Agenda packet — Fontana City Council, May 26, 2026 (part 2 of 4)

196

ATTACHMENT B CITY OF FONTANA

Complete Complete 3,406,636 In 2021 the Innovation and Technology Department began efforts to improve business processes in the land management and permitting systems. During the pandemic, it became clear that paper processes were no longer an effective way of serving our residents or business partners. The city wished to replace the existing solution with an improved digital solution to meet the needs of city employees, residents, and businesses. Over the course of a year, city staff reviewed processes and gathered requirements for a new solution.

A new solution was selected in late 2021 to help improve processes in the land management and permitting system space. Throughout 2022 the IT department has continued to lead this project, working alongside almost every city department to ensure the new solution will be tailored to meet the city of Fontana’s needs in this space. This project has been a 3-year effort, and we are now nearing the tail-end of the project. The new, improved solution will seamlessly connect with surrounding systems, assist customers with an easy-to-use interface, ensure city employees process requests in a consistent and efficient manner, and provide dynamic insights to internal operations. The new solution went live July 2023 and has required some improvements/enhancements. This project has been completed.

Leveraged Project: Fontana 311 2,398,355 2,139,790 Public Health & Economic Response This is a new pro ject and it is recommended that it is funded in the amount of $3.2 million in an effort to leverage funds for projects originally requested in the Revenue Loss category.

In Progress 12/1/2026 2,398,355 The City of Fontana developed and implemented the Fontana 311 system to improve communication and streamline services to its Residents and Businesses by bringing all customer interactions to one central location.

The Fontana 311 system will be a one-stop shop for businesses and residents to file complaints, get answers to questions, keep residents informed and overall improve citizen engagement. The Innovation and Technology department led the project to develop this new system and was sponsored by our Communications and Marketing office. Throughout 2022 and 2023, there has been extensive work with almost every city department to ensure all city services are captured within the application.

Residents will be able to call 311, use a website, or our 311 app to make that first request and then see it through to completion. The Fontana 311 system will allow staff to track requests from initiation to completion. Fontana 311 offers di
gital government services and makes interacting with
government a much smoother process for our residents and businesses. The Fontana 311 system went live in February of 2023 and is now entering phase 2 of the project, which will bring an IVR with AI to assist our residents when they call for services. The project is in progress and is expected to be completed by December 2026.

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ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL AS OF March 31, 2026
Project Recommended
Amount
Expended As of
03/31/26
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Project Update
Park Improvements 3,241,828 3,072,736 Public Health & Economic Response Improvements are being recommended at the following 11 parks:
--Veteran's Park-installa+tion of ballfield dugout shade structures (Completed)
- Veteran's West Park -installation of new ballfield backstops Construction (Completed)
- Seville Park (installation of new ADA Inclusive playground structure (Completed)
- Fernandez Park -(Completed)
- Bill Martin Park -Ballfield dugout shade structures and Shade structures for spectator areas(Completed)
- Northgate Park (installation of playground, shade structure and ADA inclusive playground equipment- (Completed)+A13:G13
- North Tamarind Park (installation of new jumbo park gazebo for large groups, a new ADA inclusive playground, shade structures, and rubber safety surfacing- (Completed)
- Lemon Pepper Park (installation of playground shade
structure(Completed)
- Carmela Park (installation of playground shade structure (Completed) -Miller Park-Improvements (Completed)
-Jack Bulik improvements (Completed)
Leveraged Leveraged 3,241,828 Improvements are being recommended at the following 11 parks:
--Veteran's Park-installation of ballfield dugout shade structures (Completed) - Veteran's West Park -installation of new ballfield backstops Construction (Completed) - Seville Park (installation of new ADA Inclusive playground structure (Completed) - Fernandez Park -(Completed)
- Bill Martin Park -Ballfield dugout shade structures and Shade structures for spectator areas(Completed)
- Northgate Park (installation of playground, shade structure and ADA inclusive playground equipment- (Completed)
- North Tamarind Park (installation of new jumbo park gazebo for large groups, a new ADA inclusive playground, shade structures, and rubber safety surfacing- (Completed) - Lemon Pepper Park (installation of playground shade structure(Completed) - Carmela Park (installation of playground shade structure (Completed) -Miller Park-Improvements (Completed)
-Jack Bulik improvements (Completed)
Parking Structure 10,000,000 9,999,606 Revenue Loss The project will construct a new parking stru cture within the parking lot of the Fontana HR Office.

Complete Complete 15,000,000 The proposed project is to be constructed within the existing parking lot of the Cit y’s Human Resources Department Building located at 8491 Sierra Avenue, Fontana, CA 92335, and shall consist of a 4-tier parkin
g structure. Each tier will have a footprint of approximately 130 feet by 230 feet with two vehicular entrances, one along Learner Lane and the other along Wheeler Avenue.

The City anticipates the structure to include 311 vehicular parking spaces and two elevators. The intent of the structure is to serve as both public and employee parking for the civic center campus.

The Design-Build contract was approved by council on June 13, 2023. The construction has been completed and accepted by City Council in September, 2025.

Part-Time Employee Retention 152,936 152,936 Public Health & Economic Response Project in cludes recruitment and retention bonuses for part-time personnel.

Complete Complete 152,936 Project includes recruitment and retention bonuses for part-time personnel with a current allocation of $250,000.

Public Safety Premium Pay 887,901 887,901 Premium Pay Project includes public safety rete ntion bonuses which were previously categorized as Employee Retention/Incentive as Public Health & Economic Response.

Complete Complete 887,901 Project includes public safety retention bonuses. Project is Complete Septic to Sewer 500,000 471,770 Water, Sewer, and Broadband Infrastructure
The project will provide septic to sewer conversion in a disadvantaged communities (DAC) area in the city.

In Progress (Staff
support only)
12/31/2025(staff will
continue to change
until county
completes
construction)
2,000,000 The City will create sewer mainline construction plans on Arrow Ave between Ilex Street and Beech Ave, Cherry Avenue from Arrow Blvd to Foothill Blvd, and Beech Avenue from Arrow Blvd to Foothill Blvd per the City’s Master Plan of Sewer. The Design phase has been completed. The San Bernardino County will lead construction. Staff charges will continue during the construction.

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ATTACHMENT B CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN UPDATE DETAIL AS OF March 31, 2026
Project Recommended
Amount
Expended As of
03/31/26
Federal Use Category Description Est. Project Start
Date
Est. Project End
Date
Est. Project Cost Project Update
Storm Infrastructure Masterplan 375,130 375,130 Water, Sewer, and Broadband Infrastructure
For consultant provided services in order to develop a masterplan document to forecast future infrastructure needs.

Complete Complete 375,130 Contract with David Evans and Associates. for $375,130 was approved on October 10, 2022.

Contract is being funded by ARPA. Due to staff shortage in consultant, the expected date for Council workshop is September 2024.Contract has been completed.

Sewer Infrastructure Masterplan 424,870 424,781 Water, Sewer, and Broadband Infrastructure
Storm Drain and Sewer master plans update. With completed projects and various changes since the last update, the master plans are due for an update.

Complete Complete 424,870 Contract with Albert A. Webb Associates, Inc. for $478,502 was approved on October 3, 2022.

Contract is being funding by ARPA and $53,632 from Fund 702. An addendum for $40,000 is approved by the City Council from Fund 702 to provide more detailed analysis of the Downtown Area with the funds being drawn from the Sewer Capital Projects Fund. Due to additional scope of the pro
ject, the project will be ready for a Council workshop in September 2024. As of 10/20/2025 the Contract is complete. Expenditures are being reconciled for completeness.

Vaccine Bonus 526,986 526,986 Public Health & Economic Response Project includes a citywi de vaccine bonus. Complete Complete 526,986 Project includes a citywide vaccine bonus. Citywide Vaccine B onus, 40 hours per full-time employee with a current allocation of $526,986. Project ended in December 31, 2022.

Ventilation Upgrade for City Facilities 2,322,150 2,322,150 Public Health & Economic Response U pgrades to existing HVAC equipment to provide better protection to employees from Covid-19.

Complete Complete 2,322,150 Project went out to bid and closed August 23, 2022. Bid responses are being evaluat ed by Purchasing and contract will be presented to council for consideration in September 2022.

Installation began January 2023 and was completed July of 2023. There were a total of 990 air purifiers installed along with 200 air monitors in a total of 20 city buildings. Project is complete Total 50,257,114 48,384,804

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City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-1002 Agenda Date: 5/26/2026
Agenda #: I. Category: Consent Calendar
FROM:

Police Department
SUBJECT:

Police Department Monthly Information Update
RECOMMENDATION:

Accept the Police Department monthly information update for March 2026.

COUNCIL GOALS:
· Operate in a businesslike manner by creating a memorable customer experience with every interaction.
· Increase citizen involvement by informing the public about issues, program, and accomplishments.
· Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.

DISCUSSION:

The March 2026 monthly information report has been completed. Once the report is accepted by the City Council it will be featured on the Department website.

FISCAL IMPACT:

There is no fiscal impact.

MOTION:

Approve staff recommendation.

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POLICE DEPARTMENT

MONTHLY REPORT
March 2026
201

NOTEWORTHY EVENTS
• Fontana Police participated in the Ar-Rahman Islamic Center Ramadan event by preparing dinner for over 300 members.
• COPE participated in Burrito and Badges at the Taco Man Restaurant. • Lt. Kraut hosted the Area @ Area Commander Meeting at Almeria Middle School. • Lt. Tracy Dills Graduated from the FBI National Academy. • Fontana Police Department Special Operations recovered over 2100 pounds of methamphetamine and over 1000 fentanyl pills. Special Operations also recovered over 1.5 million dollars of stolen cargo from local businesses.
• Fontana Police participated in the Spring Street Market Night. • ICAC arrested several individuals for sexual exploitation of minors.

KA1
202
Slide 2
KA1 Kevin Anderson, 2/9/2021
203
204

CITYWIDE
• Priority 1 response time- 4:25(Emergency calls like subject not breathing, shots fired, and other immediate risk to life/safety)
• Calls for service- 9,306
• Total arrests- 460
• Hispanic- 299, White- 69 , Black- 69, All other races-23 • Total Group A Offenses- 591
• Crimes Against Persons- 164
• Crimes Against Property- 291
• Crimes Against Society- 136
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CITYWIDE
• Crimes Against Person- 164
• Homicide- 2
• Sex Offenses- 9
• Assault- 137
• Kidnapping- 4
• Other- 12
• Crimes Against Property- 291
• Robbery- 9
• Burglary- 21
• Larceny- 130
• Destruction of Property- 37
• Fraud- 30
• Possession of Stolen Property- 24
• Motor Vehicle Theft- 34
• Other Miscellaneous Property Crimes- 6
• Crimes Against Society- 136
• Drug and Paraphernalia Possession- 120
• Possession of Child Pornography- 9
• Possession of Weapons- 6
• Other Miscellaneous Crimes- 1
206

CRIMES BY BEAT
• Police Department Beat system is NOT
geographically the same as City Council
representation Districts
• Beat 1- All area north of 210 Freeway
• Beat 2- All area south of 210 Freeway and
north of Foothill
• Beat 3- All area south of Foothill and north
of 10 Freeway
• Beat 4- All area south of the 10 Freeway
Area 1
Area 2
Area 3
Area 4
207
BEAT 1

AREA COMMANDER IS LIEUTENANT KYLE SLUSSER
EMAIL- [email protected]
DESK- (909) 350-7716
• Total Group A Offenses- 56
• Crimes Against Persons- 10
• Crimes Against Property- 41
• Crimes Against Society- 5
208
BEAT 2

AREA COMMANDER IS LIEUTENANT MATT KRAUT
EMAIL- [email protected]
DESK- (909) 356-7142
• Total Group A Offenses- 162
• Crimes Against Persons- 56
• Crimes Against Property- 81
• Crimes Against Society- 25
209
BEAT 3

AREA COMMANDER IS LIEUTENANT ADAM CLABAUGH
EMAIL – [email protected]
DESK – (909) 350-7706
• Total Group A Offenses- 284
• Crimes Against Persons- 72
• Crimes Against Property- 110
• Crimes Against Society- 102
210
Beat 4

AREA COMMANDER IS LIEUTENANT KEITH ZAGORIN
EMAIL – [email protected]
DESK – (909) 350-7707
•Total Group A Offenses- 89
•Crimes Against Persons- 26
•Crimes Against Property- 59
•Crimes Against Society- 4
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ADDITIONAL USEFUL INFORMATION
• For more information regarding specific geographical crime data, visit www.crimemapping.com and enter your zip code
• Police Department information line- (909) 350-7740
• Police Department Dispatch non-emergency line- (909) 350-7700 • Anonymous crime reporting (909) 356-TIPS to leave a recorded message
• Report Graffiti on City Property- (909) 350-GONE
• Office of the Chief- (909) 350-7702 or [email protected] 212
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0851 Agenda Date: 5/26/2026
Agenda #: A. Category: Public Hearing
FROM:

Planning Department
SUBJECT:

Master Case No. 26-0011 and Municipal Code Amendment No. 26-0002: Fontana Municipal Code amendments to Chapter 30 to modify standards for outdoor dining and parking standards in the downtown core, make revisions to the No Net Loss program, add definitions to differentiate vehicle parking from storage, clarify timing of entitlement applications, and modify the definition of accessory land uses, pursuant to a categorical exemption from the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Sections 15060(c), 15378, and 15061(B)(3).

RECOMMENDATION:

1. Find that the adoption of the proposed ordinances are categorically exempt from the California Environmental Quality Act (“CEQA”)pursuant to CEQA Guidelines Sections 15060(c), 15378, and 15061(B)(3) (the common-sense exemption), and Sections No. 3.01, 3.22, and10.59 of the 2019 Local Guidelines for Implementing CEQA.

2. Waive full reading and introduce for first reading by title only Ordinance No. 1988 entitled: “An Ordinance Of The City Council Of The City Of Fontana, California, Amending Multiple Sections Of The Fontana Municipal Code, Including Amendments To Article XV Pertaining To Provisions Of The No Net Loss Program Including Sections 30-966 Through 30-969 And Sections 30-971 And 30-972, Pursuant To A Categorical Exemption In Accordance With CEQA Guidelines Sections 15060(C), 15061(B)(3), And Section 15378.And Directing Staff To File A Notice Of Exemption. ”

3. Waive full reading and introduce for first reading by title only Ordinance No. 1989 entitled: “An Ordinance Of The City Council Of The City Of Fontana, California, Amending Multiple Sections Of The Fontana Municipal Code, Including Amendments To Sec. 30-12 Pertaining To The Definition Of Accessory Use, Principal/Primary Use, Vehicle And Truck Storage And Vehicle And Truck Parking; Sec. 30-21 Pertaining To The Expiration Of Entitlement Applications; Sec. 30-360 Pertaining To Outdoor Dining In The Public Right-Of-Way In The Downtown Core; Sec. 30-371.2 Pertaining To Parking Requirements For Retail, Entertainment And Restaurant Uses In The Downtown Core; Sec. 30-390 To Correct Section References, Pursuant To A Categorical Exemption In Accordance With CEQA Guidelines Sections 15060(C), 15061(B)(3), And Section 15378.And Directing Staff To File A Notice Of Exemption. ” COUNCIL GOALS:
· Promote economic development by establishing a quick, consistent development process. · Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.
· Concentrate on Inter-governmental relations by advocating Fontana's position in regional, City of Fontana Printed on 5/18/2026Page 1 of 3
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File #: 26-0851 Agenda Date: 5/26/2026
Agenda #: A. Category: Public Hearing
state, and federal organizations.

DISCUSSION:

BACKGROUND
The City of Fontana’s Zoning and Development Code regulates the development of commercial, industrial and residential projects. Staff conducts ongoing reviews of the Municipal Code to determine where language within the code would benefit from updates, clarification, redefinition, or additions to help streamline and facilitate the development process and commercial business activity.

On April 21, 2026, the Planning Commission considered a request for an amendment to Chapter 30 regarding Municipal Code Amendment No. 26-0002. The Planning Commission voted unanimously to approve a resolution recommending that the City Council approve the proposed ordinance.

PROJECT DESCRIPTION
Municipal Code Amendment No. 26-0002 provides updates to Section 30 (Zoning and Development Code) as described below. A detailed list of the proposed amendments is provided within Exhibit “A” of the Ordinance.

ANALYSIS
The request includes the following modifications:

Outdoor dining in the downtown core - Modification of standards for outdoor dining in the public right-of-way in the downtown core to including minimum pedestrian path width, design standards, and permit requirements.

Parking standards in the downtown core - Modification to eliminate parking requirements for retail, entertainment and restaurant uses in the downtown core that are within 400 of City-owned public parking lots or structures.

Vehicle parking and storage - Addition of definitions for vehicle parking and vehicle storage to differentiate between the uses, which will provide clarity and uniformity in application by staff and applicants.

Application timing - Modification to entitlement processing timelines to clarify that entitlement applications that have not been deemed complete within 180 days will be closed/withdrawn.

Accessory and principal use definition - Modification of the definition of accessory and principal land uses to provide an objective proportion as it relates to floor or site area, which will provide clarity and uniformity in application by staff and applicants. These modifications relate only to Article 15 - No Net Loss Program, and have been placed in a standalone ordinance.

No Net Loss Program adjustments - Modifications to the No Net Loss Program to reduce the maximum number of units allowed to be included in the unit bank and replacing a required agreement with a memorandum to memorialize the use of units from the bank by development projects. Additional modifications include the elimination of the minimum development site size, the inclusion of the Form-Based Code zone in the allowable zoning districts where the banked units may be used and providing proportional reductions of certain development standards to incentive the use of the unit bank. These modifications relate only to Article 15 - No Net Loss Program, and have been City of Fontana Printed on 5/18/2026Page 2 of 3
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File #: 26-0851 Agenda Date: 5/26/2026
Agenda #: A. Category: Public Hearing
placed in a standalone ordinance.

In summary, the proposed amendments will provide for flexibility and streamlining of the City’sZoning and Development Code to facilitate desirable development within the City.

ENVIRONMENTAL REVIEW
The proposed ordinance is categorically exempt from the California Environmental Quality Act (“CEQA”)pursuant to CEQA Guidelines Sections 15060(c), 15378, and 15061(B)(3) (the common- sense exemption), and Sections No. 3.01, 3.22 and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the ordinance is covered by the rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and also by the common sense exemption which provides that, where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

ATTACHMENTS:

Attachment No. 1 - Ordinance for No Net Loss Program Amendment Attachment No. 2 - Ordinance for All Other Amendments
Attachment No. 3 - Planning Commission Packet
Attachment No. 4 - Planning Commission Minutes
Attachment No. 5 - Public Hearing Notice
FISCAL IMPACT:

None.

MOTION:

Approve staff’s recommendation.

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ATTACHMENT NO. 1
ORDINANCE NO. 1988

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AMENDING ARTICLE XV PERTAINING TO PROVISIONS OF THE NO NET LOSS PROGRAM INCLUDING SECTIONS 30 -966
THROUGH 30-969 AND SECTIONS 30-971 AND 30-972, PURSUANT TO

A CATEGORICAL EXEMPTION IN ACCORDANCE WITH CEQA
GUIDELINES SECTIONS 15060(C), 15061(B)(3), AND SECTION 15378 AND DIRECTING STAFF TO FILE A NOTICE OF EXEMPTION.

WHEREAS, pursuant to Government Code section 37100, the legislative body of a city may pass ordinances not in conflict with the Constitution and laws of the State or the United States; and

WHEREAS, Government Code sections 50022.1 to 50022.10 authorize a city to codify and recodify its ordinances; and

WHEREAS, through Municipal Code Amendment (“MC A”) No. 26-0002, the City of Fontana (“City”) desires to restate without substantive revision, amend and recodify certain ordinances codified in the Fontana Municipal Code (“FMC”); and

WHEREAS, the City of Fontana General Plan (“General Plan”) includes policies and actions calling for numerous updates to the FMC; and

WHEREAS, Article XV. No Net Loss Program Sections 30-966 through 30 -969 and Sections 30-971 and 30-972 are amended to modify program provisions related to allowable zoning district, minimum lot size, development standard application, unit bank capacity, and the memorialization of the use of the unit bank; and

WHEREAS, the amendments in MCA No. 26-0002 are consistent and compatible with the General Plan and are in line with goals, policies and objectives of the City, the Housing Element policies and the Zoning and Development Code; and

WHEREAS, the amendments in MCA No. 26-0002 are in conformity with appropriate land use practices and will establish appropriate development standards for the land use designations; and

WHEREAS, the amendments in MCA No. 26-0002 attached hereto as Exhibit “A” and incorporated herein by reference, will not be detrimental to the public health, safety and general welfare, nor will it adversely affect the orderly development of property; and

WHEREAS, on April 21, 2026 , the Fontana Planning Commission (“Planning Commission”) held a public meeting on MCA No. 26-0002 where it received evidence and 216

Ordinance No. 1988
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public testimony on the Code amendments and recommended that the Fontana City Council (“City Council”) determine that the amendments are exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 15378, and 15061(B)(3) (the common-sense exemption), and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA. in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be with certainty that there is no possibility that the activity in question m ay have a significant effect on the environment, the activity is not subject to CEQA; and
WHEREAS, the Planning Commission carefully considered all information pertaining to the municipal code amendments, including the staff report, and all the information, evidence, and testimony presented at its public hearing on April 21, 2026; and
WHEREAS, on May 26, 2026, the City Council held a public hearing on MCA No. 26-0002 where City Council received evidence and public testimony pertaining to the Zoning and Development Code amendments and documentation from the Planning Commission’s public hearing on April 21, 2026; and

WHEREAS, the City Council carefully considered all information pertaining to MCA No. 26-0002 that was presented at its public hearing on May 26, 2026; and

WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

THE CITY COUNCIL OF THE CITY OF FONTANA , CALIFORNIA DOES ORDAIN AS FOLLOWS:

Section 1. Recitals. The above recitals are true, correct and incorporated herein by reference.

Section 2. CEQA. The City Council hereby determines that the code amendments are exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 1 5378, and 15061(B)(3) (the common -sense exemption) and Sections 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA.

Staff is directed to file a Notice of Determination pursuant to the foregoing.

Section 3. Municipal Code Amendment Findings. The City Council hereby makes the following finding for MCA No. 26-0002 in accordance with Section 30-40 “Purpose” of the Fontana Zoning and Development Code:

Finding: A Zoning and Development Code may be amended by changing the development st andards (text) or zoning designation map boundaries of any zone whenever such an amendment is
deemed necessary to protect or promote the public's health, safety or general welfare or when modification is viewed as 217

Ordinance No. 1988
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appropriate in the context of generally ac cepted planning principles, surrounding land uses, and the General Plan.

Finding of Fact: The proposed Municipal Code Amendment will provide modifications to the No Net Loss Program, making it more feasible to utilize units deposited into the unit bank. The modifications will also ensure clarity and provide more assurances in the development process as it pertains to the utilization of the No Net Loss Program units. This will streamline the City’s development requirements and processes while facilitating an increase in housing development. As such, it promotes the General Plan goals of adequate housing to meet the needs of all residents in Fontana.

Section 4. Development Code Amendment Approval. Based on the foregoing, the City Council hereby approves the amendments as set forth in MCA No. 26-0002, which is attached hereto as Exhibit “A” and incorporated herein by reference as fully set forth herein.

The City Council further stipulates that the ordinance adopting the amendments to the Zoning and Development Code, under MCA No. 26 -0002, does not apply to development applications deemed complete by the City of Fontana Planning Department prior to the ordinance’s effective date. The City C ouncil also stipulates that any such completed pre -adoption applications not conforming to these amendments after the ordinance’s effective date, once approved by the appropriate approving body, be granted legal non -conforming status, with all applications deemed complete on or after the ordinance’s adoption being subject to its provisions.

Section 5. Effective Date/Publication. This Ordinance shall take effect thirty (30) days after the date of the adoption and prior to the expiration of fifteen (15) days from the passage thereof, shall be published by the City Clerk at least once in the Fontana Herald News, a local newspaper of the general circulation, published and circulated in the City of Fontana, and henceforth and thereafter the same shall be in full force and effect.

Section 6. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 16860 Valencia Avenue, Fontana, CA 92335. The custodian or records is the City Clerk.

Section 7. Certification. The City Clerk of the City Council shall certify the adoption of this Ordinance.

Section 8. Severability. If any provision of this Ordinance or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance that can be given effect without the invalid provision or application.
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Ordinance No. 1988
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APPROVED AND ADOPTED this 9th day of June 2026.

READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance adopted by the City Council and was introduced at a regular meeting on the 26th day of May 2026, and was finally passed and adopted not less than five days thereafter on the 9th day of June 2026, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

_____________________________________
City Clerk of the City of Fontana

_____________________________________
Mayor of the City of Fontana

ATTEST:

_____________________________________
City Clerk
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“EXHIBIT A”

AMENDMENT TO FONTANA MUNICIPAL CODE CHAPTER 30
(*Additions shown in underline, deletions shown in strikeout)

ARTICLE XV. NO NET LOSS PROGRAM

Sec. 30-965. Purpose and authority.

The City desires to ensure its compliance with Senate Bill 330 (SB330) and establish a no Net Loss Density Bonus Program for certain residential projects. This chapter provides, concurrent with the approval of any change in zone from a residential use to a less intensive or non -residential use, a density bonus will become available to project applicants subsequently seeking to develop property for residential use within the City. In doing so, the proposed Section will ensure that there is no net loss of residential capacity within the City as required by SB330.

On October 9, 2019, the California Legislature adopted SB330 which, among other things, adopted Government Code § 66300, declared a housing crisis in the State of California and imposed certain requi rements designed to streamline the construction of new housing, and prevent the loss of existing housing and land available for future residential use, unless the City concurrently changes the development standards, policies, and conditions applicable to other areas of the affected jurisdiction to ensure no net loss in residential capacity. SB330 became effective on January 1, 2020.

Sec. 30-966. Definitions.

Except as otherwise expressly set forth herein, the following words and terms as used in this chapter shall have the following meanings:

Density Bonus. A density increase of up to those percentages above the otherwise maximum residential density as specified in this chapter.

Density Bonus/Transfer Agreement. A legally binding agreement between a developer of a Housing Development and the City containing such terms and conditions as determined by the City Attorney, which ensures that the requirements of this chapter are satisfied.

Density Bonus Units. Those residential units granted pursuant to the provisions of this chapter, that exceed the maximum residential density for the development site and that are available in the Unit Bank.

Director of Planning. The Director of Planning of the City of Fontana.

Housing Development. Construction projects consisting of five or more residential units or Lots, including single-family and multifamily, that are proposed to be constructed pursuant to this chapter.

legally created under the Subdivision Map Act ; (2) a Lot of land held under separate ownership from adjacent property that constitutes a legal lot under applicable Law.

Maximum Residential Density. The maximum number of residential units permitted by the City's General Plan Land Use Element and Zoning and Development Code, applicable to the subject property at the time an application for the construction of a Housing Development is deemed complete by the City, excluding the additional units permitted by this chapter.

Unit Bank. The number of units available to the No Net Loss Program as a result of a change of zone from a residential use to a less intensive residential use or a non- residential use. The Director of Planning, or his or her designee, shall have the sole authority to administer and maintain the Unit Bank balances, credits and availability as he or she determines, which determination shall be final.

Sec. 30-967. Requirements.

The City shall grant a density bonus through the No Net Loss Program to projects which meet the following criteria:
(1) The project is on a parcel of at least one acre, or the applicant is processing an application concurrently with a parcel merger of two or more Lots or more which will create a Lot of not less than one-acre.
(2)(1) The project takes place in one of the following residential zones in the City:
a. Residential Estate (R-E).
b. Single-Family Residential (R-1).
c. Medium-Density Residential (R-2).
d. High-Density Residential (R-3).
e. Multi-Family Medium-High Residential (R-4).
f. Multi-Family/High Residential (R-5).
g. Residential Planned Community (R-PC).
h. Form-Based Code (FBC).
(3)(2) In determining the number of Density Bonus Units to be granted transferred) pursuant to this section, the maximum allowable residential density for the site shall be calculated as follows:
a. Multiplying the maximum density allowed under the applicable zoning designation and multiplying the result by 1.2 for a 20 percent density bonus. If the result, including the density bonus, contains a fraction of a unit, the number of allowable units shall be determined by rounding down to the nearest whole number if the fraction is below 0.5. Calculations containing fractions of 0.5 or above shall be rounded up. 221

b. Density bonuses in the No Net Loss Program can be combined with other density bonus programs as established in Article II, Division 25 - Density Bonus of the Fontana Municipal Code.

1. In no case shall the number of No Net Loss/Density Bonus Units awarded under the No Net Loss Program exceed the number of units in the Unit Bank.

2. In no case shall the number of No Net Loss/Density Bonus Units available in the Unit Bank exceed 2,200 1,600 units.
(4)(3) A Density Bonus/Transfer Agreement shall be required for any project seeking a density bonus as part of the No Net Loss Density Bonus Program. (5)(4) The Planning Department shall publish the available num ber of units available in the Unit Bank on the Planning Department's page on the City's website. The number of units available is expected to change periodically and, as such, any information contained on the City's website, or any other published source shall be considered draft for informational purposes only. Confirmation of the number of units available shall be made upon submittal of a development application, including the payment of appropriate fees.

