Cities Index.
Agenda packet

Ontario City Council
January 16, 2024

Document
Agenda packet
Meeting
January 16, 2024
Body
Ontario City Council
Pages
36
Original file
59.3 MB
Text extracted from the city's file for reading and search. Open the original on d3n9y02raazwpg.cloudfront.net. That file is the official record.

WHEREAS, the PUD requires the work/live units to be occupied by artists, artisans, professionals, and similarly situated individuals subject to Chapter 5, Zoning and Land Use of the Development Code and shall require a Conditional Use Permit (CUP) pursuant to Section 4.02.025 (Conditional Use Permits) to operate; and

WHEREAS, the PUD includes architectural design guidelines, specific to the downtown location and mixed- use building type, and establishes the following design principles:

(a) Create an architectural character that reflects the various styles within the historic
downtown by using similar proportions, building details and building material;

(b) Create compatibility between the mixed-use architecture and the residential architecture within the downtown area; the introduction of unifying elements such as similar materials and colors should be considered; however, “sameness” is discouraged;

(c) Use materials that exhibit permanence and quality, and that unify a building's appearance on all sides; materials and colors should accentuate the architectural details of the building and promote visual harmony. Brick, tile, pre- cast architectural concrete, stone veneers, and stucco are preferred;

(d) Employ simple massing with wall openings that create shadow line and provide visual relief;

(e) Provide highly visible public entrances, preferably oriented to streets and outdoor spaces; shop entrances may be clearly expressed with recesses, overhangs, special materials and/or detailing;

(f) Storefronts shall incorporate high quality building materials. A durable base material (18 inches high min.) such as brick, tile, exterior cement plaster, or pre-cast architectural concrete shall be used. Storefront glazing and exterior plaster should not terminate at the ground plane;

(g) Storefront glazing shall be clear glass to permit clear views into the interior space. The amount of such glass shall provide a balance between high visibility into the store interior and architectural character/quality;

(h) Entrance doors shall be of a traditional style and transparent as possible; however, an all glass door is prohibited; and

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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

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 Compatibili ty Plan (hereinafter referred to as " 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 December 18, 2023, 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 HERE BY FOUND, DETERMINED, AND RESOLVED by the Planning Commission of the City of Ontario, as follows:

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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, and meets all of the following conditions:

(a) The proposed Project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations. The proposed Project is located within the Downtown Mixed Use land use designation of the Policy Plan (general plan) Land Use Map, and the MU- 1/LUA-2N (Downtown Mixed Use/ Arts District - North) zoning district. The proposed Project is consistent with all applicable Policy Plan policies, as well as with the requirements of the MU -1/LUA-2N (Downtown Mixed Use/ Arts District - North) zoning district and the related proposed Emporia Work Live Lofts Planned Unit Development, which, at the Project location, intends to accommodate 9 work/live units.

(b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses. The Project is proposed within the established boundaries of the City of Ontario, on a project site totaling 0. 48- acres of land, which is surrounded by established development on all sides and consists of a mix of single-family and multiple-family, light industrial, and commercial land uses.

(c) The Project site has no value as habitat for endangered, rare, or threatened species. The site is located in an urbanized area that has been fully paved, and as such is not suitable habitat for any endangered, rare, or threatened species. Additionally, the site is not identified on federal or state designation map.

(d) Approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality. The proposed residential development is similar to, and of no greater impact than other allowed uses and development projects within the MU-1/LUA-2N (Downtown Mixed Use/ Arts District - North) zoning district. The Project would not result in any significant impacts through implementation of required state, regional, and local development and performance standards, and as demonstrated in the Air Quality and Health Risk Assessment, Noise Analysis, and the Preliminary Water Quality Management Plan ("PWQMP") prepared for the Project. 1651
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(e) The site is adequately served by all required utilities and public services. All necessary wet and dry utilities are within the public street and are readily available for connection; 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 Housing Element Sites Inventory contained in Tables B-1 and B-2 of the Housing Element Technical Report.

SECTION 3:

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.

O
n April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Co mpatibility Plan, 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. A s 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 ONT ALUCP compatibility factors, including [1] Safety Criteria (ONT ALUCP Table 2 -2) and Safety Zones ( ONT ALUCP Map 2 -2), [2] Noise Criteria (ONT ALUCP Table 2-3) and Noise Impact Zones ( ONT ALUCP Map 2-3), [3] Airspace protection Zones ( ONT ALUCP Map 2- 4), and [ 4] Overflight Notification Zones ( ONT 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 ONT ALUCP.

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SECTION 4:

Concluding Facts and Reasons. Based upon the substantial evidence presented to the Planning Commission dur ing 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 PUD, or amendment thereto, 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 Project is consistent with Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. Described within the PUD are The Ontario Plan objectives in which the Project complies with the Policy Plan goals and policies.

(2) The proposed PUD, or amendment thereto, would not be detrimental to the public interest, health, safety, convenience, or general welfare of the City .

The Planning Commission has required certain safeguards through conditions of approval, which have been established to ensure that: [i] the purposes of the Planned Unit Development 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; [iv] the project will be in harmony with the area in which it is located; and [v] the project will be in full conformity with the Vision, City Council Priorities and Policy Plan components of The Ontario Plan.

(3) In the case of an application affecting specific property(ies), the proposed PUD, or amendment thereto, will not adversely affect the harmonious relationship with adjacent properties and land uses. The Emporia Work Live Lofts PUD area is situated in the heart of Ontario’s downtown and is adjacent to resi dential, light industrial, and commercial land uses and development. The surrounding development supports the objective of the PUD for joint work live quarters development.

The Project does not affect the harmonious relationship with adjacent properties and land use.

(4) In the case of an application affecting specific property(ies), 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. In preparing the proposed Emporia Work Live Lofts PUD, a thorough review and analysis of the proposed Project and the subject site’s physical suitability for the Project was completed, including analysis of the project size, shape, intensity of development, building height, building setbacks, site access, site landscaping and drainage, fences and walls, vehicle circulation, pedestrian connections, availability of mass transit, necessary street dedication and easements, public right -of-way improvements, availability of utilities and other infrastructure needs, off -street parking and circulation, building orientation and streetscapes, architectural character, building materials and color, and site signage.

Based upon this review and analysis, the subject site has been deemed physically 1653
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suitable, including but not limited to parcel size, shape, access, and availability of utilities, for the proposed Planned Unit Development and the proposed development.

(5) The proposed PUD is superior to that which could be obtained through the application of the Development Code or a specific plan. The Emporia Work Live Lofts PUD will establish minimum building setbacks, parking requirements, architectural design guidelines and establish occupant requirements. These standards will facilitate the mixed-use development of 9 work/live units. The proposed Emporia Work Live Lofts PUD will allow for subsequent development that is superior to that which could be obtained through the application of the Development Code by itself.

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, 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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- - - - - - - - - - - - -

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ATTACHMENT A:

File No. PUD21-002
Emporia Work/Live Lofts Planned Unit Development

(PUD to follow this page)

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December 18, 2023- Draft

EMPORIA WOR K /LIVE LOFTS

PLANNED UNIT DEVELOPMENT

413 W. Emporia Street
Ontario, California
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EMPORIA LIVE/WORK

PLANNED UNIT

DEVELOPMENT
413 W. Emporia Street
Ontario, California

Prepared for:

CITY OF ONTARIO
303 East B Street
Ontario, California 91764

Prepared by:

KEN LEE CONSULTING, LLC
Ken Lee, Principal
[email protected]
Kim Sutantyo, Project Manager
[email protected]
949.529.0915

In coordination with:

JWDA-MS ARCHITECTS
Michael Sun, President
[email protected]
626.288.9199

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EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMEN T

TABLE OF CONTENTS

SECTION 1 INTRODUCTION ................................................................................................................................. 1

1.1 Project Overview ............................................................................................................................................... 1 SECTION 2 PROJECT OBJECTIVES ........................................................................................................................ 3

2.1 Vision ................................................................................................................................................................. 3

2.2 Ontario Plan – Policy Plan ................................................................................................................................. 4

2.3 City Council Goals .............................................................................................................................................. 6

2.4 Implementation & Objectives ........................................................................................................................... 7 SECTION 3 LAND USE PLAN ................................................................................................................................ 8

3.1 Land Use Designation ........................................................................................................................................ 8

3.2 Permitted Uses .................................................................................................................................................. 8 SECTION 4 DEVELOPMENT REGULATIONS ......................................................................................................... 9

4.1 Development Intensity ...................................................................................................................................... 9

4.2 Building Height .................................................................................................................................................. 9

4.3 Building Setbacks .............................................................................................................................................. 9

4.4 Landscaping & Irrigation Plan ............................................................................................................................ 9

4.5 Equipment Screening ...................................................................................................................................... 10

4.6 Fences & Walls ................................................................................................................................................ 10 SECTION 5 PARKING AND CIRCULATION ......................................................................................................... 11

5.1 Site Accessibility .............................................................................................................................................. 11

5.2 Vehicle Circulation .............................................................................................. Error! Bookmark not defined.

5.3 Pedestrian Circulation ......................................................................................... Error! Bookmark not defined.

5.4 Access to Mass Transit .................................................................................................................................... 11

5.5 Public Right-of-Way Improvements ................................................................................................................ 10

5.6 Infrastructure ...................................................................................................... Error! Bookmark not defined.

5.7 Parking Requirements ..................................................................................................................................... 11 SECTION 6 DESIGN GUIDELINES ....................................................................................................................... 12

6.1 Building Orientation & Streetscapes ............................................................................................................... 12

6.2 Architectural Character ................................................................................................................................... 12

6.3 Architectural Details ............................................................................................ Error! Bookmark not defined.

6.4 Materials and Color ............................................................................................. Error! Bookmark not defined.

6.5 On-site Lighting ............................................................................................................................................... 12

6.6 Signage ................................................................................................................ Error! Bookmark not defined.

6.7 Off-site Improvements ........................................................................................ Error! Bookmark not defined.

SECTION 7 ADMINISTRATION .......................................................................................................................... 13

7.1 Items Not Addressed in the PUD ..................................................................................................................... 13

7.2 Development Applications .............................................................................................................................. 13

7.3 Administrative Exceptions ............................................................................................................................... 13

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EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMEN T PAGE 1
SECTION 1 INTRODUCTION
This Planned Unit Development (“PUD”) Plan for the Emporia Live/Work Project (“Project”) in the City of Ontario (“City”) provides an overview and description of the proposed live/work project located at 413 West Emporia Street.

The nine-unit Project is situated on a 0.46- acre vacant property (“Property”) located on the south side of West Emporia Street between South Vine and South Fern Avenues (see Exhibit 1.1 Project Location Map). The Project site is located in the Ontario Plan Downtown Mixed Use District (MU -1) Zone, Land Use Area 2N District (LUA-2N, Arts District - North), which requires the establishment of a Planned Unit Development and Conditional Use Permit (“CUP”) prior to the development of the property as set forth in the Ontario Development Code Section s 4.01.030 (Planned Unit Developments (PUD) and Amendments) and 5.02.010 (Allowed Land Uses, Activities, and Facilities) .

This PUD Plan (“Plan”) describes the City’s vision for the Downtown Mixed Use District, explains how the Project promotes the City’s land use goals and revitalization objectives, aligns with the City’s planning and design principles, and establishes the land use and development standards for the Project site. Unless otherwise defined herein, the definitions and interpretations contained in the City’s Development Code shall apply to this Plan.

City staff and private developers shall rely on this Plan to determine whether proposed development plans for the Property are adequate and meet the City’s land use and design objectives.

EXHIBIT 1.1: PROJECT LOCATION MAP

1.1 Project Overview
The proposed Project consists of three detached three- story building s with a total of nine live/work units. Each building is situated directly on Emporia Street with uncovered parking spaces at the rear of the property (see Exhibit PUD
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1.2 Project Site Plan). There are two unit types (garage configurations swapped), both 1,198 square feet in size and include an attached one-car garage. The “work” portion is located on the ground floor while the “live” portion is on the second and third floors.

EXHIBIT 1.2: PROJECT SITE PLAN

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SECTION 2 PROJECT OBJECTIVES
The Ontario Plan 2050 (“TOP”, also referred to as the General Plan) designates the Property for Mixed Use (MU -1 (Downtown)) land uses (see Exhibit 2.1). The MU land use category provides for “an intense mixture of uses that, when concentrated, create focal points for community activi ty and identity and facilitate the use of transit.” The Mixed Use land use category accommodates a horizontal and/or vertical mixture of retail, service, office, restaurant, entertainment, cultural, and residential uses. The Mixed Use designation require s approval of an Area Plan or Planned Unit Development prior to the development of the property. Additionally, the designation specifies a residential density range of 25 to 75 dwelling units per acre and a maximum floor area ratio (FAR) of 2.0.

EXHIBIT 2.1: GENERAL PLAN LAND USE PLAN

The Project is consistent with the principles, goals, and policies set forth in The Ontario Plan, including: (1) Vision ; (2) Policy Plan; (3) Implementation Programs; and (4) City Council Priorities.

2.1 Vision
On August 16, 2022, the Ontario City Council adopted The Ontario Vision 2050. The central theme that motivates the Vision is : “A sustained, community- wide prosperity which continuously adds value and yields benefits … Everything the City does and every action the City takes is done with the simple yet comprehensive theme in mind, from the design quality of the built environment, to the intent of designing socio-economic programs, to the way in which its leaders govern as a community. In discussing a Vision that would endure for the lifetime of The Ontario Plan (30 years or more), the City Council recognized that there are four components that serve as the basic building blocks that set the foundation for a unified and prosperous community. These foundational blocks must be expressed and widely accepted throughout The Ontario Plan’s lifetime.” They are:

PUD
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1. A Dynamic Balance that enables the community to confront the continued dynamic growth of the region and technological change with confidence and a sense of opportunity.

2. A Prosperous Economy that sustains the perception and reality of prosperity across our entire community that positively impacts all the people or Ontario and is broadly – though not uniformly – shared.

3. Distinctive Development that integrates our varied and diverse focal points, districts, villages, and neighborhoods to provide a feeling of coherence without sacrificing uniqueness.

4. Recognized Leadership in local governance that stimulates excellen ce and serves to unify the people of Ontario in support of best practices in conducting public endeavors.

The Emporia Live/Work Project would implement the Ontario Vision by:

• Developing live/work units on a site in tended to recognize Ontario’s historic downtown as the arts and entertainment center for the surrounding region.

• Preserving the integrity and character of the Downtown Mixed Use Zoning District while implementing the vision of an artist area in the Downtown.

• Incorporating high-quality materials that are complementary of the existing neighborhood and consistent with the design guidelines established for the Downtown Mixed-Use District.

• Implementing the TOP’s vision by creating a live/work development that provides a location for artists and galleries to strengthen the economic base of the area.

2.2 Ontario Plan – Policy Plan

2.2.1 LAND USE ELEMENT
Relevant The Ontario Plan Land Use Element (“LUE”) Goals and Policies are described below.

Goal/Policy General Plan Land Use Goal/Policy Discussion LUE Goal 1 Balance. A community that has a spectrum of housing types and price ranges that match the jobs in the City
and that make it possible for people to live and work
in Ontario and maintain a quality of life.

The development of a live/work project
implements the vision of providing people a
place where they can live where they work.

LUE Policy 1-1 Strategic Growth. Concentration of growth in strategic locations that help create place and identity, maximize available and planned infrastructure, and
foster development of transit.

The Project site is an infill parcel identified
in the “Downtown District Place Type
(Figure CD-023) of The Ontario Plan. It is in
close proximity to transit nodes and a
variety of land uses.

LUE Goal 2 Compatibility. Compatibility between a wide range of uses and resultant urban patterns and forms.

The PUD takes into account the existing
uses surrounding the property and buffers
new development through setbacks.

LUE Policy 2-2 Buffers. Mitigation or buffers between existing uses where potential adverse impacts could occur.

The PUD provides privacy buffers with
decorative masonry walls, landscaping and
setbacks.

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EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 5

2. 2. 2 H OUSING ELEMENT
Relevant The Ontario Plan Housing Element (“HE”) Goals & Policies are described below.

Goal/Policy Housing Element Goal/Policy Discussion
HE Goal 1 Neighborhoods & Housing Development Standards.

Stable neighborhoods of quality housing, ample
community services and public facilities, well-
maintained infrastructure, and public safety that
foster a positive sense of identity.

The PUD will ensure that adequate public
services, infrastructure, open space,
parking and traffic management,
pedestrian and bicycle routes, and public
safety are provided consistent with the City
master plans and neighborhood plans.

HE Goal 2 Housing Supply & Diversity. Diversity of types of quality housing that are affordable to a range of
household income levels, accommodate changing
demographics, and support and reinforce the
economic sustainability of Ontario.

The PUD will allow for the development of
nine 2-bedroom live/work units.

HE Policy 2-5 Housing Design. Architectural excellence through adherence to City design guidelines, thoughtful site
planning, environmentally sustainable practices, and
other best practices.

The PUD will ensure the Project’s
architectural enhancements contribute to
creating an urban environment that
promotes pedestrian traffic to the
envisioned ground-floor artist studios.

HE Policy 2-6 Infill Development. Revitalization of neighborhoods through the construction of higher-density residential
developments on underutilized residential and
commercial sites.

The PUD would permit the redevelopment
of a vacant site in the heart of the City’s
downtown.

2. 2. 3 COMMUNITY DESIGN ELEMENT
Relevant The Ontario Plan Community Design Element (“CDE”) Goals & Policies are described below.

Goal/Policy General Plan Community Design Element Policy Discussion CDE Goal 1 Image & Identify. A dynamic, progressive city containing distinct and complete places that foster a
positive sense of identity and belonging among
residents, visitors, and businesses.

The PUD will preserve the integrity and
character of the Downtown area.

CDE Policy 1-2 Place Types. Place Types in urban, mixed use, and transit-oriented areas to foster the City’s identity as a premier community and require new development
within each Place Type to incorporate prescribed
urban patterns, forms, and placemaking priorities.

The PUD adds to the cultural “heart” of the
City by expanding the City’s housing
opportunities through a Live/Work
development and a creative space for
artisans.

CDE Policy 1-3 Existing Neighborhoods. The existing character of viable residential and non-residential neighborhoods
be preserved, protected, and enhanced.

The PUD provides landscaping and building
setbacks to be sensitive to adjacent land
uses.

CDE Goal 2 Design Quality. A high level of design quality resulting in neighborhoods, commercial areas, public
spaces, parks, and streetscapes that are attractive,
safe, functional, and distinct.

The PUD provides an architectural design
and landscaping that are consistent with,
and promote walkability of, the
neighborhood.
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PAGE 6 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT
Goal/Policy General Plan Community Design Element Policy Discussion CDE Policy 2-1 Quality Architecture. 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
• Exterior building materials that are visually
interesting, high quality, durable, and
appropriate for architectural style.

The PUD is architecturally consistent with
the Downtown Ontario Design Guidelines,
incorporating a variety of materials and
articulation throughout the live/work
development, and further enhanced with
landscaping.

2.2. 4 CENTER CITY REDEVELOPMENT PLAN OBJ ECTIVES
The Project is located within the former Center City Redevelopment Project Area. Although the redevelopment project area no longer exists, the City continues to recognize the goals and objectives of the Center City Redevelopment Plan and support s projects that achieve its vision. The following objectives have been identified from the Redevelopment Plan pertaining to the Planned Unit Development:
• Create a healthy and exciting urban variety, the ability to work, live, shop and play within a small ar ea, combine daytime and nighttime use, and conserve energy and resources through mixed-use land development;
• Create an attractive and pleasant environment in the Project Area through the use of proper design, open space, and other amenities to enhance the aesthetic quality; • Encourage and facilitate medium and high -density development, including, but not limited to, condominiums, townhouses, apartments, and similar compatible uses; • Provide improvements necessary for the elimination of blight, and provide for the orderly development of commercial, industrial, and residential areas within the redevelopment project area.

The Center City Redevelopment Project Area Plan envisioned revitalization of the City’s downtown area, in part, by infusing high -density residential and mixed -use developments into the downtown core. The Ontario Plan was established to further this vision and is intended to create an intensive mixture of retail, office, and residential uses in a pedestrian-friendly atmosphere, ensure the histor ic character of the district is enhanced , and concentrate the most intense/dense development along Euclid Avenue and Holt Boulevard.

2.3 City Council Goals
The PUD is consistent with the City Council’s goals to:
• Invest in the growth and evolution of the City’s economy; and • Focus resources in Ontario’s commercial and residential neighborhoods .

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EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 7

2.4 Implementation & Objectives
The PUD implements the Ontario Plan through the development of nine live/work units in an area identified within the City’s Housing Element as growth area for development. The PUD’s objectives are to:
• Develop quality live/work development;
• Establish a livable project that is sensitive to the surrounding land uses, including the adjacent railroad corridor, by orienting buildings away from the corridor; • Promote expanded housing opportunities in Ontario’s Art District; • Promote work-from-home and small business growth; and • Encourage development of projects that will increase the daytime and nighttime population; and • Establish and maintain a harmonious use of land with the downtown area accommodating residential, commercial, retail, artisan co-ops, and cultural activities

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PAGE 8 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT
SECTION 3 LAND USE PLAN

3.1 Land Use Designation
The Project site is located within the Downtown Mixed Use land use a rea of the Ontario Plan Policy Plan (g eneral plan) land use district, and the LUA-2N (Arts District – North) of the MU -1 (Downtown Mixed -Use) zoning district, which implements the Downtown Mixed Use. The MU-1 zoning district is established to accommodate an intensive mixture of vertical and horizontal retail and office uses at a development intensity of up to 2.0 FAR, and the Arts District is intended to create a dynamic destination energized by artistic, educational, and commercial participants.

The Arts District North accommodates a mix of single and multiple-family residential, work/live lofts, artisan co-ops, restaurants, galleries, breweries, and other commercial uses intended to strengthen the economic base of the area.

Specific to the project location and site, p ermitted land uses are restricted to work/live units and light industrial uses, and/or a mix of commercial and light industrial uses in the same building specifically or o n the same site.

3. 2 Permitted and Conditionally Permitted Uses
Work/live units may only be occupied by artists, artisans, professionals, and similarly situated individuals subject to Chapter 5, Zoning and Land Use of the Development Code and shall require a Conditional Use Permit (CUP) pursuant to Section 4.02.025 (Conditional Use Permits) to operate.

Occupants and land uses may include:

Artist includes a person who creates art, such as painting, sculpture, music, and performances using conscious skill and creative imagination.

Boutique/Artisan Small-Scale and Micro Manufacturing Facilities includes all types of small -scale businesses that produce tangible goods, such as but not limited to: textiles, hardware and hardware prototyping, woodworking, metal working, 3D printing, consumer product design and prototyping, nonalcoholic beverage production, local food production and packaging, soaps, perfumes and lotions. Businesses may provide products directly to the consumer and/or to other businesses.

Similarly situated individuals include, but are not limited to , professionals that are engaged in accounting, legal, architecture, engineering, planning, bookkeeping, academic, and payroll professions. Similarly situated individuals shall conduct their activities in a manner that preserves the residential character of the neighborhood, safeguards the privacy, safety, and health of all residents.
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SECTION 4 : DEVELOPMENT REGULATIONS
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 9
SECTION 4 DEVELOPMENT

REGULATIONS

4.1 Development Intensity
The “workspace” area of the Work/Live Lofts, as described in Section 3.2, Permitted and Conditionally Permitted Uses, shall be limited to the ground floor. Upper levels shall be restricted to residential land use only. Each Work/Live unit shall be a minimum of 1,100 square feet with a minimum of 160 square feet designated, reserved and used as workspace for commercial purposes.

4.2 Building Height
Buildings shall be constructed with three levels not to exceed 35 feet in height, except roof- mounted equipment, architectural projections, chimneys, elevator towers, parapet walls , and any other roof top structures, may exceed maximum by up to 10% of the allowed building height. No rooftop equipment shall be visible from anywhere on the project site, public streets, or adjacent properties, and shall be fully screened with appropriate architectural parapet walls or appropriate roof treatments. Roof -mounted equipment shall not exceed the height of the structures and appurtenances used to screen the equipment.

4.3 Building Setbacks
Minimum building setbacks shall be set forth in Table 4-1 (Building Setbacks) and shall comply with Table 4.1.

TABLE 4.1: MINIMUM BUILDING SETBACKS
Setback
Emporia Street 5 feet
Interior Side 5 feet
Rear 10 feet
Structure 6 feet
Garage to garage 30 feet

All setbacks shall be measured from the ultimate property lines. Placement of buildings, structures, fences, walls, utility facilities, yards , etc. will be based on the street right -of-way and property line dimensions. Allowable encroachments in yards include (maximum 6 -foot high) property line fences and gates, landscaping, paving, and public utilities. Architectural features, balconies may encroach a maximum of 3 feet.

4. 4 Landscaping & Irrigation Plan
A conceptual landscape plan and preliminary drainage plan shall be submitted with the d evelopment plan for the Project. The plan shall specify all landscape and hardscape elements for the development plan site and shall provide a minimum site coverage of 15 percent . Detailed landscape and irrigation pl ans shall be required prior to issuance of building permits. The detailed plans shall show location of ground -mounted utility boxes and equipment, along with the methods of screening for these items from the public right-of-way and adjacent residences where possible.

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SECTION 4 : DEVELOPMENT REGULATIONS

PAGE 10 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT
The landscape and irrigation plan shall be designed with water conservation in mind, utilizing “California friendly” species and drought tolerant planting materials. The landscaping and irrigation shall comply with AB 1881 and all other laws the regulations related to planting materials.

4. 5 Equipment Screening
All roof-mounted and ground-mounted equipment shall be fully screened from view of the public street and adjacent developments. The location of equipment shall be designed to allow screening with landscape materials, walls, architectural features, parapet walls, etc. Screening shall be designed to be integrated into the design of the Project.

4. 6 Fences & Walls
Fences and walls for the P roject shall be made of decorative mater ials which are compatible with the overall architectural character of the Project. All fences and walls shall be in scale with the Project to fulfill screening and security needs. The existing 8- foot tall block wall on the eastern property line will remain. Planters with latticed vines will be planted along the western property line to provide a buffer from the adjacent building . A 6- foot tall block wall shall be constructed to replace an existing chain link fence along the southern property line. Although the Project’s Noise Study concluded the cumulative noise levels of adjacent train and airport activities comply with the maximum City of Ontario Noise standards of 65 dBA CNEL for residential and outdoor useable areas, a block wall would help reduce onsite noise levels. All walls shall be constructed consisted with the Ontario Development Code requirements for walls and fences.

4.7 Sign s
A Master Sign Program shall be submitted for approval by the Planning Department, prior to issuance of a building permit. The sign program shall be consistent with the Downtown Ontario Design Guidelines, and shall include tenant signs, pedestrian signs, directional signs, etc.
4 . 8 Public Right - o f - Way Improvements
The Project shall also improve the public right -of-way to be consistent with the City’s General Plan and Municipal Code. Public right -of-way improvements include , but are not limited to , the following: street pavement, curb and gutter, public sidewalks, streetlights, and fire hydrant. At a minimum, the improvements shall incorporate all items along the street frontage to be developed with proper transitioning if the entire block frontage is not being installed simultaneously. All off-site improvements shall be installed in accordance with City standards, and to the satisfaction of the City Engineering Department.

4. 9 Infrastructure
Water service for this PUD site will be provided by utilizing the existing wa ter lines under Emporia Street. Sewer connections from the PUD project site will also connect to existing lines in Emporia Street. On -site storm water drainage facilities shall be provided to capture and infiltrate a 2 -year, 1-hour storm event, consisten t with the San Bernardino County Stormwater Program’s Water Quality Management Plan (WQMP) requirements for new development projects. Stormwater capture and infiltration facilities may include the utilization of vegetated swales, depressed landscaped basi ns, pervious concrete pavement , or underground stormwater retention/infiltration vaults. All building roof and paved area runoff shall be directed into depressed landscaped swales, trenches or basins, within the development in order to comply with the requirement to capture and infiltrate the 2-year, 1-hour storm event runoff. All proposed Development Plans are required to prepare a Preliminary Water Quality Management Plan.

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SECTION 5 : PARKING AND CIRCULATION
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 11
SECTION 5 PARKING AND CIRCULATION

5.1 Site Accessibility and Circulation
The site shall be designed to promote the safety of patrons and residents. This can be achieved through building orientation and placement to minimize the use of gates and fencing and provide multiple points of access. Primary vehicular access to the site is from a 2- way driveway, located on Emporia Street, that leads to a 24 -foot-wide drive aisle providing access to private garages and surface parking spaces. The location of the drive aisle on Emporia Street shall be approved by the City Engineer.

Site design must provide for safe pedestrian circulation across the project site by separating the pedestrian areas from the vehicular access. This includes, but is not limited to, accessibility from the parking lot to unit entries, site amenities, and pe rimeter sidewalk areas. Pedestrian pathways will include enhanced paving treatments and textured and/or color pigmented concrete. Fencing and gates may be used to limit public access to resident -only areas.

5. 2 Access t o Mass Transit
Omnitrans Route 61, also identified as the future West Valley Connector Bus Rapid Transit (BRT) , has existing eastbound bus stops on West Holt Boulevard near South Vine Avenue and South Palm Avenue, and a westbound bus stop on West Holt Boulevard near South Vine Avenue which is less than one quarter of a mile from the project site.

5. 3 Parking Requirements
Off-street parking requirements for the Project requires a minimum of 1 parking space per bedroom and 3 spaces per 1,000 GFA (Gross Floor Area) of workspace area. All parking space size and location requirements shall conform to the standards set forth in Section 6.03.045 (Off-street Parking Standards) of the Ontario Development Code.

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SECTION 7 : ADMINISTRATION

PAGE 12 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT
S ECTION 6 DESIGN GUIDELINES

6.1 Building Orientation & Streetscapes
Building orientation shall be designed to minimize noise impacts, aid in providing site safety, create proper accessibility to unit entries and parking areas, and maximize views from each of the units. Buildings shall be located adjacent to the north property line (Emporia Avenue) and oriented east-west away from the railroad corridor on the southern border of the Project site.

6.2 Architectur e and Design
The architectural character establishes the following design principles:

(i) Create an architectural character that reflects the various styles within the historic downtown by using similar proportions, building details and building material.

(ii) Create compatibility between the mixed-use architecture and the residential architecture within the downtown area; the introduction of unifying elements such as similar materials and colors should be considered; however, “sameness” is discouraged.

(iii) Use materials that exhibit permanence and quality, and that unify a building's appearance on all sides; materials and colors should accentuate the architectural details of the building and promote visual harmony. Brick, tile, pre-cast architectural concrete, stone veneers, and stucco are preferred.

(iv) Employ simple massing with wall openings that create shadow line and provide visual relief.

(v) Provide highly visible public entrances, preferably oriented to streets and outdoor spaces; shop entrances may be clearly expressed with recesses, overhangs, special materials and/or detailing.

(vi) Storefronts shall incorporate high quality building materials. A durable base material (18 inches high min.) such as brick, tile, exterior cement plaster, or pre -cast architectural concrete shall be used. Storefront glazing and exterior plaster should not terminate at the ground plane.

(vii) Storefront glazing shall be clear glass to permit clear views into the interior space. The amount of such glass shall provide a balance between high visibility into the store interior and architectural character/quality.

(viii) Entrance doors shall be of a traditional style and transparent as possible; however, an all glass door is prohibited.

6. 3 On - s ite Lighting
Decorative light fixtures attached to the buildings shall be compatible with the architectural style of the buildings.

All lighting of facades, decorative fixtures, store window interiors, awnings, and signs shall be designed in accordance with the criteria set forth in Section 2D of the Downtown Ontario Design Guidelines. The use of building lighting and recessed wall mounted step lights to light pathways are encouraged. Decorative pole lights and fixtures shall be used which compliments the architectural design theme throughout the project area. All other on-site lighting shall meet the development standards of the Ontario Development Code.

