remedies by Toyota, or Association; provided, however, in no event shall Association be precluded from exercising remedies if the event of default is not cured within ninety ( 90) days or otherwise become or are about to become materially jeopardized by any failure to cure a default. In the event that City fails to cure a default ( other than any failure or delay by City to make payment when due) in accordance with the provisions of this Section 13, Toyota, or Association may exercise any or all of the following remedies: ( i) institute a legal action to seek specific performance of City' s obligations under this Agreement; or ( ii) terminate this Agreement.
14. Association Default. Failure or delay by Toyota, or Association to perform or comply with any term or provision of this Agreement constitutes a default under this Agreement. City shall give written notice of default to Association, specifying the default complained of by City. If the default is reasonably capable of being cured within thirty( 30) days after such notice is received or deemed received, Toyota, or Association shall have such period to effect a cure prior to exercise of remedies by the City. If the default is such that it is not reasonably capable of being cured within thirty ( 30) days, and Toyota, or Association ( a) initiates corrective action within said 30- day period, and ( b) diligently, continually, and in good faith works to effect a cure as soon as possible, then Toyota, or Association shall have shall have such additional time as is reasonably necessary to cure the default prior to exercise of any remedies by City; provided, however, in no event shall City be precluded from exercising remedies if the event of default is not cured within ninety ( 90) days or City' s rights under this Agreement or otherwise become or are about to become materially jeopardized by any failure to cure a default. In the event that Toyota, or Association fails to cure a default in accordance with the provisions of this Section City may exercise any or all of the following remedies: ( i) institute a legal action to seek specific perFormance of the obligations under this Agreement; or ii) terminate this Agreement.
15. Waiver of Certain Damages. The parties hereto hereby agree to waive the right to lost profits, speculative, consequential, and special and punitive damages.
16. Association' s Dutv of Restoration. Association shall be responsible for the restoration of the Auto Center Message Board in accordance with the damage and destruction clauses in this Section 16.
16. 1 In case of any damage to or destruction of the Auto Center Message Board, or any part thereof, Toyota, or Association shall commence the restoration, replacement or rebuilding of the Auto Center Message Board with such alterations and additions as may be approved by the City Manager ( such restoration, replacement, rebuilding alterations and additions, together with any temporary repairs and property protection pending completion of the work being herein called " Restoration") within thirty ( 30) days of such damage or destruction or such longer time as may be reasonably approved, in writing, by the City Manager, plus any additional period reasonably determined by the City Manager to be required to obtain any Net Insurance Proceeds, as hereinafter defined, to be used to pay all or a portion of the cost of such Restoration, and shall complete such Restoration within a reasonable period of time thereafter. As used herein, the term " Net Insurance Proceeds" means the gross insurance proceeds paid by an insurer to Association for loss or damage to the Auto Center Message Board, less any and all costs and expenses ( including, but not limited to reasonable attorney fees) incurred to recover said proceeds. Association agrees to promptly commence prosecute to completion the settlement of insurance proceeds with respect to any event of damage or destruction of the Auto Center Message Board.
16. 2 Toyota, and Association agree that notwithstanding any other provision of this Agreement, upon any event of damage to or destruction of the Auto Center Message Board, Toyota, and Association shall, at their sole cost and expense, immediately take or cause to be taken such actions and to complete such work as is necessary to reasonably minimize further damage to the Auto Center Message Board pending the ultimate disposition of the Auto Center Message Board.
16. 3 Insurance proceeds which are received on account of any damage to or destruction of the Auto Center Message Board, or any portion thereof( less the costs, fees and expenses incurred in the collection thereof, including without limitation attorney' s fees and expenses) shall be applied as follows:
1. Within a reasonable time and in any event within 180 days after the damage to or destruction of the Auto Center Message Board, Toyota, and Association shall furnish, or cause to be furnished to City evidence reasonably satisfactory to City ( a) of the total cost of Restoration of the damaged or destroyed Auto Center Message Board and ( b) that the total amount of money available will, when added to the Net Insurance Proceeds received and available to pay for the Restoration, be sufficient to pay the cost of such Restoration.
2. Net Insurance Proceeds received on account of any damage to or destruction ofthe Auto Center Message Board, or any part thereof, shall be paid to Toyota, or Association or as Toyota and Association may direct from time to time, as Restoration progresses, solely to payor reimburse Toyota and Association for the cost of Restoration.
17. Citv Contract Administration. The City Manager shall administer this Agreement on behalf of City. Except as otherwise expressly provided in this Agreement, the City Manager has the authority to approve or consent to those matters in this Agreement requiring City's approval or consent and to make all other decisions on behalf of City, subject to the City Manager's retained and reserved sole and absolute discretion to seek City Council' s approval on any such matter.
18. Further pocuments. The parties hereto hereby agree to execute such other documents and to take such other action as may be reasonably necessary to further the purposes of this Agreement.
19. Time of the Essence. Time is of the essence in this Agreement.
20. Governinq Law and Venue. This Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California. The Parties each acknowledge and agree that this Agreement is entered into and is to be fully performed in the City of Industry, County of Los Angeles, State of California, and that all legal actions arising from this Agreement shall be filed in the Superior Court of the State of California in and for the County of Los Angeles, California, or the United States District Court with jurisdiction in the County of Los Angeles, California.
21. No Limitation on Citv Authoritv. Nothing in this Agreement shall be deemed to limit, modify or abridge the governmental police power or other legal authority ( whether direct or delegated) of City regarding the Property, the Auto Center Message Board, or the Association.
22. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their permitted successors and assigns.
23. Third Party Beneficiaries. The parties to this Agreement acknowledge and agree that the provisions of this Agreement are for the sole benefit of City and Association, and not for the benefit, directly or indirectly, of any other person or entity.
24. Severance. If any provision of this Agreement is determined by a court of competent jurisdiction to be illegal, invalid or unenforceable, such provision will be deemed to be severed and deleted from this Agreement as a whole and neither such provision, or its severance and deletion shall in any way affect the validity of the remaining provisions of this Agreement.
25. Counterparts. This Agreement may be executed in counterparts and when so executed, each such counterpart will constitute an original document and such counterparts will constitute one and the same agreement.
IN WITNESS WH EOF, the City and Toyota and Association have executed and entered into this A ee nt as of the date first written above.
By B : y
Name: Tim ohn V- . , RI me:
Date: [ '' /) Date: anuary 8, 2015
Puente Hills Imports City of Industry
DBA Puente Hills Toyota 15625 E. Stafford Street
17070 E. Gale Avenu 100
City of Industr , CA 745 City of Industry, CA 91744
By:
Name: ° . i:v - , 1.
Date:
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Puente Hills Auto Center Association West
17070 E. Gale Avenue
City of Industry, CA 91745
Exhibit" A"
Leqal Description of Property
Puente Hills Imports DBA Puente Hills Toyota and Scion
17070 E. Gale Avenue
City of Industry, CA 91745
Parcei # 267- 7- 9
Exhibit " B"
Aareement with EMI for Messaqe Board
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i ECTRA- MEDIA, INC.
5 ALE AGREEMENT
5 SCustomer EauiumentAddress:
5 Puente Niils Auto Center Association{ West} Puente Hilis Toyota 80 Freeway 5 17070 E. Gale Ave. Puente Hilis VW
5 City of fndustry, CA 91745 60 Freeway
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5 Product DescriotFon: Upgrade exisfing Puente Hills Toyota/ WV freeway sign co conform wrth Puente Hills Auto Center ineeway s3gns with 5 5 new 25MM LED fech o ogy. Note: Exi§ firtg 38MM display is reaching end of Iffe expectancy, which_is 1 generaUon color LED produd no longer 5 5 being manuPactured. Remove existing Puente HiilsToyota sign identification cabinet; old 38MM 96 x 272 LED d'isplay, andbrand panel faces.
Reuse e dsting pylon strudu2 and existirtg brand panel cabinet_ Fahricate and install new identification display, new brend panel faoes and 2paint poie covers. Also fabricate anC inslali full color LED tlisplay( 192 pixels high by 432 pixels long) 25mm resolution with modem and 5 5 remote coMroller, multipie charaater fonts 8 graphics, time& temperature, automatic dimming circuit and ventilation system. Does not include 5 modifieatlon or upgrade to exisling steel pylon strudurs.
Note: Af! removal,# abrica5on, installation antl pertnits to be performed by" Young Electric Sign Company`( YESCO) State ConVactors license 5 5 C457F250739.( EAAI License# 815508)
5 5 Maintenanee Contract:( Equaity dnnded between 2 Auto Deaters, listed 6elorr, Fva year facbory warranry on ail LED pa ts, 5698. 00/ month commencing upon' activation for crane labor for changing out LED parts{ LED modutes, power suppiies, redifler boards, iMerface cards, nbbon cables, temp sensor and remote controller) along with fumishing ID parts and tabor( HID metai halide lamps sockets, and batlasts) for° Puente 5 Hills Auto Center on ID portion of freevray sign along with fumishing parts and labor to maintain the brand panel portion of the sigrt Also includes preventative maintertance cails once per month over and above emergeney ralls.
Proarammina Contract: ( Equally divided beRveen 2 Auto Dealers, listed below), 5325. OD per month. Indudes daily updates, unlimited Cchanges, video grephic transfer, intemet downloads, e-maii confirtnaiions, holiday graphics, and Ad Express forms. 5 Power and Pho Bi1L( Equally divided hetween 2 Auta Deaiers, listed helow), Estimated power ta operate the lED sign is appro dmately S 5 5575.ONMo. to 5875. p0/ Mo. based on 78 hours per day of operaYion and subject to Edison' s charge per kilowatt hour. Estimated phone IDSL 5 5 $ 35. 00/Mo. Dealers to pay Edison aod Phone Company direct Electrical& Phone: Eledrical and phone Iine exists, dealers to upgrade 5 phone line fo dedicated DSL 5
Citv Fundino and Permit: indudes caordinating and processing 108°!c City Fundmg and huilding petrniL Deliverv: 90- 120 days fram date 5 permits are obtained and dovm paymenU€unding is received. Note: Actual buildfig permR fees to be 611ed separetely to Toyota and WV_ 5 Contirtqencies:
5 t) This agreement is confingent upon EMI obtaining 100% funding from the Cify of industry with each dealer approvmg terms of funding agreement 5
5 2) Auto Dealers res onsi@te for ongoing maintenance, insurenee, programming, power, and DSL phone line. 5 a City shait give the sign to the dealers.
5 5
5 5 oepas c: 5
5 Equipment 5596, 829.00 5298, 474.5D 50°k down upan Ciry approval 1 funding 5 5 AppfirableSalesta c Intludetl St45, 20i25 Uponaetiveryofdisplay 5 5 Total With Tmc: 5595,829.00 5149. 20725 Upon coinpletion 5 5 5
5 IN WITNESS WHEREOF, Owner and EMI have executed this agreement this 25`" day of Aoril, 2013. 5 5 S 5 Customer. 5
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Exhibit " C"
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EXHIBIT "4"
TO
LICENSE AGREEMENT
2012 Sign Usage and Easement Purchase Agreement at 17340 East Gale Avenue [Attached behind this cover page]
SIGN USAGE AND EASEMENT PURCHASE AGREEMENT
17340 EAST GALE AVENUE]
THIS SIGN USAGE AND EASEMENT PURCHASE AGREEMENT [ 17340 EAST GALE AVENUE] ( this " Agreement'), dated as of August 1, 2012 ( the " Effective Date "), is entered into by and among ALEXANDER YU -JEN HWANG and ROSE SHU -HUI CHIAO HWANG, husband and wife as community property with right of survivorship, dba Puente Hills Chrysler Jeep ( " Puente Hills Chrysler Jeep "), LEO HOFFMAN CHEVROLET INC., a California corporation, dba Puente Hills Chevrolet ( " Puente Hills Chevrolet'), PH DIVERSIFIED, LLC, a California limited liability company, dba Puente Nissan ( " Puente Nissan "), and UNITED BROTHERS MOTOR GROUP, INC., a California corporation, dba Super Ford ( " Super Ford ") (each a " Member" and collectively, the " Members "), the CITY OF INDUSTRY, a municipal corporation ( the " City "), and PUENTE HILLS MOTORS, INC., a Delaware Corporation ( " Owner ").
RECITALS
This Agreement is entered into with reference to the following facts:
A. Owner holds fee simple title to that certain real property located in the City and which is more particularly described on Exhibit A attached hereto and made a part hereof ( the Owner Parcel ").
B. The Members own and operate automobile dealerships within an area located in the City commonly known as the Puente Hills Auto Center, and more particularly located south of Gale Avenue and east of Azusa Avenue (the " Auto Center ").
C. The Members ( not including Super Ford) and Owner constitute all of the current parties to that certain Construction, Operation and Reciprocal Easement Agreement For Puente Hills Automotive Plaza dated April 7, 1992 and recorded as Instruments No. 92- 1400544 and No. 92- 1400554 in the official records of Los Angeles County, California ( the " CC & Rs ").
D. Owner, Puente Nissan and Puente Hills Chevrolet are the owners of that certain existing electronic readerboard ( the " Sign ") located on the Owner Parcel, and as described in Exhibit B attached hereto and made a part hereof and have conveyed or will convey their interest in the Sign to the Association (as defined below).
E. The Members have entered into that certain Puente Hills Auto Dealers Association Readerboard Participation Agreement dated as of August 1, 2012 ( " Association Agreement ") which Agreement creates the Puente Hills Auto Dealers Association ( the Association "), provides for the Association to make certain improvements to the Sign ( the Improvements ") and provides for the Association to maintain the Sign in the future. The Members may also hereinafter be referred to as the " Association Members ".
F. The Members have entered into that certain Sale Agreement ( "Sale Agreement') dated as of June 9, 2011 with Electra - Media, Inc., a California corporation ( the " Contractor "), by which the Contractor has agreed to undertake and complete the Improvements for the sum of
Five Hundred Ninety -Six Thousand Eight Hundred Twenty -Nine Dollars ($ 596, 829. 00) ( the Cost of Improvements ").
G. The City is prepared to reimburse the Members for the Cost of Improvements, and in consideration of such payment shall have the right to use the Sign and the right, but not the obligation, to maintain and repair the Sign if the Members fail to do so as set forth in Section.
H Owner is prepared to grant to the Members, any future members under the CC & Rs that are also members of the Association and the City a non - exclusive placement, access, maintenance and use easement over the Owner Parcel and the right to display messages and information regarding public events and other matters of public interest on the Sign, all as more particularly described herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE 1 GRANT OF EASEMENT.
Section 1. 1 Title to the Owner Parcel. Owner represents and warrants to the City that it holds fee simple title to the Owner Parcel as of the Effective Date.
Section 1. 2 Grant of Easement. Owner agrees to grant to the Members, any future members under the CC &Rs and to the City, prior to the initial disbursement of monies by the City in reimbursement of the Cost of Improvements, a non - exclusive easement in gross over the Owner Parcel for the purposes of placing, accessing, maintaining and using the Sign as provided herein ( the " Easement "). The Easement shall remain in effect for a term of twenty ( 20) years from the date of the recording of the Easement ( " Term "), and the Easement shall be created and granted pursuant to the Easement Agreement attached hereto as Exhibit C and made a part hereof.
Section 1. 3 Taxes. The Owner shall pay, or cause to be paid, when due all real property taxes and assessments assessed or levied on the Owner Parcel. Nothing herein contained shall be deemed to prohibit the Owner from contesting the validity or amounts of any tax assessment, encumbrance or lien on the Owner Parcel, or to limit the remedies available to it in respect thereto.
Section 1. 4 Recording. The Members shall bear all costs of recording the Easement.
Section 1. 5 Transfer. Puente Hills Chrysler Jeep, Puente Hills Chevrolet, Puente Nissan and Owner hereby covenant and agree that in the event that they sell and/or transfer any property that is subject to the CC &Rs, the purchaser and/ or the transferee shall agree in writing to be bound by and shall ratify the terms of this Agreement. At such time as such future purchaser and /or transferee ratifies and becomes bound by this Agreement, the such applicable party shall be released from all obligations and liability under this Agreement except for any obligations and /or liability that accrued prior to such purchase and /or transfer.
P1
Section 1. 6 Enforcement. The parties hereto shall have the right to enforce the provisions of this Agreement or any amendment thereto, including the right to recover damages, penalties, or fees for such violation.
Section 1. 7 Limited Agreement. Owner is entering into this Agreement only as to this Article 1 and is not a party to the remainder ofthe Agreement.
ARTICLE 2 INSTALLATION OF IMPROVEMENTS
Section 2. 1 Cost of Acquisition and Installation of Improvements. All costs of acquiring and installing the Improvements will be incurred and paid solely by the Members pursuant to the terms of the Sale Agreement. The Members covenant and agree that the Sale Agreement will not be amended, modified or terminated without the prior written consent of the City, which consent may be granted or withheld in the City' s sole and absolute discretion. The Members further covenant and agree that all Improvements will be acquired and installed in conformance with all applicable laws including all federal, state and local occupation, safety and health laws, rules, regulations and standards. Without limiting the foregoing, Members shall acquire and install the Improvements in full compliance with all applicable provisions of state, federal and local prevailing wage laws and all rules and regulations promulgated pursuant thereto. The Members agree to indemnify, defend and hold City harmless from and against any cost, expense, claim, charge or liability relating to or arising directly or indirectly from any breach or failure of any Member or Members or their respective contractors or agents to comply with such laws, rules or regulations. The indemnification obligations described in this Section 1. 3 shall survive the termination of this Agreement.
Section 2. 2 Costs, Expenses, Taxes, Assessments, Encumbrances and Liens. The Members shall pay, or cause to be paid, when due all taxes other than real property taxes and assessments that are assessed or levied on the Sign and all other improvements located thereon.
It is expressly understood and agreed by Members that except for the payment of the City Consideration ( as hereinafter defined and as provided for herein), the City shall not under any circumstance be required to pay any amount with respect to the costs and/ or expenses ( whether direct or indirect) associated with the purchase and/ or installation of the Improvements or the maintenance, operation or replacement of the Improvements and/ or the Sign.
Section 2. 3 Sign Fee. The Association Members ( exclusive of Super Ford and any lessee of the Owner Parcel) hereby consent and agree to pay to Super Ford or the owner of the Owner Parcel the sum of $650.00 per month for the term of the Easement ( " Sign Fee "). So long as Super Ford is leasing the Owner Parcel, the Sign Fee shall be paid to Super Ford. If Super Ford' s lease for the Owner Parcel terminates or expires prior to the expiration of the term for the Easement, then upon the expiration or termination of the Super Ford lease, the Sign Fee shall be paid to the owner of the Owner Parcel for the remainder of the term of the Easement. Payment shall be made on the first day of each month, commencing the first day of the month after the recording of the Easement. In the event that the Sign Fee is not timely paid by the Association Members ( exclusive of Super Ford and any lessee of the Owner Parcel), the City shall have the right, but not the obligation, to pay the Sign Fee to Super Ford or the owner of the Owner Parcel, as applicable, and the City shall be promptly reimbursed by such Association Members exclusive of Super Ford and any lessee of the Owner Parcel), for all reasonable costs and 3
expenses that City may thereby incur ( plus interest thereon at the maximum rate permitted by law from the date on which such costs and expenses are incurred by the City to the date of reimbursement by such Association Members).
ARTICLE 3 CITY CONSIDERATION AND CONDITIONS.
3. 1. 1 City Consideration. In consideration for Owner' s granting of the Easement to the City, and upon the satisfaction of the conditions precedent set forth in Article 3, City shall pay to the Members an amount not to exceed Five Hundred Ninety Six Thousand Eight Hundred Twenty Nine Dollars ($ 596, 829. 00) ( the " City Consideration "). Partial payments of the City Consideration shall be made upon Member' s submission of written payment requests to the City at the times and in the amounts as provided for under the Sale Agreement. The payment request submittals shall contain a certification by the Members that no default then exists under this Agreement and shall specify the amount for which payment is requested and shall be in such form and substance as the City shall reasonably require, including appropriate lien waivers and receipts for payment from contractors and vendors. Subject to the satisfaction of the conditions precedent to the payment of the City Consideration set forth below, within twenty -one ( 21) days following Members' submittal of payment requests, the City shall pay to the Members the amount of each submitted payment request. The Members shall be responsible for apportioning and distributing the City Consideration among the Members. Members shall request the final payment of the balance of the City Consideration on or before the date that is one hundred eighty ( 180) days after the Effective Date or Members shall be deemed to have waived, released and relinquished all of their rights to receive any further payment of the City Consideration.
3. 1. 2 City' s Conditions Precedent. City' s obligation to make the initial and all subsequent payments of the City Consideration to the Members is subject to the following conditions precedent:
3. 1. 3 Recordation of Easement Agreement. The concurrent recordation of the Easement Agreement.
3. 1. 4 Receipt of Title Insurance Policy. The receipt by City of a title insurance policy issued by First American Title Insurance Company, insuring the City with respect to the enforceability of the Easement, and in form and substance acceptable to the City. The title insurance policy shall specifically provide that all existing deeds of trust and related security documents recorded against the Owner Parcel ( including without limitation that certain deed of trust and assignment of rents in favor of Ford Motor Credit Company and recorded as Instrument Nos. 06- 2221985 and 06- 2221986 ( respectively) in the official records of Los Angeles County, California) ( collectively, the " Security Documents ") shall be subordinate and subject to the Easement and the title insurance policy shall otherwise be subject to only those exceptions to the insured interest which are acceptable to the City in the exercise of its sole and absolute discretion. In addition, the beneficiaries under such Security Documents shall consent to the conveyance of the Sign as described in Recital D.
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3. 1. 5 Assignment of Warranties. The receipt by City of a written assignment by the Members of all warranties and guaranties associated with the acquisition, installation and maintenance of the Improvements, in form and substance acceptable to the City.
3. 1. 6 Executed Copy of the Sale Agreement. The receipt by the City of a fully executed copy ofthe Sale Agreement and all exhibits and documents reference therein.
3. 1. 7 Receipt of Evidence of Acquisition and Installation of Improvements. As applicable, the Members shall have submitted to the City evidence of the acquisition and /or installation of the Improvements pertaining to the payment request submitted by the Members.
3. 1. 8 Default. No Default ( as hereinafter defined) on the part of Members shall exist, nor shall there be any condition or circumstance that would, with notice or the passage of time, or both, constitute a Default on the part of Members.
3. 1. 9 Good Standing. Members shall have delivered to City reasonable evidence that they are then in good standing and qualified to do business in the State of California.
If all of the foregoing conditions precedent are not satisfied on or before ninety ( 90) days following the Effective Date, then City may, in its sole and absolute discretion, waive any such condition precedent or terminate this Agreement upon notice to the Members and Owner.
ARTICLE 4 LICENSE TO USE SIGN. The Members, in their individual capacity and, as applicable, as members of the Association, hereby grant to City a license to use the Sign to display messages and information regarding public events and other matters of public interest.
Such license shall be irrevocable during the term of the Easement and is coupled with an interest.
All such messages and information shall be prepared by the City and provided that they comply with the terms herein, shall not be subject to edit or modification by Members. City shall not be entitled to display messages or other information on the Sign that is of a purely political nature.
City shall submit all such messages and information in writing to the Managing Grantor under the CC &Rs ( which is currently Puente Nissan) ( "Managing Owner ") and the Managing Owner shall cause such messages and information to appear on the Sign within two ( 2) working days from the date of submission. All such messages and information shall appear on the Sign for a period of days as specified by the City, and during all hours of operation of the Sign. Provided, however, City messages and information shall not use more than twenty percent ( 20 %) of the operational time of the Sign during any period of its operation.
ARTICLE 5 SHARED USE OF SIGN AND OTHER MATTERS. Members covenant and agree that during the Term ( i) each and every entity that owns and/ or operates a new car dealership within the Auto Center shall have the right to become a signatory of and to undertake all of the obligations and enjoy all of the benefits of the Members ( including without limitation the right to use the Sign) of the Association Agreement, and the documents and agreements referenced therein, as it may be amended from time to time ( collectively, the " Documents "), ( ii) the Documents and Sale Agreement shall not be terminated or amended in any material respect without the prior written consent ofthe City, (iii) the CC &Rs shall not be terminated or modified in a manner that would be inconsistent with the provisions of (i) above without the prior consent 5
of the City; ( iv) the Sign shall not be materially altered ( except in the ordinary course of maintenance) or removed from the Owner Parcel; ( v) the Sign shall be maintained in a first class condition and shall be promptly repaired or replaced if damaged or destroyed by any cause whatsoever; and ( vi) the Sign shall be continuously operated at least eighteen ( 18) hours of each day of the year for the benefit of the Members and the City. In the event that the Sign is not maintained or replaced as provided in ( v) above, the City shall have the right, but not the obligation, to take such actions to maintain or replace the Sign as it reasonably deems necessary and the City shall be promptly reimbursed by the Members for all reasonable costs and expenses that City may thereby incur (plus interest thereon at the maximum rate permitted by law from the date on which such costs and expenses are incurred by the City to the date of reimbursement by the Members).
ARTICLE 6 DEFAULTS, REMEDIES AND TERMINATION
Section 6. 1 Defaults - General.
6. 1. 1 Failure or delay by any party to perform any term or provision of this Agreement constitutes a " Default" under this Agreement. However, any party who so fails or delays performance but shall immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with reasonable diligence during any applicable cure period permitted by this Agreement, shall not be in default hereunder.
6. 1. 2 The non - defaulting party shall give written notice to the defaulting party specifying the Default. If the Default is not commenced to be cured within ten ( 10) days after delivery of the notice of Default or is not cured promptly in a continuous and diligent manner within thirty ( 30) days after commencement thereof, then the non - defaulting party shall have the rights and remedies herein provided.
6. 1. 3 Except as otherwise expressly provided in this Agreement, any failure or delay by either party in asserting any of its rights or remedies as to any Default shall not operate as a waiver of any Default or of any such rights or remedies or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies.
Section 6. 2 Rights and Remedies are Cumulative. Except as otherwise expressly provided in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same time or different times, of any other rights or remedies for the same Default or any other Default by the other party.
Section 6. 3 Remedies.
6. 3. 1 Members' sole remedies for City' s Default under this Agreement shall be a) to institute an action to seek mandamus or specific performance of the terms of this Agreement, or (b) to terminate this Agreement.
6.3. 2 In the event of any Default by Members, the non - defaulting party(ies) shall be entitled to all damages proximately caused by such Default and to pursue all other 2
remedies available at law or in equity, including an injunction and/ or specific performance. In addition, in the event of a Default by Members, the City may seek a refund of any City Consideration paid to Members prior to the date of such Default.
6. 3. 3 Notwithstanding anything to the contrary contained herein, if any Default by Members occurs prior to City' s payment of the City Consideration, then City, in the exercise of its sole and absolute discretion, may terminate this Agreement, in which case City shall be released from any and all further obligations to Members.
ARTICLE 7 GENERAL PROVISIONS
Section 7. 1 Insurance.
7. 1. 1 Members agree to procure and maintain, or cause to be procured and maintained, liability and property damage insurance with respect to the Sign, and throughout the term of the Easement, in the following minimum limits:
Bodily Injury $ 500, 000 each person
1, 000, 000 each occurrence
Property Damage $ 1, 000, 000 each occurrence
1, 000, 000 aggregate
7. 1. 2 Notwithstanding what is set forth herein, if at any time a Member is an affiliate of the Ford Motor Company, such Member shall have the right to self - insure any insurance required to be provided hereunder by such Member.
7. 1. 3 Members shall indemnify, hold harmless and defend the City, its officers and employees from and against all claims, damages, losses, and expenses, including but not limited to reasonable attorneys' fees, arising out of or resulting from (i) any act or omission of Members, or their respective licensees, invitees, agents or employees, on or adjacent to the Owner Parcel, and ( ii) any accident, injury, death or damage to any person or property occurring in, on or about the Owner Parcel. The indemnification obligations contained in this Section 7. 1. 3 shall not extend to any claims, damages, losses or expenses incurred by the City or its officers or employees to the extent that such claims, damages, losses or expenses are caused by or contributed to by the negligence or misconduct of the City or its officers or employees, as finally determined by a court of competent jurisdiction. The indemnification obligations described in this Section 7. 1. 3 shall survive the termination of this Agreement.