Sec. 30-968. Types of bonuses allowed.
(a) Density Bonus. The density bonus allowed by this chapter shall consist of those density increases specified in Section 30-967 above the maximum residential density applicable to the site as of the date of the project land use permit application. (b) Mixed use zoning allows the Housing Development to include nonresidential uses.

Approval of mixed -use activities in conjunction with the No Net Loss program is permissible if authorized elsewhere under the Fontana Municipal Code and subject to those requirements. A density bonus will be granted only for the residential portion of a mixed use development.

Sec. 30-969. Development standards.

All development standards for the base zone and/or overlay district shall be met. Granting of a density bonus does not constitute approval of or grounds for modification or waiver of any development standard or other requirement of the Fontana Municipal Code.

A proportional adjustment (up to 20%) shall be allowed for the following development standards: building setbacks, minimum lot area and dimensions, and lot coverage.

Sec. 30-970. Processing of no net loss program requests.

An Application which proposes to change a land use designation or zoning ordinance to a less intensive use may request concurrent approval by the City Council to transfer the unit reduction to a No Net Loss Density Bonus Bank for the purpose of complying with SB330.

bonus transfer application pursuant to this chapter shall be processed along with the application for development. The process for obtaining preliminary approval of the Density Bonus Transfer Agreement, shall be as follows:
(1) Filing. An applicant proposing a Housing Development pursuant to this chapter shall submit a concurrent application for a Density Bonus Transfer Agreement as part of the submittal of any formal request for approval of a Housing Development. The application, whether a pre-application or a formal application, shall include:
(2) A general description of the proposed project, general plan description, applicable zoning, maximum possible density permitted under the current zoning and general plan description and such other information as is necessary. (3) A calculation of the density bonus allowed pursuant to this division. (4) A statement detailing the number of density bonus units being proposed over and above the number of units normally permitted by the applicable zoning and general plan description.
(5) City review of and action on the applicant's proposal for a density bonus shall occur concurrently with the processing of any other required entitlements, if any.

The fact that another required entitlement might be sub ject to discretionary approval does not subject the application for a density bonus/transfer under this section to discretionary approval; they will merely be processed at the same time.

Sec. 30-971. No net loss program density bonus agreement memorandum. (a) The terms of the draft density bonus/transfer agreement (Agreement) shall be reviewed and revised documented as appropriate in a project memorandum requested by the applicant and issued by the Director of Planning and the City Attorney for final appro val. (b)At a minimum, t The Agreement memorandum shall include the following:(1) Tthe total number of units, both permitted and available through the density bonus/transfer, proposed within the Housing Development.; (2) A schedule for completion and occupancy of the units; and (3) A description of remedies for breach of the Agreement by either party. (b) A project that qualifies for a unit bank density bonus and complies with all other objective development standards inclusive of those standards modified by the No Net Loss program shall have its unit bank request processed ministerially by the City within 30 days of the City’s receipt of written correspondence indicating that the project seeks a unit bank density bonus.

(c) A project that qualifies and uses a unit bank density bonus and complies with all other objective development standards shall be considered consistent with local objective development standards for the purpose of any applicable state law.

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ATTACHMENT NO. 2
ORDINANCE NO. 1989

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, AMENDING MULTIPLE SECTIONS OF THE FONTANA
MUNICIPAL CODE, INCLUDING AMENDMENTS TO SEC. 30 -12

PERTAINING TO THE DEFINITION OF ACCESSORY USE,

PRINCIPAL/PRIMARY USE, VEHICLE AND TRUCK STORAGE AND
VEHICLE AND TRUCK PARKING; SEC. 30 -21 PERTAINING TO THE EXPIRATION OF EN TITLEMENT APPLICATIONS; SEC. 30-360

PERTAINING TO OUTDOOR DINING IN THE PUBLIC RIGHT -OF-WAY IN THE DOWNTOWN CORE; SEC. 30-371.2 PERTAINING TO PARKING

REQUIREMENTS FOR RETAIL, ENTERTAINMENT AND RESTAURANT
USES IN THE DOWNTOWN CORE; SEC. 30 -390 TO CORRECT

SECTION REFERENCES, PURSUANT TO A CATEGORICAL

EXEMPTION IN ACCORDANCE WITH CEQA GUIDELINES SECTIONS
15060(C), 15061(B)(3), AND SECTION 15378 .AND DIRECTING STAFF TO FILE A NOTICE OF EXEMPTION.

WHEREAS, pursuant to Government Code section 37100, the legislative body of a city may pass ordinances not in conflict with the Constitution and laws of the State or the United States; and

WHEREAS, Government Code sections 50022.1 to 50022.10 authorize a city to codify and recodify its ordinances; and

WHEREAS, the City of Fontana General Plan (“General Plan”) includes policies and actions calling for numerous updates to the FMC; and

WHEREAS, Section 30-12. – List of definitions. is amended to modify the definition of primary/principal land use and accessory land use and to add definitions for vehicle and truck storage and vehicle and truck parking; and

WHEREAS, Section 30-21. – Expiration of application . is amended to correct a reference to the Planning Department and Director of Planning and remove the statement that inactivity is required to withdraw entitlement applications that have not been deemed complete within 180 days of submittal; and

WHEREAS, Section 30-360. – Special use regulations. is amended to modify the standards and permit requirements for outdoor dining in the downtown core; and

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WHEREAS, Section 30-371.2. Sierra core. is amended to eliminate the parking requirement for retail, entertainment and restaurant uses in the downtown core located within 400 feet of a City-owned parking lot or structure; and

WHEREAS, Section 30-390. Off-street parking and loading standards. is amended correct a section reference; and

WHEREAS, the amendments in MCA No. 26-0002 are in conformity with appropriate land use practices and will establish appropriate development standards for the land use designations; and

WHEREAS, on April 21, 2026 , the Fontana Planning Commission (“Planning Commission”) held a public meeting on MCA No. 26-0002 where it received evidence and public testimony on the Code amendments and recommended that the Fontana City Council (“City Council”) determine that the amendments are exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 15378, and 15061(B)(3) (the common-sense exemption), and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA. in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and
WHEREAS, the Planning Commission carefully considered all information pertaining to the municipal code amendments, including the staff report, and all the information, evidence, and testimony presented at its public hearing on April 21, 2026; and
WHEREAS, on May 26, 2026, the City Council held a public hearing on MCA No. 26-0002 where City Council received evidence and public testimony pertaining to the Zoning and Development Code amendments and documentation from the Planning Commission’s public hearing on April 21, 2026; and

WHEREAS, the City Council carefully considered all information pertaining to MCA No. 26-0002 that was presented at its public hearing on May 26, 2026; and

WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.
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THE CITY COUNCIL OF THE CITY OF FONTANA , CALIFORNIA DOES ORDAIN AS FOLLOWS:

Section 1. Recitals. The above recitals are true, correct and incorporated herein by reference.

Section 2. CEQA. The City Council hereby determines that the code amendments are exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines Sections 15060(c), 15378, and 15061(B)(3) (the common -sense exemption) and Sections 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA.

Staff is directed to file a Notice of Determination pursuant to the foregoing.

Finding: A Zoning and Development Code may be amended by changing the development standards (text) or zoning designation map boundaries of any zone whenever such an a mendment is
deemed necessary to protect or promote the public's health, safety or general welfare or when modification is viewed as appropriate in the context of generally accepted planning principles, surrounding land uses, and the General Plan.

Finding of Fact: The proposed Municipal Code Amendments will clarify and streamline the City’s development requirements and processes while facilitating housing, commercial development and supporting the business community. As such, they promote the General Plan goals of adequate housing to meet the needs of all residents in Fontana and promoting a diversified economy.

The City Council further stipulates that the ordinance adopting the amendments to the Zoning and Development Code, under MCA No. 26 -0002, does not apply to development applications deemed complete by the City of Fontana Planning Department prior to the ordinance’s effective date. The City Council also stipulates that any such completed pre -adoption applications not conforming to these amendments after the ordinance’s effective date, once approved by the appropriate approving body, be granted legal non -conforming status, with all applications deemed complete on or after the ordinance’s adoption being subject to its provisions.

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Section 5. Effective Date/Publication. This Ordinance shall take effect thirty (30) days after the date of the adoption and prior to the expiration of fifteen (15) days from the passage thereof, shall be published by the City Clerk at least once in the Fontana Herald News, a local newspaper of the general circulation, published and circulated in the City of Fontana, and henceforth and thereafter the same shall be in full force and effect.

Section 7. Certification. The City Clerk of the City Council shall certify the adoption of this Ordinance.

APPROVED AND ADOPTED this 9th day of June 2026.

READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

AYES:

NOES:

ABSENT:

ABSTAIN:

_____________________________________
City Clerk of the City of Fontana

_____________________________________
Mayor of the City of Fontana
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ATTEST:

_____________________________________
City Clerk
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“EXHIBIT A”

AMENDMENT TO FONTANA MUNICIPAL CODE CHAPTER 30
(*Additions shown in underline, deletions shown in strikeout)

Article I. – GENERAL PROVISIONS AND DEFINITIONS

Sec. 30-12. – List of definitions.

Accessory dwelling unit means a residential dwelling unit that provides independent living facilities: including permanent provisions for living, sleeping, eating, cooking, and sanitation, for one or more persons.
(1) An accessory dwelling unit may be located within a legally established primary dwelling or legally established accessory structure. The existing space of a legally established primary dwelling means the space within the building envelope of the dwelling, which includes basements, attics, and garages, accessory structures.
(2) An accessory dwelling unit could also include an efficiency unit, as defined in California Health and Safety Code § 17958.1, and a manufactured home, as defined in California Health and Safety Code § 18007.

Accessory use means a use of land, building, or portion thereof which is subordinate to the principal use of the land or building and located on the same lot with such principal use. Accessory uses occupy a maximum of 35% of the overall floor area or site area (for outdoor land uses), whichever is less.

Acreage, gross means all land within a defined area, including private ownerships and future public rights-of-way, easements, etc.
…
Pre-zoning means the act of designating, in advance of annexation, the district to be applicable to a site upon subsequent annexation of that site to the City of Fontana.

Primary/principal use means a use which acts as the main function of a site as it relates to intensity, square footage, activity and/or traffic generation. Primary/principal uses occupy a minimum of 65% of the overall floor area or site area (for outdoor land uses).

Private club means a building and related facilities owned or operated by a corporation, association, or group of individuals established for the fraternal, s ocial, educational, recreational or cultural enrichment of its members and not primarily for profit, and whose members meet certain prescribed qualifications for membership and pay dues.
…
Parking structure means a structure used for the parking of vehicles where parking is accommodated on two or more levels.

230

Parking, vehicle and truck means leaving a vehicle temporarily at/on an off-street facility designed and designated primarily for the parking of empty commercial vehicles, trailers, trucks and buses. Vehicle and truck parking does not include leaving vehicle overnight.

Parks, public means an open space intended for public recreational use which is operated by the City.

…
Statuary, retail sales. See "nursery."

Storage, vehicle and truck means leaving a vehicle at/on an off -street facility designed and designated primarily for leaving vehicles overnight.

Structure means anything constructed or built. An edifice or building of any kind, or any piece of work artificially built up or composed of p arts joined together in some definite manner.
…

Remainder of section to remain unchanged

Sec. 30-21. - Expiration of application.

If the applicant does not provide the information and materials necessary for a pending application to be deemed complete within 180 days after written notification of incompleteness and there has been no activity on the project, the application shall expire and be deemed withdrawn. The Director of Community Development Planning may grant one 180-day extension provided the request is made in writing prior to the expiration date.

Planning Division Department may refund any unexpended portion of the application fee.

After expiration of the application or extension, if granted, a new application, including fees, plans, exhibits, and other materials will be required to commence processing of any project on the same property. The Director shall provide written no tice to the applicant and shall also notify the applicant of the opportunity for appeal.

231

Sec. 30-360. Special use regulations.
…
(c) Outdoor dining in the public right -of-way. The purpose of the regulations and standards in this section are to allow increased business and pedestrian traffic, encourage appropriate outdoor dining opportunities within public rights -of-way and to ensure that the space used for outdoor dining within the public right -of-way will service a public purpose. This section does not apply to outdoor dining on private property.

(1) Location permitted. Outdoor dining areas within the public right -of-way are permitted on all commercially utilized properties, provided all development standards are met.

(2) Permits required. It shall be unlawful for any business to use the public sidewalk and/or public right -of-way for outdoor dining without first obtaining a valid minor use permit and encroachment permit.

a. Minor outdoor dining. Outdoor dining projecting no more than four feet from the building façade where the restaurant entry is located and meeting all design and operational standards shall obtain an encroachment permit from the City Engineer.

b. Major outdoor dining. Outdoor dining projecting more than four feet from the building façade where the restaurant entry is located and meeting all design and operational standards shall obtain a minor use permit from the Planning Department and an encroachment permit from the City Engineer.

(3) Establishment of an outdoor dining area shall require site plan review and permit issuance. Any person or business wishing to operate an outdoor dining area shall apply for a permit by submitting the following to the City:

a. The site floorplan for the proposed outdoor dining are a shall include the following:

1. Chairs, tables, umbrellas, pl anters, signs and any other fixtures and furnishings to be included in the outdoor dining operation.

2. The applicants primary eating establishment or food court and the proposed circulation to and from the outdoor dining area, as well as pedestrian circulation at the perimeter of the outdoor dining area.

3. The public sidewalk or public right -of-way to be occupied with dimensions of the entire sidewalk or right -of-way and the clearance proposed for pedestrian access.

232

4. Names of and mMain entrances to the businesses immediately adjacent to the applicant's eating establishment.

b. Specifications and photographs of all proposed chairs, tables, umbrellas, signs, railings railing connections to the public sidewalk or right -of-way and the adjacent building, or other furnishing.

(4) Design standards for outdoor dining area.

a. The outdoor dining area shall be designed to facilitate sit -down dining activity through the utilization of chairs and tables. It shall also be compact and shall be clearly delineated to promote a visual relationship between the dining area and the surrounding pedestrian areas.

1. Minor outdoor dining areas shall not project further than four feet from the building façade.

b. Sidewalk clearance. Outdoor dining is permitted only where the sidewalk is wide enough to adequately accommodate both the usually pedestrian traffic in the area and the operation of the proposed activity. A clear, continuous pedestrian path not less than five (5) feet in width shall be required for unimpeded pedestrian circulation outside of the outdoor dining area. The minimum width of said pedestrian path may be increased by the City Engineer in areas requiring public utility access. Pedestrian path means a continuous, obstruction-free sidewalk area between the outside boundary of the dining area and any obstruction including, but not limited to, parking meters, street trees, landscaping, streetlights, bus benches, public art, and curb lines.

c. Restaurant entry clearance. No outdoor dining area shall be l ocated to block access either to or from a building. A minimum unobstructed clearance which extends two feet to either side of both door jambs shall be maintained.

d. Corner locations. Where an outdoor dining area is located on a corner, the outdoor dining area shall not be permitted within three feet of the corner of the building, along both frontages. Where an outdoor dining area is located adjacent to a driveway or an alley, the outdoor dining area shall not be permitted within five feet of the driveway or alley. These requirements may be modified at the discretion of the City Engineer or Director of Planning in locations where the sidewalk adjacent to the proposed outdoor dining area is wider than usual, where the perimeter of the building has an unusu al configuration, or where public safety is at risk.

e. Floor level. The floor of the outdoor dining area shall be at the same level as the sidewalk, and no alterations to the sidewalk or coverings on the sidewalk shall be permitted, unless expressly approved by the City Engineer.

233

f. The permittee shall not expand its outdoor dining area onto the sidewalk frontage of an adjacent business. Music Restricted. Musical instruments or sound reproduction systems are not permitted in outdoor dining areas.

g. Adjacent business restriction. An outdoor dining area may be located directly adjacent to another outdoor dining area. No separation between outdoor dining areas shall apply. No permittee shall expand their outdoor dining area onto the sidewalk frontage of an adjacent business.

h. Parking area restriction. In no case shall an outdoor dining area be located directly to parking, unless separated by a landscape barrier at least four feet deep and three feet high.

i. The design and appearance of all proposed improvements or furniture, including, but not limited to, tables, chairs, benches, umbrellas, and planters, to be placed in the sidewalk dining area shall present a coordinated and concerted theme and shall be comp atible with the appearance and design of the principal building.

j. A perimeter barrier shall be provided for the outdoor dining area. However, no barrier shall be required if the applicant proposes to limit the outdoor dining area to one row of tables and chairs abutting the wall of the establishment and if no alcohol will be served outside.

k. All barriers shall complement the building façade as well as any street furniture and shall be between 24 inches and 36 inches in height.

l. Barriers shall be removable. Barriers need not be removed each evening or night, but shall be capable of being removed, if needed, using recessed sleeves and posts, or by wheels that can be locked into place.

m. Barriers shall be able to withstand inclement weather and 1 00 pounds of horizontal force at the top of the barriers when in their fixed positions.

n. Objects placed on the sidewalk shall not interfere with or obstruct line -of-sight and shall maintain a clear sight triangle.

o. Any umbrellas, heater, or similar feature used in an outdoor dining area shall be safely secured. All heaters shall be in compliance with applicable fire code.

p. Outdoor lighting fixtures shall complement the style of the site. Lighting fixtures shall not create glare to pedestrians on the adjacent right -of-way and shall illuminate only the outdoor dining area. Outdoor lighting may be installed on the façade of the building or in the dining area in front of the façade.

q. Signage advertising alcohol products on umbrellas shall be prohibited. 234

(5) Parking. Space used for outdoor dining in the public right-of-way shall not be added to the gross square footage of the food service establishment when calculating parking requirements.

(6) Standards of operation.

a. The management of the eating establishment shall be responsible for operating the outdoor dining area and shall not delegate or assign the responsibility.

b. Hours of operation for the outdoor dining areas are to coincide with those of the associated indoor restaurant. When the establishment ceases serving food for the day, further seating in the outdoor dining area shall be prohibited and the outdoor dining area shall close when the patrons already seated in it leave.

c. The operator shall not permit t he following outside of the building: food preparation, utensils, glasses, napkins, and condiments on unoccupied tables, busing service stations, or trash and garbage storage. All exterior surfaces within the outdoor dining area shall be easily cleaned and shall be kept clean at all times by the permittee.

d. The permittee shall maintain the outdoor dining area and the adjoining street, curb, gutter, and sidewalk in a neat, clean, and orderly condition at all times.

This shall include all tables, chairs, benches, displays, or other appurtenances placed in the public right-of-way. Provisions shall be made for trash receptacles to service the sidewalk dining area. The operator shall remove the debris to a closed receptacle. No debris shall be swept, washed, or blown into the sidewalk, gutter or street.

e. Awnings and umbrellas shall be kept clean and in good condition at all times.

Umbrellas shall not advertise alcohol products.

g. Fixtures and equipment approved by the City pursuant to an outdoor dining area permit may remain in and on the sidewalk during such time that an outdoor dining permit is in effect.

h. Upon revocation or termination of an outdoor dining permit, al l fixtures and equipment shall immediately be removed from the sidewalk, and the sidewalk returned to its original condition.

235

i. No bar serving alcohol shall be allowed in the outside dining area. Alcohol service.

1. Minor outdoor dining. No alcohol shall be allowed in the out door dining area.

2. Major outdoor dining. Alcohol may be served in the outdoor dining area provided the area is enclosed and meets all other standards of the California Alcohol Beverage Control.

(7) Special closures. The City of Fontana shall have the right and power, acting through the City Manager or his/her designee, to prohibit the operation of an outdoor dining area at any time because of anticipated or actual problems or conflicts in the use of the sidewalk or right-of-way area. Such problems or conflicts may arise from, but are not limited, festivals, parades, marches and similar events, repairs and widening of the streets or sidewalks, or emergencies occurring in the area. To the extent possible, the permittee shall be given prior notice of any time period during which the operation of the outdoor dining area or the outdoor dining area shall be prohibited by the City.
…

Remainder of section to remain unchanged.

Sec. 30-371.2. Sierra core.

The Sierra core is the commercial core of Fontana and functions as the city center.

Uses include a mixture of commercial, retail, entertainment, office, and residential.

Building placement shall be close to the streets and integrated within the pedestrian realm. Architect ural features should provide shade and variation in building design.

…

Parking

Required Spaces
Residential 1.25 per unit
Nonresidential Uses Under 6,000 Square Feet No parking required Nonresidential Uses Over 6,000 Square Feet 50% of the requirements in the Zoning Code (30-
685.A)
Retail, Entertainment and Restaurant Uses Over
6,000 Square Feet Within 400 Feet of City-Owned
Public Parking Lot or Structure
No parking required
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…

All other portions of the section to remain unchanged.

Sec. 30-390. Off-street parking and loading standards.
(a) Off-street parking standards.
(1) Off-street parking requirements shall be set forth in Division 5 4, which outlines the development standards by zoning district.
(2) Off-street parking dimensions shall be as set forth in Table 30 -390.A.—Off- Street Parking Dimensions below. Any type of stall not listed shall refer to Section 30-606 of the Zoning and Development Code.

Table 30-390.A.—Off-Street Parking Dimensions
Type of Stall Minimum Size (feet)
Standard 9 × 18
Garage/Carport 10 × 20
Parallel 8 × 21
Compact 8 × 16
Tandem 9 × 35
30° 9 × 17
45° 9 × 18
60° 9 × 21

The remainder of the section to remain unchanged.

237
City of Fontana
Action Report
Planning Commission
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0850 Agenda Date: 4/21/2026
Agenda #: PH-C Category: Public Hearing
FROM:

Planning Department
TITLE:

RECOMMENDATION:

Based on information on the staff report staff recommends that the Planning Commission adopt Resolution No. PC 2026-___; and,

1. Determine that the Ordinance is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c), 15061(B)(3) (the common-sense exemption), and 15378 and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and,

2. Approve a resolution recommending that the City Council adopt an Ordinance for Municipal Code Amendment (MCA) No. 26-0002 to amend Chapter 30 of the Municipal Code.

APPLICANT:

City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
LOCATION:

Citywide
REQUEST:

Municipal Code Amendment (MCA) No. 26-0002 to amend multiple sections of the Zoning and Development Code, to revise standards for outdoor dining, and parking standards in the downtown core, make adjustments to the No Net Loss program, add definitions to differentiate vehicle parking from storage, clarify timing of entitlement applications, and modify the definition of accessory land uses.

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1 ATTACHMENT NO. 3238
File #: 26-0850 Agenda Date: 4/21/2026
Agenda #: PH-C Category: Public Hearing
PROJECT PLANNER:

Cecily Session-Goins, Associate Planner
BACKGROUND INFORMATION:

The City of Fontana Zoning and Development Code regulates the development of commercial, industrial, and residential projects. Staff conducts ongoing reviews of the municipal code to determine where language within the code would benefit from updates, clarification, and/or redefinition to help streamline zoning and facilitate the development process.

PROJECT DESCRIPTION:

The City initiated Municipal Code Amendment No. 26-0002 to update Chapter 30 (Zoning and Development Code) as summarized below; a detailed list of the proposed amendments is provided within Exhibit “A” of the Planning Commission Resolution provided as Attachment No. 1.

ANALYSIS:

Application timing - Modification to entitlement processing timelines to clarify that entitlement applications that have not been deemed complete within 180 days will be closed/withdrawn.

In summary, the proposed amendments will provide for flexibility and streamlining of the City’sZoning and Development Code to facilitate desirable development within the City.

MOTION:

Approve staff’s recommendation
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File #: 26-0850 Agenda Date: 4/21/2026
Agenda #: PH-C Category: Public Hearing
ATTACHMENTS:

Attachment No. 1 - Planning Commission Resolution/Exhibit A Attachment No. 2 - Notice of Exemption
Attachment No. 3 - Public Hearing Notice
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ATTACHMENT NO. 1
RESOLUTION NO. PC 2026 -____

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF FONTANA,

CALIFORNIA, RECOMMENDING THAT THE FONTANA CITY COUNCIL ADOPT AN

ORDINANCE APPROVING AMENDMENTS TO MULTIPLE SECTIONS OF THE FONTANA MUNICIPAL CODE, INCLUDING AMENDMENTS TO SEC. 30-12

PERTAINING TO THE DEFINITION OF ACCESSORY USE, PRINCIPAL/PRIMARY USE, VEHICLE AND TRUCK STORAGE AND VEHICLE AND TRUCK PARKING; SEC. 30-21 PERTAINING TO THE EXPIRATION OF ENTITLEMENT APPLICATIONS; SEC. 30-360 PERTAINING TO OUTDOOR DINING IN THE PUBLIC RIGHT-OF-WAY IN THE DOWNTOWN CORE ; SEC. 30 -371.2 PERTAINING TO PARKING REQUIREMENTS

FOR RETAIL, ENTERTAINMENT AND RESTAURANT USES IN THE DOWNTOWN CORE; SEC. 30 -390 TO CORRECT SECTION REFERENCES ; ARTICLE XV

PERTAINING TO PROVISIONS OF THE NO NET LOSS PROGRAM M INCLUDING SECTIONS 30 -966 THROUGH 30 -969 AND SECTION S 30-971 AND 30 -972,

PURSUANT TO A CATEGORICAL EXEMPTION IN ACCORDANCE WITH CEQA GUIDELINES SECTIONS 15060(C), 15061(B)(3), AND SECTION 15378.

WHEREAS, pursuant to Government Code section 37100, the legislative body of a city may pass ordinances not in conflict with the Constitution and laws of the State or the United States; and

WHEREAS, Government Code sections 50022.1 to 50022.10 authorize a city to codify and recodify its ordinances; and

WHEREAS, the General Plan includes policies and actions calling for numerous updates to the FMC; and

WHEREAS, Section 30-360. – Special use regulations. is amended to modify the standards and permit requirements for outdoor dining in the downtown core; and

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ATTACHMENT NO. 1
WHEREAS, Section 30-371.2. Sierra core. is amended to eliminate the parking requirement for retail, entertainment and restaurant uses in the downtown core located within 400 feet of a City-owned parking lot or structure; and

WHEREAS, Section 30-390. Off-street parking and loading standards. is amended correct a section reference; and

WHEREAS, the Fontana Planning Commission (“ Planning Commission ”) recommends that the Fontana City Council (“City Council”) determine that the amendments are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c), 15061(B)(3) (the common - sense exemption), and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA. Furthermore, Planning Commissio n recommends that City Council finds that the amendments are nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and

WHEREAS, on April 21, 2026, the Planning Commission carefully considered all information pertaining to the municipal code amendments, including the staff report, and all the information, evidence, and testimony presented at its public hearing on April 21, 2026; and

WHEREAS, the amendments are consistent with the General Plan, and that the updates are in line with goals, policies and objectives of the City; the Housing Element policies and the Zoning and Development Code; and

WHEREAS, the amendments will be in conformity with best land use practices and will establish appropriate development standards for the land use designations; and

WHEREAS, the amendments to the FMC are attached hereto as Exhibit “A” and incorporated herein by this reference; and

WHEREAS, the amendments will not be detrimental to the public health, safety, and general welfare, will not adversely affect the orderly development of property, will better express the City’s policies, and will generally promote good land use planning and regulation; and

WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
5242

Page 3 of 16 ends

ATTACHMENT NO. 1

NOW, THEREFORE, the Planning Commission RESOLVES as follows:

Section 1. Recitals. The above recitals are true, correct and incorporated herein by reference.

Section 2. CEQA. The Planning Commission hereby recommends that the City Council determine that this ordinance is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Guidelines Sections 15060(c), 15061(B)(3) (the common-sense exemption), and 15378 and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA, that this Ordinance is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Section 3. Municipal Code Amendment. The Planning Commission hereby makes the following finding for MCA No. 26-0002 in accordance with Section 30-45(b) “Hearing- Planning Commission” development code amendments of the Fontana Zoning and Development Code:

Finding: The proposal substantially promotes the goals of the City’s general plan.

Section 4. Recommendation of Approval. Based on the foregoing, the Planning Commission hereby recommends that the City Council adopt an ordinance approving MCA No. 26-0002 to amend multiple sections of the FMC as indicated in Exhibit “A” which is attached hereto and incorporated herein by reference.

Section 5. Resolution R egarding Custodian of Record : The documents and materials that constitute the record of proceedings on which this Resolution has been based are located at the Planning Department, 8353 Sierra Avenue, Fontana, CA 92335.

This information is provided in compliance with Public Resources Code section 21081.6.

Section 6. Certification. The Secretary of the Planning Commission shall certify to the adoption of this Resolution.

Section 7. Effective Date. This Resolution shall become effective immediately 6243

Page 4 of 16 ends

ATTACHMENT NO. 1
upon its adoption.

Section 8. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or applications of this Resolution that can be given effect without the invalid provision or application.

APPROVED AND ADOPTED by the Planning Commission of the City of Fontana, California, at a regular meeting held on this 21st day of April 2026.

City of Fontana

___________________________
Joseph Armendarez, Chairperson

ATTEST:

I, Torrie Lozano, Secretary of the Planning Commission of the City of Fontana, California, do hereby certify that the foregoing resolution was duly and regularly adopted by the Planning Commission at a regular meeting thereof, held on the 21st day of April 2026, by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

___________________________
Torrie Lozano, Secretary
7244

Page 5 of 16 ends

ATTACHMENT NO. 1
“EXHIBIT A”

AMENDMENT TO FONTANA MUNICIPAL CODE CHAPTER 30
(*Additions shown in underline, deletions shown in strikeout)

“EXHIBIT A”

AMENDMENT TO FONTANA MUNICIPAL CODE CHAPTER 30
(*Additions shown in underline, deletions shown in strikeout)

Article I. – GENERAL PROVISIONS AND DEFINITIONS

Sec. 30-12. – List of definitions.

