Coalinga City Council
September 3, 2026

NEW COALINGA MUNICIPAL AIRPORT

MOMENTUM TACTICAL, LLC LEASE AGREEMENT
This NEW COALINGA MUNICIPAL AIRPORT MOMENTUM TACTICAL, LLC LEASE AGREEMENT (“Agreement”) is effective as of the day of_______, 2025 (“Effective Date”), by and between City of Coalinga, a Municipal Corporation, with its principal place of business in Coalinga, California (“Owner”) and Momentum Tactical, LLC, a Utah limited liability company (“Lessee”). Owner and Lessee are sometimes referred to individually as a “Party” and collectively as the “Parties.”
Recitals
A. Owner owns the Coalinga Municipal Airport and the real property on which it is located.

B. Lessee is a Department of Defense-focused training company that specializes in tactical canopy flight instruction and military freefall courses.

C. Owner desires to lease to Lessee, and Lessee desires to lease from Owner, the belowidentified property pursuant to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Lease.

1.1 Property. Owner is the fee simple owner of certain real property located at 27500 Phelp Ave, Coalinga, CA 93210, identified by Assessor Parcel Number: [APN]. Owner hereby leases to Lessee, and Lessee hereby agrees to rent, the following areas of the New Coalinga Municipal Airport, described herein and depicted on Exhibit 1 (the “Property” or the “Premises”).

Site A. – Permanent Facility
Owner shall lease to Lessee approximately thirteen thousand (13,000) square feet for Lessee’s permanent facility, including a hangar and a one hundred foot by one hundred foot (100’ × 100’) concrete pad of approximately ten thousand (10,000) square feet, as depicted on Exhibit 1.

Overnight stays are permitted for up to fourteen (14) days within any onemonth period. The City requires formal notification whenever this provision is utilized. Notifications must include the specific reason why the accommodations are necessary in lieu of using local hotels. The stays referenced are strictly in connection with Lessee’s operations and do not establish tenancy or residency.

Site B. – Parachute Landing Area
Owner will lease to Lessee approximately 800,000 to 900,000 square feet of cleared land for parachute landings and powered paraglider training.

Relocation or early termination regarding Site B is strictly governed by Section 11 of this Agreement.

Site C. – Temporary Modular Facility
Owner shall lease to Lessee approximately fourteen thousand (14,000) square feet for Lessee’s temporary modular facility, as depicted on Exhibit 1, consisting of the following improvements:
• Modular Classroom Building: 2,500 sq. ft.
• Office / Lounge: 1,200 sq. ft.
• ADA-Compliant Restroom: 400 sq. ft.
• Covered Parachute Packing Area: 800 sq. ft.
• Outdoor Shade / Staging Structure: 800 sq. ft.

Modular buildings are permitted as temporary structures during construction of the permanent facility on Site A. The City will issue permits for modular buildings for an initial three (3)-year term upon application, with one (1)-year extensions available thereafter, not to exceed five (5) years total occupancy.

Upon completion of the permanent structures on Site A, Lessee shall remove all modular buildings at Lessee’s sole cost and expense within thirty (30) days.

1.2 Rights and Easements. Owner hereby grants to Lessee, and the Leasehold Estate shall include the following rights and easements: [ALL EASEMENTS, Utility Line Easement, Signage Easement, Access Easement]. Upon Lessee’s request, Owner shall execute and deliver to Lessee documents and instruments, satisfactory in form and substance to Owner and Lessee, evidencing the rights and easements granted pursuant to this Agreement, and Lessee may record such documents and instruments in the official records of the county where the Property is located.

2. Term.

2.1 Term. The term of this Agreement shall consist of an initial term of thirty (30) years commencing on the Rent Commencement Date (defined below) (the “Initial Term”), followed by two (2) automatic renewal terms of ten (10) years each (each, a “Renewal Term”), for a total term of fifty (50) years. The Initial Term and both Renewal Terms are collectively the “Term.”

2.2 Automatic Renewal. Each Renewal Term shall commence automatically upon expiration of the then-current term, on all the same terms and conditions of this Agreement, without notice, election, or further action by either Party, provided that Lessee is not then in uncured material default. Owner shall have no right to decline, condition, delay, or renegotiate any Renewal Term.

Lessee may decline a Renewal Term by delivering written notice to Owner not less than twelve (12) months before expiration of the then-current term. Neither Party shall have any right to renegotiate Base Rent or any other term of this Agreement in connection with any Renewal Term.

3. Rent.

3.1 Initial Rent Payment. In consideration of the rights granted to Lessee under this Agreement, Lessee shall make an initial rent payment Owner, without deduction or offset except as otherwise expressly provided herein, in the amount of Twelve Thousand Dollars ($12,000.00) per year ("Base Rent"), which shall be paid in rental payments of $1,000.00 per month, during the initial term of this Lease. Base Rent shall be payable in advance on the first day of each calendar month beginning on the Rent Commencement Date as defined in Section 3.2 below.

3.2 Rent Commencement Date shall mean the date that is the later of (i) one hundred twenty (120) days after the Effective Date of this Lease, or (ii) the date upon which Owner has completed delivery of utilities, perimeter fencing, and vehicular access to Sites A, B and C as described in Exhibit 1. Rent shall be abated on a day-for-day basis for any period of delay in such deliverables.

3.3 Rent Escalation: Base Rent shall accrue an increase of two percent (2%) per year, compounding, but shall be adjusted and become payable only at the commencement of each ten (10)-year period of the Term, and shall remain fixed for the full ten (10) years of each such period. Accordingly, Base Rent shall be:
• Years 1 – 10: $12,000.00 per year ($1,000.00 per month) • Years 11 – 20: $14,627.93 per year ($1,218.99 per month) • Years 21 – 30: $17,831.37 per year ($1,485.95 per month) • Years 31 – 40: $21,736.34 per year ($1,811.36 per month) • Years 41 – 50: $26,496.48 per year ($2,208.04 per month) Each amount equals Twelve Thousand Dollars ($12,000.00) multiplied by 1.02 raised to the power of the number of full Lease Years elapsed before the commencement of that period. There shall be no market-rate reset, reappraisal, renegotiation, or other adjustment of Base Rent at the commencement of any Renewal Term or at any other time during the Term.

3.4 Rent Abatement for City Delay. If, as of the Effective Date, Owner has not completed delivery of all required utilities and vehicular access to Sites A,B and C, the Rent Commencement Date shall automatically be extended on a day-for-day basis until such deliverables are fully operational. In addition, if any such deliverables become non-functional or unavailable after commencement of this Lease for a period exceeding seven (7) consecutive days, Lessee’s Base Rent shall be abated pro rata for the duration of the outage. i. Jet-A Fuel Availability: Owner shall use reasonable efforts to make Jet-A fuel available for sale to Lessee within six (6) months after the Effective Date. If Jet-A fuel is not available by that deadline due to Owner's failure to use reasonable efforts or due to reasons within Owner's control, Lessee shall receive a fifty percent (50%) rent credit beginning on the first day following such deadline and continuing until Jet-A fuel service is fully operational. No rent credit shall apply

if the unavailability of Jet-A fuel is due to reasons outside Owner's control despite Owner's reasonable efforts. During any period when Jet-A fuel is unavailable, Lessee may self-source fueling services consistent with Airport safety and environmental standards, and Owner shall waive any flowage, franchise, or exclusivity fees until its fueling system becomes operational.
ii. Verification and Adjustment: Any rent credit or abatement under this Section shall be reflected in the next monthly rental statement or, if Rent has already been paid, shall be applied as a credit toward the following month’s payment. No abatement or credit shall be construed as a waiver of Lessee’s right to enforce performance of Owner’s obligations.

3.5 Method of Payment. All Rent and other sums payable by Lessee under this Lease shall be paid in lawful money of the United States, by check or electronic transfer payable to City of Coalinga, and delivered to the address designated by Owner in writing, or such other place as Owner may from time to time designate. Any payment made after the due date shall accrue interest at a rate not to exceed five percent (5%) per annum, but no late fee or interest shall apply during any period in which Rent is abated or credited under this Lease.

3.6 Taxes and Assessments. Lessee shall pay all personal property taxes and assessments levied upon its equipment, vehicles, aircraft, or business operations on the Premises.

Owner shall pay all real property taxes and assessments relating to the underlying Airport property.

If any possessory interest tax or similar charge is assessed on Lessee’s leasehold interest, Base Rent shall be reduced dollar-for-dollar by the amount of such tax.

3.7 Late Payment and Grace Period. Rent shall be considered delinquent if not received within ten (10) days after the due date. Owner shall provide written notice of any delinquency, and Lessee shall have an additional ten (10) days after such notice to cure before any default may be declared. No late fee or penalty shall apply if Rent is withheld or reduced pursuant to an authorized abatement or credit under this Lease.