Section 7.2 Notices, Demands and Communications Between the Parties. All notices and demands shall be given in writing by certified mail, postage prepaid, and return receipt requested, or by personal delivery. Notices shall be considered given upon the earlier of a) personal delivery, ( b) the date sent by facsimile ( provided that the sender of such communication shall electronically confirm receipt thereof by the appropriate parties and shall send a copy of such communication to the appropriate parties within one ( 1) business day of such facsimile by any other method permitted hereunder), ( c) three ( 3) business days following deposit in the United States mail, postage prepaid, certified or registered, return receipt requested or ( d) the next business day after deposit with a nationally reorganized overnight courier, in each 7
instance addressed to the recipient as set forth below. Notices shall be addressed as provided below for the respective party; provided that if any party gives notice in writing of a change of name or address, notices to such party shall thereafter be given as demanded in that notice:
Members: Alexander Yu -Jen Hwang
Rose Shu -Hui Chiao Hwang
dba Puente Hills Chrysler Jeep
17280 East Gale Avenue
City of Industry, California 91748
Attention: Alex Hwang
Telephone: ( 626) 965 - 1088
Fax: ( 626) 626 -2099
Leo Hoffman Chevrolet Inc.
dba Puente Hills Chevrolet
17300 East Gale Avenue
City of Industry, California 91748
Attention: Tom Hoffman
Telephone: ( 626) 913 -0440
Fax: ( 626) 913 -0850
PH Diversified, LLC
dba Puente Nissan
17320 East Gale Avenue
City of Industry, California 91748
Attention: Greg Brown
Telephone: ( 626) 626 -2600
Fax: ( 626) 626 -2576
United Brothers Motor Group, Inc.
dba Super Ford
17340 East Gale Avenue
City ofIndustry California
Attn: Rene Farjeat
Owner: Puente Hills Motors, Inc.
c/ o Ford Motor Company
3 Glenn Bell Way, Suite 200
Irvine, CA 92618
Attn: Joseph B. Margraf
Copy to: Ford Leasing Development Company LLC
330 Town Center Drive
Suite 1100
Dearborn, MI 48126
Attn: Dealership Real Estate
City: City of Industry
15625 East Stafford Street, Suite 100
City of Industry, California 91744
Attention: City Manager
Telephone: ( 626) 333 -2211
Fax: ( 626) 336 -4273
Copy to: Richards, Watson & Gershon
355 South Grand Avenue, 40th Floor
Los Angeles, California 90071
Attn.: Jim G. Grayson, Esq.
Phone: ( 213) 626 -8484
Fax: ( 213) 626 -0078
Section 7. 3 Conflicts of Interest. No member, official or employee of City shall have any direct or indirect interest in this Agreement, nor participate in any decision relating to the Agreement which is prohibited by law.
Section 7.4 Warranty gainst Payment of Consideration for Agreement. Members warrant that they have not paid or given, and will not pay or give, to any third person, any money or other consideration for obtaining this Agreement, other than normal costs of conducting business and costs of professional services such as architects, engineers and attorneys.
Section 7. 5 Nonliability of City and City Officials. No council member, official or employee of City shall personally be liable to Members, or any successor in interest of Members, in the event of any Default by City, or for any amount which may become due to Members or their successors or assigns under the terms of this Agreement.
Section 7. 6 Memorandum of Agreement. At the City' s request, a memorandum of this Agreement shall be promptly executed by Members and recorded against the properties owned by Members within the Auto Center and in the official records of Los Angeles County, California.
Section 7. 7 Challenge to Validity. In the event of any challenge to the validity of this Agreement, then, at the option of the City, either ( i) Members shall either defend such challenge at the cost and expense of the Members, with counsel reasonably satisfactory to City, or ii) Members shall reimburse City, upon demand, for the reasonable costs and expenses incurred by City in defending same, including reasonable attorneys fees.
Section 7. 8 Authority to Execute. The persons executing this Agreement on behalf of Members warrant and represent that they have the authority to execute this Agreement on behalf of their respective organizations, corporations, partnerships or business entities and warrant and represent that they have the authority to bind Members to the performance of their obligations hereunder.
Section 7. 9 Successors and Assigns. The provisions of this Agreement shall be binding upon, and inure to the benefit of, City, Members, and their respective successors and assigns, as the case or context may require.
0
Section 7. 10 No Joint Venture. Nothing contained in this Agreement shall be construed to render City in any way or for any purpose a partner, joint venturer, or associated in any relationship with Members, nor shall this Agreement be construed to authorize any party to act as agent for the other.
Section 7. 11 Entire Agreement, Waivers and Amendments. This Agreement, together with all attachments and exhibits hereto, constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties with respect to all or any part of the subject matter hereof. Any waiver or modification of any provision of this Agreement must be in writing and signed by the party to be charged.
Section 7. 12 Authority of Executive Director. Notwithstanding anything to the contrary contained herein, without further authorization of the City Council of the City, the City Manager of the City may consent to and execute any amendment to this Agreement which does not alter or change a material term or provision hereof.
Section 7. 13 Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement.
Section 7. 14 Execution in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.
Section 7. 15 Severability. Each and every provision of this Agreement is, and shall be construed to be, a separate and independent covenant and agreement. If any term or provision of this Agreement or the application of such term or provision shall to any extent be held to be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected hereby, and each term and provision of this Agreement shall be valid and shall be enforced to the extent permitted by law.
Section 7. 16 Exhibits. All Exhibits attached hereto are incorporated herein as if set forth fully in this Agreement.
Section 7. 17 Joint and Several Obligations. The obligations and liabilities of Members hereunder shall be joint and several.
Section 7. 18 Term. The term of this Agreement shall be co- terminus with the Easement.
Section 7. 19 Termination of Siege and Easement Purchase Agreement. That certain Sign Usage and Easement Purchase Agreement dated February 16, 2012 by the Members is hereby terminated, shall be null and void and of no further effect and shall be replaced and superseded by this Agreement.
Section 7. 20 Termination of Reciprocal Agreement. That certain South Side Puente Hills Auto Dealership Association Reciprocal Agreement dated on or about October 21, 2011 by 10
the Members is hereby terminated, shall be null and void and of no further effect and shall be replaced and superseded by this Agreement.
Section 7. 21 Termination of Outdoor Electric Sign Agreement. That certain Outdoor Electric Sign Agreement dated June 12, 2002 by certain current and former Members is hereby terminated, shall be null and void and of no further effect and shall be replaced and superseded by this Agreement.
SIGNATURES TO IMMEDIATELY FOLLOW]
11
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as ofthe day and year first above written.
ATTEST:
9,11, (/-J —
ATTEST:
ATTEST:
CITY:
CITY OF INDUSTRY,
a municipal corporation
By:
Name: f Parriott
Title: Mayor
MEMBERS:
ALEXANDER YU -JEN HWANG and ROSE
SHU -HUI CHIAO HWANG,
husband and wife as community property with right
of survivorship,
dba Puente Hills Chrysler Jeep
12 ALEXANDER YU -JEN HWANG
ROSE SHU -HUI CHIAO HWANG
CALIFORNIA • ACKNOWLEDGMENT
State of California
County of U K/ p
On before me, 4 6,
Date _ _ / 7
Here Insert Nam and Title of the Officer
personally appeared
CECELIA DUNLAP
Commission # r 1972577
Z - Notary Public - California
Loa Angela Co"
MY Comm. Expira A r 15 2016
o t"t
who proved to me on the basis of satisfactory evidence to be the personfs) whose name(* is /are. subscribed to the within instrument and acknowledged to me that
he /gl;IsA soy executed the same in his /heW4h9*,z authorized capacity( ic*, and that by his /4efii%Wir signature(* on the instrument the person( a, or the entity upon behalf of
which the persons} 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 ancl offi
I seal.
Signature ez? l
Place Notary Seal Above Signature of Notary Publif
OPTIONAL
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Description of Attached Docum //ent,
A, , /
Title or Type of Document: An !/ f. kpc L%'IGl
Document Date: Number of Pages:
Signer( s) Other Than Named Above:
Capacity( ies) Claimed by Signer( s)
Signer' s Name:
Individual
Corporate Officer — Title( s): —
El Partner — Limited General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
RIGHTTHUMBPRINT
OF SIGNER
Signer' s Nal
Individual
Corporate Officer — Title( s):
Partner — Limited General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing
RIGHTTHUMBPRINT
OF SIGNER
IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as ofthe day and year first above written.
ATTEST:
ATTEST:
CITY:
CITY OF INDUSTRY,
a municipal corporation
By:_
Name:
Title:
MEMBERS:
ALEXANDER YU- JEN HWANG and ROSE
SHU -HUI CHIAO HWANG,
husband and wife as community property with right
of survivorship,
dba Puente Hills Chrysler Jeep
By:
ALEXANDER YU -JEN HWANG
ATTEST:
By:
ROSE HU- U CHIAO HWANG
12
State of California CALIFORNIA ALL-PURPOSE
County of Lod An CERTIFICATE OF ACKNOWLEDGMENT
V
C illiiiJ On / 3'. 2012
before me,
Madit A R4. H j
dZi Yj Pub I
0 Wall
here insert name and title of the officer)
Om
personally appeared
ot
V
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.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. MADELYN M. HAYASHI Comm. # 1947799
NOWY Public - caloornia Public
WITNESS my hand and official seal. Z Los Ali COuntY
Comm. EVil Sep. 2, 210115
Signature
U ( Seal)
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Description of Attached Document Additionall tntformation The preceding Certificate of Acknowledgment is attached to a document Method of Signer Identification titled/ for the purpose of 44,n U5mk i W Proved to me on the basis of satisfactory evidence: IMIA t Lo form( s) of identification 0 credible witness( es)
o Notarial event is detailed in notaryjournal on:
containing pages, an d dated AA544 Page # Entry #
The signer( s) capacity or authority is/ are as: Notary contact:
V11ndividual( s) Other
Attorney- in- Fact
Additional Signer( s) Signer( s) Thumbprint(s)
Corporate Officer( s)
Title( s)
Guardia n/ Conservator
Partner - Limited/ General
F Trustee( s)
Other:
representing:
Name( s) of Person( s) or Entity( res) Signer is Representing 0 Copyright 2007 Notary Rotary, Inc. 925 29th St., Des Moines, IA 50312- 3612 Form ACK03. 10/ 07, To re- order, call toll- free 1- 877- 349- 6588 or visit us on the Internet at http:// www. notaryrotary. com
ATTEST:
ATTEST:
ATTEST:
ATTEST:
ATTEST:
LEO HOFFMAN CHEVROLET, INC.,
a California limited liability company,
dba Puente Hills Chevrolet
B
N
Ti
By:_
Name:
Title:
PH DIVERSIFIED, LLC,
a California limited liability company,
dba Puente Nissan
By:
Name:
Title:
By:_
Name:
Title:
UNITED BROTHERS MOTOR GROUP, INC.
a California corporation,
dba Super Ford
By:_
Name:
Title:
N Poo
13
CAL WORIMA ALA,- PURPOSE iCKHO' t LE08MRAV
State of California
county
On d before me, " I
personally appeared
BRIDGET LINA MUNOZ
Commissian # 1920092.
a ; Notary Public - California zz
a' A' Los Angeles County
My Comm Fxpires Jan 2, 2015
vl
who proved to me on ° the basis of salsfacto
evidence. to be the person( hose name is
subscribed to the within instrument and acknowledged
tQ me hat hel ta' iey executed the same in
his1hw1' thi§Tr_ authorized capacity a.%), and that by
hislherA? rel
f
signature( s- on the instrument the
person( a), 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 California that the foregoing
paragraph is true and correct.
WITNESS m hand and official seal.
Q
Signature:
Place Notary Seal Above gnature o Public
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Description of Attached Document
Title or Type of Document- G C
Document Dater Number of Pages:
o
Slgner( s) Other Than Named Above: —
Capaeity(lee) Claimed by. Signer(s)
Signer' s Name:
El Corporate Officer— Title( s):
INSi
Individual
Partner— Limited General Top of thumb here
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Sig Is Representing:
Signer' s Name:
Corporate Officer - Title( s):
Individual
e
Partner — Limited General Top of thumb here
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing:
Item 5907 2010 National Notary Association ° Naticnal Notary. org - 1- 800 - -US NOTARY ( 1 - 8DD- 876 - 6827) 1x
ATTEST:
ATTEST:
ATTEST:
ATTEST:
ATTEST:
LEO HOFFMAN CHEVROLET, INC.,
a California limited liability company,
dba Puente Hills Chevrolet
By:
Name:
Title:
By:_
Name:
Title:
PH DIVERSIFIED, LLC,
a California limited liability company,
dba Puente Nissan
By:
Name:
Title:
By:
Name:
Title:
UNITED BROTHERS MOTOR GROUP, INC.
a California corporation,
dba Super Ford
By:
Name:
Title:
13
ALL- PURPOSE ACKNOWLEDGMENT
State ofCalifornia
County of
SS.
On f j /1 , before me, tj H-j " PA, Oc, , Notary Public, DATE T . ' I
personally appeared Paul , personally known to me ( or
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 SANG HYUN Ph
of which the person( s) acted, executed-the instrument. comm. # 1864818
cr Notary Public • Calif
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Orange County
My Comm. Expires Sep. 1,12013
PLACE NOTARY SEAL IN ABOVE SPACE
WITNESS my hand and official seal.
ARY' S SIGNATURE
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CAPACITY CLAIMED BY SIGNER (PRINCIPAL) DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
PARTNER( S) TrrLE( S)
ATTORNEY-IN-FACT
TRUSTEE( S)
OUARDIAN /CONSERVATOR
OTHER:
SIGNER (PRINCIPAL) IS REPRESENTING:
NAME OF PERSON( S) OR ENTITY( IES)
TITLE OR TYPE OF DOCUMENT
NUMBER OF PAGES
DATE OF DOCUMENT
RIGHT
THUMBPRINT
OF
SIGNER
OTHER
o
0 Fg
NOTARY BONDS, SUPPLIES AND FORMS AT HTT :I/WWW.VALLEY SIERRA.COM O 2005 VALLEY SIERRA INSURANCE
ATTEST:
ATTEST:
ATTEST:
ATTEST:
ATTEST:
LEO HOFFMAN CHEVROLET, INC.,
a California limited liability company,
dba Puente Hills Chevrolet
By:
Name:
By:
Nat
Title:
PH DIVERSIFIED, LLC,
a California limited liability company,
dba Puente Nissan
By:_
Name:
Title:
By:
Name:
Title:
I
i
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UNITED BROTHERS MOTOR GROUP, INC.
a California corporation,
dba Super Ford
Nan' i(
Title:
13
Capacity( ies) Claimed by Signer( s)
Signer' s Name:
Individual
Corporate Officer — Title( s):
Partner — Limited General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing
RIGHTTHUMBPRINT
OF SIGNER
Signer' s Nat
Individual
Corporate Officer — Title( s):
Partner — Limited General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing
RIGHTTHUMBPRINT
OF SIGNER
op of thumb here
2007 National Notary Association • 9350 De Soto Ave., P. O. Box 2402 • Chatsworth, CA 91313 - 2402 • www. NationaiNotary. org Item # 5907 Reorder: Call Toll - Free 1 - 800- 876 - 6827 4 A
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1 CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT N Ig
State of Califor is
9 Count
On o? efore rn
Date Here Insert Name and Title of the Officer
personally appeared
Name( s) of Signer( s)
e
who proved to me on the basis of satisfactory evidence to be the person( g) whose name( s) is/ore subscribed to the within instrument and acknowledged to me that
he4r a ey executed the same in his /-he eir authorized
capacity{ ie6), and that by his /weir signature( s) on the NO MV1 1 AM
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instrument the person(,), or the entity upon behalf of
M" Pdit . cavotft which the persons) acted, executed the instrument.
Los A61111111111111111 CON*
1ftCMWI1V* F624, 20116 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS and and official seal.
Signature
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Document Date: a — Number of Pages:
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Capacity( ies) Claimed by Signer( s)
Signer' s Name:
Individual
Corporate Officer — Title( s):
Partner — Limited General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing
RIGHTTHUMBPRINT
OF SIGNER
Signer' s Nat
Individual
Corporate Officer — Title( s):
Partner — Limited General
Attorney in Fact
Trustee
Guardian or Conservator
Other:
Signer Is Representing
RIGHTTHUMBPRINT
OF SIGNER
op of thumb here
2007 National Notary Association • 9350 De Soto Ave., P. O. Box 2402 • Chatsworth, CA 91313 - 2402 • www. NationaiNotary. org Item # 5907 Reorder: Call Toll - Free 1 - 800- 876 - 6827 4
RIlaEm
OWNER as to Article 1 only
PUENTE HILLS MOTORS, INC.,
a Delaware Corporation
By: & - t
Name: KU'v WgW
Title: ( Cc r.'4 to. --
14
EXHIBIT A
LEGAL DESCRIPTION OF THE OWNER PARCEL
The land referred to herein is situated in the State of California, County of Los Angeles, City of Industry, described as follows:
THOSE PORTIONS OF PARCELS 5 AND 6 OF PARCEL MAP N0.262 IN THE CITY OF
INDUSTRY, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 251, PAGE 29 AND 30, OF PARCEL MAPS, IN THE OFFICE .OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID PARCEL 6; THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 6 NORTH 080 28' 36" EAST, 31. 55 FEET TO THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID WESTERLY LINE SOUTH ' 810 31' 24" EAST, 26.81 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 18.00 FEET;
THENCE NORTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 90° 00' 00 ", AN ARC DISTANCE OF 28. 27 FEET; THENCE TANGENT TO SAID CURVE NORTH 08° 28' 36" EAST, 24.46 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 6. 00 FEET;
THENCE NORTHWESTERLY ALONG LAST SAID CURVE, THROUGH A CENTRAL ANGLE OF 900 00' 00 ", AN ARC DISTANCE OF 9.42 FEET; THENCE TANGENT TO LAST SAID CURVE NORTH 810 31' 24" WEST, 46.03 FEET; THENCE SOUTH 08° 28, 36" WEST, 48.46 FEET; THENCE SOUTH 81° 31' 24" EAST, 7. 21 FEET TO THE TRUE POINT
OF BEGINNING
CONTAINING 2,444 SQUARE FEET ( 0.0561 ACRES) OF LAND, MORE OR LESS. 12283 - 0007 \ 14125870. doc A -1
EXHIBIT B
DESCRIPTION OF IMPROVEMENTS
All of those improvements to the Sign described in the Sale Agreement 12283 - 0007\ 1412587v9. doc B -1
EXHIBIT C
EASEMENT AGREEMENT
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO
Puente Hills Motors, Inc.
c/ o Ford Leasing Development Company LLC
330 Town Center Drive
Suite 1100
Dearborn, MI 48126
Attn: Dealership Real Estate
A.P.N.: 8264 - 001 - 121 and 8264 -001 - 122
The undersigned declare that this Easement Agreement is exempt from Recording Fees pursuant to California Government Code Section 27383.
SPACE ABOVE THIS LINE FOR RECORDER' S USE
EASEMENT AGREEMENT
THIS EASEMENT AGREEMENT made this day of ,
2012, by and among PUENTE HILLS MOTORS, INC., a Delaware Corporation, hereinafter called the " Grantor ", and the MEMBERS UNDER THAT CERTAIN CONSTRUCTION,
OPERATION AND RECIPROCAL EASEMENT AGREEMENT FOR PUENTE HILLS AUTOMOTIVE PLAZA dated April 7, 1992 and recorded as Instruments No. 92- 1400544 and No. 92- 1400554 in the official records of Los Angeles County, California (the " CC &Rs ") which are currently ALEXANDER YU -JEN HWANG and ROSE SHU -HUI CHIAO HWANG, husband and wife as community property with right of survivorship, dba Puente Hills Chrysler Jeep, LEO HOFFMAN CHEVROLET INC., a California corporation, dba Puente Hills Chevrolet, PH DIVERSIFIED, LLC, a California limited liability company, dba Puente Nissan Puente Nissan"), ( each a " CC & Rs Member" and collectively, the " CC &Rs Members ") and UNITED BROTHERS MOTOR GROUP, INC., a California corporation, dba Super Ford Super Ford ") and the CITY OF INDUSTRY, a municipal corporation ( " City "), the CC & Rs Members, Super Ford and City collectively hereinafter called the " Grantees ".
RECITALS
A. The Grantor is the owner of certain real property located in the City of Industry, County of Los Angeles, State of California, which property is hereinafter referred to as the Property" and is more particularly described in Exhibit A attached hereto. The Property is currently leased to Ford Leasing Development LLC (f/k/a Ford Leasing Development Company) Ford Leasing ") pursuant to that certain Lease Agreement between Grantor and Ford Leasing dated October 4, 2006 ( " Ford Leasing Lease "). Ford Leasing has subleased the Property to Super Ford pursuant to the terms of that certain Dealership Sublease between Ford Leasing and Super Ford dated October 4, 2006 ( " Super Ford Sublease ").
C - 1
B. The CC &Rs Members and Super Ford are members of the Puente Hills Automobile Dealership Association as defined by that certain Puente Hills Auto Dealers Association Readerboard Participation Agreement dated as of , 2012 ( " Association Agreement "), which Association owns a readerboard sign located on the Property ( " Sign ") as more particularly described and depicted on Exhibit B attached hereto. The CC & Rs Members and Super Ford are collectively referred to as " Members ".
C. The Members and the City have entered into that certain Sign Usage and Easement Purchase Agreement [ 17340 East Gale Avenue] dated as of , 2012 by and among Grantor and Grantees ( the " Purchase Agreement ") to govern their relationship regarding the Sign.
D. The Grantor wishes to grant to the Grantees a non - exclusive easement in gross over the Property for the purposes of placing, accessing, maintaining and using the Sign as set forth herein.
NOW, THEREFORE, for the payment of ten dollars ($ 10. 00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor does hereby grant and convey unto the Grantees an easement, hereinafter called the Easement ", as more particularly described below.
1. Grantor hereby grants to Grantees a non - exclusive easement in gross over the Property for all purposes ( including without limitation access for construction vehicles and equipment as reasonably required) and uses associated with the placing, accessing, maintaining, repairing, upgrading, replacing, programming and using the Sign. The term of the Easement is twenty ( 20) years, commencing on the date of recordation of this Easement Agreement and ending on the date that is twenty ( 20) years thereafter or such earlier date pursuant to Paragraph 11 below ( " Term "). On that date, Grantees shall execute in recordable form a release of the Easement created by this Easement Agreement. The Easement shall constitute a binding servitude upon the Property, and shall run with the Property.
2. Grantor agrees that during the Term of the Easement and without the express written permission of the Grantees signed by their duly authorized representatives, no building or other structure shall be built or maintained on the Property other than the Sign which as of the Effective Date is located on the Property.
3. Grantees agree that during the term of the Easement and without the express written permission of the Grantor signed by its duly authorized representative, the Grantees shall not construct, expand or enlarge any building or other structure on the Property other than the Sign as it currently exists on the Property as of the date hereof, or as replaced or reconstructed, and the Improvements ( as defined in the Purchase Agreement) thereto.
4. The Members ( and the City at any time that it is exercising the City Rights ( as defined below)) will maintain the Sign in first class condition and repair and in compliance with all laws, including without limitation any and all requirements of the Municipal Code of the City of Industry, California, at all times, will continuously operate the Sign at least eighteen ( 18) hours per day and will timely pay for all utilities utilized by the Sign. The Members ( and the C -2
City at any time that it is exercising the City Rights) will not ( i) cause or allow the Property or the Sign to become unsightly, ( ii) store any articles or materials on the Property, ( iii) deposit any trash on the Property; (iv) materially alter the Sign ( except in the ordinary course of maintenance and repair or to replace same upon damage or destruction) or ( v) commit waste upon the Property.
5. The Members ( and the City at any time that it is exercising the City Rights) shall procure and maintain, or cause to be procured and maintained, liability and property damage insurance with respect to the Sign throughout the Term, in the following minimum limits:
Bodily Injury $ 500, 000 each person
1, 000, 000 each occurrence
Property Damage $ 1, 000, 000 each occurrence
1, 000,000 aggregate
6. Members ( and the City at any time that it is exercising the City Rights) shall indemnify and save Grantor, its officers, directors and employees, and their respective successors, heirs and assigns harmless from and against any and all claims, demands, actions, liabilities, expenses ( including reasonable legal fees) and costs arising from or in any manner relating to the granting of this Easement or any rights or privileges granted hereunder, and/ or based upon or relating to the exercise by the Members and /or the Members' Representatives ( or, at any time that the City is exercising the City Rights, the City and/ or the City' s Representatives) of any rights or privileges granted hereunder, including but not limited to, any property or environmental damage to the Property. A party' s " Representative( s)" shall mean that party' s employees, managers, agents, contractors, licensees and invitees.
7. The Easement granted herein may not be assigned by Grantees, without the prior written approval of Grantor, except that the Easement shall be assignable by the Grantees to any public entity having jurisdiction over the Property or to any member under the CC &Rs, upon notice to, but without the consent of Grantor. Grantees shall not permit the use of the Property, or any part thereof, except in strict compliance with the provisions hereof.
8. At any time that Grantees and/ or their agents, contractors, employees, licensees or servants ( and /or those claiming through any of them) ( collectively " Grantees' Representatives ") enters onto the Property, the following provisions shall apply:
8. 1 The Members, ( or the City at any time that it is exercising the City Rights), shall not suffer or permit to be enforced against the Easement, or any part thereof, any mechanic' s, materialmen' s, construction, contractor' s or subcontractor' s liens or any claims for damages arising from any use of the Property by the Members or the Members' Representatives or, at any time that the City is exercising the City Rights, the City and /or the City' s Representatives). The Members, or the City, as the case may be, shall pay or cause to be paid all of said liens, claims or damages before any action is brought to enforce same against the Property caused by the entry onto the Property by such party or its Representatives. The Members, or the City, as the case may be, expressly agree to protect, defend, indemnify and hold Grantor and the Property harmless from and against all liability for any and all such liens, claims C -3
and demands, together with reasonable legal fees and all costs and expenses in connection with such entry onto the Property by such party or its Representatives.
8. 2. Grantees and Grantees' Representatives hereby understand and agree that they shall enter upon the Property at their own risk.
8. 3. Grantees agree and shall require Grantees' Representatives to comply with the following: whenever Grantees or any of Grantees' Representatives enter onto the Property, the party entering onto the Property shall obtain and maintain the following insurance: ( a) worker' s compensation insurance, in accordance with the laws of the State of California; ( b) commercial general liability insurance ( including, but not limited to, contractual liability coverage) covering claims for bodily injury and property damage occurring on, in or about the Property, with limits of at least $ 3, 000, 000 combined single limit per occurrence; and ( c) automobile liability insurance including all owned, non -owned or hired vehicles with limits of not less than $ 3, 000, 000 single limit per occurrence of loss or damage. Said insurance shall name Grantor and any successors, heirs or assigns of Grantor) as an additional insured ( with respect to the commercial general liability insurance), be primary and non - contributory with any insurance or self - insurance of Grantor ( or any successors, heirs or assigns of Grantor) and include a waiver of subrogation. Grantees agree to and shall require Grantees' Representatives to provide such certificates of insurance to Grantor prior to any entry upon the Property.
8. 4 All work permitted hereunder shall be performed by Grantees or Grantees' Representatives, in accordance with good engineering practice with the least possible inconvenience to Grantor, Property and the dealership adjoining the Property and pursuant to all governmental laws, regulations and ordinances pertaining thereto, including laws relating to worker safety and to proper disposal of any samples or materials taken from the Property.
Grantees shall provide at least 48 hours prior written notice before entering the Property, and upon entry shall comply with all on site rules and procedures of Grantor. Grantees, at their expense, shall obtain and comply with the terms of all regulatory permits, approvals, licenses and registrations and give any required notices to any party. Grantees shall be solely responsible for the off -site disposal of any samples or materials taken or waste associated therewith. Grantees shall be responsible, as appropriate, for securing the perimeter of the Property while they perform work. Grantees shall, in a timely manner, notify Grantor of any legally reportable spill or safety incident or failure to comply with applicable legal requirements by Grantees on the Property.