Page 6 of 16 ends

ATTACHMENT NO. 1
and whose members meet certain prescribed qualifications for membership and pay dues.
…
Parking structure means a structure used for the parking of vehicles where parking is accommodated on two or more levels.

Parking, vehicle and truck means leaving a vehicle temporarily at/on an off-street facility designed and designated primarily for the parking of empty commercial vehicles, trailers, trucks and buses . Vehicle and truck parking does not include leaving vehicle overnight.

Parks, public means an open space intended for public recreational use which is operated by the City.

…
Statuary, retail sales. See "nursery."

Storage, vehicle and truck means leaving a vehicle at/on an off -street facility designed and designated primarily for leaving vehicles overnight.

Structure means anything constructed or built. An edifice or building of any kind, or any piece of work artificially built up or composed of parts joined together in some definite manner.
…

Remainder of section to remain unchanged

Sec. 30-21. - Expiration of application.

Planning Division Department may refund any unexpended portion of the application fee.

9246

Page 7 of 16 ends

Sec. 30-360. Special use regulations.
…
(c) Outdoor dining in the public right-of-way. The purpose of the regulations and standards in this section are to allow increased business and pedestrian traffic, encourage appropriate outdoor dining opportunities within public rights -of-way and to ensure that the space used for outdoor dining within the public right -of-way will service a public purpose. This section does not apply to outdoor dining on private property.

(1) Location permitted. Outdoor dining areas within the public right -of-way are permitted on all commercially utilized properties, provided all development standards are met.

a. The site floorplan for the p roposed outdoor dining are a shall include the following:

1. Chairs, tables, umbrellas, planters, signs and any other fixtures and furnishings to be included in the outdoor dining operation.

3. The public sidewalk or public right -of-way to be occupied with dimensions of the entire sidewalk or right -of-way and the clearance proposed for pedestrian access.

10247

Page 8 of 16 ends

4. Names of and mMain entrances to the businesses immediately adjacent to the applicant's eating establishment.

(4) Design standards for outdoor dining area.

1. Minor outdoor dining areas shall not project further than four feet from the building façade.

b. Sidewalk clearance. Outdoor dining is permitted only where the sidewalk is wide enough to adequately accommodate both the usually pedestrian traffic in the a rea and the operation of the proposed activity. A clear, continuous pedestrian path not less than five (5) feet in width shall be required for unimpeded pedestrian circulation outside of the outdoor dining area. The minimum width of said pedestrian path may be increased by the City Engineer in areas requiring public utility access. Pedestrian path means a continuous, obstruction-free sidewalk area between the outside boundary of the dining area and any obstruction including, but not limited to, parking mete rs, street trees, landscaping, streetlights, bus benches, public art, and curb lines.

c. Restaurant entry clearance. No outdoor dining area shall be located to block access either to or from a building. A minimum unobstructed clearance which extends two feet to either side of both door jambs shall be maintained.

d. Corner locations. Where an outdoor dining area is located on a corner, the outdoor dining area shall not be permitted within three feet of the corner of the building, along both frontages. Wh ere an outdoor dining area is located adjacent to a driveway or an alley, the outdoor dining area shall not be permitted within five feet of the driveway or alley. These requirements may be modified at the discretion of the City Engineer or Director of Pla nning in locations where the sidewalk adjacent to the proposed outdoor dining area is wider than usual, where the perimeter of the building has an unusual configuration, or where public safety is at risk.

e. Floor level. The floor of the outdoor dining a rea shall be at the same level as the sidewalk, and no alterations to the sidewalk or coverings on the sidewalk shall be permitted, unless expressly approved by the City Engineer.

11248

Page 9 of 16 ends

f. The permittee shall not expand its outdoor dining area onto the sidewal k frontage of an adjacent business. Music Restricted. Musical instruments or sound reproduction systems are not permitted in outdoor dining areas.

h. Parking area restriction. In no case shall an outdoor dining area be located directly to parking, unless separated by a landscape barrier at least four feet deep and three feet high.

i. The design and appearance of all proposed improvements or furniture, including, but not limited to, tables, chairs, benches, umbrellas, and planters, to be placed in the sidewalk dining area shall present a coordinated and concerted theme and shall be compatible with the appearance and design of the principal building.

k. All barriers shall complement the building façade as well as any street furniture and shall be between 24 inches and 36 inches in height.

m. Barriers shall be able to withstand inclem ent weather and 100 pounds of horizontal force at the top of the barriers when in their fixed positions.

n. Objects placed on the sidewalk shall not interfere with or obstruct line -of-sight and shall maintain a clear sight triangle.

o. Any umbrellas, heater, or similar feature used in an outdoor dining area shall be safely secured. All heaters shall be in compliance with applicable fire code.

q. Signage advertising alcohol products on umbrellas shall be prohibited. 12249

Page 10 of 16 ends

(5) Parking. Space used for outdoor dining in the public right-of-way shall not be added to the gross square footage of the food service establishment when calculating parking requirements.

(6) Standards of operation.

a. The management of the eating establishment shall be responsible for operating the outdoor dining area and shall not delegate or assign the responsibility.

d. The permittee shall maintain the outdoor dining area and the adjoining street, curb, gutter, and sidewalk in a neat, clean, and orderly condition at all times.

e. Awnings and umbrellas shall be kept clean and in good condition at all times.

Umbrellas shall not advertise alcohol products.

f. Musical instruments or sound reproduction systems are permitted in outdoor dining areas but shall be maintained at sufficiently low volumes so as not to adversely affect the neighboring businesses, residents, or users of the public right-of-way beyond the outdoor dining area, or in violation of the City of Fontana Noise Ordinance.
g. Fixtures and equipment approved by the City pursuant to an outdoor dining area permit may remain in and on the sidewalk during such time that an outdoor dining permit is in effect.

h. Upon revocation or termination of an outdoor dining permit, all fixtures and equipment shall immediately be removed from the sidewalk, and the sidewalk returned to its original condition.

13250

Page 11 of 16 ends

i. No bar serving alcohol shall be allowed in the outsi de dining area. Alcohol service.

1. Minor outdoor dining. No alcohol shall be allowed in the out door dining area.

2. Major outdoor dining. Alcohol may be served in the outdoor dining area provided the area is enclosed and meets all other standards of the California Alcohol Beverage Control.

(7) Special closures. The City of Fontana shall have the right and power, acting through the City Manager or his/her designee , to prohibit the operation of an outdoor dining area at any time because of anticipated or actual problems or conflicts in the use of the sidewalk or right-of-way area. Such problems or conflicts may arise from, but are not limited, festivals, parades, marches and similar events, repairs and widening of the streets or sidewalks, or emergencies occurring in the area. To the extent possible, the permittee shall be given prior notice of any time period during which the operation of the outdoor dining area or the outdoor dining area shall be prohibited by the City.
…

Remainder of section to remain unchanged.

Sec. 30-371.2. Sierra core.

The Sierra core is the commercial core of Fontana and functions as the city center.

Uses include a mixture of commercial, retail, entertainment, office, and residential.

Building placement shall be close to the streets and integrated within the pedestrian realm. Architectural features should provide shade and variation in building design.

…

Parking

Page 12 of 16 ends

…

All other portions of the section to remain unchanged.

Sec. 30-390. Off-street parking and loading standards.
(a) Off-street parking standards.
(1) Off-street parking requirements shall be set forth in Division 5 4, which outlines the development standards by zoning district.
(2) Off-street parking dimensions shall be as set forth in Table 30 -390.A.—Off- Street Parking Dimensions below. Any type of st all not listed shall refer to Section 30-606 of the Zoning and Development Code.

The remainder of the section to remain unchanged.

ARTICLE XV. NO NET LOSS PROGRAM

Sec. 30-965. Purpose and authority.

The City desires to ensure its compliance with Senate Bill 330 (SB330) and establish a no Net Loss Density Bonus Program for certain residential projects. this chapter provides, concurrent with the approval of any change in zone from a residential use to a less intensive or non -residential use, a density bonus will become available to project applicants subsequently seeking to develop property for residential use within the City. In doing so, the proposed Section will ensure that there is no net loss of residential capacity within the City as required by SB330.
15252

Page 13 of 16 ends

On October 9, 2019, the California Legislature adopted SB330 which, among other things, adopted Government Code § 66300, declared a housing crisis in the State of California and imposed certain requirements designed to streamline the construction of new ho using, and prevent the loss of existing housing and land available for future residential use, unless the City concurrently changes the development standards, policies, and conditions applicable to other areas of the affected jurisdiction to ensure no net loss in residential capacity. SB330 became effective on January 1, 2020.

Sec. 30-966. Definitions.

Except as otherwise expressly set forth herein, the following words and terms as used in this chapter shall have the following meanings:

Density Bonus. A density increase of up to those percentages above the otherwise maximum residential density as specified in this chapter.

Density Bonus/Transfer Agreement. A legally binding agreement between a developer of a Housing Development and the City containing suc h terms and conditions as determined by the City Attorney, which ensures that the requirements of this chapter are satisfied.

Density Bonus Units. Those residential units granted pursuant to the provisions of this chapter, that exceed the maximum resident ial density for the development site and that are available in the Unit Bank.

Director of Planning. The Director of Planning of the City of Fontana.

Housing Development. Construction projects consisting of five or more residential units or Lots, including single-family and multifamily, that are proposed to be constructed pursuant to this chapter.

Lot. (1) a Lot when shown as a delineated Lot of land with a number or other designation on a parcel map or tract map and not to be used for the common benefit of other Lots recorded in the Office of the County Recorder of San Bernardino County and legally created under the Subdivision Map Act ; (2) a Lot of land held under separate ownership from adjacent property that constitutes a legal lot under applicable Law.

Page 14 of 16 ends

Sec. 30-967. Requirements.

1. In no case shall the number of No Net Loss/Density Bonus Units awarded under the No Net Loss Program exceed the number of units in the Unit Bank.

Page 15 of 16 ends

as such, any information contained on the City's website, or any other published source shall be considered draft for informational purposes only. Confirmation of the number of units available shall be made upon submittal of a development application, including the payment of appropriate fees.

Sec. 30-969. Development standards.

All development standards for the base zone and/or overlay district shall be met. Granting of a density bonus does not cons titute approval of or grounds for modification or waiver of any development standard or other requirement of the Fontana Municipal Code.

A proportional adjustment (up to 20%) shall be allowed for the following development standards: building setbacks, minimum lot area and dimensions, and lot coverage.

Sec. 30-970. Processing of no net loss program requests.

An Application which proposes to utilize units available in the No Net Loss Density Bonus Bank shall submit a density bonus transfer applic ation in conjunction with the permit and entitlement application submittal package required for the project. A density bonus transfer application pursuant to this chapter shall be processed along with the application for development. The process for obtaining preliminary approval of the Density Bonus Transfer Agreement, shall be as follows:
(1) Filing. An applicant proposing a Housing Development pursuant to this chapter shall submit a concurrent application for a Density Bonus Transfer Agreement as part o f the submittal of any formal request for approval of a Housing Development. The application, whether a pre-application or a formal application, shall include:
(2) A general description of the proposed project, general plan description, applicable zoning, maximum possible density permitted under the current zoning and general plan description and such other information as is necessary. (3) A calculation of the density bonus allowed pursuant to this division. 18255

Page 16 of 16 ends

(4) A statement detailing the number of densit y bonus units being proposed over and above the number of units normally permitted by the applicable zoning and general plan description.
(5) City review of and action on the applicant's proposal for a density bonus shall occur concurrently with the processing of any other required entitlements, if any.

The fact that another required entitlement might be subject to discretionary approval does not subject the application for a density bonus/transfer under this section to discretionary approval; they will me rely be processed at the same time.

Sec. 30-971. No net loss program density bonus agreement memorandum. (a) The terms of the draft density bonus/transfer agreement (Agreement) shall be reviewed and revised documented as appropriate in a project memorandu m requested by the applicant and issued by the Director of Planning and the City Attorney for final approval . (b)At a minimum, t The Agreement memorandum shall include the following:(1) Tthe total number of units, both permitted and available through the density bonus/transfer, proposed within the Housing Development.; (2) A schedule for completion and occupancy of the units; and (3) A description of remedies for breach of the Agreement by either party. (b) A project that qualifies for a unit bank density bonus and complies with all other objective development standards inclusive of those standards modified by the No Net Loss program shall have its unit bank request processed ministerially by the City within 30 days of the City’s receipt of written correspo ndence indicating that the project seeks a unit bank density bonus.

Sec. 30-972. Implementation.
(a) The provisions of this chapter shall be administered by the Planning Department. (b) Projects requesting density bonus/transfer through this No Net Loss P rogram are subject to processing through the requirements in this chapter. (c) A project that qualifies and uses a unit bank density bonus and complies with all other objective development standards shall be considered consistent with local objective development standards for the purpose of any applicable state law.

19256
Notice of Exemption FORM “A”

ATTACHMENT NO. 2

NOTICE OF EXEMPTION

TO:
☒
Office of Land Use and Climate
Innovation
State Clearinghouse
P. O. Box 3044, Room 113
Sacramento, CA 95812-3044
FROM:
(Public
Agency)
Name: City of Fontana
Address: 8353 Sierra Ave,
Fontana CA 92335
Telephone: 909-350-6568
☒

Clerk of the Board of Supervisors
or
County Clerk (Include County
name)
Address:

1. Project Title: Master Case No. 26-0011, Municipal
Code Amendment No. 26-0002

2. Project Applicant (include address,
telephone number and email address):

City of Fontana, Planning Department,
8353 Sierra Avenue, Fontana, CA 92335,
Cecily Session-Goins, Associate
Planner, (909) 350-6723,
[email protected]

3. Project Location – Identify street
address and cross streets or attach a
map showing project site (preferably a
USGS 15’ or 7 1/2’ topographical map
identified by quadrangle name):

Citywide, City of Fontana, County of San
Bernardino

4. (a) Project Location – City: Fontana (b) Project Location – County: San Bernardino

5. Description of nature, purpose, and
beneficiaries of Project:

The project is Municipal Code
Amendment No. 26-0002 - Fontana
Municipal Code amendments to Chapter
30 to modify standards for outdoor
dining, and parking standards in the
downtown core, make adjustments to the
No Net Loss program, add definitions to
differentiate vehicle parking from
storage, clarify timing of entitlement
applications, and modify the definition of
accessory land uses
20257
Notice of Exemption FORM “A”

6. Name of Public Agency approving
project:

City of Fontana

7. Name of Person or Agency undertaking
the project, including any person
undertaking an activity that receives
financial assistance from the Public
Agency as part of the activity or the
person receiving a lease, permit,
license, certificate, or other entitlement
of use from the Public Agency as part of
the activity:

City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
(909) 350-6718

8. Exempt status: (check one)
(a) ☐ Ministerial project. (Pub. Resources Code § 21080(b)(1); State CEQA Guidelines § 15268)
(b) ☐ Not a project. State CEQA Guidelines 15050(c)(2)-(3) (c) ☐ Declared Emergency (Pub. Resources Code § 21080(b)(3); State CEQA Guidelines § 15269(a))
(d) ☐ Emergency Project. (Pub. Resources Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c))
(e) ☐ Categorical Exemption.

State type and section
number:

(f) ☐ Statutory Exemption.

State Code section number:

(g) ☒ Other. Explanation: This Ordinance is not a project pursuant to Section 15060(c), 15061(B)(3) (the
common-sense exemption) and 15378 of the
State of California Environmental Quality Act
Guidelines, because it does not have
potential for resulting in physical change in
the environment, directly or indirectly. Where
it can be with certainty that there is no
possibility that the activity in question may
have a significant effect on the environment,
the activity is not subject to CEQA.

9. Reason why project was exempt: This project is a citywide amendment to Chapter 30 of the Fontana Municipal
Code to modify standards for outdoor
dining, and parking standards in the
downtown core, make adjustments to the
No Net Loss program, add definitions to
differentiate vehicle parking from
storage, clarify timing of entitlement
applications, and modify the definition of
accessory land uses
21258
Notice of Exemption FORM “A”

10. Lead Agency Contact Person:

Telephone:

Cecily Session-Goins, Associate Planner
909-350-6723

11. If filed by applicant: Attach Certificate of Determination (Form “B”) before filing.

12. Was a public hearing held by the Lead Agency to consider the exemption? Yes ☒ No ☐
If yes, the date of the public hearing was: April 21, 2026

Date:

________________________________
Signature
Name: Rina Leung
Title: Senior Planner

☒ Signed by Lead Agency ☐ Signed by Applicant

Date Received for Filing:
(Clerk Stamp Here)
Authority cited: Sections 21083 and 21110, Public Resources Code.

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. 22259

NOTICE PUBLIC HEARING
In compliance with Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132) and the federal rules and regulations adopted in implementation thereof, the Agenda will be made available in appropriate alternative formats to persons with a disability. Should you need special assistance to participate in this meeting, please contact the City Clerk’s Department by calling (909) 350 -7602. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

A PUBLIC HEARING HAS BEEN SCHEDULED BEFORE THE PLANNING COMMISSION OF THE CITY OF FONTANA FOR THE FOLLOWING:

MASTER CASE (MCN) NO. 26-0011 and MUNICIPAL CODE AMENDMENT (MCA) NO. 26-0002

Amendments to Chapter 30 of the Fontana Municipal Code to modify standards for outdoor dining, and parking standards in the downtown core, make adjustments to the No Net Loss program, add definitions to differentiate vehicle parking from storage, clarify timing of entitlement applications, and modify the definition of accessory land uses.

Environmental
Determination:

The proposed ordinance is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15060(c), 15378, and 15061(B)(3) (the common-sense exemption), and Sections No. 3.01, 3.22 and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the ordinance is covered by the rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and also by the common sense exemption which provides that, where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Citywide

April 21, 2026

Steelworkers Auditorium
8437 Sierra Avenue
Fontana, CA 92335

6:00 pm

Location of Property:

Date of Hearing:

Place of Hearing:

Time of Hearing:

Should you have any questions concerning this project, please contact Cecily Session -Goins, Associate Planner, at (909) 350-6723 or by email at [email protected]

ANY INTERESTED PARTY MAY PROVIDE INFORMATION BY LETTER OR EMAIL WHICH MAY BE OF ASSISTANCE TO THE PLANNING COMMISSION . A COPY OF THE APPLICATION AND

ENVIRONMENTAL DOCUMENTATION IS AVAILABLE FOR INSPECTION AT THE PLANNING DEPARTMENT, CITY HALL. PLEASE CONTACT THE PLANNER LISTED ABOVE.

IF YOU CHALLENGE IN COURT ANY ACTION TAKEN CONCERNING A PUBLIC HEARING ITEM, YOU

MAY BE LIMITED TO RAISING ONLY THOSE ISSUES YOU OR SOMEONE ELSE RAISED AT THE

PUBLIC HEARING DESCRIBED IN THIS NOTICE, OR IN WRITTEN CORRESPONDENCE TO THE CITY AT, OR PRIOR TO, THE PUBLIC HEARING.

Publish: April 10, 2026

AVISO DE AUDIENCIA PUBLICA
23 ATTACHMENT NO. 3260

En cumplimiento con la Seccion No. 202 de la Acta de Americanos con Discapacidades de 1990 (42 USC Sec. 12132) y las reglas y regulaciones federales adoptadas en la implementacion de esta, la agenda de esta audiencia estara disponible en formatos alternativos apropiados para las personas con una discapacidad. Si necesita asistencia especial para participar en esta audiencia, comuníquese con el Departamento de la Secretaria Municipal llamando al (909) 350 -7602. La notificacion debera realizarse 48 horas antes de la audiencia para permitir que la Ciudad haga arreglos razonables para garantizar la accesibilidad a esta audiencia.

SE HA PROGRAMADO UNA AUDIENCIA PUBLICA ANTE LA COMISION DE PLANIFICACION DE LA CIUDAD DE FONTANA PARA LO SIGUIENTE:

MCN No. 26-0011 y MCA No. 26-0002

Enmiendas al Capítulo 30 del Código Municipal de Fontana para modificar los estándares de comedores al aire libre y los estándares de estacionamiento en el núcleo del centro de la ciudad (downtown core), realizar ajustes al programa de No Pérdida Neta (No Net Loss), agregar definiciones para diferenciar el estacionamiento de vehículos del almacenamiento de estos, aclarar los plazos de las solicitudes de concesión de derechos (entitlements) y modificar la definición de usos de suelo accesorios.

Determinacion Ambiental: La ordenanza propuesta está categóricamente exenta de la Ley de Calidad Ambiental de California (“CEQA”) de conformidad con las Secciones 15060(c), 15378 y 15061(B)(3) de las Normas de CEQA (la exención de sentido común), y las Secciones No. 3.01, 3.22 y 10.59 de las Normas Locales de 2019 para la Implementación de CEQA, dado que la ordenanza está cubierta por la regla de que CEQA se aplica únicamente a proyectos que tienen el potencial de causar un efecto significativo en el medio ambiente, y también por la exención de sentido común que establece que, cuando se puede determinar con certeza que no existe posibilidad de que la actividad en cuestión pueda tener un efecto significativo en el medio ambiente, dicha actividad no está sujeta a CEQA.

Ubicacion de la Propiedad: En toda la ciudad

Fecha de Audiencia: 21 de abril de 2026

Lugar de Audiencia: Steelworkers’ Auditorio, 8437 Sierra Avenue, Fontana, CA 92335

Hora de Audiencia: 6:00 p.m.

Si tiene alguna pregunta sobre este proyecto, comuníquese al (909) 350-6728 o por correo electrónico a [email protected].

Cualquier persona o grupo interesado en aportar informacion lo puede hacer mediante a una carta o correo electronico dirigido a La Comision de Planificacion. La solicitud y la documentación Ambiental está disponible para inspección en las Oficinas de Ayuntamiento de la Ciudad de Fontana.

Si usted contradice ante el tribunal cualquier acción tomada con respecto a un tema de la Audiencia Publica, usted puede estar limitado a plantear solamente aquellas cuestiones que usted o alguien más planteo en la Audiencia Publica mencionada en este aviso o por correspondencia escrita a la Ciudad de Fontana antes de la fecha de la Audiencia establecida en este aviso.

24261
Docusign Envelope ID: 4D3F0840- CA74- 4303- B5E0- 53AAC04F895D City of Fontana
Planning Commission
Minutes
Joseph Armendarez, Chair
Ricardo Quintana, Vice Chair
Torrie Lozano, Secretary
Idilio Sanchez, Commissioner
Dylan Keetle, Commissioner
Tuesday, April 21, 2026 6: 00 P. M. Grover W. Taylor Council Chambers CALL TO ORDER/ ROLL CALL:

A. Call to Order/ Roll Call:

A regular meeting of the City of Fontana Planning Commission was held on Tuesday, April 21, 2026. Chair Armendarez called the meeting to order at 6:04 p.m.

Present: Chair Armendarez, Vice Chair Quintana, Secretary Lozano, and Commissioners Sanchez and Keetle

Absent: None
INVOCATION/ PLEDGE OF ALLEGIANCE:

A. Invocation/ Pledge of Allegiance:

Following the Invocation by Chaplain Victor Arias, the Pledge of Allegiance was led by Secretary Lozano.

ATTACHMENT NO. 4
262
Docusign Envelope ID: 4D3F0840- CA74- 4303- B5E0- 53AAC04F895D Planning Commission Minutes April 21, 2026
PUBLIC COMMUNICATIONS:

A. Public Communications:

None.

CONSENT CALENDAR:

A. A Resolution of the Planning Commission of the City of Fontana Determining that the Acquisition of Certain Real Property Located at 15166 Foothill Boulevard, Identified as Assessor Parcel Number 1110- 161- 08- 000, is in Conformance with the City of Fontana 2015- 2035 General Plan; pursuant to a CEQA exemption in accordance with CEQA Guidelines Section 15061( b)( 3).

Planning Commission adopted Resolution No. PC 2026- 011, Determining that the Acquisition of Certain Real Property Located at 15166 Foothill Boulevard, Identified as Assessor Parcel Number 1110- 161- 08- 000, is in Conformance with the City of Fontana 2015- 2035 General Plan and make CEQA findings pursuant to State CEQA Guidelines Section 15061( b)( 3) and direct staff to file a Notice of Exemption.

B. A Resolution of the Planning Commission of the City of Fontana Determining that the Acquisition of Certain Real Property Identified as Assessor Parcel Numbers 1100- 111- 51 and 1100- 091- 71 is in Conformance with the City of Fontana 2015- 2035 General Plan; pursuant to a CEQA exemption in accordance with CEQA Guidelines Section 15061( b)( 3).

Planning Commission adopted Resolution No. PC 2026- 012 Determining that the Acquisition of Certain Real Property Identified as Assessor Parcel Numbers 1100- 111- 51 and 1100- 091- 71 is in Conformance with the City of Fontana 2015- 2035 General Plan and make CEQA findings pursuant to State CEQA Guidelines Section 15061( b)( 3) and direct staff to file a Notice of Exemption.

C. Resolution of the Planning Commission of the City of Fontana Determining that the Vacation, Abandonment and Disposition of portions of Cherry Avenue, located south of Aliso Drive, Assessor Parcel Numbers 0236- 122- 23 and 0236- 122- 22, is in Conformance with the City of Fontana 2015- 2035 General plan, pursuant to a CEQA exemption in accordance with CEQA Guidelines Section 15061( b)( 3).

Planning Commission approved the location, purpose, and extent of the proposed real property vacation, abandonment, and disposition described herein as required under Government Code Section 65402( a) and adopted Resolution No. PC 2026- 013 finding that the proposed vacation, abandonment and disposition is in conformance with the City' s General Plan, determining that the project is exempt under CEQA Guidelines Section 15060( b) ( 3) and directing staff to file a Notice of Exemption.

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D. Approval of Minutes:

Approve the Regular Planning Commission Meeting Minutes of April 7, 2026.

ACTION: A Motion was made by Commissioner Sanchez and seconded by Commissioner Keetle and passed by a vote of 5- 0 to approve the Consent Calendar.

The motion carried by the following vote:

Aye: Chair Armendarez, Vice Chair Quintana, Secretary Lozano, and Commissioners Sanchez and Keetle

Absent: None
Abstain: None
PH - A Master Case No. ( MCN) 21- 0128: Conditional Use Permit ( CUP) No. 21- 0021, Conditional Use Permit ( CUP) No. 21- 0025, and Administrative Site Plan ( ASP) No. 21- 0057 - A conditional use permit request for a proposed truck sales operation and a conditional use permit request for a proposed repair facility operation along with an administrative site plan request for the construction of an approximately 29, 185 square foot building and associated site improvements on an approximately

1. 9- acre, located at 14592 Boyle Avenue, ( APN: 0236- 051- 139 - 219 - 29 and - 30), pursuant to a Categorical Exemption in accordance with CEQA Guidelines Section 15332.

Chair Armendarez opened the Public Hearing.

Alejandro Rico, Associate Planner, presented the staff report.

No written correspondence was received.

Commissioner Sanchez asked whether the truck sales operation would include mechanical repairs. Associate Planner Rico clarified that two Conditional Use Permits are proposed one for truck sales and another for repairs and confirmed that the repair permit is limited to collision work only, excluding mechanical repairs.

The applicant, Jose Carcelan, stated that he read and agreed to the Conditions of Approval, and described his project as a family -run truck sales and repair business that includes both incidental and heavy repairs, primarily servicing large fleet vehicles. He added that he currently operates another business on the west side of Cherry Avenue, and that this location is better suited to their needs.

No one spoke in favor or in opposition.

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The Public Hearing was closed.

RECOMMENDATION:

Based on the information contained in the staff report and subject to the attached Findings and Conditions of Approval, staff recommends that the Planning Commission adopt Resolution No. PC 2026 - 014, and,

1. Determine that the project is categorically exempt from the California Environmental Quality Act (" CEQA") pursuant to CEQA Guidelines Section No. 15332 ( Class No. 32, Infill Development) of, and Section No. 3. 22 Categorical Exemption) of the Local 2019 Guidelines for Implementing the CEQA, and direct staff to file a Notice of Exemption; and,

2. Approve Conditional Use Permit ( CUP) No. 21- 0021, and

3. Approve Conditional Use Permit ( CUP) No. 21- 0025, and

4. Approve Administrative Site Plan ( ASP) No. 21- 0057 ACTION: Motion was made by Commissioner Sanchez and seconded by Vice Chair Quintana and passed by a vote of 5- 0 to approve Public Hearing Item " A"; adopt Resolution No. PC 2026- 014; approve Conditional Use Permits ( CUP) No. 21- 0021 No. 21- 0025 and Administrative Site Plan ( ASP) No. 21- 0057.