3.8 Holding Over. If Lessee remains in possession of the Premises after the expiration or earlier termination of this Agreement without the express written consent of Owner, such occupancy shall be deemed a tenancy at sufferance only, subject to all terms and conditions of this Agreement except as to the length of the term and the amount of rent. In such event, Lessee shall pay holdover rent at a rate equal to one hundred fifty percent (150%) of the monthly rent in effect immediately prior to such expiration or termination, prorated on a daily basis. Acceptance of any such rent by Owner shall not be deemed or construed as consent to continued occupancy.

4. Security Deposit. Concurrently with Lessee’s execution of this Lease, Lessee shall deposit with Owner the sum of one thousand dollars ($1,000) as a security deposit (the “Security

Deposit”) for the faithful performance by Lessee of all terms, covenants, and conditions of this Agreement during the Term. If Lessee defaults with respect to any provision of this Agreement, Owner may use, apply, or retain all or any portion of the Security Deposit to pay rent or any other monetary obligation in default, to cover any sum Owner may expend or become obligated to expend by reason of Lessee’s default, or to compensate Owner for any loss or damage arising from such default. If any portion of the Security Deposit is so applied, Lessee shall, within ten (10) days after written demand therefor, deposit additional funds with Owner sufficient to restore the Security Deposit to its original amount; failure to do so shall constitute a material breach of this Lease.

Provided Lessee fully and faithfully performs all provisions of this Lease, the Security Deposit, or any remaining balance, shall be returned to Lessee within 30 days after the expiration or earlier termination of the Term and Lessee’s surrender of possession of the Premises.

5. Development, Operation, and Use of Premise.

5.1 Lessee Responsibility. For the duration of the Agreement, the Lessee has the following responsibilities:
i. Pay all utilities and rent as provided under this Agreement. ii. Purchase their fuel directly from the City whenever it is available on-site.
iii. At its sole expense, construct, operate, maintain, and repair all improvements on the Premises. All improvements, alterations, or construction shall be subject to Owner’s prior written approval, including review of plans, specifications, materials, and contractors. Such approval shall not be unreasonably withheld but may be conditioned to ensure compliance with applicable airport design standards, FAA requirements, municipal codes, and Owner’s policies.
iv. Comply with all applicable Federal Aviation Administration (FAA), Department of Defense, and Coalinga Municipal Airport safety regulations.
v. Comply with all applicable municipal, county, state, and federal laws, regulations, and ordinances.
vi. Upon termination of this Agreement, restore Site B to a safe and neutral condition, except where termination occurs pursuant to Section 11 or as a result of Owner’s uncured material breach, in which case Lessee shall have no restoration obligation.

5.2 Ownership of Improvements. Lessee shall be the sole owner of all right, title, and interest in and to the Improvements, all other personal property installed, used, or maintained on the Premises, and any profits derived exclusively from events conducted on the Premises during the Term.

Upon expiration or earlier termination of this Agreement:

Owner’s Election. Within thirty (30) days prior to expiration, or thirty (30) days after a notice of termination, Owner shall notify Lessee in writing whether it elects to purchase some or all Improvements at their then-current fair market value (the “Election Notice”). If Owner fails to deliver an Election Notice within this period, it shall be deemed an election not to purchase any Improvements.

Removal by Lessee. If Owner elects not to purchase, Lessee shall, within one hundred eighty (180) days after the Election Notice deadline, remove the Improvements at its sole expense and repair any damage caused by such removal, restoring the Premises to a safe condition.

Automatic Vesting. Except for Improvements that Owner has elected to purchase under the Election Notice, any Improvements not removed within the one hundred eighty (180) day period following the Election Notice deadline shall automatically vest in Owner without payment or further action required
This Section shall not apply to any termination under Section 11, which governs exclusively as to the disposition of Improvements

5.3 Hazardous or Non-Compliant Improvements. If any improvement constructed, installed, or maintained by Lessee is determined by Owner, in its reasonable discretion, to be hazardous, unsafe, non-compliant with applicable laws, regulations, building codes, or airport standards, or to interfere with airport operations, Owner may require Lessee to modify or remove such improvement at Lessee's sole expense, within thirty (30) days after written notice. Owner's determination shall identify the specific code, standard, or FAA regulation at issue, and Lessee shall have an opportunity to cure or appeal such determination. If Lessee fails to timely comply, Owner may, without liability to Lessee, remove or remediate the improvement at Lessee's expense, and Lessee shall promptly reimburse Owner for all costs incurred.

5.4 FAA Jurisdiction and Compliance. Lessee acknowledges that certain activities may require FAA approval or compliance with FAA regulations, and Lessee shall be solely responsible for securing any such approvals at its own expense. Owner is not responsible for obtaining approvals from the Federal Aviation Administration (FAA) for any development, construction, improvements, or operations undertaken by Lessee on the Premises, including but not limited to airspace determinations, obstruction evaluations, airport layout plan modifications, or operational authorizations. Owner's inability to permit or approve any improvement, operation, or activity due to FAA requirements, restrictions, or denials shall not constitute a material breach of this Agreement, and Lessee shall have no claim against Owner arising from any FAA determination or regulatory requirement that limits, delays, or prohibits Lessee's intended use of the Premises. This Section shall not apply to any FAA requirement, restriction, or determination that results from Owner’s own application, submission, act, or omission, and shall not limit Lessee’s rights under Section 11

5.5 Insurance. Prior to occupying the Property, Lessee shall obtain the following insurance policies:
i. General Liability Insurance. A general liability insurance policy insuring against bodily injury, personal injury, and property damage caused by Lessee’s use of the Premises in an amount not less than two million dollars ($2,000,000) [two million dollars ($2,000,000) per occurrence and five million dollars ($5,000,000) aggregate] of combined single limit liability coverage per occurrence, accident or incident. Owner shall be named as additional insured on all such policies of insurance. Lessee shall cause its insurers to issue endorsements identifying Owner as an additional insured.

5.6 Owner Responsibilities. For the duration of this Agreement, Owner shall have the following responsibilities:
i. Maintain the airfield infrastructure. “Maintain" means to keep in safe, operational condition consistent with FAA regulations and industry standards, subject to reasonable notice of deficiencies. Temporary closures for maintenance, weather, emergencies, or circumstances beyond Owner's control are not breaches. Material breach occurs only upon indefinite runway closure due to Owner's failure to maintain after reasonable notice and opportunity to cure. The maintenance of the airfield infrastructure shall include:

1. The Runway (5,000 ft, 30,000 lbs/axle); and

2. Lighting for nighttime operations / Taxiways, lighting, and perimeter fencing for nighttime and secured operations. ii. Ensure that utilities, including water and electricity, are available at the facilities located on Site A , B, and C.
iii. Maintain the perimeter security fencing for Site A, B, and C. iv. Jet-A fueling obligations, performance deadlines, and related rent credits are governed by 3.5 of this Agreement. Owner acknowledges that timely provision of Jet-A fuel is a critical operational requirement for Lessee.
v. Provide and maintain adequate utility capacity (electrical power, water, and communications) to stub-out or connection points located at

the boundaries of Sites A, B and C, sufficient to support Lessee’s intended operations. Lessee shall be responsible for the design, permitting, and installation of all internal utility infrastructure within Sites A, B and C from those connection points, at its sole cost. vi. Coordinate and cooperate with Lessee on all required utility permits, inspections, and tie-ins to ensure timely completion and activation of such utilities.
vii. Refrain from directly or indirectly interfering with Lessee’s operations, undertakings, or activities, or from engaging in any activity that may disturb the Improvements or Lessee’s activities on the Premises.
viii. Mow and roll the Parachute Landing Section of Site B at least annually, or more frequently as reasonably necessary, to maintain safe conditions.

5.7 Exclusive Operations. During the first ten (10) years of the Term, Owner shall not permit any third party to conduct parachute operation training on Airport property. This restriction applies to both commercial and non-commercial entities, including but not limited to Powered Promotor Operations. After the initial ten (10)-year period, Owner may permit such activities provided they do not constitute a material hindrance to Lessee's operations

6. Taxes. Owner shall be responsible for, and shall timely pay before delinquency, all real property taxes, assessments, and other governmental charges imposed on or arising in connection with the Property itself. Lessee shall be responsible for, and shall timely pay before delinquency, all taxes, assessments, fees, or charges imposed as a result of Lessee’s use or activities on the Premises, including but not limited to sales taxes, use taxes, excise taxes, personal property taxes, and business license fees. If any possessory-interest tax or similar charge is assessed on Lessee’s leasehold interest, Base Rent shall be reduced dollar-for-dollar by the amount of such tax.

7. Utilities. Owner shall provide adequate water utility capacity to stub-out or connection points at the boundary of Sites A, B and C. Lessee shall be responsible for designing and installing all other utility infrastructure, including electrical, sewer, and communications services, at its sole cost.

