothetermsandprovisionsofthisAgreement.2.2InterestinSitesandDevelopmentApprovals—ConditionsPrecedent.CityandDeveloperacknowledgeandagreethatDeveloperhasalegalorequitableinterestintheSitesandthusisqualifiedtoenterintoandbeapartytothisAgreementundertheDevelopmentAgreementLaw.Developershallmaintainitsinterestinthe110FreewaySitefortheentireTermofthisAgreement.IfDeveloper’sinterestinthe110FreewaySiteisprematurelyterminatedandDeveloperisnotcontestingsuchtermination,thenDevelopershallhavenofurtherobligationsorrightsunderthisAgreementandthisAgreementshallterminate,exceptasprovidedunderSection4.1andSection6.1.3.DuringsuchtimeperiodthatDeveloperiscontestingtheterminationofitsinterestforthe110FreewaySite,thisAgreementshallremaininfullforceandeffect.IntheeventthatDeveloperdoesnotsecuretheDevelopmentApprovalstoerecttheNewDigitalBillboardwithinthreeyearsofapprovalofthisAgreementbytheCityCouncil,theAgreementshallexpire.Citymay,initssolediscretion,grantextensionsinone-yearincrementsuponashowingofgoodcausebyDeveloper.Extensionswillnotbeunreasonablywithheld.2.3NoAssignment.DevelopermayonlyassignorotherwisetransferthisAgreement,oritsinterestinthe110FreewaySite,toanyotherperson,firm,orentity,uponpresentationtotheCityofanassignmentandassumptionagreementinaformreasonablyacceptabletotheCityAttorneyandreceiptoftheCity’swrittenapprovaLofsuchassignmentortransferbytheCityManager;provided,however,thatDevelopermay,fromtimetotimeandoneormoretimes,assignthisAgreement,orthe110FreewaySite,tooneormorepersonsorentitieswithoutCityapproval,butwithwrittennoticetotheCity,aslongasDevelopereitherassignsthisAgreementtoafinancialinstitutionthatfinancesDeveloper’sDevelopmentoftheNewDigitalBillboardoraslongasDeveloper,orentitiesownedorcontrolledbyithaveandmaintainatleastatwenty-fivepercent(25%)ownershipinterestinsuchentitieswhoaretheassigneesortransferees,oraslongasthetransferisasaresultofasaleofDeveloperand/orallorsubstantiallyallofitsassetslocatedintheStateofCalifornia,includingtherightsgrantedunderUthisAgreement,toanotherpublicly-tradedcompanyoranentityhavinganetworththatissubstantiallysimilarto,orgreaterthan,Developer’snetworthpriortosuchassignmentoratthetimeofexecutionofthisAgreement,whichnetworthissubjecttoverificationbytheCity;andfurtherprovidedthatanyassigneeexecutesanassumptionagreementassumingallofDeveloper’sdutiesandobligationshereunder.AnysecuritypostedbyDevelopermaybesubstitutedbytheassigneeortransferee.AfteratransferorassignmentaspermittedbythisSection,theCityshalllooksolelytosuchassigneeortransfereeforcompliancewiththeprovisionsofthisAgreementwhichhavebeenassignedortransferred.01007.0005/422043.24ExhibitBDevelopmentAereementORDINANCENO.18-1811Page?of48 2.4TermofAgreement.UnlessearlierterminatedasprovidedinthisAgreement,thisAgreementshallcontinueinfullforceandeffectuntiltheearlierof(i)30yearsaftertheCommencementDale,asdefinedinSection1.1.10,(ii)theexpirationorearlierterminationofDeveloper’sinterestinthe110FreewaySiteperSection4.1,(iii)terminationoftheAgreementintheeventofamateriaLdefaultbyDeveloperperSection6.1.1.orintheeventofamaterialfldefaultbyCityperSection6.1.2,(iv)conversionoftheNewDigitalBillboardbacktostaticdisplaysor(v)thepermanentremovaloftheNewDigitalBillboardpursuanttothetermshereof.Insuchcase,Developershallcompletelyremovetheabove-groundportionsoftheNewDigitalJBillboardwithinIhetimesandasprovidedunderSection4.1.Notwithstandingtheforegoingtothecontrary.CityandDevelopermayagreetoextendIhetermofthisAgreementpursuanttoamutualagreementinwritinguponlermsacceptabletobothparties.Within30daysafterIheexpirationorterminationofthisAgreement,thepartiesshallexecuteawrittencancellationofthisAgreementwhichshallberecordedwiththeCountyRecorderpursuanttoSection9.1.FollowingtheexpirationofthetermandprovidednoextensionofthisAgreementisagreedto,thenDeveloperwilleitherconverttheNewDigitalBillboardtostaticdisplaysorremovetheNewDigitalBillboardoutright,assetforthunderSection4.1.2.5ProcessingFee.TheCityandDeveloperacknowledgeandagreethatDeveloperhaspaidtoCityaprocessing(“ProcessingFee”)intheamountofTwentyThousandDollars($20,000).TheCityshallretainandusetheProcessingFee,oranypartthereof,foranypublicpurposewithintheCity’sdiscretion.TheProcessingFeeshallbeseparatefromallfeeswhicharestandardanduniformlyappliedtosimilarprojectsintheCity,including,butnotlimitedto,businesslicensefees(duebyDevelopertoCityannually),onetimeplancheckfeeandbuildingpermitfeeandanyotherfeesimposedbyLosAngelesCounty,asmaybeapplicable.Additionally,within30daysoftheCityprovidingDeveloperwithafinalinvoiceofreasonablelegalfeesincurredbyCityrelatedtothenegotiationandpreparationofthisAgreement,DevelopershallpayCityanyoutstandingbalanceofsuchfees.2.6DevelopmentFee.ThepotentialimpactsoftheDevelopmentontheCityandsurroundingcommunityaredifficulttoidentifyandcalculate.DeveloperandCityagreethatanannualdevelopmentfeepaidbyDevelopertoCitywouldadequatelymitigateallsuchpotentialimpacts.ThepartiesthereforeagreethatDevelopershallpayanannualDevelopmentFee,ascalculatedherein.2.6.1AniozuitofAnnualDevelopmentFee.TheDevelopmentFeewillbeanannualamounttoCityequalto$100,000forthefirstthroughfifthyearsoftheTermofthisAgreement,$105,000forthesixththroughtenthyearsoftheTerm,$110,000fortheelevenththroughfifteenthyearsoftheTermofthisAgreement,andthereafterincreasedby$10,000everyfifthyearoftheTermofthisAgreement,whichDevelopmentFee,foreaseofreferencepurposes,shallequalthefollowingamountsduringtheTerm:SYear1$100,000Year11SI10,000Year215130,000‘Year2$100,000Year12SI10,000Year22S130,000Year3$100,000Year13SI10,000Year235130,00001007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENo.18-1811Page8ot48 S2.6.2Paynwn!Schedule.TheDevelopmentFeeshallbepaidannually,withthefirstinstallmentpayablenolaterthantheDueDate.SubsequentannualpaymentsshallbeduenolaterthantheanniversaryoftheDueDate.2.6.3LatePayment.(a)Penalty.TheCitymaynotifytheDeveloperiftheDevelopmentFeeisnotreceivedwithin10businessdaysaftertheDueDate(“LateNotice”)andthereshallbenopenaltyifpaymentismadewithin10businessdaysfollowingtheLateNotice.ThedateoftheLateNoticeshallmeanthedatethatitisreceivedbytheDeveloperafterithasbeenplacedbytheCityintheU.S.Mail,certifiedmailwithreturnreceipt.FailuretosignthereturnreceiptshallnotaffectthedateLateNoticeisgiven.IfCitydoesnotissueaLateNotice,penaltieswillbegintoaccrueifpaymentisnotmadewithin30daysoftheDueDate.(b)Latepaymentpenaltiesshallbecalculatedasfollows:5%oftheDevelopmentFeedueandpayableforthecurrentyearshallbeaddedtotheDevelopmentFeeforthatyearforfailuretomakethefullpaymentwithin10businessdaysoftheLateNotice.Asanexample,theDevelopmentFeeforYear5is$100,000.A5%penaltywouldresultinatotalamountdueof$105,000(S100.000+S5,000).Thereafter,foreachadditional10daysthatthefullDevelopmentFeeisnotpaid,includingthepenalty,theDevelopershallincuranadditionalpenaltyof5%ofthatyear’sDevelopmentFee,foramaximumpenaltyof15%ofthatyear’sDevelopmentFee.(c)Termination.FailurebyDevelopertopaytheDevelopmentFeetotheCitywithin30daysfollowingtheDueDateofeachyearduringtheTermofthisAgreementisconsideredamaterialBreachofthisAgreement,andifnotpaidinfulltotheCity,includingalllatepenalties,within10businessdaysafterwrittennoticetoDeveloperofsuchmaterialBreach,CitymaybeginterminationproceedingsinaccordancewithSection6,TerminationofAgreement.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page9of48Year4$100,000Year14$110,000Year24$130,000Year5$100,000YearIS$110,000Year255130,000Year6$105,000Year16$120,000Year26S140,000Year7$105,000Year17$120,000Year27$140,000Year8S105,0001Year18$120,000Year28S140,000Year9$105,000Year19$120,000Year29$140,000Year10$105,000Year20$120,000Year30$140,000 2.6.4NothinghereinrelievestheCityfromitscontractualdutytoissueallmunicipalbuildingpermitsthatareassociatedwiththeDevelopmentoftheNewDigitalBillboardifDeveloperisincompliancewiththetermsofthisAgreement.2.7CityDiscretion.ThePartiesunderstand,andexpresslyagree,thatthisAgreementPdoesnotwaiveorlimittheCitysexerciseofitspolicepowersasdefinedbylaw(whichpolicepowersthePartiesacknowledgeandagreecannotbecontractuallywaived)toissuesuchpermit(s)thatareotherwisenecessaryfortheDevelopmentoftheNewDigitalBillboard.2.8CommunityBenefits.DevelopershallalsoprovidethefollowingcommunitybenefitsduringtheentireTermofthisAgreement,foraslongastheNewDigitalBillboardisoperatedwithdigitaldisplayfaces:2.8.1City’sDisplayTimeonNewDigitalBillboard.DevelopershallalsoprovideadvertisingspacefreeofchargetoCityonaspace-availablebasisforpublicserviceannouncementsofnoncommercialcity-sponsoredcivicevents(“CityMessages”).CitywillberesponsibleforappropriateartworkforthedigitaldisplayspursuanttoartspecificationsasspecifiedbyDeveloperfromtimetotime.TheCityshallnotifyDeveloper45dayspriortotherequesteddisplaydateandthedisplayofCityadvertisingcopyissubjecttothefollowingconditionsandparameters:alladvertisingcopymustbesubmittedtoDeveloperatleastfive(5)businessdaysbeforetheDeveloperproposeddisplaydateandwillhesubjecttoDeveloper’sstandardadvertisingpolicies,whichallowDeveloper,initssolediscretion,toapproveordisapprovecopyandremovecopyoncepostedordisplayed,providedsuchpoliciesareconsistentwiththedisplayofpublicservicemessagesaswellasthoserestrictionsdescribedinthisSection2.8.ItisexpresslyunderstoodandagreedthatCityMessagesmayonlydisplaythird-partynamesorlogosofCityeventsponsorswhenthoselogosarepartoftheCityMessage,andthatsuchlogosmaynotbeprominentlydisplayed.AdvertisingspaceforCityMessagesmaynotbesoldorexchangedforconsiderationofanykindtoanon-governmentalthirdparty.TheCityshallandherebydoesagreetoindemnify,defendandholdharmlessDeveloperfor,fromandagainst,anyclaims,costs(including,butnotlimitedto,courtcostsandreasonableattorneys’fees),losses,actionsorliabilitiesarisingfromorinconnectionwithanythirdpartyallegationthatanyportionofanyCityMessageprovidedbytheCityinfringesorviolatestherights,including,butnotlimitedto,copyright,trademark,tradesecretoranysimilarright,ofanythirdparty.ThisindemnityshallnotincludeDeveloper’slostprofitsorconsequentialdamagesoranysimilarright,ofanythirdparty.2.6.2DiscountAdvertising.Developershallofferatenpercent(10%)discountUoffofitsapplicableratecardfeesforthedisplayofadvertisingontheNewDigitalBillboardtoanybusinessthathasitsprincipalplaceofbusinessintheCityofCarsonandisamemberingoodstandingoftheCarsonChamberofCommerce.2.9ProhibitedUse.DevelopershaltnotutilizeanyofthedisplaysontheNewDigitalBillboardtoadvertisetobacco,marijuana,hashish,“gentlemen’sclubs,”orotherrelatedsexuallyexplicitoroverlysexually-suggestivemessages,orasmaybeprohibitedbyanyCityordinanceexistingasoftheEffectiveDateofthisAgreement.