The motion carried by the following vote:

AYES: Chair Armendarez, Vice Chair Quintana, Secretary Lozano, and Commissioners Sanchez and Keetle NOES: None; ABSTAIN: None; ABSENT: None PH- B Master Case No. 22- 000011- R3: Tentative Parcel Map No. 20761 ( TPM No. 22- 000033- 112), Minor Use Permit No. 25- 0006, and Design Review No. 22- 00005- 112 - A request for site and architectural approval for a proposed revision to a previously approved commercial center. Revisions include the reconfiguration of the site from five parcels to four parcels and the relocation of the carwash building, vacuums and canopies to the northwest portion of the site, pursuant to a previously approved Mitigated Negative Declaration for the Midland Plaza project in accordance with CEQA Guidelines Sections 15162 through 15164 et seq.

Chair Armendarez opened the Public Hearing.

No written correspondence was received.

Cecily Session- Goins, Associate Planner, presented the staff report and noted several revisions to Conditions of Approval, including clarification in Section 6 that approval of the modified project supersedes prior entitlements, revision to Condition No. Planning Condition 15, Page 23 to require utility rooms and enclosures be constructed with durable,

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compatible materials, and clarification of fire flow requirements ( Condition No. 33, Page 25) as approved by the Fire Department.

Vice Chair Quintana requested clarification on the change to Condition No. 33, page 25; staff explained it reflects a reduction in required fire flow from 2, 000 to 1, 500 and an adjustment to hydrant spacing from 300 to 312 feet, as approved by the Fire Department.

Commissioners Sanchez inquired about lighting and the absence of a night rendering; staff confirmed the site will include comprehensive lighting throughout buildings, parking areas, and canopy, with tower illumination likely from interior lighting.

The applicant, Daniel Goalwin stated that he read and agreed to the Conditions of Approval and explained the project was revised due to market conditions, specifically the lack of a pharmacy tenant, leaving a portion of the site available for potential future development. In response to Commissioner Sanchez input, the applicant confirmed the corner tower will be illuminated from within to enhance visibility. The applicant also indicated an anticipated construction start within the year.

The following individual spoke:

Ingrid ( Speaker did not fill out public comment card).

The Public Hearing was closed.

RECOMMENDATION:

Based on the information in the staff report and subject to the attached Findings and Conditions of Approval, staff recommends that the Planning Commission adopt Resolution No. PC 2026 - 015; and,

1. Find that, pursuant to CEQA Guidelines Sections 15162 through 15164 et sec, the project has been reviewed under the previous Mitigated Negative Declaration for Tentative Parcel Map No. 20761 ( TPM No. 22- 000033), Conditional Use Permit No. 22- 000002, Design Review No 22- 000005 and has adequately identified that there will be no impacts associated with the project that cannot be mitigated, and no previously reviewed impact areas have substantially changed and direct staff to file a Notice of Determination; and,

2. Adopt a resolution approving Tentative Parcel Map No. 20761 ( TPM No. 22- 000033- 1112), Minor Use Permit No. 25- 0006, and Design Review No. 22- 000005- R2.

ACTION: Motion was made by Vice Chair Quintana and seconded by Secretary Lozano and passed by a vote of 5- 0 to approve Public Hearing Item " B"; adopt Resolution No. PC 2026- 015: Approve Tentative Parcel Map No. 20761 ( TPM No. 22-

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000033- R2), Minor Use Permit No. 25- 0006, and Design Review No. 22- 000005- with amended conditions of approval.

The motion carried by the following vote:

AYES: Chair Armendarez, Vice Chair Quintana, Secretary Lozano, and Commissioners Sanchez and Keetle NOES: None; ABSTAIN: None; ABSENT: None PH- C Master Case No. 26- 0011 and Municipal Code Amendment No. 26- 0002:

Fontana Municipal Code amendments to Chapter 30 to modify standards for outdoor dining and parking standards in the downtown core, make revisions to the No Net Loss program, add definitions to differentiate vehicle parking from storage, clarify timing of entitlement applications, and modify the definition of accessory land uses, pursuant to a categorical exemption from the California Environmental Quality Act (" CEQA") in accordance with CEQA Guidelines Sections 15060( c), 15378, and 15061( B)( 3).

Chair Armendarez opened the Public Hearing.

Cecily Session- Goins, Associate Planner, presented the staff report.

No written correspondence was received.

Secretary Lozano asked for clarification on which requirements were being removed, and Secretary Quintana inquired about parking that is not being eliminated but shifted to nearby facilities for customer use.

Associate Planner Session- Goins, emphasized that the changes aim to encourage downtown development by reducing on - site parking constraints and supporting entertainment, restaurant, and retail uses.

Chair Armendarez expressed support for the direction, noting it would enable more infrastructure and expand entertainment opportunities for the community.

No one spoke in favor or in opposition.

The Public Hearing was closed.

RECOMMENDATION:

Based on the information contained in this staff report, staff recommends that the Planning Commission adopt Resolution No. PC 2026- 016; and,

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Implementing CEQA, in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and,

2. Approve a resolution recommending that the City Council adopt an Ordinance for Municipal Code Amendment ( MCA) No. 26- 0002 to amend Chapter 30 of the Municipal Code.

ACTION: Motion was made by Commissioner Keetle and seconded by Commissioner Lozano and passed by a vote of 5-0 to approve Public Hearing Item C" and adopt Resolution No. PC 2026- 016.

The motion carried by the following vote:

AYES: Chair Armendarez, Vice Chair Quintana, Secretary Lozano, and Commissioners Sanchez and Keetle NOES: None; ABSTAIN: None; ABSENT: None PH- D Master Case No. 23- 0100: Development Agreement No. 23- 0085R1 and Development Agreement No. 23- 0085R2 - a request to amend and restate the previously approved Development Agreement ( DA) for the Citrus/ Oleander Industrial Commerce Center Project to allocate the provision of public benefit fees among properties in a manner consistent with Planning Commission Resolution No. 2025- 040.

Chair Armendarez opened the Public Hearing.

No written correspondence was received.

DiTanyon Johnson, Planning Manager, presented the staff report.

Jonathan Shardlow, on behalf of the applicant, stated that he had read and agreed to the Conditions of Approval and explained the project was originally one site bisected by Oleander Avenue but is now split between two developers. North Palisade Partners will develop a 400, 000- square- foot industrial warehouse west of Oleander, while Acacia will develop an 88,000- square- foot industrial warehouse to the east. He stated the project is industrial in nature and will provide infrastructure improvements to the area.

No one spoke in favor or in opposition.

The Public Hearing was closed.

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RECOMMENDATION:

Based on the information contained in this staff report, staff recommends that the Planning Commission adopt Resolution No. PC 2026- 017; and forward a recommendation to the City Council to:

1. Determine that the recommended development agreement modifications are categorically exempt from the California Environmental Quality Act ( CEQA) pursuant to CEQA Guidelines Sections 15060( c), 15061( B)( 3) ( the common- sense exemption), and 15378 and Sections No. 3. 01, 3. 22, and 10. 59 of the 2019 Local Guidelines for Implementing CEQA, in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and,

2. Determine that the development agreement modifications together with the underlying project were adequately analyzed in the previously certified Citrus and Oleander Avenue at Santa Ana Avenue Project Environmental Impact Report ( EIR) ( State Clearinghouse No. 2022110389) and its subsequent Addendum, and pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR is required because there are no substantial changes in the project or its circumstances, and no new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts; and.

3. Adopt an Ordinance approving Amended and Restated Development Agreement No. 23- 0085R1, as to Assessor' s Parcel Number 0255- 021- 17 Acacia DA Amendment); and

4. Adopt an Ordinance approving Amended and Restated Development Agreement No. 23- 0085R2, as to Assessor' s Parcel Numbers 0255- 011- 13, 0255- 011- 149 0255- 011- 189 0255- 011- 19 and 0255- 011- 25 thru 0255- 011- 32 North Palisades DA Amendment).

ACTION: Motion was made by Secretary Lozano and seconded by Commissioner Keetle and passed by a vote of 5-0 to approve Public Hearing Item " D" and adopt Resolution No. PC 2026- 017 and
The motion carried by the following vote
AYES: Chair Armendarez, Vice Chair Quintana, Secretary Lozano, and Commissioners Sanchez and Keetle NOES: None; ABSTAIN: None; ABSENT: None

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DIRECTOR COMMUNICATIONS:

A. Director Communications:

None.

COMMENTS:

A. Public Communication Commission Comments:

Commissioner Sanchez expressed excitement about long- awaited development plans finally moving forward, noting that it is encouraging to see progress in downtown Fontana. He shared enthusiasm about future nightlife and local entertainment options that would provide residents with more activities within the city rather than traveling to neighboring areas. He also conveyed appreciation for working with the city as a planning commissioner and thanked staff for their ongoing efforts, closing with well wishes for a good night and a blessing for the community.

Commissioner Keetle thanked city staff for consistently providing thorough information and making the commission' s work easier, specifically acknowledging Director Nevins and the planning team for their support. He also expressed appreciation to the City Council for the opportunity to serve on the commission.

Secretary Lozano thanked the planning staff for their presentations and expressed excitement about the projects reviewed during the meeting. She also acknowledged the City Council for the opportunity to serve in the role and participate in decision - making on development projects. She ended by wishing everyone a great evening.

Vice Chair Quintana thanked staff for their presentations and reports, noting consistent appreciation for their work. He echoed excitement about ongoing development efforts, particularly the revitalization of downtown Fontana, describing it as a positive step forward for the city. He concluded by expressing gratitude for the opportunity to serve on the commission.

Chair Armendarez apologized for any mispronunciations of staff names and expressed strong appreciation for the planning team' s work in preparing materials and being available to address questions in advance of meetings. He emphasized excitement about downtown development and the city' s direction toward being open for business and supporting economic growth. He also thanked staff for their dedication in making meetings efficient and well - prepared, and for helping ensure clear communication on projects and issues. He concluded by wishing everyone a blessed night and thanking attendees for coming.

ADJOURNMENT:

Chair Armendarez adjourned the meeting at 6: 51 p. m. to the next Regular Planning

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Docusign Envelope ID: 4D3F0840- CA74- 4303- B5E0- 53AAC04F895D Planning Commission Minutes April 21, 2026
Commission Meeting on Tuesday, May 5, 2026, at 6: 00 p. m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California. stl'SMA akow) h
Susana Gallardo
Deputy City Clerk

THE FOREGOING MINUTES WERE APPROVED BY THE PLANNING COMMISSION ON THE 5t" DAY OF MAY 2026.
6stfL amuJA"
Joseph Armendarez
Chair

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ATTACHMENT NO. 5

NOTICE PUBLIC HEARING
Si desea información en Español referente a esta notificación o proyecto, favor de comunicarse al (909) 350-6728.

In compliance with Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132) and the federal rules and regulations adopted in implementation thereof, the Agenda will be made available in appropriate alternative formats to persons with a disability. Should you need special assistance to participate in this meeting, please contact the City Clerk’s Department by calling (909) 350 -7602. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

A PUBLIC HEARING HAS BEEN SCHEDULED BEFORE THE CITY COUNCIL OF THE CITY OF FONTANA FOR THE FOLLOWING:

MASTER CASE (MCN) NO. 26-0011 and MUNICIPAL CODE AMENDMENT (MCA) NO. 26-0002

Environmental
Determination:

The proposed ordinance is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15060(c), 15378, and 15061(B)(3) (the common-sense exemption), and Sections No. 3.01, 3.22 and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the ordinance is covered by the rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and also by the comm on sense exemption which provides that, where it can be determined with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Citywide

May 26, 2026

Steelworkers Auditorium
8437 Sierra Avenue
Fontana, CA 92335

2:00 pm

Location of Property:

Date of Hearing:

Place of Hearing:

Time of Hearing:

Should you have any questions concerning this project, please contact Cecily Session -Goins, Associate Planner, at (909) 350-6723 or by email at [email protected]

ANY INTERESTED PARTY MAY PROVIDE INFORMATION BY LETTER OR EMAIL WHICH MAY BE OF ASSISTANCE TO THE CITY COUNCIL . A COPY OF THE APPLICATION AND ENVIRONMENTAL DOCUMENTATION IS AVAILABLE FOR INSPECTION AT THE PLANNING DEPARTMENT, CITY HALL.

PLEASE CONTACT THE PLANNER LISTED ABOVE.

277

NO. 5

IF YOU CHALLENGE IN COURT ANY ACTION TAKEN CONCERNING A PUBLIC HEARING ITEM, YOU

MAY BE LIMITED TO RAISING ONLY THOSE ISSUES YOU OR SOMEONE ELSE RAISED AT THE

PUBLIC HEARING DESCRIBED IN THIS NOTICE, OR IN WRITTEN CORRESPONDENCE TO THE CITY AT, OR PRIOR TO, THE PUBLIC HEARING.

Publish: May 15, 2026
¼ Page

278
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0927 Agenda Date: 5/26/2026
Agenda #: B. Category: Public Hearing
FROM:

Planning Department
SUBJECT:

Master Case No. 19-000016R1: Development Agreement No. 19-000002R1 - A request to approve the first amendment to the Goodman Logistics Center Fontana III Development Agreement to extend the term of the agreement and add sustainability features, finding that the project was adequately analyzed in the previously certified Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] NO. 2019039071) and the subsequent addendum, determining pursuant to CEQA guidelines Section 15162, no subsequent or supplemental EIR is required and direct staff to file of Notie of Determination.

RECOMMENDATION:

1. Determine that the development agreement amendment together with the underlying project were adequately analyzed in the previously certified Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071), along with a subsequent March 2021 Addendum, and pursuant to CEQA Guidelines Sections 15162 and 15164, no subsequent or supplemental EIR is required because there are no substantial changes in the project or its circumstances, and no new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts; and

2. Waive full reading and introduce for first reading by title only Ordinance No. 1990 entitled: “An Ordinance of the City Council of the City of Fontana, California, Approving Development Agreement No 19-000002R1 for Assessor’s Parcel Numbers: 0255-091-20, -23, -63, -64, and -65.

COUNCIL GOALS:
· Promote economic development by pursuing business attraction, retention, and expansion. · Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.

DISCUSSION:

BACKGROUND
On April 21, 2020, the Planning Commission recommended that the City Council adopt Development Agreement No. 19-000002 under MCN No. 19-000016, for an industrial commerce center development comprised of three buildings with associated improvements. The Agreement provided for a public benefit fee in the amount of six million dollars ($6,000,000).

On June 23, 2020, the City Council adopted Development Agreement No. 19-000002 under MCN No. 19-000016. for an industrial commerce center development project along with a public benefit fee and certified the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State City of Fontana Printed on 5/21/2026Page 1 of 3
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Agenda #: B. Category: Public Hearing
and certified the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse (SCH) No. 2019039071).

On April 20, 2021, the Planning Commission approved MCN No. 21-000002, which included approval of Tentative parcel Map 20354, Conditional Use Permit 21-001 and Administrative Site Plan 21-002 along with an Addendum to the EIR to subdivide the southern portion of the site and establish a tractor trailer parking lot.

On May 5, 2026, the Planning Commission considered an amendment to Development Agreement No. 19-000002 (AGR No. 19-000002R1) for GLC Fontana III, LLC. A public communication was included in the Planning Commission packet (Attachment No. 2) requesting that a commenter’s property be included for a land use redesignation from Residential Planned Community (R-PC) to a Commercial Designation in conjunction with this application; however, the current application is solely for an amendment to the Goodman Development Agreement and does not include any General Plan Amendments or Zone Changes to redesignate property. In addition, at the Planning Commission hearing, an adjacent property owner at 11229 Cypress Avenue provided public testimony expressing concerns about truck traffic along Cypress Avenue. After considering public comments, the Planning Commission unanimously voted to adopt a resolution recommending that the City Council approve the Development Agreement Amendment.

ANALYSIS:

The proposal is a request from GLC Fontana III, LLC. for an amendment to Development Agreement No. 19-000002. This development agreement was originally approved with MCN No. 19-000016 which included the development of an industrial commerce center project consisting of three (3) buildings along with associated improvements for a property generally located between Cypress Avenue and Juniper Avenue, north of Jurupa Avenue, (APNs: 0255-091-20, -23, -63, -64, and -65).

The applicant is requesting that the City Council approval a first amendment to this Agreement to extend the term of the agreement and to add sustainability features.

The initial Development Agreement approved by City Council on June 23, 2020, included a 10-year term that became effective on March 9, 2021. This first amendment to the Development Agreement provides for an extension of ten (10) additional years from the effective date for a total term of twenty (20) years, thus modifying the previous expiration date of March 9, 2021 to the new expiration date of March 9, 2041. The project was approved prior to the adoption of Ordinance No. 1891 that required sustainability standards for industrial Commerce Centers. Thus, this project was not subjected to these requirements in Ordinance No. 1891 when it was approved on June 23, 2020.

The proposed amendment to the Development Agreement includes requirements for adding sustainability features to portions of the project that have not been constructed. Currently one (1) of the three (3) buildings for the project have been constructed and has been in operation since October 2021. The sustainability features to be included for the two (2) remaining buildings include but are not limited to: a requirement for a truck routing plan; larger trees; improved emissions standards for on-site motorized operational vehicles; lower VOC paints/coatings; incorporation of highest available CARB Tier rating for construction equipment; and property owner to provide facility operators with information on incentive programs such as the Carl Moyer Program, voucher incentive program, and United States Environmental Protection Agency's SmartWay Program. A complete detailed list of these features are included in the First Amendment to the Goodman Logistics Center Fontana III Development Agreement (Exhibit A of Attachment No. 1), and the Planning Commission packet is City of Fontana Printed on 5/21/2026Page 2 of 3
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included as Attachment No. 2.

Environmental:

Pursuant to Sections 15162 and 15164 of the California Environmental Quality Act (CEQA) Guidelines and Section 8.06 of the City of Fontana’s2019 Local CEQA Guidelines of the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071) along with a subsequent March 2021 Addendum has been prepared for this proposed project. The aforementioned EIR was adopted by the City Council on June 23, 2020 and the Addendum was approved by Planning Commission on April 20, 2021. These documents anticipated the development of the site for a commerce center development and industrial uses along with a development agreement and they also adequately identified any potential impacts associated with this project. No new additional impacts beyond what was anticipated in the EIR mentioned above were identified.

ATTACHMENTS:

Attachment No. 1 - Ordinance
Attachment No. 2 - Planning Commission Packet
Attachment No. 3 - Draft Planning Commission Minutes
Attachment No. 4 - Public Hearing Notice
FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

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ATTACHMENT NO. 1
ORDINANCE NO. 1990

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, APPROVING THE FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT NO. 19 -000002R1, FOR ASSESSOR’S
PARCEL NUMBERS 0255-091-20, -23, -63, -64, AND -65, FINDING THAT

THE PROJECT WAS ADEQUATELY ANALYZED IN THE PREVIOUSLY

CERTIFIED GOODMAN LO GISTICS CENTER FONTA NA III

ENVIRONMENTAL IMPACT REPORT (EIR) (STATE CLEARINGHOUSE
[SCH] NO. 2019039071 ) A ND THE SUBSEQUENT ADDENDUM ,
DETERMINING PURSUANT TO CEQA GU IDELINES SECTION 151 62

THAT NO SUBSEQUENT OR SUPPLEMENTAL EIR IS REQUIRED, AND

DIRECT STAFF TO FILE A NOTICE OF DETERMINATION

WHEREAS, California Government Code Sections 65864 et seq. (“Development Agreement Statutes”) and Section 30 -322 of the City’s of Fontana’s Zoning and Development Code (“ZDC”) authorizes the City Council of the City of Fontana (“City Council”) to enter into develop ment agreements with those having a legal or equitable interest in real property in order to establish certain development rights in such property to strengthen the public planning process, encourage private participation in comprehensive planning, and red uce the economic risk of development in connection with the development of real property within its jurisdiction; and

WHEREAS, the City of Fontana Planning Commission (“Planning Commission”) has found that development agreements strengthen the public pl anning process, encourage private participation in comprehensive planning reduce s the economic costs of development, allow s for orderly planning of public improvements and services, allocates costs to achieve maximum utilization of public and private resou rces in the development process, and ensures that appropriate measures are taken to enhance and protect the environment; and

WHEREAS, pursuant to Section 30-322 of the ZDC and Section 4 of City Council Resolution No. 85-217, the Planning Commission shall conduct a public hearing on any proposed development agreements in accordance with Government Code Section 65867 and shall adopt a resolution recommending approval or denia l of the proposed development agreement to the City Council, including the reasons for its recommendation and an evaluation of the relationship of the proposed development agreement or amendment to applicable general and specific plans, as well as zoning requirements; and

WHEREAS, on June 23, 2020 the City of Fontana (“City”) approved entitlements for the GLC Fontana III Project (MCN No. 19 -000016), an industrial commerce center consisting of three buildings, through a General Plan Amendment (GPA 19 -000001), Zone Change (ZCA 19-000001), Specific Plan Amendment (SPA 19 -000001), Tentative Parcel Map (TPM 19-000002), Design Review (DRP 19-000005), and the certification of 282

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the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse (SCH) No. 2019039071) (collectively, GLC Fontana III Development); and

WHEREAS, concurrent with the GLC Fontana III Development, the City Council approved Ordinance No. 1840 authoriz ing Development Agreement No. 19 -000002 for the project (“DA”); and

WHEREAS, on April 20, 2021, the Planning Commission approved MCN No. 21 - 000002 which consisted of Tentative Parcel Map No. 20354, Conditional Use Permit No. 21-001 and Administrative Site Plan No. 21-002 with an Addendum to the project’s EIR to subdivide the southern portion of the project site and establish a tractor trailer parking lot; and

WHEREAS, the DA together with the underlying project, was adequately analyzed in the previously certified Goodman Logistics Center Fontana III EIR (SCH No. 2019039071) and the subsequent Addendum . Pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR is required because there are no substantial changes to the project or its circumstances, and n o new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts; and

WHEREAS, the DA gave GLC Fontana III vested rights to develop the GLC Industrial Center Development consistent with the SWIP, and in exchange obliged GLC III, LLC. (the “Applicant”) to provide specified public benefit fees to the City; and

WHEREAS, the City received an application from the Applicant on April 6, 2026, for an Amendment to the DA (“AGR No. 19-000002R1”) to amend the term of the DA and include sustainability features; and

WHEREAS, the terms and conditions of AGR No. 19-000002R1 were reviewed by the Planning Commission at a duly noticed public hearing held on May 5, 2026, at which time the Planning Commission recommended that the City Council approve the amendment; and

WHEREAS, the terms and conditions of AGR No. 19-000002R1 were found to be fair, just and reasonable, and it was further determined that (i) the economic interests of the City's residents, as well as the public health, safety and welfare , will be best served by the amendment; (ii) the amendment is consistent with the General Plan; (iii) the amendment conforms to public convenience, ge neral welfare and sound land use practices; (iv) the amendment will not be detrimental to the public health, safety and general welfare; and (v) the amendment will not adversely affect the orderly development or the preservation of property values for the subject property or any other property; and

WHEREAS, on May 26, 2026, the City Council held a public hearing on AGR No. 19-000002R1 where it received evidence and public testimony and documentation from the Planning Commission’s public hearing on May 5, 2026; and 283

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WHEREAS, the City Council carefully considered all information pertaining to AGR No. 19-000002R1 presented at its public hearing on May 26, 2026; and

WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.

THE CITY COUNCIL OF THE CITY OF FONTANA DOES ORDAIN AS FOLLOWS:

Section 1. Recitals. The above recitals are true, correct and incorporated herein by reference.

Section 2. Compliance with the California Environmental Quality Act. Based on the substantial evidence set forth in the record, including but not limited to, the Goodman Logistics Center Fontana III EIR and the subsequent Addendum thereto, and all related information presented to the City Council , the C ouncil finds pursuant to State CEQ A sections 15162 and 15164 and Section 8.06 of the City of Fontana’s 2019 Local Guidelines for Implementing CEQA that the preparation of a subsequent or supplemental EIR is not required for the proposed Projects because the Project:

A. Will not result in substantial changes that would require major revisions of the Goodman Logistics Center Fontana III EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and

B. Will not result in substantial changes with respect to the circumstances under which the project is developed that would require major revisions of the Goodman Logistics Center Fontana III EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects; and

C. Does not present new information of substantial importance that was not known and could not have known with the exercise of reasonable diligence at the time the Goodman Logistics Center Fontana III Project EIR documents were certified showing any of the following:

(i) The Modified Project would have one or more significant effects not discussed in the EIR;

(ii) That significant effects previously examined would be substantially more severe than shown in the EIR;

(iii) That mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects, but the lead agency declined to adopt such 284

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measures; and

(iv) That mitigation measures or alternatives are considerably different from those analyzed would substantially reduce one or more significant effects on the environment, but w hich the leady agency declined to adopt

Section 3. Public Health, Safety and Welfare. Based on the entire record before it and all written and oral evidence presented, the City Council hereby finds that AGR No. 19-000002R1 promotes the public health, safety and welfare of the community because it will enable enhanced sustainability and environmental improvements at the project site, as well as support economic development within the surrounding communities and the City as a whole.

Section 4. Approval. The City Council hereby approves AGR No. 19-000002R1, in substantially the form attached hereto as Exhibit A and incorporated herein by this reference.

Section 7. Certification. The City Clerk of the City Council shall certify the adoption of this Ordinance.

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APPROVED AND ADOPTED this 9th day of June 2026.

READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

AYES:

NOES:

ABSENT:

ABSTAIN:

_____________________________________
City Clerk of the City of Fontana

_____________________________________
Mayor of the City of Fontana

ATTEST:

_____________________________________
City Clerk
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Exhibit A

287

RECORDING REQUESTED BY:

Order No:

WHEN RECORDED MAIL
DOCUMENT TO:

City of Fontana
8353 Sierra Avenue
Fontana, California 92335
Attn: City Clerk
______________________________________________________________________________ Space Above This Line for Recorder’s Use Only
Exempt From Recording Fees Pursuant
To Govt. Code §§ 27383, 6103

FIRST AMENDMENT TO THE GOODMAN LOGISTICS CENTER

FONTANA III DEVELOPMENT AGREEMENT

This First Amendment to the Goodman Logistics Center Fontana II Development Agreement (“First Amendment”) is made and entered into as of _____ by and between the City of Fontana, a California municipal corporation (“CIT Y”), and GLC FONTANA III LLC , a Delaware limited liability company (“DEVELOPER”).

Recitals

a. CITY, through its City Council, and DEVELOPER entered into that certain Goodman Logistics Center Fontana III Development Agreement (“DA”), dated June 23, 2020.

b. The Effective Date of the DA is March 9, 2021.

c. Unless otherwise set forth herein, the defined terms used in this First Amendment shall be as defined in the DA.

d. The DA allows for the Development of the Property in accordance with its terms and pursuant to the approved Development Plan and provides substantial benefits to CITY that will further important policies and goals of CITY.

e. The DA provides that DEVELOPER and CITY may mutually agree to extend the Term of the DA, provided such extension agreement is in writing.

f. The Parties mutually wish to extend the Term of the DA for an additional ten (10) years and to clarify additional design features that will be incorporated by DEVELOPER into the Project in exchange for the benefits set forth in this First Amendment.

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g. Except for extending the Term of the DA and specifying those design features that DEVELOPER shall incorporate into the Project as set forth in Sections 1 and 2, below, this First Amendment does not otherwise modify any provisions of the DA.

Agreement

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

1. Recitals. The foregoing recitals are true, correct and hereby incorporated into this First Amendment by this reference as though fully set forth herein.

2. Term Extension. The Term of the DA is extended by an additional ten (10) years from the Effective Date, for a total term of twenty (20) years from the Effective Date.

3. Project Design Features. The Project, having been approved prior to the adoption of Ordinance No. 1891 with the DA vesting same, is not subject to the requirements of Ordinance No. 1891. However, DEVELOPER agrees and covenants to incorporate the following design features (collectively, the “Design Features”) into those portions of the Project that have not been constructed as of the date that the City approves this First Amendment:

a. Any new trees installed will be 36-inch box trees and shall be spaced no greater than 40 feet on center.

b. DEVELOPER will install signage indicating a three-minute diesel truck engine idling restriction shall be posted on site along entrances to the site and in the dock areas and shall be strictly enforced by the facility operator.

c. Prior to issuance of certificate of occupancy facility operators shall establish and submit for approval to the Planning Director a truck routing plan to and from the state highway system based on the city's latest truck route map. The plan shall describe the operational characteristics of the use of the facility operator, including, but not limited to, hours of operations, types of items to be stored within the building, and proposed truck routing to and from the facility to designated truck routes that avoids passing sensitive receptors, to the greatest extent possible. The plan shall include measures, such as signage and pavement markings, queuing analysis and enforcement, for preventing truck queuing, circling, stopping, and parking on public streets. Facility operator shall be responsible for enforcement of the plan. A revised plan shall be submitted to by the Planning Director prior to a business license being issued by the city for any new tenant of the property. The Planning Director shall have discretion to determine if changes to the plan are necessary including any additional measures to alleviate truck routing and parking issues that may arise during the life of the facility.
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d. Signs and drive aisle pavement markings shall clearly identify the on-site circulation pattern to minimize unnecessary on-site vehicular travel.

e. Facility operators shall post signs in prominent locations inside and outside of the building indicating that off-site parking for any employee, truck, or other operation related vehicle is strictly prohibited. City may require facility operators to post signs on surface streets indicating that off-site truck parking is prohibited by city ordinance and/or the truck routing plan.

f. Signs shall be installed in public view with contact information for a local designated representative who works for the facility operator and who is designated to receive complaints about excessive dust, fumes, or odors, and truck and parking complaints for the site, as well as contact information for the SCAQMD's on-line complaint system and its complaint call-line: 1-800-288- 7664. Any complaints made to the facility operator's designee shall be answered within 72 hours of receipt.

g. Signs shall be installed at all truck exit driveways directing truck drivers to the truck route as indicated in the truck routing plan and state highway system.

h. On-site motorized operational equipment shall be ZE (zero emission equipment).

i. The office portion of a building's rooftop that is not covered with solar panels or other utilities shall be constructed with light colored roofing material with a solar reflective index ("SRI") of not less than .29. This material shall be the minimum solar reflective rating of the roof material for the life of the building.

j. The Project shall include a minimum 100 kilowatt (kw) solar generation facility.