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SECTION 7 : ADMINISTRATION
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 13
SECTION 7 ADMINISTRATION

7.1 Environmental Performance Standards
All land uses shall adhere to the environmental performance standards set forth in the Ontario Development Code, to avoid and minimize impacts involving noise, vibration, dust and paint, smoke, light, glare and heat, odors and gasses, hazardous and radioactive materials, and electromagnetic interference.

Architectural plans for all work/live units shall be submitted to the City of Ontario Building Department for an acoustical plan check, prior to the issuance of building permits, to assure that construction methods use standard materials that will attenuate 20 dBA of sound from outside to inside, or such that indoor noise does not exceed 45 dBA.

7. 2 Items Not Addressed i n the PUD
Any terms, requirements, or regulations not addressed within this Planned Unit Development document shall be governed by the City of Ontario Development Code, the regulations of the General Mixed Use zones , and City standards.

7. 3 Development Applications
Development Plan approval, pursuant to the requirements of Ontario Developme nt Code Section 4.02.025 (Development Plans), shall be required for the physical alteration of lot s, the construction of a building, or the addition or significant alteration of an existing building. A development plan application shall be submitted to the Planning Department on a City application form pursuant to the requirements of Ontario Development Code Division

2.02 (Application Filing and Processing), commencing with Subsection B (Discretionary Permits and Actions) of Section 2.02.015 (Application Processing Procedures).

7. 4 Administrative Exceptions
Deviation from the development standards set forth in this document may be granted up to a maximum of 10 percent by the Zoning Administrator. Any deviation that is greater than 10 percent shall require variance approval.

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JWDA-MS ARCHITECTS
8932 E. Mission Drive, Suite 101
Rosemead, CA 91770
Contact: Michael Sun, President
E-mail: [email protected]
Phone: 626.288.9199

KEN LEE CONSULTING, LLC
Contact: Ken Lee, Principal
E-mail: [email protected]
Phone: 949.529.0915

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EMPORIA WORK/LIVE LOFTS

APPENDIX A: ORDINANCE ADOPTING PUD
(Appendix A follows this page - to be updated)
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ORDINANCE NO.________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PUD21-002, A PLANNED UNIT

DEVELOPMENT TO ESTABLISH DEVELOPMENT AND PERFORMANCE
STANDARDS AND DESIGN GUIDELINES FOR 0.48-ACRES OF LAND
LOCATED AT 413 WEST EMPORIA STREET WITHIN THE LUA-2N
(ARTS DISTRICT- NORTH) OF THE MU-1 (DOWNTOWN MIXED USE) ZONING DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF— APN: 1049-059-03
WHEREAS, JWDS-MS Architects ("Applicant") has filed an Application for the approval of a Planned Unit Development (“PUD”), File No. PUD21-002, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and WHEREAS, the Application applies to 0.48 acres of land located at 413 West Emporia Avenue within the LUA-2N (Arts District- North) of the MU-1 (Downtown Mixed Use) zoning district, and is presently vacant and unimproved; and WHEREAS, surrounding the project site are characterized by a mixture of single- family and multiple-family residential, light industrial, and commercial to the east, west, and north and are located within the LUA-2N (Arts District- North) of the MU-1 (Downtown Mixed Use) zoning district; and the Southern Pacific Railroad Corridor is located to the south of the project site; and
WHEREAS, Omnitrans Route 61, also identified as the future West Valley Connector Bus Rapid Transit (BRT), has existing eastbound bus stops on West Holt Boulevard near South Vine Avenue and South Palm Avenue, and a westbound bus stop on West Holt Boulevard near South Vine Avenue which is less than one quarter of a mile from the project site; and
WHEREAS, the MU-1 (Downtown Mixed Use) zoning district allows for joint work live quarters. Consistent with the MU-1 zoning district and TOP Downtown District Place Type, the proposed Emporia Work Live Lofts Planned Unit Development (PUD) allows for 9 work/live units with the ground floor dedicated to a commercial work studio and the upper 2 floors are for living. Additionally, the PUD requires the operator to reside within the unit and limits the residential occupancy to 4 residents; and WHEREAS, the PUD requires a minimum of 1 resident parking space per bedroom and 1 visitor/employee parking space per 1000 square feet of gross floor area to be provided off street; and
WHEREAS, the PUD requires the work/live units to be occupied by artists, artisans, professionals, and similarly situated individuals subject to Chapter 5, Zoning and Land Use of the Development Code and shall require a Conditional Use Permit (CUP) pursuant to Section 4.02.025 (Conditional Use Permits) to operate; and 1677
WHEREAS, the PUD includes architectural design guidelines, specific to the downtown location and mixed-use building type, and establishes the following design principles:
(1) Create an architectural character that reflects the various styles within the historic downtown by using similar proportions, building details and building material;
(2) Create compatibility between the mixed-use architecture and the residential architecture within the downtown area; the introduction of unifying elements such as similar materials and colors should be considered; however, “sameness” is discouraged;
(3) Use materials that exhibit permanence and quality, and that unify a building's appearance on all sides; materials and colors should accentuate the architectural details of the building and promote visual harmony. Brick, tile, pre-cast architectural concrete, stone veneers, and stucco are preferred;
(4) Employ simple massing with wall openings that create shadow line and provide visual relief;
(5) Provide highly visible public entrances, preferably oriented to streets and outdoor spaces; shop entrances may be clearly expressed with recesses, overhangs, special materials and/or detailing;
(6) Storefronts shall incorporate high quality building materials. A durable base material (18 inches high min.) such as brick, tile, exterior cement plaster, or pre-cast architectural concrete shall be used. Storefront glazing and exterior plaster should not terminate at the ground plane;
(7) Storefront glazing shall be clear glass to permit clear views into the interior space. The amount of such glass shall provide a balance between high visibility into the store interior and architectural character/quality; (8) Entrance doors shall be of a traditional style and transparent as possible; however, an all glass door is prohibited; and
WHEREAS, the Application is a project pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("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 1678
WHEREAS, the Project is located within the Airport Influence Area of Ontario International Airport ("ONT"), 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 December 18, 2023, 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. PC23-102, recommending the City Council approve the Application; and
WHEREAS, on January 16, 2024, 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 Ordinance have occurred.

NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED, AND ORDAINED 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, and meets all of the following conditions:
(a) The proposed Project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations. The proposed Project is located within the Downtown Mixed- Use land use designation of the Policy Plan (general plan) Land Use Map, and the MU-1/LUA-2N (Downtown Mixed Use/Arts District- North) zoning district. The proposed Project is consistent with all applicable Policy Plan policies, 1679
as well as with the requirements of the MU-1/LUA-2N (Downtown Mixed Use/Arts District- North) zoning district and the related proposed Emporia Work Live Lofts Planned Unit Development, which, at the Project location, intends to accommodate 9 work/live units.
(b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses.

The Project is proposed within the established boundaries of the City of Ontario, on a project site totaling 0.48-acres of land, which is surrounded by established development on all sides and consists of a mix of single-family and multiple-family, light industrial, and commercial land uses.
(c) The Project site has no value as habitat for endangered, rare, or threatened species. The site is located in an urbanized area that has been fully paved, and as such is not suitable habitat for any endangered, rare, or threatened species. Additionally, the site is not identified on federal or state designation map.
(d) Approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality. The proposed residential development is similar to, and of no greater impact than other allowed uses and development projects within the MU-1/LUA- 2N (Downtown Mixed Use/Arts District- North) zoning district. The Project would not result in any significant impacts through implementation of required state, regional, and local development and performance standards, and as demonstrated in the Air Quality and Health Risk Assessment, Noise Analysis, and the Preliminary Water Quality Management Plan ("PWQMP") prepared for the Project.
(e) The site is adequately served by all required utilities and public services. All necessary wet and dry utilities are within the public street and are readily available for connection; 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: 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.
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(1) On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan, 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 ONT ALUCP compatibility factors, including [1] Safety Criteria (ONT ALUCP Table 2-2) and Safety Zones (ONT ALUCP Map 2-2), [2] Noise Criteria (ONT ALUCP Table 2-3) and Noise Impact Zones (ONT ALUCP Map 2-3), [3] Airspace protection Zones (ONT ALUCP Map 2-4), and [4] Overflight Notification Zones (ONT 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 ONT ALUCP; and
SECTION 3: 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 Section 1 and 2, above, the City Council hereby concludes as follows:
(1) The proposed PUD, or amendment thereto, 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 Project is consistent with Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. Described within the PUD are The Ontario Plan objectives in which the Project complies with the Policy Plan goals and policies.
(2) The proposed PUD, or amendment thereto, would not be detrimental to the public interest, health, safety, convenience, or general welfare of the City. The Planning Commission has required certain safeguards through conditions of approval, which have been established to ensure that:
[i] the purposes of the Planned Unit Development 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; [iv] the project will be in harmony with the area in which it is located; and [v] the project will be in full conformity with the Vision, City Council Priorities and Policy Plan components of The Ontario Plan.
(3) In the case of an application affecting specific property(ies), the proposed PUD, or amendment thereto, will not adversely affect the harmonious relationship with adjacent properties and land uses. The Emporia Work Live Lofts PUD area is situated in the heart of Ontario’s 1681
downtown and is adjacent to residential, light industrial, and commercial land uses and development. The surrounding development supports the objective of the PUD for joint work live quarters development. The Project does not affect the harmonious relationship with adjacent properties and land use. (4) In the case of an application affecting specific property(ies), 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. In preparing the proposed Emporia Work Live Lofts PUD, a thorough review and analysis of the proposed Project and the subject site’s physical suitability for the Project was completed, including analysis of the project size, shape, intensity of development, building height, building setbacks, site access, site landscaping and drainage, fences and walls, vehicle circulation, pedestrian connections, availability of mass transit, necessary street dedication and easements, public right-of-way improvements, availability of utilities and other infrastructure needs, off-street parking and circulation, building orientation and streetscapes, architectural character, building materials and color, and site signage. Based upon this review and analysis, the subject site has been deemed physically suitable, including but not limited to parcel size, shape, access, and availability of utilities, for the proposed Planned Unit Development and the proposed development.
(5) The proposed PUD is superior to that which could be obtained through the application of the Development Code or a specific plan.The Emporia Work Live Lofts PUD will establish minimum building setbacks, parking requirements, architectural design guidelines and establish occupant requirements. These standards will facilitate the mixed-use development of 9 work/live units. The proposed Emporia Work Live Lofts PUD will allow for subsequent development that is superior to that which could be obtained through the application of the Development Code by itself.

SECTION 4: City Council Action.Based upon the findings and conclusions set forth in Sections 1 through 3, above, the City Council hereby APPROVES the herein described Application, attached hereto as "Attachment A," and incorporated herein by this reference.

SECTION 5: 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 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. 1682
SECTION 7: Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The People of the City of Ontario hereby declare that they would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 8: Effective Date. This Ordinance shall become effective 30 days following its adoption.

SECTION 9: Publication and Posting. The Mayor shall sign this Ordinance and the City Clerk shall certify as to the adoption and shall cause a summary thereof to be published at least once, in a newspaper of general circulation in the City of Ontario, California within 15 days following the adoption. The City Clerk shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

PASSED, APPROVED, AND ADOPTED this ________ day of _________ 2024. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
_________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
1683

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 Ordinance No. _______ was duly introduced at a regular meeting of the City Council of the City of Ontario held _____________ and adopted at the regular meeting held ___________, 2023 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
I hereby certify that the foregoing is the original of Ordinance No. _______ duly passed and adopted by the Ontario City Council at their regular meeting held ____________ and that Summaries of the Ordinance were published on ___________ and _____________, in the Inland Valley Daily Bulletin newspaper.
__________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
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ATTACHMENT A:

File No. PUD21-002;
Emporia Work/Live Lofts PUD
(Document follows this page)
1685

December 18, 2023- Draft

EMPORIA WOR K /LIVE LOFTS

PLANNED UNIT DEVELOPMENT

413 W. Emporia Street
Ontario, California
1686

EMPORIA LIVE/WORK

PLANNED UNIT

DEVELOPMENT
413 W. Emporia Street
Ontario, California

Prepared for:

CITY OF ONTARIO
303 East B Street
Ontario, California 91764

Prepared by:

KEN LEE CONSULTING, LLC
Ken Lee, Principal
[email protected]
Kim Sutantyo, Project Manager
[email protected]
949.529.0915

In coordination with:

JWDA-MS ARCHITECTS
Michael Sun, President
[email protected]
626.288.9199

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EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMEN T

TABLE OF CONTENTS

SECTION 1 INTRODUCTION ................................................................................................................................. 1

1.1 Project Overview ............................................................................................................................................... 1 SECTION 2 PROJECT OBJECTIVES ........................................................................................................................ 3

2.1 Vision ................................................................................................................................................................. 3

2.2 Ontario Plan – Policy Plan ................................................................................................................................. 4

2.3 City Council Goals .............................................................................................................................................. 6

2.4 Implementation & Objectives ........................................................................................................................... 7 SECTION 3 LAND USE PLAN ................................................................................................................................ 8

3.1 Land Use Designation ........................................................................................................................................ 8

3.2 Permitted Uses .................................................................................................................................................. 8 SECTION 4 DEVELOPMENT REGULATIONS ......................................................................................................... 9

4.1 Development Intensity ...................................................................................................................................... 9

4.2 Building Height .................................................................................................................................................. 9

4.3 Building Setbacks .............................................................................................................................................. 9

4.4 Landscaping & Irrigation Plan ............................................................................................................................ 9

4.5 Equipment Screening ...................................................................................................................................... 10

4.6 Fences & Walls ................................................................................................................................................ 10 SECTION 5 PARKING AND CIRCULATION ......................................................................................................... 11

5.1 Site Accessibility .............................................................................................................................................. 11

5.2 Vehicle Circulation .............................................................................................. Error! Bookmark not defined.

5.3 Pedestrian Circulation ......................................................................................... Error! Bookmark not defined.

5.4 Access to Mass Transit .................................................................................................................................... 11

5.5 Public Right-of-Way Improvements ................................................................................................................ 10

5.6 Infrastructure ...................................................................................................... Error! Bookmark not defined.

5.7 Parking Requirements ..................................................................................................................................... 11 SECTION 6 DESIGN GUIDELINES ....................................................................................................................... 12

6.1 Building Orientation & Streetscapes ............................................................................................................... 12

6.2 Architectural Character ................................................................................................................................... 12

6.3 Architectural Details ............................................................................................ Error! Bookmark not defined.

6.4 Materials and Color ............................................................................................. Error! Bookmark not defined.

6.5 On-site Lighting ............................................................................................................................................... 12

6.6 Signage ................................................................................................................ Error! Bookmark not defined.

6.7 Off-site Improvements ........................................................................................ Error! Bookmark not defined.

SECTION 7 ADMINISTRATION .......................................................................................................................... 13

7.1 Items Not Addressed in the PUD ..................................................................................................................... 13

7.2 Development Applications .............................................................................................................................. 13

7.3 Administrative Exceptions ............................................................................................................................... 13

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EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMEN T PAGE 1
SECTION 1 INTRODUCTION
This Planned Unit Development (“PUD”) Plan for the Emporia Live/Work Project (“Project”) in the City of Ontario (“City”) provides an overview and description of the proposed live/work project located at 413 West Emporia Street.

The nine-unit Project is situated on a 0.46- acre vacant property (“Property”) located on the south side of West Emporia Street between South Vine and South Fern Avenues (see Exhibit 1.1 Project Location Map). The Project site is located in the Ontario Plan Downtown Mixed Use District (MU -1) Zone, Land Use Area 2N District (LUA-2N, Arts District - North), which requires the establishment of a Planned Unit Development and Conditional Use Permit (“CUP”) prior to the development of the property as set forth in the Ontario Development Code Section s 4.01.030 (Planned Unit Developments (PUD) and Amendments) and 5.02.010 (Allowed Land Uses, Activities, and Facilities) .

This PUD Plan (“Plan”) describes the City’s vision for the Downtown Mixed Use District, explains how the Project promotes the City’s land use goals and revitalization objectives, aligns with the City’s planning and design principles, and establishes the land use and development standards for the Project site. Unless otherwise defined herein, the definitions and interpretations contained in the City’s Development Code shall apply to this Plan.

City staff and private developers shall rely on this Plan to determine whether proposed development plans for the Property are adequate and meet the City’s land use and design objectives.

EXHIBIT 1.1: PROJECT LOCATION MAP

1.1 Project Overview
The proposed Project consists of three detached three- story building s with a total of nine live/work units. Each building is situated directly on Emporia Street with uncovered parking spaces at the rear of the property (see Exhibit PUD
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PAGE 2 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT

1.2 Project Site Plan). There are two unit types (garage configurations swapped), both 1,198 square feet in size and include an attached one-car garage. The “work” portion is located on the ground floor while the “live” portion is on the second and third floors.

EXHIBIT 1.2: PROJECT SITE PLAN

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SECTION 2 : PROJECT OBJECTIVE S
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 3
SECTION 2 PROJECT OBJECTIVES
The Ontario Plan 2050 (“TOP”, also referred to as the General Plan) designates the Property for Mixed Use (MU -1 (Downtown)) land uses (see Exhibit 2.1). The MU land use category provides for “an intense mixture of uses that, when concentrated, create focal points for community activity and identity and facilitate the use of transit.” The Mixed Use land use category accommodates a horizontal and/or vertical mixture of retail, service, office, restaurant, entertainment, cultural, and residential uses. The Mixed Use designation requires approval of an Area Plan or Planned Unit Development prior to the development of the propert y. Additionally, the designation specifies a residential density range of 25 to 75 dwelling units per acre and a maximum floor area ratio (FAR) of 2.0.

EXHIBIT 2.1: GENERAL PLAN LAND USE PLAN

The Project is consistent with the principles, goals, and policies set forth in The Ontario Plan, including: (1) Vision ; (2) Policy Plan; (3) Implementation Programs; and (4) City Council Priorities.

2.1 Vision
On August 16, 2022, the Ontario City Council adopted The Ontario Vision 2050. The central theme that motivates the Vision is : “A sustained, community- wide prosperity which continuously adds value and yields benefits … Everything the City does and every action the City takes is done with the simple yet comprehensive theme in mind, from the design quality of the built environment, to the intent of designing socio-economic programs, to the way in which its leaders govern as a community. In discussing a Vision that would endure for the lifetime of The Ontario Plan (30 years or more), the City Council recognized that there are four components that serve as the basic building blocks that set the foundation for a unified and prosperous community. These foundational blocks must be expressed and widely accepted throughout The Ontario Plan’s lifetime.” They are:

PUD
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PAGE 4 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT

1. A Dynamic Balance that enables the community to confront the continued dynamic growth of the region and technological change with confidence and a sense of opportunity.

2. A Prosperous Economy that sustains the perception and reality of prosperity across our entire community that positively impacts all the people or Ontario and is broadly – though not uniformly – shared.

3. Distinctive Development that integrates our varied and diverse focal points, districts, villages, and neighborhoods to provide a feeling of coherence without sacrificing uniqueness.

4. Recognized Leadership in local governance that stimulates excellence and serves to unify the people of Ontario in support of best practices in conducting public endeavors.

The Emporia Live/Work Project would implement the Ontario Vision by:

• Developing live/work units on a site in tended to recognize Ontario’s historic downtown as the arts and entertainment center for the surrounding region.

• Preserving the integrity and character of the Downtown Mixed Use Zoning District while implementing the vision of an artist area in the Downtown.

• Incorporating high-quality materials that are complementary of the existing neighborhood and consistent with the design guidelines established for the Downtown Mixed-Use District.

• Implementing the TOP’s vision by creating a live/work development that provides a location for artists and galleries to strengthen the economic base of the area.

2.2 Ontario Plan – Policy Plan

2.2.1 LAND USE ELEMENT
Relevant The Ontario Plan Land Use Element (“LUE”) Goals and Policies are described below.

Goal/Policy General Plan Land Use Goal/Policy Discussion LUE Goal 1 Balance. A community that has a spectrum of housing types and price ranges that match the jobs in the City
and that make it possible for people to live and work
in Ontario and maintain a quality of life.

The development of a live/work project
implements the vision of providing people a
place where they can live where they work.

LUE Policy 1-1 Strategic Growth. Concentration of growth in strategic locations that help create place and identity, maximize available and planned infrastructure, and
foster development of transit.

The Project site is an infill parcel identified
in the “Downtown District Place Type
(Figure CD-023) of The Ontario Plan. It is in
close proximity to transit nodes and a
variety of land uses.

LUE Goal 2 Compatibility. Compatibility between a wide range of uses and resultant urban patterns and forms.

The PUD takes into account the existing
uses surrounding the property and buffers
new development through setbacks.

LUE Policy 2-2 Buffers. Mitigation or buffers between existing uses where potential adverse impacts could occur.

The PUD provides privacy buffers with
decorative masonry walls, landscaping and
setbacks.

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SECTION 2 : PROJECT OBJECTIVE S
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 5

2. 2. 2 HOUSING ELEMENT
Relevant The Ontario Plan Housing Element (“HE”) Goals & Policies are described below.

Goal/Policy Housing Element Goal/Policy Discussion
HE Goal 1 Neighborhoods & Housing Development Standards.

Stable neighborhoods of quality housing, ample
community services and public facilities, well-
maintained infrastructure, and public safety that
foster a positive sense of identity.

The PUD will ensure that adequate public
services, infrastructure, open space,
parking and traffic management,
pedestrian and bicycle routes, and public
safety are provided consistent with the City
master plans and neighborhood plans.

HE Goal 2 Housing Supply & Diversity. Diversity of types of quality housing that are affordable to a range of
household income levels, accommodate changing
demographics, and support and reinforce the
economic sustainability of Ontario.

The PUD will allow for the development of
nine 2-bedroom live/work units.

HE Policy 2-5 Housing Design. Architectural excellence through adherence to City design guidelines, thoughtful site
planning, environmentally sustainable practices, and
other best practices.

The PUD will ensure the Project’s
architectural enhancements contribute to
creating an urban environment that
promotes pedestrian traffic to the
envisioned ground-floor artist studios.

HE Policy 2-6 Infill Development. Revitalization of neighborhoods through the construction of higher-density residential
developments on underutilized residential and
commercial sites.

The PUD would permit the redevelopment
of a vacant site in the heart of the City’s
downtown.

2. 2. 3 COMMUNITY DESIGN ELEMENT
Relevant The Ontario Plan Community Design Element (“CDE”) Goals & Policies are described below.

Goal/Policy General Plan Community Design Element Policy Discussion CDE Goal 1 Image & Identify. A dynamic, progressive city containing distinct and complete places that foster a
positive sense of identity and belonging among
residents, visitors, and businesses.

The PUD will preserve the integrity and
character of the Downtown area.

CDE Policy 1-2 Place Types. Place Types in urban, mixed use, and transit-oriented areas to foster the City’s identity as a premier community and require new development
within each Place Type to incorporate prescribed
urban patterns, forms, and placemaking priorities.

The PUD adds to the cultural “heart” of the
City by expanding the City’s housing
opportunities through a Live/Work
development and a creative space for
artisans.

CDE Policy 1-3 Existing Neighborhoods. The existing character of viable residential and non-residential neighborhoods
be preserved, protected, and enhanced.

The PUD provides landscaping and building
setbacks to be sensitive to adjacent land
uses.

CDE Goal 2 Design Quality. A high level of design quality resulting in neighborhoods, commercial areas, public
spaces, parks, and streetscapes that are attractive,
safe, functional, and distinct.

The PUD provides an architectural design
and landscaping that are consistent with,
and promote walkability of, the
neighborhood.
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SECTION 2 : PROJECT OBJECTIVES

PAGE 6 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT
Goal/Policy General Plan Community Design Element Policy Discussion CDE Policy 2-1 Quality Architecture. 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
• Exterior building materials that are visually
interesting, high quality, durable, and
appropriate for architectural style.

The PUD is architecturally consistent with
the Downtown Ontario Design Guidelines,
incorporating a variety of materials and
articulation throughout the live/work
development, and further enhanced with
landscaping.

2.2. 4 CENTER CITY REDEVELOPMENT PLAN OBJECTIVES
The Project is located within the former Center City Redevelopment Project Area. Although the redevelopment project area no longer exists, the City continues to recognize the goals and objectives of the Center City Redevelopment Plan and support s projects that achieve its vision. The following objectives have been identified from the Redevelopment Plan pertaining to the Planned Unit Development:
• Create a healthy and exciting urban variety, the ability to work, live, shop and play within a small area, combine daytime and nighttime use, and conserve energy and resources through mixed-use land development;
• Create an attractive and pleasant environment in the Project Area through the use of proper design, open space, and other amenities to enhance the aesthetic quality; • Encourage and facilitate medium and high -density development, including, but not limited to, condominiums, townhouses, apartments, and similar compatible uses; • Provide improvements necessary for the elimination of blight, and provide for the orderly development of commercial, industrial, and residential areas within the redevelopment project area.

The Center City Redevelopment Project Area Plan envisioned revitalization of the City’s downtown area, in part, by infusing high -density residential and mixed- use developments into the downtown core. The Ontario Plan was established to further this vision and is intended to create an intensive mixture of retail, office, and residential uses in a pedestrian-friendly atmosphere, ensure the historic character of the district is enhanced, and concentrate the most intense/dense development along Euclid Avenue and Holt Boulevard.

2.3 City Council Goals
The PUD is consistent with the City Council’s goals to:
• Invest in the growth and evolution of the City’s economy; and • Focus resources in Ontario’s commercial and residential neighborhoods .

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SECTION 2 : PROJECT OBJECTIVE S
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 7

2.4 Implementation & Objectives
The PUD implements the Ontario Plan through the development of nine live/work units in an area identified within the City’s Housing Element as growth area for development. The PUD’s objectives are to:
• Develop quality live/work development;
• Establish a livable project that is sensitive to the surrounding land uses, including the adjacent railroad corridor, by orienting buildings away from the corridor; • Promote expanded housing opportunities in Ontario’s Art District; • Promote work-from-home and small business growth; and • Encourage development of projects that will increase the daytime and nighttime population; and • Establish and maintain a harmonious use of land with the downtown area accommodating residential, commercial, retail, artisan co-ops, and cultural activities

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SECTION 3 : LAND USE PLAN

PAGE 8 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT
SECTION 3 LAND USE PLAN

3.1 Land Use Designation
The Project site is located within the Downtown Mixed Use land use a rea of the Ontario Plan Policy Plan ( general plan) land use district, and the LUA-2N (Arts District – North) of the MU -1 (Downtown Mixed -Use) zoning district, which implements the Downtown Mixed Use. The MU-1 zoning district is established to accommodate an intensive mixture of vertical and horizontal retail and office uses at a development intensity of up to 2.0 FAR , and the Arts District is intended to create a dynamic destination energized by artistic, educational, and commercial participants.

The Arts District North accommodates a mix of single and multiple-family residential, work/live lofts, artisan co-ops, restaurants, galleries, breweries, and other commercial uses intended to strengthen the economic base of the area.

Specific to the project location and site, p ermitted land uses are restricted to work/live units and light industrial uses, and/or a mix of commercial and light industrial uses in the same building specifically or on the same site.

3. 2 Permitted and Conditionally Permitted Uses
Work/live units may only be occupied by artists, artisans, professionals, and similarly situated individuals subject to Chapter 5, Zoning and Land Use of the Development Code and shall require a Conditional Use Permit (CUP) pursuant to Section 4.02.025 (Conditional Use Permits) to operate.

Occupants and land uses may include:

Artist includes a person who creates art, such as painting, sculpture, music, and performances using conscious skill and creative imagination.

Boutique/Artisan Small-Scale and Micro Manufacturing Facilities includes all types of small -scale businesses that produce tangible goods, such as but not limited to: textiles, hardware and hardware prototyping, woodworking, metal working, 3D printing, consumer product design and prototyping, nonalcoholic beverage production, local food production and packaging, soaps, perfumes and lotions. Businesses may provide products directly to the consumer and/or to other businesses.

Similarly situated individuals include, but are not limited to , professionals that are engaged in accounting, legal, architecture, engineering, planning, bookkeeping, academic, and payroll professions. Similarly situated individuals shall conduct their activities in a manner that preserves the residential character of the neighborhood, safeguards the privacy, safety, and health of all residents.
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SECTION 4 : DEVELOPMENT REGULATIONS
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 9
SECTION 4 DEVELOPMENT

REGULATIONS

4.1 Development Intensity
The “workspace” area of the Work/Live Lofts, as described in Section 3.2, Permitted and Conditionally Permitted Uses, shall be limited to the ground floor. Upper levels shall be restricted to residential land use only. Each Work/Live unit shall be a minimum of 1,100 square feet with a minimum of 160 square feet designated, reserved and used as workspace for commercial purposes.

4.2 Building Height
Buildings shall be constructed with three levels not to exceed 35 feet in height, except roof- mounted equipment, architectural projections, chimneys, elevator towers, parapet walls , and any other roof top structures, may exceed maximum by up to 10% of the allowed building height. No rooftop equipment shall be visible from anywhere on the project site, public streets, or adjacent properties, and shall be fully screened with appropriate architectural parapet walls or appropriate roof treatments. Roof -mounted equipment shall not exceed the height of the structures and appurtenances used to screen the equipment.

4.3 Building Setbacks
Minimum building setbacks shall be set forth in Table 4-1 (Building Setbacks) and shall comply with Table 4.1.

TABLE 4.1: MINIMUM BUILDING SETBACKS
Setback
Emporia Street 5 feet
Interior Side 5 feet
Rear 10 feet
Structure 6 feet
Garage to garage 30 feet

All setbacks shall be measured from the ultimate property lines. Placement of buildings, structures, fences, walls, utility facilities, yards , etc. will be based on the street right -of-way and property line dimensions. Allowable encroachments in yards include (maximum 6 -foot high) property line fences and gates, landscaping, paving, and public utilities. Architectural features, balconies may encroach a maximum of 3 feet.

4. 4 Landscaping & Irrigation Plan
A conceptual landscape plan and preliminary drainage plan shall be submitted with the d evelopment plan for the Project. The plan shall specify all landscape and hardscape elements for the development plan site and shall provide a minimum site coverage of 15 percent . Detailed landscape and irrigation plans shall be required prior to issuance of building permits. The detailed plans shall show location of ground -mounted utility boxes and equipment, along with the methods of screening for these items from the public right-of-way and adjacent residences where possible.

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SECTION 4 : DEVELOPMENT REGULATIONS

PAGE 10 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT
The landscape and irrigation plan shall be designed with water conservation in mind, utilizing “California friendly” species and drought tolerant planting materials. The landscaping and irrigation shall comply with AB 1881 and all other laws the regulations related to planting materials.

4. 5 Equipment Screening
All roof-mounted and ground-mounted equipment shall be fully screened from view of the public street and adjacent developments. The location of equipment shall be designed to allow screening with landscape materials, walls, architectural features, parapet walls, etc. Screening shall be designed to be integrated into the design of the Project.

4. 6 Fences & Walls
Fences and walls for the P roject shall be made of decorative materials which are compatible with the overall architectural character of the Project. All fences and walls shall be in scale with the Project to fulfill screening and security needs. The existing 8- foot tall block wall on the eastern property line will remain. Planters with latticed vines will be planted along the western property line to provide a buffer from the adjacent building . A 6 -foot tall block wall shall be constructed to replace an existing chain link fence along the southern property line. Although the Project’s Noise Study concluded the cumulative noise levels of adjacent train and airport activities comply with the maximum City of Ontario Noise standards of 65 dBA CNEL for residential and outdoor useable areas, a block wall would help reduce onsite noise levels. All walls shall be constructed consisted with the Ontario Development Code requirements for walls and fences.

4.7 Sign s
A Master Sign Program shall be submitted for approval by the Planning Department, prior to issuance of a building permit. The sign program shall be consistent with the Downtown Ontario Design Guidelines, and shall include tenant signs, pedestrian signs, directional signs, etc.
4 . 8 Public Right - o f - Way Improvements
The Project shall also improve the public right -of-way to be consistent with the City’s General Plan and Municipal Code. Public right -of-way improvements include , but are not limited to , the following: street pavement, curb and gutter, public sidewalks, streetlights, and fire hydrant. At a minimum, the improvements shall incorporate all items along the street frontage to be developed with proper transitioning if the entire block frontage is not being installed simultaneously. All off-site improvements shall be installed in accordance with City standards, and to the satisfaction of the City Engineering Department.