8. 5 In exercising any right or privilege hereunder which results in any change in the surface of the Property, the Members, ( or, at any time that the City is exercising the City Rights, the City) shall replace and/or repair any paving, landscaping or other property of Grantor which is damaged or destroyed as a result ofthe actions of such party or its Representatives.
9. The Easement is granted without covenant or warranty of title by Grantor.
10. Each of the following occurrences shall be a " Event of Default ": ( a) the Members' failure to pay any monetary obligation hereunder when due, if the failure continues for seven ( 7) days after written notice to the Members and the City ( "Monetary Default "); ( b) the Members' failure ( other than a Monetary Default) to comply with any term, provision, C -4
condition or covenant of this Easement Agreement, if the failure is not cured within thirty (30) days after written notice to the Members and the City, provided, however, if the Members' failure to comply cannot reasonably be cured within 30 days, the Members shall be allowed additional time ( not to exceed 60 days) as is reasonably necessary to cure the failure so long as the Members begins the cure within 30 days and diligently pursues the cure to completion; ( c) the date the Sign is destroyed and/ or removed from the Property unless the Grantees give Grantor written notice within thirty (30) days of such destruction or removal that the Sign will be repaired and/ or replaced, provided that such repair and /or replacement is completed within sixty 60) days of such notice; and /or ( d) if Grantees discontinue use of the Easement for the above stated purposes, including without limitation the discontinuance of use of the Sign, for any period of 12 or more consecutive months and do not recommence use of the Easement within thirty ( 30) days of receipt of written notice from Grantor. Upon any such Event of Default, Grantor shall give the City written notice of same simultaneously with notice to the Members, and the City shall have the right, but not the obligation, to cure same within the period of time equal to the applicable cure period( s) as set forth in subsections ( a) through ( d) above, plus thirty 30) days.
11. If both the Members and the City fail to timely cure all Events of Default, then Grantor shall have the right to exercise all rights in law and/ or equity, including without limitation, the right to ( a) terminate the Easement; ( b) maintain and/ or repair the Sign, and/ or ( c) demolish the Sign. Any and all repair, maintenance and /or demolition costs shall be at Members' sole cost and expense including a construction administration fee to Grantor equal to fifteen percent ( 15 %) of the cost of such maintenance, repair or demolition, plus interest thereon at the maximum rate permitted by law from the date on which such costs and expenses are incurred by Grantor to the date of reimbursement by Members.
12. At the expiration or earlier termination of the Easement, the Property shall be returned to Grantor, in broom clean condition with the Sign in good operating condition, normal wear and tear excepted. In addition, Grantor shall have the right, in its sole discretion, upon written notice to the Members, provided at least thirty ( 30) days prior to the expiration of the Easement or conterminous with any early termination of the Easement to require the Members, at their sole cost and expense to remove the Sign and restore the Property at the expiration or earlier termination of the Easement. Following such notice, if the Members fail to remove the Sign and restore the Property within thirty ( 30) days of the expiration or earlier termination of the Easement, then Grantor may remove the Sign and restore the Property, at the Members' sole cost and expense including a construction administration fee to Grantor equal to fifteen percent 15 %) of the cost of such removal and restoration, plus interest thereon at the maximum rate permitted by law from the date on which such costs and expenses are incurred by Grantor to the date of reimbursement by the Members.
13. This Easement Agreement may be amended, modified, or terminated at any time by a declaration in writing, executed and acknowledged by all the parties hereto or their successors or assigns; this Easement Agreement shall not be otherwise amended, modified or terminated during the term hereof except as specifically set forth herein.
14. All notices, requests, demands or other communications ( generally, a Communication ") required, permitted or desired to be given under this Easement Agreement C -5
shall be in writing and deemed given: ( a) when delivered personally; or (b) on the day that is two 2) days after said Communication is deposited in the U. S. mail, by registered or certified mail, return receipt requested, postage prepaid; or ( d) on the next business day after the day said Communication is deposited with a nationally recognized overnight courier service for next business day delivery, addressed and/ or sent by facsimile, as the case may be, as follows:
If to Grantor: Puente Hills Motors, Inc.
c/ o Ford Motor Company
3 Glenn Bell Way, Suite 200
Irvine, CA 92618
Attn: Joseph B. Margraf
Copy to: Ford Leasing Development Company LLC
330 Town Center Drive
Suite 1100
Dearborn, MI 48126
Attn: Dealership Real Estate
If to Grantee:
Members: Alexander Yu -Jen Hwang
Rose Shu -Hui Chiao Hwang
dba Puente Hills Chrysler Jeep
17280 East Gale Avenue
City of Industry, California 91748
Attention: Alex Hwang
Telephone: ( 626) 965 -1088
Fax: ( 626) 626 -2099
Leo Hoffman Chevrolet Inc.
dba Puente Hills Chevrolet
17300 East Gale Avenue
City of Industry, California 91748
Attention: Tom Hoffman
Telephone: ( 626) 913 -0440
Fax: ( 626) 913 -0850
PH Diversified, LLC
dba Puente Nissan
17320 East Gale Avenue
City of Industry, California 91748
Attention: Greg Brown
Telephone: ( 626) 626 -2600
Fax: ( 626) 626 -2576
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Super Ford: United Brothers Motor Group, Inc.
dba Super Ford
17340 East Gale Avenue
City of Industry California
Attn: Rene Farj eat
City: City of Industry
15625 East Stafford Street, Suite 100
City of Industry, California 91744
Attention: City Manager
Telephone: ( 626) 333 -2211
Fax: ( 626) 336 -4273
Copy to: Richards, Watson & Gershon
355 South Grand Avenue, 40th Floor
Los Angeles, California 90071
Attn.: Jim G. Grayson, Esq.
Phone: ( 213) 626 -8484
Fax: ( 213) 626 -0078
or to any other address as the parties may from time to time designate by a notice in writing to the other parties.
15. If any provision of this Easement Agreement, or portion thereof, or the application thereof to any person or circumstances shall, to any extent be held invalid, inoperative or unenforceable, the remainder of this Easement Agreement, or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby; it shall not be deemed that any such invalid provision affects the consideration for this Easement Agreement; and each provision of this Easement Agreement shall be valid and enforceable to the fullest extent permitted by law.
16. Time is of the essence under this Easement Agreement.
17. This Easement Agreement shall bind the heirs, representatives, successors and assigns of the Grantor, and shall inure to the benefit of the Grantees, their successors and assigns, including any future Members under the CC &Rs and the Association Agreement. At any time that any Member named herein ceases to be a member under the CC & Rs and /or the Association Agreement, its rights under this Easement shall terminate.
18. This Easement Agreement and the Purchase Agreement contain the entire agreement of the Grantor and the Grantees relating to the rights herein granted. Any modifications concerning this Easement Agreement shall be valid only if in writing and signed by the party to be charged.
19. Except as provided herein, the Grantor reserves unto itself all rights, privileges, powers, and immunities in and to the Property, including without limitation the right of exclusive possession and enjoyment and the right to sell and/ or transfer the Property.
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20. The covenants agreed to and the restrictions imposed, as aforesaid, shall be binding not only upon the Grantor, but also upon its heirs, successors and assigns, and all other successors to it in interest, and shall continue, for the term herein provided as a servitude running with the Property and shall survive the termination of any individual Grantee' s existence.
21. The laws of the State of California shall govern the interpretation and enforcement of this Easement Agreement.
22. The parties hereto shall have the right to enforce the provisions of this Easement Agreement or any amendment thereto, including the right to recover damages, penalties, or fees for such violation.
23. This Easement Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.
24. Ford Leasing hereby consents to the granting of this Easement on the Property and the conveyance of Owner' s interest in the Sign ( as described in the Purchase Agreement) and agrees that such Easement and the conveyance of Owner' s interest in the Sign shall not dispossess Ford Leasing from its Premises under the Ford Leasing Lease.
25. Super Ford hereby consents to the granting of this Easement on the Property and the conveyance of Owner' s interest in the Sign ( as described in the Purchase Agreement) and agrees that such Easement and the conveyance of Owner' s interest in the Sign shall not dispossess Super Ford from its Premises under the Super Ford Sublease. In addition, Super Ford acknowledges and agrees that it shall only have rights under this Easement Agreement so long as it has a valid lease or sublease for the property located at 17340 East Gale Avenue, City of Industry California and at such time as said lease or sublease expires or is terminated, its rights under this Easement Agreement shall terminate.
26. The parties acknowledge and agree that the City has the right, but not the obligation, to perform the obligations of the Members under this Easement Agreement at any time that the Members fail to timely perform their obligations under this Easement Agreement City Rights "). At any time that the City determines that the Members have failed to timely perform their obligations under this Easement Agreement, regardless of whether Grantor has given notice of an Event of Default, the City may ( but shall not be obligated to) upon ten ( 10) days' written notice to Grantor and Members, elect to perform the Members' obligations hereunder. Such notice shall set forth the obligations that the City intends to perform and the time period for which the City intends to perform such obligations. It is expressly understood and agreed by Grantor and Members that except for the payment of the City Consideration ( as defined in the Purchase Agreement) and the City' s voluntary exercise of the City Rights, the City shall not under any circumstance be required to pay any amount with respect to the costs and /or expenses ( whether direct or indirect) associated with the purchase and/ or installation of the Improvements ( as defined in the Purchase Agreement), the maintenance, operation or replacement of the Improvements and/ or the Sign or any other Member obligation set forth in this Easement Agreement.
SIGNATURES TO IMMEDIATELY FOLLOW]
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IN WITNESS WHEREOF, the Grantor and Grantees have entered into this agreement as of the date and year first above written.
Grantor:
PUENTE HILLS MOTORS, INS
a Delaware Corporation
ATTEST:,;
say
By: _« _
Name: - —
Title:
STATE OF CALIFORNIA } ss.
COUNTY OF }
On , before me, , a
notary public, personally appeared
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.
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
This area for official notarial seal)
SIGNATURE PAGE TO EASEMENT]
SIGNATURES TO EASEMENT TO CONTINUE ON FOLLOWING PAGE]
C -9
The Grantees accept this grant of Easement as of the day of , 2012.
Grantees:
ATTEST:
CITY OF INDUSTRY,
a municipal corporation_
By - ,
Name: : 1
Title:
STATE OF CALIFORNIA } ss.
COUNTY OF
On , before me, , a
notary public, personally appeared
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.
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
This area for official notarial seal)
SIGNATURE PAGE TO EASEMENT]
SIGNATURES TO EASEMENT TO CONTINUE ON FOLLOWING PAGE]
C -10
ATTEST:
ALEXANDER YU-JEN HWANG and ROSE
SHU -HUI CHIAO HWANG,
husband and wife as community property with right
of survivorship,
dba Puente Hills Chrysler Jeep
M.
ALEXANDER YU -: N11W NA G
ATTEST:
By:
ROSE ,` = IUI CHIAO HWANG
STATE OF CALIFORNIA } ss.
COUNTY OF
On , before me, , a
notary public, personally appeared
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.
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
This area for official notarial seal)
SIGNATURE PAGE TO EASEMENT]
SIGNATURES TO EASEMENT TO CONTINUE ON FOLLOWING PAGE]
C -11
ATTEST:
ATTEST:
LEO HOFFMAN CHEVROLET, INC.,
a California limited liability company,
dba Puente Hills Chevrolet
LIM
Name:
Title:
By'— `
Name:
Title:
STATE OF CALIFORNIA } ss.
COUNTY OF
On , before me, , a
notary public, personally appeared
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.
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
This area for official notarial seal)
SIGNATURE PAGE TO EASEMENT]
SIGNATURES TO EASEMENT TO CONTINUE ON FOLLOWING PAGE]
C -12
ATTEST:
STATE OF CALIFORNIA
COUNTY OF
PH DIVERSIFIED, LLC,
a California limited liability company,
dba Puente Nissan
By:
Name:
Title:
A ,
By: _
Name:
Title:
ss.
On , before me, , a
notary public, personally appeared
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.
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
This area for official notarial seal)
SIGNATURE PAGE TO EASEMENT]
SIGNATURES TO EASEMENT TO CONTINUE ON FOLLOWING PAGE]
C - 13
ATTEST:
STATE OF CALIFORNIA
COUNTY OF
UNITED BROTHERS MOTOR GROUP, INC.
a California corporation,
dba Super Ford
Name: _
Title:___ _ g
ss.
On , before me, , a
notary public, personally appeared
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.
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
This area for official notarial seal)
SIGNATURE PAGE TO EASEMENT]
SIGNATURES TO EASEMENT TO CONTINUE ON FOLLOWING PAGE]
C - 14
As to Paragraph 24 only:
FORD LEASING DEVELOPMENT
COMPANY LLC,
a Delaware limited liability company
ATTEST:
1 By:
Name: _
Title:
STATE OF MICHIGAN} ss.
COUNTY OF _ WAYNEI
On , 2012, before me, , a
notary public, personally appeared
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.
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
This area for official notarial seal)
SIGNATURE PAGE TO EASEMENT]
C -15
EXHIBIT A
DESCRIPTION OF PROPERTY
The land referred to herein is situated in the State of California, County of Los Angeles, City of Industry, described as follows:
THOSE PORTIONS OF PARCELS 5 AND 6 OF PARCEL MAP No.262 IN THE CITY OF
INDUSTRY, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 251, PAGE 29 AND 30, OF PARCEL MAPS, IN THE OFFICE .OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID PARCEL 6; THENCE ALONG THE WESTERLY LINE OF SAID PARCEL 6 NORTH 080 28' 36" EAST, 31. 55 FEET TO THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID WESTERLY LINE SOUTH ' 810 31' 24" EAST, 26. 81 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 18. 00 FEET;
THENCE NORTHEASTERLY ALONG SAID CURVE, THROUGH A CENTRAL ANGLE OF 900 00' 00 ", AN ARC DISTANCE OF 28. 27 FEET; THENCE TANGENT TO SAID CURVE NORTH 080 28' 36" EAST, 24.46 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 6. 00 FEET;
THENCE NORTHWESTERLY ALONG LAST SAID CURVE, THROUGH A CENTRAL ANGLE OF 900 00' 00 ", AN ARC DISTANCE OF 9. 42 FEET; THENCE TANGENT TO LAST SAID CURVE NORTH 810 31' 24" WEST, 46. 03 FEET; THENCE SOUTH 08° 28' 36" WEST, 48. 46 FEET; THENCE SOUTH 81° 31' 24" EAST, 7. 21 FEET TO THE TRUE POINT
OF BEGINNING
CONTAINING 2,444 SQUARE FEET ( 0.0561 ACRES) OF LAND, MORE OR LESS.
C -16
EXHIBIT B
DESCRIPTION OF SIGN
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C - 17
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C -18
EXHIBIT "5"
TO
LICENSE AGREEMENT
(Puente Hills Auto Center Sign #1, Sign #2 & Sign #3)
Loan Agreement
[Attached behind this cover page]
-1-
LOAN AGREEMENT BETWEEN THE PUENTE HILLS AUTO CENTER
ASSOCIATION AND THE CITY OF INDUSTRY FOR THE REFURBISHMENT AND
RENOVATION OF THREE EXISTING LED SIGNS AND FOR OTHER PUBLIC
PURPOSES
This Loan Agreement for the refurbishment of three existing LED signs and for Other Public Purposes (this “Loan” or “Agreement”), dated as of June __, 2025 (“Effective Date”), is entered into by and between the Puente Hills Auto Center Association, a California mutual benefit nonprofit corporation (“Association”) and the City of Industry, a municipal corporation (“Industry”). Association and Industry are individually referred to herein as “Party” and collectively as the “Parties.”
RECITALS
A. WHEREAS, the Association and Industry share a common interest in advertising and promoting the sale of new and pre-owned vehicles among the Association’s member dealerships as well as City sponsored events, including recreation programs, and public service announcements on the LED signs located within Industry’s automobile center; and B. WHEREAS, the technology for the LED signs has made significant improvements and advances since the signs were last refurbished and renovated in or around 2014; and
C. WHEREAS, the estimated cost to refurbish and renovate the LED signs is One Million Four Hundred Twelve ($1,403,012.00) and the Association does not have sufficient funding complete the construction; and
D. WHEREAS, Industry, in an effort to assist the Association in making necessary improvements to the LED signs, shall contribute approximately Eighty Percent (80%) ($1,122,412.00) of the estimated costs to refurbish and renovate the LED signs and the Association desires to borrow approximately Twenty Percent (20%) ($280,600.00) of the estimated costs, subject to the terms and conditions set forth herein; and E. WHEREAS, the loan serves a public purpose in that it will allow the Association, through its member dealerships, to promote on the LED signs the sale of new and pre-owned vehicles to area residents and thereby raising sales tax revenue for the state and local communities, in particular Industry, and Industry will be permitted to advertise on the LED signs City sponsored events, including recreation programs, and to make important public service announcements to the general public.
-2-
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties to this Agreement agree as follows:
ARTICLE 1.
LOAN PROVISIONS
1.1 The Loan
(a) Loan Terms.
(1) Loan Amount. Upon execution of this Agreement, Industry agrees to lend to Association, and Association agrees to borrow from and repay to Industry, the Loan in the amount of Two Hundred Eighty Thousand Six Hundred and 00/100 Dollars ($280,600.00) for Association’s use in refurbishment and renovation of the LED signs located at 17340 and 17070 Gale Avenue, City of Industry and any improvements to the sign at 17673 Gale Avenue. (collectively, the “LED Signs”). The City may, upon written authorization by the City Manager, approve an increase in the loan amount of up to ten percent (10%) for change orders for the sign upgrades.
(2) Loan Interest. Interest on the outstanding principal balance of the Loan shall accrue at simple interest at Four Percent (4%) per annum as of the Effective Date of this Agreement.
(b) Repayment. On January 1, 2026, and continuing the first day of the first month of each quarter of the fiscal year, (Fiscal Year is July 1 through and including June 30 and the first months of each quarter are July, October, January, and April) over a period of seven (7) years, the Association shall make payments of principal, together with interest accrued thereon, in the amount of not less than Eleven Thousand Five Hundred Thirty-Nine and 52/100 Dollars ($11,539.52), to Industry and on October 1, 2032, the Association shall make a final payment of principal and accrued interest of Eleven Thousand Five Hundred Thirty-Nine and 52/100 Dollars ($11,539.52), to Industry pursuant to the repayment schedule attached to this Agreement as Exhibit A and incorporated herein by this reference.
If any payment due on is more than ten (10) days late then, in addition to the amount owed, the Association shall remit a late fee equal to Five Percent (5%) of the amount then due. (c) Limitation on Repayment. The payment obligation of Association pursuant to this Agreement is solely from legally available from Association funds and said payments shall continue whether the LED Signs are operational, damaged or destroyed.
This Agreement shall not be subordinate to any other obligation of the Association. (d) Prepayment. Any portion of the outstanding principal balance due under this Loan Agreement may be prepaid at any time, and from time to time, without penalty or premium. Prepayments will be applied first to any accrued but unpaid interest, if any, and then to principal.
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ARTICLE 2.
ASSOCIATION REPRESENTATIONS AND WARRANTIES
2.1 Duly Organized. The Association warrants that it is duly organized under applicable laws of the State of California and is in compliance in all material respects with all laws and regulations necessary to borrow money.
2.2 Authority. The Association warrants that it has authority and has completed all proceedings and obtained all approvals necessary to execute, deliver, and perform its obligations under this Agreement, and the transaction contemplated thereby.
2.3 No Contravening Agreements. The Association warrants that the execution, delivery, and performance of this Agreement and all associated documents will not contravene, or constitute a default under or result in a lien upon assets of the Association pursuant to any applicable law or regulation, any charter document of the Association, or any instrument binding upon or affecting the Association, or any contract, agreement, judgment, order, decree, or other instrument binding upon or affecting the Association.
2.4 Valid and Binding Obligations. The Association warrants that, when duly executed by the Association, this Agreement shall constitute the legal, valid and binding obligations of the Association enforceable in accordance with their respective terms. The Association hereby waives any defense to the enforcement of the terms of the Agreement related to alleged invalidity of any provisions or conditions contained therein.
2.5 No Adverse Action. The Association warrants that there is no action, suit or proceeding pending or threatened against it which might adversely affect the Association in any material respect.
ARTICLE 3.
ASSOCIATION COVENANTS
3.1 Use of Proceeds. The Association covenants that it shall use the proceeds of the Loan for the purpose of refurbishing and renovating the LED Signs, as described herein, only.
The Association shall comply with all local, state and federal laws, rules, and regulations, including those pertaining to the use of public funds, in its refurbishment and renovation of the LED Signs, as described herein.
3.2 Repayment. The Association covenants to repay the Loan in accordance with the provisions set forth in Section 1.1.
3.3 Assignment. The Association shall not cause or permit any voluntary transfer, assignment or conveyance of this Agreement without the written consent of Industry.
3.4 Notification. Until the Loan is repaid in full, the Association covenants that it will promptly notify Industry in writing of the occurrence of any event which might materially
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and adversely affect its ability to perform its obligations under this Agreement, or which constitutes, or with the giving of notice or passage of time or both would constitute, an Event of Default under this Agreement. Such occurrences include, but are not limited to, the threat or initiation of lawsuits or other such proceedings against the Association that results in a final judgment, order or decree that has a materially adverse effect on the business of the Association and its ability to perform its obligations under this Agreement.
ARTICLE 4.
INDEMNITY REQUIREMENTS
4.1 Indemnity. The Association shall defend, hold harmless and indemnify Industry, and any and all of its officials, employees and agents, from and against all claims, liability, costs, expenses, loss or damages of any nature whatsoever, including reasonable attorney’s fees, arising out of or in any way connected with its failure to perform its covenants and obligations under this Agreement and any of its operations or activities related thereto, excluding the willful misconduct or the gross negligence of the Industry.
ARTICLE 5.
DEFAULT AND REMEDIES
5.1 Events of Default. Each of the following events will constitute an event of default (“Event of Default”) under this Agreement:
(a) Nonpayment. The Association’s failure to pay when due the principal and interest payable under the Loan, and such failure continues for thirty (30) days. (b) Noncompliance with Loan. The Association's failure, neglect or refusal to perform any promise, agreement, covenant or obligation contained in the Loan after any applicable cure periods.
(c) Noncompliance with Governmental Requirements. The Association's failure to comply with any governmental requirements.
(d) False Representations. If any material representation or disclosure made to Industry by the Association in connection with this Agreement, the Loan proves to be false or misleading in any material adverse respect when made.
(e) Bankruptcy. The filing by or against the Association of a voluntary or involuntary petition in bankruptcy or the adjudication of the Association as bankrupt or insolvent, or the filing of any petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under present or any future federal bankruptcy act or any other present or future applicable federal, state or other statute or law, or the seeking or consenting to or acquiescing in the appointment of any trustee, receiver, liquidator of the Association or any substantial part of or all of the property of the Association, and if any such proceeding is not dismissed within sixty (60) days; the Association is named in any such proceeding and the same is not dismissed within one hundred twenty (120) days.
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5.2 Declaring Default. Whenever any Event of Default has occurred, other than failure to pay any sums due, Industry shall give written notice of default to the Association. If the default is not cured within thirty (30) business days after the Date of Default (defined herein), or any extension approved in writing by Industry, Industry may enforce its rights and remedies under Section 5.3 below. Any default that has occurred shall be deemed to commence on the date that written notice of default is effective pursuant to Section 6.4 of this Agreement (the "Date of Default"). In the event of a default in the payment of any amount owing under the Loan when due, the Association shall have thirty (30) calendar days from the payment due date to cure such default whether or not Industry gives written notice.
5.3 Remedies. Upon the occurrence of any Event of Default, in addition to its other rights in this Agreement at law, or in equity, Industry may exercise any one or more of the following rights and remedies:
(a) accelerate and declare the entire unpaid principal balance of the Loan together with all accrued interest thereon, and all other sums owing to Industry immediately due and payable and the outstanding balance owed shall bear interest at the rate of Ten Percent (10%) per annum from the date of declaration of default by Industry; and (b) proceed at law, or in equity, to require the Association to perform its obligations and covenants under this Agreement; and/or
(c) notwithstanding any other agreement, including the License Agreement dated June __, 2025, by and between the Association and the City, the City shall have sole control over the operations and use of the LED Signs including the display of commercial advertisements for which the City receives and retains compensation, and neither the owners of the signs, if any, or the Association nor any other third parties shall have any further rights of access or use of the signs except as authorized by the City.
The remedies provided herein are cumulative and not exclusive of, and shall not prejudice any other remedy provided under law.
5.4 Costs and Expenses. The Association shall pay all reasonable costs and expenses incurred by or on behalf of Industry including, without limitation, reasonable attorneys’ fees, incurred in connection with Industry’s enforcement of the Agreement and the exercise of any or all of its rights and remedies hereunder.
ARTICLE 6.
MISCELLANEOUS
6.1 Relationship of Parties. Nothing contained in this Agreement shall be construed as creating the relationship of principal and agent between Industry and the Association or Industry’s or the Association’s elected and appointed officials, officers, agents or employees, and
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the Association shall at all times be deemed and shall be wholly responsible for the manner in which it or its agents, or both, perform under this Agreement.
6.2 Conflict of Interest.
(a) Interest of Employees, Agents, Consultants, Officers and Officials of Industry or the Association. Except for approved eligible administrative or personnel costs, no employee, agent, consultant, officer or official of Industry or the Association who exercises or has exercised any function or responsibilities with respect to activities assisted by general funds in whole or in part, or who is in a position to participate in a decision-making process or gain inside information with regard to such activities assisted under this Agreement, may obtain a personal or financial interest in or benefit from the activities assisted under this Agreement, or have an interest, direct or indirect, in any contract, subcontract or agreement with respect thereto, or in the proceeds thereunder either for himself/herself or for those with whom he/she has family or business ties, during his/her tenure and for one year thereafter.
6.3 Notices. Any notice, request or consent required pursuant to this Agreement shall be deemed delivered upon receipt when delivered personally or by facsimile transmission, provided that a transmission report is generated reflecting the accurate transmission thereof, or three (3) business days after being deposited in the U.S. mail, first class postage prepaid, return receipt requested, or one (1) day after deposit with a nationally recognized overnight carrier addressed as follows:
City of Industry: Joshua Nelson
City Manager
15626 Mayor Dave Way
Suite 100
City of Industry, CA 91744
with copies to: Casso & Sparks, LLP
13300 Crossroads Parkway North
Suite 410
City of Industry, CA 91746
Association: Mike Gilligan
Puente Hills Auto Center Association
655 N. Central Avenue, 17th Floor
Glendale, CA 91203
or to such other addresses as the Parties may designate by notice as set forth above.
6.4 Successors and Assigns. All of the terms of this Agreement shall apply to and be binding upon, and inure to the benefit of, the successors and permitted assigns of Industry and the Association, respectively, and all persons claiming under or through them.
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6.5 Attorneys' Fees. If any action is instituted by any Party to this Agreement to enforce this Agreement or the Loan or to collect any sums due hereunder or pursuant to the Loan, the prevailing Party in such action shall be entitled to recover its costs and reasonable attorneys' fees as awarded by the court in that action.
6.6 Severability. If one or more provisions of this Agreement are found invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the remaining provisions shall not in any way be affected, prejudiced, disturbed or impaired thereby, and all other provisions of this Agreement shall remain in full force and effect.
6.7 Amendments/Entire Agreement. Industry and the Association reserve the right to amend this Agreement by mutual consent. No amendment, modification, alteration or variation of the terms of this Agreement shall be valid unless in writing and signed and acknowledged and approved by both parties. This Agreement constitutes the entire agreement of the Parties and no oral understandings or agreement not incorporated herein shall be binding on either Party.
6.8 Joint and Several Liability. If the Association consists of more than one person or entity, each shall be jointly and severally liable to Industry for the performance of this Agreement.