This facility shall incorporate decorative screening and facility along with screening shall be depicted on plans to be submitted for review and approval from the Planning Director prior to installation.

k. All building roofs shall be solar-ready, which includes designing and constructing buildings in a manner that facilitates and optimizes the future installation of a rooftop solar photovoltaic (PV) system.

l. A minimum of 10% of all passenger vehicle parking will have EV conduit infrastructure for future charging stations. Signage shall be installed indicating EV charging stations and specifying that spaces are reserved for clean air/EV vehicles. Unless superior technology is developed that would replace the EV charging units, facility operator and any successors in interest shall be responsible for maintaining the EV charging stations in working order for the life of the facility.

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m. Bicycle racks are required per section 30-714 of the zoning and development code and in the amount required for warehouse uses by table 30-714 of the zoning and development code. The racks shall include locks as well as electric plugs to charge electric bikes. The racks shall be located as close as possible to employee entrance(s). Nothing in this section shall preclude the warehouse operator from satisfying this requirement by utilizing bicycle parking amenities considered to be superior such as locating bicycle parking facilities indoors or providing bicycle lockers.

n. Cool surface treatments shall be added to all drive aisles and parking areas or such areas shall be constructed with a solar-reflective cool pavement such as concrete.

o. To ensure that warehouse electrical rooms are sufficiently sized to accommodate the potential need for additional electrical panels, either a secondary electrical room shall be provided in the building, or the primary electrical room shall be sized 25 percent larger than is required to satisfy the service requirements of the building or the electrical gear shall be installed with the initial construction with 25 percent excess demand capacity.

p. DEVELOPER will install a conduit and associated infrastructure to charge future electric yard equipment and electric trucks.

q. Use of low VOC architectural and industrial maintenance coatings (e.g., paints) shall be required.

r. The facility operator shall incorporate a recycling program.

s. The following environmentally responsible practices shall be required during construction: (1)The contractor shall use reasonable best efforts to deploy the highest rated CARB Tier technology that is available at the time of construction.

Prior to permit issuance, the construction contractor shall submit an equipment list confirming equipment used is compliant with the highest CARB Tier at the time of construction. Equipment proposed for use that does not meet the highest CARB Tier in effect at the time of construction, shall only be approved for use at the discretion of the planning director and shall require proof from the construction contractor that, despite reasonable best efforts to obtain the highest CARB Tier equipment, such equipment was unavailable.(2)Use of electric-powered hand tools, forklifts, and pressure washers.(3)Designation of an area in any construction site where electric-powered construction vehicles and equipment can charge.(4)Identification in site plans of a location for future electric truck charging stations and installation of a conduit to that location.(5)Diesel-powered generators shall be prohibited except in case of emergency or to establish temporary power during construction.

t. A property maintenance program shall be submitted for review and approval by the Planning Director or his/her designee prior to the issuance of building permits. 291

The program shall provide for the regular maintenance of building structures, landscaping, and paved surfaces in good physical condition, and appearance. The methods and maximum intervals for maintenance of each component shall be specified in the program.

u. Property owner shall provide facility operator with information on incentive programs such as the Carl Moyer Program and voucher incentive program and shall require all facility operators to enroll in the United States Environmental Protection Agency's SmartWay Program.

4. Exhibits. The following documents are attached hereto and, by this reference, are incorporated into and made a part of this Agreement and shall replace the DA exhibits:

Exhibit A — Legal Description of the Property
Exhibit B — Map showing Property and its location
Exhibit E — Existing Development Approvals

5. Recordation of Agreement. This Agreement shall be recorded with the San Bernardino County Recorder within the period required by Section 65868.5 of the Government Code.

[SIGNATURES ON FOLLOWING PAGE]

CITY OF FONTANA,
a California municipal corporation

By: _____________________

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GLC FONTANA III LLC,
a Delaware limited liability company

By: ______________________
Name: ______________________
Title: ______________________
Dated: ______________________

UPDATED EXHIBIT A TO

DEVELOPMENT AGREEMENT BETWEEN

THE CITY OF FONTANA AND GLC FONTANA III, LLC

Legal Description of the Property

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF FONTANA, 293

IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

1. THE NORTH 93.3 FEET OF THE WEST HALF OF LOT 775, ACCORDING TO MAP

SHOWING SUBDIVISION OF LANDS BELONGING TO THE SEMI-TROPIC LAND

AND WATER COMPANY, IN THE CITY OF FONTANA, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 11, PAGE 12 OF MAPS, RECORDS OF SAID COUNTY.

SAVING AND EXCEPTING THEREFROM THAT PORTION THEREIN LYING WITHIN THE EAST 6.17 ACRES OF THE WEST HALF OF SAID LOT.

2. THE NORTH 175 FEET OF THE WEST 300 FEET OF THE SOUTH HALF OF LOT 770, ACCORDING TO PLAT SHOWING SUBDIVISION OF LANDS BELONGING

TO THE SEMI-TROPIC LAND AND WATER COPMNAY, IN THE CITY OF

FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, RECORDED IN BOOK 11 OF MAPS, PAGE 12, RECORDS OF SAID COUNTY.

3. PARCEL 1 OF PARCEL MAP NO. 20084, IN THE CITY OF FONTANA, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 255, PAGES 74 THROUGH 79, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

4. PARCEL 2 OF PARCEL MAP NO. 20084, IN THE CITY OF FONTANA, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 255, PAGES 74 THROUGH 79, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

5. PARCEL 3 OF PARCEL MAP NO. 20084, IN THE CITY OF FONTANA, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 255, PAGES 74 THROUGH 79, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

UPDATED EXHIBIT B TO

DEVELOPMENT AGREEMENT BETWEEN

THE CITY OF FONTANA AND GLC FONTANA III, LLC

Map showing Property and its location

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UPDATED EXHIBIT E TO

DEVELOPMENT AGREEMENT BETWEEN

THE CITY OF FONTANA AND GLC FONTANA III, LLC

Existing Development Approvals

A. General Plan Amendment No. 19-001, approved by City Council Resolution No. 2020-071 on June 23, 2020.
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B. Southwest Industrial Park (SWIP) Specific Plan Amendment No. 19-002 approved by City Ordinance No. 1839 on June 23, 2020.

C. Zone Change No. 19-01, approved by City Council Ordinance No. 1838 on June 23, 2020.

D. Tentative Parcel Map No. 18109 (TPM No. 19-002), approved by the City Council on June 23, 2020.

E. Design Review No. 19-005, approved by the City Council on June 23, 2020.

F. Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (SCH No. 2019039071) certified by City Council Resolution No. 2020-071 on June 23, 2020.

G. Design Review Sign Program No. 19-007, approved by City Council on June 23, 2020.

H. Tentative parcel Map 20354, Conditional Use Permit 21-001 and Administrative Site Plan 21-002, approved by Planning Commission on April 20, 2021

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City of Fontana
Action Report
Planning Commission
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0926 Agenda Date: 5/5/2026
Agenda #: PH-C Category: Public Hearing
FROM:

Planning Department
TITLE:

Master Case No. 19-000016R1: Development Agreement No. 19-000002R1 - A request to approve a first amendment to the Goodman Logistics Center Fontana III Development Agreement to extend the term and add sustainability features.

RECOMMENDATION:

Based on the information in the staff report and subject to the findings, conclusions, and information set forth therein, as well as in the resolution and the information presented in the public hearing, staff recommends that the Planning Commission adopt Resolution No. PC 2026 -____; and forward a recommendation to the City Council to:

1. Find, after review of this First Amendment to the Development Agreement, that Pursuant to Sections 15162 and 15164 of the California Environmental Quality Act (CEQA) Guidelines and Section 8.06 of the City of Fontana’s 2019 Local CEQA Guidelines of the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071), along with a subsequent March 2021 Addendum, no subsequent or supplemental EIR is required because there are no substantial changes in the project or its circumstances, and no new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts; and

2. Adopt an Ordinance approving a First Amendment to the Goodman Logistics Center Fontana III Development Agreement with GLC Fontana III LLC
APPLICANT:

GLC Fontana III, LLC
3333 Michelson Drive
Irvine, CA 92612
LOCATION:

The project site is generally located between Cypress Avenue and Juniper Avenue, north of Jurupa Avenue, (APNs: 0255-091-20, -23, -63, -64, and -65).

REQUEST:

Development Agreement (AGR) No. 19-000002-R1; A request to amend a previously approved Development Agreement for GLC Fontana III, LLC
PROJECT PLANNER:

Rina Leung, Senior Planner
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File #: 26-0926 Agenda Date: 5/5/2026
Agenda #: PH-C Category: Public Hearing
BACKGROUND INFORMATION:

On April 21, 2020, the Planning Commission recommended that the City Council adopt Development Agreement No. 19-000002 under MCN No. 19-000016, for an industrial commerce center development comprised of three buildings and associated improvements, the Agreement to provide a public benefit fee in the amount of six million dollars ($6,000,000).

On June 23, 2020, the City Council adopted Development Agreement No. 19-000002 for an industrial commerce center development project, to provide a public benefit fee in the amount of six million dollars ($6,000,000) and certified the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse (SCH) No. 2019039071).

PROJECT DESCRIPTION:

The item currently before the Planning Commission for consideration is the GLC Fontana III, LLC DA first amendment. The land use approvals and entitlements for the underlying properties have been granted through prior Planning Commission and City Council actions.

ANALYSIS:

Development Agreements are voluntary, negotiated contracts between cities and property developers. They vest development rights by freezing existing land-use regulations, ensuring the project can proceed under rules in place at approval. In exchange for vested rights, property developers often provide public benefits through the payment of fees or the provision of public improvements.

The applicant, GLC Fontana III, LLC. is requesting an amendment to Development Agreement No. 19-000002. This aforementioned development agreement was approved as a part of with MCN No. 19-000016 which included the development of an industrial commerce center project consisting of three (3) buildings along with associated improvements. The applicant is requesting approval for a first amendment to this Agreement which includes a modification to extend the term and to add sustainability features.

The Development Agreement Amendment is in conformity with the public convenience, general welfare, and sound land uses practices, and will not be detrimental to the health, safety and general welfare of the City. The Amendment will not adversely affect the orderly development of property or the preservation of property values and will have a positive fiscal impact on the City. The provisions of the Development Agreement, along with the amendment, are consistent with the objectives, policies, general land uses and programs specified in City’sGeneral Plan, zoning code and municipal ordinances.

The key terms of the Amendment to the Development Agreement are as follows:

Time Extension
The initial Development Agreement approved by City Council on June 23, 2020, included a 10-year City of Fontana Printed on 4/29/2026Page 2 of 4
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File #: 26-0926 Agenda Date: 5/5/2026
Agenda #: PH-C Category: Public Hearing
The initial Development Agreement approved by City Council on June 23, 2020, included a 10-year term that became effective on March 9, 2021. However, this first amendment to the Development Agreement provided for an extension for ten (10) additional years from the effective date for a total term of twenty (20) years from the previous effective date of March 9, 2021, to the new effective date of March 9, 2041.

Additional Sustainability Features
The project was approved prior to the adoption of Ordinance No. 1891 that required sustainability standards for industrial Commerce Centers. Thus, this project was not subjected to these requirements in Ordinance No. 1891 when it was approved on June 23, 2020.

The first amendment to the Development Agreement includes sustainability features to portions of the project that have not been constructed. Currently one (1) of the three (3) buildings for the project have been constructed and has been in operation since October 2021. The sustainability features to be included for the two (2) remaining buildings are summarized as follows: a requirement of a truck routing plan; additional signage; larger trees; improved emissions standards for on-site motorized operational vehicles; light colored and solar ready roofs; EV conduit infrastructure for future charging stations; cool driving surfaces, larger electrical rooms; lower VOC paints/coatings; incorporate highest available CARB Tier rating for construction equipment; implementation of a recycling program and property maintenance program; and property owner shall also provide facility operator with information on incentive programs such as the Carl Moyer Program, voucher incentive program, and United States Environmental Protection Agency's SmartWay Program. A complete detailed list of these features are included in the First Amendment to the Goodmand Logistics Center Fontana III Development Agreement (Exhibit A of Attachment No. 2).

The terms and conditions of the first amendment to the Development Agreement has undergone extensive review by City staff and have been found to be fair, just and reasonable. The project will best serve the interest of the City’scitizens and the public health, safety, and welfare. The Zoning and Development Section 30-322 along with Government Code Section 65864 et. seq requires Planning Commission and City Council to consider this item at a public hearing.

Recommendation
Staff requests that the Planning Commission provide a recommendation to the City Council to approve and authorize the execution of the first amendment to the Development Agreement with the Applicant. Staff is of the opinion that the amendment will further implement the following goals of the City:
· To promote economic development by concentrating on job creation. · To promote economic development by pursuing business retention, expansion and attraction. · To promote economic development by striving to constantly improve the city’s competitiveness Environmental:

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File #: 26-0926 Agenda Date: 5/5/2026
Agenda #: PH-C Category: Public Hearing
Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071) along with a subsequent March 2021 Addendum has been prepared for this proposed project. The aforementioned EIR was adopted by the City Council on June 23, 2020 and Addendum approved by Planning Commission on April 20, 2021, and they anticipated the development of the site for a commerce center development and industrial uses along with a development agreement and they also adequately identified any potential impacts associated with this project. No new additional impacts beyond what was anticipated in the EIR mentioned above were identified.

Public Communications
A public communication received by the Planning Department is attached to the staff report. The communication includes a request to include an adjacent property at 16490 Jurupa Avenue for land use redesignation from Residential Planned Community (R-PC) to a Commercial Designation along with this current application. However, the current request is solely for an amendment to the Goodman Development Agreement and does not include any General Plan Amendments or Zone Changes to redesignate property.

MOTION:

Approve staff’s recommendation.

ATTACHMENTS:

Attachment No. 1 - Vicinity Map
Attachment No. 2 - Planning Commission Resolution
Attachment No. 3 - Notice of Determination
Attachment No. 4 - Public Hearing Notice
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Agr

CITY OF FONTANA PLANNING DEPARTMENT

VICINITY MAP
DATE: May 5, 2026

CASE: Development Agreement
(AGR) No. 19-000002R1

ATTACHMENT NO. 1
5301
ATTACHMENT NO. 2
RESOLUTION NO. PC 2026-_____

RESOLUTION OF THE PLANNING COMMISSION OF THE

CITY OF FONTANA RECOMMENDING THAT THE CITY

COUNCIL ADOPT A N ORDINANCE APPROVING THE

FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
NO. 19-000002R1, AS TO ASSESSOR’S PARCEL
NUMBERS: 0255-091-20, -23, -63, -64, AND -65

WHEREAS, on June 23, 2020 the City of Fontana granted entitlements for the GLC Fontana III Project (MCN No. 19-000016) for a n industrial commerce center project comprised of three buildings through its approvals of a General Plan Amendment ( GPA 19-000001), Zone Change ( ZCA 19-000001), Specific Plan Amendment ( SPA 19 - 000001), Tentative Parcel Map (TPM 19-000002), and Design Reviews (DRP 19-000005) along with certification of Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse (SCH) No. 2019039071) (collectively, GLC Fontana III); and

WHEREAS, concurrent with the GLC Fontana III development (MCN No. 19 - 000016, the City Council of the City of Fontana approved Ordinance No. 1840 which authorized the city to enter into Development Agreement No. 19-000002 (DA) with Goodman Logistics Center Fontana III, LLC. (GLC III, LLC.); and

WHEREAS, on April 20, 2021, the Planning Commission approved MCN No. 21 - 000002 that included approval of Tentative parcel Map 20354, Conditional Use Permit 21-001 and Administrative Site Plan 21 -002 along with an Addendum to the EIR to subdivide the southern portion of the site and establish a tractor trailer parking lot; and

WHEREAS, the Development Agreement gave GLC Fontana III vested rights to develop the GLC Industrial Center Project consistent with the SWIP, and in exchange obliged GLC III, LLC. to provide specified public benefit fees to the city; and

WHEREAS, the development agreement modifications together with the underlying project were adequately analyzed in the previously certified Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071) and its subsequent Addendum, and pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR is required because there are no substantial changes in the project or its circumstances, and no new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts; and

WHEREAS, the owners of property within 660 feet of the Project Site were notified via public hearing notice mailer prior to the Public Hearing; and a notice of the public hearing was published in the Fontana Herald newspaper on April 24, 2026, at City Hall and at the Project Site; and

6302
Resolution PC No. 2026-

2 WHEREAS, the Commission carefully considered all information pertaining to the proposed DA amendments, including the staff report, findings, and all the information, evidence, and testimony presented at its public hearing on May 5, 2026, and,

WHEREAS, all other legal prerequisites to the adoption of this resolution have occurred.

NOW, THEREFORE, the Planning Commission RESOLVES as follows:

Section 1. Recitals. The above recitals are true and correct and are incorporated by reference.

Section 2. Compliance with the California Environmental Quality Act . Based on the substantial evidence set forth in the record, including but not limited to, the Goodman Logistics Center Fontana III EIR and the subsequent Addendum thereto, and all related information presented to the Planning Commission, the Commission recommends that the City Council find pursuant to State CEQA sections 15162 and 15164 and Section 8.06 of the City of Fontana’s 2019 Local Guidelines for Implementing CEQA that the preparation of a subsequent or supplemental EIR is not required for the proposed Projects because the Project:

(i) The Modified Project would have one or more significant effects not discussed in the EIR;

(ii) That significant effects previously examined would be substantially more severe than shown in the EIR;

(iii) That mitigation measures or alternatives previously found not to be 7303
Resolution PC No. 2026-

3 feasible would in fact be feasible and would substantially reduce one or more significant effects, but the lead agency declined to adopt such measures; and

Section 3. Recommendations. Based on the foregoing, the Planning Commission hereby recommends that the City Council adop t an ordinance approving the first amendment to Development Agreement No. 19-000002, as to Assessor’s Parcel Number 0255-091-20, -23, -63, -64, -65, in the form attached hereto as ”Exhibit A,” and,”

Section 4. Resolution Regarding Custodian of Record . The documents and materials that constitute the record of proceedings on which this Resolution has been based are located at the Planning Department, 8353 Sierra Avenue, Fontana, CA 92335.

Section 5. Certification. The Secretary of the Planning Commission shall certify the adoption of this Resolution.

Section 6. Effective Date . This Resolution shall become effective immediately upon its adoption.

Section 7. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application.

PASSED, APPROVED, AND ADOPTED by the Planning Commission of the City of Fontana, California at a regular meeting held on the 5th day of May 2026.

City of Fontana

______________________
Joseph Armendarez, Chairperson

ATTEST:

I, Torrie Lozano, Secretary of the Planning Commission of the City of Fontana, California, do hereby certify that the foregoing resolution was duly and regularly adopted by the Planning Commission at a regular meeting thereof, held on the 5th day of May 2026, by the following vote, to-wit:
8304
Resolution PC No. 2026-

4 AYES:

NOES:

ABSENT:

ABSTAIN:

______________________
Torrie Lozano, Secretary

9305
Resolution PC No. 2026-

5 Exhibit A

10306
Resolution PC No. 2026-

6 RECORDING REQUESTED BY:

Order No:

WHEN RECORDED MAIL
DOCUMENT TO:

FIRST AMENDMENT TO THE GOODMAN LOGISTICS CENTER

FONTANA III DEVELOPMENT AGREEMENT

This First Amendment to the Goodman Logistics Center Fontana II Development Agreement (“First Amendment”) is made and entered into as of _____ by and between the City of Fontana, a California municipal corporation (“CITY”), and GLC FONTANA III LLC, a Delaware limited liability company (“DEVELOPER”).

Recitals

a. CITY, through its City Council, and DEVELOPER entered into that certain Goodman Logistics Center Fontana III Development Agreement (“DA”), dated June 23, 2020.

b. The Effective Date of the DA is March 9, 2021.

c. Unless otherwise set forth herein, the defined terms used in this First Amendment shall be as defined in the DA.

e. The DA provides that DEVELOPER and CITY may mutually agree to extend the Term of the DA, provided such extension agreement is in writing.

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Resolution PC No. 2026-

7 g. Except for extending the Term of the DA and specifying those design features that DEVELOPER shall incorporate into the Project as set forth in Sections 1 and 2, below, this First Amendment does not otherwise modify any provisions of the DA.

Agreement

1. Recitals. The foregoing recitals are true, correct and hereby incorporated into this First Amendment by this reference as though fully set forth herein.

2. Term Extension. The Term of the DA is extended by an additional ten (10) years from the Effective Date, for a total term of twenty (20) years from the Effective Date.

a. Any new trees installed will be 36-inch box trees and shall be spaced no greater than 40 feet on center.

8 to alleviate truck routing and parking issues that may arise during the life of the facility.

d. Signs and drive aisle pavement markings shall clearly identify the on-site circulation pattern to minimize unnecessary on-site vehicular travel.

g. Signs shall be installed at all truck exit driveways directing truck drivers to the truck route as indicated in the truck routing plan and state highway system.

h. On-site motorized operational equipment shall be ZE (zero emission equipment).

j. The Project shall include a minimum 100 kilowatt (kw) solar generation facility.

9 for maintaining the EV charging stations in working order for the life of the facility.

n. Cool surface treatments shall be added to all drive aisles and parking areas or such areas shall be constructed with a solar-reflective cool pavement such as concrete.

p. DEVELOPER will install a conduit and associated infrastructure to charge future electric yard equipment and electric trucks.

q. Use of low VOC architectural and industrial maintenance coatings (e.g., paints) shall be required.

r. The facility operator shall incorporate a recycling program.

10 generators shall be prohibited except in case of emergency or to establish temporary power during construction.

t. A property maintenance program shall be submitted for review and approval by the Planning Director or his/her designee prior to the issuance of building permits.

4. Exhibits. The following documents are attached hereto and, by this reference, are incorporated into and made a part of this Agreement and shall replace the DA exhibits:

Exhibit A — Legal Description of the Property
Exhibit B — Map showing Property and its location
Exhibit E — Existing Development Approvals

5. Recordation of Agreement. This Agreement shall be recorded with the San Bernardino County Recorder within the period required by Section 65868.5 of the Government Code.

[SIGNATURES ON FOLLOWING PAGE]

15311
Resolution PC No. 2026-

11 CITY OF FONTANA,
a California municipal corporation

By: _____________________

GLC FONTANA III LLC,
a Delaware limited liability company

By: ______________________
Name: ______________________
Title: ______________________
Dated: ______________________

16312
Resolution PC No. 2026-

12 UPDATED EXHIBIT A TO

DEVELOPMENT AGREEMENT BETWEEN

THE CITY OF FONTANA AND GLC FONTANA III, LLC

Legal Description of the Property

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF FONTANA,

IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

1. THE NORTH 93.3 FEET OF THE WEST HALF OF LOT 775, ACCORDING TO MAP

SHOWING SUBDIVISION OF LANDS BELONGING TO THE SEMI-TROPIC LAND

AND WATER COMPANY, IN THE CITY OF FONTANA, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 11, PAGE 12 OF MAPS, RECORDS OF SAID COUNTY.

SAVING AND EXCEPTING THEREFROM THAT PORTION THEREIN LYING WITHIN THE EAST 6.17 ACRES OF THE WEST HALF OF SAID LOT.

2. THE NORTH 175 FEET OF THE WEST 300 FEET OF THE SOUTH HALF OF LOT 770, ACCORDING TO PLAT SHOWING SUBDIVISION OF LANDS BELONGING

TO THE SEMI-TROPIC LAND AND WATER COPMNAY, IN THE CITY OF

FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, RECORDED IN BOOK 11 OF MAPS, PAGE 12, RECORDS OF SAID COUNTY.

3. PARCEL 1 OF PARCEL MAP NO. 20084, IN THE CITY OF FONTANA, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 255, PAGES 74 THROUGH 79, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

4. PARCEL 2 OF PARCEL MAP NO. 20084, IN THE CITY OF FONTANA, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 255, PAGES 74 THROUGH 79, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

5. PARCEL 3 OF PARCEL MAP NO. 20084, IN THE CITY OF FONTANA, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 255, PAGES 74 THROUGH 79, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

17313
Resolution PC No. 2026-

13 UPDATED EXHIBIT B TO

DEVELOPMENT AGREEMENT BETWEEN

THE CITY OF FONTANA AND GLC FONTANA III, LLC

Map showing Property and its location

18314
Resolution PC No. 2026-

14 UPDATED EXHIBIT E TO

DEVELOPMENT AGREEMENT BETWEEN

THE CITY OF FONTANA AND GLC FONTANA III, LLC

Existing Development Approvals

A. General Plan Amendment No. 19-001, approved by City Council Resolution No. 2020-071 on June 23, 2020.

B. Southwest Industrial Park (SWIP) Specific Plan Amendment No. 19-002 approved by City Ordinance No. 1839 on June 23, 2020.

C. Zone Change No. 19-01, approved by City Council Ordinance No. 1838 on June 23, 2020.

D. Tentative Parcel Map No. 18109 (TPM No. 19-002), approved by the City Council on June 23, 2020.

E. Design Review No. 19-005, approved by the City Council on June 23, 2020.

F. Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (SCH No. 2019039071) certified by City Council Resolution No. 2020-071 on June 23, 2020.

G. Design Review Sign Program No. 19-007, approved by City Council on June 23, 2020.

H. Tentative parcel Map 20354, Conditional Use Permit 21-001 and Administrative Site Plan 21-002, approved by Planning Commission on April 20, 2021

19315
Notice of Determination 1
Attachment No. 3
FORM “F”

NOTICE OF DETERMINATION

TO:
☒:

Office of Land Use and Climate Innovation
State Clearinghouse
P. O. Box 3044, Room 113
Sacramento, CA 95812-3044
FROM: Public Agency/Lead Agency Name:

City of Fontana
Address:
8353 Sierra Ave, Fontana CA 92335

Contact: Rina Leung,
Senior Planner
Phone: (909) 350-6566
Email: [email protected]
TO: San Bernardino - County Clerk (Include County
name)
Lead Agency (if different from above)
☒ Address: 222 W Hospitality Lane 1st Floor, San

Bernardino, CA 92415 Address:

Contact:

Phone:

SUBJECT: Filing of Notice of Determination in compliance with Section 21108 or 21152 of the Public Resources Code.

State Clearinghouse Number
(If submitted to SCH):
2019039071
Project Title: Master Case No. 19-000016R1: Development Agreement No. 19-000002R1 Project Applicant (include address, telephone number and email address):

Jeff Hamilton, Vice President, Development, Goodman
Address: 3333 Michelson Drive Suite 1050, Irvine California 92612 email: [email protected]
Phone: 1 949 407 0167
20316
Notice of Determination 2
Attachment No. 3
FORM “F”

Specific Project Location – Identify street address and cross street or attach a map showing project site (preferably a USGS 15’ or 7 ½’ topographical map identified by quadrangle name):

Located between Cypress Avenue and Juniper Avenue, north of Jurupa Avenue (APN:s 0255-091-20, -23, -63, -64, and -65)
General Project Location (City and/or County): City of Fontana, County: San Bernardino

Project Description: A request for a first amendment to a previously approved Development Agreement with GLC Fontana III, LLC.

Identify the person or entity undertaking the project, including any private applicant, any other person undertaking an activity that receives financial assistance from the Public Agency as part of the project, and any person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the project.

Jeff Hamilton, Vice President, Development, Goodman
Address: 3333 Michelson Drive Suite 1050, Irvine California 92612 email: [email protected]
Phone: 1 949 407 0167

This is to advise that the (☒ Lead Agency or ☐ Responsible Agency) has approved the above described project on May 5, 2026 and has made the following determinations regarding the above described project:

The project [ ☐ will ☒ will not] have a significant effect on the environment.

X An Environmental Impact Report was previously prepared and certified on June 23, 2020 [Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071)] by the City for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency. ☐ A Negative Declaration was prepared for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency.

A Mitigated Negative Declaration was prepared for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency.
☐ Mitigation measures X were ☐ were not ]made a condition of the approval of the project. ☐ A Mitigation Monitoring or Reporting Plan [X was ☐ was not] adopted for this project. ☐ A Statement of Overriding Considerations [X was was not] adopted for this project. ☐ Findings [X were ☐ were not] made pursuant to the provisions of CEQA.

Custodian:

City of Fontana, Planning Department
Location:
8353 Sierra Ave, Fontana CA 92335
21317
Notice of Determination 3
Attachment No. 3
FORM “F”

Date:

DiTanyon Johnson
Planning Manager

Authority cited: Sections 21083, Public Resources Code
Clerk’s File Stamp:
22318
Attachment No. 4

NOTICE PUBLIC HEARING
Si desea información en Español referente a esta notificación o proyecto, favor de comunicarse al (909) 350-6728.