4. 9 Infrastructure
Water service for this PUD site will be provided by utilizing the existing water lines under Emporia Street. Sewer connections from the PUD project site will also connect to existing lines in Emporia Street. On -site storm water drainage facilities shall be provided to capture and infiltrate a 2 -year, 1-hour storm event, consistent with the San Bernardino County Stormwater Program’s Water Quality Management Plan (WQMP) requirements for new development projects. Stormwater capture and infiltration facilities may include the utilization of vegetated swales, depressed landscaped basins, pervious concrete pavement , or underground stormwater retention/infiltration vaults. All building roof and paved area runoff shall be directed into depressed landscaped swales, trenches or basins, within the development in order to comply with the requirement to capture and infiltrate the 2-year, 1-hour storm event runoff. All proposed Development Plans are required to prepare a Preliminary Water Quality Management Plan.

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SECTION 5 : PARKING AND CIRCULATION
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 11
SECTION 5 PARKING AND CIRCULATION

5.1 Site Accessibilit y and Circulation
The site shall be designed to promote the safety of patrons and residents. This can be achieved through building orientation and placement to minimize the use of gates and fencing and provide multiple points of access. Primary vehicular access to the site is from a 2- way driveway, located on Emporia Street, that leads to a 24 -foot-wide drive aisle providing access to private garages and surface parking spaces. The location of the drive aisle on Emporia Street shall be approved by the City Engineer.

Site design must provide for safe pedestrian circulation across the project site by separating the pedestrian areas from the vehicular access. This includes, but is not limited to, accessibility from the parking lot to unit entries, site amenities, and perimeter sidewalk areas. Pedestrian pathways will include enhanced paving treatments and textured and/or color pigmented concrete. Fencing and gates may be used to limit public access to resident -only areas.

5. 2 Access t o Mass Transit
Omnitrans Route 61, also identified as the future West Valley Connector Bus Rapid Transit (BRT) , has existing eastbound bus stops on West Holt Boulevard near South Vine Avenue and South Palm Avenue , and a westbound bus stop on West Holt Boulevard near South Vine Avenue which is less than one quarter of a mile from the project site.

5. 3 Parking Requirements
Off-street parking requirements for the Project requires a minimum of 1 parking space per bedroom and 3 spaces per 1,000 GFA (Gross Floor Area) of workspace area. All parking space size and location requirements shall conform to the standards set forth in Section 6.03.045 (Off-street Parking Standards) of the Ontario Development Code.

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SECTION 7 : ADMINISTRATION

PAGE 12 EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT
SECTION 6 DESIGN GUIDELINES

6.1 Building Orientation & Streetscapes
Building orientation shall be designed to minimize noise impacts, aid in providing site safety, create proper accessibility to unit entries and parking areas, and maximize views from each of the units. Buildings shall be located adjacent to the north property line (Emporia Avenue) and oriented east-west away from the railroad corridor on the southern border of the Project site.

6.2 Architectur e and Design
The architectural character establishes the following design principles:

(i) Create an architectural character that reflects the various styles within the historic downtown by using similar proportions, building details and building material.

(ii) Create compatibility between the mixed-use architecture and the residential architecture within the downtown area; the introduction of unifying elements such as similar materials and colors should be considered; however, “sameness” is discouraged.

(iii) Use materials that exhibit permanence and quality, and that unify a building's appearance on all sides; materials and colors should accentuate the architectural details of the building and promote visual harmony. Brick, tile, pre-cast architectural concrete, stone veneers, and stucco are preferred.

(iv) Employ simple massing with wall openings that create shadow line and provide visual relief.

(v) Provide highly visible public entrances, preferably oriented to streets and outdoor spaces; shop entrances may be clearly expressed with recesses, overhangs, special materials and/or detailing.

(vi) Storefronts shall incorporate high quality building materials. A durable base material (18 inches high min.) such as brick, tile, exterior cement plaster, or pre -cast architectural concrete shall be used. Storefront glazing and exterior plaster should not terminate at the ground plane.

(vii) Storefront glazing shall be clear glass to permit clear views into the interior space. The amount of such glass shall provide a balance between high visibility into the store interior and architectural character/quality.

(viii) Entrance doors shall be of a traditional style and transparent as possible; however, an all glass door is prohibited.

6. 3 On - s ite Lighting
Decorative light fixtures attached to the buildings shall be compatible with the architectural style of the buildings.

All lighting of facades, decorative fixtures, store window interiors, awnings, and signs shall be designed in accordance with the criteria set forth in Section 2D of the Downtown Ontario Design Guidelines. The use of building lighting and recessed wall mounted step lights to light pathways are encouraged. Decorative pole lights and fixtures shall be used which compliments the architectural design theme throughout the project area. All other on-site lighting shall meet the development standards of the Ontario Development Code.

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SECTION 7 : ADMINISTRATION
EMPORIA LIVE/WORK PLANNED UNIT DEVELOPMENT PAGE 13
SECTION 7 ADMINISTRATION

7.1 Environmental Performance Standards
All land uses shall adhere to the environmental performance standards set forth in the Ontario Development Code, to avoid and minimize impacts involving noise, vibration, dust and paint, smoke, light, glare and heat, odors and gasses, hazardous and radioactive materials, and electromagnetic interference.

Architectural plans for all work/live units shall be submitted to the City of Ontario Building Department for an acoustical plan check, prior to the issuance of building permits, to assure that construction methods use standard materials that will attenuate 20 dBA of sound from outside to inside, o r such that indoor noise does not exceed 45 dBA.

7. 2 Items Not Addressed i n the PUD
Any terms, requirements, or regulations not addressed within this Planned Unit Development document shall be governed by the City of Ontario Development Code, the regulations of the General Mixed Use zones , and City standards.

7. 3 Development Applications
Development Plan approval, pursuant to the requirements of Ontario Development Code Section 4.02.025 (Development Plans), shall be required for the physical alteration of lots, the construction of a building, or the addition or significant alteration of an existing building. A development plan application shall be submitted to the Planning Department on a City application form pursuant to the requirements of Ontario Development Code Division

2.02 (Application Filing and Processing), commencing with Subsect ion B (Discretionary Permits and Actions) of Section 2.02.015 (Application Processing Procedures).

7. 4 Administrative Exceptions
Deviation from the development standards set forth in this document may be granted up to a maximum of 10 percent by the Zoning Administrator. Any deviation that is greater than 10 percent shall require variance approval.

1701

JWDA-MS ARCHITECTS
8932 E. Mission Drive, Suite 101
Rosemead, CA 91770
Contact: Michael Sun, President
E-mail: [email protected]
Phone: 626.288.9199

KEN LEE CONSULTING, LLC
Contact: Ken Lee, Principal
E-mail: [email protected]
Phone: 949.529.0915

1702

EMPORIA WORK/LIVE LOFTS

APPENDIX A: ORDINANCE ADOPTING PUD
(Appendix A follows this page - to be updated )
1703
Department: Community Development
Prepared By: Pablo DeLara
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 24
SUBJECT:

A PUBLIC HEARING TO CONSIDER THE ADOPTION OF AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT (FILE NO. PDA21-012) BETWEEN THE

CITY OF ONTARIO AND RICHLAND MEADOWLAND, LTD, STRACK FARMS LAND,

LLC, AND RMD INLAND INVESTORS, LLC

CITY OF ONTARIO
Agenda Report
January 16, 2024
SECTION:

PUBLIC HEARINGS

RECOMMENDATION:

That the City Council introduce and waive further reading of an Ordinance approving a Development Agreement (File No. PDA21-012) between the City of Ontario and Richland Meadowland, LTD, Strack Farms Land, LLC, and RMD Inland Investors, LLC.

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 Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
FISCAL IMPACT:

There is not a direct fiscal impact associated with this action . The Development
Agreement will provide funding from the formation of a Community Facilities District (CFD) for City services and facilities required to support the Subarea 29 Specific Plan (Specific Plan) development, thereby mitigating the increased costs associated with such services. In addition, the City will receive public service funding fees plus development impact, compliance processing, licensing, and permitting fees. No General Fund revenue will be used to support the Ontario Ranch development.

BACKGROUND & ANALYSIS:

The Ontario Ranch financial commitments required for construction of properties within a specific plan are substantial. Therefore, in order to adequately forecast these costs and gain assurance that the project may proceed under the existing policies, rules, and regulations, Richland Ontario Developers, LLC, Richland Meadowland, LTD, Strack Farms Land, LLC, and RMD Inland Investors, LLC (collectively the "Applicant" or "Owner"), has requested that the City enter into negotiations to create a Development Agreement (Agreement). 1704
The Agreement proposes to include 47.16 acres of land within Planning Area 30 and Planning Area 31 of the Subarea 29 Specific Plan, as shown on the attached Exhibit "A." The Agreement grants the Applicant a vested right to develop Tentative Tract Map 20472 (Map), provided the Owner complies with the terms and conditions of the Specific Plan and related EIR.

The Map, as shown on the attached Exhibit "B," is located at the southwest corner of Eucalyptus Avenue and Haven Avenue and proposes to subdivide 47.16 acres of land into 198 numbered lots and 45 lettered lots for residential uses, private drives, parking, landscape edges and common open space purposes.

The term of the Agreement is for 10 years, with a 5-year option to renew. The main points of the Agreement address funding for all new City expenses created by the project, which includes:

Development Impact Fees (DIF) for construction of public improvements (i.e. streets and bridges, sewer, water, storm drain and fiber); Public Service Funding to ensure adequate provisions of public services (police, fire and other public services); and the creation of a Community Facilities District (CFD) for the maintenance of public facilities.

In considering the Agreement at their meeting on December 18, 2023, the Planning Commission found the Agreement to be consistent with State law, The Ontario Plan, and the City's Development Agreement policies. As a result, the Planning Commission adopted Resolution No. PC23-105 with a 5 to 0 vote, recommending City Council approval of the Agreement.

ENVIRONMENTAL REVIEW:

The environmental impacts of this Project were previously reviewed in conjunction with File No. PSPA21-005, a Specific Plan Amendment for which a Subsequent Environmental Impact Report (SEIR) (State Clearinghouse No. 2004011009) was adopted by the City Council on November 21, 2023. This application introduces no new significant environmental impacts. All previously adopted mitigation measures are a condition of Project approval and are incorporated herein by this reference.

1705
Exhibit A:

SUBAREA 29 SPECIFIC PLAN LAND USE MAP (File No. (File No. PSPA21-005)

1706
Exhibit B:

TENTATIVE TRACT MAP NO. 20472

1707
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDA21-012, A DEVELOPMENT

AGREEMENT BETWEEN THE CITY OF ONTARIO AND RICHLAND

MEADOWLAND, LTD A TEXAS LIMITED PARTNERSHIP, STRACK

FARMS LAND, LLC, A DELAWARE LIMITED LIABILITY COMPANY,

AND RMD INLAND INVESTORS, LLC, A DELAWARE LIMITED

LIABILITY COMPANY, TO ESTABLISH THE TERMS AND
CONDITIONS ASSOCIATED WITH TENTATIVE TRACT MAP 20472
(FILE NO. PMTT21-018), A 47.16 ACRE PROPERTY LOCATED AT THE

SOUTHWEST CORNER OF EUCALYPTUS AVENUE AND HAVEN
AVENUE, WITHIN PLANNING AREA 30 MIXED RESIDENTIAL AND
PLANNING AREA 31 MIXED RESIDENTIAL OF THE SUBAREA 29
SPECIFIC PLAN (FILE NO. PSPA21-005), AND MAKING FINDINGS IN SUPPORT THEREOF—APN(S): 0218-331-31 AND 0218-331-52.

WHEREAS, Richland Ontario Developers, LLC ("Applicant") has filed an Application for the approval of a Development Agreement, File No. PDA21-012, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and
WHEREAS, the Application applies to 47.16 acres of land located at the southwest corner of Eucalyptus Avenue and Haven Avenue, within Planning Area 30 (Mixed Residential) and Planning Area 31 (Mixed-Residential) of the Subarea 29 Specific Plan (File No. PSPA21-005); and
WHEREAS, the Applicant submitted Tentative Tract Map No. 20472 (File No.

PMTT21-018), subdividing 47.16 acres of land into 198 numbered lots and 45 lettered lots for residential uses, private drives, parking, landscape edges and common open space purposes, located at the southwest corner of Eucalyptus Avenue and Haven Avenue within Planning Area 30 Mixed Residential (5-25 du/ac) and Planning Area 31 Mixed Residential (5-25 du/ac) of the Subarea 29 Specific Plan; and
WHEREAS, the environmental impacts of this Project were previously reviewed in conjunction with File No. PSPA21-005, a Specific Plan Amendment for which a Subsequent Environmental Impact Report (SEIR) (State Clearinghouse No. 2004011009) was adopted by the City Council on November 21, 2023, and this Application introduces no new significant environmental impacts; and WHEREAS, the City's "Local Guidelines for the Implementation of the California Environmental Quality Act (CEQA)" provide for the use of a single environmental assessment in situations where the impacts of subsequent projects are adequately analyzed; and
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WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the City Council the responsibility and authority to review and make recommendations 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
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 (hereinafter referred to as "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 December 18, 2023, the Planning Commission of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and
WHEREAS, on December 19, 2023, 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, IT IS HEREBY FOUND, DETERMINED, AND RESOLVED by the City Council of the City of Ontario, as follows:

SECTION 1: Environmental Determination and Findings. As the recommending authority for the Project, the City Council has reviewed and considered the information contained in the previous Certified EIR and supporting documentation. Based upon the facts and information contained in the previous Certified EIR and supporting documentation, the City Council finds as follows:
(1) The environmental impacts of this Project were previously reviewed in conjunction with File No. PSPA21-005, a Specific Plan Amendment for which a Subsequent Environmental Impact Report (SEIR) (State Clearinghouse No. 2004011009) was adopted by the City Council on November 21, 2023; and
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(2) The previous Certified EIR contains a complete and accurate reporting of the environmental impacts associated with the Project; and
(3) The previous Certified EIR was completed in compliance with CEQA and the Guidelines promulgated thereunder; and
(4) The previous Certified EIR reflects the independent judgment of the City Council; and
(5) The proposed project will introduce no new significant environmental impacts beyond those previously analyzed in the previous Certified EIR, and all mitigation measures previously adopted with the Certified EIR, are incorporated herein by this reference.

SECTION 2: Subsequent or Supplemental Environmental Review Not Required. Based on the information presented to the City Council and the specific findings set forth in Section 1, above, the City Council finds that the preparation of a subsequent or supplemental Certified EIR is not required for the Project, as the Project:
(1) Does not constitute substantial changes to the Certified EIR that will require major revisions to the Certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and
(2) Does not constitute substantial changes with respect to the circumstances under which the Certified EIR was prepared, that will require major revisions to the Certified EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects; and
(3) Does not contain new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the Certified EIR was certified/adopted, that shows any of the following:
(a) The project will have one or more significant effects not discussed in the Certified EIR; or
(b) Significant effects previously examined will be substantially more severe than shown in the Certified EIR; or
(c) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects of the Project, but the City declined to adopt such measures; or
(d) Mitigation measures or alternatives considerably different from those analyzed in the Certified EIR would substantially reduce one or more 1710
significant effects on the environment, but which the City declined to adopt.

SECTION 3: 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 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. The project site is not one of the properties in the Housing Element Sites contained in Tables B-1 and B-2 (Housing Element Sites Inventory) of the Housing Element Technical Report.

SECTION 4: 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.
(1) On April 19, 2011, the City Council of the City of Ontario approved and adopted the Ontario International Airport Land use Compatibility Plan, 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 recommending authority for the Project, the City Council has reviewed and considered the facts and information contained in the Application and supporting documentation against the ONT ALUCP compatibility factors, including [1] Safety Criteria (ONT ALUCP Table 2-2) and Safety Zones (ONT ALUCP Map 2-2), [2] Noise Criteria (ONT ALUCP Table 2-3) and Noise Impact Zones (ONT ALUCP Map 2-3), [3] Airspace protection Zones (ONT ALUCP Map 2-4), and [4] Overflight Notification Zones (ONT ALUCP Map 2-5). As a result, the CITY COUNCIL, therefore, finds and determines that the Project, is will be consistent with the policies and criteria set forth within the ONT ALUCP; and
(2) On August 2, 2022, the City Council of the City of Ontario approved and adopted a Development Code Amendment to establish the Chino Airport ("CNO") Overlay Zoning District ("OZD") and Reference I, Chino Airport Land Use Compatibility Plan ("CNO ALUCP"). The CNO OZD and CNO ALUCP established the Airport Influence Area for Chino Airport, solely within the City of Ontario, and limits future land uses and development within the Airport Influence Area, as they relate to safety, airspace protection, and overflight impacts of current and future airport activity. The CNO ALUCP is consistent with policies and criteria set forth within the Caltrans 2011 California Airport Land Use Planning Handbook. The proposed Project is located within the Airport Influence Area of Chino Airport and was evaluated and found to be consistent with the California Airport 1711
Land Use Planning Handbook and the CNO ALUCP. As the recommending body for the Project, the City Council has reviewed and considered the facts and information contained in the Application and supporting documentation against the CNO ALUCP compatibility factors, including Safety, Airspace Protection, Overflight. As a result, the City Council, therefore, finds and determines that the Project is consistent with the policies and criteria set forth within the California Airport Land Use Planning Handbook and the Chino ALUCP.

SECTION 5: 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 Section 1 through 4, above, the City Council hereby concludes as follows:
(1) The Development Agreement applies to approximately 47.16 acres of land located at the southwest corner of Eucalyptus Avenue and Haven Avenue, within Planning Area 30 Mixed Residential and Planning Area 31 Mixed Residential of the Subarea 29 Specific Plan (File No. PSPA21-005); and (2) The Development Agreement establishes parameters for the development of land within Subarea 29 Specific Plan. The Development Agreement also grants the Applicant, the right to develop, the ability to quantify the fees; and establish the terms and conditions that apply to those projects. These terms and conditions are consistent with The Ontario Plan Policy Plan (General Plan), design guidelines and development standards for the Subarea 29 Specific Plan; and
(3) The Development Agreement grants the Applicant a vested right to develop Tentative Tract Map 20472 (File No. PMTT21-018) as long as the Applicant complies with the terms and conditions of the Subarea 29 Specific Plan and EIR. Tentative Tract Map 20472 is located on the southwest corner of Eucalyptus Avenue and Haven Avenue, within Planning Area 30 (Mixed Residential) and Planning Area 31 (Mixed-Residential) of the Subarea 29 Specific Plan, and proposes to subdivide 47.16 acres of land into 198 numbered lots and 45 lettered lots for residential uses, private drives, parking, landscape edges and common open space purposes; and (4) The Development Agreement has been prepared in conformance with the goals and policies of The Ontario Plan Policy Plan (General Plan); and (5) The Development Agreement does not conflict with the Land Use Policies of The Ontario Plan Policy Plan (General Plan) and will provide for development, within the district, in a manner consistent with the Policy Plan and with related development; and
(6) This Development Agreement will promote the goals and objectives of the Land Use Element of the Policy Plan; and
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(7) This Development Agreement will not be materially injurious or detrimental to the adjacent properties and will not have a significant impact on the environment or the surrounding properties a Specific Plan Amendment for which a Subsequent Environmental Impact Report (SEIR) (State Clearinghouse No. 2004011009) was adopted by the City Council on November 21, 2023.

SECTION 6: City Council Action. Based upon the findings and conclusions set forth in Sections 1 through 5, above, the City Council hereby APPROVES the Development Agreement (File No. PDA21-012), attached hereto as "Attachment A," and incorporated herein by this reference.

SECTION 7: City Manager Administrative Authority. The City Council acknowledges that refinements and further development of the Ontario Ranch development area may demonstrate that changes are appropriate with respect to the details and performance of the parties under the Development Agreement. The City Council desires to retain a certain degree of flexibility with respect to the details of the Ontario Ranch developments, and with respect to those items covered in general terms under the Development Agreement. If and when the City Manager (or designee) and the Developer mutually find that changes, adjustments, or clarifications are appropriate to further the intended purposes of the Development Agreement, and such are not materially inconsistent with the Development Agreement, they may, unless otherwise required by law, effectuate such changes, adjustments, or clarifications by written amendment to this Agreement, or through one or more memoranda which are mutually approved by the City Manager on behalf of the City and by the Developer, and, after execution, shall be attached to the Development Agreement and become a part thereof. Unless otherwise required by law, no such changes, adjustments, or clarifications shall require prior notice or hearing before the City Council. The City Manager, with the approval of the City Attorney, shall have the authority but not the obligation to execute amendments, memoranda or other documents, and may take any action necessary to implement the Development Agreement.

SECTION 8 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 9: 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 10: Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this 1713
Ordinance are severable. The People of the City of Ontario hereby declare that they would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

SECTION 11: Effective Date. This Ordinance shall become effective 30 days following its adoption.

SECTION 12: Publication and Posting. The Mayor shall sign this Ordinance and the City Clerk shall certify as to the adoption and shall cause a summary thereof to be published at least once, in a newspaper of general circulation in the City of Ontario, California within 15 days following the adoption. The City Clerk shall post a certified copy of this ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with Government Code Section 36933.

PASSED, APPROVED, AND ADOPTED this ________ day of _________ 2024. _____________________________________
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 Ordinance No. _______ was duly introduced at a regular meeting of the City Council of the City of Ontario held _____________ and adopted at the regular meeting held ___________, 2024 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
_________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
I hereby certify that the foregoing is the original of Ordinance No. _______ duly passed and adopted by the Ontario City Council at their regular meeting held ____________ and that Summaries of the Ordinance were published on ___________ and _____________, in the Inland Valley Daily Bulletin newspaper.
__________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
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ATTACHMENT A:

FILE NO. PDA21-012

DEVELOPMENT AGREEMENT
By and Between
City of Ontario
a California municipal corporation
and
Richland Meadowland, LTD,
a Texas limited partnership
Strack Farms Land, LLC
a Delaware Limited Liability company
RMD Inland Investors, LLC
a Delaware limited liability company
(Development Agreement to follow this page)
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45774.0021C\7810652.1

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

CITY OF ONTARIO

CITY CLERK / RECORDS MANAGEMENT
303 EAST “B” STREET
ONTARIO, CA 91764-4196
Exempt from Fees Per Gov. Code § 6103
______________________________________________________________________ Space above this line for Recorder’s Use Only
FILE NO. PDA21-012

DEVELOPMENT AGREEMENT
By and Between
City of Ontario
a California municipal corporation
and
Richland Meadowland, LTD,
a Texas limited partnership
Strack Farms Land, LLC
a Delaware Limited Liability company
RMD Inland Investors, LLC
a Delaware limited liability company
_________________________, 2023
San Bernardino County, California
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DEVELOPMENT AGREEMENT NO. PDA21-012
This Development Agreement (hereinafter “Agreement”) is entered into effective as of the ____ day of ____________, 2023 by and among the City of Ontario, a California municipal corporation (hereinafter “CITY”), and Richland Meadowland, LTD , a Texas limited partnership, Strack Farms Land, LLC, a Delaware limited liability company and RMD Inland Investors LLC; a Delaware Limited Liability corporations (collectively hereinafter “OWNER”):

RECITALS
WHEREAS, CITY is authorized to enter into binding development agreements with persons having legal or equitable interests in real property for the development of such property, pursuant to Section 65864, et seq. of the Government Code; and WHEREAS, OWNER has requested CITY to enter into a development agreement and proceedings have been taken in accordance with the rules and regulations of CITY; and
WHEREAS, by electing to enter into this Agreement, CITY shall bind future City Councils of CITY by the obligations specified herein and limit the future exercise of certain governmental and proprietary powers of CITY; and
WHEREAS, the terms and conditions of this Agreement have undergone extensive review by CITY and the City Council and have been found to be fair, just and reasonable; and
WHEREAS, the best interests of the citizens of the CITY and the public health, safety and welfare will be served by entering into this Agreement; and WHEREAS, all of the procedures of the California Environmental Quality Act have been met with respect to the Project and the Agreement in that Subarea 29 Specific Plan (State Clearinghouse No. 2004071001 (the “FEIR”). The City Council found and determined that the FEIR was prepared in accordance with the requirements of the California Environmental Quality Act and adequately describes the impacts of the project described in the FEIR, which included consideration of this Agreement; and WHEREAS, this Agreement and the Project are consistent with the CITY’s Comprehensive General Plan and the Countryside Specific Plan; and WHEREAS, all actions taken and approvals given by CITY have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes, and other procedural matters; and WHEREAS, development of the Property in accordance with this Agreement will provide substantial benefits to CITY and will further important policies and goals of CITY; and
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WHEREAS, this Agreement will eliminate uncertainty in planning and provide for the orderly development of the Property, ensure progressive installation of necessary improvements, provide for public services appropriate to the development of the Project, and generally serve the purposes for which development agreements under Sections 65864 et seq. of the Government Code are intended; and
WHEREAS, OWNER has incurred and will in the future incur substantial costs in excess of the generally applicable requirements in order to assure vesting of legal rights to develop the Property in accordance with this Agreement.

WHEREAS, the Property is located in an area of the City of Ontario that has been known as the “New Model Colony” area and the New Model Colony area has now been renamed as “Ontario Ranch.”
WHEREAS, the property developer/owners are made aware of the South Archibald Trichloroethylene (TCE) Plume Disclosure Letter (Exhibit “G”). Property owner may wish to provide the attached Letter as part of the Real Estate Transfer Disclosure requirements under California Civil Code Section 1102 et seq. This may include notifications in the Covenants, Conditions and Restrictions (CC&Rs) or other documents related to property transfer and disclosures. Additional information on the plume is available from the Santa Ana Regional Water Quality Control Board at http://geotracker.waterboards.ca.gov/profile_report.asp?global_id=T10000004658.

WHEREAS, Owner’s Property is within the boundaries defined in Exhibit A of the Construction Agreement between the CITY and NMC Builders and the Property covered by this Agreement is what is known as a “Phase 2 Water Property” as such, shall be required to provide funding for CITY’s future construction of the “Phase 2 Water Improvements” which will result in the availability of additional Net MDD Water Availability required for the development as shown on Exhibit “I-1”.

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

1. DEFINITIONS AND EXHIBITS.

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

1.1.1 “Agreement” means this Development Agreement.

1.1.2 “CITY” means the City of Ontario, California, a California municipal corporation.
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1.1.3 “Construction Agreement” means that certain Agreement for the Financing and Construction of Phases I and II Infrastructure Improvements to Serve an Easterly Portion of the New Model Colony, entered into between the CITY and NMC Builders as of the 4th day of October, 2005, and all amendments thereto and “Construction Agreement Amendment” means that First Amended and Restated Agreement for the Financing and Construction of Limited Infrastructure Improvements to Serve and Easterly Portion of the New Model Colony entered into between the CITY and NMC Builders as of the 21st day of August 2012.

1.1.4 “Development” means the improvement of the Property for the purposes of completing the structures, improvements and facilities comprising the Project including, but not limited to: grading; the construction of public infrastructure and public facilities related to the Project whether located within or outside the Property; the construction of buildings and structures; and the installation of landscaping. “Development” does not include the maintenance, repair, reconstruction or redevelopment of any building, structure, improvement or facility after the construction and completion thereof.

1.1.5 “Development Approvals” means all permits and other entitlements for use subject to approval or issuance by CITY in connection with development of the Property including, but not limited to:
(a) specific plans and specific plan amendments;
(b) tentative and final subdivision and parcel maps;
(c) development plan review;
(d) conditional use permits (including model home use permits), public use permits and plot plans;
(e) zoning;
(f) grading and building permits.

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

1.1.7 “Development Impact Fee” means a monetary exaction, other than a tax or special assessment, whether characterized as a fee or a tax and whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, and, for purposes of this Agreement only, includes fees collected under development agreements adopted pursuant to Article 2.5 of the Government Code (commencing with Section 65864) of 1720
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Chapter 4, For purposes of this Agreement only, "Development Impact Fee" shall not include processing fees and charges imposed by CITY to cover the estimated actual costs to CITY of processing applications for Development Approvals or for monitoring compliance with any Development Approvals granted or issued, including, without limitation, fees for zoning variances; zoning changes; use permits; building inspections; building permits; filing and processing applications and petitions filed with the local agency formation commission or conducting preliminary proceedings or proceedings under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, Division 3 (commencing with Section 56000) of Title 5 of the Government Code; the processing of maps under the provisions of the Subdivision Map Act, Division 2 (commencing with Section 66410) of Title 7 of the Government Code; or planning services under the authority of Chapter 3 (commencing with Section 65100) of Division 1 of Title 7 of the Government Code, fees and charges as described in Sections 51287, 56383, 57004, 65104, 65456, 65863.7, 65909.5, 66013, 66014, and 66451.2 of the Government Code, Sections 17951, 19132.3, and 19852 of the Health and Safety Code, Section 41901 of the Public Resources Code, and Section 21671.5 of the Public Utilities Code, as such codes may be amended or superceded, including by amendment or replacement.

1.1.8 “Development Plan” means the Existing Development Approvals and the Existing Land Use Regulations applicable to development of the Property.

1.1.9 “Effective Date” means the date that the ordinance approving this Agreement goes into effect.

1.1.10 “Existing Development Approvals” means all Development Approvals approved or issued prior to the Effective Date. Existing Development Approvals includes the Approvals incorporated herein as Exhibit “C” and all other Approvals which are a matter of public record on the Effective Date.

1.1.11 “Existing Land Use Regulations” means all Land Use Regulations in effect on the Effective Date. Existing Land Use Regulations includes the Regulations incorporated herein as Exhibit “D” and all other Land Use Regulations that are in effect and a matter of public record on the Effective Date.

1.1.12 “General Plan” means the General Plan adopted on August 16, 2022.

1.1.13 “Improvement” or “Improvements” means those public improvements required to support the development of the Project as described in the Tract Map conditions for Tract Map No. 20472 as further described in Exhibit “F” (the “Infrastructure Improvements Exhibit”).

1.1.14 “Land Use Regulations” means all ordinances, resolutions, codes, rules, regulations and official policies of CITY governing the development and use of land, including, without limitation, the permitted use of land, the density or intensity of use, subdivision requirements, timing and phasing of development, the maximum height and size of buildings, the provisions for reservation or dedication of land for public purposes, and the design, improvement and construction standards and specifications applicable to 1721
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the development of the Property. “Land Use Regulations” does not include any CITY ordinance, resolution, code, rule, regulation or official policy, governing:
(a) the conduct of businesses, professions, and occupations; (b) taxes and assessments;
(c) the control and abatement of nuisances;
(d) the granting of encroachment permits and the conveyance of similar rights and interests that provide for the use of or the entry upon public property; (e) the exercise of the power of eminent domain.

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

1.1.16 “Net MDD” means net maximum daily water demand.

1.1.17 “NMC Builders” means the consortium of investors and developers responsible for the construction of infrastructure within the New Model Colony incorporated as NMC Builders, LLC.

1.1.18 “Model Units” means a maximum of fifteen (15) model units, private common recreation facilities and sales facilities constructed by OWNER prior to the construction of any Production units and not offered for sale and occupancy for a period of time after the issuance of permits for Production Units.

1.1.19 “OWNER” means the persons and entities listed as owner on page 1 of this Agreement and their permitted successors in interest to all or any part of the Property.

1.1.20 “Phase 2 Water EDUs” means the number of equivalent dwelling units or non-residential square footage assigned to OWNER upon payment to CITY of the Phase 2 Water Participation Fee for the Project and evidenced by the issuance by CITY of a Certificate of Phase 2 Net MDD Availability in the form attached as Exhibit “G”

1.1.21 “Phase 2 Water Improvements” means the water infrastructure Improvements required for the issuance by CITY of the “Water Availability Equivalents” (WAE) for the Project.

