Light spill to the neighboring areas should be
minimized where feasible.
• Shielded fixtures that minimize sky
Figure 32: Reeds and Grasses Palette
glow, glare, and light trespass should be
used. While up-lighting may be allowed to
accentuate certain architectural features and
landscaping, care should be taken to make
sure that such features minimize sky glow.
• Lighting fixtures should complement
the façade and be of a style that suits the
architectural style of the building.
• The use of energy-efficient light-emitting
diode (LED) lighting fixtures should be
considered to reduce energy consumption
and maintenance costs.
• Motion sensors should be installed where
appropriate to activate lighting only when
needed, promoting energy conservation.
• Lighting provision during project
construction should be in accordance with
Ontario Municipal Code, Title 4, Chapter
11, Section 4-11.11, Construction site security
provisions.
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52 EMPIRE GROVES SPECIFIC PLAN
5.2.6 Sign Program
Informational signs may be installed throughout
the Specific Plan Area to provide information
about the businesses, such as development
name, logo, conference center, and retail uses
as well as for general advertising or marketing
purposes. Other directional and wayfinding
signage may be provided in addition to
informational signs. Below are the signage
guidelines to assist with the review and approval
of proposed project signage. An exhibit detailing
the locations and types of signs will be required
as part of the review and approval process
for the project’s sign program which shall
comply with Chapter 8 of the City of Ontario’s
Development Code, as further outlined in
Chapter 5.2.6.2 Sign Program Approval Process,
herein.
Digital Advertising Signs are allowed integrated
into the design of the building. The Digital
Advertising Signs may display products, brands,
and businesses associated with the commercial
uses in the development as well as offsite
advertisements, City sponsored events, and
public service announcements. An approved
Development Agreement or Master Sign
Program and user agreement shall be required
in accordance with the Ontario Development
Code to establish development standards for
design, approved content, sign area, location
and use.
5.2.6.1 Signage Guidelines
• Signage may display messages or images
utilizing a series or grid of lights that may
be changed by electronic means, including
cathode ray, LED display, plasma screen,
liquid crystal display (LCD), LED embedded,
architectural glass fiber optic, or other
electronic media or technology.
• Signs may be illuminated by external and/
or internal light sources.
• Use of exposed neon lighting and fiber
optics shall be prohibited.
• Signage colors, materials, and finishes shall
complement those used on the architecture
on-site.
• No sign shall be installed, relocated, or
maintained so as to prevent entry or exit out
of any door.
• No sign installation shall create a safety
hazard by obstructing views of pedestrian
and vehicular traffic.
• Any sign installation in a pedestrian
pathway shall leave a clear 5-foot space for
pedestrian movement.
• No signs shall be located within a required
easement unless an encroachment permit
has been authorized by the affected utility.
• No sign shall obstruct access to fire
hydrants, fire department connection, or fire
department access roads.
• Signs that audibly advertise, identify, or
provide direction to a use or activity are
prohibited.
• Signs exhibiting or displaying content of
an obscene, indecent, or immoral nature or
unlawful activity are prohibited.
• Entry monument signage may be used to
identify each development in the Specific
Plan Area. Entry monuments shall be
designed in accordance with City of Ontario
Traffic and Transportation Guidelines for
monument placement.
• Signage shall be employed to identify
a center and tenants within a center,
direct vehicular traffic, and provide on-site
wayfinding for pedestrians.
• Each business is permitted one wall sign
on each side that is visible from the street,
size and placement of these signs will
be reviewed as part of the sign program
approval process.
5.2.6.2 Sign Program Approval Process
The developer will submit a sign program
for projects in the Specific Plan Area in
accordance with City requirements. The
discretionary approval of a sign program will
be in accordance with the of the City of Ontario
Development Code.
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53 05 | DESIGN GUIDELINES
Deviations from the sign program may be
allowed to accommodate the design guidelines
in Section 5.2.5 Signage Guidelines of this
document.
The developer will provide the following to the
City:
1. Completed sign program application and
filing fee.
2. Three copies of the sign program. The sign
program shall be prepared in 8½” X 11” or 11” X
17” format, and shall include the following:
a. A master plan, drawn to scale,
delineating the site proposed to be
included in the sign program and the
general location of all signs.
b. Drawings indicating the exterior surface
details of all buildings within the site
upon which wall signs, directory signs,
or projecting signs are proposed to be
located.
c. Proposed color schemes of the signs.
5.2.7 Privacy and Security Screening
Privacy screening or fencing is designed to shield a
property from external view, preventing onlookers from
seeing into private spaces of the development. They
are intended to safeguard a property by preventing
unauthorized entry, trespassing, or intrusion.
• Peripheral walls and fences shall comply with Section
6.02.025 of the Ontario Development Code.
• Landscape screening, walls, or fencing shall be a
minimum of 6 feet and a maximum of 8 feet high.
• Walls should use brick, slump stone, tile, textured
concrete, stucco on masonry, or steel framing that is
complementary to the building materials used in the
façade of the building. Plain concrete block walls (i.e., precision block) or chain-link fencing with inserts are not permitted.
• Landscape hedges should be at least 2 feet wide.
• Wall, wrought iron, tubular steel fencing, or other
transparent type of fencing or walls should use
decorative columns, pilasters, or other architectural
elements to provide relief and break the monotony.
• All non-transparent perimeter walls and/or fences
should be treated with anti-graffiti paint or vines on
the roadside and should incorporate landscaping
whenever possible.
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54 06 Implementation
684
55 06 | IMPLEMENTATION
6.1 Applicability
The provisions and regulations contained in
this Specific Plan provide the standards for
land uses and development located within
the Specific Plan Area. The Specific Plan
supersedes otherwise applicable City of Ontario
development standards and regulations unless
stated otherwise in this document. Whenever
the provisions and development standards
contained in the Specific Plan conflict with
those contained in the City of Ontario Zoning
Code, the provisions of the Specific Plan shall
take precedence. Where the Specific Plan does
not address such provisions, the City of Ontario
Zoning Code shall apply.
6.2 Severability
In the event that any provision of this
Specific Plan or its application to any person
or circumstance is held to be invalid or
unconstitutional by any court of competent
jurisdiction, such portions shall be deemed
separate, distinct, and independent, and shall
not affect the validity of the remaining provisions
of this Specific Plan or applications thereof,
which can be implemented without the invalid
provision or application.
6.3 Interpretation
The Planning Director or his/her designee is
authorized by the City of Ontario to interpret,
administer, and enforce the provisions of the
Empire Groves Specific Plan. The provisions
of this Specific Plan shall be interpreted in a
manner consistent with the goals, policies,
purpose, and intent established in the Empire
Groves Specific Plan.
6.4 Development Review
The procedures and regulatory provisions
necessary to administer the development
review procedures for applicable properties,
structures, and uses located within the Empire
Groves Specific Plan Area shall be subject to
the requirements as set forth herein and in
accordance with Chapter 6.0: Development and
Subdivision Regulations of the City of Ontario
Development Code.
The Specific Plan is reviewed by the Planning
Director or his/her designee and Development
Advisory Board. Any suggested revisions will be
discussed and made as appropriate. It will then
be reviewed by the City of Ontario Planning
Commission and approved and adopted by the
City Council. Once adopted, the Empire Groves
Specific Plan forms the legal framework for the
evaluation of development applications.
6.5 Financing
All on-site improvements will be undertaken and
financed by the developer. The costs for related
off-site improvements shall be the responsibility
of either the developer or the City as defined
further in the conditions of approval and
Development Agreement.
6.6 Maintenance
Responsibilities
Maintenance of all improvements within the
Specific Plan Area, including private/quasi-
public open space and recreation facilities;
private driveways; circulation; landscape;
and WQMP, BMPs, and private drainage
infrastructure (underground infiltration
chambers and CDS Units) will be the
responsibility of the applicant. Maintenance of
the public ROW including sidewalk areas in the
immediate vicinity of the Specific Plan Area will
also be the responsibility of the City.
6.7 Specific Plan
Amendments
Amendments to the Empire Groves Specific
Plan may be requested by the applicant or
by the City at any time pursuant to Section
685
56 EMPIRE GROVES SPECIFIC PLAN
65453(a) of the California Government Code.
Amendments shall be processed pursuant to
the provisions of the Government Code for
specific plan amendments. In the event the
proposed amendment requires supplemental
environmental analysis pursuant to CEQA, the
applicant will be responsible for preparation of
the necessary CEQA documentation. Below are
the processes of minor and major amendments
to this Specific Plan.
6.7.1 Minor Amendments
Minor amendments to the development
standards and design guidelines of a
Specific Plan are permitted under City of
Ontario Municipal Code Sec. 4.02.080. These
amendments require a discretionary review
process, which can be initiated by either the
developer or the City of Ontario. Approval
may be granted by the Planning Director or
their designee, as specified in the Ontario
Development Code, Division 2.02, Table 2.02.1,
(Section B, item 12). Any modifications must
align with the intent of the originally approved
Specific Plan, be in substantial conformance
with it, and not be detrimental to public health,
safety, and welfare. No further approval will be
necessary.
Some examples of minor amendments are listed
below.
• Changes to Specific Plan boundary,
provided the total acreage of the affected
area does not increase or decrease the total
acreage by more than 15 percent.
• Additions, deletions, or modifications to
Table 3, Allowable Uses, which lists the
permitted and conditionally permitted uses in
the Specific Plan Area, provided the Planning
Director determines the changes to be
consistent with the objectives and intent of
the Specific Plan and therefore minor.
• Minor adjustments to design guidelines
including conceptual architecture, landscape,
signage, and lighting.
• Minor adjustments to landscape materials,
wall materials, wall alignment, entry design
and streetscape design that are consistent
with the conceptual design set forth in the
specific plan’s development standards and
design guidelines.
• Revisions to infrastructure facility sizing
and precise location for dry utilities, water,
sewer, and storm drainage improvements
subject to approval of the City Engineer.
• Revisions to roadway alignments when the
change results in a centerline shift of less
than 250 feet.
• Other adjustments or revisions of similar
nature to those listed above that do not
substantially change the intent or character
of the Specific Plan and are deemed minor
by the Planning Director.
6.7.2 Major Amendments
Specific amendments that are more substantial
in nature than minor adjustments and include
changing any regulation, general provision,
procedure, or other provision will be considered
a major adjustment to the Specific Plan and
shall be subject to a formal Specific Plan
Amendment application process pursuant to
Section 4.01.035 of the Ontario Development
Code and California Government Code Section
65450, et seq.
If the proposed amendment requires
supplemental environmental analysis pursuant
to CEQA, the applicant shall adhere to the City’s
adopted procedures and CEQA Guidelines.
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57 06 | IMPLEMENTATION
6.8 CEQA Review
City of Ontario is defined as the lead agency under CEQA based on its authority to approve the Empire Groves
Specific Plan. Prior to an approval of a project within the Specific Plan Area, the City Council will be required to certify the associated environmental document.
California Public Resources Code Section 21081.6 also
requires public agencies to adopt a Mitigation Monitoring and Reporting Program to ensure that mitigation measures are implemented. Prior to a Certification of Occupancy
for any building located within the Specific Plan Area, the Planning Director or his/her designee, as appropriate, shall confirm that applicable mitigation measures have been
implemented in accordance with the approved plans.
687
58 A
Consistency
with General
Plan Update
APPENDIX
688
59689
Appendix A: General Plan Consistency Analysis
Land Use Element
GOAL
LU‐1
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.
Policies
LU‐1.1
Strategic Growth. We concentrate growth in strategic locations that help create place and identity, maximize available and planned infrastructure, foster the development of transit, and support the expansion of the active and multimodal transportation networks throughout the City. (Link to Mobility Element Policies M2‐M‐2.1, M3‐M‐3.3; Community Design Element Image and Identity Section; Community Design Policies CD‐3.1, CD‐
3.3, CD‐3.6)
Consistent: The Specific Plan is in a planned growth area (Guasti District) per the General Plan.
LU‐1.2
Sustainable Community Strategy. We integrate state, regional, and local Sustainable Community/Smart Growth principles into the development and entitlement process.
Consistent: The Specific Plan integrates many sustainable and smart growth strategies. It supports multimodal transportation in the area.
LU‐1.3 Adequate Capacity. We require adequate infrastructure and services for all development. Consistent: Adequate existing infrastructure is available for the Specific Plan.
LU‐1.4
Multimodal Mobility. We require development and urban design, where appropriate, that reduces reliance on the automobile and capitalizes on active transportation, transit, electric vehicles, and multimodal transportation opportunities (Link to Mobility Element Policies M‐2.1, M‐3.3; Community Design Element Policy CD‐2.6, CD‐3.1, CD‐3.3, CD3.6).
Consistent: The Specific Plan is a mixed‐use plan. It supports multimodal transportation planning projects in the area. It includes provisions for bicycle parking, electric vehicle charging stations, and other amenities.
LU‐1.5
Jobs‐Housing Balance. We coordinate land use, infrastructure, and transportation planning and analysis with regional, county, and other local agencies to further regional and subregional goals for jobs‐housing balance. (Link to Community Economics Element Policy CE‐1.1; Mobility Element Policy M‐1.6)
Consistent: The Specific Plan is a mixed‐use plan with Hotel and Local Serving Retail uses and will contribute to a substantial number of jobs in the area which leads to jobs‐housing balance.
LU‐1.6
Complete Community. We incorporate a variety of land uses and building types in our land use planning efforts that result in a complete community where residents at all stages of life, employers, workers, and visitors have a wide spectrum of choices of where they can live, work, shop and recreate within Ontario. (Link to Community Economics Element Complete Community Section; Community Design Element Urban, Mixed Use, and Transit‐oriented Place Types Section)
Consistent: The Specific Plan is primarily commercial and does not include housing. However, it is designed to create job opportunities for residents within the City. This approach contributes to the development of complete communities by fostering local employment and supporting the overall economic growth of the area.
690
LU‐1.7
Revenues and Costs. We require future amendments to our Land Use Plan to be accompanied by analyses of fiscal impacts. (Link to Community Economics Policy CE‐3.2)
Consistent: The Specific Plan will be financed by the developer.
GOAL
LU‐2 Compatibility between a wide range of uses and resultant urban patterns and forms.
Policies
LU‐2.1
Land Use Decisions. We minimize adverse impacts on adjacent properties when considering land use and zoning requests.
Consistent: The Specific Plan will not have any adverse impacts on the adjacent properties. It will contribute positively as the adjacent properties include a conference center, airport, and other hotel properties that are complementary to this development.
LU‐2.2
Buffers. We require new uses to provide mitigation or buffers between existing uses where potential adverse impacts could occur. Additional mitigation is required when new uses could negatively impact environmental justice areas. (Link to Community Design Element)
Consistent: Although this area is classified as an environmental justice area according to Cal Enviroscreen 4.0, it is not residential. The high pollution burden, largely due to the nearby airport, contributes to its high score. The Specific Plan incorporates sustainable strategies and is a mixed-use plan. It supports multimodal transportation projects in the area and includes provisions for bicycle parking, electric vehicle charging stations, and other amenities.
LU‐2.3
Hazardous Uses. We regulate the development of industrial and similar uses that use, store, produce, or transport toxic substances, air emissions, other pollutants, or hazardous materials. (Link to Safety Element Hazardous Materials & Waste Section, including Policies S‐6.4 and S‐6.5) Consistent: There are no hazardous materials stored, produced, or transported to the site. Standard cleaning and laundry services for the hotel are provided.
LU‐2.4 Regulation of Nuisances. We regulate the location, concentration, and operation of potential nuisances. N/A
LU‐2.5 Regulation of Uses. We regulate the location, concentration, and operation of uses that have impacts on surrounding land uses. N/A
LU‐2.6
Infrastructure Compatibility. We require infrastructure to be aesthetically pleasing and in context with the community character.
Consistent: The Specific Plan will add new sidewalks and landscaping along Holt Boulevard and Guasti Road, a corner plaza at the intersection and the entrance court with heavy landscaping, all of which will contribute to the aesthetically pleasing surroundings.
LU‐2.7
Inter‐jurisdictional Coordination. We maintain an ongoing liaison with ONT, Caltrans, Public Utilities Commission, the railroads, and other agencies to help minimize impacts and improve the operations and aesthetics of their facilities.
N/A
LU‐2.8 Transitional Areas. We require development in transitional areas to protect the quality of life of current residents. N/A
LU‐2.9
Methane Gas Sites. We require sensitive land uses and new uses on former dairy farms or other methane‐producing sites be designed to minimize health risks.
N/A
691
LU‐2.10
Sensitive Uses. We monitor and share information with the community about stationary and non‐stationary emission sources. We encourage siting and design of facilities to minimize health and safety risks on existing and proposed sensitive uses, especially in environmental justice areas.
N/A
LU‐2.11
Context‐Aware Transitions and Connections. We require new development projects and land‐planning efforts to provide context‐aware and appropriate transitions and connections between existing and planned neighborhoods, blocks, sites, and buildings. (Link to Community Design Element Policies CD‐
1.1, CD‐1.3, CD‐3.4)
Consistent: The Specific Plan complements the adjacent properties, including a conference center, airport, and other hotel properties. Therefore, the proposed development is context‐aware with appropriate transitions and connections.
GOAL
LU‐3
Staff, regulations and processes that support and allow flexible response to conditions and circumstances in order to achieve the Vision.
Policies
LU‐3.1
Development Standards. We maintain clear development standards which allow flexibility to achieve our Vision and provide objective standards that ensure predictability and deliver the intended physical outcomes. (Link to Community Design Element Design Quality and Urban, Mixed Use, and Transit‐oriented Place Types Sections)
Consistent: The development standards chapter provides mandatory provisions that are intended to achieve the vision of the Specific Plan and provide for objective standards that are measurable. The design guidelines however are not mandatory and provide flexibility.
LU‐3.2 Design Incentives. We offer design incentives to help projects achieve the Vision. (Link to Community Design Element) N/A
LU‐3.3
Land Use Flexibility. We consider uses not typically permitted within a land use category if doing so improves livability, reduces vehicular trips, creates community gathering places and activity nodes, and helps create identity.
Consistent: The Specific Plan development standards include bicycle facilities and includes bike rentals as a permitted use that may aid in the reduction of vehicular trips. The Specific Plan is a mixed‐use development and provides for local serving retail and restaurants that will also help reduce trips. The Local Serving Retail area has a public plaza and outdoor seating which contributes to community gathering places. The hotel features gathering areas and landscaping both within and around the property, enhancing the overall appeal of the area.
GOAL
LU‐4 Development that provides short‐term value only when the opportunity to achieve our Vision can be preserved.
Policies
LU‐4.1 Commitment to Vision. We are committed to achieving our Vision but realize that it may take time and several interim steps to get there.
Consistent: The plan is consistent with Guasti District's vision within the Ontario Plan.
692
LU‐4.2
Interim Development. We allow development in urban, mixed use, and transit‐ oriented Place Types that is not immediately reflective of our ultimate Vision for the Place Type, provided it can be modified or replaced when circumstances are right to support development aligned with the Place Type Vision. We will not allow development that impedes, precludes, or compromises our ability to achieve our Vision. (Link to Community Economics Element Policy CE‐2.3; Community Design Element Policy CD‐1.2; Community Design Element Urban, Mixed Use, and Transit‐oriented Place Types section).
Consistent: The Specific Plan is a mixed‐use plan with Hotel and Local Serving Retail uses and transit‐ supportive use.
LU‐4.3 Infrastructure Timing. We require that the necessary infrastructure and services be in place prior to or concurrently with development. Consistent: The necessary infrastructure and services either exist or will be in place to support development within the Specific Plan.
LU‐4.4
Shared Infrastructure. We encourage and facilitate the use of shared infrastructure (including shared or managed parking) in urban, mixed use, and transit‐oriented Place Types. (Link to Community Design Element Policy CD‐
3.6)
Consistent: The Specific Plan is a mixed‐use plan with Hotel and Local Serving Retail uses and transit‐ supportive use. The parking areas are shared. The ULI shared parking analysis has provided on‐site parking for the entire development. The plaza area at the intersection of Holt Boulevard and Guasti Road is a public plaza.
GOAL
LU‐5 Integrated airport systems and facilities that minimize negative impacts to the community and maximize economic benefits.
Policies
LU‐5.1
Coordination with Airport Authorities. We collaborate with FAA, Caltrans Division of Aeronautics, airport owners, neighboring jurisdictions, and other shareholders in the preparation, update, and maintenance of airport‐related plans.
Consistent The Specific Plan is consistent with the policies and criteria set forth within an Airport Land Use Compatibility Plan. The Specific Plan includes uses compatible with surrounding land uses and adjacent properties.
LU‐5.2
Airport Planning Consistency. We coordinate with airport authorities to ensure The Ontario Plan is consistent with state law, federal regulations, and/or adopted master plans, and airport land use compatibility plans for ONT and Chino Airport.
Consistent: The Specific Plan is consistent with the policies and criteria set forth within an Airport Land Use Compatibility Plan. The Specific Plan includes uses compatible with surrounding land uses and adjacent properties.
LU‐5.3 Airport Impacts. We work with agencies to maximize resources to mitigate the impacts and hazards related to airport operations – their homes.
Consistent: The Specific Plan is consistent with the policies and criteria set forth within an Airport Land Use Compatibility Plan. The Specific Plan includes uses compatible with surrounding land uses and adjacent properties.
LU‐5.4
ONT Growth Forecast. We support and promote an ONT that accommodates 30 million annual passengers and 1.6 million tons of cargo per year, as long as the impacts associated with that level of operations are planned for and mitigated.
N/A
LU‐5.5 Airport Compatibility Planning for ONT. We create and maintain the Airport Land Use Compatibility Plan for ONT. Consistent: The Specific Plan is consistent with the policies and criteria set forth within an Airport Land Use Compatibility Plan.
693
LU‐5.6
Alternative Process. We fulfill our responsibilities and comply with state law with regard to the Alternative Process for proper airport land use compatibility planning.
Consistent: The Specific Plan is consistent with the policies and criteria set forth within an Airport Land Use Compatibility Plan.
LU‐5.7
ALUCP Consistency with Land Use Regulations. We comply with state law that requires general plans, specific plans, and all new development to be consistent with the policies and criteria set forth within an Airport Land Use Compatibility Plan for any public‐use airport.
Consistent: The Specific Plan is consistent with the policies and criteria set forth within an Airport Land Use Compatibility Plan. The allowable height is within the range (100' to 150') as prescribed by Airport Land Use Compatibility Plan.
LU‐5.8 Chino Airport. We will support the creation and implementation of the Airport Land Use Compatibility Plan for Chino Airport. N/A
Housing Element
GOAL
H‐1
Stable neighborhoods of quality housing, ample community services and public facilities, well‐maintained infrastructure, and public safety that foster a positive sense of identity.
Policies
H‐1.1
Housing Rehabilitation. We support the rehabilitation, maintenance, and improvement of single‐family, multiple‐family, and mobile homes through code compliance, removal of blight where necessary, and provision of rehabilitation assistance where feasible.
N/A: The Specific Plan is a mixed‐use plan with Hotel and Local Serving Retail uses. It does not include housing.
H‐1.2
Neighborhood Conditions. We direct efforts to improve the long‐term sustainability of neighborhoods through comprehensive planning, provision of neighborhood amenities, rehabilitation and maintenance of housing, and community building efforts.
Consistent: The Specific Plan has a Local Serving Retail component with a public plaza that will contribute to neighborhood amenities. Development within the Specific Plan will contribute to a substantial number of jobs in the area and lead to jobs‐housing balance and community building efforts.
H‐1.3
Community Amenities. We shall provide adequate public services, infrastructure, open space, parking and traffic management, pedestrian, bicycle, and equestrian routes and public safety for neighborhoods consistent with City master plans and neighborhood plans.
Consistent: The Specific Plan has a Local Serving Retail component with a public plaza that will contribute to neighborhood amenities. The Specific Plan will create a pedestrian realm with wide, buffered, and landscaped sidewalks that will contribute to pedestrian safety.
H‐1.4
Historical Preservation. We support the preservation and enhancement of residential structures, properties, street designs, lot configurations, and other reminders of Ontario’s past that are considered to be local historical or cultural resources.
N/A: There are no local historical or cultural resources within the Specific Plan.
H‐1.5
Neighborhood Identity. We strengthen neighborhood identity through creating parks and recreational outlets, sponsoring neighborhood events, and encouraging resident participation in the planning and improvement of their neighborhoods.
Consistent: The hotel is envisioned to be a world‐class hotel with high aesthetic value creating identity for the neighborhood. Additionally, it will provide paid event space in the form of banquet halls as well as restaurants.
Additionally, it includes a public plaza in the Local Serving Retail portion of the Specific Plan.
694
GOAL
H‐2
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.
Policies
H‐2.1
Corridor Housing. We revitalize transportation corridors by encouraging the production of higher density residential and mixed‐uses that are architecturally, functionally, and aesthetically suited to corridors.
N/A: The Specific Plan is a commercial mixed‐use plan with Hotel and Local Serving Retail uses. It does not include a residential component. However, development within the Specific Plan will contribute to a substantial number of jobs in the area and lead to jobs‐housing balance.
H‐2.2
Historic Downtown. We foster a vibrant historic downtown through facilitating a wide range of housing types and affordability levels for households of all ages, housing preferences, and income levels.
N/A: The Specific Plan is a commercial mixed‐use plan with Hotel and Local Serving Retail uses. It does not include a residential component.
H‐2.3
Ontario Airport Metro Center. We foster a vibrant, urban, intense, and highly amenitized community in the Ontario Airport Metro Center Area through a mix of residential, entertainment, retail, and office‐oriented uses.
The Specific Plan is within the Ontario Airport Metro Center and provides for a commercial mixed‐use development with Hotel and Local Serving Retail.
H‐2.4
Ontario Ranch. We support a premier lifestyle community in the Ontario Ranch, distinguished by diverse housing, highest design quality, and cohesive and highly amenitized neighborhoods.
N/A: The Specific Plan is a commercial mixed‐use plan with Hotel and Local Serving Retail uses. It does not include a residential component.
H‐2.5
Housing Design. We require architectural excellence through adherence to City design guidelines, thoughtful site planning, environmentally sustainable practices, and other best practices.
N/A: The Specific Plan is a commercial mixed‐use plan with Hotel and Local Serving Retail uses It does not include a residential component.
H‐2.6
Infill Development. We support the revitalization of neighborhoods through the construction of higher‐density residential developments on underutilized residential and commercial sites.
N/A: The Specific Plan is a commercial mixed‐use plan with Hotel and Local Serving Retail uses It does not include a residential component.
GOAL
H‐3
A City regulatory environment that balances the need for creativity and excellence in residential design, flexibility and predictability in the project approval process, and the provision of an adequate supply and prices of housing.
Policies
H‐3.1
Incentives. We maintain incentive programs that can be offered to projects that provide benefits to the community such as exceptional design quality, economic advantages, environmental sustainability, or other benefits that would otherwise be unrealized.
N/A
H‐3.2
Flexible Standards. We allow flexibility in the application of residential and mixed‐use development standards in order to gain benefits such as exceptional design quality, economic advantages, sustainability, or other benefits that would otherwise be unrealized.
Consistent: The development standards for mixed‐use development are flexible and provide for high quality development.
H‐3.3
Development Review. We maintain a residential development review process that provides certainty and transparency for project stakeholders and the public, yet allows for the appropriate review to facilitate quality housing development.
N/A
695
H‐3.4
Financial Incentives. We consider financial incentives to facilitate and encourage the production, rehabilitation or improvement of housing, or provision of services where such activity furthers housing and community‐ wide goals.
N/A
GOAL
H‐4
Increased opportunities for low‐ and moderate‐income households and families to afford and maintain quality ownership and rental housing opportunities, including move‐up opportunities. Inclusive communities, racial equity, fair housing choice, and access to opportunity.
Policies
H‐4.1
Preservation of Affordable Apartments. We strive to facilitate the preservation of the affordability of publicly assisted apartments for lower‐ income households through financial assistance, technical assistance, rehabilitation, and collaborative partnerships.
N/A
H‐4.2
Homeownership Opportunities. We increase and expand homeownership rates for lower‐ and moderate‐income households by offering financial assistance, low‐interest loans, and educational resources, and by working in collaboration with partnerships.
N/A
H‐4.3
Rental Assistance. We support the provision of rental assistance for individuals and families earning extremely low, very low, and low income with funding from the state and federal government.
N/A
H‐4.4
Mixed‐income Housing. We encourage the integration of affordable housing in the Ontario Ranch, Ontario Airport Metro Center Area, and existing neighborhoods.
N/A
H‐4.5
Collaborative Partnerships. We support collaborative partnerships of nonprofit organizations, affordable housing developers, major employers, and for‐profit developers to produce affordable housing.
N/A
H‐4.6
Fair Housing. We further fair housing by prohibiting discrimination in the housing market, lifting barriers that restrict access to housing, and providing education, support, and enforcement services to address discriminatory practices.
N/A
GOAL
H‐5
A full range of housing types and community services that meet the special housing needs for all individuals and families in Ontario, regardless of income level, age, or other status.
Policies
H‐5.1
Senior Housing. We support the development of accessible and affordable senior housing and provide financial assistance for seniors to maintain and improve their homes.
N/A
H‐5.2
Family Housing. We support the development of larger rental apartments that are appropriate for families with children, including, as feasible, the provision of services, recreation, and other amenities.
N/A
696
H‐5.3
Disabled People. We increase the supply of permanent, affordable, and accessible housing for people with disabilities, and provide assistance to allow them to maintain and improve their homes.
N/A
H‐5.4
Homeless People. We partner with nonprofit partners to provide emergency shelters, transitional housing, permanent supportive housing, and supportive services for people who are homeless.
N/A
H‐5.5
Supportive Services. We financially support organizations, as feasible, that provide support services that meet the needs of those with special needs and further the greatest level of independence.
N/A
H‐5.6
Partnerships. We collaborate with nonprofit organizations, private developers, employers, government agencies, and other interested parties to develop affordable housing and provide support services.
N/A
Parks and Recreation Element
GOAL
PR‐1 A system of safe and accessible parks that meets the needs of the community.
Policies
PR‐1.1
Access to Parks. In all new residential development areas, we strive to provide a park and/or recreational facility within walking distance (¼ mile) of every residence and prioritize the establishment of parks in environmental justice areas that do not have adequate access to parks.
N/A: The Specific Plan is a commercial mixed‐use plan with Hotel and Local Serving Retail uses. Although this area is classified as an environmental justice area according to Cal Enviroscreen 4.0, it is not residential and does not include a residential component. However, the plan encourages the improvement of and connection to Cucamonga Creek Trail and improvements of Holt Boulevard and Guasti Road which will contribute to the safe and comfortable mobility between the Specific Plan and surrounding uses.
PR‐1.2 Adjacency to Schools. We examine locating parks adjacent to school sites to promote joint‐use opportunities.
N/A: The Specific Plan does not include a residential component so there is no impact on the location of schools.
PR‐1.3
Funding. We shall seek outside, one‐time sources of funding for capital improvements and reserve ongoing City funds primarily for operations and maintenance.
N/A
PR‐1.4 Joint‐use Opportunities. In areas where there is a need but no City recreational facility, we explore joint‐use opportunities. (e.g., school sites).
N/A
PR‐1.5
Acreage Standard. We strive to provide 5 acres of parkland (public and private) per 1,000 residents. Consistent. The Specific Plan contributes to both public and private open space. Please see below for the Public/Private landscape area breakdown:
‐ Level 1: Public landscape (not including driveways):28,621 sq ft; Private ‐ landscape:205,335 sq ft
‐ Level 3: Private landscape: 57,365 sq ft
‐ Level 9: Private landscape: 32,119 sq ft
697
PR‐1.6
Private Parks. We expect development to provide a minimum of 2 acres of developed private park space per 1,000 residents. Consistent. The Specific Plan contributes to both public and private open space. Please see below for the Public/Private landscape area breakdown:
‐ Level 1: Public landscape (not including driveways):28,621 sq ft; Private ‐ landscape:205,335 sq ft
‐ Level 3: Private landscape: 57,365 sq ft
‐ Level 9: Private landscape: 32,119 sq ft
PR‐1.7 Special Needs/Universal Design. We attempt to provide recreational opportunities at parks for people of all ages and abilities.
Consistent. The Specific Plan aims to design all public realm and open space facilities with Universal Design standards.
PR‐1.8 Renovation. We examine renovating existing facilities prior to building replacement facilities. N/A: This is a new development Specific Plan.
PR‐1.9 Phased Development. We require parks be built in new communities before a significant proportion of residents move in. N/A: The Specific Plan does not have a residential component PR‐1.10 Master Plans for Individual Park Facilities. We require an individual park master plan for parks in excess of 10 acres. N/A
PR‐1.11 Environmental Function of Parks. We require new parks to meet environmental management objectives. N/A: The development is not a parks project.
PR‐1.12 Trails. We promote connections between parks and local trails including those managed by other public agencies.
N/A: The development is not a parks project, but the Specific Plan is supportive of connections to the Cucamonga Creek Trail.
PR‐1.13 Equestrian Trails. We require the design, construction, and maintenance of equestrian trails in Rural Residential designated areas.
N/A
PR‐1.14
Multi‐family Residential Developments. We require that new multi‐family residential developments of five or more units provide recreational facilities or open space, in addition to paying adopted impact fees.
N/A: The development is not a residential project.
PR‐1.15
Trail Connectivity. We strengthen and improve equestrian, bike, and multipurpose trail connections within the City and work to improve trail connections into adjacent jurisdictions.
Consistent: The development is supportive of connections to the Cucamonga Creek Trail.
PR‐1.16
Equestrian Master Plan. We use Homer Briggs Park as the primary focal point for the development of a Master Plan of Equestrian Trails in the Rural Residential area.
N/A
GOAL
PR‐5
A range of recreational programs provided by public, private, and nonprofit organizations that meet the needs of the community’s varied interests, age groups, and abilities.
Policies
PR‐2.1 Participation. We program park facilities to maximize utilization and participation, while considering park size, location, and population served.
N/A: The development is not a parks project.
698
PR‐2.2 Needs Assessment. We track the needs and priorities for recreational programming and look for ways to meet demand. N/A: The development is not a parks project.
PR‐2.3 Community Involvement. We involve the local community in planning programs for neighborhood and community park facilities. N/A: The development is not a parks project.
PR‐2.4
Access to Programs. We provide a range of recreational and physical exercise programs that are accessible to residents of all income levels throughout the community and prioritize establishing and maintaining equitable access for residents in environmental justice areas.
N/A: Although this area is classified as an environmental justice area according to Cal Enviroscreen 4.0, it does not include residential and is not a parks project.
However, the Specific Plan incorporates sustainable strategies and public open space. The plan also encourages the improvement of and connection to Cucamonga Creek Trail. Additionally, public realm improvements of the sidewalk areas and edge friction elements such as curbs, street trees, lighting, etc. along Holt Boulevard and Guasti Road contribute to walkability and connectivity to surrounding areas.
PR‐2.5
Partnerships. We partner with local and regional agencies, nonprofit organizations, and the private sector to provide a comprehensive range of recreational programs.
N/A
PR‐2.6 Crime Deterrents. We promote and participate in recreational programming as part of our crime prevention effort. N/A
Environmental Resources Element
GOAL
ER‐1 A reliable and cost‐effective system that permits the City to manage its diverse water resources and needs.
Policies
ER‐1.1
Local Water Supply. We increase local water supplies to reduce our dependence on imported water. New and redevelopment projects are aligned with our available water supply and/or to enhance our available water supply.
Consistent: Development within the Specific Plan is consistent with General Plan and will not impose water demand beyond that analyzed in the General Plan.
ER‐1.2 Matching Supply to Use. We match water supply and quality to the appropriate use. N/A
ER‐1.3
Conservation and Sustainable Water Supply. We work with regional water providers and users to conserve water and ensure sustainable local water supplies as more frequent droughts reduce long term local and regional water availability
N/A
ER‐1.4 Supply‐Demand Balance. We require that available water supply and demands be balanced.
Consistent: Development within the Specific Plan is consistent with General Plan and will not impose water demand beyond that analyzed in the General Plan.
ER‐1.5
Water Resource Management. Environmental justice areas are prioritized as we coordinate with local agencies to protect water quality, prevent pollution, address existing contamination, and remediate contaminated surface water and groundwater.
N/A
699
ER‐1.6
Urban Run‐off Quantity. We encourage the use of low impact development strategies, including green infrastructure, to intercept run‐off, slow the discharge rate, increase infiltration, and ultimately reduce discharge volumes to traditional storm drain systems.
Consistent: Development within the Specific Plan will use native or drought‐tolerant landscaping techniques and will incorporate LID where feasible.
ER‐1.7 Urban Run‐off Quality. We require the control and management of urban run‐ off, consistent with Regional Water Quality Control Board regulations.
Consistent: Development within the Specific Plan will use native or drought‐tolerant landscaping techniques and will incorporate LID where feasible.
ER‐1.8
Wastewater Management. We require the management of wastewater discharge and collection consistent with waste discharge requirements adopted by the Regional Water Quality Control Board.
Consistent: Development within the Specific Plan will be consistent waste discharge requirements adopted by the Regional Water Quality Control Board.
GOAL
ER‐2 A cost effective, integrated waste management system that meets or exceeds state and federal recycling and waste diversion mandates.
Policies
ER‐2.1 Waste Diversion. We shall meet or exceed AB 939 requirements. Consistent: Development within the Specific Plan will comply with state requirements.
ER‐2.2 Hazardous and Electronic Wastes. We prohibit the disposal of hazardous and electronic waste into the municipal waste stream pursuant to state law.
Consistent: Development within the Specific Plan will comply with state requirements.
ER‐2.3 Purchase Products Made from Recycled Materials. We purchase recycled‐ content products where it is cost effective.
Consistent: Development within the Specific Plan will purchase products made from recycled materials where feasible ensuring competitiveness in the market or adherence to industry standards.
GOAL
ER‐3
Cost‐effective and reliable energy system sustained through a combination of low impact buildings, site and neighborhood energy conservation, and diverse sources of energy generation that collectively helps to minimize the region’s carbon footprint.
Policies
ER‐3.1 Conservation Strategy. We require conservation as the first strategy to be employed to meet applicable energy‐saving standards.
Consistent: Development within the Specific Plan will aim to conserve energy to the extent feasible based on market competitiveness and industry standards.
ER‐3.2
Green Development– Communities. We encourage the use of the LEED Neighborhood Development rating system, or similar mechanism, to guide the planning and development of all new communities.
Consistent: Development within the Specific Plan will use many sustainable practices such as shared parking, drought‐tolerant landscaping, transit‐supportive design, mixed‐use development, pedestrian support, electric charging stations, bike parking facilities, provision of open spaces, heat island reduction, light pollution reduction, enhanced indoor air quality strategies, low‐emitting materials, daylighting, and other techniques that are consistent with the LEED Neighborhood Development rating system.
700
ER‐3.3
Building and Site Design. We require new construction to incorporate energy efficient building and site design strategies, which could include appropriate solar orientation, maximum use of natural daylight, passive solar, and natural ventilation.
Consistent: The building maximizes the site's potential for appropriate solar orientation, maximum use of natural daylight, passive solar, and natural ventilation. The main façade of the building is on the south which receives maximum sunlight. Being a hotel with a double‐loaded corridor, the rooms are also oriented toward the north. Vertical architectural fin walls are used for solar control as well as architectural element.
ER‐3.4
Green Development– Public Buildings. We require all new and substantially renovated City buildings in excess of 10,000 square feet achieve a LEED Silver Certification standard, as determined by the U.S. Green Building Council.
N/A: The Specific Plan is not a City building.
ER‐3.5
Fuel‐Efficient and Alternative Energy Vehicles and Equipment. We require purchase and use vehicles and equipment that are fuel efficient and meet or surpass state emissions requirements and/or use renewable sources of energy.
Consistent: Any new vehicles owned for the use of the hotel will meet or surpass state emissions requirements and/or use renewable sources of energy.
ER‐3.6 Generation‐ Renewable Sources. We promote the use of renewable energy sources (e.g., solar, wind, biomass) in public and private sector development.
Consistent: Development within the Specific Plan will consider using renewable energy sources.
GOAL
ER‐4 Improved indoor and outdoor air quality and reduced locally generated pollutant emissions.
Policies
ER‐4.1
Land Use. We reduce GHG and other local pollutant emissions through compact, mixed use, and transit‐oriented development and development that improves the regional jobs‐housing balance.
Consistent: The Specific Plan is a mixed‐use development with a hotel and retail area and will contribute to a substantial number of jobs in the area and lead to a jobs-housing balance.
ER‐4.2
Sensitive Land Uses. We prohibit the future siting of sensitive land uses within the distances defined by the California Air Resources Board for specific source categories, without sufficient mitigation.
N/A
ER‐4.3
Greenhouse Gases (GHG) Emissions Reductions. We will reduce GHG emissions in accordance with regional, state, and federal regulations. Consistent: The Specific Plan is a mixed‐use development with a hotel and retail area. It is transit supportive as it is located in the vicinity of Metrolink and Amtrak Stations and BRT route. It encourages active transportation by providing an enhanced public realm and bike facilities. The plan encourages the improvement of and connection to Cucamonga Creek Trail. The land uses allow for bike rental and repair facilities in the Local Serving Retail area. It also has an electric charging station in the parking areas. All of the above contribute to the lowering of GHG.
701
ER‐4.4
Indoor Air Quality. We will comply with State Green Building Codes relative to indoor air quality. We seek funding to improve indoor air quality for households with poor indoor air quality, with priority for lower income households in environmental justice areas.
Consistent: The indoor building materials will comply with State Green Building Codes.
ER‐4.5
Transportation. We promote mass transit and non‐motorized mobility options (walking, biking) to reduce air pollutant emissions. Consistent: The Specific Plan is a mixed‐use plan with hotel and retail uses. It is transit‐supportive as it is located in the vicinity of Metrolink and Amtrak Stations and BRT route. It encourages active transportation by providing an enhanced public realm and bike facilities. The plan encourages the improvement of and connection to Cucamonga Creek Trail. The land uses allow for bike rental in the Local Serving Retail area. It also has an electric charging station in the parking areas. All of the above contribute to reducing air pollutant emissions.
ER‐4.6 Particulate Matter. We support efforts to reduce particulate matter to meet State and Federal Clean Air Standards.
Consistent: The development will comply with State and Federal Clean Air Standards.
ER‐4.7
Other Agency Collaboration. We collaborate with other agencies within the South Coast Air Basin to improve regional air quality at the emission source, with a particular focus on sources that affect environmental justice areas in Ontario.
N/A
ER‐4.8
Tree Planting. We protect healthy trees within the City and plant new trees to increase carbon sequestration and help the regional/local air quality. We expand the tree canopy in environmental justice areas to enhance air quality and reduce the “heat island” effect.
Consistent: The Specific Plan includes a number of new trees (See landscaping concepts) that will contribute to enhancing air quality and reducing the “heat island” effect.
702
ER‐4.9
New Localized Air Pollution Sources Near Existing Sensitive Receptors. We require new developments to conduct a Health Risk Assessment for land uses that generate more than 100 trucks per day or 40 trucks per day by trucks operating transportation refrigeration units (TRU's) within 1,000 feet from sensitive land uses (California Health and Safety Code § 42705.5(a)(5)). If the health risk assessment determines the new development poses health hazards that increase the incremental cancer risk above the threshold established by the South Coast Air Quality Management District (AQMD), we will only approve permits upon the condition that adequate mitigation measures are proposed and implemented for potential impacts on the sensitive uses around the site and along the route within Ontario taken by the trucks to and from freeways. We require new developments that must perform a health risk assessment to conduct additional public outreach by sending notifications in multiple languages to all residents living within 500 feet and encourage hosting a public meeting.
N/A
GOAL
ER‐5 Protected high value habitat and farming and mineral resource extraction activities that are compatible with adjacent development.
Policies
ER‐5.1
Habitat Conservation Areas. We support the protection of biological resources through the establishment, restoration, and conservation of high‐quality habitat areas.
N/A: There are no biological resources within the Specific Plan.
ER‐5.2
Entitlement and Permitting Process. We comply with state and federal regulations regarding protected species. N/A: There are no protected species within the Specific Plan.
ER‐5.3
Right to Farm. We support the right of existing farms to continue their operations within the Ontario Ranch. N/A
ER‐5.4
Transition of Farms. We protect both existing farms and sensitive uses around them as agricultural areas transition to urban uses. N/A
ER‐5.5
Mining Operations. We prohibit future mining operations where the resource extraction activities are incompatible with existing or proposed adjacent land uses.
N/A
703
Community Economics Element
GOAL
CE‐1 A complete community that provides for all incomes and stages of life.
Policies
CE‐1.1
Jobs‐Housing Balance. We pursue improvement to the Inland Empire’s balance between jobs and housing by promoting job growth that reduces the regional economy’s reliance on out‐commuting.
Consistent: The Specific Plan includes hotel and retail uses that will contribute to a substantial number of jobs in the area and lead to jobs‐housing balance.
CE‐1.2
Jobs and Workforce Skills. We use our economic development resources to:
1. attract jobs suited for the skills and education of current and future City residents;
2. work with regional partners to provide opportunities for the labor force to improve its skills and education; and
3. attract businesses that increase Ontario’s stake and participation in growing sectors of the regional and global economy.
(Link to Social Resources Policy SR‐2.2)
Consistent: The Specific Plan includes hotel, and retail uses that will contribute to a substantial number of jobs in the area for residents and attract businesses in the Local Serving Retail as well as within the hotel.
CE‐1.3
Regional Approach to Workforce Development. We work with our partners to provide workforce training and development services throughout the region, recognizing that Ontario employers rely on workers living outside of the City.
N/A
CE‐1.4
Business Retention and Expansion. We continuously improve two‐way communication with the Ontario business community and emphasize customer service to existing businesses as part of our competitive advantage.
Consistent: The development owners and operators will be open to two‐way communication with the City.
CE‐1.5
Business Attraction. We proactively attract new and expanding businesses to Ontario in order to increase the City’s share of growing sectors of the regional and global economy.
Consistent: The Specific Plan is a hotel and retail plan that will attract businesses in the Local Serving Retail as well as within the hotel.
CE‐1.6
Diversity of Housing. We collaborate with residents, housing providers, and the development community to provide housing opportunities for every stage of life; we plan for a variety of housing types and price points to encourage the development of housing supportive of our efforts to attract business in growing sectors of the community while being respectful of existing viable uses.
N/A: The Specific Plan does not include a residential component.
CE‐1.7 Retail Goods and Services. We seek to ensure a mix of retail businesses that provide the full continuum of goods and services for the community.
Consistent: The Specific Plan is a mixed‐use development with a hotel and retail component.
704
CE‐1.8 Regional Attraction. We encourage the development and programming of regional, cultural, and entertainment destinations in Ontario.
N/A
CE‐1.9
Regional Leadership. We provide leadership for public, quasi‐public, and private‐sector partners that help Ontario and its residents and businesses realize our goals and achieve our Vision.
N/A
CE‐1.10
Life‐Long Education. We work with our partners who provide life‐long learning to ensure that our residents and workforce have access to education at all stages of life.
N/A
CE‐1.11 Socioeconomic Trends. We continuously monitor, plan for, and respond to changing socioeconomic trends. N/A
CE‐1.12
Circulation. We continuously plan and improve public transit and non‐ vehicular circulation for the mobility of all, including those with limited or no access to private automobiles. (Link to Mobility Element Public Transit Section)
Consistent: The Specific Plan is transit‐supportive and located in the vicinity of Metrolink and Amtrack stations as well as along the future BRT route.
CE‐1.13
Safety and Security. We invest in public safety and communicate our successes because the perception and reality of safety and security are necessary prerequisites for private investment and economic growth.
Consistent: The Specific Plan will incorporate industry‐standard safety and security measures.
GOAL
CE‐2 A City of distinctive neighborhoods, districts, corridors, and centers where people choose to be.
Policies
CE‐2.1
Development Projects. We require new development and redevelopment to create unique, high‐quality places that add value to the community. (Link to Community Design Element)
Consistent: The design guidelines for mixed‐use development aim to provide for high‐quality development that is aesthetically pleasing and creates a unique identity.
CE‐2.2
Development Review. We require those proposing new development and redevelopment to demonstrate how their projects will create appropriately unique, functional, and sustainable places that will compete well with their competition within the region.
Consistent: The design guidelines for mixed‐use development aim to provide for high‐quality development that is aesthetically pleasing and creates a unique identity. The standards and concept plans also provide sustainable strategies and functional spaces.
CE‐2.3
Interim Development. We require interim development that does not reflect the long‐term Vision, be limited in scale of development so that the investment can be sufficiently amortized to make Vision‐compatible redevelopment financially feasible.
N/A
CE‐2.4
Protection of Investment. We require that new development and redevelopment protect existing investment by providing architecture and urban design of equal or greater quality.
Consistent: The design guidelines for mixed‐use development aim to provide for high‐quality development that is aesthetically pleasing and creates a unique identity.
705
CE‐2.5
Private Maintenance. We require adequate maintenance, upkeep, and investment in private property because proper maintenance on private property protects property values. (Link to Community Design Element Policy CD‐5.1)
Consistent: Development of private property within the Specific Plan will be privately maintained.