6.9 Time. Time is of the essence in the performance of the terms and conditions of this Agreement.
6.10 Governing Law. The laws of the State of California shall govern this Agreement.
Any litigation concerning this Agreement shall take place in the superior or federal district court in Los Angeles County, California.
6.11 Non-Liability of Either Party, Their Officials, Officers, Employees and Agents.
No elected or appointed official, officer, member, employee or agent of either Party shall be personally liable to the other or any successor in interest, in the event of any default or breach by either Party or for any amount which may become due to one another or any successor under the terms of this Agreement.
6.12 Rights and Consent. No forbearance, failure or delay by either Party in exercising any right, power or remedy, nor any single or partial exercise by either Party of any right or remedy hereunder shall preclude the further exercise of such right, power or remedy.
The consent to any act or omission by the Association may not be construed as the Party’s consent to any other or subsequent act or omission or as a waiver of the requirement to obtain the Party’s consent in any other instance. All of the Party’s rights, powers and remedies are cumulative and shall continue in full force and effect until specifically waived in writing by the Party.
6.13 Duration/Survival. This Agreement shall continue in full force and effect until the Loan has been paid in full. Notwithstanding the foregoing, the indemnification provisions of
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Section 4.1 of this Agreement shall survive the expiration of this Agreement and the making and repayment of the Loan.
6.14 Headings. The headings within this Agreement are for the purpose of reference only and shall not limit or otherwise affect any of the terms of this Agreement.
6.15 Counterparts, Facsimile Copies. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.
IN WITNESS WHEREOF, Industry and the Association have executed this Agreement as of the Effective Date.
CITY OF INDUSTRY
By: ________________________________
Cory C. Moss, Mayor
ATTEST:
By: ________________________________
Julie Gutierrez-Robles, City Clerk
APPROVED AS TO FORM
By: __________________________________
James M. Casso, City Attorney
PUENTE HILLS AUTO CENTER ASSOCIATION
By: _________________________________
Mike Gilligan, Association President
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EXHIBIT A
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Loan amortization schedule
Enter values Loan summary
Optional extra payments $0.00 Lender name City of Industry Payment
number
Payment
date
Beginning
balance
Scheduled
payment
Extra
payment
Total
payment Principal Interest Ending
balance
Cumulative
interest
1 1/1/2026 $280,600.00 $11,539.52 $0.00 $11,539.52 $8,733.52 $2,806.00 $271,866.48 $2,806.00 2 4/1/2026 $271,866.48 $11,539.52 $0.00 $11,539.52 $8,820.85 $2,718.66 $263,045.63 $5,524.66 3 7/1/2026 $263,045.63 $11,539.52 $0.00 $11,539.52 $8,909.06 $2,630.46 $254,136.57 $8,155.12 4 10/1/2026 $254,136.57 $11,539.52 $0.00 $11,539.52 $8,998.15 $2,541.37 $245,138.42 $10,696.49 5 1/1/2027 $245,138.42 $11,539.52 $0.00 $11,539.52 $9,088.13 $2,451.38 $236,050.29 $13,147.87 6 4/1/2027 $236,050.29 $11,539.52 $0.00 $11,539.52 $9,179.01 $2,360.50 $226,871.27 $15,508.37 7 7/1/2027 $226,871.27 $11,539.52 $0.00 $11,539.52 $9,270.80 $2,268.71 $217,600.47 $17,777.09 8 10/1/2027 $217,600.47 $11,539.52 $0.00 $11,539.52 $9,363.51 $2,176.00 $208,236.96 $19,953.09 9 1/1/2028 $208,236.96 $11,539.52 $0.00 $11,539.52 $9,457.15 $2,082.37 $198,779.81 $22,035.46 10 4/1/2028 $198,779.81 $11,539.52 $0.00 $11,539.52 $9,551.72 $1,987.80 $189,228.09 $24,023.26 11 7/1/2028 $189,228.09 $11,539.52 $0.00 $11,539.52 $9,647.24 $1,892.28 $179,580.86 $25,915.54 Loan amount $280,600.00
Annual interest rate 4.00%
Loan period in years 7
Number of payments per year 4
Start date of loan 1/1/2026
Scheduled payment $11,539.52
Scheduled number of payments 28
Actual number of payments 28
Total early payments $0.00
Total interest $42,506.47
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12 10/1/2028 $179,580.86 $11,539.52 $0.00 $11,539.52 $9,743.71 $1,795.81 $169,837.15 $27,711.35 13 1/1/2029 $169,837.15 $11,539.52 $0.00 $11,539.52 $9,841.15 $1,698.37 $159,996.00 $29,409.72 14 4/1/2029 $159,996.00 $11,539.52 $0.00 $11,539.52 $9,939.56 $1,599.96 $150,056.45 $31,009.68 15 7/1/2029 $150,056.45 $11,539.52 $0.00 $11,539.52 $10,038.95 $1,500.56 $140,017.50 $32,510.24 16 10/1/2029 $140,017.50 $11,539.52 $0.00 $11,539.52 $10,139.34 $1,400.17 $129,878.15 $33,910.42 17 1/1/2030 $129,878.15 $11,539.52 $0.00 $11,539.52 $10,240.74 $1,298.78 $119,637.42 $35,209.20 18 4/1/2030 $119,637.42 $11,539.52 $0.00 $11,539.52 $10,343.14 $1,196.37 $109,294.28 $36,405.58 19 7/1/2030 $109,294.28 $11,539.52 $0.00 $11,539.52 $10,446.57 $1,092.94 $98,847.70 $37,498.52 20 10/1/2030 $98,847.70 $11,539.52 $0.00 $11,539.52 $10,551.04 $988.48 $88,296.66 $38,487.00 21 1/1/2031 $88,296.66 $11,539.52 $0.00 $11,539.52 $10,656.55 $882.97 $77,640.11 $39,369.96 22 4/1/2031 $77,640.11 $11,539.52 $0.00 $11,539.52 $10,763.12 $776.40 $66,877.00 $40,146.36 23 7/1/2031 $66,877.00 $11,539.52 $0.00 $11,539.52 $10,870.75 $668.77 $56,006.25 $40,815.13 24 10/1/2031 $56,006.25 $11,539.52 $0.00 $11,539.52 $10,979.45 $560.06 $45,026.80 $41,375.20 25 1/1/2032 $45,026.80 $11,539.52 $0.00 $11,539.52 $11,089.25 $450.27 $33,937.55 $41,825.46 26 4/1/2032 $33,937.55 $11,539.52 $0.00 $11,539.52 $11,200.14 $339.38 $22,737.41 $42,164.84 27 7/1/2032 $22,737.41 $11,539.52 $0.00 $11,539.52 $11,312.14 $227.37 $11,425.26 $42,392.21 28 10/1/2032 $11,425.26 $11,539.52 $0.00 $11,425.26 $11,311.01 $114.25 $0.00 $42,506.47
ITEM NO. 7.1
MEMORANDUM
TO: Honorable Mayor and Members of the City Council
FROM: Joshua Nelson, City Manager
STAFF: Eduardo Manriquez, Contract Associate Planner
DATE: June 10, 2025
SUBJECT: Consideration of a Resolution approving a Mitigated Negative Declaration with a Mitigation Monitoring Program, and a Resolution approving Development Plan Application No. 22-05, to allow a 109,423 square-foot expansion to an existing 558,737 square-foot industrial building, along with other associated site improvements, and the removal of an existing solar farm and truck parking area, for the property located at 20701 Currier Road, City of Industry, California
Background:
Proposal:
Sysco Corporation (“Applicant”), is requesting approval of Development Plan Application (“DP”) No. 22-05. The Project consists of the demolition of an existing solar farm located east of the existing main building and a truck parking area located northeast of the main building in order to make area to allow for a 109,423 square-foot expansion to an existing 558,737 square-foot industrial building, along with other associated site improvements. (“Project”).
Location and Surroundings:
The site is comprised of four parcels totaling 42.1-acres (1,834,000 square feet) and is located at 20701 Currier Road, City of Industry, California (APNs: 8760-023-023, -026, -030, and -034) (located east of South Lemon Avenue and north of Currier Road) (“Property”).
Immediate surrounding properties are zoned Industrial (M) and Institutional (Inst) in the City.
Land uses surrounding the Property are described below:
North: The Property is bounded by the San Jose Creek and Southern Pacific Railroad to the north. These properties have a zoning designation of Industrial (M).
East: Warehouse and industrial uses that have an Industrial (M) zoning designation are located east of the Property and are occupied and operated by Onyx Shutters (Window shutter manufacturer and distributor), Kings Two Dental (Dental supplies distributor) and Soderberg Manufacturing (Manufacturing aircraft lighting fixtures and electronics).
South: The Property is bounded by Currier Road to the south. South of Currier Road are warehouse and industrial uses that have an Industrial (M) zoning designation and are occupied and operated by Furniture of America (Furniture distributor) and Clemson Distribution (Wholesale distributor of dairy products).
West: Land uses west of the Project site consist of industrial and institutional uses, including Ron Hockwalt Academies which is abutting the Project site and has a zoning designation of Institutional (Inst). Across South Lemon Avenue is STG Logistics (Warehouse and distribution center of general goods) that has an Industrial (M) zoning designation.
Background:
City records show in 1991, the City approved a 539,309 square-foot industrial building at the Property, allowing Sysco to operate as a food distribution center. On November 9, 2009, the City approved a 19,428 square-foot building expansion to the 539,309 square-foot industrial building. Since then, the 558,737 square-foot building has continued to operate as a food distribution center.
Planning Entitlements:
Pursuant to Chapter 17.36.020 of the City’s Municipal Code (“Code”), a development plan application is required to construct the new building.
This Project involves the following Planning Entitlement application:
A. Development Plan Application – Long Form: In reviewing this Development Plan Application – Long Form, the City Council will evaluate whether the Project complies with the requirements set forth in Chapter 17.36 of the City’s Code.
The existing uses and buildings on the Property are described in Table 1 below. Also refer to Exhibit B, Sheet A1.00A - Existing Site Plan and Demolition Plan.
Table 1 - Existing Uses and Building Locations
Existing Uses
and Building
Locations
Square
Footage
(SF)
Freezer (Main
Building)
95,425
SF
Cooler (Main
Building)
84,782
SF
Dry Warehouse
(Main Building)
187,117
SF
Charging (Main
Building)
14,097
SF
Cold Dock
(Main Building)
27,954
SF
Dry Dock (Main
Building)
37,747
SF
Offices on 1st
floor and
Mezzanine
(Main Building)
83,719
SF
Mechanical
(Main Building)
2,740
SF
Maintenance
(Main Building)
2,530
SF
Fire Protection
(Main Building)
454 SF
Transportation
Center
(Outbuilding)
9,854
SF
Driver’s Building
(Outbuilding) 2,250
SF
Dispatch Office
(Outbuilding) 3,800
SF
Dolly Storage
(Outbuilding)
6,268
SF
Total Existing
Building
Square
Footage
558,737
SF
Table 2 below provides information relative to the additions to the existing Main Building. Also refer to Exhibit B, Sheet A1.00B – Proposed Site Plan.
Proposed Square
Main Building
Additions
and Uses
Footage
(SF)
Proposed
Offices
1,620 SF
Proposed
Cold Dock
24,873 SF
Proposed
Freezer
37,261 SF
Proposed IC
Freezer
3,856 SF
Proposed
Maintenance
4,233 SF
Proposed Dry
Dock
7,085 SF
Proposed Dry
Storage
26,866 SF
Proposed
Pump Room
400 SF
Proposed
VMF Truck
Bay
1,515 SF
Proposed
Refrigeration
Skid
1,714 SF
Total
Proposed
109,423
SF
The Project includes the removal of an onsite solar farm that produces approximately 78,000 kwh which is approximately 1.2% of the current net usage of the facility per year (6,515,212 kwh/year). Though the Project would result in the removal of renewable energy resources, the amount of energy currently produced by the solar panels is negligible. Sysco would continue purchasing electricity from SCE. Additionally, the proposed Project would comply with the Building Energy Efficiency Standards and CALGreen. Therefore, implementation of the proposed Project would not conflict with or obstruct plans for renewable energy and energy efficiency, and a less than significant impact would occur.
Additionally, the Project shall comply with the applicable provisions of the California Green Building Standards Code and provide at least 15 percent of the rooftop area for solar photovoltaic power.
Discussion:
Staff Analysis:
General Plan
The General Plan land use designation of the Property is “Employment”. Allowable uses in the Employment land use designation include industrial manufacturing, assembly, printing, machining, milling, welding, research and development, distribution, warehousing, storage, and supporting office uses. The proposed Project is an allowable use in the Employment land use designation in that an industrial building is a permitted use, and the proposed Project is for the expansion of the existing building for the purpose of warehousing and distribution.
Zoning
The Property has an Industrial (M) zoning designation. The proposed development is consistent with zoning designation because the 109,423 square feet building expansion to the existing main warehouse facility and associated improvements, is permitted in the Industrial Zone.
The Project is subject to the development standards set forth in Chapter 17.36 of the City’s Code.
As provided in Table 3 below, the Project meets or exceeds the Industrial Zone development standards.
Table 3 – Title 17 Zoning Standards
Development
Standard
Code
Requirement
Provided Compliance
Maximum
Building
Coverage
50%
1,834,000 sf
33.3%
610,781
sf
Yes
Maximum
Building
Height
150 feet 145 feet Yes
Minimum
Landscape
Coverage
Required
12%
220,080 sf
12.03%
220,562
sf
Yes
Setbacks 30 feet from
the curb line
of all streets
82-feet4-inches
from
Currier
Road
579 feet
from
South
Lemon
Street
Yes
Parking and Access
Pursuant to Chapter 17.36.060.K.1. of the City’s Code, the parking requirement for the Project is 150 spaces plus one space per 1,000 square - feet of floor area over 100,000 square feet. This equates to a parking requirement of 718 spaces. The Applicant is proposing a total of 887 parking spaces, thereby complying with the City’s parking requirement.
Table 4 – Car/Truck/Trailer Parking Schedule
Car/Truck/Trailer Parking Schedule
Existing
Parking
Before
Work
Begins
Existing
Parking
Remaining
After Work
Begins
New
Parking
Added
Total Parking
Provided
Standard Car
Parking
501 495 0 495
Compact Parking 6 6 0 6
Non – Complaint
Parking (To be
removed)*
18 0 0 0
Clean Air/ E.V.
Parking
21 21 0 21
Accessible
Parking
13 13 3 16
Total Car Parking 559 531 7 538
Total Truck/
Trailer Parking
368 182 167 349
Total
Car/Truck/Trailer
Parking
927 713 174 887
Total Parking
Required Per
Code - (150
spaces plus 1
space per 1,000
sq. ft. of floor
area over
100,000 sq. ft.)
609
spaces
required
before
work
(existing
558,737
sq. ft.)
N/A 718
spaces
required
with new
square
footage
(proposed
668,160
sq. ft.)
887 spaces
proposed
Table 5 - Truck Dock Parking Schedule
Truck Dock Parking Schedule
Existing Dock Parking
Before Work Begins
Existing
Dock
Parking
Remaining
After Work
Begins
New
Dock
Parking
Added
Total
Dock
Parking
Provided
Dock
Parking
*
65 65 28 93
* Dock Parking Not Included In Overall Parking Count.
The Project is providing two (2) driveways off Currier Road, one sixty-four-foot (64’) wide and a forty-six-foot (46’) wide driveway. Also, existing is a forty-two-foot (42’) wide driveway off of South Lemon Avenue. Per the Standard of Review and Development Guidelines (Section
17.36.060.N.) access requirements, the required minimum driveway width is 26 feet. The existing interior drive aisles are 26 to 64 feet wide throughout the Property. The City’s required minimum drive aisle width is 26-feet.
Therefore, the configuration, size, design, and access of the proposed Project complies with the City’s zoning requirements (Chapter 17.36.060) and the City’s congestion management plan (Chapter 17.68).
The City’s Engineering Department has found the Project’s circulation pattern in conformance with local, state, and federal regulations regarding circulation and traffic pattern design.
Additionally, there is adequate circulation around the Property and the parking lot, thereby avoiding any potential traffic impacts such as congestion and/or stacking.
Architecture
The building elevations are similar in scale and massing to the existing development and establish a smooth transition between uses and building additions. The overall architecture is simple and modern, and the color scheme is appropriate to the design.
Findings - Chapter 17.36.070
Pursuant to Chapter 17.36.070 of the Municipal Code, the City Council must make the following findings in order to approve an application for the development plan. a. The site is suitable for development in accordance with the development plan.
The site is suitable for development in accordance with the development plan in that the Project is in conformance with the City’s General Plan, Zoning Code and all applicable development standards outlined in Section 17.36.060 of the Zoning Code. This includes setbacks, building height, parking, and landscape standards. Further, pursuant to the provisions of the General Plan, industrial uses are permitted in the Employment land use designation, and the Project
does not conflict with the established goals and objectives of the Land Use Element of the General Plan. The proposed Project is an allowable use in the Employment land use designation in that an industrial building with supporting office uses is a permitted use, and the proposed Project is for the expansion of an existing industrial building. The Property has an Industrial (M) Zoning Designation. The site is currently utilized by SYSCO for the purposes of warehousing and distributing food, which is permitted in the Industrial Zone. The business is seeking to expand the square footage of the existing building. The Project is in accord with the objectives of the Zoning Code because the Zoning Code designates the Project site as Industrial. The proposed development is consistent with the Industrial land use designation because it supports the primary use of a warehouse and distribution center for food. b. The total development is arranged so as to avoid traffic congestion, ensure the public health, safety, and general welfare, or prevent adverse effects upon neighboring properties.
The total development is arranged to avoid traffic congestion, ensure the public health, safety, and general welfare, or prevent adverse effects upon neighboring properties, because it has been designed to minimize any potential impacts by complying with the City’s Code.
Furthermore, the City’s Engineering Department has found the Project’s circulation pattern to be in conformance with local, state, and federal regulations regarding circulation and traffic pattern design. Additionally, there is adequate circulation around the Project site and the parking lot, thereby avoiding any potential traffic impacts such as congestion and/or stacking.
In addition, the San Gabriel Valley Council of Governments (SGVCOG) has developed an online VMT evaluation tool to assess whether a project is screened out from further VMT analysis. The analysis concluded that the Project did not meet the thresholds for the Transit Priority Area (TPA), Low VMT Area or Small Project screening criteria. Therefore, a full VMT analysis was performed for the Project and concluded that the Project would result in approximately 60,100 less vehicle miles of travel weekly with the proposed expansion. This is due to the proposed expanded warehouse being able to serve the increase in local demand, rather than using warehouses located as far away as San Diego County to serve customers in Los Angeles.
Therefore, the Project would have a less than significant impact and would not have significant conflict with a program, plan, or ordinance, or policy addressing the circulation system, including transit, roadway, bicycle, and pedestrian facilities. No mitigation is required.
The Project involves expanding an existing industrial building, measuring a total of 558,737 square feet to be used for warehousing, distribution, and ancillary office purposes. The project will continue to benefit the general welfare of the community as it expands employment and business opportunities. The Project will not have a significant effect on the environment and applicable conditions of approval have been incorporated into the Project. Furthermore, the City’s building permit process ensures that any proposed building improvements are built in accordance with City standards, thus protecting the public health, safety, and welfare.
Therefore, it has been determined that the Project is not detrimental to the public health, safety, or welfare, and will not have adverse effects upon neighboring properties. c. The development is in general accord with all elements of this title.
The Project site is designated Industrial (M), which is reserved for uses such as warehouses, manufacturing, and light manufacturing and assembly. The expansion of an industrial building used for warehousing, distribution, and ancillary office space is consistent with the land uses
intended for the Industrial zone. The Project site is surrounded by a mixture of industrial and manufacturing uses and complies with or exceeds development standards for this zone.
Therefore, it has been determined that the expanded industrial building use is consistent with the Zoning Ordinance.
d. The development is consistent with the provisions of the general plan or any applicable redevelopment plan.
The development is consistent with the provisions of the General Plan or any applicable redevelopment plan because the proposed building expansion is consistent with the Employment land use designation set forth in the City’s General Plan. Permissible land uses in the Employment land use designation include such uses as distribution, warehouses, storage, and supporting ancillary uses. Additionally, the Project is consistent with General Plan Policy LU5 that states the City should provide “[h]igh quality and well-maintained properties, buildings, and infrastructure that enhance property values and encourage additional public and private investment.” The Project will provide a building expansion that is of high architectural design, along with new infrastructure that will enhance the property value due to the increase in square footage. New buildings, additions, and other structures require an appraisal from the LA County Assessor’s office. The value of new construction is added to the existing improvement assessed value.
Environmental Analysis:
An Initial Study/Mitigated Negative Declaration (“IS/MND”) was completed in compliance with the California Environmental Quality Act (“CEQA”). The IS/MND concludes that the Project will not have a significant adverse impact on the environment with the implementation of recommended Conditions of Approval and mitigation measures contained in the IS, which have been incorporated in the Conditions of Approval. A Notice of Availability/Notice of Intent (NOA/NOI) to adopt a MND was advertised and distributed to initiate a 20-day public comment period, beginning on October 18, 2024, and concluded on November 6, 2024.
The IS/MND determined that the Project will have less than significant impacts with the incorporation of mitigation measures. Specifically, the Project has the potential for significant effects in environmental topics which include Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Noise, and Tribal Cultural Resources, however, each potential impact will be mitigated to less than significant with the mitigation measures identified in the IS/MND.
The mitigation measures have been prepared in conformance with Section 21081.6 of the California Public Resources Code, and conditions of approval will be put in place to ensure compliance with the mitigation measures. Section 21081.6 of the California Public Resources Code requires a public agency to provide measures to mitigate or avoid significant effects on the environment which are fully enforceable through permit conditions, agreements, or other measures.
Comment letters were received from the Coalition for Responsible Equitable Economic Development Los Angeles (CREED LA) and the Supporters Alliance For Environmental Responsibility (SAFER).
Both comment letters believe that the proposed IS/MND is flawed and that an EIR should be prepared for the Project. Staff has reviewed the comments and does not agree with the commenters’ statements that an EIR must be prepared to analyze the impacts associated with
the proposed Project. Staff believes the Draft IS/MND provides substantial evidence that implementation of the proposed Project would not create significant and unavoidable environmental impacts. Staff’s response to the comment letters is attached to the Draft IS/MND.
Potentially Significant Impacts
The following is a list of each potentially significant impact of the Project identified in the IS/MND. The title of each impact (e.g., Impact CUL-1) corresponds with the discussion of each impact contained in the IS/MND. Each potential impact is followed by a mitigation measure or measures. Each impact and mitigation measure are followed by an appropriate finding, in accordance with CEQA requirements. In each case, the mitigation measures listed below reduce the potential impact to a less-than-significant level.
Cultural Resources
Based on the results of a cultural resources records search and due to the level of past ground disturbance on the Property, it is not anticipated that any archaeological resources will be found.
Also, because the proposed Project involves the development of a site that has been so heavily disturbed, it is not anticipated that intact subsurface archaeological resources would be encountered during excavation and grading activities. However, Project related grounddisturbing activities have the potential to reveal unknow buried deposits, therefore a qualified archeologist will be on call during all grading or any ground disturbing activities. In the event human remains or artifacts are unearthed, the following mitigation measure will be implemented:
CUL-1: CUL-1 Inadvertent Archaeological Discovery
If previously unidentified cultural materials are unearthed during construction, work shall be halted in that area until a qualified archaeologist can assess the significance of the find. If human remains are encountered, State Health and Safety Code Section 7050.5 states that no further disturbance shall occur until the County Coroner has made a determination of origin and disposition pursuant to Public Resources Code Section 5097.98. The County Coroner must be notified of the find immediately. If the remains are determined to be prehistoric, the Coroner will notify the Native American Heritage Commission (NAHC), which will determine and notify the Most Likely Descendant (MLD). With the permission of the landowner or his/her authorized representative, the MLD may inspect the site of the discovery. The MLD shall complete the inspection within 48 hours of notification by the NAHC. The MLD may recommend scientific removal and nondestructive analysis of human remains and items associated with Native American burials.
Geology and Soils
The Project will be required to comply with all requirements and recommendations outlined in the Geotechnical Investigation prepared by Southern California Geotechnical, as required by Mitigation Measure GEO-1. Furthermore, the Project will comply with all applicable provisions of the Uniform Building Code (UBC) and California Building Code (CBC) that would act to minimize any unstable soils or unstable geologic units that may be encountered. On this basis, the potential for the Project to be located on a geologic units or soil that is unstable, or that would become unstable because of the Project and potentially result in on- or off-site landslides, lateral spreading, subsidence, liquefaction, or collapse is less than significant with mitigation
incorporated:
GEO-1: Grading
The Project shall incorporate applicable recommendations provided in the Geotechnical Investigation prepared by Southern California Geotechnical, dated June 13, 2023 (Appendix I).
The recommendations are presented in Section 6.0 Conclusions and Recommendations of the report under the following subheadings: Seismic Design Considerations, Geotechnical Design Considerations, Site Grading Recommendations, Construction Considerations, Foundation Design and construction, Floor Slab Design and Construction, Retaining Wall Design and construction and Pavement Design Parameters (pages 10-29).
GEO-2: Inadvertent Paleontological Discovery
In the event that paleontological resources are inadvertently discovered during ground disturbing activities, work shall be halted until the qualified paleontologist can document the discovery as appropriate, evaluate the potential resource, and assess the significance of the find under the criteria set forth in CEQA Guidelines Section 15064.5.
Hazards and Hazardous Materials
Due to the Property’s construction and operation history, there is a possibility that hazards and hazardous materials could be present on the Property. A Phase I Environmental Site Assessment Report was conducted on the Property. To reduce any impacts during construction and business operations, the following mitigation measure reduces the impacts related to soil contamination to a less than significant level.
HAZ-1 Phase 1 ESA: The Project Applicant shall incorporate applicable recommendations provided in the Phase I Environmental Site Assessment prepared by Environmental Science Associates (ESA). dated November 2022 (Appendix C), The recommendations are identified as follows:
• Responsible parties, landowners, and contractors performing subsurface activities at the site should be prepared to encounter residual petroleum- and hydrocarbon-contaminants in soils and groundwater, particularly following extended rainy periods when groundwater levels and flows may increase. Appropriate health and safety equipment and protocols should be managed properly to avoid threats to human health or the environment associated with the HRECs.
• In order to identify residual contaminants in soils associated with previous agricultural uses at the subject property, preparation of a Soil Investigation Report prior to construction is required. Any contaminated soils identified in the report shall be removed, transported, and disposed in accordance with applicable regulations.
Noise
Construction and operational noise could potentially impact the surrounding area. Therefore, to reduce any impacts during construction and business operations, the following mitigation measures are recommended to reduce noise to a less than significant level.
NOI-1 Temporary Noise Barriers
Temporary noise barriers shall be installed along the western Project boundary to the south of the Vehicle Truck Bay Construction (the project site boundary to the north of the schools) to shield the sensitive receivers from construction noise. The barrier for the project site boundary to the north of the schools shall have a minimum length of 500 feet starting from the Project’s northwestern corner where the security gate is and extending eastward along the Project boundary and have a minimum height of 15 feet (with the top of the barrier at least 15 feet above the ground surface of the school(s) to the south of the proposed sound barrier) that is made of sound blanket, plywood or other solid material capable of reducing on-site construction noise levels by at least 10 dBA. The temporary noise barrier shall be in place during the site improvement construction phase (e.g., during the Vehicle Truck Bay Construction).
NOI-2 Construction Noise Control Plan
The construction contract bid shall require the chosen construction contractor(s) to prepare a Construction Noise Control Plan. The details of the Construction Noise Control Plan shall be included as part of the permit application drawing set and as part of the construction drawing set. The Construction Noise Control Plan shall include, but not be limited to the following:
• During the entire active construction period, equipment and trucks used for project construction shall utilize the best available noise control techniques (e.g., improved mufflers, equipment regarding-design, use of intake silencers, ducts, engine enclosures, and acoustically attenuating shields or shrouds).