1.1.22 “Phase 2 Water Participation Fee” means the fee paid to City upon City approval of the first Development Entitlement for the Project, to fund the Property’s respective share of the projected costs of the design and construction of the Phase 2 Water Improvements by City. The Phase 2 Water Participation Fee shall be the calculated amount of the Regional Water DIF for the Project based upon the number of units, and land use category for residential units or the number of square feet, and land use category for non-residential square footage of the Project.
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1.1.23 “Production Unit(s)” means all units constructed for sale and occupancy by OWNER and excludes the specified number of Model Units constructed by OWNER for promotion of sales.

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

1.1.25 “Property” means the real property described on Exhibit “A” and shown on Exhibit “B” to this Agreement.

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

1.1.27 “Specific Plan” means that certain specific plan adopted by the City Council, and entitled, “Countryside Specific Plan.”

1.1.28 “Storm Water Treatment Capacity Availability” means a designated portion of the total Storm Water Treatment Capacity Availability made available through the completion of construction of a Phase of regional storm water treatment facilities by the NMC Builders LLC as described in the Construction Agreement Amendment. The amount, in acres, of Storm Water Treatment Capacity Availability required for the issuance of a grading permit shall be based upon the factors and assumptions listed in the Construction Agreement Amendment.

1.1.29 “Subsequent Development Approvals” means all Development Approvals required subsequent to the Effective Date in connection with development of the Property.

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

1.1.31“Water Availability Equivalent (WAE)” means a designated portion of the total Net MDD made available through the construction of each Phase described in the Water Phasing Plan of the Construction Agreement. The number of Water Availability Equivalents (of portions thereof) required for the issuance of each building permit shall be based upon water demand factors and assumptions listed in the Construction Agreement and Construction Agreement Amendment as “Water Availability Equivalents by Land Use” for each land use category.

1.1.32 “Amendment to the Construction Agreement” means the amendment to the Construction Agreement modifying the boundaries of the property in Exhibit A of such Construction Agreement to include the Property covered by this Agreement and to provide for the additional funds required for CITY’s future construction of the “Phase 2 Water Improvements” described in a modification to Exhibit C-3 of the Construction Agreement.
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1.2 Exhibits. The following documents are attached to, and by this reference made a part of, this Agreement:

Exhibit “A” — Legal Description of the Property.

Exhibit “B” — Map showing Property and its location.

Exhibit “C” — Existing Development Approvals.

Exhibit “D” — Existing Land Use Regulations.

Exhibit “E” — Description of Required Infrastructure Improvements Exhibit “F” — Depiction of Required Infrastructure Improvements Exhibit(s) Exhibit “G” — Form of Certificate of Net MDD to be issued by CITY Exhibit “H” — Form of Certificate of Regional DIF Credit to be issued by CITY Exhibit “I-1” — Ontario Ranch Water Supply Phasing Plan Exhibit “I-2” — Water Demand Equivalents by Land Use
Exhibit “J” — Form of Plume Disclosure Letter

2. GENERAL PROVISIONS.

2.1 Binding Effect of Agreement. The Property is hereby made subject to this Agreement. Development of the Property is hereby authorized and shall be carried out only in accordance with the terms of this Agreement.

2.2 Ownership of Property. OWNER represents and covenants that it is the owner of the fee simple title to the Property or a portion thereof, or has the right to acquire fee simple title to the Property or a portion thereof from the current owner(s) thereof. To the extent OWNER does not own fee simple title to the Property, OWNER shall obtain written consent from the current fee owner of the Property agreeing to the terms of this Agreement and the recordation thereof.

2.3 Term. The term of this Agreement shall commence on the Effective Date and shall continue for an initial term of ten (10) years thereafter unless this term is modified or extended pursuant to the provisions of this Agreement. The term of this Agreement may be extended for an additional five (5) years following expiration of the initial ten (10) year term, provided the following have occurred:
(a) OWNER provides at least 180 days written notice to CITY prior to expiration of the initial term; and
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(b) In non-mixed use and residential use only projects, the OWNER shall have obtained, as applicable, building permits for at least seventy percent (70%) of the actual number of residential units permitted under this Agreement; and (c) OWNER is not then in uncured default of this Agreement.

2.4 Assignment.

2.4.1 Right to Assign. OWNER shall have the right to sell, transfer or assign the Property in whole or in part (provided that no such partial transfer shall violate the Subdivision Map Act, Government Code Section 66410, et seq.), to any person, partnership, limited liability company, joint venture, firm or corporation at any time during the term of this Agreement; provided, however, that any such sale, transfer or assignment shall include the assignment and assumption of the rights, duties and obligations arising under or from this Agreement and be made in strict compliance with the following:
(a) No sale, transfer or assignment of any right or interest under this Agreement shall be made unless made together with the sale, transfer or assignment of all or a part of the Property. OWNER may be required to provide disclosure that the Property is within the South Archibald Trichloroethylene (TCE) Plume. OWNER may wish to provide the attached Disclosure Letter (Exhibit G) as part of the Real Estate Transfer Disclosure requirements under California Civil Code Section 1102 et seq.(b). Concurrent with any such sale, transfer or assignment, or within fifteen (15) business days thereafter, OWNER shall notify CITY’s City Manager, in writing, of such sale, transfer or assignment and shall provide CITY with: (1) an executed agreement, in a form reasonably acceptable to CITY, by the purchaser, transferee or assignee and providing therein that the purchaser, transferee or assignee expressly and unconditionally assumes all the duties and obligations of OWNER under this Agreement with respect to the portion of the Property so sold, transferred or assigned; and (2) the payment of the applicable processing charge to cover the CITY’s review and consideration of such sale, transfer or assignment.
(c) Any sale, transfer or assignment not made in strict compliance with the foregoing conditions shall constitute a default by OWNER under this Agreement.

Notwithstanding the failure of any purchaser, transferee or assignee to execute the agreement required by Paragraph (b) of this Subsection 2.4.1, the burdens of this Agreement shall be binding upon such purchaser, transferee or assignee, but the benefits of this Agreement shall not inure to such purchaser, transferee or assignee until and unless such agreement is executed. The City Manager shall have the authority to review, consider and either approve, conditionally approve, or deny any proposed sale, transfer or assignment that is not made in compliance with this section 2.4.

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

2.4.3 Effect of Assignment and Release of Obligations. In the event of a sale, transfer, or assignment pursuant to the provisions of Section 2.4.2 above:
(a) The assignee shall be liable for the performance of all obligations of OWNER with respect to transferred property but shall have no obligations with respect to the portions of the Property, if any, not transferred (the “Retained Property”). (b) The owner of the Retained Property shall be liable for the performance of all obligations of OWNER with respect to Retained Property, but shall have no further obligations with respect to the transferred property.
(c) The assignee’s exercise, use and enjoyment of the Property or portion thereof shall be subject to the terms of this Agreement to the same extent as if the assignee were the OWNER.

2.4.4 Subsequent Assignment. Any subsequent sale, transfer or assignment after an initial sale, transfer or assignment shall be made only in accordance with and subject to the terms and conditions of this Section 2.4.

2.4.5 Termination of Agreement with Respect to Individual Lots Upon Sale to Public and Completion of Construction. The provisions of Subsection 2.4.1 shall not apply to the sale or lease (for a period longer than one year) of any lot which has been finally subdivided and is individually (and not in “bulk”) sold or leased to a member of the public or other ultimate user. Notwithstanding any other provisions of this Agreement, this Agreement shall terminate with respect to any lot and such lot shall be released and no longer be subject to this Agreement without the execution or recordation of any further document upon satisfaction of both of the following conditions:
(a) The lot has been finally subdivided and individually (and not in “bulk”) sold or leased (for a period longer than one year) to a member of the public or other ultimate user; and,
(b) A certificate of occupancy has been issued for a building on the lot, and the fees set forth under Section 4 of this Agreement have been paid. 1726
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2.4.6 Partial Assignment and Assumption. CITY and OWNER agree OWNER may partially assign its obligations and rights under this Agreement, and all amendments hereto, to a purchaser, transferee or assignee of a lot, which has been subdivided subject to provisions of a partial assignment and assumption agreement in a form approved by CITY. Any such complete and executed partial assignment and assumption of this Agreement shall be submitted to CITY for approval pursuant to Section

2.4.1 of this Agreement. CITY shall review, and if the above conditions, including but not limited to, those conditions in Section 2.4.2, are satisfied, CITY may approve the partial assignment and release and notify the purchaser, transferee or assignee in writing thereof. No such release approved pursuant to this Subsection 2.4.6 shall cause, or otherwise affect, a release of OWNER from the duties and obligations under this Agreement that are retained by OWNER and excluded from the transfer or assignment.

2.5 Amendment or Cancellation of Agreement. This Agreement may be amended or cancelled in whole or in part only in the manner provided for in Government Code Section 65868.1. Any amendment of this Agreement, which amendment has been requested by OWNER, shall be considered by the CITY only upon the payment of the applicable processing charge. This provision shall not limit any remedy of CITY or OWNER as provided by this Agreement. Either Party or successor in interest, may propose an amendment to or cancellation, in whole or in part, of this Agreement. Any amendment or cancellation shall be by mutual consent of the parties or their successors in interest except as provided otherwise in this Agreement or in Government Code Section 65865.1. For purposes of this section, the term “successor in interest” shall mean any person having a legal or equitable interest in the whole of the Property, or any portion thereof as to which such person wishes to amend or cancel this Agreement. The procedure for proposing and adopting an amendment to, or cancellation of, in whole or in part, this Agreement shall be the same as the procedure for adopting and entering into this Agreement in the first instance. Notwithstanding the foregoing sentence, if the CITY initiates the proposed amendment to, or cancellation of, in whole or in part, this Agreement, CITY shall first give notice to the OWNER of its intention to initiate such proceedings at least sixty (60) days in advance of the giving the public notice of intention to consider the amendment or cancellation.

2.5.1 Amendment to Reflect Consistency With Future Amendments to the Construction Agreement. To the extent any future amendment to the Construction Agreement provides for modifications to rights or obligations that differ from or alter the same or similar rights or obligations contained in this Development Agreement, OWNER reserves the right to request an amendment to the Development Agreement to reflect any or all of such modifications.

2.5.2 Minor Modification. Upon the written application of OWNER, minor modifications and changes to the Development Plan including modifications to building design or footprint (not affecting minimum setbacks), parking layout and design, and landscape area design may be approved by the Director of the Planning Department without the need to amend this Development Agreement. Other changes in the Development Plan shall be processed pursuant to the City Zoning Ordinance. It is also contemplated by CITY and OWNER that OWNER may, from time to time, seek 1727
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amendments to one or more of the Development Approvals. Any such amendments are contemplated by CITY and OWNER as being within the scope of this Agreement as long as they are consistent with the Land Use Regulations and shall, upon approval by CITY, continue to constitute the Development Approvals as referenced herein. The parties agree that any such modifications or amendments shall not constitute an amendment to this Agreement nor require an amendment to this Agreement.

2.6 Termination. This Agreement shall be deemed terminated and of no further effect upon the occurrence of any of the following events:
(a) Expiration of the stated term of this Agreement as set forth in Section

2.3. (b) Entry of a final judgment setting aside, voiding, or annulling the adoption of the ordinance approving this Agreement.
(c) The adoption of a referendum measure overriding or repealing the ordinance approving this Agreement.
(d) Completion of the Project in accordance with the terms of this Agreement including issuance of all required occupancy permits and acceptance by CITY or applicable public agency of all required dedications.

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

2.7 Notices.
(a) As used in this Agreement, “notice” includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. (b) All notices shall be in writing and shall be considered given either: (i) when delivered in person, including, without limitation, by courier, to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below. All notices shall be addressed as follows:

If to CITY:

Scott Ochoa, City Manager
If to OWNER:

Derek Barbour
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City of Ontario”303 East "B" Street
Ontario, CA 91764
Richland Communities
3161 Michelson, Suite 425
Irvine, CA 92612
[email protected]
with a copy to:

Ruben Duran, City Attorney
Best Best & Krieger, LLP
2855 E Guasti Road
Ontario, CA 91761
With a copy to:

Richland Legal Dept.
c/o John Troutman
3161 Michelson, Suite 425
Irvine, CA 92612
[email protected]
(c) Either party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a party or an officer or representative of a party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change.

3. DEVELOPMENT OF THE PROPERTY.

3.1 Rights to Develop. Subject to the terms of this Agreement including the Reservations of Authority, OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the Development Plan. The Project shall remain subject to all Subsequent Development Approvals required to complete the Project as contemplated by the Development Plan. Except as otherwise provided in this Agreement, the permitted uses of the Property, the density and intensity of use, the maximum height and size of proposed buildings, and provisions for reservation and dedication of land for public purposes shall be those set forth in the Development Plan.

3.2 Effect of Agreement on Land Use Regulations. Except as otherwise provided under the terms of this Agreement including the Reservations of Authority, the rules, regulations and official policies governing permitted uses of the Property, the density and intensity of use of the Property, the maximum height and size of proposed buildings, and the design, improvement and construction standards and specifications applicable to development of the Property shall be the Existing Land Use Regulations. In connection with any Subsequent Development Approval, CITY shall exercise discretion in accordance with the same manner as it exercises its discretion under its police powers, including the Reservations of Authority set forth herein; provided however, that such discretion shall not prevent development of the Property for the uses and to the density or intensity of development set forth in this Agreement.

3.3 Timing of Development. The parties acknowledge that OWNER cannot at this time predict when or the rate at which phases of the Property will be developed. Such decisions depend upon numerous factors which are not within the control of OWNER, such as market orientation and demand, interest rates, absorption, completion and other 1729
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similar factors. Since the California Supreme Court held in Pardee Construction Co. v.

City of Camarillo (1984) 37 Ca1. 3d 465, that the failure of the parties therein to provide for the timing of development resulted in a later adopted initiative restricting the timing of development to prevail over such parties’ agreement, it is the parties’ intent to cure that deficiency by acknowledging and providing that OWNER shall have the right to develop the Property in such order and at such rate and at such times as OWNER deems appropriate within the exercise of its subjective business judgment.

3.3.1 Infrastructure Improvement Exhibit. Attached hereto as Exhibit “E” and "F" are a description and depiction, respectively, of the Improvements needed for the development of the Property. In the event of any discrepancy between Exhibit E and Exhibit F, Exhibit F shall control.

3.4 Requirement for Public Infrastructure Improvements. Development of the Property is contingent in part on the phasing of area-wide infrastructure improvements over which the OWNER has control. The issuance of building permits by CITY for Model Units and Production Units is, in general, contingent on OWNER’s completion of needed infrastructure improvements and the availability of improvements and services to serve the Property.

3.4.1 Attached hereto as Exhibit “F” is a depiction of the infrastructure improvements needed for the development of the Property (“the Infrastructure Improvement Exhibit”).

3.4.2 Subject to the prior submittal by OWNER and approval by CITY of a plan to provide sufficient public infrastructure for the construction of a maximum number of fifteen (15) Model Units, private common recreation facilities and sales facilities.

CITY may issue a maximum of fifteen (15) building permits for Model Units, private common recreation facilities and sales facilities. The plan to be submitted by OWNER for CITY approval shall describe the utilities and other infrastructure necessary to provide sufficient fire protection and other public health and safety requirements for the Model Units and other facilities.

3.5 Changes and Amendments. The parties acknowledge that refinement and further development of the Project will require Subsequent Development Approvals and may demonstrate that changes are appropriate and mutually desirable in the Existing Development Approvals. In the event OWNER finds that a change in the Existing Development Approvals is necessary or appropriate, OWNER shall apply for a Subsequent Development Approval to effectuate such change and CITY shall process and act on such application in accordance with the Existing Land Use Regulations, except as otherwise provided by this Agreement including the Reservations of Authority. If approved, any such change in the Existing Development Approvals shall be incorporated herein as an addendum to Exhibit “C” and may be further changed from time to time as provided in this Section. Unless otherwise required by law, as determined in CITY’s reasonable discretion, a change to the Existing Development Approvals shall be deemed “minor” and not require an amendment to this Agreement provided such change does not:
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(a) Alter the permitted uses of the Property as a whole; or, (b) Increase the density or intensity of use of the Property as a whole; or,
(c) Increase the maximum height and size of permitted buildings; or, (d) Delete a requirement for the reservation or dedication of land for public purposes within the Property as a whole; or,
(e) Constitute a project requiring a subsequent or supplemental environmental impact report pursuant to Section 21166 of the Public Resources Code.

3.6 Reservations of Authority.

3.6.1 Limitations, Reservations and Exceptions. Notwithstanding any other provision of this Agreement, the CITY shall not be prevented from applying new rules, regulations and policies upon the OWNER, nor shall a development agreement prevent the CITY from denying or conditionally approving any subsequent development project application on the basis of such new rules, regulations and policies where the new rules, regulations and policies consist of the following:
(a) Processing fees by CITY to cover costs of processing applications for development approvals or for monitoring compliance with any development approvals; (b) Procedural regulations relating to hearing bodies, petitions, applications, notices, findings, records and any other matter of procedure;
(c) Regulations, policies and rules governing engineering and construction standards and specifications applicable to public and private improvements, including all uniform codes adopted by the CITY and any local amendments to those codes adopted by the CITY; provided however that, OWNER shall have a vested right to develop the Property in accordance with, and to the extent of, the standards and specifications that are expressly identified in the Specific Plan;
(d) Regulations that may conflict with this Agreement and the Development Plan but that are reasonably necessary to protect the residents of the project and/or of the immediate community from a condition perilous to their health or safety;
(e) Regulations that do not conflict with those rules, regulations and policies set forth in this Agreement or the Development Plan; 1731
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(f) Regulations that may conflict but to which the OWNER consents.

3.6.2 Subsequent Development Approvals. This Agreement shall not prevent CITY, in acting on Subsequent Development Approvals, from applying Subsequent Land Use Regulations that do not conflict with the Development Plan, nor shall this Agreement prevent CITY from denying or conditionally approving any Subsequent Development Approval on the basis of the Existing Land Use Regulations or any Subsequent Land Use Regulation not in conflict with the Development Plan.

3.6.3 Modification or Suspension by State or Federal Law. In the event that State or Federal laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such State or Federal laws or regulations, provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce.

In the event OWNER alleges that such State or Federal laws or regulations preclude or prevent compliance with one or more provisions of this Agreement, and the CITY does not agree, the OWNER may, at its sole cost and expense, seek declaratory relief (or other similar non-monetary remedies); provided however, that nothing contained in this Section 3.6.3 shall impose on CITY any monetary liability for contesting such declaratory relief (or other similar non-monetary relief).

3.6.4 Intent. The parties acknowledge and agree that CITY is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to CITY all of its police power which cannot be so limited. This Agreement shall be construed, contrary to its stated terms if necessary, to reserve to CITY all such power and authority which cannot be restricted by contract.

3.7 Public Works; Utilities. If OWNER is required by this Agreement to construct any public works facilities which will be dedicated to CITY or any other public agency upon completion, and if required by applicable laws to do so, OWNER shall perform such work in the same manner and subject to the same requirements as would be applicable to CITY or such other public agency should it have undertaken such construction. As a condition of development approval, OWNER shall connect the Project to all utilities necessary to provide adequate water, recycled water, sewer, gas, electric, and other utility service to the Project. As a further condition of development approval, OWNER shall contract with the CITY for CITY-owned or operated utilities for this purpose, for such price and on such terms as may be available to similarly situated customers in the CITY.

3.7.1 OWNER agrees that development of the Project shall require the construction of Storm Drain facilities as described in Exhibit E and depicted in Exhibit F. OWNER shall be responsible for the construction of the necessary 1732
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extension of Storm Drain facilities. OWNER agrees that no building permits shall be issued by CITY for Production Units prior to completion of the storm drain improvements, as described in Exhibit E and depicted in Exhibit F.

3.7.2 OWNER agrees that development of the Project shall require the construction of street improvements as described in Exhibit E and depicted in Exhibit F. OWNER agrees that no building permits shall be issued by CITY for Production Units prior to completion of the street improvements, as described in Exhibit E and depicted in Exhibit F.

3.7.3 OWNER agrees that development of the Property shall require the extension of water and recycled water utility infrastructure as described in Exhibit E and depicted in Exhibit F. OWNER agrees that no building permits shall be issued by CITY for Production Units prior to completion of the water and recycled water Improvements as described in Exhibit E and depicted in Exhibit F. OWNER also agrees that recycled water shall be available and utilized by OWNER for all construction-related water uses including prior to, and during, any grading of the Property.

3.7.4 OWNER agrees that development of the Property shall require the extension of sewer improvements, at OWNER’s sole cost and expense, as described in the attached Exhibit E and depicted in Exhibit F. OWNER agrees that no building permits shall be issued by CITY for Production Units prior to completion of the sewer improvements, as described in Exhibit E and depicted in Exhibit F.

3.7.5 OWNER agrees that development of the Property shall require the extension of fiber optic communications infrastructure, at OWNER’s sole cost and expense, as described in the attached Exhibit E and depicted in Exhibit F.

OWNER agrees that no building permits shall be issued by CITY for Production Units prior to completion of the fiber optic communication improvements, as described in Exhibit E and depicted in Exhibit F.

3.7.6 OWNER shall pay their fair share contribution, for the design and construction of two (2) non-DIF traffic signals at Haven Avenue and Parkview Street (25%), and at Eucalyptus Avenue and “A” Street (50%). OWNER shall provide CITY with the estimated costs of the two (2) non-DIF traffic signal improvements and OWNER shall make such fair share contribution payment to CITY, prior to and as a condition precedent to, CITY’s issuance of the first building permit for Production Units.

3.8 Acquisition of Offsite Provision of Real Property Interests. In any instance where OWNER is required by any Development Approval or Land Use Regulation and the Construction Agreement to construct any public improvement on land not owned by OWNER (“Offsite Improvements”), the CITY and OWNER shall cooperate in acquiring the necessary legal interest (“Offsite Property”) in accordance with the procedures set forth in Section 2.4 of the Construction Agreement. This section 3.8 is not intended by the parties to impose upon the OWNER an enforceable duty to acquire land or construct 1733
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any public improvements on land not owned by OWNER, except to the extent that the OWNER elects to proceed with the development of the Project, and then only in accordance with valid conditions imposed by the CITY upon the development of the Project under the Subdivision Map Act or other legal authority.

3.8.1 CITY Acquisition of Non-Construction Agreement Offsite Property. In the event OWNER is required to construct any public improvements on land not owned by OWNER, but such requirement is not based upon the Construction Agreement, Sections 3.8.1 and 3.8.2 shall control the acquisition of the necessary property interest(s) (“Non-Construction Agreement Offsite Property”). If the OWNER is unable to acquire such Non-Construction Agreement Offsite Property, and following the written request from the OWNER to CITY, CITY agrees to use reasonable and diligent good faith efforts to acquire the Non-Construction Agreement Offsite Property from the owner or owners of record by negotiation to the extent permitted by law and consistent with this Agreement. If CITY is unable to acquire the Non-Construction Agreement Offsite Property by negotiation within thirty (30) days after OWNER’S written request, CITY shall, initiate proceedings utilizing its power of eminent domain to acquire that Non-Construction Agreement Subject Property at a public hearing noticed and conducted in accordance with California Code of Civil Procedure Section 1245.235 for the purpose of considering the adoption of a resolution of necessity concerning the Non-Construction Agreement Offsite Property, subject to the conditions set forth in this Section 3.8.

The CITY and OWNER acknowledge that the timelines set forth in this Section

3.8.1 represent the maximum time periods which CITY and OWNER reasonably believe will be necessary to complete the acquisition of any Non-Construction Agreement Offsite Property. CITY agrees to use reasonable good faith efforts to complete the actions described within lesser time periods, to the extent that it is reasonably able to do so, consistent with the legal constraints imposed upon CITY.

3.8.2 Owner’s Option to Terminate Proceedings. CITY shall provide written notice to OWNER no later than fifteen (15) days prior to making an offer to the owner of the Non-Construction Agreement Offsite Property. At any time within that fifteen (15) day period, OWNER may, at its option, notify CITY that it wants CITY to cease all acquisition proceedings with respect to that Non-Construction Agreement Offsite Property, whereupon CITY shall cease such proceedings. CITY shall provide written notice to OWNER no later than fifteen (15) days prior to the date of the hearing on CITY’S intent to consider the adoption of a resolution of necessity as to any Non-Construction Agreement Offsite Property. At any time within that fifteen (15) day period, OWNER may, at its option, notify CITY that it wants CITY to cease condemnation proceedings, whereupon CITY shall cease such proceedings. If OWNER does not notify CITY to cease condemnation proceedings within said fifteen (15) day period, then the CITY may proceed to consider and act upon the Non-Construction Agreement Offsite Property resolution of necessity. If CITY adopts such resolution of necessity, then CITY shall diligently institute condemnation proceedings and file a complaint in condemnation and seek an order of immediate possession with respect to the Non-Construction Agreement Offsite Property.
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3.9 Regulation by Other Public Agencies. It is acknowledged by the parties that other public agencies not within the control of CITY possess authority to regulate aspects of the development of the Property separately from or jointly with CITY and this Agreement does not limit the authority of such other public agencies. CITY agrees to cooperate fully, at no cost to CITY, with OWNER in obtaining any required permits or compliance with the regulations of other public agencies provided such cooperation is not in conflict with any laws, regulations or policies of the CITY.

3.10 Tentative Tract Maps; Extension. With respect to applications by OWNER for tentative subdivision maps for portions of the Property, CITY agrees that OWNER may file and process tentative maps in accordance with Chapter 4.5 (commencing with Section 66498.1) of Division 2 of Title 7 of the California Government Code and the applicable provisions of CITY’s subdivision ordinance, as the same may be amended from time to time. In accordance with the provisions of Section 66452.6 of the Government Code, each tentative subdivision map or tentative parcel map, heretofore or hereafter approved in connection with development of the Property, shall be deemed to have been granted an extension of time to and until the date that is five (5) years following the Effective Date of this Agreement.; The CITY’s City Council may, in its discretion, extend any such map for an additional period of up to five (5) years beyond its original term, so long as the subdivider files a written request for an extension with the City prior to the expiration of the initial five (5) year term.

4. PUBLIC BENEFITS.

4.1 Intent. The parties acknowledge and agree that development of the Property will result in substantial public needs that will not be fully met by the Development Plan and further acknowledge and agree that this Agreement confers substantial private benefits on OWNER that should be balanced by commensurate public benefits. Accordingly, the parties intend to provide consideration to the public to balance the private benefits conferred on OWNER by providing more fully for the satisfaction of the public needs resulting from the Project.

4.2 Development Impact Fees.

4.2.1 Amount of Development Impact Fee. Development Impact Fees (DIF) shall be paid by OWNER. The Development Impact Fee amounts to be paid by OWNER shall be the amounts that are in effect at the time such amounts are due. Nothing contained in this Agreement shall affect the ability of the CITY to impose new Development Impact Fees or amend the amounts of existing Development Impact Fees. Additionally, nothing contained in this Agreement shall affect the ability of other public agencies that are not controlled by CITY to impose and amend, from time to time, Development Impact Fees established or imposed by such other public agencies, even though such Development Impact Fees may be collected by CITY.
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4.2.2 Time of Payment. The Development Impact Fees required pursuant to Subsection 4.2.1 shall be paid to CITY prior to the issuance of building permit for each applicable residential or other unit, except for the Open Space and Habitat Acquisition Development Impact fee, which shall be paid by OWNER to CITY prior to the issuance of a grading permit. Deferral of the payment of Development Impact Fees may be granted pursuant to a separate agreement approved by City pursuant to City policy.

4.2.3 Parkland and Quimby Act Fees. Pursuant to the General Plan (Ontario Plan) Goal PR1, Policy PR1-5 (achievement of a park standard of 5 acres of parkland per 1,000 residents) OWNER shall provide improved parks, developed in accordance with the City’s park standards in an amount equal to two (2) acres per 1,000 of projected population without credit, reimbursement, offset or consideration from City. Such areas shall either be dedicated to the City or transferred to a homeowners’ association. If approved by the City Manager, OWNER may satisfy this requirement through the development of non-public recreation facilities such as private recreational clubhouses or pool facilities.

Credit for such private recreational facilities areas shall be limited to a maximum of 50% of the foregoing park development requirement. If OWNER’s Project does not provide dedicated and developed park acreage equal to two (2) acres per 1,000 projected population, OWNER shall pay a fee in-lieu equal to the per acre estimated costs of acquisition and development of parkland in the City’s Development Impact Fee for the calculated park acreage deficiency. Such in-lieu fee shall be due and payable prior to the issuance of the first building permit for Production Units issued to OWNER. Any park dedication and/or improvements in excess of such two (2) acres per thousand standard, provided such park has been developed in accordance with the City’s park standards and is open to the public generally, shall entitle OWNER to a credit toward its obligations under the Quimby Act (Gov. Code, § 64477) and the City’s implementing ordinance and/or resolution (collectively “Quimby Act Obligations”), and to the extent OWNER’s Quimby Act Obligations are satisfied, OWNER shall be entitled to have the City acquire such developed and publicly available parks as Non-Program Interests in accordance with Section 4.3.3 below.

4.2.4 Parkland Required and Provided. Tract Map No. 20472 includes one hundred ninety-six (196) single-family detached units and one hundred fifty- four (154) multiple family attached units requiring 2.54 acres of improved park per Section 4.2.3 above. Tract Map No. 20472 provides 2.54 acres of improved park satisfying the CITY’s park standards.

4.3 Responsibility for Construction of Public Improvements.

4.3.1 Timely Construction of Public Infrastructure. The phasing of the areawide infrastructure construction within the New Model Colony will be as approved by the CITY. OWNER shall be responsible for the timely construction and completion of all public infrastructure required for the Project as shown on the attached Exhibit “F” and any and all tentative tract map conditions. Unless 1736
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otherwise specified in the Subdivision Agreement/Tract Map conditions, all other required Improvements for each Tract Map, shall be completed and operational prior to, and as a condition precedent to, OWNER requesting and CITY’s granting of the first building permit for production units for each such Tract Map. All Infrastructure and Improvements shall be completed as required by the Subdivision Agreement/Tract Map conditions for Tract No. 20472.

4.3.2 Construction of DIF Program Infrastructure (Construction Agreement). To the extent OWNER is required to construct and completes construction of public improvements that are included in CITY’s Development Impact Fee Program and the Construction Agreement between CITY and NMC Builders LLC, CITY agrees that CITY shall issue DIF Credit in accordance with the provisions of the Construction Agreement and any amendments thereto. Use of DIF Credit issued to OWNER as a member of NMC Builders LLC to offset OWNER’s DIF payment obligations shall also be subject to the provisions of the Construction Agreement and any amendments thereto.

4.3.3 Construction of DIF Program Infrastructure (Non-Construction Agreement).

To the extent OWNER is required to construct and completes construction of public improvements that are included in CITY’s Development Impact Fee Program and such public improvements are not included the Construction Agreement between CITY and NMC Builders LLC, CITY agrees that CITY shall issue DIF Credit in accordance with the provisions of a separate Fee Credit Agreement between CITY and OWNER. Limitation on the use of DIF Credit issued to OWNER to offset OWNER’s DIF payment obligations shall also be subject to the provisions of a separate Fee Credit Agreement. CITY and OWNER agree that the Fee Credit Agreement between CITY and OWNER shall comply with CITY’s adopted policies applicable to such agreements.

4.3.4 Construction of Public Infrastructure by Third Parties. CITY and OWNER acknowledge that a portion of the Improvements described in Exhibit E and depicted in Exhibit F are necessary for the development of surrounding properties within the Ontario Ranch and the other property owners are also obligated to construct the Improvements or portions thereof. As such, CITY agrees that OWNER's obligation to construct the Improvements may be satisfied by third party owners pursuant to separate written agreements between OWNER and said third party undertaking the construction of the Improvements. Nothing in this Agreement shall be construed to prohibit the coordination of the construction of the Improvements between private parties, including the allocation of costs for the construction of the Improvements. Notwithstanding anything to the contrary herein, any applicable DIF Credits may be transferred and assigned from one (1) party to another with respect to the construction of the Improvements and such transfer or assignment shall not require the conveyance of any real property.