CE‐2.6
Public Maintenance. We require the establishment and operation of maintenance districts or other vehicles to fund the long‐term operation and maintenance of the public realm whether on private land, in rights‐of‐way, or on publicly‐owned property. (Link to Community Design Element Policy CD‐
5.1)
N/A
GOAL
CE‐3
Decision‐making deliberations that incorporate the full short‐term and long‐term economic and fiscal implications of proposed City Council actions.
Policies
CE‐3.1 Fiscal Impact Disclosure. We require requests for City Council action to disclose the full fiscal impacts, including direct and indirect costs. N/A
CE‐3.2
General Plan Amendments. We require those proposing General Plan amendments to disclose reasonably foreseeable impacts through a fiscal analysis.
Consistent: There are no foreseen fiscal impacts on the City. All on‐site improvements will be undertaken and financed by the developer. The costs for related off‐site improvements shall be the responsibility of either the Developer or the City as defined further in the conditions of the approval and Development Agreement.
CE‐3.3
Long‐Term Funding Disclosure. We require those requesting City support or funding for projects or programs to disclose if and how they can be continued without further City support.
Consistent: There are no foreseen fiscal impacts on the City. All on‐site improvements will be undertaken and financed by the developer. The costs for related off‐site improvements shall be the responsibility of either the Developer or the City as defined further in the conditions of the approval and Development Agreement.
CE‐3.4
Improving Fiscal Decision‐Making. We periodically assess the accuracy of projections for staff time and City resources and use the assessment results to improve our fiscal decision‐making process.
N/A
CE‐3.5
Sustainable Development. We recognize impacts to municipal finances as an element of sustainability, and we require claims of sustainability to assess fiscal impacts.
N/A
CE‐3.6
Fully Funded Liability. We require long‐term liabilities, such as retiree medical benefits, employee accrued leave balances, and self‐insured liability claims to be fully funded to ensure sound, long‐term fiscal health.
Consistent. All long‐term liabilities will be in accordance with industry standard.
CE‐3.7
Programmatically Balanced Budget. We require that the annual budget include appropriations allocated in a manner to meet the goal of the programmatically balanced budget.
N/A
706
CE‐3.8
Budget Margins. We require that the adopted budget for revenue and expenditures reflect sufficient budget margins to minimize negative impacts to City services due to economic uncertainties.
N/A
CE‐3.9
Complete Comparative Context. We require that our annual budget process provide the complete comparative context for proposed new and increased funding so decision makers can fully understand the trade‐offs among budget choices.
N/A
Safety Element
GOAL
S‐1
Minimized risk of injury, loss of life, property damage, and economic and social disruption caused by earthquake‐induced and other geologic hazards.
Policies
S‐1.1
Implementation of Regulations and Standards. We require that all new habitable structures be designed in accordance with the most recent California Building Code adopted by the City, including provisions regarding lateral forces and grading.
Consistent: Development within the Specific Plan will comply with California Building Code adopted by the City, including provisions regarding lateral forces and grading.
S‐1.2
Entitlement and Permitting Process. We follow state guidelines and the California Building Code to determine when development proposals must conduct geotechnical and geological investigations.
Consistent: Development within the Specific Plan will comply with California Building Code adopted by the City, including provisions regarding lateral forces and grading.
S‐1.3 Continual Update of Technical Information. We maintain up‐to‐date California Geological Survey seismic hazard maps. N/A
S‐1.4
Seismically Vulnerable Structures. We conform to state law regarding unreinforced masonry structures and coordinate with not‐for‐profits to facilitate seismic retrofits in environmental justice areas and for low‐income households.
N/A
GOAL
S‐2 Minimized risk of injury, loss of life, property damage and economic and social disruption caused by flooding and inundation hazards.
Policies
S‐2.1
Entitlement and Permitting Process. We require hydrological studies prepared by a state‐certified engineer when new development is located in a 100‐year or 500‐year floodplain to assess the impact that the new development will have on the flooding potential of existing development down‐gradient.
TBD
S‐2.2
Floodplain Mapping. We require any new development partially or entirely in 100‐year flood zones to provide detailed floodplain mapping for 100‐ and 200‐ year storm events as part of the development approval process.
N/A: The Specific Plan is not in the 100‐year flood zones. 707
S‐2.3
Facilities that Use Hazardous Materials. We comply with state and federal law and do not permit facilities using, storing, or otherwise involved with substantial quantities of onsite hazardous materials to be located in the 100‐ year flood zone or 500‐year flood zone unless all standards of elevation, floodproofing, and storage have been implemented to the satisfaction of the Building Department.
N/A: There are no hazardous materials stored, produced, or transported to the site.
S‐2.4
Prohibited Land Uses. We prohibit the development of new essential and critical facilities in the 100‐year floodplain and discourage the development of new essential and critical facilities in the 500‐year floodplain unless all standards of elevation and flood proofing demonstrate that a facility can be safe and operational during a flood event, implemented to the satisfaction of the Building Department.
N/A
S‐2.5
Stormwater Management. We maintain the storm drain system to convey a 100‐year storm, when feasible, and encourage environmental site design practices to minimize flooding and increase groundwater recharge, including natural drainage, green infrastructure, and permeable ground surfaces. (Link to Environmental Resources Element)
N/A: The Specific Plan is not in the 100‐year flood zones.
S‐2.6 Use of Flood Control Facilities. We encourage joint use of flood control facilities as open space or other types of recreational facilities.
Consistent: The Specific plan is located immediately west of the Cucamonga Creek Channel. This fully improved facility provides regional flood control and storm conveyance to the surrounding area. A portion of the flood control channel could be re-imagined as a multimodal greenway that promotes outdoor activity.
S‐2.7
Collaboration Between Agencies. Collaborate with the San Bernardino County Flood Control District and other state and federal agencies to maintain flood‐ control infrastructure to minimize flood damage.
N/A
GOAL
S‐3
Reduced risk of death, injury, property damage and economic loss due to fires, accidents and normal everyday occurrences through prompt and capable emergency response.
Policies
S‐3.1
Prevention Services. We proactively mitigate or reduce the negative effects of fire, hazardous materials release, and structural collapse by implementing the regularly adopted California Fire Code and California Building Code.
Consistent: Development within the Specific Plan will comply with California Fire Code and California Building Code adopted by the City.
S‐3.2 Community Outreach. We provide education to local schools and community groups to promote personal and public safety. N/A
708
S‐3.3
Fire and Emergency Medical Services. We maintain sufficient fire stations, equipment and staffing to respond effectively to emergencies and meet the needs of the community and state requirements.
N/A
709
S‐3.4 Special Team Services. We maintain effective special rescue services. N/A
S‐3.5
Emergency Notifications. We maintain a public alert notification system that efficiently conveys information about imminent, developing, ongoing, and concluding emergency events to residents and visitors, working with network providers that translate information into other languages.
N/A
S‐3.6
Interagency Cooperation. In order to back up and supplement our capabilities to respond to emergencies, we participate in the California Fire Rescue and Mutual Aid Plan.
N/A
S‐3.7 Water Supply and System Redundancy. We monitor our water system to manage and ensure adequate firefighting water supplies. N/A
S‐3.8
Fire Prevention through Environmental Design. We require new development to incorporate fire prevention consideration in the design of streetscapes, sites, open spaces, and buildings. (Link to Community Design Element) Consistent: Development within the Specific Plan will incorporate fire prevention considerations in the design of streetscapes, sites, open spaces, and buildings. See landscape plan concepts.
S‐3.9 Resource Allocation. We analyze fire data to evaluate the effectiveness of our fire prevention and reduction strategies and allocate resources accordingly.
N/A
GOAL
S‐4 An environment where noise does not adversely affect the public’s health, safety, and welfare.
Policies
S‐4.1 Noise Mitigation. We utilize the City’s Noise Ordinance, building codes, and subdivision and development codes to mitigate noise impacts.
Consistent: Development within the Specific Plan is allowed equivalent noise levels within 70 dbA per the City’s Zoning Code for exterior noise standards for lodging facilities.
S‐4.2
Coordination with Transportation Authorities. We collaborate with airport owners, FAA, Caltrans, SBCTA, SCAG, neighboring jurisdictions, and other transportation providers in the preparation and maintenance of, and updates to transportation‐related plans to minimize noise impacts and provide appropriate mitigation measures.
N/A
S‐4.3 Airport Noise Mitigation. We aggressively pursue funding and utilize programs to reduce effects of aircraft noise in impacted areas of our community.
N/A
S‐4.4 Truck Traffic. We manage truck traffic to minimize noise impacts on sensitive land uses. N/A
S‐4.5 Roadway Design. We design streets and highways to minimize noise impacts. N/A 710
S‐4.6
Airport Noise Compatibility. We utilize information from Airport Land Use Compatibility Plans to prevent the construction of new noise‐sensitive land uses within airport noise impact zones.
N/A
S‐4.7
Rail Noise Mitigation. We require residential and mixed use development of vibration‐sensitive uses in areas within 200 feet of rail to evaluate for indoor vibration levels and mitigate any exceedances of the Federal Transit Administration vibration‐annoyance criteria.
N/A
GOAL
S‐5 Minimize the risk of injury, property damage, and economic loss resulting from windstorms and wind‐related hazards.
Policies
S‐5.1 Dust Control Measures. We require the implementation of Best Management Practices for dust control at all excavation and grading projects.
Consistent: Development within the Specific Plan requires little to no grading.
However, Best Management Practices will be implemented for dust control.
S‐5.2 Grading in High Winds. We prohibit excavation and grading during strong wind conditions, as defined by the Building Code.
Consistent: Development within the Specific Plan requires little to no grading.
Grading during strong wind conditions will be prohibited, as defined by the Building Code.
S‐5.3
Public Safety Power Shutoffs. We coordinate with utility companies to minimize service interruptions, such as Public Safety Power Shutoffs, before, during, and after windstorms and wind‐related hazards.
N/A
GOAL
S‐6 Reduced potential for hazardous materials exposure and contamination.
Policies
S‐6.1
Disclosure and Notification. We enforce disclosure laws that require all users, producers, and transporters of hazardous materials and wastes to clearly identify the materials that they store, use, or transport.
N/A
S‐6.2 Response to Hazardous Materials Releases. We respond to hazardous materials incidents and coordinate these services with other jurisdictions.
N/A
S‐6.3
Safer Alternatives. We minimize our use of pesticides and other hazardous materials by choosing non‐toxic alternatives that do not pose a threat to the environment, especially when it could affect public park facilities and open spaces.
Consistent: Safer non‐toxic alternatives will be used for the maintenance of landscaped areas within the Specific Plan.
S‐6.4
Safe Storage and Maintenance Practices. We require that the users of hazardous materials be adequately prepared to prevent and mitigate hazardous materials releases.
N/A
711
S‐6.5
Location of Hazardous Material Facilities. We regulate facilities that will be involved in the production, use, storage, or disposal of hazardous materials, pursuant to federal, state, county, and local regulations, so that impacts to the environment and sensitive land uses are mitigated. We prohibit new hazardous waste facilities in close proximity to sensitive land uses and environmental justice areas.
N/A
S‐6.6
Location of Sensitive Land Uses. We prohibit new sensitive land uses from locating within airport safety zones and near existing sites that use, store, or generate large quantities of hazardous materials. (Link to Land Use Element) N/A
S‐6.7 Household Hazardous Waste. We support the proper disposal of household hazardous substances. N/A
S‐6.8
Mitigation and Remediation of Groundwater Contamination. We actively participate in local and regional efforts directed at both mitigating environmental exposure to contaminated groundwater and taking action to clean up contaminated groundwater once exposure occurs.
N/A
S‐6.9 Remediation of Methane. We require development to assess and mitigate the presence of methane, per regulatory standards and guidelines.
N/A
GOAL
S‐7
Residential neighborhoods, commercial areas, and industrial districts that are kept safe through a multi‐faceted approach of prevention, suppression, and community involvement in public safety.
Policies
S‐7.1 Police Unit Response. We respond to calls for service in a timely manner. N/A
S‐7.2 Community Oriented Problem Solving (C.O.P.S.). We support and maintain the mission of COPS to identify and resolve community problems.
N/A
S‐7.3 Prevention Services. We provide crime prevention programs targeted to youth, parents, seniors, businesses, and neighborhoods. N/A 712
S‐7.4
Crime Prevention through Environmental Design (CPTED). We require new development to incorporate CPTED in the design of streetscapes, sites, open spaces, and buildings.
Consistent: CPTED techniques are implemented in the Specific Plan. These include but not limited to the following:
‐ Design public spaces, such as lobbies, and entrances, to maximize visibility. ‐ Use landscaping and lighting strategically to eliminate hiding spots and create clear sightlines.
‐ Limit access points to the hotel and use controlled entry systems. ‐ Use fencing, gates, and other barriers to control access to the property. ‐ Use design elements, such as changes in paving materials or landscaping, to delineate different areas.
‐Provide well‐lit pathways and amenities that encourage guests to use outdoor spaces.
‐Use clear and informative signage to guide guests and staff around the property.
S‐7.5 Interdepartmental Coordination. We utilize all City departments to help reduce crime and promote public safety. N/A
S‐7.6
Partnerships. We partner with other local, state, and federal law enforcement agencies and private security providers to enhance public safety services in Ontario.
N/A
S‐7.7 Resource Allocation. We analyze crime data to evaluate the effectiveness of crime prevention and reduction strategies and allocate resources accordingly.
N/A
S‐7.8 Social Services. We support behavioral health and social services as part of the public safety solution. N/A
GOAL
S‐8 Disaster resilient, prepared community through effective emergency/disaster preparedness, response, mitigation, and recovery.
Policies
S‐8.1
State and Federal Mandates. We maintain emergency management programs that meet the requirements of the State of California Standardized Emergency Management System (SEMS) and the National Incident Management System (NIMS).
N/A
S‐8.2
Emergency Management Plans. We maintain, update, and adopt the Emergency Operations Plan (EOP) and incorporate, by reference the City’s Hazard Mitigation Plan (HMP).
N/A
S‐8.3
Emergency/Disaster Training Exercises. We conduct training and exercises to prepare for and evaluate emergency/disaster response and recovery procedures.
N/A
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S‐8.4
Interagency Collaboration. We maintain partnerships, including automatic aid agreements, with fire protection, police and sheriff departments, and emergency management agencies in San Bernardino and Riverside County to strengthen emergency response.
N/A
S‐8.5
Interdepartmental Coordination. We utilize all City departments to help support emergency/disaster preparedness, response, mitigation, and recovery.
N/A
S‐8.6
Community Outreach. We provide education to the community to promote personal, family, and community emergency preparedness to both natural and human‐generated hazards.
N/A
S‐8.7
Extreme Heat and Air Quality. We work to ensure that all community members are informed about and have access to community cooling centers and clean air centers during extreme heat events or wildfires, with a focus on serving environmental justice communities. We support the development of extreme heat emergency response policies and practices to address these critical health risks in the community.
N/A
S‐8.8
Regional Partnerships for Climate Adaptation. We partner with local governments in San Bernardino County, Riverside County, and Inland Southern California Climate Collaborative to develop regional climate change adaptation strategies and programs.
N/A
S‐8.9
Backup Power in Critical Facilities. We require backup power be maintained in critical facilities. We encourage backup power solutions that include renewable energy components.
N/A
GOAL
S‐9
Incorporate energy efficient practices and renewable energy systems to improve air quality, comfort, and energy reliability during temporary power outages.
Policies
S‐9.1
Solar Energy. We support and may incentivize the installation of residential and commercial solar panels and battery storage systems that can provide electricity during power outages.
N/A
S‐9.2
Renewable Energy. Renovate existing city‐owned facilities and plan future facilities to include renewable energy generation capacity and battery storage as part of an effort to make public facilities and services greener and more resilient to power outages.
N/A
S‐9.3
Energy Efficiency Retrofits. We support and may incentivize retrofits to residential and commercial buildings that improve energy efficiency and insulation from extreme temperatures, giving priority towards low‐income applicants.
N/A
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Mobility Element
M‐1 A system of roadways that meets the mobility needs of a dynamic and prosperous Ontario.
Policies
M‐1.1
Roadway Design and Maintenance. We require our roadways to:
1. Comply with federal, state, and local design and safety standards;
2. Meet the needs of multiple transportation modes and users;
3. Handle the capacity envisioned in the City of Ontario Master Plan of Streets and Highways;
4. Be maintained in accordance with best practices;
5. Be compatible with the streetscape and surrounding land uses; and
6. Promote the efficient flow of all modes of traffic through the implementation of intelligent transportation systems and travel demand management strategies.
(Link to Community Design Element Policies CD‐2.5, CD‐2.6, CD‐2.16, CD‐3.3) N/A: There are no roadways proposed within the Specific Plan other than the entranceway and access to the basement. These are designed with best practices in mind that promote the efficient flow of traffic.
M‐1.2 Mitigation of Impacts. We require development to mitigate its traffic impacts. Consistent: Traffic impacts will be mitigated based on a development agreement with the City.
M‐1.3
Agency Coordination on Roadway Improvements. We work with Caltrans, SBCTA, and others to identify, fund, and implement needed improvements to roadways when necessary. We work with neighboring jurisdictions to promote regional connectivity, access, and meet operational level of service standards at the City limits.
N/A
M‐1.4
Complete Streets. We work to provide a complete, balanced, context‐aware, multimodal transportation network that meets the needs of all users of streets, roads, and highways, including motorists, pedestrians, bicyclists, children, persons with disabilities, seniors, movers of commercial goods, and users of public transportation. We prioritize implementation of complete streets improvements in environmental justice areas to facilitate opportunities for residents to use active transportation systems.
N/A: There are no roadways proposed within the Specific Plan other than the entranceway and access to the basement. These are designed with best practices in mind that promote efficient traffic flow and allow for pedestrian movement. The Specific Plan also improves the pedestrian realm along Holt Boulevard and Guasti Road which will contribute to complete street. 715
M‐1.5
Level of Service. Maintain a peak hour Level of Service (LOS) E or better at all intersections. Maintain Level of Service D or better on arterial streets in the City. Develop and maintain a list of locations where LOS E or LOS F are considered acceptable and would be exempt from this level of service policy.
Considerations for LOS exemption include being restricted by environmental constraints, lacking available right‐of‐way, deterring an increase in VMT, or degrading other modes of travel (such as bicycle or pedestrian infrastructure).
Consistent: Traffic impacts will be mitigated based on a development agreement with the City.
M‐1.6
Reduce Vehicle Miles Traveled. We will strive to reduce VMT through a combination of land use, transportation projects, travel demand management strategies, and other trip reduction measures in coordination with development projects and public capital improvement projects.
Consistent: The Specific Plan is a mixed‐use development with a hotel and retail area. It is transit supportive as it is located in the vicinity of Metrolink and Amtrak Stations and BRT route. It encourages active transportation by providing an enhanced public realm and bike facilities. The plan encourages the improvement of and connection to Cucamonga Creek Trail. The Local Serving Retail allows for bike rentals . The Specific Plan Development Standards call for electric charging stations in the parking areas. All of the above contribute to the lowering of VMT.
M‐2 A system of trails and corridors that facilitate and encourage active modes of transportation.
Policies
M‐2.1
Active Transportation. We maintain our Active Transportation Master Plan to create a comprehensive system of on‐ and off‐street bikeways and pedestrian facilities that are safe, comfortable, and accessible and connect residential areas, businesses, schools, parks, and other key destination points.
Consistent: The plan encourages active transportation by providing an enhanced public realm and bike facilities. The plan encourages the improvement of and connection to Cucamonga Creek Trail.
M‐2.2
Bicycle System. We provide off‐street multipurpose trails and Class II bikeways as our preferred paths of travel and use the Class III for connectivity in constrained circumstances. When truck routes and bicycle facilities share a right‐of‐way, we prefer Class I or Class IV bicycle facilities. We require new development to include bicycle facilities, such as bicycle parking and secure storage areas.
Consistent: The plan encourages active transportation by providing an enhanced public realm and bike facilities. The plan encourages the improvement of and connection to Cucamonga Creek Trail.
M‐2.3
Pedestrian Walkways. We require streets to include sidewalks and visible crosswalks at major intersections where necessary to promote safe and comfortable mobility between residential areas, businesses, schools, parks, recreation areas, and other key destination points. (Link to Community Design Policy CD‐3.3)
Consistent: There are no roadways proposed within the Specific Plan other than the entranceway and access to the basement. These are designed with best practices and features that allow for pedestrian movement. The Specific Plan also improves the pedestrian realm along Holt Boulevard and Guasti Road which will contribute to the safe and comfortable mobility between the Specific Plan and surrounding uses.
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M‐2.4
Network Opportunities. We use public rights‐of‐way and easements such as, utility easements, levees, drainage corridors, road rights‐of‐way, medians, and other potential options to maintain and expand our bicycle and pedestrian network. In urban, mixed‐ use, and transit‐oriented Place Types, we encourage the use of underutilized public and private spaces to expand our public realm and improve pedestrian and bicycle connectivity. (Link to Community Design Element Urban, Mixed Use, and Transit‐oriented Place Types Section)
Consistent: The Specific Plan is transit‐supportive and located in the vicinity of Metrolink and Amtrack stations as well as along the future BRT route.
M‐3 A public transit system that is a viable alternative to automobile travel and meets basic transportation needs of the transit‐dependent.
Policies
M‐3.1
Transit Partners. We maintain a proactive working partnership with transit providers to ensure that adequate public transit service is available, cost‐ efficient, and convenient, particularly for residents in environmental justice areas.
N/A
M‐3.2
Alternative Transit Facilities at New Development. We require new development adjacent to an existing or planned transit stop to contribute to the creation of transit facilities, such as bus shelters, transit bays and turnouts, and bicycle facilities, such as secure storage areas.
N/A: While the Specific Plan is in the vicinity of the Metrolink and Amtrack stations, it is not adjacent to these facilities. The same goes with the BRT route.
The plan does provide for bike parking.
M‐3.3
Transit‐Oriented Development. We may provide additional development‐ related incentives to those inherent in the Land Use Plan for projects that promote transit use and reduce vehicle miles traveled.
Consistent: The Specific Plan is a mixed‐use development with a hotel and retail area. The future multimodal transit station is under consideration within the Mixed-Use Area, which will link rail, regional, local, and airport transit. The Specific Plan is transit‐supportive and contributes to the lowering of VMT.
M‐3.4
Bus Rapid Transit (BRT) Corridors. We work with regional transit agencies to implement BRT service and reduce vehicle miles traveled by targeting destinations and corridors with the highest number of potential riders.
N/A
M‐3.5
Light Rail. We support extension of the Metro Rail Gold Line to Ontario, and will work to secure station locations at the proposed multimodal transit center.
N/A
M‐3.6 Metrolink Expansion. We advocate expansion of Metrolink service to include the Downtown and the multimodal transit center. N/A
M‐3.7
High Speed Rail. We encourage the development of high‐speed rail systems that would enhance regional mobility in Southern California and serve the City of Ontario.
N/A
717
M‐3.8
Feeder Systems. We work with regional transit agencies to secure convenient feeder service from the Metrolink station and the proposed multimodal transit center to employment centers in Ontario.
N/A
M‐3.9
Ontario Airport Metro Center Circulator. We will explore development of a convenient mobility system, including but not limited to shuttle service, people mover, and shared car system, for the Ontario Airport Metro Center.
N/A
M‐3.10
Multimodal Transportation Center. We intend to ensure the development of a multimodal transportation center near ONT airport to serve as a transit hub with amenities for transit riders, pedestrians, and bicyclists transitioning to local buses, BRT, the Gold Line, high‐speed rail, the proposed Ontario Airport Metro Center Circulator, and other future transit modes. We support locations for the multimodal transportation center that are north of ONT airport, between Vineyard Avenue and Interstate 15.
N/A
M‐3.11
Transit and Community Facilities. We require the future development of community‐wide serving facilities to be sited in transit‐ready areas that can be served and made accessible by public transit. Conversely, we plan (and coordinate with other transit agencies to plan) future transit routes to serve existing community facilities.
N/A
M‐4 An efficient flow of goods through the City that maximizes economic benefits and minimizes negative impacts.
Policies
M‐4.1
Truck Routes. We designate and maintain a network of City truck routes that provide for the safe and efficient transport of goods while minimizing negative impacts on local circulation and noise‐sensitive land uses, as shown on Exhibit M‐04, Truck Routes. We will minimize conflicts on truck routes through the design and implementation of buffers between travel lanes and pedestrian and bicycle facilities on designated truck routes.
N/A
M‐4.2
Regional Participation. We work with regional and subregional transportation agencies and adjacent cities to plan and implement goods movement strategies, including regional truck routes, plans and projects that improve mobility, support the efficient movement of goods, and minimize negative environmental impacts. (Link to Environmental Resources Policy ER‐4.3) N/A
M‐4.3 Railroad Grade Separations. We eliminate at‐grade rail crossings identified on Exhibit M‐01, Roadway Classifications. N/A
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M‐4.4
Environmental Considerations. We support both local and regional efforts to reduce/eliminate the negative environmental impacts of goods movement through the planning and implementation of truck routing and the development of a plan to evaluate the future needs of clean fueling/recharging and electrified truck parking.
N/A
M‐4.5
Air Cargo. We support and promote a ONT airport that accommodates 1.6 million tons of cargo per year, as long as the impacts associated with that level of operations are planned for and mitigated.
N/A
GOAL
M‐5 A proactive leadership role in helping identify and facilitate implementation of strategies that address regional transportation challenges.
Policies
M‐5.1 Regional Leadership. We maintain a leadership role to help identify and implement potential solutions to long‐term regional transportation problems.
N/A
M‐5.2
Land Use Compatibility with Regional Transportation Facilities. We work with ONT, railroads, Caltrans, SBCTA, and other transportation agencies to minimize impacts.
N/A
Community Design Element
GOAL
CD‐1
A dynamic, progressive city containing distinct and complete places that foster a positive sense of identity and belonging among residents, visitors, and businesses.
Policies
CD‐1.1
City Identity. We take actions that are consistent with the City being a leading urban center in Southern California while recognizing, enhancing, and preserving the character of our existing viable neighborhoods.
Consistent: The Specific Plan is a mixed‐use development with hotel and Local Serving Retail uses. The design standards within the Specific Plan aim to provide for high‐quality development that is aesthetically pleasing and contributes to City identity.
CD‐1.2
Place Types. We establish 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. (Link to Community Design Element Urban, Mixed Use, and Transit‐oriented Place Types Section) Consistent: The Specific Plan is a mixed‐use development with hotel and Local Serving Retail uses. The design standards within the Specific Plan aim to provide for high‐quality development that is aesthetically pleasing and contributes to City identity. The concept plans and elevations are contemporary and aesthetically pleasing. The public plaza and public realm along Holt Boulevard and Guasti Road contribute to public placemaking whereas the private open space and recreational areas contribute to placemaking elements within the development. The signage, lighting, landscaping, and paving standards aim to contribute to placemaking. 719
CD‐1.3
Existing Neighborhoods. We require the existing character of viable residential and non‐residential neighborhoods be preserved, protected, and enhanced.
N/A
CD‐1.4
Transportation Corridors. We will enhance our major transportation corridors within the City through landscape, hardscape, signage and lighting. The extent of enhancement should be appropriate to the use, type, and context of each corridor.
Consistent: The Specific Plan includes a public plaza and public realm along Holt Boulevard and Guasti Road which contribute to public placemaking and enhancement of these corridors.
CD‐1.5
View Corridors. We require all major north‐south streets be designed and redeveloped to feature views of the San Gabriel Mountains, which are part of the City’s visual identity and a key to geographic orientation. Such views should be free of visual clutter, including billboards and may be enhanced by framing with trees.
N/A
GOAL
CD‐2
A high level of design quality resulting in neighborhoods, commercial areas, public spaces, parks, and streetscapes that are attractive, safe, functional, human‐ scale, and distinct.
Policies
CD‐2.1
Quality Building Design and Architecture. We encourage all development projects to convey visual interest and character through:
1. Building volume, massing, and height to provide context‐appropriate scale and proportion;
2. A true architectural style which is carried out in plan, section, and elevation through all aspects of the building and site design and appropriate for its setting; and
3. Exterior building materials that are articulated, high quality, durable, and appropriate for the architectural style.
Consistent: The development standards and design guidelines chapters in the Specific Plan document discuss massing, architecture, materials, and related topics. The elevation rendering shows a high‐quality design with contemporary architecture and high‐quality materials (refer to the material palette in the design guidelines). Digital illumination is also used to provide a cutting edge to the architecture of the building. There is a regularity in architecture through the use of architectural fins that create vertical elements, and they are intercepted by horizontal elements forming a grid‐like pattern. 720
CD‐2.2
Neighborhood Design. We create distinct residential neighborhoods that promote a sense of community and identity by emphasizing access, connectivity, livability, and social interaction through such elements as:
1. A pattern of smaller, walkable blocks that promote activity, safety, and access to nearby amenities and services;
2. Varied parcel sizes and lot configurations to accommodate a diversity of housing types;
3. Traffic calming measures to slow traffic and promote walkability while maintaining acceptable traffic flows and emergency evacuation access;
4. Floor plans that encourage views onto the street and de‐emphasize the visual and physical dominance of garages (introducing the front porch as the “outdoor living room”), as appropriate; and
5. Landscaped parkways, with sidewalks separated from the curb and designed to maximize safety, comfort, and aesthetics for all users.
Consistent: The Specific Plan includes a public plaza and public realm improvements of the sidewalk areas and edge friction elements such as curbs, street trees, lighting, etc. along Holt Boulevard and Guasti Road contributing to walkability and traffic calming. These also maximize safety, comfort, and aesthetics for all users. The hotels have windows looking onto Guasti Road and Holt Boulevard that provide views of the street. Parking is provided underground.
CD‐2.3
Commercial Areas. We desire commercial areas and centers to be distinctive, pedestrian friendly, functional, and vibrant with a range of businesses, places to gather, and connectivity to the neighborhoods they serve.
Consistent: The Specific Plan includes a public plaza and public realm improvements of the sidewalk areas and edge friction elements such as curbs, street trees, lighting, etc. along Holt Boulevard and Guasti Road which contribute to walkability and traffic calming. These also maximize safety, comfort, and aesthetics for all users.
CD‐2.4
Urban, Mixed Use, and Transit‐oriented Areas. We establish Place Types to require mixed use, urban, and transit‐oriented areas to be designed and developed as pedestrian oriented areas that are integrated with adjacent neighborhoods and promote a vibrant, comfortable, and functional environment, as defined for each Place Type. (Link to Community Design Element Urban, Mixed Use, and Transit‐oriented Place Types Section) Consistent: The Specific Plan includes a public plaza and public realm improvements of the sidewalk areas and edge friction elements such as curbs, street trees, lighting, etc. along Holt Boulevard and Guasti Road which contribute to walkability and traffic calming. These also maximize safety, comfort, and aesthetics for all users.
CD‐2.5
Streetscapes. We design new and, when necessary, retrofit existing streets to improve walkability, bicycling and transit integration, strengthen connectivity, and enhance community identity through improvements to the public right‐of‐ way such as sidewalks, street trees, parkways, curbs, street lighting and street furniture.
Consistent: The Specific Plan includes a public plaza and public realm improvements of the sidewalk areas and edge friction elements such as curbs, street trees, lighting, etc. along Holt Boulevard and Guasti Road which addresses this policy.
721
CD‐2.6
Connectivity. We promote development of local street patterns, multimodal networks, and connected public spaces that create and unify neighborhoods, rather than divide them, and create cohesive and continuous corridors, rather than independent “islands” through the following means:
1. Local street networks that provide access both between subdivisions and within neighborhoods and discourage through traffic;
2. A local street system that is logical and understandable for the user. A grid system is preferred to avoid circuitous and confusing travel paths between internal neighborhood areas and adjacent arterials and to provide adequate emergency and evacuation access; and
3. Pedestrian and bicycle networks that provide convenient access to neighborhoods and nearby destinations, such as schools, parks, other public spaces, commercial areas, and transit stops.
Consistent: The Circulation Plan complements the Land Use Plan by linking the hotel and retail uses to adjacent land uses and is designed to enhance connectivity and facilitate the movement of various transportation modes.
Additionally, the development of the Specific Plan Area will include sidewalks around the site and development of a plaza at the intersection of Holt Boulevard and Guasti Road.
CD‐2.7
Sustainability. We collaborate with the development community to design and build neighborhoods, streetscapes, sites, outdoor spaces, landscaping, and buildings to reduce energy demand through solar orientation, maximum use of natural daylight, passive solar and natural ventilation, building form, mechanical and structural systems, building materials, and construction techniques.
Consistent: The Development Standards and Design Guidelines within the Specific plan include many sustainable practices such as shared parking, drought‐tolerant landscaping, transit‐supportive design, mixed‐use development, pedestrian support, electric charging stations, bike parking facilities, provision of open spaces, heat island reduction, light pollution reduction, enhanced indoor air quality strategies, low‐emitting materials, daylighting, and so on that are consistent with Sustainable design.
CD‐2.8
Safe Design. We incorporate defensible space design into new and existing developments to ensure the maximum safe travel and visibility on pathways, corridors, and open space and at building entrances and parking areas by avoiding physically and visually isolated spaces, maintaining visibility and accessibility, and using lighting.
Consistent: All outdoor spaces, including entrances and parking areas, are designed to ensure maximum visibility and adequate lighting. This includes both public and private areas. Review the parking and lighting standards and guidelines within the Specific Plan.
CD‐2.9
Landscape Design. We encourage durable, sustainable, and drought‐tolerant landscaping materials and designs that enhance the aesthetics of structures, create and define public and private spaces, and provide shade and environmental benefits.
Consistent: The Specific Plan includes many sustainable practices to the extent possible including drought‐tolerant landscaping, low‐emitting materials, paving materials, reduced heat island effect, daylighting, and other techniques. A variety of paving materials are used as shown in the paving palette in design guidelines to delineate and define spaces both public and private.
722
CD‐2.10
Parking Areas. We require all development, including single‐family residential, to minimize the visual impact of surface, structured, and garage parking areas visible from the public realm in an aesthetically pleasing, safe and environmentally sensitive manner. Examples include:
1. Surface parking: Shade trees, pervious surfaces, urban run‐off capture and infiltration, and pedestrian paths to guide users through the parking field.
2. Structured parking: facade articulation, screening, appropriate lighting, and landscaping.
3. Garage parking: providing access to single‐family residential garages through alley access, recessing garages from the frontage to emphasize front doors or active living spaces.
N/A: The Specific Plan does not include residential. The parking is provided underground.
CD‐2.11
Entry Statements. We encourage the inclusion of amenities, signage, and landscaping at the entry to neighborhoods, commercial centers, mixed use areas, industrial developments, and public places that reinforce them as uniquely identifiable places.
Consistent: The Specific Plan entrance is designed with attractive landscaping that features terraced planting, an entry canal water feature, an attractive entranceway, an arrival court with sculpture, and outdoor dining spaces. The local retail area includes a plaza, an attractive landscaping buffer, and outdoor dining spaces.
CD‐2.12
Site and Building Signage. We encourage the use of sign programs that utilize complementary materials, colors, and themes. Project signage should be designed to effectively communicate and direct users to various aspects of the development and complement the character of the structures.
Consistent: The Specific Plan sign program is well‐defined in in the development standards and provides for the size, location, and themes of the signage. The signage will be made of durable materials and will be complementary to the building design.
CD‐2.13
Entitlement Process. We work collaboratively with all stakeholders to ensure a high degree of certainty in the efficient review and timely processing of all development plans and permits.
N/A
CD‐2.14
Availability of Information. We provide easy access to information for developers, builders and the public about design quality, construction quality, and sustainable building practices.
N/A
CD‐2.15
Leverage Professional and Trade Organizations. We support excellence in design and construction quality through collaboration with trade and professional organizations that provide expertise, resources and programs for developers, builders, and the public.
N/A
CD‐2.16
Transit Stops. We require transit stops be conveniently located, well lit, safe, and clearly accessible to pedestrians, bicyclists, and people of all abilities.
N/A
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GOAL
CD‐3
Vibrant urban environments that are organized around intense buildings, pedestrian and transit areas, public plazas, and linkages between and within developments that are conveniently located, visually appealing and safe during all hours.
Policies
CD‐3.1
Unique Identity. We promote development that heightens the unique character and identity of each Place Type by requiring compatible land uses and land planning, site design, and building design that promotes an active public realm.
Consistent: The design guidelines for mixed‐use development aim to provide for high‐quality development that is aesthetically pleasing and contributes to the City's identity. The concept plans and elevations are contemporary and aesthetically pleasing. The public plaza and public realm along Holt Boulevard and Guasti Road contribute to public placemaking whereas the private open space and recreational areas contribute to placemaking elements within the development. The signage, lighting, landscaping, and paving standards aim to contribute to placemaking.
CD‐3.2
Comfortable, Human‐Scale Public Realm. We require that public spaces, including streets, parks, and plazas on both public and private property be designed to maximize safety, comfort and aesthetics and connect to the citywide pedestrian, vehicular, and bicycle networks.
Consistent: The Specific Plan includes a public plaza and public realm improvements of the sidewalk areas and edge friction elements such as curbs, street trees, lighting, etc. along Holt Boulevard and Guasti Road contribute to walkability and traffic calming. These also maximize safety, comfort, and aesthetics for all users.
CD‐3.3
Complete and Connected Network. We require that pedestrian, vehicular, and bicycle circulation on both public and private property be coordinated to provide connections internally and externally to adjacent neighborhoods and properties (existing and planned) through a system of local roads and trails that promote walking and biking to nearby destinations (including existing and planned parks, commercial areas, and transit stops) and are designed to maximize safety, comfort, and aesthetics.
Consistent: The Specific Plan encourages active transportation by providing an enhanced public realm and bike facilities, including bike rentals as an allowable use in the Local Serving Retail area. The plan encourages the improvement of and connection to Cucamonga Creek Trail. The Specific Plan also improves the pedestrian realm along Holt Boulevard and Guasti Road.
The public plaza and public realm improvements of the sidewalk areas and edge friction elements such as curbs, street trees, lighting, etc. along Holt Boulevard and Guasti Road contribute to walkability. All of the above encourage physical activity.
CD‐3.4
Context‐Aware and Appropriate Design. We require appropriate building and site design that complements existing development, respects the intent and identity of the Place Type, and provides appropriate transitions and connections between adjacent uses to ensure compatibility of scale, maintain an appropriate level of privacy for each use, and minimize potential conflicts.
Consistent: The Specific Plan is consistent with General Plan Update‐ The Ontario Plan's "Guasti District".
CD‐3.5
Active Frontages. We create lively pedestrian streetscapes by requiring primary building, business, and residential entrances, outdoor dining, and storefronts be located on ground floors adjacent to sidewalks or public spaces and designed to maximize safety, comfort, aesthetics, and the intended functionality (as defined by the Place Type).
Consistent: The Specific Plan includes a public plaza and public realm improvements of the sidewalk areas encourage active use. There are outdoor dining areas both for the restaurants within the Hotel overlooking Guasti road and for restaurants within the Local Serving Retail areas. 724
CD‐3.6
Managed Infrastructure. We collaborate with developers and property owners to facilitate development that realizes the envisioned character and functionality of the Place Type through the use of green and shared infrastructure within each Place Type.
Consistent: The Specific Plan encourages the improvement of and connection to Cucamonga Creek Trail. The Specific Plan also improves the pedestrian realm along Holt Boulevard and Guasti Road. The public plaza and public realm improvements of the sidewalk areas and edge friction elements such as curbs, street trees, lighting, etc. along Holt Boulevard and Guasti Road contribute to walkability.
GOAL
CD‐4
Historic buildings, streets, landscapes, and neighborhoods, as well as the story of Ontario’s people, businesses, and social and community organizations, have been preserved and serve as a focal point for civic pride and identity.
Policies
CD‐4.1
Cultural Resource Management. We update and maintain an inventory of historic sites and buildings, professional collections, artifacts, manuscripts, photographs, documents, maps, and other archives.
N/A
CD‐4.2
Collaboration with Property Owners and Developers. We educate and collaborate with property owners and developers to implement strategies and best practices that preserve the character of our historic buildings, streetscapes, and unique neighborhoods.
N/A
CD‐4.3
Collaboration with Outside Agencies. We pursue opportunities to team with other agencies, local organizations, and nonprofits in order to preserve and promote Ontario’s heritage.
N/A
CD‐4.4
Incentives. We use the Mills Act and other federal, state, regional and local programs to assist property owners with the preservation of select properties and structures.
N/A
CD‐4.5 Adaptive Reuse. We actively promote and support the adaptive reuse of historic sites and buildings to preserve and maintain their viability.
N/A
CD‐4.6
Promotion of Public Involvement in Preservation. We engage in programs to publicize and promote the City’s and the public’s involvement in preservation efforts.
N/A
CD‐4.7
Public Outreach. We provide opportunities for our residents to research and learn about the history of Ontario through the Planning Department, the Ontario Museum of History and Art, and the Robert E. Ellingwood Model Colony History Room.
N/A
GOAL
CD‐5
A sustained level of maintenance and improvement of properties, buildings, and infrastructure that protects the property values and encourages additional public and private investments.
Policies
725
CD‐5.1
Maintenance of Buildings and Property. We require all public and privately‐ owned buildings and property (including trails and easements) to be properly and consistently maintained.
Consistent: Maintenance of all improvements within the Specific Plan site, including private/quasi‐public open space and recreation facilities, private driveways, circulation, and landscape, will be the responsibility of the applicant.
Maintenance of the sidewalk areas in the immediate vicinity of the Specific Plan site will also be the responsibility of the applicant.
CD‐5.2
Maintenance of Infrastructure. We require the continual maintenance of infrastructure. Consistent: Maintenance of all improvements within the Specific Plan, including private/quasi‐public open space and recreation facilities, private driveways, circulation, and landscape, will be the responsibility of the applicant.
Maintenance of the sidewalk areas in the immediate vicinity of the Specific Plan will also be the responsibility of the applicant.
CD‐5.3
Improvements to Property & Infrastructure. We provide programs to improve property and infrastructure. Consistent: Maintenance of all improvements within the Specific Plan, including private/quasi‐public open space and recreation facilities, private driveways, circulation, and landscape, will be the responsibility of the applicant.
Maintenance of the sidewalk areas in the immediate vicinity of the Specific Plan will also be the responsibility of the applicant.
CD‐5.4
Neighborhood Involvement. We encourage active community involvement to implement programs aimed at the beautification and improvement of neighborhoods.
N/A
Social Resources Element
GOAL
SR‐1 Residents have access to information, services and goods that improve their health and wellbeing.
Policies
SR‐1.1
Partnering for Healthcare. We work with healthcare providers, and local, regional, state, and federal agencies to attract and retain a diversity of affordable, quality healthcare and facilities for the entire community.
N/A
SR‐1.2
Nutrition Choices. We support the promotion of equitable access to affordable healthy food choices in the community, including community gardens, farmers markets, and cooking classes.
N/A
SR‐1.3 Health Education. We promote equitable access to health education, including disease prevention, mental health, nutrition, and physical fitness.
N/A
726
SR‐1.4
Physical Activity. We encourage activities and community design that improve the physical fitness of our community members, with an emphasis on the provision of activities and facilities in environmental justice areas.
Consistent: The Specific Plan is a mixed‐use development with a hotel and retail area and encourages active transportation by providing an enhanced public realm and bike facilities. The plan encourages the improvement of and connection to Cucamonga Creek Trail. The Local Serving Retail allows for bike rentals The Specific Plan also improves the pedestrian realm along Holt Boulevard and Guasti Road. All of the above encourage physical activity.
GOAL
SR‐2
A range of educational and training opportunities for residents and workers of all ages and abilities that improves their life choices and provides a skilled workforce for our businesses.
Policies
SR‐2.1
Educational Partners. We partner with educational institutions throughout the region in order to expand the range and quality of educational offerings available to the community.
N/A
SR‐2.2 Workforce Training. We will work with industrial organizations, businesses, and educational institutions to create opportunities for workforce training.
N/A
SR‐2.3 Joint Use of Facilities. We partner with public and private educational institutions to jointly use facilities for both City and educational purposes.
N/A
SR‐2.4
Access to Schools. We work with local and regional partners to improve the safety in and around schools and to improve access for citizens of all ages and abilities to schools and community services, such as after school and other programs.
N/A
SR‐2.5
School Facilities. We plan and coordinate with school districts for designing and locating school facilities to meet the City’s goals, such as for health, walkability, and safety and to minimize impacts to existing neighborhoods.
N/A
SR‐2.6 Language. We promote broad outreach in languages used by the community for proposed projects that could negatively affect environmental justice areas.
N/A
SR‐2.7
Community Engagement. We promote targeted outreach and education to historically underrepresented groups to encourage meaningful participation in decision‐making process for projects whose outcomes will affect land use in environmental justice areas.
N/A
GOAL
SR‐3
A range of community and leisure programs and activities provided by public, private, and nonprofit organizations that meet the needs of the community’s varied interests, age groups and abilities.
Policies
727
SR‐3.1
Partnerships. We partner with local and regional agencies, nonprofit organizations, and the private sector to provide a comprehensive range of community activities and events to citizens.
N/A
SR‐3.2 Needs Assessment. We track the needs and priorities for community services and look for ways to meet demands and avoid duplication of offerings.
N/A
SR‐3.3 Program Outreach. We promote information about leisure activities, classes, special events, and other services and activities to our community.
N/A
SR‐3.4 Community Events. We plan and actively participate in regularly scheduled community events and seasonal or yearly citywide events.
N/A
SR‐3.5
Community Activities as Crime Deterrents. We promote and participate in community activities as part of our crime prevention efforts. (Link to Safety Element Policy S‐7.3)
N/A
GOAL
SR‐4
City libraries that connect community members of all ages and abilities to a broad range of programs, communication, and informational resources.
Policies
SR‐4.1
Community Needs. We identify and monitor community needs for library services, technology, and facilities, and tailor them to effectively meet those needs.
N/A
SR‐4.2
Interagency Coordination. We leverage relationships with outside agencies, educational institutions, and neighboring jurisdictions to share library resources to the benefit of Ontario residents.
N/A
SR‐4.3 Library Outreach. We outreach to the community to increase the patronage of the library. N/A
SR‐4.4 Coordination with Other Community Services. We coordinate library programs with other recreational and community programs and facilities.
N/A
SR‐4.5
Focal Points of the Community. We design and program Ontario’s libraries as focal points of community engagement, including public outreach and community events.
N/A
SR‐4.6
Robert E. Ellingwood Model Colony History Room. We work with the Ontario Museum of History and Art in order to collect, preserve, and display artifacts and images from Ontario’s heritage and connect the City’s past to the present through the History Room.
N/A
GOAL
SR‐5
Local heritage, entertainment, and cultural experiences that enrich the lives of Ontario’s residents, workers, and visitors and serve to attract residents and businesses to the City.
Policies
728
SR‐5.1
Provision of Entertainment and Culture. We support equitable access to a range of entertainment and cultural experiences such as public art, exhibitions, and performances.
N/A
SR‐5.2
Local Heritage Education. We partner with educational providers to promote culture and heritage. (Link to Community Design Element, Historic Preservation Section).
N/A
SR‐5.3 Public Art. We encourage public art in buildings, parks, open spaces, and other public and private spaces. N/A
SR‐5.4
Private‐Public Sector Events. We partner with private and nonprofit sectors to provide and promote participation in cultural activities including fairs, festivals, and other events geared to neighborhoods, the City as a whole, and the region.
N/A
SR‐5.5 Promotion of Ontario Artists and Musicians. We promote awareness of entertainment and culture produced in Ontario. N/A
729
Department: Financial Services
Prepared By: Stephanie Castro
Department:
Prepared By: Matthew Hernandez
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Reviewed By: Claudia Hernandez, Matthew
Hernandez
Approved By:
Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 21
SUBJECT:
AUTHORIZATION TO ESTABLISH AND IMPLEMENT A REDEMPTION PROGRAM
FOR UNUSED NEW MODEL COLONY DEVELOPMMMENT IMPACT FEE (DIF)
CERTIFICATES IN ACCORDANCE WITH UNDERLYING AGREEMENTS AND
APPLICABLE LAW
CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:
CONSENT CALENDAR
RECOMMENDATION:
That the City Council, by minute action, authorize the City Manager or his designee(s) to establish and implement an administrative program under which unused and/or unredeemed DIF certificates for public infrastructure built to support the development in the Ontario Ranch area may be redeemed by bona fide certificate holders in amounts supported by verified documentary evidence and applicable requirements of law and contract.
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 Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
FISCAL IMPACT:
This program will not have any fiscal impact on the City's General Fund. The City will be using available funds from various Development Impact Fee (DIF) categories paid by Developers whose projects are actively utilizing Infrastructure (Streets, Storm Drains, Water, Sewer, and Fiber Optics) constructed by NMC Builders and its members.
BACKGROUND & ANALYSIS:
The City uses the DIF Program in accordance with Ordinance Nos. 2779 and 2780 to collect DIF from Developers to fund public infrastructure identified in The Ontario Plan (“TOP 2050”) necessary for future Residential and Non-Residential projects. The fees collected are based on a legally required studies to estimate the cost of these projects to allow the City to construct necessary infrastructure 730
without impacting the current residents service. The study and its fees are updated from time to time to ensure that the City does not burden its current operations, nor risk residents’ current services. The City partnered with NMC Builders, LLC and its members to construct Streets, Storm Drains, Water, Sewer, and Fiber Optics on behalf of the City. Those Developers who chose not to construct paid an in-lieu fee owed to the City. The development and implementation of this proposed program, as allowed by applicable law and the underlying agreements, will refine the DIF credit exchange process to allow for more timely returns or redemptions.