• Require the contractor to use impact tools (e.g., jack hammers and hoe rams) that are hydraulically or electrically powered wherever such alternatives are available in the market. Where the use of pneumatic tools is unavoidable, an exhaust muffler on the compressed air exhaust shall be used along with external noise jackets on the tools. • During the entire active construction period, stationary noise sources shall be located as far from sensitive receptors as possible, and they shall be muffled and enclosed within temporary sheds, or insulation barriers or other measures • During the entire active construction period, noisy operations shall be combined so that they occur in the same time period as the total noise level produced would not be significantly greater than the level produced if the operations were performed separately (and the noise would be of shorter duration).
• Select haul routes that avoid the greatest amount of sensitive use areas.
Tribal Cultural Resources
As of July 1, 2015, Public Resources Code Sections 21080.1, 21080.3.1, and 21080.3.2 require public agencies to consult with California Native American tribes recognized by the Native American Heritage Commission (NAHC) for the purpose of mitigating impacts to tribal cultural resources. This law does not preclude agencies from initiating consultation with the tribes that are culturally and traditionally affiliated with their jurisdictions.
In accordance with Public Resources Code Section 21080.3.1(d), a lead agency is required to provide formal notification of intended development projects to Native American tribes that have
requested to be on the lead agency’s list for receiving such notification. The formal notification is required to include a brief description of the proposed Project and its location, lead agency contact information, and a notification that the California Native American tribe has 30 days to request consultation for tribal cultural resources. On January 9, 2023, the City sent out notification to three (3) tribes that are traditionally and/or culturally affiliated with the Project area or have specifically requested notice for all projects within the City. The tribes included in the notification were the Gabrieleño Band of Mission Indians – Kizh Nation, Gabrielino Tongva Tribe, and Soboba Band of Luiseno Indians. The City received a request for consultation from the Gabrieleño Band of Mission Indians – Kizh Nation and consultation was conducted on March 9, 2023. The Gabrieleño Band of Mission Indians – Kizh Nation provided mitigation measures on April 10, 2023, which are incorporated into this IS/MND.
TCR-1: Retain a Native American Monitor Prior to Commencement of Ground-Disturbing Activities
A. The project applicant/lead agency shall retain a Native American Monitor from or approved by the Gabrieleño Band of Mission Indians – Kizh Nation. The monitor shall be retained prior to the commencement of any “ground-disturbing activity” for the subject project at all project locations (i.e., both on-site and any off-site locations that are included in the project description/definition and/or required in connection with the project, such as public improvement work). “Ground-disturbing activity” shall include, but is not limited to, demolition, pavement removal, potholing, grading, excavation, drilling, and trenching.
B. A copy of the executed monitoring agreement shall be submitted to the lead agency prior to the earlier of the commencement of any ground-disturbing activity, or the issuance of any permit necessary to commence a ground-disturbing activity.
C. The monitor will complete daily monitoring logs that will provide descriptions of the relevant ground-disturbing activities, the type of construction activities performed, locations of ground-disturbing activities, soil types, cultural-related materials, and any other facts, conditions, materials, or discoveries of significance to the Tribe. Monitor logs will identify and describe any discovered TCRs, including but not limited to, Native American cultural and historical artifacts, remains, places of significance, etc., (collectively, tribal cultural resources, or “TCR”), as well as any discovered Native American (ancestral) human remains and burial goods. Copies of monitor logs will be provided to the project applicant/lead agency upon written request to the Tribe.
D. On-site tribal monitoring shall conclude upon the latter of the following (1) written confirmation to the Kizh from a designated point of contact for the project applicant/lead agency that all ground-disturbing activities and phases that may involve ground disturbing activities on the project site or in connection with the project are complete; or (2) a determination and written notification by the Kizh to the project applicant/lead agency that no future, planned construction activity and/or development/construction phase at the project site possesses the potential to impact Kizh TCRs.
E. Upon discovery of any TCRs, all construction activities in the immediate vicinity of the discovery shall cease (i.e., not less than the surrounding 50 feet) and shall not resume
until the discovered TCR has been fully assessed by the Kizh monitor and/or Kizh archaeologist. The Kizh will recover and retain all discovered TCRs in the form and/or manner the Tribe deems appropriate, in the Tribe’s sole discretion, and for any purpose the Tribe deems appropriate, including for educational, cultural, and/or historic purposes.
TCR-2 Unanticipated Discovery of Tribal Cultural Resources Objects (Non-Funerary/NonCeremonial) A. Native American human remains are defined in PRC 5097.98 (d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute.
B. If Native American human remains and/or grave goods discovered or recognized on the project site, then all construction activities shall immediately cease. Health and Safety Code Section 7050.5 dictates that any discoveries of human skeletal material shall be immediately reported to the County Coroner and all ground-disturbing activities shall immediately halt and shall remain halted until the coroner has determined the nature of the remains. If the coroner recognizes the human remains to be those of a Native American or has reason to believe they are Native American, he or she shall contact, by telephone within 24 hours, the Native American Heritage Commission, and Public Resources Code Section 5097.98 shall be followed.
C. Human remains and grave/burial goods shall be treated alike per California Public Resources Code section 5097.98(d)(1) and (2).
D. Construction activities may resume in other parts of the project site at a minimum of 200 feet away from discovered human remains and/or burial goods, if the Kizh determines in its sole discretion that resuming construction activities at that distance is acceptable and provides the project manager express consent of that determination (along with any other mitigation measures the Kizh monitor and/or archaeologist deems necessary). (CEQA Guidelines Section 15064.5(f).)
E. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods. Any historic archaeological material that is not Native American in origin (non-TCR) shall be curated at a public, non-profit institution with a research interest in the materials, such as the Natural History Museum of Los Angeles County or the Fowler Museum, if such an institution agrees to accept the material. If no institution accepts the archaeological material, it shall be offered to a local school or historical society in the area for educational purposes.
F. Any discovery of human remains/burial goods shall be kept confidential to prevent further disturbance.
TCR-3 Unanticipated Discovery of Human Remains and Associated Finery or Ceremonial Objects
A. As the Most Likely Descendant (“MLD”), the Koo-nas-gna Burial Policy shall be implemented. To the Tribe, the term “human remains” encompasses more than human bones. In ancient as well as historic times, Tribal Traditions included, but were not limited to, the preparation of the soil for burial, the burial of funerary objects with the deceased, and the ceremonial burning of human remains.
B. If the discovery of human remains includes four or more burials, the discovery location shall be treated as a cemetery and a separate treatment plan shall be created.
C. The prepared soil and cremation soils are to be treated in the same manner as bone fragments that remain intact. Associated funerary objects are objects that, as part of the death rite or ceremony of a culture, are reasonably believed to have been placed with individual human remains either at the time of death or later; other items made exclusively for burial purposes or to contain human remains can also be considered as associated funerary objects. Cremations will either be removed in bulk or by means as necessary to ensure complete recovery of all sacred materials.
D. In the case where discovered human remains cannot be fully documented and recovered on the same day, the remains will be covered with muslin cloth and a steel plate that can be moved by heavy equipment placed over the excavation opening to protect the remains. If this type of steel plate is not available, a 24- hour guard should be posted outside of working hours. The Tribe will make every effort to recommend diverting the project and keeping the remains in situ and protected. If the project cannot be diverted, it may be determined that burials will be removed.
E. In the event preservation in place is not possible despite good faith efforts by the project applicant/developer and/or landowner, before ground-disturbing activities may resume on the project site, the landowner shall arrange a designated site location within the footprint of the project for the respectful reburial of the human remains and/or ceremonial objects.
F. Each occurrence of human remains and associated funerary objects will be stored using opaque cloth bags. All human remains, funerary objects, sacred objects and objects of cultural patrimony will be removed to a secure container on site if possible. These items should be retained and reburied within six months of recovery. The site of reburial/repatriation shall be on the project site but at a location agreed upon between the Tribe and the landowner at a site to be protected in perpetuity. There shall be no publicity regarding any cultural materials recovered.
G. The Tribe will work closely with the project’s qualified archaeologist to ensure that the excavation is treated carefully, ethically, and respectfully. If data recovery is approved by the Tribe, documentation shall be prepared and shall include (at a minimum) detailed descriptive notes and sketches. All data recovery data recovery-related forms of documentation shall be approved in advance by the Tribe. If any data recovery is performed, once complete, a final report shall be submitted to the Tribe and the NAHC.
The Tribe does NOT authorize any scientific study or the utilization of any invasive and/or destructive diagnostics on human remains.
Public Comments:
The IS/MND was made available for public and agency review from October 18, 2024, through November 6, 2024, and was posted at the Property, City Hall, City of Industry Council Chambers, Fire Station 118, and on the City’s website.
On December 26, 2024, after the public comment period, staff received a letter from Lozeau Drury LLP on behalf of Supporters Alliance for Environmental Responsibility (“SAFER”). Their letter requests that the City not rely on the MND and instead prepare and circulate an EIR before further consideration of the Project because they believe there is a fair argument that the Project may have significant adverse impacts on air quality. Staff believes the Draft IS/MND provides substantial evidence that implementation of the proposed Project would not create significant and unavoidable environmental impacts. Staff’s responses to these comment letter are included within the Draft IS/MND
On April 23, 2025, after the public comment period, staff received a letter from Adams Broadwell Joseph & Cardozo on behalf of Coalition of Responsible Equitable Economic Development Los Angeles (“CREED LA”) requesting all records related to the Project.
Fiscal Impact:
Development of the Project will generate revenues for the City in the form of building permit fees which defray planning and inspections costs, as well as additional property tax revenue.
Recommendation:
Because the Project complies with the development standards of the City’s Code, does not pose a significant impact on the environment, and satisfies the required findings outlined in Resolution No. CC 2025-24 and Resolution No. CC 2025-25, Staff recommends that the City Council:
1) Adopt Resolution No. CC 2025-24 approving the IS/MND and notice of determination regarding same.
2) Adopt Resolution No. CC 2025-25 approving Development Plan No. 22-05 with the Standard Requirements and Conditions of Approval.
Exhibits:
1. EXHIBITS COI City Council DP 22-05
15625 Mayor Dave Way · City of Industry, California 91744 · 626.333.2211 · www.cityofindustry.org
CITY OF INDUSTRY
EXHIBITS
Exhibits List:
A. Location Map – DP No. 22-05
B. Project Plans/Building Elevations – DP No. 22-05
C. Notice of Availability and Intent – DP No. 22-05
D. Initial Study/Mitigated Negative Declaration and Response to Comments received on the Initial Study/Mitigated Negative Declaration
E. Resolution No. CC 2025-24, approving the IS/MND and notice of determination regarding same.
F. Resolution No. CC 2025-25, approving Development Plan No. 22- 05 with the Standard Requirements and Conditions of Approval.
DP 22-05
June 10, 2025
EXHIBIT A
Location Map – DP 22-05
[Attached]
NORTH
Project
Site
DP 22-05
June 10, 2025
EXHIBIT B
Project Plans/Building Elevations – DP No. 22-05
[Attached]
DP 22-05
June 10, 2025
EXHIBIT C
Notice of Availability and Intent – DP No. 22-05
[Attached]
CITY OF INDUSTRY
1 5 6 25 M ayo r Dav e Way . • City o f In d u stry , CA 9 1 7 4 4 -0 3 66 • (6 2 6 ) 3 33 -2211
NOTICE OF AVAILABILITY AND INTENT TO ADOPT A MITIGATED NEGATIVE DECLARATION REGARDING: DEVELOPMENT PLAN 22-05 FOR 20701 CURRIER ROAD, CITY OF INDUSTRY, CA 91789
________________________________________________________________________________________ Purpose: In accordance with the State of California Public Resources Code Section 21092, Sections 15063 and 15072 of Title 14 of the California Code of Regulations pertaining to the California Environmental Quality Act, and the Industry Municipal Code, this is to advise you that the Planning Department of the City of Industry has prepared an Initial Study of environmental impacts on the following project and is recommending the environmental determination described below.
Project Description: Development Plan 22-05, for the expansion of the Sysco Foods, Inc. development on approximately 42.1 acres of non-vacant land, to demolish the existing solar farm and truck parking area located northeast of the existing building and construct a 109,423 square-foot building expansion to the existing 558,737 square-foot industrial building and associated improvements.
Location: The project area consists of four (4) parcels: Assessor’s Parcel Number (APNs) 8760-023-023, -026, -030, and -034 also identified as 20701 Currier Road, City of Industry, CA 91789.
Environmental Determination: It has been determined through an Initial Study (“IS”) that the proposed project has the potential for significant effects in environmental topics that include Cultural Resources, Geology and Soils, Hazards and Hazardous Materials, Noise, Tribal Cultural Resources, but each of those potential impacts are mitigated to less than significant with the mitigation measures identified in the proposed Mitigated Negative Declaration.
The project site is not identified on the EnviroStor database or the Hazardous Waste and Substance Site List (HIST Cortese) pursuant to Section 65962.5 of the California Government Code (Cortese List).
The Initial Study/Environmental Checklist that has been prepared for the project recommends that the lead agency adopt a Mitigated Negative Declaration for the project pursuant to Section 21080 (c) of the Public Resources Code.
Environmental Review And Public Comment: The NOA 20-day comment period: opens October 18, 2024 and closes at 5:00 p.m. November 6, 2024. The circulation of the Draft IS/MND is to encourage written public comments. Interested parties can review the Draft IS/MND at the City of Industry Administrative Offices, 15625, Mayor Dave Way, Industry, California 91744.
You may obtain the document in electronic format on the City’s website, https://www.cityofindustry.org/cityhall/departments/development-services/planning/large-development-projects. Please contact Eduardo Manriquez, Contract Associate Planner, at the City of Industry at 626-333-2211 or by email at [email protected] if you have questions.
Please submit comments to Eduardo Manriquez, Contract Associate Planner via email at [email protected] or written comments to:
Eduardo Manriquez, Contract Associate Planner
City of Industry – Planning Department
15625 Mayor Dave Way
City of Industry, CA 91744
DP 22-05
June 10, 2025
Exhibit D
Initial Study/Mitigated Negative
Declaration and Response to Comments
received on the Initial Study/Mitigated
Negative Declaration
[Attached]
Final Initial Study and
Mitigated Negative Declaration
Sysco Los Angeles Facility Expansion
Project
20701 East Currier Road
City of Industry
Lead Agency:
City of Industry
15625 Mayor Dave Way
City of Industry, CA 91744
(626) 333-2211
Prepared By:
CASC Engineering and Consulting, Inc.
1470 E. Cooley Dr.
Colton, CA 92324
(909) 783-0101
April 29, 2025
City of Industry
Sysco Los Angeles Facility Expansion Project
FinalInitialStudy/MitigatedNegativeDeclaration
April 29, 2025
TABLE OF CONTENTS
SECTION ONE – INTRODUCTION ..............................................................................................3 SECTION TWO – ERRATA TO THE DRAFT IS/MND…………………………………………………3
2.1 Introduction to the Errata……………………………………………………………………………3
2.2 Changes to the Draft IS/MND………………………………………………………………………3 SECTION THREE – RESPONSES TO WRITTEN COMMENTS...................................................6
3.1 List of Authors .................................................................................................................... 6
3.2 Response to Comments ......................................................................................................6
APPENDICIES
APPENDIX A – FINAL MITIGATION MONITORING AND REPORTING PROGRAM (MMRP) APPENDIX B – SYSCO LOS ANGELES FACILITY EXPANSION PROJECT DRAFT INITIAL
STUDY MITIGATED NEGATIVE DECLERATION
City of Industry
Sysco Los Angeles Facility Expansion Project
FinalInitialStudy/MitigatedNegativeDeclaration
April 29, 2025
SECTION ONE – INTRODUCTION
The City of industry has prepared this Final Initial Study Mitigated Negative Declaration (Final IS/MND) in compliance with the California Environmental Quality Act (CEQA) for the Sysco Los Angeles Facility Expansion Project (“Project”). The City of Industry has evaluated the comments received on the Sysco Los Angeles Facility Expansion Project Draft IS/MND and has prepared a response to each individual comment. The Responses to Comments and Draft IS/MND comprise the Final IS/MND for use by the City of Industry in its review and consideration of the Project.
This document is organized into three sections:
• Section 1 - Introduction.
• Section 2 – Errata to the Draft IS/MND: Provides information that is added to the Draft IS/MND which merely clarifies, amplifies, or makes insignificant modifications to the mitigated negative declaration.
• Section 3 - Responses to Written Comments: Provides a list of commenters who commented on the Draft IS/MND. Copies of all the letters received regarding the Draft IS/MND and responses thereto are included in this section.
The Final IS/MND includes the following contents:
• Errata to the Draft IS/MND
• Responses to Written Comments (Section 2 of this document) • Final Mitigation Monitoring and Reporting Program (MMRP, provided under separate cover as Appendix A)
• Draft IS/MND (provided under separate cover as Appendix B) SECTION TWO – ERRATA TO THE DRAFT IS/MND
2.1 Introduction to the Errata
Text changes are required for the Draft IS/MND and are considered administrative only. This information does not reach the level of significant new information as the resulting impact analysis and conclusions remain unchanged, and no new or more severe impacts have been identified.
These administrative changes do not warrant recirculation of the Draft IS/MND pursuant to CEQA Guidelines §15073.5 which states that recirculation of a negative declaration is not required when new information is added to the negative declaration which merely clarifies, amplifies, or makes insignificant modifications to the negative declaration. Therefore, the public has not been deprived of a meaningful opportunity to comment upon a substantial adverse environmental effect of the Project or a mitigation measure. Instead, the information added is merely administrative. Therefore, the Draft IS/MND is not subject to recirculation prior to adoption.
Changes to the Draft IS/MND are listed by page, Section, etc. to best guide the reader to the revision. Changes are identified as follows:
• Deletions are indicated by strikeout text.
• Additions are indicated by underlined text.
City of Industry
Sysco Los Angeles Facility Expansion Project
FinalInitialStudy/MitigatedNegativeDeclaration
April 29, 2025
2.2 Changes to the Draft IS/MND
consistency with the MMRP in the Draft IS/MND. These changes do not change the analysis or conclusions of the Draft IS/MND.
• CUL-1: Inadvertent Finds Archaeological Discovery
• Work shall be halted within 60 feet of in the that area of discovery until a qualified archaeologist can assess the significance of the find.
correct appendices reference. This change does not change the analysis or conclusions of the Draft IS/MND.
• Environmental Science Associates. Dated November 2022 (Appendix CE) Pages 109-114 Tribal Mitigation Measures – The following text changes are required to match the text of the mitigation measures provided by the Gabrieleño Band of Mission Indians – Kizh Nation and included in the Tirbal Cultural Resources Section of the IS/MND. These changes do not change the analysis or conclusions of the Draft IS/MND.
TCR-1: Retain a Native American Monitor Prior to Commencement of Ground-Disturbing Activities • E. Upon discovery of any TCRs, all construction activities in the immediate vicinity of the discovery shall cease (i.e., not less than the surrounding 50 feet) and shall not resume until the discovered TCR has been fully assessed by the Kizh monitor and/or Kizh archaeologist.
The Kizh will recover and retain all discovered TCRs in the form and/or manner the Tribe deems appropriate, in the Tribe’s sole discretion, and for any purpose the Tribe deems appropriate, including for educational, cultural and/or historic purposes.
TCR-2: TCR-2: Unanticipated Discovery of Tribal Cultural Resources Objects (Non-Funerary/NonCeremonial) • A. Native American human remains are defined in PRC 5097.98 (d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute.
• B. If Native American human remains and/or grave goods discovered or recognized on the project site, then all construction activities shall immediately cease. Health and Safety Code Section 7050.5 dictates that any discoveries of human skeletal material shall be immediately reported to the County Coroner and all grounddisturbing activities shall immediately halt and shall remain halted until the coroner has determined the nature of the remains. If the coroner recognizes the human remains to be those of a Native American or has reason to believe they are Native American, he or she shall contact, by telephone within 24 hours, the Native American Heritage Commission, and Public Resources Code Section 5097.98 shall be followed.
• C. Human remains and grave/burial goods shall be treated alike per California Public Resources Code section 5097.98(d)(1) and (2).
• D. Construction activities may resume in other parts of the project site at a minimum of 200 feet away from discovered human remains and/or burial goods, if the Kizh determines in its sole discretion that resuming construction activities at that distance is acceptable and
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provides the project manager express consent of that determination (along with any other mitigation measures the Kizh monitor and/or archaeologist deems necessary). (CEQA Guidelines Section 15064.5(f).)
• E. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods. Any historic archaeological material that is not Native American in origin (non-TCR) shall be curated at a public, non-profit institution with a research interest in the materials, such as the Natural History Museum of Los Angeles County or the Fowler Museum, if such an institution agrees to accept the material. If no institution accepts the archaeological material, it shall be offered to a local school or historical society in the area for educational purposes.
• F. Any discovery of human remains/burial goods shall be kept confidential to prevent further disturbance.
• A. Upon discovery of any TCRs, all construction activities in the immediate vicinity of the discovery shall cease (i.e., not less than the surrounding 50 feet) and shall not resume until the discovered TCR has been fully assessed by the Kizh monitor and/or Kizh archaeologist.
The Kizh will recover and retain all discovered TCRs in the form and/or manner the Tribe deems appropriate, in the Tribe’s sole discretion, and for any purpose the Tribe deems appropriate, including for educational, cultural and/or historic purposes.
TCR-3: Unanticipated Discovery of Human Remains and Associated Finery or Ceremonial Objects • A. As the Most Likely Descendant (“MLD”), the Koo-nas-gna Burial Policy shall be implemented. To the Tribe, the term “human remains” encompasses more than human bones. In ancient as well as historic times, Tribal Traditions included, but were not limited to, the preparation of the soil for burial, the burial of funerary objects with the deceased, and the ceremonial burning of human remains.
• B. If the discovery of human remains includes four or more burials, the discovery location shall be treated as a cemetery and a separate treatment plan shall be created. • C. The prepared soil and cremation soils are to be treated in the same manner as bone fragments that remain intact. Associated funerary objects are objects that, as part of the death rite or ceremony of a culture, are reasonably believed to have been placed with individual human remains either at the time of death or later; other items made exclusively for burial purposes or to contain human remains can also be considered as associated funerary objects. Cremations will either be removed in bulk or by means as necessary to ensure complete recovery of all sacred materials.
• D. In the case where discovered human remains cannot be fully documented and recovered on the same day, the remains will be covered with muslin cloth and a steel plate that can be moved by heavy equipment placed over the excavation opening to protect the remains. If this type of steel plate is not available, a 24- hour guard should be posted outside of working hours. The Tribe will make every effort to recommend diverting the project and keeping the remains in situ and protected. If the project cannot be diverted, it may be determined that burials will be removed.
• E. In the event preservation in place is not possible despite good faith efforts by the project applicant/developer and/or landowner, before ground-disturbing activities may resume on the project site, the landowner shall arrange a designated site location within the footprint of the project for the respectful reburial of the human remains and/or ceremonial objects. • F. Each occurrence of human remains and associated funerary objects will be stored using opaque cloth bags. All human remains, funerary objects, sacred objects and objects of cultural patrimony will be removed to a secure container on site if possible. These items should be retained and reburied within six months of recovery. The site of reburial/repatriation shall be on the project site but at a location agreed upon between the Tribe and the
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landowner at a site to be protected in perpetuity. There shall be no publicity regarding any cultural materials recovered.
• G. The Tribe will work closely with the project’s qualified archaeologist to ensure that the excavation is treated carefully, ethically and respectfully. If data recovery is approved by the Tribe, documentation shall be prepared and shall include (at a minimum) detailed descriptive notes and sketches. All data recovery data recovery-related forms of documentation shall be approved in advance by the Tribe. If any data recovery is performed, once complete, a final report shall be submitted to the Tribe and the NAHC. The Tribe does NOT authorize any scientific study or the utilization of any invasive and/or destructive diagnostics on human remains.
• A. Native American human remains are defined in PRC 5097.98(d)(1) as an inhumation or cremation, and in any state of decomposition or skeletal completeness. Funerary objects, called associated grave goods in Public Resources Code Section 5097.98, are also to be treated according to this statute.
• B. If Native American human remains and/or grave goods are discovered or recognized on the Project site, then Public Resource Code 5097.9 as well as Health and Safety Code Section 7050.5 shall be followed.
• C. Human remains and grave/burial goods shall be treated alike per California Public Resources Code section 5097.98(d)(1) and (2).
• D. Preservation in place (i.e., avoidance) is the preferred manner of treatment for discovered human remains and/or burial goods.
• E. Any discovery of human remains/burial goods shall be kept confidential to prevent further disturbance.
SECTION THREE – RESPONSES TO WRITTEN COMMENTS
3.1 List of Authors
A list of public agencies, organizations, and individuals that provided comments on the Draft IS/MND is presented below. Each comment has been assigned a code. Individual comments within each communication have been numbered so comments can be cross-referenced with responses.
Following this list, the text of the communication is reprinted and is followed by the corresponding response.
Commenters
• Coalition for Responsible Equitable Economic Development Los Angeles (CREED LA) • Supporters Alliance For Environmental Responsibility (SAFER)
3.2 Response to Comments
In accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15088, the City of Industry, as the lead agency, evaluated the comments received on the Draft IS/MND for the Sysco Los Angeles Facility Expansion Project (State Clearinghouse Number (SCH):
2024100853), and has prepared a response to each individual comment. This Response to Comments document becomes part of the Final IS/MND for the project in accordance with CEQA Guidelines Section 15074.
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The comment letters reproduced in the following pages follow the same organization as used in the List of Authors.
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CREED LA Comment Letter 1 & RTC
KEVIN T. CARMICHAEL
CHRISTINA M. CARO
THOMAS A. ENSLOW
KELILAH D. FEDERMAN
RICHARD M. FRANCO
ANDREW J. GRAF
TANYA A. GULESSERIAN
DARION N. JOHNSTON
RACHAEL E. KOSS
AIDAN P. MARSHALL
ALAURA R. McGUIRE
TARA C. RENGIFO
Of Counsel
MARC D. JOSEPH
DANIEL L. CARDOZO
ADAMS BROADWELL JOSEPH & CARDOZO A PROFESSIONAL CORPORATION
A TTO R NE Y S A T LA W
6 0 1 G AT EW AY BO U L EVA R D , SU I T E 1 0 0 0
S O UT H S A N F RA NCI S CO , CA 9 4 0 8 0 - 70 37
___________
T E L: ( 6 50) 58 9 - 166 0
F A X : ( 650 ) 589 - 50 62
s s ann ada n@ ada m s b r o adw el l . c o m
SACRAMENTO OFFICE
520 CAPITOL MALL, SUITE 350
SACRAMENTO, CA 95814-4721
T E L : ( 91 6) 44 4 - 62 01
F A X : ( 91 6) 444 - 6 209
November 4, 2024
Via U.S. Mail and Email
Joshua Nelson, City Manager
15625 Mayor Dave Way
City of Industry, CA 91744
Telephone: 626-333-2211
Email: [email protected]
[email protected]
Julie Gutierrez-Robles, City Clerk
15625 Mayor Dave Way
City of Industry, CA 91744
Email: [email protected]
Via Email Only
Eduardo Manriquez, Contract Associate Planner
Email: [email protected]
Re: Request for Immediate Access to Documents Referenced in the Initial Study/Mitigated Negative Declaration – Sysco Los Angeles Facility Expansion Project (SCH No. 2024100853)
Dear Mr. Nelson. Ms. Gutierrez-Robles, and Mr. Manriquez:
We are writing on behalf of Coalition for Responsible Equitable Economic Development Los Angeles (“CREED LA”) to request immediate access to any and all documents referenced, incorporated by reference, and relied upon in the Initial Study/Mitigated Negative Declaration (“IS/MND”) prepared for the Sysco Los Angeles Facility Expansion Project (SCH No. 2024100853) (“Project”), proposed by Sysco Foods, Inc. (“Applicant”). This request excludes a copy of the IS/MND. This request also excludes any documents that are currently available on the City of Industry website, as of today’s date.1
The Project proposes to construct the expansion of the Sysco Los Angeles Facility on approximately 42.1 acres of non-vacant land located at 20701 East Currier Road in the City of Industry, California. The project site consists of four (4) irregular shaped parcels: Assessor’s Parcel Numbers 8760-023-023, -026, -030, and - 034. The Project proposes to demolish the existing 78,000 kilowatt-hour solar farm that provides electricity to the facility, and truck parking area located northeast of 1-1
1-2
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CREED LA Comment Letter 1 & RTC
1 Accessed https://www.cityofindustry.org/ on November 4, 2024.
November 4, 2024
the existing warehouse and construct a 109,423 square-foot (SF) expansion to the existing facility and relocate the truck parking to the northeastern location of the site. The proposed development consists of adding single‐story buildings in various areas, mostly east of the main warehouse. These proposed buildings consist of a 24,535 SF cold dock, proposed offices (1,389 SF), freezer expansion (41,207 SF), battery charging building (4,145 SF), dry dock (6,987 SF), and dry warehouse (26,422 SF).