A PUBLIC HEARING HAS BEEN SCHEDULED BEFORE THE PLANNING COMMISSION OF THE CITY OF FONTANA FOR THE FOLLOWING:

MASTER CASE (MCN) NO. 19-000016R1/DEVELOPMENT AGREEMENT (AGR) NO. 19-000005R1

A request for the First Amendment to Goodman Logistics Center Fontana III Development Agreement AGR 19-005, applicable to the Goodman III property.

Environmental
Determination:

Pursuant to Sections 15162 and 15164 of the California Environmental Quality Act (CEQA) Guidelines and Section 8.06 of the City of Fontana’s 2019 Local CEQA Guidelines of the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071) along with a subsequent March 2021 Addendum has been prepared for this proposed p roject. The aforementioned EIR was adopted by the City Council on June 23, 2020 and Addendum approved by Planning Commission on April 20, 2021, and they anticipated the development of the site for a commerce center development and industrial uses along with a development agreement and they also adequately identified any potential impacts associated with this project. No new additional impacts beyond what was anticipated in the EIR mentioned above were identified.

The project site is generally located between
Cypress Avenue and Juniper Avenue north of
Jurupa Avenue (APNs: 0255-091-20, -23, -63, -
64 and -65)

May 5, 2026

Steelworkers Auditorium
8437 Sierra Avenue
Fontana, CA 92335

6:00 pm

Location of Property:

Date of Hearing:

Place of Hearing:

Time of Hearing:

Should you have any questions concerning this project, please contact Rina Leung, Senior Planner, at (909) 350-6566 or by email at [email protected]

23319
Attachment No. 4

ANY INTERESTED PARTY MAY PROVIDE INFORMATION BY LETTER OR EMAIL WHICH MAY BE OF ASSISTANCE TO THE PLANNING COMMISSION . A COPY OF THE APPLICATION AND

ENVIRONMENTAL DOCUMENTATION IS AVAILABLE FOR INSPECTION AT THE PLANNING DEPARTMENT, CITY HALL. PLEASE CONTACT THE PLANNER LISTED ABOVE.

IF YOU CHALLENGE IN COURT ANY ACTION TAKEN CONCERNING A PUBLIC HEARING ITEM, YOU

MAY BE LIMITED TO RAISING ONLY THOSE ISSUES YOU OR SOMEONE ELSE RAISED AT THE

PUBLIC HEARING DESCRIBED IN THIS NOTICE, OR IN WRITTEN CORRESPONDEN CE TO THE CITY AT, OR PRIOR TO, THE PUBLIC HEARING.

Publish: April 24, 2026

24320
1 Rina Leung
From: James wu <[email protected]>
Sent: Tuesday, April 28, 2026 6:15 PM
To: Planning; Rina Leung
Subject: Formal Comment on Master Case 19-000016-R1 - 16490 Jurupa Ave.

Follow Up Flag: Follow up
Flag Status: Flagged

CAUTION - EXTERNAL SENDER - THIS EMAIL ORIGINATED OUTSIDE OF THE CITY'S EMAIL SYSTEM Do not click links or open attachments unless you recognize the sender and know the content is safe.

To: [email protected]
Cc:

Subject: Formal Comment on Master Case 19-000016-R1 - 16490 Jurupa Ave.

To the Fontana Planning Commission,
I am writing as the owner of the property located at 16490 Jurupa Ave.Fontana, CA 92337 (APN: [ 0255081270000 ]) , which is the corner lot immediately adjacent to the proposed Goodman Logistics Center project (19-000016-R1).

While I support the city's economic growth, the proposed rezoning of 70% of the surrounding land to "Light Industrial" will create a severe land-use mismatch . Leaving my corner lot as Residential (R-PC) while surrounded by massive industrial warehouses will make my property uninhabitable due to noise, air pollution, and heavy truck traffic.

As a condition of my support for this project, I formally request that the City include my parcel in the current rezoning application to be changed from R-PC to Commercial.

A unified zoning designation for this corner lot will:

1. Ensure planning consistency for the Southwest Industrial Park.

2. Provide a better transition/buffer for the neighboring church.

3. Prevent future CEQA-related complaints regarding residential "sensitive receptors." I look forward to discussing this at the public hearing.

Sincerely,
[Weifeng Wu]
[626-3228322]
25321

Attachment No. 3
Draft Planning Commission Hearing May 5, 2026
Minutes

PH-C Master Case No. 19-000016R1: Development Agreement No. 19-000002R1 - A request to approve a first amendment to the Goodman Logistics Center Fontana III Development Agreement to extend the term and add sustainability features.

Chair Armendarez opened the Public Hearing.

No written correspondence was received.

Rina Leung, Senior Planner, presented the staff report.

The applicant, Jeff Hamilton, on behalf of GLC Fontana III, LLC. stated that he read and agreed to the Conditions of Approval and stated that staff did a great job in explaining the request for an additional ten years to the development agreement. The applicant added that, in exchange, a significant amount of sustainability requirements would be incorporated into future buildings.

The following individual spoke in opposition:
 Jose Tinajero

The Public Hearing was closed.

RECOMMENDATION:

Based on the information in the staff report and subject to the findings, conclusions, and information set forth therein, as well as in the resolution and the information presented in the public hearing, staff recommends that the Planning Commission adopt Resolution No. PC 2026-020; and forward a recommendation to the City Council to:

2. Adopt an Ordinance approving a First Amendment to the Goodman Logistics 322
Planning Commission Draft Minutes May 5, 2026

Page 2 of 2 ends

Center Fontana III Development Agreement with GLC Fontana III LLC.

ACTION: Motion was made by Vice Chair Quintana and seconded by Secretary Lozano and passed by a vote of 3-0 to approve Public Hearing Item “C” and adopt Resolution No. PC 2026-020.

The motion carried by the following vote:

AYES: Chair Armendarez, Vice Chair Quintana, Secretary Lozano NOES: None;
ABSTAIN: None;
ABSENT: Commissioners Sanchez and Keetle

323

NOTICE PUBLIC HEARING
Si desea información en Español referente a esta notificación o proyecto, favor de comunicarse al (909) 350-6728.

A PUBLIC HEARING HAS BEEN SCHEDULED BEFORE THE CITY COUNCIL OF THE CITY OF FONTANA FOR THE FOLLOWING:

MASTER CASE (MCN) NO. 19-000016R1/DEVELOPMENT AGREEMENT (AGR) NO. 19-000002R1

A request for the First Amendment to Goodman Logistics Center Fontana III Development Agreement AGR 19-005, applicable to Goodman III property.

Environmental
Determination:

Pursuant to Sections 15162 and 15164 of the California Environmental Quality Act (CEQA) Guidelines and Section 8.06 of the City of Fontana’s 2019 Local CEQA Guidelines of the Goodman Logistics Center Fontana III Environmental Impact Report (EIR) (State Clearinghouse [SCH] No. 2019039071) along with a subsequent March 2021 Addendum has been prepared for this proposed proje ct. The aforementioned EIR was adopted by the City Council on June 23, 2020 and Addendum approved by Planning Commission on April 20, 2021, and they anticipated the development of the site for a commerce center development and industrial uses along with a development agreement and they also adequately identified any potential impacts associated with this project. No new additional impacts beyond what was anticipated in the EIR mentioned above were identified.

The project site is generally located between
Cypress Avenue and Juniper Avenue north of
Jurupa Avenue (APNs: 0255-091-20, -23, -63, -
64 and -65)

May 26, 2026

Steelworkers Auditorium
8437 Sierra Avenue
Fontana, CA 92335

2:00 pm

Location of Property:

Date of Hearing:

Place of Hearing:

Time of Hearing:

Should you have any questions concerning this project, please contact Rina Leung, Senior Planner, at (909) 350-6566 or by email at [email protected]
Attachment No. 4
324

ANY INTERESTED PARTY MAY PROVIDE INFORMATION BY LETTER OR EMAIL WHICH MAY BE OF ASSISTANCE TO THE CITY COUNCIL. A COPY OF THE APPLICATION AND ENVIRONMENTAL DOCUMENTATION IS AVAILABLE FOR INSPECTION AT THE PLANNING DEPARTMENT, CITY HALL.

PLEASE CONTACT THE PLANNER LISTED ABOVE.

IF YOU CHALLENGE IN COURT ANY ACTION TAKEN CONCERNING A PUBLIC HEARING ITEM, YOU

MAY BE LIMITED TO RAISING ONLY THOSE ISSUES YOU OR SOMEONE ELSE RAISED AT THE PUBLIC

HEARING DESCRIBED IN THIS NOTICE, OR IN WRITTEN CORRESPONDENCE TO THE CITY AT, OR PRIOR TO, THE PUBLIC HEARING.

Publish: May 15, 2026

325
City of Fontana
Action Report
City Council Meeting
8437 Sierra Avenue
Fontana, CA 92335
File #: 26-0993 Agenda Date: 5/26/2026
Agenda #: C. Category: Public Hearing
FROM:

Planning Department
SUBJECT:

Master Case No. 23-0100R1: Development Agreement (AGR) No. 23-0085R1 and Master Case No. 23-100R2: Development Agreement (AGR) No. 23-0085R2 - a request to amend and restate the previously approved Development Agreement (DA) for the Citrus/Oleander Industrial Commerce Center Project to allocate the provision of public benefit fees among properties in a manner consistent with Planning Commission Resolution No. 2025-040.

RECOMMENDATION:

Open the public hearings, receive public testimony, close the public hearings and by motion:

3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and,

2. Determine that the development agreement modifications together with the underlying project were adequately analyzed in the previously certified Citrus and Oleander Avenue at Santa Ana Avenue Project Environmental Impact Report (EIR) (State Clearinghouse No. 2022110389) and its subsequent Addendum, and pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR is required because there are no substantial changes in the project or its circumstances, and no new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts; and

3. Waive full reading and introduce for first reading by title only Ordinance No. 1991 entitled: “An Ordinance of the City Council of the City Of Fontana, California, Approving Development Agreement No 23-0085R1, as to Assessor’s Parcel Number 0255-021-17”

4. Waive full reading and introduce for first reading by title only Ordinance No. 1992 entitled: “An Ordinance of the City Council of the City of Fontana, California, Approving Development Agreement No 23-0085R2, as to Assessor’sParcel Numbers 0255-011-13, 0255-011-14, 0255- 011-18, 0255-011-19 AND 0255-011-25 thru 0255-011-32”
COUNCIL GOALS:

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· Promote economic development by pursuing business attraction, retention, and expansion. · Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.

DISCUSSION:

In late 2023, the City of Fontana granted entitlements for the Citrus/Oleander Industrial Commerce Center Project through its approvals of a General Plan Amendment (22-004), Zone Change (22-005), Specific Plan Amendment (22-002), Tentative Parcel Maps (TPMs 22-009, -030, and -031), and Design Reviews (22-029, -061, and -062). Concurrently with those approvals, the City Council approved Ordinance No. 1935 which authorized the City to enter into Development Agreement No. 23-0085 (DA) with Acacia Real Estate Group, Inc. (Acacia). The DA provided Acacia with conditional rights to develop the Citrus/Oleander Industrial Commerce Center Project consistent with the entitlements, and obligated Acacia to provide specific public benefits, including public benefit fees, to City.

In October 2025, the Planning Commission considered and approved Design Review 22-062-R2, to reduce the size of one of the industrial commerce center buildings from 193,462 square feet to approximately 83,632 square feet, and to reduce the size of that property from 8.7 acres to 4.6 acres.

The Planning Commission Resolution (No 2025-040), which approved Design Review 22-062-R2, included a condition that requires two separate amendments to the DA - one for the Acacia Property and one for the North Palisades Property - to accomplish the following:

1. Require the cumulative payment of public benefit fees of not less than $4,300,000 (half due at building permit and half due a certificate of occupancy) with the Acacia Property responsible for $881,678 and the North Palisades Property responsible for $3,418,322.

2. Update the entitlements under the Acacia DA Amendment to include Design Review 22-062- R2.

3. Require the parties executing the DA amendments to warrant and represent that they are the legal or equitable owners of the property.

4. Require that the DA amendments be recorded in the Office of the San Bernardino County recorder within thirty days after City Council approval.

5. Prohibit either DA amendment from taking effect unless both DA amendments are duly approved and executed.

6. Rescind the 22-062-R2 design review approval if both of the DA amendments are not timely recorded.

Most recently on April 21, 2026, the Planning Commission considered (1) Development Agreement No. 23-0085R1, which is the First Amendment to and Restatement of Development Agreement No. 23-0085 as it relates to the Acacia Property, and (2) Development Agreement No. 23-0085R2, which is the First Amendment to and Restatement of Development Agreement No. 23-0085 as it relates to the North Palisades.

After considering public comments, the Planning Commission voted unanimously to approve a City of Fontana Printed on 5/18/2026Page 2 of 4
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After considering public comments, the Planning Commission voted unanimously to approve a resolution recommending that the City Council approve both amended and restated Development Agreements.

PROJECT DESCRIPTION
The items currently before the Council are the Acacia DA Amendment and the North Palisades DA Amendment. Land use approvals and entitlements for the underlying properties have been granted through prior Planning Commission and City Council actions.

ANALYSIS
When the City and Acacia entered into the DA in December 2023, the Citrus/Oleander Industrial Commerce Center Project was envisioned as a single coordinated development effort lead by a single developer. But circumstances changed, and it is now more likely that the project will proceed through multiple ownership groups. To accommodate this change while preserving most of the DA benefits, the City authorized and directed amendments to the DA as specified above.

The following table outlines where each of the revisions directed in Planning Commission Resolution 2025-040 is implemented in the DA amendments.

Modification Acacia DA Amendment North Palisades DA
Amendment

1. Allocation of Public Benefit
Fees
§ 4.3 - Total of $881,678 § 4.3 - Total of
$3,418,322

2. Update to Entitlements § 1.1.15 -entitlements
include all approvals as of
“Effective Date
N/A

3. Legal / Equitable Ownership
Representation
§ 2.2 - Acacia Real Estate
Group, Inc. represents it is
legal or equitable owner of
the property.
§ 2.2 - NP Santa Ana
LLC represents it is
legal or equitable owner
of the property.

4. Recordation Required* § 10.1 (both amendments) - Will be recorded 10 days after entering into agreement.

5. Neither amendment is
effective unless both
amendments are effective
§ 1.1.13 (both amendments) - “Effective Date” requires
execution of amendments by fee owners of Acacia
Property and North Palisades Property; and must be
within 120 days after entitlements for North Palisades
Property are final and non-appealable

6. Recission of Design Review
22-062-R2 if DA
amendments are not
executed
§ 3.1 (both amendments) - if either DA amendment is
not timely executed, all project entitlements are
rescinded
* Planning Commission Resolution 2025-040 indicates that the DA amendments should be recorded within 30 days of Council approval. However, because the approval of the DA will precede the close of escrow on the properties, the actual execution and recordation cannot occur within that 30 day window.

In addition to the revisions mandated by Planning Commission Resolution 2025-040, staff and the City of Fontana Printed on 5/18/2026Page 3 of 4
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In addition to the revisions mandated by Planning Commission Resolution 2025-040, staff and the developer parties negotiated and the Planning Commission recommended, three additional items of note. First, Acacia agreed that if the North Palisades development is delayed, it will advance a portion of the public benefit fee owed by North Palisades. To that end, Section 4.4 of the Acacia DA Amendment requires that if the City has not issued a building permit for the North Palisades Property prior to the issuance of a final Certificate of Occupancy on the Acacia Property, Acacia will advance $618,322 to the City. The City would refund that same amount to Acacia when the North Palisades public benefit fee payment comes due and is paid to the City.

Second, the parties recognized that Assessor’sParcel Numbers 0255-021-18, and 0255-021-22 thru 0255-021-024 are included in the original DA but are not covered by either the Acacia DA Amendment or the North Palisades DA Amendment. The original DA, including its public benefit fee structure and obligations, will remain applicable to those properties.

Third, the DA amendments confirm that if the Acacia DA Amendment and the North Palisades DA Amendment do not take effect, the original DA, including its public benefit fee obligations, will remain valid and enforceable.

ENVIRONMENTAL REVIEW:

The proposed ordinance is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c), 15061(B)(3) (the common-sense exemption), and 15378 and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The proposed DA amendments are minor in nature and do not have the potential for causing significant impacts on the environment; therefore, the exemptions are appropriate.

Separately and independently, the DA modifications together with the underlying project were adequately analyzed in the previously certified Citrus and Oleander Avenue at Santa Ana Avenue Project Environmental Impact Report (EIR) (State Clearinghouse No. 2022110389) and its subsequent Addendum, and pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR is required because there are no substantial changes in the project or its circumstances, and no new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts.

FISCAL IMPACT:

NONE
MOTION:

Approve staff’s recommendation
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ATTACHMENT NO. 1
ORDINANCE NO. 1991

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

FONTANA, CALIFORNIA, APPROVING DEVELOPMENT
AGREEMENT NO. 23 -0085R1, AS TO ASSESSOR’S PARCEL
NUMBER 0255 -021-17, MAKING ASSOCIATED C ALIFORNIA

ENVIRONMENTAL QUALITY ACT FINDINGS, AND TO
DIRECTING STAFF TO FILE A NOTICE OF EXEMPTION.

WHEREAS, the City of Fontana previously granted entitlements for the Citrus/Oleander Industrial Commerce Center Project through its approvals of a General Plan Amendment (22-004), Zone Change (22-005), Specific Plan Amendment (22-002), Tentative Parcel Maps (TPMs 22 -009, -030, and -031), and Design Reviews (22 -029, - 061, and -062) (collectively, Citrus Oleander Entitlements); and

WHEREAS, concurrent with the Citrus Oleander Entitlements, the City Council of the City of Fontana approved Ordinance No. 1935 which authorized the City to enter into Development Agreement No. 23-085 (DA) with Acacia Real Estate Group, Inc. (Acacia); and

WHEREAS, the DA gave Acacia vested rights to develop the Citrus/Oleander Industrial Commerce Center Project consistent with the Citrus Oleander Entitlements, and in exchange obliged Acacia to provide specified public benefit fees to the City; and

WHEREAS, in October 2025, the Fontana Planning Commission (Planning Commission) considered and approved Design Review 22-062-R2, to reduce the size of one of the industrial commerce center buildings (originally approved in Design Review 22-062) from 193,462 square feet to approximately 83,632 square feet, and to reduce the size of that property from 8.7 acres to 4.6 acres; and

WHEREAS, Resolution No 25-040 approving Design Review 22-062-R2 requires two separate amendments to the DA – one for Assessor’s Parcel Numb er 0255-021-17 (Acacia Property) and one for the Assessor’s Parcel Numbers 0255 -011-13, 0255-011- 14, 0255 -011-18, 0255 -011-19 and 0255 -011-25 thru 0255 -011-32 (North Palisades Property) – to accomplish the following: (1) require the cumulative payment of public benefit fees of not less than $4,300,000 – half due at building permit and half due a certificate of occupancy – with the Acacia Property responsible for $881,678 and the North Palisades Property responsible for $3,418,322; (2) update the vested entitlements under the DA amendment for the Acacia Property to include Design Review 22 -062-R2; (3) require the parties executing the DA amendments to warrant and represent that they are the legal or equitable owners of the property; (4) require that the DA amendments be recorded in the Office of the San Bernardino County recorder within thirty days after City Council approval; (5) prohibit either DA amendment from taking effect unless both DA 330

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amendments take effect; and (6) rescind the 22-062-R2 design review approval if both of the DA amendments are not timely recorded; and

WHEREAS, consistent with Planning Commission direction, City staff together with representatives of the future owners of the Acacia Property negotiated and prepared a DA amendment that, together with a separately negotiated and concurrently presented DA amendment for the North Palisades Property, accomplishes the intent and direction provided in Planning Commission Resolution No. 25-040.

WHEREAS, on April 21, 2026, the Planning Commission held a public meeting on AGR No. 23-0083R1 where it received evidence and public testimony on the Acacia DA Amendment and unanimously recommended in Resolution No. PC 2026-017 that the Fontana City Council (City Council) (1) determine that the Acacia DA Amendment is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15060(c), 15061(B)(3) (the common -sense exemption), and 15378 and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment; (2) determine that the Acacia DA Amendment together with the underlying project were adequately analyzed in the previously certified Citrus and Oleander Avenu e at Santa Ana Avenue Project Environmental Impact Report (EIR) (State Clearinghouse No. 2022110389) and its subsequent Addendum, and pursuant to CEQA Guidelines Section 15162, no subsequent or supplemental EIR is required because there are no substantial changes in the project or its circumstances, and no new information of substantial importance has been identified that would result in any new or more severe significant environmental impacts; and (3) adopt an ordinance approving the Acacia DA Amendment.

WHEREAS, on April 10, 2026, notice of the May 26, 2026, City Council public hearing for the Acacia DA amendment was published in the Sun Newspaper and was posted at designated City bulletin boards; and

WHEREAS, on May 26, 2026, the City Council held a public hearing on the Acacia DA Amendment where the City Council received evidence and public testimony pertaining to the Amendment and documentation from the Planning Commission’s public hearing on April 21, 2026; and

WHEREAS, the City Council carefully considered all information pertaining to the Acacia DA Amendment, including the staff report, Planning Commission recommendations, findings, and all the information, evidence, and testimony presented at its public hearing on May 26, 2026,

WHEREAS, all other legal prerequisites to the adoption of this ordinance have occurred.

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THE CITY COUNCIL OF THE CITY OF FONTANA , CALIFORNIA DOES ORDAIN AS FOLLOWS:

Section 1. Recitals. The above recitals are true, correct and incorporated herein by reference.

Section 2. Compliance with the California Environmental Quality Act . The City Council has reviewed and considered the Acacia DA Amendment and find s and determines that the amendment is categorically exempt from the CEQA pursuant to CEQA Guidelines Sections 15060(c), 15061(B)(3) (the common -sense exemption), and 15378 and Sections No. 3.01, 3.22, and 10.59 of the 2019 Local Guidelines for Implementing CEQA, in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment where it can be with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and Section 3. Additional Basi s for Compliance with the California Environmental Quality Act. Based on the substantial evidence set forth in the record, including but not limited to, the Citrus and Oleander Avenue at Santa Ana Avenue Project EIR and the subsequent Addendum thereto, and all related information presented to the City Council, the City Council finds and determines pursuant to State CEQA sections 15162 and 15164 and Section 8.06 of the City of Fontana’s 2019 Local Guidelines for Implementing CEQA that the preparation of a s ubsequent or supplemental EIR is not required because the project:

A. Will not result in substantial changes that would require major revisions of the Citrus and Oleander Avenue at Santa Ana Avenue Project EIR due to the involvement of new significant enviro nmental effects or a substantial increase in the severity of previously identified significant effects; and

B. Will not result in substantial changes with respect to the circumstances under which the project is developed that would require major revisions of the Citrus and Oleander Avenue at Santa Ana Avenue Project EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects; and

C. Does not present new information of substantial importance that was not known and could not have known with the exercise of reasonable diligence at the time the Citrus and Oleander Avenue at Santa Ana Avenue Project EIR documents were certified showing any of the following:

(i) The modified project would have one or more significant effects not discussed in the EIR;

(ii) That significant effects previously examined would be substantially more severe than shown in the EIR;
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(iv) That mitigation measures or alternatives are considerably different from those analyzed would substanti ally reduce one or more significant effects on the environment, but which the leady agency declined to adopt

Section 4 . Approval of Acacia DA Amendment . The Acacia DA Amendment, attached hereto as Exhibit “A”, is hereby approved and the Mayor is hereby authorized to execute the Acacia DA Amendment on behalf of the City. The City Manager, or his or her designee, is directed and authorized to do all of the following:
(i) Prepare a final version of the Acacia DA Amendment for execution and recording that fully reflects the action of the City Council in adopting the Acacia DA Amendment , subject to review and approval of the City Attorney; and

(ii) Make all necessary and appropriate clerical, typographical, formatting, and non-substantial corrections or revisions to the adopted Acacia DA Amendment prior to execution and recording; and

(iii) Implement the Acacia DA Amendment in accordance with its terms.

Section 7. Certification. The City Clerk of the City Council shall certify the adoption of this Ordinance.

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APPROVED AND ADOPTED this 9th day of June 2026.

READ AND APPROVED AS TO LEGAL FORM:

____________________________________
City Attorney

AYES:

NOES:

ABSENT:

ABSTAIN:

_____________________________________
City Clerk of the City of Fontana

_____________________________________
Mayor of the City of Fontana

ATTEST:

_____________________________________
City Clerk
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“EXHIBIT A”

ACACIA DA AMENDMENT

Recorded at request of: )
Clerk, City Council )
City of Fontana )
)
When recorded return to: )
City of Fontana )
8353 Sierra Avenue )
Fontana, CA 92335 )
Attention: City Clerk )
)
Exempt from Filing Fees, Government Code Section 6103

DEVELOPMENT AGREEMENT 23-0085R1

FIRST AMENDMENT TO AND RESTATEMENT OF DEVELOPMENT AGREEMENT NO. 23-085, APPLICABLE TO THE ACACIA PROPERTY

AN AMENDED AND RESTATED DEVELOPMENT AGREEMENT BETWEEN

CITY OF FONTANA
a California Municipal Corporation

and

ACACIA REAL ESTATE GROUP, INC.,

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DEVELOPMENT AGREEMENT NO. 23-0085R1
This First Amendment to and Restatement of Development Agreement 23 -0085, Applicable to the Acacia Property (hereinafter “Amended and Restated Agreement”) is entered into effective on _______ (hereinafter the “ Effective Date”) by and among the City of Fontana, a California municipal corporation (hereinafter, “CITY”), and Acacia Real Estate Group, Inc. (hereinafter, “OWNER”):

RECITALS
WHEREAS, CITY is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of su ch property, pursuant to Section 65864 et seq. of the Government Code; and WHEREAS, OWNER filed an application for, and the City Council of the City of Fontana (“City Council”), approved, three design reviews (DRP No. 22-029R1, DRP No. 22-062R1, and DRP No . 22-061R1); three tentative parcel maps (TPM No. 22 -009R1, TPM No. 22-030R1, and TPM No. 22-031R1), a general plan amendment (GPA No. 23- 004), a zone code amendment (ZCA No. 23 -006), a specific plan amendment (SPA No. 23-004), and a development agreement (collectively, MCN No. 23-100) (hereinafter the “Project”) for that certain real property located north of Santa Ana Avenue, east of Citrus Avenue, and west of Cypress Avenue, identified as Assessor’s Parcel Numbers (“APN(s)”) 0255-021-17, -18, -22 thru -24; and 0255-011-13, -14, -18, -19, -25 thru -32, as more particularly described on Exhibit “A-1” to this Amended and Restated Agreement (the “Property”); and
WHEREAS, APN 0255 -021-17 is located north of Santa Ana Avenue, east of Oleander Avenue, and west of Cypress Avenue, as more particularly described on Exhibit “A-2” to this Amended and Restated Agreement (“Acacia Property”); and WHEREAS, APNs 0255 -011-13, 0255 -011-14, 0255 -011-18, 0255 -011-19 and 0255-011-25 thru 0255 -011-32 are located north of Santa Ana Avenue, east of Citrus Avenue, and west of Oleander Avenue, as more particularly described on Exhibit “A-3” to this Amended and Restated Agreement (“North Palisades Property”); and WHEREAS, APNs 0255-021-18, and 0255-021-22 thru 0255-021-024 are located north of Santa Ana Avenue, east of Oleander Avenue, west of Cypress Avenue, as more particularly described on Exhibit “A-4” (“Remaining Original DA Property”); and WHEREAS, the owners of the Property were aware of the Project and expressly authorized and consented to the filing and approval of the related applications, including the application for and approval and execution of Development Agreement No. 23 -085 (“Original DA”), with the CITY in connection therewith; and WHEREAS, the CITY and OWNER ente red into the Original DA on or about November 15, 2023, and the Original DA was recorded against the Property in the Official Records of San Bernardino County on December 18, 2023, as document number 2023 - 0311188; and
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WHEREAS, subsequent to the execution of the Original DA, OWNER desired to change its plans for the development of the Property and to limit the scope of its development to the Acacia Property (“Acacia Project”); and WHEREAS, OWNER has determined that it no longer requires the remaining parcels of the Property outside the Acacia Property for the purposes of its current project, and in connection therewith desires to enter into this Amended and Restated Agreement, as applicable only to the Acacia Property; and
WHEREAS, NP SANTA ANA LLC desires to acquire the North Palisades Property for development of the portion of the Project planned for the North Palisades Property (“North Palisades Project ”), and in connection therewith enter into a separate Amendment to and Restatement of the Original DA ( “NP Santa Ana Amended and Restated Agreement”), as applicable only to the North Palisades Property; and WHEREAS, by electing to enter into this Amended and Restated Agreement, CITY shall bind future City Councils of CITY by the obligations specified herein and limit the future exercise of certain governmental and proprietary powers of CITY; and WHEREAS, the terms and conditions of this Amended and Restated Agreement have undergone extensive review by CITY and the City Council and have been found to be fair, just and reasonable; and
WHEREAS, the best interests of the citizens of the CITY and the public health, safety and welfare will be served by entering into this Amended and Restated Agreement; and
WHEREAS, prior to the adoption of the Development Approvals described in this Amended and Restated Agreement, the City Council reviewed, considered, and certified the Environmental Impact Report (“ EIR”) for the Citrus/Oleander Industrial Center of which the Project, as that term is defined below, is a part, and made findings concerning the mitigation measures for the Project, and adopted a Mitigation Monitoring and Reporting Program in accordance with CEQA and the State and CITY CEQA Guidelines; and
WHEREAS, this Amended and Restated Agreement and the Project are consistent with the CITY’s Comprehensive General Plan and any Specific Plan applicable thereto; and
WHEREAS, all actions taken and approvals given by CITY have been duly taken or approved in accordance with all applicable legal requirements for notice, publ ic hearings, findings, votes, and other procedural matters; and WHEREAS, development of the Property in accordance with this Amended and Restated Agreement will provide substantial benefits to CITY and will further important policies and goals of CITY; and
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WHEREAS, this Amended and Restated Agreement will eliminate uncertainty in planning and provide for the orderly development of the Acacia Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Acacia Project, and generally serve the purposes for which development agreements under Sections 65864 et seq of the Government Code are intended; and
WHEREAS, OWNER has incurred and will in the future incur substantial costs in excess of the generally applicable requirements in order to assure vesting of legal rights to develop the Acacia Property in accordance with this Amended and Restated Agreement.

