Ontario City Council
September 6, 2022

Forbes
Entrepreneurship
Award 2015
Four ways to decrease
your venture's burn rate
Jan 1, 2016 publication

Education/Courses/Certifications
Awais Dilawer, B.E, MBA eq, FMVA, CMSA, CBCA, IM&A,
M&AP, American Appraisal Institute Certified, CFA
Investment Foundations Certificate Holder, Completed
Level I in 2021 (1st Attempt), CFA Level II (Candidate) Over fifteen years of experience in investment, venture capital, business management and consulting with a demonstrated record of consistent achievements across different organizations globally.

Specialties include feasibility and due diligence of investment opportunities, business strategy and planning, investment strategy development, deal negotiation and structuring.
28 Certifications
276
Key Success
Resume of the Analyst
Veritas Development Advisors,
LLC. – Senior Analyst
Consultant roles in different
transactions across USA, Europe,
Middle East and Asia Pacific.

Senior Investment Associate for
private equity and venture
capital investments
Different roles in sectors: FMCG,
power & gas, manufacturing,
petrochemical and refineries.

Professional
History
Present
Jan 2010 to Present
Jan 2010 to March 2018
Sep 2005 to 2010
― Prepared and supervised feasibility study, due diligence and business plan of various complexities across USA, EU and other regions. ― Built and recommended investment committee and board in managing real estate portfolio of million US Dollars in value (commercial malls, hospitals, stadiums, hotels, residential apartments, villas, etc.) ― Experienced in performing in depth transaction financial and commercial diligence using internal and external resources
― Assessed risk and impact analysis for different business opportunities and proposing solutions to deal with potential threatening investment risks. ― Analyzed, reviewed and evaluated reports in the area of ICT, Renewable Energy, Life Sciences Health Care and manufacturing sector in the deals pipeline
― Conducted equity valuations both for transactions and financial reporting purposes
― Developed Investment MEMO’s and deal reports for board and potential investors especially for the private equity and venture capital funds. ― Advised clients on financial feasibilities of large projects and conducted market research studies.
― Hands on experience in preparation of legal documents in coordination with internal and external resources.
― Experienced in identifying and sourcing investments in private equity and venture capital funds.
― Managed a team of different resources and contributed to their professional development. Extensive experience of talent management, coaching, development and mentoring.
― Led equity investment projects, help structuring and negotiating transactions from start to close.

Key Experience
Led due diligence and feasibility study of a biotech based in California. The transaction involved arranging financing. The target company listed on Nasdaq with the market cap of
more than a billion dollar.

Worked on the due diligence and feasibility study on an electric vehicle startup with the transaction valued more than $100 million. The target company is listed in Hong Kong Exchange with the market cap of 400 million dollar.

Successfully conducted feasibility study and due diligence of a Dutch based EV charging station company for a private equity fund. The Company is listed on Amsterdam Exchange with the market cap of 170 million dollar..
29 277
Resume of the Analyst
Key Projects throughout his career include:
30 Manufacturing:
• Battery Manufacturing, WA
• Operational Assessment Steel Plant, ME
• Dairy Farm, GA
• Shrimp Farm, AZ,
• Solar Cells Manufacturing, CA
• Aseptic Packaging Food & Beverage Plant, WV
• Bunker Fuel Oil Processing Plant, TX
• Oil and Gas Drill Fuel Wastewater Plant, OH
• Dairy Biogas Digester, WI, TX, AZ
• Yard Waste Disposal and Composting Facility, FL
• Charcoal Manufacturing, OK
• Aluminum processing facility, TX
• Hydroponics, TX, PR
• Concrete Manufacturing Plant, USVI
• Water Bottling Factory, ME
• Chip Manufacturing, ME
• Biofuel Processing, HI
• Medical Waste, RI
• Oil and Gas Wells, KY
• Frac Sand Facility, OK
• Pipe factory, EU
• Automotive, ME
• Solar Panels Coating, EU
Healthcare & Life science:
• Addiction Center, MD, PA
• Biotech, CA
• Assisted Living & Memory Care, WI, UT, TX, FL, MI, CO • Therapy and Skilled Day School Facility, FL
• Child Day Care, NV
• Hospitals, LA
• Biosimilars Manufacturing, MA
• Vaccine Manufacturing Plant, WA
• Diabetes Center, ME
• Health Information System, MO
Real Estate:
• Self Storage & RV Storage, NV, PA
• Outdoor Soccer Facility, NM
• Car Wash, CA, NV, TX
• Multicomplex Apartments, TX, LA, CA
• Leadership School, UT
• Equestrian Center, TX
• Cold Storage, FL, WI
• Primrose Schools, MD, VA
• Historic Park, IL, KY
• Indoor Sports Complex, NC, NM, TX, ID
• Gas Station with Convenience Store, UT, CA
• Nursey and Landscaping, MD
• RV Park, FL
• Indoor Shooting Range, VA
• Golf Sports Complex, CO
• Distribution & Shipping Facility, TX
• Marina, KY
• Mobile Home Park, LA
• Neighborhood Shopping Center, FL
• Squash Academy, NJ
• Private School, WA, EU
• Stadium, ME
Restaurant:
• Culver, AZ
• Independent Restaurants, UT, NM
• Buffalo Wings, KY
• Dairy Queen, GA
• Cinnabon, ME
• McDonald, ME
• Subway, ME
Hotels & Resorts:
• Baymont Inn & Suites, AZ
• Hilton Hotel, PA, CA, AZ
• Best Western, CA,
• Best Western Plus, TX
• Fairfield Inn& Suites, CA
• Mainstay Suites, TN
• Holiday Inn, TX
• Motel 6, CA
• Independent Hotels, CA, FL, UT
• Resort, NY
• Dual Branded Hotel, AL
• Banquet Hall, CA
• Event Center, TX
• Comfort Suites, CA
• Hampton Inn & Suites, CA
• Marriot, CA
278
31 Contact Us
Veritas Development Advisors, LLC (“VDA”)
Steve Alves, Managing Partner
Email: [email protected]
Ph: 240-626-1209
279
Case Planner: Luis E. Batres Hearing Body Date Decision Action Planning Director
Approval:

DAB 2/7/22 Approved Recommend
PC 2/22/22 Final
/Recommend
Submittal Date: 6/4/21 CC CUP- Final
FILE NOS: PCUP21-009 and PDEV21-021
SUBJECT: A Conditional Use Permit (File No. PCUP21-009) to establish and operate a limited-service hotel and a Development Plan (File No. PDEV21-021) to construct a 4-story, 128-room Extended Stay hotel on 1.83 acres of land located at 5060 East Fourth Street, within the Freeway Commercial land use district of The Exchange Specific Plan (APN:
0238-012-30); submitted by Roger Barbosa. City Council action is required for File No.

PCUP21-009.

PROPERTY OWNER: Jara Hospitality
RECOMMENDED ACTION: That the Planning Commission consider and approve File No.

PDEV21-021, and recommend approval to City Council for File No. PCUP21-009, pursuant to the facts and reasons contained in the staff report and attached resolutions, and subject to the conditions of approval contained in Attachment A to each resolution.

PROJECT SETTING: The Project site is comprised of 1.83 acres of land located at 5060 East Fourth Street , within the Freeway
Commercial land use district of The
Exchange Specific Plan and is depicted
in Figure 1: Project Location . The site is
bounded by Interstate 15 to the west,
Fourth Street to the north, Southern
California Edison (“SCE”) transmission
lines to the east and Ontario Mills Parkway
to the south. The surrounding area is
currently developed with Arizona Tile,
Baker’s Drive -Thru Restaurant, AM/PM
Service Station, a multi -tenant retail
building that includes WaBa Grill, and a
four-building industrial business park
located within the southern portion of the
specific plan . The existing surrounding
land uses, zoning, and general plan and
specific plan land use designations are
summarized in the “Surrounding Zoning &
Figure 1: Project Location
303 East B Street, Ontario, California 91764 Phone: 909.395.2036 / Fax: 909.395.2420

PLANNING COMMISSION

STAFF REPORT
February 22, 2022
Approved
280
Planning Commission Staff Report
File Nos.: PCUP21-009 and PDEV21-021
February 22, 2022

Land Uses” table located in the Technical Appendix of this report.

PROJECT ANALYSIS:

(1) Background — In 2003, the City approved The Exchange Specific Plan, a 23.60 - acre master plan for the Project area. The Exchange Specific Plan is composed of two land use districts, including the Freeway Commercial land use district , which comprises the northerly 12.03 acres of the Specific Plan , and the Industrial Park land use district , which comprises the southerly 11.57 acres of the Specific Plan (see Exhibit B —The Exchange Specific Plan Land Use Plan, attached).

In 2007, two development plans were approved within The Exchange Specific Plan master plan area, including a 15,705 square foot sit-down restaurant (Blue Sandias) and a 74-room, 3-story hotel (Candlewood Suites). Blue Sandias and Candlewood Suites were never constructed due to a downturn in the economy.

On June 4, 2021, the Applicant submitted a Conditional Use Permit application (File No.

PCUP21-009) requesting approval to establish and operate a limited -service hotel land use, together with a Development Plan application (File No . PDEV21-021) requesting approval to construct a 4-story, 128-room Extended Stay hotel on the Project site.

Guest amenities proposed for the Project include:

▪ Swimming pool with an accompanying pool side cabana;
▪ Outdoor seating area;
▪ Porte-cochere for arriving guests;
▪ Meeting rooms (two rooms totaling 1,850 square feet) and adjacent outdoor gathering area (400 square feet);
▪ Fitness room (331 square feet);
▪ Café/Snack room (331 square feet);
▪ Guest laundry facilities (437 square feet); and
▪ On-site business center, including office equipment (copying, printer, and scanner) and supplies

Guestrooms range from 2 77 square feet (Queen Suites) to 432 square feet (Double Queen Suites) in area. Four room configurations are proposed:

▪ Queen Suites (61 rooms)
▪ Double Queen Suites (61 rooms)
▪ ADA Queen Suites (3 rooms)
▪ ADA Double Queen Suites (3 rooms)

(2) Conditional Use Permit — The City’s Development Code requires that all new hotels must be reviewed under concurrently filed Conditional Use Permit and Development Plan applications. The purpose of the Conditional Use Permit application 281
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and review is to ensure that the proposed use will be operated in a manner consistent with all local regulations, and to ensure the use will not be detrimental to the public health, safety, or welfare, or materially injurious to uses, properties or improvements in the vicinity. More specifically, in the case of hotels, the Conditional Use Permit is required to establish the Project’s market feasibility and ensure on -going compliance with the minimum amenity package required by the Development Code.

(a) Market Demand — As a requirement of Conditional Use Permit submittal, the developer of a hotel must submit a Market Feasibility Study, which demonstrates that the local market can support the development of a new hotel. For this Application, Veritas Development Advisors has prepared a Market Feasibility Study (dated October 21, 2021), which includes analysis and market research related to the proposed Project.

The study found that the local market can support a limited-service hotel on the Project site. The study’s conclusions are based primarily upon the growth in the Inland Empire, the area’s proximity to the Los Angeles area, the Ontario Convention Center, the Ontario International Airport, California Speedway in Fontana, and the Project’s proximity to the Ontario Mills Mall (see Exhibit K —Hotel Market Study, attached ). The Market Study includes an analysis of other similar hotels in the area, long -term viability, and overall demand due to new businesses and activities in and around the City.

(b) Minimum Amen ity Package —The Development Code provides that no Conditional Use Permit shall be approved for a hotel, motel, residence inn, or other similar traveler accommodation, unless certain specific amenities are provided, as follows

▪ Each guestroom must include voicemail, wired or wireless internet access, desk with chair, hairdryer, retractable magnifying (10X) and lighted makeup mirror, iron and ironing board, high definition television, and alarm clock or wake-up service.

Compliance with these requirements will be verified by the Planning Department during Building Department plan check and at time of final building inspection. ▪ For limited-service hotels, meeting space equal to 15 square feet per guestroom must be provided, requiring that a minimum of 1 ,920 square feet of meeting/gathering area must be provided for the Project. The Project exceeds the minimum requirement, incorporating a total of 2,250 square feet of available meeting/gathering area.
▪ Both active and passive leisure amenities are required, at a minimum, a swimming pool, whirlpool/spa or furnished cabana, and fitness room. The Project exceeds the minimum requirement, providing a pool /spa, poolside cabana, outdoor seating areas, and a fitness room.
▪ A guest courtesy lounge for the serving of light meals and snacks is required to be provided in conjunction with limited-service hotels. A 331-square-foot café/snack room is provided for hotel guests, meeting the minimum requirement.

It is the determination of Planning Department staff that the proposed Project has met or exceeded the minimum amenity package requirements, as stipulated by Section

5.03.250.D (Minimum Amenity Package) of the City’s Development Code. 282
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(3) Development Plan —

(a) Site Design/Building Layout. The proposed hotel is located approximately 1,000 feet south of Fourth street, with the building’s primary entrance facing north. The building is in a L -shaped configuration, which wraps around an outdoor amenity area containing the pool/spa and outdoor gathering/seating areas ( see Exhibit A —Project Location Map, attached).

(b) Site Access/Circulation. Off-street parking is distributed along the north and west sides of the building and a guest drop -off area under a porte-cochere has been provided at the front of the building. Ample landscaped areas have been provided immediately adjacent to the hotel and throughout the off -street parking areas.

Additionally, decorative hardscape treatments have been provided at the main building entrance, throughout the pool/spa and outdoor gathering/seating areas and at the vehicle turn-around area in front of the hotel (see Figure 2: Site Plan, above).

(c) Site Access/Circulation. Primary vehicular access to the proposed hotel is provided from an existing common drive aisle that inters ects Fourth Street at a fully signalized intersection that is common with the Interstate 15 southbound exit to Fourth Street. Secondary access is provided from Ontario Mills Parkway via a common drive aisle through the industrial park to the south. Additio nally, ample maneuvering space has been provided for service. Service vehicles will be able to access the hotel along the east side of the building via a 24-foot-wide service drive.

Figure 2: Site Plan
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(d) Parking. The Project is required to provide a total of 128 off -street parking spaces, at the rate of one space per guestroom, and the Project is proposing a total of 118 spaces. The Exchange Specific Plan and the Ontario Development Code allow the Planning Commission to approve a reduction in parking, if the reduction is validated by a parking study. To support the requested reduction in parking, a parking study was prepared by Trames Solutions Inc. (see Exhibit L—Parking Study, attached). The parking study concluded that the number of parking spaces provided is adequate. The study found that the hotel will have a peak demand of 94 spaces at 8 AM on weekday s and 105 spaces at 8 AM on weekend s (see Table 1: Parking Study Peak Demand, below). In addition, the City’s Traffic Manager has reviewed the parking study and is in support of the study’s findings. However, to mitigate any potential parking shortages in the future, staff has conditioned the Project so that, if additional parking is found to be necessary, the Appli cant must enter into a reciprocal parking agreement with adjacent developments to provide additional parking.

Table 1: Parking Study Peak Demand
Demand Peak Time Required Parking Parking Provided
Weekdays: 8 AM 94 118
Weekends: 8 AM 105 118

(e) Architecture. The Extended Stay hotel will be a signature building. The hotel will feature a contemporary architecture style that exemplifies the high -quality architecture promoted by The Exchange Specific Plan and the Ontario Plan. Since the Project will be visible from all four sides, staff has worked closely with the architect to provide 360-degree architecture. Special attention has been given to the use of color s, massing, building form, materials, and architectural details (see Figure 3: Front Elevation, below, and Exhibit F—Building Elevations, attached).

This is exemplified by the use of:

▪ Decorative architectural towers on all four building sides; ▪ Articulated roof line;
▪ Articulated footprint;
▪ Decorative cornice treatment along the edge of the architectural towers; ▪ Vertical and horizontal reveal lines;
▪ Variation in building massing;
▪ Cantilevered building elements;
▪ Incorporation of insets and pop-outs;
▪ Extensive use of glass;
▪ Smooth-painted walls;
▪ Decorative lighting fixtures;
▪ Fiber cement vertical siding panels;
▪ Decorative metal wall panels;
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▪ Decorative painted steel canopies along the north elevation; ▪ Incorporation of a stone veneer along the full height of the first floor (French Limestone);
▪ Incorporation of decorative eyebrows over key windows; and ▪ Color blocking implementing exterior colors of varying tone, shade, and brightness.

(f) Landscaping. The Exchange Specific Plan requires 15 percent of the site to be landscaped and the Applicant proposes to landscape 15.5 percent of the Project site. Palm trees, accent trees, and ground cover have been selected to enhance the Project site, along with Aust ralian Willow, Brisbane Box, Coast Live Oak, Date Palms, Agave Blue Clone, Dwarf Myrtle, Amazing Red Flax, Indian Hawthorn, Texas Privet, and Orange Drop Lily. To enhance the Project at night, staff has worked with the Applicant to also provide enhanced lighting at key landscape areas.

(g) Utilities (drainage, sewer). Public utilities (water and sewer) are available to serve the Project site. Additionally, the applicant has submitted a Preliminary Water Quality Management Plan (“PWQMP”), which establishes the Project’s compliance with storm water discharge/water quality requirements. The PWQMP includes site design measures that capture runoff and pollutant transport by minimizing impervious surfaces and maximizes low impact development (“LID”) best management p ractices (“BMPs”), such as retention and infiltration, bio treatment, and evapotranspiration. The PWQMP proposes an underground infiltration basin located beneath the parking lot , along the west of the hotel structure. The basin is designed to accept runoff from the building’s roof and parking lot.

COMPLIANCE WITH THE ONTARIO PLAN: The proposed Project is consistent with the principles, goals and policies contained within the Vision, Governance, Policy Plan (General Plan), and City Council Priorities compo nents of The Ontario Plan (TOP). More specifically, the goals and policies of TOP that are furthered by the proposed Project are as follows:

Figure 3: Front (North) Elevation
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(1) City Council Goals.

▪ Invest in the Growth and Evolution of the City’s Economy ▪ Operate in a Businesslike Manner
▪ Focus Resources in Ontario’s Commercial and Residential Neighborhoods

(2) Vision.

Distinctive Development:

▪ Commercial and Residential Development

➢ Development quality that is broadly recognized as distinctive and not exclusively tied to the general suburban character typical of much of Southern California.

(3) Governance.

Decision Making:

▪ Goal G1: Sustained decision-making that consistently moves Ontario towards its Vision by using The Ontario Plan as a framework for assessing choices.

➢ G1-2 Long-term Benefit . We require decisions to demonstrate and document how they add value to the community and support the Ontario Vision

(4) Policy Plan (General Plan)

Land Use Element:

▪ Goal LU2: Compatibility between a wide range of uses.

➢ LU2-6: Infrastructure Compatibility : We require infrastructure to be aesthetically pleasing and in context with the community character.

Community Economics Element:

▪ Goal CE2: A City of distinctive neighborhoods, districts, and corridors, where people choose to be.

➢ CE2-1 Development Projects . We require new development and redevelopment to create unique, high-quality places that add value to the community.

➢ CE2-2 Development Review . We require those proposing new development and redevelopment to demonstrate how their projects will create 286
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appropriately unique, functional, and sustainable places that will compete well with their competition within the region.

➢ CE2-4 Protection of Investment . We require that new development and redevelopment protect existing invest ment by providing architecture and urban design of equal or greater quality.

➢ CE2-5 Private Maintenance. We require adequate maintenance, upkeep, and investment in private property because proper maintenance on private property protects property values.

▪ Goal CE3: Decision-making deliberations that incorporate the full short -term and long-term economic and fiscal implications of proposed City Council actions. ➢ CE3-1 Fiscal Impact Disclosures. We require requests for City Council action to disclose the full fiscal impacts, including direct and indirect costs.

Safety Element:

▪ Goal S1: Minimized risk of injury, loss of life, property damage and economic and social disruption caused by earthquake-induced and other geologic hazards.

➢ S1-1 Implementation of Regulations and Standards. We require that all new habitable structures be designed in accordance with the most recent California Building Code adopted by the City, including provisions regarding lateral forces and grading.

Community Design Element:

▪ Goal CD1: A dynamic, progressive city containing distinct neighborhoods and commercial districts that foster a positive sense of identity and belonging among residents, visitors, and businesses.

➢ CD1-1 City Identity. We take actions that are consistent with the City being a leading urban center in Southern California while recognizing the diverse character of our existing viable neighborhoods.

➢ CD1-2 Growth Areas . We require development in growth areas to be distinctive and unique places within which there are cohesive design themes.

➢ CD1-3 Neighborhood Improvement. We require viable existing residential and non -residential neighborhoods to be preserved, protected, and enhanced in accordance with our land use policies.

▪ Goal CD2 : A high level of design quality resulting in public spaces, streetscapes, and developments that are attractive, safe, functional, and distinct. 287
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➢ CD2-1 Quality Architecture . We encourage all development projects to convey visual interest and character through:

• Building volume, massing, and height to provide appropriate scale and proportion;
• A true architectural style which is carried out in plan, section, and elevation through all aspects of the building and site design and appropriate for its setting; and
• Exterior building materials that are visually interesting, high quality, durable, and appropriate for the architectural style.

➢ CD2-8 Safe Design. We incorporate defensible space design into new and existing developments to ensure the maximum safe travel and visibility on pathways, corridors, and open space and at building entrances and parking areas by avoiding physically and visually isolated spaces, ma intenance of visibility and accessibility, and use of lighting.

➢ CD2-9 Landscape Design. We encourage durable landscaping materials and designs that enhance the aesthetics of structures, create, and define public and private spaces, and provide shade and environmental benefits.

➢ CD2-10 Surface Parking Areas. We require parking areas visible to or used by the public to be landscaped in an aesthetically pleasing, safe and environmentally sensitive manner. Examples include shade trees, pervious surfaces, urban run-off capture and infiltration, and pedestrian paths to guide users through the parking field.

➢ CD2-11 Entry Statements . We encourage the inclusion of amenities, signage, and landscaping at the entry to neighborhoods, commercial centers, mixed use areas, industrial developments, and public places that rei nforce them as uniquely identifiable places.

➢ CD2-12 Site and Building Signage. We encourage the use of sign programs that utilize complementary materials, colors, and themes. Project signage should be designed to effectively communicate and direct users t o various aspects of the development and complement the character of the structures.

➢ CD2-13 Entitlement Process. We work collaboratively with all stakeholders to ensure a high degree of certainty in the efficient review and timely processing of all development plans and permits.

▪ Goal CD3 : Vibrant urban environments that are organized around intense buildings, pedestrian and transit areas, public plazas, and linkages between and within developments that are conveniently located, visually appealing and safe during all hours.

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➢ CD3-1 Design . We require that pedestrian, vehicular, bicycle and equestrian circulation on both public and private property be coordinated and designed to maximize safety, comfort, and aesthetics.

➢ CD3-2 Connectivity Between Streets, Sidewalks, Walkways and Plazas. We require landscaping and paving be used to optimize visual connectivity between streets, sidewalks, walkways, and plazas for pedestrians.

➢ CD3-3 Building Entrances . We require all building entrances to be accessible and visible from adjacent streets, sidewalks, or public open spaces.

➢ CD3-5 Paving. We require sidewalks and road surfaces to be of a type and quality that contributes to the appearance and utility of streets and public spaces.

➢ CD3-6 Landscaping. We utilize landscaping to enhance the aesthetics, functionality and sustainability of streetscapes, outdoor spaces, and buildings.

▪ Goal CD5: A sustained level of maintenance and improvement of properties, buildings and infrastructure that protects the property values and encourages additional public and private investments.

➢ CD5-1 Maintenance of Buildings and Property . We require all public and privately-owned buildings and property (including trails and easements) to be properly and consistently maintained.

➢ CD5-2 Maintenance of Infrastructure . We require the continual maintenance of infrastructure.

HOUSING ELEMENT COMPLIANCE: The Project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan, as the Project site is not one of the properties in the Available Land Inventory contained in Table A-3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix.