Our request for immediate access to all documents referenced in the IS/MND is made pursuant to the California Environmental Quality Act (“CEQA”), which requires that all documents referenced, incorporated by reference, and relied upon in an environmental review document be made available to the public for the entire comment period.2
Please use the following contact information for all correspondence:
U.S. Mail
Sheila M. Sannadan
Adams Broadwell Joseph & Cardozo
601 Gateway Boulevard, Suite 1000
South San Francisco, CA 94080-7037
Email
[email protected]
If you have any questions, please call me at (650) 589-1660 or email me at [email protected]. Thank you for your assistance with this matter.
Sincerely,
Sheila M. Sannadan
Legal Assistant
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CREED LA Comment Letter 1 & RTC
impact report or negative declaration” shall be made “available for review”); 14 Cal. Code Reg. § 15072(g)(4) (stating that all documents incorporated by reference in the MND . . . “shall be readily accessible to the public”).
CREED LA Comment Letter 1 & RTC
Responses to CREED La Comment Letter 1
Comment 1-1: This comment requests access to any and all documents referenced, incorporated by reference, and relied upon in the Initial Study/MitigatedNegativeDeclaration(“IS/MND”) prepared fortheProject.
Response: In accordance with Public Resources Code § 21092(b)(1) documents were listed as incorporated by reference on page 4 and 5 of the ISMND. The ISMND also includes a list of references located on pages 115- 116. Furthermore, each environmental section of the ISMND includes a “sources” list which lists the references that were utilized in that section specifically. Documents made specifically for the project are listed on pages 118 to 1798 of the ISMND posted to the City's website. Documents included by reference can be located on their respectiveweb-pages. No further response is required.
Comment 1-2: This comment includes a brief summary of the proposed project.
Response: No further response isrequired.
Comment 1-3: This comment re-states the request for all documents referenced, incorporated by reference, and relied upon in the Initial Study/ Mitigated Negative Declaration.
Response: See response to Comment 1-1. No further response is required.
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KEVIN T. CARMICHAEL
CHRISTINA M. CARO
THOMAS A. ENSLOW
KELILAH D. FEDERMAN
RICHARD M. FRANCO
ANDREW J. GRAF
TANYA A. GULESSERIAN
DARION N. JOHNSTON
RACHAEL E. KOSS
AIDAN P. MARSHALL
ALAURA R. McGUIRE
TARA C. RENGIFO
Of Counsel
MARC D. JOSEPH
DANIEL L. CARDOZO
SACRAMENTO OFFICE
520 CAPITOL MALL, SUITE 350
SACRAMENTO, CA 95814-4721
TEL: (916) 444 - 6201
FAX: (916) 444 - 6209
ADAMS BROADWELL JOSEPH & CARDOZO A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
601 GATEWAY BOULEVARD, SUITE 1000
SOUTH S AN FRANCISCO, CA 94080 - 7037
___________
TEL: (650) 589 - 1660
FAX: (650) 589 - 5062
agraf @adamsbroadwell.com
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November 6, 2024
VIA E-Mail and Overnight Mail
Eduardo Manriquez
Contract Associate Planner
Planning Department
City of Industry
15625 Mayor Dave Way
City of Industry, California 91744
[email protected]
Re: Preliminary Comments on the Mitigated Negative Declaration for Sysco Los Angeles Facility Expansion Project (SCH No. 2024100853; Development Plan No. 22-05)
Dear Mr. Manriquez:
We write on behalf of the Coalition for Responsible Equitable Economic Development Los Angeles (“CREED LA”) to comment on the Mitigated Negative Declaration1 (“MND”) prepared by the City of Industry (“City”) pursuant to the California Environmental Quality Act2 (“CEQA”) for the Sysco Los Angeles Facility Expansion Project (SCH No. 2024100853, Development Plan No. 22-05) (“Project”) proposed by Sysco Foods, Inc. (“Applicant”). We reserve the right to supplement these comments at later hearings and proceedings on the Project.3 The MND fails to provide a comprehensive and meaningful evaluation of all the Project’s potentially adverse effects and lacks substantial evidence to support its conclusion that there will be no significant environmental impacts following implementation of the MND’s proposed mitigation measures. As detailed below, 1 City of Industry, Draft Initial Study and Mitigated Negative Declaration: Sysco Los Angeles Facility Expansion Project (Oct. 15, 2024), available at https://www.cityofindustry.org/home/showpublisheddocument/10544/638647695119400000. 2 Pub. Res. Code §§ 21000 et seq. 3 Gov. Code § 65009(b); PRC § 21177(a); Bakersfield Citizens for Local Control v. Bakersfield (2004) 124 Cal. App. 4th 1184, 1199-1203; see Galante Vineyards v. Monterey Water Dist. (1997) 60 Cal.
App. 4th 1109, 1121.
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and the City must prepare an environmental impact report (“EIR”) to disclose and mitigate the Project’s potentially significant air quality, public health, and noise impacts.
I. INTRODUCTION
The proposed Project involves expanding the Applicant’s existing food and distribution center located at 20701 East Currier Road, City of Industry, California 91789 by adding 109,423 square feet of new building space, with 91% designated for food storage and docking facilities.4 Planned site enhancements include 495 standard parking stalls, 6 compact stalls, 21 electric vehicle stalls, 16 accessible stalls, 349 parking stalls specifically for trucks. Additionally, the Project will incorporate 93 dock-high doors for truck docking, and 220,256 square feet of landscaping, a biofiltration basin, and stormwater systems.5 The facility currently operates 24 hours a day, Monday through Saturday, with operations typically starting around 2:00pm on Sunday.6 The existing hours of operation would remain the same. The proposed expansion is expected to increase the total number of employees by four, to a total of 843.7 Construction is scheduled from February 2025 to January 2027 and will involve the demolition of the existing solar farm, site preparation, grading, and building construction.8 Our evaluation of the MND and supporting documents reveals significant deficiencies under CEQA. Specifically, the MND fails to accurately describe the Project, inadequately characterizes the existing environmental conditions, and fails to comprehensively assess, disclose, and mitigate potential adverse impacts related to noise, public health, and air quality arising from both construction and ongoing operation of the Project. To address these defects, the City must prepare an EIR which provides thorough disclosure, analysis, and mitigation for all potentially significant impacts associated with the Project.
II. STATEMENT OF INTEREST
CREED LA is an unincorporated association of individuals and labor organizations formed to ensure that the construction of major urban projects in the Los Angeles region proceeds in a manner that minimizes public and worker health 4 MND at pp. 6-7.
5 MND at p. 7.
6 MND at p. 7.
7 MND at p. 7.
8 MND at p. 28.
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and safety risks, avoids or mitigates environmental and public service impacts, and fosters long-term sustainable construction and development opportunities. The association includes City residents Alejando Ayala and Jose Francis, Sheet Metal Workers Local 105, International Brotherhood of Electrical Workers Local 11, Southern California Pipe Trades District Council 16, and District Council of Iron Workers of the State of California, along with their members, their families, and other individuals who live and work in the Los Angeles region.
CREED LA’s individual members live, work, recreate, and raise families in the City and surrounding communities. Accordingly, they will be directly affected by the environmental and health and safety impacts of the Project. Individual members may also work on the Project itself. They will be first in line to be exposed to any health and safety problems created by the Project. They each have a personal interest in protecting the Project area from unnecessary adverse environmental and public health impacts.
III. THE CITY MUST PREPARE AN ENVIRONMENTAL IMPACT REPORT In most cases, CEQA mandates that lead agencies prepare an EIR for projects that could have significant environmental effects.9 The purpose of an EIR is to ensure that the public and decision-makers are fully informed about potential environmental consequences before decisions are made, thus promoting informed decision-making and protecting the environment.10
The “fair argument” standard underscores a preference for EIR preparation.
Under this standard, an EIR must be prepared if there is substantial evidence in the record indicating a fair argument that the project could significantly impact the environment.11 This standard sets a “low threshold” for triggering environmental review through an EIR, rather than through a mitigated negative declaration, which is only appropriate if all potentially significant effects of the project are avoided or reduced to insignificance.12
“Substantial evidence” under the fair argument standard means “enough relevant information and reasonable inferences from this information that a fair 9 Pub. Res. Code § 21000; 14 Cal. Code Regs. (“CEQA Guidelines”) § 15002. 10 Citizens of Goleta Valley v. Bd. of Supervisors (1990) 52 Cal.3d 553, 564. 11 Pub. Resources Code §§ 21080(d), 21082.2(d); CEQA Guidelines §§ 15002(k)(3), 15064(f)(1), (h)(1); Laurel Heights Improvement Assn. v. Regents of the Univ. of Cal. (1993) 6 Cal.4th 1112, 1123; No Oil, Inc. v. City of Los Angeles (1974) 13 Cal.3d 68, 75, 82; Stanislaus Audubon Society, Inc. v. County of Stanislaus (1995) 33 Cal.App.4th 144, 1501-51; Quail Botanical Gardens Found., Inc. v. City of Encinitas (1994) 29 Cal.Appl.4th 1597, 1601-02. 12 Pub. Res. Code § 21080(c)(2); CEQA Guidelines § 15070(b). 2-3
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argument can be made to support a conclusion, even though other conclusions might also be reached.”13 In cases where it’s uncertain whether substantial evidence exists regarding a project’s potential environmental effects, the lead agency must consider expert opinion and facts.14 If there is disagreement among experts about the significance of an effect on the environment, the lead agency must treat the effect as significant and prepare an EIR.15
Here, substantial evidence supports a fair argument that the Project may cause significant air quality, public health, and noise impacts. Therefore, the City must prepare an EIR that thoroughly analyzes, discloses, and mitigates these impacts, while also exploring less environmentally damaging alternatives.
A. The MND Fails to Provide an Accurate Project Description CEQA requires that a project description be accurate, as it establishes the foundation for evaluating environmental impacts.16 Here, the MND fails to provide an accurate project description by assuming the same construction equipment will be used consistently throughout the entire construction period.17 This assumption is neither realistic nor supported by standard construction practices, which undermines the reliability of the MND’s impact analysis.
Courts have held that incomplete or unrealistic project descriptions fail to meet CEQA standards, as they can lead to significant omissions in impact assessment.18 The MND’s assumption that identical construction equipment will be used across all phases of construction is highly unlikely and inconsistent with industry standards. Construction projects of this scale progress through distinct phases – such as site preparation, grading, foundation work, structural construction, and finishing – each requiring specialized equipment suited to the unique demands of that phase.
13 CEQA Guidelines § 15384(a). 14 Id. § 15064(g).
15 Ibid. 16 Id. § 15063(d).
17 MND, appen. B, attach. A (CalEEMod 13206 – 20701 Currier Rd Sysco Detailed Report, 5/22/2024) at p. 36-37. 18 County of Inyo v. City of Los Angeles (1977) 71 Cal.App.3d 185, 199; Laurel Heights Improvement Ass’n v. Regents of Univ. of Cal. (1988) 47 Cal.3d 376. 2-4
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The unsubstantiated assumption contradicts standard practices and conflicts with CalEEMod’s phase-specific defaults,19 which are based on realistic equipment needs across various construction stages. By overlooking the distinct demands of each construction phase, the MND likely underestimates peak impacts, particularly in terms of air quality, noise, and greenhouse gas emissions. As a result, the MND fails to present an accurate picture of the project’s environmental impacts, leaving decision-makers and stakeholders without a reliable basis for understanding the project’s true impact profile.
The MND’s highly improbable assumption regarding construction equipment usage undermines the credibility of its impact assessments, violating CEQA’s requirement for an accurate and complete analysis. To rectify this deficiency, an EIR should be prepared to incorporate phase-specific equipment assumptions, as reflected in CalEEMod, to realistically assess the Project’s impacts at each construction stage.
B. The MND Fails to Analyze Public Health Impacts Associated with Exposure to the Project’s Construction Emissions
The MND fails to disclose and analyze the significant health risks posed by diesel particulate matter (“DPM”) emissions generated by Project construction activities. DPM is a well-documented toxic air contaminant (“TAC”) identified by the California Air Resources Board as a major source of respiratory and cardiovascular harm and as a cancer risk. This risk is especially concerning given that the Project site is located within a census tract that ranks in the 90th percentile for DPM pollution burden, as identified by CalEnviroScreen.20 Communities in this high percentile already bear severe cumulative health due to persistent air pollution, experiencing higher incidences of respiratory and cardiovascular disease along with increased cancer vulnerability. Adding further DPM emissions in an area with such an elevated pollution burden exacerbates these risks, further endangering an already overburdened community. CEQA also requires the City to disclose the health risk posed to nearby sensitive receptors from exposure to the Project’s air emissions.21 Here, there are sensitive receptors in close proximity to the Project site, including a medical office approximately 42 feet from 19 California Air Pollution Control Officers Association, California Emissions Estimator Model User Guide Version 2022.1 (Apr. 2022) p. C-18, appen. G (Tab G-9), available at https://www.caleemod.com/documents/user-guide/CalEEMod_User_Guide_v2022.1.pdf. 20 MND, appen. B, attach. A (CalEEMod 13206 – 20701 Currier Rd Sysco Detailed Report, 5/22/2024) at p. 44.
21 Sierra Club v. County of Fresno (2018) 6 Cal.5th 502, 518–522. 2-5
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the Project site, students at a high school located only 197 feet west of the Project site,22 and residences approximately 1,234 feet south of the Project site.23 By neglecting to disclose the heightened health risks posed to these receptors, the MND fails to comply with CEQA and fails to ensure that the Project will not contribute to significant adverse health impacts in a community already struggling with severe air quality issues.
The MND relies on localized significance thresholds (“LSTs”) to evaluate whether the Project would expose sensitive receptors to substantial pollutant concentrations. However, this reliance is fundamentally flawed.24 LSTs are designed to prevent exceedances of federal or state air quality standards, not to assess the health risks of TACs such as DPM.25 Unlike criteria pollutants with established ambient air quality standards, DPM has no known safe exposure threshold. Therefore, the use of LSTs as a proxy for DPM impacts is not only scientifically inappropriate but also legally insufficient under CEQA.
Clear guidance from the Office of Environmental Health Hazard Assessment (“OEHHA”) directs agencies to assess cancer risks from short-term projects, such as construction activities.26 Specifically, OEHHA recommends evaluating cancer risks for any project lasting longer than 2 months.27 Despite this, the MND lacks any quantitate health risk assessment (“HRA”) modeling to determine the risk posed by DPM emissions to nearby sensitive receptors. This omission renders the MND incapable of assessing whether the Project’s emissions may lead to significant health impacts on nearby communities, including vulnerable populations like those near the Project site.28 By failing to conduct a quantitative HRA, the MND fails to comply with CEQA’s mandate to analyze health risk, and lacks substantial evidence to conclude that DPM emissions from construction would not pose significant environmental and health impacts.
In summary, the MND fails to disclose and analyze DPM health impacts, improperly relies on inapplicable LSTs, and omits a necessary quantitative health 22 MND, appen. B at p. 6.
23 MND at p. 26. 24 MND at p. 31.
25 South Coast Air Quality Management District, Final Localized Significance Threshold Methodology (July 2008), available at http://www.aqmd.gov/docs/defaultsource/ceqa/handbook/localized-significance-thresholds/final-lst-methodology-document.pdf?sfvrsn=2. 26 Office of Environmental Health Hazard Assessment, Risk Assessment Guidelines: Guidance Manual for Preparation of Health Risk Assessments (Feb. 2015) p. 8-17, available at https://oehha.ca.gov/media/downloads/crnr/2015guidancemanual.pdf. 27 Id. at p. 8-18. 28 MND, appen. B at p. 6.
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risk assessment. Without addressing these critical deficiencies, the MND does not fulfill CEQA’s requirements for a thorough and transparent environmental review, potentially leaving significant public health impacts to nearby communities unaddressed and unmitigated.
C. The MND Fails to Disclose and Mitigate Potentially Significant Noise Impacts
The goal of providing Californians with “freedom from excessive noise” is among CEQA’s basic policies.29 CEQA defines the term “environment” to include noise as a physical condition that may be affected by a proposed project.30 The CEQA Guidelines clarify this reference by using the term “ambient noise” to describe the physical condition that could be changed by a project.31 The MND is deficient in its analysis of noise impacts on nearby receptors, specifically local businesses that are adjacent to the Project’s construction site.
Construction activities projected to generate noise levels as high as 90 dBA at 50 feet from the source raise serious concerns about potential disturbances to nearby businesses. However, the MND lacks critical baseline data on current noise conditions, fails to consider all affected receptors, and lacks substantial evidence to conclude construciton noise impacts are less than significant.
1. The MND Fails to Establish Ambient Noise Levels at Adjacent Business, Rendering the Noise Impact Analysis Deficient
To assess the changes to the environment that will result from the project, the lead agency must identify the existing physical conditions as the environmental baseline against which the project’s changes to the environment are measured.32 The baseline serves as a critical reference point, enabling a clear comparison between pre-project and post-project conditions to determine the significance of environmental impacts. This provides the public and decision-makers with “the most accurate picture practically possible of the project’s impacts.”33 The MND fails to establish existing ambient noise levels at the adjacent businesses, including those located east of the Project site. Without this baseline data, the MND cannot accurately assess the incremental increase in noise exposure 29 Pub. Res. Code § 21001(b).
30 Id. § 21060.5.
31 CEQA Guidelines § 15360.
32 Id. § 15125.
33 Id. § 15125(a)(1).
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that nearby businesses will experience during construction, nor can it determine the severity of the noise impacts relative to current conditions. This omission is particularly problematic given the projected noise levels of up to 90 dBA at 50 feet from the source and at least one business would be approximately 30 feet from construction activities.34
Given these defects, the MND lacks substantial evidence to support the existing ambient noise conditions at receptors surrounding the Project site. An EIR must be prepared to properly document ambient measurements to accurately capture baseline conditions. Only then will the public and decisionmakers have an accurate picture of the Project’s impacts, as required by CEQA.
2. The MND Fails to Analyze Noise Impacts on Nearby Businesses The MND’s noise impact analysis is incomplete because it improperly limits its evaluation to traditionally defined noise-sensitive receptors, such as residential areas and schools, and disregards the potential impact on other nearby receptors, particularly local businesses. Under CEQA, noise impact assessments must evaluate whether a project will lead to significant temporary or permanent increases in ambient noise levels across all affected receptors – not just certain categories – in a way that could exceed standards set by the local general plan, noise agency, or relevant agency guidelines.35 The central question is not solely whether certain noise-sensitive land uses will be impacted, but whether the project’s noise emissions will increase ambient noise to levels that violate established thresholds for the area as a whole.
Nearby businesses, particularly those located just 30 feet from the Project site,36 are part of the broader community and must be considered in assessing compliance with noise standards. By omitting an analysis of noise impacts on nearby businesses, the MND does not adequately disclose whether the Project will cause an increase in noise levels that exceed applicable standards, especially during peak construction activities when noise could reach up to 90 dBA at 50 feet.37 Failure to assess the Project’s noise impacts on local businesses leaves a significant gap in the environmental review, as these receptors may experience noise-related disturbances that could affect their operations, customer experiences, employee productivity and health.
34 MND, appen. G at p. 14, 34.
35 CEQA Guidelines, Appendix G: Environmental Checklist Form, XII, Noise. 36 MND, appen. G at p. 14, 34.
37 MND at p. 71.
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3. The MND Lacks Substantial Evidence to Conclude Noise Impacts Are Less than Significant
CEQA requires that a lead agency assess both the absolute noise levels generated by a Project and the incremental increase in noise it will cause to surrounding receptors.38 While the MND identifies 80 dBA Leq as the significance threshold for noise-sensitive residential uses,39 it does not establish a comparable threshold for commercial or industrial uses. Importantly, the 80 dBA threshold used in the MND is derived from the Federal Transit Administration’s Transit Noise and Vibration Impact Assessment Manual.40 This same FTA manual also provides construction noise thresholds for commercial and industrial settings, recommending threshold of 85 dBA and 90 dBA, respectively.41 Despite relying on this FTA source for the residential threshold, the MND fails to apply its equally relevant industrial threshold, leaving a critical gap in the noise analysis.
Given that construction noise could reach up to 90 dBA at 50 feet,42 it is highly likely that businesses along the Project’s eastern boundary – some as close as 30 feet – will experience noise levels above the thresholds recommended by FTA for commercial and industrial uses. Without applying an appropriate threshold for nearby receptors, the MND disregards the potential for serious disruptions to business operations, employee productivity, and employee health and well-being.
The omission of an industrial or commercial noise standard prevents a complete understanding of the Project’s impact on these receptors, leading to an unsupported conclusion that construction noise impacts are less than significant. Given these deficiencies, the MND lacks substantial evidence to support its conclusion that construction noise impacts will not be significant.
IV. CONCLUSION
The MND fails to disclose and mitigate several of the Project’s potentially significant impacts. As a result, the City lacks substantial evidence to conclude that the Project’s impacts would be fully mitigated, necessitating the preparation of an EIR. The defects with the MND’s analysis of air quality, public health, and noise 38 King & Gardiner Farms, LLC v. County of Kern (2020) 45 Cal.App.5th 814, 884; Keep Our Mountains Quiet v. County of Santa Clara (2015) 236 Cal.App.4th 714, 733 (negative declaration case holding that increase in noise level must be considered, not just absolute noise level). 39 MND at p. 70.
40 MND at p. 70. 41 Federal Transit Administration, Transit Noise and Vibration Impact Assessment Manual (Sept. 2018) p. 179, available at https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/researchinnovation/118131/transit-noise-and-vibration-impact-assessment-manual-fta-report-no-0123_0.pdf. 42 MND, appen. G at p. 14, 34. 2-9
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impacts underscore the potential for significant environmental impacts that have not been sufficiently addressed.
Given these inadequacies, an EIR is necessary to thoroughly evaluate and mitigate the Project’s environmental impacts, ensuring compliance with CEQA and the protection of the public and environmental health.
Sincerely,
Andrew J. Graf
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CREED LA Comment Letter 2 & RTC
Response to CREED LA Comment Letter 2
Comment 2-1: The commenter on behalf of the Coalition for Responsible Equitable Economic Development Los Angeles (CREED LA), submitted comments on the Mitigated Negative Declaration (MND) prepared by the City of Industry for the Sysco Los Angeles Facility Expansion Project. The comments address compliance with the California Environmental Quality Act (CEQA) and reserve the right to provide additional feedback during future hearings and project proceedings. It is the commenter’s opinion that the MND does not sufficiently evaluate or provide evidence to support its claim that mitigation measures will prevent significant impacts. Key concerns include air quality, public health, and noise, warranting the preparation of a comprehensive Environmental Impact Report (EIR).
Response: The City acknowledges the commenter’s comment. The commenter provides no substantial evidence of any significant impact. Revisions to the MND are not required. Preparation of an EIR is not required.
Comment 2-2 Introduction: The introductory comment includes a description of the Project and states that the MND fails to accurately describe the Project, inadequately characterizes the existing environmental conditions, and fails to comprehensively assess, disclose, and mitigate potential adverse impacts related to noise, public health, and air quality.
Response: The comment does not state a specific concern or question regarding the adequacy of the MND in identifying and analyzing the environmental impacts of the Project, nor does the comment identify any physical environmental impacts caused by the Project. For this reason, no further response to this comment is provided. Specific responses related to public health, air quality and noise are located below in comments 3-5 through 3-10, below. Revisions to the MND are not required. Preparation of an EIR is not required.
Comment 2-3 Statement of Interest: This comment provides an overview of CREED LA as an association of individuals and labor organizations from the Los Angeles area.
Response: This comment includes the commenter's statement of interest and does not raise any issues with the content of adequacy of the MND. Therefore, it is noted for the record and no further response to this comment is provided.
Comment 2-4 EIR Request: Comment provides process and purpose of an EIR under CEQA, the definition of Fair Argument, and substantial evidence, and finally states that the project may cause significant air quality, public health, and noise impacts and that an EIR must be prepared.
Response: The comment does not state a specific concern or question regarding the adequacy of the MND in identifying and analyzing the environmental impacts of the Project, nor does the comment identify any physical environmental impacts caused by the Project. For this reason, no further response to this comment is provided. The responses below demonstrate that the MND for the Project are supported by substantial evidence and will not result in new or substantially more severe impacts that would require the preparation of an EIR. Revisions to the MND are not required. Preparation of an EIR is not required.
Comment 2-5 Project Description: Comment states that the MND fails to provide an adequate project description by assuming the same construction equipment will be used consistently throughout the entire construction period.
Response: The project description has been written in accordance with Section 15063(d) of the CEQA guidelines. A project description does not need to include every piece of possible equipment that may be used during construction or operation of the project. An Air Quality and
CREED LA Comment Letter 2 & RTC
Greenhouse Gas Assessment was prepared for the proposed Project by Urban Crossroads on May 31, 2024, which documented the anticipated construction and operational emissions and was summarized in the Initial Study. The Air Quality and Greenhouse Gas Assessment is included in its entirety in Appendix B of the Initial Study. The Assessment uses default CalEEMod assumptions for construction vehicles and presents an estimate of the maximum number of pieces of equipment necessary during the construction phase and conservatively assumes equipment will be operating eight hours per day, five days per week for the construction duration.
These assumptions are conservative and still result in emissions well below the SCAQMD thresholds of significance as shown in Table 3-3 and 3-4 of the Initial Study.
Phase specific equipment assumptions can be found in Table 2 of the Air Quality Analysis included in Appendix B.
Comment 2-6 Public Health Impacts-Construction Emissions: Commenter states that MND fails to disclose and analyze significant health risks posed by diesel particulate matter (DPM) emissions during construction and that the MND fails to comply with CEQA and fails to ensure that the Project will not contribute to significant adverse health impacts.
Response: The commenter states the proposed Project would have significant air quality and public health impacts which would require the preparation of an EIR. However, the commentor does not provide any detailed emissions analyses showing that the proposed project’s construction emissions would exceed the thresholds established by the South Coast Air Quality Management District (SCAQMD).
An Air Quality and Greenhouse Gas Assessment was prepared for the proposed Project by Urban Crossroads on May 31, 2024 (Appendix B), which documented the anticipated construction and operational emissions and was summarized in the Initial Study. The air quality report uses default CalEEMod assumptions for construction vehicles and presents an estimate of the maximum number of pieces of equipment necessary during the construction phase and conservatively assumes equipment will be operating eight hours per day, five days per week for the construction duration. These assumptions are conservative and still result in emissions well below the SCAQMD thresholds of significance as shown in Table 3-3 and 3-4 of the Initial Study.
During construction all pollutants were projected to less than the SCAQMD significance thresholds, including particulate matter (PM10 and PM2.5), showing minimal potential impacts from the Project. Mitigation was not included in the Project’s CalEEMod model due to the very low unmitigated emissions and conservative assumptions. However, the proposed Project is required to comply with all applicable SCAQMD rules and regulations including SCAQMD Rule 403 which would reduce emissions further. The responses above demonstrate that the MND for the Project is supported by substantial evidence and will not result in new or substantially more severe impacts that would require the preparation of an EIR.
Comment 2-7 LSTs /HRA: The commenter states that the reliance on localized significance thresholds (LSTs) is flawed resulting in a MND that does not comply with CEQA and that the MND lacks any quantitative health risk assessment.
