Loading...
HomeMy Public PortalAboutC-20-024 - Mobile Mini, Inc. and JHD Alameda, LLC and SCMR Properties, LLC Agreement for Development Impact Fees and Community Facilities District Participation, 22632 S. Alameda St.AGREEMENT FOR DEVELOPMENT IMPACT FEES AND COMMUNITY FACILITIES DISTRICT PARTICIPATION SAG EMENT (the "Agreement") is executed this is!�_ day of ,ra 2020 (the "Effective Date"), by and between the CITY OF CARSON, a Cal ornia charter city (the "City"), MOBILE MINI, INC., a Delaware corporation ("Mobile Mini"), whose principal place of business is 4646 E Van Buren Street, Suite 400, Phoenix, AZ 85008, and JHD ALAMEDA, LLC., a California limited liability company, as to an undivided one-half interest ("JHD Alameda") with its principal place of (� business at 22 Brandt Drive, Moraga, California 94556; and SCMR PROPERTIES, LLC., a California limited liability company, as to an undivided one-half interest ("SCMR Properties"), with its principal place of business at 6900 Acco Street, Montebello, CA 90640. City, Mobile Mini, JHD Alameda, and SCMR Properties may be referred to, individually or collectively, as "Party" or "Parties." RECITALS WHEREAS, on March 21, 2017, the City Council of the City of Carson adopted Interim Urgency Ordinance No. 17-1615U by a 5-0 vote, pursuant to its authority under Government Code Section 65858; and WHEREAS, Interim Urgency Ordinance No. 17-1615U enacted a 45 -day moratorium on the establishment, expansion, or modification of truck yards, logistics facilities, hazardous materials and hazardous waste facilities, container storage facilities, and container parking (collectively, "Logistics Facilities") in the City of Carson; and WHEREAS, on May 2, 2017, the City Council adopted Interim Urgency Ordinance No. 17-1618U by a 5-0 vote, pursuant to its authority under Government Code Section 65858; and WHEREAS, Interim Urgency Ordinance No. 17-1618U enacted a 10 -month and I5 -day extension of the moratorium on the establishment, expansion, or modification of Logistics Facilities; and WHEREAS, on March 20, 2018, the City Council adopted Interim Urgency Ordinance No. 18-1805U by a 5-0 vote, pursuant to its authority under Government Code Section 65858; and WHEREAS, Interim Urgency Ordinance No. 18-1805U enacted an additional 12 -month extension of the moratorium on the establishment, expansion, or modification of Logistics Facilities; and WHEREAS, Interim Urgency Ordinance Nos. 17-1615U, 17-1618U, and 18-1805U constitute the City's Logistics moratorium (the "Moratorium"); and WHEREAS, during the effective period of the Moratorium, no application for permit is being accepted, no consideration of any application for permit is being made, and no permit is being issued by the City for the establishment, expansion, or modification of Logistics Facilities; and WHEREAS, the City Council may allow exceptions to the application of the Moratorium if, based on substantial evidence presented, it determines any or a combination of the following for a specific project: I 01007.0018/506845.5 1. The City's approval of an application for a permit to establish, expand, or modify a Logistics Facility within the City's jurisdiction will not have a material negative impact upon the public health, safety, and welfare. 2. Application of the Moratorium would impose an undue financial hardship on a property or business owner. 3. Land controlled by the City or by any of its agencies and authorities, including transactions approved by the Department of Finance. 4. The developer or tenant agrees to form or to participate in a Community Facilities District to pay for ongoing City services, including but not limited to, road maintenance, landscape maintenance, lighting, public safety, storm water management, etc., to the satisfaction of the City Council. 5. The developer or tenant enters into an agreement that guarantees the City the same financial assurances offered by a Community Facilities District. 6. The fiscal impact analysis for the business shows that the business will not, after taking into consideration all fiscal and employment benefits to the City and its residents, have material adverse negative fiscal impacts on the City. 7. The Logistics Facility will not generate additional materially adverse truck traffic impacts in excess of those generated by the use of the property as of the effective date of the Moratorium. 8. The facility enters into a development impact fees agreement with the City. 9. The use is permitted or conditionally permitted in the zone. 10. The use is consistent with the purposes of the Moratorium and the General Plan. 11. The use will not be in conflict with any contemplated general plan, specific plan, or zoning code update that the City Council is considering or studying or intends to study. 12. The use is not and will not become a hazardous materials facility, a truck yard, or a container storage facility. 13. The use will not abut a sensitive land use, or the impacts on an abutting sensitive land use can be adequately mitigated with reasonable conditions. 14. The use will not constitute a threat to the public health, safety, and welfare. WHEREAS, on March 21, 2017, Mobile Mini submitted a Conditional Use Permit application (the "CUP") to allow for the following work (collectively, the "Project"): modification, construction and operation of an existing container storage facility and the addition of three (3) modular office units totaling 6,480 square feet, a 11,880 square foot -35 foot high maintenance canopy, and 910 parking spaces located on a 13.97 acre parcel of land at 22632 South Alameda Street, Assessor's Parcel Number 7315-010-005 (the "Property"), in the MH- ORL-D (Manufacturing Heavy -Organic Refuse Landfill -Design Overlay) zone; and WHEREAS, the Project is subject to the Moratorium; and WHEREAS, on October 24, 2017, Mobile Mini filed a request for an exception to the Moratorium to allow filing and processing of all applications and/or permits necessary for the construction of the Project; and WHEREAS, on November 6, 2017, the City Council adopted Resolution No. 17-148, approving an exception