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page10of48 3.DEVELOPMENTANDIMPLEMENTATIONOFTHEPROJECT.3.1RightstoDevelop110FreewaySite.SubjecttoandduringtheTermofthisAgreement,Developershallhavetherighttodevelopthe110FreewaySiteinaccordancewith,andtotheextentof,theDevelopmentApprovals,theLandUseRegulations,andthisAgreement.3.2DemolitionandRemovalofCity-OrientedBillboards.DevelopershallsecurealldemolitionpermitsandapprovalsandcommencethedemolitionandcompleteremovaloftheJCity-OrientedBillboards,including,butnotlimitedto,thetwostructuresandtotaloffourprinteddisplaysandanyotherstructureorfacilityerectedormaintainedaspartoforinrelationtothesuchbillboardsandcompletesuchdemolitionandremoval,withinthetimessetforthintheScheduleofPerformance,attachedheretoasExhibit“C.”Followingtheremovalofsuchbillboards,Developershall,asreasonablyaspossible,restoretheCity-OrientedBillboardSitestoagoodconditionthatreasonablymatchesthesurroundinglandscape.DeveloperherebywaivesanyfurtherrightstoutilizetheCity-OrientedBillboardSitesforinstallationoroperationofanybillboardandwaivesanyclaimforcompensationordamagesfortheremovaloftheCity-OrientedBillboardsandrelatedappurtenancesthereon.Additionally,DeveloperagreestogiveupanyfurtherrightstoutilizetheCity-OrientedBillboardSitesfortheinstallationoroperationofanybillboarddisplaysthereoninthefuture.Suchwaiverandreleaseofanyclaimforcompensationordamagesincludes,butisnotlimitedto,lostrevenues,relocationexpenses,severancedamages,lossofbusinessgoodwill,costs,interest,attorney’sfees,andanyclaimwhatsoeveroftherespectivepropertyownerswhichmightariseoutoforrelatetoanyrespecttotherequirementsofthisSection3.2orthisAgreement.3.3EffectofAgreementonLandUseRegulations.ExceptasotherwiseprovidedunderthetermsofthisAgreement,therules,regulationsandofficialpoliciesgoverningpermittedusesofthe110FreewaySite,thedensityandintensityofuseofthesuch110FreewaySite,themaximumheightandsizeofproposedNewDigitalBillboardstructure,andthedesign,andimprovementandconstructionstandardsandspecificationsapplicabletoDevelopmentofthe110FreewaySiteshalJbeassetforthintheLandUseRegulations,assuchtermisdefinedinSection1.1.19,whichareinfullforceandeffectasoftheEffectiveDateofthisAgreement,subjecttothetermsofthisAgreement.3.4DevelopmentApprovals.Developershall,atitsownexpenseandbeforecommencementofdemolition,constrtiction,ordevelopmentofanystructuresorotherworkofimprovementupontheSites,secureorcausetobesecuredallnecessaryDevelopmentApprovals,whichshallincludeanyandallpermitsandapprovalswhichmayberequiredbyCityoranyothergovernmentalagencyorutilityaffectedbysuchconstruction,development,orworktobeperformedbyDeveloperpursuanttotheScopeofDevelopment,includingbutnotlimitedUto,necessarybuildingpermitsandallapprovalsrequiredundertheCaliforniaEnvironmentalQualityAct(“CEQA”)andbyCaltrans.Notbywayoflimitingtheforegoing,indevelopingandconstructingtheProject,Developershallcomplywithall(1)applicabledevelopmentstandardsinCity’sMunicipalCode,(2)applicableNPDESrequirementspertainingtotheProject,(3)allapplicablebuildingcodes,exceptasmaybepermittedthroughapprovedvariancesandmodifications.Developershallpayallnormalandcustomaryfeesandchargesapplicabletosuchpermits,andanyfeesandchargeshereafterimposedbyCityinconnectionwiththeDevelopmentwhicharestandardanduniformly-appliedtosimilarprojectsintheCity.01007.000S/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page11of48 3.5TimingofDevelopment;ScopeofDevelopment.DevelopershallcommencetheProjectwithinthetimesetforthintheScheduleofPerformance,attachedheretoasExhibit“C.”“Commencement”oftheProjectisdefinedhereinascommencementofconstructionorimprovementsunderthebuildingpermitfortheRelocationassoonaspossiblefollowingDeveloper’sreceiptofDevelopmentApprovals.IntheeventthatDeveloperfailstomeetthescheduleforCommencementoftheProject,andaftercompliancewithSection5.4.eitherpartyheretomayterminatethisAgreementbydeliveringwrittennoticetotheotherparty,and,intheeventofsuchtermination,neitherpartyshallhaveanyfurtherobligationhereunder.However,ifcircumstanceswithinthescopeofSection9.10delaythecommencementorcompletionoftheProject,itwouldnotconstitutegroundsforanyterminationrightsfoundwithinthisDevelopmentAgreement.Insuchcase,thetimelinetocommenceorcompletetherelevanttaskshallbeextendedinthemannersetforthatSection9.10.Notwithstandingtheabove,Developershall,atalltimes,complywithallotherobligationssetforthinthisAgreementregardingtheRelocation.DevelopershallalsomaintaintheNewDigitalBillboardatalltimesduringtheTerminaccordancewiththemaintenanceprovisionssetforthinParagraph3oftheScopeofDevelopment,attachedasExhibit“D”herein.ThepurposeofthisAgreementistosetforththerulesandregulationsapplicabletotheProject,whichshallbeaccomplishedinaccordancewiththisAgreement,includingtheScopeofDevelopment(Exhibit“D”),whichsetsforthadescriptionoftheProjectandtheScheduleofPerformance(Exhibit“C”).3.6ChangesandAmendments.DevelopermaydeterminethatchangestotheDevelopmentApprovalsareappropriateanddesirable.IntheeventDevelopermakessuchadetermination,DevelopermayapplyinwritingforanamendmenttotheDevelopmentApprovalstoeffectuatesuchchange(s).ThePartiesacknowledgethatCityshallbepermittedtouseitsreasonablediscretionindecidingwhethertoapproveordenyanysuchamendmentrequest;provided,however,thatinexercisingtheforegoingdiscretion,theCityshallnotapplyastandarddifferentthanthatusedinevaluatingrequestsofotherdevelopers.Accordingly,undernocircumstanceshallCitybeobligatedinanymannertoapproveanyamendmenttotheDevelopmentApprovals.TheCityManagershallbeauthorizedtoapproveanynon-substantiveamendmenttotheDevelopmentApprovalswithoutCityCouncilapproval.AllotheramendmentsshallrequiretheapprovaloftheCityCouncil.ThepartiesacknowledgethatanyextensionoftheTermfornomorethantwenty-four(24)monthstotalisanexampleofanon-substantivechange,whichtheCityManager,inhisorhersolediscretion,mayapproveinwriting.NothinghereinshallcauseDevelopertobeinDefaultifitupgradesorreplacesthedigitaldisplayinstalledpursuanttothisAgreementduringthetermofthisAgreementtoincorporatenewertechnology;providedDevelopershallsecureallapplicableministerialpermitstodosoandsuchupgradeisconsistentwiththedimensionsandstandardsforthedisplays,asIjprovidedunderthisAgreement,LandUseRegulations,andSubsequentLandUseRegulations3.7ReservationofAuthority.3.7.1Limitations,Reservatio,,sandExceptions.NotwithstandinganyotherprovisionofthisAgreement,thefollowingSubsequentLandUseRegulationsshallapplytotheDevelopment:010070005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page12of48 (a)ProcessingfeesandchargesofeverykindandnatureimposedbyCitytocovertheestimatedactualcoststoCityofprocessingapplicationsforSubsequentDevelopmentApprovalssubmittedbyDeveloper.(b)ProceduralregulationsconsistentwiththisAgreementrelatingtohearingC)bodies,petitions,applications,notices,findings,records,hearing,reports,recommendations,appeals,andanyothermatterofprocedure.Notwithstandingtheforegoing,ifsuchchangemateriallychangesDeveloper’scostsorotherwisemateriallyjimpactsitsperformancehereunder,DevelopermayterminatethisAgreementupon90dayspriorwrittennotice.(c)ChangesadoptedbytheInternationalConferenceofBuildingOfficials,orothersimilarbody,aspartofthethenmostcurrentversionsoftheUniformBuildingCode,UniformFireCode,UniformPlumbingCode,UniformMechanicalCode,orNationalElectricalCode,asadoptedbyCityasSubsequentLandUseRegulations,ifadoptedpriortotheissuanceofabuildingpermitfordevelopmentoftheNewDigitalBillboard.Notwithstandingtheforegoing,ifsuchchangemateriallychangesDeveloper’scostsorotherwisemateriallyimpactsitsperformancehereunder,DevelopermayterminatethisAgreementupon90dayspriorwrittennotice.(d)RegulationsthatarenotinconflictwiththeDevelopmentApprovalsorthisAgreement.(e)RegulationsthatareinconflictwiththeDevelopmentApprovalsorthisAgreement,providedDeveloperhasgivenwrittenconsenttotheapplicationofsuchregulationstoRelocation.