Response: The SCAQMD has established that impacts to air quality are significant if there is a potential to contribute or cause localized exceedances of the federal and/or state ambient air quality standards (NAAQS/CAAQS). Collectively, these are referred to as Localized Significance Thresholds (LSTs). The SCAQMD established LSTs in response to the SCAQMD Governing Board’s Environmental Justice Initiative. LSTs represent the maximum emissions from a project that will not cause or contribute to an exceedance of the most stringent applicable federal or state
CREED LA Comment Letter 2 & RTC
ambient air quality standards at the sensitive receptor. The SCAQMD states that lead agencies can use the LSTs as another indicator of significance in its air quality impact analyses.
Results of the LST analysis indicate that the Project will not exceed the SCAQMD localized significance thresholds during construction. Therefore, sensitive receptors would not be exposed to substantial pollutant concentrations during Project construction.
Furthermore, the City has not adopted air quality or greenhouse gas emissions thresholds therefore it follows South Coast Air Quality Management District (SCAQMD) guidance for air quality analysis and thresholds. The SCAQMD CEQA guidelines for evaluating construction impacts do not require the preparation of an HRA to evaluate construction impacts. For construction, SCAQMD provides daily mass emissions thresholds and localized significance thresholds. As shown in the Initial Study, the Project would not exceed applicable SCAQMD thresholds. Therefore, the City determined the Project would have a less than significant impact based on the methodologies recommended by SCAQMD for the Project type.
The fact-based MND prepared for the Project including, but not limited to, supporting AQ/GHG Assessment are considered adequate, complete, and represent a good faith effort at full disclosure of potential impacts. Any Project impacts are reduced to a less than significant level with the incorporation of mitigation measures. Findings and conclusions of the MND are not affected, thus, no revisions to the MND are required or proposed. Preparation of a Project EIR is not required.
Comment 2-8 Noise Impacts: The Commentor states that the MND is deficient in its analysis of noise impacts on nearby receptors, specifically local businesses, lacks critical baseline data on current noise conditions, fails to consider all affected receptors, and lacks substantial evidence to conclude construction noise impacts are less than significant.
Response: This introductory comment opines that the noise analysis in the MND is insufficient.
Specific responses to each of the environmental issues identified in this comment have been addressed in comment 3-9 below.
Comment 2-9 Ambient Noise Levels, Adjacent Businesses, and Mitigation Measures: Commentor states that the MND fails to establish ambient noise levels at adjacent businesses rendering the noise impact analysis deficient. Fails to analyze noise impacts on nearby businesses and Lacks substantial evidence to conclude noise impacts are less than significant Response: The MND prepared for the Project including, but not limited to, the supporting Noise and Vibration Report prepared by ESA in July 2024, (Appendix G) and peer reviewed by Urban Crossroads is considered adequate, complete, and represent a good faith effort at full disclosure of potential impacts.
Ambient Noise Levels are discussed in detail in the Noise and Vibration Report which was summarized in the Noise section of the ISMND and included as Appendix G. Construction will take place in different areas of the existing facility. The vehicle truck bay site improvements will occur nearest to a sensitive receptor, therefore a conservative distance of 50 feet is used in the Noise impact analysis. All other external improvements will occur more than 750 feet from the school to the east of the existing Sysco warehouse. Industrial land uses such as the proposed Project are considered normally acceptable with exterior noise levels below 70 dBA CNEL, and conditionally acceptable with noise levels below 75 dBA CNEL. The noise analysis shows that the maximum noise levels during construction will be 66.6 dBA leq which does not exceed the normally acceptable exterior noise levels for the zone for uses that are not considered sensitive receptors. However, to evaluate whether the Project will generate potentially significant short-term
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noise levels at the nearest receiver locations of 500 to 1,200 feet, a construction-related daytime noise level threshold of 57.9 dBA Leq is used as a reasonable threshold to assess the daytime construction noise level impacts as shown in the Noise Study due to the proximity of sensitive receptors on site. The construction noise analysis shows that noise levels will exceed the threshold of 57.9 dBA Leq during Project construction activities and Mitigation Measures NOI-1 and NOI-2 have been incorporated to reduce construction noise levels to below the significance threshold, as shown in Table 13-3 of the MND. Any Project impacts are reduced to a less than significant level with the incorporation of mitigation measures. Findings and conclusions of the MND are not affected, thus, no revisions to the MND are required or proposed. Preparation of a Project EIR is not required.
Comment 2-10 Conclusion: The commentor provides a conclusion of the letter.
Response: This reflects a concluding and summary comment. Specific responses to each of the environmental issues raised by the commenter are addressed in the Response to Comment.
Refer to Response to Comment Nos. 2-1 through 2-10. As demonstrated therein, in the MND and associated technical studies, the MND meets the requirements of CEQA and an EIR is not required.
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KEVIN T. CARMICHAEL
CHRISTINA M. CARO
THOMAS A. ENSLOW
KELILAH D. FEDERMAN
RICHARD M. FRANCO
ANDREW J. GRAF
TANYA A. GULESSERIAN
DARION N. JOHNSTON
RACHAEL E. KOSS
AIDAN P. MARSHALL
ALAURA R. McGUIRE
TARA C. RENGIFO
Of Counsel
MARC D. JOSEPH
DANIEL L. CARDOZO
SACRAMENTO OFFICE
520 CAPITOL MALL, SUITE 350
SACRAMENTO, CA 95814-4721
TEL: (916) 444 - 6201
FAX: (916) 444 - 6209
ADAMS BROADWELL JOSEPH & CARDOZO A PROFESSIONAL CORPORATION
ATTORNEYS AT LAW
601 GATEWAY BOULEVARD, SUITE 1000
SOUT H SAN FRANCISCO, CA 94080 - 7037
___________
TEL: (650) 589 - 1660
FAX: (650) 589 - 5062
agraf @adamsbroadwell.com
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November 6, 2024
VIA E-Mail and Overnight Mail
Eduardo Manriquez
Contract Associate Planner
Planning Department
City of Industry
15625 Mayor Dave Way
City of Industry, California 91744
[email protected]
Re: Preliminary Comments on the Mitigated Negative Declaration for Sysco Los Angeles Facility Expansion Project (SCH No. 2024100853; Development Plan No. 22-05)
Dear Mr. Manriquez:
We write on behalf of the Coalition for Responsible Equitable Economic Development Los Angeles (“CREED LA”) to comment on the Mitigated Negative Declaration1 (“MND”) prepared by the City of Industry (“City”) pursuant to the California Environmental Quality Act2 (“CEQA”) for the Sysco Los Angeles Facility Expansion Project (SCH No. 2024100853, Development Plan No. 22-05) (“Project”) proposed by Sysco Foods, Inc. (“Applicant”). We reserve the right to supplement these comments at later hearings and proceedings on the Project.3 The MND fails to provide a comprehensive and meaningful evaluation of all the Project’s potentially adverse effects and lacks substantial evidence to support its conclusion that there will be no significant environmental impacts following implementation of the MND’s proposed mitigation measures. As detailed below, 1 City of Industry, Draft Initial Study and Mitigated Negative Declaration: Sysco Los Angeles Facility Expansion Project (Oct. 15, 2024), available at https://www.cityofindustry.org/home/showpublisheddocument/10544/638647695119400000. 2 Pub. Res. Code §§ 21000 et seq. 3 Gov. Code § 65009(b); PRC § 21177(a); Bakersfield Citizens for Local Control v. Bakersfield (2004) 124 Cal. App. 4th 1184, 1199-1203; see Galante Vineyards v. Monterey Water Dist. (1997) 60 Cal.
App. 4th 1109, 1121.
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and the City must prepare an environmental impact report (“EIR”) to disclose and mitigate the Project’s potentially significant air quality, public health, and noise impacts.
I. INTRODUCTION
The proposed Project involves expanding the Applicant’s existing food and distribution center located at 20701 East Currier Road, City of Industry, California 91789 by adding 109,423 square feet of new building space, with 91% designated for food storage and docking facilities.4 Planned site enhancements include 495 standard parking stalls, 6 compact stalls, 21 electric vehicle stalls, 16 accessible stalls, 349 parking stalls specifically for trucks. Additionally, the Project will incorporate 93 dock-high doors for truck docking, and 220,256 square feet of landscaping, a biofiltration basin, and stormwater systems.5 The facility currently operates 24 hours a day, Monday through Saturday, with operations typically starting around 2:00pm on Sunday.6 The existing hours of operation would remain the same. The proposed expansion is expected to increase the total number of employees by four, to a total of 843.7 Construction is scheduled from February 2025 to January 2027 and will involve the demolition of the existing solar farm, site preparation, grading, and building construction.8 Our evaluation of the MND and supporting documents reveals significant deficiencies under CEQA. Specifically, the MND fails to accurately describe the Project, inadequately characterizes the existing environmental conditions, and fails to comprehensively assess, disclose, and mitigate potential adverse impacts related to noise, public health, and air quality arising from both construction and ongoing operation of the Project. To address these defects, the City must prepare an EIR which provides thorough disclosure, analysis, and mitigation for all potentially significant impacts associated with the Project.
II. STATEMENT OF INTEREST
CREED LA is an unincorporated association of individuals and labor organizations formed to ensure that the construction of major urban projects in the Los Angeles region proceeds in a manner that minimizes public and worker health 4 MND at pp. 6-7.
5 MND at p. 7.
6 MND at p. 7.
7 MND at p. 7.
8 MND at p. 28.
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and safety risks, avoids or mitigates environmental and public service impacts, and fosters long-term sustainable construction and development opportunities. The association includes City residents Alejando Ayala and Jose Francis, Sheet Metal Workers Local 105, International Brotherhood of Electrical Workers Local 11, Southern California Pipe Trades District Council 16, and District Council of Iron Workers of the State of California, along with their members, their families, and other individuals who live and work in the Los Angeles region.
CREED LA’s individual members live, work, recreate, and raise families in the City and surrounding communities. Accordingly, they will be directly affected by the environmental and health and safety impacts of the Project. Individual members may also work on the Project itself. They will be first in line to be exposed to any health and safety problems created by the Project. They each have a personal interest in protecting the Project area from unnecessary adverse environmental and public health impacts.
III. THE CITY MUST PREPARE AN ENVIRONMENTAL IMPACT REPORT In most cases, CEQA mandates that lead agencies prepare an EIR for projects that could have significant environmental effects.9 The purpose of an EIR is to ensure that the public and decision-makers are fully informed about potential environmental consequences before decisions are made, thus promoting informed decision-making and protecting the environment.10
The “fair argument” standard underscores a preference for EIR preparation.
Under this standard, an EIR must be prepared if there is substantial evidence in the record indicating a fair argument that the project could significantly impact the environment.11 This standard sets a “low threshold” for triggering environmental review through an EIR, rather than through a mitigated negative declaration, which is only appropriate if all potentially significant effects of the project are avoided or reduced to insignificance.12
“Substantial evidence” under the fair argument standard means “enough relevant information and reasonable inferences from this information that a fair 9 Pub. Res. Code § 21000; 14 Cal. Code Regs. (“CEQA Guidelines”) § 15002. 10 Citizens of Goleta Valley v. Bd. of Supervisors (1990) 52 Cal.3d 553, 564. 11 Pub. Resources Code §§ 21080(d), 21082.2(d); CEQA Guidelines §§ 15002(k)(3), 15064(f)(1), (h)(1); Laurel Heights Improvement Assn. v. Regents of the Univ. of Cal. (1993) 6 Cal.4th 1112, 1123; No Oil, Inc. v. City of Los Angeles (1974) 13 Cal.3d 68, 75, 82; Stanislaus Audubon Society, Inc. v. County of Stanislaus (1995) 33 Cal.App.4th 144, 1501-51; Quail Botanical Gardens Found., Inc. v. City of Encinitas (1994) 29 Cal.Appl.4th 1597, 1601-02. 12 Pub. Res. Code § 21080(c)(2); CEQA Guidelines § 15070(b). 3-3
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argument can be made to support a conclusion, even though other conclusions might also be reached.”13 In cases where it’s uncertain whether substantial evidence exists regarding a project’s potential environmental effects, the lead agency must consider expert opinion and facts.14 If there is disagreement among experts about the significance of an effect on the environment, the lead agency must treat the effect as significant and prepare an EIR.15
Here, substantial evidence supports a fair argument that the Project may cause significant air quality, public health, and noise impacts. Therefore, the City must prepare an EIR that thoroughly analyzes, discloses, and mitigates these impacts, while also exploring less environmentally damaging alternatives.
A. The MND Fails to Provide an Accurate Project Description CEQA requires that a project description be accurate, as it establishes the foundation for evaluating environmental impacts.16 Here, the MND fails to provide an accurate project description by assuming the same construction equipment will be used consistently throughout the entire construction period.17 This assumption is neither realistic nor supported by standard construction practices, which undermines the reliability of the MND’s impact analysis.
Courts have held that incomplete or unrealistic project descriptions fail to meet CEQA standards, as they can lead to significant omissions in impact assessment.18 The MND’s assumption that identical construction equipment will be used across all phases of construction is highly unlikely and inconsistent with industry standards. Construction projects of this scale progress through distinct phases – such as site preparation, grading, foundation work, structural construction, and finishing – each requiring specialized equipment suited to the unique demands of that phase.
13 CEQA Guidelines § 15384(a). 14 Id. § 15064(g).
15 Ibid. 16 Id. § 15063(d).
17 MND, appen. B, attach. A (CalEEMod 13206 – 20701 Currier Rd Sysco Detailed Report, 5/22/2024) at p. 36-37. 18 County of Inyo v. City of Los Angeles (1977) 71 Cal.App.3d 185, 199; Laurel Heights Improvement Ass’n v. Regents of Univ. of Cal. (1988) 47 Cal.3d 376. 3-4
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The unsubstantiated assumption contradicts standard practices and conflicts with CalEEMod’s phase-specific defaults,19 which are based on realistic equipment needs across various construction stages. By overlooking the distinct demands of each construction phase, the MND likely underestimates peak impacts, particularly in terms of air quality, noise, and greenhouse gas emissions. As a result, the MND fails to present an accurate picture of the project’s environmental impacts, leaving decision-makers and stakeholders without a reliable basis for understanding the project’s true impact profile.
The MND’s highly improbable assumption regarding construction equipment usage undermines the credibility of its impact assessments, violating CEQA’s requirement for an accurate and complete analysis. To rectify this deficiency, an EIR should be prepared to incorporate phase-specific equipment assumptions, as reflected in CalEEMod, to realistically assess the Project’s impacts at each construction stage.
B. The MND Fails to Analyze Public Health Impacts Associated with Exposure to the Project’s Construction Emissions
The MND fails to disclose and analyze the significant health risks posed by diesel particulate matter (“DPM”) emissions generated by Project construction activities. DPM is a well-documented toxic air contaminant (“TAC”) identified by the California Air Resources Board as a major source of respiratory and cardiovascular harm and as a cancer risk. This risk is especially concerning given that the Project site is located within a census tract that ranks in the 90th percentile for DPM pollution burden, as identified by CalEnviroScreen.20 Communities in this high percentile already bear severe cumulative health due to persistent air pollution, experiencing higher incidences of respiratory and cardiovascular disease along with increased cancer vulnerability. Adding further DPM emissions in an area with such an elevated pollution burden exacerbates these risks, further endangering an already overburdened community. CEQA also requires the City to disclose the health risk posed to nearby sensitive receptors from exposure to the Project’s air emissions.21 Here, there are sensitive receptors in close proximity to the Project site, including a medical office approximately 42 feet from 19 California Air Pollution Control Officers Association, California Emissions Estimator Model User Guide Version 2022.1 (Apr. 2022) p. C-18, appen. G (Tab G-9), available at https://www.caleemod.com/documents/user-guide/CalEEMod_User_Guide_v2022.1.pdf. 20 MND, appen. B, attach. A (CalEEMod 13206 – 20701 Currier Rd Sysco Detailed Report, 5/22/2024) at p. 44.
21 Sierra Club v. County of Fresno (2018) 6 Cal.5th 502, 518–522. 3-5
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the Project site, students at a high school located only 197 feet west of the Project site,22 and residences approximately 1,234 feet south of the Project site.23 By neglecting to disclose the heightened health risks posed to these receptors, the MND fails to comply with CEQA and fails to ensure that the Project will not contribute to significant adverse health impacts in a community already struggling with severe air quality issues.
The MND relies on localized significance thresholds (“LSTs”) to evaluate whether the Project would expose sensitive receptors to substantial pollutant concentrations. However, this reliance is fundamentally flawed.24 LSTs are designed to prevent exceedances of federal or state air quality standards, not to assess the health risks of TACs such as DPM.25 Unlike criteria pollutants with established ambient air quality standards, DPM has no known safe exposure threshold. Therefore, the use of LSTs as a proxy for DPM impacts is not only scientifically inappropriate but also legally insufficient under CEQA.
Clear guidance from the Office of Environmental Health Hazard Assessment (“OEHHA”) directs agencies to assess cancer risks from short-term projects, such as construction activities.26 Specifically, OEHHA recommends evaluating cancer risks for any project lasting longer than 2 months.27 Despite this, the MND lacks any quantitate health risk assessment (“HRA”) modeling to determine the risk posed by DPM emissions to nearby sensitive receptors. This omission renders the MND incapable of assessing whether the Project’s emissions may lead to significant health impacts on nearby communities, including vulnerable populations like those near the Project site.28 By failing to conduct a quantitative HRA, the MND fails to comply with CEQA’s mandate to analyze health risk, and lacks substantial evidence to conclude that DPM emissions from construction would not pose significant environmental and health impacts.
In summary, the MND fails to disclose and analyze DPM health impacts, improperly relies on inapplicable LSTs, and omits a necessary quantitative health 22 MND, appen. B at p. 6.
23 MND at p. 26. 24 MND at p. 31.
25 South Coast Air Quality Management District, Final Localized Significance Threshold Methodology (July 2008), available at http://www.aqmd.gov/docs/defaultsource/ceqa/handbook/localized-significance-thresholds/final-lst-methodology-document.pdf?sfvrsn=2. 26 Office of Environmental Health Hazard Assessment, Risk Assessment Guidelines: Guidance Manual for Preparation of Health Risk Assessments (Feb. 2015) p. 8-17, available at https://oehha.ca.gov/media/downloads/crnr/2015guidancemanual.pdf. 27 Id. at p. 8-18. 28 MND, appen. B at p. 6.
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risk assessment. Without addressing these critical deficiencies, the MND does not fulfill CEQA’s requirements for a thorough and transparent environmental review, potentially leaving significant public health impacts to nearby communities unaddressed and unmitigated.
C. The MND Fails to Disclose and Mitigate Potentially Significant Noise Impacts
The goal of providing Californians with “freedom from excessive noise” is among CEQA’s basic policies.29 CEQA defines the term “environment” to include noise as a physical condition that may be affected by a proposed project.30 The CEQA Guidelines clarify this reference by using the term “ambient noise” to describe the physical condition that could be changed by a project.31 The MND is deficient in its analysis of noise impacts on nearby receptors, specifically local businesses that are adjacent to the Project’s construction site.
Construction activities projected to generate noise levels as high as 90 dBA at 50 feet from the source raise serious concerns about potential disturbances to nearby businesses. However, the MND lacks critical baseline data on current noise conditions, fails to consider all affected receptors, and lacks substantial evidence to conclude construciton noise impacts are less than significant.
1. The MND Fails to Establish Ambient Noise Levels at Adjacent Business, Rendering the Noise Impact Analysis Deficient
To assess the changes to the environment that will result from the project, the lead agency must identify the existing physical conditions as the environmental baseline against which the project’s changes to the environment are measured.32 The baseline serves as a critical reference point, enabling a clear comparison between pre-project and post-project conditions to determine the significance of environmental impacts. This provides the public and decision-makers with “the most accurate picture practically possible of the project’s impacts.”33 The MND fails to establish existing ambient noise levels at the adjacent businesses, including those located east of the Project site. Without this baseline data, the MND cannot accurately assess the incremental increase in noise exposure 29 Pub. Res. Code § 21001(b).
30 Id. § 21060.5.
31 CEQA Guidelines § 15360.
32 Id. § 15125.
33 Id. § 15125(a)(1).
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that nearby businesses will experience during construction, nor can it determine the severity of the noise impacts relative to current conditions. This omission is particularly problematic given the projected noise levels of up to 90 dBA at 50 feet from the source and at least one business would be approximately 30 feet from construction activities.34
Given these defects, the MND lacks substantial evidence to support the existing ambient noise conditions at receptors surrounding the Project site. An EIR must be prepared to properly document ambient measurements to accurately capture baseline conditions. Only then will the public and decisionmakers have an accurate picture of the Project’s impacts, as required by CEQA.
2. The MND Fails to Analyze Noise Impacts on Nearby Businesses The MND’s noise impact analysis is incomplete because it improperly limits its evaluation to traditionally defined noise-sensitive receptors, such as residential areas and schools, and disregards the potential impact on other nearby receptors, particularly local businesses. Under CEQA, noise impact assessments must evaluate whether a project will lead to significant temporary or permanent increases in ambient noise levels across all affected receptors – not just certain categories – in a way that could exceed standards set by the local general plan, noise agency, or relevant agency guidelines.35 The central question is not solely whether certain noise-sensitive land uses will be impacted, but whether the project’s noise emissions will increase ambient noise to levels that violate established thresholds for the area as a whole.
Nearby businesses, particularly those located just 30 feet from the Project site,36 are part of the broader community and must be considered in assessing compliance with noise standards. By omitting an analysis of noise impacts on nearby businesses, the MND does not adequately disclose whether the Project will cause an increase in noise levels that exceed applicable standards, especially during peak construction activities when noise could reach up to 90 dBA at 50 feet.37 Failure to assess the Project’s noise impacts on local businesses leaves a significant gap in the environmental review, as these receptors may experience noise-related disturbances that could affect their operations, customer experiences, employee productivity and health.
34 MND, appen. G at p. 14, 34.
35 CEQA Guidelines, Appendix G: Environmental Checklist Form, XII, Noise. 36 MND, appen. G at p. 14, 34.
37 MND at p. 71.
3-9
Cont.
November 6, 2024
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3. The MND Lacks Substantial Evidence to Conclude Noise Impacts Are Less than Significant
CEQA requires that a lead agency assess both the absolute noise levels generated by a Project and the incremental increase in noise it will cause to surrounding receptors.38 While the MND identifies 80 dBA Leq as the significance threshold for noise-sensitive residential uses,39 it does not establish a comparable threshold for commercial or industrial uses. Importantly, the 80 dBA threshold used in the MND is derived from the Federal Transit Administration’s Transit Noise and Vibration Impact Assessment Manual.40 This same FTA manual also provides construction noise thresholds for commercial and industrial settings, recommending threshold of 85 dBA and 90 dBA, respectively.41 Despite relying on this FTA source for the residential threshold, the MND fails to apply its equally relevant industrial threshold, leaving a critical gap in the noise analysis.
Given that construction noise could reach up to 90 dBA at 50 feet,42 it is highly likely that businesses along the Project’s eastern boundary – some as close as 30 feet – will experience noise levels above the thresholds recommended by FTA for commercial and industrial uses. Without applying an appropriate threshold for nearby receptors, the MND disregards the potential for serious disruptions to business operations, employee productivity, and employee health and well-being.
The omission of an industrial or commercial noise standard prevents a complete understanding of the Project’s impact on these receptors, leading to an unsupported conclusion that construction noise impacts are less than significant. Given these deficiencies, the MND lacks substantial evidence to support its conclusion that construction noise impacts will not be significant.
IV. CONCLUSION
The MND fails to disclose and mitigate several of the Project’s potentially significant impacts. As a result, the City lacks substantial evidence to conclude that the Project’s impacts would be fully mitigated, necessitating the preparation of an EIR. The defects with the MND’s analysis of air quality, public health, and noise 38 King & Gardiner Farms, LLC v. County of Kern (2020) 45 Cal.App.5th 814, 884; Keep Our Mountains Quiet v. County of Santa Clara (2015) 236 Cal.App.4th 714, 733 (negative declaration case holding that increase in noise level must be considered, not just absolute noise level). 39 MND at p. 70.
40 MND at p. 70. 41 Federal Transit Administration, Transit Noise and Vibration Impact Assessment Manual (Sept. 2018) p. 179, available at https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/researchinnovation/118131/transit-noise-and-vibration-impact-assessment-manual-fta-report-no-0123_0.pdf. 42 MND, appen. G at p. 14, 34. 3-9
Cont.
3-10
November 6, 2024
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impacts underscore the potential for significant environmental impacts that have not been sufficiently addressed.
Given these inadequacies, an EIR is necessary to thoroughly evaluate and mitigate the Project’s environmental impacts, ensuring compliance with CEQA and the protection of the public and environmental health.
Sincerely,
Andrew J. Graf
AJG:acp
3-10
Cont.
CREED LA Comment Letter 3 & RTC
Response to CREED LA Comment Letter 3
CREED LA Comment Letter 3 is a duplicate of Comment Letter 2 and thus responses refer back to responses on Comment Letter 2.
Comment 3-1: The commenter on behalf of the Coalition for Responsible Equitable Economic Development Los Angeles (CREED LA), submitted comments on the Mitigated Negative Declaration (MND) prepared by the City of Industry for the Sysco Los Angeles Facility Expansion Project. The comments address compliance with the California Environmental Quality Act (CEQA) and reserve the right to provide additional feedback during future hearings and project proceedings. It is the commenter’s opinion that the MND does not sufficiently evaluate or provide evidence to support its claim that mitigation measures will prevent significant impacts. Key concerns include air quality, public health, and noise, warranting the preparation of a comprehensive Environmental Impact Report (EIR).
Response: The City acknowledges the commenter’s comment. The commenter provides no substantial evidence of any significant impact. Revisions to the MND are not required. Preparation of an EIR is not required.
Comment 3-2 Introduction: The introductory comment includes a description of the Project and states that the MND fails to accurately describe the Project, inadequately characterizes the existing environmental conditions and fails to comprehensively assess, disclose, and mitigate potential adverse impacts related to noise, public health, and air quality.
Response: The comment does not state a specific concern or question regarding the adequacy of the MND in identifying and analyzing the environmental impacts of the Project, nor does the comment identify any physical environmental impacts caused by the Project. For this reason, no further response to this comment is provided. Specific responses related to public health, air quality and noise are located below in comments 3-5 through 3-10, below. Revisions to the MND are not required. Preparation of an EIR is not required.
Comment 3-3 Statement of Interest: This comment provides an overview of CREED LA as an association of individuals and labor organizations from the Los Angeles area.
Response: This comment includes the commenter's statement of interest and does not raise any issues with the content of the adequacy of the MND. Therefore, it is noted for the record and no further response to this comment is provided.
Comment 3-4 EIR Request: Comment provides process and purpose of an EIR under CEQA, the definition of Fair Argument, and substantial evidence, and finally states that the project may cause significant air quality, public health, and noise impacts and that an EIR must be prepared.
Response: The comment does not state a specific concern or question regarding the adequacy of the MND in identifying and analyzing the environmental impacts of the Project, nor does the comment identify any physical environmental impacts caused by the Project. For this reason, no further response to this comment is provided. The responses below demonstrate that the MND for the Project are supported by substantial evidence and will not result in new or substantially more severe impacts that would require the preparation of an EIR. Revisions to the MND are not required. Preparation of an EIR is not required.
Comment 3-5 Project Description: Comment states that the MND fails to provide an adequate project description by assuming the same construction equipment will be used consistently throughout the entire construction period.
CREED LA Comment Letter 3 & RTC
Response: The project description has been written in accordance with Section 15063(d) of the CEQA guidelines. A project description does not need to include every piece of possible equipment that may be used during construction or operation of the project. An Air Quality and Greenhouse Gas Assessment was prepared for the proposed Project by Urban Crossroads on May 31, 2024, which documented the anticipated construction and operational emissions and was summarized in the Initial Study. The Air Quality and Greenhouse Gas Assessment is included in its entirety in Appendix B of the Initial Study. The air quality report uses default CalEEMod assumptions for construction vehicles and presents an estimate of the maximum number of pieces of equipment necessary during the construction phase and conservatively assumes equipment will be operating 8 hours per day, 5 days per week for the construction duration. These assumptions are conservative and still result in emissions well below the SCAQMD thresholds of significance as shown in Table 3-3 and 3-4 of the Initial Study.