AIRPORT LAND USE COMPATIBILITY PLAN (ALUCP) COMPLIANCE: The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan. On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan (“ALUCP”), establishing the Airport Influence Area for Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and limits future land uses and development within the Airport Influence Area , as they relate to noise, safety, airspace protection, and overflight impacts of current and future airport activity. The proposed Project is located within the Airport Influence Area of Ontario International Airport and was evaluated and 289
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found to be consistent with the policies and criteria of the ALUCP. Any special conditions of approval associated with uses in close proximity to the airport are included in the conditions of approval provided with the attached Resolution.

ENVIRONMENTAL REVIEW: The Project is categorically exempt from the requirements of the California Environmental Quality Act ( “CEQA”) pursuant to Section 15332 (Class 32, Infill Development Projects) of the CEQA Guidelines, which consists of projects characterized as infill development projec ts. Furthermore, the Project meets all of the following conditions: (a) t he Project is consistent with the applicable general plan designation and all applicable general plan policies, as well as the applicable zoning designation and regulations; (b) the proposed development occurs within city limits, on a project site of no more than five acres, and is substantially surrounded by urban uses; (c) the Project site has no value as habitat for endangered, rare, or threatened species; (d) approval of the Project will not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the Project site is adequately served by all required utilities and public services.

CONDITIONS OF APPROVAL: See attached department reports. 290
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TECHNICAL APPENDIX:

Surrounding Zoning and Land Use:

Existing Land Use General Plan
Designation Zoning Designation Specific Plan Land Use
Site Vacant Planned Commercial SP (Specific Plan) The Exchange SP / Freeway Commercial
North Multi-tenant retail &
Vacant Land Planned Commercial SP (Specific Plan) The Exchange SP / Freeway Commercial
South Vacant Land Planned Commercial SP (Specific Plan) The Exchange SP / Freeway Commercial
East SCE Transmission Lines Non-Recreational Open
Space Open Space (OS) N/A
West I-15 Freeway Right-of-way Right-of-way N/A

General Site & Building Statistics
Item Proposed Min./Max. Standard Meets
Y/N
Project Area: 1.83 Acres N/A Y
Lot/Parcel Size: 1.83 Acres N/A Y
Building Area: 56,406 Sq. Ft. N/A Y
Building Height: 53’ 55’ Y

Off-Street Parking:

Type of Use Building Area Parking Ratio Spaces
Required
Spaces
Provided
Hotel (128 Rooms) 56,406 Sq. Ft. 1 Space per Guest Room 128 118 Note: Per Parking Study Prepared 105 118
TOTAL 105 118

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Exhibit A—PROJECT LOCATION MAP
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Exhibit B—THE EXCHANGE SPECIFIC PLAN LAND USE PLAN
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Exhibit C—SITE PLAN
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Exhibit D—LANDSCAPE PLAN
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Exhibit E—POOL AREA
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Exhibit F—EXTERIOR ELEVATIONS
North Elevation
South Elevation
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Exhibit F—EXTERIOR ELEVATIONS (CONTINUED)
West Elevation
East Elevation
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Exhibit G—FIRST FLOOR
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Exhibit H—SECOND FLOOR
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Exhibit I—THIRD FLOOR
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Exhibit J—FOURTH FLOOR

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Exhibit K—HOTEL MARKET STUDY
(Document follows this page)
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for the planned construction and operation of a 128-room extended stay hotel to be located in Ontario, CA
Market Feasibility Study
October 21, 2021
304
This report is for the use of the party to whom it is addressed only and no liability is accepted to any third party for the whole or any part of its contents. It may not be reproduced, either in whole or in part, nor altered in any way, without the prior written consent of Veritas Development Advisors, LLC. The information and analysis contained in this report has been obtained from or based on information from a variety of sources generally regarded to be reliable and assumptions which are considered reasonable, and which was current at the time of undertaking market research. However, no representation is made, or responsibility is accepted by Veritas Development Advisors, LLC, in respect of the accuracy or currency of this information. Potential investors or developers are encouraged to carry out their own assessment of market potential and development feasibility.

The report and analysis does not purport to represent a formal valuation of any land or property interest and must not be construed as such. Such analysis including forward looking statements are opinions and estimates only and are based on a wide range of variables which may not be capable of being determined with accuracy. Variation in any one of these variables can have a material impact on the analysis and we draw your attention to this.

It should be noted that the estimation of future sales prices, rental levels, development and investment returns and development viability is a very problematic exercise which at best should be regarded as an indicative assessment of possibilities rather than absolute values. The process of making forward projections for such key elements involves assumptions which are acutely sensitive to changing conditions, variations in any one of which factors may significant effect the viability of a project and we draw your attention to this factor. Veritas Development Advisors, LLC does not accept any liability for negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this report other than as specified in the contract of engagement.

Effect of global and local economic conditions
The continued turmoil and instability in the financial markets is continuing to cause volatility and uncertainty in the world’s capital markets and real estate markets. In these circumstances the assessment or feasibility may be affected by rapidly changing global and local economic market conditions, socio-economic changes, political conditions and other risks.

Availability and Cost of Finance
Due to the current situation of the global and local capital markets, interest rates have been volatile there has been a significant reduction in the availability of and increase in the cost of debt to the real estate sector and the mortgage market.

Supply & Demand Analysis
The supply and demand analyses set out in the report are based on current and historic trends and may be impacted significantly by factors such as unforeseen delays in supply, decreasing demand levels and changes in investor, business and consumer sentiment as well as the outlook for economic growth at local, regional and global levels.

Demand in the Market Area
Currency volatility together with job security, economic growth changing oil prices and deteriorating employment conditions across much of the globe may impact the propensity to travel and affect the purchasing power of prospective visitors to the region. This is likely to materially impact the performance of the hospitality and retail sector in particular.

Veritas Development Advisors, LLC does not accept any liability for any changes in the market conditions which may have occurred in the time elapsed between the rendering of the report and the use of it. Nor can Veritas Development Advisors, LLC accept any liability for discrepancies between our assumptions, which lie at the basis of the report, and actual market conditions which are not available to any qualified real estate consultant as a result of the market’s inherent limited transparency. 2 Disclaimer
305
The Great Smoky Mountains
Executive Summary
306
October 21, 2021
Private and Confidential
Mr. Luis Batres, Senior Planner
City of Ontario (“Company”)
303 East B Street
Ontario, California 91764
Re: Market Feasibility Study for the planned construction and operation of a 128-room extended stay hotel to be located at 5060 East 4th Street in Ontario, CA 91764. (“Subject Project”).

Dear Mr. Batres:

The enclosed Market Feasibility Study is for the planned 128-room extended stay hotel to be located in Ontario, CA. Demand factors were analyzed in detail as presented herein. The Subject Project’s industry and its relevant leveraged structure indicates that the Company’s revenue should follow trends in the overall economy, including disposable income of end-users/consumers. Based on the analysis, the market area economy appears to be growing which indicates reasonable potential for the Subject Project.

The market area for the Subject Project appears stable. The Subject Project’s rooms are expected to be absorbed in the market area based on the STR report analysis conducted herein. Based on the supply and demand analysis (pre-COVID) within the market area, it appears as though occupancy will likely remain above 65 percent over the next five years. Analyses of the market appears to indicate that development of the Subject Project, as planned, would yield about a 0.8 percent market share in the Subject Project’s market area.

Primary and secondary research was used to carry out the analyses related to the Subject Project.

Steve Alves, Managing Partner
Veritas Development Advisors, LLC
4 Executive Summary
307
5 Statement of Work
Scope of Work
// Market Feasibility Study //

1. A complete listing of proposed facilities, amenities, and services (i.e.: number and type of rooms, meeting space square footage, recreational amenities, business services such as data ports-workstations-etc., refrigerators in room, laundry service, restaurant-coffee shop- food service, etc.);

2. History of proposed developer and potential operators (i.e.: years in business, principals, capitalizing, experience, listing of projects, number of units owned, average rates charged, occupancy rates, etc.);

3. Analysis of economic environment projecting likely future economic conditions as they relate to the operation of the subject hotel;

4. Subjects competitive market (i.e.: identification of their market, 3 and 5 year history of occupancy- average daily rate-revenue per available room trends for that market, estimated share of the market the hotel will capture during the first five years of operation, etc.);

5. Analysis of the economic impacts on existing hotel markets within Ontario (i.e.: estimate of the dilution of the market due to addition of proposed hotel, etc.). Note: new hotel projects should only be approved if competitive market occupancy remains at or above 65 percent for a five year projection period;

6. Relationship to demand generators (i.e.: airport, convention center, corporate market, shopping and entertainment);

7. Public cost/revenue projections.
308
The Great Smoky Mountains
Market Feasibility Study
309
US Economy
Gross Domestic Product (GDP)
Current Numbers
• 2nd quarter 2019: 2.1 percent
• 1st quarter 2019: 3.1 percent
Real gross domestic product (GDP) increased
at an annual rate of 2.1 percent in the second
quarter of 2019, according to the "advance"
estimate released by the Bureau of Economic
Analysis. In the first quarter, real GDP increased

3.1 percent.

The Bureau emphasized that the third-quarter
advance estimate released today is based on
source data that are incomplete or subject to
further revision by the source agency. The
"second" estimate for the third quarter, based
Analysis. Disposable personal income (DPI)
increased $69.7 billion (0.4 percent) and
personal consumption expenditures (PCE)
increased $41.0 billion (0.3 percent).

Industry Economic Accounts
Finance and insurance; retail trade; and health
care and social assistance were the leading
contributors to the increase in U.S. economic
growth in the first quarter of 2019. Overall, 16 of
22 industry groups contributed to the 3.1
percent increase in real GDP in the first quarter.

According to gross domestic product (GDP) by
the Bureau of Economic Analysis, 16 of 22
industry groups contributed to the overall 3.1
percent increase in real GDP in the first quarter.
7 Market Feasibility
on more complete data, will be released on
August 29, 2019.

Personal Income
• June 2019: 0.4 percent
• May 2019: 0.4 percent
Personal income increased 0.4 percent in June,
the same increase as in May. Wages and
salaries, the largest component of personal
income, increased 0.5 percent in June after
increasing 0.2 percent in May.

Personal income increased $83.6 billion (0.4
percent) in June according to estimates
released today by the Bureau of Economic
310
Retail trade increased 11.9 percent in the first
quarter, after decreasing 2.5 percent in the
fourth. This primarily reflected an increase in
other retail, which includes gasoline stations
and pharmacies and drug stores.

U.S. Balance of Payments (International
Transactions)
Current Account Balance:
• 1st quarter 2019: -$130.4 billion
• 4th quarter 2018: -$143.9 billion
• Annual 2017: -$466.2 billion
• Annual 2016: -$451.7 billion
The U.S. current-account deficit decreased to
$130.4 billion (preliminary) in the first quarter of
2019 from $143.9 billion (revised) in the fourth
quarter of 2018.

International Investment Position
Net International Investment Position at End of
Period:
• End of 1st quarter 2019: -$9.93 trillion
• End of 4th quarter 2018: -$9.55 trillion
May to $76.1 billion. The services surplus
increased $0.1 billion in May to $20.6 billion.

New Foreign Direct Investment in the United
States
Annual Data: Expenditures by foreign direct
investors to acquire, establish, or expand U.S.
businesses totaled $296.4 billion (preliminary) in
2018. Expenditures were up 8.7 percent from
$272.8 billion (revised) in 2017 but were below
the annual average of $338.1 billion for 2014–
2017.

As in previous years, acquisitions of existing
businesses accounted for a large majority of
total expenditures.

In 2018, expenditures for acquisitions were
$287.3 billion, expenditures to establish new U.S.
businesses were $5.3 billion, and expenditures
to expand existing foreign-owned businesses
were $3.8 billion. Planned total expenditures,
which include both first-year and planned
future expenditures, were $318.1 billion.
8 Market Feasibility
• End of year 2018: -$9.55 trillion
• End of year 2017: -$7.74 trillion
Quarterly data: The U.S. net international
investment position decreased to -$9.93 trillion
(preliminary) at the end of the first quarter of
2019 from -$9.55 trillion (revised) at the end of
the fourth quarter of 2018, according to
statistics released by the Bureau of Economic
Analysis (BEA).

International Trade in Goods and Services
Trade Balance:
• May 2019: -$55.5 billion
• April 2019: -$51.2 billion
The U.S. monthly international trade deficit
increased in May 2019 according to the U.S.

Bureau of Economic Analysis and the U.S.

Census Bureau. The deficit increased from $51.2
billion in April (revised) to $55.5 billion in May, as
imports increased more than exports. The
previously published April deficit was $50.8
billion. The goods deficit increased $4.4 billion in
311
California
Economy
California has an unemployment rate of 8.2%.

The US average is 6.3% (Jan 2021).

California has seen the job market increase by

1.3% over the last year. Future job growth over
the next ten years is predicted to be 34.0%,
which is higher than the US average of 33.5%.

Tax Rates for California
– The Sales Tax Rate for California is 8.5%. The
US average is 7.3%.
- The Income Tax Rate for California is 9.3%. The
US average is 4.6%.
- Tax Rates can have a big impact when
Comparing Cost of Living.

Income and Salaries for California
- The average income of a California resident is
$29,906 a year. The US average is $28,555 a
year.
9 Market Feasibility
San Bernardino
County Economy
San Bernardino County has an unemployment
rate of 7.8%. The US average is 6.3% (Jan 2021).

San Bernardino County has seen the job
market increase by 2.3% over the last year.

Future job growth over the next ten years is
predicted to be 38.7%, which is higher than the
US average of 33.5%.

Tax Rates for San Bernardino County
- The Sales Tax Rate for San Bernardino County is

7.8%. The US average is 7.3%.
- The Income Tax Rate for San Bernardino
County is 9.3%. The US average is 4.6%.
- Tax Rates can have a big impact when
Comparing Cost of Living.

Income and Salaries for San Bernardino
County
- The average income of a San Bernardino
County resident is $21,384 a year. The US
average is $28,555 a year.

Ontario
Economy
Ontario has an unemployment rate of 6.9%.

The US average is 6.3% (Jan 2021).

Ontario has seen the job market increase by -

2.3% over the last year. Future job growth over
the next ten years is predicted to be 40.6%,
which is higher than the US average of 33.5%.

Tax Rates for Ontario
- The Sales Tax Rate for Ontario is 7.8%. The US
average is 7.3%.
- The Income Tax Rate for Ontario is 9.3%. The
US average is 4.6%.
- Tax Rates can have a big impact when
Comparing Cost of Living.

Income and Salaries for Ontario
- The average income of a Ontario resident is
$17,137 a year. The US average is $28,555 a
year.

Source: Best Places to Live | Compare Cost of Living, Crime, Cities, Schools and More. Sperling's BestPlaces, https://www.bestplaces.net/. 312 10 Market Feasibility
Economy At Glance California Mar 2021 Apr 2021 May 2021 June 2021 July 2021 Aug 2021 Labor Force Data
Civilian Labor Force(1) 18920.6 18895.2 18863.2 18877.2 18927.5 (p)18,982.8 Employment(1) 17341.3 17378.5 17417.3 17437.6 17493.6 (p)17,551.1 Unemployment(1) 1579.3 1516.7 1445.9 1439.6 1433.8 (p)1,431.6 Unemployment Rate(2) 8.3 8 7.7 7.6 7.6 (p)7.5
Nonfarm Wage and Salary Employment
Total Nonfarm(3) 16146.4 16248.4 16343.1 16414.6 16527.8 (p)16,632.1 12-month % change -7.7 8.7 8 5.1 5.5 (p)5.5
Mining and Logging(3) 19.2 19 18.7 18.6 18.8 (p)18.9
12-month % change -13.9 -6.9 -1.6 0 0.5 (p)-0.5
Construction(3) 886.3 884.1 879.8 877.1 877.8 (p)878.4
12-month % change -0.8 19.7 6.3 3.2 4.7 (p)4.3
Manufacturing(3) 1250.7 1253.7 1256.6 1258.3 1255.7 (p)1,258.6 12-month % change -5.4 3.9 2.4 0.8 1.2 (p)1.1
Trade, Transportation, and Utilities(3) 2982.5 2982.6 2987.7 2988.4 2991.3 (p)2,990.5 12-month % change -2.3 13.4 12.2 5.9 5.3 (p)3.8
Information(3) 529.2 527.3 538.6 539.6 545 (p)547.2
12-month % change -8.9 3.4 6.1 7.6 7.7 (p)7.7
Financial Activities(3) 809.5 810.7 811.8 808.8 806.6 (p)809.8 12-month % change -4.3 1.3 1.2 0.8 0.5 (p)0.7
Professional & Business Services(3) 2643.9 2662.4 2669.7 2672.2 2680.6 (p)2,694.6 12-month % change -3.3 7.6 6.5 5.9 6.1 (p)6.2
Education & Health Services(3) 2747.5 2762.5 2772.9 2782.1 2793.3 (p)2,787.0 12-month % change -3.8 7.2 5.9 3.6 3.4 (p)2.6
Leisure & Hospitality(3) 1418 1478.4 1531.1 1574.6 1627.4 (p)1,660.5 12-month % change -28.6 37.8 36.7 20.2 24.8 (p)27.7
Other Services(3) 458.7 466.6 471 482 491.9 (p)500.3
12-month % change -20.8 18 14.7 10.1 10.3 (p)17.4
Government(3) 2400.9 2401.1 2405.2 2412.9 2439.4 (p)2,486.3 12-month % change -8.1 -4.7 -1.1 0 0 (p)0.3
Footnotes
(1) Number of persons, in thousands, seasonally adjusted. (2) In percent, seasonally adjusted.
(3) Number of jobs, in thousands, seasonally adjusted.
(P) Preliminary
(r) Revised
313
11 Market Feasibility
California Demographics Summary
314
12 Market Feasibility
San Bernardino County Demographics Summary
315
San Bernardino County │Demographic Tables
13 Market Feasibility
San Bernardino County, California Estimate Margin of
Error Percent
Percent
Margin of
Error

SEX AND AGE
Total population 2,180,085 ***** 2,180,085 (X)
Male 1,086,226 ±637 49.8% ±0.1
Female 1,093,859 ±637 50.2% ±0.1
Sex ratio (males per 100 females) 99.3 ±0.1 (X) (X)
Under 5 years 151,731 ±767 7.0% ±0.1
5 to 9 years 155,183 ±5,575 7.1% ±0.3
10 to 14 years 167,305 ±5,539 7.7% ±0.3
15 to 19 years 155,930 ±671 7.2% ±0.1
20 to 24 years 159,148 ±594 7.3% ±0.1
25 to 34 years 336,303 ±942 15.4% ±0.1
35 to 44 years 283,746 ±873 13.0% ±0.1
45 to 54 years 262,434 ±1,127 12.0% ±0.1
55 to 59 years 131,001 ±4,218 6.0% ±0.2
60 to 64 years 116,492 ±4,317 5.3% ±0.2
65 to 74 years 160,976 ±331 7.4% ±0.1
75 to 84 years 72,827 ±2,680 3.3% ±0.1
85 years and over 27,009 ±2,622 1.2% ±0.1
Median age (years) 33.8 ±0.1 (X) (X)
Under 18 years 569,638 ***** 26.1% *****
16 years and over 1,675,554 ±2,740 76.9% ±0.1
18 years and over 1,610,447 ***** 73.9% *****
21 years and over 1,516,148 ±3,660 69.5% ±0.2
62 years and over 325,655 ±3,200 14.9% ±0.1
65 years and over 260,812 ±181 12.0% ±0.1
18 years and over 1,610,447 ***** 1,610,447 (X)
Male 794,408 ±248 49.3% ±0.1
Female 816,039 ±247 50.7% ±0.1
Sex ratio (males per 100 females) 97.3 ±0.1 (X) (X)
65 years and over 260,812 ±181 260,812 (X)
Male 117,464 ±303 45.0% ±0.1
Female 143,348 ±247 55.0% ±0.1
Sex ratio (males per 100 females) 81.9 ±0.3 (X) (X)
RACE
Total population 2,180,085 ***** 2,180,085 (X)
One race 2,065,464 ±10,275 94.7% ±0.5
Two or more races 114,621 ±10,275 5.3% ±0.5
One race 2,065,464 ±10,275 94.7% ±0.5
White 1,351,926 ±19,123 62.0% ±0.9
Black or African American 181,122 ±6,792 8.3% ±0.3
American Indian and Alaska Native 17,061 ±2,855 0.8% ±0.1 San Bernardino County, California Estimate Margin of
Error Percent
Percent
Margin of
Error
Asian 160,336 ±3,361 7.4% ±0.2
Asian Indian 12,729 ±3,707 0.6% ±0.2
Chinese 46,366 ±6,124 2.1% ±0.3
Filipino 45,503 ±6,076 2.1% ±0.3
Korean 16,352 ±3,171 0.8% ±0.1
Vietnamese 13,759 ±3,622 0.6% ±0.2
Other Asian 21,927 ±3,830 1.0% ±0.2
Native Hawaiian and Other Pacific
Islander 8,247 ±1,747 0.4% ±0.1
Some other race 346,772 ±19,715 15.9% ±0.9
Two or more races 114,621 ±10,275 5.3% ±0.5
White and Black or African American 23,047 ±5,659 1.1% ±0.3 White and American Indian and Alaska
Native 15,701 ±4,414 0.7% ±0.2
White and Asian 18,340 ±3,382 0.8% ±0.2
Race alone or in combination with one
or more other races
Total population 2,180,085 ***** 2,180,085 (X)
White 1,443,800 ±21,302 66.2% ±1.0
Black or African American 218,705 ±4,427 10.0% ±0.2
American Indian and Alaska Native 42,582 ±5,350 2.0% ±0.2 Asian 193,095 ±3,808 8.9% ±0.2
Native Hawaiian and Other Pacific
Islander 18,578 ±3,520 0.9% ±0.2
Some other race 386,752 ±19,791 17.7% ±0.9

HISPANIC OR LATINO AND RACE
Total population 2,180,085 ***** 2,180,085 (X)
Hispanic or Latino (of any race) 1,186,808 ***** 54.4% ***** Mexican 1,019,547 ±12,689 46.8% ±0.6
Puerto Rican 18,118 ±5,000 0.8% ±0.2
Cuban 5,076 ±1,669 0.2% ±0.1
Other Hispanic or Latino 144,067 ±12,471 6.6% ±0.6
Not Hispanic or Latino 993,277 ***** 45.6% *****
White alone 591,879 ±1,432 27.1% ±0.1
Black or African American alone 168,946 ±5,476 7.7% ±0.3 Asian alone 157,172 ±3,372 7.2% ±0.2
Two or more races 56,208 ±6,563 2.6% ±0.3
Two races excluding Some other race,
and Three or more races 53,338 ±6,419 2.4% ±0.3
Total housing units 731,393 ±941 (X) (X)

CITIZEN, VOTING AGE POPULATION
Citizen, 18 and over population 1,399,650 ±11,326 1,399,650 (X) Male 690,022 ±7,363 49.3% ±0.3
Female 709,628 ±5,924 50.7% ±0.3
316
14 Market Feasibility
Ontario Demographics Summary
317
Ontario │ Demographic Tables
15 Market Feasibility
Ontario, California Estimate Margin of
Error Percent
Percent
Margin of
Error