to the Moratorium for the Project (the "Exception"), subject to certain conditions precedent, including that Mobile Mini will pay the undetermined one-time interim Development Impact Fee (the "DIF"); and WHEREAS, JHD Alameda, and SCMR Properties are the owners of the Property and lease said Property to Mobile Mini as their tenant; and WHEREAS, Mobile Mini, by way of JHD Alameda, and SCMR Properties, has also agreed to participate in one or more Community Facilities Districts (the "CFD") to pay for on- going costs associated with the Project in the categories of Landscape Maintenance, Street Sweeping and Sidewalk Cleaning and Maintenance, Sheriff Service, and Street Maintenance. The CFD amounts shall be in addition to the DIF; and WHEREAS, this Agreement furthers Goal TI -1 of the General Plan, to "[m]inimize impacts associated with truck traffic through the City, as well as the truck parking locations"; and WHEREAS, this Agreement furthers Goal TI -2 of the General Plan, to "provide a sustainable, safe, convenient and cost -effective circulation system to serve the present and future transportation needs of the Carson community"; and WHEREAS, this Agreement furthers Goal T1-7 of the General Plan, to "Provide improved aesthetic enhancements to and maintenance of the City's transportation corridors". NOW, THEREFORE, for the purposes set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, the Parties hereby agree as follows: TERMS 1. ]Incorporation of Recitals. The Parties hereby incorporate the Recitals as though fully set forth herein. 2. Mobile Mini Responsibility for DIF Amount. Mobile Mini shall be responsible for payment of one-time impact fees of $807.56/truck parking space. The Project contemplates the modification, construction, and operations of an existing container storage facility and the addition of three (3) modular office units totaling 6,480 square feet, an 11,880 square foot -35 foot high maintenance canopy, and 500 truck parking spaces located on the Property. Based on the number of parking spaces for the Project, Mobile Mini will be responsible for development impact fees in an amount equal to $807.56 per truck parking space, for a total development impact fee of $403,780.00 (the "DIF Amount"), provided that if the number of truck parking spaces in the Project increases or decreases in size, the DIF Amount will be adjusted accordingly at the same rate. The DIF Amount payable for the Project shall be calculated based on the foregoing rate regardless of any changes in the standard development impact fee rates charged by the City from time to time. Mobile Mini shall submit payment of the DIF Amount prior to the issuance of building permits. No building permits shall be issued prior to the full payment of the DIF Amount. 2.1 Deposit. With respect to the DIF Amount, City acknowledges receipt of a $50,000.00 deposit received from Mobile Mini on or about December 5, 2017 (the "Deposit"). The City shall apply the Deposit towards the DIF Amount due hereunder. Interest accruing upon the Deposit shall inure to and be created for the benefit of the City. 3. CFD Formation and Participation 3.1 Citywide CFD. On September 18, 2018, the City initiated the process to form a citywide CFD to finance the ongoing costs of the following: law enforcement, street and sidewalk maintenance, landscape maintenance, street sweeping and sidewalk cleaning, and other eligible maintenance and service costs of properties within the City (the "Master CFD") by adopting Resolution No. 18-083, a resolution of intention to establish the City of Carson Community Facilities District No. 2018-01 (Maintenance and Services). On November 7, 2018, a special election was held to consider the formation of the Master CFD. Upon landowner approval, the City of Carson Community Facilities District No. 2018-01 (Maintenance and Services) was subsequently formed on November 7, 2018 with the adoption of Resolution No. 18-119 as the Master CFD. The Master CFD contemplates that the City will annex properties from time to time into the Master CFD to fund CFD Services, as that term is defined herein, by unanimous written consent of property owners or as otherwise permitted by the Mello -Roos Community Facilities Act of 1982 (the "Act"), which properties may be annexed as a "Tax Zone" or otherwise with special taxes related to such properties to be levied on the property pursuant to the Act. 3.2 Project Impacts. Mobile Mini, JHD Alameda, and SCMR Properties understand that there is an impact on the CFD Services, as that term is defined herein, provided by the City in connection with and as a result of the Project. By entering into this Agreement, Mobile Mini, JHD Alameda, and SCMR Properties agree that the Property shall annex to the Master CFD and be subject to the special taxes described in this Agreement. Mobile Mini, JHD Alameda, and SCMR Properties agree that they will submit or cause the appropriate party to submit a unanimous approval letter that consents to the annexation of the Property to the Master CFD as a separate Tax Zone or vote to join the Master CFD, as applicable. The unanimous approval letter will be in a form approved by the City and fully executed by the Property owner. The foregoing signed unanimous approval letter shall be due to the City prior to issuance of building permit. 3.3 Inclusion of Property in the Master CFD. By entering into this Agreement, Mobile Mini, JHD Alameda, and SCMR Properties have agreed that the Property shall be subject to Special Assessments through the Master CFD (the "Property's Special Assessment") which may include one or more of the specific categories of maintenance and services provided pursuant to the Master CFD (i.e, Landscape Maintenance, Street Sweeping and Sidewalk Cleaning and Maintenance, Sheriff Service, and Street Maintenance, which are collectively referred to herein as the "CFD Services"). The Special Assessments are listed on Exhibit "A" and its attachments (the "Exhibit "A" Costs"). For greater clarity, Mobile Mini's, JHD Alameda's, and SCMR Properties' obligation to pay the Property's Special Assessment shall be capped at the amount set forth in Attachment 1 to Exhibit "A" (Maximum Special Tax Rates) for the Property, which is subject to the annual Tax Escalation Factor. 