Phase specific equipment assumptions can be found in Table 2 of the Air Quality Analysis included in Appendix B.
Comment 3-6 Public Health Impacts-Construction Emissions: Commenter states that MND fails to disclose and analyze significant health risks posed by diesel particulate matter (DPM) emissions during construction and that the MND fails to comply with CEQA and fails to ensure that the Project will not contribute to significant adverse health impacts.
Response: The commenter states the proposed Project would have significant air quality and public health impacts which would require the preparation of an EIR; However, the commentor does not provide any detailed emissions analyses showing that the proposed project’s construction emissions would exceed the thresholds established by the South Coast Air Quality Management District (SCAQMD).
An Air Quality and Greenhouse Gas Assessment was prepared for the proposed Project by Urban Crossroads on May 31, 2024 (Appendix B), which documented the anticipated construction and operational emissions and was summarized in the Initial Study. The air quality report uses default CalEEMod assumptions for construction vehicles and presents an estimate of the maximum number of pieces of equipment necessary during the construction phase and conservatively assumes equipment will be operating eight hours per day, five days per week for the duration of construction. These assumptions are conservative and still result in emissions well below the SCAQMD thresholds of significance as shown in Table 3-3 and 3-4 of the Initial Study.
During construction all pollutants were projected to less than the SCAQMD significance thresholds, including particulate matter (PM10 and PM2.5), showing minimal potential impacts from the Project. Mitigation was not included in the Project’s CalEEMod model due to the very low unmitigated emissions and conservative assumptions. However, the proposed Project is required to comply with all applicable SCAQMD rules and regulations including SCAQMD Rule 403 which would reduce emissions further. The responses above demonstrate that the MND for the Project is supported by substantial evidence and will not result in new or substantially more severe impacts that would require the preparation of an EIR.
Comment 3-7 LSTs /HRA: The commenter states that the reliance on localized significance thresholds (LSTs) is flawed resulting in a MND that does not comply with CEQA and that the MND lacks any quantitative health risk assessment.
Response: The SCAQMD has established that impacts to air quality are significant if there is a potential to contribute or cause localized exceedances of the federal and/or state ambient air quality standards (NAAQS/CAAQS). Collectively, these are referred to as Localized Significance Thresholds (LSTs). The SCAQMD established LSTs in response to the SCAQMD Governing
CREED LA Comment Letter 3 & RTC
Board’s Environmental Justice Initiative LSTs represent the maximum emissions from a project that will not cause or contribute to an exceedance of the most stringent applicable federal or state ambient air quality standards at the sensitive receptor. The SCAQMD states that lead agencies can use the LSTs as another indicator of significance in its air quality impact analyses.
Results of the LST analysis indicate that the Project will not exceed the SCAQMD localized significance thresholds during construction. Therefore, sensitive receptors would not be exposed to substantial pollutant concentrations during Project construction.
Furthermore, the City has not adopted air quality or greenhouse gas emissions thresholds therefore it follows South Coast Air Quality Management District (SCAQMD) guidance for air quality analysis and thresholds. The SCAQMD CEQA guidelines for evaluating construction impacts do not require the preparation of an HRA to evaluate construction impacts. For construction, SCAQMD provides daily mass emissions thresholds and localized significance thresholds. As shown in the Initial Study, the Project would not exceed applicable SCAQMD thresholds. Therefore, the City determined the Project would have a less than significant impact based on the methodologies recommended by SCAQMD for the Project type.
The fact-based MND prepared for the Project including, but not limited to, supporting AQ/GHG Assessment are considered adequate, complete, and represent a good faith effort at full disclosure of potential impacts. Any Project impacts are reduced to a less than significant level with the incorporation of mitigation measures. Findings and conclusions of the MND are not affected, thus, no revisions to the MND are required or proposed. Preparation of a Project EIR is not required.
Comment 3-8 Noise Impacts: The Commentor states that the MND is deficient in its analysis of noise impacts on nearby receptors, specifically local businesses, lacks critical baseline data on current noise conditions, fails to consider all affected receptors, and lacks substantial evidence to conclude construction noise impacts are less than significant.
Response: This introductory comment opines that the noise analysis in the MND is insufficient.
Specific responses to each of the environmental issues identified in this comment have been addressed in comment 3-9 below.
Comment 3-9 Ambient Noise Levels, Adjacent Businesses, and Mitigation Measures: Commentor states that the MND fails to establish ambient noise levels at adjacent businesses rendering the noise impact analysis deficient.
Response: The MND prepared for the Project including, but not limited to, the supporting Noise and Vibration Report prepared by ESA in July 2024, (Appendix G) and peer reviewed by Urban Crossroads is considered adequate, complete, and represents a good faith effort at full disclosure of potential impacts.
Ambient Noise Levels are discussed in detail in the Noise and Vibration Report which was summarized in the Noise section of the MND and included as Appendix G. Construction will take place in different areas of the existing facility. The vehicle truck bay site improvements will occur nearest to a sensitive receptor, therefore a conservative distance of 50 feet is used in the Noise impact analysis. All other external improvements will occur more than 750 feet from the school to the east of the existing Sysco warehouse. Industrial land uses such as the proposed Project are considered normally acceptable with exterior noise levels below 70 dBA CNEL, and conditionally acceptable with noise levels below 75 dBA CNEL. The noise analysis shows that the maximum noise levels during construction will be 66.6 dBA leq, which does not exceed the normally acceptable exterior noise levels for the zone for uses that are not considered sensitive receptors.
CREED LA Comment Letter 3 & RTC
However, to evaluate whether the Project will generate potentially significant short-term noise levels at the nearest receiver locations of 500 to 1,200 feet, a construction-related daytime noise level threshold of 57.9 dBA Leq is used as a reasonable threshold to assess the daytime construction noise level impacts as shown in the Noise Study due to the proximity of sensitive receptors on site. The construction noise analysis shows that noise levels will exceed the threshold of 57.9 dBA Leq during Project construction activities, and Mitigation Measures NOI-1 and NOI-2 have been incorporated to reduce construction noise levels to below the significance threshold, as shown in Table 13-3 of the MND. Any Project impacts are reduced to a less than significant level with the incorporation of mitigation measures. Findings and conclusions of the MND are not affected, thus, no revisions to the MND are required or proposed. Preparation of a Project EIR is not required.
Comment 3-10 Conclusion: The commentor provides a conclusion of the letter.
Response: This reflects a concluding and summary comment. Specific responses to each of the environmental issues raised by the commenter are addressed in the Response to Comment.
Refer to Response to Comment Nos. 3-1 through 3-10. As demonstrated therein, in the MND and associated technical studies, the MND meets the requirements of CEQA and an EIR is not required.
SAFER Comment Letter 1 & RTC
Via Email
November 4, 2024
Eduardo Manriquez, Contract Associate Planner
Planning Division
Development Services Department
City of Industry
15625 Mayor Dave Way
City of Industry, CA 91744
[email protected]
Re: Comment on Mitigated Negative Declaration, 20701 Currier Road Warehouse Addition Project (DP 22-05; SCH 2024100853)
Dear Mr. Manriquez:
This comment is submitted on behalf of Supporters Alliance For Environmental Responsibility (“SAFER”) regarding the Initial Study and Mitigated Negative Declaration (“IS/MND”) prepared for the 20701 Currier Road Warehouse Addition Project (DP 22-05; SCH 2024100853), which proposes the demolition of an existing solar farm and truck parking area to make way for the development of a 109,423 square-foot addition to an existing 558,737 square-foot industrial building, located at 20701 Currier Road on Assessor Parcel Numbers 8760-023-(023, -026, -030, and-034) in the City of Industry (“Project”).
SAFER is concerned that the IS/MND is improper under the California Environmental Quality Act due to the IS/MND’s failure to adequately assess the Project’s potentially significant environmental impacts. SAFER requests that an environmental impact report (EIR) be prepared for the Project rather than an MND because there is a fair argument that the Project may have adverse environmental impacts. An EIR will ensure that potentially significant impacts of this Project are fully disclosed, analyzed, and mitigated.
SAFER reserves the right to supplement this comment throughout the administrative process. Galante Vineyards v. Monterey Peninsula Water Management Dist., 60 Cal. App. 4th 1109, 1121 (1997).
1-1
1-2
1-3
SAFER Comment Letter 1 & RTC
November 4, 2024
Comment on Mitigated Negative Declaration, 20701 Currier Road Warehouse Addition Project (DP 22-05; SCH 2024100853)
Sincerely,
Victoria Yundt Lozeau Drury LLP
SAFER Comment Letter 1 & RTC
Response to Supporters Alliance for Environmental Responsibility (SAFER) Comment 1-1 This comment includes a brief summary of the proposed project.
Response: No further response is required.
Comment 1-2: This comment expresses concern that the Initial Study Mitigated Negative Declaration is improper because there is a fair argument that the project may have adverse environmental impacts. Thus, the commentor requests that an EIR be prepared to address these shortcomings.
Response: This comment is conclusionary without any supporting evidence to demonstrate the assertions that an EIR is required. No further response is needed.
Comment 1-3: This comment states that the commenter has the right to supplement the comments they have made during the administrative process.
Response: The comment is noted. No further response is required.
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
APPENDIX A – MITIGATION, MONITORING, AND REPORTING PROGRAM (MMRP) Mitigation measures are included within each section of the initial study checklist and are provided below. Table 22-: Mitigation Monitoring and Reporting Program outlines the potential impacts and mitigation measures of the proposed Project and assigns responsibility for the oversight of each mitigation measure. This Table shall be included in all bid documents and included as a part of the Project development.
Table 22-1: Mitigation Monitoring and Reporting Program Section
Number Mitigation Measures Responsible for Monitoring Timing Impact after Mitigation Cultural Resources
V. Cultural
Resources
CUL-1 Inadvertent Archaeological Discovery: If
previously unidentified cultural materials are
unearthed during construction, work shall be halted
in that area until a qualified archaeologist can
assess the significance of the find. If human
remains are encountered, State Health and Safety
Code Section 7050.5 states that no further
disturbance shall occur until the County Coroner
has made a determination of origin and disposition
pursuant to Public Resources Code Section
5097.98. The County Coroner must be notified of
the find immediately. If the remains are determined
to be prehistoric, the Coroner will notify the Native
American Heritage Commission (NAHC), which
will determine and notify the Most Likely
Descendant (MLD). With the permission of the
landowner or his/her authorized representative, the
MLD may inspect the site of the discovery. The
MLD shall complete the inspection within 48 hours
of notification by the NAHC. The MLD may
recommend scientific removal and nondestructive
Applicant and City
of Industry
During ground
disturbing
activities.
Less than
Significant
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
Section
Number Mitigation Measures Responsible for Monitoring Timing Impact after Mitigation analysis of human remains and items associated
with Native American burials
Geology and Soils
VII. Geology
and Soils
GEO-1 Grading: The
Project shall incorporate applicable
recommendations provided in the Geotechnical
Investigation prepared by Southern California
Geotechnical, dated June 13, 2023 (Appendix I).
The recommendations are presented in Section
6.0 Conclusions and Recommendations of the
report under the following subheadings: Seismic
Design Considerations, Geotechnical Design
Considerations, Site Grading Recommendations,
Construction Considerations, Foundation Design
and construction, Floor Slab Design and
Construction, Retaining Wall Design and
construction and Pavement Design Parameters
(pages 10-29).
Applicant and City
of Industry–
approved
geotechnical
engineer
Prior to start of
construction.
Less than
Significant
VII. Geology
and Soils
GEO-2 Inadvertent Paleontological Discovery:
In the event that paleontological resources are
inadvertently discovered during ground disturbing
activities, work shall be halted until the qualified
paleontologist can document the discovery as
appropriate, evaluate the potential resource, and
assess the significance of the find under the criteria
set forth in CEQA Guidelines Section 15064.5.
Applicant and City
of Industry
During ground
disturbing
activities.
Less than
Significant
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
Section
Number Mitigation Measures Responsible for Monitoring Timing Impact after Mitigation Hazards and Hazardous Materials
IX. Hazards
& Hazardous
Materials
HAZ-1 Phase 1 ESA: The Project Applicant shall
incorporate applicable recommendations provided
in the Phase I Environmental Site Assessment
prepared by Environmental Science Associates
(ESA). dated November, 2022 (Appendix E), The
recommendations are identified as follows:
• Responsible parties, land owners, and
contractors performing subsurface
activities at the site should be prepared to
encounter residual petroleum- and
hydrocarbon-contaminants in soils and
groundwater, particularly following
extended rainy periods when groundwater
levels and flows may increase. Appropriate
health and safety equipment and protocols
should be managed properly to avoid
threats to human health or the environment
associated with the HRECs.
• In order to identify residual contaminants in
soils associated with previous agricultural
uses at the subject property, preparation of
a Soil Investigation Report prior to
construction is required. Any contaminated
soils identified in the report shall be
removed, transported, and disposed in
accordance with applicable regulations.
Applicant and City
of Industry
Prior to and during
construction.
Less than
Significant
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
Section
Number Mitigation Measures Responsible for Monitoring Timing Impact after Mitigation Noise
XIII. Noise
NOI-1: Temporary Noise Barriers
Temporary noise barriers shall be installed along
the western Project boundary to the south of the
Vehicle Truck Bay Construction (the project site
boundary to the north of the schools) to shield the
sensitive receivers from construction noise. The
barrier for the project site boundary to the north of
the schools shall have a minimum length of 500
feet starting from the Project’s northwestern corner
where the security gate is and extending eastward
along the Project boundary and have a minimum
height of 15 feet (with the top of the barrier at least 15 feet above the ground surface of the school(s)
to the south of the proposed sound barrier) that is
made of sound blanket, plywood or other solid
material capable of reducing on-site construction
noise levels by at least 10 dBA. The temporary
noise barrier shall be in place during the site
improvement construction phase (e.g., during the
Vehicle Truck Bay Construction).
Applicant and City
of Industry
During
Construction.
Less than
Significant
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
XIII. Noise
NOI-2: Construction Noise Control Plan
The construction contract bid shall require the
chosen construction contractor(s) to prepare a
Construction Noise Control Plan. The details of the
Construction Noise Control Plan shall be included
as part of the permit application drawing set and as
part of the construction drawing set. The
Construction Noise Control Plan shall include, but
not be limited to the following:
• During the entire active construction period,
equipment and trucks used for project
construction shall utilize the best available
noise control techniques (e.g., improved
mufflers, equipment regarding-design, use
of intake silencers, ducts, engine
enclosures, and acoustically attenuating
shields or shrouds).
• Require the contractor to use impact tools
(e.g., jack hammers and hoe rams) that are
hydraulically or electrically powered
wherever such alternatives are available in
the market. Where the use of pneumatic
tools is unavoidable, an exhaust muffler on
the compressed air exhaust shall be used
along with external noise jackets on the
tools.
• During the entire active construction period,
stationary noise sources shall be located as
far from sensitive receptors as possible,
and they shall be muffled and enclosed
within temporary sheds, or insulation
barriers or other measures.
Applicant and City
of Industry
Prior to
Construction.
Less than
Significant
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
Section
Number Mitigation Measures Responsible for Monitoring Timing Impact after Mitigation • During the entire active construction period,
noisy operations shall be combined so that
they occur in the same time period as the
total noise level produced would not be
significantly greater than the level produced
if the operations were performed separately
(and the noise would be of shorter
duration).
• Select haul routes that avoid the greatest
amount of sensitive use areas.
Tribal Cultural Resources
XVIII. Tribal
Cultural
Resources
TCR-1: Retain a Native American Monitor Prior
to Commencement of Ground-Disturbing
Activities
A. The project applicant/lead agency shall retain
a Native American Monitor from or approved by
the Gabrieleño Band of Mission Indians – Kizh
Nation. The monitor shall be retained prior to
the commencement of any “ground-disturbing
activity” for the subject project at all project
locations (i.e., both on-site and any off-site
locations that are included in the project
description/definition and/or required in
connection with the project, such as public
improvement work). “Ground-disturbing
activity” shall include, but is not limited to,
demolition, pavement removal, potholing,
Applicant and City
of Industry
Prior to issuance
of a grading
permit, during
ground disturbing
activities, and
upon discovery of
any tribal cultural
resources (TCRs).
Less than
Significant
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
Section
Number Mitigation Measures Responsible for Monitoring Timing Impact after Mitigation auguring, grubbing, tree removal, boring,
grading, excavation, drilling, and trenching.
B. A copy of the executed monitoring agreement
shall be submitted to the lead agency prior to
the earlier of the commencement of any
ground-disturbing activity, or the issuance of
any permit necessary to commence a grounddisturbing activity.
C. The monitor will complete daily monitoring logs
that will provide descriptions of the relevant
ground-disturbing activities, the type of
construction activities performed, locations of
ground-disturbing activities, soil types, culturalrelated materials, and any other facts, conditions, materials, or discoveries of
significance to the Tribe. Monitor logs will
identify and describe any discovered TCRs,
including but not limited to, Native American
cultural and historical artifacts, remains, places
of significance, etc., (collectively, tribal cultural
resources, or “TCR”), as well as any
discovered Native American (ancestral) human
remains and burial goods. Copies of monitor
logs will be provided to the project
applicant/lead agency upon written request to
the Tribe.
D. On-site tribal monitoring shall conclude upon
the latter of the following (1) written
confirmation to the Kizh from a designated
point of contact for the project applicant/lead
agency that all ground-disturbing activities and
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
Section
Number Mitigation Measures Responsible for Monitoring Timing Impact after Mitigation phases that may involve ground-disturbing
activities on the project site or in connection
with the project are complete; or (2) a
determination and written notification by the
Kizh to the project applicant/lead agency that
no future, planned construction activity and/or
development/construction phase at the project
site possesses the potential to impact Kizh
TCRs.
XVIII. Tribal
Cultural
Resources
TCR-2: Unanticipated Discovery of Tribal
Cultural Resources Objects (NonFunerary/Non-Ceremonial) A. Upon discovery of any TCRs, all construction
activities in the immediate vicinity of the
discovery shall cease (i.e., not less than the
surrounding 50 feet) and shall not resume until
the discovered TCR has been fully assessed
by the Kizh monitor and/or Kizh archaeologist.
The Kizh will recover and retain all discovered
TCRs in the form and/or manner the Tribe
deems appropriate, in the Tribe’s sole
discretion, and for any purpose the Tribe
deems appropriate, including for educational,
cultural and/or historic purposes.
Applicant and City
of Industry
During ground
disturbing
activities.
Less than
Significant
XVIII. Tribal
Cultural
Resources
TCR-3: Unanticipated Discovery of Human
Remains and Associated Finery or Ceremonial
Objects
A. Native American human remains are defined in
PRC 5097.98(d)(1) as an inhumation or
cremation, and in any state of decomposition or
Applicant and City
of Industry
During ground
disturbing
activities.
Less than
Significant
City of Industry
Sysco Los Angeles Facility Expansion Project
Final InitialStudy/Mitigated Negative Declaration
April 29, 2025
Section
Number Mitigation Measures Responsible for Monitoring Timing Impact after Mitigation skeletal completeness. Funerary objects,
called associated grave goods in Public
Resources Code Section 5097.98, are also to
be treated according to this statute.
B. B. If Native American human remains and/or
grave goods are discovered or recognized on
the Project site, then Public Resource Code
5097.9 as well as Health and Safety Code
Section 7050.5 shall be followed.
C. C. Human remains and grave/burial goods
shall be treated alike per California Public
Resources Code section 5097.98(d)(1) and
(2).
D. D. Preservation in place (i.e., avoidance) is the
preferred manner of treatment for discovered
human remains and/or burial goods.
E. E. Any discovery of human remains/burial
goods shall be kept confidential to prevent
further disturbance.
Circulation Draft
Draft Initial Study and
Mitigated Negative Declaration
Sysco Los Angeles Facility Expansion Project
20701 East Currier Road
City of Industry
Lead Agency:
City of Industry
15625 Mayor Dave Way
City of Industry, CA 91744
(626) 333-2211
Prepared By:
CASC Engineering and Consulting, Inc.
1470 E. Cooley Dr.
Colton, CA 92324
(909) 783-0101
October 15, 2024
Circulation Draft
City of Industry
Sysco Los Angeles Facility Expansion
Initial Study/Mitigated Negative Declaration
October 15, 2024
TABLE OF CONTENTS
CHAPTER ONE – INTRODUCTION.......................................................................................... 5
1.1 Purpose and Authority .............................................................................................. 5
1.2 Documents Incorporated by Reference ................................................................... 5
1.3 Documents Prepared for the Project........................................................................ 5 CHAPTER TWO – ENVIRONMENTAL CHECKLIST................................................................. 6
2.1 Project Summary ....................................................................................................... 6
1. Project Title:..................................................................................................................... 6
2. Lead Agency Name and Address:.................................................................................... 6
3. Contact Person and Phone Number: ............................................................................... 6
4. Project Location:.............................................................................................................. 6
5. Project Applicant’s Name and Address: ........................................................................... 6
6. General Plan Designation: ............................................................................................... 6
7. Zoning Designation:......................................................................................................... 6
8. Project Description:.......................................................................................................... 6
9. Surrounding Land Uses and Setting: ............................................................................... 7
10. Other Public Agencies Whose Approval is Required:..................................................... 8
11. California Native American Tribes:................................................................................. 8
2.2 Environmental Factors Potentially Affected ...........................................................16
2.3 Determination............................................................................................................16
2.4 Evaluation of Environmental Impacts .....................................................................17 CHAPTER THREE – ENVIRONMENTAL IMPACT DISCUSSION............................................19 I. Aesthetics ........................................................................................................................19 II. Agricultural and Forestry Resources ...............................................................................22 III. Air Quality ......................................................................................................................24 IV. Biological Resources:....................................................................................................32 V. Cultural Resources.........................................................................................................36 VI. Energy...........................................................................................................................39 VII. Geology and Soils ........................................................................................................44 VIII. Greenhouse Gas Emissions ........................................................................................51 IX. Hazards and Hazardous Materials.................................................................................55 X. Hydrology and Water Quality..........................................................................................61 XI. Land Use and Planning .................................................................................................66 XII. Mineral Resources........................................................................................................68
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City of Industry
Sysco Los Angeles Facility Expansion
Initial Study/Mitigated Negative Declaration
October 15, 2024
XIII. Noise...........................................................................................................................69 XIV. Population and Housing ..............................................................................................75 XV. Public Services ............................................................................................................77 XVI. Recreation...................................................................................................................80 XVII. Transportation/Traffic .................................................................................................81 XVIII. Tribal Cultural Resources..........................................................................................86 XIX. Utilities and Service Systems ......................................................................................91 XX. Wildfire.........................................................................................................................97 XXI. Mandatory Findings of Significance...........................................................................100 CHAPTER FOUR – MITIGATION, MONITORING, AND REPORTING PROGRAM (MMRP).102 CHAPTER FIVE– REFERENCES AND PREPARERS ...........................................................115
5.1 References Cited..........................................................................................................115
5.2 List of Preparers ..........................................................................................................117
FIGURES
Figure 2-1: Regional Vicinity Map..............................................................................................10 Figure 2-2: Project Boundary ....................................................................................................11 Figure 2-3: Assessor’s Parcel Number......................................................................................12 Figure 2-4: General Plan Land Use...........................................................................................13 Figure 2-5: Zoning.....................................................................................................................14 Figure 2-6: Proposed Site Plan (January 31, 2023)...................................................................15 TABLES
Table 2-1: Proposed Building Additions ..................................................................................... 7 Table 3-1 Maximum Daily Regional Emissions Thresholds .......................................................25 Table 3-2 Maximum Daily Localized Emissions Thresholds ......................................................25 Table 3-3 Overall Regional Construction Emissions Summary..................................................29 Table 3-4 Project Localized Construction Impacts.....................................................................29 Table 3-5 Total Project Regional Operational Emissions...........................................................30 Table 3-6 Project Localized Operational Impacts ......................................................................30 Table 8-1 Total Project Greenhouse Gas Emissions.................................................................52 Table 13-1 Construction Equipment Noise Levels.....................................................................71 Table 13-2 Unmitigated Construction Noise Levels per Phase..................................................71 Table 13-3 Mitigated Construction Noise Levels per Phase ......................................................72 Table 17-1 Parking Compliance ................................................................................................84
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City of Industry
Sysco Los Angeles Facility Expansion
Initial Study/Mitigated Negative Declaration
October 15, 2024
Table 19-1 Multiple Dry Years Supply and Demand Comparison (acre-feet).......................94 Table 19-2 Proposed Expansion Estimated Solid Waste Generation ........................................96 Table 22-1 Mitigation Monitoring and Reporting Program .......................................................102
APPENDICIES
Appendix A - Site Plan 20701 Currier Road, City of Industry, California. ESI Group USA.
January 31, 2023.
Appendix B - 20701 Currier Road Project Air Quality and Greenhouse Gas Assessment.
Urban Crossroads, Inc. May 31, 2024.
Appendix C - Geotechnical Engineering Report, 20701 Currier Road City of Industry, California. Professional Services Industries, Inc. July 8, 2022.
Appendix D - Geologic and Geotechnical Peer Review 20701 Currier Road City of Industry, California. Leighton Consulting, Inc. October 26, 2022.
Appendix E - Phase I Environmental Site Assessment 20701 Currier Road City of Industry, California. ESA. November 2022.
Appendix F - Low Impact Development Plan 20701 Currier Road, City of Industry, California.
R.A. Smith, Inc. June 18, 2024.
Appendix G- Noise and Vibration Due Diligence Technical Report 20701 Currier Road City of Industry, California. ESA. July 2024.
Appendix H - Vehicle Miles of Travel (VMT) Assessment 20701 Currier Road, City of Industry, California. Fehr & Peers. March 26, 2024.
Circulation Draft
City of Industry
Sysco Los Angeles Facility Expansion
Initial Study/Mitigated Negative Declaration
October 15, 2024
CHAPTER ONE – INTRODUCTION
1.1 Purpose and Authority
This Initial Study/Mitigated Negative Declaration (“IS/MND”) has been prepared in accordance with the California Environmental Quality Act (California Public Resources Code §§ 21000 et seq.) (“CEQA”) to evaluate the potential environmental impacts associated with the implementation of the proposed Sysco Los Angeles Facility Expansion located at 20701 East Currier Road in the City of Industry, California. This document is prepared in conformance with CEQA and the CEQA Guidelines (California Code of Regulations, Title 14, § 15000 et seq.). This IS/MND is intended to serve as an informational document for the public agency decision makers and the public regarding the Sysco Los Angeles Facility Expansion.
1.2 Documents Incorporated by Reference
As permitted by Section 15150 of the CEQA Guidelines, this IS/MND references several technical studies and analyses. Information from the documents incorporated by reference is briefly summarized in the appropriate section(s). The relationship between the incorporated part of the referenced document and the IS/MND has also been described. The documents and other sources used in the preparation of this IS/MND include, but are not limited to:
• City of Industry 2014 General Plan (adopted June 12, 2014) • City of Industry General Plan Update Final Environmental Impact Report (June 12, 2014) • City of Industry Municipal Code Chapter 17.16 “Industrial Zone” • Los Angeles County General Plan (updated July 2022)
• Los Angeles County GIS Data Portal and Interactive Map (GIS-NET) • South Coast Air Quality Management District (SCAQMD)
• 2022 Air Quality Management Plan (AQMP) (adopted December 2, 2022)
1.3 Documents Prepared for the Project
As part of the CEQA review process, the lead agency determined that the following stand-alone technical studies be prepared for the project, and they are appended to the IS/MND as follows:
• Air Quality and Greenhouse Gas Emissions Assessment (Appendix B) • Geotechnical Report (Appendix C)
• Geotechnical Report Peer Review (Appendix D)
• Phase I Environmental Site Assessment (ESA) (Appendix E) • Low Impact Development Plan (LID) (Appendix F)
• Noise Impact Analysis (Appendix G)
• Vehicle Miles Travelled Analysis (Appendix H)