Additionally, OWNER and CITY agree that a portion of the improvements described in Exhibit E and depicted in Exhibit F, may be constructed by others. If such improvements are constructed by others and are completed and accepted by CITY prior to OWNER's request to CITY for the required grading, building or other 1737
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required permits for OWNER to initiate construction of structures for the Property, then OWNER shall not be required to construct or pay for those Improvements constructed and completed by others and accepted by CITY.

4.4 Affordable Housing Requirement.

4.4.1 Affordable Housing- Number of Units. OWNER shall provide a minimum number of affordable housing units, equivalent to 10% of the OWNER’s total approved residential units within the Project, that are affordable to very low, low and moderate income households. Such requirement for affordable housing shall be met through one, or a combination of one or more, of the options provided in the following Sections 4.3.2.1 through 4.3.2.1. For the purposes of this Section, any term not defined in this Agreement shall be as defined by California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.).

4.4.2 Affordability Spread. Of the total number of residential dwelling units specified in Section 4.4.1, to be constructed or rehabilitated pursuant to Sections

4.4.2.1 or 4.4.2.2 respectively, thirty percent (30%) shall be available to very low income, thirty percent (30%) shall be available to low income and forty percent (40%) shall be available to moderate income households. “Households” shall be as defined by California Health and Safety Code Section 50053.

4.4.2.1 New Construction. If OWNER elects to fully or partially satisfy the affordable housing requirement by the construction of new residential units, it shall construct and restrict the affordability of residential dwelling units within its Project or, at OWNER’s option and with the approval of the City, within another project elsewhere within the City. The affordable units constructed shall be intermingled with other units as part of the Project, and shall be built to the same construction, design and aesthetic standards, as well as number of rooms, as other units constructed as part of that OWNER’s Project. In addition, the percentage ratio of affordable units offered for sale versus those offered for rent shall equal the percentage ratio of other units offered for sale versus for rent within OWNER’s Project. Such construction shall be completed no later than the date that is five (5) years following the issuance of the first building permit for OWNER’s Project; provided however that to the extent OWNER has not constructed the required percentage of units, based on the number of building permits for non-restricted units, OWNER shall, prior to the issuance of such building permits, provide security (in the form and substance approved by the City Manager and City Attorney) to City in order to ensure the faithful completion of such required percentage of construction of affordable units. If OWNER elects the option of constructing new affordable units, a detailed Affordable Housing Agreement specifying terms for the allowable monthly housing costs or rents (as applicable) and maintenance and occupancy standards shall be prepared, executed and recorded against such units as a condition to the issuance of a building permit. The Affordable Housing Agreement shall hold a recorded 1738
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priority position senior to any other non-statutory lien or encumbrance affecting the unit.

4.4.2.2 Rehabilitation. If OWNER elects to fully or partially satisfy the affordable housing requirement by the substantial rehabilitation of existing residential units in the City, it shall substantially rehabilitate and restrict the affordability of, the number of residential units specified in Section 4.4.1, provided that such units shall be provided elsewhere within the City. The rehabilitation work shall be substantial and of high quality and shall also address any deferred property maintenance issues on the property. “Substantial rehabilitation ” shall mean rehabilitated multi-family rented dwelling units with three or more units and the value of the rehabilitation constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of land value pursuant to Health and Safety Code Section 33413(b)(2)(A)(iii-iv) as such section exists as of the Effective Date of this Agreement. If OWNER chooses the option of rehabilitation of existing housing units within the City, a detailed Affordable Housing Agreement specifying the terms for the allowable month housing costs or rents (as applicable) and maintenance and occupancy standards shall be prepared, executed and recorded against such units as a condition to the issuance of a building permit. Such rehabilitation shall be completed no later than the date that is five (5) years following the issuance of the first building permit for OWNER’s Project; provided however that to the extent OWNER has not rehabilitated the required percentage of units, based on the number of building permits, OWNER shall, prior to the issuance of such building permits, provide security (in the form and substance approved by the City Manager and City Attorney) to the City in order to ensure the faithful completion of such required percentage of rehabilitation.

4.4.2.3 In-Lieu Fee. If OWNER has not fully complied with the requirements of Section 4.4.1 by providing the minimum number of affordable units through the construction of new affordable units or by the substantial rehabilitation of existing units, shall pay an “Affordability In-Lieu Fee”. If OWNER has not provided any affordable residential units by construction or rehabilitation, the Affordability In-Lieu fee shall be equal to Three Dollars Twenty Four Cents ($3.24) per square foot of residential development within OWNER’s Project or, if pre-paid as set forth below, Two Dollars Eighty Five Cents ($2.85) per square foot of residential development within OWNER’s Project. If OWNER has partially complied with the requirements of Section 4.4.1 by construction or rehabilitation of less than the minimum number of units, then the Affordability In-lieu Fee shall be recalculated and reduced in consideration of the number and type of affordable units provided. The Affordability In-Lieu Fee shall be paid by OWNER to City no later than prior to the issuance of each building permit within OWNER’s Project based on the square footage of the residential unit for which such building permit is sought; provided however that OWNER may, at OWNER’s election, pre-pay such Affordability In-Lieu Fee by paying 1739
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such Affordability In-Lieu Fee within thirty (30) days following the earliest discretionary approval by the City for OWNER’s Project, including, but not limited to, any general plan amendment, specific plan adoption, development agreement, tentative map approval, variance, conditional use permit, or resolution of intention to form any public financing mechanism. The Three Dollars Twenty Four Cents ($3.24) and the Two Dollars Eighty Five Cents ($2.85) per square foot amounts shall automatically be increased annually, commencing on July 1, 2024, and automatically each July 1 thereafter. Such adjustment shall be based on the percentage increase (but no decrease) in the Consumer Price Index (Riverside - San Bernardino - Ontario, CA), (December 2017=100) over the preceding year. The pre-paid Affordability In-Lieu Fee shall be calculated based on the maximum floor area ratio (FAR) permitted within the General Plan and any applicable FAR contained within the applicable specific plan, whichever is greater, and the Maximum Development Density. For purposes of this Agreement, “ Maximum Development Density” shall be determined by multiplying the OWNER’s Project’s density for residential development potential as set forth in the General Plan or the applicable Specific Plan, whichever is less, by the net acreage of land within OWNER’s Project. All “Affordability In-Lieu Fees” collected by the City shall be used to promote the construction of affordable housing within the City.

4.4.2.4 Affordability Covenants. Prior to the issuance of the first building permit for any affordable unit, the City and OWNER shall enter into an Affordable Housing Agreement Affordability shall be assured for a period of forty-five (45) years for for-sale units and fifty-five (55) years for rentals. For rental units, base rents shall be established by the City and rental adjustments required by the City shall be performed on an annual basis. In addition, the Affordable Housing Agreement shall impose maximum occupancy limits of 2 occupants per bedroom plus 1 additional occupant per dwelling unit, and a requirement for the owner or tenant to properly maintain each dwelling unit.

4.4.2.5 Transfer of Affordable Project. No transfer of title to any affordable housing project shall occur without the prior written consent of the City. In the event OWNER transfers title to any affordable housing project required to be constructed pursuant to this Agreement to a non-profit entity, or other entity, that receives an exemption from ad valorem real property taxes, the City shall be required to assure payment of an annual in lieu fee to the City on July 1 of each year equal to one-tenth of one percent (0.1%) of the assessed value of such project. The City may permit OWNER to satisfy this obligation by recorded covenants against the property and enforceable against said entity by the City. Any such covenants shall be approved by the Planning Director and the City Attorney.

4.5 Schools Obligations.
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4.5.1 Written Evidence of Compliance with Schools Obligations.

OWNER shall, either through joint or individual agreements between OWNER and the applicable school district(s), shall satisfy its new school obligations. The new school obligations for the Mountain View School District in the Ontario Ranch area have been projected to include the acquisition or dedication of school sites for, and construction of, up to eight (8) schools. Of these eight (8) schools, six (6) are to be elementary (K-5) grade schools and two (2) are to be middle grade schools. The new school obligations for the Chaffey Joint Union High School District in the Ontario Ranch area have been projected to include the dedication of a school site for, and construction of, an additional high school. The new school obligations for the applicable school district shall be met by a combination of the following: (1) designating and dedicating school site(s) within the Property as set forth in the General Plan, and/or (2) paying school impact fees, (3) entering into a joint mitigation agreement or individual mitigation agreements, or (4) any combination of the foregoing. Written evidence of approval by the applicable school district that OWNER has met their school obligations may be required by the City as the condition to the issuance by the City of any entitlements for OWNER’s Project. In the event OWNER is unable to provide such written evidence from the applicable school district(s), the City shall have the right to decline to honor any DIF Credit, Certificates of MDD Availability, Certificates of Storm Water Treatment Capacity Availability, or any combination thereof, presented by such OWNER, without liability to the City. To the extent that a joint mitigation agreement is approved by the applicable school district(s), and OWNER is a participant in good standing in such mitigation agreement, OWNER shall be deemed to have mitigated its new school obligations under this Section 4.4.1.

4.6 Public Services Funding Fee.

4.6.1 Requirement for Payment of Public Services Funding Fee. In order to ensure that the adequate provision of public services, including without limitation, police, fire and other public safety services, are available to the residents of each Project in a timely manner, OWNER shall pay to CITY a “Public Services Funding Fee.” The Public Services Funding Fee shall apply to residential and non- residential uses as set forth below.

4.6.2 Public Services Funding Fee Amount. OWNER shall pay a Public Services Funding fee in the total amount of Two Thousand Four Hundred Ninety dollars and Seventy Eight cents ($2,490.78) per residential dwelling unit. The Public Services Funding Fee shall be paid in one (1) installment within one hundred eighty (180) calendar days after the effective date of the Development Agreement or in two (2) installments, at OWNER’s option, as follows:

4.6.2.1 First Installment (Residential uses). The First Installment of the Public Services Funding Fee shall be One Thousand Two Hundred Forty Five Dollars and Thirty Nine Cents ($1,245.39) per residential dwelling unit.

The First Installment shall be based upon the “ Maximum Development Density” of the OWNER Project, as defined in Section 3.7.2.3 of the First 1741
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Amended and Restated Construction Agreement. The First Installment shall be due and payable 30 days following the Effective Date of this Agreement.

If the First installment amount is not paid for all residential dwelling units within the Project (based on the Maximum Development Density, or the number of units described on “B Maps” if approved) by January 1, 2024, the amount of the First Installment shall be increased. Such increase shall be based on the percentage increase (but no decrease) in the Consumer Price Index (Riverside - San Bernardino - Ontario, CA) (December 2017=100) over the preceding year. Additionally, the amount shall be further increased automatically by the percentage increase in the Consumer Price Index (Riverside - San Bernardino - Ontario, CA) (December 2017=100) on each January 1 thereafter.

4.6.2.2 Second Installment (Residential Uses). The Second Installment of the Public Services Funding Fee shall be One Thousand One Hundred Fifty Eight dollars and Fifty cents ($1,245.39) per residential unit. The Second Installment shall be paid at the time of the issuance of each building permit for the Project. The amount of the Second Installment shall increase automatically by percentage increase (but no decrease) in the Consumer Price Index (Riverside - San Bernardino - Ontario, CA) (December 2017=100) over the preceding year on January 1 st of each year, beginning on January 1, 2024. OWNER may exercise the option to pay the Second Installment amount for all residential units, a portion of the residential units, or for the remainder of the residential units within OWNER’s Project on or before each December 31st, before the Second Installment amount is automatically increased.

4.6.2.3 Single Installment (Non-residential Uses). A single installment payment of the Public Services Funding Fee shall be required in the amount of Seventy Five Cents ($.75) per square foot of non-residential buildings.

The single installment for non-residential uses shall be due and payable prior to the issuance of the building permit for a non-residential building. The amount of the Single Installment for non-residential uses shall automatically increase by percentage increase (but no decrease) in the Consumer Price Index (Riverside - San Bernardino - Ontario, CA), (December 2017=100) over the preceding year on January 1 st of each year, beginning on January 1, 2024. OWNER may exercise the option to pay any single installment amounts for the remainder of the non-residential square footage within the Project on or before December 31st, before the Single Installment amount is automatically increased.

4.7 Net MDD/Water Availability Equivalents.

4.7.1 Assigned Net MDD/Water Availability Equivalents. The City has agreed with NMC Builders LLC to reserve exclusively for Members of NMC Builders, including OWNER, Net MDD made available through the construction of water system 1742
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improvements funded by NMC Builders LLC. NMC Builders has assigned to OWNER its allocable share of the Net MDD issued by City. The provisions of the Construction Agreement Amendment requires that the City shall not approval a final tract map or issue building permits or certificates of occupancy for the area of development within the New Model Colony served by the water system improvements funded by NMC Builders LLC, except to the bearer of an Assignment of Net MDD Water Availability.

4.7.2 Requirement of NMC Builders, LLC Membership as a Phase 2 Water Member. OWNER and CITY agree that OWNER’s’ payment to CITY required by Section 4.7.3 below represents OWNER’s contribution to the funding required for the future construction of the Phase 2 Water Improvements and the availability of additional Net MDD Water Availability required for the development of the Property described in Exhibit A of this Agreement.

4.7.3 CITY issuance of Water Availability Equivalents. Within 30 days after the effectiveness of this Development Agreement OWNER shall pay or have paid to City the applicable Phase 2 Water Participation Fee. The Phase 2 Water Participation Fee shall be the calculated based on the amount of the Regional Water DIF for the applicable land use category and the square footage of the applicable buildings. The calculated amount of the Phase 2 Water Participation Fee shall be paid to City within 30 days after the effective date of this Agreement or, at OWNER’s option, the Phase 2 Water Participation Fee may be paid to City in two (2) installments. The first installment shall be fifty percent (50%) of the total Phase 2 Water Participation Fee and such first installment shall be due and payable to City within 30 days after the effective date of this Development Agreement. The second installment shall be the remaining amount of the Phase 2 Water Participation Fee and such second installment shall be due and payable to City within one (1) year after the payment of the first installment, or prior to, and as a condition precedent to, the recording of any final Tract or Parcel Map for the Project, whichever occurs first. Upon OWNER’s complete payment to CITY of the Phase 2 Water Participation Fee CITY shall issue a Certificate of Water Availability Equivalents in the form attached hereto as Exhibit G. Such Water Availability Equivalents Certificate shall be issued by CITY within thirty (30) days of the receipt of such required payment. CITY and OWNER agree that the amount of Water Availability Equivalents issued to OWNER shall be based on the maximum projected need for Water Availability Equivalents required for the Property based upon water demand factors and assumptions listed in Exhibit C- 2R of the Phase 2 Water Amendment to the Construction Agreement “Water Demand Equivalents by Land Use” for each land use category. Additionally, within five (5) business days of CITY’s receipt of OWNER’s payment as required under this Section 4.7.3, CITY shall issue a certificate of DIF Credit against OWNER’s DIF obligations in the Regional Water DIF Category.

4.7.4 Effectiveness of Agreement. CITY acknowledges that the OWNER is a current “Member” of NMC Builders LLC. OWNER’s assignees shall not be required to become a member of NMC. Notwithstanding anything set forth in this 1743
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Agreement, CITY and OWNER each acknowledge, confirm, and agree that (i) the CITY approval of this Agreement and (ii) the effectiveness of this Agreement, in each case, are conditioned upon OWNER’s admission to NMC Builders as a “Member” (if not already a Member) thereof pursuant to the terms and conditions of the operating agreement of NMC Builders within 30 days following the Effective Date of this Agreement. OWNER’S failure to maintain membership in NMC Builders LLC is and shall be a Default under this Agreement.

4.8 Storm Water Capacity Availability.

4.8.1 Requirement for Storm Water Treatment Capacity Availability. OWNER shall provide evidence of sufficient Storm Water Treatment Capacity Availability as reserved in a Certificate of Storm Water Treatment Capacity Availability the same manner and subject to the same limitations as provided for the assignment of Certificates of Net MDD Availability in Section 4.6 of this Agreement.

4.8.2 Use of Storm Water Treatment Capacity Availability. The amount of Storm Water Treatment Capacity Availability required for the issuance of a grading permit to OWNER shall be based upon the Net Residential Acreage of the area to be graded regardless of the corresponding use.

4.8.3 Requirement for other Storm Water Improvements. The Certificate of Storm Water Treatment Capacity Availability is evidence only of available storm water treatment capacity and does not satisfy any other conditions applicable to a particular development project, including those relating to on-site water treatment, water quality, connection to the storm water collection system, or other public infrastructure requirements.

4.9 Maintenance of Open Space. OWNER shall provide for the ongoing maintenance of all park, common areas and open space areas within the Project as more particularly set forth in the Specific Plan, through a homeowners’ association as approved by the CITY. Covenants, conditions and restrictions establishing any homeowners’ association shall be approved by the Planning Director and City Attorney.

4.10 Compliance with Public Benefits Requirements.

4.10.1 Failure to Provide Public Benefits. In the event OWNER fails or refuses to comply with any condition referenced in Section 4.1 through 4.9, or challenges (whether administratively or through legal proceedings) the imposition of such conditions, OWNER shall be deemed in default of this Agreement pursuant to Section 8.4 hereof, thereby entitling the City to any and all remedies available to it, including, without limitation, the right of the City to withhold OWNER’s Project- related building permits, certificates of occupancy, or discretionary approvals, without liability.

5. FINANCING OF PUBLIC IMPROVEMENTS.
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5.1 Financing Mechanism(s). In accordance with the Memorandum of Agreement between the CITY and NMC Builders, CITY will cooperate with OWNER in the formation of a CFD, or CFDs, to include all of the Project, to provide a financing mechanism to reimburse the OWNER for funds paid to NMC Builders LLC for OWNER’s share of the costs of public infrastructure pursuant to the Construction Agreement and to acquire other public facilities constructed by OWNER subject to the provisions of the Memorandum of Agreement between CITY and NMC Builders LLC. Notwithstanding such reimbursements and acquisitions, OWNER shall remain entitled to DIF Credits as provided for in Article 3 of the Construction Agreement and/or as provided for in a separate Fee Credit Agreement between CITY and OWNER. OWNER agrees that, prior to the recordation of any Tract Map for the Property, the Property shall be included in a CFD to finance City services through annual special taxes that will initially be $1,443.71 per Single Family Detached Dwelling Unit, $1,251.15 per Multiple-Family Dwelling Unit, $1,049.96 per Gated Apartment Community Dwelling Unit, and $0.27 per square foot for Non-Residential buildings as of the date of this agreement. The special tax amount shall be subject to change based on the services tax rate that is in effect at the time such CFD is formed. These amounts shall be subject to an automatic increase at a rate not to exceed four (4%) percent per year unless otherwise modified by the City. Depending on the fiscal year that the CFD is formed and the CFD tax is levied, the annual special taxes may be higher. CITY shall be the sole and exclusive lead agency in the formation of any CFD, assessment district or other public financing mechanism within the Property; provided however, that the proceeds of any such CFD, assessment district, or financing mechanism may be used, subject to restrictions that may be imposed by applicable law, for the purposes of acquiring, constructing or maintaining public facilities to be owned or operated by other public agencies, including, without limitation those facilities owned or operated by a school district. In addition to the rights of the CITY pursuant to section 5.2 hereof, CITY shall have the right, but not the obligation, to condition the formation of any CFD, assessment district or other public financing mechanism within the Property on the OWNER mitigating all Project-related impacts to the applicable school district(s) as required by such school district(s). Written evidence by such school district(s) may be required by the CITY as the condition to the formation of any CFD, assessment district or other public financing mechanism within the Property, or any steps preliminary thereto, including, without limitation, the adoption of any resolution of intention to form such CFD, assessment district or other public financing mechanism within the Property. It is not the intent of the parties hereto, by this provision, to prohibit or otherwise limit the City’s ability to take any and all necessary steps requisite to the formation of the CFD to finance City services through annual special taxes as set forth in this Section 5.1. Formation of any CFD, assessment district or other public financing mechanism within the Property, shall be subject to CITY’s ability to make all findings required by applicable law and complying with all applicable legal procedures and requirements including, without limitation, CITY’s public financing district policies as such policies may be amended from time to time.

Notwithstanding the foregoing, it is acknowledged and agreed by the parties that nothing contained in this Agreement shall be construed as requiring CITY or the City Council to form any such district or to issue and sell bonds.

6. REVIEW FOR COMPLIANCE.
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6.1 Periodic and Special Reviews.

6.1.1 Time for and Initiation of Periodic Review. The CITY shall review this Agreement every twelve (12) months from the Effective Date in order to ascertain the good faith compliance by the OWNER with the terms of this Agreement. The OWNER shall submit an Annual Monitoring Report to CITY, in a form acceptable to the City Manager, along with any applicable processing charge within ten (10) days after each anniversary date of the Effective Date of this Agreement. Within fifteen (15) days after the receipt of the Annual Monitoring Report, CITY shall review the Annual Monitoring Report. Prior to the expiration of the fifteen (15) day review period, CITY shall either issue a notice of continuing compliance or a notice of non-compliance and a notice of CITY’s intent to conduct a Special Review pursuant to Sections 6.1.2 through 6.1.6. Issuance of a notice of continuing compliance may be issued by the City Manager or his designee.

6.1.2 Initiation of Special Review. A special review may be called either by agreement between the parties or by initiation in one or more of the following ways:
(1) Recommendation of the Planning staff;
(2) Affirmative vote of at least four (4) members of the Planning Commission; or
(3) Affirmative vote of at least three (3) members of the City Council.

6.1.3 Notice of Special Review. The City Manager shall begin the special review proceeding by giving notice that the CITY intends to undertake a special review of this Agreement to the OWNER. Such notice shall be given at least ten (10) days in advance of the time at which the matter will be considered by the Planning Commission.

6.1.4 Public Hearing. The Planning Commission shall conduct a hearing at which the OWNER must demonstrate good faith compliance with the terms of this Agreement. The burden of proof on this issue is upon the OWNER.

6.1.5 Findings Upon Public Hearing. The Planning Commission shall determine upon the basis of substantial evidence whether or not the OWNER has, for the period under review, complied in good faith with the terms and conditions of this Agreement.

6.1.6 Procedure Upon Findings.
(a) If the Planning Commission finds and determines on the basis of substantial evidence that the OWNER has complied in good faith with the terms and conditions of this Agreement during the period under review, the review for that period is concluded.
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(b) If the Planning Commission finds and determines on the basis of substantial evidence that the OWNER has not complied in good faith with the terms and conditions of this Agreement during the period under review, the Planning Commission may recommend to the City Council to modify or terminate this Agreement. (c) The OWNER may appeal a determination pursuant to
paragraph (b) to the City Council in accordance with the CITY's rule for consideration of appeals in zoning matters generally.

6.2 Proceedings Upon Modification or Termination. If, upon a finding under Section 6.1.6(b), the CITY determines to proceed with modification or termination of this Agreement, the CITY shall give notice to the property OWNER of its intention so to do.

The notice shall contain:
(a) The time and place of the hearing;
(b) A statement as to whether or not the CITY proposes to terminate or to modify this Agreement; and
(c) Other information that the CITY considers necessary to inform the OWNER of the nature of the proceeding.

6.3 Hearing on Modification or Termination. At the time and place set for the hearing on modification or termination, the OWNER shall be given an opportunity to be heard. The OWNER shall be required to demonstrate good faith compliance with the terms and conditions of this Agreement. The burden of proof on this issue shall be on the OWNER. If the City Council finds, based upon substantial evidence in the administrative record, that the OWNER has not complied in good faith with the terms and conditions of the agreement, the City Council may terminate or modify this Agreement and impose those conditions to the action it takes as it considers necessary to protect the interests of the CITY. The decision of the City Council shall be final, subject only to judicial review pursuant to Section 1094.5 of the Code of Civil Procedure.

6.4 Certificate of Agreement Compliance. If, at the conclusion of a Periodic or Special Review, OWNER is found to be in compliance with this Agreement, CITY shall, upon written request by OWNER, issue a Certificate of Agreement Compliance (“Certificate”) to OWNER stating that after the most recent Periodic or Special Review and based upon the information known or made known to the Planning Director and City Council that (1) this Agreement remains in effect and (2) OWNER is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicate constructive record notice of the finding of compliance, shall state whether the Certificate is issued after a Periodic or Special Review and shall state the anticipated date of commencement of the next Periodic Review. OWNER may record the Certificate with the County Recorder. Whether or not the Certificate is relied upon by assignees or other transferees or OWNER, CITY shall not be bound by a Certificate if a default existed at the time of the Periodic or Special Review, but was concealed from or otherwise not known to the Planning Director or City Council.
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7. [RESERVED]

8. DEFAULT AND REMEDIES.

8.1 Remedies in General. It is acknowledged by the parties that CITY would not have entered into this Agreement if it were to be liable in damages under this Agreement, or with respect to this Agreement or the application thereof.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that CITY shall not be liable in damages to OWNER, or to any successor in interest of OWNER, or to any other person, and OWNER covenants not to sue for damages or claim any damages:
(a) For any breach of this Agreement or for any cause of action which arises out of this Agreement; or
(b) For the taking, impairment or restriction of any right or interest conveyed or provided under or pursuant to this Agreement; or
(c) Arising out of or connected with any dispute, controversy or issue regarding the application or interpretation or effect of the provisions of this Agreement.

8.2 Specific Performance. The parties acknowledge that money damages and remedies at law generally are inadequate and specific performance and other non- monetary relief are particularly appropriate remedies for the enforcement of this Agreement and should be available to all parties for the following reasons:
(a) Money damages are unavailable against CITY as provided in Section 8.1 above.
(b) Due to the size, nature and scope of the project, it may not be practical or possible to restore the Property to its natural condition once implementation of this Agreement has begun. After such implementation, OWNER may be foreclosed from other choices it may have had to utilize the Property or portions thereof. OWNER has invested significant time and resources and performed extensive planning and processing of the Project in agreeing to the terms of this Agreement and will be investing even more significant time and resources in implementing the Project in reliance upon the terms of this Agreement, and it is not possible to determine the sum of money which would adequately compensate OWNER for such efforts.

8.3 Release. Except for nondamage remedies, including the remedy of specific performance and judicial review as provided for in Section 6.5, OWNER, for itself, its successors and assignees, hereby releases the CITY, its officers, agents and employees from any and all claims, demands, actions, or suits of any kind or nature arising out of any liability, known or unknown, present or future, including, but not limited to, any claim or liability, based or asserted, pursuant to Article I, Section 19 of the California Constitution, the Fifth Amendment of the United States Constitution, or any other law or 1748
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ordinance which seeks to impose any other liability or damage, whatsoever, upon the CITY because it entered into this Agreement or because of the terms of this Agreement.

8.4 Termination or Modification of Agreement for Default of OWNER. Subject to the provisions contained in Subsection 6.3 herein, CITY may terminate or modify this Agreement for any failure of OWNER to perform any material duty or obligation of OWNER under this Agreement, or to comply in good faith with the terms of this Agreement (hereinafter referred to as “default”); provided, however, CITY may terminate or modify this Agreement pursuant to this Section only after providing written notice to OWNER of default setting forth the nature of the default and the actions, if any, required by OWNER to cure such default and, where the default can be cured, OWNER has failed to take such actions and cure such default within 60 days after the effective date of such notice or, in the event that such default cannot be cured within such 60 day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such 60 day period and to diligently proceed to complete such actions and cure such default.

8.5 Termination of Agreement for Default of CITY. OWNER may terminate this Agreement only in the event of a default by CITY in the performance of a material term of this Agreement and only after providing written notice to CITY of default setting forth the nature of the default and the actions, if any, required by CITY to cure such default and, where the default can be cured, CITY has failed to take such actions and cure such default within 60 days after the effective date of such notice or, in the event that such default cannot be cured within such 60 day period but can be cured within a longer time, has failed to commence the actions necessary to cure such default within such 60 day period and to diligently proceed to complete such actions and cure such default.

9. THIRD PARTY LITIGATION.

9.1 General Plan Litigation. CITY has determined that this Agreement is consistent with its Comprehensive General Plan, as such General Plan exists as of the Effective Date (“General Plan”), and that the General Plan meets all requirements of law.

OWNER has reviewed the General Plan and concurs with CITY’s determination. CITY shall have no liability in damages under this Agreement for any failure of CITY to perform under this Agreement or the inability of OWNER to develop the Property as contemplated by the Development Plan of this Agreement as the result of a judicial determination that on the Effective Date, or at any time thereafter, the General Plan, or portions thereof, are invalid or inadequate or not in compliance with law.

9.2 Third Party Litigation Concerning Agreement. OWNER shall defend, at its expense, including attorneys’ fees, indemnify, and hold harmless CITY, its agents, officers and employees from any claim, action or proceeding against CITY, its agents, officers, or employees to attack, set aside, void, or annul the approval of this Agreement or the approval of any permit granted pursuant to this Agreement. CITY shall promptly notify OWNER of any such claim, action or proceeding, and CITY shall cooperate in the defense. If CITY fails to promptly notify OWNER of any such claim, action or proceeding, or if CITY fails to cooperate in the defense, OWNER shall not thereafter be responsible 1749
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to defend, indemnify, or hold harmless CITY. CITY may in its discretion participate in the defense of any such claim, action or proceeding.

9.3 Indemnity. In addition to the provisions of 9.2 above, OWNER shall indemnify and hold CITY, its officers, agents, employees and independent contractors free and harmless from any liability whatsoever, based or asserted upon any act or omission of OWNER, its officers, agents, employees, subcontractors and independent contractors, for property damage, bodily injury, or death (OWNER’s employees included) or any other element of damage of any kind or nature, relating to or in any way connected with or arising from the activities contemplated hereunder, including, but not limited to, the study, design, engineering, construction, completion, failure and conveyance of the public improvements, save and except claims for damages arising through the sole active negligence or sole willful misconduct of CITY. OWNER shall defend, at its expense, including attorneys’ fees, CITY, its officers, agents, employees and independent contractors in any legal action based upon such alleged acts or omissions. CITY may in its discretion participate in the defense of any such legal action.

9.4 Environment Assurances. OWNER shall indemnify and hold CITY, its officers, agents, and employees free and harmless from any liability, based or asserted, upon any act or omission of OWNER, its officers, agents, employees, subcontractors, predecessors in interest, successors, assigns and independent contractors for any violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to environmental conditions on, under or about the Property, including, but not limited to, soil and groundwater conditions, and OWNER shall defend, at its expense, including attorneys’ fees, CITY, its officers, agents and employees in any action based or asserted upon any such alleged act or omission. CITY may in its discretion participate in the defense of any such action.

9.5 Reservation of Rights. With respect to Sections 9.2, 9.3 and 9.4 herein, CITY reserves the right to either (1) approve the attorney(s) which OWNER selects, hires or otherwise engages to defend CITY hereunder, which approval shall not be unreasonably withheld, or (2) conduct its own defense, provided, however, that OWNER shall reimburse CITY forthwith for any and all reasonable expenses incurred for such defense, including attorneys’ fees, upon billing and accounting therefor.

9.6 Survival. The provisions of this Sections 9.1 through 9.6, inclusive, shall survive the termination of this Agreement.

