CITY OF COMMERCE
LETTER OF INTENT
To: Morley Justman
From: Ernie Hernandez, City Manager
Date: September 10, 2026
Re: Proposed New Digital LED Sign
6300 Telegraph Road, Commerce, CA 90040
APN 6336-008-033
Dear Mr. Justman,
To assist in completing a Development Agreement (DA), I am outlining the proposed erms that have l, as the City Manager for the City of Commerce (Commerce) wil ecommend for approval to the City Council, along with other standard terms an conditions that will form the basis of the DA for your proposed new digital LED sign.
However, the City Council has the final decision-making authority regarding all terms, conditions and approvals, including the approval of the DA. As shown on the concept plans submitted to the City, your proposal is to construct a 20' × 60' two-sided digital display.
Annual Development 15% of gross advertising revenue with a Fee to Commerce: minimum of $75,000 MAG and a maximum of $110,000 MAG for years 1-10.
15% of gross advertising revenue with a
minimum of $90,000 MAG and a maximum of
$134,000 MAG for years 11-15.
15% of gross advertising revenue with a
minimum of $90,000 MAG and a maximum of
$134,000 MAG for years 16-20.
15% of gross advertising revenue with a
minimum of $130,000 MAG and a maximum of
$190,000 MAG for years 21-25.
15% of gross advertising revenue with a
minimum of $130,000 MAG and a maximum of
$190,000 MAG for years 26-30.
2535 Commerce Way • Commerce. California 90040• (323) 722-4805 • FAX (323) 838-4240 Above schedule applies as long as the sign is
producing offsite income. At no point shall the
billboard discontinue producing offsite income for
more than 6 months. The above schedule will
apply after 6 months regardless of whether the
billboard is producing offsite income
Start date for the annual development fee is 7
months after signed DA.
Other Fees (one Justman has paid the City a one-time
time): Development Agreement Deposit fee of $25,000
to offset consultant, legal costs, etc. Any
additional amounts needed to process and
implement the application will be invoiced to the
Applicant.
3. Planning & Permit Justman has paid required plan check fees to Fees: begin the plan check review process for the
proposed sign. Justman must pay any additional
required City fees, including: planning, public
works, CEQA, building permits, etc. In addition,
Justman to pay for all costs associated with
obtaining a State Permit and either de-
classifying or entering into a relocation
agreement with Caltrans, if required.
4. Ad Content Ad content related to smoking, vaping, cannabis, Restrictions: tobacco use, adult entertainment, and sexually oriented materials, images and language, as well
as those restrictions as set forth in the DA, are
prohibited. Casino and gambling related
advertising is allowed only for the Commerce
Casino only.
5. Term: The term of the Development Agreement will be
for 10 years with the option to extend. Justman
will have the right to extend four 5-year options
following the initial term.
City Facilities: Reservation to Commerce to install
telecommunication equipment necessary for
public safety, at no cost or impact to Justman,
provided that it does not interfere with any
equipment, is not dangerous and is aesthetically
acceptable to 6300 Telegraph LLC and the City.
т. Public Safety Justman agrees to participate with Caltrans and Messages: other agencies, at no cost to Commerce, for
Amber Alert, FEMA and other emergency
messages.
Location & Design: Attached is an aerial outlining a portion of the proposed site to locate the sign. The sign design
to be agreed on by the parties and will include a
attached sign with City of Commerce signage
from the examples that Ernie sent on 8/12/26.
9. City PSA: Commerce shall receive 10% of the available time, equally spread throughout a 24-hour day
for public service messages, on a space
available basis. Commerce shall be responsible
for producing all camera-ready art-work ready to
post at their cost.
10. Default Language: With prior written notice, normal default provisions if DA fee not paid within 15 days of
the due date.
11. Repair and Justman to be responsible for all capital costs, Maintenance: as well as costs of repair and maintenance. If 30% or more of the screen is not operational, the
entire screen shall display black until repaired.
All graffiti shall be promptly removed.
12. Additional Revenue: If Justman installs antenna or wireless communication devices, Commerce shall be
paid as additional revenue 10% of the gross
Alternatively, installation of antenna or wireless
communication devices will be prohibited on the
billboard
13. Insurance: $2/$4M GL coverage naming Commerce as
additional insured.
14. Other: Justman shall offer all local business/economic groups with a business home address in
Commerce and a valid City business license, a
5% discount off published advertising rates.
Other terms and additions as agreed to between
the Parties.
15. Legal: Commerce to provide the first draft of the DA for review and comment by Justman, a copy which
is attached to this Agreement.
This Letter of Intent, once accepted by the parties, is solely a statement of the present intentions of the parties and is not intended to create any binding legal obligations. The arties intend that neither shall have any contractual obligations to the other with respec to the matters referred herein unless and until a definitive Development Agreement has been fully executed and delivered by both parties.
If these general business terms are acceptable, please indicate by signing below and returning to me at your earliest convenience. At that time, the City will review and comment on the Development Agreement, in order to finalize that document. Also, the Community Development Department will provide a list of submittal documents and forms to complete, to start processing the required entitlements.
Contact me should you have any questions.
Sincerely,
Ernie Hernandez
City Manager
City of Commerce
AGREED AND ACCEPTED THIS 11 DAY OF September 2026.
6300 Telegraph LLC
Mhat fate
City of Commerce
By: