Ordinance No. 840
ORDINANCE NO. 840
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, APPROVING DEVELOPMENT AGREEMENT NO. BDA-26- 01 BETWEEN THE CITY OF COMMERCE AND 6300 TELEGRAPH LLC
FOR THE CONSTRUCTION AND OPERATION OF A NEW DIGITAL
BILLBOARD SIGN AT 6300 TELEGRAPH ROAD; MAKING FINDINGS
PURSUANT TO GOVERNMENT CODE SECTION 65867.5; AND MAKING
FINDINGS OF A CEQA EXEMPTION
WHEREAS, the State of California enacted California Government Code Sections 65864 et seq. (“Development Agreement Statutes”) to authorize municipalities to enter into development agreements with those having a legal or equitable interest in real property to strengthen the public planning process, encourage private participation in comprehensive planning, and reduce the economic risk of development; and WHEREAS, the purpose of the Development Agreement Statutes is to authorize municipalities, in their discretion, to establish certain development rights in real property for a period of years regardless of intervening changes in land use regulations, to vest certain rights in the applicant, and to meet public purposes of the local government; and WHEREAS, as authorized by the Development Agreement Statutes, the City has established procedures and requirements for the consideration and processing of development agreements; and
WHEREAS, pursuant to Chapter 19.25, Division 4 of the Commerce Municipal Code (“CMC”), billboard signs are permitted subject to the review and execution of a Development Agreement requiring review and recommendation by the Planning Commission and final approval by the City Council; and
WHEREAS, the applicant, Morley Justman on behalf of 6300 Telegraph LLC (“Applicant”), has submitted an application for Development Agreement No. BDA-26-01 to allow the conversion of a previously approved freeway-oriented on-premise digital sign into a commercial off-premise digital billboard sign (“Project”) located at 6300 Telegraph Road (Assessor’s Parcel Number 6336-008-033) within the Light Manufacturing (M-1) zoning district; and
WHEREAS, notice of the Planning Commission public hearing for the Project was provided in the time, form, and manner required by law, and the Planning Commission considered the Project at a duly noticed public hearing on September 21, 2026, adopting Resolution No. PC 26-11 recommending approval to the City Council; and WHEREAS, notice of the City Council public hearing for the Project was published in the Los Cerritos News and mailed to property owners within a 500-foot radius in accordance with California Government Code Sections 65867 and 65090; and Ordinance No.
WHEREAS, on October 13, 2026, the City Council held a duly noticed public hearing, taking testimonial and documentary evidence, and evaluated the staff report, Planning Commission recommendation, and administrative record; and WHEREAS, the City Council finds the proposed Development Agreement is consistent with the City of Commerce General Plan, the CMC, and the public health, safety, and welfare.
NOW, THEREFORE, THE CITY COUNCIL FOR THE CITY OF COMMERCE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That based upon staff reports, presentations, public testimony, and all other matters presented during the public hearing on this item, the City Council hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Ordinance.
SECTION 2. Pursuant to the California Environmental Quality Act (CEQA; Public Resources Code § 21000 et seq.) and State CEQA Guidelines, the City Council hereby finds and determines that the Project is exempt from CEQA pursuant to Section 15301 (Class 1 – Existing Facilities) and Section 15061(b)(3) (Common Sense Exemption). The Project involves minor physical alterations to convert a previously approved on-premise digital sign into a billboard sign with no expansion of dimensions or height, and it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment. Furthermore, none of the exceptions to the exemptions under Section 15300.2 apply.
SECTION 3. FINDINGS (DEVELOPMENT AGREEMENT). Pursuant to California Government Code Sections 65864 through 65869.5 and the requirements for billboard development agreements per Chapter 19.25, Division 4, the City Council makes the following findings in light of the administrative record:
Finding 1: The proposed agreement is consistent with the goals, objectives, purposes, and provisions of the General Plan, the Municipal Code, and any applicable specific plans.