SEX AND AGE
Total population 184,999 ±52 184,999 (X)
Male 90,016 ±2,978 48.7% ±1.6
Female 94,983 ±2,979 51.3% ±1.6
Sex ratio (males per 100 females) 94.8 ±6.2 (X) (X)
Under 5 years 13,807 ±2,207 7.5% ±1.2
5 to 9 years 13,395 ±2,197 7.2% ±1.2
10 to 14 years 14,699 ±2,234 7.9% ±1.2
15 to 19 years 11,933 ±1,926 6.5% ±1.0
20 to 24 years 12,797 ±2,017 6.9% ±1.1
25 to 34 years 36,105 ±2,930 19.5% ±1.6
35 to 44 years 23,624 ±2,617 12.8% ±1.4
45 to 54 years 21,931 ±2,607 11.9% ±1.4
55 to 59 years 10,116 ±1,566 5.5% ±0.8
60 to 64 years 10,241 ±1,799 5.5% ±1.0
65 to 74 years 9,450 ±1,706 5.1% ±0.9
75 to 84 years 5,685 ±1,147 3.1% ±0.6
85 years and over 1,216 ±612 0.7% ±0.3
Median age (years) 32.1 ±1.0 (X) (X)
Under 18 years 49,419 ±3,954 26.7% ±2.1
16 years and over 140,404 ±3,957 75.9% ±2.1
18 years and over 135,580 ±3,957 73.3% ±2.1
21 years and over 128,868 ±3,898 69.7% ±2.1
62 years and over 21,918 ±2,316 11.8% ±1.3
65 years and over 16,351 ±2,133 8.8% ±1.2
18 years and over 135,580 ±3,957 135,580 (X)
Male 67,143 ±3,245 49.5% ±1.8
Female 68,437 ±2,965 50.5% ±1.8
Sex ratio (males per 100 females) 98.1 ±7.0 (X) (X)
65 years and over 16,351 ±2,133 16,351 (X)
Male 7,032 ±1,287 43.0% ±4.8
Female 9,319 ±1,357 57.0% ±4.8
Sex ratio (males per 100 females) 75.5 ±14.7 (X) (X)
RACE
Total population 184,999 ±52 184,999 (X)
One race 174,511 ±2,287 94.3% ±1.2
Two or more races 10,488 ±2,290 5.7% ±1.2
One race 174,511 ±2,287 94.3% ±1.2
White 114,932 ±6,968 62.1% ±3.8
Black or African American 8,225 ±3,180 4.4% ±1.7
American Indian and Alaska Native 1,010 ±716 0.5% ±0.4
Ontario, California Estimate Margin of
Error Percent
Percent
Margin of
Error
Asian 12,600 ±3,018 6.8% ±1.6
Asian Indian 599 ±952 0.3% ±0.5
Native Hawaiian and Other Pacific Islander 1,278 ±1,300 0.7% ±0.7 Some other race 36,466 ±5,923 19.7% ±3.2
Two or more races 10,488 ±2,290 5.7% ±1.2
White and Black or African American 2,137 ±1,513 1.2% ±0.8 White and American Indian and Alaska
Native 1,026 ±699 0.6% ±0.4
White and Asian 949 ±607 0.5% ±0.3
Black or African American and American
Indian and Alaska Native 172 ±282 0.1% ±0.2
Race alone or in combination with one or
more other races
Total population 184,999 ±52 184,999 (X)
White 123,478 ±6,651 66.7% ±3.6
Black or African American 11,048 ±3,643 6.0% ±2.0
American Indian and Alaska Native 3,080 ±1,145 1.7% ±0.6 Asian 14,468 ±3,225 7.8% ±1.7
Native Hawaiian and Other Pacific Islander 2,206 ±1,656 1.2% ±0.9 Some other race 42,377 ±5,894 22.9% ±3.2

HISPANIC OR LATINO AND RACE
Total population 184,999 ±52 184,999 (X)
Hispanic or Latino (of any race) 132,110 ±6,159 71.4% ±3.3 Mexican 114,053 ±6,540 61.7% ±3.5
Puerto Rican 1,793 ±1,419 1.0% ±0.8
Cuban 813 ±716 0.4% ±0.4
Other Hispanic or Latino 15,451 ±4,228 8.4% ±2.3
Not Hispanic or Latino 52,889 ±6,164 28.6% ±3.3
White alone 27,667 ±4,260 15.0% ±2.3
Black or African American alone 7,443 ±3,037 4.0% ±1.6
American Indian and Alaska Native alone 363 ±373 0.2% ±0.2 Asian alone 12,472 ±3,039 6.7% ±1.6
Native Hawaiian and Other Pacific Islander
alone 1,049 ±1,246 0.6% ±0.7
Some other race alone 123 ±199 0.1% ±0.1
Two or more races 3,772 ±1,632 2.0% ±0.9
Two races including Some other race 350 ±401 0.2% ±0.2
Two races excluding Some other race, and
Three or more races 3,422 ±1,541 1.8% ±0.8
Total housing units 52,886 ±2,128 (X) (X)

CITIZEN, VOTING AGE POPULATION
Citizen, 18 and over population 108,478 ±5,132 108,478 (X) Male 53,030 ±3,426 48.9% ±2.1
Female 55,448 ±3,429 51.1% ±2.1 318
16 Market Feasibility
rate of about 14.5 percent in July 2010. Based on the current unemployment rate, the County retains about 74,303 job seekers.

The Company intends to manage the Subject Project with the years of operations and management experience that principals of the Company has. This item does not appear to be a risk for the Subject Project.

Availability of Trained or Trainable
Labor
According to the Federal Reserve Bank of St. Louis Economic Data, the unemployment rate for San Bernardino County (latest data) was recorded at about 7.6 percent.

The civilian Labor Force in the subject County according to the Federal Reserve Bank of St. Louis Economic Data and US Bureau of Labor and Statistics was about 977,677. The unemployment rate reached its highest 820,000
840,000
860,000
880,000
900,000
920,000
940,000
960,000
980,000
1,000,000
1/1/2010
6/1/2010
11/1/2010
4/1/2011
9/1/2011
2/1/2012
7/1/2012
12/1/2012
5/1/2013
10/1/2013
3/1/2014
8/1/2014
1/1/2015
6/1/2015
11/1/2015
4/1/2016
9/1/2016
2/1/2017
7/1/2017
12/1/2017
5/1/2018
10/1/2018
3/1/2019
8/1/2019
1/1/2020
6/1/2020
11/1/2020
4/1/2021
Civilian Labor Force
0 2
4 6
8 10
12 14
16 1/1/2010
6/1/2010
11/1/2010
4/1/2011
9/1/2011
2/1/2012
7/1/2012
12/1/2012
5/1/2013
10/1/2013
3/1/2014
8/1/2014
1/1/2015
6/1/2015
11/1/2015
4/1/2016
9/1/2016
2/1/2017
7/1/2017
12/1/2017
5/1/2018
10/1/2018
3/1/2019
8/1/2019
1/1/2020
6/1/2020
11/1/2020
4/1/2021
Unemployment Rate
COVID-19 Impact
319
17 Market Feasibility
Gross Domestic Product: Accommodation and Food Services in California 30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
The industry and its relevant leveraged structure indicates that the Company’s revenue should follow trends in the overall economy, including disposable income of end-users/consumers. Based on the analysis, the market area economy appears to be growing which indicates reasonable potential for the Subject Project.

Source: Veritas Development Advisors Secondary Research Analysis 1,500,000
1,700,000
1,900,000
2,100,000
2,300,000
2,500,000
2,700,000
2,900,000
3,100,000
3,300,000
Gross Domestic Product: All Industry Total in California 320
The Great Smoky Mountains
Hotel Market Overview
Hotels & Motels in the US
• IBISWorld's analysts constantly monitor the industry impacts of current events in real-time – here is an update of how this industry is likely to be impacted as a result of the global COVID-19 pandemic:
• Recovery for the Hotels and Motels industry is anticipated to be skewed toward domestic, leisure markets where COVID-19 (coronavirus) restrictions have been lifted. • Operators that cater to business customers such as, truckers, contractors, construction workers, healthcare workers and others that must travel for work and do not have the ability to conduct their work remotely are anticipated to experience an increase in demand.
• International travel to the United States has remained subdued, as restrictions remain in place on travelers from key markets such as, Canada and the European Union. This is anticipated to decelerate revenue growth for the industry in 2021.
321
Hotels & Motels in the US
Checking in: Industry players will likely continue expanding abroad into emerging economies. The Hotels and Motels
industry is highly susceptible to changes in the domestic and global economic environments, which has caused the industry to experience substantial volatility due to the onset of the COVID-19 (coronavirus) pandemic in 2020. Over most of the five years to 2021, the industry has benefited from increases in travel spending, corporate profit and general consumer
spending. These factors were all affected substantially by the coronavirus pandemic. IBISWorld expects industry revenue to fall at an annualized rate of 7.6% to $133.0 billion over the five years to 2021, despite an anticipated increase of 42.9% in 2021 amid a strong recovery in domestic leisure travel.
19 Market Feasibility
Growth,21-26

10.8% (Annual)
Revenue
$133.0 bn
Profit Margin

3.1%
Wages Share
$43.0 bn
Growth,14-19
--15.3% (Annual)
Growth,21-26

7.8%
• Over the past five years, rising external competition has increased pressure on many hotel and motel operators, leading to competitive room rates. While some operators have shifted to offer premium services and accommodations to increase their rates or diversify revenue streams, not all operators have been able to make this shift. This has led to declines in industry profit.
• Additionally, the industry has been substantially affected by the onset and spread of coronavirus.
• Although domestic leisure travel has rebounded strongly in 2021, both international and business travel remain significantly below prepandemic levels amid the emergence of the Delta variant.
• Over the five years to 2026, IBISWorld projects that the industry will rebound and expand, with particularly strong growth in extended-stay hotels, boutique hotels, spa and health retreats and resorts segments.
• As demand for these auxiliary services picks up, industry employment is anticipated to recover and rise over the next five years. Industry players are also expected to continue expanding abroad into emerging economies, such as Asia, Eastern Europe and South America.
• These foreign markets are expected to somewhat detract from domestic investment, as they offer higher growth prospects for industry operators. • Nonetheless, industry revenue is estimated to increase at an annualized rate of

10.8% to $222.0 billion over the five years to 2026.

Key Points
Source: IBISWorld, US Industry (NAICS) Report 72111, September 2021 322
Key External Drivers
Domestic trips by US residents
Trends in domestic travel, especially business
travel, and total nights spent away from home
directly affect demand for accommodation.

As the number of trips made by US citizens rises,
demand for hotels and models increases, while
the inverse is also true. The number of domestic
trips by US residents is expected to increase in
2021, representing a potential opportunity for
the industry.

Consumer spending
Consumer spending levels have a direct effect
on travel demand. When consumers spend
more overall, they are more likely to spend on
travel and accommodations. Therefore, a rise
in consumer spending benefits demand for
hotels and motels. Conversely, as consumers
reduce spending, they decrease excess
spending on travel, reducing demand for
hotels and motels. Consumer spending is
expected to increase in 2021.

External competition for the Hotels and Motels
Industry
The Hotels and Motels industry experiences
competition from lodging alternatives, such as
RV parks, bed-and-breakfast establishments,
room rental services and hostels. Travelers are
increasingly comparing prices across these
alternatives when booking travel arrangements.

External competition for the Hotels and Motels
industry is expected to increase in 2021, posing
a potential threat to the industry.
20 Inbound trips by non-US residents
Trends in international visitor arrivals and their
lengths of stay influence demand for
accommodation. A rise in inbound trips
positively affects demand for hotels and motels.

The number of inbound trips by non-US residents
is expected to increase in 2021.

Consumer confidence index
The Consumer Confidence Index measures
consumer sentiment regarding the current
economic outlook. Changes in consumer
confidence influence decisions that individuals
make concerning current and future
expenditure on entertainment and travel.

When consumers feel optimistic regarding the
economic outlook, they are more likely to plan
travel arrangements and book nights at hotels
or motels. However, as consumers grow
increasingly skeptical of the economic outlook,
they forego spending on travel and
accommodations. The Consumer Confidence
Index is expected to increase in 2021.

Market Feasibility
323
Key External Drivers
21 Market Feasibility
-100
-50
0 50
100
150
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Key External Drivers % Change 2013 - 2026
Consumer confidence index
Consumer spending
Domestic trips by US residents
Inbound trips by non-US residents
Industry revenue is expected industry revenue to fall at an annualized rate of 7.6% to $133.0 billion over the five years to 2021, despite an anticipated increase of 42.9% in 2021 amid a strong recovery in domestic leisure travel.
324
Current Performance
The Hotels and Motels industry has
experienced elevated volatility over the five
years to 2021.

Hotels and motels primarily provide short-term
lodging to consumers; however, many also
offer other services and accommodations as a
way to diversify revenue. During most of the
period, industry revenue grew at a steady rate,
driven by positive economic factors that were
favorably affecting the domestic economy as
a whole. However, in early 2020, as the COVID-
19 (coronavirus) pandemic spread across the
globe, this trend sharply reversed, resulting in a
sharp decline in industry revenue that year
overall.

Economic indicators, such as per capita
disposable income and consumer confidence,
rose early during the period, only to
experience sharp decline later during the
period. Thus, all forms of short-term
accommodation have experienced a
most of the period, the United States has been
negatively affected by the coronavirus
outbreak.

The coronavirus spread rapidly within the
United States, forcing many state and local
governments, with the aid of the federal
government, to take action.

Many state and local governments
implemented stay-at-home orders, mandating
the closure of nonessential businesses. This
caused a shock to the US economy, and many
companies were forced to lay off employees
and temporarily shut down, while consumer
sentiment declined, causing a near halt to
domestic travel. The federal government also
banned travel from international visitors
originating from countries and regions that
were drastically affected by the virus.

Consequently, demand for hotels and motels
has decreased, eliminating all growth
experienced between 2016 and 2019. However,
in 2021 domestic travel is estimated to sharply
22 Market Feasibility
substantial decrease in demand. Consumers
that had previously increased spending on
travel for both business and leisure purposes
have abruptly curbed that, causing industry
revenue to decline. Since destination hotels
and motels rely heavily on domestic and
foreign tourism, any changes in domestic and
international travel substantially contribute to
the industry's bottom line. Industry revenue is
expected to decrease an annualized 7.6% to
$133.0 billion over five years to 2021, despite an
estimated increase of 42.9% in 2021 alone due
to the expulsion pent-up domestic travel
demand.

Changing Direction And The Coronavirus
The industry is particularly sensitive to
macroeconomic factors, which can negatively
affect consumers' tendency to travel.

Unexpected changes in geopolitical order can
potentially affect revenue growth should travel
restrictions arise or consumer sentiment sour.

Although the US economy has improved during
325
rise, in line with the cessation of government
restrictions on businesses and travel.

Furthermore, the coronavirus vaccination
campaign has resulting in a rising percentage
of the population successfully vaccinated,
which has contributed to a surge in domestic
leisure travel during summer 2021, benefiting
industry operators. However, restrictions
regarding international visitors entering the
United States remain in place for several key
markets such as the European Union and
Canada.

Consequently, demand from international
travelers is anticipated to rise at a much slower
rate than demand from domestic travelers.

Moreover, although business travel has
rebounded somewhat from lows endured
during the coronavirus pandemic, the spread
of the Delta variant has delayed the return to
the office for many employees as well as
business conferences and trips.
property value cycles and economic
conditions, in addition to any imbalances in
hotel room demand and supply influences.

Similarly, Wyndham Worldwide Corporation
separated into two separate holdings,
Wyndham Hotels and Resorts Inc. and
Wyndham Destinations. This separation aimed
to enable each segment to grow and operate
independently. Nevertheless, the industry is still
largely property-based, with hotels and motels
owning or leasing property specifically for hotel
and motel operation.

Declining Profit
Profit has fallen over the past five years,
partially because many operators have been
unable to increase room rates amid increased
competition.

While the rate of construction and
development to get new rooms on the market
has not kept up with increased demand,
operators have experienced substantial
external competition from companies such as
23 Market Feasibility
Industry Structure
Over the past five years, the structure of the
industry has shifted.Many major operators have
altered their business structure, through actions
such as forming real estate investment trusts to
raise funds.

Additionally, major operators have restructured
operations to solely provide specialist services
in hotel management through increased
franchising opportunities. While revenue from
hotel management has declined, such services
have provided an opportunity to generate
higher profit due to the elimination of many
property-related costs. In 2017,
Hilton Worldwide Holdings Inc. separated into
three separate entities to capitalize on growth
opportunities and increase its competitiveness.

The company spun-off its domestically owned
and leased properties into a real estate
investment trust.

Ultimately, owners are subject to changes in
326
Airbnb Inc. and VRBO. These services permit
consumers to rent rooms, apartments or whole
houses online rather than a traditional hotel
room. Such services provide a wide range of
options to consumers and can play into a
variety of different price points.

This has forced many operators to offer
competitive pricing to maintain high demand
or to provide upscale amenities to compensate
for the price difference.

Furthermore, the crippling effect on the industry
from the coronavirus pandemic, which caused
rapid declines in occupancy rates and revenue
per available room, coupled with rising
operating costs due to the implementation of
pandemic-related sanitation measures, has
also contributed to a sharp decline in profit.

Consequently, profit, measured as earnings
before interest and taxes, is estimated to
account for 3.1% of revenue in 2021, down from

18.4% in 2016.

The decline in establishments resulting from the
pandemic in 2020 is anticipated to outweigh
strong establishment growth early during the
period. Similarly, industry employment has
decreased an annualized 3.3% to 1.4 million
workers over the five years to 2021. IBISWorld
estimates that industry employment declined

34.5% in 2020 alone.
24 Market Feasibility
Declining revenue and profit have led many
small operators to close locations either
temporarily or permanently.

Consequently, the number of industry
establishments has decreased an annualized

0.4% to 92,746 locations over the five years to
2021.
327
Products & Services (Market Share)
25 Market Feasibility

20.2%

44.4%

6.9%

8.4%

9.3% 10.8%
Guest room rentals from properties with under 75 rooms Guest room rentals from properties with between 75 and 299 rooms Guest room rentals from properties with between 300 and 500 rooms Guest room rentals from properties with over 500 rooms Restaurants and bars Other services
328
Demand
Determinants
Domestic travel
Demand for hotel and motel accommodation
is dependent on factors that affect travel, such
as disposable income, which is influenced by
changes in general employment growth and
movements in interest and tax rates.

Changes in disposable income affect the
number of trips a household takes and its
expenditures while traveling, which, in turn,
affects the growth and economic effect of the
hospitality tourism industry.

The COVID-19 (coronavirus) pandemic in 2020
resulted in a surge in the unemployment rate,
widespread economic uncertainty and
restrictions on domestic travel. These factors
resulted in a decline in domestic travel in 2020.

Nonetheless, in 2021, demand from domestic
travel is anticipated to rise from 2020 lows, as
individuals seek to travel after a year where
movements, the availability of inexpensive
airfares and holiday packages and the supply
of airline seats. If traveling domestically
becomes more expensive relative to
international trips, individuals may choose to
travel internationally, affecting the growth of
domestic industry operators.

Finally, tourism promotions by private operators
and federal and state governments, including
through TV programs and special sporting
events, also stimulates travel. However,
individual state government promotions
typically influence domestic travel patterns to
favor only their state, rather than the entire
industry.

Business travel
Business travel is greatly influenced by changes
in economic growth, business confidence and
corporate profit. Economic conditions directly
affect the number of business trips taken, the
length of stay and budgeted travel spending.
26 Market Feasibility
Consequently, demand for these products has
increased among both nontraditional and
travel was largely restricted.

The price of fuel is also important, which affects
disposable income and general travel demand.

When fuel prices increase, it reduces
disposable income and consumers' willingness
to spend on long car trips.

Changes in the availability of leisure time also
affects the industry. As the unemployment rate
falls, time available for leisure activities, such as
travel also declines, despite the increased
disposable income. It also adds more tradeoffs
to consumers who have to use limited paid
vacation days to travel. Holiday expenditure
also competes with other leisure and
recreational industries and competes for a
share of household disposable income.

A longer-term influence on travel patterns is the
cost of taking a domestic trip compared with
an international one. The difference between
the two is influenced by exchange rate
329
Business travel has experienced growth
throughout most of the five years to 2021 as
many corporations have benefited from the
growth in the domestic economy.

However, the spread of the coronavirus
throughout the United States in 2020 has
resulted in a sharp contraction in business travel,
as employees increasingly work from home and
avoid nonessential travel.

Additionally, technology such as
teleconferencing and conference calling has
replaced business travel during the pandemic,
as it is cost-effective and safer. In 2021 business
travel levels have remained subdued due to
the spread of the delta variant of the
coronavirus and a continuation of many
employees working from home.

This trend of companies restricting travel
spending and conference attendance to focus
more technology-based alternatives in an
effort to preserve capital is likely to be
United States in 2020. Widespread global
economic uncertainty has also limited
international tourism.

Although restrictions have been somewhat
eased in 2021, international travel demand is
anticipated to return at a slower rate
compared with domestic travel.

Other factors, such as heightened geopolitical
tensions including wars and terrorism, whether
feared or actual, affect international travel
plans. Many of the top tourist locations have
struggled to regain traction for industry
operators following terrorism or other negative
events or geopolitical issues.

Promotional expenditures and activities, such
as major or special events, on the part of
governments and other organizations, can
raise awareness and interest in travel. Finally,
supply factors are also of critical importance,
including the availability of airline flights and
seats at the times people want to travel, and
accommodations to and at their selected
destination.
27 Market Feasibility
continued during the outlook period, however
at a decreasing rate.

International tourism
International tourism is one of the most
competitive industries. International tourism is
affected by factors similar to domestic travel
and global economic conditions, especially
changes in economic growth.

Furthermore, international tourism is affected
by changes in the US dollar against other major
currencies, which has an effect on the cost of
travel and the relative attractiveness of
traveling to competing destinations. The
coronavirus pandemic has resulted in a sharp
decline in international tourism. There are still
restrictions placed on individuals attempting to
enter the United States who have been in
countries experiencing more severe outbreaks
of the coronavirus.

Additionally, many states implemented stay-at-
home mandates and restrictions on businesses,
further reducing the allure of traveling to the
330
External factors
Several external factors can severely affect the
industry either directly or indirectly. Such factors
include public health crises, government
regulation, geopolitical tensions and other
macroeconomic factors.

Global or national pandemics can cause
increased concern among US and international
travelers.

Traveling amid public health crises may place
consumers at further risk of catching the
ailment, especially when staying at shared
locations, such as hotels and motels, or
traveling by airplane or train and other shared
transportations.

Many hotel and motel guests are traveling far
distances, which is the reason they required
accommodation services.

As health concerns increase, consumers are
more inclined to stay closer to home, limiting
demand for travel. Similarly, government
28 Market Feasibility
regulations that effect travel indirectly
influences demand for hotels and motels.

When any government restricts travel for
individuals to or within the United States,
demand will likely be negatively affected, as it
reduces the volume of consumers needing
industry services.

This has been apparent with the effect of the
coronavirus. Hotels and motels experienced a
sharp decline in occupancy rates in 2020 as
consumers opted to forego travel and stay at
home.
331
Major Markets (Market Share)
29 Market Feasibility

67.7%

17.1%

8.9% 6.3%
Domestic leisure travelers International leisure travelers Business travelers Meetings, events and incentive travelers 332
Key Success Factors
30 Market Feasibility
•Access to multiskilled and well-trained staff is vital to success in the industry.

Access to multiskilled and flexible workforce:
•There are many benefits to being part of a chain or franchised group, namely brand recognition, national marketing and quality control.

Being part of a franchising chain:
•Good word-of-mouth recommendations are quite often the most successful promotional tool.

Receiving the benefit of word-of-mouth recommendations:
•The location, facilities and services offered to hotel and motel guests are very important.

Proximity to key markets:
•It is essential to be aware of the new technology available in this industry for information, promotions, bookings and general management control systems
Ability to quickly adopt new technology:
• Understanding the various room stock, availability and tariff mechanisms used in this industry is important.

Ability to control stock on hand:
333
Cost Structure
Benchmarks
Profit
Profit, measured as earnings before interest
and taxes, is expected to account for 3.1%
of industry revenue in 2020, driven by the
economic damage of the COVID-19
(coronavirus) pandemic.

Purchases
In 2019, wages are expected to account
for 21.4% of industry revenue.

Wages
Wages represent 32.3% of industry revenue
in 2020.

Marketing
Marketing costs account for 2.1% of
industry revenue in 2021.