(flApplicableFederal,State,County,andmulti-jurisdictionallawsandregulationswhichCityisrequiredtoenforceasagainstthe110FreewaySiteortheDevelopmentofthe110FreewaySiteandthatdonothaveanexceptionfor(1)existingsigns,or(2)legaLnonconforminguses,or(3)signsgovernedbyanagreemententeredintopursuanttoSections5412and5443.5oftheCaliforniaOutdoorAdvertisingActwhichwereinexistenceintheCitybeforetheapprovalofthisAgreement.Notwithstandingtheforegoing,ifsuchregulationsmateriallychangeDeveloper’scostsorotherwisemateriallyimpactitsperformancehereunder,DevelopermayterminatethisAgreementupon90dayspriorwrittennotice.3.7.2FutureDiscretionofCity.ThisAgreementshallnotpreventCityfromdenyingorconditionallyapprovinganyapplicationforaSubsequentDevelopmentApprovalonthebasisoftheLandUseRegulations.3.7.3ModificationorSuspensionbyFederal,State,County,orMultiJurisdictionalbin’.Intheeventthatapplicablefederal,State,County,ormulti-jurisdictionallawsorregulations,enactedaftertheEffectiveDateofthisAgreement,preventorprecludecompliancewithoneormoreoftheprovisionsofthisAgreement,andthereisnoexceptionforthelegalnonconforminguse,suchprovisionsofthisAgreementshallbemodifiedorsuspendedasmaybenecessarytocomplywithsuch01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page13of48 federal,State,County,ormulti-jurisdictionallawsorregulations,andthisAgreementshallremaininfullforceandeffecttotheextentitisnotinconsistentwithsuchlawsorregulationsandtotheextentsuchlawsorregulationsdonotrendersuchremainingprovisionimpracticaltoenforce.Notwithstandingtheforegoing,ifsuchchangemateriallychangesDeveloper’scostsorotherwisemateriallyimpactsitsperformancehereunder,DevelopermayterminatethisAgreementupon90dayspriorwrittennotice.3.8RegulationbyOtherPublicAgencies.ItisacknowledgedbythepartiesthatotherpublicagenciesnotsubjecttocontrolbyCitymaypossessauthoritytoregulateaspectsoftheDevelopmentascontemplatedherein,andthisAgreementdoesnotlimittheauthorityofsuchotherpublicagencies.Developeracknowledgesandrepresentsthat,inadditiontotheLandUseRegulations,Developershall,atalltimes,complywithallapplicablefederal,StateandlocallawsandregulationsapplicabletotheNewDigitalBillboard,110FreewaySitethatdonothaveanexceptionforalegalnonconforminguse.TotheextentsuchotherpublicagenciesprecludedevelopmentormaintenanceoftheProjectandthatdonothaveanexceptionforalegalnonconforminguse,DevelopershallnotbefurtherobligatedunderthisAgreementexceptasprovidedinSection4.1.Notwithstandingtheforegoing,ifsuchactionbyanotherpublicagencymateriallychangesDeveloper’scostsorotherwisemateriallyimpactsitsperformancehereunder,DevelopermayterminatethisAgreementupon90dayspriorwrittennotice.3.9PublicImprovements.Notwithstandinganyprovisionhereintothecontrary,theCityshallretaintherighttoconditionanySubsequentDevelopmentApprovalstorequireDevelopertopayanyrequireddevelopmentfees,and/ortoconstructtherequiredpublicinfrastructure(“Exactions”)atsuchtimeasCityshalldeterminesubjecttothefollowingconditions;providedthatnoneofthefollowingshallbeapplicabletotheProjectassetforthinthisAgreement.3.9.1ThepaymentorconstructionmustbetoalleviateanimpactcausedbytheProjectorbeofbenefittotheProjectasaresultofsuchSubsequentDevelopmentApprovals;and3.9.2ThetimingoftheExactionshouldbereasonablyrelatedtothedevelopmentoftheProjectasaresultofsuchSubsequentDevelopmentApprovalsandsaidpublicimprovementsshallbephasedtobecommensuratewiththelogicalprogressionoftheProjectasaresultofsuchsubsequentDevelopmentApprovalsaswellasthereasonableneedsofthepublicasaresultthereof.3.9.3Itbeingunderstood,however,thatifthethereisamaterialincreaseincosttoDeveloperorsuchactionbyCityotherwisemateriallyimpactsdeveloper’sUperformancehereunder,DevelopermayterminatethisAgreementupon90dayspriorwrittennotice.3.10Fees,TaxesandAssessments.DuringtheTermofthisAgreement,theCityshallnot,withoutthepriorwrittenconsentofDeveloper,imposeanyadditionalfees,taxesorassessmentsonalloranyportionoftheProject,exceptsuchfees,taxesandassessmentsasaredescribedinorrequiredbythisDevelopmentAgreementand/ortheDevelopmentApprovals.However,thisDevelopmentAgreementshallnotprohibittheapplicationoffees,taxesor01007.0005/422043.24ExhibitSDevelopmentAgreementORDINANCENO.18-1811Page14of48 assessmentsuponthe110FreewaySiteonlyandnottheNewDigitalBillboardorDeveloperdirectlyasfollows:3.10.1Developershallbeobligatedtopaythosefees,taxesorCityassessmentsandanyincreasesinsamewhichexistastheEffectiveDateorareincludedintheDevelopmentApprovals;3.10.2Developershallbeobligatedtopayanyfeesortaxes,andincreasesJthereof,imposedonaCity-widebasissuchas,butnotlimitedto,businesslicensefeesortaxesorutilitytaxes;3.10.3DevelopershallbeobligatedtopayallfeesapplicabletoapermitapplicationaschargedbyCityatthetimesuchapplicationisfiledbyDeveloper;3.10.4DevelopershallbeobligatedtopayanyfeesimposedpursuanttoanyUniformCodethatexistedwhentheapplicationisfiledbytheDeveloperorthatexistswhentheDeveloperappliesforanySubsequentDevelopmentApproval.3.11Notwithstandinganythingtothecontraryherein,ifthereisachangeissuchfeestothosechargesasofthefullexecutionhereoforanyadditionalfeesarechargedandsuchadditionalorincreasedfeesmateriallychangeDeveloper’scostsorotherwisemateriallyimpactsitsperformancehereunder,DevelopermayterminatethisAgreementupon90dayspriorwrittennotice.4.REMOVALOFBILLBOARDS4.1RemovalbyDeveloper.DeveloperhastherighttonegotiateanextensionoftheTermasanamendmenttothisAgreement.IftheextensionfortheTermisnotgrantedbytheCity,thedigitaldisplaysontheNewDigitalBillboarddigitaldisplayfacingswillberemovedandbothdisplaysmaybeconvertedbacktostaticdisplayswithin180daysoftheCity’snoticetoDeveloperofitsdecisionnottoextendtheAgreement.Furthermore,wherethisAgreementprovidesfortermination,DevelopershallhavetherighttorestorethedisplayfacingstoastaticformatsubstantiallyconsistentwiththeconfigurationoftheNewDigitalBillboard’sdisplayfacings.IfDeveloperelectstoremovethebillboardcompletelywithin180daysoftermination,Developershallremovetheabove-groundportionsofthestructureoftheNewDigitalBillboardwithin180daysfollowingtheexpirationofthetermofthisAgreement.Atemporarysuspensionofthedigitalfaces,orreturntostaticfaces,byDevelopershallhavenoeffectonthisAgreement,whichshallremaininfullforceandeffectforthefullTermunlessotherwiseterminatedinaccordancewithSection6.DevelopershallfurtherhavetherighttoterminatetheAgreementandremovetheNewDigitalBillboardintheeventoftheexpirationorterminationofitsinterestinthe110FreewaySite.Insuchevent,neitherDevelopernorCityshallhaveanyfurtherobligationshereunder.4.2City’sRighttoRemoval.ProvidedDeveloperisnotinmaterialBreachofthetermsofthisAgreementpastanyapplicablewrittennoticeandcureperiod,CitywillnothavetherighttorequireremovaloftheNewDigitalBillboard.ShouldsuchaBreachoccur,CitymayrequireDevelopertoremovethedigitaldisplayupontheNewDigitalBillboardand,at01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page15of48 Developer’sdiscretion,Developermayeitherremovetheabove-groundportionsofthestructureoftheNewDigitalBillboardorconvertthedisplaystoprinteddisplays,similartothosepreviouslyexistinguponthe110FreewayBillboardwithin30daysofCity’snoticetoDeveloperofsuchBreach.g4.3PropertytoBeReturnedtoOriginalorBetterCondition.AfterremovaloftheNewDigitalBillboard,eitherbyCityorbyDeveloper,Developershallreturnthe110FreewaySitetoitsoriginalconditionorbetter.Ataminimum,DevelopershallobtainademolitionpermitfortheNewDigitalBillboardandshallremoveallpartsoftheNewDigitalBillboard,includingtheabove-groundportionsofthestructure,andshallsecurethe110FreewaySite.5.REVIEWFORCOMPLIANCE.5.1AnnualReview.TheCityCouncilshallreviewthisAgreementannuallyatCity’ssolecost,onorbeforetheanniversaryoftheTerm,toascertainthegoodfaithcompliancebyDeveloperwiththetermsoftheAgreement(“AnnualReview”).TheannualreviewwillnotrequireapublichearingunlessamendmentstothisAgreementarebeingrequestedbyDeveloperorrecommendedbyCity.However,nofailureonthepartofCitytoconductorcompleteanAnnualReviewasprovidedhereinshallhaveanyimpactonthevalidityofthisAgreement.DevelopershallcooperatewiththeCityintheconductofsuchAnnualReviewandprovidethefollowinginformationanddocumentationtotheCity30daysfollowingtheanniversaryoftheCommencementDate:(1)copyofacurrentandvalidCalTranspermit;(2)descriptionofallcomplaintsfromCalTransortheCityregardingtheNewDigitalBillboard;(3)descriptionofallcomplaintsfromthepublicregardingthedisplayunrelatedtoanycontentofthemessagedisplayed;(4)statusandamountofallpaymentobligationstotheCityrequiredunderthisAgreementfortheyearinquestionandcumulativelybeginningfromtheCommencementoftheProjectherein;(5)anyeasement,leaseorlicensechangesthatcouldinanywaymateriallyimpacttheCityortheobligationsunderthisAgreement;(6)anyutilitychangesthatcouldinanywaymateriallyimpacttheCityortheobligationsunderthisAgreement;and(7)whetheranyCityMessagesperSection2.8.1havebeendisplayedduringtheprecedingyearoftheTermandadescriptionofthedurationofsuchdisplays.5.2SpecialReview.TheCityCouncilmay,initssoleandabsoLutediscretion,orderaspecialreviewofcompliancewiththisAgreementatanytimeatCity’ssolecost(“SpecialReview”).DevelopershallcooperatewiththeCityintheconductofsuchanySpecialReview,andshallpromptlyprovideinformationrelevanttotheSpecialReviewattherequestoftheCity.5.3CityRightsofAccess.SubjecttoLACMTA’sconsentinwriting,theCity,itsofficers,employees,agentsandcontractors,shallhavetheright,attheirsoleriskandexpense,tofl)enterthe110FreewaySiteatallreasonabletimeswithaslittleinterferenceaspossibleforthepurposeofconductingthereviewunderthisSection5,inspection,construction,reconstruction,IIrelocation,maintenance,repairorserviceofanypublicimprovementsorpublicfacilitieslocatedJonthe110FreewaySite.Anydamageorinjurytothe110FreewaySiteortotheimprovementsconstructedthereonresultingfromsuchentryshallbepromptlyrepairedatthesoleexpenseoftheCityandtheCitywillindemnifyLACMTAandDeveloper,andtheirrespectiveofficers,employees,and/oragentsagainst,andwillholdandsavethemandeachofthemharmlessfrom,anyandallactions,suits,claims,damagestopersonsorproperty,losses,costs,penalties,01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page16of48 