3.4 Mobile Mini's, JHD Alamedn's, and SCMR Properties' Responsibility Relative to the Master CFD. Mobile Mini, JHD Alameda, and SCMR Properties shall participate, without unreasonable delay, in CFD annexation proceedings as needed to implement this Agreement. Unreasonable delay includes but is not limited to failure to reasonably participate in proceedings as necessary to annex the Property into the Master CFD. Failure to reasonably participate in such proceedings for a period of 6 months from the commencement of such proceedings will constitute a rebuttable presumption that Mobile Mini, JHD Alameda, and/or SCMR Properties is unreasonably delaying the proceedings, but only if Mobile Mini, JHD Alameda, and SCMR Properties is the sole cause of the entirety of that delay. 3.5 Costs of Annexation of Property into Master CFD. For greater clarity and in connection with the development application packet submitted to the City, Mobile Mini, JHD Alameda, and SCMR Properties shall reimburse City for reasonable costs and fees related to processing all documents related to the annexation of the Property into the Master CFD (the "City Costs"). City Costs include, but are not limited to: attorneys' fees and staff time required for the drafting this Agreement, as well as any other agreements and documents that the City deems necessary for the implementation of the Project; all costs related to the formation or annexation into, and administration of the CFD as it relates to the Project, including but not limited to consultant and engineering costs, staff time, and attorneys' fees; all costs related to the processing of the entitlements necessary for the Project, including but not limited to staff time, environmental consultants, and attorneys' fees; and any other fees and costs deemed necessary by the City in order to effectuate the annexation of the Property into the Master CFD. City Costs will be in addition to the obligation of Mobile Mini, JHD Alameda, and SCMR Properties to indemnify, defend, and hold harmless City, pursuant to Section 7, below. To that end, Mobile Mini, JHD Alameda, or SCMR Properties shall deposit with the City initial sums of $6,000 (Conditional Use Permit — Industrial Uses) and $10,000 (Site Plan and Design Overlay Review) against which any City Costs will be drawn down (the "City Costs Deposits"). If, prior to the annexation of the Property into the Master CFD, the balance of the City Costs Deposits cumulatively fall below 20% of the initial deposits or $3,200, Mobile Mini, JHD Alameda or SCMR Properties shall make additional deposits in accordance with the last paragraph of this Section 3.5. The City acknowledges receipt of the initial City Costs Deposits of $6,000.00 received from Mobile Mini on or about March 27, 2017 for the Conditional Use Permit — Industrial Uses and $10,000.00 on or about January 8, 2018 for the Site Plan and Design Overlay Review. Interest accruing upon the City Costs Deposits shall inure to and be created for the benefit of the City. Mobile Mini, JHD Alameda, or SCMR Properties shall make additional deposits to the City for City Costs within 10 days of City's written request. City's written requests for additional deposits shall state what costs have been incurred to date, additional costs anticipated, and how City intends to apply any needed additional deposits. If the total City Costs Deposits exceed the actual City Costs, City shall refund the difference as soon as City determines the amount of such excess. 4. Default by Mobile Mini; Remedies. 4.1 Mobile Mini, JHD Alameda, and SCMR Properties shall be responsible for complying with all the provisions of this Agreement. In the event that City must enforce any of the provisions of this Agreement: a. City shall give notice to Mobile Mini, JHD Alameda, and SCMR Properties of any default and the reasons for such default. The notice shall include a reasonable timeframe in which Mobile Mini or JHD Alameda, and SCMR Properties may cure the default. b. Upon Mobile Mini's or JHD Alameda's, and SCMR Properties' failure to cure the default within the time provided in the notice of default: (i) The City may immediately issue a stop -work order on the Project and may take such further action as the City deems appropriate, including denial, suspension, or revocation of Mobile Mini's permits and/or land use entitlements; and (ii) The City may seek judicial enforcement of any provision of this Agreement, including but not limited to, recovering amounts payable to City as DIF or CFD Assessment, and obtaining specific performance. 4.2 Payment in Lieu of Meeting the Condition. Mobile Mini acknowledges the condition of annexing the Property into the Master CFD is a voluntary act and hereby agrees to such condition as an alternative method to mitigate the additional impact on public services and maintenance costs within the City due to its Project. Given the foregoing, it may be extremely difficult or impractical to determine the actual costs to mitigate negative fiscal impacts if, for whatever reason, some or all of the Project is completed and the Property is not annexed into the Master CFD. In the event that annexation does not occur, then prior to Building Permit issuance, Mobile Mini shall pay to the City a one-time payment of Five Hundred Forty Seven Thousand Five Hundred Dollars ($547,500), which is the amount the Master CFD would generate from the Property, for the benefit of City, to mitigate the City's additional public services and maintenance costs over a 50 -year period. If Mobile Mini pays the foregoing payment and if for any reason the Building Permit is not issued, then the City shall promptly refund such payment to Mobile Mini within thirty (30) days after written request therefor. 4.3 Reserved. 