Depreciation
Depreciation represents an estimated 8.5%
of industry revenue in 2020.
31 Market Feasibility
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Industry Sector
Sector versus Industry Costs
Wages
Purchases
Profit
Depreciation
Marketing
Rent
Utilities
Other
334
Major Companies
There are no major players in this industry.

Other Companies
Marriott International Inc.

Market Share: 0.4%
Marriott International Inc. (Marriott) is a lodging
company based in Bethesda, MD, with 7,797
global properties in 80 countries and territories.

The United States is home to 62.3% of Marriott's
rooms.

Marriott operates and franchises its hotels
under various brands, including Marriott, the
Ritz-Carlton, Renaissance, Courtyard,
TownePlace Suites and Bulgari. It also develops
and operates vacation ownership resorts under
the Marriott Vacation Club, Horizons, the Ritz-
Carlton Club and Grand Residences brands,
while also running Marriott Executive
Apartments. The company employs an
estimated 121,000 people worldwide across its
various hotels and other locations in 2020 (latest
data available).
fees, but enables individuals to take
advantage of the parent company's network,
branding and other features. While these
establishments are considered independent
enterprises, they have increased Marriott's
operations across the United States.

Due to the nature of Marriott's business
structure, with its focus on management,
franchising and licensing,
IBISWorld uses company reported revenue
from owned and leased locations to project
the company's market share.

However, IBISWorld also reports and estimates
total network sales. Network sales further
include revenue generated by the company's
franchise operations. In 2021,
Marriott is expected to generate $509.3 million
in industry-relevant revenue. This includes an
estimated decline in 2020 due to the COVID-19
(coronavirus) pandemic as domestic and
32 Market Feasibility
Marriott's operations extend over most
segments of the accommodation market,
including luxury, full service and limited service,
to suit a variety of travelers and budgets.

While such diversity typically provides some
insulation from economic downturns, many of
the company's hotels still endure severely cut
room rates to remain competitive and maintain
positive cash flow during difficult economic
periods.

Consequently, Marriott has significantly
expanded its US portfolio over the past five
years to further inoculate itself from downturns
and better position itself to compete with its
traditional competitors and also with newer,
nontraditional competitors, such as Airbnb Inc.

Most of this expansion has been through
franchise operations. Franchise agreements are
contracts that enable individuals to create a
business establishment under the branding of
an existing company. This often requires upfront
335
international travel sharply contracted amid
travel restrictions and stay-at-home mandates.

In 2021, the company is anticipated to
experience a rebound in demand, driven
primarily by robust leisure demand.

Hilton Worldwide Holdings Inc.

Market Share: 0.2%
Brand Names: Hilton, Hilton Garden Inn,
Doubletree, Embassy Suites, Hampton,
Homewood Suites by Hilton, Conrad
Hilton Worldwide Holdings Inc. (Hilton), formerly
Hilton Hotels Corporation, is a McLean, VA-
based lodging company that owns, manages
or franchises more than 6,500 hotels with over

1.0 million rooms worldwide.

An estimated 71.0% of Hilton's rooms are based
in the United States, which has increased over
the five years to 2021. Hilton employs 141,000
people worldwide at its managed, owned,
leased and corporate locations, while 173,000
individuals work in the company's franchised
locations.
its core segments to act on opportunities faster
than before. These spin-offs were completed in
early 2017. The two new segments include Park
Hotels & Resorts Inc. and Hilton Grand
Vacations Inc. These segments comprised the
company's previous timeshare rentals and
various resorts segments. The company's
remaining portfolio is focused on luxury and
lifestyle hotel brands, with global properties
remaining within the traditional company
structure.

In 2021, Hilton is estimated to generate $219.5
million in industry-relevant revenue. This does
not include revenue from its franchised
operations, as Hilton does not release revenue
figures for its franchised and managed
locations in its publicly available financials.

The company's continued shift toward
franchising has been a large driver behind its
declining industry-relevant revenue. The
company's revenue is expected to decline in
2020 due to the negative effect of COVID-19
(coronavirus) pandemic. However, based on
33 Market Feasibility
Hilton has undergone a series of ownership
changes since it was first listed on the New York
Stock Exchange in 1970. Most recently, the
company was purchased by private equity firm
Blackstone Group Inc. (Blackstone) in 2007 for
$26.0 billion, initially pulling it off of public
exchanges.

Blackstone took Hilton public again in late 2015,
listing the company on the New York Stock
Exchange under the name of Hilton Worldwide
and using the proceeds to pay down the
substantial debt the group had taken on during
the initial purchase of Hilton. During its
ownership tenure,
Blackstone increased the chain's room count,
which was mainly achieved through franchised
and managed hotels, which require limited
capital investment. In February 2016, the
company announced plans to break into three
separate entities to capitalize on growth
opportunities, increase its competitiveness
within the Hotels and Motels industry and
create internal efficiencies that would enable
336
RevPAR figures and the company's reported
number of rooms to determine its total system-
wide sales, IBISWorld estimates that Hilton's US
system-wide sales have grown throughout most
of the five years to 2021, prior to the
coronavirus pandemic, and system-wide sales
remain important to Hilton's growth post-
pandemic.

Moreover, Hilton is anticipated to experience
an increase in demand in 2021 amid the easing
of travel restrictions and anticipated pent-up
travel demand amid the broader distribution of
the coronavirus vaccination.

InterContinental Hotels Group PLC
Brand Names: InterContinental
InterContinental Hotels Group PLC (IHG) is a UK-
based company and one of the largest hotel
chains in the world as measured by total
number of rooms. IHG owns, manages and
franchises 5,964 hotels throughout 100 countries
under major brands, including Holiday Inn,
Kimpton Hotels, Crowne Plaza and
targets travelers with a preference for edgy art
and design. These locations are predominantly
located in urban areas and target high-end
consumers between the ages of 20 and 50.

RevPAR for all of IHG's brands has increased
strongly during most of the period, as travel
across all major markets has increased.

Similar to other service industries, IHG was
heavily affected by the onset of the COVID-19
(coronavirus) pandemic in the United States
and throughout the globe.

As people self-isolated and sheltered in place,
they canceled travel plans, and thus, did not
book stays at hotels and motels, causing sharp
declines in occupancy rates in 2020.

However, in 2021 IHG has experienced a
recovery in its occupancy rates, which has
been skewed toward domestic leisure markets
where restrictions have been lifted. IHG's
business market occupancy levels have
remained an estimated 30.0% below pre-
pandemic levels.
34 Market Feasibility
InterContinental. It also employs more than
400,000 individuals across all hotels and
countries. IHG divides its hotels into segments
based on ownership and management
structures. Hotels are either franchised,
managed or owned.

Consistent with IHG's low-asset business model,
most of the company's hotels operate under a
franchise agreement or are managed by IHG
on behalf of the owner. Due to the low capital
investment and minimal wage costs required
for franchising, the company's franchise
business is its most profitable segment.

IHG's portfolio of brands covers a wide range of
key consumer segments active in the Hotels
and Motels industry. High-end luxury travelers
visiting major cities are catered to by IHG's five-
star InterContinental locations, while its Holiday
Inn brand accommodates mid-market
consumers traveling for business or leisure.

IHG's most recent project, Hotel Indigo, is a
boutique hotel concept with 50 locations that
337
IHG's industry-relevant hotels are located within
the company's Americas segment, which
includes all properties located in North, South
and Central America. The Americas segment
represents over 4,200 hotels and 514,000 rooms.

Properties located in the United States
represent an estimated 58.0% of total
properties.

While the United States still accounts for the
majority of revenue within the Americas
segment, Canada, Mexico and the Caribbean
are also key players that significantly contribute
to the company's profit, mainly because more
than 90.0% of rooms in the Americas segment
operate under a franchise business model.

IHG's asset-light business model means it owns
nine hotels, as most hotels operate under a
franchise agreement or are managed by IHG
on behalf of owners. Additionally, the global
effect of coronavirus is forecast to substantially
affect the industry, further reducing growth.

Nonetheless, IHG experienced significant
based in Parsippany, NJ, but operates globally.

Wyndham is one of the largest franchised-hotel
operators in the United States. In 2006, its
parent company, Cendant Corporation, split
into discrete companies operating in specific
industries, and its hotel operation was renamed
Wyndham Worldwide.

During the second quarter of 2017, the
company decided to further divide the
company, and announced its intent to spin-off
of the hotel business segment. This spin-off was
completed in June 2018 and resulted in the
hotel business operation being held as its own
publicly traded entity named Wyndham Hotel
and Resorts. Wyndham states that the spin-off
aimed to enable a greater focus on the
individual functions of each business segment,
enhancing their potential for success and
growth.

In the United States, Wyndham has 8,941
properties with a total of 484,800 rooms. In 2021,
IBISWorld estimates that Wyndham will derive

60.8% of its revenue in the United States.
35 Market Feasibility
growth during the most of the period, which is
expected to somewhat mitigate loss that has
been incurred in 2020.

Therefore, the company is expected to
generate $4.5 million in industry-relevant
revenue in 2021. The figure is relatively low
because industry-relevant revenue does not
include franchise revenue, as franchises are
considered independent operators, according
to the Bureau of Labor Statistics.

Nonetheless, IHG's total network sales in the
United States, which includes sales garnered
from owned, leased and managed hotels and
sales earned by third-party-owned franchised
hotels, are estimated to fall over the five years
to 2021 due to the coronavirus pandemic
induced decline in 2020.

Wyndham Hotel and Resorts
Brand Names: Super 8 Motels, Knights Inn,
Days Inn, Travelodge
Wyndham Hotels and Resorts (Wyndham),
previously Wyndham Worldwide Corporation, is
338
Wyndham's brands include Days Inn, Knights
Inn, Ramada, RCI, Super 8 Motels, Travelodge,
Howard Johnson's and Wingate by Wyndham.

Its two largest brands, Super 8 and Days Inn,
have an estimated 2,000 locations each.

Wyndham's brands mainly cater to the
economy and midscale markets. It is also
involved in the timeshare market via its RCI and
Fairfield Communities brands.

Wyndham earns one of the lowest RevPARs in
the industry due to the budget-focused nature
of its lodgings.

In 2021, Wyndham is expected to generate
$2.9 million in industry-relevant revenue. This
does not include revenue generated by the
company's franchised establishments.

US-network sales have fallen over the five years
to 2021. This is largely due to an anticipated
decline in 2020, as many consumers throughout
the globe and in the United States were placed
under stay-at-home orders, and significantly
Consequently, the company's economy and
midscale brands have outperformed the
industry's higher-end brands during the
pandemic. Moreover, leisure travel demand
has recovered strongly in 2021, with
occupancy rates reaching 95.0% of their pre-
pandemic levels during the second quarter of
2021.
36 Market Feasibility
reduced and canceled most traveling.

However, in 2021,
Wyndham has benefited from strong demand
from its business customers, which largely are
comprised of truckers, contractors, construction
workers, healthcare workers and others who
must travel for work and do not have the ability
to conduct their work remotely.
339
Operating Conditions
The level of capital intensity is Medium
The Hotels and Motels industry is subject to a
moderate to level of capital intensity. In 2021,
for every $1.00 spent on wages, the average
industry operator is expected to spend an
estimated $0.26 on capital. Capital intensity is
expected to remain stable moving forward as
labor and capital both play an important role
in the industry.

As a service-based industry, hotel and resort
operators are highly dependent on direct labor
input across all areas of operation. Individuals
are needed in areas such as front-desk service,
reservations, room service and cleaning, food
preparation, liquor and beverage service and
back of house operational management. Due
to the service-based nature of the industry,
many of these labor-intensive functions cannot
be substituted by technology or machinery
and are a key foundation in the day-to-day
functions. To meet customers' expectations of
quality and provide a hospitable stay, trained
staff are required.
37 Market Feasibility
0 0.05

0.1 0.15

0.2 0.25

0.3 0.35

0.4 0.45
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Capital Intensity Ratio - Industry
340
Revenue Volatility
The level of volatility is Very High
Over much of the five years to 2021, Hotels and
Motels industry revenue volatility has been
moderate to very high.

Volatility was low during most of the period due
to the consistent growth industry operators
have been able to capitalize on. However, with
the onset of the COVID-19 (coronavirus)
pandemic, industry revenue is anticipated to
rapidly decline in 2020 and strongly rebound in
2021, introducing greater volatility to the
industry.

Industry revenue grew as much as 42.9% in
2021 and declined as much as 55.8% in 2020.

Prior to 2020, there was little variability. However,
this new instability in revenue growth derived
from global economic and public health issues
has affected the United States in 2020.

This has led to steep declines in the previously
steady increase in inbound tourism, volumes of
38 Market Feasibility
domestic travel and general weakening of
economic conditions. The introduction and
spread of coronavirus in the United States
caused implementations of travel bans, limited
domestic travel and a downturn in the US
economy. However, revenue is estimated to
rebound in 2021 in line with the cessation of
domestic travel restrictions and an increase in
the percentage of the domestic population
which has been vaccinated. This moderate to
high level of volatility is still subject to change if
economic conditions change over the five
years to 2026, especially as the effect of the
virus is fully realized.

Regulation & Policy
The level of regulation is Medium and this trend
is Steady.

The Hotels and Motels industry is subject to a
medium and steady level of regulation at the
federal and state level.

Several states regulate the activities of
hospitality properties and restaurants, including
safety and health standards, and the sale of
liquor, by requiring licensing, registration,
disclosure statements and compliance with
specific standards of conduct. There are also
extensive state and federal laws and
regulations relating to selling and marketing
timeshare intervals for those hotels that offer
such arrangements.

LABOR RELATIONS
Operators of hotels and motels are also subject
to laws governing their relationship with
employees, including minimum wage
requirements, overtime, working conditions and
work permit requirements.

The industry employs a high number of young
and low-skilled workers at hourly rates, and
therefore, is subject to minimum wage and
employee benefits regulations.

Workers in the United States are entitled to be
paid no less than the statutory minimum wage,
which is $7.25 per hour in 2021. Each state also
formulates and regulates its own minimum
341
wage, with most states implementing rates
higher than the federal rate. National operators
that have establishments in various states must
comply with each individual state's
requirements for each location.

Food Safety And Standards
As many hotels and motels prepare and sell
food on premises, the industry is subject to laws
and regulations relating to the preparation and
sale of food, including regulations regarding
product safety, nutritional content and menu
labeling.

The Food and Drug Administration (FDA) is the
main agency responsible for providing
guidance and regulation. The FDA's Model
Food Code, which is a best-practice guide to
food handling and presentation, applies to this
industry and is updated each year.

The FDA Nutritional Value applies as well. Since
1996, the FDA regulations have set standards
for nutritional values of individual foods and
meals. If claims such as “low-fat” or
39 Market Feasibility
“heart-healthy” are on a menu, an owner must
be able to demonstrate to officials that there is
a reasonable basis for the claim.

For instance, the meal may be based on a
recipe from a health association or a
recognized dietary group. Complete nutritional
information, however, is not required to be on
menus.

The Affordable Care Act requires restaurant
companies to disclose calorie information on
their menus.

The Food and Drug Administration has
proposed rules to implement this provision that
would require restaurants to post the number of
calories for most items on menus or menu
boards and to make available more detailed
nutrition information upon request. FDA
regulations require that restaurants and similar
retail food establishments that are part of a
chain with 20.0 or more locations are required
to provide nutrition information for standard
menu items on menus and menu boards.

However, during the coronavirus pandemic the
FDA has granted restaurants flexibility in
implementing these changes and will not
object if establishments do not meet labeling
requirements during the public health
emergency.

Liquor Licensing
A license is required to serve liquor and the
issuing of licenses may be restricted in some
states, such as limiting the number of licenses in
a given area or by population.

For example, in Wisconsin, there is a license
quota of one license per 500 people.

Additionally, states are able to mandate hours
of operation, the price of each drink, which
establishments are able to serve and how long
an unfinished bottle of wine may be used in the
bar. Hotel and motel operators must comply
with state and local service laws, commonly
called dram shop statutes. Dram shop statutes
generally prohibit serving alcoholic beverages
to certain persons such as an individual who is
342
intoxicated or a minor. In the United States, a
person must be 21 years of age to be legally
served alcohol, which has been in place since
the passing of the National Minimum Drinking
Age Act of 1984
Cybersecurity
After Wyndham Hotels and Resorts
experienced a breach in its data systems, the
Federal Trade Commission (FTC) has increased
its powers and regulations on cybersecurity.

While no regulation has yet to be passed that
outlines exactly the level of cybersecurity a
hotel or motel must have, it has become
increasingly pertinent. The FTC can still fine an
operator if they experience a high-level
security breech. This increases the need for
hotels and motels to implement high level of
data security.

Smoking Bans
Smoking laws are generally enforced at the
state level as the US Congress has not
attempted to enact any nationwide federal
smoking ban.
40 Market Feasibility
Smoking is banned in restaurants, bars and non
hospitality workplaces in many states and some
local jurisdictions ban smoking in outdoor areas.

Each jurisdiction has developed legislation
separately; however, most laws are relatively
consistent.

There are some differences pertaining to the
circumstances in which ventilated smoking
rooms are permitted and the distance smoking
is banned outside a building.

A growing number of cities and states now
require hotels to be 100.0% smoke-free indoors,
including guest rooms. Currently, all hotels and
motels, including guest rooms, must be smoke-
free in Wisconsin, Michigan and Nebraska.

Over the past decade, smoke-free hotels have
gone from being almost nonexistent to the
national norm. The Westin, a Marriott
International Inc. (Marriott) brand, announced
the first national 100.0% smoke-free hotel policy
for all its properties in the United States in 2006
following a report from the Surgeon General
that exposure to secondhand smoke is
damaging to health. This marked a turning
point for the industry and a domino effect led
Marriott to adopt a similar policy across its
portfolio of brands.

Franchising Laws
A large proportion of industry establishments
are operated under franchise agreements.

There are both federal and state laws
governing franchising, which vary from state to
state. Franchising is regulated at the federal
level by the US Federal Trade Commission and
applied in any region within the United States.

At the state level, various state agencies
regulate franchises and laws vary between
states.

A state's franchise laws usually only apply if the
sale of a franchise is made in the state and the
business is located in the state. Laws generally
fall into three categories, which include
disclosure laws, registration laws and
relationship laws.
343
Under the FTC Franchise Rule there are three
elements of a franchise, which include the
franchise has a trademark under which the
franchisee is given the right to distribute goods
and services; the franchisor has significant
control of or provides significance to the
franchisee's method of operation; and the
franchisee is required to pay the franchisor at
least $600.00 within the first six months of
opening for business.

COVID-19
In early 2020, the United States was affected by
the global COVID-19 (coronavirus) pandemic.

While many industries have been affected
heavily by this pandemic, industries related to
hospitality and tourism have been hit especially
hard due to travel bans and stay-at-home
restrictions.

There has been no direct legislation on hotels
and motels in the United States, however, there
has been broad sweeping regulation that
affected industry operators and employees.
41 Market Feasibility
This included the Families First Coronavirus
Response Act. This act required specified
employers to provide their employees with paid
sick leave or expanded family and medical
leave for specified reasons related to
coronavirus.

This regulation likely affected operators that fell
under the designated categories specified by
the act. However, the FFCRA leave
requirements expired December 31st, 2020. In
2021, operators still are contending with
regulations such as the limitation of foreign
travelers into the United States. For example, as
of August, U.S. borders remain closed to most
European travelers, even those with
vaccinations.

Industry Assistance
The level of industry assistance is Low and the
trend is Increasing
As a whole, the Hotels and Motels industry does
not receive on-going and continuous direct
support from local or state governments.

In early 2020, however, many hotel and motel
operators were given stimulus in the form of
money from the US government due to the
COVID-19 (coronavirus) pandemic.

The US Coronavirus Aid, Relief, and Economic
Security (CARES) Act, which was introduced
and signed into law in March 2020, is a $2.0
trillion economic relief package designed to
provide direct economic assistance for
American workers, families and small businesses
as well as preserve jobs for American industries.

The Paycheck Protection Program (PPP), which
was established by the CARES Act, is
implemented by the Small Business
Administration (SBA) and provides small
businesses with funds to pay up to eight weeks
of payroll costs including benefits.

Funds can also be used to pay interest on
mortgages, rent and utilities. Furthermore, in
December 2020, the government passed an
additional $900.0 billion in a COVID-19
(coronavirus) relief bill. The legislation included
another $300.0 billion for the PPP and
344
expanded the kinds of businesses that can
qualify for forgivable loans and grants. Lastly, in
March 2021, a third, $1.9 trillion coronavirus
relief plan was signed into law.

The plan provides $15.0 billion to the
Emergency Injury Disaster Loan program, which
provides long-term, low-interest loans from the
SBA. Moreover, the PPP will receive an
additional $7.0 billion in funds under this relief
plan.

Many industry operators were severely
affected by the coronavirus pandemic as
travel from many international locations was
suspended for months and domestic travel
declined as people were ordered to
quarantine and self-isolate at home throughout
most of the United States.

Aside from direct stimulus provided on rare
occasions, the industry receives other indirect
assistance regularly. In many states, some of
the funds collected by lodging taxes are spent
on promoting local tourism, which can directly
42 Market Feasibility
and indirectly benefit the Hotels and Motels
industry. This tax is often used to promote
tourism within the state. Thus, the industry is an
indirect beneficiary of any promotional tourism
spending by governments, to which operators
may or may not have contributed funds. The
more local tourism is promoted, the more likely
people might be to travel to that location
which typically benefits the region's overall
economy.

Trade groups such as the American Hotel &
Lodging Association also lobby on the industry's
behalf. This is the sole national association that
represents all components of the lodging
industry. This association includes individual
hotel property members, hotel companies,
training organizations, students and suppliers. Its
activities incorporate national advocacy,
public relations and image management,
education and research and information. It
also operates through 43 partner state
associations to provide local representation to
members.
345
The Great Smoky Mountains
Nature and Extent of the
Market and Market Area
346
44 Market Feasibility
Source: Veritas Development Advisors Primary Research
Top 10 things to do in Ontario, CA (per TripAdvisor)
No Name
1 Ontario Mills
2 Toyota Arena
3 Escape Lounge
4 Ontario Convention Center
5 Museum of History and Art, Ontario
6 Animanga
7 Cucamonga-Guasti Regional Park
8 Treasures N Junk
9 K1 Speed Ontario
10 Scandia
1 2
3 4
5 6
7 8
9 10
347
Major Airports Near the Subject Project Data Table and Map 45 Market Feasibility
No. Name Address Miles Away from the Subject Project
1 Ontario International Airport Ontario, CA 91761 3.2
2 Los Angeles International Airport 1 World Way, Los Angeles, CA 90045 58.5 Source: Google Maps, Veritas Development Advisors Primary Research Analysis 348
Significant Demand Generators Near the Subject Project Data Table and Map 46 Market Feasibility
No. Name Address Miles from Subject Project Overnight Stays Demanded Annually 1 Toyota Arena 4000 Ontario Center, Ontario, CA 1.6 Left voice msg with Ontario Econ. Dev. 2 Ontario Convention Center 2000 E Convention Center Way, Ontario, CA 4.9 Left voice msg with Ontario Econ. Dev.