obligations,errors,omissions,orliabilitiesthatmaybeassertedorclaimedbyanyperson(s),firm,orentityarisingoutoforinconnectionwiththework,operations,oractivitiesofCity,itsagents,employees,subcontractors,and/orinvitees,arisingfromorrelatingtotheCity’sentryuponthe110FreewaySiteThisprovisionisnotintendedtointerferewiththeCity’spolicepowerstoaddressanynuisance,dangerouscondition,orotherconditionpursuanttotheCity’sI]ordinances.InnoeventwillCityrepresentativesclimbuporaccessthepoleofthesignduringanyinspectionwithoutprovidingsuchinsuranceandindemnificationtoDeveloperasDevelopermayrequest,andwithoutcoordinatingwithDevelopertoensurethesafetyoftheinspectors5.4Procedure.EachpartyshallhaveareasonableopportunitytoassertmattersthatitbelieveshavenotbeenundertakeninaccordancewiththeAgreement,toexplainthebasisforsuchassertion,andtoreceivefromtheotherpartyajustificationofitspositiononsuchmatters.If,onthebasisoftheparties’reviewofanytermsoftheAgreement,eitherpartyconcludesthattheotherpartyhasnotcompliedingoodfaithwiththetermsoftheAgreement,thensuchpartymayissueawritten“NoticeofNon-Compliance”specifyingthegroundsthereforeandallfactsdemonstratingsuchnon-compliance.ThepartyreceivingaNoticeofNon-Complianceshallhave30daystocurethenon-complianceidentifiedintheNoticeofNon-Compliance,orifsuchnoncomplianceisnotreasonablycapableofbeingcuredorremediedwithinthe30-dayperiod,tocommencetocurethenon-complianceandtodiligentlyandingoodfaithprosecutesuchcuretocompletion.IfthepartyreceivingtheNoticeofNon-CompliancedoesnotbelieveitisoutofcomplianceandconteststheNotice,itshalldosobyrespondinginwritingtotheNoticewithin30daysafterreceipt.IftheresponsetotheNoticeofNon-Compliancehasnotbeenreceivedintheofficesofthepartyallegingthenon-compliancewithintheprescribedtimeperiod,theNoticeofNon-Complianceshallbeconclusivelypresumedtobevalid.IfaNoticeofNon-Complianceiscontested,thepartiesshall,foraperiodofnotlessthan15daysfollowingreceiptoftheresponse,seektoarriveatamutuallyacceptableresolutionofthematter(s)occasioningtheNotice.Intheeventthatacureorremedyisnottimelyeffectedor,iftheNoticeiscontestedandthepartiesarenotabletoarriveatamutuallyacceptableresolutionofthematter(s)bytheendofthe15-dayperiod,thepartyallegingthenon-compliancemaythereuponpursuetheremediesprovidedinSection6.NeitherpartyheretoshallbedeemedinBreachifthereasonfornoncomplianceisduetoa“forcemajeure”asdefinedin,andsubjecttotheprovisionsof,Section9.10.5.5CertificateofAgreementCompliance.If,attheconclusionofanAnnualRevieworaSpecialReview,DeveloperisfoundtobeincompliancewiththisAgreement,Cityshall,uponrequestbyDeveloper,issueaCertificateofAgreementCompliance(“Certificate”)toDeveloperstatingthat,afterthemostrecentAnnualRevieworSpecialReview,andbasedupontheinformationknownormadeknowntotheCityManagerandCityCouncil,that(1)thisJAgreementremainsineffectand(2)Developerisincompliance.TheCertificate,whetherissuedafteranAnnualRevieworSpecialReview,shallbeinrecordableformandshallcontaininformationnecessarytocommunicateconstructiverecordnoticeofthefindingofcompliance.DevelopermayrecordtheCertificatewiththeCountyRecorder.Additionally,Developermay,atanytime,requestfromtheCityaCertificatestating,inadditiontotheforegoing,whichobligationsunderthisAgreementhavebeenfullysatisfiedwithrespecttotheSites.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page17of48 6.DEFAULTANDREMEDIES.6.1TerminationofAgreement.6.1.1TerminationofAgreementforMaterialDefaultofDeveloper.City,initsdiscretion,mayterminatethisAgreementforanyfailureofDevelopertoperformanymaterialdutyorobligationofDeveloperhereunderortocomplyingoodfaithwiththematerialtermsofthisAgreement(hereinafterreferredtoas“Default”or“Breach”);Jprovided,however,CitymayterminatethisAgreementpursuanttothisSectiononlyafterfollowingtheproceduresetforthinSection5.4.IntheeventofaterminationbyCityunderthisSection6.1.1,DeveloperacknowledgesandagreesthatCitymayretainallfeesaccrueduptothedateofthetermination,includingtheProcessingFeeandtheDevelopmentFeepaiduptothedateoftermination,andDevelopershallpaytheproratedamountoftheDevelopmentFeewithin60daysafterthedateofterminationandremovaloftheNewDigitalBillboard,ifany,thatequatestothepercentageoftimeelapsedintheyearoftheTermpriortothedateoftermination.IntheeventDeveloperhaspre-paidanyportionoftheDevelopmentFeeatthetimeoftermination,CityshallrefundtoDeveloperthepro-ratedportionoftheDevelopmentFeeforanyperiodsafterthedateofremovaloftheNewDigitalBillboard.6.1.2TerminationofAgreementforMaterialDefaultofCity.Developer,initsdiscretion,mayterminatethisAgreementforanyfailureofCitytoperformanymaterialdutyorobLigationofCityhereunderortocomplyingoodfaithwiththematerialtermsofthisAgreement;provided,however,DevelopermayterminatethisAgreementpursuanttothisSectiononlyafterfollowingtheproceduresetforthinSection5.4.Inaddition,DevelopermayterminatethisAgreementif,despiteDeveloper’sgoodfaithefforts,itisunabletosecuretheDevelopmentApprovalsand/orcompliancewithrequirementsunderlawsnecessarytoeffectuatetheProject,orifDeveloperdeterminesthatthesettlementbytheCityofanyThirdPartyClaimsorLitigation(asdefinedbelow)pursuanttoSection7.2.1(b)wouldaffectDeveloper’srightsorabilitytoperformunderthisAgreement.IntheeventofaterminationbyDeveloperunderthisSection6.1.2,DeveloperacknowledgesandagreesthatCitymayretainallfees,includingtheProcessingFeeandtheDevelopmentFee,Developerpaiduptothedateoftermination,andDevelopershallpaytheproratedamountoftheDevelopmentFeewithin60daysafterthedateofterminationandremovaloftheNewDigitalBillboardthatequatestothepercentageoftimeelapsedintheyearoftheTermatthetimeoftermination.IntheeventDeveloperhaspre-paidanyportionoftheDevelopmentFeeatthetimeoftermination,CityshallrefundtoDeveloperthepro-ratedportionoftheDevelopmentFeeforanyperiodsafterthedateoftermination.6.1.3RightsandDittiesFollowingTennination.UpontheterminationofthisAgreement,nopartyshallhaveanyfurtherrightorobligationhereunderexceptwithrespectto(i)anyobligationstohavebeenperformedpriortosaidtermination,(ii)anyDefaultintheperformanceoftheprovisionsofthisAgreementvhichhasoccurredpriortosaidtermination,(iü)Developer’sobligationtoremovetheNewDigitalBillboardpursuanttoSection4or(iv)anycontinuingobligationstoindemnifyotherparties.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page18of48 7.INSURANCE,INDEMNIFICATIONANDWAIVERS.7.1Insurance.7.1.1Thpesoffusurance.J(a)LiabilityInsurance.BeginningontheEffectiveDatehereofanduntilcompletionoftheTerm,Developershall,atitssolecostandexpense,keeporcausetobekeptinforceforthemutualbenefitofCity,asadditionalinsured,andDevelopercomprehensivebroadformgeneralliabilityinsuranceagainstclaimsandliabilitiescoveredbytheindemnificationprovisionsofSection7.2.SuchpolicyshallprovideforlimitsofaleastTwoMillionDollars($2,000,000)peroccurrenceandatleastFourMillionDollars($4,000,000)intheaggregateforanyaccidentsoroccurrences,andatleastOneMillionDollars($1,000,000)forpropertydamage.DevelopershallalsofurnishorcausetobefurnishedtoCityevidencethatanycontractorswithwhomDeveloperhascontractedfortheperformanceofanyworkforwhichDeveloperisresponsiblemaintainsthesamecoveragerequiredofDeveloper.TheliabilitycertificateofinsuranceshallnametheCityasadditionalinsuredandincludetheappropriateadditionalinsuredendorsementform.(b)Worker’sCompensation.DevelopershallalsofurnishorcausetobefurnishedtoCityevidencereasonablysatisfactorytoitthatanycontractorwithwhomDeveloperhascontractedfortheperformanceofanyworkforwhichDeveloperisresponsiblehereundercarriesworker’scompensationinsuranceasrequiredbylaw.Ataminimum,Developershallprovidefor$1,000,000Employer’sLiability.Awaiverofsubrogationrightsendorsementformisrequiredaswell.(c)AutomobileLiability.DevelopershallfurnishorcausetobefurnishedtoCityevidencereasonablysatisfactorytoitthatanycontractorwithwhomDeveloperhascontractedfortheperformanceofanyworkforwhichDeveloperisresponsiblehereundercarriesautomobileLiabilityinsuranceasfollows:Minimumof$1,000,000combinedsinglelimitperaccidentforbodilyinjuryandpropertydamagecovering“anyauto”.AutomobilecertificateofinsuranceshallnametheCityasadditionalinsuredandincludetheappropriateadditionalinsuredendorsementform.(d)InsurancePolicyForm,Sufficiency,ContentandInsurer.All9insurancerequiredbyexpressprovisionshereofshallbecarriedonlybyresponsibleinsurancecompaniesqualifiedtodobusinessbyCaliforniawithanAMBestRatingofnolessthan“A”.Allsuchpoliciesshallbenon-assignableandshallcontainlanguage,totheextentobtainable,totheeffectthat(i)theinsurerwaivestherightofsubrogationagainstCityandagainstCity’sagentsandrepresentativesexceptasprovidedinthisSection;(H)thepoliciesareprimaryandnoncontributingwithanyinsurancethatmaybecarriedbyCity,butonlywithrespecttotheliabilitiesassumedbyDeveloperunderthisagreement;and(Hi)the01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page19of48 policiescannotbecanceledormateriallychangedexceptafterthirty(30)days’writtennoticebytheinsurertoCityorCity’sdesignatedrepresentativeDevelopershallfurnishCitywithcertificatesevidencingtheinsurance.CityshallbenamedasanadditionalinsuredonallliabilitypoliciesofinsurancerequiredtobeprocuredbythetermsofthisAgreement.(e)CityWaiverofSubrogation.TotheextentthisAgreementcreatesaclaimofliabilityagainstDeveloper,andtotheextenttheCityisinsuredagainst3suchclaimorliability,theCitywillobtain,totheextentreasonable,anendorsementwaivinganyrightofsubrogationthattheinsurermayotherwisehaveagainstDeveloper;providedthatifsuchawaiverisnotavailablefromtheCity’sinsurancecompanyatareasonablecost,theCitywillberelievedofitsobligationtoobtainawaiverofsubrogationunlessDeveloperagreestopayforthewaiver.7.1.2FailuretoMaintainInsuranceandProofofCompliance.DevelopershalldelivertoCity,inthemannerrequiredfornotices,copiesofcertificatesofallinsurancecoveragerequiredofeachpolicywithinthefollowingtimelimits:(a)Forinsurancerequiredabove,withinseven(7)daysaftertheEffectiveDateorconsistentwiththerequirementsofExhibit“C”(ScheduleofPerformance),ItemNo.6.