Lessee shall design and install all internal utility infrastructure from the water connection points at its sole cost. Owner shall coordinate tie-ins and permitting for the water connection to avoid unreasonable delay. Lessee shall pay for all water utilities supplied to the Premises. Owner shall not be liable, in damages or otherwise, for any failure or interruption of water service furnished to the Premises, and no such failure or interruption shall entitle Lessee to terminate this Lease; provided, however, that if such failure or interruption continues for more than sixty (60) consecutive days, Rent shall be abated pro rata

for the duration of the outage, and if such failure continues for more than sixty (60) consecutive days without cure, Lessee may, at its option, terminate this Lease upon written notice to Owner.

8. Maintenance. Lessee shall, at its sole expense, maintain the Premises in good order, condition, and repair, including keeping common and parking areas neat, clean, and orderly, and repairing any damage to the facilities thereof. If Lessee fails to do so, Owner may give written notice specifying the required work. If Lessee fails to promptly commence such work and diligently prosecute it to completion, Owner may, but shall not be obligated to, perform such work and expend funds reasonably required therefor. Any amounts so expended by Owner shall be reimbursed by Lessee upon demand, together with interest at 5 percent (5%) per annum from the date of such expenditure. Owner shall, at its sole cost, maintain all runway surfaces, taxiways, perimeter fencing, and lighting systems serving the Premises. If Owner fails to perform any maintenance obligation under this Agreement within thirty (30) days after written notice, Lessee may perform such work and offset the full cost, together with interest at the Wall Street Journal prime rate plus two percent (2%) per annum, against Rent and any other sums due to Owner.

9. Indemnity. Owner shall defend, indemnify, and hold harmless Lessee, its officers, directors, members, managers, employees, and agents, from and against any and all claims, demands, losses, liabilities, damages, costs, and expenses, including reasonable attorneys’ fees, arising directly out of (i) Owner’s negligence, gross negligence, or willful misconduct at the Property, or (ii) activities performed or expressly authorized by Owner at the Property, to the extent such claims are not caused by the negligence or willful misconduct of Lessee.

If Owner fails to provide such defense or indemnification as required under this Section, Lessee may bring an independent action to enforce Owner’s obligations hereunder. Any such action shall be subject to the applicable statutes of limitations under California law.

The Lessee agrees to defend and indemnify the Owner for any liability stemming from any adverse judgment or settlement against the Owner in connection with any activity performed or allowed by the Lessee at the Property. Specifically, the Lessee shall indemnify the Owner against all liability, claims, demands, losses, damages, costs, charges, and expenses, including reasonable attorneys' fees, that the Owner may in any way sustain, incur or become liable for in consequence of any activities performed or allowed by the Lessee at the Property.

If the Lessee fails to defend and indemnify as set forth in this Agreement, the Owner may bring a separate suit against the Lessee for failure to do so. Any such action shall be subject to the applicable statutes of limitations under California law.

Each Party's indemnity obligations shall apply only to the extent of its own negligence or willful misconduct. Both Parties waive consequential, incidental, and punitive damages arising from this Lease, except for third-party claims subject to indemnity.

10. Default; Termination.

10.1 Notice and Cure. If either Party alleges that the other has breached or defaulted on any representation, warranty, or obligation under this Agreement, the non-defaulting Party shall deliver to the defaulting Party a reasonably detailed written notice of such breach or default. The defaulting Party shall have sixty (60) days from receipt of such notice to cure the default; provided, however, that if the default cannot reasonably be cured within such sixty (60) day period, the defaulting Party shall have such additional time as is reasonably necessary to cure the default, so long as it commences cure within the initial sixty (60) day period and diligently prosecutes such cure to completion.

For purposes of this Agreement, a "material breach" means a breach of any representation, warranty, or obligation that: (a) substantially impairs the benefit of the bargain to the nondefaulting Party; (b) defeats the essential purpose of this Agreement; or (c) makes performance by the non-defaulting Party substantially more burdensome or impossible. Minor, technical, or non-substantive violations that do not significantly affect the Parties' rights or obligations shall not constitute a material breach.

If the defaulting Party fails to timely cure a material breach, the non-defaulting Party may terminate this Agreement and/or exercise any other rights or remedies available at law or in equity; provided that the non-defaulting Party shall use commercially reasonable efforts to mitigate damages arising from such default.

10.2 Termination. Termination is permitted only:
i. for an uncured material breach as defined in Section 10.1 ii. in the event of condemnation or casualty as expressly provided in this lease, or an airport closure exceeding one hundred twenty (120) days; provided that if such closure is caused by, undertaken in connection with, or followed within twenty-four (24) months by a Qualifying Redevelopment as defined in Section

11.2, termination shall be governed exclusively by Section 11; iii. by mutual written agreement of the Parties; or
iv. pursuant to Section 11 (Early Termination and Strategic Redevelopment Buyout).
v. by Lessee pursuant to Sections 10.3 or 10.4

10.3 Lessee Termination for Owner Default. If Lessee terminates this Agreement as a result of Owner’s uncured material breach, Lessee shall be entitled to receive the Buyout Price determined under Section 11, together with all rights, security, payment timing, and surrender protections provided in Sections 11.7 through 11.11, in addition to any other remedies available at law or in equity

10.4 Lessee Early Termination. Lessee may terminate this Agreement effective as of the last day of Lease Year 5, 10, 20, 30, or 40 by delivering written notice to Owner not less than twelve (12) months before such date.

Lessee may also terminate effective as of the last day of Lease Year 3, upon ninety (90) days' written notice, if as of the date of such notice (i) Owner has not completed delivery of all utilities, perimeter fencing, and vehicular access to Sites A, B and C; (ii) Jet-A fuel is not available for sale at the Airport; or (iii) any FAA or other regulatory action materially restricts Lessee's permitted operations.

Upon any termination under this Section, Lessee shall pay all Rent accrued through the effective date, remove its Improvements and restore the Premises in accordance with Section 5.2, and thereafter have no further liability under this Agreement. Termination under this Section shall not affect, limit, or imply any corresponding right of Owner, and Owner's rights and obligations under Section 11 shall be unaffected.

11. Early Termination and Strategic Redevelopment Buyout.

11.1 Limitation on Owner’s Termination Rights. Owner shall have no right to terminate this Lease before expiration of the Term except (a) for Lessee’s uncured material default, (b) upon condemnation or casualty as expressly provided in this Lease, (c) by mutual written agreement of the Parties, or (d) under this Section.

11.2 Definitions. For purposes of this Section: “Buyout Price” means the greater of (a) the Predetermined Buyout Amount set forth in Section 11.5 or (b) the Calculated Buyout Amount determined under Section 11.6. Section 11.7 governs how the Buyout Price is determined and paid. “Qualifying Redevelopment” means a bona fide airport redevelopment, repurposing, major capital investment, strategic aviation development, public infrastructure project, or other material airport development opportunity. “Constructive Termination” means any act or omission of Owner, other than one arising from Lessee’s uncured material default, that materially impairs Lessee’s approved use of the Premises or the operational rights necessary to Lessee’s business — including displacement, forced relocation, material reconfiguration or reduction of the Premises (including Site B or the parachute landing areas), loss or material impairment of operational or utility access, or an airport layout change having any such effect. The characterization Owner gives an action — relocation, ALP modification, redevelopment, repurposing, partial taking, operational adjustment, or sponsor planning decision — does not control; the practical effect on Lessee’s operations does. “Termination Event” means (a) Owner’s election to terminate under Section 11.3, or (b) a Constructive Termination that Lessee elects to treat as a termination under Section 11.4.

11.3 Owner’s Termination Right. Owner may terminate this Lease before expiration of the Term only in connection with a Qualifying Redevelopment, and only by (a) delivering not less than thirty-six (36) months’ prior written notice to Lessee and (b) paying the Buyout Price as provided in this Section.

11.4 Constructive Termination; Owner’s Opportunity to Cure. If Lessee believes Owner has caused a Constructive Termination, Lessee shall notify Owner in writing, describing the action and its operational effect. Owner shall have thirty (30) days to rescind the action or to implement a cure that restores Lessee’s operational capability in all material respects.

If Owner does neither, Lessee may elect by written notice to treat the action as a Termination Event, in which case the Buyout Price shall be payable as if Owner had elected to terminate under Section

11.3. The effective termination date shall be the date Lessee designates in its election notice, which shall be not less than one hundred eighty (180) days nor more than thirty-six (36) months after the notice.

Where the impairment is partial, Lessee may instead elect, in its sole discretion, proportionate abatement of Rent together with reimbursement of Lessee’s documented costs of adapting its operations to the change, in lieu of the Buyout Price. Lessee’s failure to elect within one hundred eighty (180) days after Owner’s cure period expires shall waive its rights under this Section as to that action only.