COVENANTS
NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. DEFINITIONS AND EXHIBITS.

1.1. Definitions. The following terms when used in this Amended and Restated Agreement shall be defined as follows:

1.1.1. “Acacia Project ” the development of the Acacia Property contemplated by the Development Plan as such Plan may be further defined, enhanced or modified pursuant to the provisions of this Amended and Restated Agreement.

1.1.2. “Acacia Property” means APN 0255-021-17, which is located north of Santa Ana Avenue, east of Oleander Avenue, and west of Cypress Avenue, as shown on Exhibit “A-2”.

1.1.3. “Amended and Restated Agreement” means this First Amendment to and Restatement of Development Agreement No. 23-0085.

1.1.4. “APN(s)” means assessor’s parcel numbers as used by the San Bernardino County Clerk/Recorder.

1.1.5. “Certificate” has the meaning assigned to that term in Section 6.6.

1.1.6. “CITY” means the City of Fontana, a municipal corporation, organized and existing pursuant to the laws of the State of California.

1.1.7. “City Council” means the City Council of the City of Fontana, California.

1.1.8. “Development” means the improvement of the Acacia Property for the purposes of completing the structures, improvements and facilities comprising the Acacia Project including, but not limited to: grading; the construction of infrastructure and 338

60410144.1/200475.0009
public facilities related to the Acacia Project whether located within or outside the Acacia Property; the construction of buildings and structures; and the installation of landscaping. “Development” does not include the maintenance, repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof.

1.1.9. “Development Approvals ” means all permits and other entitlements for use subject to approval or issuance by CITY in connection with development of the Acacia Property including, but not limited to:
(a) conditional use permits and design review permits;
(b) tentative parcel maps;
(c) General Plan and Zoning Code amendments; and,
(d) grading, encroachment and building permits.

1.1.10. “Development Exaction ” means any requirement of CITY in connection with or pursuant to any Land Use Regulation or Development Approval for the dedication of land, the construction of improvements or public facilities, or the payment of fees in order to lessen, offset, mitigate or compensate for the impacts of development on the environment or other public interests.

1.1.11. “Development Impact Fee” means a monetary exaction other than a tax or special assessment, whether characterized as a fee or a tax and whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include park “in lieu” fees specified in Government Code Section 66477, fees for processing applications for governmental regulatory actions or approvals, fees collected under development agreements adopted pursuant to Article 2.5 of the Government Code (commencing with Section 65864) of Chapter 4, or fees collected pursuant to agreements with redevelopment agencies which provide for the redevelopment of property in furtherance or for the benefit of a redevelopment project for which a redevelopment plan has been adopted pursuant to the Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code).

1.1.12. “Development Plan ” m eans the Existing Development Approvals and the Existing Land Use Regulations, as those terms are defined herein, applicable to development of the Property.

1.1.13. “Effective Date” means the date upon which all of the following have occurred: (1) the ordinance approving this Amended and Restated Agreement becomes effective, (2) the ordinance approving the NP Santa Ana Amended and Restated Agreement becomes effective, (3) this Amended and Restated Agreement has been executed by the fee owner of the Acacia Property and delivered to the CITY within one 339

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hundred twenty (120) days following the approval (second reading) of the ordinance approving this Amended and Restated Agreement; and (4) the NP Santa Ana Amended and Restated Agreement has been executed by the fee own er of the North Palisades Property and delivered to the CITY within the later of (a) one hundred twenty (120) days following the close of escrow for acquisition of the North Palisades Property by the “OWNER” (as that term is defined in the NP Santa Ana Ame nded and Restated Agreement) and (b) one hundred twenty (120) days following the entitlements for the North Palisades Property becoming final and non-appealable (and in no event more than 210 days following the City’s grant of entitlements for the North Palisades Property).

1.1.14. “EIR” means the Environmental Impact Report for the Citrus/Oleander Industrial Center as certified by the City Council, designated as State Clearinghouse number 2022110389.

1.1.15. “Existing Development Approvals ” means all Development Approvals approved or issued on or prior to the Effective Date.

1.1.16. “Existing Land Use Regulations” means all Land Use Regulations in effect on the Effective Date.

1.1.17. “Fund” has the meaning assigned to that term in Section 9.2.

1.1.18. “General Plan” means the Comprehensive General Plan of the City of Fontana, as such General Plan existed as of the Effective Date of this Amended and Restated Agreement.

1.1.19. “Land Use Regulations” means all ordinances, resolutions, codes, rules, regulations and official policies of CITY governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, timing and phasing of development, the maximum height and size of proposed buildings, the provisions for reserva tion or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to the development of the Acacia Property. “Land Use Regulations” does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing:
(a) the conduct of businesses, professions, and occupations; (b) taxes and assessments;
(c) the control and abatement of nuisances;
(d) the granting of encroachment permits and the conveyance of rights and interests which provide for the use of or the entry upon public property; (e) the exercise of the power of eminent domain.

1.1.20. “Mortgagee” means a mortgagee of a mortgage, a beneficiary under a deed of trust or any other security-device lender, and their successors and assigns. 340

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1.1.21. “North Palisades Project” the development of the North Palisades Property contemplated by the Development Plan as such Plan may be further defined, enhanced or modified pursuant to the provisions of the NP Santa Ana Amended and Restated Agreement.

1.1.22. “North Palisades Property” means APNs 0255-011-13, 0255-011- 14, 0255-011-18, 0255-011-19 and 0255 -011-25 thru 0255 -011-32, which are located north of Santa Ana Avenue, east of Citrus Avenue, and west of Oleander Avenue, as shown on Exhibit “A-3”.

1.1.23. “NP Santa Ana Amended and Restated Agreement ” means an amendment to and restatement of the Original DA, entered into by and between the CITY and the fee owner of the North Palisades Property, which shall be applicable to and binding upon the fee owner of the North Palisades Property and its successors in interest.

1.1.24. “OWNER” means the persons and entities listed as OWNER on page 1 of this Amended and Restated Agreement and their successors in interest to all or any part of the Acacia Property.

1.1.25. “Project” means the development of the Property contemplated by the Development Plan as such Plan may be further defined, enhanced or modified pursuant to the provisions of this Amended and Restated Agreement.

1.1.26. “Property” means the real property described on Exhibit “A-1” as shown on to this Amended and Restated Agreement.

1.1.27. “Public Benefit Fee ” means the public benefit fee to be paid by OWNER as described in Section 4.3 of this Amended and Restated Agreement.

1.1.28. “Remaining Original DA Property” means APNs 0255-021-18, and 0255-021-22 thru -24, which are located north of Santa Ana Avenue, east of Oleander Avenue, and west of Cypress Avenue, as shown on Exhibit “A-4”.

1.1.29. “Reservations of Authority ” means the rights and authority excepted from the assurances and rights provided to OWNER under this Amended and Restated Agreement and reserved to CITY under Section 3.6 of this Amended and Restated Agreement.

1.1.30. “Subsequent Development Approvals ” means all Development Approvals required subsequent to the Eff ective Date in connection with development of the Acacia Property.

1.1.31. “Subsequent Land Use Regulations ” means any Land Use Regulations adopted and effective after the Effective Date of this Amended and Restated Agreement.

1.1.32. “Term” has the meaning assigned to that term in Section 2.3. 341

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1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Amended and Restated Agreement:

Exhibit “A-1” — Legal Description the Property.

Exhibit “A-2” — Legal Description the Acacia Property.

Exhibit “A-3” — Legal Description the North Palisades Property.

Exhibit “A-4” — Legal Description of Remaining Original DA Property Exhibit “B” — Map showing Property and its location.

Exhibit “C” – Form of Assignment and Assumption Agreement Exhibit “D” – Subsequent Development Approvals Integrated Into Vested Rights under Section 3.5

2. GENERAL PROVISIONS.

2.1 Binding Effect of Original DA.
(a) Upon the occurrence of the Effective Date, the Acacia Property shall be subject to this Amended and Restated Agreement. OWNER agrees and acknowledges that (1) the Original DA shall remain in full force and effect unless and until the Effective Date occurs, and (2) if this Amended and Restated Agreement and/or the NP Santa Ana Amended and Restated Agreement are r escinded or invalidated for any reason, the Original DA shall remain binding upon and applicable to the Acacia Property, its owners, and their successors in interest.

(b) Development of the Acacia Property is hereby authorized and shall be carried out o nly in accordance with the terms of either this Amended and Restated Agreement (if, and for so long as, this Amended and Restated Agreement is effective and applicable to the Acacia Property) or the Original DA.

(c) For so long as this Amended and Resta ted Agreement is effective and applicable to the Acacia Property, this Amended and Restated Agreement shall supersede the Original DA in its entirety with respect to the Acacia Property.

(d) For the avoidance of doubt, if either (1) this Amended and Restated Agreement has not been executed by the fee owner of the Acacia Property within one hundred twenty (120) days following the approval (second reading) of the ordinance approving this Amended and Restated Agreement; or (2) the NP Santa Ana Amended and Restated Agreement has not been executed by fee owner of the North Palisades Property within 342

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the later of (a) one hundred twenty (120) days following the close of escrow for acquisition of the No rth Palisades Property by the “OWNER” (as that term is defined in the NP Santa Ana Amended and Restated Agreement) and (b) one hundred twenty (120) days following the entitlements for the North Palisades Property becoming final and non -appealable (and in n o event more than 210 days following the City’s grant of entitlements for the North Palisades Property), then this Amended and Restated Agreement shall never become effective, and the Original DA shall remain binding upon and applicable to the Acacia Prope rty, its owners, and their successors in interest.

2.2 Ownership of Acacia Property. OWNER represents and covenants that it is the legal or equitable owner of the fee simple title to the Acacia Property. Prior to CITY’s execution and recordation of this Amended and Restated Agreement, OWNER shall submit to CITY reasonable proof of its fee ownership of the Acacia Property as determined by CITY in its sole and absolute discretion.

2.3 Term. The initial term of this Amended and Restated Agreement shall commence on the Effective Date and shall continue for a period of ten (10) years thereafter unless this term is modified or extended pursuant to the provisions of this Amended and Restated Agreement. Notwithstanding the foregoing, the term of this Amended and Restated Agreement may be extended for an additional five (5) years following expiration of the initial term, provided the following have occurred:

(a) OWNER provides at least ninety (90) days written notice to CITY prior to the expiration of the initial term; and

(b) OWNER shall have obtained building permits for at least sixty -seven percent (67%) of the gross area of the industrial building(s) contemplated by the Acacia Project; and

The initial term and, if and upon extension, the 5 -year extension, shall sometimes be referred to herein collectively as the “Term.”

The term of this Amended and Restated Agreement shall not be considered to run and shall toll for any period in which the Acacia Project is being challenged or litigated by a third-party.

2.4 Assignment.

2.4.1 Right to Assign . OWNER shall have the right to sell, transfer or assign the Acacia Property in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code Section 66410 et seq.) to any person, partnership, joint venture, firm or corporation at any time during the term of this Amended 343

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and Restated Agreement; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of the rights, duties and obligations arising under or from this Amended and Restated Agreement and be made in strict compliance with the following conditions precedent:
(a) No sale, transfer or a ssignment of any right or interest under this Amended and Restated Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Acacia Property. (b) Concurrent with any such sale, transfer or assignment, or wit hin fifteen (15) business days thereafter, OWNER shall notify CITY, in writing, of such sale, transfer or assignment and shall provide CITY with an executed agreement, in a form substantially similar to that attached hereto as Exhibit “C” which has been d eemed reasonably acceptable to CITY, by the purchaser, transferee or assignee and providing therein that the purchaser, transferee or assignee expressly and unconditionally assumes all the duties and obligations of OWNER under this Amended and Restated Agreement. (c) Any sale, transfer or assignment not made in strict compliance with the foregoing conditions shall constitute a default by OWNER under this Amended and Restated Agreement. Notwithstanding the failure of any purchaser, transferee or assignee to execute the agreement required by Paragraph (b) of this Subsection 2.4.1, the burdens of this Amended and Restated Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Amended and Restated Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed.

2.4.2 Release of Transferring Owner . Notwithstanding any sale, transfer or assignment, a transferring owner shall continue to be obligated under this Amended and Restated Agreement unless such transferring owner is given a release in writing by CITY, which release shall be provided by CITY upon the full satisfaction by such transferring owner of the following conditions:
(a) OWNER no longer has a legal or equitable interest in all or any part of the Acacia Property.
(b) OWNER is not then in default under this Amended and Restated Agreement.
(c) OWNER has provided CITY with the notice and executed agreement required under Paragraph (b) of Subsection 2.4.1 above. (d) The purchaser, transferee or assignee provides CITY with security equivalent to any security previously provided by OWNER to secure performance of its obligations hereunder.

2.4.3 Subsequent Assignment. Any subsequent sale, transfer or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section.
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2.4.4 Partial Release of Purchaser, Transferee or Assignee of Industrial or Commercial Lot. A purchaser, transferee or assignee of a lot within the Acacia Property, which has been finally subdivided as provided for in the Development Plan and for which a commercial or industrial plot plan for development of the lot has been finally approved pursuant to the Development Plan, may submit a request, in writing, to CITY to release said lot from the obligations under this Amended and Restated Agreement relating to all other portions of the Acacia Property. Within thirty (30) days of such request, CITY shall review, and if the above conditions are satisfied shall approve the request for release and notify the purchaser, transferee or assignee in writing thereof. No such release approved pursuant to this Subsection 2.4.4 shall cause, or otherwise affect, a release of OWNER from its duties and obligations under this Amended and Restated Agreement.

2.4.5 Termination of Amended and Restated Agreement With Respect to Individual Lots Upon Sale to Public and Completion of Construction . The provisions of Subsection 2.4.1 shall not apply to the s ale or lease (for a period longer than one year) of any lot within the Acacia Property which has been finally subdivided and is individually (and not in “bulk”) sold or leased to a member of the public or other ultimate user.

Notwithstanding any other prov isions of this Amended and Restated Agreement, this Amended and Restated Agreement shall terminate with respect to any lot within the Acacia Property and such lot shall be released and no longer be subject to this Amended and Restated Agreement without the execution or recordation of any further document upon satisfaction of both of the following conditions:
(a) The lot has been finally subdivided and individually (and not in “bulk”) sold or leased (for a period longer than one year) to a member of the publ ic or other ultimate user; and,
(b) A certificate of occupancy or temporary certificate of occupancy has been issued for a building on the lot, and the fees set forth under Section 4 of this Amended and Restated Agreement have been paid.

2.5 Amendment or Cancellation of Amended and Restated Agreement . This Amended and Restated Agreement may be amended or canceled in whole or in part only by written consent of all parties in the manner provided for in Government Code Section 65868 and the Development Agreem ent Policies. This provision shall not limit any remedy of CITY or OWNER as provided by this Amended and Restated Agreement. Any amendment of this Amended and Restated Agreement which has been requested by OWNER shall only be processed and considered by the CITY upon the payment of the applicable processing charge.

2.6 Termination. This Amended and Restated Agreement shall be deemed terminated and of no further effect upon the occurrence of any of the following events:
(a) Expiration of the stated ter m of this Amended and Restated Agreement as set forth in Section 2.3.
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(b) Entry of a final judgment setting aside, voiding or annulling the adoption of the ordinance approving this Amended and Restated Agreement (in which case the Original DA shall remain binding upon and applicable to the Acacia Property, its owners, and their successors in interest).
(c) The adoption of a referendum measure overriding or repealing the ordinance approving this Amended and Restated Agreement (in which case the Original DA shall remain binding upon and applicable to the Acacia Property, its owners, and their successors in interest).
(d) Completion of the Acacia Project in accordance with the terms of this Amended and Restated Agreement including issuance of all required occupancy permits and acceptance by CITY or applicable public agency of all required dedications. (e) Termination of this Amended and Restated Agreement based on any default of OWNER and following the termination proceedings required by the Development Agreement Policies.

Termination of this Amended and Restated Agreement shall not constitute termination of any other land use entitlements or agreements approved for the Acacia Property. Upon the termination of this Amended and Restated Agreement, no party shall have any further right or obligation hereunder except with respect to any obligation to have been performed prior to such termination or with respect to any default in the performance of the provisions of this Amended and Restated Agreement which has occurred prior to such termination or with respect to any obligations which are specifically set forth as surviving this Amended and Restated Agreement. Upon such termination, any public facilities and services mitigation fees paid pursuant to Section 4.2 of thi s Amended and Restated Agreement by OWNER to CITY buildings on which construction has not yet begun shall be refunded to OWNER by CITY.

2.7 Notices.
(a) As used in this Amended and Restated Agreement, “notice” includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder.
(b) All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) on the date of delivery shown in the records of the telegraph company after transmission by telegraph to the recipient named below. All notices shall be addressed as follows:

If to CITY:

City of Fontana
8353 Sierra Avenue
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Fontana, CA 92335
Attn: City Manager
Telephone: (909) 350-7600

Copy to:

Best, Best & Krieger, LLP
2855 E Guasti Road
Ontario, CA 91761
Attn: City Attorney
Telephone: (909) 989-8584
Facsimile: (909) 944-1441

If to OWNER:

Acacia Real Estate Group, Inc.

Attn: David B. Pittman
260 Newport Center Drive, Suite 100
Newport Beach, CA 92660
Telephone: (714) 270-0777

Copy to:

Allen Matkins Leck Gamble Mallory & Natsis, LLP
Attn: Jonathan Shardlow
2010 Main Street, 8th Floor,
Irvine, CA 92614
Telephone: (949) 553-1313

(c) Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.

3. DEVELOPMENT OF THE PROPERTY.

3.1 Rights to Develop . Subject to the terms of this Amended and Restated Agreement including the Reservations of Authority, OWNER shall have a vested right to develop the Acacia Property in accordance with, and to the extent of, the Development Plan. The Acacia Project shall remain subject to all Subsequent Development Approvals required to complete the Acacia Project as contemplated by the Development Plan.

Except as otherwise p rovided in this Amended and Restated Agreement, the permitted uses of the Acacia Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Development Plan.

If the either (1) this Amended and Restated Agreement has not been executed by the fee owner of the Acacia Property within one hundred twenty (120) days following the approval (second reading) of the ordinance ap proving this Amended and Restated 347

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Agreement; or (2) the NP Santa Ana Amended and Restated Agreement has not been executed by the fee owner of the North Palisades Property within one hundred twenty (120) days following the approval (second reading) of the o rdinance approving the NP Santa Ana Amended and Restated Agreement, then (A) OWNER shall take no action in furtherance of development of the Project without the CITY’s prior written approval, which CITY may grant or withhold in its sole and absolute discre tion, (B) all entitlements and approvals issued for or in connection with the Project shall be deemed automatically rescinded by CITY without further action by the CITY and without any further obligation by the CITY to the OWNER with respect thereto, and s hall be null and void and of no further force or effect, and (C) CITY may, in its sole and absolute discretion, elect to take formal action to rescind any entitlements issued for or in connection with the Project; OWNER expressly waives and releases any an d all rights, vested or otherwise, that it may have to object to or interfere with such formal action.

3.2 Effect of Amended and Restated Agreement on Land Use Regulations .

Except as otherwise provided under the terms of this Amended and Restated Agreement including the Reservations of Authority, the rules, regulations and official policies governing permitted uses of the Acacia Property, the density and intensity of use of the Acacia Property, the maximum height and size of proposed buildings, and the des ign, improvement and construction standards and specifications applicable to development of the Acacia Property shall be the Existing Land Use Regulations. In connection with any Subsequent Development Approval, CITY shall exercise its discretion in accordance with the Development Plan, and as provided by this Amended and Restated Agreement including, but not limited to, the Reservations of Authority. CITY shall accept for processing, review and action all applications for Subsequent Development Approvals, and such applications shall be processed in the normal manner for processing such matters.

3.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Acacia Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other similar factors. Since the California Supreme Court held in Pardee Construction Co. v. City of Camarillo, (1984) 37 Cal.3d 465, that the failure of the parties therein to provide for the timing of development resulted in a later adopted initiative restricting the timing of development to prevail over such parties’ agreement, it is the parties’ intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Acacia Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment, subject only to any timing or phasing requirements set forth in the Development Plan or the Phasing Plan set forth in Section 3.4. Notwithstanding anything to the contrary set forth in this Section 3.3 or in this Amended and Restated Agreement, CITY acknowledges that OWNER shall have no obligation to construct the Acacia Project and that OWNER shall not be subject to any penalty nor shall CITY be entitled to any legal or equitable remedy, including, without limitation, a claim for specific perfo rmance of this Amended and Restated Agreement, if OWNER determines not to construct the Acacia Project for any reason.
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3.4 Phasing Plan. Development of the Acacia Property shall be subject to all timing and phasing requirements established by the Development Plan.

3.5 Changes and Amendments. The parties acknowledge that refinement and further development of the Acacia Project will require Subsequent Development Approvals and may demonstrate that changes are appropriate and mutually desirable in the Existing Development Approvals. In the event OWNER finds that a change in the Existing Development Approvals is necessary or appropriate, OWNER shall apply for a Subsequent Development Approval to effectuate such change and CITY shall process and act on such application in accordance with the Existing Land Use Regulations, except as otherwise provided by this Amended and Restated Agreement including the Reservations of Authority. If approved, any such change in the Existing Development Approvals shall be incorporated herein as Exhibit “D” and may be further changed from time to time as provided in this Section. Unless otherwise required by law, as determined in CITY’s reasonable discretion, a change to the Existing Development Approvals shall be deemed “minor” and not require an amendment to this Amended and Restated Agreement provided such change does not:
(a) Alter the permitted uses of the Acacia Property as a whole; or, (b) Increase the density or intensity of use of the Acacia Property as a whole; or,
(c) Increase the maximum height and size of permitted buildings; or, (d) Delete a requirement for the reservation or dedication of land for public purposes within the Acacia Property as a whole; or, (e) Constitute a project requiring a subsequent or supplemental environmental impact report pursuant to Section 21166 of the Public Resources Code.

3.6 Reservations of Authority.

3.6.1 Limitations, Reservations and Exceptions . Notwithstanding any other provision of this Amended and Restated Agreement, the following Subsequent Land Use Regulations shall apply to the development of the Acacia Property. (a) Processing fees and charges of every kind and nature imposed by CITY to cover the estimated actual costs to CITY of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued.
(b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records, hearings, reports, recommendations, appeals and any other matter of procedure.
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(c) Regulations, policies, and rules governing construction standards and specifications including, without limitation, the CITY’s Building Code, Plumbing Code, Mechanical Code, Electrical Code, Fire Code and Grading Code. (d) Regulations imposing Developmen t Exactions; provided, however, that no such subsequently adopted Development Exaction shall be applicable to development of the Acacia Property unless such Development Exaction is applied uniformly to development, either throughout the CITY or within a de fined area of benefit which includes the Acacia Property. No such subsequently adopted Development Exaction shall apply if its application to the Acacia Property would physically prevent development of the Acacia Property for the uses and to the density or intensity of development set forth in the Development Plan. In the event any such subsequently adopted Development Exaction fulfills the same purposes, in whole or in part, as the fees set forth in Section 4 of this Amended and Restated Agreement, CITY shall allow a credit against such subsequently adopted Development Exaction for the fees paid under Section 4 of this Amended and Restated Agreement to the extent such fees fulfill the same purposes.
(e) Regulations which may be in conflict with the Developm ent Plan, but which are reasonably necessary to protect the public health and safety. To the extent possible, any such regulations shall be applied and construed so as to provide OWNER with the rights and assurances provided under this Amended and Restated Agreement.
(f) Regulations which are not in conflict with the Development Plan. Any regulation, whether adopted by initiative or otherwise, limiting the rate or timing of development of the Acacia Property shall be deemed to conflict with the Development Plan and shall therefore not be applicable to the development of the Acacia Property.

3.6.2 Subsequent Development Approvals . This Amended and Restated Agreement shall not prevent CITY, in acting on Subsequent Development Approvals, from applying Subsequent Land Use Regulations which do not conflict with the Development Plan, nor shall this Amended and Restated Agreement prevent CITY from denying or conditionally approving any Subsequent Development Approval on the basis of the Existing Land Use Re gulations or any Subsequent Land Use Regulation not in conflict with the Development Plan.

3.6.3 Modification or Suspension by State or Federal Law. In the event that State or Federal laws or regulations, enacted after the Effective Date of this Amended an d Restated Agreement, prevent or preclude compliance with one or more of the provisions of this Amended and Restated Agreement, such provisions of this Amended and Restated Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations, provided, however, that this Amended and Restated Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not rende r such remaining provisions impractical to enforce. In the event OWNER alleges that such State or Federal laws or regulations preclude or prevent compliance with one or more 350

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provisions of this Amended and Restated Agreement, and the CITY does not agree, th e OWNER may, at its sole cost and expense, seek declaratory relief (or other similar non - monetary remedies); provided however, that nothing contained in this Section 3.6.3 shall impose on CITY any monetary liability for contesting such declaratory relief ( or other similar non-monetary relief).

3.6.4 Intent. The parties acknowledge and agree that CITY is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to CITY all of its police power which cannot be so limited. This Amended and Restated Agreement shall be construed, contrary to its stated terms, if necessary, to reserve to CITY all such power and authority which cannot be restricted by contract.

3.7 Public Works. If OWNER is required by this Amended and Restated Agreement to construct any public works facilities which will be dedicated to CITY or any other public agency upon completion, and if required by applicable laws to do so, OWNER shall perform such w ork in the same manner and subject to the same requirements as would be applicable to CITY or such other public agency should it have undertaken such construction.

3.8 Provision of Real Property Interests by CITY . In any instance where OWNER is required to construct any public improvement on land not owned by OWNER, OWNER shall at its sole cost and expense provide or cause to be provided, the real property interests necessary for the construction of such public improvements. In the event OWNER is unable, after exercising reasonable efforts, including, but not limited to, the rights under Sections 1001 and 1002 of the Civil Code, to acquire the real property interests necessary for the construction of such public improvements, and if so instructed by OWNER an d upon OWNER’S provision of adequate security for costs CITY may reasonably incur, CITY shall negotiate the purchase of the necessary real property interests to allow OWNER to construct the public improvements as required by this Amended and Restated Agreement and, if necessary, in accordance with the procedures established by law, use its power of eminent domain to acquire such required real property interests. OWNER shall pay all costs associated with such acquisition or condemnation proceedings. This section 3.8 is not intended by the parties to impose upon the OWNER an enforceable duty to acquire land or construct any public improvements on land not owned by OWNER, except to the extent that the OWNER elects to proceed with the development of the Acacia P roject, and then only in accordance with valid conditions imposed by the CITY upon the development of the Acacia Project under the Subdivision Map Act or other legal authority.

3.9 Regulation by Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of CITY possess authority to regulate aspects of the development of the Acacia Property separately from or jointly with CITY and this Amended and Restated Agreement does not limit the authority of such other p ublic agencies. CITY agrees to cooperate fully, at no cost to CITY, with OWNER in obtaining any required permits or compliance with the regulations of other public agencies provided such cooperation is not in conflict with any laws, regulations or policies of the CITY. 351

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3.10 Tentative Parcel Map Extension. Notwithstanding the provisions of Section 66452.6 of the Government Code, no tentative subdivision map or tentative parcel map, heretofore or hereafter approved in connection with development of the Acacia Property, shall be granted an extension of time except in accordance with the Existing Land Use Regulations.

3.11 Vesting Tentative Maps . If any tentative or final subdivision map, or tentative or final parcel map, heretofore or hereafter approved in connection with development of the Acacia Property, is a vesting map under the Subdivision Map Act (Government Code Section 66410 et seq.) and if this Amended and Restated Agreement is determined by a final judgment to be invalid or unenforceable insofar as it grants a vested right to develop to OWNER, then and to that extent the rights and protections afforded OWNER under the laws and ordinances applicable to vesting maps shall supersede the provisions of this Amended and Restated Agreement. Except as set forth immediately above, development of the Acacia Property shall occur only as provided in this Amended and Restated Agreement, and the provisions in this Amended and Restated Agreement shall be controlling over any conflicting provision of law or ordinance concerning vesting maps.