(b)TheCitycanrequesttoseeupdatedcopiesofthecurrentcertificatesofallinsurancecoveragerequired.IfDeveloperfailsorrefusestoprocureormaintaininsuranceasrequiredherebyorfailsorrefusestofurnishCitywithrequiredproofthattheinsurancehasbeenprocuredandisinforceandpaidfor,aftercomplyingwiththerequirementsofSection5.4,theCitymayviewsuchfailureorrefusalshallbeaDefaulthereunder.7.2ThirdPartyClaimsorLitigation7.2.]IndemnityObligationsonThird-PartyClaimsorLitigation.(a)TheDevelopershallindemnifytheCityanditselectedboards,commissions,officers,agentsandemployeesandwilldefend,holdandsavethemandeachofthemharmlessfromanyandallThird-PartyClaimsorLitigation(includingbutnotlimitedtoobjectivelyreasonableattorneys’feesandcosts,including,butnotlimitedto,expertcosts)arisingfromorinconnectionwithUDeveloper’sobligationsunderthisAgreementandrelatedtotheProjectorconstructionactivitiesinfurtheranceoftheProjectagainsttheCityandshallberesponsibleforanyjudgmentarisingtherefrom.Except,however,Developer’sindemnityobligationsshallnotextendtoanyclaims,damagesorlitigationarisingsolelyfromCity’snegligentactsoromissions.(b)ThePartiesacknowledgethattheremaybechallengestothelegality,validityandadequacyoftheDevelopmentApprovalsand/orthis01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page20of48 Agreementinthefuture;andifsuccessful,suchchallengescoulddelayorpreventtheperformanceofthisAgreementandthedevelopmentoftheProject.TheCityshallhavenoliabilityunderthisAgreementfortheinabilityofDevelopertodeveloptheProjectastheresultofajudicialdeterminationthattheentitlements.thegeneralplan,thezoning,thelanduseregulations,oranyportionsthereofareinvalidorinadequateornotincompliancewithlaw.TheCityshallprovidetheDeveloperwithwrittennotice(the“Notice”)ofthependencyofsuchThird-PartyClaimsorLitigationwithinten(10)daysofbeingservedofsuchThird-PartyClaimsorLitigationandshallmakeawrittendemandfordefenseandindemnityofthesameontheDeveloperwithinareasonabletimefollowingdeliveryoftheNotice.TheCitywillcooperateingoodfaithinthedefenseofanysuchThird-PartyClaimsorLitigation.Notwithstandingtheforegoing,theCityretainsthediscretiontoselectlegalcounselofitschoosingtorepresenttheCityinsuchThird-PartyClaimsorLitigation,andtheCityfurtherretainsthediscretiontosettleorabandonsuchThird-PartyClaimsorLitigationwithoutDeveloper‘sconsent;provided,however,thatshouldCitydeterminetosettleorabandonsuchThird-PartyClaimsorLitigation,Cityshallbeentitledtobereimburseditsreasonabledefenseorothercostsuptothepointofsettlementorabandonment,butshallnotbeentitledtoindemnificationforanyfeesorcostsorotheramountsforanyperiodthereafterorforanysettlementamount,andprovided,further,thatCity’sdecisiontosettleorabandonsuchThird-PartyClaimsorLitigationfollowinganadversejudgmentorCity’sdeterminationnottoappealanadversejudgmentfromsuchThird-PartyClaimsorLitigationshallnotvoidCity’sindemnificationrightsundersubsection(a)aboveforanyperiodpriortothedateofsuchsettlementorabandonment.TheCityagreesthatshouldCitydeterminetosettlesuchThird-PartyClaimsorLitigationinamannerthatincludesthepaymentofattorneys’feesnotorderedorawardedinsuchThird-PartyClaimsorLitigation,theCityshallbeentitledtoreimbursementforthesameuponreceivingthewrittenconsentofDevelopertosuchsettlementandattorneys’fees,whichconsentshallnotbeunreasonablywithheld.TheDevelopermayutilizetheCityAttorney’sofficeoruselegalcounselofitschoosing,butshallreimbursetheCityforitsnecessaryandreasonablelegalcosts,including,butnotlimitedto,expertorotherconsultantfees,incurredbyCityinsuchThird-PartyClaimsorLitigation(the“CityCosts”).FailuretoprovidetheNoticewithin10daysofbeingservedshallnotaffecttheUenforceabilityoftheseprovisions.TheDevelopershallberequired,followingwrittendemandbytheCityfordefenseandindemnity,toplacefundsondepositwiththeCityintheamountofFiftyThousand($50,000.00)Dollars,whichfundsshallbeusedtoreimbursetheCityforitsCityCosts.IftheDeveloperfailstoprovidethedeposit,andaftercompliancewiththeprovisionofSection6,theCitymayabandontheactionandtheDevelopershallpayallcostsresultingtherefromandCityshallhavenoliabilitytotheDeveloper.AtnopointshalltheminimumbalanceofthedepositfallbelowFiftyThousandDollars($50,000).Alldeposits01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page21of48 mustbepaidtotheCitywithinthirty(30)daysofDeveloper’sreceiptoftheCity’swrittendemand.AnyunusedportionsofthedepositshallberefundedtoDeveloperwithinthirty(30)daysfollowingtheresolutionofsuchThird-PartyClaimsorLitigation.TheDeveloper’sobligationtopaythecostoftheaction,includingjudgment,shallextenduntiljudgment.Afterjudgmentinatrialcourt,Uthepartiesmustmutuallyagreeastowhetheranyappealwillbetakenordefended.CityagreesthatitshallcooperateingoodfaithwiththeDeveloperinthedefenseofanymatterinwhichtheDeveloperisdefendingand/orholdingtheCityharmless.(c)TheDevelopershallhavetheright,withinthefirst30daysoftheserviceofthecomplaint,initsreasonablediscretion,todeterminethatitdoesnotwanttodefendtheThird-PartyClaimsorLitigation,inwhichcasetheCityshallallowtheDevelopertosettletheThird-PartyClaimsorLitigationonwhatevertermstheDeveloperdetermines,initsreasonablediscretion,butDevelopershallconferwithCitybeforeactingandcannotbindCity.Inthatevent,theDevelopershallbeliableforanyCityCostsincurreduptothedateofsettlementbutshallhavenofurtherobligationtotheCitybeyondthepaymentofthosecosts.7.2.2HoldHannless:Developer’sConstructionandOtherActivities.(a)TheDevelopershalldefend,saveandholdtheCityanditselectedandappointedboards,commissions,officers,agents,andemployeesharmlessfromanyandallclaims,costs(includingattorneys’fees)andliabilityforanydamages,personalinjuryordeath,whichmayarise,directlyorindirectly,fromtheDeveloper’sortheDeveloper’sagents,contractors,subcontractors,agents,oremployees’ProjectconstructionactivitiesandoperationsunderthisAgreement,whethersuchProjectconstructionactivitiesandoperationsbebytheDeveloperorbyanyoftheDeveloper’sagents,contractorsorsubcontractorsorbyanyoneormorepersonsdirectlyorindirectlyemployedbyoractingasagentfortheDeveloperoranyoftheDeveloper’sagents,contractorsorsubcontractors.NothinghereinshallbeconstruedtomeanthattheDevelopershallholdtheCityharmlessand/ordefenditfromanyclaimsarisingfrom,orallegedtoarisefrom,thesolenegligenceorgrossorwillfulmisconductoftheCity’sofficers,employees,agents,contractorsofsubcontractors.(1)LossandDamage.CityshallnotbeliableforanydamagetopropertyofDeveloper,LACMTA,orofotherslocatedontheSites,norforthelossofordamagetoanypropertyofDeveloper,LACMTA,orofothersbytheftorotherwise.Cityshallnotbeliableforanyinjuryordamagetopersonsorpropertyresultingfromfire,explosion,steam,gas,electricity,water,rain,dampness,orleaksfromanypartoftheSitesorfromthepipesorplumbing,orfromthestreet,orfromanyenvironmentalorsoilcontaminationorhazard,orfromanyotherlatentorpatentdefectinthesoil,subsurfaceorphysicalconditionoftheSites,orbyanyothercauseofwhatsoevernature.Theforegoingtwo(2)sentencesshallnotapply(i)totheextentCityoritsagents,employees,subcontractors,01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page22of48 inviteesorrepresentativescausessuchinjuryordamagewhenaccessingtheSites,or(ii)totheextentcoveredinanypermittoenterexecutedbytheCity.NothinghereinshallbeconstruedtomeanthattheDevelopershallbearliabilityforthesolenegligenceorgrossorwillfulmisconductoftheCity’sofficers,employees,agents,contractorsofsubcontractors.(2)Non-liabilityofCityOfficersandEmployees.Noofficial,agent,contractor,oremployeeoftheCityshallbepersonallyliabletotheDeveloper,oranysuccessorininterest,intheeventofanyDefaultorBreachbytheCityorforanyamountwhichmaybecomeduetotheDeveloperortoitssuccessor,orforbreachofanyobligationofthetermsofthisAgreement.(3)ConflictofInterest.NoofficeroremployeeoftheCityshallhaveanyfinancialinterest,directorindirect,inthisAgreementnorshallanysuchofficeroremployeeparticipateinanydecisionrelatingtothisAgreementwhichaffectsthefinancialinterestofanycorporation,partnershiporassociationinwhichheorsheis,directlyorindirectly,interested,inviolationofanystatestatuteorregulation.(4)Survivalof!ndenmitvObligations.Allindemnity’provisionssetforthinthisAgreementshallsurviveterminationofthisAgreementforanyreason.(b)WaiverofSubrogation.Developeragreesthatitshallnotmakeanyclaimagainst,orseektorecoverfromCityoritselectedofficial,agents,servants,oremployees,foranylossordamagetoDeveloper,itsagents,employees,subcontractors,orinvitees,oranypropertyofDeveloperitsagents,employees,subcontractors,orinviteesrelatingtothisProject,exceptasspecificallyprovidedhereunder,includingbutnotlimitedto,aclaimorliabilityarisingfromthesolenegligenceorwillfulmisconductoftheCity,itselectedofficials,officers,agents,oremployees,whoaredirectlyresponsiblefortheCity.S.MORTGAGEEPROTECTION.8.1ThepartiesheretoagreethatthisAgreementshallnotpreventorlimitDeveloper,inanymanner,atDeveloper’ssolediscretion,fromencumberingthe110FreewaySiteoranyportionthereoforanyimprovementthereonbyanymortgage,deedoftrustorothersecuritydevicesecuringfinancingwithrespecttothe110FreewaySite.CityacknowledgesthatthelendersprovidingsuchfinancingmayrequirecertainAgreementinterpretationsandmodificationsandCityagreesuponrequest,fromtimetotime,tomeetwithDeveloperorLACMTAandrepresentativesofsuchlenderstonegotiateingoodfaithanysuchrequestforinterpretationormodification.Subjecttocompliancewithapplicablelaws,CitywillnotunreasonablywithholditsconsenttoanysuchrequestedinterpretationormodificationprovidedCitydeterminessuchinterpretationormodificationisconsistentwiththeintentandpurposesofthisAgreement.AnyMortgageeoftheSiteshallbeentitledtothefollowingrightsandprivileges:01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page23of48 (a)NeitherenteringintothisAgreementnoraBreachofthisAgreementshalldefeat,renderinvalid,diminishorimpairthelienofanymortgageontheDevelopmentorSitemadeingoodfaithandforvalue,unlessotherwiserequiredbylaw.