11.5 Predetermined Buyout Amount. The Predetermined Buyout Amount is determined by the Lease Year in which Owner delivers its termination notice or Lessee delivers its election notice under Section 11.4, as set forth in the table below:

Lease Year Predetermined Buyout Amount
1 – 5 $7,500,000
6 – 15 $10,000,000
16 – 30 $12,500,000
31 – 40 $10,000,000
41 – 50 $7,500,000
Each amount is stated in dollars as of the Rent Commencement Date and shall be adjusted on each anniversary of that date by the percentage increase, if any, in the Consumer Price Index for All Urban Consumers, U.S. City Average (or any successor index), over the preceding twelve (12) months. No

adjustment shall reduce the Alternative Buyout Amount below the amount in effect for the prior Lease Year.

11.6 Calculated Buyout Amount. The Calculated Buyout Amount is the sum of the following:

A. Facility Recovery. The greater of (i) the unrecovered portion of all documented hard and soft costs incurred by Lessee to design, permit, construct, install, equip, utility-serve, and improve the Premises, or (ii) the full payoff amount of all loans, contractor obligations, equipment financing, liens, prepayment charges, and other obligations incurred in connection with the Premises or the Improvements — plus the reasonable costs of releasing liens, discharging financing, satisfying contractor claims, and delivering clear title to any Improvements retained by Owner or its designee.

B. Business Value, Lost Profits, and Comprehensive Economic Loss. The total economic loss resulting from the Termination Event shall be determined by an independent business valuation professional holding industry-standard certifications (including Accredited Senior Appraiser [ASA], Accredited in Business Valuation [ABV], or Certified Valuation Analyst [CVA]). The fees and expenses of such appraiser shall be paid entirely by Owner. The appraisal shall establish value based on Fair Market Value as an ongoing enterprise, without application of discounts for lack of marketability, illiquidity, keyperson reliance, or transfer restrictions. i. Lost Profits Component. In recognition of the specialized, locationdependent nature of Lessee’s aviation and skydiving operations, the lost profits component of this buyout shall be fixed at five times (5×) Average Annual Net Operating Income (NOI). "Average Annual Net Operating Income" shall mean total operating revenues derived from operations at or based from the Premises, minus all direct operating expenses, maintenance costs, and operational overhead, calculated as the average over the three (3) most recently completed fiscal years.

The 5× NOI multiple is agreed upon as the exclusive formula to compensate Lessee for any and all lost future profits, operational disruption, customer loss, and enterprise earnings lost as a result of early termination or relocation.
ii. Consolidated Transition and Relocation Expenses. In addition to the 5× NOI lost profits calculation under Subsection B.1, the appraiser shall evaluate and incorporate all direct physical, operational, and

setup costs required to reestablish Lessee's platform at a replacement facility, including:
a. reasonable capital allowances necessary to design, permit, utility-serve, and construct a replacement facility of
equivalent operational utility;
b. direct costs of equipment relocation, aircraft and vehicle repositioning, gear storage, and operational reestablishment; c. direct customer/contract transition costs,
demobilization/remobilization expenses, and cancellation penalties; and
d. reasonable third-party engineering, legal, accounting, and advisory fees incurred directly as a result of the Termination Event.

C. Prevention of Double Recovery. The appraiser shall aggregate Subsections B.1 and B.2 into a single comprehensive valuation determination. No financial loss, capital expenditure, asset value, moving expense, or overhead item shall be counted more than once.

11.7 Determination of the Buyout Price
i. The Buyout Price is the greater of the Predetermined Buyout Amount or the Calculated Buyout Amount. Owner shall obtain the determination of the Calculated Buyout Amount under Section 11.6 at Owner’s sole cost and expense, and shall deliver it to Lessee not later than one hundred eighty (180) days after its termination notice ii. Lessee may, at its sole option and by written notice at any time, elect to accept the Predetermined Buyout Amount in full satisfaction of the Buyout Price, in which case no determination under Section 11.6 shall be required.
iii. If Owner fails to deliver a determination within the period in subsection (a), the Buyout Price shall be Lessee’s good-faith determination of the Calculated Buyout Amount, or the
Predetermined Buyout Amount, whichever is greater.

11.8 No Double Recovery. No cost, loss, or obligation shall be counted more than once in calculating the Buyout Price.

11.9 Funding, Payment, and Security.

A. Estimate. Within sixty (60) days after a termination notice or Lessee’s election notice, Lessee shall deliver to Owner a good-faith written estimate of the Buyout Price with reasonable supporting documentation.

B. Evidence of Funding. Within ninety (90) days after receiving that estimate, Owner shall deliver written evidence that funding for the estimated Buyout Price has been appropriated, dedicated, or otherwise committed.

C. Security. Not later than twelve (12) months before the effective termination date, Owner shall deposit into escrow, or otherwise secure in a manner reasonably acceptable to Lessee, one hundred percent (100%) of the estimated Buyout Price.

D. Facility Recovery. The Facility Recovery amount shall be paid or fully discharged not later than thirty (30) days before the effective termination date.

E. Payment. One hundred percent (100%) of all undisputed amounts shall be paid to Lessee on or before the effective termination date. Any disputed amount shall remain in escrow or otherwise secured until resolved. No valuation dispute shall delay payment of undisputed amounts.

F. Post-Determination Payment. Any amount determined owing after final valuation shall be paid within thirty (30) days after that determination, and any amount unpaid thereafter shall bear interest at the Wall Street Journal prime rate plus two percent (2%) per annum until paid in full.

11.10 Conditions to Effectiveness; No Surrender Before Payment. Termination shall not become effective, and Lessee shall not be required to surrender possession, discontinue operations, remove property, transfer Improvements, release operational rights, or cooperate in transition of the Premises, until:

A. one hundred percent (100%) of all undisputed amounts have been paid; B. one hundred percent (100%) of any disputed amounts have been escrowed or otherwise secured in a manner reasonably acceptable to Lessee; C. all facility-related debts, liens, contractor obligations, and financing obligations have been discharged, paid, or fully secured; and
D. Owner has provided the transition access and cooperation reasonably necessary for Lessee to relocate, wind down, or transition operations safely and in an orderly manner.

If the effective termination date arrives before these conditions are satisfied, this Lease shall continue in full force on all its terms, and the effective termination date shall be extended day for day until they are satisfied.

Upon satisfaction of these conditions and payment in full, Lessee shall surrender the Premises and convey to Owner, by quitclaim deed or bill of sale, any Improvements Owner elects to retain, free of liens created by or through Lessee.

11.11 Valuation and Dispute Resolution. If the Parties dispute the Calculated Buyout Amount, each Party shall within thirty (30) days appoint one independent, qualified valuation

professional with experience in commercial real estate, airport facilities, business valuation, or aviation operations.

If the two determinations differ by ten percent (10%) or less, the Calculated Buyout Amount shall be their average. If they differ by more, the two professionals shall within thirty (30) days select a third, and the Calculated Buyout Amount shall be the average of the two closest determinations. Each Party bears the cost of its own professional; the cost of the third shall be shared equally.

Pending final determination, Owner shall pay all undisputed amounts and shall escrow or otherwise secure the disputed amount. No valuation dispute shall require Lessee to surrender the Premises before Section 11.10 is satisfied.

11.12 Third-Party Funding. Owner may satisfy its obligations under this Section with funds provided by a third-party investor, developer, operator, successor airport user, or project sponsor.

Owner shall nevertheless remain primarily responsible for timely payment and performance, and no agreement between Owner and any third party shall reduce, delay, condition, or otherwise impair Owner’s obligations to Lessee under this Section.

11.13 Eminent Domain. Nothing in this Section limits Lessee’s rights under applicable eminent domain law. If Owner or an affiliated public entity acquires the Premises or any material portion by eminent domain in connection with a Qualifying Redevelopment, Lessee shall be entitled to the greater of the Buyout Price or its award under applicable law, to the extent permitted by law.

11.14 Nature of Payment. This Section states the agreed consideration for an optional termination right that Owner is not required to exercise. The Buyout Price is not a penalty, forfeiture, or liquidated damages provision. It is intended to compensate Lessee for the loss of its leasehold position, facility investment, business platform, operating continuity, replacement facility requirements, contract-supported revenue opportunity, and transition costs arising from Owner’s voluntary exercise of that right.

11.15 Survival. Owner’s obligations under this Section shall survive termination of this Lease until all amounts due to Lessee have been paid in full and all transition obligations have been completed.

12. Assignment and Sublease.

12.1 General Restriction. Lessee shall not voluntarily or by operation of law assign, or transfer its interest in this Lease or in the Premises, nor sublet or license all or any portion of the Premises, without the prior written consent of Owner in each instance, which consent shall not be not

be unreasonably withheld, conditioned, or delayed. Any attempted assignment, transfer, sublease, or license without such consent shall be void and of no effect.