3.12 Utilities. The Acacia Project shall be connected to all utilities necessary to provide adequate water, sewer, gas, electric, and other utility service to the Acacia Project. OWNER shall contract with the CITY for CITY-owned or operated utilities serving the Acacia Project for such prices and on such terms as may be mutually agreed to between the parties.

3.13 Effect of Original DA on Remaining Original DA Property. The Original DA shall remain effective and binding as to the Remaining Original DA Property. Without limiting the foregoing, the owner of the Remaining Original DA Property shall remain obliged to fulfill the public benefit obligations set forth in Section 4 of the Original DA, undiminished by the payment of p ublic benefit obligations under this Amended and Restated Agreement and/or under the NP Santa Ana Amended and Restated Agreement.

4. PUBLIC BENEFITS.

4.1 Intent. The parties acknowledge and agree that development of the Acacia Property will result in subs tantial public needs which will not be fully met by the Development Plan and further acknowledge and agree that this Amended and Restated Agreement confers substantial private benefits on OWNER which should be balanced by commensurate public benefits. Accordingly, the parties intend to provide consideration to the public to balance the private benefits conferred on OWNER by providing more fully for the satisfaction of the public needs resulting from the Acacia Project.

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4.2 Development Impact Fees.

4.2.1 Amount and Components of Fee(s). Development Impact Fees shall be paid by OWNER. The Development Impact Fees to be paid by OWNER shall be the amounts that are in effect at the time such amounts are due. Nothing contained in this Amended and Restated Agree ment shall affect the ability of the CITY to impose new Development Impact Fees or amend the amounts of existing Development Impact Fees.

Additionally, nothing contained in this Amended and Restated Agreement shall affect the ability of other public agencies that are not controlled by CITY to impose and amend, from time to time, Development Impact Fees established or imposed by such other public agencies, even though such Development Impact Fees may be collected by CITY.

4.2.2 Time of Payment . The fees req uired pursuant to Subsection 4.2.1 shall be paid to CITY prior to the issuance of building permits. No fees shall be payable for building permits issued prior to the Effective Date of this Amended and Restated Agreement, but the fees required pursuant to S ubsection 4.2.1 shall be paid prior to the re-issuance or extension of any building permit for which such fees have not previously been paid.

4.2.3 Credits. OWNER shall be entitled to credit against the fees required pursuant to Subsection 4.2.1 for the dedication of land, the construction of improvements or the payment of fees.

4.3 Public Benefit Fee . Prior to the issuance of the Building Permit for any building on the Acacia Property, as consideration for the privileges conferred by this Amended and Restated Agreement, OWNER shall pay to the CITY a public benefit fee totaling $440,839. Prior to issuance of a Certificate of Occupancy for a building on the Acacia Property, as consideration for the privileges conferred by this Amended and Restated Agreement, OWNER shall pay to CITY an additional one-time public benefit fee totaling $440,839 (for a total public benefit fee payment in the amount of $881,678).

4.4 Public Benefit Fee Advance and Reimbursement . If prior to a Final Certificate of Occupancy for a building east on the Acacia Property, CITY has not issued a building permit for the development of a portion of the North Palisades Property in accordance with the Development Plan, OWNER shall advance the sum of $618,322 to the CITY. CITY shall refund to OWNER the amount of $618,322 within thirty (30) days following CITY’s issuance of a building permit for the development of a portion of the North Palisades Property in accordance with the Development Plan.

5. FINANCING OF PUBLIC IMPROVEMENTS.

If deemed appropriate, CITY and OWNER will cooperate in the formation of any special assessment district, community facilities district or alternate financing mechanism to pay for the construction and/or maintenance and operation of public infrastructure facilities required as part of the Development Plan. CITY also agrees that, to the extent any such district or other financing entity is formed and sells bonds to finance such reimbursements, OWNER may be reimbursed to the extent that OWNER spends funds 353

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or dedicates land for the establishment of public facilities. Notwithstanding the foregoing, nothing contained in this Amended and Restated Agreement shall be construed as requiring CITY or the City Council to form any such district or to issue and sell bonds.

6. REVIEW FOR COMPLIANCE.

6.1 Periodic Review . The Planning Director shall review this Amended and Restated Agreement annually, on or before the anniversary of the Effective Date, in order to ascertain the good faith compliance by OWNER with the terms of the Amended and Restated Agreement. OWNER shall submit an Annual Monitoring Report, in a form acceptable to the Planning Director, within thirty (30) days after written notice from the Planning Director. The Annual Monitoring Report shall be accompanied b y an annual review and administration fee sufficient to defray the estimated costs of review and administration of this Amended and Restated Agreement during the succeeding year.

The amount of the annual review and administration fee shall be set annually or as deemed necessary by resolution of the City Council.

6.2 Special Review. The City Council may order a special review of compliance with this Amended and Restated Agreement at any time. The Planning Director shall conduct such special reviews.

6.3 Procedure.
(a) During either a periodic review or a special review, OWNER shall be required to demonstrate good faith compliance with the terms of this Amended and Restated Agreement. The burden of proof on this issue shall be on OWNER. (b) Upon completion of a periodic review or a special review, the Planning Director shall submit a report to the City Council setting forth the evidence concerning good faith compliance by OWNER with the terms of this Amended and Restated Agreement and his or her recommended finding on that issue. (c) If the City Council finds on the basis of substantial evidence that OWNER has complied in good faith with the terms and conditions of this Amended and Restated Agreement, the review shall be concluded.
(d) If the City Council makes a preliminary finding that OWNER has not complied in good faith with the terms and conditions of this Amended and Restated Agreement, the Council may modify or terminate this Amended and Restated Agreement as provided in Section 6.4 and Section 6.5. No tice of default as provided under Section

7.4 of this Amended and Restated Agreement shall be given to OWNER prior to or concurrent with, proceedings under Section 6.4 and Section 6.5.

6.4 Proceedings Upon Modification or Termination . If, upon a finding un der Section 6.3, CITY determines to proceed with modification or termination of this Amended and Restated Agreement, CITY shall give written notice to OWNER of its intention to do so. The notice shall be given at least ten calendar days prior to the schedu led hearing and shall contain:
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(a) The time and place of the hearing;
(b) A statement as to whether CITY proposes to terminate or to modify this Amended and Restated Agreement; and,
(c) Such other information as is reasonably necessary to inform OWNER of the nature of the proceeding.

6.5 Hearing on Modification or Termination . At the time and place set for the hearing on modification or termination, OWNER shall be given an opportunity to be heard.

OWNER shall be required to demonstrate good faith compliance with the terms and conditions of this Amended and Restated Agreement. The burden of proof on this issue shall be on OWNER. If the City Council finds, based upon substantial evidence, that OWNER has not complied in good faith with the terms or conditions of this Amended and Restated Agreement, the City Council may terminate this Amended and Restated Agreement or modify this Amended and Restated Agreement to impose such conditions as are reasonably necessary to obtain compliance with the terms of this Amende d and Restated Agreement. The decision of the City Council shall be final, subject only to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure.

6.6 Certificate of Agreement Compliance. If, at the conclusion of a Periodic or Special Review, OWNER is found to be in compliance with this Amended and Restated Agreement, CITY shall, upon written request by OWNER, issue a Certificate of Agreement Compliance (“ Certificate”) to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the Planning Director and City Council that (1) this Amended and Restated Agreement remains in effect and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain informa tion necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder.

Whether or not the Certificate is relied upon by assignees or other transferees or OWNER, CITY shall not be bound by a Certificate if a default existed at the time of the Periodic or Special Review but w as concealed from or otherwise not known to the Planning Director or City Council.

7. DEFAULT AND REMEDIES.

7.1 Remedies in General . It is acknowledged by the parties that CITY would not have entered into this Amended and Restated Agreement if it were to b e liable in damages under this Amended and Restated Agreement, or with respect to this Amended and Restated Agreement or the application thereof.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Amended and Restated Agreement, except that CITY shall not be liable in damages to OWNER, or to any successor in interest of OWNER, or to any other person, and OWNER covenants not to sue for damages or 355

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claim any damages against CITY or it s agents, employees, officers, attorneys, and representatives:
(a) For any breach of this Amended and Restated Agreement or for any cause of action which arises out of this Amended and Restated Agreement; or (b) For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Amended and Restated Agreement; or (c) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Amended and Restated Agreement.

7.2 Specific Performance. Except as set forth in Section 3.3, above, the parties acknowledge that money damages and remedies at law generally are inadequate and specific performance and other non-monetary relief are particularly appropriate remedies for the enforcement of this Amended and Restated Agreement and should be available to all parties for the following reasons:
(a) Money damages are unavailable against CITY as provided in Section 7.1 above.
(b) Due to the size, nature and scope of the project, it may not be practical or possible to restore the Acacia Property to its natural condition once implementation of this Amended and Restated Agreement has begun. After such implementation, OWNER may be foreclosed from other ch oices it may have had to utilize the Acacia Property or portions thereof. OWNER has invested significant time and resources and performed extensive planning and processing of the Acacia Project in agreeing to the terms of this Amended and Restated Agreement and will be investing even more significant time and resources in implementing the Acacia Project in reliance upon the terms of this Amended and Restated Agreement, and it is not possible to determine the sum of money which would adequately compensate OWNER for such efforts.

7.3 Release. Except for non-damage remedies, including the remedy of specific performance and judicial review as provided for in Section 6.5, OWNER, for itself, its successors and assignees, hereby releases the CITY, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or ordinance which seeks to impose any other liability or damage, whatsoever, upon the CITY because it entered into this Amended and Restate d Agreement or because of the terms of this Amended and Restated Agreement.

7.4 Termination or Modification of Amended and Restated Agreement for Default of OWNER. Subject to the provisions contained in Subsection 6.5 herein, CITY may terminate or modify t his Amended and Restated Agreement for any failure of OWNER to perform any material duty or obligation of OWNER under this Amended and 356

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Restated Agreement, or to comply in good faith with the terms of this Amended and Restated Agreement (hereinafter referred to as “default”); provided, however, CITY may terminate or modify this Amended and Restated Agreement pursuant to this Section only after providing written notice to OWNER of default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within 60 days after the effective date of such notice or, in the event that such default cannot be cured within such 60 day p eriod but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such 60 day period and to diligently proceed to complete such actions and cure such default.

7.5 Termination of Amended and Restated Agree ment for Default of CITY .

OWNER may terminate this Amended and Restated Agreement only in the event of a default by CITY in the performance of a material term of this Amended and Restated Agreement and only after providing written notice to CITY of default setting forth the nature of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within 60 days after the effective date of such notice o r, in the event that such default cannot be cured within such 60 day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such 60 day period and to diligently proceed to complete such actions and cure such default.

8. THIRD PARTY LITIGATION.

8.1 General Plan Litigation . CITY has determined that this Amended and Restated Agreement is consistent with the General Plan, and that the General Plan meets all requirements of law. OWNER has reviewed the General Plan and concurs with CITY’s determination.

CITY shall have no liability in damages under this Amended and Restated Agreement for any failure of CITY to perform under this Amended and Restated Agreement or the inability of OWNER to develop the Acacia Property as contemplated by the Development Plan of this Amended and Restated Agreement as the result of a judicial determination that on the Effective Date, or at any time thereafter, the General Plan, or portions thereof, are invalid or inadequate or not in compliance with law.

8.2 Third Party Litigation Concerning Amended and Restated Agreement .

OWNER shall defend, at its expense, including reasonable attorneys’ fees, indemnify, and hold harmless CITY, its agents, officers and employees from any c laim, action or proceeding against CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Amended and Restated Agreement or the approval of any permit granted pursuant to this Amended and Restated Agreement. CITY shall promptly notify OWNER of any such claim, action or proceeding, and CITY shall cooperate in the defense. If CITY fails to promptly notify OWNER of any such claim, action or proceeding, or if CITY fails to cooperate in the defense, OWNER shall not the reafter be responsible to defend, indemnify, or hold harmless CITY. CITY may in its discretion participate in the defense of any such claim, action or proceeding.
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8.3 Indemnity. In addition to the provisions of 8.2 above, OWNER shall indemnify and hold CI TY, its officers, agents, employees and independent contractors free and harmless from any liability whatsoever, based or asserted upon any act or omission of OWNER, its officers, agents, employees, subcontractors and independent contractors, for property damage, bodily injury, or death (OWNER’s employees included) or any other element of damage of any kind or nature, relating to or in any way connected with or arising from the activities contemplated hereunder, including, but not limited to, the study, design, engineering, construction, completion, failure and conveyance of the public improvements, save and except claims for damages arising through the sole active negligence or sole willful misconduct of CITY. OWNER shall defend, at its expense, including r easonable attorneys’ fees, CITY, its officers, agents, employees and independent contractors in any legal action based upon such alleged acts or omissions.

CITY may in its discretion participate in the defense of any such legal action.

8.4 Environmental As surances. OWNER shall indemnify and hold CITY, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of OWNER, its officers, agents, employees, subcontractors, and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Acacia Property, including, but not limited to, soil and groundwater conditions, and OWNER shall defend, at its expense, including reasonable attorneys’ fees, CITY, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. CITY may in its discretion participate in the defense of any such action.

8.5 Reservation of Rights . With respect to Sections 8.2, 8.3 and 8.4 herein, CITY reserves the right to either (1) approve the attorney(s) which OWNER selects, hires or otherwise engages to defend CITY hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense, provided, however, that OWNER shall reimburse CITY forthwith for any and all reasonable expenses incurred for such defense, including reasonable attorneys’ fees, upon billing and accounting therefor.

8.6 Survival. The provis ions of this Sections 8.1 through 8.6, inclusive, shall survive the termination of this Amended and Restated Agreement.

9. MORTGAGEE PROTECTION.

9.1 Encumbrances. The parties hereto agree that this Amended and Restated Agreement shall not prevent or limit OWNER, in any manner, at OWNER’s sole discretion, from encumbering the Acacia Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Acacia Property. CITY a cknowledges that the lenders providing such financing may require certain Amended and Restated Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in go od faith any such request for interpretation or modification. CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of th is Amended and Restated 358

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Agreement. Any Mortgagee of the Acacia Property shall be entitled to the following rights and privileges:
(a) Neither entering into this Amended and Restated Agreement nor a breach of this Amended and Restated Agreement shall defea t, render invalid, diminish or impair the lien of any mortgage on the Acacia Property made in good faith and for value, unless otherwise required by law.
(b) The Mortgagee of any mortgage or deed of trust encumbering the Acacia Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER’s obligations under this Amended and Restated Agreement.
(c) If CITY timely receives a request from a Mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Amended and Restated Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Amended and Restated Agreement.
(d) Any Mortgagee who comes into possession of the Acacia Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Acacia Property, or part thereof, subject to the terms of this Amended and Restated Agreement. Notwithstanding any other provision of this Amended and Restated Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Amended and Restated Agreement to perform any of OWNER’s obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY , the performance thereof shall continue to be a condition precedent to CITY’s performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Section 2.4 of this Amended and Restated Agreement.

9.2. Deposit of Legal Defense Costs. In the event of any litigation or legal challenge filed against CITY as described in this Section 9, then within twenty (20) calendar days following written demand by CITY therefor, Owner shall deposit with CITY funds into a deposit account maintained by CITY (“ Fund”) to reimburse CITY for CITY’s costs and expenses, including without limitation attorney’s fees, ultimately incurred by CITY to defend any such claim, action, or proceeding. The initial deposit shall be the sum of fifty thousand dollars ($50,000). The Fund, once established, shall at all times contain an amount necessary to cover not less than three (3) months of budgeted or anticipated expenditures by CITY relating to CITY’s defense of such claim, action, or proceeding , including any and all appeals from decisions related thereto, as such budgeted or anticipated expenditures are determined by CITY in its sole and absolute discretion. For such purposes, CITY may from time to time, in CITY’s sole and absolute discretion, make written demand upon Owner for deposit of additional funds by Owner into the Fund, in 359

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which event Owner shall deposit such additional funds into the Fund within twenty (20) calendar days following written demand by CITY.

10. MISCELLANEOUS PROVISIONS.

10.1 Recordation of Amended and Restated Agreement . This Amended and Restated Agreement and any amendment or cancellation thereof shall be recorded with the San Bernardino County Recorder by the City Clerk within the period required by Section 65868.5 of the Government Code. If the parties to this Amended and Restated Agreement or their successors in interest amend or cancel this Amended and Restated Agreement as provided for herein and in Government Code Section 65868, or if the CITY terminates or modifie s the agreement as provided for herein and in Government Code Section 65865.1 for failure of the applicant to comply in good faith with the terms or conditions of this Amended and Restated Agreement, the City Clerk shall have notice of such action recorded with the San Bernardino County Recorder.

10.2 Entire Agreement. This Amended and Restated Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written representations, understandings or ancillar y covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or d etermine the terms or conditions of this Amended and Restated Agreement.

10.3 Severability. If any term, provision, covenant or condition of this Amended and Restated Agreement shall be determined invalid, void or unenforceable, the remainder of this Amended and Restated Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Amended and Restated Agreement. Notwithstanding the foregoing, the provision of the Public Benefits set forth in Section 4 of this Amended and Restated Agreement, including the payment of the fees set forth therein, are essential elements of this Amended and Restated Agreement and CITY would not have entered into this Amended and Restated Agreement but for such provisions, and therefore in the event such provisions are determined to be invalid, void or unenforceable, this entire Amended and Restated Agreement shall be null and void and of no force and effect whatsoever.

10.4 Governing Law; Interpretation . This Amended and Restated Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Amended and Restated Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Amended and Restated Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.
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10.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Amended and Restated Agreement.

10.6 Singular and Plural. As used herein, the singular of any word includes the plural.

10.7 Joint and Several Obligations. If at any time during the term of this Amended and Restated Agreement the Acacia Property is owned, in whole or in part, by more than one owner, all obligations of such owners under this Amended and Restated Agreement shall be joint and several, and the default of any such owner shall be the default of all such owners. Notwiths tanding the foregoing, no owner of a single lot which has been finally subdivided and sold to such owner as a member of the general public or otherwise as an ultimate user shall have any obligation under this Amended and Restated Agreement except as provided under Section 4 hereof.

10.8 Time of Essence . Time is of the essence in the performance of the provisions of this Amended and Restated Agreement as to which time is an element.

10.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Amended and Restated Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Amended and Restated Agreement thereafter.

10.10 No Third Party Beneficiaries . This Amended and Restated Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Amended and Restated Agreement.

10.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations un der this Amended and Restated Agreement is caused by floods, earthquakes, epidemics, pandemics, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party’s control, (including the party’s employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party’s control. If any such events shall occur, the term of this Amended and Restated Agreement and the time for performance by either party of any of its obligations hereunder may be extended by the written agreement of the parties for the period of time that such events prevented such performance, provided that the term of this Amended and Restated Agreement shall not be extended under any circumstances for more than five (5) years.

10.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party.

10.13 Successors in Interest . The burdens of this Amended and Restated Agreement shall be binding upon, and the benefits of this Amended and Restated 361

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Agreement shall inure to, all successors in interest to the parties to this Amended and Restated Agreement. All provisions of this Ame nded and Restated Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Acacia Property: (a) is for the benefit of and is a burden upon every portion of the Acacia Property; (b) runs with the Acacia Property and each portion thereof; and, (c) is binding upon each party and each successor in interest during ownership of the Acacia Property or any portion thereof.

10.14 Counterparts. This Amended and Restated Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.

10.15 Jurisdiction and V enue. Any action at law or in equity arising under this Amended and Restated Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Amended and Restated Agreement shall be filed and tried in the Superior Court of the County of San Bernardino, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court.

10.16 Acacia Project as a Private Undertaking . It is specifically understood and agreed by and between the parties hereto that the development of the Acacia Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an inde pendent contracting entity with respect to the terms, covenants and conditions contained in this Amended and Restated Agreement.

No partnership, joint venture or other association of any kind is formed by this Amended and Restated Agreement. The only relat ionship between CITY and OWNER is that of a government entity regulating the development of private property and the owner of such property.

10.17 Further Actions and Instruments . Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Amended and Restated Agreement and the satisfaction of the conditions of this Amended and Restated Agreement. Upon the request of either party at any time, th e other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Amended and Restated Agreem ent to carry out the intent and to fulfill the provisions of this Amended and Restated Agreement or to evidence or consummate the transactions contemplated by this Amended and Restated Agreement.

10.18 Eminent Domain. No provision of this Amended and Rest ated Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain.

10.19 Agent for Service of Process. In the event OWNER is not a resident of the State of California or it is an association, partnership or joint ve nture without a member, partner or joint venturer resident of the State of California, or it is a foreign corporation, 362

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then in any such event, OWNER shall file with the Planning Director, upon its execution of this Amended and Restated Agreement, a designa tion of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Amended and Restated Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon OWNER. If for any reason service of such process upon such agent is not feasible, then in such event OWNER may be personally served with such process out of this County and such service shall constitute valid service upon OWNER. OWNER is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. OWNER for itself, assigns and successors hereby waives the provisions of the Hague Convention (Convention on the Service Abroad of Judicial and Extra Judicial Documents in Civil or Commercial Matters, 20 U.S.T. 361, T.I.A.S. No. 6638).

10.20 Estoppel Certificate . Within th irty (30) business days following a written request by any of the parties, the other party shall execute and deliver to the requesting party a statement certifying that (i) either this Amended and Restated Agreement is unmodified and in full force and effe ct or there have been specified (date and nature) modifications to the Amended and Restated Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Amended and Restated Agreemen t or that the responding party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Amended and Restated Agreement is in full force and effect without modification except as may be represented by the requesting party and that there are no uncured defaults in the performance of the requesting party, except as may be represented by the requesting party. OWNER shall pay to CITY all costs incurred by CITY in connection with the issuance of estoppel certificates under this Section 10.20 prior to CITY’s issuance of such certificates.

10.21 Authority to Execute. The person or persons exe cuting this Amended and Restated Agreement on behalf of OWNER warrants and represents that he or she/they have the authority to execute this Amended and Restated Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind OWNER to the performance of its obligations hereunder.

IN WITNESS WHEREOF, the parties hereto have executed this Development Amended and Restated Agreement on the last day and year set forth below.

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OWNER

ACACIA REAL ESTATE GROUP, INC.,
a California corporation

By:

David Pittman
Its: President

Dated:

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ACKNOWLEDGMENT

A notary public or other officer completing
this certificate verifies only the identity of
the individual who signed the document to
which this certificate is attached, and not
the truthfulness, accuracy, or validity of
that document.

State of California
County of )

On before me,
______________________________
_______
(insert name and title of the
officer)

personally appeared
_________________________________________________________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________ (Seal)

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CITY:

CITY OF FONTANA, a California
municipal corporation

By:_____________________________
Acquanetta Warren, Mayor

Dated: __________________

By: ____________________________
Matthew C. Ballantyne, City Manager

ATTEST:

By:_____________________________
Germaine Key, City Clerk

APPROVED AS TO LEGAL FORM:

BEST BEST & KRIEGER LLP

________________________________
City Attorney
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ACKNOWLEDGMENT

State of California
County of )

On before me,
______________________________
_______
(insert name and title of the
officer)

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _________________________________ (Seal)

5703203.2
27967-940

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EXHIBIT “A-1”

LEGAL DESCRIPTION OF THE PROPERTY

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EXHIBIT “A-2”

LEGAL DESCRIPTION OF THE ACACIA PROPERTY

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EXHIBIT “A-3”

LEGAL DESCRIPTION OF THE NORTH PALISADES PROPERTY

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EXHIBIT “A-4”

LEGAL DESCRIPTION OF THE REMAINING ORIGINAL DA PROPERTY

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EXHIBIT “B”

MAP SHOWING PROPERTY AND ITS LOCATION

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EXHIBIT “C”

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

[SEE FOLLOWING PAGES]

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Recording Requested by and
When Recorded Return To:

_____________________
_____________________
_____________________
_____________________

_____________________________________________________________________ (Space above this line for recorder's use only)
DOCUMENTARY TRANSFER TAX: $-0- (No consideration)

PARTIAL ASSIGNMENT AND ASSUMPTION AGREEMENT
This PARTIAL ASSIGNMENT AND ASSUMPTION AGREEMENT (the
“Agreement”) is made and entered into as of ____________ _, 202_, by and between ___________________ (“ Assignor”) and ___________________ (“Assignee”) having an address at ______________________________, with reference to the following recitals.

RECITALS

A. Assignor was the owner of approximately ____ gross acres of land area located in the City of Fontana, County of San Bernardino, State of California, more particularly described in Exhibit “A” attached hereto (“Project Site”).

B. Assignor and the City of Fontana, a California municipal corporation (“City”), are parties to that certain “First Amendment and Restatement of Development Agreement No. 23-085, Applicable to the _________ Property”, dated ______________ (the “Development Agreement”), relating to the development of the Project Site (the “Project”). The Development Agreement is recorded as instrument _________________ in San Bernardino County Official Records.

C. Assignor has transferred a portion of the Project Site, generally described as ____________________ and more particularly described in Exhibit “B ” attached hereto (the “Assigned Property”) to Assignee in accordance with the terms of a grant deed and (iv) retained ownership of the remainder of the Project Site, consisting of _____________________ (the “Retained Property”). [NTD: IF THE ASSIGNMENT

IS A FULL ASSIGNMENT, THEN PROVISIONS RELATING TO RETAINED OBLIGATIONS WILL BE REMOVED]
D. In accordance with Section 2.4 of the Development Agreement, Assignor desires to assign all rights and obligations of Assignor under the Development Agreement as to the Assigned Property (“Assigned Property Rights and Obligations”) 374

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and (ii) retain, as the owner of the Retained Property, all remaining obligations under the Development Agreement (the “Retained Property Rights and Obligations”).

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1. Effective Date. This Agreement shall not be deemed to be effective unless and until the transfer of title to the Assigned Property from Assignor to Assignee occurs, as evidenced by the recordation of a grant deed in the San Bernardino County Official Records conveying the Assigned from Assignor to Assignee (the date of recordation of such grant deed, the “Effective Date”).

2. Assignment of Development Agreement. Assignor does hereby sell, transfer, assign, convey and deliver to Assignee all of Assignor's rights, title, obligations, and interests in the Assigned Property Rights and Obligations. This Agreement is only intended to assign the Assigned Property Rights and Obligations and does not assign any other rights or obligations under the Development Agreement. Assignor makes no representation or warranties, express or implied, to Assignee concerning the Development Agreement, except as provided herein.

3. Assumption of Responsibilities. Assignee hereby assumes, as of the Effective Date, the Assigned Property Rights and Obligations and agrees to observe and fully perform all of the duties and obligations of Assignor under the Development Agreement with respect to the Assigned Property Rights and Obligations and to be subject to all of the terms and conditions of the Development Agreement with respect to the Assigned Property Rights and Obligations, in each case to the extent arising on or after the Effective Date. Assignor and Assignee acknowledge and agree that, from and after the Effective Date, Assignee shall be the “Owner” under the Development Agreement with respect to the Assigned Property and the Assigned Property Rights and Obligations.

4. Amendments. Any amendments or modifications to this Agreement must be in writing, signed by duly authorized representatives of each of the parties hereto, acknowledged and approved by the City, and recorded in the Official Records for San Bernardino County, California.

5. Governing Law; Venue. This Agreement and the legal relations of the parties hereto shall be governed by and construed and enforced in accordance with the laws of the State of California, without regard to its principles of conflicts of law. All rights and obligations of the Parties under this Assignment are to be performed in the City of Fontana, and the County of San Bernardino shall be the venue for any legal action or proceeding that may be brought, or arise out of, in connection with or by reason of this Agreement. 375

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6. Severability. Any provision of this Agreement which shall prove to be invalid, void, or illegal shall in no way affect, impair, or invalidate any other provision hereof and such other provisions shall remain in full force and effect.

7. Further Assurances. Each party shall execute and deliver such other certificates, agreements and documents and take such other actions as may be reasonably required to consummate or implement the transactions contemplated by this Agreement provided the same does n ot increase such party’s obligations and liabilities or reduce such party’s rights under this Agreement and/or the Development Agreement other than to a de minimis extent.

8. Authority of Signatories to Bind Principals. The persons executing this Agreement on behalf of their respective principals represent that (i) they have been authorized to do so and that they thereby bind the principals to the terms and conditions of this Agreement and (ii) their respective principals are properly and duly organized and existing under the laws of __________, and are permitted to do business in, the State of California.

9. No Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof.

10. Interpretation. The parties acknowledge that this Agreement is the product of negotiation and compromise on the part of both parties, and the parties agree that since both have participated in the negotiation and drafting of this Agreement, this Agreement shall not be construed as if prepared by one of the parties, but rather according to its fair meaning as a whole, as if both parties had prepared it.

11. Recordation. Assignor and Assignee shall record this Agreement against the Assigned Property in the Official Records contemporaneously with the recordation of the instrument conveying title to the Assigned Property to Assignee and prior to the lien of any security interest that will encumber the Assigned Property after the conveyance.

12. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. [SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date set forth above.

“Assignor”

______________________________
a _________ limited liability company

By: _______________________________
Name: ____________________________
Title: ______________________________
“Assignee”

______________________________
a ___________ limited liability company

By: _______________________________
Name: ____________________________
Title: ______________________________
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EXHIBIT “A”

Project Site Legal Description

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ATTACHMENT NO. 1

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Fontana City CouncilMay 26, 2026

Fontana City Council
May 26, 2026