4.4 Code )enforcement. This section will not be interpreted to curtail any of the City's remedies at law or equity against Mobile Mini, JHD Alameda, and SCMR Properties for any violation of its codes in their use of the Property, nor shall it be interpreted as a waiver of any defense of Mobile Mini. 5. Additional Taxes, Fee, and Charges. Except as provided in Section 3.3 above, Mobile Mini shall pay all normal and customary fees and charges applicable to all permits necessary for the Project, and any taxes, fees, and charges hereafter imposed by City in connection with the Project which are standard and uniformly -applied to similar projects in the City. &. Term. The rights and obligations granted, created and made herein, including without limitation, the covenants, conditions, restrictions, charges and limitations, shall run with the Property and shall be binding upon all persons having any right, title or interest in the Property, or any part thereof, their heirs, successive owners and assigns; and shall inure to the benefit of the City and its successors and assigns and successors in interest; provided, however, in the event that by the date which is twelve years from the Effective Date either (i) the Property has not been annexed into the Master CFD or (ii) Mobile Mini has not paid the one-time payment as set forth in Section 4.2 above, then this Agreement shall expire and be of no further force or effect. 7. Indemnification. 7.1 _Indemnification and Hold Harmless. a. Non -liability of City. The Parties acknowledge that there may be challenges to the legality, validity, and adequacy of this Agreement in the future; and if successful, such challenges could delay or prevent the performance of this Agreement and the development of the Project. b. Participation in Litigation: Indemnit . Mobile Mini, JHD Alameda, and SCMR Properties agree to indemnify, protect, defend, and hold harmless the City and its officials, officers, employees, agents, elected boards, commissions, departments, agencies, and instrumentalities thereof, from any and all actions, suits, claims, demands, writs of mandamus, liabilities, losses, damages, penalties, obligations, expenses, and any other actions or proceedings (whether legal, equitable, declaratory, administrative, or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to, arbitrations, mediations, and other such procedures) asserted by third parties against the City that challenge, or seek to void, set aside, or otherwise modify or annul, the action of, or any approval by, the City for or concerning this Agreement, and any and all discretionary acts by the City or entitlements relating to the Project (including, but not limited to, reasonable attorneys' fees and costs) (herein the "Claims and Liabilities") whether such Claims and Liabilities arise out of planning and zoning laws, the Subdivision Map Act, Code of Civil Procedure Sections 1085 or 1094.5, or any other federal, state, or local statute, law, ordinance, rule, regulation, or any decision of a court of competent jurisdiction. In the event any action for any Claims and Liabilities is brought against the City and/or related parties, upon City's notification to Mobile Mini or JHD Alameda, and SCMR Properties of the pendency of such action, Mobile Mini, JHD Alameda, and SCMR Properties shall make a minimum deposit sufficient to pay all of Mobile Mini's, JI -ID Alameda's, and SCMR Properties' indemnification obligations for the following 90 days, which includes legal costs and fees anticipated to be incurred as reasonably determined by the City. Mobile Mini, JHD Alameda, and SCMR Properties shall make deposits required under this section within 30 days of the City's written request. At no point during the pendency of such claim or suit, shall the minimum balance of the deposit fall below Fifteen Thousand Dollars ($15,000). Upon conclusion of such claim or suit, including any appeals, any remaining deposit shall be refunded to the depositing Party. If Mobile Mini, or JHD Alameda and SCMR Properties fails to timely pay such funds, the City may abandon the action without liability to Mobile Mini or JHD Alameda and SCMR Properties and may recover from Mobile Mini, JHD Alameda, and SCMR Properties any attorneys' fees and other costs for which the City may be liable as a result of abandonment of the action. It is expressly agreed that the City shall have the right to utilize the City Attorney's office or use other legal counsel of its choosing. Mobile Mini's, JHD Alameda's, and SCMR Properties' obligation to pay the defense costs of the City shall extend until final judgment, including any appeals. City agrees to fully cooperate with Mobile Mini, JHD Alameda, and SCMR Properties in the defense of any matter in which Mobile Mini, JHD Alameda, and SCMR Properties is defending and/or holding the City harmless. The City may make all reasonable decisions with respect to its representation in any legal proceeding, including its inherent right to abandon or to settle any litigation brought against it in its sole and absolute discretion. C. Exception,. The obligations of Mobile Mini, JHD Alameda, and SCMR Properties under this Section shall not apply to any claims, actions, or proceedings arising through the sole negligence or willful misconduct of the City, its members, officers, or employees. d. Effect if Project Terminated. If, as a result of any legal challenge, the development of the Project is fully terminated, after full accounting of all outstanding invoices of consultants, attorneys and city staff time, all unused funds deposited with the City by Mobile Mini, .AHD Alameda, and SCMR Properties shall be refunded to the depositing Party upon written request by the depositing Party. If the Project is subsequently allowed to start during the term of this Agreement, the refunded funds shall be returned to the City and this Agreement shall be enforced in full effect, prior to the issuance of any building permits. 7.2 Period of Indemnification. The obligations for indemnity under this Section 7 shall begin upon the Effective Date and, for those claims filed before termination, shall survive termination of this Agreement. 