10. MORTGAGEE PROTECTION.

The parties hereto agree that this Agreement shall not prevent or limit OWNER, in any manner, at OWNER’s sole discretion, from encumbering the Property or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Property. CITY acknowledges that the lenders providing such financing may require certain Agreement interpretations and modifications and agrees upon request, from time to time, to meet with OWNER and representatives of such lenders to negotiate in good faith any such request for 1750
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interpretation or modification. CITY will not unreasonably withhold its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement. Any Mortgagee of the Property shall be entitled to the following rights and privileges:
(a) Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish or impair the lien of any mortgage on the Property made in good faith and for value, unless otherwise required by law. (b) The Mortgagee of any mortgage or deed of trust encumbering the Property, or any part thereof, which Mortgagee, has submitted a request in writing to the CITY in the manner specified herein for giving notices, shall be entitled to receive written notification from CITY of any default by OWNER in the performance of OWNER’s obligations under this Agreement.
(c) If CITY timely receives a request from a Mortgagee requesting a copy of any notice of default given to OWNER under the terms of this Agreement, CITY shall provide a copy of that notice to the Mortgagee within ten (10) days of sending the notice of default to OWNER. The Mortgagee shall have the right, but not the obligation, to cure the default during the remaining cure period allowed such party under this Agreement. (d) Any Mortgagee who comes into possession of the Property, or any part thereof, pursuant to foreclosure of the mortgage or deed of trust, or deed in lieu of such foreclosure, shall take the Property, or part thereof, subject to the terms of this Agreement.

Notwithstanding any other provision of this Agreement to the contrary, no Mortgagee shall have an obligation or duty under this Agreement to perform any of OWNER’s obligations or other affirmative covenants of OWNER hereunder, or to guarantee such performance; provided, however, that to the extent that any covenant to be performed by OWNER is a condition precedent to the performance of a covenant by CITY, the performance thereof shall continue to be a condition precedent to CITY’s performance hereunder, and further provided that any sale, transfer or assignment by any Mortgagee in possession shall be subject to the provisions of Section 2.4 of this Agreement.

11. MISCELLANEOUS PROVISIONS.

11.1 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the San Bernardino County Recorder by the City Clerk within the ten (10) days after the CITY executes this Agreement, as required by Section 65868.5 of the Government Code. If the parties to this Agreement or their successors in interest amend or cancel this Agreement as provided for herein and in Government Code Section 65868, or if the CITY terminates or modifies the agreement as provided for herein and in Government Code Section 65865.1 for failure of the applicant to comply in good faith with the terms or conditions of this Agreement, the City Clerk shall have notice of such action recorded with the San Bernardino County Recorder.

11.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the parties, and there are no oral or written 1751
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representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement.

11.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement.

Notwithstanding the foregoing, the provision of the Public Benefits set forth in Section 4 of this Agreement, including the payment of the fees set forth therein, are essential elements of this Agreement and CITY would not have entered into this Agreement but for such provisions, and therefore in the event such provisions are determined to be invalid, void or unenforceable, this entire Agreement shall be null and void and of no force and effect whatsoever.

11.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.

11.5 Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

11.6 Singular and Plural. As used herein, the singular of any word includes the plural.

11.7 Joint and Several Obligations. Subject to section 2.4, if at any time during the term of this Agreement the Property is owned, in whole or in part, by more than one owner, all obligations of such owners under this Agreement shall be joint and several, and the default of any such owner shall be the default of all such owners. Notwithstanding the foregoing, no owner of a single lot which has been finally subdivided and sold to such owner as a member of the general public or otherwise as an ultimate user shall have any obligation under this Agreement except as provided under Section 4 hereof.

11.8 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element.

11.9 Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Agreement thereafter.
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11.10 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement.

11.11 Force Majeure. Neither party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the party’s control, (including the party’s employment force), government regulations, court actions (such as restraining orders or injunctions), or other causes beyond the party’s control. If any such events shall occur, the term of this Agreement and the time for performance by either party of any of its obligations hereunder may be extended by the written agreement of the parties for the period of time that such events prevented such performance, provided that the term of this Agreement shall not be extended under any circumstances for more than five (5) years.

11.12 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the party benefited thereby of the covenants to be performed hereunder by such benefited party.

11.13 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and, (c) is binding upon each party and each successor in interest during ownership of the Property or any portion thereof.

11.14 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.

11.15 Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the County of San Bernardino, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court.

11.16 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that neither party is acting as the agent of the other in any respect hereunder, and that each party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement. The only relationship between CITY and OWNER is that of a government entity regulating the development of private property and the owner of such property.
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11.17 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of either party at any time, the other party shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. The City Manager may delegate his powers and duties under this Agreement to an Assistant City Manager or other management level employee of the CITY.

11.18 Eminent Domain. No provision of this Agreement shall be construed to limit or restrict the exercise by CITY of its power of eminent domain.

11.19 Agent for Service of Process. In the event OWNER is not a resident of the State of California or it is an association, partnership or joint venture without a member, partner or joint venturer resident of the State of California, or it is a foreign corporation, then in any such event, OWNER shall file with the Planning Director, upon its execution of this Agreement, a designation of a natural person residing in the State of California, giving his or her name, residence and business addresses, as its agent for the purpose of service of process in any court action arising out of or based upon this Agreement, and the delivery to such agent of a copy of any process in any such action shall constitute valid service upon OWNER. If for any reason service of such process upon such agent is not feasible, then in such event OWNER may be personally served with such process out of this County and such service shall constitute valid service upon OWNER. OWNER is amenable to the process so served, submits to the jurisdiction of the Court so obtained and waives any and all objections and protests thereto. OWNER for itself, assigns and successors hereby waives the provisions of the Hague Convention (Convention on the Service Abroad of Judicial and Extra Judicial Documents in Civil or Commercial Matters, 20 U.S.T. 361, T.I.A.S. No. 6638).

11.20 Estoppel Certificate. Within thirty (30) business days following a written request by any of the parties, the other party shall execute and deliver to the requesting party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modifications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured defaults under this Agreement or that the responding party alleges that specified (date and nature) defaults exist. The statement shall also provide any other reasonable information requested. The failure to timely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modification except as may be represented by the requesting party and that there are no uncured defaults in the performance of the requesting party, except as may be represented by the requesting party. OWNER shall pay to CITY all costs incurred by CITY in connection with the issuance of estoppel certificates under this Section 11.20 prior to CITY’s issuance of such certificates.
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11.21 Authority to Execute. The person or persons executing this Agreement on behalf of OWNER warrants and represents that he or she/they have the authority to execute this Agreement on behalf of his or her/their corporation, partnership or business entity and warrants and represents that he or she/they has/have the authority to bind OWNER to the performance of its obligations hereunder.

11.22 Payment of Prevailing Wage. OWNER, for itself, its successors, and assigns, agrees, covenants, and warrants that the development of the Property, if any, shall comply with all applicable federal and state labor laws (including, without limitation, the requirement under California law to pay prevailing wages and hire apprentices), and all obligations as set forth herein.

11.22.1 OWNER acknowledges that the City has made no representation, express or implied, to OWNER or any person associated with OWNER regarding whether or not laborers employed relative to the construction and installation of improvements on the Property, if any, must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to California Labor Code Sections 1720, et seq. OWNER agrees with the City that OWNER shall assume the responsibility and be solely responsible for determining whether or not laborers employed relative to any construction of capital improvements on the Property must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to California Labor Code Sections 1720, et seq.

11.22.2 OWNER, on behalf of itself, its successors, and assigns, waives and releases the City from any right of action that may be available to any of them pursuant to California Labor Code Sections 1726 and 1781. OWNER acknowledge the protections of California Civil Code Section 1542 relative to the waiver and release contained in this Section 11.22, which reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT

THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR

SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF

EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER,

WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.

BY INITIALING BELOW, OWNER KNOWINGLY AND

VOLUNTARILY WAIVES THE PROVISIONS OF CALIFORNIA CIVIL
CODE SECTION 1542 SOLELY IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS SECTION 11.22:
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OWNER

11.22.3 Additionally, OWNER shall indemnify, defend with counsel acceptable to the City and hold harmless the City against any claims pursuant to California Labor Code Section 1781 arising from this Agreement or the construction or installation of any improvements on the Property, in accordance with the terms of Section 11.22 of this Agreement.

11.22.4 If Civil Code sections 9550 et seq. require contractors to procure a payment bond, then the OWNER shall ensure that its contractors deliver the required bond.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year set forth below.
[SIGNATURES CONTAINED ON FOLLOWING PAGE]
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SIGNATURE PAGE
TO DEVELOPMENT AGREEMENT FILE NO. PDA21-012
"OWNER"

RICHLAND MEADOWLAND, LTD,
a Texas Limited partnership
By: ________________________
Name: John Troutman
Its: Vice President
Date: ___________________

STRACK FARMS LAND, LLC
a Delaware limited liability company
By: ________________________
Name: John Troutman
Its: Vice President
Date: ___________________

RMD INLAND INVESTORS, LLC,
a Delaware limited liability company
By: ________________________
Name: John Troutman
Its: Vice President
Date: ___________________
"CITY"

CITY OF ONTARIO
By:

Scott Ochoa
City Manager
Date: ___________________
ATTEST:

City Clerk, Ontario
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APPROVED AS TO FORM:

BEST BEST & KRIEGER, LLP
City Attorney
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ACKNOWLEDGEMENT

STATE OF CALIFORNIA )
COUNTY OF____________________ )
On _________________, 20_____, before me__________________________________, Date Insert Name and Title of the Officer
personally appeared ________________________________________________________ Name(s) of Signer(s)
________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature________________________________
Signature of Notary Public
Place Notary Seal Above
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 1759
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ACKNOWLEDGEMENT

STATE OF CALIFORNIA )
COUNTY OF____________________ )
On _________________, 20_____, before me__________________________________, Date Insert Name and Title of the Officer
personally appeared ________________________________________________________ Name(s) of Signer(s)
________________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature________________________________
Signature of Notary Public
Place Notary Seal Above
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 1760
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EXHIBIT "A"

TO DEVELOPMENT AGREEMENT
Legal Description of Property
PARCEL ONE: (APN: 1073-171-02-0-000)
PARCEL "A" AS SHOWN ON LOT LINE ADJUSTMENT NO. LLA 18-006, AS EVIDENCED BY DOCUMENT RECORDED AUGUST 07, 2019 AS INSTRUMENT NO. 2019-0269171 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEING A PORTION OF GOVERNMENT LOT 4 OF THE NORTHEAST 1/4 OF SECTION 23, TOWNSHIP 2 SOUTH, RANGE 7 WEST, SAN BERNARDINO BASE AND MERIDIAN,

IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF AND A PORTION OF LOT 4 OF THE MAP OF THE

BONITO RANCHO SUBDIVISION, IN THE CITY OF ONTARIO, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 20, PAGE 49, OF MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT THE NORTHEAST CORNER OF SAID SECTION 23; THENCE ALONG THE NORTH LINE OF SAID SECTION, NORTH 89°57'17" WEST, A DISTANCE OF 1,323.36 FEET, TO THE NORTHWEST CORNER OF SAID GOVERNMENT LOT 4; THENCE ALONG THE WEST LINE OF SAID GOVERNMENT LOT 4, SOUTH 00°25'49" WEST, A DISTANCE OF 1,314.36 FEET, TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE SOUTHERLY HAVING A RADIUS OF 480.00 FEET, A RADIAL LINE TO SAID CURVE BEARS NORTH 04°04'47" EAST; THENCE SOUTHEASTERLY, ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 11°42'21" A DISTANCE OF 98.07 FEET; THENCE SOUTH 74°12'52" EAST, A DISTANCE OF 25.40 FEET, TO A POINT ON THE NORTHERLY LINE OF PARCEL 2 OF CERTIFICATE APPROVING LOT LINE ADJUSTMENT OWNER'S CERTIFICATE NO. LLA06- 08, RECORDED MARCH 15, 2007 AS DOCUMENT# 2007-163169 OF OFFICIAL RECORDS, SAID POINT ALSO BEING A POINT ON THE NORTHWESTERLY LINE OF SAID LOT 4; THENCE ALONG SAID NORTHERLY LINE OF SAID PARCEL 2 AND THE NORTHWESTERLY LINE OF SAID LOT 4, NORTH 62°37'22" EAST, A DISTANCE OF 42.19 FEET; THENCE CONTINUING ALONG SAID NORTHERLY LINE OF SAID PARCEL 2, SOUTH 89°41'00" EAST, 135.92

FEET, TO THE BEGINNING OF A NON-TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 470.00 FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 07°19'42" WEST; THENCE EASTERLY, ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14°01'24" A DISTANCE OF 115.03 FEET, TO A POINT ON SAID NORTHERLY LINE OF SAID PARCEL 2; THENCE CONTINUING ALONG SAID NORTHERLY LINE OF SAID PARCEL 2, SOUTH 89°41'00" EAST, A DISTANCE OF 916,17 FEET, TO THE EAST LINE OF SAID SECTION 23; THENCE ALONG THE EAST LINE OF SAID SECTION 23, NORTH 00°20'57" EAST, A DISTANCE OF 1,324.15 FEET, TO THE POINT OF BEGINNING.
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EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF ONTARIO, A POLITICAL SUBDIVISION BY GRANT DEED RECORDED FEBRUARY 20, 2020 AS INSTRUMENT NO. 2020-0059874, OF OFFICIAL RECORDS.

PARCEL TWO: (APN: 1073-171-01-0-000)
PARCEL 2 AS SHOWN ON CERTIFICATE APPROVING A LOT LINE ADJUSTMENT LLA NO. 07-010, AS EVIDENCED BY DOCUMENT RECORDED JUNE 10, 2008 AS INSTRUMENT NO. 2008-0263645 OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEING THOSE PORTIONS OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER, AND GOVERNMENT LOT 3 OF SECTION 23, TOWNSHIP 2 SOUTH, RANGE 7 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF ONTARIO, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS:

COMMENCING AT THE NORTH QUARTER CORNER OF SAID SECTION 23, THENCE SOUTH 0°13’25" WEST, 25.00 FEET TO A POINT ON A LINE THAT IS PARALLEL WITH AND 25.00 FEET SOUTHERLY OF THE NORTHERLY LINE OF SAID SECTION 23; THENCE SOUTH 89°57’17" EAST ALONG SAID PARALLEL LINE, 949.92 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89°57’17" EAST, 373.54

FEET TO A POINT ON THE EASTERLY LINE OF SAID NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 23; THENCE SOUTH 0°25’49" WEST ALONG

SAID EASTERLY LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER, 1259.30 FEET TO THE BEGINNING OF A NON-TANGENT CURVE CONCAVE SOUTHERLY AND HAVING A RADIUS OF 510.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 3°51’53" EAST; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 17°19'17" AN ARC DISTANCE OF 154.18 FEET; THENCE SOUTH 76°32’36" WEST, 100.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY AND HAVING A RADIUS OF 510.00 FEET; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 13°28’45" AN ARC DISTANCE OF 119.98 FEET TO A POINT TO WHICH A RADIAL LINE BEARS SOUTH 00°01'21" WEST; THENCE NORTH 0°13’25" EAST, 1309.69 FEET TO THE TRUE POINT OF BEGINNING.
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EXHIBIT "B"

TO DEVELOPMENT AGREEMENT
Map showing Property and its location
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EXHIBIT "C"

TO DEVELOPMENT AGREEMENT
Existing Development Approvals
On September 26, 2006, the Planning Commission:
a) Issued Resolution No. PC06-095 recommending City Council adopt and certify the Subarea 29 (Park place) Environmental Impact Report;
b) Issued Resolution No. PC06-096 recommending City Council approval of the General Plan Amendment (PGPA06-003); and
c) Issued Resolution No. PC06-097 recommending City Council approval of the Subarea 29 (Park Place) Specific Plan (PSP03-003).

On October 19, 2006, the City Council:
a) Issued Resolution No. 2006-089 certifying the Subarea 29 (Park place) Environmental Impact Report; and
b) Issued Resolution No. 2006-090 approving the General Plan Amendment (PGPA06- 003).

On November 7, 2006, the City Council:
a) Issued Ordinance No. 2845 approving of the Subarea 29 (Park Place) Specific Plan (PSP03-003).

On March 27, 2007, the Planning Commission:
a) Issued Resolution No. PC07-036 recommending City Council approval of an amendment to the Subarea 29 Specific Plan (PSPA07-007).

On May 1, 2007, the City Council:
a) Issued Resolution No. 2007-053 approving an amendment to the Subarea 29 Specific Plan.

On August 28, 2013, the Zoning Administrator:
a) Issued Decision No. 2013-025 approving a minor amendment to the Subarea 29 Specific Plan (PSPA13-002).
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EXHIBIT "C"

TO DEVELOPMENT AGREEMENT
Existing Development Approvals (Continued)
On March 24, 2015, the Planning Commission:
a) Issued Resolution No. PC15-035 recommending City Council approval of an amendment to the Subarea 29 Specific Plan (PSPA14-002).

On April 21, 2015, the City Council:
a) Issued Resolution No. 2015-030 approving an amendment to the Subarea 29 Specific Plan.
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EXHIBIT "D"

TO DEVELOPMENT AGREEMENT
Existing Land Use Regulations
These documents are listed for reference only:

1. Subarea 29 (Park place) Environmental Impact Report, Resolution No. 2006-089

2. Subarea 29 (Park Place) General Plan Amendment (PGPA06-003), Resolution No. 2006- 090

3. Subarea 29 (Park Place) Specific Plan (PSP03-003), Ordinance No. 2845

4. Amendment to the Subarea 29 Specific Plan (PSPA07-003), Resolution No. 2007-053

5. Amendment to the Subarea 29 Specific Plan (PSPA13-002), Decision No. 2013-025

6. Amendment to the Subarea 29 Specific Plan (PSPA14-002), Resolution No. 2015-030

7. City of Ontario Municipal Code
a. Six – Sanitation & Health
b. Seven – Public Works
c. Eight – Building Regulations
d. Nine – Development Code
e. Ten – Parks & Recreation
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EXHIBIT "E"

TO DEVELOPMENT AGREEMENT
Description of Required Infrastructure Improvements
OWNER shall design, construct, and complete the following Street, Sewer, Storm Drain, Potable Water, Recycled Water, and Fiber Optic improvements, prior to OWNER’s request for building permits for Production Units.

STREETS (ST)
a) ST improvements on Eucalyptus Avenue from the western tract boundary to Haven Avenue. b) ST improvements on Haven Avenue from Eucalyptus Avenue to Parkview Street. c) Full signalized intersection improvements at the corner of Eucalyptus Avenue and Haven Avenue.
d) Full signalized intersection improvements at the corner of Haven Avenue and Parkview Street, pursuant to Section 3.7.6.
e) Full signalized intersection improvements at the corner of Eucalyptus Avenue and “A” Street, pursuant to Section 3.7.6

FIBER OPTICS (FO)
a) FO improvements on Haven Avenue from Eucalyptus Avenue to Parkview Street. b) FO improvements on Parkview Street from Haven Avenue to the western tract boundary. c) FO improvements at the intersection of Eucalyptus Avenue and “A” Street. 1767
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EXHIBIT "F"

TO DEVELOPMENT AGREEMENT
Depiction of Required Infrastructure Improvements

SEE ATTACHED
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1769
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EXHIBIT “G”

TO DEVELOPMENT AGREEMENT

FORM OF CERTIFICATE OF NET MDD AVAILABILITY
Pursuant to Section of this Agreement between the City of Ontario, a California municipal corporation, and , a
company, hereinafter called "OWNER", the terms and definitions of which are hereby incorporated herein by this reference and hereinafter called "Agreement", the City of Ontario hereby certifies based on CITY receipt of payment of OWNER’s share of the funding for the Phase 2 Water Improvements, that OWNER is entitled to the following Net MDD Water Availability.

Amount of Net MDD: gpm
Scott Ochoa, City Manager
Dated:
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Exhibit “H”

TO DEVELOPMENT AGREEMENT

FORM OF CERTIFICATE OF REGIONAL DIF CREDIT
Pursuant to Section 4.5.2 of this Agreement by and between the City of Ontario and , dated , 201__, the terms and definitions
of which are hereby incorporated herein by this reference and hereinafter called the “Development Agreement’, the City of Ontario hereby certifies that OWNER is entitled to the following amount and nature of DIF Credits in the Regional Water DIF Infrastructure Category:

Amount of Credit: $
___________________________
Scott Ochoa, City Manager
Dated:
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Exhibit “I-1”

TO DEVELOPMENT AGREEMENT

ONTARIO RANCH

WATER SUPPLY PHASING PLAN
Phase 2 Water
Availability
Equivalency
Estimated
Net MDD Available1
Phase 2 A
Supply & Storage

1. 1 - Additional Ground Water Well and Collection lines - Design and Construction
8,250 gpm2 7,750 gpm2
Pipelines (Transmission & Distribution)2

2. 925 Zone Transmission lines – Design and Construction

3. Temporary Pressure Reducing Station 3 – Design and
Construction
Phase 2B
Supply & Storage

4. 1 – Additional Ground Water Well and Collection lines – Design and Construction

5. 1 – 6 million gallon Reservoir – 925 Zone – Design and Construction
10,500 gpm2 9,860 gpm2
(1) Upon Completion of the construction of all of the improvements described for each Phase a Certificate of Net MDD Availability shall be issued to Developer for the corresponding amount of Net MDD. Net MDD means the maximum daily demand on the potable water supply, net of the water requirements for public schools and parks. The Water Availability Equivalency includes the estimated requirements for public schools and parks. The amount of Net MDD specified is the cumulative amount for which building permits may be issued upon funding of the corresponding and all preceding Phases of improvements.
(2) The ability of a particular development to utilize Net MDD assigned to it by the Developer will require the completion of design and construction of Master-planned potable and recycled water transmission and distribution pipelines for the respective pressure zone. Other factors may include its location, the particular land use and Water Availability Equivalents assigned to it as specified in Exhibit C-2. (3) Pressure reducing stations are a component of the pipeline transmission and distribution system. 1773
-58-
EXHIBIT “I-2”

TO DEVELOPMENT AGREEMENT

WATER DEMAND EQUIVALENTS BY LAND USE
Available Water Supply - See Exhibit C-1R for Net MDD Available Table A - Water Demand Equivalents By Land Use
Water
Demand
Equivalents
(WDE)2
Recycled
Water
Demand
Factor1
(ADD)
Recycled
Water
Demand Of
Total Water
Demand
(gpd/du) (gpd/ac) (gpm/unit) (gpd/ac) (%)
Detached Dwellings (less than 5 units per acre) 544 0.57 900 28% Detached or Attached Dwellings (between 5 and 11 units per acre) 464 0.48 1,000 21% Attached Dwellings (between 11 and 25 units per acre) 323 0.34 1,500 18% High Density Dwellings (25+ units per acre) 152 0.16 1,500 27% Commercial Lodging 150 0.16 1,700 50%
Retail/Serv ices Uses 2,200 2.29 2,300 51%
Office Uses 3,400 3.54 2,300 40%
Business Park Uses 2,200 2.29 2,200 50%
Industrial Uses 2,000 2.08 2,200 52%
Institutional Use 2,200 2.29 1,600 42%
Parks 1,000 1.04 1,400 58%
Schools 3,500 3.65 1,600 31%
Table B - Example Water Supply Calculation
Land Use Residential
Units
WDE Factor
(gpm)
Potable
MDD
(gpm)
Development
Detached Dwellings (less than 5 units per acre) 5,061 0.57 2,868 Detached or Attached Dw ellings (betw een 5 and 11 units per acre) 2,530 0.48 1,223 Attached Dwellings (between 11 and 25 units per acre) 3,410 0.34 1,147 Retail/Serv ices Uses (per acre)2 2.29 239
TOTAL 11,001 5,477
Three (3) Wells Are required to Support this example, assuming each w ell produces 2,000 gpm and connection to the Recycled Water System maximizing Recycled Water Use. 1 Residential Acres are estimated based on the w eighted average derived from the average number of units per land use category. 2 Commercial acreage is calculated from a total square footage of 1,361,000 SF w ith an average Floor to Area Ratio (FAR) of 0.30 for commercial services in The Ontario Plan. 1Recycled Water Demands include irrigation for right-of-w ay (medians and parkw ays), neighborhood edge, pocket parks, and common areas.

Potable WaterThe Ontario Plan Recycled Water
Land Use
1,428
166
194 202
1,950
1,284
Acres1
(gross)
104
369
803
Recycled
Water ADD
(gpm)
Water Demand Factor
(ADD)
256
2 The WDE is based on the Maximum Day Demand (MDD) w ith a peaking factor of 1.5 in the NMC for all land use categories. 1774
59 EXHIBIT "J"

TO DEVELOPMENT AGREEMENT
Form of Plume Disclosure Letter
1775
Department: Economic Development
Prepared By: Karla Tavera
Staff Member Presenting:

Jennifer McLain Hiramoto, Economic
Development Director
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 25
SUBJECT:

A RESOLUTION TO RENEW THE DOWNTOWN ONTARIO COMMUNITY BENEFIT

DISTRICT

CITY OF ONTARIO
Agenda Report
January 16, 2024
SECTION:

PUBLIC HEARINGS

RECOMMENDATION:

It is recommended that the City Council take the following actions pertaining to the renewal of the Downtown Ontario Community Benefit District (“CBD”):

A
.

Conduct the public hearing;
B
.

Consider oral and written testimony regarding the proposed renewal of the CBD; C
.

Tabulate Assessment ballots returned to the City pursuant to the procedures set forth in Government Code Section 53753; and
D
.

If ballot tabulation results in a weighted majority in support of renewing the CBD, adopt a Resolution of Formation to renew the CBD and to levy and collect assessments within such CBD pursuant to California Streets and Highways Code 36600 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:

This is the public hearing and balloting phase of the renewal process for the ten (10) year renewal of the CBD in Downtown Ontario. Renewal of the CBD is estimated to generate approximately $486,776 for Fiscal Year 2024-25 to fund improvements and services in the CBD area. As a property owner in the CBD, if renewal of the CBD is approved, the fiscal obligation of the City will be approximately $171,000 for the first year for all City-owned property. This will account for approximately 35.13% of the overall assessment of the renewed CBD. The amount to be levied and collected for subsequent years may be increased, by an amount not to exceed five (5) percent per year provided, however, assessments shall not be increased to exceed the proportionate special benefit conferred on any parcel. General Fund appropriations will be included in the Fiscal Year 2024-25 Proposed Budget.
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BACKGROUND & ANALYSIS:

On November 7, 2023, the City Council adopted a Resolution of Intention to renew the CBD and to levy and collect assessments because of the Downtown CBD Steering Committee and Downtown Action Organization receiving signed petitions representing over 50% of the weighted assessment within the proposed boundaries of the CBD. This allowed the CBD renewal process to proceed to the balloting process.

Ballots were mailed to property owners within the proposed boundaries over 45 days prior to the January 16, 2024 public hearing, the ballot packet included (Exhibit 1):

A Notice of Public Hearing
Ballot Instructions, Procedures for Completion, Return and Tabulation of the Assessment Ballot
An Official Ballot
Ballot Return Envelope
A copy of the Management District Plan
This meeting/public hearing, which is required by the California Streets and Highways Code and the California State Constitution, gives the property owners an opportunity to voice their opinion regarding the renewal of the CBD and cast their votes for or against its renewal in a public forum.

Ballots are accepted until the close of the public testimony at the public hearing. At the close of the public testimony, the balloting agenda item will be recessed briefly to allow time for the ballot tabulation. At that time, the City Clerk and Staff will convene in a room adjacent to the City Council Chambers to unseal and tally the ballots, determining the weight of each ballot submitted. Any members of the public in attendance wishing to view the tabulation will be allowed to do so. Once completed, the City Clerk and Staff will return to the City Council Chambers with the final weighted ballot count and the agenda item will continue.

If the ballots received in support of the proposed renewal of the Downtown Ontario CBD represents more than 50% of the weighted assessments returned and counted, the CBD may be approved for renewal by the City Council through the attached Resolution of Formation.

Annual Budget
As presented at the Resolution of Intent on November 7, 2023, the CBD Steering Committee has proposed a first-year budget of $486,776 funded by assessments on all taxable properties within the CBD (Exhibit A- Page 13). The funds will provide enhanced services over and above baseline services provided by the City General Fund.

Recap of the Formation Steps:

Formation of the Community Benefit District is authorized by Article XIII D of the California Constitution and Section 36600 of the California Streets and Highways Code. Below is a summary of the major milestones completed in furtherance of renewal of the Downtown CBD. Currently the CBD Steering Committee and Downtown Action Organization are on step 5. 1 .

A CBD Steering Committee was assembled in June 2023 for the renewal of the CBD. The state constitution mandates that a property assessment district can only be formed by an 1777
assessment ballot proceeding supported by the weighted majority of property owners within a given district based upon the weighted total of each property's proposed assessment. 2 .

The CBD Steering Committee worked jointly with New City America to adopt a management district plan, the plan outlined the special benefits to be funded, the term of the CBD, the boundaries, benefit zones, the assessment methodology which identified a formula for determining the costs to each property owner and the management of the CBD. 3 .

Once the CBD plan was approved by CBD Steering Committee the plan was submitted to the City for review and an Assessment Engineer, certified by the State of California as required by State law, prepared the Assessments Engineer's Report supporting the assessments. Once the Management District Plan was approved by the City, a petition was circulated which sought to demonstrate support by minimum of 50% of the property owners by weight. Once the 50% weighted threshold had been met, the petitions were then submitted to the City for processing.
4 .

The City Staff prepared a Resolution of Intent for consideration by the City Council at a public meeting. This was done on November 7, 2023. According to the State Constitution, property owners must then be allowed to submit mailed ballots on the renewal of the CBD at a public hearing. By adopting the Resolution of Intention, the City Council instructed the City Clerk to mail out the ballots to every affected property owner within the boundaries of the proposed renewal of the CBD. The assessment amount was printed on each ballot and each property owner had the opportunity to register support or opposition to the renewal of the district.

The property owners had no less than 45 days from the date of the mailing in which to return the ballots. The mailed ballots must be returned to the City Clerk by the conclusion of the public testimony portion of the public hearing scheduled for January 16, 2024. 5 .

At the conclusion of the public testimony at the public hearing, the City Clerk will then count the returned ballots and separate those in support and those in opposition. If the weighted returned ballots in support (more than 50%) exceed those returned in opposition, the City Council may then adopt a Resolution of Formation that renews the CBD and levies the assessments on the benefitting parcels. The City then informs the County to levy the assessments on the next cycle of property tax bills consistent with the amounts listed in the Management District Plan and Assessment Engineer's report. 6 .

The assessments will then appear as a line item on the property tax bills beginning Fiscal Year 2024-25 and each subsequent year for a period of ten (10) years, and will be separated and sent to the City for processing. Once an account has been established and a contract is in place with the designated management corporation, the CBD assessments will be transferred to the non-profit management corporation for allocation of the assessments in accordance with the Management District Plan.

Staff will return, on a date to be determined, to the City Council for approval of the contract with the non-profit management corporation for administration of the CBD. 1778
1 The Proposed Renewal for the
Downtown Ontario Community Benefit District
(DOCBD)
Management District Plan
for the
Downtown Ontario Improvement Association
&
The City of Ontario
Being Renewed for a 10-year Term Pursuant to
California Streets and Highways Code Section 36600 et seq.

Property & Business Improvement District Act of 1994, as amended September 14, 2023
Corporate Office 2210 Columbia Street  San Diego, CA 92101  888-356-2726  619-233-5009  Midwest Office  300 N. State Street, Ste 4710  Chicago, Ill 60654 New England Office: 42 Pearl Street,  New Bedford, MA  02740 [email protected]  www.newcityamerica.com  Facebook: New City America, Inc. 1779
2 TABLE OF CONTENTS
I. Management District Plan Summary – 3
II. DOCBD Boundaries – 7
III. Proposed 10-year DOCBD Work Plan and Budget – 11
IV. Proposed DOCBD Assessment Formula – 17
V. Publicly Owned Parcels – 23
VI. DOCBD District Governance – 26
VII. Proposed Rules and Regulation – 26
VIII. Other Items – 26
IX. Implementation Timetable – 27
Appendix 1: Year 1 – CBD Assessment Roll -29
Attachment 1: Certified Assessment Engineer’s Report
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3 MANAGEMENT DISTRICT PLAN SUMMARY
Background:

Beginning in the summer of 2018, the City of Ontario worked with a group of motivated property owners to gauge support within the community for a new Special Benefits District for both the Downtown property owners and business community alike. The City of Ontario has hired New City America – a company specializing in Special Benefits District formation and district management - to work with the Downtown property owners to investigate the viability of a new Community Benefit District (CBD) in Downtown.