STAFF RECOMMENDATION/MOTION REQUESTED:
That the City of Ontario, through the City
Manager or his designee(s), establish and implement an administrative program under which unused and/or unredeemed DIF certificates for public infrastructure may be redeemed by bona fide certificate holders, in accordance with applicable law and agreements. 731
Department: Planning
Prepared By: Edmelynne V Hutter
Staff Member Presenting: Rudy Zeledon,
Executive Director Community Development
Approved By:
Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 22
SUBJECT:
A PUBLIC HEARING TO CONSIDER A PLANNED UNIT DEVELOPMENT (FILE NO.
PUD24-002) FOR A DEVELOPMENT PLAN TO CONSTRUCT 144-UNIT MULTIPLE-
FAMILY RESIDENTIAL APARTMENT COMPLEX
CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:
PUBLIC HEARINGS
RECOMMENDATION:
That the City Council introduce and waive further reading of an Ordinance Approving a Planned Unit Development, File No. PUD24-002, establishing development standards and guidelines to facilitate the development of a 144-unit residential apartment project.
THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:
Invest in the Growth and Evolution of the City's Economy Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT:
There is not a direct fiscal impact associated with this action.
BACKGROUND & ANALYSIS:
The Ontario Plan 2050 (TOP 2050) and associated Environmental Impact Report analyzed and established guidelines for development of the Project site, which is within the Mixed Use - Holt Boulevard Land Use designation, and that
approval of a Planned Unit Development (PUD) is
required for new developments.
On November 14, 2022, the Ontario Housing Authority and Applicant, National CORE, entered into an Exclusive Negotiating Agreement regarding the potential development of an affordable housing development known as Vista Verde II, a multiple-family apartment complex. In continuation of the process, on December 17, 2024, the City Council approved a Disposition and Development Agreement (DDA) and Grant Agreements with the Applicant to facilitate the development of the subject affordable housing development.
On December 13, 2024, the Applicant submitted applications for a Planned Unit Development (File No. PUD24-002) to establish development standards and regulations for the Holt + Allyn Planned Unit Development area and Development Plan (File No. PDEV24-028) to facilitate the construction of 144-unit multiple-family affordable housing development. 732
On February 25, 2025, the Planning Commission adopted a Resolution recommending the City Council approve the Planned Unit Development. The Planning Commission backup is attached to this report.
The Project site is 5.73 acres and located near the northeast corner of East Holt Boulevard and Allyn Avenue, within the MU-6 (East Holt Mixed Use) zoning district and currently vacant.
The Project site
is surrounded by residential uses, commercial uses, and vacant land. The Project site is also located along the SBCTA West Valley Connector route on Holt Boulevard.
The Holt + Allyn Planned Unit Development (PUD) will facilitate the future construction of the 144- unit affordable housing development.
Consistent with TOP 2050, t
he PUD allows for a residential
density range of 14.0 to 40.0 du/ac, and the related Development Plan proposes a 4-story apartment community with a density of 25.1 du/ac. The proposed PUD also includes reduced parking ratio requirements that reflect the needs of households that are anticipated to reside there.
In addition, the Applicant states that vehicle parking will be actively managed and monitored as part of its property management operations.
Overall, t
he proposed PUD will establish development standards and design guidelines that promote projects that are consistent with TOP 2050, establish a sense of place and identity along the Holt Boulevard Corridor, and achieve high-density residential developments while maintaining high quality design and construction.
AIRPORT LAND USE COMPATIBILITY PLAN (ALUCP) COMPLIANCE: T he 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 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.
HOUSING ELEMENT COMPLIANCE:
The Project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan. The Project site is one of the properties listed in the Housing Element Sites contained in Tables B-1 and B-2 (Housing Element Sites Inventory) of the Housing Element Technical Report. The Housing Element Sites Inventory designates the site for 108 units in the very low/low-income category; however, the proposed Project includes 144 units in the very low/low-income category, exceeding the originally anticipated number. The Housing Element Sites Inventory will be amended to reflect this change.
ENVIRONMENTAL REVIEW:
The Project is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15183 (Projects Consistent with a Community Plan or Zoning) of the CEQA Guidelines. The Project qualifies for an exemption because the following findings can be made:
1 .
The Project is consistent with the development density established by existing zoning, community plan or general plan policies for which an EIR was certified. 2 .
There are no Project specific effects which are peculiar to the Project or its site, and which the 733
TOP 2050 Supplemental EIR failed to analyze as significant effects. 3 .
There are no potentially significant off-site and/or cumulative impacts which the TOP 2050 Supplemental EIR failed to evaluate.
4 .
There is no substantial new information which results in more severe impacts than anticipated by the TOP 2050 Supplemental EIR.
5 .
The Project will undertake feasible mitigation measures specified in the TOP 2050 Supplemental EIR.
734
Case Planner: Edmelynne V. Hutter
Hearing Body Date Decision Action
Planning Director
Approval:
DAB 2/19/2025 Approval Recommend
PC 2/25/2025 Final/
Recommend
Submittal Date: 12/13/2024 CC 4/15/2025 1st Reading
FILE NOS: PUD24-002 & PDEV24-028
SUBJECT: A public hearing to consider a Planned Unit Development to create development standards and design guidelines, and a Development Plan, to facilitate the construction of 144 -unit Multiple -family Residential Apartment Complex on approximately 5.73 acres of land located at the Northeast Corner of East Holt Boulevard and Allyn Avenue within the MU -6 (East Holt Boulevard Mixed Use) zoning district .
Submitted by National CORE. City Council action is required for PUD24-002.
PROPERTY OWNER: Ontario Housing Authority
RECOMMENDED ACTION: That the Planning Commission consider and adopt a Resolution recommending the City Council approve a Planned Unit Development, File No. PUD24- 002, and consider and adopt a R esolution approving a Development Plan, File No.
PDEV24-028, pursuant to the facts and reasons contained in the staff report and attached Resolutions, and subject to the conditions of approval appended to the attached Resolutions as Attachment A.
BACKGROUND: On January 27, 2010, the Ontario City Council certified The Ontario Plan Environmental Impact Report in conjunction with File No. PGPA06 -001 (City Council Resolution No. 2010-006), and on August 16, 2022, the Ontario City Council certified The Ontario Plan 2050 Update Supplemental Environmental Impact Report in conjunction with File No. PGPA20 -002 (City Council Resolution No. 2022 -129). The Ontario Plan and associated Environmental Impact Report analyzed the Project site and established guidelines for development, including but not limited to, general land use ( Mixed Use;
14.0 du/ac to 40.0 du/ac and maximum FAR (2.0 FAR for office, 1.0 FAR for retail)).
The TOP 2050 Policy Plan specifies that the Mixed Use – Holt Boulevard area is to be implemented through the approval of a Planned Unit Development (PUD) prior to the development of properties within the area.
On November 14, 2022, the Ontario Housing Authority and Applicant entered into an Exclusive Negotiating Agreement regarding the potential development of an affordable housing development known as Vista Verde II, a multiple-family apartment complex with associated improvements and amenities. In continuation of the process, on December 17, 2024, the City Council approved a Disposition and Development Agreement (DDA) 303 East B Street, Ontario, California 91764 Phone: 909.395.2036 / Email: [email protected]
PLANNING COMMISSION
AGENDA REPORT
February 25, 2025
735
Planning Commission Agenda Report
File Nos.: PUD24-002 & PDEV24-028
February 25, 2025
with the Applicant to facilitate the development of the subject affordable housing development.
On December 13, 2024, in association with the DDA, the Applicant submitted applications for a Planned Unit Development (File No. PUD24 -002) to establish development standards and regulations for the Holt + Allyn Planned Unit Development area and Development Plan (File No. PDEV24 -028) to facilitate the development of the proposed 144-unit multiple-family affordable housing development.
On February 19, 2025 , the Development Advisory Board conducted a public hearing regarding File No. PDEV24 -028 and adopted a Decision recommending the Planning Commission approve the Development Plan.
PROJECT SETTING: The Project site consists of 5.73 acres of land located near the northeast corner of East Holt Boulevard and Allyn Avenue, approximately 140 feet east of the intersection, within the MU -6 (East Holt Mixed Use) zoning district, which is depicted in Exhibit A: Project Location Map . The Project site encompasses five vacant parcels located at 905, 935, 947 and 957 East Holt Blvd. The parcels were previously developed with commercial and residential uses.
The Project site is surrounded by residential uses, commercial uses, and vacant land. The Project site is also located along the SBCTA West Valley Connector route on Holt Boulevard, the improvements of which are under construction (see Exhibit G: Site Photos).
The existing surrounding land uses, zoning, and Policy Plan (general plan) and specific plan land use designations are summarized in Table 1: Surrounding Zoning & Land Uses.
PROJECT ANALYSIS:
(1) Planned Unit Development (File No. PUD24-002)
The Applicant is proposing the Holt + Allyn Planned Unit Development (PUD) to facilitate the construction of the 144 -unit affordable housing development. The purpose and objective of the PUD is to establish development and design guidelines that would promote development projects that are consistent with TOP 2050, establish a sense of place and identity along the Holt Boulevard Corridor, provide a connection between the Downtown Mixed-Use area and the Ontario Airport Metro Center, achieve high -density residential developments while maintaining high quality design and construction, and encourage clustering of structurers to preserve the maximum amount of continuous open space.
A PUD is comparable to a Specific Plan in that it sets development regulations that are unique to a specific area. On the other hand, it is unlike a Specific Plan in that a PUD is typically intended to apply to a single development project or several interrelated projects that would function as a single, comprehensive project.
736
Planning Commission Agenda Report
File Nos.: PUD24-002 & PDEV24-028
February 25, 2025
(a) Land Use and Development Regulations — Consistent with the requirements of the MU-6 (East Holt Mixed Use) zoning district, the Holt + Allyn PUD allows for residential uses at a density of 14.0 to 40.0 du/ac. Non-residential uses are generally allowed within the MU-6 (East Holt Mixed Use) zoning district. However, this particular PUD area primarily anticipates residential uses, as an affordable housing development, and that any nonresidential uses would be ancillary and supportive in nature to the residential use.
In alignment with development standards and existing and future development in the area, the maximum building height allowed in the PUD is 50 feet. The building setback requirements are 0 FT from Holt Boulevard, 5 Ft from interior property lines, and 10 FT between parking spaces and living areas. Building-to-building separation requirements are a minimum 15 FT. These proposed standards are compatible with the TOP 2050 vision for the Mixed Use – Holt Boulevard area as a corridor and connection to other parts of the City.
(b) Architectural Character — As all sides of buildings will be visible from the public street, common access drives, common parking areas or adjacent parcels, the PUD requires that the architectural treatments be carried around to all sides of the buildings, providing full 360 -degree architecture. Furthermore, all towers and raised elements will be finished on all sides to appear as three -dimensional features, and buildings will feature articulated walls with offsets of at least two feet in depth. In addition, the PUD promotes the use of enhanced materials, such as precast concrete or tile, for use as base treatments and to highlight architectural features.
(c) Landscaping and Drainage — A conceptual landscape plan is required to be submitted with the Development Plan application. Broad canopy shade trees are to be used to reduce heat gain on buildings, paving and parking areas. The PUD also requires the use of drought-tolerant plant materials and a water efficient irrigation system with weather -based controllers. Furthermore, landscape areas may incorporate vegetated swales for storm water infiltration and retention basins or dry wells as may be needed. Overall, projects within the PUD area are expected to provide landscap ing designs that enhance the project aesthetics and outdoor experiences for residents, employees and visitors.
(d) Off-Street Parking and Circulation —
(i) Parking – The parking requirements within the PUD account for multiple factors including recent legislation, best practices in the region, affordable housing component, and proximity to transit. Parking requirements are summarized in Table 3: Parking Summary.
Previous studies of households within affordable housing developments have supported the conclusion that the parking needs in an affordable housing project are less than market-rate projects. In addition, existing projects within the City, including Vista Verde I, 737
Planning Commission Agenda Report
File Nos.: PUD24-002 & PDEV24-028
February 25, 2025
were developed with reduced parking requirements and no concerns about parking supply have been identified.
(ii) Access – The PUD specifies that primary project access to the site will be provided at a central, gated vehicular access point from Holt Boulevard. A secondary driveway for emergency vehicle access will also be provided near the west boundary of the PUD/project area.
(iii) Circulation – The PUD provides for safe vehicular and pedestrian circulation throughout the project site by promoting separate pedestrian and vehicular paths and drives.
(iv) Access to Mass Transit – Existing bus stops are located on Holt Boulevard for Omnitrans Route 61, with nearby transfer stops for Routes 83, 87 and 380 .
Additionally, the future West Valley Connector Bus Rapid Transit (BRT) line which is currently under construction on Holt Boulevard, will provide additional transit options for the public.
(2) Development Plan (File No. PDEV24-028)
(a) Site Design/Building Layout — The Project site is irregular in shape and spans approximately 630 FT wide, along Holt Boulevard, and between 304 FT to 476 FT deep.
The Project site comprises five parcels, which will require a subdivision or lot line adjustments to combine the parcels into one. The Project is designed with two four-story apartment buildings containing a total of 144 dwelling units. Each building will offer floor plans with 1, 2, and 3 bedrooms and 1 to 2 bathrooms. The 1- Bedroom units are 512 SF and 513 SF, the 2- Bedroom units are 750 SF and the 3 -Bedroom units are 1,009 SF and 1,023 SF in area (see Table 4: Dwelling Unit Statistics) . The overall density of the Project is
25.1 dwelling units/acre (du/ac), which complies with the TOP 2050 density range of 14.0 to 40.0 du/ac.
Building A, Building B, and the common open space amenities are located in the south portion of the Project site and parking lot areas are located in the north portion (see Exhibit C: Site Plan) . The buildings are setback between 20 FT and 30 FT from Holt Boulevard. The parking lot comprises uncovered parking spaces, carports and landscaped areas. The Project’s main entrance is located between Buildings A and B and will be gated. Another gated access point is located in the southwest corner of site and is designated for emergency ingress and egress.
Building A is located on the southwest section of the Project site and is configured in a U- shape, with the west, east and south sections of the building connected by open air walkways at each floor. Building A will have 91 dwelling units and will also inc lude management offices, a mail room, bicycle parking, a laundry facility, recreation room computer lab, warming kitchen, and flexible activity room. The open central area of 738
Planning Commission Agenda Report
File Nos.: PUD24-002 & PDEV24-028
February 25, 2025
Building A will have community amenities such as a swimming pool with lounge deck and shower facilities, outdoor gym, dog park, picnic tables, parking lot and landscape areas.
Building B is located in the southeast area and is L -shaped. Like Building A, the two sections of the building are connected by open air walkways at each floor. Building B is designed with 53 dwelling units. The open spaces on the east side of the building will provide a children’s playground, teen space and BBQ area, parking lot and storm water detention basin.
(b) Site Access/Circulation — The Project site has multiple pedestrian and vehicular access points. The main vehicular access, which is 58 FT wide, is located on Holt Blvd. between Buildings A and B, a pproximately 500 FT east of the intersection of Holt Avenue and Bon View Avenue/Allyn Avenue. This entry will be gated and is designed with a 24 FT-wide ingress lane, 26 FT-wide egress lane, enhanced paving, and a median planter with a call box. The security gate is l ocated approximately 100 FT from the front property line and the drive lanes have enough width for two vehicles each, which provides ample room for vehicle queueing.
Another gated vehicular access point is located at the southwest corner of the site and is intended for emergency vehicle ingress and egress.
The main interior circulation comprises of the entry drive located between Buildings A and B and the connecting east -west drive that also serves as a fire lane. This east -west drive provides connections to the parking lots and the emergency access lane to the west.
Pedestrian access is provided at multiple points along Holt Boulevard. Each building provides a main entry that is centrally located along the south elevations and are connected to the public sidewalk via walkways. These entries are designed with enhanced paving, seating and bicycle parking. In addition, secondary pedestrian paths are provided near the gated vehicular access points.
In addition, the Project’s location on Holt Boulevard coincides with the West Valley Connector Bus Rapid Transit line currently being constructed by San Bernardino County Transportation Authority. This bus route is designed with dedicated bus lanes to offer faster transit service than previously provided. The Project location is situated between two stops for the West Valley Connector route. One bus stop is located west of the Project, at Campus Avenue and Holt Boulevard, which is 0.3 miles from the proposed Project.
Another bus stop is located east, at Gr ove Avenue and Holt Boulevard, and is 0.4 miles from the Project. Both locations are walking distance and offer convenient and viable transportation options.
(c) Parking — The Project requires 222 vehicle parking spaces as specified in the proposed Holt + Allyn Planned Unit Development, and proposes 224 spaces, which exceeds the minimum parking required for the Project.
739
Planning Commission Agenda Report
File Nos.: PUD24-002 & PDEV24-028
February 25, 2025
The Project will provide 130 covered parking spaces (i.e. carports with solar panels), and 94 uncovered spaces. Each apartment unit will have an assigned parking space and the unassigned spaces will be used for residential, visitor, and staff parking.
All parking spaces will be located behind gates and fencing and will not be readily visible from the Holt Boulevard. The off-street parking calculations for the Project are summarized in Table 3: Parking Summary.
The Project will also provide secure bicycle parking in each building, and outdoor bike racks among the common open space areas.
(d) Architecture — The Applicant has proposed an adaptive Mission -Spanish architectural style (see Exhibit E: Elevations) . The adaptive component of the architectural design incorporates traditional Mission -Spanish design elements while accommodating the 4-story building massing and large street frontage.
Arched thresholds;
S-type clay roofing;
Precast stone cornice and wall base;
Decorative wrought iron details, railings, gates; and Decorative tile.
The south elevation of Buildings A and B are approximately 266 FT and 165 FT wide, respectively, and highly visible from Holt Boulevard. Given the high profile and visibility of the Project, the Applicant has designed these elevations to have visual interest through the use of architectural popouts and step backs, tower elements, arches, wrought iron detail, balconies, trellises, precast st one wall base and cornices, color blocking, and decorative tile. The proposed balcony design, which is also applied throughout the Project interior, incorporates several of these design elements, resulting in an architectural feature that breaks up the building mass and provides visual interest.
(e) Landscaping — The project proposes landscaping throughout the site, including the full length of the Holt Boulevard frontage, project perimeter, off -street parking areas, and throughout the stormwater retention areas (see Exhibit F: Landscape Plan). A variety of planting materials are proposed, including trees, shrubs, grasses, and groundcovers, as follows:
Trees: Marina strawberry, Western redbud, California sycamore, and Coast live oak Shrubs: Powis castle artemisia, Yarrow, Bottle brush little john Grasses: Dear grass, Pine muhly, Reed grass
Ground Covers: Chalk sticks, Alum root hybrid
(f) Open Space/Amenities — Each unit is designed with private open space, as a patio or balcony, and directly accessed from the apartment unit and are approximately 60 SF or larger.
740
Planning Commission Agenda Report
File Nos.: PUD24-002 & PDEV24-028
February 25, 2025
The associated draft Holt + Allyn Planned Unit Development requires a minimum 15 percent of the total lot area be designed for common open space, which calculates to 37,440 SF. Overall, the Project provides about 46,045 SF of common open space, or 18 percent of the total lot area.
As proposed, the Development Plan offers a variety of common open space areas designed for a range of households and ages. The proposed 5,965 SF pool area at Building A will offer showers, lounge chairs, tables and chairs, benches, and a BBQ grill.
The surrounding area will also include a 1,324 SF outdoor gym and 910 SF fenced pet area. In addition, the passive open space area, which includes landscaping and walkways, provides an additional 10,678 SF of common open space. The open space adjacent to Building B provides a BBQ and Teen Area that is 2,223 SF, a children’s playground area that is 1,662 SF, and a passive open space that is roughly 11,270 SF.
Other passive open space areas include the front yard landscape areas, which total 12,013 SF.
Interior common space areas are also offered. Building A includes a 907 SF activity room, 1,141 SF recreation room, 540 SF conference room, and lounge areas. All common areas are available to all the residents.
(g) Signage — All Project signage is required to comply with sign regulations provided in Ontario Development Code Division 8.1. Prior to the issuance of a Building Permit for the installation of any new on-site signage, the Applicant is required to submit Sign Plans for Planning Department review and approval . Approval of a master sign program is required prior to the issuance of sign permits.
(h) Utilities (drainage, sewer) — Public utilities (water and sewer) are available to serve the Project. Furthermore, the Applicant has submitted a Preliminary Water Quality Management Plan (PWQMP), which establishes the Project 's compliance with storm water discharge/water quality requirements. The PWQMP includes site design measures that capture runoff and pollutant transport by minimizing impervious surfaces and maximizes low impact development (LID) best management practices (BMPs), such as retention and infiltration, biotreatment, and evapotranspiration. The PWQMP proposes the use of a detention basin. Any overflow drainage will be conveyed to the public street by way of parkway drains and culverts.
PUBLIC NOTIFICATION: The subject application was advertised as a public hearing in at least one newspaper of general circulation in the City of Ontario (the Inland Valley Daily Bulletin newspaper). In addition, notices were mailed to all owners of real property located within a minimum of 300 feet of the exterior boundaries of the property that is the subject of the hearing, as shown on the records of the County Assessor.
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occupants of properties surrounding the Project site or from the public in general, regarding the subject application.
AGENCY/DEPARTMENT REVIEWS: Each City agency/department has been provided the opportunity to review and comment on the subject application and recommend conditions of approval to be imposed upon the application. At the time of the Resolution preparation, recommended conditions of approval were provided and are appended to the attached Resolutions as Attachment A.
AIRPORT LAND USE COMPATIBILITY PLAN (ALUCP) COMPLIANCE: The California State Aeronautics Act (Public Utilities Code Section 21670 et seq.) requires that an Airport Land Use Compatibility Plan be prepared for all public use airports in the State; and requires that local land use plans and individual development proposals must be consistent with the policies set forth in the adopted Airport Land Use Compatibility Plan.
On April 19, 2011, the City Council of the City of Ontario approved and adopted the ONT ALUCP, establishing the Airport Influence Area for Ontario International Airport, which encompasses lands within parts of San Bernardino, Riverside, and Los Angeles Cou nties, 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 body for the Planned Unit Develop ment and the decision-making body for the Development Plan, 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 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.
COMPLIANCE WITH THE ONTARIO PLAN: The proposed Project is consistent with the principles, goals and policies contained within the Vision, Governance, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan (TOP). More specifically, the goals and policies of TOP that are furthered by the proposed Project are as follows:
(1) City Council Goals
• Invest in the Growth and Evolution of the City's Economy • Operate in a Businesslike Manner
• Focus Resources in Ontario's Commercial and Residential Neighborhoods • Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
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(2) Vision
Distinctive Development that integrates our varied and diverse focal points, districts, centers, corridors, and neighborhoods to provide a feeling of coherence without sacrificing uniqueness.
Commercial and Residential Development
• Development quality that is broadly recognized as distinctive and not exclusively tied to the general suburban character typical of much of Southern California.
• A demonstrated ability to attract housing in pursuit of our acknowledged responsibility to balance housing with the job growth that drives our quality of life.
• Distinctive and well-maintained neighborhoods that offer exceptional variety in lifestyles, with convenient access to schools, recreation and cultural facilities, places of worship, places of employment and shopping.
(3) Governance
Decision Making
Goal G1: Sustained decision-making that consistently moves Ontario towards its Vision by using The Ontario Plan as a framework for assessing choices.
• G1-1 Consistency with Policies. We require that staff recommendations to the City Council be consistent with adopted City Council Priorities (Goals and Objectives) and The Policy Pan.
• G1-2 Long-term Benefit . We require decisions to demonstrate and document how they add value to the community and support the Ontario Vision.
(4) Policy Plan (General Plan)
Land Use Element
Goal LU-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.
• LU-1.1 Strategic Growth. We concentrate growth in strategic locations that help create place and identity, maximize available and planned 743
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infrastructure, foster the development of transit, and support the expansion of the active and multimodal transportation networks throughout the City.
• LU-1.6 Complete Community. We incorporate a variety of land uses and building types in our land use planning efforts that result in a complete community where residents at all stages of life, employers, workers, and visitors have a wide spectrum of choices of where they can live, work, shop and recreate within Ontario.
Goal LU-2 Compatibility: Compatibility between a wide range of uses and a resultant urban patterns and forms.
• LU-2.1 Land Use Decisions. We minimize adverse impacts on adjacent properties when considering land use and zoning requests.
• LU-2.5 Regulation of Uses. We regulate the location, concentration, and operation of uses that have impacts on surrounding land uses.
• LU-2.6 Infrastructure Compatibility . We require infrastructure to be aesthetically pleasing and in context with the community character.
• LU-2.11 Context -Aware Transitions and Connections. We require new development projects and land-planning efforts to provide context-aware and appropriate transitions and connections between existing and planned neighborhoods, blocks, sites, and buildings.
Goal LU -3 Flexibility : Staff, regulations and processes that support and allow flexible response to conditions and circumstances in order to achieve the Vision.
• LU-3.1 Development Standards. We maintain clear development standards which allow flexibility to achieve our Vision and provide objective standards that ensure predictability and deliver the intended physical outcomes.
Goal LU -5 Airport Planning : Integrated airport systems and facilities that minimize negative impacts to the community and maximize economic benefits.
• LU-5.7 ALUCP Consistency with Land Use Regulations. We comply with state law that requires general plans, specific plans, and all new development to be consistent with the policies and criteria set forth within an Airport Land Use Compatibility Plan for any public-use airport.
Housing Element
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Goal H-1 Neighborhoods & Housing : Stable neighborhoods of quality housing, ample community services, and public facilities, well -maintained infrastructure, and public safety that foster a positive sense of identity.
• H-1.2 Neighborhood Conditions. We direct efforts to improve the long -term sustainability of neighborhoods through comprehensive planning, provision of neighborhood amenities, rehabilitation and maintenance of housing, and community building efforts.
Goal H -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.
• H-2.1 Corridor Housing. We revitalize transportation corridors by encouraging the production of higher density residential and mixed -uses that are architecturally, functionally, and aesthetically suited to corridors.
• H-2.5 Housing Design. We require architectural excellence through adherence to City design guidelines, thoughtful site planning, environmentally sustainable practices, and other best practices.
• H-2.6 Infill Development. We support the revitalization of neighborhoods through the construction of higher -density residential developments on underutilized residential and commercial sites.
Community Economics Element:
Goal CE-1 Complete Community: A complete community that provides for all incomes and stages of life.
• CE-1.1 Jobs -Housing Balance. We pursue improvement to the Inland Empire’s balance between jobs and housing by promoting job growth that reduces the regional economy’s reliance on out-commuting.
• CE-1.6 Diversity of Housing. We collaborate with residents, housing providers, and the development community to provide housing opportunities for every stage of life; we plan for a variety of housing types and price points to encourage the development of housing supportive of our efforts to attract business in growing sectors of the community while being respectful of existing viable uses.
Goal CE -2 Placemaking : A City of distinctive neighborhoods, districts, corridors, and centers where people choose to be.
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• CE-2.1 Development Projects . We require new development and redevelopment to create unique, high-quality places that add value to the community.
• CE-2.2 Development Review. We require those proposing new development and redevelopment to demonstrate how their projects will create appropriately unique, functional, and sustainable places that will compete well with their competition within the region.
• CE-2.4 Protection of Investment. We require that new development and redevelopment protect existing investment by providing architecture and urban design of equal or greater quality.
• CE-2.5 Private Maintenance. We require adequate maintenance, upkeep, and investment in private property because proper maintenance on private property protects property values.
Mobility Element
Goal M-1 Roadway System : A system of roadways that meets the mobility needs of a dynamic and prosperous Ontario.
• M-1.4 Complete Streets. We work to provide a complete, balanced, context-aware, multimodal transportation network that meets the needs of all users of streets, roads, and highways, including motorists, pedestrians, bicyclists, children, persons with disabi lities, seniors, movers of commercial goods, and users of public transportation. We prioritize implementation of complete streets improvements in environmental justice areas to facilitate opportunities for residents to use active transportation systems.
Goal M -2 Active Transportation : A system of trails and corridors that facilitate and encourage active modes of transportation.
• M-2.3 Pedestrian Walkways. We require streets to include sidewalks and visible crosswalks at major intersections where necessary to promote safe and comfortable mobility between residential areas, businesses, schools, parks, recreation areas, and other key destination points.
Community Design Element
Goal CD -1 Image & Identity : A dynamic, progressive city containing distinct and complete places that foster a positive sense of identity and belonging among residents, visitors, and businesses.
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• CD-1.2 Place Types. We establish 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.
• CD-1.4 Transportation Corridors. We will enhance our major transportation corridors within the City through landscape, hardscape, signage and lighting. The extent of enhancement should be appropriate to the use, type, and context of each corridor.
Goal CD-2 Design Quality: A high level of design quality resulting in neighborhoods, public spaces, parks, and streetscapes that are attractive, safe, functional, human -scale, and distinct.
• CD-2.1 Quality Building Design and Architecture. We encourage all development projects to convey visual interest and character through:
1. Building volume, massing, and height to provide context - appropriate scale and proportion;
2. Exterior building materials that are articulated, high quality, durable, and appropriate for the architectural style.
• CD-2.4 Urban, Mixed Use, and Transit -oriented Areas. We establish Place Types to require mixed use, urban, and transit-oriented areas to be designed and developed as pedestrian oriented areas that are integrated with adjacent neighborhoods and promote a vi brant, comfortable, and functional environment, as defined for each Place Type.
• CD-2.8 Safe Design. We incorporate defensible space design into new and existing developments to ensure the maximum safe travel and visibility on pathways, corridors, and open space and at building entrances and parking areas by avoiding physically and vis ually isolated spaces, maintaining visibility and accessibility, and using lighting.
• CD-2.9 Landscape Design. We encourage durable, sustainable, and drought-tolerant landscaping materials and designs that enhance the aesthetics of structures, create and define public and private spaces, and provide shade and environmental benefits.
• CD-2.10 Parking Areas. We require all development, including single -family residential, to minimize the visual impact of surface, structured, and garage parking areas visible from the public realm in an aesthetically pleasing, safe and environmentally sensitive manner. Examples include:
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1. Surface parking: Shade trees, pervious surfaces, urban run -off capture and infiltration, and pedestrian paths to guide users through the parking field.
• CD-2.11 Entry Statements. We encourage the inclusion of amenities, signage, and landscaping at the entry to neighborhoods, commercial centers, mixed use areas, industrial developments, and public places that reinforce them as uniquely identifiable places.
• CD-2.13 Entitlement Process. We work collaboratively with all stakeholders to ensure a high degree of certainty in the efficient review and timely processing of all development plans and permits.
Goal CD -3 Urban, Mixed Use, and Transit -Oriented Place Types : Vibrant urban environments that are organized around intense buildings, pedestrian and transit areas, public plazas, and linkages between and within developments that are conveniently located, visually appealing and safe during all hours.
• CD-3.1 Unique Identity. We promote development that heightens the unique character and identity of each Place Type by requiring compatible land uses and land planning, site design, and building design that promotes an active public realm.
• CD-3.2 Comfortable, Human -Scale Public Realm. We require that public spaces, including streets, parks, and plazas on both public and private property be designed to maximize safety, comfort and aesthetics and connect to the citywide pedestrian, vehicular, and bicycle networks.
• CD-3.4 Context- Aware and Appropriate Design. We require appropriate building and site design that complements existing development, respects the intent and identity of the Place Type, and provides appropriate transitions and connections between adjacent uses to ensure compatibility of scale, maintain an appropriate level of privacy for each use, and minimize potential conflicts.
• CD-3.5 Active Frontages. We create lively pedestrian streetscapes by requiring primary building, business, and residential entrances, outdoor dining, and storefronts be located on ground floors adjacent to sidewalks or public spaces and designed to maximiz e safety, comfort, aesthetics, and the intended functionality (as defined by the Place Type).
Goal CD-5 Protection of Investment: A sustained level of maintenance and improvement of properties, buildings, and infrastructure that protects property values and encourages additional public and private investments.
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• CD-5.1 Maintenance of Buildings and Property. We require all public and privately-owned buildings and property (including trails and easements) to be properly and consistently maintained.
• CD-5.2 Maintenance of Infrastructure. We require the continual maintenance of infrastructure.
HOUSING ELEMENT COMPLIANCE: The Project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan. The Project site is one of the properties listed in the Housing Element Sites contained in Tables B -1 and B -2 (Housing Element Sites Inventory) of the Housing Element Technical Report. The Housing Element Sites Inventory designates the site for 108 units in the very low/low -income category; however, the proposed Project includes 144 units in the very low/low -income category, exceeding the originally anticipated number. The Housing Element Sites Inventory will be amended to reflect this change.
ENVIRONMENTAL REVIEW: The Project is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15183 (Projects Consistent with a Community Plan or Zoning) of the CEQA Guidelines . The Project qualifies for an exemption because the following findings can be made:
1. The Project is consistent with the development density established by existing zoning, community plan or general plan policies for which an EIR was certified. The Project site is within the Holt Boulevard Mixed Use Area as designated by TOP 2050 and would contain 144 residential units across two buildings. This is consistent with the uses analyzed in the TOP 2050 Supplemental EIR and allowed by the Holt Boulevard Mixed Use Area designation.
2. There are no Project specific effects which are peculiar to the Project or its site, and which the TOP 2050 Supplemental EIR failed to analyze as significant effects.
The subject property is similar to other properties in the area, including its land use designation and zoning. The property does not support any peculiar environmental features, and the Project would not result in any peculiar effects .
The TOP 2050 anticipated the proposed development on the project site and Project impacts were adequately analyzed by the TOP 2050 Supplemental EIR. The TOP 2050 Supplemental EIR identified three environmental impact areas for which mitigation measures were required to reduce potential environmental impacts to a less than significant level: (1) cultural resources; (2) geology and soils; and (3) tribal cultural resources. The proposed project will be required to comply with these mitigations where applicable. The TOP 2050 Supplemental EIR also identified that the TOP 2050 would result in significant and unavoidable environmental impacts that could not be avoided or reduced to less than significant levels through mitigation measures. These include: (1) air quality; (2) cultural resources; (3) noise; (4) transportation. The proposed project will not create additional 749
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significant or unavoidable impacts that were not already addressed through the TOP 2050 Supplemental EIR.
3. There are no potentially significant off -site and/or cumulative impacts which the TOP 2050 Supplemental EIR failed to evaluate. The Project is consistent with the land use characteristics of the development considered by the TOP 2050 Supplemental EIR and would represent a small part of the growth that was forecasted for build -out of the TOP 2050. The TOP 2050 Supplemental EIR considered the incremental impacts of the Project, and no new Project -specific impacts are anticipated. Therefore, the Project would not result in any potentially significant cumulative impacts which were not previously evaluated in the TOP 2050 Supplemental EIR.
4. There is no substantial new information which results in more severe impacts than anticipated by the TOP 2050 Supplemental EIR . No new information has been identified which would result in a determination that the Project would have a more severe impact than anticipated by the TOP 2050 Supplemental EIR.
5. The Project will undertake feasible mitigation measures specified in the TOP 2050 Supplemental EIR . The Project will undertake feasible mitigation measures specified in the TOP 2050 Supplemental EIR and subsequently adopted by the City.
These TOP 2050 Supplemental EIR mitigation measures will be undertaken through Project design, compliance with regula tions and ordinances, the Project’s conditions of approval, and City permit processing.
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TECHNICAL APPENDIX:
Table 1: Surrounding Zoning and Land Uses
Existing
Land Use
Policy Plan
Designation
Zoning
Designation
Specific Plan
Land Use
Site Vacant Mixed-Use – Holt (MU-
Holt)
MU-6 (East Holt Mixed
Use) N/A
North Residential Mixed-Use – Holt (MU-
Holt)
MU-6 (East Holt Mixed
Use) N/A
South Vacant, Residential Business Park (BP) IP (Industrial Park) N/A East Commercial Service,
Residential
Mixed-Use – Holt (MU-
Holt)
MU-6 (East Holt Mixed
Use) N/A
West Retail, Residential Mixed-Use – Holt (MU-
Holt)
MU-6 (East Holt Mixed
Use) N/A
Table 2: General Site & Building Statistics
Item Required Min./Max.
(per TOP 2050 and PUD24-002) Provided (Ranges) Meets
Y/N
Project area (in acres): N/A 5.73 N/A
Maximum project density
(dwelling units/ac): 40.0 du/ac 21.5 du/ac Y
Front yard setback (in FT): 0 FT 20 FT to 30 FT Y
Interior Property LIne setback (in
FT): 5 FT 57 FT to 231 FT Y
Parking setback (in FT): 5 FT 5 FT Y
Building to Building setbacks (in
FT): 30 FT 86 FT Y
Maximum dwelling
units/building:
14.0 to 40.0 DU/AC
1.0 F.A.R. max – retail
2.0 F.A.R. - office
25.1 DU/AC
No retail/office Y
Maximum height (in FT): 50 FT 50 FT Y
Open space – private: 60 SF 60 SF Y
Open space – common: 15 % of total lot area 18 % of total lot area Y
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Table 3: Parking Summary
Type of Use No. Units Parking Ratio Spaces
Required
Spaces
Provided
1-Bedroom 13 1.0 space per unit 13
224
2-Bedroom 68 1.3 spaces per unit 88.4
3-Bedroom 63 1.7 spaces per unit 107.1
Visitor Parking -- 0.075 spaces per unit 10.8
Staff Parking -- Based on employees onsite 3
TOTAL 144 222 224
Table 4: Dwelling Unit Statistics:
Unit Type Unit Size (in SF) No. Bedrooms No. Bathrooms Private Open Space (in SF) No. Unit Types
1 Bedroom 512 SF;
513 SF
1 1 60 SF - 116 SF 13
2 Bedroom 750 SF 2 1 60 SF - 97 SF 68
3 Bedroom 1,009 SF;
1,021 SF
3 2 60 SF - 97 SF 63
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Exhibit A: PROJECT LOCATION MAP
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Exhibit B: Holt + Allyn Planned Unit Development
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Exhibit C: SITE PLAN
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Exhibit D: FLOOR PLAN
Building A – 1st Floor
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Exhibit D: FLOOR PLAN (cont.)
Building A – 2nd Floor
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Exhibit D: FLOOR PLAN (cont.)
Building A – 3rd & 4th Floors
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Exhibit D: FLOOR PLAN (cont.)
Building B – 1st Floor
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Exhibit D: FLOOR PLAN (cont.)
Building B – 2nd Floor
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Exhibit D: FLOOR PLAN (cont.)
Building B – 3rd & 4th Floor
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Exhibit E: EXTERIOR ELEVATIONS
Building A Elevations
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Exhibit E: ELEVATIONS (cont.)
Building B Elevations
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Exhibit F: LANDSCAPE PLAN
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Exhibit G: SITE PHOTOS
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Attachment A:
Resolution for File No. PUD24-002
Holt + Allyn Planned Unit Development
(Document to follow this page)
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RESOLUTION NO. PC25-004
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
ONTARIO, CALIFORNIA, RECOMMENDING THE CITY COUNCIL
APPROVE FILE NO. PUD24-002, A PLANNED UNIT DEVELOPMENT TO
CREATE DEVELOPMENT STANDARDS AND DESIGN GUIDELINES
FOR A 144-UNIT MULTIPLE-FAMILY APARTMENT PROJECT ON 5.73
ACRES OF LAND LOCATED NEAR THE NORTHEAST CORNER OF
EAST HOLT BOULEVARD AND ALLYN AVENUE, AND MAKING
FINDINGS IN SUPPORT THEREOF —APN: 1048-481-06, 1048- 481-07, 1048-481-08, 1048-481-28, 1048-481-29
WHEREAS, NATIONAL CORE ("Applicant") has filed an Application for the approval of a Planned Unit Development, File No. PUD24-002, as described in the title of this Resolution (hereinafter referred to as "Application" or "Project"); and
WHEREAS, the Application applies to 5.73 acres of land generally located near the northeast corner of East Holt Boulevard and Allyn Avenue, approximately 140 feet east of the intersection, within the MU-6 (East Hold Mixed Use) zoning district, and is presently vacant; and
WHEREAS, the property to the north of the Project site is within the MU -6 (East Holt Mixed Use) zoning district, and is developed with residential uses. The property to the east is within the MU -6 (East Holt Mixed Use) zoning district, and is developed with commercial and residential uses. The property to the south is within the IP (Industrial Park) zoning district, and is developed with residential uses and vacant land. The property to the west is within the MU-6 (East Holt Mixed Use) zoning district, and is developed with retail and residential uses; and
WHEREAS, on January 27, 2010, the Ontario City Council certified The Ontario Plan Environmental Impact Report in conjunction with File No. PGPA06-001 (City Council Resolution No. 2010-006), and on August 16, 2022, the Ontario City Council certified The Ontario Plan 2050 Update Supplemental Environmental Impact Report in conjunction with File No. PGPA20 -002 (City Council Resolution No. 2022- 129). The Ontario Plan and associated Environmental Impact Report analyzed the Project site and established guidelines for development, including but not limited to, general land use (Mixed Use – Holt (MU-Holt), which stipulates 14.0 to 40.0 du/ac, 2.0 FAR for office uses, and 1.0 FAR for retail uses); and
WHEREAS, on December 17, 2024, the Ontario Housing Authority approved a Disposition and Development Agreement with the Applicant to facilitate the development of the subject affordable housing development; 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 through Section 15183, and the application of that exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 153183.3; and
WHEREAS, Ontario Development Code Table 2.02- 1 (Review Matrix) grants the Planning Commission the responsibility and authority to review and make recommendation to the City Council on the subject Application; and
WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan 2050, 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 February 25, 2025, the Planning Commission of the City of Ontario conducted a hearing to consider the Project, and concluded said hearing on that date; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED, AND RESOLVED by the Planning Commission of the City of Ontario, as follows:
SECTION 1: Environmental Determination and Findings. As the recommending authority for the Project, the Planning Commission has reviewed and 768
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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 proposed Development Plan is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15183 (Project Consistent with a Community Plan or Zoning) of the CEQA Guidelines and meets all of the following conditions:
(a) The Project is consistent with the development density established by existing zoning, community plan or general plan policies for which an EIR was certified . The Project site is within the Holt Boulevard Mixed Use Area as designated by TOP 2050 and would contain 144 residential units across two buildings.
This is consistent with the uses analyzed in the TOP 2050 Supplemental EIR and allowed by the Holt Boulevard Mixed Use Area designation.
(b) There are no Project specific effects which are peculiar to the Project or its site, and which the TOP 2050 Supplemental EIR failed to analyze as significant effects. The subject property is similar to other properties in the area, including its land use designation and zoning. The property does not support any peculiar environmental features, and the Project would not result in any peculiar effects. The TOP 2050 anticipated the proposed development on the project site and Project impacts were adequately analyzed by the TOP 2050 Supplemental EIR. The TOP 2050 Supplemental EIR identified three environmental impact areas for which mitigation measures were required to reduce potential environmental impacts to a less than significant level: (1) cultural resources; (2) geology and soils; and (3) tribal cultural resources. The proposed project will be required to comply with these mitigations where applicable. The TOP 2050 Supplemental EIR also identified that the TOP 2050 would result in significant and unavoidable environmental impacts that could not be avoided or reduced to less than significant levels through mitigation measures. These include: (1) air quality; (2) cultural resources; (3) noise; (4) transportation. The proposed project will not create additional significant or unavoidable impacts that were not already addressed through the TOP 2050 Supplemental EIR.
(c) There are no potentially significant off -site and/or cumulative impacts which the TOP 2050 Supplemental EIR failed to evaluate. The Project is consistent with the land use characteristics of the development considered by the TOP 2050 Supplemental EIR and would represent a small part of the growth that was forecasted for build-out of the TOP 2050. The TOP 2050 Supplemental EIR cons idered 769
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the incremental impacts of the Project, and no new Project -specific impacts are anticipated. Therefore, the Project would not result in any potentially significant cumulative impacts which were not previously evaluated in the TOP 2050 Supplemental EIR.
(d) There is no substantial new information which results in more severe impacts than anticipated by the TOP 2050 Supplemental EIR . No new information has been identified which would result in a determination that the Project would have a more severe impact than anticipated by the TOP 2050 Supplemental EIR.
(e) The Project will undertake feasible mitigation measures specified in the TOP 2050 Supplemental EIR . The Project will undertake feasible mitigation measures specified in the TOP 2050 Supplemental EIR and subsequently adopted by the City. These TOP 2050 Supplemental EIR mitigation measures will be undertaken through Project design, compliance with regulat ions and ordinances, the Project’s conditions of approval, and City permit processing; and
(3) The application of the 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 body 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. The Project site is one of the properties listed in the Housing Element Sites contained in Tables B-1 and B-2 (Housing Element Sites Inventory) of the Housing Element Technical Report. The Housing Element Sites Inventory designates the site for 108 units in the very low/low -income category; however, the proposed Project includes 144 units in the very low/low -income category, exceeding the originally anticipated number. The Housing Element Sites Inventory will be amended to reflect this change.
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.
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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. A s the recommending body 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; and
SECTION 4: Concluding Facts and Reasons. Based upon the substantial evidence presented to the Planning Commission during the above- referenced hearing, and upon the specific findings set forth in the Sections 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 2050 . The proposed Project is located within the Mixed Use – Holt Boulevard land use district of the Policy Plan Land Use Map, and the MU -6 (East Hold Mixed Use) zoning district. The development standards and conditions under which the proposed project will be c onstructed and maintained, is consistent with goals, policies, and exhibits of the Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan.
(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, and has required certain changes, 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 Prio rities and Policy components of The Ontario Plan 2050.
(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. A thorough review and analysis 771
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of the proposed project and its potential to adversely impact properties surrounding the subject site was complete d by City staff. As a result of this review, certain design considerations were incorporated into the project to mitigate the identified impacts to an acceptable level, including the use of the upgraded materials, the inclusion of certain architectural design elements on building exteriors, intensified landscape elements, and decorative hardscape elements.
(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 PUD, a thorough review and analysis of the proposed project and the project site’s physical suitability for the proposed project was completed, included 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.
(5) The proposed PUD is superior to that which could be obtained through the application of the Development Code or a specific plan. The proposed PUD addresses aspects of the project that are specifically related to the Development Plan proposed in conjunction with PUD application, including necessary building setbacks, site access points, off-street parking and site circulation, and architectural character.
SECTION 5: Planning Commission Action. Based upon the findings and conclusions set forth in Sections 1 through 4, the Planning Commission hereby RECOMMENDS THE CITY COUNCIL APPROVES the herein described Planned Unit Development, 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.
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ATTACHMENT A:
File No. PUD24-002
Holt + Allyn Planned Unit Development
(Departmental conditions of approval to follow this page)
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PREPARED BY:
National Community Renaissance ®
9692 Haven Avenue, Suite 100
Rancho Cucamonga, CA 91730
ONYX ARCHITECTS
316 N. Sierra Madre Blvd.
Pasadena, CA 91107
HOLT + ALLYN PLANNED UNIT DEVELOPMENT
FILE NO: PUD24-002
DRAFT: DECEMBER 2024
REVISED: JANUARY 2025
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TABLE OF CONTENTS
1. INTRODUCTION ............................................................................................ 5
1.1 Overview .......................................................................................................... 5
2. PROJECT OBJECTIVES ................................................................................... 7
2.1 General Plan Consistency .............................................................................. 7
2.2 Center City Redevelopment Plan Objectives ............................................ 12
2.3 PUD District Purpose And Objectives ........................................................... 12
3. LAND USE PLAN ........................................................................................ 14
3.1 Land Use Designation ................................................................................... 14
3.2 Permitted Uses................................................................................................ 16
4. DEVELOPMENT REGULATIONS AND DESIGN STANDARDS .......................................... 17
4.1 Building Intensity ............................................................................................ 17
4.2 Building Height ............................................................................................... 17
4.3 Building Setbacks ........................................................................................... 18
4.4 Building Separation ....................................................................................... 18
4.5 Building Orientation ....................................................................................... 18
4.6 Building Types ................................................................................................. 19
4.7 Architectural Character ............................................................................... 20
4.8 Materials And Detailing................................................................................. 21
4.9 Storage ........................................................................................................... 24 TOC
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4.10 Open Space .................................................................................................. 24
4.11 Parking Standards .......................................................................................... 25
4.12 Parking Design ............................................................................................... 26
4.13 Equipment Screening ................................................................................... 27
4.14 Fences And Walls........................................................................................... 27
4.15 Signs ................................................................................................................ 27
4.16 Service Facilities ............................................................................................. 28
5. CIRCULATION & INFRASTRUCTURE ................................................................... 29
5.1 Vehicle Circulation ........................................................................................ 29
5.2 Pedestrian Connections ............................................................................... 29
5.3 Mass Transit ..................................................................................................... 29
5.4 Street Dedications And Easements ............................................................. 30
5.5 Public Right-Of-Way Improvements ............................................................ 31
5.6 Infrastructure .................................................................................................. 31
5.7 Landscaping + Drainage Plan ..................................................................... 32
6. ADMINISTRATION ........................................................................................ 34
6.1 Items Not Addressed In PUD ......................................................................... 34
6.2 Development Applications .......................................................................... 34
6.3 Administrative Exceptions ............................................................................. 34
6.4 Amendments to the PUD .............................................................................. 34
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5 1. INTRODUCTION
1.1 OVERVIEW
The Holt + Allyn Planned Unit Development (PUD) is intended to function as a set of planning and design principles, development regulations , and performance standards to guide and govern the development of five parcels bounded by Holt Boulevard to the south and residential parcels along Nocta Street to the north and Allyn Avenue to the west [see Exhibit 1-1, Project Location Map]. The project site is envisioned to accommodate a high-quality residential use development on the parcels that face Holt B oulevard. The Holt + Allyn Planned Unit Development (PUD) will replace the existing zone district designations and zoning standards that apply to the affected properties.