12.2 Related Party Assignment. Notwithstanding Section 12.1, Lessee may assign this Lease to any parent company, subsidiary, affiliate, or other entity under common ownership or control with Lessee and/or its owners (a “Related Party Assignment”), provided that Lessee delivers written notice and copies of the Related Party Assignment documents to Owner. Owner shall promptly acknowledge receipt of such documents in writing and return a copy to Lessee. In no event shall Owner unreasonably withhold or delay such acknowledgement, nor interfere with any Related Party Assignment.

12.3 Right to Sublease. Notwithstanding Section 12.1, Lessee shall have the right to sublease the Premises as follows:
i. Lessee may sublease for aviation-related or Department of Defense–approved uses, subject to Owner’s review, which shall not be unreasonably withheld, conditioned, or delayed.
ii. Any sublease for non-core activities shall likewise require review not to exceed twenty (20) business days from receipt of a complete package, after which approval shall be deemed granted.
iii. Legal or administrative fees charged by Owner in connection with its review of any sublease shall not exceed Two Thousand Five Hundred Dollars ($2,500.00) per instance.

12.4 Continuing Liability. In all cases of assignment or sublease, whether or not consent is required or obtained, Lessee shall remain primarily liable for the performance of all obligations under this Lease unless expressly released in writing by Owner.

13. Miscellaneous.

13.1 Entire Agreement. This Agreement, together with its attached exhibits (which are incorporated herein by reference), constitutes the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and representations, whether oral or written, which shall be of no force or effect. No addition, modification, or waiver of any term of this Agreement shall be effective unless in writing and signed by both Parties. This Agreement shall not be construed more liberally in favor of, or more strictly against, either Party. As used herein, the neuter gender includes the masculine and feminine, and the singular includes the plural, and vice versa, whenever the context so requires. The terms “include,” “includes,” and “including” shall be deemed to be followed by the phrase “without limitation.” Captions and headings are for convenience only and shall not affect the interpretation of this Agreement.

13.2 Governing Law. The terms and provisions of this Agreement shall be governed by, and construed in accordance with, the laws of the State of California, without regard to its conflict of laws principles.

13.3 Legal Counsel and Advice. Each party to this Agreement has had the opportunity to consult with legal counsel and other advisors of its own choosing prior to executing this Agreement.

13.4 Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, Owner and Lessee, any permitted Assignee, and their respective heirs, transferees, successors, and assigns. All references to “Lessee” in this Agreement shall be deemed to include any Assignee holding a direct ownership interest in this Agreement.

13.5 Notices. All notices or other communications required or permitted hereunder, including payments to Owner, shall be in writing, and shall be personally delivered, delivered by reputable overnight courier, or sent by registered or certified mail, return receipt requested and postage prepaid, to the addresses set forth on the signature page of this Agreement. Notices personally delivered shall be deemed given the day so delivered. Notices given by overnight couriers shall be deemed given on the first business day following the mailing date. Notices mailed as provided herein shall be deemed given on the third business day following the mailing date. Any party may change its address for purposes of this subsection by giving written notice of such change to the other party in the manner provided in this subsection.

13.6 Choice of Law. The Property is located in the County of Fresno, State of California. This Agreement shall be governed by, and construed in accordance with, the laws of the State of California. Venue for any action or proceeding, whether at law or in equity, arising out of or relating to this Agreement shall lie exclusively in Fresno County, California. Both Parties hereby waive any rights under California Code of Civil Procedure Section 394 to seek transfer of venue to a neutral county or other venue.

13.7 Mediation. In the event of any dispute arising under or related to this Agreement, the Parties shall first submit the matter to non-binding mediation before commencing litigation or arbitration. Any Party may initiate mediation by delivering written notice to the other Party. Mediation shall be conducted in accordance with the California Mediation Rules and Procedures, or, by mutual agreement, through another mediation service or mediator. Mediation shall be confidential in accordance with California Evidence Code §1119 et seq. (superseding the outdated reference to §1152.5), and the Parties shall share equally the mediator’s fees and costs.

13.8 Arbitration. If the Parties fail to resolve their dispute through mediation, the Parties agree to arbitrate disputes through binding arbitration. Each Party agrees that:
i. any arbitration will occur in Fresno County, in the State of California, and will be conducted confidentially in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect (the "AAA Rules"), except as modified by this "Arbitration" section. Arbitration shall be conducted by a single arbitrator, provided that any dispute in which the amount in controversy exceeds Five Million Dollars ($5,000,000) shall be heard by a panel of three (3) arbitrators. Any dispute as to the amount of the Calculated Buyout Amount shall be determined exclusively under Section 11.11 and not by arbitration under this Section; and
ii. that the state or federal courts of the State of California have exclusive jurisdiction over any appeals and the enforcement of an arbitration award.

13.9 Attorney’s Fees. In any action, proceeding, or arbitration to enforce or interpret this Agreement, the prevailing party shall be entitled to recover from the non-prevailing party its reasonable attorneys’ fees and cost, in addition to any other relief to which such party may be entitled.

13.10 Certified Access Specialist program. Pursuant to California Civil Code §1938, the Parties acknowledge that, as of the execution of this Agreement, no Certified Access Specialist (CASp) inspection has been conducted for the Premises. Lessee acknowledges and agrees that Owner makes no representation as to whether the Premises has been determined to meet all applicable construction-related accessibility standards under California law.

13.11 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties execute this Agreement effective as of the Effective Date.

OWNER:
____________________________
[NAME],
[BUSINESS]
Address for Payment and Notices:

LESSEE:
_____________________________
[NAME],
[BUSINESS]
Address for Payment and Notices:

[ADDRESS]
[ADDRESS]
[PHONE]
[ADDRESS]
[ADDRESS]
[PHONE]

EXHIBIT 1

PROPERTY/PREMISES
APN: [APN]

PHOTO/MAP OF PROPERTY
Momentum Tactical LLC 2026 1
Site Plan
Momentum Tactical - New Coalinga Municipal Airport (C80) Momentum Tactical proposes to establish a specialized aviation training and operational facility at New Coalinga Municipal Airport to support advanced parachute and aircraft-supported aerial operations for government, military, and approved professional users.

The proposed use is aeronautical in nature and is directly dependent upon aircraft and airport facilities. Planned activities include aircraft-supported parachute operations, equipment preparation and parachute packing, classroom instruction, mission planning, and structured postflight debriefing. All flight operations will be coordinated with the City of Coalinga and conducted in accordance with applicable FAA regulations, airport rules and regulations, and established aviation safety standards.

Operational activity will occur in scheduled training blocks, rather than as continuous daily use.

During the interim operational period, Momentum Tactical anticipates approximately 60 operational days per year, with the potential to increase over time as operational demand develops. Any increase in activity levels would be coordinated in advance with the City and conducted in a manner consistent with the airport’s operational capacity, adopted planning documents, and safety requirements.

The interim lease period is anticipated to be up to thirty-six (36) months. Development during this period will consist exclusively of temporary or modular facilities, with no permanent foundations proposed. Interim facilities are expected to include modular classrooms, administrative space, equipment storage, and designated parachute packing and staging areas.

Site circulation, vehicle access, parking, and security controls will be designed to maintain safe separation from aircraft movement areas and to avoid interference with existing airport operations.

Aircraft utilized for training will be mission-specific and variable, and all aircraft operations will be coordinated in advance to ensure safe integration with other airport users. Participation in training activities will be managed and scheduled to ensure appropriate supervision, operational control, and compliance with airport safety requirements.

If, at a future date, Momentum Tactical elects to pursue permanent facilities or expanded development beyond the interim scope described herein, such development would be subject to separate review, approval, and coordination with the City of Coalinga and any applicable federal or state agencies. Any long-term development would remain consistent with aeronautical land use compatibility requirements and the Airport Layout Plan (ALP).

Momentum Tactical is committed to working collaboratively with the City of Coalinga, airport management, and its consultants to provide any additional operational details, plans, or supporting exhibits necessary to ensure the project proceeds in a safe, coordinated, and compliant manner.

Momentum Tactical LLC 2026 2
Momentum Tactical LLC 2026 3
Hangar Site (Site A)
Site A is proposed as the location of a future permanent aircraft hangar and associated support space.
• Total site area: Approximately 13,000 square feet
• Proposed hangar building footprint: Approximately 8,000 to 10,000 square feet • Estimated building dimensions: Approximately 100 feet x 130 feet • Maximum roof height: Approximately 29 feet
No permanent construction is proposed during the interim period.

Property Boundaries (Site A):

A1: 36° 9'33.81"N; 120°17'28.87"W
A2: 36° 9'33.15"N; 120°17'27.95"W
A3: 36° 9'32.18"N; 120°17'28.96"W
A4: 36° 9'32.82"N; 120°17'29.90"W
Momentum Tactical LLC 2026 4
Parachute Landing Area (Site B)
Momentum Tactical LLC 2026 5
Site B is designated as the primary parachute landing area supporting aircraft-based training operations.
• Dimensions: Approximately 900 feet x 900 feet
• Total area: Approximately 810,000 square feet
This area will be used exclusively for controlled parachute landing operations and will be managed to ensure compatibility with aircraft operations and airport safety standards.