Source: Google Maps, Veritas Development Advisors Primary Research Analysis 349
Restaurants Near the Subject Project Data Table
47 Market Feasibility
No. Name Address Miles Away from the
Subject Project
1 El Chilitos Mexican Restaurant 1630 E 4th St K, Ontario, CA 91764 1.49 2 Zeke's Eatin' Place 1855 E 4th St, Ontario, CA 91764, 1.92 3 Johnny O's Café 8890 8th St, Rancho Cucamonga, CA 91730 2.20 4 Spires Restaurant 104 N Vineyard Ave, Ontario, CA 91764 2.25 5 Ontar Thai Restaurant 750 Archibald Ave, Ontario, CA 91764 3.10 6 Chasqui 8880 Archibald Ave, Rancho Cucamonga, CA 91730 3.12 7 Panda Inn 3223 E, N Centre Lake Dr, Ontario, CA 91761 3.77 8 Jikan Japanese Restaurant 3495 Concours St suite e, Ontario, CA 91764 3.97 9 Benihana 3760 Inland Empire Blvd, Ontario, CA 91764 4.39 10 @ Home Thai Fusion bistro 4275 Concours St Suite 130, Ontario, CA 91764 4.93 11 Chili Bistro-湘巴佬 765 N Milliken Ave ste a, Ontario, CA 91764 4.98 12 Applebee's Grill + Bar 1021 N Milliken Ave, Ontario, CA 91764 5.02 13 Olive Garden Italian Restaurant 4403 Mills Cir, Ontario, CA 91764 5.07 14 Big Wok Mongolian Grill BWRC 11334 Fourth St Ste 103, Rancho Cucamonga, CA 91730 5.08 15 In-N-Out Burger 4310 Ontario Mills Pkwy, Ontario, CA 91764 5.13 16 BJ's Restaurant & Brewhouse 11520 Fourth St, Rancho Cucamonga, CA 91730 5.28 17 Lazy Dog Restaurant & Bar 11560 Fourth St, Rancho Cucamonga, CA 91730 5.40 18 The Sweet Spot Ontario, CA 91764 5.45
19 Rainforest Café 4810 Mills Cir, Ontario, CA 91764 5.59 20 Rubio's Coastal Grill 980 Ontario Mills Dr Suite A, Ontario, CA 91764 5.71 Source: Google Map, Veritas Development Advisors Primary Research Analysis 350
Restaurants Near the Subject Project Map
48 Market Feasibility
Source: Google Map, Veritas Development Advisors Primary Research Analysis 351
Medical Facilities Near the Subject Project Data Table
49 Market Feasibility
No. Name Address Miles Away from the
Subject Project
1 Kindred Hospital Ontario 550 N Monterey Ave, Ontario, CA 91764 0.71 2 San Antonio Regional Hospital 999 San Bernardino Rd, Upland, CA 91786 1.66 3 Chaparral Medical Group 585 N Mountain Ave, Upland, CA 91786 2.09 4 Montclair Hospital Medical Center 5000 San Bernardino St, Montclair, CA 91763 2.87 5 Casa Colina Hospital and Centers for Healthcare 255 E Bonita Ave, Pomona, CA 91767 5.70 6 Pomona Valley Hospital Medical Center 1798 N Garey Ave, Pomona, CA 91767 6.10 7 Emanate Health Inter-Community Hospital 210 W San Bernardino Rd, Covina, CA 91723 14.18 8 Monrovia Memorial Hospital 323 S Heliotrope Ave, Monrovia, CA 91016 20.05 9 Methodist Hospital 300 Huntington Dr, Arcadia, CA 91007 22.54 Source: Google Map, Veritas Development Advisors Primary Research Analysis 352
Medical Facilities Near the Subject Project Map
50 Market Feasibility
Source: Google Map, Veritas Development Advisors Primary Research Analysis 353
Golf Courses Near the Subject Project Data Table
51 Market Feasibility
No. Name Address Miles Away from the Subject Project
1 Red Hill Country Club 8358 Red Hill Country Club Dr, Rancho Cucamonga, CA 91730 2.09 2 Upland Hills Country Club 1231 E 16th St, Upland, CA 91784 2.60 3 Whispering Lakes Golf Course 2525 E Riverside Dr, Ontario, CA 91761 5.23 4 Mountain Meadows Golf Course 1875 Fairplex Dr, Pomona, CA 91768 7.37 5 Marshall Canyon Golf Course 1135, 6100 Stephens Ranch Rd, La Verne, CA 91750 7.45 6 San Dimas Canyon Golf Course 2100 Terrebonne Ave, San Dimas, CA 91773 8.69 7 El Prado Golf Courses 6555 Pine Ave, Chino, CA 91708 9.61 8 Goose Creek Golf Club 11418 68th St, Mira Loma, CA 91752 10.72 9 Sierra Lakes Golf Club 16600 Clubhouse Dr, Fontana, CA 92336 12.41 10 Indian Hills Golf Club 5700 Club House Dr, Riverside, CA 92509 12.79 11 Oak Quarry Golf Club 7151 Sierra Ave, Riverside, CA 92509 12.96 12 Jurupa Hills Country Club 6161 Moraga Ave, Riverside, CA 92509 14.13 13 Van Buren Golf Center 6720 Van Buren Boulevard, Riverside, CA 92503 14.28 14 Colton Golf Course 1901 W Valley Blvd, Colton, CA 92324 16.49 15 Fairmount Golf Course 2681 Dexter Dr, Riverside, CA 92501 16.51 Source: Google Map, Veritas Development Advisors Primary Research Analysis 354
Golf Courses Near the Subject Project Map
52 Market Feasibility
Source: Google Map, Veritas Development Advisors Primary Research Analysis 355
Museums Near the Subject Project Data Table
53 Market Feasibility
No. Name Address Miles Away from the Subject
Project
1 Cooper Regional History Museum 217 E A St, Upland, CA 9178 0.82 2 Ontario Museum of History & Art 225 Euclid Ave, Ontario, CA 91762 1.48 3 Chaffey Community Museum of Art 217 S Lemon Ave, Ontario, CA 91761 1.49 4 Sasse Museum of Art 1334 N Benson Ave STE D, Upland, CA 91786 2.79 5 Cucamonga Service Station 9670 Foothill Blvd, Rancho Cucamonga, CA 91730 3.38 6 The African-American Museum of Beginnings 1460 E Holt Ave Suite 188, Pomona, CA 91767 4.56 7 Petterson Museum of Intercultural Art 730 Plymouth Rd, Claremont, CA 91711 4.70 8 Chino's Old Schoolhouse Museum 5493 B St, Chino, CA 91710 5.19 9 Wignall Museum & Gallery 5885 Haven Ave, Rancho Cucamonga, CA 91737 6.19 10 Latino Art Museum 281 S Thomas St, Pomona, CA 91766 6.31 Source: Google Map, Veritas Development Advisors Primary Research Analysis 356
Museums Near the Subject Project Map
54 Market Feasibility
Source: Google Map, Veritas Development Advisors Primary Research Analysis 357
4th Street Hotel (Subject Project)
55 Market Feasibility

SUITE AMENITIES INCLUDE
Spacious Kitchens
• Stove
• Microwave Oven
• Toaster
• Refrigerator (Full)
• Icemaker In Refrigerator
• Dishwasher
• Pots/Pans/Serving Dishes
• Plates/Glassware
• Silverware
• Dining Table
Flexible Workspaces
• Work Desk With Lamp
• Desk Level Electrical Outlet
• Spare Electrical Outlet at Desk
Connectivity
• Wired Internet Available in Rooms, Suites,
Business Center, Public Areas and Meeting
Convention Spaces.
• Wireless Internet Available in Rooms, Suites,
Business Center, Public Areas and Meeting
Convention Spaces.
• Standard Wireless Internet service is free for
all members
• Two-Line Phone
• Phone with Voicemail

HOTEL AMENITIES INCLUDE
Connectivity
• Wired Internet Available in Rooms, Suites,
Business Center, Public Areas and Meeting
Convention Spaces.
• Wireless Internet Available in Rooms, Suites,
Business Center, Public Areas and Meeting
Convention Spaces.

Housekeeping and Laundry Services
• On-site Guest Self-Laundry Facilities
• Weekly Housekeeping
• Housekeeping Full Service
• Full service - complete room clean.

Site Info
Location 5060 E. 4th Street, Ontario,
California 91764
Rooms 128 (planned)
Room Types
61 Queen Suites
61 DBL Queen Suites
3 ADA DBL Queen Suites
3 ADA Queen Suites
Site Area • 80,000 sq. ft
GBA • 55,250 sq. ft
Story • Four
Parking Area • 19,106 sq. ft
Meeting Room • 1,824 sq. ft
Seating Area • 300 sq. ft
Café/Snack • 331 sq. ft
Fitness • 331 sq. ft
Pool Deck/Spa • 2,353 sq. ft
Lobby • 504 sq. ft
Reception • 110 sq. ft
Laundry • 437 sq. ft
358
Business Services
• On-Site Business Center
• Business Services are available
• Copying
• Office supplies available
• Printer
• Scanner
Entertainment and Recreation
On-site Fitness Center Available
• Limited Offering
• Available Equipment: Elliptical Machines,
Treadmill, Free Weights, Stationary Bicycle
Outdoor Pool Available
• Outdoor Gazebo Grill
56 Market Feasibility
359
The Great Smoky Mountains
Competitive
Market Area Analysis
360
58 Market Feasibility
Home2 Suites by Hilton Azusa
Site Info
Location 229 S Azusa Ave , Azusa, CA 91702
Room 110
Built July 2017
Miles (away) from the
Subject Project 15.23
Room Types
• King Studio Suite -Hearing Accessible
• King Studio Suite- Non-Smoking
• King Studio Suite -Mobility Access/Non-Smoking
• One-bedroom King Suite - Non-Smoking
• King Suite - Mobility Accessible/Non-Smoking
• King Accessible Roll In Shower Suite With Sofa Bed -
Non-Smoking
• King Suite -Hearing Accessible/Non-Smoking
Value
Min Asking Rate $146.00
Max Asking Rate $297.00
Min Mean Asking Rate $175.44
Max Mean Asking Rate $228.86
Mean Asking Rate $203.72
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
Room Rates
Online Survey
$203.72
361
59 Market Feasibility
Homewood Suites by Hilton Ontario Rancho Cucamonga
Site Info
Location 11433 Mission Vista Drive, Rancho Cucamonga,
CA 91730
Room 103
Built November 2005
Miles (away) from the
Subject Project 5.14
Room Types
• Studio Suite, 1 Queen Bed, Non-smoking
• Suite, 2 Queen Beds, Non-Smoking
• Suite, 2 Queen Beds, Accessible , Bathtub (Mobility & Hearing)
• Suite, 1 King Bed, Non-Smoking
• Suite, 1 King Bed, Hearing Accessible
• Suite, 1 King Bed, Accessible, Bathtub (Mobility &
Hearing)
• Suite, 1 King Bed, Accessible (Mobility & Hearing , Roll In Shower)
• Premium Suite, 1 King Bed, Accessible, Bathtub
• Premium Suite, 1 King Bed, Accessible , Non- Smoking
(Hearing)
• Room. 2 Bedrooms. Non-Smoking
• Suite, Accessible, Non - Smoking
• Suite, 2 Queen Beds, Accessible (Roll-in Shower
Value
Min Asking Rate $156.00
Max Asking Rate $537.00
Min Mean Asking Rate $190.00
Max Mean Asking Rate $350.50
Mean Asking Rate $230.38
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
Room Rates
Online Survey
$230.38
362
60 Market Feasibility
TownePlace Suites Ontario Airport
Site Info
Location 9625 Milliken Avenue, Rancho
Cucamonga, CA 91730
Room 112
Built November 2005
Miles (away) from the Subject
Project 5.05
Room Types
• Studio, 1 Queen Bed, Non-Smoking
• Studio, 2 Queen Beds, Non-Smoking
• Suite, 1 Bedroom, Non-Smoking
• Suite 2 Bedrooms, Non-Smoking
Value
Min Asking Rate $167.00
Max Asking Rate $482.00
Min Mean Asking Rate $218.09
Max Mean Asking Rate $359.00
Mean Asking Rate $280.16
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
Room Rates
Online Survey
$280.16
363
61 Market Feasibility
Residence Inn Ontario Rancho Cucamonga
Site Info
Location 9299 Haven Avenue, Rancho Cucamonga,
91730
Room 126
Built December 2018
Miles (away) from the
Subject Project 4.11
Room Types
• Studio, 1 King Bed, Non-Smoking
• Studio, 2 Queen Beds, Non-Smoking
• Suite, 1 Bedroom, Non-Smoking
Value
Min Asking Rate $234.00
Max Asking Rate $448.00
Min Mean Asking Rate $269.91
Max Mean Asking Rate $324.82
Mean Asking Rate $297.69
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
$500.00
Room Rates
Online Survey
$297.69
364
62 Market Feasibility
Extended Stay America Los Angeles - Ontario Airport
Site Info
Location 3990 Inland Empire Blvd, Guasti, CA 91764
Room 127
Built May 1997
Miles (away) from the
Subject Project 4.49
Room Types
• Studio, 1 Queen Bed, Non-Smoking
• Studio, 1 Queen Bed, Accessible Non-Smoki
• Studio, 1 King Bed, Non-Smoking
• Studio, 2 Double Beds, Non-Smoking
Value
Min Asking Rate $118.00
Max Asking Rate $169.00
Min Mean Asking Rate $122.64
Max Mean Asking Rate $145.30
Mean Asking Rate $131.32
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
Room Rates
Online Survey
$131.32
365
63 Market Feasibility
Element Ontario
Site Info
Location 900 Via Piemonte, Ontario, 91764
Room 131
Built May 2020
Miles (away) from the
Subject Project 4.65
Room Types
• Room,1 King Bed, Non-Smoking
• Studio,1 King Bed, Non-Smoking
• Studio,1 King Bed, Non-Smoking
• Suite, 1 Bedroom, Non-Smoking
Value
Min Asking Rate $184.00
Max Asking Rate $399.00
Min Mean Asking Rate $214.18
Max Mean Asking Rate $278.09
Mean Asking Rate $242.86
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
Room Rates
Online Survey
$242.86
366
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
$100.00 $120.00 $140.00 $160.00 $180.00 $200.00 $220.00 $240.00 $260.00 Min, Max and Mean Asking Rates of Hotels Compared to Subject Project 64 Market Feasibility
Summary of ADR in the Market
Subject Project ADR $120.00
The Company’s ADR
assumption/expectation for
the Subject Project appears
reasonable when compared
to market rates.

ADR: $242.86
ADR: $131.32
ADR: $120.00
ADR: $203.72
Excellent Very good Medium Weak
ADR: $230.38
ADR: $297.69
Max Asking Rate
Min Asking Rate
ADR: $280.16
367
The Great Smoky Mountains
Smith Travel
Research Report Analysis
368
66 Market Feasibility
Smith Travel Research STR Report – Hotels in the Market Area

0.0 20.0 40.0 60.0 80.0 100.0
2017
2018
2019
2020
2021
Avg
Occupancy
December November October September August July
June May April March February January

53.1 Percent
May 2020
Min
Occupancy

93.4 Percent
March 2021
Max
Occupancy

81.5 Percent
Aug 2017 – April 2021
Avg.

Occupancy
Company Projections Vs. Market Area
OptimisticConservative Reasonable

82.0 – 85.0 Percent
Stabilized
Company
Expectations
Average
369
67 Market Feasibility
Smith Travel Research STR Report – Hotels in the Market Area -10.00 10.00 30.00 50.00 70.00 90.00 110.00 130.00 2017
2018
2019
2020
2021
Avg
ADR
December November October September August July
June May April March February January
$96.44
May 2020
Min
ADR
$129.26
August 2019
Max
ADR
$118.10
Aug 2017 – April 2021
Avg.

ADR
370
68 Market Feasibility
Smith Travel Research STR Report –Hotels in the Market Area -10.00 10.00 30.00 50.00 70.00 90.00 110.00
2017
2018
2019
2020
2021
Avg
RevPAR
December November October September August July
June May April March February January
$51.17
May 2020
Min
RevPAR
$114.72
October 2018
Max
RevPAR
$96.76
Aug 2017 – April 2021
Avg.

RevPAR
371
69 Market Feasibility
Smith Travel Research STR Report – Hotels in the Market Area

65.00 70.00

75.00 80.00

85.00 90.00
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
January February March April May June July August September October November December Demand Versus Supply (Average 2017 - 2021)
Demand Supply Occupancy
372
70 Market Feasibility
Market Area Dilution Analysis

50.00%

55.00%

60.00%

65.00%

70.00%

75.00%

80.00%

85.00%
Year 1 Year 2 Year 3 Year 4 Year 5
Occupancy

65.00 Percent
Threshold
Based on the supply and demand analysis (pre-COVID) within the market area, it appears as though occupancy will likely remain above 65 percent over the next five years. 373
71 Market Feasibility
Summary of Occupancy, RevPAR, ADR and Demand in the Market Area

81.5%
Smith Travel
Research Report
Occupancy Rate
-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%
Occupancy ADR RevPAR Demand
Percentage Change from Previous Year (Average)

82.0%
to

85.0%
Company
Forecasts
Excellent Very good Medium Weak

80.4 Percent Weekend
Occupancy

78.4 Percent Weekday
Occupancy
No Risks
Identified
All Key
Parameters
Room: 124
Room Nights: 45,260
Subject
Project
Based on the STR report, the Subject Project’s rooms are expected to be absorbed in the market area.

Approx. 124-Keys
Construction Pipeline
New Hospitality
Supply Units
374
3,937 584 2,755 749 2,947 4,242 124
15,338
Current Room Counts within 15 Mile Radius
72 Market Feasibility
Subject Project Penetration Rate:
• The graph, derived from data obtained from Smith Travel Research, shows hotel types and room counts in a 15-mile radius from the Subject Project.
• This geographic footprint contains about 15,338 total rooms which accounts for about 5,460,328 total room nights.
• The Subject Project plans call for 128 keys, which is 46,720 room nights, and represents a penetration rate of ~ 0.8 percent of the total market. • Based on the STR report, it appears as though the Subject Project rooms will be absorbed in the market area as the demand for the market appears to be growing at a CAGR of ~16.30 percent.

3.25%

21.92%

4.65%

17.09%

4.34%

3.02%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%
Subject Project Penetration of Various
Hotel Classes Within 15 Miles
Independent
Upper Upscale
Upscale
Midscale
Economy
Upper Midscale

25.67%

3.81%

17.96%

4.88%

19.21%

27.66%

0.81%
Room Stocks Percentage
Independent
Upper Upscale
Upscale
Midscale
Economy
Upper Midscale
Under Construction
Total Room
Nights
5,460,328
room nights15,338 keys

0.80 Percent of the
total market area
Subject Project
Market Share
375
Discuss adequacy of management (experience, training, and education of management).

Leadership Team
73 Market Feasibility
Hero Hotels, LLC
The Company is a fully integrated real estate development company specializing in hotel development with a focus in the California and Texas market areas. The Company also specializes in asset management, hotel property management, and revenue management, with a strong focus on an aggressive sales and marketing strategies, so that their hotels are run at maximum efficiencies.

Company principals have owned, operated, and developed real estate assets for the last thirty years and have partnered with well-known franchises such as Holiday Inn Express, Best Western, Days Inn, Ramada, Four Points and Choice.

Dipak Patel| Founder &
Principal- Operations
Focus: Hotel Operations
Education: UCLA, Bachelors of Science- Bachelors of Science in Economics Other: Owner and Operator of Hotels for 30 plus years in Southern California; liaison to the community relations and experience entrepreneur.

Amar Patel| Founder &
Principal- Development
Focus: Acquisitions, real estate development, construction, design & architecture Education: University of Southern California (USC), Bachelors in Business Administration, Real Estate Finance, Masters of Science (USC) for Construction Management
Other: USC Construction Alumni Group, Founder; 10 plus years in Project Management with RD Olson Construction. 376
A complete listing of proposed facilities,
amenities, and services (i.e.: number and type
of rooms, meeting space square footage,
recreational amenities, business services such
as data ports-workstations-etc., refrigerators in
room, laundry service, restaurant-coffee shop-
food service, etc.);
See PP55, 56.

History of proposed developer and potential
operators (i.e.: years in business, principals,
capitalizing, experience, listing of projects,
number of units owned, average rates charged,
occupancy rates, etc.);
See P73.

Analysis of economic environment projecting
likely future economic conditions as they
relate to the operation of the subject hotel;
See PP9-17.
74 Market Feasibility
Subjects competitive market (i.e.: identification
of their market, 3 and 5 year history of
occupancy, average daily rate, revenue per
available room trends for that market,
estimated share of the market the hotel will
capture during the first five years of operation,
etc.);
See PP57-72.

Analysis of the economic impacts on existing
hotel markets within Ontario (i.e.: estimate of
the dilution of the market due to addition of
proposed hotel, etc.). Note: new hotel projects
should only be approved if competitive market
occupancy remains at or above 65 percent for
a five year projection period;
See PP70-72.

Relationship to demand generators (i.e.: airport,
convention center, corporate market,
shopping and entertainment);
See PP45-54.

Public cost/revenue projections.

This item does not apply to the Subject Project
as planned.
377
The Great Smoky Mountains
Project Experience (Partial List)
• Upscale Hotels in California
• Midscale Hotels in California
• Midscale Hotels in Arizona
• Luxury Hotels in Florida
• Luxury Hotels in California
• Midscale Hotels in Texas
• Upper Midscale Hotels in California
• Cannabis Grow House Expansion in Florida
• Hydroponic Facility acquisition in Puerto Rico
• Hydroponic in Florida
• Retail Fruits and Vegetables project in Hurst, Texas
• Indoor Sports Complex in Texas
• Indoor Sports Complex in North Carolina
• Indoor Game Center in New Jersey
• Squash Academy in New Jersey
• Neighborhood Retail Center in Florida
• Biofuel Facility in Hawaii
• Hospitals in Louisiana
• Mobile Home Parks in Louisiana
• Cold Storage Facility in Wisconsin
• Cold Storage Facility in New Jersey
• Self Storage Facility in Texas
• Car Wash in California
• Medical Waste to Energy in Rhode Island
• Wheat, Corn and Forage Operation
• Frac Sand Manufacturing Plant
• 52 Oil and Gas Wells in Kentucky
• Golf Center and Hotel in Colorado
• Indoor Gym & Wellness Center in Idaho
• Indoor Sports Complex in North Carolina
• Nursery and Landscaping in Maryland
• Assisted Living and Memory Care in Michigan
• Marina Expansion in Kentucky
• Apartment Complex in Texas
• Football Stadium in Riyadh
• Pipe Factory in Sweden
378
Resume of the Analyst
International Publications/Awards
― Investment Foundations certificate by CFA Institute, ID: 204095 ― Financial Modelling and Valuation Analyst, ID: 21257732 ― Capital Market and Securities Analyst, ID: 22013916
― Certified Banking and Credit Analyst, ID: 22717302
― Hotel Valuation, American Appraisal Institute, ID: 2637 ― Forecasting Revenue, American Appraisal Institute, ID: 2637 ― CFA level 1 (Passed), ID: 9445336
― Project Management (University of New South Wales), ID: 3250978 ― Business Management (University of New South Wales), ID: 3250978 ― Crystal Ball (Oracle), ID: 41909
― University of New South Wales, Australia– Master with Business Management, ID: 3250978
― University of Engineering and Technology, ID: 100312
― International Merger & Acquisition Expert ID: 592
― Merger & Acquisition Professional ID: 593
Standardizing your
expectations
May 8, 2016 publication

Forbes
Entrepreneurship
Award 2015
Four ways to decrease
your venture's burn rate
Jan 1, 2016 publication

Education/Courses/Certifications
Awais Dilawer, B.E, MBA eq, FMVA, CMSA, CBCA, IM&A,
M&AP, American Appraisal Institute Certified, CFA
Investment Foundations Certificate Holder, Completed
Level I in 2021 (1st Attempt), CFA Level II (Candidate) Over fifteen years of experience in investment, venture capital, business management and consulting with a demonstrated record of consistent achievements across different organizations globally.

Specialties include feasibility and due diligence of investment opportunities, business strategy and planning, investment strategy development, deal negotiation and structuring.
76 Certifications
379
Key Success
Resume of the Analyst
Veritas Development Advisors,
LLC. – Senior Analyst
Consultant roles in different
transactions across USA, Europe,
Middle East and Asia Pacific.

Senior Investment Associate for
private equity and venture
capital investments
Different roles in sectors: FMCG,
power & gas, manufacturing,
petrochemical and refineries.