The property owners voted overwhelmingly in August of 2019 (pre-COVID) to support the establishment of this new Community Benefit District, formed under the provisions of Section 36600 of the California Streets and Highway Code. Due to its work during COVID as well as the success of its management and the introduction of new development in Downtown Ontario, the property owners have decided to renew the DOCBD, this time for the maximum ten year term, which would commence on January 1 st 2025. The documents shall serve as the renewal Management District Plan.

Accomplishments of the DOCBD Since its Formation:

Proposed Renewal Plan:

The Downtown Ontario CBD is a Property and Community Benefit District (DOCBD) being renewed for a 10-year period by the Owners Association, the Downtown Ontario Improvement Association Board within the CBD area. Understanding that the timeline for formation in time for Fiscal Year 2025 would be very challenging, property owners felt that the time had come for such a special benefits district and that these services would be needed to accommodate hundreds of new apartments as well as new businesses opening in 2023 - 24, and these services would be needed by the beginning of 2025.

The purpose of establishing this CBD is to provide and manage supplemental services and improvements for this important, historic and growing business center, including landscaping, beautification, marketing, district identity, safety, and administration services, programs and improvements. The DOCBD is a unique benefit assessment district that will enable the DOCBD property owners and businesses working as a unit, to fund needed property and business-related improvement programs, services and programs above what is provided by the City of Ontario.

Management Plan at a Glance:

Name: The name of the CBD is the Downtown Ontario Community Benefit District (DOCBD).

Management Entity: The Downtown Ontario Improvement Association (501c3) 1781
4 Location: The proposed DOCBD is in the Downtown Ontario district along both sides of Euclid Avenue from the underpass just south of W. Emporia Street northward to the parcels to the south side of G Street. The western boundary is predominantly along North Palm Avenue, and the eastern boundary is predominantly along North Lemon Avenue.

Benefit Zones: There is one benefit zone within the proposed DOCBD. The boundaries of the benefit zone are coterminous with the boundaries of the proposed DOCBD.

Services: Civil Sidewalks, District Identity and Placemaking, Administration services, and Contingency. These services are proposed to be performed in the first year, and in each subsequent year, of the proposed DOCBD. 80% of the revenue generated by the proposed district will directly fund services to the property owners with less than 20% allocated to the oversight and administration of those services.

Finance: The financing of the CBD is based upon a benefit assessment of real property (204 parcels with 101 property owners). No bonds shall be issued to fund DOCBD programs.

Budget: CBD assessment revenue for Year 1 is projected to be $ 486,776. It is noted that the Assessment Engineer has determined that general benefits equate to 2% of the total adjusted CBD program costs of $496,710 or $ 9,934. General benefit costs shall be derived from non- assessment revenue sources such as grants, program income, credits, interest, memberships and other sources. Revenues from the assessment will increase by a maximum of 5% each year.

Year 1 – PROPOSED BUDGET (ASSESSMENT REVENUES/SPECIAL BENEFIT COSTS) Category of Special Benefit Services
2025
Approximate
Annual Amount
Approximate
Percentage of total
budget
Civil Sidewalks $ 290,000 60%
District Identity/Placemaking $ 96,000 20%
Administration $ 79,000 16%
Contingency $ 21,776 4%
Total $ 486,776 100%
Benefits: “General Benefit” is defined as: “A benefit to properties in the area and in the surrounding community or benefit to the public in general resulting from the improvement, activity, or service to be provided by the assessment levied.” “Special Benefit” as defined by the California State Constitution means a distinct benefit over and above general benefits conferred on real property located in the DOCBD or to the public at large.

Formula: There is one benefit zone in the DOCBD. (A map showing the DOCBD boundaries is shown in Chapter 2 of this Plan). Year 1 property assessment rates per parcel are as follows:
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5 YEAR 1 –Assessment Rates
Benefit Zone Annual Building Square
Footage Cost
Annual
Lot Size Cost
Annual Linear
Frontage Cost
All parcels $0.17 $0.065 $ 6.50
Residential Condos $0.20 0 0
Assessments for the County of San Bernardino Property Tax Year fiscal beginning July 1, 2025 and ending June 30, 2034, are proposed to be collected at the same time and in the same manner as ad valorem taxes paid to the County of San Bernardino (Operation Years 2025-2034). The District assessments shall appear as a separate line item on the property tax bills issued by the San Bernardino County Assessor. The City of Ontario is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement this Management District Plan.

Cap: Assessment increases are capped at a maximum of 5% per year, subject to approval by the DOCBD Property Owner Association Board of Directors, Owners Association.

Renewal:

The DOCBD renewal is a two-step process. First, petitions signed by DOCBD property owners representing at least 50% of the total assessment to be levied must be secured. Second, property owners will be sent a ballot to vote on forming the CBD and levying the assessment. Returned ballots in support of the CBD Renewed must outweigh those in opposition based on the amount of assessment to be levied. Ballots are weighted based on the total assessment attributable to each parcel.

Duration
As allowed by State PBID Law, the renewed DOCBD will have a ten (10) year operational term from January 1, 2025 to December 31, 2034. The proposed renewed District operation is expected to begin services on January 1, 2025. If the District is not renewed, services will end on December 31, 2034.
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6 II. DOCBD RENEWAL BOUNDARIES
General
The renewed Downtown Ontario CBD is located along Euclid Avenue (SR83) in Downtown Ontario, just south of Interstate 10 and north of Highway 60. The DOCBD is a grid based commcerial district with its eastern boundary proposed as predominantly on North Lemon Avenue and its west boundary proposed as predominantly along S. Palm Avenue. The district boundaries run the underpass just south of Emporia Street northward to the south side of G Street.

Boundary Description: The Downtown Ontario CBD encompasses approximately 23 square blocks centered by Euclid Avenue.

Benefit Zones: The District consists of one benefit zone.

District Boundary Rationale
The Downtown Ontario CBD boundaries are comprised of the commercial core parcels where the main economic activity of Downtown Ontario is centered. The commercial parcels fronting Euclid Avenue are the historic heart of the commercial core of the city of Ontario. These parcels showcase an array of commercial retailers, restaurants, retailers, service stores, the vast Town Center block, churches and soon will be home to a full block of market rate housing and a full block of a new university. After years of little if any new development, the corridor is now experiencing a renaissance of new market rate housing development in the form of new mixed use, market rate housing. Its proximity to Interstate 10, Highway 60, the Ontario Airport and the Metrolink station in Upland makes it an ideal place to live in and conduct commerce in the region.

The new housing and excellent historic and contemporary housing surrounding Downtown is evolving into an emerging 21 st century mixed use community. New retail in the form of stores, restaurants and coffee shops are following the growth of high density residential on Euclid Avenue.

Northern Boundary
The northern boundary of the CBD is defined by the commercial parcels which are located just south of G Street from the east side of North Laurel Avenue on the west and the west side of North Lemon Avenue on the east. The District will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No District programs and services will be provided north of the northern District boundary.

Western Boundary
The western boundary of the Downtown Ontario CBD is at the southeastern corner parcel at the intersection of West G Street and North Laurel Avenue (parcel 1048-356-01) and runs south along the eastern side of North Laurel to the intersection of West D Street and North Laurel Avenue.

The boundary then runs straight west along the south side of West D Street to the intersection of North Palm Avenue and West G Street. From there, the boundary runs south along the east side of North Palm Avenue from parcel 1048-561-13 southward to parcel 1049-056-06 at the 1784
7 intersection of West Emporia Street and North Palm Avenue. The boundary then runs west along the south side of West Emporia Street to include the western most parcel 1049-059-07.

The District will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No District programs and services will be provided west of the western District boundary.

Southern Boundary
The southern boundary of the CBD begins at parcel 1049-059-07 on West Emporia Street and runs on the south side of all the parcels on West Emporia Street to the parcel at the west side of the intersection of West Emporia Street and North Plum Street, ending at parcel 1049-064-14.

The District will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No District programs and services will be provided south of the southern District boundary.

Eastern Boundary
The eastern boundary of the CBD begins at the parcel at the west side of the intersection of West Emporia Street and North Plum Street, at parcel 1049-064-14 and runs northward along the west side of North Plum Avenue to the parcel at the southwestern corner of the intersection of East Holt Blvd and North Plum Avenue, parcel 1049-063-05. The boundary then runs westward for one block on the south side of East Holt Blvd. to the southeastern parcel of the intersection of South Lemon Avenue and East Holt Blvd., parcel 1049-063-01, and then runs northward along the western side of North Lemon Avenue up to the parcel at the southwestern corner of the intersection of East G Street and North Lemon Avenue, ending at parcel 1048-361-05.

The District will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No District programs and services will be provided east of the eastern District boundary.

Summation
A list of all parcels included in the proposed DOCBD are shown as Appendix 1, attached to this report identified by their respective San Bernardino County assessor parcel numbers. The boundary of the proposed DOCBD is shown on the map of the DOCBD is to be found on page 10 of this report.

All identified assessed parcels within the above-described boundaries shall be assessed to fund supplemental programs, services and improvements that provide a special benefit to assessed parcels, as outlined in this Management District Plan. All DOCBD funded services, programs and improvements shall be provided within the above described boundaries and no services shall be provided outside of the DOCBD. Each assessed parcel within the DOCBD will specially benefit from the District funded programs and services (i.e. Civil Sidewalks, District Identity and Place Making, Administration and Contingency).
1785
8 These services, programs and improvements are intended to improve commerce, employment, rents and occupancy rates and investment viability of individually assessed parcels and businesses within the DOCBD. The DOCBD confers special benefits on each individually assessed parcel by reducing crime, improving aesthetics and marketing goods and services available from individually assessed parcels and the businesses and residential rental units within the District, all considered supplemental in a competitive properly managed Downtown district.

All District funded services programs and improvements are supplemental, above normal base level services provided by the City of Ontario and are only provided for the special benefit of assessed parcels within the boundaries of the proposed renewed DOCBD.

The District includes 204 parcels of which all are identified as assessable which are listed in the Assessment Roll included as Appendix 1.
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9 1787
10 III. P ROPOSED TEN-YEAR CBD RENEWAL WORK PLAN AND BUDGET Overview
The Programs and activities to be funded by the DOCBD will include Civil Sidewalks, District Identity and Place Making, Administration services, and Contingency. The property uses within the boundaries of the District that will receive special benefits from District funded programs, services and improvements are currently a unique mix of retail, office, grocery, restaurant, ecumenical, banking, public space, mixed use housing developments, service and other commercial uses. District funded activities are primarily designed to provide special benefits as described below to identify assessed parcels and array of land uses within the boundaries of the District.

These benefits are distinct to each identified assessed parcel within the DOCBD and are not provided to non-assessed parcels outside of the District. These programs, services and improvements will only be provided to each individual assessed parcel within the District boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

In the case of the DOCBD, the very nature of the purpose of this District is to fund supplemental programs, services and improvements to assessed parcels within the District boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. The City of Ontario does not provide these supplemental programs and services.

All benefits derived from the assessments to be levied on assessed parcels within the District are for services, programs and improvements directly benefiting each individual assessed parcel within the District. No District funded services, activities or programs will be provided outside of the District boundaries.

The projected program special benefit cost allocation of the District assessment revenues for the 10-year District term assuming a 5% maximum annual assessment rate increase is shown in the Table on page 14 of this Plan.

Renewal Work Plan Details
The special benefit services to be provided by the DOCBD are all designed to contribute to the cohesive commercial fabric and to ensure economic success and vitality of the District. The assessed parcels in the CBD will specially benefit from the District programs in the form of increasing commerce and improving economic success and vitality through meeting the CBD goals: to improve sanitation, beautification, landscaping, and to attract new and retain existing businesses and services, and ultimately to increase commerce and improve the economic viability of each individual assessed parcel. The following programs, services and improvements are proposed by the DOCBD to specially benefit each individually assessed parcel within the District boundaries. DOCBD services, programs and improvements will not be provided to parcels outside the District boundary.
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11 Year 1 – PROPOSED RENEWAL BUDGET (ASSESSMENT REVENUES/SPECIAL BENEFIT COSTS) The proposed “bundles” of special benefit services are listed below.

CIVIL SIDEWALKS:

Examples of this category of special benefit services and costs may include, but is not limited to:
 Regular sidewalk and gutter sweeping
 Regular sidewalk steam cleaning
 Beautification of the district
 Enhanced trash emptying (over and above city services)  Timely graffiti removal, within 24 hours as necessary  Tree and vegetation maintenance (over and above city services)  Maintenance of existing and new public spaces supplemental to what is current being provided by the City of Ontario
 Installation of and maintenance of hanging plants, planting flowers throughout the district
 Private security or case workers to respond to homeless issues, aggressive panhandling and mentally ill people behaving poorly in the public rights of way, including possible hiring of Ontario PD Bike patrols and/or a camera system
DISTRICT IDENTITY AND PLACEMAKING:

Examples of this category of special benefit services and costs may include, but is not limited to:
 Web site development and updating
 Management and coordination of special events
 Social media
 Public relations firm
 Holiday and seasonal decorations
 Branding of the Downtown Ontario CBD properties so a positive image is promoted to the public
 Banner programs
 Public art displays
 Logo development
 Public space design and improvements

ADMINISTRATION/PROGRAM MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:
 Staff and administrative costs
 Directors and Officers Insurance, General Liability and other insurance coverages
 Office related expenses
 Rent
 Financial reporting and accounting, and legal services 1789
12 CONTINGENCY/CITY AND COUNTY FEES/RESERVE
As with other plans in similar CBDs, this management plan sets aside a 4% contingency/reserve which provides for costs related to operating the district. Those costs may include, but not be limited to:
 City and/or County fees associated with their oversight and implementation of the District,
 the implementation of the Management District Plan and the Engineer’s Report.  City fees to collect and process the assessments, delinquencies and non-payments. A percentage of the budget is held in reserve to offset delinquent and/or slow payment from both public and private properties. This component also funds the expenses charged by the County of San Bernardino for collection and distribution of DOCBD revenue.  Other unanticipated costs related to the compliance of the Management District Plan and Engineer’s report.
 Funding for renewal of the District;
METHOD OF FINANCING:

The financing of the renewed Downtown Ontario CBD is based upon the levy of special assessments upon real property that receive special benefits from the improvements and activities. There will be five factors used in the determination of proportional benefit to the parcels in the CBD. Those four factors are:
 Linear frontage
 Lot size or the footprint of the parcel
 Building square footage (excluding parking structures built within the building that predominantly serve the tenants of the building and are not open to the public) and  New Residential condominiums built within the District boundaries

PROGRAM & ACTIVITY BUDGET
Each identified assessed parcel within the renewed DOCBD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of District funded services provided, except those tax-exempt owner-occupied parcels which shall only for the direct special benefits they will be receiving along the frontage of their parcels facing streets within the DOCBD. The projected District program special benefit (assessment) cost allocation budget for Year 1 is shown in the following Table:
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13 Year 1 – PROPOSED RENEWAL BUDGET (ASSESSMENT REVENUES) Category of Special Benefit Services
2025
Approximate
Annual Amount
Approximate
Percentage of total
budget
Civil Sidewalks $ 290,000 60%
District Identity/Placemaking $ 96,000 20%
Administration $ 79,000 16%
Contingency $ 21,776 4%
Total $486,776 100%
To carry out the District programs outlined in the previous section, a Year 1 assessment budget of $484,314.00 is projected. Since the District is planned for a 10-year term, projected program costs for future years (Years 2-10) are set at the inception of the District. While future inflationary, new development assessments and other program cost increases are unknown at this point, a built-in maximum increase of 5% per annum, commensurate to special benefits received by each assessed parcel, is incorporated into the projected program costs and assessment rates for the 10-year District term. The District shall adhere to the budget and Management District Plan.

While some variation is permissible to account for unexpected circumstances, the funding allocated to each funding category expressed as a percentage of the total budget, shall not vary by more than 10% of total budget from each year’s percentage in the Management District Plan.

Any proposed variation that exceeds 10% of total budget shall be subject to review and approval of the City Manager’s office. Any surplus or unspent funds, per category, may accumulate year to year over the life of the CBD. A 10-year projected DOCBD budget is shown in the following Table:
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14 YEAR 1-10 PROJECTED DISTRICT ASSESSMENT BUDGET SUMMARY (Special Benefit Costs) (Assumes 5% max rate increase per year)
Year Civil Sidewalks
District Identity and
Placemaking Administration Contingency Total
% 60% 20% 16% 4% 100%
1 $ 290,000.00 $ 96,000.00 $ 79,000.00 $ 21,776.00 $ 486,776.00 2 $ 304,500.00 $ 100,800.00 $ 82,950.00 $ 22,864.80 $ 511,114.80 3 $ 319,725.00 $ 105,840.00 $ 87,097.50 $ 24,008.04 $ 536,670.54 4 $ 335,711.25 $ 111,132.00 $ 91,452.38 $ 25,208.44 $ 563,504.07 5 $ 352,496.81 $ 116,688.60 $ 96,024.99 $ 26,468.86 $ 591,679.27 6 $ 370,121.65 $ 122,523.03 $ 100,826.24 $ 27,792.31 $ 621,263.23 7 $ 388,627.74 $ 128,649.18 $ 105,867.56 $ 29,181.92 $ 652,326.40 8 $ 408,059.12 $ 135,081.64 $ 111,160.93 $ 30,641.02 $ 684,942.72 9 $ 428,462.08 $ 141,835.72 $ 116,718.98 $ 32,173.07 $ 719,189.85 10 $ 449,885.18 $ 148,927.51 $ 122,554.93 $ 33,781.72 $ 755,149.34 The Assessment Engineer (see attached Engineer’s Report) has found that the general benefits (i.e. general benefits to assessed parcels within the District, the general public and surrounding parcels outside the DOCBD) of the proposed programs, services and improvements (i.e. Civil Sidewalks, District Identity and Placemaking, Administration services, and Contingency) represent 2% of the total benefits generated and, in turn, 2% ($ 9,934) of the total adjusted costs of the DOCBD funded improvements, activities and services provided.

Total Year 1 adjusted costs are estimated at $ 496,710. General benefits are factored at 2% of the total adjusted costs ( see Finding 2 in the attached Engineer’s Report) with special benefits set at 98%. Article XIIID Section 4(b) of the California Constitution limits the levy of property assessments to costs attributed to special benefits only. The 2% general benefit cost is computed to be $ 9,934 with a resultant 98% special benefit limit computed at $ 486,776. Based on current property data and land uses, this is the maximum amount of Year 1 revenue that can be derived from property assessments from the subject District.

All program costs associated with general benefits will be derived from sources other than District assessments. Sample “other” revenue sources are shown in the following Table:
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15 Special and General Benefit Revenue Sources
Revenue Source Revenue % of Total
District Assessments $ 486,776 98%
Grants, donations, sponsors, program income, etc. $9,934 2% Total $ 496,710 100.0%
The DOCBD assessments may increase for each individual parcel each year during the 10-year effective operating period, but not to exceed 5% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Planning Report and adopted by the Ontario City Council.

Any accrued interest and delinquent payments will be expended within the budgeted categories.

The Owners’ Association Board of the Directors (Property Owner’s Association of the DOCBD) shall determine the percentage increase to the annual assessment and the methodology employed to determine the amount of the increase. The Owners’ Association Executive Director or staff shall communicate the annual increase to the City each year in which the District operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Ontario.

No bonds are to be issued in conjunction with the proposed renewed District.

Pursuant to Section 36671 of the Streets and Highways Code, any funds remaining after the 5th year of operation will be rolled over into the renewed budget or returned to stakeholders. District assessment funds may be used to pay for costs related to the following District renewed term. If the District is not renewed or terminated for any reason, unexpended funds will be returned to the property owners in the same proportion in which they were collected.

Manner of Collection
Assessments for the County of San Bernardino Property Tax Year fiscal beginning July 1, 2024 and ending June 30, 2034, are proposed to be collected at the same time and in the same manner as ad valorem taxes paid to the County of San Bernardino (Operation Years 2025-2034). The District assessments shall appear as a separate line item on the property tax bills issued by the San Bernardino County Assessor. The City of Ontario is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement this Management District Plan. 1793
16 IV PROPOSED RENEWAL ASSESSMENT FORMULA
The DOCBD programs and services described in this Management District Plan will be funded through benefit assessments against real property in DOCBD and non-assessment revenues to fund the costs associated with general benefits conferred on assessed parcels within the District, the public at large and surrounding parcels outside of the DOCBD boundaries. The assessment formula has been developed to ensure that no parcel will be assessed an amount that exceeds the cost of the proportional special benefit that parcel derives from the programs, services and improvements to be funded by the proposed benefit assessments. The assessment rates are based on the anticipated benefit to be derived by each individual parcel within the boundary of the DOCBD.

Based on the specific needs and corresponding nature of the program activities to be funded by the proposed renewed DOCBD (i.e. Civil Sidewalks, District Identity and Placemaking, Administration services, and contingency), the assessment factors on which to base assessment rates relate directly to the proportionate amount of land area and street frontage within district boundaries.

The “Basic Benefit Units” will be expressed as a combined function of land square footage (Benefit Unit “A”), street frontage (Benefit Unit “B”) and building square footage, (Benefit unit “C”). Based on the shape of the proposed renewed DOCBD, as well as the nature of the District program elements, it is determined that all identified assessed properties will gain a direct and proportionate degree of special benefit based on the respective amount of land area, street frontage and building square footage.

For the array of land uses within the District, the interactive application of land area, street frontage and building square footage quantities are a proven method of fairly and equitably spreading special benefit costs to these beneficiaries of District funded services, programs and improvements. Each of these factors directly relates to the degree of special benefit each assessed parcel will receive from District funded activities.

Land area is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on District funded activities. The targeted weight of this factor, land area, should generate approximately 27% of the total first year District revenue.

Linear Frontage is a direct measure of the static utilization of each parcel and its corresponding impact or draw on District funded activities, many of which are linear in nature (i.e. Landscaping, Sanitation and Beautification). The targeted weight of this factor, street frontage, should generate approximately 36% of the total District revenue.
1794
17 Building Square Footage is a direct measure of the current and future improvements to the building square footage of each parcel and its corresponding impact or draw on District funded activities. The targeted weight of this factor, building square footage, should generate approximately 37% of the total District revenue.

Building square footage that is allocated to parking solely for tenants and is NOT available to the public at any time, at market rates, shall have that portion of the building square footage exempted from the individual parcel’s gross building square footage. This reduction or exemption only applies to the building square footage of structured parking that is not available to public access and use. The individual parcel owner has the responsibility to inform the Management Corporation (Owners Association) if such deductions are applicable since County records to not reveal this information via County tax records.

Enhanced Residential Condominium Unit Improvements: (currently don’t exist within the boundaries of the District)
Future residential condominium development within the boundaries of the District will be assessed separately due to their unique characteristics and special benefit needs. Residential condominiums or town homes will have the following special benefit services conferred on the frontage their parcels. These services may include, but will not be limited to:
 Installation, stocking and upkeep of pet waste stations on the frontages adjacent to high concentrations of residential condominium individually assessed parcels;  Enhancement and beautification of sidewalks on the frontages adjacent to high concentrations of residential individually assessed parcels;  Installation of hanging plants and enhanced upkeep of the sidewalks surrounding frontages adjacent to residential condominiums;
 Other services requested by residents that confer special benefits to the areas directly adjacent to parcels with high concentrations of residential condominiums;  Proportional share of the Administrative and Contingency costs to cover the oversight of enhanced beautification special benefit services.

Considering all identified specially benefiting parcels within the District and their respective assessable benefit units, the rates, cumulative quantities and assessment revenues by factor and zone are shown in the following tables:

Data generated from County records and validated by request of owner verification by mail:

Land Area/Lot size: 2,031,094 feet of assessable land area square footage Linear Frontage: 27,356 linear feet of assessable linear frontage Gross Building Square footage 1,040,518 feet of assessable building square footage Residential Condominiums 0
1795
18 Note: Tax-exempt owner-occupied parcels will only be assessed for the lot square footage and linear frontage of the individual parcels fronting on any street within the boundaries of the DOCBD since civil sidewalks and administration are the only special benefit services that will be provided to those individual parcels according to this Management Plan. The lot square footage and linear frontage will be calculated along the same property lines as adjacent parcels.

Year 1 – Projected DOCBD Assessment Revenue

LAND AREA

ASSMT REVENUE
LINEAR

FRONTAGE
ASSMT

REVENUE

BUILDING SQUARE
FOOTAGE ASSMT.

REVENUE

RESIDENTIAL

CONDOMINIUM
UNIT

REVENUE

SUBTOTAL

ASSMT REVENUE
Revenue $132,074 $ 177,814 $ 176,888 0 $ 486,776
Percentage
of total 27% 36.5% 36.5% 0% 100%
The number of Benefit Units for each identified benefiting parcel within the proposed DOCBD was computed from data extracted from County Assessor records and maps as well as property verification forms mailed out to each parcel owner in the proposed District. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel.

The assessment formula for the proposed renewed DOCBD is as follows:

Assessments = Land Area (Unit A) Sq Ft x Unit A Rate, plus Street Frontage (Unit B) Lin Ft x Unit B Rate, plus
Building Square footage (Unit C) Sq Ft x Unit C rate
YEAR 1 – Assessment Rates
Land Area annual
assessment
Unit A
Linear Frontage
annual assessment
Unit B
Building square forage
annual assessment
Unit C
Residential
Condominiums
$ 0.065 per square foot $ 6.50 per linear foot $0.17 per square foot $0.20 per square foot for building square footage
Changes to Frontage, Building or Lot Parcel Size
Any changes in frontage, building and lot parcel size as a result of all three land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such parcel adjustments.
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19 Other Future Development
Other than future maximum rates with the frontage, building or parcel size assessment methodology delineated in this report, per State Law (Government Code Section 53750), future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Plan would require a new Proposition 218 ballot procedure in order to approve any such changes.

Future Residential Condominium Unit Parcels Defined:

Future residential condominium units building square footage is defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the other commercial parcels within the Downtown Ontario CBD. Unlike the other commercial parcels in the district, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage.

Future residential condominium individually assessed parcels are assessed as a separate category. These future residential condominium individual parcels will be assessed for their building square footage only at the rate of $0.20 per square foot per year, commencing the first year of their completion if the assessment rate has not been adjusted annually as allowed in this plan. The rationale for assessing future residential condominiums only for the building square footage rate is provided below and its cost will be based upon the year that the residential condominium may be completed, (please see chart on page 23).

Residential condominium parcels are assessed differently than multi-unit, for-rent apartment buildings, due to the frequency of special benefit services required by each parcel as described below. The multi-unit apartment buildings are commercial properties in which the tenant and landlord have an economic relationship as opposed to residential condominium buildings where individual property owners own separate “air space parcels” on a single floor. Future residential apartment buildings can be bought or sold just as like commercial buildings whereas residential condominium units are separately owned and must be individually bought and sold.

Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are as follows:

1. The Davis Sterling Act establishes rules and regulations for residential condominium owners based upon “separate interests” (i.e. ownership rights), as opposed to renters who only have a possessory interest.
1797
20 2. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality of life issues due to their investment in real estate.

3. Residential owners have the right to vote in a Proposition 218 hearing, tenants do not have that right.

4. Residential condominium owners are required to contribute to legally renewed Homeowners Associations to oversee building maintenance, tenants are not.

5. Residential tenants may have their dwelling units sold or have their rent raised arbitrarily due the lack of ownership of their residential units.

The assessment methodology has been written to confer special benefits to future residential condominium individual assessed parcels since future residential condominium owners have unique investment backed expectations about the care and maintenance of the building and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest. The future residential condominiums’ special assessment methodology ensures that a fund will be renewed to maintain high levels of special benefit services that apply directly and proportional to the blocks that demand virtually seven days per week, 365 days per year special benefits.

DOCBD – 10-year Maximum Assessment Rates
(Includes a 5%/Yr. Maximum Increase)
Year
Lot Square Foot
Assessment
Rate
Linear Frontage
Assessment Rate
Building Square
Footage Assessment
Rate
Residential
Condominium
(only assessed for
building sq. ft.)
1 $ 0.0650 $ 6.50 $ 0.1700 $ 0.20000 2 $ 0.0683 $ 6.83 $ 0.1785 $ 0.21000 3 $ 0.0717 $ 7.17 $ 0.1874 $ 0.22050 4 $ 0.0752 $ 7.52 $ 0.1968 $ 0.23153 5 $ 0.0790 $ 7.90 $ 0.2066 $ 0.24310 6 $ 0.0830 $ 8.30 $ 0.2170 $ 0.25526 7 $ 0.0871 $ 8.71 $ 0.2278 $ 0.26802 8 $ 0.0915 $ 9.15 $ 0.2392 $ 0.28142 9 $ 0.0960 $ 9.60 $ 0.2512 $ 0.29549 1798
21 10 $ 0.1008 $ 10.08 $ 0.2637 $ 0.31027 SAMPLE DOCBD FIRST YEAR ANNUAL ASSESSMENT CALCULATION:

A 5,000 sq. ft. lot with 50 linear feet in Downtown Ontario in street frontage and a 2,500 square foot building
Land/Lot size square footage: 5,000 x $.065 cents per square foot = $325.00 plus Liner Frontage: 50 linear feet x $6.50 per linear foot = $325.00 plus Building Square Footage 2,500 x $0.17 cents per square foot = $42.50 TOTAL YEAR 1 ASSESSMENT: $ 692.50
Cost Per Month: $ 57.70
Cost Per Day: $ 1.90
A residential condominium, once built, would pay as follows: (based upon the chart above if no annual increases have been applied to the overall budget) Building Square footage: 1,000 square feet x $0.20 per sq. ft. =$200.00 The complete Year 1 – assessment roll of all parcels to be assessed by this CBD is included in this Plan as Appendix I.

V. PUBLICLY OWNED PARCELS
The State Constitution - Article 13D (Proposition 218) states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.” There are 75 publicly owned parcels within the renewed District, all of which are identified as assessable and for which special benefit services will be provided. 55 identified assessed parcels are owned by the City of Ontario, 19 are owned by the City of Ontario Housing Authority, one is owned by the US Postal Service and one is owned by the San Bernardino County Housing 1799
22 Authority. All publicly owned parcels will be assessed as all other commercial parcels are assessed in accordance to this plan, that is on their parcel lot size, linear frontage and building square footage.

Each of these publicly owned parcels will directly receive special benefit from improved Civil Sidewalks, District Identity and Placemaking, Administration services, and contingency.

These 75 identified assessed publicly owned parcels/facilities will specially benefit from DOCBD funded programs and services from cleaner and safer facility entrances and street frontages as well as serve for a better, improved district for the hundreds of City employees and residents in the City, Housing Authority and Postal Service owned parcels.