Property Boundaries (Site B):

C1: 36° 9'32.18"N; 120°17'27.14"W
C2: 36° 9'26.49"N; 120°17'18.66"W
C3: 36° 9'19.62"N; 120°17'25.76"W
C4: 36° 9'25.37"N; 120°17'34.15"W
Temporary Facility Complex (Site C)
Momentum Tactical LLC 2026 6
Site C is proposed as a temporary modular facility complex to support interim operations while permanent facilities are planned and developed.
• Total site area: Approximately 13,000 square feet
• Duration: Temporary use for approximately 18 to 24 months Proposed Temporary Improvements:
• Two (2) modular classrooms:
o 24’ x 40’ x 12’ (960 sq. ft. each)
• One (1) modular office:
o 12’ x 60’ x 12’ (720 sq. ft.)
• One (1) 40-foot sea-land container:
o 40’ x 8’ x 8’ (320 sq. ft.)
• One (1) mobile restroom trailer:
o Approximately 24’ x 8’ x 12’ (192 sq. ft.)
• Covered parachute packing area:
o 40’ x 60’ x 12’ (2,400 sq. ft.)
All facilities will be temporary in nature, removable, and installed without permanent foundations.

Property Boundaries (Site C):

B1: 36° 9'33.47"N; 120°17'30.89"W
B2: 36° 9'32.70"N; 120°17'31.69"W
B3: 36° 9'33.56"N; 120°17'32.87"W
B4: 36° 9'34.29"N; 120°17'32.08"W
Momentum Tactical LLC 2026 7

STAFF REPORT - CITY COUNCIL/SUCCESSOR AGENCY/PUBLIC FINANCE

AUTHORITY
Subject: Discussion, Direction and PotentialAction regarding the League of California Cities 2026 Annual Conference Resolution
Meeting Date: Thursday, September 3, 2026
From: Sean Brewer, City Manager
Prepared by: Sean Brewer, City Manager
I. RECOMMENDATION:

There is no staff recommendation, however a consensus of the Council should be met in order for the voting delegate to vote on the Council's behalf.

II. BACKGROUND:

The League's 2026 Annual Conference is scheduled for September 23rd - 25th in Anaheim. An important part of the Annual Conference is the Annual Business Meeting (during GeneralAssembly), scheduled for 8:30 a.m. on Friday, September 25, 2026. At this meeting, the League members consider and take action on resolutions that establish League Policy.

In order to vote at the Annual Business Meeting, the City Council must designate a voting delegate and up to two alternate voting delegates. The City Council has designated Mayor Vosburg as this year's voting delegate and Mayor Pro-Tem Schindler and Councilman Ramirez as the alternate voting delegates, who may vote in the event that Mayor Vosburg is unable to serve in his capacity.

III. DISCUSSION:

This year, one resolution has been introduced for consideration at the Annual Conference and referred to the League policy committee.

In previous years, the League's resolutions have been brought before the Council to ensure the Council's consensus of the resolutions to be voted on.

IV. ALTERNATIVES:

V. FISCAL IMPACT:

ATTACHMENTS:

File Name Description
2026-cal-cities-resolution-packet.pdf 2026 League of California Cities Resolution Packet 2025-2026

CAL CITIES OFFICERS
President
Gabe Quinto
Mayor
El Cerrito
First Vice President
Teresa Acosta
Council Member
Carlsbad
Second Vice President
David Cohen
Council Member
San Jose
Immediate Past President
Lynne B. Kennedy
Mayor Pro Tem,
Rancho Cucamonga
Executive Director
and CEO
Carolyn M. Coleman
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org August 10, 2026
TO: Cal Cities Members
RE: Cal Cities 2026 Resolution Packet
Sixty days before the Cal Cities Annual Conference and Expo, Cal Cities members may submit resolutions on issues of importance to cities. This year, Cal Cities received one resolution by the July 25 deadline.

The attached packet contains the proposed resolution, background information, supporting letters from cities and city officials, and an analysis of the resolution by Cal Cities. The packet includes detailed information on the resolution process and the next steps for the resolution.

We encourage each city council to consider the resolution and determine a position so your voting delegate can represent your city’s position on the resolution.

Voting Delegates: City councils must appoint a voting delegate to vote during the General Assembly. Each city may also appoint up to two alternate delegates. If your city has not already done so, please appoint your voting delegate by Tuesday, Sept. 1, 2026. The voting delegate packet contains more information.

The 2026 General Assembly will be held Friday, Sept. 25, at 8:30 a.m. in the Anaheim Convention Center during the Annual Conference and Expo.

For questions about resolutions, voting delegates, or the General Assembly, please contact Zach Seals.
2026
Resolution
Packet
2026 Resolution Packet
Information on 2026 Resolutions Process
Consideration by Policy Committee (pre-conference)
Per the Cal Cities bylaws, Cal Cities President Gabe Quinto has referred the submitted resolution to the Housing, Community, and Economic Development Committee. The committee will meet on Thursday, Sept. 17, at 10 a.m. via Zoom to review the resolution and make a recommendation that will be sent to the Resolutions Committee. A public comment period will be held during the meeting. Register for the meeting here.

A list of recommendations the policy committee may make during its meeting is on page two of this packet.

Consideration by Resolutions Committee (during conference) On Thursday, Sept. 24, at 1:00 p.m. the Resolutions Committee will meet to review the resolution and the recommendation of the policy committee.

The Resolutions Committee consist of one representative from each of Cal Cities caucuses, departments, divisions, and policy committees, as well as up to ten additional appointments made by the Cal Cities President. A public comment period will be held during the meeting. Refer to the onsite conference program for the location.

A list of recommendations the Resolutions Committee may make during its meeting is on page two of this packet.

Consideration by the General Assembly (during conference) The General Assembly will convene on Friday, Sept. 25, at 8:30 a.m. to consider any resolutions the Resolutions Committee has forwarded. To vote during the General Assembly, voting delegates must have checked in at the voting delegate booth.

Conference attendees will receive materials for the General Assembly on the evening of Thursday, Sept. 24. For more information on voting and discussion procedures during the General Assembly, see page three of this packet.

Petitioned Resolutions (during conference)
The petitioned resolution is an alternate method to introduce policy proposals during the annual conference. To initiate a petitioned resolution, voting delegates from 10% of member cities must sign the petition. The resolution and signatures are due at least 24 hours before the beginning of the General Assembly. Voting delegates who have checked in at the voting delegate booth can receive more information on petitioned resolutions at the booth onsite. 1 2026 Resolution Packet
Policy Committee and Resolutions Committee Actions
The submitted resolution will be heard by the policy committee to which it was assigned, and the Resolutions Committee. The table below shows what recommendations these bodies may make on the resolution.

Policy Committee Actions Resolutions Committee Actions
Approve Approve
Disapprove* Disapprove*
No Action No Action
Amend and approve Amend and approve
Refer to appropriate policy committee
for further study*
Approve as amended
Refer as amended to appropriate
policy committee for further study*
Refer to appropriate policy committee
for further study*
Refer as amended to appropriate
policy committee for further study*
Approve with additional
amendment(s)
Additional amendments and refer to
appropriate policy committee for
further study*
*If a resolution is disapproved or referred for further study by all policy committees to which it is assigned and the Resolutions Committee, it will not proceed to the General Assembly. 2 2026 Resolution Packet
General Assembly Voting and Discussion Procedures
Discussion Procedures:

Discussion procedures during the General Assembly are guided by two calendars:
the Consent Calendar and the Regular Calendar. As seen below, resolutions are calendared by the recommendations they receive from policy committees and the Resolutions Committee.

For General Resolutions:

Policy Committee
Recommendation
Resolutions Committee
Recommendation Calendar
Approve Approve Consent Calendar
Approve Disapprove or refer Regular Calendar
Disapprove or refer Approve Regular Calendar
Disapprove or refer Disapprove or refer Does not proceed to General Assembly
For Petitioned Resolutions:

Policy Committee
Recommendation Resolutions Committee Action Calendar
N/A
Approve Regular Calendar
Disapprove or Refer Regular Calendar
Disqualified Does not proceed to General
Assembly
Items on the Consent Calendar will be presented as one motion during the General Assembly from the Resolutions Committee chair. Unless an item on the Consent Calendar is set aside by the majority of the General Assembly, a vote will be taken on the whole calendar. If an item is set aside, it will be opened for discussion, followed by a vote.

Items on the Regular Calendar will be presented individually by the Resolutions Committee chair. After a recommendation is presented by the Resolutions Committee chair, the resolution will be opened for discussion by the General Assembly. A vote will take place following discussion.