Unless otherwise defined herein, definitions and interpretations contained in the Development Code shall apply . City Staff and private developers will rely on this PUD to determine whether precise plans for development (“Development Plans”) will adequately meet the City’s land use and design objectives.
Located near the northeast corner of East Holt Boulevard and North Allyn Avenue, the 5.73-acre site is situated along the Holt Boulevard Corridor and within the East Holt Boulevard Mixed Use Area. Through these designations, the Ontario Plan seeks to encourage the redevelopment of Holt Boulevard into medium-density residential uses integrated with commercial, workplace, and urban facades.
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6 EXHIBIT 1-1: PROJECT LOCATION MAP
PUD Area
Holt Boulevard
N
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7 2. PROJECT OBJECTIVES
2.1 GENERAL PLAN CONSISTENCY
Within the Ontario Policy Plan (General Plan) the Holt + Allyn PUD site is designated Mixed Use – Holt Blvd. The Ontario Plan describes the Mixed-Use – Holt Blvd designations as “ a low-rise (3-5 stories) intensification of the Holt Corridor. The intent is to create identity and place, connect the corridor to Downtown, and connect the Downtown to the Ontario Airport Metro Center.” Within the community design element, the Policy Plan envisions all corridors to carry unique identities with infill development ; create comfortable, safe, human-scale public real ms, including pedestrian paths, such as sidewalks that provide access to new housing , and meet mobility needs of residents, transit riders, workers and visitors; complete and connect mobility networks for convenient bicycle travel; accentuate the linear nature of the corridor by providing seamless transitions from less intense residential neighborhoods to higher density infill sites; and enable and promote human activity through activated street frontages.
The Holt + Allyn Apartments are consistent with the principles, goals, and policies contained within the components that make up the Ontario Policy Plan, including (1) Vision, (2) Policy Plan, (3) Implementation Programs, and (4) City Council Priorities. The policies implemented by this PUD are as follows:
1. VISION
On February 13, 2007, the Ontario City Council adopted The Ontario Vision . The central them e 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 2 N
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this 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 Plan’s lifetime. They are:
1. A Dynamic Balance that enables our community to confront the continued vigorous 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 of 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 Holt + Allyn PUD will implement the Ontario Vision in ways that will further the City’s desire to be a sustainable and prosperous community.
RESIDENTIAL DEVELOPMENT
• The PUD allows for the development of multifamily housing on a site near schools, recreation, and cultural facilities, places of worship, pl aces of employment and shopping, and a future high-quality public transportation line.
• The development standards encourage multifamily residential development , further diversifying the City’s housing stock and balancing the City’s jobs -to-housing ratio that is essential to maintain quality of life within the community.
• The PUD encourages a comprehensive and diverse housing stock that offers broad choices for the diverse workforce and local families, by introducing new affordable multifamily housing units.
DEVELOPMENT QUALITY
• The PUD requires a well -designed project with high -quality materials that complement the existing neighborhood and will enhance the distinctive architectural styles within the City.
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• The development standards require future projects to consider the existing built environment and open spaces, ensuring careful attention to detail at every scale, including public and private spaces and structures.
MOBILITY
• The PUD is located along the future West County Connector bus rapid transit (BRT) line currently under construction and encourages higher-density development near high- frequency transportation facilitating an exceptional degree of movement and connectivity.
• Within the development standards, proposed projects will provide features and amenities to encourage the use of alternative forms of transportation including bicycles, buses, and walking.
PUBLIC SAFETY
• The PUD will ensure that the project is integrated into the existing neighborhood and that connections are made to residential neighborhoods, schools, parks, community centers , and cultural facilities in the surrounding area.
LEISURE AND CULTURAL ACTIVITIES
• The PUD will require r ecreational amenities, community facilities, and programs that offer ample recreation and cultural involvement by a diverse resident population.
RESOURCE CONSERVATION AND ENHANCEMENT
• The location of the PUD on the future West County Connector line provides a unique opportunity to reduce vehicle trips and air pollutants, resulting in improved air quality in Ontario and the region.
2. POLICY PLAN
Goal LU1 : 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 PUD allows for the development of a multifamily residential project on infill parcel s preserving open space and ensuring access to necessary services and infrastructure. The proposed project will be affordable to households earning less than 60 percent of the area median income (AMI) which will provide opportunities for lower-income families to live close to work, commute via public transportation, and maintain a decent quality of life. The 784
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PUD will also encourage sustainable development practices and LEED certification within all applicable projects.
Goal LU2: Compatibility. Compatibility between a wide range of uses. • The PUD evaluates the existing uses surrounding the property and buffers new development through setbacks and step backs.
Goal LU3: Flexibility. Staff, regulations, and processes that support and allow flexible responses to conditions and circumstances to achieve the Vision.
• The establishment of the PUD allows for clear development standards that allow flexibility to achieve the Ontario Vision, improve livability, reduce vehicular trips, create community gathering places and activity nodes, and help create identity.
Goal H1: 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 improve the long -term sustainability of neighborhoods through comprehensive planning, provision of neighborhood amenities, rehabilitation and maintenance of housing, and community-building efforts. The PUD will also ensure that adequate public services, infrastructure, open space, parking , traffic manage ment, pedestrian, and bicycle routes, as well as public safety related to the project are consistent with the City’s master and neighborhood plans.
Goal H2: 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 revitalize the Holt Boulevard corridor, in conjunction with the construction of the West County Connector by encouraging the production of higher density residential uses that are architecturally, functionally, and aesthetically suited to corridors. The PUD also encourages infill development on a vacant parcel that is identified within the City’s 2021-2028 Housing Element as an opportunity site to meet the City’s Regional Housing Needs Allocation (RHNA). A proposed project on the site will be affordable to households earning less than 60 percent of the area median income (AMI) which will provide opportunities for lower income families to live close to work, commute via public transportation, and maintain a decent quality of life.
Goal H4: Housing Assistance. Increased opportunities for low and moderate-income households and families to afford and maintain quality ownership and rental housing opportunities, including move-up opportunities.
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• The PUD is a collaborative partnership with a nonprofit affordable housing developer to produce affordable housing and supports the City’s goal to provide rental assistance for individuals and families earning extremely low, very low, and low income with funding from the state and federal government.
Goal H5: Special Needs Housing . A full range of housing types and community services that meet the special housing needs for all individuals and families in Ontario, regardless of income level, age, or other status.
• The PUD allows for and encourages the development of larger rental apartments that are appropriate for families with children, including, as feasible, the provision of supportive services, recreation, and other amenities.
3. HOUSING ELEMENT PRINCIPLES
This PUD furthers the City of Ontario Housing Element by implementing core principles included therein, such as:
• Providing a range of housing for all income levels is essential to a complete community. • Affordable, quality housing helps attract and retain a qualified workforce and supports a prosperous local economy.
4. CITY COUNCIL PRIORITIES
The Holt + Allyn PUD is consistent with the City Council’s desire to:
• Invest in the Growth and Evolution of the City’s Economy. • Focus Resources in Ontario’s Commercial and Residential Neighborhoods • Ensure the Development of a Well Planned, Balanced, and Self -Sustaining Community in the New Model Colony
5. IMPLEMENTATION
The Holt + Allyn PUD implements the Ontario Plan as the PUD is a public-private p artnership proposing a multifamily Development Project on a site identified within the City’s Housing Element land inventory and furthers the City’s goal to apply for funding from the Affordable Housing Sustainable Communities (AHSC) Program to connect housing and transit to reduce greenhouse gas emissions.
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2.2 CENTER CITY REDEVELOPMENT PLAN OBJECTIVES
The Center City Project Area encompasses the historic Euclid Avenue District, including parts of East Holt Boulevard. Ontario's City Hall and surrounding Civic Center, Senior Center, Main Library, the Museum of History and Art, Ontario Town Square, and the Law School of the University of La Verne are all within the Center City project area. Development within the downtown area is designed to create an immediate and positive identity transforming the vicinity into a comfortable place to stroll and be seen. Along the Holt Boulevard Corridor and surrounding neighborhoods, the PUD encourages the development of low-rise buildings that include both residential and a mixture of retail uses to maximize the economic vitality of the community and create an urban environment where residents can live and work in Ontario . It also seeks to boost commercial activity by increasing the supply of housing and improving aesthetics on major corridors such as Holt Boulevard.
The goals of the Center City Project include:
• Improving aesthetics along major corridors.
• Promoting the creation of a mixed-use urban village in the Civic Center area; and • Preserving the City's historic commercial structures, neighborhoods, and housing stock.
This PUD furthers each of those goals by laying the foundation for catalytic redevelopment along the East Holt Boulevard corridor – a connecting arterial into the City’s downtown core.
2.3 PUD DISTRICT PURPOSE AND OBJECTIVES
The purpose of the Holt + Allyn PUD as part of the MU-6 (East Holt Mixed-Use) District is to secure the residential uses of the general plan; promote high-quality design standards in urban design; encourage the development of mixed -use residential communities , all while establishing regulations and standards appropriate to the specific need for affordable housing for working families in the area.
The intent of the Holt + Allyn PUD is to:
• Promote development projects that are consistent with The Ontario Plan and Policy Plan.
• Establish a sense of place and identity along the Holt Boulevard Corridor and provide a connection between the Downtown Mixed-Use Area and the Ontario Airport Metro Center.
• Achieve high-density residential development or mixed-use development, and diversification of housing types, while maintaining high quality in design and construction. 787
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• Encourage clustering of structures to preserve a maximum amount of continuous open space.
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14 3. LAND USE PLAN
3.1 LAND USE DESIGNATION
The Holt + Allyn Planned Unit Development (PUD ) includes 5 parcels that are designated Mixed Use (MU) within the Ontario Plan and MU-6 in the City’s Zoning Map. The MU-6 zoning district was established to accommodate the intensification of the East Holt Boulevard Corridor with low -rise (up to 5 stories) buildings accommodating a mix of retail and office uses at a development intensity of up to 2.0 FAR and 1.0 FAR, respectively, and residential uses at a density of 14 to 40 DU/AC.
The MU -6 zoning district intends to create identity and place along the East Holt Boulevard Corridor and provide a connection between the Downtown Mixed-Use Area and the Ontario Airport Metro Center. The MU-6 zoning district is consistent with and implements the East Holt Mixed Use Area land use designation of the Policy Plan component of The Ontario Plan.
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EXHIBIT 3-1: LAND USE DISTRICT MAP
Project Area: Mixed Use (MU)
Adjacent Uses: Business Park (BP)
Low Medium Density Residential (LMDR)
Medium Density Residential (MDR)
Neighborhood Commercial (NC)
Mixed Use (MU)
HOLT BLVD
ALLYN AVE
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3.2 PERMITTED USES
Holt + Allyn Planned Unit Development does not deviate from the residential permitted uses outlined in Table 5.02 -1, Land Use Matrix of the City of Ontario Development Code , as summarized in Table 3-1. For a full listing of uses please refer to the Ontario Development Code.
TABLE 3-1, CITY OF ONTARIO LAND USE MATRIX
Land Uses MU-6
Mixed Use Developments P
Multiple Family Dwellings P
Senior Citizen Housing Developments C
Single-Family Dwellings P
Single Room Occupancy Facilities ---
Supportive Housing ---
Work/Live Units C
“P” – Per section 5.02-1 of the Ontario Zoning Code, Permitted shall mean the land use, activity, or facility within the specified district is permitted by right of bring in the proper zoning district, and is subject to each Development Code provision applicable to the specified zoning district and the standards for specific uses, activities, and facilities contained in division 5.03 (Standards for Specific Uses, Activities, and Facilities) of the City’s Development Code.
"C" (Conditionally Permitted) shall mean the land use, activity, or facility within the specified zoning district is subject to the granting of a Conditional Use Permit pursuant to Section 4.02.025 (Conditional Use Permits) of this Development Code, and is subject to each Development Code provision applicable to the specified zoning district and the standards for specific uses, activities, and facilities contained in Division 5.03 (Standards For Specific Uses, Activities and Facilities).
"---" (Prohibited) shall mean the land use, activity, or facility within the specified zoning district is expressly prohibited and shall not be allowed within the specified zoning district unless changed by Development Code Amendment.
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17 4. DEVELOPMENT REGULATIONS
AND DESIGN STANDARDS
4.1 BUILDING INTENSITY
Residential land uses within the Holt + Allyn Planned Unit Development will be consistent with the Mixed Use-6 (MU-6) zoning district allowing for residential uses at a density of 14 to 40 dwelling units per acre (DUA) or non-residential development at an FAR of up to 2.0.
4.2 BUILDING HEIGHT
Development within the Holt + Allyn Planned Unit Development will be consistent with the Mixed Use-6 zoning district, which allows for a maximum of fifty feet (50’) in height consistent with the City of Ontario General Plan.
To further the City’s low -rise mixed use building typology along the East Holt Boulevard corridor, higher density dwellings can be accommodated to increase the supply of housing, foster integrated residential and retail use communities, and increase pedestrian activity. Within the PUD area, multiple family developments should not exceed five stories or 50 feet, for locations within 100 feet of less intense development patterns (existing or planned). In sites where there are vacant adjacent uses zoned for single family development, building height must also not exceed 50 feet or the height of adjacent residential dwellings, whichever is greater.
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4.3 BUILDING SETBACKS
Within the Holt + Allyn Planned Unit Development the buildings will comply with the building setback requirements as set forth in Table 4 -1 (Minimum Building Setbacks) . All setbacks shall be measured from the ultimate property lines after all dedications to develop streets to the ultimate right-of-way width. Placement of buildings, structures, fences, walls, utility facilities, yards, etc. will be based on the street rights -of-way and property line dimensions. Allowable encroachments in yards include (maximum 6' high) property line fences and gates, landscaping, paving, and public utilities.
TABLE 4.1: MINIMUM BUILDING SETBACKS
SETBACK DISTANCE
1. Minimum Setbacks from Public Street Property Lines / Urban (25 du/ac or greater) • Holt Boulevard 0 feet
2. Minimum Setbacks from Interior Project Boundary Property Line 5 feet
3. Minimum Setbacks from Parking Spaces to Living Areas 10 feet
4.4 BUILDING SEPARATION
Within the Holt + Allyn Planned Unit Development the buildings will comply with the building separation requirements as set forth in Table 4 -2 (Minimum Building S eparation) and are consistent with or are more than the requirements outlined in Table 6.01 -3, Multiple-Family Residential Development Standards, in the City of Ontario Development Code.
TABLE 4.2: MINIMUM SEPARATION BETWEEN DETACHED BUILDINGS
LOCATION DISTANCE
Dwelling Front to Front, Rear or Side < 2-Stories: 25 FT; > 3 Stories: 30 FT Dwelling Side to Side < 2-Stories: 25 FT; > 3 Stories: 30 FT Dwelling Side to Rear 15 FT
Dwelling Rear to Rear 20 FT
4.5 BUILDING ORIENTATION
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Building orientation should be designed to minimize noise impacts, aid in property site safety, create proper accessibility to site amenities and parking and maximize views from residential units.
Design should also be crafted in a way that creates sound spaces, improving site safety. By blending residential and on -site community amenities, the design of the development project should promote increased walkability. Whenever feasible, Development Projects should locate building edges near the property line along Holt Boulevard to strengthen and define the urban edge and encourage pedestrian activity . Development Projects should create interest and interact with the streetscape through active uses, such as a community center, lobby, offices, and other related uses.
4.5.1 EXTERIOR
A. Orientation towards the exterior of the project area shall be carefully evaluated to ensure a proper relationship.
4.5.2 INTERIOR
A. Buildings should be clustered in a way that creates defensible spaces providing views of interior open spaces and amenities. For units without garage spaces , buildings shall be oriented to create minimal distances from assigned parking spaces to primary or secondary residential unit entries.
4.6 BUILDING TYPES
Within the Holt + Allyn Planned Unit Development the buildings that result in a density of more than 25 units per acre are Urban. For Urban building types the following requirements apply.
4.6.1 MASSING INCREMENTS
Along front and side elevations that face public streets and are longer than 100 feet shall require a minimum of two distinct massing increments. Individual massing increments shall be differentiated from one another using at least one of the following:
• vary parapet height by at least 3 feet, increase number of stories; • set back upper floor;
• set the upper floor or multiple floors back at least 15 feet from façade; or • set the entire façade back at least 10 for every 20 feet and/or by incorporating a tower element. 794
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Massing increments that have distinct facades shall appear as distinct buildings and a massing increment design may be repeated on the same project elevation.
Buildings within the PUD area are dist inct from one another, have articulation every 100 feet and have incorporated tower elements along Holt Boulevard.
4.6.2 FACADES - BUILDING BASE
Separate the building base from the rest of the façade for at least 12 feet (fewer than 5 stories) using at least one of the following strategies: provide a string course at the top of the first story, specify base material different from the rest of façade , s pecify body colors different from rest of façade or provide a ground floor Arcade or Gallery.
Buildings within the PUD area provide a base height of 12 feet and include a string course at the top of the first story.
4.6.3 FACADES - BUILDING BODY
The body of the building consists of the façade of all floors located above base and shall be designed as follows: windows shall be organized in bays, bands, curtain wall, and grid of windows and e ach massing increment must contain its entire façade composition without elements overlapping the division between increments.
4.6.4 FACADES - FENESTRATION DESIGN
Fenestration design addresses the percentage of window and door openings for ground floors and upper floors and glazing transparency. The ground floors of the building along the front lot line will have approximately 35 percent glazing transparency. All other frontages will have approximately 25 percent glazing transparency. For the upper floors of the building, 15 percent glazing transparency will be provided.
Additionally, ground floor windows shall be no higher than 3 feet above the adjacent grade and ground-floor bathroom windows are prohibited on facades that face front lot line.
4.7 ARCHITECTURAL CHARACTER
Due to the size and scale of the PUD project area, many of the buildings’ elevations may be visible from the public street, common access drives, common parking areas, or adjacent parcels. As 795
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such, architectural treatments should be carried around to the visible portions of all sides of the buildings. All towers or raised elements should be fully finished on all sides to appear as three - dimensional features.
Development types with densities of greater than 25 dwelling units per net acre shall be characterized as “urban” in their architectural character, as described below. Developments with densities lower than 25 dwelling units per net acre that include more than 5 units shall be characterized as “neighborhood” styles and shall carry the architectural character and are subject to the design requirements outlined in Section 2.2.2 of the Ontario Objective Design Standards.
The development shall be designed with a Mission-Spanish architectural style.
Influenced by Spanish/Mediterranean and early Californian styles in the late 19th and early 20th centuries, the Spanish Colonial Revival style is asymmetrically arranged and includes low -pitched roofs covered with S -type clay red roofing tiles, wooden frames with stucco siding, and arches above doors, porch entries, and main windows.
4.7.1 FORM AND MASSING
The following form and massing requirements apply to the Mission-Spanish architectural style
A. Asymmetrical façade/elevations.
B. Three or more roof planes.
C. A minimum of 50 percent of the units shall have balconies or window treatments (such as shutters or awnings).
D. Entrances are recessed a minimum 12 inches.
4.8 MATERIALS AND DETAILING
A variety of durable high -quality materials with a range of textures and patterns that are naturally inherent in the materials should be used. Furthermore, building envelopes will be designed to prioritize meeting and exceeding energy efficiency goals to achieve a Zero Net Energy property.
This includes everything from the types of windows, window frames, doors, fenestration percentage, and building exterior specs that will be utilized. Along nonresidential locations with street frontages, vinyl, fiberglass, or aluminum -clad windows shall be utilized to meet the California Energy Code and will resemble wood -framed windows. Alternative wood materials might also be used for window and door trims but will resemble wood to achieve architectural goals. The proposed color scheme for developments within the PUD area should complement surrounding uses with warmer and neutral tones and accent features to create a cohesive design. The development design will use various architectural strategies to create visual interest and fit the 796
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context of its surroundings. This may include varying parapet heights and increasing stories or towers to create aesthetic appeal for the vertical components of the building. Designs should be divided into a base and body with varying design elements utilizing materials or window treatments to break up the massing of the façade. Balconies, awnings, and elements facing the street frontage should adhere to defined standards within this PUD, such as front lot line setbacks. Balconies and entry features along the building frontage must align with the architectural character of the building .
Other features are described in greater detail below.
4.8.1 MATERIALS AND COLORS
A. Roof tiles shall use terracotta, brown earth tones, or rustic red color palettes.
B. White, cream, or tan stucco wall with (20/30) textured finish (i.e., hand troweled) C. Wood-like materials (i.e., Alumawood or similar product) shall be used as secondary wall material for the following and similar elements:
A. Posts and exposed beams.
B. Railing, spindles, and grille work.
C. Shutters, window frames, and doors.
D. If windows have shutters , the shutters' color shall match the accent color that is used for doors or decorative trim.
E. A minimum of 1 wrought -iron element (such as railings, hardware, and gates) shall be used.
The following sample building materials proposed are illustrated on the south building elevations:
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*Proposed color and materials details.
4.8.2 DOORS AND WINDOWS
A. Accent windows shall be a minimum of ten percent of the total windows.
B. The primary facade shall include a minimum of one arched element.
C. All primary entrance-door surrounds shall be banded with ceramic tile, molded plaster, or painted accents.
D. Vinyl or vinyl-clad windows are permitted if they are a dark color that is complementary or typical of the architectural style of the building.
E. Windows are not required to be recessed to ensure the long -term viability of the building envelope and prevent water intrusion.
F. Door and window trim may include wood, faux wood (i.e., Alumawood) cast stone, pre- cast concrete, glass fiber, reinforced concrete, and cement fiber board.
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4.8.3 ROOF
A. A flat roof is proposed to meet the requirements of Title 24 and maximize solar PV arrays onsite.
B. When a flat roof is used, it shall be screened by a parapet that is an extension of the wall plane or by a modified Mansard roof.
C. Red, fired, clay tile roofs. Tile types include both Spanish (S -shaped) and Mission (half-cylinder) or concrete S 2-piece roof tiles.
4.8.4 DECORATIVE DETAILS
All residential projects 4 stories and taller shall provide a minimum of 5 of the following:
• Entry/front porch or patio;
• Decorative tiles;
• Clay tile vents;
• Wrought-iron balcony railings or support brackets;
• Dark-metal light fixture and hardwares;
• Paired wood (or wood simulated) garage doors with iron hardware, • Verandas, pergolas, or arcades,
• Exterior stairs, and/or
• Awnings with metal spear supports.
4.9 STORAGE
Lockable private storage space for each residential unit may be provided within a storage building or a space directly accessible from the dwelling , such as an e xterior closet accessed from a patio or balcony if screened from public view. Storage is not required but can be provided if feasible.
4.10 OPEN SPACE
To enhance the quality of life for residents, areas for physical activity, relaxation, and social engagement, common open spaces shall be provided to foster a sense of community and cohesion. Two types of open space are required, private and common open space. These open space areas are for the use of the on-site residents and their guests. Required street setback areas are not counted towards common open space requirements.
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4.10.1 PRIVATE OPEN SPACE
Private open space shall be provided for each residential unit in order to provide private outdoor areas that can be enjoyed for exclusive use by the occupant of the residential unit and their guests.
Types of areas considered private open space include balconies, decks, and enclosed patios and yards. A minimum of 60 square feet of private open space shall be provided for each residential unit.
4.10.2 COMMON OPEN SPACE
Common open space shall be provided to allow for both passive and active types of recreation, along with site landscape amenities. These areas are for use by project residents and their guests and may include indoor recreational facilities. The amount of required common open space shall be a minimum of 15% of the total lot area and include at least one of the following landscaped open space types: forecourt of 15 by 15 feet, side garden, 20 by 30 -foot interior court, and passages between buildings.
Areas not considered common open space include: [1] parking lots; [2] walkways along or between buildings; [3] parking lot landscaping; [4] street setback areas; and [5] other areas not intended for active or passive recreation.
4.11 PARKING STANDARDS
Given the PUD area’s location along a major transportation corridor, with access to multiple bus lines and the upcoming West Valley Connector BRT line, future projects should consider a parking ratio that is below the parking standards included in the City of Ontario Zoning Code. Based on recent legislation, best practices in the region, and the PUD location and proximity to transit, a Development Plan that proposes multifamily residential development that has affordability restrictions in place will be required to provide parking based on the following ratios:
TABLE 4-3: REQUIRED PARKING
UNIT SIZE/USE REQUIRED PARKING RATIO PARKING REQUIRED
1 bedroom unit/studio 1.0 spaces per unit 13 spaces
2-bedroom unit 1.3 spaces per unit 88.4 spaces
3-bedroom unit 1.7 spaces per unit 107.1 spaces
Visitor parking 0.075 spaces per unit 10.8 spaces
Staff parking -- 3 spaces
TOTAL 222.3 spaces
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Market-rate residential projects or mixed-use projects that do not require affordability restrictions on housing units are subject to the City of Ontario parking standards as shown in the Municipal Code.
A proposed Development Plan may propose secure resident and guest parking within the PUD site in conformance with the standards listed above . To ensure future residential parking is controlled, the Development Project will ensure that a parking management plan is in place by a property manager upon development completion.
In no event shall s treet parking be allowed on Holt Boulevard. Should adjacent parcels with complementary residential uses be developed in the future, shared parking strategies shall be allowed under this PUD so long as a parking management plan is in place and updated to meet all onsite parking needs.
4.12 PARKING DESIGN
Parking shall be designated in compliance with the applicable standards in Division 6.03 (Off-Street Parking and Loading) of the Ontario Development Code and the City’s Objective Design and Development Standards. The development proposes the development of approximately 239 surface parking spaces. Surface parking will comply with the following standards:
4.12.1 SURFACE PARKING LAYOUT
A. Setbacks. Surface parking lots adjacent to public or private streets shall include a landscaped and irrigated setback a minimum of 5 feet in width measured from the property line, or aligned with the building façade, whichever is greater.
B. Orientation. Surface parking lots shall be located at the rear, side, or internal lot lines and away from the front lot line.
4.12.2 SURFACE PARKING SCREENING
A. Street-adjacent parking lots shall be screened from view by a low wall or hedge no higher than 3 feet in height.
B. Views from neighboring properties shall be screened with trees and shrubs.
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4.12.3 SURFACE PARKING LOT DESIGN
A. Landscape. Landscaping materials shall be applied in compliance with the applicable objective parking lot landscape standards contained in Ontario Development Code Section 6.05.030
4.12.4 SURFACE PARKING ACCESSORY STRUCTURES
A. All accessory structures, including carports , if used, shall match the architectural style and/or colors of the project buildings.
4.13 EQUIPMENT SCREENING
All roof-mounted and ground-mounted equipment shall be fully screened from a view of the public street and adjacent developments . The location of items shall be designed to allow screening with landscape materials, walls, architectural features, parapet walls, etc. Screening should be designed in a way that seamlessly integrates screening within a proposed Development Project.
4.14 FENCES AND WALLS
Fences and walls for a proposed Development Project shall be made of decorative materials that are compatible with the overall architectural character of the development within the PUD area . All fences and walls shall be in scale with the development to fulfill such needs as screening and security. Fences, walls , and hedges within the PUD area shall comply with Engineering Corner Sight Distance Standards an d other applicable standards . All decorative walls, monuments , and other similar features shall not encroach into the public street right -of-way. Within the PUD area, fences and walls shall be limited to a maximum of six feet (6’) in height within the interior, rear, and front entry areas consistent with the requirements of the Mixed Use-6 land use district.
4.15 SIGNS
Signs must comply with the City of Ontario Development Code and be coordinated through a comprehensive sign program.
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4.16 SERVICE FACILITIES
Service facilities such as trash enclosures and parking areas shall be designed, located , and oriented to have a minimal visual impact on the development frontage within the PUD area. Trash enclosures shall be designed to coordinate with the architecture, colors , and materials of the development and shall be located to provide adequate access for trash pickup without encroaching into access drives or landscaped areas. Trash enclosures shall be designed and constructed with a solid roof cover which shall also be designed to match the architecture of the development. 803
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29 5. CIRCULATION &
INFRASTRUCTURE
5.1 VEHICLE CIRCULATION
Proposed Development Projects within the PUD area are required to provide adequate vehicle connections from potential buildings to the public street. Primary access to a future Development Project shall be provided through at least one central fifty-seven (57’) foot gated vehicular access point. A secondary twenty-six-foot (26’) driveway for emergency vehicle access shall be provided off Holt Boulevard at the western end of the PUD area . Within the PUD area , drive aisles are two - way and a minimum of twenty-six feet (26’) wide to ensure adequate emergency vehicle access.
5.2 PEDESTRIAN CONNECTIONS
Proposed Development Projects within the PUD area will be required to provide adequate pedestrian connections from residential buildings to the public street. This can be achieved through pedestrian gates along street frontages and/or access gates near driveways.
5.3 MASS TRANSIT
The proposed Development Project within the PUD area should encourage the use of e xisting bus stops by providing pedestrian connections to east and westbound destinations through [Omnitrans 61] with bus stops located on the northeast corner of Holt Boulevard and Allyn Avenue as well as 5 804
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the southeast corner of Holt Boulevard and Bon View Avenue. The PUD site is also roughly 0.4 miles from the anticipated West Valley Connector stop at the corner of Grove Avenue and Holt Boulevard.
5.4 STREET DEDICATIONS AND EASEMENTS
Proposed Development Projects within the PUD area shall dedicate right -of-way (ROW) along all street frontages as necessary to increase the right -of-way to ultimate width with a modified parkway section (Holt Boulevard) consistent with the West Valley Connec tor Bus Rapid Transit (BRT) line. Widths along the Ho lt Boulevard frontage will vary from approximately 58 feet at the western boundary tapering to approximately 45 feet for the majority of the site frontage.
Development projects will accommodate the required ultimate right -of-way for Holt Boulevard to ensure that the proposed right-of-way Holt Boulevard can accommodate the development of the West Valley Connector BRT line.
EXHIBIT 5-1: HOLT BOULEVARD TYPICAL ROW
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5.5 PUBLIC RIGHT-OF-WAY IMPROVEMENTS
As development projects are proposed within the PUD area, prospective developers are responsible for improving the public right-of-way to be consistent with the City’s General Plan and Municipal Code. Public right-of-way improvements are required to include but are not limited to the following: street pavement, curb & gutter, parkway landscaping, parkway irrigatio n, raised landscape median with irrigation on Holt Boulevard, public sidewalks, traffic sign age and striping, streetlights, bus stop, bus shelter, and amenities. The extent of the required improvements shall be determined for each development plan. At a minimum, the improvements shall incorporate all items along the street frontages of the properties to be developed with proper transitioning of the entire block frontage if not being installed simultaneously. Improvements along the street frontage for the entire block may be required at the time of the development plan review.
5.6 INFRASTRUCTURE
Water service for the PUD site will be provided by the existing 12-inch water line in Holt Boulevard.
Wastewater flows for the PUD will also be designed to connect to the existing 30-inch sewer line in Holt Boulevard. On-site stormwater 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 detention/retention/infiltration vaults. The existing Master Plan storm drain at Virginia Avenue and Holt Boulevard is built to the ultimate requirement ; consequently, additional storm drain system extensions are not necessary. All building roof and paved area runoff shall be directed into depressed landscaped swales, trenches, or basins, within the development , 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 . All Priority Land Use (PLU) areas shall comply with the statewide Trash Provisions adopted by the State Water Resources Control Board (SWRCB) and trash requirements in the most current San Bernardino County Area-Wide MS4 Permit.
Sewer mains in Nocta St reet and Allyn Ave nue will need to be installed per City Standards and Guidelines to accommodate th e project. All existing unused sewer lines traversing the project site as well as any unused manholes on the project site will be abandoned per the City’s Standards. In instances where sewer lines are abandoned, the PUD requires that any adjacent properties impacted be reconnected to sewer mains along Nocta Street and Allyn Avenue.
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Utility lines (electric, communications, TV, etc.) located onsite that are currently overhead will be placed underground unless they run along a property line that would allow them to remain and would not impact the proposed housing development and/or it is determined to be financially or physically infeasible and/or requires approval or access from neighboring property owners . The existing overhead utility lines and utility poles along the eastern, northern, and western edges of the site may remain in place with appropriate setbacks and easements.
Street lighting shall be installed along the public right -of-way off Holt Boulevard in line with City of Ontario Standards. The type of street lighting will be determined at the time of development plan review.
5.7 LANDSCAPING + DRAINAGE PLAN
A conceptual landscape plan and preliminary drainage plan shall be submitted with each Development Plan proposed within the Holt + Allyn Planned Unit Development area. The plan shall specify all landscape and hardscap e elements for the development site and indicate how the improvements will coordinate with th e other sites within the PUD . The landscape plans and/or civil plans shall show the location of all ground-mounted utility structures such as transformers, backflow prevention devices, trash enclosures, and HVAC equipment, and indicate the methods for screening these items. All utility structures and equipment shall be screened from view of the public streets and adjacent developments.
Water conservation shall be provided through drought-tolerant plant species, hydro zones, water- efficient irrigation, and weather-based controllers. Landscaped areas may be used for stormwater infiltration through vegetated swales, detention or retention basins, or dry wells as needed with the use of appropriate planting materials. Broad canopy shade trees shall be used to reduce heat gain on buildings, paving , and parking areas. The plan shall identify all existing trees on site and preserve them where possible. The landscape design shall meet the requirements of the Landscape Development Standards and shall create well -functioning spaces within a sustainable design.
Within the PUD area, the building façade shall be complemented by a curated planting palette along the building frontage. Additionally, in conformance with the BRT Plans, the right -of-way widths fronting the building will meet the Holt Blvd parkway (landscape + sidewalk) of ten and a half feet (10.5') width. Parkway landscaping and irrigation , although within the public right -of-way, will be installed and maintained by each development. Additionally, trees along street frontages shall comply with the variety, size, and spacing as directed by the City of Ontario Master Street Tree Plan.
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34 6. ADMINISTRATION
6.1 ITEMS NOT ADDRESSED IN PUD
Any terms, requirements, or regulations not addressed within the PUD document shall be governed by the City of Ontario Development Code, the regulations of the General Mixed-Use zones, and City Standards.
6.2 DEVELOPMENT APPLICATIONS
Development Plans for projects within the Holt + Allyn PUD area, along with fees and other required items, shall be submitted for review and approval per the requirements contained in Article 8 of the City of Ontario Development Code and the General Application.
6.3 ADMINISTRATIVE EXCEPTIONS
Deviation from the development standards set forth in this d ocument may be granted up to a maximum of ten percent (10%) by the Zoning Administrator. Any deviations from the City of Ontario's development standards will be considered an incentive/concession in lieu of a variance.
6.4 AMENDMENTS TO THE PUD
Any amendments to the PUD document are subject to the Ontario Development Code Section
4.01.030.
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ORDINANCE NO. ________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PUD24-002, A PLANNED UNIT
DEVELOPMENT TO CREATE DEVELOPMENT STANDARDS AND
DESIGN GUIDELINES FOR A DEVELOPMENT PLAN TO CONSTRUCT
144-UNIT MULTIPLE-FAMILY RESIDENTIAL APARTMENT COMPLEX
ON APPROXIMATELY 5.73 ACRES OF LAND LOCATED NEAR THE
NORTHEAST CORNER OF EAST HOLT BOULEVARD AND ALLYN
AVENUE WITHIN THE MU-6 (EAST HOLT MIXED USE) ZONING
DISTRICT, AND MAKING FINDINGS IN SUPPORT THEREOF—APN:
1048-481-06, 1048-481-07, 1048-481-08, 1048-481-28, 1048-481-29 WHEREAS, National CORE ("Applicant") has filed an Application for the approval of a Planned Unit Development, File No. PUD24-002, as described in the title of this Ordinance (hereinafter referred to as "Application" or "Project"); and WHEREAS, the Application applies to 5.73 acres of land generally located near the northeast corner of East Holt Boulevard and Allyn Avenue, approximately 140 feet east of the intersection, within the MU-6 (East Hold Mixed Use) zoning district, and is presently vacant; and
WHEREAS, the property to the north of the Project site is within the MU-6 (East Holt Mixed Use) zoning district, and is developed with residential uses. The property to the east is within the MU-6 (East Holt Mixed Use) zoning district, and is developed with commercial and residential uses. The property to the south is within the IP (Industrial Park) zoning district, and is developed with residential uses and vacant land. The property to the west is within the MU-6 (East Holt Mixed Use) zoning district, and is developed with retail and residential uses; and
WHEREAS, on January 27, 2010, the Ontario City Council certified The Ontario Plan Environmental Impact Report in conjunction with File No. PGPA06-001 (City Council Resolution No. 2010-006), and on August 16, 2022, the Ontario City Council certified The Ontario Plan 2050 Update Supplemental Environmental Impact Report in conjunction with File No. PGPA20-002 (City Council Resolution No. 2022-129). The Ontario Plan and associated Environmental Impact Report analyzed the Project site and established guidelines for development, including but not limited to, general land use (Mixed Use – Holt (MU-Holt), which stipulates 14.0 to 40.0 du/ac, 2.0 FAR for office uses, and 1.0 FAR for retail uses); and
WHEREAS, on December 17, 2024, the Ontario Housing Authority approved a Disposition and Development Agreement with the Applicant to facilitate the development of the subject affordable housing development; and
WHEREAS, the Application is a project pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) ("CEQA"); and 811
WHEREAS, the Project is exempt from CEQA through Section 15183, and the application of that exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 153183.3; and
WHEREAS, Ontario Development Code Table 2.02-1 (Review Matrix) grants the City Council the responsibility and authority to review and act on the subject Application; and
WHEREAS, the Project has been reviewed for consistency with the Housing Element of the Policy Plan component of The Ontario Plan 2050, 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 ("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 February 25, 2025, 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. PC25-004 recommending the City Council approve the Application; and
WHEREAS, on April 15, 2025, 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:
812
(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 proposed Development Plan is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15183 (Project Consistent with a Community Plan or Zoning) of the CEQA Guidelines and meets all of the following conditions:
(a) The Project is consistent with the development density established by existing zoning, community plan or general plan policies for which an EIR was certified . The Project site is within the Holt Boulevard Mixed Use Area as designated by TOP 2050 and would contain 144 residential units across two buildings. This is consistent with the uses analyzed in the TOP 2050 Supplemental EIR and allowed by the Holt Boulevard Mixed Use Area designation. (b) There are no Project specific effects which are peculiar to the Project or its site, and which the TOP 2050 Supplemental EIR failed to analyze as significant effects . The subject property is similar to other properties in the area, including its land use designation and zoning. The property does not support any peculiar environmental features, and the Project would not result in any peculiar effects. The TOP 2050 anticipated the proposed development on the project site and Project impacts were adequately analyzed by the TOP 2050 Supplemental EIR. The TOP 2050 Supplemental EIR identified three environmental impact areas for which mitigation measures were required to reduce potential environmental impacts to a less than significant level: (1) cultural resources; (2) geology and soils; and (3) tribal cultural resources.
The proposed project will be required to comply with these mitigations where applicable. The TOP 2050 Supplemental EIR also identified that the TOP 2050 would result in significant and unavoidable environmental impacts that could not be avoided or reduced to less than significant levels through mitigation measures.
These include: (1) air quality; (2) cultural resources; (3) noise; (4) transportation. The proposed project will not create additional significant or unavoidable impacts that were not already addressed through the TOP 2050 Supplemental EIR.
(c) There are no potentially significant off-site and/or cumulative impacts which the TOP 2050 Supplemental EIR failed to
evaluate. The Project is consistent with the land use characteristics of the development considered by the TOP 2050 Supplemental EIR and would represent a small part of the growth that was forecasted for build-out of the TOP 2050. The TOP 2050 Supplemental EIR considered the incremental impacts of the Project, and no new Project-specific impacts are anticipated. Therefore, the Project would 813
not result in any potentially significant cumulative impacts which were not previously evaluated in the TOP 2050 Supplemental EIR. (d) There is no substantial new information which results in more severe impacts than anticipated by the TOP 2050 Supplemental EIR. No new information has been identified which would result in a determination that the Project would have a more severe impact than anticipated by the TOP 2050 Supplemental EIR.
(e) The Project will undertake feasible mitigation measures specified in the TOP 2050 Supplemental EIR . The Project will undertake feasible mitigation measures specified in the TOP 2050 Supplemental EIR and subsequently adopted by the City. These TOP 2050 Supplemental EIR mitigation measures will be undertaken through Project design, compliance with regulations and ordinances, the Project’s conditions of approval, and City permit processing; and (3) The application of the exemption is not barred by one of the exceptions set forth in CEQA Guidelines Section 15300.2; and
(4) The determination of CEQA exemption reflects the independent judgment of the City Council.
SECTION 2: Housing Element Compliance. Pursuant to the requirements of California Government Code Chapter 3, Article 10.6, commencing with Section 65580, as the decision-making body for the Project, the City Council finds that based on the facts and information contained in the Application and supporting documentation, at the time of Project implementation, the project is consistent with the Housing Element of the Policy Plan (General Plan) component of The Ontario Plan. The Project site is one of the properties listed in the Housing Element Sites contained in Tables B-1 and B-2 (Housing Element Sites Inventory) of the Housing Element Technical Report. The Housing Element Sites Inventory designates the site for 108 units in the very low/low-income category; however, the proposed Project includes 144 units in the very low/low-income category, exceeding the originally anticipated number. The Housing Element Sites Inventory will be amended to reflect this change.
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.
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 814
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 4: Concluding Facts and Reasons. Based upon the substantial evidence presented to the City Council during the above-referenced hearing, and upon the specific findings set forth in Section 1 through 3, 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 proposed Project is located within the Mixed Use – Holt Boulevard land use district of the Policy Plan Land Use Map, and the MU-6 (East Hold Mixed Use) zoning district. The development standards and conditions under which the proposed project will be constructed and maintained, is consistent with goals, policies, and exhibits of the Vision, Policy Plan (General Plan), and City Council Priorities components of The Ontario Plan. (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 City Council has required certain safeguards, and has required certain changes, 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 components of The Ontario Plan 2050.
(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. A thorough review and analysis of the proposed project and its potential to adversely impact properties surrounding the subject site was completed by City staff. As a result of this review, certain design considerations were incorporated into the project to mitigate the identified impacts to an acceptable level, including the use of the upgraded materials, the inclusion of certain architectural design elements on building exteriors, intensified landscape elements, and decorative hardscape elements.
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(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 PUD, a thorough review and analysis of the proposed project and the project site’s physical suitability for the proposed project was completed, included 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. (5) The proposed PUD is superior to that which could be obtained through the application of the Development Code or a specific plan. The proposed PUD addresses aspects of the project that are specifically related to the Development Plan proposed in conjunction with PUD application, including necessary building setbacks, site access points, off-street parking and site circulation, and architectural character.
SECTION 5: City Council Action. Based upon the findings and conclusions set forth in Sections 1 through 4, above, the City Council hereby APPROVES the herein described Planned Unit Development, 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: 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.
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SECTION 9: Effective Date. This Ordinance shall become effective 30 days following its adoption.
SECTION 10: 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 fifteen (15) days of 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 _________ 2025. _____________________________________
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 ___________, 2025 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. PUD24-002
Holt + Allyn Planned Unit Development
(Document follows this page)
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PREPARED BY:
National Community Renaissance ®
9692 Haven Avenue, Suite 100
Rancho Cucamonga, CA 91730
ONYX ARCHITECTS
316 N. Sierra Madre Blvd.
Pasadena, CA 91107
HOLT + ALLYN PLANNED UNIT DEVELOPMENT
FILE NO: PUD24-002
DRAFT: DECEMBER 2024
REVISED: JANUARY 2025
820
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TABLE OF CONTENTS
1. INTRODUCTION ............................................................................................ 5
1.1 Overview .......................................................................................................... 5
2. PROJECT OBJECTIVES ................................................................................... 7
2.1 General Plan Consistency .............................................................................. 7
2.2 Center City Redevelopment Plan Objectives ............................................ 12
2.3 PUD District Purpose And Objectives ........................................................... 12
3. LAND USE PLAN ........................................................................................ 14
3.1 Land Use Designation ................................................................................... 14
3.2 Permitted Uses................................................................................................ 16
4. DEVELOPMENT REGULATIONS AND DESIGN STANDARDS .......................................... 17
4.1 Building Intensity ............................................................................................ 17
4.2 Building Height ............................................................................................... 17
4.3 Building Setbacks ........................................................................................... 18
4.4 Building Separation ....................................................................................... 18
4.5 Building Orientation ....................................................................................... 18
4.6 Building Types ................................................................................................. 19
4.7 Architectural Character ............................................................................... 20
4.8 Materials And Detailing................................................................................. 21
4.9 Storage ........................................................................................................... 24 TOC
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4.10 Open Space .................................................................................................. 24
4.11 Parking Standards .......................................................................................... 25
4.12 Parking Design ............................................................................................... 26
4.13 Equipment Screening ................................................................................... 27
4.14 Fences And Walls........................................................................................... 27
4.15 Signs ................................................................................................................ 27
4.16 Service Facilities ............................................................................................. 28
5. CIRCULATION & INFRASTRUCTURE ................................................................... 29
5.1 Vehicle Circulation ........................................................................................ 29
5.2 Pedestrian Connections ............................................................................... 29
5.3 Mass Transit ..................................................................................................... 29
5.4 Street Dedications And Easements ............................................................. 30
5.5 Public Right-Of-Way Improvements ............................................................ 31
5.6 Infrastructure .................................................................................................. 31
5.7 Landscaping + Drainage Plan ..................................................................... 32
6. ADMINISTRATION ........................................................................................ 34
6.1 Items Not Addressed In PUD ......................................................................... 34
6.2 Development Applications .......................................................................... 34
6.3 Administrative Exceptions ............................................................................. 34
6.4 Amendments to the PUD .............................................................................. 34
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5 1. INTRODUCTION
1.1 OVERVIEW
The Holt + Allyn Planned Unit Development (PUD) is intended to function as a set of planning and design principles, development regulations , and performance standards to guide and govern the development of five parcels bounded by Holt Boulevard to the south and residential parcels along Nocta Street to the north and Allyn Avenue to the west [see Exhibit 1-1, Project Location Map]. The project site is envisioned to accommodate a high-quality residential use development on the parcels that face Holt B oulevard. The Holt + Allyn Planned Unit Development (PUD) will replace the existing zone district designations and zoning standards that apply to the affected properties.
Unless otherwise defined herein, definitions and interpretations contained in the Development Code shall apply . City Staff and private developers will rely on this PUD to determine whether precise plans for development (“Development Plans”) will adequately meet the City’s land use and design objectives.
Located near the northeast corner of East Holt Boulevard and North Allyn Avenue, the 5.73-acre site is situated along the Holt Boulevard Corridor and within the East Holt Boulevard Mixed Use Area. Through these designations, the Ontario Plan seeks to encourage the redevelopment of Holt Boulevard into medium-density residential uses integrated with commercial, workplace, and urban facades.
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HOLT + ALLYN PLANNED UNIT DEVELOPMENT
6 EXHIBIT 1-1: PROJECT LOCATION MAP
PUD Area
Holt Boulevard
N
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7 2. PROJECT OBJECTIVES
2.1 GENERAL PLAN CONSISTENCY
Within the Ontario Policy Plan (General Plan) the Holt + Allyn PUD site is designated Mixed Use – Holt Blvd. The Ontario Plan describes the Mixed-Use – Holt Blvd designations as “ a low-rise (3-5 stories) intensification of the Holt Corridor. The intent is to create identity and place, connect the corridor to Downtown, and connect the Downtown to the Ontario Airport Metro Center.” Within the community design element, the Policy Plan envisions all corridors to carry unique identities with infill development ; create comfortable, safe, human-scale public real ms, including pedestrian paths, such as sidewalks that provide access to new housing , and meet mobility needs of residents, transit riders, workers and visitors; complete and connect mobility networks for convenient bicycle travel; accentuate the linear nature of the corridor by providing seamless transitions from less intense residential neighborhoods to higher density infill sites; and enable and promote human activity through activated street frontages.
The Holt + Allyn Apartments are consistent with the principles, goals, and policies contained within the components that make up the Ontario Policy Plan, including (1) Vision, (2) Policy Plan, (3) Implementation Programs, and (4) City Council Priorities. The policies implemented by this PUD are as follows:
1. VISION
On February 13, 2007, the Ontario City Council adopted The Ontario Vision . The central them e 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 2 N
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8 SECTION 2 I PROJECT OBJECTIVES
this 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 Plan’s lifetime. They are:
1. A Dynamic Balance that enables our community to confront the continued vigorous 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 of 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 Holt + Allyn PUD will implement the Ontario Vision in ways that will further the City’s desire to be a sustainable and prosperous community.