Professional
History
Present
Jan 2010 to Present
Jan 2010 to March 2018
Sep 2005 to 2010
― Prepared and supervised feasibility study, due diligence and business plan of various complexities across USA, EU and other regions. ― Built and recommended investment committee and board in managing real estate portfolio of million US Dollars in value (commercial malls, hospitals, stadiums, hotels, residential apartments, villas, etc.) ― Experienced in performing in depth transaction financial and commercial diligence using internal and external resources
― Assessed risk and impact analysis for different business opportunities and proposing solutions to deal with potential threatening investment risks. ― Analyzed, reviewed and evaluated reports in the area of ICT, Renewable Energy, Life Sciences Health Care and manufacturing sector in the deals pipeline
― Conducted equity valuations both for transactions and financial reporting purposes
― Developed Investment MEMO’s and deal reports for board and potential investors especially for the private equity and venture capital funds. ― Advised clients on financial feasibilities of large projects and conducted market research studies.
― Hands on experience in preparation of legal documents in coordination with internal and external resources.
― Experienced in identifying and sourcing investments in private equity and venture capital funds.
― Managed a team of different resources and contributed to their professional development. Extensive experience of talent management, coaching, development and mentoring.
― Led equity investment projects, help structuring and negotiating transactions from start to close.

Key Experience
Led due diligence and feasibility study of a biotech based in California. The transaction involved arranging financing. The target company listed on Nasdaq with the market cap of
more than a billion dollar.

Worked on the due diligence and feasibility study on an electric vehicle startup with the transaction valued more than $100 million. The target company is listed in Hong Kong Exchange with the market cap of 400 million dollar.

Successfully conducted feasibility study and due diligence of a Dutch based EV charging station company for a private equity fund. The Company is listed on Amsterdam Exchange with the market cap of 170 million dollar..
77 380
Resume of the Analyst
Key Projects throughout his career include:
78 Manufacturing:
• Battery Manufacturing, WA
• Operational Assessment Steel Plant, ME
• Dairy Farm, GA
• Shrimp Farm, AZ,
• Solar Cells Manufacturing, CA
• Aseptic Packaging Food & Beverage Plant, WV
• Bunker Fuel Oil Processing Plant, TX
• Oil and Gas Drill Fuel Wastewater Plant, OH
• Dairy Biogas Digester, WI, TX, AZ
• Yard Waste Disposal and Composting Facility, FL
• Charcoal Manufacturing, OK
• Aluminum processing facility, TX
• Hydroponics, TX, PR
• Concrete Manufacturing Plant, USVI
• Water Bottling Factory, ME
• Chip Manufacturing, ME
• Biofuel Processing, HI
• Medical Waste, RI
• Oil and Gas Wells, KY
• Frac Sand Facility, OK
• Pipe factory, EU
• Automotive, ME
• Solar Panels Coating, EU
Healthcare & Life science:
• Addiction Center, MD, PA
• Biotech, CA
• Assisted Living & Memory Care, WI, UT, TX, FL, MI, CO • Therapy and Skilled Day School Facility, FL
• Child Day Care, NV
• Hospitals, LA
• Biosimilars Manufacturing, MA
• Vaccine Manufacturing Plant, WA
• Diabetes Center, ME
• Health Information System, MO
Real Estate:
• Self Storage & RV Storage, NV, PA
• Outdoor Soccer Facility, NM
• Car Wash, CA, NV, TX
• Multicomplex Apartments, TX, LA, CA
• Leadership School, UT
• Equestrian Center, TX
• Cold Storage, FL, WI
• Primrose Schools, MD, VA
• Historic Park, IL, KY
• Indoor Sports Complex, NC, NM, TX, ID
• Gas Station with Convenience Store, UT, CA
• Nursey and Landscaping, MD
• RV Park, FL
• Indoor Shooting Range, VA
• Golf Sports Complex, CO
• Distribution & Shipping Facility, TX
• Marina, KY
• Mobile Home Park, LA
• Neighborhood Shopping Center, FL
• Squash Academy, NJ
• Private School, WA, EU
• Stadium, ME
Restaurant:
• Culver, AZ
• Independent Restaurants, UT, NM
• Buffalo Wings, KY
• Dairy Queen, GA
• Cinnabon, ME
• McDonald, ME
• Subway, ME
Hotels & Resorts:
• Baymont Inn & Suites, AZ
• Hilton Hotel, PA, CA, AZ
• Best Western, CA,
• Best Western Plus, TX
• Fairfield Inn& Suites, CA
• Mainstay Suites, TN
• Holiday Inn, TX
• Motel 6, CA
• Independent Hotels, CA, FL, UT
• Resort, NY
• Dual Branded Hotel, AL
• Banquet Hall, CA
• Event Center, TX
• Comfort Suites, CA
• Hampton Inn & Suites, CA
• Marriot, CA
381
79 Contact Us
Veritas Development Advisors, LLC (“VDA”)
Steve Alves, Managing Partner
Email: [email protected]
Ph: 240-626-1209
382
Planning Commission Staff Report
File Nos. PDEV21-021 and PCUP21-009
February 22, 2022
Exhibit L—PARKING STUDY
(Document follows this page)
383

Trames 0365-0001
4225 Oceanside Blvd., #354H
Oceanside, CA 92056
(760) 291 - 1400

October 21, 2021

Roger Barbosa
Milestone Management
9891 Irvine Center Dr., Suite #200
Irvine, CA 92618

Subject: Extended Stay Hotel Parking Study (JN 0365-0001)

Dear Mr. Barbosa:

Trames S olutions Inc. is pleased to submit the following parking evaluation for the proposed Extended Stay Hotel development. It is our understanding that t he site is proposed to be developed with a 128 room hotel. The project site is located at 5060 E.

Fourth St. in the City of Ontario.

INTRODUCTION

The proposed project consists of a 128-room hotel with an 1,824 sf meeting room, and a 331 sf cafe. Attachment A contains the site plan that shows a total of 118 parking spaces consisting of 106 regular spaces, 5 handicap spaces, and 7 electric vehicle spaces.

The intent of th is parking evaluation is to determine the parking requirements of the proposed uses based on the Cit y’s parking code and the potential requirements of the project due to the nature of the proposed land uses.

384
Roger Barbosa
Milestone Management
October 21, 2021

Trames 0365-0001

CITY OF ONTARIO PARKING CODE REQUIREMENTS

Proposed Project
The following parking rate is based on the City of Ontario for the use associated with the proposed site:

• Hotel = 1 space per room

Therefore, according to the City’s requirements, the following number of parking spaces would be required for the proposed project:

Hotel: 128 rooms x (1 space per room) = 128 spaces

PARKING REDUCTION MEASURES

The proposed project will consist of several factors that can reduce the number of parking spaces required for the site. These “mode and noncaptive adjustment” factors include the location of the project ( urban environment), provision/proximity to public tran sit opportunities, and ride hailing opportunities.

The typical patron of the proposed hotel use is anticipated to arrive from the Ontario International Airport (about 5 miles away) to attend a conference or meeting in the adjacent area or attend an event at the Ontario Convention Center. Rather than renting a car, it is anticipated that the patrons will arrive at the hotel via a ride hailing service since the cost and convenience of such services outweigh the difficulty and expense of renting a vehicle.

Ride Hailing Services
Uber/Lyft provide on-demand transportation services for a reasonable cost. Once at the hotel, guests can use the Uber/Lyft services to travel to their nearby meetings/conferences rather than renting a vehicle.
385
Roger Barbosa
Milestone Management
October 21, 2021

Trames 0365-0001

Public Transit
Public bus service is provided by Omnitrans Route 61 and can be taken to the Ontario Airport or other various amenities.

Urban Location
The u rban environment promotes pedestrian mobility in lieu of vehicle s. Many of the restaurants/attractions are within walking distance of the hotel. Sidewalks and signalized intersections provide controlled crossings.

Urban Land Institute (ULI) Recommended Reduction Measures The Urban Land Institute has provided mode and noncapti ve parking reduction percentages for a hotel based on the factors listed above. ULI has indicated a 41 % reduction factor during the weekday and a 31 % reduction factor during the weekend in visitor parking for a hotel located in the vicinity of a suburban location (Shared Parking, 3rd Edition, Urban Land Institute, 2020, Figure 4 -18 Suggested Mode and No ncaptive Adjustment Factors for Hotels). Since the hotel will contain an 1,824 sf meeting room and a 331 sf cafe, th ese uses w ere also accounted for in the parking calc ulations.

Furthermore, parking demands at hotels peak at different times of day/different months of the year. ULI’s publication Shared Parking, 3rd edition (2020) provides the peaking factors by time of day and month. For the analysis provided in this report, the highest peaks (worst case conditions) were used.

The peak parking demands can be determined by applying the factors and peak demands by time of day/month for the proposed hotel use as shown below. Based on the application of these factors, the hotel will have a peak demand of 94 spaces at 8 AM on a weekday and 105 spaces at 8 AM on a weekend . Attachment B contains the summary o f the project’s peak parking demands based on the ULI factors.

386
Roger Barbosa
Milestone Management
October 21, 2021

Trames 0365-0001
Weekday at 8 AM

Suburban Hotel:

Rooms (128 rooms x 1 space/room) = 128 spaces Adjustment due to ride hailing/public transit/suburban location (41% reduction) = -52 spaces
Peak hour adjustment (10% reduction) = -8 spaces Subtotal = 68 spaces

Employees (128 rooms x .15 space/room) = 19 spaces Subtotal = 19 spaces

Meeting Room (1,824 sf x 8.72 space/tsf) = 16 spaces Peak hour adjustment (70% reduction) = -11 spaces Employees (2,155 sf x 1.39 space/tsf) = 3 spaces Peak hour adjustment (40% reduction) = -1 space Subtotal = 7 spaces

Total = 94 spaces

387
Roger Barbosa
Milestone Management
October 21, 2021

Trames 0365-0001
Weekend at 8 AM

Suburban Hotel:

Rooms (128 rooms x 1 space/room) = 128 spaces Adjustment due to ride hailing/public transit/suburban location (31% reduction) = -40 spaces
Peak hour adjustment (10% reduction) = -9 spaces Subtotal = 79 spaces

Employees (128 rooms x .15 space/room) = 19 spaces Subtotal = 19 spaces

Meeting Room (1,824 sf x 6.78 space/tsf) = 12 spaces Peak hour adjustment (70% reduction) = -8 spaces Employees (2,155 sf x 1.41 space/tsf) = 3 spaces Peak hour adjustment (40% reduction) = -1 space Subtotal = 6 spaces

Total = 104 spaces

388
Roger Barbosa
Milestone Management
October 21, 2021

Trames 0365-0001

CONCLUSIONS

Based on the City’s requirements, a total of 128 parking spaces would be required for the proposed 128 room hotel project. The City’s parking code does not differentiate between the various hotel types nor where they are located. For example, a resort/family hotel may require more parking spaces than a suburban hotel located near a hotel since renting a passenger vehicle may be more economical/convenient for a family on vacation than using a ride hailing service.

As indicated in this study, a reduction in the number of parking spaces for a suburban hotel has been determined due to the close proximity to the Ontario Airport, the economic advantage and convenience of ride hailing service s, and the availability of public transit services. The analysis indicates that a total of 94 parking spaces on a weekday and 104 parking spaces on a weekend would be the peak parking demands of the proposed hotel due to the factors described above. Since the project is proposed to provide 118 spaces for the hotel, a surplus of 14 parking spaces would be provided for the hotel during the peak demand timeframe.

If there are any questions regarding this evaluation, please do not hesitate to call me at (949) 244-2436.

Respectfully submitted,
Trames Solutions Inc.

Scott Sato, P.E.

Vice President

Attachment A – Site Plan
Attachment B - Shared Parking Summary
389

Trames 0365-0001

ATTACHMENT A

SITE PLAN
390
391
392

Trames 0365-0001

ATTACHMENT B

ULI PEAK PARKING DEMAND SUMMARY
393
Copyright © 2020 All rights reserved. The Urban Land Institute, International Council of Shopping Centers, and National Parking Association.

Project: Extended Stay
Description: 128 room hotel
Quantity Unit 8 AM March 8 AM March
Hotel-Business keys 1.00 59% 100% 0.59 key 1.00 69% 100% 0.69 key 80% 90% - 80% 90% - Hotel-Leisure 128 keys 1.00 59% 100% 0.59 key 1.00 69% 100% 0.69 key 90% 100% 68 90% 100% 79 Hotel Employees 128 keys 0.15 100% 100% 0.15 key 0.15 100% 100% 0.15 key 100% 100% 19 100% 100% 19 Restaurant/Lounge 331 sf GLA 6.67 63% 90% 3.78 ksf GLA 7.67 54% 30% 1.24 ksf GLA 30% 95% - 30% 95% - Meeting/Banquet (0 to 20 sq ft/key) 1,824 sf GLA 21.38 68% 60% 8.72 ksf GLA 14.25 68% 70% 6.78 ksf GLA 30% 100% 5 30% 100% 4 Meeting/Banquet (20 to 50 sq ft/key) sf GLA 0.00 68% 60% 0.00 ksf GLA 0.00 68% 70% 0.00 ksf GLA 30% 100% - 30% 100% - Meeting/Banquet (50 to 100 sq ft/key) sf GLA 0.00 68% 60% 0.00 ksf GLA 0.00 68% 70% 0.00 ksf GLA 30% 100% - 30% 100% - Convention (100 to 200 sq ft/key) sf GLA 0.00 68% 60% 0.00 ksf GLA 5.50 68% 70% 2.62 ksf GLA 50% 90% - 50% 90% - Convention (> 200 sq ft/key) sf GLA 5.50 68% 60% 2.24 ksf GLA 5.50 68% 70% 2.62 ksf GLA 50% 90% - 50% 90% - Restaurant/Meeting Employees 2,155 sf GLA 1.39 100% 100% 1.39 ksf GLA 1.41 100% 100% 1.41 ksf GLA 60% 100% 2 60% 100% 2 73 83
21 21
- -
94 104
Additional Land Uses
Total
Reserved
Employee/Resident
CustomerCustomer/Visitor
Employee/Resident
Total
Reserved
Office
Base
Ratio
Unit For
Ratio
Estimated
Parking
Demand
Retail
Non-
Captive
Ratio
Project
Ratio
Non-
Captive
Ratio
Project
Ratio
Driving
Adj
Entertainment and Institutions
Hotel and Residential
Food and Beverage
Base
Ratio
Driving
Adj
Peak Hr
Adj
Weekend
Shared Parking Demand Summary
Peak Month: MARCH -- Peak Period: 8 AM, WEEKEND
WeekdayWeekendWeekday
Project DataLand Use Peak Mo
AdjUnit For
Ratio
Estimated
Parking
Demand
Peak Hr
Adj
Peak Mo
Adj
394
September 2018 Program (Un-Nested Residential)
0 20
40 60
80 100
120
140Parking Stalls
Hour
Peak Month Daily Parking Demand by Hour (Weekday)
Hotel Total Supply
395
September 2018 Program (Un-Nested Residential)
0 20
40 60
80 100
120
140
Parking Stalls
Hour
Peak Month Daily Parking Demand by Hour (Weekend)
Hotel Total Supply
396
RESOLUTION NO. PC22-011

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

ONTARIO, CALIFORNIA, RECOMMENDING APPROVAL TO CITY
COUNCIL FOR FILE NO. PCUP21-009, A CONDITIONAL USE PERMIT TO ESTABLISH AND OPERATE A LIMITED-SERVICE HOTEL ON 1.83 ACRES OF LAND LOCATED AT 5060 EAST FOURTH STREET, WITHIN

THE FREEWAY COMMERCIAL LAND USE DISTRICT OF THE

EXCHANGE SPECIFIC PLAN , AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 0238-012-30.

WHEREAS, ROGER BARBOSA ("Applicant") has filed an Application for the approval of a Conditional Use Permit, File No. PCUP21-009, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and

WHEREAS, the Application applies to 1.83 acres of land located at 5060 East Fourth Street, within the Freeway Commercial land use district of The Exchange Specific Plan, and the site is presently vacant; and

WHEREAS, the property to the north of the Project site is within the Freeway Commercial land use district of The Exchange Specific Plan and is developed with a multi- tenant retail building. The property to the east is within the Open Space zoning district and is developed with Southern California Edison transmission lines. The property to the south is within the Freeway Commercial land use district of The Exchange Specific Plan and is currently vacant. The property to the west is Interstate 15; and

WHEREAS, on June 4, 2021, the Applicant submitted File No. PCUP21 -009, a Conditional Use Permit application requesting approval to establish and operate a limited- service hotel land use on the Project site; and

WHEREAS, the proposed Conditional Use Permit was submitted for concurrent processing with File No. PDEV21-021, a Development Plan to construct a 4-story, 128- room Extended Stay Hotel on the Project site; and

WHEREAS, in 2003, the City approved The Exchange Specific Plan, a 23.60-acre master plan for the project area. The Exchange Specific Plan is composed of two land use districts, including the Freeway Commercial land use district, which comprises the northerly 12.03 acres of the Specific Plan, and the Industrial Park land use district, which comprises the southerly 11.57 acres of the Specific Plan; and

WHEREAS, the City’s Development Code requires that all new h otels must be reviewed under concurrently filed Conditional Use Permit and Development Plan applications. The purpose of the Conditional Use Permit application and review is to ensure that the proposed use will be operated in a manner consistent with all l ocal regulations, and to ensure the use will not be detrimental to the public health, safety, or 397
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welfare, or materially injurious to uses, properties or improvements in the vicinity. More specifically, in the case of hotels, the Conditional Use Permit is required to establish the project’s market feasibility and ensure on- going compliance with the minimum amenity package required by the Development Code; and

WHEREAS, in fulfillment of the requirements of Development Code Section

5.03.250.C (Market Feasibility Report Required), the Applicant has submitted a Market Feasibility Study, which demonstrates that the local market can support the development of a new hotel. The Study, prepared by Veritas Development Advisors (dated October 21, 2021), includes analysis and market research related to the proposed project. The Study found that the local market can support a limited- service hotel on the Project site. The study’s conclusions are based primarily upon the growth in the Inland Empire, the area’s proximity to the Los Angeles area, the Ontario Convention Center, the Ontario International Airport, California Speedway in Fontana, and the Project’s proximity to the Ontario Mills Mall. The report includes an analysis of other similar hotels in the area, long- term viability, and overall demand due to new businesses and activities in and around the City; and

WHEREAS, the proposed Project has met or exceeded the minimum amenity package requirements, as stipulated by Section 5.03.250.D (Minimum Amenity Package) of the City’s Development Code; and

WHEREAS, the Application is a project pursuant to the California Environmental Quality Act, commencing with Public Resources Code Section 21000 (hereinafter referred to as "CEQA"); and

WHEREAS, the Project is exempt from CEQA pursuant to a categorical exemption (listed in CEQA Guidelines Article 19, commencing with Section 15300) and the application of that categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and

WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the Planning Commission the responsibility and authority to review and make recommendation to the City Council on the subject Application; and

WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan, as State Housing Element law (as prescribed in Government Code Sections 65580 through 65589.8) requires that development projects must be consistent with the Housing Element, if upon consideration of all its aspects, it is found to further the purposes, principals, goals, and policies of the Housing Element; and

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WHEREAS, the Project is located within the Airport Influence Area of Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and is subject to, and must be consistent with, the policies and criteria set forth in the Ontario International Airport Land Use Compatibility Plan (“ALUCP”), which applie s only to jurisdictions within San Bernardino County, and addresses the noise, safety, airspace protection, and overflight impacts of current and future airport activity; and

WHEREAS, City of Ontario Development Code Division 2.03 (Public Hearings) prescribes the manner in which public notification shall be provided and hearing procedures to be followed, and all such notifications and procedures have been completed; and

WHEREAS, on February 7, 2022, the Development Advisory Board of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date, voting to issue Decision No. DAB22-007, recommending that the Planning Commission recommend the City Council approve the Application; and

WHEREAS, on February 22, 2022, the Planning Commission of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and

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

NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED, AND RESOLVED by the Planning Commission of the City of Ontario, as follows:

SECTION 1: Environmental Determination and Findings. As the recommending authority for the Project, the Planning Commission has reviewed and considered the information contained in the administrative record for the Project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Planning Commission, the Planning Commission finds as follows:

(1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City of Ontario Local CEQA Guidelines; and

(2) The Project is categorically exempt from environmental review pursuant to Section 15332 (Class 32, In-Fill Development Projects) of the CEQA Guidelines , which consists of: (a) the Project is consistent with the applicable general plan designation and all applicable general plan policies, as well as the applicable zoning designation and regulations; (b) the proposed development occurs within city limits, on a project site of no more than five acres, and is substantially surrounded by urban uses; (c) the Project site 399
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has no value as habitat for endangered, rare, or threatened species; (d) approval of the Project will not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the Project site is adequately served by all required utilities and public services; and

(3) The application of the categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and

(4) The determination of CEQA exemption reflects the independent judgment of the Planning Commission.

SECTION 2: Housing Element Compliance . Pursuant to the requirements of California Government Code Chapter 3, Article 10.6, commencing with Section 65580, as the recommending authority for the Project, the Planning Commission finds that based on the facts and information contained in the Application and supporting documentation, at the time of Project implementation, the project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan, as the project site is not one of the properties in the Available Land Inventory contained in Table A-3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix.

SECTION 3: Ontario International Airport Land Use Compatibility Plan (“ALUCP”) Compliance. The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan. On April 19, 2011, the City Council of the City of Ontario approved and adopted the ALUCP, establishing the Airport Influence Area for Ontario International Airport (hereinafter referred to as “ONT”), which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties , and limits future land uses and development within the Airport Influence Area, as they relate to noise, safety, airspace protection, and overflight impacts of current and future airport activity. As the recommending authority for the Project, the Planning Commission has reviewed and considered the facts and information contained in the Application and supporting documentation against the ALUCP compatibility factors, includi ng [ 1] Safety Criteria (ALUCP Table 2-2) and Safety Zones (ALUCP Map 2-2), [2] Noise Criteria (ALUCP Table 2-3) and Noise Impact Zones (ALUCP Map 2 -3), [3] Airspace protection Zones (ALUCP Map 2- 4), and [ 4] Overflight Notification Zones (ALUCP Map 2- 5). As a result, the PLANNING COMMISSION , therefore, finds and determines that the Projec t, when implemented in conjunction with the conditions of approval, will be consistent with the policies and criteria set forth within the ALUCP.

SECTION 4: Concluding Facts and Reasons. Based upon the substantial evidence presented to the Planning Commission during the above- referenced hearing, 400
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and upon the specific findings set forth in Sections 1 through 3, above, the Planning Commission hereby concludes as follows:

(1) The scale and intensity of the proposed land use would be consistent with the scale and intensity of land uses intended for the particular zoning or land use district. The proposed location of the Conditional Use Permit is in accord with the objectives and purposes of the City of Ontario Development Code and The Exchange Specific Plan, and the scale and intensity of land uses intended for the Freeway Commercial land use district in which the use is proposed to be located. Furthermore, the proposed 128-room, hotel land use will be established and operated consistent with the objectives and purposes, and development standards and guidelines of the Freeway Commercial land use designation of The Exchange Specific Plan; and

(2) The proposed use at the proposed location, and the manner in which it will be operated and maintained, is consistent with the goals, policies, plans and exhibits of the Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. The proposed 128-room hotel land use will be located within the Planned Commercial land use district of the Policy Plan Land Use Map, and the Freeway Commercial land use district of The Exchange Specific Plan. The development standards, and the conditions of approval under which the proposed land use will be established, operated, and maintained, are consistent with the goals, policies, plans, and exhibits of the Vision, City Council Priorities, and Policy Plan (General Plan) components of The Ontario Plan; and

(3) The proposed use at the proposed location, and the manner in which it will be operated and maintained, is consistent with the objectives and requirements of the Development Code and any applicable specific plan or planned unit development. The proposed 128-room hotel land use is located with the Freeway Commercial land use district of The Exchange Specific Plan and has been reviewed and conditioned to ensure the establishment, operation and maintenance of the proposed land use consistent with all applicable objectives, purposes, standards, and guidelines of the Development Code and The Exchange Specific Plan; and

(4) The establishment, maintenance, and operation of the proposed use at the proposed location would not be detrimental or injurious to property and improvements within the vicinity, nor would it be detrimental to the health, safety, or general welfare of persons residing or working in the surrounding neighborhood. The Development Advisory Board has required certain safeguards , and impose certain conditions of approval, which have been established to ensure that: [i] the purposes of The Exchange Specific Plan are maintained; [ii] the project will not endanger the public health, safety or general welfare; [iii] the project will not result in any significant environmental impacts; and [iv] the project will be in harmony with the surrounding area in which it is proposed to be located.
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SECTION 5: Planning Commission Action. Based upon the findings and conclusions set forth in Sections 1 through 4, above, the Planning Commi ssion hereby RECOMMENDS THE CITY COUNCIL APPROVE the herein described Application, subject to each and every condition set forth in the Department reports attached hereto as “Attachment A,” and incorporated herein by this reference.