Voting Procedures:

Per Cal Cities Bylaws Article XII, Sec. 2, all votes will be conducted by voice vote first. If the presiding official cannot determine the outcome, a vote will be taken by an alternative method, typically a raise of voting cards by voting delegates. A roll call vote may be called for by delegates of ten percent or more of the General Assembly.
3 2026 Resolution Packet
2026 Resolution

1. Resolution No. 1 submitted by City of Murrieta
• Letters of concurrence submitted by:
i. City of Banning;
ii. City of Calimesa;
iii. City of Canyon Lake;
iv. City of Moreno Valley;
v. City of Norco;
vi. City of Torrance;
vii. Crystal Ruiz, Mayor, City of San Jacinto;
viii. Jessica Alexander, Mayor, City of Temecula
• Referred to Housing, Community, and Economic Development Committee
• Policy Committee Recommendation:
• Resolutions Committee Recommendation:
4 2026 Resolution Packet
Resolution No. 1
Submitted by City of Murietta
5 2026 Resolution Packet

1. A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF CALIFORNIA CITIES

CALLING FOR A WORKING GROUP TO CONSIDER A STATE CONSTITUTIONAL

AMENDMENT OR OTHER FORM OF INITIATIVE TO ENSURE FINAL LOCAL AUTHORITY OVER

HOUSING AND LAND USE DECISIONS
Source: City of Murrieta
Concurrence of five or more cities/city officials
Cities/city officials: City of Banning; City of Calimesa; City of Canyon Lake; City of Moreno Valley; City of Norco; City of Torrance; Crystal Ruiz, Mayor, City of San Jacinto; Jessica Alexander, Mayor, City of Temecula
Referred to: Housing, Community, and Economic Development Policy Committee WHEREAS, California cities have historically been responsible for adopting general plans and zoning regulations, reviewing housing development proposals, and providing or coordinating the streets, water, wastewater, public safety, parks, transportation, and other infrastructure and services necessary to support responsible, environmentally sound, and well-planned residential growth; and
WHEREAS, the League of California Cities is dedicated to protecting and expanding local control for municipalities across the state to ensure their orderly growth and development; and
WHEREAS, the League of California Cities recognizes that local zoning is a primary function of cities and an essential component of home rule, and that a city’s general plan should guide its land use planning and strategic decision-making free from pre-emption by the state; and
WHEREAS, increasingly prescriptive statewide housing mandates and development approval requirements can override locally adopted plans, zoning standards, and public review procedures without adequately accounting for differences that exist in each unique jurisdiction in infrastructure capacity, water availability, wildfire and evacuation risks, environmental constraints, fiscal impacts, public service needs, and community priorities; and
WHEREAS, California’s housing goals can be more effectively advanced through state funding, streamlined environmental requirements, and voluntary partnerships that support housing production while preserving the authority of locally elected officials to determine how and where housing is best planned and approved; NOW, THEREFORE, BE IT RESOLVED, by the General Assembly of the League of California Cities, assembled during the Annual Conference in Anaheim, California, on September 25, 2026, that the League of California Cities support the development and advancement of a state constitutional amendment or other legislative, policy, or ballotbased strategies that restore and strengthen local authority over housing and land use matters within municipal boundaries, including general plans, housing elements, zoning, density, design and development standards, project siting, and the approval or denial of housing development applications; and
6 2026 Resolution Packet
BE IT FURTHER RESOLVED, that any constitutional amendment or alternative strategy should preserve the State’s authority to establish broad statewide housing goals and enforce constitutional and civil rights, fair housing requirements, building and life-safety standards, and generally applicable environmental protections, while protecting cities from state actions that compel, through funding conditions or state law, the approval of housing developments that are inconsistent with locally adopted requirements; override local zoning or density standards; or invalidate locally adopted housing or land use decisions when a city has planned in good faith to accommodate its regional housing needs allocation and maintains adequate capacity for housing at all income levels; and BE IT FURTHER RESOLVED, that the League of California Cities consider establishing a statewide working group or other appropriate committee(s) to evaluate and develop a proposed constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use matters including but limited to: conducting appropriate legal, fiscal, and policy analyses; engaging cities and other stakeholders; and building a statewide coalition of proponent supporters in preparation for; the November 2030 General Election, or within another reasonable time frame as determined by the working group.
7 2026 Resolution Packet
Resolution No. 1: Background
Information
8 2026 Resolution Packet
Background Information for Resolution
Source: City of Murrieta
Background:

California cities are responsible for planning residential growth, adopting general plans and zoning regulations, reviewing development proposals, and providing or coordinating the infrastructure and public services necessary to support new housing. Since 2010, the State has enacted more than 500 housing-related laws that have increasingly shifted housing and land use authority away from local governments. These laws have expanded by-right development, limited locally adopted standards and review processes, and established enforcement mechanisms, including the builder’s remedy, that may override local plans and zoning. Although these measures are frequently presented as solutions to housing affordability, many increase development capacity or restrict local review without delivering the meaningful production of housing needed to address the housing crisis.

At the same time, the State has continued to prioritize increased development capacity without adequately accounting for the infrastructure, public services, economic realities, and safety measures necessary to support housing growth.

State mandates often fail to reflect local conditions, including roadway and utility capacity, water availability, wildfire exposure, environmental limitations, fiscal impacts, and the availability of essential services. Cities are consequently required to accommodate additional housing while receiving no funding or assistance to address the resulting infrastructure and service demands.

Local elected officials are directly accountable to the residents who experience the effects of development decisions and are responsible for balancing housing production with infrastructure capacity, public safety, environmental protection, fiscal sustainability, and community needs. Cities of all types in California have been grappling with this dynamic, ranging from urban to rural, coastal to inland, small to large, northern to southern, voicing concerns to legislative representatives with minimal responsiveness. This is an issue of statewide concern that needs the strength and diversity of the League of California Cities to pursue a long-term solution.

The proposed resolution directs the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions. The working group would be tasked with developing a more balanced framework that preserves the State’s role in establishing broad housing goals and enforcing constitutional, civil rights, fair housing, building, life-safety, and environmental requirements, while restoring meaningful local authority to allow cities to determine how statewide housing 9 2026 Resolution Packet
objectives should be implemented in a manner that reflects local conditions and community priorities while continuing to support responsible housing production.

As the primary statewide organization representing California cities, the League is uniquely positioned to lead this effort. Its established policy, legal, legislative, communications, and advocacy networks enable it to convene municipalities, evaluate potential strategies, conduct legal and fiscal analyses, build consensus, engage stakeholders, and coordinate with statewide decision-makers. League leadership would help ensure that any recommendation reflects the collective interests of California municipalities and would provide the credibility, organizational capacity, and statewide reach necessary to advance a viable strategy.
10 2026 Resolution Packet
Resolution No. 1: Letters of
Concurrence
11 12
13 July 23, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and

25. The resolution would direct the League to convene a working group to evaluate potential approaches for addressing the increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of Canyon Lake, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Arron Brown
City Manager
City of Canyon Lake
14 July 23, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and 25. The resolution would direct the League to convene a working group to evaluate potential approaches to address increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of Moreno Valley, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Brian Mohan
City Manager
City of Moreno Valley

15 July 22, 2026
President Gabe Quinto
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for a Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority
Dear President Quinto,
The City of Murrieta is sponsoring a resolution for consideration by the General Assembly of the League of California Cities to establish a statewide working group to evaluate a constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use decisions.

The proposed resolution, together with the required background materials, will be submitted to Cal Cities for consideration at the 2026 Annual Conference in Orange County on September 24 and 25. The resolution would direct the League to convene a working group to evaluate potential approaches for addressing the increasingly broad and prescriptive state mandates affecting local housing, zoning, development standards, and project approval authority.

On behalf of the City of the Norco, this letter confirms our support for the City of Murrieta’s submission of the proposed resolution and its consideration by the League of California Cities General Assembly at the 2026 Annual Conference.

Sincerely,
Kevin Bash
City Council Member
(951) 768-8981
16 17
18 19
20 July 23, 2026
Mr. Gabe Quinto, President
League of California Cities
1400 K Street, Suite 400
Sacramento, CA 95814
Subject: Support for the City of Murrieta's Resolution Establishing a Working Group to Evaluate a State Constitutional Amendment or Other Initiative to Restore Local Housing and Land Use Authority Dear President Quinto:

I am writing in my individual capacity as Mayor of the City of Temecula to express my strong support for the City of Murrieta's proposed resolution for consideration by the General Assembly of the League of California Cities at the 2026 Annual Conference.

The proposed resolution presents an important opportunity to thoughtfully evaluate the appropriate balance between California's statewide housing objectives and the constitutional principle of local governance. Establishing a statewide working group to examine a potential constitutional amendment, legislative reforms, or other policy initiatives will provide a meaningful forum to assess how local authority over housing and land use decisions can be strengthened while continuing to address the State's housing challenges.