RESIDENTIAL DEVELOPMENT
• The PUD allows for the development of multifamily housing on a site near schools, recreation, and cultural facilities, places of worship, pl aces of employment and shopping, and a future high-quality public transportation line.
• The development standards encourage multifamily residential development , further diversifying the City’s housing stock and balancing the City’s jobs -to-housing ratio that is essential to maintain quality of life within the community.
• The PUD encourages a comprehensive and diverse housing stock that offers broad choices for the diverse workforce and local families, by introducing new affordable multifamily housing units.
DEVELOPMENT QUALITY
• The PUD requires a well -designed project with high -quality materials that complement the existing neighborhood and will enhance the distinctive architectural styles within the City.
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• The development standards require future projects to consider the existing built environment and open spaces, ensuring careful attention to detail at every scale, including public and private spaces and structures.
MOBILITY
• The PUD is located along the future West County Connector bus rapid transit (BRT) line currently under construction and encourages higher-density development near high- frequency transportation facilitating an exceptional degree of movement and connectivity.
• Within the development standards, proposed projects will provide features and amenities to encourage the use of alternative forms of transportation including bicycles, buses, and walking.
PUBLIC SAFETY
• The PUD will ensure that the project is integrated into the existing neighborhood and that connections are made to residential neighborhoods, schools, parks, community centers , and cultural facilities in the surrounding area.
LEISURE AND CULTURAL ACTIVITIES
• The PUD will require r ecreational amenities, community facilities, and programs that offer ample recreation and cultural involvement by a diverse resident population.
RESOURCE CONSERVATION AND ENHANCEMENT
• The location of the PUD on the future West County Connector line provides a unique opportunity to reduce vehicle trips and air pollutants, resulting in improved air quality in Ontario and the region.
2. POLICY PLAN
Goal LU1 : 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 PUD allows for the development of a multifamily residential project on infill parcel s preserving open space and ensuring access to necessary services and infrastructure. The proposed project will be affordable to households earning less than 60 percent of the area median income (AMI) which will provide opportunities for lower-income families to live close to work, commute via public transportation, and maintain a decent quality of life. The 828
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10 SECTION 2 I PROJECT OBJECTIVES
PUD will also encourage sustainable development practices and LEED certification within all applicable projects.
Goal LU2: Compatibility. Compatibility between a wide range of uses. • The PUD evaluates the existing uses surrounding the property and buffers new development through setbacks and step backs.
Goal LU3: Flexibility. Staff, regulations, and processes that support and allow flexible responses to conditions and circumstances to achieve the Vision.
• The establishment of the PUD allows for clear development standards that allow flexibility to achieve the Ontario Vision, improve livability, reduce vehicular trips, create community gathering places and activity nodes, and help create identity.
Goal H1: 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 improve the long -term sustainability of neighborhoods through comprehensive planning, provision of neighborhood amenities, rehabilitation and maintenance of housing, and community-building efforts. The PUD will also ensure that adequate public services, infrastructure, open space, parking , traffic manage ment, pedestrian, and bicycle routes, as well as public safety related to the project are consistent with the City’s master and neighborhood plans.
Goal H2: 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 revitalize the Holt Boulevard corridor, in conjunction with the construction of the West County Connector by encouraging the production of higher density residential uses that are architecturally, functionally, and aesthetically suited to corridors. The PUD also encourages infill development on a vacant parcel that is identified within the City’s 2021-2028 Housing Element as an opportunity site to meet the City’s Regional Housing Needs Allocation (RHNA). A proposed project on the site will be affordable to households earning less than 60 percent of the area median income (AMI) which will provide opportunities for lower income families to live close to work, commute via public transportation, and maintain a decent quality of life.
Goal H4: Housing Assistance. Increased opportunities for low and moderate-income households and families to afford and maintain quality ownership and rental housing opportunities, including move-up opportunities.
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11 SECTION 2 I PROJECT OBJECTIVES
• The PUD is a collaborative partnership with a nonprofit affordable housing developer to produce affordable housing and supports the City’s goal to provide rental assistance for individuals and families earning extremely low, very low, and low income with funding from the state and federal government.
Goal H5: Special Needs Housing . A full range of housing types and community services that meet the special housing needs for all individuals and families in Ontario, regardless of income level, age, or other status.
• The PUD allows for and encourages the development of larger rental apartments that are appropriate for families with children, including, as feasible, the provision of supportive services, recreation, and other amenities.
3. HOUSING ELEMENT PRINCIPLES
This PUD furthers the City of Ontario Housing Element by implementing core principles included therein, such as:
• Providing a range of housing for all income levels is essential to a complete community. • Affordable, quality housing helps attract and retain a qualified workforce and supports a prosperous local economy.
4. CITY COUNCIL PRIORITIES
The Holt + Allyn PUD is consistent with the City Council’s desire to:
• Invest in the Growth and Evolution of the City’s Economy. • Focus Resources in Ontario’s Commercial and Residential Neighborhoods • Ensure the Development of a Well Planned, Balanced, and Self -Sustaining Community in the New Model Colony
5. IMPLEMENTATION
The Holt + Allyn PUD implements the Ontario Plan as the PUD is a public-private p artnership proposing a multifamily Development Project on a site identified within the City’s Housing Element land inventory and furthers the City’s goal to apply for funding from the Affordable Housing Sustainable Communities (AHSC) Program to connect housing and transit to reduce greenhouse gas emissions.
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12 SECTION 2 I PROJECT OBJECTIVES
2.2 CENTER CITY REDEVELOPMENT PLAN OBJECTIVES
The Center City Project Area encompasses the historic Euclid Avenue District, including parts of East Holt Boulevard. Ontario's City Hall and surrounding Civic Center, Senior Center, Main Library, the Museum of History and Art, Ontario Town Square, and the Law School of the University of La Verne are all within the Center City project area. Development within the downtown area is designed to create an immediate and positive identity transforming the vicinity into a comfortable place to stroll and be seen. Along the Holt Boulevard Corridor and surrounding neighborhoods, the PUD encourages the development of low-rise buildings that include both residential and a mixture of retail uses to maximize the economic vitality of the community and create an urban environment where residents can live and work in Ontario . It also seeks to boost commercial activity by increasing the supply of housing and improving aesthetics on major corridors such as Holt Boulevard.
The goals of the Center City Project include:
• Improving aesthetics along major corridors.
• Promoting the creation of a mixed-use urban village in the Civic Center area; and • Preserving the City's historic commercial structures, neighborhoods, and housing stock.
This PUD furthers each of those goals by laying the foundation for catalytic redevelopment along the East Holt Boulevard corridor – a connecting arterial into the City’s downtown core.
2.3 PUD DISTRICT PURPOSE AND OBJECTIVES
The purpose of the Holt + Allyn PUD as part of the MU-6 (East Holt Mixed-Use) District is to secure the residential uses of the general plan; promote high-quality design standards in urban design; encourage the development of mixed -use residential communities , all while establishing regulations and standards appropriate to the specific need for affordable housing for working families in the area.
The intent of the Holt + Allyn PUD is to:
• Promote development projects that are consistent with The Ontario Plan and Policy Plan.
• Establish a sense of place and identity along the Holt Boulevard Corridor and provide a connection between the Downtown Mixed-Use Area and the Ontario Airport Metro Center.
• Achieve high-density residential development or mixed-use development, and diversification of housing types, while maintaining high quality in design and construction. 831
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13 SECTION 2 I PROJECT OBJECTIVES
• Encourage clustering of structures to preserve a maximum amount of continuous open space.
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14 3. LAND USE PLAN
3.1 LAND USE DESIGNATION
The Holt + Allyn Planned Unit Development (PUD ) includes 5 parcels that are designated Mixed Use (MU) within the Ontario Plan and MU-6 in the City’s Zoning Map. The MU-6 zoning district was established to accommodate the intensification of the East Holt Boulevard Corridor with low -rise (up to 5 stories) buildings accommodating a mix of retail and office uses at a development intensity of up to 2.0 FAR and 1.0 FAR, respectively, and residential uses at a density of 14 to 40 DU/AC.
The MU -6 zoning district intends to create identity and place along the East Holt Boulevard Corridor and provide a connection between the Downtown Mixed-Use Area and the Ontario Airport Metro Center. The MU-6 zoning district is consistent with and implements the East Holt Mixed Use Area land use designation of the Policy Plan component of The Ontario Plan.
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15 SECTION 3 I LAND USE PLAN
EXHIBIT 3-1: LAND USE DISTRICT MAP
Project Area: Mixed Use (MU)
Adjacent Uses: Business Park (BP)
Low Medium Density Residential (LMDR)
Medium Density Residential (MDR)
Neighborhood Commercial (NC)
Mixed Use (MU)
HOLT BLVD
ALLYN AVE
N
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16 SECTION 3 I LAND USE PLAN
3.2 PERMITTED USES
Holt + Allyn Planned Unit Development does not deviate from the residential permitted uses outlined in Table 5.02 -1, Land Use Matrix of the City of Ontario Development Code , as summarized in Table 3-1. For a full listing of uses please refer to the Ontario Development Code.
TABLE 3-1, CITY OF ONTARIO LAND USE MATRIX
Land Uses MU-6
Mixed Use Developments P
Multiple Family Dwellings P
Senior Citizen Housing Developments C
Single-Family Dwellings P
Single Room Occupancy Facilities ---
Supportive Housing ---
Work/Live Units C
“P” – Per section 5.02-1 of the Ontario Zoning Code, Permitted shall mean the land use, activity, or facility within the specified district is permitted by right of bring in the proper zoning district, and is subject to each Development Code provision applicable to the specified zoning district and the standards for specific uses, activities, and facilities contained in division 5.03 (Standards for Specific Uses, Activities, and Facilities) of the City’s Development Code.
"C" (Conditionally Permitted) shall mean the land use, activity, or facility within the specified zoning district is subject to the granting of a Conditional Use Permit pursuant to Section 4.02.025 (Conditional Use Permits) of this Development Code, and is subject to each Development Code provision applicable to the specified zoning district and the standards for specific uses, activities, and facilities contained in Division 5.03 (Standards For Specific Uses, Activities and Facilities).
"---" (Prohibited) shall mean the land use, activity, or facility within the specified zoning district is expressly prohibited and shall not be allowed within the specified zoning district unless changed by Development Code Amendment.
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17 4. DEVELOPMENT REGULATIONS
AND DESIGN STANDARDS
4.1 BUILDING INTENSITY
Residential land uses within the Holt + Allyn Planned Unit Development will be consistent with the Mixed Use-6 (MU-6) zoning district allowing for residential uses at a density of 14 to 40 dwelling units per acre (DUA) or non-residential development at an FAR of up to 2.0.
4.2 BUILDING HEIGHT
Development within the Holt + Allyn Planned Unit Development will be consistent with the Mixed Use-6 zoning district, which allows for a maximum of fifty feet (50’) in height consistent with the City of Ontario General Plan.
To further the City’s low -rise mixed use building typology along the East Holt Boulevard corridor, higher density dwellings can be accommodated to increase the supply of housing, foster integrated residential and retail use communities, and increase pedestrian activity. Within the PUD area, multiple family developments should not exceed five stories or 50 feet, for locations within 100 feet of less intense development patterns (existing or planned). In sites where there are vacant adjacent uses zoned for single family development, building height must also not exceed 50 feet or the height of adjacent residential dwellings, whichever is greater.
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18 SECTION 4 I DEVELOPMENT REGULATIONS
4.3 BUILDING SETBACKS
Within the Holt + Allyn Planned Unit Development the buildings will comply with the building setback requirements as set forth in Table 4 -1 (Minimum Building Setbacks) . All setbacks shall be measured from the ultimate property lines after all dedications to develop streets to the ultimate right-of-way width. Placement of buildings, structures, fences, walls, utility facilities, yards, etc. will be based on the street rights -of-way and property line dimensions. Allowable encroachments in yards include (maximum 6' high) property line fences and gates, landscaping, paving, and public utilities.
TABLE 4.1: MINIMUM BUILDING SETBACKS
SETBACK DISTANCE
1. Minimum Setbacks from Public Street Property Lines / Urban (25 du/ac or greater) • Holt Boulevard 0 feet
2. Minimum Setbacks from Interior Project Boundary Property Line 5 feet
3. Minimum Setbacks from Parking Spaces to Living Areas 10 feet
4.4 BUILDING SEPARATION
Within the Holt + Allyn Planned Unit Development the buildings will comply with the building separation requirements as set forth in Table 4 -2 (Minimum Building S eparation) and are consistent with or are more than the requirements outlined in Table 6.01 -3, Multiple-Family Residential Development Standards, in the City of Ontario Development Code.
TABLE 4.2: MINIMUM SEPARATION BETWEEN DETACHED BUILDINGS
LOCATION DISTANCE
Dwelling Front to Front, Rear or Side < 2-Stories: 25 FT; > 3 Stories: 30 FT Dwelling Side to Side < 2-Stories: 25 FT; > 3 Stories: 30 FT Dwelling Side to Rear 15 FT
Dwelling Rear to Rear 20 FT
4.5 BUILDING ORIENTATION
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Building orientation should be designed to minimize noise impacts, aid in property site safety, create proper accessibility to site amenities and parking and maximize views from residential units.
Design should also be crafted in a way that creates sound spaces, improving site safety. By blending residential and on -site community amenities, the design of the development project should promote increased walkability. Whenever feasible, Development Projects should locate building edges near the property line along Holt Boulevard to strengthen and define the urban edge and encourage pedestrian activity . Development Projects should create interest and interact with the streetscape through active uses, such as a community center, lobby, offices, and other related uses.
4.5.1 EXTERIOR
A. Orientation towards the exterior of the project area shall be carefully evaluated to ensure a proper relationship.
4.5.2 INTERIOR
A. Buildings should be clustered in a way that creates defensible spaces providing views of interior open spaces and amenities. For units without garage spaces , buildings shall be oriented to create minimal distances from assigned parking spaces to primary or secondary residential unit entries.
4.6 BUILDING TYPES
Within the Holt + Allyn Planned Unit Development the buildings that result in a density of more than 25 units per acre are Urban. For Urban building types the following requirements apply.
4.6.1 MASSING INCREMENTS
Along front and side elevations that face public streets and are longer than 100 feet shall require a minimum of two distinct massing increments. Individual massing increments shall be differentiated from one another using at least one of the following:
• vary parapet height by at least 3 feet, increase number of stories; • set back upper floor;
• set the upper floor or multiple floors back at least 15 feet from façade; or • set the entire façade back at least 10 for every 20 feet and/or by incorporating a tower element. 838
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Massing increments that have distinct facades shall appear as distinct buildings and a massing increment design may be repeated on the same project elevation.
Buildings within the PUD area are dist inct from one another, have articulation every 100 feet and have incorporated tower elements along Holt Boulevard.
4.6.2 FACADES - BUILDING BASE
Separate the building base from the rest of the façade for at least 12 feet (fewer than 5 stories) using at least one of the following strategies: provide a string course at the top of the first story, specify base material different from the rest of façade , s pecify body colors different from rest of façade or provide a ground floor Arcade or Gallery.
Buildings within the PUD area provide a base height of 12 feet and include a string course at the top of the first story.
4.6.3 FACADES - BUILDING BODY
The body of the building consists of the façade of all floors located above base and shall be designed as follows: windows shall be organized in bays, bands, curtain wall, and grid of windows and e ach massing increment must contain its entire façade composition without elements overlapping the division between increments.
4.6.4 FACADES - FENESTRATION DESIGN
Fenestration design addresses the percentage of window and door openings for ground floors and upper floors and glazing transparency. The ground floors of the building along the front lot line will have approximately 35 percent glazing transparency. All other frontages will have approximately 25 percent glazing transparency. For the upper floors of the building, 15 percent glazing transparency will be provided.
Additionally, ground floor windows shall be no higher than 3 feet above the adjacent grade and ground-floor bathroom windows are prohibited on facades that face front lot line.
4.7 ARCHITECTURAL CHARACTER
Due to the size and scale of the PUD project area, many of the buildings’ elevations may be visible from the public street, common access drives, common parking areas, or adjacent parcels. As 839
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such, architectural treatments should be carried around to the visible portions of all sides of the buildings. All towers or raised elements should be fully finished on all sides to appear as three - dimensional features.
Development types with densities of greater than 25 dwelling units per net acre shall be characterized as “urban” in their architectural character, as described below. Developments with densities lower than 25 dwelling units per net acre that include more than 5 units shall be characterized as “neighborhood” styles and shall carry the architectural character and are subject to the design requirements outlined in Section 2.2.2 of the Ontario Objective Design Standards.
The development shall be designed with a Mission-Spanish architectural style.
Influenced by Spanish/Mediterranean and early Californian styles in the late 19th and early 20th centuries, the Spanish Colonial Revival style is asymmetrically arranged and includes low -pitched roofs covered with S -type clay red roofing tiles, wooden frames with stucco siding, and arches above doors, porch entries, and main windows.
4.7.1 FORM AND MASSING
The following form and massing requirements apply to the Mission-Spanish architectural style
A. Asymmetrical façade/elevations.
B. Three or more roof planes.
C. A minimum of 50 percent of the units shall have balconies or window treatments (such as shutters or awnings).
D. Entrances are recessed a minimum 12 inches.
4.8 MATERIALS AND DETAILING
A variety of durable high -quality materials with a range of textures and patterns that are naturally inherent in the materials should be used. Furthermore, building envelopes will be designed to prioritize meeting and exceeding energy efficiency goals to achieve a Zero Net Energy property.
This includes everything from the types of windows, window frames, doors, fenestration percentage, and building exterior specs that will be utilized. Along nonresidential locations with street frontages, vinyl, fiberglass, or aluminum -clad windows shall be utilized to meet the California Energy Code and will resemble wood -framed windows. Alternative wood materials might also be used for window and door trims but will resemble wood to achieve architectural goals. The proposed color scheme for developments within the PUD area should complement surrounding uses with warmer and neutral tones and accent features to create a cohesive design. The development design will use various architectural strategies to create visual interest and fit the 840
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context of its surroundings. This may include varying parapet heights and increasing stories or towers to create aesthetic appeal for the vertical components of the building. Designs should be divided into a base and body with varying design elements utilizing materials or window treatments to break up the massing of the façade. Balconies, awnings, and elements facing the street frontage should adhere to defined standards within this PUD, such as front lot line setbacks. Balconies and entry features along the building frontage must align with the architectural character of the building .
Other features are described in greater detail below.
4.8.1 MATERIALS AND COLORS
A. Roof tiles shall use terracotta, brown earth tones, or rustic red color palettes.
B. White, cream, or tan stucco wall with (20/30) textured finish (i.e., hand troweled) C. Wood-like materials (i.e., Alumawood or similar product) shall be used as secondary wall material for the following and similar elements:
A. Posts and exposed beams.
B. Railing, spindles, and grille work.
C. Shutters, window frames, and doors.
D. If windows have shutters , the shutters' color shall match the accent color that is used for doors or decorative trim.
E. A minimum of 1 wrought -iron element (such as railings, hardware, and gates) shall be used.
The following sample building materials proposed are illustrated on the south building elevations:
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*Proposed color and materials details.
4.8.2 DOORS AND WINDOWS
A. Accent windows shall be a minimum of ten percent of the total windows.
B. The primary facade shall include a minimum of one arched element.
C. All primary entrance-door surrounds shall be banded with ceramic tile, molded plaster, or painted accents.
D. Vinyl or vinyl-clad windows are permitted if they are a dark color that is complementary or typical of the architectural style of the building.
E. Windows are not required to be recessed to ensure the long -term viability of the building envelope and prevent water intrusion.
F. Door and window trim may include wood, faux wood (i.e., Alumawood) cast stone, pre- cast concrete, glass fiber, reinforced concrete, and cement fiber board.
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4.8.3 ROOF
A. A flat roof is proposed to meet the requirements of Title 24 and maximize solar PV arrays onsite.
B. When a flat roof is used, it shall be screened by a parapet that is an extension of the wall plane or by a modified Mansard roof.
C. Red, fired, clay tile roofs. Tile types include both Spanish (S -shaped) and Mission (half-cylinder) or concrete S 2-piece roof tiles.
4.8.4 DECORATIVE DETAILS
All residential projects 4 stories and taller shall provide a minimum of 5 of the following:
• Entry/front porch or patio;
• Decorative tiles;
• Clay tile vents;
• Wrought-iron balcony railings or support brackets;
• Dark-metal light fixture and hardwares;
• Paired wood (or wood simulated) garage doors with iron hardware, • Verandas, pergolas, or arcades,
• Exterior stairs, and/or
• Awnings with metal spear supports.
4.9 STORAGE
Lockable private storage space for each residential unit may be provided within a storage building or a space directly accessible from the dwelling , such as an e xterior closet accessed from a patio or balcony if screened from public view. Storage is not required but can be provided if feasible.
4.10 OPEN SPACE
To enhance the quality of life for residents, areas for physical activity, relaxation, and social engagement, common open spaces shall be provided to foster a sense of community and cohesion. Two types of open space are required, private and common open space. These open space areas are for the use of the on-site residents and their guests. Required street setback areas are not counted towards common open space requirements.
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4.10.1 PRIVATE OPEN SPACE
Private open space shall be provided for each residential unit in order to provide private outdoor areas that can be enjoyed for exclusive use by the occupant of the residential unit and their guests.
Types of areas considered private open space include balconies, decks, and enclosed patios and yards. A minimum of 60 square feet of private open space shall be provided for each residential unit.
4.10.2 COMMON OPEN SPACE
Common open space shall be provided to allow for both passive and active types of recreation, along with site landscape amenities. These areas are for use by project residents and their guests and may include indoor recreational facilities. The amount of required common open space shall be a minimum of 15% of the total lot area and include at least one of the following landscaped open space types: forecourt of 15 by 15 feet, side garden, 20 by 30 -foot interior court, and passages between buildings.
Areas not considered common open space include: [1] parking lots; [2] walkways along or between buildings; [3] parking lot landscaping; [4] street setback areas; and [5] other areas not intended for active or passive recreation.
4.11 PARKING STANDARDS
Given the PUD area’s location along a major transportation corridor, with access to multiple bus lines and the upcoming West Valley Connector BRT line, future projects should consider a parking ratio that is below the parking standards included in the City of Ontario Zoning Code. Based on recent legislation, best practices in the region, and the PUD location and proximity to transit, a Development Plan that proposes multifamily residential development that has affordability restrictions in place will be required to provide parking based on the following ratios:
TABLE 4-3: REQUIRED PARKING
UNIT SIZE/USE REQUIRED PARKING RATIO PARKING REQUIRED
1 bedroom unit/studio 1.0 spaces per unit 13 spaces
2-bedroom unit 1.3 spaces per unit 88.4 spaces
3-bedroom unit 1.7 spaces per unit 107.1 spaces
Visitor parking 0.075 spaces per unit 10.8 spaces
Staff parking -- 3 spaces
TOTAL 222.3 spaces
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Market-rate residential projects or mixed-use projects that do not require affordability restrictions on housing units are subject to the City of Ontario parking standards as shown in the Municipal Code.
A proposed Development Plan may propose secure resident and guest parking within the PUD site in conformance with the standards listed above . To ensure future residential parking is controlled, the Development Project will ensure that a parking management plan is in place by a property manager upon development completion.
In no event shall s treet parking be allowed on Holt Boulevard. Should adjacent parcels with complementary residential uses be developed in the future, shared parking strategies shall be allowed under this PUD so long as a parking management plan is in place and updated to meet all onsite parking needs.
4.12 PARKING DESIGN
Parking shall be designated in compliance with the applicable standards in Division 6.03 (Off-Street Parking and Loading) of the Ontario Development Code and the City’s Objective Design and Development Standards. The development proposes the development of approximately 239 surface parking spaces. Surface parking will comply with the following standards:
4.12.1 SURFACE PARKING LAYOUT
A. Setbacks. Surface parking lots adjacent to public or private streets shall include a landscaped and irrigated setback a minimum of 5 feet in width measured from the property line, or aligned with the building façade, whichever is greater.
B. Orientation. Surface parking lots shall be located at the rear, side, or internal lot lines and away from the front lot line.
4.12.2 SURFACE PARKING SCREENING
A. Street-adjacent parking lots shall be screened from view by a low wall or hedge no higher than 3 feet in height.
B. Views from neighboring properties shall be screened with trees and shrubs.
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4.12.3 SURFACE PARKING LOT DESIGN
A. Landscape. Landscaping materials shall be applied in compliance with the applicable objective parking lot landscape standards contained in Ontario Development Code Section 6.05.030
4.12.4 SURFACE PARKING ACCESSORY STRUCTURES
A. All accessory structures, including carports , if used, shall match the architectural style and/or colors of the project buildings.
4.13 EQUIPMENT SCREENING
All roof-mounted and ground-mounted equipment shall be fully screened from a view of the public street and adjacent developments . The location of items shall be designed to allow screening with landscape materials, walls, architectural features, parapet walls, etc. Screening should be designed in a way that seamlessly integrates screening within a proposed Development Project.
4.14 FENCES AND WALLS
Fences and walls for a proposed Development Project shall be made of decorative materials that are compatible with the overall architectural character of the development within the PUD area . All fences and walls shall be in scale with the development to fulfill such needs as screening and security. Fences, walls , and hedges within the PUD area shall comply with Engineering Corner Sight Distance Standards an d other applicable standards . All decorative walls, monuments , and other similar features shall not encroach into the public street right -of-way. Within the PUD area, fences and walls shall be limited to a maximum of six feet (6’) in height within the interior, rear, and front entry areas consistent with the requirements of the Mixed Use-6 land use district.
4.15 SIGNS
Signs must comply with the City of Ontario Development Code and be coordinated through a comprehensive sign program.
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4.16 SERVICE FACILITIES
Service facilities such as trash enclosures and parking areas shall be designed, located , and oriented to have a minimal visual impact on the development frontage within the PUD area. Trash enclosures shall be designed to coordinate with the architecture, colors , and materials of the development and shall be located to provide adequate access for trash pickup without encroaching into access drives or landscaped areas. Trash enclosures shall be designed and constructed with a solid roof cover which shall also be designed to match the architecture of the development. 847
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29 5. CIRCULATION &
INFRASTRUCTURE
5.1 VEHICLE CIRCULATION
Proposed Development Projects within the PUD area are required to provide adequate vehicle connections from potential buildings to the public street. Primary access to a future Development Project shall be provided through at least one central fifty-seven (57’) foot gated vehicular access point. A secondary twenty-six-foot (26’) driveway for emergency vehicle access shall be provided off Holt Boulevard at the western end of the PUD area . Within the PUD area , drive aisles are two - way and a minimum of twenty-six feet (26’) wide to ensure adequate emergency vehicle access.
5.2 PEDESTRIAN CONNECTIONS
Proposed Development Projects within the PUD area will be required to provide adequate pedestrian connections from residential buildings to the public street. This can be achieved through pedestrian gates along street frontages and/or access gates near driveways.
5.3 MASS TRANSIT
The proposed Development Project within the PUD area should encourage the use of e xisting bus stops by providing pedestrian connections to east and westbound destinations through [Omnitrans 61] with bus stops located on the northeast corner of Holt Boulevard and Allyn Avenue as well as 5 848
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the southeast corner of Holt Boulevard and Bon View Avenue. The PUD site is also roughly 0.4 miles from the anticipated West Valley Connector stop at the corner of Grove Avenue and Holt Boulevard.
5.4 STREET DEDICATIONS AND EASEMENTS
Proposed Development Projects within the PUD area shall dedicate right -of-way (ROW) along all street frontages as necessary to increase the right -of-way to ultimate width with a modified parkway section (Holt Boulevard) consistent with the West Valley Connec tor Bus Rapid Transit (BRT) line. Widths along the Ho lt Boulevard frontage will vary from approximately 58 feet at the western boundary tapering to approximately 45 feet for the majority of the site frontage.
Development projects will accommodate the required ultimate right -of-way for Holt Boulevard to ensure that the proposed right-of-way Holt Boulevard can accommodate the development of the West Valley Connector BRT line.
EXHIBIT 5-1: HOLT BOULEVARD TYPICAL ROW
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5.5 PUBLIC RIGHT-OF-WAY IMPROVEMENTS
As development projects are proposed within the PUD area, prospective developers are responsible for improving the public right-of-way to be consistent with the City’s General Plan and Municipal Code. Public right-of-way improvements are required to include but are not limited to the following: street pavement, curb & gutter, parkway landscaping, parkway irrigatio n, raised landscape median with irrigation on Holt Boulevard, public sidewalks, traffic sign age and striping, streetlights, bus stop, bus shelter, and amenities. The extent of the required improvements shall be determined for each development plan. At a minimum, the improvements shall incorporate all items along the street frontages of the properties to be developed with proper transitioning of the entire block frontage if not being installed simultaneously. Improvements along the street frontage for the entire block may be required at the time of the development plan review.
5.6 INFRASTRUCTURE
Water service for the PUD site will be provided by the existing 12-inch water line in Holt Boulevard.
Wastewater flows for the PUD will also be designed to connect to the existing 30-inch sewer line in Holt Boulevard. On-site stormwater 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 detention/retention/infiltration vaults. The existing Master Plan storm drain at Virginia Avenue and Holt Boulevard is built to the ultimate requirement ; consequently, additional storm drain system extensions are not necessary. All building roof and paved area runoff shall be directed into depressed landscaped swales, trenches, or basins, within the development , 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 . All Priority Land Use (PLU) areas shall comply with the statewide Trash Provisions adopted by the State Water Resources Control Board (SWRCB) and trash requirements in the most current San Bernardino County Area-Wide MS4 Permit.
Sewer mains in Nocta St reet and Allyn Ave nue will need to be installed per City Standards and Guidelines to accommodate th e project. All existing unused sewer lines traversing the project site as well as any unused manholes on the project site will be abandoned per the City’s Standards. In instances where sewer lines are abandoned, the PUD requires that any adjacent properties impacted be reconnected to sewer mains along Nocta Street and Allyn Avenue.
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Utility lines (electric, communications, TV, etc.) located onsite that are currently overhead will be placed underground unless they run along a property line that would allow them to remain and would not impact the proposed housing development and/or it is determined to be financially or physically infeasible and/or requires approval or access from neighboring property owners . The existing overhead utility lines and utility poles along the eastern, northern, and western edges of the site may remain in place with appropriate setbacks and easements.
Street lighting shall be installed along the public right -of-way off Holt Boulevard in line with City of Ontario Standards. The type of street lighting will be determined at the time of development plan review.
5.7 LANDSCAPING + DRAINAGE PLAN
A conceptual landscape plan and preliminary drainage plan shall be submitted with each Development Plan proposed within the Holt + Allyn Planned Unit Development area. The plan shall specify all landscape and hardscap e elements for the development site and indicate how the improvements will coordinate with th e other sites within the PUD . The landscape plans and/or civil plans shall show the location of all ground-mounted utility structures such as transformers, backflow prevention devices, trash enclosures, and HVAC equipment, and indicate the methods for screening these items. All utility structures and equipment shall be screened from view of the public streets and adjacent developments.
Water conservation shall be provided through drought-tolerant plant species, hydro zones, water- efficient irrigation, and weather-based controllers. Landscaped areas may be used for stormwater infiltration through vegetated swales, detention or retention basins, or dry wells as needed with the use of appropriate planting materials. Broad canopy shade trees shall be used to reduce heat gain on buildings, paving , and parking areas. The plan shall identify all existing trees on site and preserve them where possible. The landscape design shall meet the requirements of the Landscape Development Standards and shall create well -functioning spaces within a sustainable design.
Within the PUD area, the building façade shall be complemented by a curated planting palette along the building frontage. Additionally, in conformance with the BRT Plans, the right -of-way widths fronting the building will meet the Holt Blvd parkway (landscape + sidewalk) of ten and a half feet (10.5') width. Parkway landscaping and irrigation , although within the public right -of-way, will be installed and maintained by each development. Additionally, trees along street frontages shall comply with the variety, size, and spacing as directed by the City of Ontario Master Street Tree Plan.
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34 6. ADMINISTRATION
6.1 ITEMS NOT ADDRESSED IN PUD
Any terms, requirements, or regulations not addressed within the PUD document shall be governed by the City of Ontario Development Code, the regulations of the General Mixed-Use zones, and City Standards.
6.2 DEVELOPMENT APPLICATIONS
Development Plans for projects within the Holt + Allyn PUD area, along with fees and other required items, shall be submitted for review and approval per the requirements contained in Article 8 of the City of Ontario Development Code and the General Application.
6.3 ADMINISTRATIVE EXCEPTIONS
Deviation from the development standards set forth in this d ocument may be granted up to a maximum of ten percent (10%) by the Zoning Administrator. Any deviations from the City of Ontario's development standards will be considered an incentive/concession in lieu of a variance.
6.4 AMENDMENTS TO THE PUD
Any amendments to the PUD document are subject to the Ontario Development Code Section
4.01.030.
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854
Department: Financial Services
Prepared By: Jennifer Schaefer
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Reviewed By: Doreen Nunes
Approved By:
Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 23
SUBJECT:
RESOLUTIONS AUTHORIZING THE ISSUANCE OF LEASE REVENUE BONDS, SERIES 2025A AND RELATED MATTERS
CITY OF ONTARIO
Agenda Report
April 15, 2025
SECTION:
PUBLIC HEARINGS
RECOMMENDATION:
Hold public hearing and that the City Council and the Ontario Public Financing Authority take the following actions:
A
.
City Council consider and adopt a Resolution authorizing the execution and delivery of a Ground Lease, Lease Agreement, Indenture, Bond Purchase Agreement and Continuing Disclosure Certificate in connection with the issuance and sale of the Lease Revenue Bonds, Series 2025A, by the Ontario Public Financing Authority in an aggregate principal amount not to exceed $250 million and authorizing the distribution of an Official Statement in connection with the offering and sale of the Bonds and authorizing the execution and delivery of necessary documents in connection therewith.
B
.
Ontario Public Financing Authority consider and adopt a Resolution authorizing the execution and delivery of a Ground Lease, Lease Agreement, Indenture, Bond Purchase Agreement and Assignment Agreement in connection with the issuance of its Lease Revenue Bonds, Series 2025A, in an aggregate principal amount of not to exceed $250 million and authorizing the distribution of an Official Statement in connection with the offering and sale of the Bonds and authorizing the execution and delivery of necessary documents in connection therewith.
THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:
Operate in a Businesslike Manner
Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:
The Ontario Public Financing Authority (the “Authority”) and City intend to execute a lease agreement for the purpose of causing the issuance of the Lease Revenue Bonds, Series 2025A (2025 Bonds). Based on current market conditions, a publicly sold tax-exempt bond issuance to fund $250 million in net proceeds would result in estimated average full-year debt service payments of approximately $15 million per year over a 30-year period with an approximate true interest cost of 4.37 percent. The final true interest cost will be determined when the bonds are 855
priced and sold, which is anticipated to occur in May 2025. The estimated issuance costs will be paid from the proceeds of the new bond issue and have been included in the calculation of the debt service. An appropriation for the 2025 Bonds annual debt service payment is included in the Fiscal Year 2025-26 Proposed Budget. Once the 2025 Bonds are sold and issued, this appropriation will be adjusted accordingly at the next quarterly budget update. Future appropriations for the 2025 Bonds annual debt service payment will be included in future annual budgets presented to City Council for approval.
BACKGROUND & ANALYSIS:
The City is undertaking a series of significant public infrastructure projects designed to enhance public amenities and support regional growth. Over the current and next five fiscal years, the City has budgeted approximately $1.6 billion in capital improvements. The Authority is a Joint Powers Authority which was formed to finance the acquisition and construction of public capital improvements and facilitate buildout of the City’s infrastructure plan.
The City has requested that the Authority issue its lease revenue bonds for the purpose of financing certain City capital improvements for the 2025-26 and 2026-27 fiscal years, including, but not limited to, the following projects:
Ontario Sports Empire Onsite and Offsite Improvements
Storm Drain Improvements
Continuum of Care – West Mission Campus
Real Time Information Center
Anthony Munoz Hall of Fame Park Improvements
De Anza Park Improvements
John Galvin Park Improvements
James Galanis Park Improvements
Veterans Memorial Park Improvements
Ontario Museum of History & Art Improvements
The 2025 Bonds will be payable and secured from base rental payments made by the City pursuant to the lease agreement with respect to the lease of the following properties:
Ovitt Family Community Library
Municipal Services Corporation Yard
Creekside Park
Kimball Community Park
Bon View Park
Homer F. Briggs Memorial Park
Anthony Munoz Hall of Fame Park
De Anza Park
Westwind Park
John Galvin Park
Ontario Motor Speedway Park
Celebration Park (North and South)
In coordination with the financing team, staff analyzed various scenarios for the 2025 Bonds, 856
including use of tax-exempt and taxable bonds and funding of capitalized interest. By identifying capital projects that could be funded with tax-exempt bond proceeds, the City is able to achieve a lower true interest cost as compared to a taxable bond issuance. In addition, by pledging the above properties under the lease agreement for the 2025 Bonds, the City will avoid funding capitalized interest during construction, further reducing the cost of borrowing. The 2025 Bonds structure that is being recommended results in the lowest true interest cost and total payments as compared to the alternative scenarios and is reflected in the estimates included with this agenda item.
The proposed 2025 Bonds are estimated to be issued in the principal amount of approximately $232.8 million with a final maturity of November 1, 2055. Based on current market conditions and assuming the City’s current “AA-” Standard & Poor’s rating, the 2025 Bonds are expected to have average annual debt service payments of approximately $15 million and a true interest cost of 4.37 percent. The final interest cost and debt service payments will be determined when the 2025 Bonds are priced, which is currently expected in May 2025.
As required under Section §5852.1 of the California Government Code, good faith estimates as provided by the Municipal Advisor and Underwriter are provided as an attachment to the authorizing Resolution.
FINANCING PLAN:
Presented to the City Council and the Authority are resolutions which approve the execution of a Ground Lease, Lease Agreement, Indenture, Bond Purchase Agreement, Assignment Agreement, Continuing Disclosure Certificate, and Preliminary Official Statement related to the 2025 bonds. The proposed 2025 Bonds are to be secured by lease payments from the City’s General Fund.
To provide services necessary for the issuance of the bonds, staff seeks City Council authority for the City Manager to negotiate and execute agreements with: Stradling Yocca Carlson & Rauth, LLP, to act as Bond Counsel; Best Best & Krieger LLP to act as Disclosure Counsel; Urban Futures, Inc., to act as Municipal Advisor; Ramirez & Co., Inc., to act as Underwriter, and Zions Bancorporation, N.A., to act as Trustee. The costs for such services will be paid for and from the bond proceeds. 857
RESOLUTION NO. ________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,
CALIFORNIA, AUTHORIZING THE EXECUTION AND DELIVERY OF A
GROUND LEASE, LEASE AGREEMENT, INDENTURE, BOND
PURCHASE AGREEMENT AND CONTINUING DISCLOSURE
CERTIFICATE IN CONNECTION WITH THE ISSUANCE OF ONTARIO
PUBLIC FINANCING AUTHORITY 2025A LEASE REVENUE BONDS,
APPROVING THE ISSUANCE OF SUCH BONDS IN AN AGGREGATE
PRINCIPAL AMOUNT OF NOT TO EXCEED $250,000,000,
AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL STATEMENT IN
CONNECTION WITH THE OFFERING AND SALE OF SUCH BONDS AND
AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND
CERTIFICATES AND RELATED ACTIONS
WHEREAS, the City of Ontario, California (the “City”), is a general law city organized and existing under the laws of the State of California; and WHEREAS, the City desires to finance the costs of the acquisition and/or installation of various capital improvements (the “Project”); and WHEREAS, the Ontario Public Financing Authority (the “Authority”) and the City have determined that it would be in the best interests of the City and residents of the City to authorize the preparation, sale and delivery of the “Ontario Public Financing Authority 2025A Lease Revenue Bonds” (the “Bonds”) for the purposes of financing the Project; and
WHEREAS, in order to facilitate the issuance of the Bonds, the City and the Authority desire to enter into a Ground Lease between the City and the Authority (the “Ground Lease”) pursuant to which the City will lease certain real property (collectively, the “Leased Assets”)) to the Authority, and a Lease Agreement between the City and the Authority (the “Lease Agreement”), pursuant to which the City will lease the Leased Assets back from the Authority, and pay certain Base Rental Payments (as such term is defined in the Lease Agreement), which are pledged to the owners of the Bonds by the Authority pursuant to an Indenture by and among Zions Bancorporation, National Association (the “Trustee”), the City and the Authority (the “Indenture”); and WHEREAS, the City and the Authority desire to undertake a negotiated sale of the Bonds to Samuel A. Ramirez & Co., Inc., as the underwriter of the Bonds (the “Underwriter”) pursuant to a purchase contract by and among the City, the Authority and the Underwriter (the “Bond Purchase Contract”); and
WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”) requires that, in order to be able to purchase or sell the Bonds, the underwriters thereof must have reasonably determined that the City has undertaken in a written agreement or contract for the benefit of the holders of the Bonds to provide disclosure of certain financial information and certain events on an ongoing basis; and 858
WHEREAS, in order to cause such requirement to be satisfied, the City desires to execute and deliver a Continuing Disclosure Certificate (the “Continuing Disclosure Certificate”); and
WHEREAS, a form of the Preliminary Official Statement (the “Preliminary Official Statement”) has been prepared; and
WHEREAS, the Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, commencing with Section 6584 of the California Government Code (the “Act”); and
WHEREAS, the City is a member of the Authority and the Project is located within the boundaries of the City; and
WHEREAS, the City has, prior to the consideration of this Resolution, held a public hearing on the financing of the Project from the proceeds of the issuance of the Bonds in accordance with Section 6586.5 of the Act, which hearing was held at 303 East B Street, Ontario, California 91764 on the date of this Resolution; and WHEREAS, in accordance with Section 6586.5 of the Act, notice of such hearing was published once at least five days prior to the hearing in the Inland Valley Daily Bulletin, a newspaper of general circulation in the City; and WHEREAS, the City Council has been presented with the form of each document that is referred to herein relating to the refinancing contemplated hereby, and the City Council has examined and approved each document and desires to authorize and direct the execution of such documents and the consummation of such refinancing; and WHEREAS, all acts, conditions and things required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of such refinancing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such refinancing for the purpose, in the manner and upon the terms herein provided.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario as follows:
SECTION 1. Each of the above recitals is true and correct and the City Council so finds. Following a duly noticed and conducted public hearing, the City Council hereby finds and determines that there are significant public benefits to the citizens of the City through the use of the Act to assist the City with respect to the subject matter hereof through the approval of the issuance of the Bonds and otherwise hereunder within the meaning of Section 6586(a)-(d), inclusive, of the Act, in that the issuance of the Bonds and related transactions will result in more efficient delivery of local agency services to residential and commercial development.
859
SECTION 2. The forms of the Ground Lease and the Lease Agreement on file with the City Clerk are hereby approved, and the Mayor, the City Manager, the Executive Director of Finance and the City Clerk (the “Authorized Officers”), are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Ground Lease and the Lease Agreement in substantially said forms, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the term of the Ground Lease and the Lease Agreement shall terminate no later than November 1, 2056 (provided that such term may be extended as provided therein) and that the true interest cost applicable to the interest components of the Base Rental Payments shall not exceed 5.50%.
SECTION 3. The form of Indenture on file with the City Clerk is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Indenture in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 4. The form of Bond Purchase Agreement on file with the City Clerk is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Bond Purchase Contract in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the Underwriter’s discount shall not exceed 0.45% of the principal amount of the Bonds.
SECTION 5. The form of Preliminary Official Statement on file with the City Clerk, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved.
The Authorized Officers are each hereby authorized to certify on behalf of the City that the Preliminary Official Statement is deemed final as of its date within the meaning of Rule 15c2-12 (except for the omission of certain final pricing, rating and related information as permitted by Rule 15c2-12). The Authorized Officers are each hereby authorized and directed to furnish, or cause to be furnished, to prospective bidders for the Bonds a reasonable number of copies of the Preliminary Official Statement.
SECTION 6. The preparation and delivery of an Official Statement, and its use in connection with the offering and sale of the Bonds, is hereby authorized and approved.
The Official Statement shall be in substantially the form of the Preliminary Official Statement with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. The Authorized Officers are each hereby authorized and directed, for and in the name of and on behalf of the City, to execute the final Official Statement and any amendment or supplement thereto for and in the name and on behalf of the City. 860
SECTION 7. The form of Continuing Disclosure Certificate on file with the City Clerk is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Continuing Disclosure Certificate in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced to the execution and delivery thereof.
SECTION 8. The Authorized Officers are each hereby authorized to evaluate whether the purchase of municipal bond insurance and/or a debt service reserve policy for the Bonds will result in a net savings with respect to the Bonds and, if so, to arrange for the purchase of such municipal bond insurance and/or debt service reserve policy.
The Authorized Officers are each hereby authorized to solicit bids from municipal bond insurers, to select an insurer to provide municipal bond insurance with respect to the Bonds and/or a debt service reserve policy, if applicable, and to execute and negotiate any agreements that are necessary in connection with the procurement of such municipal bond insurance and/or debt service reserve policy, provided that such municipal bond insurance policy and/or insurance debt service reserve policy provides debt service savings or other benefits to the proposed transaction, as determined by the Authorized Officers. The City’s execution of an insurance commitment shall be conclusive evidence of such determination. Each of the above-referenced officers is hereby authorized to direct Bond Counsel and/or the City Attorney to make any necessary revisions to the legal documents to effectuate the procurement of municipal bond insurance and/or a debt service reserve fund policy.
SECTION 9. The Authorized Officers are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, including, but not limited to, adding property to, substituting property for or removing property from the Leased Assets identified in the Ground Lease and the Lease Agreement, and taking any and all actions, and executing and delivering any and all documents, in order to clear any title exceptions to the Leased Assets, including but not limited to entering into any subordination and non-disturbance agreement with any tenants of the Leased Assets. All actions heretofore taken by the officers, employees and agents of the City with respect to the transactions set forth above are hereby approved, confirmed and ratified.
SECTION 10. The good faith estimates of costs related to the Bonds which are required by Section 5852.1 of the California Government Code are disclosed in Exhibit A hereto and are available to the public at the meeting at which this Resolution is approved.
SECTION 11. The City Council hereby approves the execution and delivery of all agreements, documents, certificates and instruments referred to herein with electronic signatures as may be permitted under the California Uniform Electronic Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.
861
SECTION 12. Unless otherwise defined herein, all terms used herein and not otherwise defined shall have the meanings given such terms in the Indenture unless the context otherwise clearly requires.
SECTION 13. This Resolution shall take effect from and after the date of its passage and adoption.
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 15th day of April, 2025. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
____________________________________
SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________
BEST BEST & KRIEGER LLP
CITY ATTORNEY
862
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. 2025- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held April 15, 2025 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. 2025- duly passed and adopted by the Ontario City Council at their regular meeting held April 15, 2025. _____________________________________
SHEILA MAUTZ, CITY CLERK
(SEAL)
863
EXHIBIT A
GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the City by Urban Futures Incorporated (the City’s “Municipal Advisor”) in consultation with Samuel A. Ramirez & Co., Inc., the Underwriter of the Bonds.
Principal Amount. The Municipal Advisor has informed the City that, based on the City’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Bonds to be sold is $250,000,000 (the “Estimated Principal Amount”), which excludes approximately $19,133,552 of premium estimated to be generated based on current market conditions, which together total $251,898,552.
Premium is generated when, on a net aggregate basis for a single issuance of bonds, the price paid for the bonds is higher than the face value of such bonds.
True Interest Cost of the Bonds. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Bonds, is 4.37%.
Finance Charge of the Bonds . The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Bonds), is $1,897,443.
Amount of Proceeds to be Received. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the City for sale of the Bonds, less the finance charge of the Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Bonds, is $250,000,000.
Total Payment Amount . The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the City will make to pay debt service on the Bonds, plus the finance charge for the Bonds, as described above, not paid with the proceeds of the Bonds, calculated to the final maturity of the Bonds, is $460,413,884.
The foregoing estimates constitute good faith estimates only. The actual principal amount of the Bonds issued and sold, the true interest cost thereof, the finance charges 864
thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to: (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates; (b) the actual principal amount of Bonds sold being different from the Estimated Principal Amount; (c) the actual amortization of the Bonds being different than the amortization assumed for purposes of such estimates; (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates; (e) other market conditions; or (f) alterations in the City’s financing plan, delays in the financing, additional legal work or a combination of such factors and additional finance charges, if any, attributable thereto. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the City based on the timing of the need for proceeds of the Bonds and other factors. The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale thereof.
The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the City.