In the opinion of the Assessment Engineer, there is no evidence that these 75 publicly owned parcels will not proportionately specially benefit from District services, programs and improvements; therefore, each publicly owned parcel will be assessed at the rates with assessments to be based on the lot square footage area, street linear frontage and building square footage of each parcel. The Table below lists all publicly owned parcels within the proposed renewed DOCBD and their Year 1 assessment amounts:

City of Ontario, Ontario Housing Authority, San Bernardino County Housing Authority and US Postal Service Publicly owned parcels
APN Legal Owner Site Address Annual
Assessment
1048-354-12-0000 CITY OF ONTARIO D ST $ 3,743.22 1048-354-13-0000 CITY OF ONTARIO LAUREL AVE $ 882.70 1048-355-02-0000 CITY OF ONTARIO $ 862.49 1048-355-11-0000 CITY OF ONTARIO $ 1,041.11 1048-356-08-0000 CITY OF ONTARIO 603 N EUCLID AVE $ 784.30 1048-356-11-0000 CITY OF ONTARIO F ST $ 994.44 1048-363-02-0000 CITY OF ONTARIO PARKING LOT $ 5,147.09 1048-363-03-0000 CITY OF ONTARIO PARKING LOT $ 2,204.28 1048-363-04-0000 CITY OF ONTARIO 404 N EUCLID AVE $ 3,772.70 1048-363-05-0000 CITY OF ONTARIO 414 N EUCLID AVE $ 9,198.98 1048-551-10-0000 CITY OF ONTARIO 116 E D ST $ 5,824.13 1048-552-13-0000 CITY OF ONTARIO 126 E C ST $ 5,796.64 1048-552-14-0000 CITY OF ONTARIO 124 E C ST $ 1,871.74 1048-552-18-0000 CITY OF ONTARIO N EUCLID $ 142.29 1048-553-02-0000 CITY OF ONTARIO 118 E B ST $ 1,620.74 1048-553-03-0000 CITY OF ONTARIO B ST $ 864.24 1048-553-04-0000 CITY OF ONTARIO 127 N LEMON AVE $ 2,014.74 1048-553-16-0000 CITY OF ONTARIO 126 N EUCLID AVE $ 1,329.51 1048-553-17-0000 CITY OF ONTARIO 128 N EUCLID AVE $ 3,912.85 1048-562-01-0000 CITY OF ONTARIO 215 W C ST $ 9,035.13 1048-563-06-0000 CITY OF ONTARIO HOLT BLVD $ 2,077.73 1048-564-03-0000 CITY OF ONTARIO 139 N EUCLID AVE $ 4,507.80 1800
23 1048-564-05-0000 CITY OF ONTARIO 125 N EUCLID AVE $ 952.50 1048-564-06-0000 CITY OF ONTARIO 121 N EUCLID AVE $ 904.28 1048-564-13-0000 CITY OF ONTARIO LAUREL AVE $ 786.44 1048-564-14-0000 CITY OF ONTARIO LAUREL AVE $ 1,235.78 1048-565-01-0000 CITY OF ONTARIO 127 W C ST $ 3,411.72 1048-565-02-0000 CITY OF ONTARIO 115 W C ST $ 688.50 1048-565-03-0000 CITY OF ONTARIO 245 N EUCLID AVE $ 7,936.01 1048-565-09-0000 CITY OF ONTARIO 207 N EUCLID AVE $ 1,406.70 1048-565-13-0000 CITY OF ONTARIO LAUREL AVE $ 1,029.34 1048-565-14-0000 CITY OF ONTARIO LAUREL AVE $ 549.12 1048-566-01-0000 CITY OF ONTARIO 123 W D ST $ 1,274.00 1048-566-02-0000 CITY OF ONTARIO 123 W D ST $ 1,903.11 1048-566-03-0000 CITY OF ONTARIO $ 864.24 1048-566-08-0000 CITY OF ONTARIO 301 W C ST $ 156.00 1048-566-09-0000 CITY OF ONTARIO W C ST $ 1,603.03 1048-566-10-0000 CITY OF ONTARIO LAUREL AVE $ 2,014.74 1048-566-11-0000 CITY OF ONTARIO 324 N LAUREL AVE $ 1,116.10 1049-056-01-0000 CITY OF ONTARIO 221 W TRANSIT ST $ 2,640.63 1049-056-02-0000 CITY OF ONTARIO 211 W TRANSIT ST $ 628.68 1049-056-03-0000 CITY OF ONTARIO W TRANSIT ST $ 628.68 1049-056-04-0000 CITY OF ONTARIO 200 S LAUREL AVE $ 1,322.10 1049-056-05-0000 CITY OF ONTARIO 208 W EMPORIA ST $ 5,164.63 1049-056-06-0000 CITY OF ONTARIO 228 W EMPORIA ST $ 2,614.63 1049-057-06-0000 CITY OF ONTARIO W TRANSIT ST $ 1,378.00 1049-057-07-0000 CITY OF ONTARIO 206 W TRANSIT ST $ 567.00 1049-058-02-0000 CITY OF ONTARIO W TRANSIT ST $ 772.01 1049-059-14-0000 CITY OF ONTARIO EMPORIA ST $ 5,193.70 1049-062-01-0000 CITY OF ONTARIO 225 S EUCLID AVE $ 7,333.16 1049-062-02-0000 CITY OF ONTARIO TRANSIT ST $ 5,205.20 1049-063-02-0000 CITY OF ONTARIO 214 E HOLT BLVD $ 3,449.12 1049-064-12-0000 CITY OF ONTARIO $ 524.16 1049-064-13-0000 CITY OF ONTARIO 217 S LEMON AVE $ 2,782.42 1049-064-14-0000 CITY OF ONTARIO 204 E TRANSIT ST $ 8,225.17 TOTAL $ 143,889.68
1048-551-11-0000 ONTARIO HOUSING AUTHORITY 312 N EUCLID AVE $ 4,211.09 1048-551-12-0000 ONTARIO HOUSING AUTHORITY 334 N EUCLID AVE $ 3,246.10 1048-551-13-0000 ONTARIO HOUSING AUTHORITY 127 E C ST $ 1,756.95 1048-552-15-0000 ONTARIO HOUSING AUTHORITY C ST $ 223.54 1048-552-17-0000 ONTARIO HOUSING AUTHORITY 240 N EUCLID AVE $ 3,287.55 1048-552-24-0000 ONTARIO HOUSING AUTHORITY $ 2,849.08 1048-553-01-0000 ONTARIO HOUSING AUTHORITY W B ST $ 1,685.71 1048-553-05-0000 ONTARIO HOUSING AUTHORITY 115 N LEMON AVE $ 634.40 1048-553-06-0000 ONTARIO HOUSING AUTHORITY 127 E HOLT BLVD $ 1,268.15 1048-553-07-0000 ONTARIO HOUSING AUTHORITY 123 E HOLT BLVD $ 486.92 1048-553-08-0000 ONTARIO HOUSING AUTHORITY 121 E HOLT BLVD $ 782.02 1048-553-09-0000 ONTARIO HOUSING AUTHORITY E HOLT BLVD $ 413.14 1048-553-10-0000 ONTARIO HOUSING AUTHORITY E HOLT BLVD $ 1,112.80 1048-553-11-0000 ONTARIO HOUSING AUTHORITY N EUCLID AVE $ 455.39 1801
24 1048-553-12-0000 ONTARIO HOUSING AUTHORITY 110 N EUCLID AVE $ 455.39 1048-553-13-0000 ONTARIO HOUSING AUTHORITY 112 N EUCLID AVE $ 2,610.78 1048-553-14-0000 ONTARIO HOUSING AUTHORITY 118 N EUCLID AVE $ 485.42 1048-553-15-0000 ONTARIO HOUSING AUTHORITY 122 N EUCLID AVE $ 1,110.88 TOTAL $ 27,075.29
1049-058-03-0000 SAN BERNARDINO COUNTY HOUSING
AUTH
200 S EUCLID AVE
$ 5,450.32
1049-057-01-0000 UNITED STATES OF AMERICA 123 E HOLT BLVD $ 4,266.08 VI. DOCBD DISTRICT GOVERNANCE
The governance or management of a CBD typically requires an “Owners’ Association” to carry out the CBD services and activities. State CBD Law (36600 Streets & Highways Code) also requires that the Owner’s Association carry out specific additional functions. This includes preparation of an Annual Report to the City Council on the CBD activities for the past fiscal year and those proposed for the next fiscal year. The Owner’s Association may also recommend to the City Council from time to time, changes to the CBD boundaries, assessment formula or CBD programs and activities, all subject to public notification and, in some cases petition/balloting requirements.

Meetings of the Owners’ Association and its standing Committees shall be subject to the State of California “Brown Act” open meeting law. Since the establishment of the DOCBD, by a vote of the affected property owners in 2019, the Owners Association has now incorporated into a public benefit, non-profit organization (501c3), named the Downtown Ontario Improvement Association.

VII. P ROPOSED RULES AND REGULATION APPLIED TO THE DISTRICT There are no specific rules or regulations applied to this CBD or its Owners’ Association.

VIII. OTHER ITEMS
No bonds will be issued for any DOCBD projects in conjunction with this formation. 1802
25 IX. I MPLEMENTATION TIMETABLE
Task Timeline
The DOCBD Renewal Committee
approves the rough draft
DOCBD Renewal Management
Plan
The Renewal Committee approves the preliminary plan in July including boundaries, budget, the percentage allocation of each special service category, management and term.

Management District Plan
(MDP) submitted to City and
Assessment Engineer
The state constitution requires that the Management District Plan be certified as compliant with Proposition 218 by an Assessment Engineer. The Plan must also be approved by the City Attorney and City Manager. Estimated time for completion of this process is the middle of August.

Management District Plan is
approved by the City Attorney
and Assessment Engineer and
petition drive is launched
We anticipate the petition drive to be launched by the CBD Steering Committee in late August , with the target completion date by the beginning of September. 50% of the assessment amount paid by property owners must sign a petition endorsing the DOCBD Renewal Plan to initiate a mail balloting procedure of property owners
Resolution of Intent In mid-September, the City Council will receive a staff report and consider and adopt a “Resolution of Intent” to form the Downtown CBD. The requisite number of weighted petitions must be submitted to the City to trigger this process and allow the balloting to proceed. The City Council would then instruct the City Clerk to mail ballots to all affected property owners within the CBD boundaries. The ballots will be due by the public hearing date and will allow each property owner to vote yes or no on the mail ballot.

Public Hearing It is anticipated that the public hearing will be held the middle of November. Testimony will be given by property owners and the City Clerk will open and calculate the ballots. The DOCBD may be formed if the weighted majority of returned, signed ballots support the formation of the district.

Resolution of Formation Once the weighted return ballots are calculated and demonstrate support for the formation of the Downtown CBD, the City Council may then adopt a “Resolution of Formation” to create the CBD. The City Council may vote to levy the assessments on the benefitting parcels.

First assessments transferred The first assessment billings would be due with the December 2024 property tax bills. The first assessments will be transferred from the City to the Downtown Ontario Improvement Association after the first installments of assessments were collected by the County and the City in December 2024 or January 2025
1803
26 APPENDIX 1
YR 1

ASSESSMENT ROLL
1804
27 APN Annual Assessment
1048-354-01-0000 $1,960.27
1048-354-02-0000 $3,974.53
1048-354-03-0000 $3,264.84
1048-354-04-0000 $1,112.13
1048-354-05-0000 $328.50
1048-354-06-0000 $430.85
1048-354-07-0000 $1,844.41
1048-354-08-0000 $701.80
1048-354-09-0000 $1,112.13
1048-354-10-0000 $982.39
1048-354-11-0000 $4,234.00
1048-354-12-0000 $3,743.22
1048-354-13-0000 $882.70
1048-355-02-0000 $862.49
1048-355-03-0000 $2,342.43
1048-355-04-0000 $1,360.80
1048-355-05-0000 $738.79
1048-355-06-0000 $934.77
1048-355-07-0000 $1,830.21
1048-355-08-0000 $1,425.51
1048-355-11-0000 $1,041.11
1048-355-13-0000 $983.12
1048-355-15-0000 $4,493.66
1048-355-16-0000 $3,041.32
1048-356-01-0000 $4,154.59
1048-356-02-0000 $3,496.54
1048-356-03-0000 $1,278.58
1048-356-04-0000 $1,356.52
1048-356-05-0000 $3,018.78
1048-356-06-0000 $753.23
1048-356-07-0000 $455.39
1048-356-08-0000 $784.30
1048-356-09-0000 $1,251.60
1048-356-10-0000 $484.38
1048-356-11-0000 $994.44
1048-356-12-0000 $2,878.98
1048-356-13-0000 $1,116.22
1048-361-01-0000 $3,573.33
1048-361-02-0000 $811.27
1048-361-03-0000 $775.45
1048-361-04-0000 $2,048.49
1048-361-05-0000 $1,189.46
1048-361-06-0000 $919.88
1048-361-07-0000 $2,195.42
1048-361-08-0000 $2,755.52
1048-361-09-0000 $2,836.22
1048-361-10-0000 $1,805.49
1048-361-11-0000 $910.78
1048-361-12-0000 $913.58
1048-362-02-0000 $828.23
1048-362-03-0000 $4,454.64
1048-362-04-0000 $1,433.73
1048-362-05-0000 $1,783.34
1048-362-06-0000 $1,209.90
1048-362-07-0000 $2,835.72
1048-362-08-0000 $3,252.49
1048-362-09-0000 $2,195.83
1048-362-10-0000 $913.58
1048-363-01-0000 $1,390.84
1048-363-02-0000 $5,147.09
1048-363-03-0000 $2,204.28
1048-363-04-0000 $3,772.70
1048-363-05-0000 $9,198.98
1048-551-10-0000 $5,824.13
1048-551-11-0000 $4,211.09
1048-551-12-0000 $3,246.10
1048-551-13-0000 $1,756.95
1048-552-13-0000 $5,796.64
1048-552-14-0000 $1,871.74
1048-552-15-0000 $223.54
1048-552-17-0000 $3,287.55
1048-552-18-0000 $142.29
1048-552-22-0000 $3,438.35
1048-552-23-0000 $116.09
1048-552-24-0000 $2,849.08
1048-553-01-0000 $1,685.71
1048-553-02-0000 $1,620.74
1048-553-03-0000 $864.24
1048-553-04-0000 $2,014.74
1048-553-05-0000 $634.40
1048-553-06-0000 $1,268.15
1048-553-07-0000 $486.92
1048-553-08-0000 $782.02
1048-553-09-0000 $413.14
1048-553-10-0000 $1,112.80
1048-553-11-0000 $455.39
1048-553-12-0000 $455.39
1048-553-13-0000 $2,610.78
1048-553-14-0000 $485.42
1048-553-15-0000 $1,110.88
1048-553-16-0000 $1,329.51
1048-553-17-0000 $3,912.85
1048-561-07-0000 $2,595.63
1048-561-08-0000 $2,393.64
1048-561-09-0000 $1,104.65
1048-561-10-0000 $864.24
1048-561-11-0000 $1,547.80
1048-561-12-0000 $1,275.00
1048-561-13-0000 $26,251.98
1805
28 1048-562-01-0000 $9,035.13
1048-562-02-0000 $2,725.00
1048-562-03-0000 $8,005.88
1048-562-06-0000 $866.87
1048-562-07-0000 $1,952.08
1048-563-01-0000 $1,736.72
1048-563-02-0000 $864.24
1048-563-03-0000 $2,878.87
1048-563-06-0000 $2,077.73
1048-563-07-0000 $1,678.02
1048-563-08-0000 $4,566.12
1048-563-09-0000 $851.24
1048-563-10-0000 $2,014.74
1048-563-11-0000 $595.80
1048-563-12-0000 $1,400.15
1048-563-13-0000 $4,259.19
1048-564-01-0000 $2,814.16
1048-564-02-0000 $3,707.32
1048-564-03-0000 $4,507.80
1048-564-04-0000 $1,505.63
1048-564-05-0000 $952.50
1048-564-06-0000 $904.28
1048-564-07-0000 $3,069.81
1048-564-08-0000 $846.02
1048-564-09-0000 $1,416.28
1048-564-10-0000 $2,234.65
1048-564-11-0000 $1,486.98
1048-564-12-0000 $3,441.42
1048-564-13-0000 $786.44
1048-564-14-0000 $1,235.78
1048-565-01-0000 $3,411.72
1048-565-02-0000 $688.50
1048-565-03-0000 $7,936.01
1048-565-04-0000 $663.84
1048-565-05-0000 $2,654.72
1048-565-06-0000 $2,238.82
1048-565-07-0000 $1,091.90
1048-565-08-0000 $1,038.80
1048-565-09-0000 $1,406.70
1048-565-10-0000 $3,079.24
1048-565-11-0000 $7,483.42
1048-565-12-0000 $1,545.72
1048-565-13-0000 $1,029.34
1048-565-14-0000 $549.12
1048-566-01-0000 $1,274.00
1048-566-02-0000 $1,903.11
1048-566-03-0000 $864.24
1048-566-04-0000 $4,036.16
1048-566-05-0000 $8,045.11
1048-566-06-0000 $1,749.88
1048-566-07-0000 $4,225.68
1048-566-08-0000 $156.00
1048-566-09-0000 $1,603.03
1048-566-10-0000 $2,014.74
1048-566-11-0000 $1,116.10
1049-055-01-0000 $3,378.04
1049-055-02-0000 $1,151.43
1049-055-03-0000 $1,349.84
1049-055-04-0000 $1,288.51
1049-055-05-0000 $1,338.18
1049-055-06-0000 $1,170.07
1049-055-07-0000 $577.40
1049-055-08-0000 $591.57
1049-055-09-0000 $4,541.39
1049-056-01-0000 $2,640.63
1049-056-02-0000 $628.68
1049-056-03-0000 $628.68
1049-056-04-0000 $1,322.10
1049-056-05-0000 $5,164.63
1049-056-06-0000 $2,614.63
1049-057-01-0000 $4,266.08
1049-057-02-0000 $1,404.58
1049-057-03-0000 $2,256.24
1049-057-04-0000 $1,565.90
1049-057-05-0000 $4,643.50
1049-057-06-0000 $1,378.00
1049-057-07-0000 $567.00
1049-058-01-0000 $3,463.82
1049-058-02-0000 $772.01
1049-058-03-0000 $5,450.32
1049-058-04-0000 $2,664.16
1049-058-05-0000 $2,859.89
1049-059-07-0000 $736.84
1049-059-08-0000 $1,504.80
1049-059-09-0000 $893.10
1049-059-14-0000 $5,193.70
1049-059-21-0000 $7,574.38
1049-061-01-0000 $13,936.41
1049-061-02-0000 $4,088.24
1049-061-03-0000 $603.72
1049-062-01-0000 $7,333.16
1049-062-02-0000 $5,205.20
1049-063-01-0000 $2,762.49
1049-063-02-0000 $3,449.12
1049-063-03-0000 $385.06
1049-063-04-0000 $750.62
1049-063-05-0000 $1,490.66
1049-063-06-0000 $1,791.56
1049-063-07-0000 $881.81
1049-063-08-0000 $1,210.37
1806
29 1049-063-09-0000 $1,225.84
1049-063-10-0000 $1,281.84
1049-064-12-0000 $524.16
1049-064-13-0000 $2,782.42
1049-064-14-0000 $8,225.17
1807

NOTICE OF BALLOT TO RENEW THE

DOWNTOWN ONTARIO COMMUNITY BENEFIT DISTRICT
This Notice is for the owner of the property designated on the official assessment ballot on the following page within the City of Ontario (City) Downtown Ontario Community Benefit District (District). This is your official property owner assessment ballot regarding the renewal of the District and the levy of annual assessments to fund the ongoing expenses associated with the maintenance of improvements within the District, including civil sidewalk maintenance, District identity and place-making, administration services, and to fund a contingency/reserve account. The total amount of the assessment for the entire District is $486,776 for the first year. The assessment is determined based on square footage, lot size, and linear frontage of each property and is further defined in the Engineer’s Report on file with the City Clerk. The duration of the assessment is 10 years, commencing with the fiscal year beginning July 1, 2024, for services provided after adoption of the assessment. For further information about the District, assessments, and services to be provided, please see the Management District Plan, enclosed herewith, and the Engineer’s Report, on file with the City.

This is an annual assessment that will be collected as part of your County property tax bill. The assessment listed on the ballot is the maximum assessment rate for fiscal year 2024-2025. The maximum assessment may be increased by up to 5% per year to account for increased costs. However, the maximum assessment rate applied each year shall be based on budgeted expenses (which may be less), but in no case, shall the assessments exceed the proportionate special benefit conferred on any parcel or the allowable adjusted maximum assessment rate without the approval of the property owners.

Prior to the public hearing, completed ballots may be personally delivered or mailed to the City Clerk’s Office at the City of Ontario, 303 E. B Street, Ontario, CA 91764. A return envelope specifically for this ballot proceeding has been provided for your convenience that is addressed to the City of Ontario. You may also personally present completed ballots to the City Clerk at the public hearing on Tuesday, January 16, 2024 at 6:30 PM. The City Clerk must receive all ballots no later than the end of the public testimony portion of the public hearing on Tuesday, January 16, 2024. If you damage or misplace your ballot, a replacement ballot can be obtained by contacting the City Clerk’s Office as indicated below.

Only ballots issued by the City are considered valid ballots (copies or facsimiles are not valid ballots). Any ballot returned unmarked or unsigned, or not received by the City Clerk before the close of the public hearing, will be rejected and not counted. The public hearing will be closed when public testimony on the proposed renewal of the District is concluded. Only valid ballots received by the City Clerk before the close of the public hearing shall be counted.

All submitted ballots must be clearly marked to indicate either “Yes -- In Favor of the Assessment” or “No -- Opposed to the Assessment” and signed; otherwise the ballot will be rejected and not counted. To ensure the privacy of your ballot prior to the tabulation, please return your ballot in the envelope provided, or in a sealed envelope that indicates that a ballot is enclosed by noting on the front of the envelope “Assessment Ballot -- Do Not Open”. A ballot previously submitted may be withdrawn at any time prior to the close of the public hearing by submitting a request to the City Clerk, by the person(s) that signed the submitted ballot. An assessment ballot may be changed at any time prior to the close of the public hearing by requesting a withdrawal of the previous ballot and requesting a replacement ballot. Only the person(s) signing the ballot may make such a request. The replacement ballot must be received by the City Clerk prior to the deadline set forth herein.

At the conclusion of the public hearing, the City Clerk will tabulate the assessment ballots submitted, and not withdrawn, in support of or opposition to the proposed assessment. A majority protest will exist if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessments exceed the assessment ballots submitted, and not withdrawn, in favor of the proposed assessments, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot is submitted. If there is a majority protest against the levy of the proposed assessments in the District, the City Council will not levy the amount of the assessments on parcels of property in the District.

If you have questions prior to the public hearing, you may contact the City Clerk’s office at a 909-395-2009.1808 1809

PROPOSED BOUNDARIES OF ONE SHEET ONLY
DOWNTOWN ONTARIO DISTRICT l) AILED N THE OFFICE OF THE( CLERK OF THE LEGISLATIVE BODY) THIS II DAY OF Cg, 201J.

CITY OF ONTARIO, COUNTY OF SAN BERNARDINO, l)
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STATE OF CALIFORNIA. 2) 1 HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OF DOWNTOWN ONTARIO

DISTRICT, CITY OF ONTARIO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WAS APPROVED BY THE

TAXES LEVIED BY THIS DISTRICT MAY BE
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EFFECTIVE JANUARY 2015. THE SAN BERNARDINO COUNTY RECORDER' S CERTIFICATE MUST APPEAR ON ALL MAPS Lf1Il l/ J JlJ . 7 /" 1IYl. GJ

SUBMITTED FOR RECORDING AND BE IN THE FOLLOWING FORMAT REFERENCED BELOW, FAILURE TO FOLLOW THIS REQUIREMENT MAY ADVERSELY AFFECT THE RECORDING PROCESS OF YOUR MAP. 2019- 0467247 THE RECORDER' S CERTIFICATE SHALL BE IN THE LOWER OR UPPER RIGHT- HAND CORNER WHENEVER PRACTICAL, Bob Dui Len
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1810
1811
1812
1813
1814
1815
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, TO RENEW THE DOWNTOWN ONTARIO COMMUNITY

BENEFIT DISTRICT AND TO LEVY AND COLLECT ASSESSMENTS

WITHIN SUCH DISTRICT PURSUANT TO THE ESTABLISHMENT OF
PROPERTY BUSINESS IMPROVEMENT DISTRICTS – SECTION 36600

OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND TAKING
OTHER ACTIONS THERETO.

WHEREAS, The Property Business Improvement District Ordinance of 1994, (the “Law”) authorizes cities to establish, in perpetuity, Property Business Improvement Districts (“PBID”) to promote the economic revitalization and physical maintenance of mixed use and business districts; and
WHEREAS, The Law authorizes cities to levy and collect assessments on real property within such districts for the purpose of providing improvements and promoting activities that specially benefit real property within such districts; and WHEREAS, No real properties deriving special benefit within the Downtown Ontario Community Benefit District (“District” or “CBD”) will be exempted from payment of assessments imposed by the CBD; and
WHEREAS, Articles XIIIC and XIIID of the California Constitution and Section 53753 of the California Government Code impose certain procedural and substantive requirements relating to the levy of new or increased assessments; and WHEREAS, Petitions were signed by property owners in the CBD proposed for renewal who will pay more than fifty percent (50%) of the assessments to be levied; and WHEREAS, On November 7, 2023 the City Council adopted a Resolution of Intention (2023-147) to renew the CBD, levy assessments on CBD property owners and direct the City Clerk to mail ballots to all affected property owners within the proposed CBD boundaries, which Resolution was entitled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, STATING ITS INTENTION TO RENEW THE DOWNTOWN

ONTARIO COMMUNITY BENEFIT DISTRICT AND TO LEVY AND

COLLECT ASSESSMENTS WITHIN SUCH DISTRICT PURSUANT TO

THE ESTABLISHMENT OF PROPERTY BUSINESS IMPROVEMENT
DISTRICTS, SECTION 36600 OF THE CALIFORNIA STREETS AND

HIGHWAYS CODE, AND APPOINTING A TIME AND PLACE FOR
HEARING OBJECTIONS THERETO.

WHEREAS, A Management District Plan entitled the “Downtown Ontario Community Benefit District Management District Plan” (the “Management District Plan”) has been approved and submitted to the City Clerk, containing all of the information 1816
required by Section 36622 of the California Streets and Highways Code, Section 36600, and the local Law, including a description of the boundaries of the CBD, the improvements and activities proposed for the CBD, and the cost of such improvements and activities; and
WHEREAS, A detailed Assessment Engineer's Report, dated September 14, 2023 has been approved and submitted to the City Clerk, as prepared by Edward V. Henning, California Registered Professional Engineer No. 26549, entitled "Downtown Ontario Community Benefit District Renewal Assessment Engineer's Report" (the “District Assessment Engineer’s Report”), supporting the assessments within the proposed CBD for renewal; and
WHEREAS, Ballots have been mailed and submitted by CBD property owners requesting the City Council to initiate proceedings pursuant to the Law to renew the District for a ten (10) year term; and
WHEREAS, A public hearing concerning the renewal of the Downtown Ontario Community Benefit District and the proposed levy of assessments within such District was held on January 16, 2024 at 6:30 PM at the Ontario City Hall Council Chambers located at 303 East B Street, Ontario, CA 91764; and
WHEREAS, At the public hearing, the testimony of all interested persons for or against the proposed renewal of the CBD and the levy of assessments on property within the CBD, was heard and considered; and
WHEREAS, The City Council heard and considered all objections or protests to the proposed assessments and the City Clerk tabulated the assessment ballots submitted and not withdrawn, in support of or in opposition to the proposed assessments, and the City Clerk determined that a majority of the ballots cast (weighted according to the proportional financial obligations of the property) by the owners of record of the property located within the District did not oppose renewing the proposed District; and WHEREAS, The City Council now desires to renew the CBD for an additional ten (10) year period.

NOW THEREFORE, the City of Ontario City Council hereby resolves the following:

SECTION 1. RECITALS.

The foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. MANAGEMENT DISTRICT PLAN, DISTRICT ASSESSMENT ENGINEER'S REPORT, AND BOUNDARIES MAP.

The City Council hereby approves the Management District Plan and District Assessment Engineer's Report, including the estimate of the costs of the property-related services, activities and improvements set forth in the plan, and the assessment of said costs on the properties that will specially benefit from such services, activities, and improvements. The Council also hereby approves the boundaries, showing the exterior 1817
boundaries of the District. A copy of the Management District Plan, the District Assessment Engineer's Report, and the Boundaries Map are on file with the City Clerk, which is hereby declared to be a part of this Resolution as if set forth fully herein.

SECTION 3. FINDING OF NO MAJORITY PROTEST.

The City Council hereby finds that ___% of the ballots submitted, representing $_______ of the total assessment of $__________, were submitted in favor of the proposed assessment and renewal of the CBD. The City Council further finds that ___% of the ballots submitted, representing $_______ of the total assessment of $__________, were submitted in opposition to the proposed assessment and renewal of the CBD.

Therefore, the City Council hereby finds that a majority protest does not exist as defined in Section 4(e) of Article XlllD of the California Constitution and Section 53753 of the California Government Code with respect to the renewal of the Downtown Ontario Community Benefit District. All objections or protests both written and oral, are hereby duly overruled.

SECTION 4. RENEWAL OF THE DISTRICT.

Pursuant to the local Law and Section 36621(a) of the California Streets and Highways Code the City Council declares the renewal of the Downtown Ontario Community Benefit District and to levy and collect assessments against lots and parcels of real property within the District commencing with Fiscal Year 2024-25.

SECTION 5. DESCRIPTION OF DISTRICT.

The boundaries of the renewed District generally include all properties listed within the boundaries of the map on file in the Management District Plan filed in the City Clerk’s office. The District will levy an assessment on all taxable property receiving special benefit within the District boundaries.

SECTION 6. FINDING OF BENEFIT.

The City Council hereby finds that the properties within the District will be specially benefited by the improvements and activities funded by the assessments proposed to be levied.

SECTION 7. SYSTEM OF ASSESSMENTS.
(a) Annual assessments will be levied to pay for the services and activities to be provided within the District, commencing with FY 2024-2025, and continuing for ten (10) years, ending with FY 2033-2034. For purposes of levying and collecting assessments within the District, a fiscal year shall commence on each July 1st and end on the following June 30th.
(b) The amount of the proposed assessments to be levied and collected for FY 2024-2025 shall be $486,776.00 (as shown in the Management District Plan and District Assessment Engineer's Report). The amount of assessments to be levied and collected in fiscal years two through ten may be increased annually by the Downtown Ontario Community Benefit District Corporation Board of Directors by an amount not to exceed five (5) percent per year provided, however, assessments shall not be increased to exceed the proportionate special benefit conferred on any parcel. The amount levied in any year shall be equal to the total amount of special benefit conferred on property within the CBD. 1818
(c) The method and basis of levying and collecting the assessment shall be as set forth in the Management District Plan and District Assessment Engineer’s Report.

SECTION 8. USE OF REVENUES.

The improvements, services, and activities to be conferred on properties in the District will be funded by the levy of the assessments. The revenue from the levy of assessments within the District shall not be used to issue bonds or provide improvements, services, or activities outside the boundaries of the District or for any purpose other than the purposes specified in the Resolution of Intention. Bonds will not be issued.

The proposed activities for the District may include sidewalk cleaning, private security, beautification, marketing and promotional activities, administration of the services, public space development and enhancement for residential property owners in the District, and the funding of a contingency/reserve account. All proposed services and improvements benefit real property owners located in the District.

SECTION 9. AUTHORITY TO CONTRACT.

The City Council may contract with a separate private entity to administer the improvements, services and activities set forth in Section 7 of this Resolution, as provided in California Streets and Highways Code, Sections 36612 and 36650.

SECTION 10. AMENDMENTS.

The properties in the CBD established by this Resolution shall be subject to any amendments to the Property Business Improvement District Ordinance of 1994.

SECTION 11. RECORDATION OF NOTICE AND DIAGRAM.

The City Clerk is hereby authorized and directed to record a notice and an assessment diagram pursuant to Section 36627 of the California Streets and Highways Code, following adoption of this Resolution.

SECTION 12. LEVY OF ASSESSMENT.

The adoption of this Resolution and recordation of the notice and assessment diagram pursuant to Section 36627 of the California Streets and Highways Code constitutes the levy of an assessment in each of the fiscal years referred to in the Management District Plan. Each year, the Assessor shall enter on the County Assessment Roll opposite each lot or parcel of land the amount of the assessment and such assessment shall be collected in the same manner as the County property taxes are collected.

SECTION 13. EFFECTIVE DATE OF RESOLUTION.

This Resolution shall become effective immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
1819
PASSED, APPROVED, AND ADOPTED at a regular meeting this 16 th day of January 2024.
_____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
1820

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. 2024-______ was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held January 16, 2024 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. 2024-_____ duly passed and adopted by the Ontario City Council at their regular meeting held January 16, 2024. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
1821

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