SECTION 6: Indemnification. The Applicant shall agree to defend, indemnify and hold harmless, the City of Ontario or its agents, officers, and employees from any claim, action or proceeding against the City of Ontario or its agents, officers or employees to attack, set aside, void, or annul this approval. The City of Ontario shall promptly notify the applicant of any such claim, action, or proceeding, and the City of Ontario shall cooperate fully in the defense.

SECTION 7: Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City of Ontario City Hall, 303 East “B” Street, Ontario, California 91764. The custodian for these records is the City Clerk of the City of Ontario.

SECTION 8: Certification to Adoption. The Secretary shall certify to the adoption of the Resolution.

- - - - - - - - - - - - - -

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ATTACHMENT A:

File No. PCUP21-009
Departmental Conditions of Approval

(Departmental conditions of approval to follow this page)

405

303 East B Street, Ontario, California 91764 Phone: 909.395.2036 / Fax: 909.395.2420

LAND DEVELOPMENT DIVISION

CONDITIONS OF APPROVAL

Date Prepared: 1/24/2022

File No: PCUP21-009

Related Files: N/A

Project Description: A Conditional Use Permit (File No. PCUP21 -009) to establish and operate a limited-service hotel use on 1.83 acres of land located at 5060 East Fourth Street, within the Freeway Commercial land use district of The Exchange Specific Plan. (APN: 0238-012-30); submitted by Roger Barbosa.

Prepared By: Luis E. Batres, Senior Planner
Phone: 909.395.2431 (direct)
Email: [email protected]

The Planning Department, Land Development Section, conditions of approval applicable to the above-described Project, are listed below. The Project shall comply with each condition of approval listed below:

1.0 Standard Conditions of Approval. The project shall comply with the Standard Conditions for New Development, adopted by City Council Resolution No. 2017-027 on April 18, 2017. A copy of the Standard Conditions for New Development may be obtained from (https://www.ontarioca.gov/Planning/Applications
) or from the Planning Departmen t/City
Clerk/Records Management Department.

2.0 Special Conditions of Approval. In addition to the Standard Conditions for New Development identified in condition no. 1.0, above, the project shall comply with the following special conditions of approval:

2.1 Time Limits. Conditional Use Permit approval shall become null and void one year following the effective date of application approval, unless a building permit is issued and construction is commenced, and diligently pursued toward completion, or a time extension has been approved by the Planning Director, except that a Conditional Use Permit approved in conjunction with a Development Plan shall have the same time limits as said Development Plan.

This condition does not supersede any individual time limits specified herein, or any other departmental conditions of approval applicable to the Project, for the performance of specific conditions or improvements.

2.2 General Requirements . The Project shall comply with the following general requirements:

(a) All construction documentation shall be coordinated for consistency, including, but not limited to, architectural, structural, mechanical, electrical, plumbing, landscape 406
Planning Department – Land Development Division
Conditions of Approval
File No.: PCUP21-009

and irrigation, grading, utility and street improvement plans. All such plans shall be consistent with the approved entitlement plans on file with the Planning Department.

(b) The project site shall be developed in conformance with the approved plans on file with the City. Any variation from the approved plans must be reviewed and approved by the Planning Department prior to building permit issuance.

(c) The herein-listed conditions of approval from all City departments shall be included in the construction plan set for project, which shall be maintained on site during project construction.

(d) The project shall provide a total of 118 parking spaces . In the future, if it is determined by the Planning Department as a result of complaints received that additional parking is necessary , the Applicant shall enter into a reciprocal parking agreement with adjacent developments to provide the additional parking (additional 10 parking spaces).

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RESOLUTION NO.________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PCUP21-009, A CONDITIONAL USE PERMIT TO ESTABLISH AND OPERATE A 128-ROOM LIMITED- SERVICE HOTEL ON 1.83 ACRES OF LAND LOCATED AT 5060 EAST

FOURTH STREET, WITHININ THE FREEWAY COMMERCIAL LAND USE

DISTRICT OF THE EXCHANGE SPECIFIC PLAN AND MAKING
FINDINGS IN SUPPORT THEREOF - APN: 0238-012-30.

WHEREAS, ROGER BARBOSA ("Applicant") has filed an Application for the approval of File No. PCUP21-009, a Conditional Use Permit as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and WHEREAS, the Application applies to 1.83 acres of land located at 5060 East Fourth Street, within the Freeway Commercial land use district of The Exchange Specific Plan, and the site is presently vacant; and
WHEREAS, the property to the north of the Project site is within the Freeway Commercial land use district of The Exchange Specific Plan and is developed with a multi- tenant retail building. The property to the east is within the Open Space zoning district and is developed with Southern California Edison transmission lines. The property to the south is within the Freeway Commercial land use district of The Exchange Specific Plan and is currently vacant. The property to the west is Interstate 15; and WHEREAS, on June 4, 2021, the Applicant submitted File No. PCUP21-009, a Conditional Use Permit application requesting approval to establish and operate a limited- service hotel on the Project site; and
WHEREAS, the proposed Conditional Use Permit was submitted for concurrent processing with File No. PDEV21-021, a Development Plan to construct a four-story, 128- room Extended Stay Hotel on the Project site; and
WHEREAS, in 2003, the City approved The Exchange Specific Plan, a 23.60-acre master plan for the project area. The Exchange Specific Plan is composed of two land use districts, including the Freeway Commercial, which comprises the northerly 12.03 acres of the Specific Plan, and the Industrial Park land use district, which comprises the southerly 11.57 acres of the Specific Plan; and
WHEREAS, the City’s Development Code requires that all new hotels must be reviewed under concurrently filed Conditional Use Permit and Development Plan applications. The purpose of the Conditional Use Permit application and review is to ensure that the proposed use will be operated in a manner consistent with all local regulations, and to ensure the use will not be detrimental to the public health, safety, or welfare, or materially injurious to uses, properties or improvements in the vicinity. More specifically, in the case of hotels, the Conditional Use Permit is required to establish the 408
project’s market feasibility and ensure on-going compliance with the minimum amenity package required by the Development Code; and
WHEREAS, Development Code Section 5.03.250.D (Minimum Amenity Package) stipulates that no Conditional Use Permit shall be approved for a hotel, motel, residence inn, or other similar traveler accommodation, unless certain specific amenities are provided and permanently maintained, as described below:
(1) Each guestroom shall include voicemail, wired or wireless internet access, desk with chair, hairdryer, retractable magnifying (10X) and lighted makeup mirror, iron and ironing board, high-definition television, and alarm clock or wake-up service.

Compliance with these requirements will be verified by the Planning Department during Building Department plan check and at time of final building inspection; and (2) For limited-service hotels, meeting space equal to 15 square feet per guestroom shall be provided, requiring that Project provide a minimum of 1,920 square feet of meeting/gathering area. The Project exceeds the minimum requirement, incorporating a total of 2,250 square feet of available meeting/gathering area; and (3) Both active and passive leisure amenities are required. At a minimum, the Project must provide a swimming pool, whirlpool/spa or furnished cabana, and fitness room. The Project exceeds the minimum requirement, providing a pool and spa, poolside cabana, outdoor seating areas, and a fitness room; and
(4) A guest courtesy lounge for the serving of light meals and snacks is required to be provided in conjunction with limited-service hotels. The Project has provided a 331- square-foot café/snack room for hotel guests, meeting the minimum requirement; and WHEREAS, in fulfillment of the requirements of Development Code Section

5.03.250.C (Market Feasibility Report Required), the Applicant submitted a Market Feasibility Study, which demonstrates that the local market can support the development of a new hotel. An initial Market Feasibility Study (dated October 21, 2021) was prepared Veritas Development Advisors for the proposed extended stay hotel. The study found that the local market can support the proposed hotel. The market area for the hotel appears stable. The hotel rooms are expected to be absorbed in the market area based on the Smith Travel Research report analysis conducted for the project site. Based on the supply and demand analysis (pre-COVID) within the market area, it appears as though occupancy will likely remain above 65 percent over the next five years. Analyses of the market appears to indicate that development of the Subject Project, as planned, would yield about a 0.8 percent market share in the Subject Project’s market area. The study’s conclusions are based primarily upon the growth in the Inland Empire, the area’s proximity to the Los Angeles area, the Ontario Convention Center, the Ontario International Airport, California Speedway in Fontana, and the Project’s proximity to the Ontario Mills Mall (see Exhibit K- Hotel Market Study of the attached Planning Commission Staff Report). The report includes an analysis of other similar hotels in the area, long-term viability, and overall demand due to new businesses and activities in and around the City; and 409
WHEREAS, the Application is a project pursuant to the California Environmental Quality Act, commencing with Public Resources Code Section 21000 (hereinafter referred to as "CEQA"); and
WHEREAS, the Project is exempt from CEQA pursuant to a categorical exemption (listed in CEQA Guidelines Article 19, commencing with Section 15300) and the application of that categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and
WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the City Council the responsibility and authority to review and act on the subject Application; and
WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan, as State Housing Element law (as prescribed in Government Code Sections 65580 through 65589.8) requires that development projects must be consistent with the Housing Element, if upon consideration of all its aspects, it is found to further the purposes, principals, goals, and policies of the Housing Element; and
WHEREAS, the Project is located within the Airport Influence Area of Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and is subject to, and must be consistent with, the policies and criteria set forth in the Ontario International Airport Land Use Compatibility Plan (“ALUCP”), which applies only to jurisdictions within San Bernardino County, and addresses the noise, safety, airspace protection, and overflight impacts of current and future airport activity; and
WHEREAS, City of Ontario Development Code Division 2.03 (Public Hearings) prescribes the manner in which public notification shall be provided and hearing procedures to be followed, and all such notifications and procedures have been completed; and
WHEREAS, on February 7, 2022, the Development Advisory Board of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date, voting to issue Decision No. DAB22-007, recommending that the Planning Commission recommend the City Council approve the Application; and WHEREAS, on February 22, 2022, the Planning Commission of the City of Ontario conducted a hearing to consider the Project and concluded said hearing on that date, voting unanimously (7-0) to issue Resolution No. PC22-011 recommending that the City Council approve the Application; and
WHEREAS, at the April 19, 2022 City Council meeting, this Application was considered by the City Council and recommended to be continued indefinitely and requested that the scope of the prepared Market Feasibility Study for the hotel, be widened to also analyze full service and select and limited-service hotels within the Ontario market area. A Supplemental Market Feasibility Study was prepared by Veritas Development Advisors (See Exhibit “A” Market Feasibility Study-Supplemental Report - 410
July 13, 2022). The Study concluded that in review of full-service, select-/limited-service, and extended stay supply and demand, the proposed 128-Room extended stay hotel would be anticipated to maintain average occupancies of about 80% based on overall penetration of the demand. Extended stay demand is correlated to longer duration travel (~32% of demand). Full-service and select-/limited-service demand most often correlates with corporate travel (~39% of overall demand), leisure travel (~16% of overall demand), and group travel (~12% of overall demand). Extended stay demand appears to have been stable through the Pandemic–showing a decrease of ~20% through the pandemic that appears to have bounced back surpassing pre-pandemic occupancies and rates. Full- service and select-/limited-service demand generators appear to have increased within the last year and appear to be reaching pre-pandemic levels for occupancy and average daily rates. Select-/limited-service hotels also appear to have nearly reached pre pandemic occupancy and average daily rate levels with the recovery of leisure and corporate demand. In contrast, full-service hotels do not appear to have fully recovered (likely due to lack of recovery of Group demand). It is anticipated that the proposed extended stay hotel will penetrate extended stay demand, which has shown growth in the post-pandemic market with increased worker travel for longer durations. Extended stay supply makes up about 20% of the entire hotel market supply while demand for extended stay is about 30% across the entire market. There appears to be a need for additional extended stay supply in the market area which the proposed hotel would provide; and WHEREAS, on September 6, 2022, the City Council of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario, as follows:

SECTION 1: Environmental Determination and Findings. As the decision- making body for the Project, the City Council has reviewed and considered the information contained in the administrative record for the Project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds as follows:
(1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City of Ontario Local CEQA Guidelines; and (2) The Project is categorically exempt from environmental review pursuant to Section 15332 (Class 32, In-Fill Development Projects) of the CEQA Guidelines, which consists of: (a) the Project is consistent with the applicable general plan designation and all applicable general plan policies, as well as the applicable zoning designation and regulations; (b) the proposed development occurs within city limits, on a project site of no more than five acres, and is substantially surrounded by urban uses; (c) the Project site has no value as habitat for endangered, rare, or threatened species; (d) approval of the Project will not result in any significant effects relating to traffic, noise, air quality, or water 411
quality; and (e) the Project site is adequately served by all required utilities and public services; and
(3) The application of the categorical exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and (4) The determination of CEQA exemption reflects the independent judgment of the City Council.

SECTION 2: Housing Element Compliance. Pursuant to the requirements of California Government Code Chapter 3, Article 10.6, commencing with Section 65580, as the decision-making body for the Project, the City Council finds that based on the facts and information contained in the Application and supporting documentation, at the time of Project implementation, the project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan, as the project site is not one of the properties in the Available Land Inventory contained in Table A-3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix.

SECTION 3: Ontario International Airport Land Use Compatibility Plan (“ALUCP”) Compliance. The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan. On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan (“ALUCP”), establishing the Airport Influence Area for Ontario International Airport (“ONT”), which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and limits future land uses and development within the Airport Influence Area, as they relate to noise, safety, airspace protection, and overflight impacts of current and future airport activity. As the decision-making body for the Project, the City Council has reviewed and considered the facts and information contained in the Application and supporting documentation against the ALUCP compatibility factors, including [1] Safety Criteria (ALUCP Table 2-2) and Safety Zones (ALUCP Map 2-2), [2] Noise Criteria (ALUCP Table 2-3) and Noise Impact Zones (ALUCP Map 2-3), [3] Airspace protection Zones (ALUCP Map 2-4), and [4] Overflight Notification Zones (ALUCP Map 2-5). As a result, the City Council, therefore, finds and determines that the Project, when implemented in conjunction with the conditions of approval, will be consistent with the policies and criteria set forth within the ALUCP.

SECTION 4: Concluding Facts and Reasons. Based upon the substantial evidence presented to the City Council during the above-referenced hearing, and upon the specific findings set forth in Sections 1 through 3, above, the City Council hereby concludes as follows:
(1) The scale and intensity of the proposed land use would be consistent with the scale and intensity of land uses intended for the particular zoning or land use district.

The proposed location of the Conditional Use Permit is in accord with the objectives and purposes of the City of Ontario Development Code and The Exchange Specific Plan, and the scale and intensity of land uses intended for the Freeway Commercial land use district 412
in which the use is proposed to be located. Furthermore, the proposed 128-room extended stay hotel will be established and operated consistent with the objectives and purposes, and development standards and guidelines of the Freeway Commercial land use designation of The Exchange Specific Plan, which meets the Specific Plans goal of providing a balance of employment, shopping and service opportunities, reducing the need for long commutes; and
(2) The proposed use at the proposed location, and the manner in which it will be operated and maintained, is consistent with the goals, policies, plans and exhibits of the Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. The proposed 128-room extended stay hotel will be located within the Planned Commercial land use district of the Policy Plan Land Use Map, and the Freeway Commercial land use district of The Exchange Specific Plan. A hotel land use within the Freeway Commercial land use is conditionally permitted with the approval of a Conditional Use Permit. Furthermore, the development standards, and the conditions of approval under which the proposed land use will be established, operated, and maintained, are consistent with the goals, policies, plans, and exhibits of the Vision, City Council Priorities, and Policy Plan (General Plan) components of The Ontario Plan; and (3) The proposed use at the proposed location, and the manner in which it will be operated and maintained, is consistent with the objectives and requirements of the Development Code and any applicable specific plan or planned unit development. The proposed 128-room extended stay hotel is located with the Freeway Commercial land use district of The Exchange Specific Plan and has been reviewed and conditioned to ensure the establishment, operation and maintenance of the proposed land use is consistent with all applicable objectives, purposes, standards, and guidelines of the Development Code and The Exchange Specific Plan; and
(4) The establishment, maintenance, and operation of the proposed use at the proposed location would not be detrimental or injurious to property and improvements within the vicinity, nor would it be detrimental to the health, safety, or general welfare of persons residing or working in the surrounding neighborhood. The establishment, maintenance, and operation of the proposed 128-room extended stay hotel at the proposed location would not be detrimental or injurious to property and improvements within the vicinity, nor would it be detrimental to the health, safety, or general welfare of persons residing or working in the surrounding neighborhood. The project site is located within the Freeway Commercial land use designation of the Exchange Specific Plan and a hotel use is a conditionally permitted use. In addition, certain safeguards are required and certain conditions of approval have been imposed, which have been established to ensure that: (i) the purposes of The Exchange Specific Plan are maintained; (ii) the project will not endanger the public health, safety or general welfare; (iii) the project will not result in any significant environmental impacts; and (iv) the project will be in harmony with the surrounding area in which it is proposed to be located.

SECTION 5: City Council Action. Based upon the findings and conclusions set forth in Sections 1 through 4, above, the City Council hereby APPROVES the herein described Conditional Use Permit subject to each and every condition set forth in the 413
Department reports, attached hereto as Exhibit “A” and incorporated herein by this reference.

SECTION 6: Indemnification. The Applicant shall agree to defend, indemnify, and hold harmless, the City of Ontario or its agents, officers, and employees from any claim, action or proceeding against the City of Ontario or its agents, officers or employees to attack, set aside, void, or annul this approval. The City of Ontario shall promptly notify the applicant of any such claim, action, or proceeding, and the City of Ontario shall cooperate fully in the defense.

SECTION 7: Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City of Ontario City Hall, 303 East “B” Street, Ontario, California 91764. The custodian for these records is the City Clerk of the City of Ontario.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 6th day of September 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
414

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2022- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held September 6, 2022, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2022- duly passed and adopted by the Ontario City Council at their regular meeting held September 6, 2022. _________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
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ATTACHMENT A:

Conditions of Approval
(Document follows this page)
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Department: Planning
Prepared By: Charles Mercier
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 13
SUBJECT:

A PUBLIC HEARING TO CONSIDER AN AMENDMENT TO THE ONTARIO GATEWAY

SPECIFIC PLAN

CITY OF ONTARIO
Agenda Report
September
6, 2022
SECTION:

PUBLIC HEARINGS

RECOMMENDATION:

That the City Council consider and adopt the Resolution approving File No.

PSPA22-003, an Amendment the Ontario Gateway Specific Plan, modifying Table 2.B (Permitted Land Uses by Planning areas) to allow "Auto Sales and Services" as a permitted land use in the Office Planning Area 1 land use district.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT:

There is no direct fiscal impact to the City associated with this Specific Plan Amendment.

BACKGROUND & ANALYSIS:

On July 3, 2007, the City Council adopted Ordinance No. 2863 approving File No. PSP05-005, creating the Ontario Gateway Specific Plan and establishing the land use designations, development standards, and design guidelines for the Specific Plan area (see Exhibit A (Project Location Map) and Exhibit B (Ontario Gateway Specific Plan Land Use Map), attached.

The City has initiated an Amendment to the Ontario Gateway Specific Plan, revising Table 2.B, Permitted Land Uses by Planning Area. The proposed Amendment will allow “Auto Sales and Services” as a Permitted land use within the Office Planning Area 1 land use district; however, auto services would only be allowed as an ancillary activity to a primary auto sales use (see Exhibit C (Portion of Ontario Gateway Specific Plan Table 2.B: Permitted Land Uses by Planning Areas), attached (changes are highlighted in yellow).

The Ontario Gateway Specific Plan envisioned the Office Planning Area 1 land use district for offices up to 10 stories, service-type retail businesses, and a parking structure. The Specific Plan currently prohibits Auto Sales and Services within the Office Planning Area 1 land use district. However, the 425
land use district does permit by right the establishment of Car Rental Agencies, which includes the short-term rental and long-term leasing of passenger cars, passenger trucks (light duty), and passenger vans. Car Rental Agencies share similar operational aspects with Auto Sales and Services, such as automobile display, storage, and servicing activities. Therefore, Staff believes it’s appropriate to include Auto Sales and Services as a permitted land use in the Office Planning Area 1 land use district.

On July 26,2022, the Planning Commission conducted a public hearing on the application. After considering all public testimony, the Planning Commission unanimously approved Resolution No. 22-039, recommending to the City Council approval of the Specific Plan Amendment.

ENVIRONMENTAL REVIEW: The application is exempt from the requirements of the California Environmental Quality Act (“CEQA”) and the guidelines promulgated thereunder, pursuant to Section 15061(b)(3) of the CEQA Guidelines, in that the activity is covered by the “common sense exemption” (general rule) that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen 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.
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Exhibit A — Project Location Map
INTERSTATE 10 FREEWAY
NORTH
Office Planning Area 1

GUASTI ROAD

HAVEN AVENUE

GUASTI ROAD
Specific Plan
Boundary
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Exhibit B — Ontario Gateway Specific Plan Land Use Map
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Exhibit C

Portion of Ontario Gateway Specific Plan;
Table 2.B: Permitted Land Uses by Planning Areas

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Exhibit C (Continued)

Portion of Ontario Gateway Specific Plan;
Table 2.B: Permitted Land Uses by Planning Areas
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Case Planner: Charles Mercier, Principal Planner Hearing Body Date Decision Action Planning Director
Approval:

DAB N/A N/A N/A
PC 6/30/2022 Recommend
Submittal Date: 6/30/2022 CC 9/6/2022 Final
F
ILE NO.: PSPA22-003
SU
BJECT: An amendment the Ontario Gateway Specific Plan, modifying Table 2.B (Permitted Land Uses by Planning areas) to allow "Auto Sales and Services" as a permitted land use in the Office Planning Area 1 land use district; City Initiated. City Council action is required.

PR
OPERTY OWNER: Prime A Investments LLC
R
ECOMMENDED ACTION: That the Planning Commission consider and approve the attached resolution recommending that the City Council approve File No. PSPA22-003 pursuant to the facts and reasons contained in the staff report and resolution.

P
ROJECT SETTING: The Ontario Gateway Specific Plan is comprised of approximately 41.3 acres of land generally located on the south side of Interstate 10, on the east side of Haven Avenue, on the north side of the Union Pacific Railroad right -of-way, and approximately 460 feet west of Ponderosa Avenue , and is depicted in Figure 1: Project Figure 1: Project Location Map
INTERSTATE 10 FREEWAY
NORTH
303 East B Street, Ontario, California 91764 Phone: 909.395.2036 / Fax: 909.395.2420

PLANNING COMMISSION

STAFF REPORT
July 26, 2022
Office Planning Area 1

GUASTI ROAD

HAVEN AVENUE

GUASTI ROAD
Specific Plan
Boundary

APPROVAL
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Planning Commission Staff Report
File No.: PSPA22-003
July 26, 2022

Location Map, above. The proposed Specific Plan Amendment will directly affect the Office Planning Area 1 land use district , which is comprised of approximately 7 acres of land generally located at the northwesterly corner of the Specific Plan area.