865
RESOLUTION NO. ________
A RESOLUTION OF THE ONTARIO PUBLIC FINANCING AUTHORITY,
OF THE CITY OF ONTARIO, CALIFORNIA, AUTHORIZING THE
EXECUTION AND DELIVERY BY THE AUTHORITY OF A GROUND
LEASE, LEASE AGREEMENT, INDENTURE, BOND PURCHASE
AGREEMENT AND ASSIGNMENT AGREEMENT IN CONNECTION WITH
THE ISSUANCE OF ONTARIO PUBLIC FINANCING AUTHORITY 2025A
LEASE REVENUE BONDS, AUTHORIZING THE ISSUANCE OF SUCH
BONDS IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $250,000,000, AUTHORIZING THE DISTRIBUTION OF AN OFFICIAL
STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF
SUCH BONDS AND AUTHORIZING THE EXECUTION OF NECESSARY
DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS
WHEREAS, the City of Ontario (the “City”) and the Ontario Public Financing Authority (the “Authority”) desire to finance the costs of the acquisition and/or installation of various capital improvements (the “Project”); and
WHEREAS, the Authority and the City have determined that it would be in the best interests of the Authority, the City and residents of the City to authorize the preparation, sale and delivery by the Authority of the “Ontario Public Financing Authority Lease Revenue Bonds Series 2025A (the “Bonds) to finance the Project; WHEREAS, in order to facilitate the issuance of the Bonds, the City and the Authority desire to enter into a Ground Lease between the City and the Authority (the “Ground Lease”) pursuant to which the City will lease certain real property (the “Leased Assets”)) to the Authority, and a Lease Agreement between the City and the Authority (the “Lease Agreement”), pursuant to which the City will sublease the Leased Assets back from the Authority, and pay certain Base Rental Payments (as such term is defined in the Lease Agreement), which are pledged to the owners of the Bonds by the Authority pursuant to an Indenture by and among Zions Bancorporation, National Association (the “Trustee”), the City and the Authority (the “Indenture”); and WHEREAS, the Authority and the Trustee desire to enter into an Assignment Agreement in order to provide, among other things, that all rights to receive the Base Rental Payments have been assigned without recourse by the Authority to the Trustee; and
WHEREAS, the City and the Authority desire to undertake a negotiated sale of the Bonds to Samuel A. Ramirez & Co., Inc., as the underwriter of the Bonds (the “Underwriter”) pursuant to a purchase contract by and among the City, the Authority and the Underwriter (the “Bond Purchase Contract”); and
WHEREAS, a form of the Preliminary Official Statement (the “Preliminary Official Statement”) has been prepared; and
866
WHEREAS, the Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, commencing with Section 6584 of the California Government Code (the “Act”);
WHEREAS, the City is a member of the Authority and the Project is located within the boundaries of the City; and
WHEREAS, the City has, prior to the consideration of this Resolution, held a public hearing on the financing of the Project from the proceeds of the issuance of the Bonds in accordance with Section 6586.5 of the Act, which hearing was held at 303 East B Street, Ontario, California 91764 on the date of this Resolution, and adopted its resolution approving the refinancing and making a finding of significant public benefit in accordance with the Act; and
WHEREAS, in accordance with Section 6586.5 of the Act, notice of such hearing was published once at least five days prior to the hearing in the Inland Valley Daily Bulletin, a newspaper of general circulation in the City; and WHEREAS, the Board of Directors of the Authority (the “Board of Directors”) has been presented with the form of each document that is referred to herein, and the Board of Directors has examined and approved each document and desires to authorize and direct the execution of such documents and the consummation of such financing and refinancing; and
WHEREAS, all acts, conditions and things required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of such refinancing authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the Authority is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such refinancing for the purpose, in the manner and upon the terms herein provided.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Ontario Public Financing Authority as follows:
SECTION 1. Each of the above recitals is true and correct and the Board of Directors so finds. The Board of Directors has determined and hereby finds that the Authority’s assistance in financing the Project by the execution and delivery of the Bonds will result in significant public benefits within the meaning of Section 6586(a)-(d), inclusive, of the Act.
SECTION 2. The forms of the Lease Agreement and the Ground Lease on file with the Secretary of the Authority are hereby approved, and the Chair, Vice Chair, Executive Director, Treasurer and Secretary (the “Authorized Officers”), are each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Lease Agreement and the Ground Lease, respectively, in substantially said forms, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced 867
by the execution and delivery thereof; provided, however, that the term of the Lease Agreement and the Ground Lease shall terminate no later than November 1, 2056 (provided that such term may be extended as provided therein) and the true interest cost applicable to the interest components of the Base Rental Payments shall not exceed
5.50% per annum.
SECTION 3. The form of Indenture on file with the Secretary of the Authority is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Indenture in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 4. The form of Bond Purchase Agreement on file with the Secretary of the Authority is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Bond Purchase Agreement in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the Underwriters’ discount shall not exceed
0.45% of the principal amount of the Bonds.
SECTION 5. The form of Assignment Agreement on file with the Secretary of the Authority is hereby approved, and the Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Assignment Agreement in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 6. The form of Preliminary Official Statement on file with the Secretary of the Authority, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved. The Authorized Officers are each hereby authorized to certify on behalf of the Authority that the Preliminary Official Statement is deemed final as of its date within the meaning of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (except for the omission of certain final pricing, rating and related information as permitted by Rule 15c2-12). The Authorized Officers are each hereby authorized and directed to furnish, or cause to be furnished, to prospective bidders for the Bonds a reasonable number of copies of the Preliminary Official Statement.
SECTION 7. The preparation and delivery of an Official Statement, and its use in connection with the offering and sale of the Bonds, is hereby authorized and approved.
The Official Statement shall be in substantially the form of the Preliminary Official Statement with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. The Authorized Officers are each hereby authorized and directed, for and in the name of and on behalf of the Authority, to execute the final Official Statement 868
and any amendment or supplement thereto for and in the name and on behalf of the Authority.
SECTION 8. The Authorized Officers are each hereby authorized to evaluate whether the purchase of municipal bond insurance and/or a debt service reserve policy for the Bonds will result in a net savings with respect to the Bonds and, if so, to arrange for the purchase of such municipal bond insurance and/or debt service reserve policy.
The Authorized Officers are each hereby authorized to solicit bids from municipal bond insurers, to select an insurer to provide municipal bond insurance with respect to the Bonds and/or a debt service reserve policy, if applicable, and to execute and negotiate any agreements that are necessary in connection with the procurement of such municipal bond insurance and/or debt service reserve policy, provided that such municipal bond insurance policy and/or insurance debt service reserve policy provides debt service savings or other benefits to the proposed transaction, as determined by the Authorized Officers. The Authority’s execution of an insurance commitment shall be conclusive evidence of such determination. Each of the above-referenced officers is hereby authorized to direct Bond Counsel and/or the Authority’s General Counsel to make any necessary revisions to the legal documents to effectuate the procurement of municipal bond insurance and/or a debt service reserve fund policy.
SECTION 9. The Authorized Officers are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, including, but not limited to, adding property to, substituting property for or removing property from the Leased Assets identified in the Ground Lease and the Lease Agreement, and taking any and all actions, and executing and delivering any and all documents, in order to clear any title exceptions to the Leased Assets, including but not limited to entering into any subordination and non-disturbance agreement with any tenants of the Leased Assets. All actions heretofore taken by the officers and agents of the Authority with respect to the transactions set forth above are hereby approved, confirmed and ratified.
SECTION 10. The good faith estimates of costs related to the Bonds which are required by Section 5852.1 of the California Government Code are disclosed in Exhibit A hereto and are available to the public at the meeting at which this Resolution is approved.
SECTION 11. The Board hereby approves the execution and delivery of all agreements, documents, certificates and instruments referred to herein with electronic signatures as may be permitted under the California Uniform Electronic Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.
SECTION 12. Unless otherwise defined herein, all terms that are used herein and not otherwise defined shall have the meanings given to such terms in the Indenture unless the context otherwise clearly requires.
SECTION 13. This Resolution shall take effect from and after the date of its passage and adoption.
869
The Secretary of the Ontario Public Financing Authority shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this 15th day of April, 2025. _____________________________________
PAUL S. LEON, CHAIRMAN
ATTEST:
______________________________________
SHEILA MAUTZ, AUTHORITY SECRETARY
APPROVED AS TO FORM:
_______________________________________
AUTHORITY COUNSEL
870
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF ONTARIO )
I, SHEILA MAUTZ, Secretary of the Ontario Public Financing Authority, DO HEREBY CERTIFY that the foregoing Resolution No. OPFA- was duly passed and adopted by the Board Members of the Ontario Public Financing Authority at their regular meeting held April 15, 2025, by the following roll call vote, to wit:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
______________________________________
SHEILA MAUTZ, AUTHORITY SECRETARY
(SEAL)
The foregoing is the original of Resolution No. OPFA duly passed and adopted by the Ontario Public Financing Authority at their regular meeting held April 15, 2025 _____________________________________
SHEILA MAUTZ, AUTHORITY SECRETARY
(SEAL)
871
EXHIBIT A
GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the Authority by Urban Futures Incorporated (the Authority’s “Municipal Advisor”) in consultation with Samuel A. Ramirez & Co., Inc., the Underwriter of the Bonds.
Principal Amount. The Municipal Advisor has informed the Authority that, based on the Authority’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the Bonds to be sold is $250,000,000 (the “Estimated Principal Amount”), which excludes approximately $19,133,552 of net premium estimated to be generated based on current market conditions, which together total $251,898,552.
Premium is generated when, on a net aggregate basis for a single issuance of bonds, the price paid for the bonds is higher than the face value of such bonds.
True Interest Cost of the Bonds. The Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Bonds, is 4.37%.
Finance Charge of the Bonds . The Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the Bonds), is $1,897,443.
Amount of Proceeds to be Received . The Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the City for sale of the Bonds, less the finance charge of the Bonds, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Bonds, is $250,000,000.
Total Payment Amount . The Municipal Advisor has informed the Authority that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the City will make to pay debt service on the Bonds, plus the finance charge for the Bonds, as described above, not paid with the proceeds of the Bonds, calculated to the final maturity of the Bonds, is $460,413,884.
872
The foregoing estimates constitute good faith estimates only. The actual principal amount of the Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to: (a) the actual date of the sale of the Bonds being different than the date assumed for purposes of such estimates; (b) the actual principal amount of Bonds sold being different from the Estimated Principal Amount; (c) the actual amortization of the Bonds being different than the amortization assumed for purposes of such estimates; (d) the actual market interest rates at the time of sale of the Bonds being different than those estimated for purposes of such estimates; (e) other market conditions; or (f) alterations in the Authority’s financing plan, delays in the financing, additional legal work or a combination of such factors and additional finance charges, if any, attributable thereto. The actual date of sale of the Bonds and the actual principal amount of Bonds sold will be determined by the Authority based on the timing of the need for proceeds of the Bonds and other factors. The actual interest rates borne by the Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the Authority.
873
4925-9672-5276v3/022249-0062
RECORDING REQUESTED BY:
Ontario Public Financing Authority
AND WHEN RECORDED RETURN TO:
Stradling Yocca Carlson & Rauth LLP
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
Attention: Brian P. Forbath, Esq.
THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11921 OF THE CALIFORNIA REVENUE AND TAXATION CODE.
THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE.
GROUND LEASE
by and between
CITY OF ONTARIO
and
ONTARIO PUBLIC FINANCING AUTHORITY
Dated as of ______ 1, 2025
Relating to
$___________
ONTARIO PUBLIC FINANCING AUTHORITY
2025A LEASE REVENUE BONDS
874
4925-9672-5276v3/022249-0062
GROUND LEASE
THIS GROUND LEASE (this “Ground Lease”), executed and entered into as of ______ 1, 2025, is by and between the CITY OF ONTARIO (the “ City”), a municipal corporation and general law city duly organized and existing under and by virtue of the Constitution and laws of the State of California, as lessor, and the ONTARIO PUBLIC FINANCING AUTHORITY (the “ Authority”), a joint exercise of powers entity duly organized and existing under the laws of the State of California, as lessee.
RECITALS
A. The City and the Authority desire to finance a portion of the costs of the acquisition, construction and installation of various public improvements (collectively, the “Project”).
B. In order to finance the Project, the City will lease certain real property and the improvements located thereon (the “ Property”) to the Authority pursuant to this Ground Lease, and the City will sublease the Property back from the Authority pursuant to that certain Lease Agreement, dated as of the date hereof (the “Lease Agreement”).
C. The Property is more particularly described in Exhibit A hereto.
D. The City and the Authority have determined that it would be in the best interests of the City and the Authority to provide the funds necessary to finance the Project through the issuance by the Authority of bonds payable from the base rental payments (the “ Base Rental Payments”) to be made by the City under the Lease Agreement.
E. The City and the Authority have determined that it would be in the best interests of the City and the Authority to provide for the issuance of such bonds payable from the Base Rental Payments pursuant to that certain Indenture, dated as of the date hereof (the “Indenture”), by and among the Authority, the City and Zions Bancorporation, National Association , as trustee (the “Trustee”).
F. All rights to receive the Base Rental Payments have been assigned without recourse by the Authority to the Trustee pursuant to an Assignment Agreement, dated as of the date hereof (the “Assignment Agreement”).
G. All acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Ground Lease do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Ground Lease.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, the parties hereto agree as follows:
875
2 4925-9672-5276v3/022249-0062
ARTICLE I
DEFINITIONS
Except as otherwise defined herein, or unless the context clearly otherwise requires, words and phrases defined in Article I of the Lease Agreement shall have the same meaning in this Ground Lease.
ARTICLE II
LEASE OF THE PROPERTY; RENTAL
Section 2.01 Lease of Property . The City hereby leases to the Authority, and the Authority hereby leases from the City, for the benefit of the Owners of the Bonds, the Property, subject only to Permitted Encumbrances, to have and to hold for the term of this Ground Lease.
Section 2.02 Rental. The Authority shall pay to the City as and for rental of the Property hereunder, the sum of $1.00, the receipt of which is hereby acknowledged.
ARTICLE III
QUIET ENJOYMENT
The parties intend that the Property will be leased back to the City pursuant to the Lease Agreement for the term thereof. It is further intended that, to the extent provided herein and in the Lease Agreement, if an event of default occurs under the Lease Agreement, the Authority, or its assignee, will have the right, for the then remaining term of this Ground Lease to: (a) take possession of the Property; (b) if it deems it appropriate, cause an appraisal of the Property and a study of the then reasonable use thereof to be undertaken; and (c) relet the Property. Subject to any rights the City may have under the Lease Agreement (in the absence of an event of default) to possession and enjoyment of the Property, the City hereby covenants and agrees that it will not take any action to prevent the Authority from having quiet and peaceable possession and enjoyment of the Property during the term hereof and will, at the request of the Authority and at the City’s cost, to the extent that it may lawfully do so, join in any legal action in which the Authority asserts its right to such possession and enjoyment.
ARTICLE IV
SPECIAL COVENANTS AND PROVISIONS
Section 4.01 Waste. The Authority agrees that at all times that it is in possession of the Property, it will not commit, suffer or permit any waste on the Property, and that it will not willfully or knowingly use or permit the use of the Property for any illegal purpose or act.
Section 4.02 Further Assurances and Corrective Instruments . The City and the Authority agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property hereby 876
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leased or intended so to be or for carrying out the expressed intention of this Ground Lease, the Indenture and the Lease Agreement.
Section 4.03 Waiver of Personal Liability. All liabilities under this Ground Lease on the part of the Authority shall be solely liabilities of the Authority as a joint exercise of powers entity, and the City hereby releases each and every director, officer and employee of the Authority of and from any personal or individual liability under this Ground Lease. No director, officer or employee of the Authority shall at any time or under any circumstances be individually or personally liable under this Ground Lease to the City or to any other party whomsoever for anything done or omitted to be done by the Authority hereunder.
All liabilities under this Ground Lease on the part of the City shall be solely liabilities of the City as a public corporation, and the Authority hereby releases each and every member, officer and employee of the City of and from any personal or individual liability under this Ground Lease. No member, officer or employee of the City shall at any time or under any circumstances be individually or personally liable under this Ground Lease to the Authority or to any other party whomsoever for anything done or omitted to be done by the City hereunder.
Section 4.04 Taxes. The City covenants and agrees to pay any and all assessments of any kind or character and also all taxes, including possessory interest taxes, levied or assessed upon the Property.
Section 4.05 Right of Entry . The City reserves the right for any of its duly authorized representatives to enter upon the Property at any reasonable time to inspect the same.
Section 4.06 Representations of the City . The City represents and warrants to the Authority and the Trustee as follows:
(a) the City has the full power and authority to enter into, to execute and to deliver this Ground Lease, and to perform all of its duties and obligations hereunder, and has duly authorized the execution of this Ground Lease;
(b) except for Permitted Encumbrances, the Property is not subject to any dedication, easement, right of way, reservation in patent, covenant, condition, restriction, lien or encumbrance which would prohibit or materially interfere with the use of the Property for governmental purposes as contemplated by the City;
(c) all taxes, assessments or impositions of any kind with respect to the Property, except current taxes, have been paid in full; and
(d) the Property is necessary to the City in order for the City to perform its governmental functions.
Section 4.07 Representations of the Authority. The Authority represents and warrants to the City and the Trustee that the Authority has the full power and authority to enter into, to execute and to deliver this Ground Lease, and to perform all of its duties and obligations hereunder, and has duly authorized the execution and delivery of this Ground Lease. 877
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ARTICLE V
ASSIGNMENT, SUBLEASING, MORTGAGING AND SELLING
Section 5.01 Assignment and Subleasing . This Ground Lease may be sold or assigned and the Property subleased, as a whole or in part, by the Authority without the necessity of obtaining the consent of the City, if an event of default occurs under the Lease Agreement. The Authority shall, within thirty ( 30) days after such an assignment, sale or sublease, furnish or cause to be furnished to the City a true and correct copy of such assignment, sale or sublease, as the case may be.
Section 5.02 Restrictions on City. The City agrees that, except with respect to Permitted Encumbrances, it will not mortgage, sell, encumber, assign, transfer or convey the Property or any portion thereof during the term of this Ground Lease.
ARTICLE VI
TERM; TERMINATION
Section 6.01 Term. The term of this Ground Lease shall commence as of the date of commencement of the term of the Lease Agreement and shall remain in full force and effect from such date to and including November 1, 20__, upon which date it shall terminate, unless such term is extended or sooner terminated as hereinafter provided.
Section 6.02 Extension; Early Termination . If, on November 1, 20 __, the Bonds shall not be fully paid, or provision therefor made in accordance with Article X of the Indenture, or the Indenture shall not be discharged by its terms, or if the Rental Payments payable under the Lease Agreement shall have been abated at any time, then the term of this Ground Lease shall be automatically extended until the date upon which all Bonds shall be fully paid, or provision therefor made in accordance with Article X of the Indenture, and the Indenture shall be discharged by its terms, except that the term of this Ground Lease shall in no event be extended more than ten years.
If, prior to November 1, 20 __, all Bonds shall be fully paid, or provisions therefor made in accordance with Article X of the Indenture, and the Indenture shall be discharged by its terms, the term of this Ground Lease shall end simultaneously therewith.
ARTICLE VII
MISCELLANEOUS
Section 7.01 Binding Effect. This Ground Lease shall inure to the benefit of and shall be binding upon the City, the Authority and their respective successors and assigns.
Section 7.02 Severability. In the event that any provision of this Ground Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof.
Section 7.03 Amendments, Changes and Modifications . This Ground Lease may be amended, changed, modified, altered or terminated only in accordance with the provisions of the Lease Agreement.
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Section 7.04 Assignment to Trustee . The Authority and City acknowledge that the Authority has assigned its right, title and interest in and to this Ground Lease (but none of its obligations and none of its rights to provide consents or approvals hereunder) to the Trustee pursuant to certain provisions of the Assignment Agreement. The City consents to such assignment.
Section 7.05 Execution In Counterparts . This Ground Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.
Section 7.06 Applicable Law. This Ground Lease shall be governed by and construed in accordance with the laws of the State of California.
Section 7.07 Captions. The captions or headings in this Ground Lease are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Ground Lease.
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IN WITNESS WHEREOF, the Authority and the City have caused this Ground Lease to be executed by their respective officers hereunto duly authorized, all as of the day and year first above written.
CITY OF ONTARIO
By:
Scott Ochoa
City Manager
ATTEST:
Sheila Mautz
City Clerk
ONTARIO PUBLIC FINANCING AUTHORITY
By:
Scott Ochoa
Executive Director
ATTEST:
Sheila Mautz
Secretary
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CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in the Property conveyed under the foregoing to the Ontario Public Financing Authority, a joint exercise of powers agency duly organized and existing under and by virtue of the Constitution and the laws of the State of California, is hereby accepted by the undersigned officer or agent on behalf of the Board of Directors of the Ontario Public Financing Authority, pursuant to authority conferred by resolutions of the Board of Directors adopted on ______, 2025, and the grantee consents to recordation thereof by its duly authorized officer.
Dated: ______, 2025 ONTARIO PUBLIC FINANCING AUTHORITY By:
Scott Ochoa
Executive Director
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ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On ___________________ before me, ____________________________________, Notary Public, personally appeared _____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal
SIGNATURE OF NOTARY PUBLIC
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ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On ___________________ before me, ____________________________________, Notary Public, personally appeared _____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal
SIGNATURE OF NOTARY PUBLIC
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EXHIBIT A
DESCRIPTION OF THE PROPERTY
• Ovitt Family Community Library
• Municipal Services Corporation Yard
• Creekside Park
• Kimball Community Park
• Bon View Park
• Homer F. Briggs Memorial Park
• Anthony Munoz Hall of Fame Park
• De Anza Park
• Westwind Park
• John Galvin Park
• Ontario Motor Speedway Park
• Celebration Park (North and South)
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LEASE AGREEMENT
by and between
CITY OF ONTARIO
and
ONTARIO PUBLIC FINANCING AUTHORITY
Dated as of ______ 1, 2025
Relating to
$_____________
ONTARIO PUBLIC FINANCING AUTHORITY
2025A LEASE REVENUE BONDS
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TABLE OF CONTENTS
Page
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ARTICLE I
DEFINITIONS
Section 1.01 Definitions ................................................................................................................. 2
ARTICLE II
LEASE OF PROPERTY; TERM
Section 2.01 Lease of Property ....................................................................................................... 4 Section 2.02 Term; Occupancy ....................................................................................................... 4
ARTICLE III
RENTAL PAYMENTS
Section 3.01 Base Rental Payments ................................................................................................ 4 Section 3.02 Additional Rental Payments ...................................................................................... 5 Section 3.03 Fair Rental Value ....................................................................................................... 5 Section 3.04 Payment Provisions .................................................................................................... 6 Section 3.05 Appropriations Covenant ........................................................................................... 6 Section 3.06 Rental Abatement ...................................................................................................... 6
ARTICLE IV
MAINTENANCE, ALTERATIONS AND ADDITIONS
Section 4.01 Maintenance and Utilities .......................................................................................... 7 Section 4.02 Additions to Property ................................................................................................. 7 Section 4.03 Installation of City’s Equipment ................................................................................ 7
ARTICLE V
INSURANCE
Section 5.01 Commercial General Liability and Property Damage Insurance; Workers’ Compensation Insurance ............................................................................................ 7 Section 5.02 Title Insurance ........................................................................................................... 8 Section 5.03 Additional Insurance Provision; Form of Policies ..................................................... 9 Section 5.04 Self-Insurance ............................................................................................................ 9
ARTICLE VI
DEFAULTS AND REMEDIES
Section 6.01 Defaults and Remedies .............................................................................................. 9 Section 6.02 Waiver ...................................................................................................................... 12
ARTICLE VII
EMINENT DOMAIN; PREPAYMENT
Section 7.01 Eminent Domain ...................................................................................................... 13 Section 7.02 Prepayment .............................................................................................................. 13 886
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ARTICLE VIII
COVENANTS
Section 8.01 Right of Entry .......................................................................................................... 14 Section 8.02 Liens......................................................................................................................... 14 Section 8.03 Quiet Enjoyment ...................................................................................................... 14 Section 8.04 Authority Not Liable ................................................................................................ 14 Section 8.05 Assignment and Subleasing ..................................................................................... 15 Section 8.06 Title to Property ....................................................................................................... 15 Section 8.07 Authority’s Purpose ................................................................................................. 16 Section 8.08 Representations of the City ...................................................................................... 16 Section 8.09 Representation of the Authority ............................................................................... 16
ARTICLE IX
NO CONSEQUENTIAL DAMAGES; USE OF THE PROPERTY; SUBSTITUTION OR
RELEASE
Section 9.01 No Consequential Damages ..................................................................................... 16 Section 9.02 Use of the Property .................................................................................................. 16 Section 9.03 Substitution or Release of, or Addition to, the Property .......................................... 16
ARTICLE X
MISCELLANEOUS
Section 10.01 Law Governing ........................................................................................................ 17 Section 10.02 Notices ..................................................................................................................... 17 Section 10.03 Validity and Severability ......................................................................................... 18 Section 10.04 Net-Net-Net Lease ................................................................................................... 18 Section 10.05 Taxes ........................................................................................................................ 18 Section 10.06 Section Headings ..................................................................................................... 18 Section 10.07 Amendments ............................................................................................................ 18 Section 10.08 Assignment .............................................................................................................. 19 Section 10.09 Execution ................................................................................................................. 19
Signatures ............................................................................................................................... S-1
EXHIBIT A DESCRIPTION OF THE PROPERTY .................................................................... A-1 EXHIBIT B BASE RENTAL PAYMENT SCHEDULE ............................................................. B-1
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LEASE AGREEMENT
THIS LEASE AGREEMENT (this “Lease Agreement”) executed and entered into as of ______ 1, 2025 , is by and between the CITY OF ONTARIO (the “ City”), a municipal corporation and general law city duly organized and existing under and by virtue of the Constitution and laws of the State of California, as lessee, and the ONTARIO PUBLIC FINANCING AUTHORITY (the “Authority”), a joint exercise of powers entity duly organized and existing under and by virtue of the laws of the State of California, as lessor.
RECITALS
A. The City and the Authority desire to finance a portion of the costs of the acquisition, construction and installation of various public improvements (collectively, the “Project”).
B. In order to finance the Project, the City will lease certain real property and the improvements located thereon (the “ Property”) to the Authority pursuant to a Ground Lease, dated as of the date hereof, and the City will sublease the Property back from the Authority pursuant to this Lease Agreement.
C. The City and the Authority have determined that it would be in the best interests of the City and the Authority to provide the funds necessary to finance the Project through the issuance by the Authority of bonds payable from the base rental payments (the “ Base Rental Payments”) to be made by the City under this Lease Agreement.
D. The City and the Authority have determined that it would be in the best interests of the City and the Authority to provide for the issuance of such bonds payable from the Base Rental Payments pursuant to that certain Indenture, dated as of the date hereof (the “Indenture”), by and among the Authority, the City and Zions Bancorporation, National Association, as trustee (the “Trustee”).
E. All rights to receive the Base Rental Payments have been assigned without recourse by the Authority to the Trustee pursuant to that certain Assignment Agreement, dated as of the date hereof (the “Assignment Agreement”), by and between the Authority and the Trustee.
F. All acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Lease Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Lease Agreement.
NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, the parties hereto agree as follows:
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ARTICLE I
DEFINITIONS
Section 1.01 Definitions. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Lease Agreement, have the meanings herein specified, which meanings shall be equally applicable to both the singular and plural forms of any of the terms herein defined. Capitalized terms that are not otherwise defined herein shall have the meanings assigned to such terms in the Indenture.
“Additional Bonds ” means bonds other than the Series 2025A Bond s issued under the Indenture in accordance with the provisions thereof.
“Additional Rental Payments” means all amounts payable by the City as Additional Rental Payments pursuant to Section 3.02 hereof.
“Authority” means the Ontario Public Financing Authority, a joint exercise of powers authority organized and existing under the laws of the State of California. “Base Rental Deposit Date” means the fifth (5th) Business Day next preceding each Interest Payment Date.
“Base Rental Payments” means all amounts payable to the Authority from the City as Base Rental Payments pursuant to Section 3.01 hereof.
“Base Rental Payment Schedule ” means the schedule of Base Rental Payments payable to the Authority from the City pursuant to Section 3.01 hereof and attached hereto as Exhibit B. “Bonds” means the Series 2025A Bonds and any Additional Bonds. “City” means the City of Ontario, a municipal corporation and general law city duly organized and existing under and by virtue of the Constitution and laws of the State of California. “Delivery Date” means ______, 2025.
“Ground Lease” means the Ground Lease, dated as of the date hereof, by and between the City and the Authority, as originally executed and as it may from time to time be amended in accordance with to the provisions thereof and hereof.
“Indenture” means the Indenture, dated as of the date hereof, by and among the Authority, the City and the Trustee, as originally executed and as it may from time to time be amended or supplemented in accordance with the provisions thereof. “Joint Powers Agreement” means the Joint Exercise of Powers Agreement, dated as of June 1, 2013, by and between the City and the Ontario Housing Authority, as originally executed and as it may from time to time be amended in accordance with the provisions thereof. “Lease Agreement” means this Lease Agreement, as originally executed and as it may from time to time be amended in accordance with the provisions hereof. 889
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“Net Insurance Proceeds” means any insurance proceeds or condemnation award in excess of $50,000, paid with respect to any of the Property, remaining after payment therefrom of all reasonable expenses incurred in the collection thereof. “Permitted Encumbrances” means, with respect to the Property, as of any particular time:
(a) liens for general ad valorem taxes and assessments, if any, not then delinquent, or which the City may, pursuant to provisions of Article V hereof, permit to remain unpaid; (b) the Assignment Agreement; (c) this Lease Agreement; (d) the Ground Lease; (e) any right or claim of any mechanic, laborer, materialman, supplier or vendor not filed or perfected in the manner prescribed by law as normally exist with respect to properties similar to the Property for the purposes for which it was acquired or is held by the City; (f) easements, rights of way, mineral rights, drilling rights and other rights (including but not limited to rights in cellular telephone network infrastructure on the Property), reservations, covenants, conditions or restrictions which exist of record as of the Delivery Date which the City certifies in writing will not affect the intended use of the Property or impair the security granted to the Trustee for the benefit of the Owners of the Bonds by the Indenture and the Assignment Agreement and to which the Authority and the City consent in writing; and (g) easements, rights of way, mineral rights, drilling rights and other rights, reservations, covenants, conditions or restrictions established following the Delivery Date which the City certifies in writing do not affect the intended use of the Property or impair the security granted to the Trustee for the benefit of the Owners of the Bonds by the Indenture and the Assignment Agreement and to which the Authority and the City consent in writing. [To be updated based on final Leased Assets for cell tower Leases, etc.]
“Property” means the real property described in Exhibit A hereto and the improvements located thereon.
“Rental Payments ” means, collectively, the Base Rental Payments and the Additional Rental Payments.
“Rental Period” means the twelve -month period commencing on November 1 of each year during the term of the Lease Agreement; provided that the first Rental Period shall be the period from the Delivery Date through October 31, 2025.
“Series 2025A Bonds” means the Ontario Public Financing Authority 2025A Lease Revenue Bonds issued under the Indenture.
“Termination Date ” means November 1, 20 __, unless extended or sooner terminated as provided in Section 2.02 hereof.
“Trustee” means the trustee appointed under the Indenture and referred to therein as the Trustee.
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ARTICLE II
LEASE OF PROPERTY; TERM
Section 2.01 Lease of Property.
(a) The Authority hereby leases to the City and the City hereby leases from the Authority the Property, and all rights appurtenant thereto, including but not limited to, rights of access, on the terms and conditions hereinafter set forth, subject to all Permitted Encumbrances. (b) The leasing of the Property by the City to the Authority pursuant to the Ground Lease shall not effect or result in a merger of the City’s leasehold estate pursuant to this Lease Agreement and the City’s fee estate as lessor under the Ground Lease, and the Authority shall continue to have a leasehold estate in the Property pursuant to the Ground Lease throughout the term thereof and hereof. The leasehold interest granted by the City to the Authority pursuant to the Ground Lease is and shall be independent of this Lease Agreement; this Lease Agreement shall not be an assignment or surrender of the leasehold interest granted to the Authority under the Ground Lease.
Section 2.02 Term; Occupancy. The term of this Lease Agreement shall commence on the Delivery Date and shall end on the Termination Date, unless such term is extended or sooner terminated as hereinafter provided. If , on the Termination Date, the Bonds shall not be fully paid or provision therefor made in accordance with Article X of the Indenture, or the Indenture shall not be discharged by its terms, or if the Rental Payments shall remain due and payable or shall have been abated at any time and for any reason , then the term of this Lease Agreement shall be extended until the date upon which: (a) all Bonds shall be fully paid, or provision therefor made in accordance with Article X of the Indenture; or (b) the Indenture shall be discharged by its terms. Notwithstanding the foregoing, the term of this Lease Agreement shall in no event be extended more than ten years beyond such Termination Date, such extended date being the “ Maximum Lease Term.” If, prior to the Termination Date, all Bonds shall be fully paid or provision therefor made in accordance with Article X of the Indenture, the Indenture shall be discharged by its terms and all Rental Payments shall have been paid in full, and the term of this Lease Agreement shall end simultaneously therewith.
ARTICLE III
RENTAL PAYMENTS
Section 3.01 Base Rental Payments.
(a) Subject to the provisions hereof relating to a revision of the Base Rental Payment Schedule pursuant to subsection (b) of this Section, the City shall pay to the Authority, as Base Rental Payments (subject to the provisions of Section 3.06 and Article VII hereof) the amounts at the times specified in the Base Rental Payment Schedule, a portion of which Base Rental Payments shall constitute principal, and a portion of which shall constitute interest. Rental Payments, including Base Rental Payments, shall be paid by the City to the Authority for and in consideration of the right to use and occupy the Property and in consideration of the continued right to the quiet use and enjoyment thereof during each Rental Period for which such Rental Payments are to be paid.
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The obligation of the City to make the Base Rental Payments does not constitute a debt of the City or of the State of California, or of any political subdivision thereof within the meaning of any constitutional or statutory debt limit or restriction, and does not constitute an obligation for which the City or the State of California is obligated to levy or pledge any form of taxation or for which the City or the State of California has levied or pledged any form of taxation. (b) If the term of this Lease Agreement shall have been extended pursuant to Section 2.02 hereof, the obligation of the City to pay Rental Payments shall continue to and including the Base Rental Deposit Date preceding the date of termination of this Lease Agreement (as so extended pursuant to Section 2.02 hereof). Upon such extension, the Base Rental Payments shall be established so that they will be sufficient to pay all extended and unpaid Base Rental Payments; provided, however, that the Rental Payments payable in any Rental Period subsequent to such extension shall not exceed the annual fair rental value of the Property.
Section 3.02 Additional Rental Payments. The City shall also pay, as Additional Rental Payments, such amounts as shall be required for the payment of the following:
(a) all taxes and assessments of any type or nature charged to the Authority or the City or affecting the Property or the respective interests or estates of the Authority or the City therein;
(b) all reasonable administrative costs of the Authority relating to the Property including, but without limiting the generality of the foregoing, salaries, wages, fees and expenses, compensation and indemnification of the Trustee payable by the Authority under the Indenture, fees of auditors, accountants, attorneys or engineers, and all other necessary and reasonable administrative costs of the Authority or charges required to be paid by it in order to maintain its existence or to comply with the terms of the Indenture or the Lease Agreement or to defend the Authority and its members, officers, agents and employees;
(c) insurance premiums for all insurance required pursuant to Article V hereof; (d) any amounts with respect to the Lease Agreement or the Bonds required to be rebated to the federal government in accordance with Section 148(f) of the Code; and (e) all other payments required to be paid by the City under the provisions of this Lease Agreement or the Indenture.
Amounts constituting Additional Rental Payments payable hereunder shall be paid by the City directly to the person or persons to whom such amounts shall be payable. The City shall pay all such amounts when due or at such later time as such amounts may be paid without penalty or, in any other case, within 60 days after notice in writing from the Trustee to the City stating the amount of Additional Rental Payments then due and payable and the purpose thereof.
Section 3.03 Fair Rental Value . The parties hereto have agreed and determined that the annual fair rental value of the Property is not less than the maximum annual Rental Payments due in any year. In making such determination of fair rental value, consideration has been given to the uses and purposes that may be served by the Property and the benefits therefrom which will accrue to the City and the general public. Payments of the Rental Payments for the Property during each Rental Period shall constitute the total rental for said Rental Period. 892
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Section 3.04 Payment Provisions . Each installment of Base Rental Payments payable hereunder shall be paid in lawful money of the United States of America to or upon the order of the Authority at the principal office of the Trustee in Los Angeles, California, or such other place or entity as the Authority or Trustee shall designate. Each Base Rental Payment shall be deposited with the Trustee no later than the Base Rental Deposit Date preceding the Interest Payment Date on which such Base Rental Payment is due. Any Base Rental Payment which shall not be paid by the City when due and payable under the terms of this Lease Agreement shall bear interest from the date when the same is due hereunder until the same shall be paid at the rate equal to the highest rate of interest on any of the Outstanding Bonds. Notwithstanding any dispute between the Authority and the City, the City shall make all Rental Payments when due without deduction or offset of any kind and shall not withhold any Rental Payments pending the final resolution of such dispute. In the event of a determination that the City was not liable for said Rental Payments or any portion thereof, said payments or excess of payments, as the case may be, shall be credited against subsequent Rental Payments due hereunder or refunded at the time of such determination. Amounts required to be deposited by the City with the Trustee pursuant to this Section on any date shall be reduced to the extent of available amounts on deposit in the Base Rental Payment Fund, the Interest Fund or the Principal Fund.
Section 3.05 Appropriations Covenant. The City covenants to take such action as may be necessary to include all Rental Payments due hereunder as a separate line item in its annual budgets and to make necessary annual appropriations for all such Rental Payments. The covenants on the part of the City herein contained shall be deemed to be and shall be construed to be duties imposed by law and it shall be the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this Lease Agreement agreed to be carried out and performed by the City.
Section 3.06 Rental Abatement . Except as otherwise specifically provided in this Section, during any period in which, by reason of material damage to, or destruction or condemnation of, the Property, or any defect in title to the Property, there is substantial interference with the City’s right to use and occupy any portion of the Property, Rental Payments shall be abated proportionately, and the City waives the benefits of Civil Code Sections 1932(1), 1932(2) and 1933(4) and any and all other rights to terminate the Lease Agreement by virtue of any such interference, and the Lease Agreement shall continue in full force and effect. The amount of such abatement shall be agreed upon by the City and the Authority; provided, however, that the Rental Payments due for any Rental Period shall not exceed the annual fair rental value of that portion of the Property available for use and occupancy by the City during such Rental Period. The City and the Authority shall calculate such abatement and shall provide the Trustee with a certificate setting forth such calculation and the basis therefor. Such abatement shall continue for the period commencing with the date of interference resulting from such damage, destruction, condemnation or title defect and, with respect to damage to or destruction of the Property, ending when such use an occupancy are restored ; and the term of this Lease Agreement shall be extended as provided in Section 2.02 hereof, except that the term shall in no event be extended beyond the Maximum Lease Term.
Notwithstanding the foregoing, to the extent that moneys are available for the payment of Rental Payments in any of the funds and accounts established under the Indenture, Rental Payments shall not be abated as provided above but, rather, shall be payable by the City as a special obligation payable solely from said funds and accounts.
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ARTICLE IV
MAINTENANCE, ALTERATIONS AND ADDITIONS
Section 4.01 Maintenance and Utilities . Throughout the term of this Lease Agreement, as part of the consideration for rental of the Property, all improvement, repair and maintenance of the Property shall be the responsibility of the City, and the City shall pay for or otherwise arrange for the payment of all utility services supplied to the Property, which may include, without limitation, janitor service, security, power gas, telephone, light, heating, ventilation, air conditioning, water and all other utility services, and shall pay for or otherwise arrange for payment of the cost of the repair and replacement of the Property resulting from ordinary wear and tear or want of care on the part of the City or any assignee or sublessee thereof. In exchange for the Rental Payments, the Authority agrees to provide only the Property.
Section 4.02 Additions to Property . Subject to Section 8.02 hereof, the City and any sublessee shall, at its own expense, have the right to make additions, modifications and improvements to the Property. To the extent that the removal of such additions, modifications or improvements would not cause material damage to the Property so as to cause an abatement of Lease Agreements, pursuant to Section 3.06 hereof , such additions, modifications and improvements shall remain the sole property of the City or such sublessee, and neither the Authority nor the Trustee shall have any interest therein. Such additions, modifications and improvements shall not in any way damage the Property or cause it to be used for purposes other than those authorized under the provisions of state and federal law; and the Property, upon completion of any additions, modifications and improvements made pursuant to this Section, shall be of a value which is at least equal to the value of the Property immediately prior to the making of such additions, modifications and improvements.
Section 4.03 Installation of City’s Equipment . The City and any sublessee may at any time and from time to time, in its sole discretion and at its own expense, install or permit to be installed items of equipment or other personal property in or upon the Property. All such items shall remain the sole property of the City or such sublessee, and neither the Authority nor the Trustee shall have any interest therein. The City or such sublessee may remove or modify such equipment or other personal property at any time, provided that such party shall repair and restore any and all damage to the Property resulting from the installation, modification or removal of any such items. Nothing in this Lease Agreement shall prevent the City or any sublessee from purchasing items to be installed pursuant to this Section under a conditional sale or lease purchase contract, or subject to a vendor’s lien or security agreement as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest shall attach to any part of the Property.
ARTICLE V
INSURANCE
Section 5.01 Commercial General Liability and Property Damage Insurance; Workers’ Compensation Insurance.
(a) The City shall maintain or cause to be maintained, throughout the term of this Lease Agreement, a standard commercial general liability insurance policy or policies in protection of the City, the Authority and their respective members, officers, agents and employees. Said policy 894
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or policies shall provide for indemnification of said parties against direct or contingent loss or liability for damages for bodily and personal injury, death or property damage occasioned by reason of the use or ownership of the Property. Said policy or policies shall provide coverage in the minimum liability limits of $1,000,000 for personal injury or death of each person and $3,000,000 for personal injury or deaths of two or more persons in a single accident or event, and in a minimum amount of $500,000 for damage to property (subject to a deductible clause of not to exceed $100,000) resulting from a single accident or event. Such commercial general liability and property damage insurance may, however, be in the form of a single limit policy in the amount of $3,000,000 covering all such risks. Such liability insurance may be maintained as part of or in conjunction with any other liability insurance coverage carried or required to be carried by the City, and may be maintained in whole or in part in the form of self -insurance by the City, provided that such self-insurance complies with the provisions of Section 5.04 hereof. The Net Insurance Proceeds of such liability insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which the Net Insurance Proceeds of such insurance shall have been paid. (b) The City shall maintain or cause to be maintained, throughout the term of this Lease Agreement, workers’ compensation insurance issued by a responsible carrier authorized under the laws of the State of California to insure employers against liability for compensation under the California Labor Code, or any act enacted as an amendment or supplement thereto or in lieu thereof, such workers’ compensation insurance to cover all persons employed by the City in connection with the Property and to cover full liability for compensation under any such act; provided, however, that the City’s obligations under this subsection may be satisfied by self -insurance, provided that such self-insurance complies with the provisions of Section 5.04 hereof. (c) The City shall maintain or cause to be maintained, fire, lightning and special extended coverage insurance (which shall include coverage for vandalism and malicious mischief, but need not include coverage for earthquake damage) on all improvements constituting any part of the Property in an amount equal to the greater of 100% of the replacement cost of such improvements or 100% of the outstanding principal amount of the Bonds. The City has an insurance policy which provides replacement cost coverage. All insurance required to be maintained pursuant to this subsection may be subject to a deductible in an amount not to exceed $500,000. The City’s obligations under this subsection may be satisfied by self -insurance, provided that such self-insurance complies with the provisions of Section 5.04 hereof. (d) The City shall maintain rental interruption insurance to cover the Authority’s loss, total or partial, of Base Rental Payments resulting from the loss, total or partial, of the use of any part of the Property as a result of any of the hazards required to be covered pursuant to subsection (c) of this Section in an amount sufficient at all times to pay an amount not less than the product of two times the maximum amount of Base Rental Payments scheduled to be paid during any Rental Period. The City shall not be permitted to self-insure its obligation under this subsection. (e) The insurance required by this Section shall be provided by reputable insurance companies with claims paying abilities determined, in the reasonable opinion of a professionally certified risk manager or an independent insurance consultant, to be adequate for the purposes hereof.
Section 5.02 Title Insurance . The City shall provide, at its own expense, one or more CLTA or ALTA title insurance policies for the Property, in the aggregate amount of not less than the initial aggregate principal amount of the Bonds. Such policy or policies shall insure: (a) the fee 895
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interest of the City in the Property; (b) the Authority’s ground leasehold estate in the Property under the Ground Lease; and (c) the City’s leasehold estate hereunder in the Property, subject only to Permitted Encumbrances. All Net Insurance Proceeds received under said policy or policies shall be deposited with the Trustee and applied as provided in Section 5.04 of the Indenture. So long as any of the Bonds remain Outstanding, each policy of title insurance obtained pursuant to the Indenture or this Lease Agreement or required thereby or hereby shall provide that all proceeds thereunder shall be payable to the Trustee for the benefit of the Bond Owners.
Section 5.03 Additional Insurance Provision; Form of Policies . The City shall pay or cause to be paid when due the premiums for all insurance policies required by Section 5.01 hereof.
All such policies shall provide that the Trustee shall be given 30 days’ notice of the expiration thereof or any intended cancellation thereof. The Trustee shall be fully protected in accepting payment on account of such insurance or any adjustment, compromise or settlement of any loss agreed to by the Trustee.
The City shall cause to be delivered to the Trustee on or before September 10 each year, commencing September 10, 20 26, a Certificate of the City stating that such policies are in full force and effect and that the City is in full compliance with the requirements of this Article. The Trustee shall be entitled to rely upon said Certificate of the City as to the City’s compliance with this Article.
The Trustee shall not be responsible for the sufficiency of coverage or amounts of such policies.
Section 5.04 Self-Insurance. Insurance provided through a California joint powers authority of which the City is a member or with which the City contracts for insurance shall be deemed to be self-insurance for purposes hereof. Any self-insurance maintained by the City pursuant to this Article shall comply with the following terms:
(a) the self-insurance program and any self -insured retentions maintained by the City shall be approved in writing by a professionally certified risk manager or by an independent insurance consultant (who may be an employee of the City); (b) the self-insurance program shall include an actuarially sound claims reserve fund out of which each self -insured claim shall be paid, the adequacy of each such fund shall be evaluated on an annual basis by a professionally certified risk manager or by an independent insurance consultant (who may be an employee of the City) and any deficiencies in any self -insured claims reserve fund shall be remedied in accordance with the recommendation of a professionally certified risk manager or such independent insurance consultant, as applicable; and (c) in the event that the self -insurance program shall be discontinued, the actuarial soundness of its claims reserve fund, as determined by a professionally certified risk manager or by an independent insurance consultant, shall be maintained.
ARTICLE VI
DEFAULTS AND REMEDIES
Section 6.01 Defaults and Remedies.
(a) (i) If the City shall fail: (A) to pay any Rental Payment payable hereunder when the same becomes due and payable, time being expressly declared to be of the essence in this 896
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Lease Agreement; or (B) to keep, observe or perform any other material term, covenant or condition contained herein or in the Indenture to be kept or performed by the City; or (ii) upon the happening of any of the events specified in this subsection or in subsection (b) of this Section, the City shall be deemed to be in default hereunder and it shall be lawful for the Authority to exercise any and all remedies available pursuant to law or granted pursuant to this Lease Agreement. The City shall in no event be in default in the observance or performance of any covenant, condition or agreement in this Lease Agreement on its part to be observed or performed, other than as referred to in clause (i)(A) or (ii) of the preceding sentence, unless the City shall have failed, for a period of thirty (30) days or such additional time as is reasonably required, to correct any such default after notice by the Authority to the City properly specifying wherein the City has failed to perform any such covenant, condition or agreement. Upon any such default, the Authority, in addition to all other rights and remedies it may have at law, shall have the option to do any of the following:
(1) To terminate this Lease Agreement in the manner hereinafter provided on account of default by the City, notwithstanding any re -entry or re-letting of the Property as hereinafter provided for in subparagraph (2) hereof, and to re -enter the Property and remove all persons in possession thereof and all personal property whatsoever situated upon the Property and place such personal property in storage in any warehouse or other suitable place, for the account of and at the expense of the City. In the event of such termination, the City agrees to surrender immediately possession of the Property, without let or hindrance, and to pay the Authority all damages recoverable at law that the Authority may incur by reason of default by the City, including, without limitation, any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re -entry upon the Property and removal and storage of such property by the Authority or its duly authorized agents in accordance with the provisions herein contained. Neither notice to pay Rental Payments or to deliver up possession of the Property given pursuant to law nor any entry or re-entry by the Authority nor any proceeding in unlawful detainer, or otherwise, brought by the Authority for the purpose of effecting such re -entry or obtaining possession of the Property nor the appointment of a receiver upon initiative of the Authority to protect the Authority’s interest under this Lease Agreement shall of itself operate to terminate this Lease Agreement, and no termination of this Lease Agreement on account of default by the City shall be or become effective by operation of law or acts of the parties hereto, or otherwise, unless and until the Authority shall have given written notice to the City of the election on the part of the Authority to terminate this Lease Agreement. The City covenants and agrees that no surrender of the Property or of the remainder of the term hereof or any termination of this Lease Agreement shall be valid in any manner or for any purpose whatsoever unless stated by the Authority by such written notice. (2) Without terminating this Lease Agreement: (x) to collect each installment of Rental Payments as the same become due and enforce any other terms or provisions hereof to be kept or performed by the City, regardless of whether or not the City has abandoned the Property; or (y) to exercise any and all rights of entry and re -entry upon the Property. In the event that the Authority does not elect to terminate this Lease Agreement in the manner provided for in subparagraph (1) hereof, the City shall remain liable and agrees to keep or perform all covenants and conditions herein contained to be kept or performed by the City and, if the Property is not re -let, to pay the full amount of the Rental Payments to the end of the term of this Lease Agreement or, in the event that the Property is re -let, to pay any deficiency in Rental Payments that results therefrom; and further agrees to pay said Rental Payments and/or Rental Payment deficiency punctually at the same time and in the same manner as hereinabove provided for the payment of Rental Payments hereunder, notwithstanding the fact that the Authority may have received in previous years or may receive thereafter in subsequent years Rental Payments in excess of the Rental Payments herein 897
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specified, and notwithstanding any entry or re -entry by the Authority or suit in unlawful detainer, or otherwise, brought by the Authority for the purpose of effecting such re-entry or obtaining possession of the Property. Should the Authority elect to re -enter as herein provided, the City hereby irrevocably appoints the Authority as the agent and attorney-in-fact of the City to re -let the Property, or any part thereof, from time to time, either in the Authority’s name or otherwise, upon such terms and conditions and for such use and period as the Authority may deem advisable and to remove all persons in possession thereof and all personal property whatsoever situated upon the Property and to place such personal property in storage in any warehouse or other suitable place, for the account of and at the expense of the City, and the City hereby indemnifies and agrees to save harmless the Authority from any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re-entry upon and re-letting of the Property and removal and storage of such property by the Authority or its duly authorized agents in accordance with the provisions herein contained. The City agrees that the terms of this Lease Agreement constitute full and sufficient notice of the right of the Authority to re -let the Property in the event of such re -entry without effecting a surrender of this Lease Agreement, and further agrees that no acts of the Authority in effecting such re -letting shall constitute a surrender or termination of this Lease Agreement irrespective of the use or the term for which such re-letting is made or the terms and conditions of such re-letting, or otherwise, but that, on the contrary, in the event of such default by the City the right to terminate this Lease Agreement shall vest in the Authority to be effected in the sole and exclusive manner provided for in subparagraph (1) hereof. The City further agrees to pay the Authority the cost of any alterations or additions to the Property necessary to place the Property in condition for re -letting immediately upon notice to the City of the completion and installation of such additions or alterations.