(b)TheMortgageeofanymortgageordeedoftrustencumberingtheUDevelopmentorDeveloper’sinterestinthe110FreewaySite,oranypartthereof,whichMortgageehassubmittedarequestinwritingtotheCityinthemannerspecifiedhereinforgivingnotices,shallbeentitledtoreceivewrittennotificationfromCityofanyDefaultbyDeveloperintheperformanceofDeveloper’sobligationsunderthisAgreement.(c)IfCitytimelyreceivesarequestfromaMortgageerequestingacopyofanynoticeofdefaultgiventoDeveloperunderthetermsofthisAgreement,CityshallmakeagoodfaithefforttoprovideacopyofthatnoticetotheMortgageewithin10daysofsendingthenoticeofdefaulttoDeveloper.TheMortgageeshallhavetheright,butnottheobligation,tocuretheDefaultduringtheperiodthatisthelongerof(i)theremainingcureperiodallowedsuchpartyunderthisAgreement,or(ii)60days.(d)AnyMortgageewhocomesintopossessionoftheDevelopmentor110FreewaySite,oranypartthereof,pursuanttoforeclosureofthemortgageordeedoftrust,ordeedinlieuofsuchforeclosure,shalltaketheDevelopmentor110FreewaySiteorpartthereof,subjecttothetermsofthisAgreement.NotwithstandinganyotherprovisionofthisAgreementtothecontrary,noMortgageeshallhaveanobligationordutyunderthisAgreementtoperformanyofDeveloper’sobligationsorotheraffirmativecovenantsofDeveloperhereunder,ortoguaranteesuchperformance;exceptthat(i)totheextentthatanycovenanttobeperformedbyDeveloperisaconditionprecedenttotheperformanceofacovenantbyCity,theperformancethereofshallcontinuetobeaconditionprecedenttoCity’sperformancehereunder,and(ii)intheeventanyMortgageeseekstodeveloporuseanyportionoftheDevelopmentor110FreewaySiteacquiredbysuchMortgageebyforeclosure,deedoftrust,ordeedinlieuofforeclosure,suchMortgageeshallstrictlycomplywithalloftheterms,conditionsandrequirementsofthisAgreementandtheDevelopmentApprovalsapplicabletotheDevelopmentor110FreewaySiteorsuchpartthereofsoacquiredbytheMortgagee.9.MISCELLANEOUSPROVISIONS.9.1RecordationofAgreement.ThisAgreementshallberecordedwiththeCountyRecorderbytheCityClerkwithin10daysofexecution,asrequiredbyGovernmentCodeSection65868.5.Amendmentsapprovedbytheparties,andanycancellation,shallbesimilarlyUrecorded.9.2EntireAgreement.ThisAgreementsetsforthandcontainstheentireunderstandingandagreementofthepartieswithrespecttothesubjectmattersetforthherein,andtherearenooralorwrittenrepresentations,understandingsorancillarycovenants,undertakingsoragreementswhicharenotcontainedorexpresslyreferredtoherein.Notestimonyorevidenceofanysuchrepresentations,understandingsorcovenantsshallbeadmissibleinanyproceedingofanykindornaturetointerpretordeterminethetermsorconditionsofthisAgreement.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page24of48 9.3Severability.Ifanyterm,provision,covenantorconditionofthisAgreementshallbedeterminedinvalid,voidorunenforceable,thenthatterm,provision,covenantorconditionofthisAgreementshallbestrickenandtheremainingportionofthisAgreementshallremainvalidandenforceableifthatstrickenterm,provision,covenantorconditionisnotmaterialtothemainpurposeofthisagreement,whichistoallowtheDevelopmenttobepermittedandoperatedandtoprovidetheDevelopmentFeetotheCity;otherwise,thisAgreementshallterminateinitsentirety,unlessthepartiesotherwiseagreeinwriting,whichagreementshallnotbeunreasonablywithheld.9.4InterpretationandGoverningLaw.ThisAgreementandanydisputearisinghereundershallbegovernedandinterpretedinaccordancewiththelawsoftheStateofCalifornia.ThisAgreementshallbeconstruedasawholeaccordingtoitsfairlanguageandcommonmeaning,toachievetheobjectivesandpurposesofthepartieshereto.Theruleofconstruction,totheeffectthatambiguitiesaretoberesolvedagainstthedraftingpartyorinfavorofthenon-draftingparty,shallnotbeemployedininterpretingthisAgreement,allpartieshavingbeenrepresentedbycounselinthenegotiationandpreparationhereof.9.5SectionHeadings.AllsectionheadingsandsubheadingsareinsertedforconvenienceonlyandshallnotaffectanyconstructionorinterpretationofthisAgreement.9.6SingularandPlural.Asusedherein,thesingularofanywordincludestheplural.9.7TimeofEssence.TimeisoftheessenceintheperformanceoftheprovisionsofthisAgreementastowhichtimeisanelement.9.8Waiver.FailureofapartytoinsistuponthestrictperformanceofanyoftheprovisionsofthisAgreementbytheotherparty,orthefailurebyapartytoexerciseitsrightsupontheDefaultoftheotherparty,shallnotconstituteawaiverofsuchparty’srighttoinsistanddemandstrictcompliancebytheotherpartywiththetermsofthisAgreementthereafter.9.9NoThirdPartyBeneficiaries.ThisAgreementismadeandenteredintoforthesoleprotectionandbenefitforthepartiesandtheirsuccessorsandassigns.NootherpersonshallhaveanyrightofactionbaseduponanyprovisionofthisAgreement.9.10ForceMajeure.NeitherpartyshallbedeemedtobeinDefaultwherefailureordelayinperformanceofanyofitsobligationsunderthisAgreementiscausedbyearthquakes,otheractsofGod,fires,rains,winds,wars,terrorism,riotsorsimilarhostilities,strikesandotherlabordifficultiesbeyondtheparty’scontrol(includingtheparty’semploymentforce),governmentactionsandregulations(otherthanthoseoftheCity),courtactions(suchasrestrainingordersorinjunctions),orothercausesbeyondtheparty’sreasonablecontrol.Ifanysucheventsshalloccurexceptasotherwiseprovidedherein,thetermofthisAgreementandthetimeforperformanceshallbeextendedforthedurationofeachsuchevent,providedthatthetermofthisAgreementshallnotbeextendedunderanycircumstancesformorethanfive(5)yearsandfurtherprovidedthatifsuchdelayislongerthansix(6)months,DevelopermayterminatethisAgreementuponwrittennoticetoCityandCityshallreturntodeveloperanyportionoftheDevelopmentfeepaidforanyperiodaftertheeffectivedateofsuchtermination.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page25of48 9.11MutualCovenants.Thecovenantscontainedhereinaremutualcovenantsandalsoconstituteconditionstotheconcurrentorsubsequentperformancebythepartybenefitedtherebyofthecovenantstobeperformedhereunderbysuchbenefitedparty.9.12Counterparts.ThisAgreementmaybeexecutedbythepartiesincounterparts,whichcounterpartsshallbeconstruedtogetherandhavethesameeffectasifallofthepartieshadexecutedthesameinstrument.9.13Litigation.AnyactionatlaworinequityarisingunderthisAgreementorbroughtbyanypartyheretoforthepurposeofenforcing,construingordeterminingthevalidityofanyprovisionofthisAgreementshalLbefiledandtriedintheSuperiorCourtoftheCountyofLosAngeles,StateofCalifornia,orsuchotherappropriatecourtinsaidcounty.ServiceofprocessonCityshallbemadeinaccordancewithCalifornialaw.ServiceofprocessonDevelopershallbemadeinanymannerpermittedbyCalifornialawandshallbeeffectivewhetherservedinsideoroutsideCalifornia.IntheeventofanyactionbetweenCityandDeveloperseekingenforcementofanyofthetermsandconditionstothisAgreement,theprevailingpartyinsuchactionshallbeawarded,inadditiontosuchrelieftowhichsuchpartyisentitledunderthisAgreement,itsreasonablelitigationcostsandexpenses,includingwithoutlimitationitsexpertwitnessfeesandreasonableattorneys’fees.9.14CovenantNotToSue.ThepartiestothisAgreement,andeachofthem,agreethatthisAgreementandeachtermhereofislegal,valid,binding,andenforceable.ThepartiestothisAgreement,andeachofthem,herebycovenantandagreethateachofthemwillnotcommence,maintain,orprosecuteanyclaim,demand,causeofaction,suit,orotherproceedingagainstanyotherpartytothisAgreement,inlaworinequity,whichisbasedonanallegation,orassertinanysuchaction,thatthisAgreementoranytermhereofisvoid,invalid,orunenforceable.9.15ProjectasaPrivateUndertaking.ItisspecificallyunderstoodandagreedbyandbetweenthepartiesheretothattheDevelopmentoftheProjectisaprivateDevelopment,thatneitherpartyisactingastheagentoftheotherinanyrespecthereunder,andthateachpartyisanindependentcontractingentitywithrespecttotheterms,covenantsandconditionscontainedinthisAgreement.Nopartnership,jointventureorotherassociationofanykindisformedbythisAgreement.TheonlyrelationshipbetweenCityandDeveloperisthatofagovernmententityregulatingtheDevelopmentofprivateproperty,ontheonehand,andtheholderofalegalorequitableinterestinsuchpropertyontheocherhand.Cityagreesthatbyitsapprovalof,andenteringinto,thisAgreement,thatitisnottakinganyactionwhichwouldtransformthisprivateDevelopmentintoa“publicwork”project,andthatnothinghereinshalLbeinterpretedtoconveyuponDeveloperanybenefitwhichwouldtransformDeveloper’sprivateprojectintoapublicUworkproject,itbeingunderstoodthatthisAgreementisenteredintobyCityandDeveloperupontheexchangeofconsiderationdescribedinthisAgreement,includingtheRecitalstothisAgreementwhichareincorporatedintothisAgreementandmadeaparthereof,andthatCityisreceivingbyandthroughthisAgreementthefullmeasureofbenefitinexchangefortheburdensplacedonDeveloperbythisAgreement.9.16FurtherActionsandInstruments.Eachofthepartiesshallcooperatewithandprovidereasonableassistancetotheothertotheextentcontemplatedhereunderinthe01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page26of48 