Cities are uniquely positioned to understand the needs, opportunities, and constraints of their communities. Local elected officials are accountable to the residents they serve and are best equipped to make land use decisions that reflect a community's character, infrastructure capacity, economic development goals, environmental stewardship, and long-term vision. Equally important, local governments bear the primary responsibility for protecting public safety. Decisions regarding housing density, transportation, emergency access, wildfire preparedness, evacuation routes, police and fire service capacity, water availability, and critical infrastructure are inherently local matters that require the knowledge and judgment of those who serve their communities every day.

While the State has an important role in addressing California's housing needs, a collaborative approach that respects local expertise and preserves meaningful local discretion will produce stronger, safer, and more sustainable communities. The proposed working group offers an opportunity to evaluate policies that achieve these shared objectives while restoring an appropriate balance between state direction and local authority.
21 Mr. Gabe Quinto, President
League of California Cities
July 23, 2026

Although this letter reflects my personal position and is not an official action or policy of the City of Temecula or the Temecula City Council, I respectfully endorse the City of Murrieta's submission of this resolution and encourage its favorable consideration by the League of California Cities General Assembly.

Thank you for your leadership and your thoughtful consideration of this important issue.

Respectfully,
Jessica Alexander
Mayor, City of Temecula
Signing in her individual capacity
and not on behalf of the City of Temecula
or the Temecula City Council.
22 2026 Resolution Packet
Resolution No. 1: Staff Analysis
23 League of California Cities Staff Analysis on Resolution No. 1 Staff: Brady Guertin, Legislative Advocate
Committee: Housing, Community, and Economic Development Summary:

Resolution No.1 states that the League of California Cities (Cal Cities) will:

1. Support the development and advancement of a state constitutional amendment or legislative, policy, or ballot-based strategy that restores and strengthens local authority over housing and land use matters, including general plans, housing elements, zoning, density, design and development standards, project siting, and the approval or denial of housing development applications.

Pursuant to the resolution, the strategy should preserve the state’s authority to set broad, statewide housing goals and enforce civil rights, fair housing, building safety, and environmental standards while protecting local control by preventing the state from compelling the approval of developments that conflict with local requirements, override local zoning or density standards, or overturn local land use decisions where a city has planned for and maintained sufficient capacity to meet its housing obligations.

2. Consider establishing a statewide working group or other appropriate committee(s) to evaluate and develop a proposed constitutional amendment or other legislative, policy, or ballot-based strategies to restore and strengthen local authority over housing and land use matters.

The resolution states: “conducting legal, fiscal, and policy analyses; engaging cities and other stakeholders; and building a statewide coalition of proponent supporters in preparation for the November 2030 General Election, or within another reasonable time period.” Background:

As provided in the background information, the city of Murrieta is sponsoring this resolution in response to concerns over state laws that have increasingly reduced city discretion over housing and land use decisions, including legislation that requires ministerial or by-right approvals for housing projects, limits the application of local development standards, and strengthens state enforcement mechanisms against local governments.

Additionally, the city of Murrieta, in its background information, maintains that these legislative efforts have not resulted in sufficient housing production to address California's housing shortage and have not adequately accounted for 24 local infrastructure, public service needs, public safety, market, and fiscal considerations.

The resolution states that California’s housing goals are better advanced through state funding, streamlined environmental requirements, and voluntary partnerships, while preserving local authority over how and where housing is best planned and approved.

Consideration of the resolution may be informed by a brief examination of how the California Constitution allocates authority between the state and cities with respect to land use decisions.

The constitution grants cities the power to adopt local laws to protect the public’s health, safety, and welfare. This grant is called the “police power,” which is the basis for local land use regulation. The constitution grants charter cities the additional power to adopt local laws affecting “municipal affairs.” This power, commonly referred to as “home rule,” is based on the principle that a city, rather than the state, is in the best position to identify and satisfy the needs of the local community.

The constitution’s broad grant of police power contains a significant limitation.

Local law adopted under the police power is not valid if it “conflicts” with state law. A local law “conflicts” with state law when it regulates the same “field” in which the Legislature has stated its intent to occupy. In that case, state law is said to “preempt” the local law and it cannot be enforced.

An ordinance adopted by a charter city under the municipal affairs power cannot be enforced if it affects a “matter of statewide concern.” The subjects that have been identified as “matters of statewide concern” have changed over the years due to economic, social, and political circumstances.

Since the 1960s, the state has enacted numerous laws that limit or preempt aspects of local land use and zoning authority. These laws include the Fair Employment and Housing Act, Housing Element Law, Housing Accountability Act, Density Bonus Law, Permit Streamlining Act, accessory dwelling unit laws, California Environmental Quality Act, and others. In recent years, the state has enacted several laws that Cal Cities was the leading opposition force against, as many of the proposals pre-empted local land use authority, limited public review, and constrained local flexibility. In support of its housing and land use legislation, the Legislature has cited a statewide housing crisis and the need for increased housing production at all income levels while asserting that a uniform approach to local land use decision-making is required. 25 Discussion:

The resolution does not prescribe a specific policy mechanism. The eight letters in support recommend creating a working group or committee to evaluate potential approaches, including legislative proposals, constitutional amendments, or ballot initiatives to strengthen local authority over housing and land use matters.

A discussion of a strategy to restore and strengthen local authority over housing and land use matters will need to consider the California Constitution’s framework for both preemption of police power enactments and municipal affairs, discussed above. It will also need to determine whether changes to the California Constitution will be proposed, and whether they constitute an amendment or a revision, which require different processes.

A constitutional revision is a multistep process blending legislative consensus, voter support, and on occasion, a constitutional convention. It requires significant public engagement.

A constitutional amendment would require a ballot initiative, which includes gathering enough valid signatures to qualify for the ballot, building large coalitions to support election efforts, and campaigning to voters to support the initiative. This process can involve significant costs. In the last major election for ballot initiatives in 2024, proponents spent $8-$18 million to qualify for the ballot and spent nearly $700 million for the full election cycle, averaging out to about $100 million per ballot initiative.

Cal Cities has been engaged in ballot advocacy for over 20 years. In the early 2000s, Cal Cities developed a ballot advocacy infrastructure that included forming an issue political action committee, fundraising, establishing a network of regional managers, and building a coalition with other organizations to ultimately advocate on a ballot measure. Ballot advocacy requires the approval of the Board of Directors with a supermajority vote.

In the Legislature, Cal Cities plays an active and influential role to ensure that local flexibility and autonomy in the land use and housing space is maintained by engaging on dozens of bills every legislative session to ensure that cities' voices are heard at the state Capitol. Below, you will find Cal Cities “Existing Policy” on local control, housing, and land use policies.

Fiscal Impact
The resolution itself would not have a significant direct fiscal impact. However, depending on what actions follow, the fiscal costs could be significant. 26 Existing Cal Cities Policy
Vision
To be recognized and respected as the leading advocate for the common interests of California's cities.

Mission Statement
To expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians.

We Believe
• Local self-governance is the cornerstone of democracy. • Our strength lies in the unity of our diverse communities of interest. • In the involvement of all stakeholders in establishing goals and in solving problems.
• In conducting the business of government with transparency, openness, respect, and civility.
• The spirit of honest public service is what builds communities. • Open decision-making that is of the highest ethical standards honors the public trust.
• Cities are vital to the strength of the California economy. • The vitality of cities is dependent upon their fiscal stability and local autonomy.
• The active participation of all city officials increases the League's effectiveness.
• Partnerships and collaborations are essential elements of focused advocacy and lobbying.
• Ethical and well-informed city officials are essential for responsive, visionary leadership and effective and efficient city operations.

Zoning
Cal Cities believes local zoning is a primary function of cities and is an essential component of home rule. The process of adoption, implementation and enforcement of zoning ordinances should be open and fair to the public and enhance the responsiveness of local decision-makers. State policy should leave local siting and use decisions to the city and not interfere with local prerogative beyond providing a constitutionally valid procedure for adopting local regulations. State agency siting of facilities, including campuses and office buildings, should be subject to local notice and hearing requirements in order to meet concerns of the local community. Cal Cities opposes legislation that seeks to limit local authority over parking requirements.

Housing Element
Housing issues should be addressed in the general plan as other planning issues are. The housing element should be prepared for the benefit of local 27 governments and should have equal status with the other elements of the general plan.

Encourage Full Community Participation
Foster an open and inclusive community dialogue and promote alliances and partnerships to meet community needs.

Well-Planned New Growth
Recognize and preserve open space, watersheds, environmental habitats, and agricultural lands, while accommodating new growth in compact forms, in a manner that:
• De-emphasizes automobile dependency;
• Integrates the new growth into existing communities;
• Creates a diversity of affordable housing near employment centers; • Provides job opportunities for people of all ages and income levels.

Support:

The following letters of concurrence were received:

City of Banning
City of Calimesa
City of Canyon Lake
City of Moreno Valley
City of Norco
City of Torrance
Crystal Ruiz, Mayor, City of San Jacinto
Jessica Alexander, Mayor, City of Temecula
28