The City hereby waives any and all claims for damages caused or which may be caused by the Authority in re-entering and taking possession of the Property as herein provided and all claims for damages that may result from the destruction of or injury to the Property and all claims for damages to or loss of any property belonging to the City, or any other person, that may be in or upon the Property.
(b) If: (i) the City’s interest in this Lease Agreement or any part thereof is assigned or transferred, either voluntarily or by operation of law or otherwise, without the written consent of the Authority and, as hereinafter provided for; or (ii) the City or any assignee shall file any petition or institute any proceeding under any act or acts, state or federal, dealing with or relating to the subject or subjects of bankruptcy or insolvency, or under any amendment of such act or acts, either as a bankrupt or as an insolvent, or as a debtor, or in any similar capacity, wherein or whereby the City asks or seeks or prays to be adjudicated a bankrupt, or is to be discharged from any or all of the City’s debts or obligations, or offers to the City’s creditors to elect a composition or extension of time to pay the City’s debts or asks, seeks or prays for reorganization or to effect a plan of reorganization, or for a readjustment of the City’s debts, or for any other similar relief, or if any such petition or any such proceedings of the same or similar kind or character be filed or be instituted or taken against the City, or if a receiver of the business or of the property or assets of the City shall be appointed by any court, except a receiver appointed at the instance or request of the Authority, or if the City shall make a general assignment for the benefit of the City’s creditors; or (iii) the City shall abandon or vacate the Property, then the City shall be deemed to be in default hereunder. (c) In addition to the other remedies set forth in this Section, upon the occurrence of an event of default, the Authority and its assignee shall be entitled to proceed to protect and enforce the rights vested in the Authority and its assignee by the Lease Agreement or by law. The provisions of the Lease Agreement and the duties of the City and of its city council, officers or 898
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employees shall be enforceable by the Authority or its assignee by mandamus or other appropriate suit, action or proceeding in any court of competent jurisdiction. Without limiting the generality of the foregoing, the Authority and its assignee shall have the right to bring the following actions:
(i) Accounting. By action or suit in equity to require the City and its city council, officers and employees and its assigns to account as the trustee of an express trust. (ii) Injunction. By action or suit in equity to enjoin any acts or things which may be unlawful or in violation of the rights of the Authority or its assignee. (iii) Mandamus. By mandamus or other suit, action or proceeding at law or in equity to enforce the Authority’s or its assignee’s rights against the City (and its city council, officers and employees) and to compel the City to perform and carry out its duties and obligations under the law and its covenants and agreements with the City as provided herein.
Each and all of the remedies given to the Authority hereunder or by any law now or hereafter enacted are cumulative and the single or partial exercise of any right, power or privilege hereunder shall not impair the right of the Authority to the further exercise thereof or the exercise of any or all other rights, powers or privileges. The term “re -let” or “re -letting” as used in this Section shall include, but not be limited to, re -letting by means of the operation by the Authority of the Property.
If any statute or rule of law validly shall limit the remedies given to the Authority hereunder, the Authority nevertheless shall be entitled to whatever remedies are allowable under any statute or rule of law.
In the event that the Authority shall prevail in any action brought to enforce any of the terms and provisions of this Lease Agreement, the City agrees to pay a reasonable amount as and for attorney’s fees incurred by the Authority in attempting to enforce any of the remedies available to the Authority hereunder.
Notwithstanding anything to the contrary contained in this Lease Agreement, the Authority shall have no right upon a default hereunder by the City to accelerate Rental Payments. (d) Notwithstanding anything to the contrary contained in this Lease Agreement, the termination of this Lease Agreement by the Authority and its assignees on account of a default by the City under this Section shall not effect or result in a termination of the Ground Lease.
Section 6.02 Waiver. Failure of the Authority to take advantage of any default on the part of the City shall not be, or be construed as, a waiver thereof, nor shall any custom or practice which may grow up between the parties in the course of administering this instrument be construed to waive or to lessen the right of the Authority to insist upon performance by the City of any term, covenant or condition hereof, or to exercise any rights given the Authority on account of such default. A waiver of a particular default shall not be deemed to be a waiver of any other default or of the same default subsequently occurring. The acceptance of Rental Payments hereunder shall not be, or be construed to be, a waiver of any term, covenant or condition of this Lease Agreement. 899
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ARTICLE VII
EMINENT DOMAIN; PREPAYMENT
Section 7.01 Eminent Domain . If all of the Property (or portions thereof such that the remainder is not usable for public purposes by the City) shall be taken under the power of eminent domain, the term hereof shall cease as of the day that possession shall be so taken. If less than all of the Property shall be taken under the power of eminent domain and the remainder is usable for public purposes by the City at the time of such taking, then the Lease Agreement shall continue in full force and effect as to such remainder, and the parties waive the benefits of any law to the contrary, and in such event there shall be a partial abatement of the Rental Payments in accordance with the provisions of Section 3.06 hereof. So long as any Bonds shall be Outstanding, any award made in eminent domain proceedings for the taking of the Property, or any portion thereof, shall be paid to the Trustee and applied to the redemption of Bonds as provided in subsection (a) of Section 4.01 of the Indenture, in the corresponding provisions of any Supplemental Indenture pursuant to which Additional Bonds are issued and in Section 5.03 of the Indenture. Any such award made after all of the Bonds, and all other amounts due under the Indenture and hereunder, have been fully paid, shall be paid to the Authority and to the City as their respective interests may appear.
Section 7.02 Prepayment.
(a) The City may prepay all or a portion of the Base Rental Payments attributable to the Series 2025A Bonds which are payable after November 1, 20 __ from any source of available funds, on November 1, 20 __ or any date thereafter by paying: (i) all or a portion, as selected by the City, of the principal components of such Base Rental Payments; and (ii) the accrued but unpaid interest component of such Base Rental Payments to be prepaid to the date of such prepayment. (b) The City may prepay, from any source of available funds, all or any portion of the Base Rental Payments attributable to the Series 2025A Bonds by depositing with the Trustee moneys or securities as provided, and subject to the terms and conditions set forth, in Article X of the Indenture sufficient to make such Base Rental Payments when due or to make such Base Rental Payments through a specified date on which the City has a right to prepay such Base Rental Payments pursuant to subsection (a) of this Section, and to prepay such Base Rental Payments on such prepayment date, at a prepayment price determined in accordance with subsection (a) of this Section.
(c) If less than all of the Base Rental Payments attributable to the Series 2025A Bonds are prepaid pursuant to this Section then, as of the date of such prepayment pursuant to subsection (a) of this Section, or the date of a deposit pursuant to subsection (b) of this Section, the principal and interest components of such Base Rental Payments shall be recalculated by the City and transmitted to the Trustee in order to take such prepayment into account. The City agrees that if, following a partial prepayment of such Base Rental Payments, the Property is damaged or destroyed or taken by eminent domain, or a defect in title to the Property is discovered, the City shall not be entitled to, and by such prepayment waives the right of, abatement of such prepaid Base Rental Payments and the City shall not be entitled to any reimbursement of such Base Rental Payments. (d) If all of the Base Rental Payments are prepaid in accordance with the provisions of this Lease Agreement then, as of the date of such prepayment pursuant to subsection (a) of this Section and, if applicable, the corresponding provisions hereof relating to the prepayment of 900
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Base Rental Payments attributable to Additional Bonds, or deposit pursuant to subsection (b) of this Section and, if applicable, such corresponding provisions, and payment of all other amounts owed under this Lease Agreement, the term of this Lease Agreement shall be terminated. (e) Prepayments of Base Rental Payments attributable to the Series 2025A Bonds made pursuant to this Section shall be applied to the redemption of the Series 2025A Bond s as directed by the City and as provided in Section 4.01 of the Indenture.
ARTICLE VIII
COVENANTS
Section 8.01 Right of Entry. The Authority and its assignees shall have the right to enter upon and to examine and inspect the Property during reasonable business hours (and in emergencies at all times) for any purpose connected with the Authority’s rights or obligations under this Lease Agreement, and for all other lawful purposes.
Section 8.02 Liens. In the event that the City shall at any time during the term of this Lease Agreement cause any changes, alterations, additions, improvements, or other work to be done or performed or materials to be supplied, in or upon the Property, the City shall pay, when due, all sums of money that may become due for, or purporting to be for, any labor, services, materials, supplies or equipment furnished or alleged to have been furnished to or for the City in, upon or about the Property and which may be secured by a mechanic’s, materialmen’s or other lien against the Property or the Authority’s interest therein, and will cause each such lien to be fully discharged and released at the time that the performance of any obligation secured by any such lien matures or becomes due, except that, if the City desires to contest any such lien, it may do so as long as such contestment is in good faith. If any such lien shall be reduced to final judgment and such judgment or such process as may be issued for the enforcement thereof is not promptly stayed, or if so stayed and said stay thereafter expires, the City shall forthwith pay and discharge said judgment.
Section 8.03 Quiet Enjoyment . The parties hereto mutually covenant that the City, by keeping and performing the covenants and agreements herein contained, shall at all times during the term of this Lease Agreement peaceably and quietly have, hold and enjoy the Property without suit, trouble or hindrance from the Authority.
Section 8.04 Authority Not Liable. The Authority and its directors, officers, agents and employees shall not be liable to the City or to any other party whomsoever for any death, injury or damage that may result to any person or property by or from any cause whatsoever in, on or about the Property. To the extent permitted by law, the City shall, at its expense, indemnify and hold the Authority and the Trustee and all directors, members, officers and employees thereof harmless against and from any and all claims by or on behalf of any person, firm, corporation or governmental authority arising from the acquisition, construction, occupation, use, operation, maintenance, possession, conduct or management of or from any work done in or about the Property or from the subletting of any part thereof, including any liability for violation of conditions, agreements, restrictions, laws, ordinances, or regulations affecting the Property or the occupancy or use thereof, but excepting the negligence or willful misconduct of the pers ons or entity seeking indemnity. The City also covenants and agrees, at its expense, to pay and indemnify and save the Authority and the Trustee and all directors, officers and employees thereof harmless against and from any and all claims arising from: (a) any condition of the Property and the adjoining sidewalks and passageways; 901
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(b) any breach or default on the part of the City in the performance of any covenant or agreement to be performed by the City pursuant to this Lease Agreement; (c) any act or negligence of licensees in connection with their use, occupancy or operation of the Property; or (d) any accident, injury or damage whatsoever caused to any person, firm or corporation in or about the Property or upon or under the sidewalks and from and against all costs, reasonable counsel fees, expenses and liabilities incurred in any action or proceeding brought by reason of any claim referred to in this Section, but excepting the negligence or willful misconduct of the person or entity seeking indemnity. In the event that any action or proceeding is brought against the Authority or the Trustee or any director, member, officer or employee thereof by reason of any such claim, the City, upon notice from the Authority or the Trustee or such director, member, officer employee thereof, covenants to resist or defend such action or proceeding by counsel reasonably satisfactory to the Authority or the Trustee or such director, member, officer or employee thereof.
Section 8.05 Assignment and Subleasing. Neither this Lease Agreement nor any interest of the City hereunder shall be sold, mortgaged, pledged, assigned, or transferred by the City by voluntary act or by operation by law or otherwise. The Property may not be subleased in whole or in part by the City without the prior written consent of the Authority. Any such sublease shall be subject to all of the following conditions:
(a) this Lease Agreement and the obligation of the City to make all Rental Payments hereunder shall remain the primary obligation of the City; (b) the City shall, within 30 days after the delivery thereof, furnish or cause to be furnished to the Authority and the Trustee a true and complete copy of such sublease; (c) no such sublease by the City shall cause the Property to be used for a purpose other than a governmental or proprietary function authorized under the provisions of the Constitution and laws of the State of California;
(d) any sublease of the Property by the City shall explicitly provide that such sublease is subject to all rights of the Authority under the Lease Agreement, including the right to re-enter and re-let the Property or terminate the Lease Agreement upon a default by the City; and (e) the City shall furnish the Authority and the Trustee with an Opinion of Counsel to the effect that such sublease will not, in and of itself, cause the interest on the Bonds to be included in gross income for federal income tax purposes.
Notwithstanding the foregoing, the Authority’s consent and the Opinion of Counsel described in subsection (e) above shall not be required if the sublease, use agreement or license is cancellable by the City upon 55 days or less notice to the sublessee, licensee or user.
Section 8.06 Title to Property . Upon the termination or expiration of this Lease Agreement (other than as provided in Sections 6.01 and 7.01 hereof), and the first date upon which the Bonds are no longer Outstanding, all right, title and interest in and to the Property shall vest in the City. Upon any such termination or expiration, the Authority shall execute such conveyances, deeds and other documents as may be necessary to effect such vesting of record. 902
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Section 8.07 Authority’s Purpose. The Authority covenants that, prior to the discharge of this Lease Agreement and the Bonds, it will not engage in any activities inconsistent with the purposes for which the Authority is organized, as set forth in the Joint Powers Agreement.
Section 8.08 Representations of the City . The City represents and warrants to the Authority that: (a) the City has the full power and authority to enter into, to execute and to deliver this Lease Agreement and the Indenture, and to perform all of its duties and obligations hereunder and thereunder, and has duly authorized the execution and delivery of this Lease Agreement and the Indenture; and (b) the Property will be used in the performance of essential governmental functions.
Section 8.09 Representation of the Authority. The Authority represents and warrants to the City that the Authority has the full power and authority to enter into, to execute and to deliver this Lease Agreement, the Assignment Agreement and the Indenture, and to perform all of its duties and obligations hereunder and thereunder, and has duly authorized the execution and delivery of this Lease Agreement, the Assignment Agreement and the Indenture.
ARTICLE IX
NO CONSEQUENTIAL DAMAGES;
USE OF THE PROPERTY; SUBSTITUTION OR RELEASE
Section 9.01 No Consequential Damages. In no event shall the Authority or the Trustee be liable for any incidental, indirect, special or consequential damage in connection with or arising out of this Lease Agreement or the City’s use of the Property.
Section 9.02 Use of the Property. The City will not use, operate or maintain the Property improperly, carelessly, in violation of any applicable law or in a manner contrary to that contemplated by this Lease Agreement. In addition, the City agrees to comply in all respects (including, without limitation, with respect to the use, maintenance and operation of the Property) with all laws of the jurisdictions in which its operations may extend and any legislative, executive, administrative or judicial body exercising any power or jurisdiction over the Property; provided, however, that the City may contest in good faith the validity or application of any such law or rule in any reasonable manner which does not, in the opinion of the Authority, adversely affect the estate of the Authority in and to any of the Property or its interest or rights under this Lease Agreement.
Section 9.03 Substitution or Release of , or Addition to, the Property. The City shall have the right to substitute alternate real property for any portion of the Property or to release a portion of the Property from this Lease Agreement or to add additional property to the encumbrance of this Lease Agreement . All costs and expenses incurred in connection with such substitution , release or addition shall be borne by the City. Notwithstanding any substitution or release of , or addition to, Property pursuant to this subsection, there shall be no reduction in or abatement of the Base Rental Payments due from the City hereunder as a result of such substitution , release or addition. Any such substitution or release of any portion of the Property , or addition to the Property, shall be subject to the following specific conditions, which are hereby made conditions precedent to such substitution, release or addition:
(a) The City shall have delivered a certificate to the Trustee setting forth its findings that the Property, as constituted after such substitution , release or addition: (i) has an annual 903
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fair rental value at least equal to the maximum Base Rental Payments payable by the City in any Rental Period; and (ii) has a useful life in excess of the final maturity of any Outstanding Bonds; (b) With respect to any substituted or added property, the City shall have obtained or caused to be obtained a CLTA or ALTA title insurance policy or policies with respect to the Property (as such term will be defined after such substitution or addition) that when taken together with other title insurance policies covering the Property, will be in the amount at least equal to the aggregate principal amount of any Outstanding Bonds of the type and with the endorsements described in Section 5.02 hereof; and
(c) the City, the Authority and the Trustee shall have executed, and the City shall have caused to be recorded with the San Bernardino County Recorder, any document necessary to reconvey to the City the portion of the Property being released and to include any substituted real property in the description of the Property contained herein and in the Ground Lease.
ARTICLE X
MISCELLANEOUS
Section 10.01 Law Governing . THIS LEASE AGREEMENT SHALL BE GOVERNED
EXCLUSIVELY BY THE PROVISIONS HEREOF AND BY THE LAWS OF THE STATE OF CALIFORNIA AS THE SAME FROM TIME TO TIME EXIST.
Section 10.02 Notices. All written notices, statements, demands, consents, approvals, authorizations, offers, designations, requests or other communications hereunder shall be given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:
If to the City: City of Ontario
303 East B Street
Ontario, CA 91764
Attention: City Manager
If to the Authority: Ontario Public Financing Authority c/o City of Ontario
303 East B Street
Ontario, CA 91764
Attention: Executive Director
Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed: (a) if personally served or delivered, upon delivery; (b) if given by electronic communication, whether by telex, telegram or telecopier, upon the sender’s receipt of an appropriate answerback or other written acknowledgment; (c) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail; (d) if given by overnight courier, with courier charges prepaid, 24 hours after delivery to said overnight courier; or (e) if given by any other means, upon delivery at the address specified in this Section.
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Section 10.03 Validity and Severability . If for any reason this Lease Agreement shall be held by a court of competent jurisdiction to be void, voidable or unenforceable by the Authority or by the City, or if for any reason it is held by such a court that any of the covenants and conditions of the City hereunder, including the covenant to pay Rental Payments, is unenforceable for the full term hereof; then and in such event this Lease Agreement is and shall be deemed to be a Lease Agreement under which the Rental Payments are to be paid by the City annually in consideration of the right of the City to possess, occupy and use the Property, and all of the terms, provisions and conditions of this Lease Agreement, except to the extent that such terms, provisions and conditions are contrary to or inconsistent with such holding, shall remain in full force and effect.
Section 10.04 Net-Net-Net Lease. This Lease Agreement shall be deemed and construed to be a “net-net-net lease” and the City hereby agrees that the Rental Payments shall be an absolute net return to the Authority, free and clear of any expenses, charges or set -offs whatsoever and notwithstanding any dispute between the City and the Authority.
Section 10.05 Taxes. The City shall pay or cause to be paid all taxes and assessments of any type or nature charged to the Authority or affecting the Property or the respective interests or estates therein; provided, however, that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, the City shall be obligated to pay only such installments as are required to be paid during the term of this Lease Agreement as and when the same become due.
The City or any sublessee may, at the City’s or such sublessee’s expense and in its name, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the Authority or the Trustee shall notify the City or such sublessee that, in the opinion of independent counsel, by nonpayment of any such items, the interest of the Authority in the Property will be materially endangered or the Property, or any part thereof, will be subject to loss or forfeiture, in which event the City or such sublessee shall promptly pay such taxes, assessments or charges or provide the Authority with full security against any loss which may result from nonpayment, in form satisfactory to the Authority and the Trustee.
Section 10.06 Section Headings. All section headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Lease Agreement.
Section 10.07 Amendments.
(a) This Lease Agreement and the Ground Lease may be amended and the rights and obligations of the Authority and the City hereunder and thereunder may be amended at any time by an amendment hereto or thereto which shall become binding upon execution and delivery by the Authority and the City, but only with the prior written consent of the Owners of a majority of the principal amount of the Bonds then Outstanding pursuant to the Indenture, provided that no such amendment shall: (i) extend the payment date of any Base Rental Payments, reduce the interest component or principal component of any Base Rental Payments or change the prepayment terms and provisions, without the prior written consent of the Owner of each Bond so affected; or (ii) reduce the percentage of the principal amount of the Bonds the consent of the Owners of which is required for the execution of any amendment of this Lease Agreement or the Ground Lease. 905
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(b) This Lease Agreement and the Ground Lease and the rights and obligations of the Authority and the City hereunder and thereunder may also be amended at any time by an amendment hereto or thereto which shall become binding upon execution by the Authority and the City, without the written consents of any Owners, but only to the extent permitted by law and only for any one or more of the following purposes:
(i) to add to the agreements, conditions, covenants and terms required by the Authority or the City to be observed or performed herein or therein other agreements, conditions, covenants and terms thereafter to be observed or performed by the Authority or the City, or to surrender any right or power reserved herein or therein to or conferred herein or therein on the Authority or the City, and which in either case shall not materially adversely affect the interests of the Owners;
(ii) to make such provisions for the purpose of curing any ambiguity or of correcting, curing or supplementing any defective provision contained herein or therein or in regard to questions arising hereunder or thereunder which the Authority or the City may deem desirable or necessary and not inconsistent herewith or therewith, and which shall not materially adversely affect the interests of the Owners;
(iii) to make such additions, deletions or modifications as may be necessary or appropriate to assure the exclusion from gross income for federal income tax purposes of the interest on the Bonds;
(iv) to provide for the substitution or release of a portion of the Property in accordance with the provisions of Section 9.03 hereof; (v) to provide for the issuance of Additional Bonds in accordance with Article III of the Indenture; or
(vi) to make such other changes herein or therein or modifications hereto or thereto as the Authority or the City may deem desirable or necessary, and which shall not materially adversely affect the interests of the Owners.
Section 10.08 Assignment. The City and the Authority hereby acknowledge the assignment of this Lease Agreement (except for the Authority’s obligations and its rights to give consents or approvals hereunder), and the Base Rental Payments payable hereunder, to the Trustee pursuant to the Assignment Agreement. To the extent that this Lease Agreement confers upon or gives or grants the Trustee any right, remedy or claim under or by reason of this Lease Agreement, the Trustee is hereby explicitly recognized as being a third -party beneficiary hereunder and may enforce any such right, remedy or claim conferred, given or granted hereunder.
Section 10.09 Execution. This Lease Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all together shall constitute but one and the same Lease Agreement.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
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IN WITNESS WHEREOF, the Authority and the City have caused this Lease Agreement to be executed by their respective officers thereunto duly authorized, all as of the day and year first above written.
CITY OF ONTARIO
By:
City Manager
ATTEST:
City Clerk
ONTARIO PUBLIC FINANCING AUTHORITY
By:
Executive Director
ATTEST:
Secretary
907
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EXHIBIT A
DESCRIPTION OF THE PROPERTY
• Ovitt Family Community Library
• Municipal Services Corporation Yard
• Creekside Park
• Kimball Community Park
• Bon View Park
• Homer F. Briggs Memorial Park
• Anthony Munoz Hall of Fame Park
• De Anza Park
• Westwind Park
• John Galvin Park
• Ontario Motor Speedway Park
• Celebration Park (North and South)
908
B-1
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EXHIBIT B
BASE RENTAL PAYMENT SCHEDULE
Date
(Fifth Business Day
Prior to) Principal Component Interest Component Total Base Rental
909
B-2
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Date
(Fifth Business Day
Prior to) Principal Component Interest Component Total Base Rental
910
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INDENTURE
by and among
ONTARIO PUBLIC FINANCING AUTHORITY
and
CITY OF ONTARIO
and
ZIONS BANCORPORATION, NATIONAL ASSOCIATION,
as Trustee
Dated as of _____ 1, 2025
Relating to
$____________
ONTARIO PUBLIC FINANCING AUTHORITY
2025A LEASE REVENUE BONDS
911
TABLE OF CONTENTS
Page
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ARTICLE I
DEFINITIONS; EQUAL SECURITY
Section 1.01 Definitions ................................................................................................................. 2 Section 1.02 Equal Security .......................................................................................................... 12
ARTICLE II
THE BONDS
Section 2.01 Authorization of Bonds ............................................................................................ 13 Section 2.02 Terms of Series 2025A Bonds ................................................................................. 13 Section 2.03 Form of Series 2025A Bonds ................................................................................... 15 Section 2.04 Transfer and Exchange of Bonds ............................................................................. 15 Section 2.05 Registration Books ................................................................................................... 15 Section 2.06 Execution of Bonds .................................................................................................. 15 Section 2.07 Authentication of Bonds .......................................................................................... 15 Section 2.08 Temporary Bonds .................................................................................................... 16 Section 2.09 Bonds Mutilated, Lost, Destroyed or Stolen ............................................................ 16 Section 2.10 Book-Entry Bonds ................................................................................................... 16
ARTICLE III
ISSUANCE OF BONDS; APPLICATION OF PROCEEDS
Section 3.01 Issuance of Series 2025A Bonds ............................................................................. 18 Section 3.02 Application of Proceeds of the Series 2025A Bonds ............................................... 18 Section 3.03 Costs of Issuance Fund ............................................................................................ 18 Section 3.04 Project Fund ............................................................................................................. 19 Section 3.05 Conditions for the Issuance of Additional Bonds .................................................... 19 Section 3.06 Procedure for the Issuance of Additional Bonds ..................................................... 20 Section 3.07 Additional Bonds ..................................................................................................... 21
ARTICLE IV
REDEMPTION OF BONDS
Section 4.01 Redemption of Series 2025A Bonds ........................................................................ 21 Section 4.02 Notice of Redemption .............................................................................................. 23 Section 4.03 Selection of Bonds for Redemption ......................................................................... 23 Section 4.04 Partial Redemption of Bonds ................................................................................... 23 Section 4.05 Effect of Notice of Redemption ............................................................................... 24
ARTICLE V
SECURITY FOR BONDS; FLOW OF FUNDS; INVESTMENTS
Section 5.01 Pledge; Special Obligations ..................................................................................... 24 Section 5.02 Flow of Funds .......................................................................................................... 24 Section 5.03 Application of Net Insurance Proceeds.................................................................... 25 Section 5.04 Title Insurance ......................................................................................................... 26 Section 5.05 Rebate Fund ............................................................................................................. 27 Section 5.06 Investment of Moneys ............................................................................................. 28 912
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ARTICLE VI
COVENANTS
Section 6.01 Compliance with Agreements .................................................................................. 29 Section 6.02 Compliance with Ground Lease and Lease Agreement ........................................... 29 Section 6.03 Observance of Laws and Regulations ...................................................................... 30 Section 6.04 Other Liens .............................................................................................................. 30 Section 6.05 Prosecution and Defense of Suits ............................................................................ 30 Section 6.06 Accounting Records and Statements ....................................................................... 30 Section 6.07 Recordation and Filing ............................................................................................. 30 Section 6.08 Tax Covenants ......................................................................................................... 31 Section 6.09 Continuing Disclosure ............................................................................................. 31 Section 6.10 Further Assurances .................................................................................................. 31
ARTICLE VII
DEFAULT AND LIMITATIONS OF LIABILITY
Section 7.01 Action on Default ..................................................................................................... 31 Section 7.02 Other Remedies of the Trustee ................................................................................ 32 Section 7.03 Non-Waiver ............................................................................................................. 32 Section 7.04 Remedies Not Exclusive .......................................................................................... 33 Section 7.05 No Liability by the Authority to the Owners ........................................................... 33 Section 7.06 No Liability by the City to the Owners .................................................................... 33 Section 7.07 No Liability of the Trustee to the Owners ............................................................... 33 Section 7.08 Application of Amounts After Default .................................................................... 33 Section 7.09 Trustee May Enforce Claims Without Possession of Bonds ................................... 34 Section 7.10 Limitation on Suits ................................................................................................... 34
ARTICLE VIII
THE TRUSTEE
Section 8.01 Employment of the Trustee ...................................................................................... 34 Section 8.02 Duties, Removal and Resignation of the Trustee..................................................... 35 Section 8.03 Compensation of the Trustee ................................................................................... 35 Section 8.04 Protection of the Trustee .......................................................................................... 36
ARTICLE IX
MODIFICATION OR AMENDMENTS
Section 9.01 Modifications and Amendments Permitted ............................................................. 39 Section 9.02 Effect of Supplemental Indenture ............................................................................ 40 Section 9.03 Endorsement of Bonds; Preparation of New Bonds ................................................ 40 Section 9.04 Amendment of Particular Bonds .............................................................................. 40
ARTICLE X
DEFEASANCE
Section 10.01 Discharge of Indenture ............................................................................................. 41 Section 10.02 Bonds Deemed To Have Been Paid ......................................................................... 41 Section 10.03 Payment of Bonds After Discharge of Indenture ..................................................... 42 913
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ARTICLE XI
MISCELLANEOUS
Section 11.01 Benefits of Indenture Limited to Parties .................................................................. 42 Section 11.02 Successor Deemed Included in all References to Predecessor ................................ 42 Section 11.03 Execution of Documents by Owners ....................................................................... 42 Section 11.04 Waiver of Personal Liability .................................................................................... 43 Section 11.05 Destruction of Bonds ............................................................................................... 43 Section 11.06 Funds and Accounts ................................................................................................. 43 Section 11.07 Article and Section Headings Gender and References ............................................ 43 Section 11.08 Partial Invalidity ...................................................................................................... 43 Section 11.09 Disqualified Bonds .................................................................................................. 44 Section 11.10 Money Held for Particular Bonds ............................................................................ 44 Section 11.11 Payment on Non-Business Days .............................................................................. 44 Section 11.12 California Law ......................................................................................................... 44 Section 11.13 Notices ..................................................................................................................... 45 Section 11.14 Notice to Rating Agencies ....................................................................................... 45 Section 11.15 Execution in Counterparts ....................................................................................... 45 Section 11.16 Bond Insurer as Third Party Beneficiary; Notices to Bond Insurer ......................... 45
Signatures ................................................................................................................................... S-1
EXHIBIT A FORM OF SERIES 2025A BOND ........................................................................... A-1 EXHIBIT B FORM OF PROJECT FUND REQUISITION ......................................................... B-1 EXHIBIT C DESCRIPTION OF SERIES 2025A PROJECT ...................................................... C-1
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INDENTURE
THIS INDENTURE (this “Indenture”), executed and entered into as of _____ 1, 2025 , is by and among the ONTARIO PUBLIC FINANCING AUTHORITY, a joint exercise of powers entity duly organized and existing under the laws of the State of California (the “ Authority”), the CITY OF ONTARIO, a municipal corporation and general law city duly organized and existing under and by virtue of the Constitution and laws of the State of California (the “ City”), and ZIONS BANCORPORATION, NATIONAL ASSOCIATION, a national banking association duly organized and existing under and by virtue of the laws of the United States, as Trustee (the “Trustee”).
RECITALS
A. The City and the Authority desire to finance a portion of the costs of the acquisition, construction and installation of various public improvements (collectively, the “Project”).
B. In order to finance the Project, the City will lease certain real property and the improvements located thereon (the “ Property”) to the Authority pursuant to that certain Ground Lease, dated as of the date hereof, and the City will sublease the Property back from the Authority pursuant to that certain Lease Agreement, dated as of the date hereof (the “Lease Agreement”).
C. The City and the Authority have determined that it would be in the best interests of the City and the Authority to provide the funds necessary to finance the Project through the issuance by the Authority of bonds payable from the base rental payments (the “ Base Rental Payments”) to be made by the City under the Lease Agreement.
D. All rights to receive the Base Rental Payments have been assigned without recourse by the Authority to the Trustee (as defined below) pursuant to that certain Assignment Agreement, dated as of the date hereof, by and between the Authority and the Trustee.
E. The Authority and the City desire to provide for the issuance by the Authority of the Ontario Public Financing Authority 2025A Lease Revenue Refunding Bonds (the “Series 2025A Bonds”) in the aggregate principal amount of $__________, in order to finance the Project.
F. The Series 2025A Bond s will be payable equally and ratably from the Base Rental Payments.
G. The Authority and the City desire to provide for the issuance of additional bonds (the “Additional Bonds ”) payable from the Base Rental Payments on a parity with the Series 2025A Bonds (the Series 2025A Bonds and any such Additional Bonds being collectively referred to as the “Bonds”).
H. In order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and secured and to secure the payment of the principal thereof, premium, if any, and interest thereon, the Authority and the City have authorized the execution and delivery of this Indenture.
I. The Authority and the City have determined that all acts and proceedings required by law necessary to make the Bonds, when executed by the Authority, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal special obligations of the Authority, and to 915
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constitute this Indenture a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and taken, and the execution and delivery of the Indenture has been in all respects duly authorized.
NOW THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the parties do hereby agree as follows:
ARTICLE I
DEFINITIONS; EQUAL SECURITY
Section 1.01 Definitions. Unless the context otherwise requires, the terms defined in this Section shall for all purposes hereof and of any amendment hereof or supplement hereto and of the Bonds and of any certificate, opinion, request or other document mentioned herein or therein have the meanings defined herein, the following definitions to be equally applicable to both the singular and plural forms of any of the terms defined herein. Capitalized terms that are not otherwise defined herein shall have the meanings assigned to such terms in the Lease Agreement. “Act” means the Marks -Roos Local Bond Pooling Act of 1985, commencing with Section 6584 of the California Government Code.
“Additional Bonds” means Bonds other than the Series 2025A Bonds issued hereunder in accordance with the provisions of Sections 3.06 and 3.07 hereof. “Additional Rental Payments” means all amounts payable by the City as Additional Rental Payments pursuant to Section 3.02 of the Lease Agreement. “Assignment Agreement” means the Assignment Agreement, dated as of the date hereof, by and between the Authority and the Trustee.
“Authority” means the Ontario Public Financing Authority, a joint exercise of powers entity organized and existing under and by virtue of the laws of the State of California. “Authorized Authority Representative ” means the Chair, Vice Chair, Executive Director, Treasurer and Secretary of the Authority, or any other person authorized by the Board of Commissioners of the Authority to act on behalf of the Authority under or with respect to this Indenture.
“Authorized City Representative” means the Mayor of the City, the Mayor Pro Tem of the City, the City Manager of the City, the Executive Director of Finance of the City or the City Clerk, or any other person authorized by the City Council of the City to act on behalf of the City under or with respect to this Indenture.
“Authorized Denominations” means $5,000 or any integral multiple thereof. “Base Rental Payment Fund ” means the fund by that name established in accordance with Section 5.02 hereof.
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“Base Rental Payments ” means all amounts payable to the Authority by the City as Base Rental Payments pursuant to Section 3.01 of the Lease Agreement. “Bonds” means the Series 2025A Bonds and any Additional Bonds issued hereunder. “Book-Entry Bonds” means the Bonds of a Series registered in the name of the nominee of DTC, or any successor securities depository for such Series of Bonds, as the registered owner thereof pursuant to the terms and provisions of Section 2.10 hereof. “Business Day” means a day which is not: (a) a Saturday, Sunday or legal holiday; (b) a day on which banking institutions in the State of California, or in any state in which the Office of the Trustee is located, are required or authorized by law (including executive order) to close; or (c) a day on which the New York Stock Exchange is closed.
“Cede & Co.” means Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to a Series of Book-Entry Bonds.
“City” means the City of Ontario, a municipal corporation and general law city duly organized and existing under and by virtue of the Constitution and laws of the State of California. “Closing Date” means _____, 2025.
“Code” means the Internal Revenue Code of 1986, as amended. “Continuing Disclosure Certificate” means the Continuing Disclosure Certificate, dated as of the date hereof, executed by the City, as originally executed and as it may from time to time be amended in accordance with the provisions thereof.
“Costs of Issuance ” means all of the costs of issuing and delivering the Bonds, including, but not limited to, all printing and document preparation expenses in connection with this Indenture, the Lease Agreement, the Ground Lease, the Assignment Agreement, the Bonds and any preliminary official statement and final official statement pertaining to the Bonds, rating agency fees, CUSIP Service Bureau charges, market study fees, legal fees and expenses of counsel in connection with the issuance and delivery of the Bonds, the initial fees and expenses of the Trustee and its counsel and other fees and expenses incurred in connection with the issuance and delivery of the Bonds, to the extent such fees and expenses are approved by the City. “Costs of Issuance Fund ” means the fund by that name established in accordance with Section 3.04 hereof.
“DTC” means The Depository Trust Company, a limited -purpose trust company organized under the laws of the State of New York, and its successors as securities depository for any Series of Book-Entry Bonds, including any such successor appointed pursuant to Section 2.10 hereof. “Federal Securities” means: (a) non-callable direct general obligations of the United States of America (including obligations issued or held in book entry form on the books of the Department of the Treasury of the United States of America); and (b) obligations of any agency, department or instrumentality of the United States of America the timely payment of principal of and interest on which are fully guaranteed by the United States of America, provided that such securities are eligible for defeasance under the then-existing criteria of S&P. 917
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“Ground Lease” means the Ground Lease, dated as of the date hereof, by and between the City and the Authority, as originally executed and as it may from time to time be amended in accordance with the provisions thereof and of the Lease Agreement. “Indenture” means this Indenture, as originally executed and as it may be amended or supplemented from time to time by any Supplemental Indenture. “Information Services ” means the Municipal Securities Rulemaking Board through the Electronic Municipal Marketplace Access (EMMA) website; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other services providing information with respect to called bonds as the Authority may designate in a Written Certificate of the Authority delivered to the Trustee.
“Insolvency Proceeding ” means any proceeding by or against the City or the Authority commenced under the United States Bankruptcy Code or any other applicable bankruptcy, insolvency, receivership, rehabilitation or similar law. “Insured Series 2025A Bonds” means those Series 2025A Bonds maturing on November 1, 20__ through November 1, 20__, inclusive.
“Interest Fund” means the fund by that name established in accordance with Section 5.02 hereof.
“Interest Payment Date ” means May 1 and November 1 of each year, commencing o n _____ 1, 2025.
“Lease Agreement ” means the Lease Agreement, dated as of the date hereof, by and between the City and the Authority, as originally executed and as it may be from time to time amended in accordance with the provisions thereof.
“Moody’s” means Moody’s Investors Service, a corporation organized and existing under the laws of the State of Delaware, its successors and assigns, except that if such corporation shall no longer perform the function of a securities rating agency for any reason, the term “Moody’s” shall be deemed to refer to any other nationally recognized securities rating agency selected by the Authority. “Net Insurance Proceeds Fund ” means the fund by that name established in accordance with Section 5.02 hereof.
“Office of the Trustee ” means the principal corporate trust office of the Trustee in Los Angeles, California, or such other office as may be specified to the Authority and the City by the Trustee in writing, except that with respect to presentation of Bonds for payment or for registration of transfer and exchange such term shall mean the office or the agency of the Trustee at which, at any particular time, its corporate trust agency shall be conducted as specified to the Authority and the City by the Trustee in writing.
“Opinion of Counsel” means a written opinion of counsel of recognized national standing in the field of law relating to municipal bonds, appointed and paid by the Authority or the City and which written opinion is satisfactory to the Trustee.
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“Outstanding,” when used as of any particular time with reference to Bonds, means (subject to the provisions of Section 11.09 hereof) all Bonds theretofore, or thereupon being, authenticated and delivered by the Trustee under this Indenture except:
(a) Bonds theretofore canceled by the Trustee or surrendered to the Trustee for cancellation;
(b) Bonds with respect to which all liability of the Authority shall have been discharged in accordance with Section 10.01 hereof; and (c) Bonds for the transfer or exchange of or in lieu of or in substitution for which other Bonds shall have been authenticated and delivered by the Trustee pursuant to this Indenture. “Owner” means, with respect to a Bond, the Person in whose name such Bond is registered on the Registration Books.
“Participant” means any entity which is recognized as a participant by DTC in the book - entry system of maintaining records with respect to Book-Entry Bonds. “Participating Underwriter” has the meaning ascribed thereto in the Continuing Disclosure Certificate.
“Permitted Investments” means any of the following to the extent then permitted by the general laws of the State of California (provided that the Trustee shall be entitled to rely upon any investment directions from the City and Authority as conclusive certification to the Trustee that the investments described therein are so authorized under the laws of the State of California):
(1) (a) Direct obligations (other than an obligation subject to variation in principal repayment) of the United States of America (“United States Treasury Obligations”); (b) obligations fully and unconditionally guaranteed as to timely payment of principal and interest by the United States of America; (c) obligations fully and unconditionally guaranteed as to timely payment of principal and interest by any agency or instrumentality of the United States of America when such obligations are backed by the full faith and credit of the United States of America; or (d) evidences of ownership of proportionate interests in future interest and principal payments on obligations described above held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor and the underlying government obligations are not available to any person claiming through the custodian or to whom the custodian may be obligated (collectively “United States Obligations”). These include, but are not necessarily limited to:
-U.S. Treasury obligations
All direct or fully guaranteed obligations
-Farmers Home Administration
Certificates of beneficial ownership
-General Services Administration
Participation certificates
-U.S. Maritime Administration
Guaranteed Title XI financing
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-Small Business Administration
Guaranteed participation certificates
Guaranteed pool certificates
-Government National Mortgage Association (GNMA)
GNMA-guaranteed mortgage-backed securities
GNMA-guaranteed participation certificates
-U.S. Department of Housing & Urban Development
Local authority bonds
-Washington Metropolitan Area Transit Authority
Guaranteed transit bonds
(2) Federal Housing Administration debentures.
(3) The listed obligations of government -sponsored agencies which are not backed by the full faith and credit of the United States of America:
-Federal Home Loan Mortgage Corporation (FHLMC)
Participation certificates (excluded are stripped mortgage securities which are purchased at prices exceeding their principal amounts) Senior debt obligations
-Farm Credit Banks (formerly: Federal Land Banks, Federal intermediate Credit Banks and Banks for Cooperatives)
Consolidated systemwide bonds and notes
-Federal Home Loan Banks (FHL Banks)
Consolidated debt obligations
-Federal National Mortgage Association (FNMA)
Senior debt obligations
Mortgage-backed securities (excluded are stripped mortgages securities which are purchased at prices exceeding their principal amounts) -Financing Corporation (FICO)
Debt obligations
-Resolution Funding Corporation (REFCORP)
Debt obligations
(4) Unsecured certificates of deposit, time deposits or other similar bank deposit products, and bankers’ acceptances (having maturities of not more than 180 days) of any bank, including the Trustee and its affiliates, the short -term obligations of which are rated “A-1+” or better by S&P and “P-1” or better by Moody’s.
(5) Deposits the aggregate amount of which are fully insured by the Federal Deposit Insurance Corporation (FDIC), in banks, including the Trustee and its affiliates, which have capital and surplus of at least $5 million.
(6) Commercial paper (having original maturities of not more than 270 days) rated “A-1+” by S&P and “Prime-1” by Moody’s at the time of purchase. (7) Money market funds rated “AAm” or “AAm -G” or better by S&P and “Aa2” or better by Moody’s, including such funds for which the Trustee, its affiliates or subsidiaries provide investment advisory or other management services or for which the Trustee or an affiliate of the 920
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Trustee serves as investment administrator, shareholder servicing agent, and/or custodian or subcustodian, notwithstanding that: (i) the Trustee or an affiliate of the Trustee receives and retains a fee for services extended to the fund; (ii) the Trustee collects fees for services rendered pursuant to this Indenture, which fees are separate from the fees received from such funds ; and (iii) services performed for such funds and pursuant to this Indenture may at times duplicate those provided to such funds by the Trustee or an affiliate of the Trustee. (8) Repurchase agreements:
(a) With any domestic bank the long term debt of which is rated “AA” or better by S&P and “Aa” by Moody’s (so long as an opinion is rendered that the repurchase agreement is a “repurchase agreement” as defined in the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”) and that such bank is subject to FIRREA), or any foreign bank rated at least “AA” by S&P and “Aaa” by Moody’s or “AA” by S & P and at least “Aa2” by Moody’s; provided the term of such repurchase agreement is for one year or less. (b) With (i) any broker-dealer with “retail customers” which has, or the parent company of which has, long -term debt rated at least “AA” by S&P and “Aa2” by Moody’s, which broker-dealer falls under the jurisdiction of the Securities Investors Protection Corp. (SIPC); provided that:
A. The market value of the collateral is maintained for United States Treasury Obligations, at the levels shown below under “Collateral Levels for United States Treasury Obligations”;
B. Failure to maintain the requisite collateral percentage will require the City or the Trustee to liquidate the collateral; C. The Trustee, the City or a third party acting solely as agent therefor (the “Holder of the Collateral”) has possession of the collateral or the collateral has been transferred to the Holder of the Collateral in accordance with applicable state and federal laws (other than by means of entries on the transferor’s books);
D. The repurchase agreement states, and an opinion of counsel is rendered to the effect, that the Trustee has a perfected first priority security interest in the collateral, any substituted collateral and all proceeds thereof (in the case of bearer securities, this means the Holder of the Collateral is in possession);
E. The transferor represents that the collateral is free and clear of any third-party liens or claims;
F. An opinion is rendered that the repurchase agreement is a “repurchase agreement” as defined in the United States Bankruptcy Code; G. There is or will be a written agreement governing every repurchase transaction;
H. The City represents that it has no knowledge of any fraud involved in the repurchase transaction; and
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I. The City and the Trustee receive an opinion of counsel (which opinion shall be addressed to the City and the Trustee) that such repurchase agreement is legal, valid and binding and enforceable against the provider in accordance with its terms. (9) State Obligations
(a) Direct general obligations of any state of the United States or any subdivision or agency thereof to which is pledged the full faith and credit of a state the unsecured general obligation debt of which is rated “A2” by Moody’s and “A” by S&P, or better, or any obligation fully and unconditionally guaranteed by any state, subdivision or agency whose unsecured general obligation debt is so rated.
(b) Direct, general short -term obligations of any state agency or subdivision described in (a) above and rated “A-1+” by S&P and “Prime-1” by Moody’s. (c) Special Revenue Bonds (as defined in the United States Bankruptcy Code) of any state, state agency or subdivision described in (a) above and rated “AA” or better by S&P and “Aa2” or better by Moody’s.
(10) Local Agency Investment Fund.
(11) Investment agreements with a domestic or foreign bank or corporation (other than a life or property casualty insurance company) the long -term debt of which, or, in the case of a guaranteed corporation the long -term debt of the guarantor, or in the case of a monoline financial guaranty insurance company the claims paying ability of the guarantor, is rated at least “AA” by S&P and “Aa2” by Moody’s; provided, that prior written notice of an investment in the investment agreement is provided to S&P and, provided, further, by the terms of the investment agreement:
(a) interest payments are to be made to the Trustee at times and in amounts as necessary to pay debt service on the Bonds;
(b) the invested funds are available for withdrawal without penalty or premium, at any time for purposes identified in this Indenture other than acquisition of alternative investment property upon not more than seven days prior notice (which notice may be amended or withdrawn at any time prior to the specified withdrawal date); provided that the Indenture specifically requires the Trustee or the City to give notice in accordance with the terms of the investment agreement so as to receive funds thereunder with no penalty or premium paid; (c) the investment agreement shall state that it is the unconditional and general obligation of, and is not subordinated to any other obligation of, the provider thereof; (d) a guaranteed rate of interest is to be paid on invested funds and all future deposits, if any, required to be made to restore the amount of such funds to the level specified under the Indenture;
(e) the Trustee and the City receive the opinion of domestic counsel (which opinion shall be addressed to the City) that such investment agreement is legal, valid and binding and enforceable against the provider in accordance with its terms and of foreign counsel (if applicable);
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(f) the investment agreement shall provide that if during its term: (A) the provider’s or the guarantor’s rating by either Moody’s or S&P is withdrawn or suspended or falls below “AA” or “Aa2”, respectively, or, with respect to a foreign bank, below the ratings of such provider at the delivery date of the investment agreement, the provider must, at the direction of the City or the Trustee (acting at the direction of the City) within 10 days of receipt of such direction, either: (1) collateralize the investment agreement by delivering or transferring in accordance with applicable state and federal laws (other than by means of entries on the provider’s books) to the Trustee, the City or a Holder of the Collateral, United States Treasury Obligations which are free and clear of any third -party liens or claims at the Collateral Levels set forth below; or (2) repay the principal of and accrued but unpaid interest on the investment (the choice of (1) or (2) above shall be that of the City or Trustee (acting at the direction of the City), as appropriate); and (B) the provider’s or the guarantor’s rating by either Moody’s or S&P is withdrawn or suspended or falls below “A” or “A2,” or, with respect to a foreign bank, below “AA” or “Aa2” by S&P or Moody’s, as appropriate, the provider must, at the direction of the City or the Trustee (acting at the direction of the City), within 10 days of receipt of such direction, repay the principal of and accrued but unpaid interest on the investment, in either case with no penalty or premium to the City or Trustee; (g) the investment agreement shall state, and an opinion of counsel shall be rendered to the effect, that the Trustee has a perfected first priority security interest in the collateral, any substituted collateral and all proceeds thereof (in the case of bearer securities, this means the Trustee is in possession); and
(h) the investment agreement must provide that if during its term: (A) the provider shall default in its payment obligations, the provider’s obligation under the investment agreement shall, at the direction of the City or the Trustee, be accelerated and amounts invested and accrued but unpaid interest thereon shall be repaid to the City or Trustee, as appropriate; and (B) the provider shall become insolvent, not pay its debts as they become due, be declared or petition to be declared bankrupt, etc. (“ event of insolvency ”), the provider’s obligations shall automatically be accelerated and amounts invested and accrued but unpaid interest thereon shall be repaid to the City or Trustee, as appropriate.