performanceofallobligationsunderthisAgreementandthesatisfactionoftheconditionsofthisAgreement.Upontherequestofeitherpartyatanytime,theotherpartyshallpromptlyexecute,withacknowledgmentoraffidavitifreasonablyrequired,andfileorrecordsuchrequiredinstrumentsandwritingsandtakeanyactionsasmaybereasonablynecessaryunderthetermsofthisAgreementtocarryouttheintentandtofulfilltheprovisionsofthisAgreementortoPevidenceorconsummatethetransactionscontemplatedbythisAgreement.9.17EminentDomain.NoprovisionofthisAgreementshallbeconstruedtolimitorrestricttheexercisebyCityofitspowerofeminentdomainorDeveloper’srighttoseekandcollectjustcompensationoranyotherremedyavailabletoit.9.18AmendmentsinWriting/Cooperation.ThisAgreementmaybeamendedonlybywrittenconsentofbothpartiesspecificallyapprovingtheamendmentandinaccordancewiththeGovernmentCodeprovisionsfortheamendmentofDevelopmentAgreements.ThepartiesshallcooperateingoodfaithwithrespecttoanyamendmentproposedinordertoclarifytheintentandapplicationofthisAgreement,andshaLltreatanysuchproposalonitsownmerits,andnotasabasisfortheintroductionofunrelatedmatters.Minor,non-materialmodificationsmaybeapprovedbytheCityManageruponapprovalbytheCityAttorney.9.19CorporateAuthority.Theperson(s)executingthisAgreementonbehalfofeachofthepartiesheretorepresentandwarrantthat(i)suchparty,ifnotanindividual,isdulyorganizedandexisting,(ii)theyaredulyauthorizedtoexecuteanddeliverthisAgreementonbehalfofsaidparty,(iii)bysoexecutingthisAgreementsuchpartyisformallyboundtotheprovisionsofthisAgreement,and(iv)theenteringintothisAgreementdoesnotviolateanyprovisionofanyotheragreementtowhichsuchpartyisbound.9.20Notices.AllnoticesunderthisAgreementshallbeeffectivewhendeliveredbyUnitedStatesPostalServicemail,registeredorcertified,postageprepaidreturnreceiptrequested;andaddressedtotherespectivepartiesassetforthbeloworastosuchotheraddressasthepartiesmayfromtimetotimedesignateinwritingbyprovidingnoticetotheotherparty:ToCity:CityofCarson701B.CarsonStreetCarson,CA90745Attn:CityManagerWithCopyto:Aleshire&Wynder,LLP18881VonKarmanAve.,#1700Irvine,CA92612Attn:SunnyK.Soltani,Esq.ToDeveloper:ClearChanneLOutdoor,Inc.19320HarborgateWayTorrance,CA90501Attn:VicePresident,RealEstate&PublicAffairsWithCopyto:ClearChannelOutdoor,Inc.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page27of48 2325EastCamelbackRoad,Suite400Phoenix,AZ85016Attn:OperationsCounsel9.21NonliabilityofCityOfficials.Noofficer,official,member,employee,agent,orrepresentativesofCityshallbeliableforanyamountsduehereunder,andnojudgmentorexecutionthereonenteredinanyactionhereonshallbepersonallyenforcedagainstanysuchofficer,official,member,employee,agent,orrepresentative.9.22NoBrokers.CityandDeveloperrepresentandwarranttotheotherthatneitherhasemployedanybrokerand/orfindertorepresentitsinterestinthistransaction.Eachpartyagreestoindemnifyandholdtheotherfreeandharmlessfromandagainstanyandallliability,loss,cost,orexpense(includingcourtcostsandreasonableattorneys’fees)inanymannerconnectedwithaclaimassertedbyanyindividualorentityforanycommissionorUnder’sfeeinconnectionwiththisAgreementorarisingoutofagreementsbytheindemnifyingpartytopayanycommissionorfinder’sfee.[SIGNATURESONNEXTPAGEjU01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page28of48 INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementonthedayandyearfirstsetforthabove.City:CITYOFCARSONByMayorAlbertRobiesATTEST:ByDonesiaGause-Aldana,MMCCityClerkAPPROVEDASTOFORM:By___________________________SunnyK.Sollani,CityAttorney[EQGIDeveloper:CLEARCHANNELOUTDOOR,INC.,aDelawarecorporationBy:Its:_____________________________________________________By:Its:________________________________________________TwocorporateofficersignaturesrequiredwhenDeveloperisacorporation,withonesignaturerequiredfromeachofthefollowinggroups:1)ChairmanoftheBoard,PresidentoranyVicePresident;and2)Secretary,anyAssistantSecretary,ChiefFinancialOfficeroranyAssistantTreasurer.DEVELOPER’SSIGNATURESSHALLBEDULYNOTARIZED,ANDAPPROPRIATEATTESTATIONSSHALLBEINCLUDEDASMAYBEREQUIREDBYTHEBYLAWS,ARTICLESOFINCORPORATION,ORUOTHERRULESORREGULATIONSAPPLICABLETODEVELOPER’SBUSINESSENTITY.01007.0005/422043.24ExhibitsDevelopmentAgreementORDINANCENO.18-1811Page29of48 CALIFORNIAALL-PURPOSEACKNOWLEDGMENTAnotarypublicorotherofficercompletingthiscertificateveritiesonlytheidentityoftheindividualwhosignedthedocumenttowhichthiscertiflcaieisattached,andnotthetruthfulness,accuracyorvalidityofthatdocumentSTATEOFCALIFORNIACOUNTYOFLOSANGELESOn___________2018beforeme,_________________,personallyappeared_________________,provedtomeonthebasisofsatisfactoryevidencetohetheperson(s)whosenames(s)is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinhis/her/theirauthorizedcapacity(ies),andthatbyhis/her/theirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.IcertifyunderPENALTYOFPERJURYunderthelawsof‘heStateofCaliforniathattheforegoingparagraphistrueandcorreci.WITNESSmyhandandofficialseal.Signature:OPTIONALThoughthedatabelowisnotrequiredbylaw,itmayprovevaluabletopersonsrelyingonthedocumentandcouldpreventfraudulentreattachmentofthisformCAPACITYCLAJMEDBYSIGNERDESCRIPTIONOFATTACHEDDOCUMENTINDIVIDUALCORPORATEOFFICER___________________________________________________TITLEORTYPEOFDOCUMENTTITLE(S)CPARTNER(S)ULIMITED___________________________GENERALNUMBEROFPAGESICATTORNEY-IN-FACTCTRUSTEE(S)oGUARDIAN/CONSERVATOR_________________________oOTHER_______________________DATEOFDOCUMENTSIGNERISREPRESENTING:___________________________(NAMEOFPERSON(S)ORENTITY(IES))SIGNER(S)OTHERTHANNAMEDABOVE01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page3Oof48 CALIFORNIAALL-PURPOSEACKNOWLEDGMENTAnotarypublicorotherofficercompletingthiscertiflcaieverifiesonlytheidenlityoftheindividualwhosignedthedocumentiowhichthiscertificateisattached,andnotthetruthfulness,accuracyorvalidityofthatdocumeni.STATEOFCALIFORNLACOUNTYOFLOSANGELESOn__________,2018beforeme,________________personallyappeared________________.provedtomeonthebasisofsatisfactoryevidencetobetheperson(s)whosenames(s)is/aresubscribedtothewithininstrumeniandacknowledgedtomethathe/she/theyexecutedthesameinhis/lieu/theirauthorizedcapacity(ies),andthatbyhis/her/theirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.IcertifyunderPENALTYOFPERJURYunderthelawsoftheStateofCaliforniathattheforegoingparagraphistrueandcorrect.WITNESSmyhandandofficialseal.Signature:OPTIONALThoughthedatabelowisnotrequiredbylaw,itmayprovevaluabletopersonsrelyingonthedocumentandcouldpreventfraudulentreattachmentofthisformCAPACITYCLAIMEDBYSIGNERDESCRIPTIONOFATTACHEDDOCUMENTCINDIVIDUALQCORPORATEOFFICER___________________________________________________TITLEORTYPEOFDOCUMENTTiTLE(S)CPARTNER(S)CLIMITED__________________________GENERALNUMBEROFPAGESATTORNEY-IN-FACTCTRUSTEE(S)flGUARDIAN/CONSERVATOR___________________________COTHER______________________DATEOFDOCUMENTSIGNERISREPRESENTING:_________________________(NAMEOFPERSON(S)ORENTITY(IES))SIGNER(S)OTHERTHANNAMEDABOVE01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page31of48 EXHIBIT“A”0ULEGALDESCRIPTIONOF110FREEWAYSITE01007.0005/422043.24DevelopmentAgreementExhibitBORDINANCENO.18-1811Page32of48APN:7406-026-915tJr EXHIBIT“A-i”DEPICTIONOFNEWDIGITALBILLBOARDSITEDigitalBillboardSite-Aerial01007.0005/422043.24DevelopmentAgreementExhibitBORDINANCENO.18-1811Page33of48 EXHIBIT“A-2”NEWDIGITALBILLBOARDCONCEPTUALRENDERINGOPTIONAJConceptualRenderingsAPN:7406-026-915I48’11141U01007.0005/422043.24DevelopmentAgreementExhibitBORDINANCENO.18-1811Page34of4S OptionB0UConceptualRendedngsAPN:7406-026-91501007.0005/422043.24DevelopmentAgreementExhibitBORDINANCENO.18-1811Page35o148es—-tr OptionCUU01007.0005/422043.24DevelopmentAgreementExhibitBORDINANCENO.18-1811Page36of48T EXHIBIT“B”city-ORIENTEDBILLBOARDSitES[Intentionallyleftblank]1301007.0005/422043.24ExhibitSDevelopmentAgreementORDINANCENO.18-1811Page37of48 cc(0—‘CCm00ouiD-...,-t—0ID.owCD•D0CQPZm0flXwmohihiJZ)H>CH2CI-Ji‘C-JIcli0cliC,,CH-ICzC-IirC,)Hcli EXHIBIT“B-2”E]UDEPICTIONOFWALKERSITE01007.0005/422043.24DevelopmentAgreementExhibitBORDINANCENO.18-1811Page39of48 —01007.0005/422043.24DevelopmentAgreementExhibitBORDINANCENO.18-1811&hibt5-2Photoof20846SouthMain,Cars,APN;7336-016D260UPage4Oof4R EXHIBIT“B-3”LEGALDESCRIPTIONOFCHAVEZSITETRACTNO8579,LOT2,CENSUSTRACT:5438.01,BLOCK:30________4,,—733424I•tt;n“.4’sCAUr2003‘°ST215THzosIIIIII1rr1j’_—iIIII—II0pj.’3ntW1—flfl®:,:H®1toreIQ’/IIIt©I134145161171(8IIIII-IIIIIIIIIIL..alt,ijLag.Lc—ideiLss...ta_knia——-3nnsr-’—r9rfn—II—III’I4),27126251124,I23222I:0’’J’€I€H®®r®•S!®elItiIIII•0tiI1IIIIII-2c,rS—F.....a.-.L...nfl!.,,-d_..—Isa__P2-ST.TRACTNO.8579M49—36‘263JANIUW3ICIflEY.Afl-4-r.UI:-‘UI,,..,-u1yCILCIOCLt,u.n.