8. Relationship Bei<veen the Parties. The Parties hereby mutually agree that this Agreement shall not operate to create the relationship of partnership, joint venture, or agency between City and Mobile Mini, or JHD Alameda and SCMR Properties. Nothing herein shall be deemed to make Mobile Mini, or JHD Alameda and SCMR Properties an agent of City. 9. Authority to Enter Agreement. Mobile Mini, JHD Alameda, and SCMR Properties hereby warrant that they have the legal capacity to enter into this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 10. Notices. All notices, demands, invoices, and communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice: To City- City of Carson 701 East Carson Street Carson, CA 90745 Attn: Saied Naaseh, Community Development Director Email: snaaseh@carson.ca.us Copy to: Aleshire & Wynder, LLP 18881 Von Karman Ave. Suite 1700 Irvine, CA 92612 Fax: 949-223-1180 email: sks@awattomeys.com Attn: Sunny Soltani, City Attorney To JHD Alameda: JHD Alameda 22 Brandt Drive Moraga, California 94556 Attn: Louis B. Desser Email: lou.desser@gmail.com To SCMR Properties: SCMR Properties 9663 Santa Monica Boulevard, #214 Beverly Hills, CA 90210 Attn: Steven D. Chlavin Email: stevenc@desser.com To Mobile Mini: Mobile Mini, Inc. 4646 E. Van Buren Street Suite 400 Phoenix, AZ 85008 Attn: Karla Wahlgren Email: realestate@mobilemini.com and cminer@mobilemini.com Copy to: Kimley-Horn and Associates, Inc. 765 The City Drive Suite 200 Orange, CA 92868 Attn: Jacob Glaze, PE, Project Manager Email: Jacob.glaze@kimley-horn.com Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as of the date and time sent; by messenger, as of the date delivered; by U.S. Mail first class postage prepaid, as of 72 hours after deposit in the U.S. Mail; and by email, upon the sender's receipt of an email from the recipient acknowledging receipt. 11.Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 12. Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days, or period for performance shall be deemed calendar days and not work days, provided, however that any deadline that falls on a weekend or holiday shall be extended to the next City business day. All references to Mobile Mini, JHD Alameda, and SCMR Properties include all personnel, employees, agents, and contractors of Mobile Mini, JHD Alameda, and SCMR Properties, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and case of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 13. Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 14. Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual right by custom, estoppel, or otherwise. 15. Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation. 16. No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 17. Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 18. Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties' activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Los Angeles, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Mobile Mini expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394. 19. Time is of the Essence. Time is of the essence to this Agreement. 20. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original and which collectively shall constitute one instrument. 21. Entire Agreement. This Agreement, along with its exhibits, contains the entire agreement between the Parties and, supersedes any prior oral or written statements or agreements between the Parties with respect to the subject matter of this Agreement. 22. Subject to Approval. Although Mobile Mini may have signed this Agreement before receiving its final CUP approvals from the City, this Agreement shall not take effect until Mobile Mini receives its final CUP approval from the City at which time, the City will sign the Agreement and. it will become immediately effective. [SIGNATURES ON NEXT PAGE] IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY: CITY OF. 9�RSON,/�j�alifornia municipal BY: Sharon L. Landers, City Manager Gause-Aldana, City Cl lit 01007,00181506805 5 MOBILE MINI: Mobile Mini, Inc., a Delaware corporation By: Van Welch Executive Vice President & CFO Christopher J. Miner Senior Vice President & General Counsel ,THD ALAMEDA: JHD Alameda, LLC., a ifornia limited liability company ' Bye-�--. •�{�' Louis B. Desser, Manager SCMR PROPERTIES: SCMR Properties, LLC., a California limited liability company By: Steven D. Chlavin, Manager Two corporate officer signatures required when party is a corporation, with one signature required from cacti of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial OMccr or any Assistant Treasurer. SIGNATURES SHALL, BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S BUSINESS ENTITY. ii 01007 00161506805.5 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Los Angeles ) On �� 2 , before me, i.,+,, Gte'tce .4I (PAP(-) II __ (insert name of notary) Notary Public, personally appeared 1A0 V u b - -x,55 < _____ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS m hand and official seal.HECTOR I GONZALEZ µ' Notary Public . California Los Angeles County Commission 0 2257647 My Comm. Expir Oct 2022 Signature MOBILE MINI: Mobile Mini, Inc., a Delaware corporation By: Van Welch Executive Vice President & CFO By: Christopher J. Miner Senior Vice President & General Counsel JHD ALAMEDA: JHD Alameda, LLC., a California limited liability company By:_ Louis B. Desser, Manager SCMR PROPERTIES: SCMR Properties, LLC., a California limited liabilitTcpan, By: d__, teven D. Chlavin, Manager Two corporate officer signatures required when party is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Ofrker or any Assistant Treasurer. SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S BUSINESS ENTITY. 13 01007.00181506805.5 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the Identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of Los Angeles On 6 Eo 17 z0-( before me, Yre;6,,, s -y A,= 6t. (insert name of notary) Notary Public, personally appeared S� eV_ n V. C A I-. who proved to me on the basis of satisfactory evidence to be the person{.s j whose name/are' subscribed to the within instrument and acknowledged to me that:Wsb6th�r executed the same in W/thy authorized capacity(iA, and that bydOW/thpif signature(.' on the instrument the person(2), or the entity upon behalf of which the person(q acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ,,— -9 (Seal) J11111111111111111111111111111111r111` PRESTON S. EDWARDS w a s� COMMISSION #2192692 cp NOTARY PUBLIC -CALIFORNIA LOS ANGELES COUNTY My Commission Expires May 18, 2021 '1111111111x111Ir1111111IIIIIIIIIIrrllr MOBILE MINI: Mobile Mini, Inc., a Delaware corporation By: —Z—) ��e Van Welch M. President & CFO Senior Vice 17resident & General Counsel 411717 .VUTTW1T.V JHD Alameda, LLC., a California limited liability company By:_ Louis B. Desser, Manager SCMR PROPERTIES: SCMR Properties, LLC., a California limited liability company By: Steven D. Chlavin, Manager Two corporate officer signatures required when party is a corporation, with one signature required from each of the following groups: 1) Chairman or the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER'S BUSINESS ENTITY. 13 01007.00181506805.5 ARIZONA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of thatdocument. STATE OF ARIZONA COUNTY OF MARICOPA ,, e On�oA7 , 2019 before me,� 'tf ( ... personally appeared 0 -'i - proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/am subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Arizona that the foregoing paragraph is true anrl vnrrvrt I WITNESS my hand Signature: Shirley A Pullen Notary Public Maricopa County, Arizona My Comm. Expires 06-08-2022 OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) 23 01007.0018/506805.5 DESCRIPTION OF ATTACKED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE ARIZONA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity ofthatdocument. STATE OF ARIZONA COUNOF MARICOPA On YT' 91 ._ , 2019 before me 1 personally appeared ✓ - proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) istare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Arizona that the foregoing paragraph is true and correct. Shirley A Pullen WITNESS mhsn d'o ial Notary Public Signature: Mancopa County, Anzona My Comm. Expires 06-08-2022 OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER 24 01007.0016=B805.5 DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT SIGNERS) OTHER THAN NAMED ABOVE TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) 24 01007.0016=B805.5 DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT SIGNERS) OTHER THAN NAMED ABOVE EXHIBIT "A" CITY OF CARSON Community Facilities District No. 2018-01 (Maintenance and Services) RATE AND METHOD OF APPORTIONMENT TAX ZONE NO. 5 The Special Tax shall be levied in Tax Zone No. 5 in accordance with the Rate and Method of Apportionment of Special Tax for City of Carson Community Facilities District No. 2018-01 (Maintenance and Services) pursuant to the rate for Tax Zone No. 5 set forth in Attachment No. 1 thereto. The Rate and Method of Apportionment of Special Tax is attached hereto and incorporated herein by this reference. 01007.00 1 815 0680 5.4 CITY OF CARSON Community Facilities District No. 2018-01 (Maintenance and Services) RATE AND METHOD OF APPORTIONMENT OF SPECIALTAX A Special Tax shall be levied and collected in City of Carson Community Facilities District No. 2018-01 (Maintenance and Services) (the "District") each Fiscal Year, in an amount determined by the application of the procedures described below. All of the Taxable Property (as defined below) in the District, unless exempted by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. 1. DEFINITIONS The terms used herein shall have the following meanings: "Accessory Unit" means a secondary residential unit of limited size (e.g., granny cottage, second unit) that shares a Parcel with a Unit of Single Family Detached Property. "Acreage" or "Acre" means that acreage shown on the Assessor's Parcel Map or in the Assessor's Data for each Assessor's Parcel. In the event that the Assessor's Parcel Map or Assessor's Data shows no acreage, the Acreage for any Assessor's Parcel shall be determined by the District Administrator based upon the applicable condominium plan, final map or parcel map. If the preceding maps for a land are not available, the Acreage of such land area may be determined utilizing available spatial data and geographic information systems (GIS). "Act" means the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Act of the State of California. "Administrative Expenses" means the following actual or reasonably estimated costs directly related to the administration of the District: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Taxes, including any charges levied by the County Auditor's Office, Tax Collector's Office or Treasurer's Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Taxes; and the costs of the City or designee related to an appeal of the Special Tax. Administrative Expenses shall also include costs related to the formation of the District and of annexing territory to the District as well as any amounts advanced by the City for any administrative purposes of the District and an allocable share of the salaries of City staff and an allocable portion of City overhead costs relating to the foregoing, or costs of the City in any way related to the establishment or administration of the District. "Annual Services Costs" means the amounts required to fund services authorized to be funded by the District. 