Development Agreement No. BDA-26-01 is consistent with the goals, policies, and objectives of the Commerce General Plan and Chapter 19.25, Division 4 of the Commerce Municipal Code. Specifically, the Project implements Community Development Policies 1.1 and 1.2 by establishing strict, enforceable site design and illumination standards within the Light Manufacturing (M-1) zone. Furthermore, the Project complies with Resource Management Policies 1.1 and 3.4 by incorporating mandatory energy-efficient LED technology, automatic dimming controls, and municipal light/glare standards to minimize energy consumption, and advances economic and public safety goals through Community Development Policies 2.4, 3.1, 6.2, 6.3, and Safety Policies 1.5 and 5.3.
Finding 2: The proposed use is compatible with the uses and structures on the site and in the surrounding area.
Ordinance No.
The proposed digital billboard sign is fully compatible with the underlying industrial uses at 6300 Telegraph Road and the surrounding commercial and industrial context. The structural parameters utilize fully vested heights and dimensions (100-foot height, 20' x 60' sign faces) authorized under prior variance approvals (Variance No. 24-06) and an active building permit, ensuring seamless integration with the existing 77,688-square-foot manufacturing building and neighboring properties without introducing conflicting land uses.
Finding 3: The proposed digital billboard sign would not create a traffic or safety problem, including problems associated with onsite access circulation or visibility.
The Project will not create traffic, access, circulation, or visibility hazards. The sign is oriented and engineered specifically for the adjacent Interstate 5 (I-5) freeway corridor, utilizing approved structural engineering, strict display hold times (minimum 8 seconds), smooth transitions without flashing or scrolling, and immediate malfunction-blanking controls to ensure the sign does not distract motorists or disrupt transit safety along the right-of-way.
Finding 4: The proposed digital billboard sign would not interfere with on-site parking or landscaping required by city ordinance or permit.
The conversion of the previously approved on-premise digital structure into a commercial billboard sign utilizes the existing, vetted structural footprint and foundation. The installation does not reduce, displace, or otherwise interfere with any on-site parking stalls, vehicular circulation lanes, or required landscaping features established under prior site plan and development approvals for the property.
Finding 5: The proposed digital billboard sign would not otherwise result in a threat to the general health, safety, and welfare of city residents.
The Project will not threaten the general health, safety, and welfare of the community. The Development Agreement enforces rigorous operational, maintenance, and safety controls—including mandatory graffiti removal within 48 hours, dust control, comprehensive general liability insurance, and strict prohibitions against inappropriate advertising (such as tobacco, cannabis, and non-local casinos)—ensuring the billboard sign operates safely and responsibly over its lifecycle.
Finding 6: The proposed digital billboard sign, in addition to its aesthetic treatment, provides substantial public benefits that would not otherwise accrue to the public in the absence of its installation with said benefits determined solely by the city council.
The Development Agreement secures substantial, tangible public benefits and financial contributions for the City of Commerce that would not occur without the Project. These benefits include a one-time development agreement payment of $25,000, guaranteed annual revenues (MAG fees starting at $75,000 with scheduled escalations and revenue sharing up to $190,000), integrated physical City of Commerce logos and signage Ordinance No.
structures, dedicated public service/emergency broadcast airtime for Amber Alerts and civil notifications, local business advertising rate reductions, and a 10% gross revenue share for any third-party wireless telecommunications attachments.
SECTION 4. Based upon the findings outlined hereinabove, the City Council hereby approves Development Agreement No. BDA-26-01 between the City of Commerce and 6300 Telegraph LLC, attached hereto as Exhibit “A” and incorporated herein by this reference, pursuant to California Government Code Section 65864 through 65869.5 and the applicable provisions of the Commerce Municipal Code, and authorizes the Mayor to execute the Development Agreement on behalf of the City, subject to final technical revisions as approved by the City Attorney.
SECTION 5. If any section, subsection, sentence, clause, phrase, word, or portion of this Ordinance is held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance irrespective of the fact that any one or more portions might be declared invalid or unconstitutional.
SECTION 6. This Ordinance shall take effect thirty (30) days following its adoption.
PASSED, APPROVED AND ADOPTED this 13th day of October, 2026.
Kevin Lainez, Mayor
ATTEST:
Eduardo Sarmiento
City Clerk
ATTACHMENT:
Exhibit “A” - Development Agreement No. BDA-26-01