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page41of48 EXHIBIT“B-4”ExhibitS-4Mapof21520-21575SouthMain,Carson,APN:7334-024-00201007.0005/422043.24DevelopmentAgreementExhibftBORDINANCENO.18-1811Page42of48DEPICTIONOFCHAVEZSITEL00 Exhibit84Photos&21520-21576SouthMaiRCarscn,APN:7334-024-002201007.0005/422043.24ExhibitBDevelopmentAgreement13UORDINANCENO.18-1811Page43of48 EXHIBIT“C”IUSCHEDULEOFPERFORMANCE01007.0005/422043.24DevelopmentAgreementExhibitBORDINANCENO.18-1811ITEMOFPERFORMANCETIMEFORREFERENCEPERFORMANCE1.City’sPlanningCommissionholdsJune12,2018RecitalspublichearingandrecommendsapprovalofAgreementandConditions_ofApproval2.City’sCityCouncilholdshearingsJuly3,2018,2018({5lRecitalstoapproveAgreementandfirstandReading);July17,2018(2secondreadingofOrdinanceReading)providedDeveloperhasfullyexecutedtheAgreement3.EffectiveDateofthisAgreement90daysfollowingtheeffective1.1.17dateoftheCouncilordinanceapprovingtheAgreement.4.DeveloperpreparesandsubmitstoWithin120daysofthe3.5,ExhibitCCityworkingdrawingsCouncil’ssecondreadingofthespecificationsandengineering,CityOrdinanceapprovingthiscommencesapprovalprocessAgreement5.Citytoapproveallconstruction,Within30daysofCity’sreceipt3.5,ExhibitCengineeringdrawingsandofApplicant’sconstructionspecificationswithaplancheckdrawingsandspecificationsapprovalandissueallnecessaryaddressingallofCity’spermits,includingbutnotlimitedcommentsto,_a_building_permit6.DevelopertosubmitproofofPriortocommencingany7.1.2insurancetoCityinspectionsandworkontheProject7.DeveloperpaysCityYear1Within30daysofthe2.6.2DevelopmentFeeCommencementDate.8.DeveloperpaysCitysecondAnnually,ontheanniversaryof2.6.2through30thinstallmentsoftheDueDate.Page44of4S IUItisunderstoodthatthisScheduleofPerformanceissubjecttoallofthetermsandconditionsofthetextoftheAgreement.ThesummaryoftheitemsofperformanceinthisScheduleofPerformanceisnotintendedtosupersedeormodifythemorecompletedescriptioninthetext;intheeventofanyconflictorinconsistencybetweenthisScheduleofPerformanceandthetextoftheAgreement,thetextshaLlgovern.ThetimeperiodssetforthinthisScheduleofPerformancemaybealteredoramendedonlybywrittenagreementsignedbyboththeDeveloperandtheCity.NotwithstandinganyextensionoftheTerminthemannerdescribedin,andsubjecttotheprovisionsof,Section3.5,theCityManagershallhavetheauthoritytoapproveextensionsoftimesetforthinthisScheduleofPerformancewithoutactionoftheCityCouncilnottoexceedacumulativetotalof180days.01007.0005/422043.24DevelopmentAgreementExhibit8ORDINANCENO.18-1811Page45of48ITEMOFPERFORMANCETIMEFORREFERENCEPERFORMANCEDevelopmentFeeifDeveloperreceivesFinalPermits9.DevelopertocompletethePriortofinalinspectionofNew3.2demolitionandcompleteremovalDigitalBillboard.ofthe_City-Oriented_Billboards10.DevelopertocompletetheWithin180daysfromsecuring3.5demolitionandcompleteremovalbuildingpermit,butnolateroftheprinted110FreewaythantheCommencementDate.Billboard11.DevelopertocommencetheWithin180daysofreceiptofall3.5developmentoftheNewDigitalDevelopmentApprovals.Billboard12.DevelopertocompletetheNewWithin180daysofthe3.5DigitalBillboardcommencementoftheconstructionofthebillboardfooting,columnandheadofthesignbillboard,butextendedforthoseForceMajeureitemslistedinSection9.10 EXHIBIT“D”SCOPEOFDEVELOPMENTDeveloperandCityagreethattheDevelopmentshallbeundertakeninaccordancewiththetermsoftheAgreement,whichincludethefollowing:I.TheProject.DevelopershallRelocatethe110FreewayBillboardandreplacetheexistingprintedsignwiththeNewDigitalBillboardinaccordancewiththetermsofthisAgreement.TheNewDigitalBillboardconsistsofone“bulletin”sizefreeway-orientedbillboardwithaheightnottoexceed65’andwithatotaloftwo(2)displays(eachdisplaymeasuring14’x48’)withinthe110FreewaySite.The110FreewayBillboardshallberelocatedtoapproximatelythesamelocation,inthelocationdepictedatExhibit“A”and“A-I”hereto,andconvertedtoaNewDigitalBillboard,incooperationwithLACMTAandasfurtherprovidedinthisAgreementatSection3.2.AsrequiredbytheCityatthetimeofthefinalDevelopment,Developershallinstallunderground,totheextentallowedbyLACMTA,allutilitiesnecessaryfortheNewDigitalBillboard.TheNewDigitalBillboardSiteshallbemaintainedinaccordancewiththeconditionsatParagraph3ofthisExhibit“D.”2.BuildingFees.DevelopershallpayallapplicableCitybuildingfees,asdescribedatSection2.5oftheAgreement,atthetimethatabuildingpermitisissuedfortheinstallationoftheNewDigitalBillboardonthe110FreewaySite.3.MaintenanceandAccess.Developer,foritselfanditssuccessorsandassigns,herebycovenantsandagreestoberesponsibleforthefollowing:(a)MaintenanceandrepairoftheNewDigitalBillboardwithinthe110FreewaySite,includingbutnotlimitedto,thedisplaysinstalledthereon,andallrelatedon-siteimprovements,easements,rights-of-wayand,ifapplicable,atitssolecostandexpense,including,withoutlimitation,landscaping,poles,lighting,signsandwalls,ingoodrepair,freeofgraffiti,rubbish,debrisandotherhazardstopersonsusingthesame,andinaccordancewithallapplicablelaws,rules,ordinancesandregulationsofallfederal,State,andlocalbodiesandagencieshavingjurisdictionovertheSiteunlessthosefederal,State,andlocalbodieshaveanexceptionforalegalnonconforminguse.Suchmaintenanceandrepairshallinclude,butnotbelimitedto,thefollowing:(i)sweepingandtrashremovalrelatedtotheDevelopment;(ii)theongoingmaintenancebytheDeveloperoftheaccessroadtotheNewDigitalBillboardtominimizedustcausedbytheDevelopment;and(ii)therepair,replacement,andrepaintingoftheNewDigitalBillboardstructureanddisplaysasnecessarytomaintainsuchbillboardingoodconditionandrepair.(b)MaintenanceoftheNewDigitalBillboardwithinthe110FreewaySiteinsuchamannerastoavoidthereasonabledeterminationofadulyauthorizedofficialoftheCitythatapublicnuisancehasbeencreatedbytheabsenceofadequatemaintenanceoftheDevelopment.01007.0005/422043.24Exhibit8DevelopmentAgreementORDINANCENO.18-1811Page46of48 4.OtherRightsofCity.IntheeventofanyviolationorthreatenedviolationofanyoftheprovisionsofthisExhibit“D,”theninadditionto,butnotinlieuof,anyoftherightsorremediestheCitymayhavetoenforcetheprovisionsofthisAgreement,theCityshallhavetheright,aftercomplyingwithSection5.4oftheAgreement,(i)toenforcetheprovisionshereofbyundertakinganymaintenanceorrepairsrequiredbyDeveloperunderParagraph3ofthisExhibit“D”(subjecttowrittenpermissionbyLACMTAtoenterthe110FreewaySite)andchargingDeveloperforanyactualmaintenancecostsincurredinperformingsame,and(ii)towithholdorrevoke,aftergivingwrittennoticeofsaidviolation,anybuildingpermits,occupancypermits,IJcertificatesofoccupancy,businesslicensesandsimilarmattersorapprovalspertainingtothe110FreewaySite,Relocation,oranypartthereoforintereststhereinastotheviolatingpersonoronethreateningviolation.5.NoCityLiability.ThegrantingofarightofenforcementtotheCitydoesnotcreateamandatorydutyonthepartoftheCitytoenforceanyprovisionofthisAgreement.ThefailureoftheCitytoenforcethisAgreementshallnotgiverisetoacauseofactiononthepartofanyperson.NoofficeroremployeeoftheCityshallbepersonallyliabletotheDeveloper,itssuccessors,transfereesorassigns,foranyDefaultorBreachbytheCityunderthisAgreement.6.ConditionsofApproval.ThefollowingadditionalconditionsshallapplytotheinstallationoftheNewDigitalBillboard,whichshallconformtoallapplicableprovisionsoftheCarsonMunicipalCode(CMC)andthefollowingconditions,inamannersubjecttotheapprovalofthePlanningOfficerordesignee:(a)Abuildingpermitwillberequired,structuralcalculationsshallbepreparedbyalicensedcivilengineerandapprovedbytheCityBuildingOfficial.(b)ThesizeoftheactivecopyareaofeachsigndisplayofNewDigitalBillboardshallnotexceedamaximumareaof672squarefeetwithnomorethan128totalfeetofextensionsorbordersandshallnottoexceedamaximumheightof54feet,includingallextensions,fromthegradelevel,andshallbespacedatintervalsthatarenolessthan500feetfromanyotherbillboardonthesamesideofthefreewayandmeasuredparalleltothefreewayasdepictedintheSitePlanandElevationsatExhibit“A-l”approvedbytheCityaspartoftheDevelopmentApprovals.(c)TheNewDigitalBillboardpoleshallmatchthespecificationsattachedinExhibitA-IsubjecttotheapprovaloftheCity’sDevelopmentServicesManagerordesignee.(d)PlansandspecificationsfortheproposedinstallationoftheNewDigitalBillboard,includingplansfortheundergroundingofallutilities,shallbesubmittedtotheCityPlanningandBuildingDepartmentsforplancheckandapprovalpriortotheissuanceofbuildingpermits.(e)Priortotheapprova]ofthefinalinspection,allapplicableconditionsofapprovalandallmandatoryimprovementsshallbecompletedtothereasonablesatisfactionoftheCity.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page47of4S (fDDevelopershallmaintainthe110Freewayandusethereofinfullcompliancewithallapplicablecodes,standards,policiesandregulationsimposedbytheCity,County,Stateorfederalagencieswithjurisdictionoverthefacilities,unlesstheDevelopmentisexemptedasalegalnonconforminguse.(g)Developershall,atalltime,complywiththeapprovalfortheNewDigitalBillboardfromtheCaliforniaDepartmentofTransportationOutdoorAdvertisingDivisionandshallmaintainacceptableclearancebetweenproposedbillboardsandSouthernCaliforniaEdisondistributionlines.(h)TheDevelopershallpayanyandallapplicablefeesduetoanypublicagencypriortothefinalissuanceofthebuildingpermits.(i)TheactivitiesproposedinthisAgreementshallbeconductedcompletelyupon110FreewaySiteandshallnotuseorencroachonanyoperableportionofanypublicright-of-way.j)DevelopershallberequiredtoinstallallundergroundutilitiesinconnectionwiththeNewDigitalBillboardassetforthinparagraphs1and3ofthisExhibit“D.”Tothisend.CityshallcooperatewiththeSouthernCaliforniaEdisonrequirementuponDevelopertoupgradeDeveloper’scurrentelectricalservicetotheNewDigitalBillboard.DevelopershallcomplywithallnecessaryNPDESrequirementspertainingtotheproposeduse,totheextentapplicable.(k)AllgraffitishallbeadequateLyandcompletelyremovedorpaintedoverwithin48hoursofnoticeofsuchgraffitibeingaffixedontheDevelopment.(1)PriortoissuanceofabuildingapprovalallowingtheoperationoftheNewDigitalBillboard,allCity-OrientedBillboardsshallbecompletelyremoved.(m)DevelopershaLlcomplywithStatelawregardingthelimitationoflightorglareorsuchotherstandardsasadoptedbytheOutdoorAdvertisingAssociationofAmerica,Inc.(OAAA),includingbutnotlimitedto,the0.3foot-candleslimitationoverambientlightlevelsandensuringadditionalflexibilityinreducingsuchmaximumlightlevelstandardgiventhelightingenvironment,theobligationtohaveautomaticdimingcapabilities,aswellasprovidingtheCity’sPlanningOfficerordesigneewithadesignatedDeveloperemployee’sphonenumberand/oremailaddressforemergenciesorcomplaintsthatwillbemonitored24hoursaday/7daysperweek.UponanycomplaintbytheCity’sPlanningOfficerordesignee,DevelopershalldimthedisplaytomeettheseguidelinesandfurtherperformabrightnessmeasurementofthedisplayusingOAAAstandardsandprovideCitywiththeresultsofsamewithin5daysoftheCity’scomplaint.(n)EachmessageontheNewDigitalBillboarddisplayshallbedisplayedforatleasteight(8)seconds.01007.0005/422043.24ExhibitBDevelopmentAgreementORDINANCENO.18-1811Page48of48