15 01007.00181506805.5 "Annual Special Tax Requirement" means that amount with respect to the District determined by the Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs for each Tax Zone, (3) any amount required to establish or replenish any reserve or replacement fund established in connection with the District, and (4) reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "Assessor's Data" means Acreage or other Parcel information contained in the records of the County Assessor. "Assessor's Parcel" or "Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel Number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by Assessor's Parcel Number. "Assessor's Parcel Number" means, with respect to an Assessor's Parcel, that number assigned to such Assessment's Parcel by the County for purposes of identification. "Association Property" means any property within the boundaries of the District which is owned by a homeowners' or property association, including any master or sub -association. "Boundary Map" means that map recorded with the County recorder's office on September 20, 2018 in Book 194 at Pages 88 & 89 as Document Number 20180967743. "City" means the City of Carson, County of Los Angeles. "Council" means the City Council of the City, acting as the legislative body of the District. "County" means the County of Los Angeles, California. "Developed Property" means, in any Fiscal Year, all Taxable Property in the District for which a building permit for new construction was issued by the City prior to June 1 of the preceding Fiscal Year. "District" means the City of Carson Community Facilities District No. 2018-01 (Maintenance and Services), and, when applicable, any annexed Assessor's Parcels. "District Administrator" means an official of the City, or designee or agent or consultant, responsible for administering the Special Tax in accordance with this Rate and Method of Apportionment. 01007.00181506805.5 "Exempt Property" means all property located within the boundaries of the District which is exempt from the Special Tax pursuant to Section V below. "Expected Special Tax Revenue" means the amount of revenue anticipated to be collected in each Tax Zone, adjusted annually by the Tax Escalation Factor. "Finance Director" means the official of the City who is the chief financial officer or other comparable officer of the City or designee thereof. "Fiscal Year" means the period from July Sst of any calendar year through June 3011, of the following calendar year. "Future Voluntary Annexation Area" means the area designated for future voluntary annexation to the District as shown in the District Boundary Map, as may be amended from time to time. "Maximum Special Tax Rate" means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section III. "Multi -Family property" means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit has been issued for construction of a residential structure with five or more Units that share a single Assessor's Parcel Number, are offered for rent to the general public, and cannot be purchased by individual homebuyers. "Non -Residential Property" means all Developed Property that is not used for people to live in, and does not include Public Property. "Proportionately" means, in any Fiscal Year, that the ratio of the actual Special Tax to the Maximum Special Tax Rate is equal for all Assessor's Parcels authorized to be levied in that Fiscal Year within each respective Tax Zone. "Public Property" means any property within the boundaries of the District owned by, Irrevocably offered or dedicated to, or for which an easement for purposes of public or private road right-of-way making the property unusable for any other purpose has been granted to the federal government, the State of California, the County, the City, or any local government or other public agency. "Single Family Attached Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building permit or use permit was issued for construction of a residential structure consisting of two or more Units that share common walls, have separate Assessor's Parcel Numbers assigned to them (except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), and may be purchased by individual homebuyers (which shall still be the case even if the Units are purchased and subsequently 17 01007.GW 81506805.5 offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125. "Single Family Detached Property" means, in any Fiscal Year, all Parcels of Developed Property for which a building permit was issued for construction of a Unit that does not share a common wall with another Unit. "Special Tax" means the amount levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Annual Special Tax Requirement. "Tax Escalation Factor" means a factor that will be applied annually after Fiscal Year 2018/19 to increase the Maximum Special Tax Rates shown in Section 111 and as specified for each Tax Zone. "Tax Zone" means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All of the Taxable Property within the District at the time of its formation Is within Tax Zone No. 1 as specified on the District Boundary Map. Additional Tax Zones may be created when property is annexed to the District, and a separate Maximum Special Tax shall be identified for property within the new Tax Zone at the time of such annexation. The Assessor's Parcels included within a new Tax Zone when such Parcels are annexed to the District shall be identified by Assessor's Parcel number in the Unanimous Approval Form that is signed by the owner(s) of the Parcels at the time of annexation, or any proceeding for annexation to the District. "Taxable Property" means all Parcels within the boundary of the District that are not Exempt Property, exempt from the Special Tax pursuant to the Act or Section V below. "Unanimous Approval Form" means that form executed by the record owner of fee title to a Parcel or Parcels of Taxable Property annexed into the District that constitutes the property owners approval and unanimous vote in favor of annexing into the District and the levy of Special Tax against his/her Parcel or Parcels pursuant to this Rate and Method of Apportionment of Special Tax. "Undeveloped Property" means all Parcels of Taxable Property that are not Developed Property. "Unit" means an individual single family detached or attached home, townhome, condominium, apartment, or other residential dwelling unit, including each separate living area within a half-plex, duplex, triplex, fourplex, or other residential structure. An Accessory Unit that shares a Parcel with a Unit of Single Family Detached Property shall not be considered a separate Unit for purposes of calculating the Special Tax, II. DETERMINATION OF TAXABLE PARCELS On or about July 1 of each Fiscal Year, the District Administrator shall determine the valid Assessor's Parcel Numbers for all Taxable Property within the District. If any Assessor's Parcel 18 01007.0018/506805.5 Numbers are no longer valid from the previous Fiscal Year, the District Administrator shall determine the new Assessor's Parcel Number or Numbers that are in effect for the current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated or otherwise reconfigured, the Special Tax rates shall be assigned to the new Assessor's Parcels pursuant to Section III. The District Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property; (iii) the Acreage or number of Units each Parcel contains; and (iv) the Annual Special Tax Requirement for the Fiscal Year. III. ANNUAL SPECIAL TAX - METHOD OF APPORTIONMENT All Taxable Property shall be subject to a Special Tax defined as follows. The Special Tax shall be levied each Fiscal Year by the District Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel of Taxable Property within the District by the method shown below. First. Determine the Annual Special Tax Requirement. Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax Rate described in Table 1 below to satisfy the Annual Special Tax Requirement. TABLE 1 SPECIAL TAX RATES —TAX ZONE NO.1 FISCAL YEAR 2018/19* Property Type Maximum Special Tax Rate Per Expected Special Tax Revenue Non -Residential Property $1,971.51 Acre $9,189.21 *On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each Tax Zone shall be increased by the percentage change in the November annualized Consumer Price Index for Los Angeles -Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax Zone No. 1. Should the total revenue for Tax Zone No. 1 not be fully realized when all Parcels in Tax Zone No. 1 are classified as Developed Property, the Special Tax rate per Acre shall be adjusted so that the Special Tax per Acre is sufficient to generate the total Expected Special Tax Revenue for Tax Zone No. 1, adjusted annually by the Tax Escalation Factor. The Maximum Special Tax Rate shall be the greater of the Maximum Special Tax Rate shown in Table 1, adjusted annually by the Tax Escalation Factor or the Special Tax Rate calculated to generate the total Expected Special Tax Revenue for Tax Zone No. 1, adjusted annually by the Tax Escalation Factor. 19 01007,00181506805.5 If a building permit has been issued after June 1 of the preceding Fiscal Year, the City may directly bill to meet the Annual Special Tax Requirement, as prorated based on the date the building permit is issued and the end of the Fiscal Year. A different Maximum Special Tax Rate may be identified in Tax Zones added to the District as a result of future annexations. IV. FORMULA FOR PREPAYMENT OF SPECIAL TAX OBLIGATIONS The Special Tax may not be prepaid. V. EXEMPTIONS Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Taxes shall be levied on (i) Public Property, (ii) Association Property, (iii) Assessor's Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement, or (iv) except as otherwise provided in Sections 53317.3 and 53327.5 of the Act. Vl. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT The City reserves the right to make minor administrative and technical changes to this document that do not materially affect the rate and method of apportioning the Special Tax. In addition, the interpretation and application of any section of this document shall be at the City's discretion. Interpretations may be made by the City by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment of Special Tax. VII. MANNER AND DURATION OF SPECIAL TAX The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of the District, and may collect delinquent Special Taxes through foreclosure or other available methods. A Special Tax shall continue to be levied and collected within the District, as needed to fund the Annual Special Tax Requirement, in perpetuity. Vlll. APPEAL OF SPECIAL TAX LEVY Any property owner may file a written appeal of the Special Tax with the District Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Taxes that are disputed, and the appellant must be current in all payments of Special Taxes. In addition, during the term of the appeal process, all Special Taxes levied must be paid on or before the payment date established when the levy was made. 20 01007,00161506805.5 The appeal must specify the reasons why the appellant claims the Special Taxes are in error. The District Administrator shall review the appeal, meet with the appellant if the District Administrator deems necessary, and advise the appellant of its determination. If the property owner disagrees with the District Administrator's decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the District Administrator or subsequent decision by the City Council requires the Special Taxes to be modified or changed in favor of the property owner, no cash refund shall be made for prior years' Special Taxes, but an adjustment shall be made to credit future Special Taxes. This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to fling any legal action by such owner. 21 01007.00181506805.5 CITY OF CARSON Community Facilities District No. 2018-01 (Maintenance and Services) ATTACHMENT 1 MAXIMUM SPECIAL TAX RATES Tax Zone APNs Maximum Special Tax Per Base Year Rate 1 7339-002-003 $1,971.51. Acre 2018/19 7316-025-061, 7316-025-062, 7316-025- 2{2} 097, 7316-025.812, 7316-025-814 $1,839.18 Acre 2019/20 5(3) 7315-010-005 $921.85 Acre TBD (1) On each July 1, commencing on July 1, 2019, the Maximum Special Tax Rate for each Tax Zone shall be increased by the percentage change in the November annualized Consumer Price Index for Los Angeles -Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax Zone No. 1. (2) On each July 1, commencing on July 1, 2020, the Maximum Special Tax Rate for each Tax Zone shall be increased by the percentage change in the November annualized Consumer Price Index for Los Angeles -Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax Zone No. 2. (3) On each July 1, commencing on July 1, L ], the Maximum Special Tax Rate for each Tax Zone shall be increased by the percentage change in the November annualized Consumer Price Index for Los Angeles -Long Beach -Anaheim for all Urban Consumers, the Tax Escalation Factor for Tax Zone No. [ ]. 22 01007.00181506805.5