Interstate 10 abuts the Ontario Gateway Specific Plan on the north side. The property to the east is within the IL (Light Industrial) zoning district and is developed with a truck repair facility. The property to the south is within the RC (Rail Corridor) zoning district and is developed with Union Pacific Railroad rail lines . The property to the west is within the Centrelake Specific Plan zoning district and includes vacant land and office land uses.

The existing surrounding land uses, zoning , general plan , and specific plan land use designations are summarized in the “Surrounding Zoning & Land Uses” table located in the Technical Appendix of this report.

Figure 2: Ontario Gateway Specific Plan Land Use Map
NORTH
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Planning Commission Staff Report
File No.: PSPA22-003
July 26, 2022

PROJECT ANALYSIS:

On July 3, 2007, the City Council adopted Ordinance No. 2863 approving File No. PSP05- 005, the Ontario Gateway Specific Plan , which establishing the land use designations, development standards, and design guidelines for the Specific Plan area.

The City of Ontario has initiated an Amendment to the Ontario Gateway Specific Plan, revising Table 2.B, Permitted Land Uses by Planning Area. The proposed amendment will allow “Auto Sales and Services” as a Permitted land use within the Office Planning Area 1 land use district.

The Ontario Gateway Specific Plan intends the Office Planning Area 1 land use district for offices up to 10 stories, service-type retail businesses, and a parking structure. The Specific Plan currently prohibits Auto Sales and Services with in the Office Planning Area 1 land use district. However, the land use district does permit by right, the establishment of Car Rental Agencies , which includes the short -term rental and long -term leasing of passenger cars, passenger trucks (light duty), and passenger vans. Car Rental Agencies share s imilar operational aspects with Auto Sales and Services, such as automobile display, storage, and servicing activities. Therefore, Staff believes it ’s appropriate to include Auto Sales and Services as a permitted land use in the Office Planning Area 1 land use district.

COMPLIANCE WITH THE ONTARIO PLAN: The proposed project is consistent with the principles, goals and policies contained within the Vision, Governance, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan (TOP). More specifically, the goals and policies of TOP that are furthered by the proposed project are as follows:

(1) City Council Goals.

 Invest in the Growth and Evolution of the City’s Economy  Operate in a Businesslike Manner
 Focus Resources in Ontario’s Commercial and Residential Neighborhoods

(2) Vision.

Distinctive Development:

 Commercial and Residential Development

 Development quality that is broadly recognized as distinctive and not exclusively tied to the general suburban character typical of much of Southern California.

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Planning Commission Staff Report
File No.: PSPA22-003
July 26, 2022

(3) Governance.

Decision Making:

 Goal G1: Sustained decision-making that consistently moves Ontario towards its Vision by using The Ontario Plan as a framework for assessing choices.

 G1-2 Long-term Benefit . We require decisions to demonstrate and document how they add value to the community and support the Ontario Vision

(4) Policy Plan (General Plan)

Land Use Element:

 Goal LU2: Compatibility between a wide range of uses.

 LU2-1: Land Use Decision. We minimize adverse impacts on adjacent properties when considering land use and zoning requests.

 LU2-5: Regulation of Uses. We regulate the location, concentration, and operations of uses that have impacts on surrounding land uses.

Community Economics Element:

 Goal CE3: Decision-making deliberations that incorporate the full short -term and long-term economic and fiscal implications of proposed City Council actions.

 Fiscal Impact Disclosure . We require requests for City Council action to disclose the full fiscal impacts, including direct and indirect costs.

HOUSING ELEMENT COMPLIANCE: The project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan, as the project site is not one of the properties in the Available Land Inventory contained in Table A- 3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix.

AIRPORT LAND USE COMP ATIBILITY PLAN (ALUCP) COMPLIANCE: The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan. On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan (“ALUCP”), establishing the Airport Influence Area for Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and limits future land uses and development within the Airport Influence Area , as they relate to noise, safety, airspace protection, and 434
Planning Commission Staff Report
File No.: PSPA22-003
July 26, 2022

overflight impacts of current and future airport activity. Th e proposed project is located within the Airport Influence Area of Ontario International Airport and was evaluated and found to be consistent with the policies and criteria of the ALUCP. Any special conditions of approval associated with uses in close proximity to the airport are included in the conditions of approval provided with the attached Resolution.

ENVIRONMENTAL REVIEW: The proposed Development Code Amendment is exempt from the requirements of the California Environmental Quality Act ( “CEQA”) and the guidelines promulgated thereunder , pursuant to Section 15061(b)(3) of the CEQA Guidelines, in that th e activity is covered by the “common sense exemption” (general rule) that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen 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.

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Planning Commission Staff Report
File No.: PSPA22-003
July 26, 2022

TECHNICAL APPENDIX:

Surrounding Zoning and Land Use:

Existing Land Use General Plan
Designation Zoning Designation Specific Plan Land Use
Site Vacant Office Commercial Ontario Gateway
Specific Plan Office Planning Area 1
North Interstate 10 Interstate 10 Interstate 10 Interstate 10 South Union Pacific Railroad
Rail Lines Rail RC (Rail Corridor) N/A
East Truck Repair Business Park IL (Light Industrial) N/A West Vacant & Offices Office Commercial Centrelake Specific Plan
Commercial/Hotel and
Office

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RESOLUTION NO. PC22-039

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

ONTARIO, CALIFORNIA, RECOMMENDING THE CITY COUNCIL
APPROVE FILE NO. PSPA22-003, AN AMENDMENT TO THE ONTARIO GATEWAY SPECIFIC PLAN, MODIFYING TABLE 2.B (PERMITTED
LAND USES BY PLANNING AREAS) TO ALLOW "AUTO SALES AND
SERVICES" AS A PERMITTED LAND USE IN THE OFFICE PLANNING AREA 1 LAND USE DISTRICT , AND MAKING FINDINGS IN SUPPORT THEREOF.

WHEREAS, The City of Ontario ("Applicant") has initiated an Application for the approval of a Specific Plan Amendment, File No. PSPA22 -003, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and

WHEREAS, the Application applies to the Ontario Gateway Specific Plan, which is comprised of approximately 41.3 acres of land generally located on the south side of Interstate 10, on the east side of Haven Avenue, on the north side of the Union Pacific Railroad right-of-way, and approximately 460 feet west of Ponderosa Avenue, and for the most part is fully developed with commercial land uses; and

WHEREAS, Interstate 10 abuts the Ontario Gateway Specific Plan on the north side. The property to the east is within the IL (Light Industrial) zoning district and is developed with a truck repair facility . The property to the south is within the RC (Rail Corridor) zoning district and is developed with Union Pacific Railroad rail lines . The property to the west is within the Centrelake Specific Plan zoning district and includes vacant land and office land uses; and

WHEREAS, the proposed Specific Plan Amendment will directly affect the Office Planning Area 1 land use district , which is comprised of approximately 7 acres of land generally located at the northwesterly corner of the Ontario Gateway Specific Plan area; and

WHEREAS, on July 3, 2007, the City Council adopted Ordinance No. 2863 approving File No. PSP05- 005, the Ontario Gateway Specific Plan, which establishing the land use designations, development standards, and design guidelines for the Specific Plan area; and

WHEREAS, the City of Ontario has initiated an Amendment to the Ontario Gateway Specific Plan, revising Table 2.B, Permitted Land Uses by Planning Area. The proposed amendment will allow “Auto Sales and Services” as a Permitted land use within the Office Planning Area 1 land use district; and

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Planning Commission Resolution
File No. PSPA22-003
July 26, 2022

WHEREAS, the Application is a project pursuant to the California Environmental Quality Act, commencing with Public Resources Code Section 21000 (hereinafter referred to as "CEQA"); and

WHEREAS, the Proje ct is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to the “common sense exemption” (CEQA Guidelines Section 15061(b)(3)); and

WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the Planning Commission the responsibility and authority to review and make recommendation to the City Council on the subject Application; and

WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan, as State Housing Element law (as prescribed in Government Code Sections 65580 through 65589.8) requires that development projects must be consistent with the Housing Element, if upon consideration of all its aspects, it is found to further th e purposes, principals, goals, and policies of the Housing Element; and

WHEREAS, the Project is located within the Airport Influence Area of Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and is subject to, and must be consistent with, the policies and criteria set forth in the Ontario International Airport Land Use Compatibility Plan (“ALUCP”), which applies only to jurisdictions within San Bernardino County, and addresses the noise, safety, airspace protection, and overflight impacts of current and future airport activity; and

WHEREAS, City of Ontario Development Code Division 2.03 (Public Hearings) prescribes the manner in which public notification shall be provided and hearing procedures to be followed, and all such notifications and procedures have been completed; and

WHEREAS, on July 26, 2022, the Planning Commission of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and

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

NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED, AND RESOLVED by the Planning Commission of the City of Ontario, as follows:

SECTION 1: Environmental Determination and Findings. As the recommending authority for the Project, the Planning Commission has reviewed and 438
Planning Commission Resolution
File No. PSPA22-003
July 26, 2022

considered the information contained in the administrative record for the Project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Planning Commission, the Planning Commission finds as follows:

(1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City of Ontario Local CEQA Guidelines; and

(2) is exempt from the requirements of the California Environmental Quality Act (“CEQA”) and the guidelines promulgated thereunder, pursuant to Section 15061(b)(3) of the CEQA Guidelines, in that the activity is covered by the “common sense exemption” (general rule) that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen 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

(3) The determination of CEQA exemption reflects the independent judgment of the Planning Commission.

SECTION 2: Housing Element Complia nce. Pursuant to the requirements of California Government Code Chapter 3, Article 10.6, commencing with Section 65580, as the recommending authority for the Project, the Planning Commission finds that based on the facts and information contained in the Application and supporting documentation, at the time of Project implementation, the project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan, as the project site is not one of the properties in the Available Land Inventory contained in Table A-3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix.

SECTION 3: Ontario International Airport Land Use Compatibility Plan (“ALUCP”) Compliance. The California State Aeronautics Ac t (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with t he policies set forth in the adopted Airport Land Use Compatibility Plan. On April 19, 2011, the City Council of the City of Ontario approved and adopted the ALUCP , establishing the Airport Influence Area for Ontario International Airport (hereinafter referred to as “ONT”), which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties , and limits future land uses and development within the Airport Influence Area , as they relate to noise, safety, airspace protection, and overflight impacts of current and future airport activity. As the recommending authority for the Project, the Planning Commission has reviewed and considered the facts and information contained in the Application and supporting documentation against the ALUCP com patibility factors, including [ 1] Safety Criteria (ALUCP Table 2-2) and Safety Zones (ALUCP Map 2-2), [2] Noise Criteria (ALUCP Table 439
Planning Commission Resolution
File No. PSPA22-003
July 26, 2022

2-3) and Noise Impact Zones (ALUCP Map 2 -3), [3] Airspace protection Zones (ALUCP Map 2- 4), and [ 4] Overflight Notificatio n Zones (ALUCP Map 2- 5). As a result, the PLANNING COMMISSION , therefore, finds and determines that the Project, when implemented in conjunction with the conditions of approval, will be consistent with the policies and criteria set forth within the ALUCP.

SECTION 4: Concluding Facts and Reasons. Based upon the substantial evidence presented to the Planning Commission during the above- referenced hearing, and upon the specific findings set forth in Sections 1 through 3, above, the Planning Commission hereby concludes as follows:

(1) The proposed Specific Plan Amendment is consistent with the goals, policies, plans , and exhibits of the Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. The proposed amendment to the Ontario Gateway Specific Plan will modify Table 2.B (Permitted Land Uses by Planning Areas), to allow Auto Sales and Services as a permitted use within the Office Planning Area 1 land use district. In order to take advantage or remove impediments to ac hieving our Vision, we require the ability to quickly respond to changing market needs. Policy LU3-3 (Land Use Flexibility ) of the Policy Plan (general plan) encourages the consideration of uses not typically permitted within a land use category if doing so improves the livability, gathering places and activity nodes.

(2) The proposed Specific Plan Amendment thereto, would not be detrimental to the public interest, health, safety, convenience, or general welfare of the City. Allowing Auto Sales and Services as a permitted use within the Office Planning Area 1 land use district will be in conformance with Policy Plan Land Use Plan and w ill comply with the Policy Plan goals and policies applicable to the Specific Plan. The proposed amendment to the Ontario Gateway Specific Plan will not be detrimental to the public interest, health, safety, convenience, or general welfare of the City because it will further the intent of the Ontario Gateway Specific Plan by expanding the list of desirable service-type retail businesses permitted within the Specific Plan area.

(3) In the case of an application affecting specific property, the proposed Specific Plan Amendment will not adversely affect the harmonious relationship with adjacent properties and land uses. Properties adjacent to the subject Office Planning Area 1 land use district include a new car dealership (Mercedes -Benz of Ontario) that adjoins Office Planning Area 1 on the east side and two hotels adjoin Office Planning Area 1 on the south side. To the north and west of Office Planning Area 1 are Interstate 10 and Haven Avenue, respectively. The addition of Auto Sales and Services as a permitted land use in Office Planning Area 1 will simply allow for a land use type that already exists on a neighboring property and compliments the other existing adjacent land uses.

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(4) In the case of an application affecting specific property, the subject site is physically suitable, including, but not limited to, parcel size, shape, access, and availability of utilities, for the request and anticipated development. The proposed a mendment to the Ontario Gateway Specific Plan will modify Table 2.B (Permitted Land Uses by Planning Areas ), to allow Auto Sales and Services as a permitted use within the Office Planning Area 1 land use district . This land use district consists of a single parcel of land that is physically suitable accommodate the proposed land use in terms of parcel size (+/- 7 acres in area), shape (more or less rectangular in shape), access (single point of access provided from Guasti Road), and availability of utilities (all wet and dry utilities are available to the Office Planning Area 1 land use district).

SECTION 5: Planning Commission Action. Based upon the findings and conclusions set forth in Sections 1 through 4, above, the Planning Commission hereby

RECOMMENDS THE CITY COUNCIL APPROVE THE HEREIN DESCRIBED APPLICATION as shown in “Attachment A,” and incorporated herein by this reference.

SECTION 6: Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City of Ontario City Hall, 303 East “B” Street, Ontario, California 91764. The custodian for these records is the City Clerk of the City of Ontario.

SECTION 7: Certification to Adoption. The Secretary shall certify to the adoption of the Resolution.

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Planning Commission Resolution
File No. PSPA22-003
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ATTACHMENT A:

Portion of Ontario Gateway Specific Plan
Table 2.B: Permitted Land Uses by Planning Areas

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Planning Commission Resolution
File No. PSPA22-003
July 26, 2022

ATTACHMENT A CONTINUED:

Portion of Ontario Gateway Specific Plan
Table 2.B: Permitted Land Uses by Planning Areas

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RESOLUTION NO.________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSPA22-003, AN AMENDMENT TO THE ONTARIO GATEWAY SPECIFIC PLAN, MODIFYING TABLE 2.B
(PERMITTED LAND USES BY PLANNING AREAS) TO ALLOW "AUTO
SALES AND SERVICES" AS A PERMITTED LAND USE IN THE OFFICE PLANNING AREA 1 LAND USE DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF.

WHEREAS, THE CITY OF ONTARIO ("Applicant") has initiated an Application for the approval of a Specific Plan Amendment, File No. PSPA22-003, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and WHEREAS, the Application applies to the Ontario Gateway Specific Plan, which is comprised of approximately 41.3 acres of land generally located on the south side of Interstate 10, on the east side of Haven Avenue, on the north side of the Union Pacific Railroad right-of-way, and approximately 460 feet west of Ponderosa Avenue, and for the most part is fully developed with commercial land uses; and WHEREAS, Interstate 10 abuts the Ontario Gateway Specific Plan on the north side. The property to the east is within the IL (Light Industrial) zoning district and is developed with a truck repair facility. The property to the south is within the RC (Rail Corridor) zoning district and is developed with Union Pacific Railroad rail lines. The property to the west is within the Centrelake Specific Plan zoning district and includes vacant land and office land uses; and
WHEREAS, the proposed Specific Plan Amendment will directly affect the Office Planning Area 1 land use district, which is comprised of approximately 7 acres of land generally located at the northwesterly corner of the Ontario Gateway Specific Plan area; and
WHEREAS, on July 3, 2007, the City Council adopted Ordinance No. 2863 approving File No. PSP05-005, the Ontario Gateway Specific Plan, which establishing the land use designations, development standards, and design guidelines for the Specific Plan area; and
WHEREAS, the City of Ontario has initiated an Amendment to the Ontario Gateway Specific Plan, revising Table 2.B, Permitted Land Uses by Planning Area. The proposed amendment will allow “Auto Sales and Services” as a Permitted land use within the Office Planning Area 1 land use district; and
WHEREAS, the Application is a project pursuant to the California Environmental Quality Act, commencing with Public Resources Code Section 21000 (hereinafter referred to as "CEQA"); and
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WHEREAS, the Project is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to the “common sense exemption” (CEQA Guidelines Section 15061(b)(3)); and
WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) assigns the City Council the responsibility and authority to review and act on the subject Application; and
WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan, as State Housing Element law (as prescribed in Government Code Sections 65580 through 65589.8) requires that development projects must be consistent with the Housing Element, if upon consideration of all its aspects, it is found to further the purposes, principals, goals, and policies of the Housing Element; and
WHEREAS, the Project is located within the Airport Influence Area of Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and is subject to, and must be consistent with, the policies and criteria set forth in the Ontario International Airport Land Use Compatibility Plan (“ALUCP”), which applies only to jurisdictions within San Bernardino County, and addresses the noise, safety, airspace protection, and overflight impacts of current and future airport activity; and
WHEREAS, City of Ontario Development Code Division 2.03 (Public Hearings) prescribes the manner in which public notification shall be provided and hearing procedures to be followed, and all such notifications and procedures have been completed; and
WHEREAS, on July 26, 2022, the Planning Commission of the City of Ontario conducted a hearing to consider the Project and concluded said hearing on that date, voting to issue Resolution No. PC22-039 recommending that the City Council approve the Application; and
WHEREAS, on September 6, 2022, the City Council of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario, as follows:

SECTION 1: Environmental Determination and Findings. As the decision- making body for the Project, the City Council has reviewed and considered the information contained in the administrative record for the Project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds as follows:
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(1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City of Ontario Local CEQA Guidelines; and (2) The Project is exempt from the requirements of the California Environmental Quality Act (“CEQA”) and the guidelines promulgated thereunder, pursuant to Section 15061(b)(3) of the CEQA Guidelines, in that the activity is covered by the “common sense exemption” (general rule) that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen 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
(3) The determination of CEQA exemption reflects the independent judgment of the City Council.

SECTION 2: Housing Element Compliance. Pursuant to the requirements of California Government Code Chapter 3, Article 10.6, commencing with Section 65580, as the decision-making body for the Project, the City Council finds that based on the facts and information contained in the Application and supporting documentation, at the time of Project implementation, the project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan, as the project site is not one of the properties in the Available Land Inventory contained in Table A-3 (Available Land by Planning Area) of the Housing Element Technical Report Appendix.

SECTION 3: Ontario International Airport Land Use Compatibility Plan (“ALUCP”) Compliance. The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan. On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan (“ONT ALUCP”), establishing the Airport Influence Area for Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Counties, and limits future land uses and development within the Airport Influence Area, as they relate to noise, safety, airspace protection, and overflight impacts of current and future airport activity. As the decision-making body for the Project, the City Council has reviewed and considered the facts and information contained in the Application and supporting documentation against the ALUCP compatibility factors, including [1] Safety Criteria (ALUCP Table 2-2) and Safety Zones (ALUCP Map 2-2), [2] Noise Criteria (ALUCP Table 2-3) and Noise Impact Zones (ALUCP Map 2-3), [3] Airspace protection Zones (ALUCP Map 2-4), and [4] Overflight Notification Zones (ALUCP Map 2-5). As a result, the City Council, therefore, finds and determines that the Project, when implemented in conjunction with the conditions of approval, will be consistent with the policies and criteria set forth within the ALUCP.

SECTION 4: Concluding Facts and Reasons. Based upon the substantial evidence presented to the City Council during the above-referenced hearing, and upon the specific findings set forth in Sections 1 through 3, above, the City Council hereby concludes as follows:
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(1) The proposed Specific Plan Amendment is consistent with the goals, policies, plans, and exhibits of the Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. The proposed amendment to the Ontario Gateway Specific Plan will modify Table 2.B (Permitted Land Uses by Planning Areas), to allow Auto Sales and Services as a permitted use within the Office Planning Area 1 land use district. In order to take advantage or remove impediments to achieving our Vision, we require the ability to quickly respond to changing market needs. Policy LU3-3 (Land Use Flexibility) of the Policy Plan (general plan) encourages the consideration of uses not typically permitted within a land use category if doing so improves the livability, gathering places and activity nodes.
(2) The proposed Specific Plan Amendment thereto, would not be detrimental to the public interest, health, safety, convenience, or general welfare of the City. Allowing Auto Sales and Services as a permitted use within the Office Planning Area 1 land use district will be in conformance with Policy Plan Land Use Plan and will comply with the Policy Plan goals and policies applicable to the Specific Plan. The proposed amendment to the Ontario Gateway Specific Plan will not be detrimental to the public interest, health, safety, convenience, or general welfare of the City because it will further the intent of the Ontario Gateway Specific Plan by expanding the list of desirable service-type retail businesses permitted within the Specific Plan area.
(3) In the case of an application affecting specific property, the proposed Specific Plan Amendment will not adversely affect the harmonious relationship with adjacent properties and land uses. Properties adjacent to the subject Office Planning Area 1 land use district include a new car dealership (Mercedes-Benz of Ontario) that adjoins Office Planning Area 1 on the east side and two hotels adjoin Office Planning Area 1 on the south side. To the north and west of Office Planning Area 1 are Interstate 10 and Haven Avenue, respectively. The addition of Auto Sales and Services as a permitted land use in Office Planning Area 1 will simply allow for a land use type that already exists on a neighboring property and compliments the other existing adjacent land uses.
(4) In the case of an application affecting specific property, the subject site is physically suitable, including, but not limited to, parcel size, shape, access, and availability of utilities, for the request and anticipated development. The proposed amendment to the Ontario Gateway Specific Plan will modify Table 2.B (Permitted Land Uses by Planning Areas), to allow Auto Sales and Services as a permitted use within the Office Planning Area 1 land use district. This land use district consists of a single parcel of land that is physically suitable accommodate the proposed land use in terms of parcel size (+/- 7 acres in area), shape (more or less rectangular in shape), access (single point of access provided from Guasti Road), and availability of utilities (all wet and dry utilities are available to the Office Planning Area 1 land use district).

SECTION 5: City Council Action. Based upon the findings and conclusions set forth in Sections 1 through 4, above, the City Council hereby APPROVES the herein described Application as shown in “Attachment A,” and incorporated herein by this reference.
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SECTION 6: Indemnification. The Applicant shall agree to defend, indemnify and hold harmless, the City of Ontario or its agents, officers, and employees from any claim, action or proceeding against the City of Ontario or its agents, officers or employees to attack, set aside, void, or annul this approval. The City of Ontario shall promptly notify the applicant of any such claim, action, or proceeding, and the City of Ontario shall cooperate fully in the defense.

SECTION 7: Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings have been based are located at the City of Ontario City Hall, 303 East “B” Street, Ontario, California 91764. The custodian for these records is the City Clerk of the City of Ontario.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 6th day of September 2022. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
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STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2022- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held September 6, 2022, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2022- duly passed and adopted by the Ontario City Council at their regular meeting held September 6, 2022. _________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
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ATTACHMENT A:

Portion of Ontario Gateway Specific Plan
Table 2.B: Permitted Land Uses by Planning
Areas
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ATTACHMENT A (CONTINUED):

Portion of Ontario Gateway Specific Plan
Table 2.B: Permitted Land Uses by Planning
Areas
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