(12) Pre-refunded municipal obligations rated “AAA” by S&P and “Aaa” by Moody’s meeting the following requirements:
(a) the municipal obligations are: (i) not subject to redemption prior to maturity; or (ii) the trustee for the municipal obligations has been given irrevocable instructions concerning their call and redemption and the issuer of the municipal obligations has covenanted not to redeem such municipal obligations other than as set forth in such instructions; (b) the municipal obligations are secured by cash or United States Treasury Obligations which may be applied only to payment of the principal of, interest and premium on such municipal obligations;
(c) the principal of and interest on the United States Treasury Obligations (plus any cash in the escrow) has been verified by the report of independent certified public accountants to be sufficient to pay in full all principal of, interest, and premium, if any, due and to become due on the municipal obligations (“Verification”); 923
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(d) the cash or United States Treasury Obligations serving as security for the municipal obligations are held by an escrow agent or trustee in trust for owners of the municipal obligations;
(e) no substitution of a United States Treasury Obligation shall be permitted except with another United States Treasury Obligation and upon delivery of a new Verification; and
(f) the cash or the United States Treasury Obligations are not available to satisfy any other claims, including those by or against the trustee or escrow agent.
Collateral Levels For United States Treasury Obligations Remaining Maturity
Frequency of
Valuation
1 year
or less
5 years
or less
10 years
or less
15 years
or less
30 years
or less
Daily 102 105 106 108 114
Weekly 103 111 112 114 120
Monthly 105 117 120 125 133
Quarterly 107 120 130 133 140
Further Requirements: (a) On each valuation date, the City, or the custodian who shall confirm to the City and the Trustee, shall value the market value (exclusive of accrued interest) of the collateral, which market value will be an amount equal to the requisite collateral percentage times the principal amount of the investment (including unpaid accrued interest thereon) that is being secured; (b) in the event the collateral level is below its collateral percentage on a valuation date, such percentage shall be restored within the following restoration periods: one Business Day for daily valuations, two Business Days for weekly and monthly valuations, and one month for quarterly valuations (the use of different restoration periods affect the requisite collateral percentage); (c) the City or the Trustee (acting at the direction of the City) shall terminate the repurchase agreement or the investment agreement, as the case may be, upon a failure to maintain the requisite collateral percentage after the restoration period and, if not paid by the counterparty in federal funds against transfer of the collateral, liquidate the collateral.
The Trustee shall have no responsibility to monitor the ratings of Permitted Investments after the initial purchase of such Permitted Investments.
“Person” means an individual, corporation, firm, association, partnership, trust, or other legal entity or group of entities, including a governmental entity or any agency or political subdivision thereof.
“Principal Fund” means the fund by that name established in accordance with Section 5.02 hereof.
“Project” means the acquisition, construction and/or installation of the Series 2025A Project and such other capital facilities that may be financed from proceeds of Additional Bonds as set forth in a Supplemental Indenture.
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“Rebate Fund” means the fund by that name established in accordance with Section 5.05 hereof.
“Rebate Requirement” has the meaning ascribed thereto in the Tax Certificate. “Record Date ” means the fifteenth day of the month next preceding an Interest Payment Date, whether or not such day is a Business Day.
“Redemption Fund ” means the fund by that name established in accordance with Section 5.02 hereof.
“Redemption Price” means the aggregate amount of principal of and premium, if any, on the Bonds upon the redemption thereof pursuant hereto.
“Registration Books” means the records maintained by the Trustee for the registration of ownership and registration of transfer of the Bonds pursuant to Section 2.05 hereof. “Rental Payments ” means, collectively, the Base Rental Payments and the Additional Rental Payments.
“Rental Period ” means the period from the Closing Date through October 31, 2025 and, thereafter, the twelve-month period commencing on November 1 of each year during the term of the Lease Agreement.
“Representation Letter” means the Letter of Representations from the Authority to DTC, or any successor securities depository for any Series of Book -Entry Bonds, in which the Authority makes certain representations with respect to issues of its securities for deposit by DTC or such successor depository.
“S&P” means S&P Global Ratings, a Standard & Poor’s Financial Services LLC business , its successors and assigns, except that if such entity shall no longer perform the functions of a securities rating agency for any reason, the term “S&P” shall be deemed to refer to any other nationally recognized securities rating agency selected by the Authority. “Securities Depositories” means The Depository Trust Company; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other securities depositories as the Authority may designate in a Written Certificate of the Authority delivered to the Trustee.
“Series” means the Series 2025A Bond s executed, authenticated and delivered on the Closing Date and identified pursuant to this Indenture and any Additional Bonds issued pursuant to a Supplemental Indenture and identified as a separate Series of Bonds. “Series 2025A Bond Insurer” means, _______________, or any successor thereto or assignee thereof.
“Series 2025A Bonds” means the Ontario Public Financing Authority 2025A Lease Revenue Refunding Bonds issued hereunder.
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“Series 2025A Insurance Policy ” means _____________ issued by the Series 2025A Bond Insurer guaranteeing the scheduled payment of principal and interest on the Insured Series 2025A Bonds when due.
“Series 2025A Project” means the acquisition, construction and/or installation of the capital facilities described in Exhibit C hereto.
“Supplemental Indenture ” means any supplemental indenture amendatory of or supplemental to this Indenture, but only if and to the extent that such Supplemental Indenture is specifically authorized hereunder.
“Tax Certificate” means the Tax Certificate executed by the Authority and the City at the time of issuance of the Series 2025A Bonds relating to the requirements of Section 148 of the Code, as originally executed and as it may from time to time be amended in accordance with the provisions thereof.
“Trustee” means Zions Bancorporation, National Association, a national banking association duly organized and existing under and by virtue of the laws of the United States, or any successor thereto as Trustee hereunder, appointed as provided herein. “Written Certificate of the Authority ” and “ Written Request of the Authority ” mean, respectively, a written certificate or written request signed in the name of the Authority by an Authorized Authority Representative. Any such certificate or request may, but need not, be combined in a single instrument with any other instrument, opinion or representation, and the two or more so combined shall be read and construed as a single instrument. “Written Certificate of the City” and “Written Request of the City” mean, respectively, a written certificate or written request signed in the name of the City by an Authorized City Representative. Any such certificate or request may, but need, not, be combined in a single instrument with any other instrument, opinion or representation, and the two or more so combined shall be read and construed as a single instrument.
Section 1.02 Equal Security . In consideration of the acceptance of the Bonds by the Owners thereof, this Indenture shall be deemed to be and shall constitute a contract among the Authority, the City, the Trustee and the Owners from time to time of all Bonds authorized, executed, issued and delivered hereunder and then Outstanding to secure the full and final payment of the principal of, premium, if any, and interest on all Bonds which may from time to time be authorized, executed, issued and delivered hereunder, subject to the agreements, conditions, covenants and provisions contained herein; and all agreements and covenants set forth herein to be performed by or on behalf of the Authority or the City shall be for the equal and proportionate benefit, protection and security of all Owners of the Bonds without distinction, preference or priority as to security or otherwise of any Bonds over any other Bonds by reason of the number or date thereof or the time of authorization, sale, execution, issuance or delivery thereof or for any cause whatsoever, except as expressly provided herein or therein.
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ARTICLE II
THE BONDS
Section 2.01 Authorization of Bonds . The Authority hereby authorizes the issuance of the Bonds under and subject to the terms of this Indenture and applicable laws of the State of California for the purpose of financing the Project. The Bonds may consist of one or more Series of Bonds of varying denominations, dates, maturities, interest rates and other provisions, subject to the provisions and conditions contained herein.
Section 2.02 Terms of Series 2025A Bonds.
(a) The Series 2025A Bond s shall be designated the “Ontario Public Financing Authority 2025A Lease Revenue Bonds.” Each Series of Additional Bonds shall bear such additional designation as may be necessary or appropriate to distinguish such Series from every other Series, of Bonds.
(b) The Series 2025A Bond s shall be issued in fully registered form without coupons in Authorized Denominations, so long as no Series 2025A Bond shall have more than one maturity date. The Series 2025A Bonds shall be dated as of the Closing Date, shall be issued in the aggregate principal amount of $ ___________, shall mature on November 1 of each year and shall bear interest (calculated on the basis of a 360 -day year comprised of twelve 30 -day months) at the rates per annum as follows:
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Maturity Date
(November 1)
Principal
Amount Interest Rate
(c) Interest on the Series 2025A Bond s shall be payable from the Interest Payment Date next preceding the date of authentication thereof unless: (i) a Series 2025A Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it shall bear interest from such Interest Payment Date; (ii) a Series 2025A Bond is authenticated on or before the first Record Date, in which event interest thereon shall be payable from the dated date thereof; or (iii) interest on any Series 2025A Bond is in default as of the date of authentication thereof, in which event interest thereon shall be payable from the date to which interest has been paid in full, payable on each Interest Payment Date. Interest shall be paid in lawful money of the United States on each Interest Payment Date to the Persons in whose names the ownership of the Series 2025A Bonds is registered on the Registration Books at the close of business on the immediately preceding Record Date, except as provided below. Interest shall be paid by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Series 2025A Bond Owners at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date.
(d) The principal and premium, if any, of the Series 2025A Bond s shall be payable in lawful money of the United States of America upon presentation and surrender thereof upon maturity or earlier redemption at the Office of the Trustee. (e) The Series 2025A Bond s shall be subject to redemption as provided in Article IV.
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Section 2.03 Form of Series 2025A Bond s. The Series 2025A Bond s shall be in substantially the form set forth in Exhibit A hereto, with appropriate or necessary insertions, omissions and variations as permitted or required hereby.
Section 2.04 Transfer and Exchange of Bonds . Any Bond may, in accordance with its terms, be transferred upon the Registration Books by the Person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a written instrument of transfer, duly executed in a form acceptable to the Trustee. Whenever any Bond or Bonds shall be surrendered for transfer, the Authority shall execute and the Trustee shall authenticate and shall deliver a new Bond or Bonds of the same Series in a like aggregate principal amount, in any Authorized Denomination. The Trustee shall require the Bond Owner requesting such transfer to pay any tax or other governmental charge required to be paid with respect to such transfer.
The Bonds may be exchanged at the Office of the Trustee for a like aggregate principal amount of Bonds of the same Series of other authorized denominations. The Trustee shall require the payment by the Bond Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange.
The Trustee shall not be obligated to make any transfer or exchange of Bonds of a Series pursuant to this Section during the period established by the Trustee for the selection of Bonds of such Series for redemption, or with respect to any Bonds of such Series selected for redemption.
Section 2.05 Registration Books. The Trustee will keep or cause to be kept, at the Office of the Trustee, sufficient records for the registration and transfer of ownership of the Bonds, which shall be open to inspection during regular business hours and upon reasonable notice by the City; and, upon presentation for such purpose, the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on such records, the ownership of the Bonds as hereinbefore provided.
Section 2.06 Execution of Bonds. The Bonds shall be executed in the name and on behalf of the Authority with the facsimile signature of an Authorized Officer of the Authority attested by the manual or facsimile signature of the Secretary of the Authority. The Bonds shall then be delivered to the Trustee for authentication by it. In case any of such officers of the Authority who shall have signed or attested any of the Bonds shall cease to be such officers of the Authority before the Bonds so signed or attested shall have been authenticated or delivered by the Trustee, or issued by the Authority, such Bonds may nevertheless be authenticated, delivered and issued and, upon such authentication, delivery and issue, shall be as binding upon the Authority as though those who signed and attested the same had continued to be such officers of the Authority, and also any Bonds may be signed and attested on behalf of the Authority by such Persons as at the actual date of execution of such Bonds shall be the proper officers of the Authority although at the nominal date of such Bonds any such Person shall not have been such officer of the Authority.
Section 2.07 Authentication of Bonds . Only such of the Bonds as shall bear thereon a certificate of authentication substantially in the form as that set forth in Exhibit A hereto, manually executed by the Trustee, shall be valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of or on behalf of the Trustee shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this Indenture.
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Section 2.08 Temporary Bonds. The Bonds of a Series may be issued in temporary form exchangeable for definitive Bonds of such Series when ready for delivery. Any temporary Bonds may be printed, lithographed or typewritten, shall be of such authorized denominations as may be determined by the Authority, shall be in fully registered form without coupons and may contain such reference to any of the provisions of this Indenture as may be appropriate. Every temporary Bond shall be executed by the Authority and authenticated by the Trustee upon the same conditions and in substantially the same manner as the definitive Bonds. If the Authority issues temporary Bonds of a Series it will execute and deliver definitive Bonds of such Series as promptly thereafter as practicable, and thereupon the temporary Bonds of such Series may be surrendered, for cancellation, at the Office of the Trustee and the Trustee shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of such Series in Authorized Denominations. Until so exchanged, the temporary Bonds of such Series shall be entitled to the same benefits under this Indenture as definitive Bonds of such Series authenticated and delivered hereunder.
Section 2.09 Bonds Mutilated, Lost, Destroyed or Stolen . If any Bond shall become mutilated, the Authority, at the expense of the Owner of said Bond, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor and Series in exchange and substitution for the Bond so mutilated, but only upon surrender to the Trustee of the Bond so mutilated. Every mutilated Bond so surrendered to the Trustee shall be canceled by it and delivered to, or in accordance with the order of, the Authority. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee and, if such evidence and indemnity satisfactory to the Trustee shall be given, the Authority, at the expense of the Owner, shall execute, and the Trustee shall thereupon authenticate and deliver, a new Bond of like tenor and Series in lieu of and in replacement for the Bond so lost, destroyed or stolen (or if any such Bond shall have matured or shall have been selected for redemption, instead of issuing a replacement Bond, the Trustee may pay the same without surrender thereof). The Authority may require payment by the Owner of a sum not exceeding the actual cost of preparing each replacement Bond issued under this Section and of the expenses which may be incurred by the Authority and the Trustee. Any Bond of a Series issued under the provisions of this Section in lieu of any Bond of such Series alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the Authority whether or not the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be entitled to the benefits of this Indenture with all other Bonds of such Series secured by this Indenture.
Section 2.10 Book-Entry Bonds.
(a) Prior to the issuance of a Series of Bonds, the Authority may provide that such Series of Bonds shall initially be issued as Book -Entry Bonds and, in such event, the Bonds of such Series for each maturity shall be in the form of a separate single fully registered Bond (which may be typewritten). The Series 2025A Bonds shall initially be issued as Book-Entry Bonds.
Except as provided in subsection (c) of this Section, the registered Owner of all of the Book - Entry Bonds shall be Cede & Co., as nominee of DTC. Notwithstanding anything to the contrary contained in this Indenture, payment of interest with respect to any Book-Entry Bond registered as of each Record Date in the name of Cede & Co. shall be made by wire transfer of same-day funds to the account of Cede & Co. on the Interest Payment Date at the address indicated on the Record Date for Cede & Co. in the Registration Books or as otherwise provided in the Representation Letter. 930
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(b) The Trustee and the Authority may treat DTC (or its nominee) as the sole and exclusive Owner of Book -Entry Bonds registered in its name for the purposes of payment of the principal, premium, if any, or interest with respect to Book -Entry Bonds, selecting Book -Entry Bonds or portions thereof to be redeemed, giving any notice permitted or required to be given to Owners of Book -Entry Bonds under this Indenture, registering the transfer of Book -Entry Bonds, obtaining any consent or other action to be taken by Owners of Book -Entry Bonds and for all other purposes whatsoever, and neither the Trustee nor the Authority shall be affected by any notice to the contrary. Neither the Trustee nor the Authority shall have any responsibility or obligation to any Participant, any person claiming a beneficial ownership interest in Book -Entry Bonds under or through DTC or any Participant, or any other person which is not shown on the Registration Books as being an Owner, with respect to the accuracy of any records maintained by DTC or any Participant, the payment by DTC or any Participant of any amount in respect of the principal, premium, if any, or interest with respect to Book -Entry Bonds, any notice which is permitted or required to be given to Owners of Book -Entry Bonds under this Indenture, the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of Book -Entry Bonds, or any consent given or other action taken by DTC as Owner of Book -Entry Bonds. The Trustee shall pay all principal, premium, if any and interest with respect to Book -Entry Bonds, only to DTC, and all such payments shall be valid and effective to fully satisfy and discharge the Authority’s obligations with respect to the principal, premium, if any, and interest with respect to the Book-Entry Bonds to the extent of the sum or sums so paid. Except under the conditions of subsection (c) of this Section, no person other than DTC shall receive an executed Book -Entry Bond for each separate stated maturity. Upon delivery by DTC to the Trustee of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions herein with respect to record dates, the term “Cede & Co.” in this Indenture shall refer to such new nominee of DTC.
(c) In the event that: (i) DTC, including any successor as securities depository for a Series of Bonds, determines not to continue to act as securities depository for such Series of Bonds; or (ii) the Authority determines that the incumbent securities depository shall no longer so act, and delivers a written certificate to the Trustee to that effect, then the Authority will discontinue the book-entry system with the incumbent securities depository for such Series of Bonds. If the Authority determines to replace the incumbent securities depository for such Series of Bonds with another qualified securities depository, the Authority shall prepare or direct the preparation of a new single, separate fully registered Bond of such Series for the aggregate outstanding principal amount of Bonds of such Series of each maturity, registered in the name of such successor or substitute qualified securities depository, or its nominee, or make such other arrangement acceptable to the Authority, the Trustee and the successor securities depository for the Bonds of such Series as are not inconsistent with the terms of this Indenture. If the Authority fails to identify another qualified successor securities depository for such Series of Bonds to replace the incumbent securities depository, then the Bonds of such Series shall no longer be restricted to being registered in the Registration Books in the name of the incumbent securities depository or its nominee, but shall be registered in whatever name or names the incumbent securities depository for such Series of Bonds, or its nominee, shall designate. In such event the Authority shall execute, and deliver to the Trustee, a sufficient quantity of Bonds of such Series to carry out the transfers and exchanges provided in Sections 2.04, 2.08 and 2.09 hereof. All such Bonds of such Series shall be in fully registered form in Authorized Denominations.
(d) Notwithstanding any other provision of this Indenture to the contrary, so long as any Book-Entry Bond is registered in the name of DTC, or its nominee, all payments with respect 931
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to the principal, premium, if any, and interest with respect to such Book -Entry Bond and all notices with respect to such Book -Entry Bond shall be made and given, respectively, as provided in the Representation Letter.
(e) In connection with any notice or other communication to be provided to Owners of Book -Entry Bonds pursuant to this Indenture by the Authority, the City or the Trustee with respect to any consent or other action to be taken by Owners, the Authority, the City or the Trustee, as the case may be, shall establish a record date for such consent or other action and give DTC notice of such record date not less than 15 calendar days in advance of such record date to the extent possible.
ARTICLE III
ISSUANCE OF BONDS; APPLICATION OF PROCEEDS
Section 3.01 Issuance of Series 2025A Bond s. The Authority may, at any time, execute the Series 2025A Bond s for issuance hereunder and deliver the same to the Trustee. The Trustee shall authenticate the Series 2025A Bond s and deliver the Series 2025A Bond s to the original purchaser thereof upon receipt of a Written Request of the Authority and upon receipt of the purchase price therefor.
Section 3.02 Application of Proceeds of the Series 2025A Bonds. On the Closing Date, the proceeds of the sale of the Series 2025A Bonds received by the Trustee, $ ____________ (being the principal amount of $ _____________, [plus/less] [net] original issue [premium/discount] of $_____________, less an underwriter’s discount of $___________, and less $____________ paid by the Participating Underwriter of the Series 202 5A Bonds on behalf of the Authority directly to the Series 2025A Bond Insurer), shall be deposited by the Trustee as follows:
(a) The Trustee shall deposit the amount of $ _______ in the 2025A Costs of Issuance Account.
(b) The Trustee shall transfer the amount of $____________ to the Project Fund.
Section 3.03 Costs of Issuance Fund. The Trustee shall establish and maintain a separate fund designated the “Costs of Issuance Fund,” and within such fund the “ 2025A Costs of Issuance Account.” On the Closing Date, there shall be deposited in the 2025A Costs of Issuance Account the amount specified in Section 3.02 hereof. There shall be additionally be deposited in the Costs of Issuance Fund the portion, if any, of the proceeds of the sale of any Additional Bonds required to be deposited therein under the Supplemental Indenture pursuant to which such Additional Bonds are issued.
The moneys in the Costs of Issuance Fund shall be used and withdrawn by the Trustee from time to time to pay the Costs of Issuance upon submission of a Written Request of the Authority stating: (a) the Person to whom payment is to be made; (b) the amount to be paid, together with payment instructions; (c) the purpose for which the obligation was incurred; (d) that such payment is a proper charge against the Costs of Issuance Fund; and (e) that such amounts have not been the subject of a prior disbursement f rom the Costs of Issuance Fund, in each case together with a statement or invoice for each amount requested thereunder. Each such Written Request of the Authority shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have 932
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no duty to confirm the accuracy of such facts. [On the date that is six months after the Closing Date, all amounts, if any, remaining in the 2025A Costs of Issuance Account shall be withdrawn therefrom by the Trustee and transferred to the Interest Fund, and the 2025A Costs of Issuance Account shall be closed.] Section 3.04 Project Fund . The Trustee shall establish, maintain and hold in trust a separate fund designated as the “ Project Fund” and within such fund the “2025A Project Account.” On the Closing Date, there shall be deposited in the 2025A Project Account the amount specified in Section 3.02 hereof. There shall be additionally deposited in the Project Fund the portion, if any, of the proceeds of the sale of any Additional Bonds required to be deposited therein under the Supplemental Indenture pursuant to which such Additional Bonds are issued.
The moneys in the Project Fund or the accounts therein shall be disbursed by the Trustee on behalf of the City as specified in a Written Request of the City in the form attached hereto as Exhibit B. Each Written Request of the City shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have no duty to confirm the accuracy of such facts. On the date on which the City determines that amounts in the Project Fund are no longer necessary for payment of the cost of the Project s, the City shall submit a Written Request to the Trustee to transfer any remaining balance in the Project Fund not needed for Project Fund purposes, at the City’s sole discretion, either (a) to t he Base Rental Payment Fund for application in accordance with Section
5.02 hereof, or (b) to the City for use on eligible capital facilities, and the Project Fund shall be closed.
[Investment earnings on amounts on deposit in the Project Fund shall remain on deposit in the Project Fund for application in accordance with this Section.] Section 3.05 Conditions for the Issuance of Additional Bonds . The Authority may at any time issue one or more Series of Additional Bonds (in addition to the Series 2025A Bond s) payable from Base Rental Payments as provided herein on a parity with all other Bonds theretofore issued hereunder, but only subject to the following conditions, which are hereby made conditions precedent to the issuance of such Additional Bonds:
(a) The issuance of such Additional Bonds shall have been authorized under and pursuant hereto and shall have been provided for by a Supplemental Indenture which shall specify the following:
(1) The application of the proceeds of the sale of such Additional Bonds; (2) The principal amount and designation of such Series of Additional Bonds and the denomination or denominations of the Additional Bonds; (3) The date, the maturity date or dates, the interest payment dates and the dates on which mandatory sinking fund redemptions, if any, are to be made for such Additional Bonds; provided, however, that: (i) the serial Bonds of such Series of Additional Bonds shall be payable as to principal annually on November 1 of each year in which principal falls due, and the term Bonds of such Series of Additional Bonds shall have annual mandatory sinking fund redemptions on November 1; (ii) the Additional Bonds shall be p ayable as to interest semiannually on May 1 and November 1 of each year, except that the first installment of interest may be payable on either May 1 or November 1 and shall be for a period of not longer than twelve months and the interest shall be payable thereafter semiannually on May 1 and November 1; (iii) all Additional 933
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Bonds of a Series of like maturity shall be identical in all respects, except as to number or denomination; and (iv) serial maturities of serial Bonds or mandatory sinking fund redemptions for term Bonds, or any combination thereof, shall be established to provide for the redemption or payment of such Additional Bonds on or before their respective maturity dates; (4) The redemption premiums and terms, if any, for such Additional Bonds;
(5) The form of such Additional Bonds;
(6) Such other provisions that are appropriate or necessary and are not inconsistent with the provisions hereof;
(b) The Authority shall be in compliance with all agreements, conditions, covenants and terms contained herein, in the Lease Agreement and in the Ground Lease required to be observed or performed by it;
(c) The City shall be in compliance with all agreements, conditions, covenants and terms contained herein, in the Lease Agreement and in the Ground Lease required to be observed or performed by it; and
(d) The Ground Lease and the Lease Agreement shall have been amended, to the extent necessary, (i) so as to increase the Base Rental Payments payable by the City thereunder by an aggregate amount equal to the principal of and interest on such Additional Bonds, payable at such times and in such manner as may be necessary to provide for the payment of the principal of and interest on such Additional Bonds; provided, however, that no such amendment shall be made such that the sum of Base Rental Payments, including any increase in the Base Rental Payments as a result of such amendment, plus Additional Rental Payments, in any Rental Period shall be in excess of the annual fair rental value of the Property after taking into account the use of the proceeds of any Additional Bonds issued in connection therewith (evidence of the satisfaction of such condition shall be made by a Written Certificate of the City) ; and (ii) to include provisions for the prepayment of Base Rental Payments attributable to such Additional Bonds.
Nothing contained herein shall limit the issuance of any bonds or other obligations payable from Base Rental Payments if, after the issuance and delivery of such bonds or other obligations, none of the Bonds theretofore issued hereunder will be Outstanding.
Section 3.06 Procedure for the Issuance of Additional Bonds. At any time after the sale of any Additional Bonds in accordance with the Act, such Additional Bonds shall be executed by the Authority for issuance hereunder and shall be delivered to the Trustee and thereupon shall be authenticated and delivered by the Trustee, but only upon receipt by the Trustee of the following:
(a) Certified copies of the Supplemental Indenture authorizing the issuance of such Additional Bonds, the amendment to the Lease Agreement required by Section 3.05 hereof and the amendment to the Ground Lease, if any, required by Section 3.05 hereof, together with satisfactory evidence that such amendment to the Lease Agreement and such amendment to the Ground Lease, if any, have been duly recorded;
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(b) A Written Request of the Authority as to the delivery of such Additional Bonds;
(c) An opinion of Bond Counsel substantially to the effect that: (i) the Indenture (including all Supplemental Indentures), the Lease Agreement (including the amendment thereto required by Section 3.05 hereof) and the Ground Lease (including any amendment thereto required by Section 3.05 hereof) have been duly authorized, executed and delivered by, and constitute the valid and binding obligations of, the Authority and the City, enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by the application of equitable principles and by the exercise of judicial discretion in appropriate cases and subject to the limitations on legal remedies against political subdivisions in the State of California); and (ii) such Additional Bonds constitute valid and binding special obligations of the Authority payable solely from Base Rental Payments as provided herein and are enforceable in accordance with their terms (except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by the application of equitable principles and by the exercise of judicial discretion in appropriate cases and subject to the limitations on legal remedies against political subdivisions in the State of California);
(d) a Written Certificate of the Authority that the requirements of Section 3.05 hereof have been met;
(e) a Written Certificate of the City that the requirements of Section 3.05 hereof and Sections 5.01 and 5.02 of the Lease Agreement have been met, and a Written Certificate of the City that the annual fair rental value of the Property is at least equal to the total Base Rental Payments, after giving effect to the issuance of the Additional Bonds, and to the use of proceeds received therefrom, including any capitalized interest; and (f) Such further documents as are required by the provisions hereof or by the provisions of the Supplemental Indenture authorizing the issuance of such Additional Bonds.
Section 3.07 Additional Bonds . So long as any of the Bonds remain Outstanding, the Authority shall not issue any Additional Bonds or obligations payable from the Base Rental Payments, except pursuant to Sections 3.05 and 3.06 hereof.
ARTICLE IV
REDEMPTION OF BONDS
Section 4.01 Redemption of Series 2025A Bonds.
(a) Extraordinary Redemption . The Series 2025A Bond s shall be subject to redemption, in whole or in part, on any date as directed by the City in a w ritten request provided to the Trustee not less than 30 days (or such lesser number of days acceptable to the Trustee, in the sole discretion of the Trustee) prior to such date, in Authorized Denominations, from and to the extent of any Net Insurance Proceeds received with respect to all or a portion of the Property, deposited by the Trustee in the Redemption Fund pursuant to Sections 5.03 and 5.04 hereof, at a Redemption Price equal to the principal amount of the Series 2025A Bond s to be redeemed, plus accrued interest thereon to the date of redemption, without premium.
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(b) Optional Redemption . The Series 2025A Bond s maturing on or after November 1, 20__, shall be subject to optional redemption, in whole or in part, on November 1, 20__ or any date thereafter, as directed by the City in a written request provided to the Trustee not less than 30 days (or such lesser number of days acceptable to the Trustee, in the sole discretion of the Trustee) prior to such date, in Authorized Denominations, from and to the extent of prepaid Base Rental Payments paid pursuant to subsection (a) of Section 7.02 of the Lease Agreement, at a Redemption Price equal to the principal amount of the Series 2025A Bond s to be redeemed, plus accrued interest thereon to the date of redemption, without premium. (c) Mandatory Sinking Fund Redemption . The Series 2025A Bond s with stated maturities on November 1, 20 __ are subject to mandatory sinking fund redemption in part (by lot) on each November 1 on and after November 1, 20__, in integral multiples of $5,000 at a Redemption Price of the principal amount thereof plus accrued interest to the date fixed for redemption, without premium, in accordance with the following schedule:
Redemption Date
(November 1)
Principal
Amount
* Maturity.
The Series 2025A Bond s with stated maturities on November 1 , 20 __ are subject to mandatory sinking fund redemption in part (by lot) on each November 1 on and after November 1, 20__, in integral multiples of $5,000 at a Redemption Price of the principal amount thereof plus accrued interest to the date fixed for redemption, without premium, in accordance with the following schedule:
Redemption Date
(November 1)
Principal
Amount
* Final Maturity.
If, during the Fiscal Year immediately preceding one of the redemption dates specified above, the Authority purchases Series 2025A Bonds, at least 45 days prior to the redemption date, the Authority shall notify the Trustee as to the principal amount purchased and the amount of Series 2025A Bonds so purchased shall be credited at the time of purchase, to the extent of the full principal amount thereof, to reduce such upcoming mandatory sinking fund redemption payment for the Series 2025A Bonds so purchased. All Series 2025A Bonds purchased pursuant to this subsection shall be cancelled pursuant to Section 11.09.
In the event of a redemption pursuant to Section 4.01(a) or (b) or in the event of the purchase of Series 2025A Bond s, the City shall provide the Trustee with a revised mandatory sinking fund schedule giving effect to the redemption so completed.
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Section 4.02 Notice of Redemption . The Trustee on behalf and at the expense of the Authority shall mail (by first class mail) notice of any redemption to the respective Owners of any Bonds designated for redemption at their respective addresses appearing on the Registration Books, to the Securities Depositories and to one or more Information Services, at least 20 but not more than 60 days prior to the date fixed for redemption. Such notice shall state the date of the notice, the redemption date, the redemption place and the Redemption Price and shall designate the CUSIP numbers, the Bond numbers and the maturity or maturities (except in the event of redemption of all of the Bonds of such maturity or maturities in whole) of the Bonds to be redeemed, and shall require that such Bonds be then surrendered at the Office of the Trustee for redemption at the Redemption Price, giving notice also that further interest on such Bonds will not accrue from and after the date fixed for redemption. Such notice may state that such redemption is conditioned upon sufficient funds being on deposit on the redemption date to redeem the Bonds so called for redemption. Such notice of redemption may also state that no representation is made as to the accuracy or correctness of the CUSIP numbers printed therein or on the Bonds. Neither the failure to receive any notice so mailed, nor any defect in such notice, shall affect the validity of the proceedings for the redemption of the Bonds or the cessation of accrual of interest thereon from and after the date fixed for redemption.
With respect to any notice of optional redemption of the Bonds, such notice may state that such redemption shall be conditional upon the receipt by the Trustee, on or prior to the date fixed for such redemption, of moneys sufficient to pay the principal of, premium if any, and interest on the Bonds to be redeemed and upon other conditions set forth therein and that, if such money shall not have been so received or such other conditions shall not have been satisfied for any reason , said notice shall be of no force and effect and the Trustee shall not be required to redeem such Bonds. If any condition stated in the redemption notice for an optional redemption shall not have been satisfied on or prior to the redemption date: (i) the redemption notice shall be of no force and effect, (ii) the Authority shall not be required to redeem such Bonds, (iii) the redemption shall not be made, and (iv) the Trustee shall within a reasonable time thereafter give notice to the persons in the manner in which the conditional redemption notice was given that such condition or conditions were not met and that the redemption was canceled.
Section 4.03 Selection of Bonds for Redemption . Whenever provision is made in this Indenture for the redemption of less than all of the Bonds, the Trustee shall select the Bonds to be redeemed from all Bonds not previously called for redemption: (a) with respect to any optional redemption of Bonds of a Series, among maturities of Bonds of such Series as directed in a Written Request of the Authority; (b) with respect to any redemption pursuant to Section 4.01(a) hereof and the corresponding provision of any Supplemental Indenture pursuant to which Additional Bonds are issued, among maturities of all Series of Bonds on a pro rata basis as nearly as practicable; and (c) with respect to any other redemption of Additional Bonds, among maturities as provided in the Supplemental Indenture pursuant to which such Additional Bonds are issued, and by lot among Bonds of the same Series with the same maturity in any manner which the Trustee in its sole discretion shall deem appropriate and fair. For purposes of such selection, all Bonds shall be deemed to be comprised of separate $5,000 denominations and such separate denominations shall be treated as separate Bonds which may be separately redeemed.
Section 4.04 Partial Redemption of Bonds . Upon surrender of any Bonds redeemed in part only, the Authority shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of the same Series in authorized 937
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denominations equal in aggregate principal amount representing the unredeemed portion of the Bonds surrendered.
Section 4.05 Effect of Notice of Redemption . Notice having been mailed as aforesaid, and moneys for the Redemption Price, and the interest to the applicable date fixed for redemption, having been set aside in the Redemption Fund, the Bonds shall become due and payable on said date, and, upon presentation and surrender thereof at the Office of the Trustee, said Bonds shall be paid at the Redemption Price thereof, together with interest accrued and unpaid to said date.
If, on said date fixed for redemption, moneys for the Redemption Price of all the Bonds to be redeemed, together with interest to said date, shall be held by the Trustee so as to be available therefor on such date, and, if notice of redemption thereof shall have been mailed as aforesaid and not canceled, then, from and after said date, interest on said Bonds shall cease to accrue and become payable. All moneys held by or on behalf of the Trustee for the redemption of Bonds shall be held in trust for the account of the Owners of the Bonds so to be redeemed without liability to such Owners for interest thereon.
All Bonds paid at maturity or redeemed prior to maturity pursuant to the provisions hereof shall be canceled upon surrender thereof and destroyed.
ARTICLE V
SECURITY FOR BONDS; FLOW OF FUNDS; INVESTMENTS
Section 5.01 Pledge; Special Obligations. Subject only to the provisions of this Indenture permitting the application thereof for the purposes and on the terms and conditions set forth herein, all of the Base Rental Payments and any other amounts (including proceeds of the sale of the Bonds) held in the Base Rental Payment Fund, the Interest Fund, the Principal Fund and the Redemption Fund are hereby pledged to secure the payment of the principal of, premium, if any, and interest on the Bonds in accordance with their terms, the provisions of this Indenture and the Act. Said pledge shall constitute a first lien on such assets.
All obligations of the Authority under this Indenture shall be special obligations of the Authority, payable solely from Base Rental Payments and the other assets pledged therefor hereunder; provided, however, that all obligations of the Authority under the Bonds shall be special obligations of the Authority, payable solely from Base Rental Payments and the other assets pledged therefor hereunder. Neither the faith and credit nor the taxing power of the Authority, the City or the State of California, or any political subdivision thereof, is pledged to the payment of the Bonds. The Authority has not taxing power.
Section 5.02 Flow of Funds.
(a) The Trustee shall establish and maintain separate funds designated the “Base Rental Payment Fund,” the “Interest Fund,” the “Principal Fund,” the “Redemption Fund,” and the “Net Insurance Proceeds Fund.”
All Base Rental Payments shall be paid directly by the City to the Trustee, and if received by the Authority at any time shall be transferred by the Authority with the Trustee within 938
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one Business Day after the receipt thereof. All Base Rental Payments received by the Trustee shall be deposited by the Trustee in the Base Rental Payment Fund. (b) The Trustee shall transfer the amounts on deposit in the Base Rental Payment Fund, at the times and in the manner hereinafter provided, to the following respective funds:
(i) Interest Fund . On the Business Day immediately preceding each Interest Payment Date, the Trustee shall transfer from the Base Rental Payment Fund to the Interest Fund the amount, if any, necessary to cause the amount on deposit in the Interest Fund to be equal to the interest due on the Bonds on such Interest Payment Date. (ii) Principal Fund . On the Business Day immediately preceding each November 1, commencing November 1, 20 __, the Trustee shall transfer from the Base Rental Payment Fund to the Principal Fund the amount, if any, necessary to cause the amount on deposit in the Principal Fund to be equal to the principal amount of the Bonds due on such November 1 either as a result of the maturity thereof or mandatory sinking fund redemption payments required to be made with respect thereto. Moneys in the Principal Fund shall be used by the Trustee for the purpose of paying the principal of the Bonds when due and payable at their maturity dates or upon earlier mandatory sinking fund redemption.
(iii) Redemption Fund. The Trustee, on the redemption date specified in the Written Request of the City filed with the Trustee at the time that any prepaid Base Rental Payment is paid to the Trustee pursuant to the Lease Agreement, shall deposit in the Redemption Fund that amount of moneys representing the portion of the Base Rental Payments designated as prepaid Base Rental Payments. Additionally, the Trustee shall deposit in the Redemption Fund any amounts required to be deposited therein pursuant to Sections 5.03 or 5.04 hereof. Moneys in the Redemption Fund shall be used by the Trustee for the purpose of paying the principal of and interest and premium, if any, on Series 2025A Bonds redeemed pursuant to the provisions of subsections (a) and (b) of Section 4.01 hereof and Additional Bonds redeemed pursuant to the corresponding provisions of the Supplemental Indenture pursuant to which such Additional Bonds are issued; provided, however, that moneys deposited in the Redemption Fund may also be used to purchase Outstanding Series 2025A Bonds or Additional Bonds in the manner hereinafter provided. Purchases of Outstanding Series 2025A Bonds or Additional Bonds may be made by the Authority at public or private sale as and when and at such prices as the Authority may in its discretion determine, but only at prices (including brokerage or other expenses) not more than par plus accrued interest, plus, in the case of moneys set aside for an optional redemption or an extraordinary redemption, the premium applicable at the next following call date according to the premium schedule established pursuant to Sections 4.01(a) or (b), as applicable, or in the case of Additional Bonds the premium established in any Supplemental Indenture. Any accrued interest payable upon the purchase of Series 2025A Bonds or Additional Bonds may be paid from the amount reserved in the Interest Fund.
Section 5.03 Application of Net Insurance Proceeds . If the Property or any portion thereof shall be damaged or destroyed, subject to the further requirements of this Section, the City shall, as expeditiously as possible, continuously and diligently prosecute or cause to be prosecuted the repair or replacement thereof, unless the City elects not to repair or replace the Property or the affected portion thereof in accordance with the provisions hereof.
The Net Insurance Proceeds (other than Net Insurance Proceeds of rental interruption insurance), including the proceeds of any self -insurance, received on account of any damage or 939
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destruction of the Property or a portion thereof shall as soon as possible be deposited with the Trustee and be held by the Trustee in the Net Insurance Proceeds Fund and made available for and, to the extent necessary, shall be applied to the cost of repair or replacement of the Property or the affected portion thereof upon receipt of a Written Request of the City, together with invoices therefor. Each such Written Request of the City shall be sufficient evidence to the Trustee of the facts stated therein and the Trustee shall have no duty to confirm the accuracy of such facts. Pending such application, such proceeds may be invested by the Trustee as directed by the City in Permitted Investments that mature not later than such times moneys are expected to be needed to pay such costs of repair or replacement.
Notwithstanding the foregoing, the City shall, within 60 days of the occurrence of the event of damage or destruction, notify the Trustee in writing as to whether the City intends to replace or repair the Property or the portions of the Property which were damaged or destroyed. If the City does intend to replace or repair the Property or portions thereof, the City shall deposit with the Trustee the full amount of any insurance deductible to be credited to the Net Insurance Proceeds Fund.
In the event of any damage to or destruction of the Property caused by one of the perils covered by the insurance required by Section 5.01(c) of the Lease Agreement which would result in an abatement of rental payments or any portion thereof pursuant to Section 3. 06 thereof, then the City shall apply the Net Insurance P roceeds, together with other legally available funds that the City elects to contribute, to the repair, reconstruction or replacement of the damaged or destroyed portions of the Property; provided, however, that the City shall not be required to repair or replace any portion of the Property pursuant to this Section 5.03 if such Net Insurance Proceeds, together with any other amounts held under this Indenture and any other legally available funds made available by the City at its election, are suff icient to prepay: (i) all of the Outstanding Bonds; or (ii) a portion of the Outstanding Bonds such that the resulting Base Rental Payments under Section 4.01(a) in any Rental Period following such partial prepayment are sufficient to pay in such Rental Period the principal of and interest on all Bonds to remain Outstanding immediately after such partial redemption. If the City is not required to replace or repair the Property, or the affected portion thereof, or to use such amounts to redeem Bonds, in each case as set forth in this Section 5.03, then such proceeds shall, if there is first delivered to the Trustee a Written Certificate of the City to the effect that the annual fair rental value of the Property after such damage or destruction, and after any repairs or replacements made as a result of such damage or destruction, is at least equal to 100% of the maximum amount of Base Rental Payments becoming due under the Lease Agreement in the then current Rental Period or any subsequent Rental Period and the fair replacement value of the Property after such damage or destruction is at least equal to the principal amount of the Outstanding Bonds, be paid to the City to be used for any lawful purpose.
The proceeds of any award in eminent domain received in respect to the Property shall be deposited by the Trustee in the Redemption Fund and applied to the redemption of Bonds pursuant to subsection (a) of Section 4.01 hereof and the corresponding provisions of any Supplemental Indenture pursuant to which Additional Bonds are issued.
Section 5.04 Title Insurance . Proceeds of any policy of title insurance received by the Trustee in respect of the Property shall be applied and disbursed by the Trustee as follows:
(a) if the City determines that the title defect giving rise to such proceeds has not substantially interfered with its use and occupancy of the Property and will not result in an abatement 940
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of Rental Payments payable by the City under the Lease Agreement, such proceeds shall be remitted to the City upon written direction from the City and used for any lawful purpose thereof; or (b) if the City determines that the title defect giving rise to such proceeds has substantially interfered with its use and occupancy of the Property and will result in an abatement of Rental Payments payable by the City under the Lease Agreement, then the Trustee shall immediately deposit such proceeds in the Redemption Fund and such proceeds shall be applied to the redemption of Bonds in the manner provided in subsection (a) of Section 4.01 hereof and the corresponding provisions of any Supplemental Indenture pursuant to which Additional Bonds are issued, as directed in writing by the City.
Section 5.05 Rebate Fund.
(a) Establishment. The Trustee shall establish a fund for the Series 2025A Bonds designated the “Rebate Fund” when required in accordance herewith. Absent an Opinion of Counsel that the exclusion from gross income for federal income tax purposes of interest on the Series 2025A Bonds will not be adversely affected, the Authority shall cause to be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to this Section and the Tax Certificate.
All money at any time deposited in the Rebate Fund shall be held by the Trustee in trust for payment to the United States Treasury. All amounts on deposit in the Rebate Fund for the Series 2025A Bonds shall be governed by this Section and the Tax Certificate, unless and to the extent that the Authority delivers to the Trustee an opinion of Bond Counsel that the exclusion from gross income for federal income tax purposes of interest on the Series 2025A Bonds will not be adversely affected if such requirements are not satisfied. Notwithstanding anything to the contrary contained herein or in the Tax Certificate, the Trustee: (1 ) shall be deemed conclusively to have complied with the provisions thereof if it follows all Written Requests of the Authority or Written Requests of the City; (2) shall have no liability or responsibility to enforce compliance by the Authority or the City with the terms of the Tax Certificate and shall not be deemed to have knowledge of the terms thereof ; (3) may rely conclusively on the Authority’s or the City’s calculations and determinations and certifications relating to rebate matters; and ( 4) shall have no responsibility to independently make any calculations or determinations or to review the Authority’s or the City’s calculations or determinations thereunder.
(i) Computation. Within 55 days of the end of every fifth Bond Year (as such term is defined in the Tax Certificate), the Authority shall calculate or cause to be calculated the amount of rebatable arbitrage, in accordance with Section 148(f)(2) of the Code and Section 1.148-3 of the Treasury Regulations (taking into account any applicable exceptions with respect to the computation of the rebatable arbitrage, described, if applicable, in the Tax Certificate ( e.g., the temporary investments exceptions of Section 148(f)(4)(B) and the construction expenditures exception of Section 148(f)(4)(C) of the Code), and taking into account whether the election pursuant to Section 148(f)(4)(C)(vii) of the Code (the “ 1½% Penalty ”) has been made), for this purpose treating the last day of the applicable Bond Year as a computation date, within the meaning of Section 1.148-1(b) of the Treasury Regulations (the “ Rebatable Arbitrage”). The Authority shall obtain expert advice as to the amount of the Rebatable Arbitrage to comply with this Section. (ii) Transfer. Within 55 days of the end of every fifth Bond Year, upon the Written Request of the Authority or Written Request of the City, an amount shall be deposited to the Rebate Fund by the Trustee from any Rental Payments legally available for such purpose (as specified by the Authority or the City in the aforesaid Written Request), if and to the extent required 941
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so that the balance in the Rebate Fund shall equal the amount of Rebatable Arbitrage so calculated in accordance with clause (i) of this subsection (a). In the event that immediately following the transfer required by the previous sentence, the amount then on deposit to the credit of the Rebate Fund exceeds the amount required to be on deposit therein, upon Written Request of the Authority or Written Request of the City , the Trustee shall withdraw the excess from the Rebate Fund and then credit the excess to the Base Rental Payment Fund.
(iii) Payment to the Treasury . The Trustee shall pay, as directed by Written Request of the Authority, to the United States Treasury, out of amounts in the Rebate Fund:
(1) Not later than 60 days after the end of: (X) the fifth Bond Year; and (Y) each applicable fifth Bond Year thereafter, an amount equal to at least 90% of the Rebatable Arbitrage calculated as of the end of such Bond Year; and (2) Not later than 60 days after the payment of all of the Series 2025A Bonds, an amount equal to 100% of the Rebatable Arbitrage calculated as of the end of such applicable Bond Year, and any income attributable to the Rebatable Arbitrage, computed in accordance with Section 148(f) of the Code and Section 1.148-3 of the Treasury Regulations.
In the event that, prior to the time of any payment required to be made from the Rebate Fund, the amount in the Rebate Fund is not sufficient to make such payment when such payment is due, the Authority shall calculate or cause to be calculated the amount of such deficiency and deposit an amount received from any legally available source equal to such deficiency prior to the time such payment is due. Each payment required to be made pursuant to this subsection (a) shall be made to the Internal Revenue Service Center, Ogden, Utah 84201 on or before the date on which such payment is due, and shall be accompanied by Internal Revenue Service Form 8038 -T (prepared by the Authority), or shall be made in such other manner as provided under the Code. (b) Disposition of Unexpended Funds. Any funds remaining in the Rebate Fund after redemption and payment of the Series 2025A Bonds and the payments described in subsection (a) above being made may be withdrawn by the Authority and utilized in any manner by the Authority.
(c) Survival of Defeasance . Notwithstanding anything in this Section to the contrary, the obligation to comply with the requirements of this Section shall survive the defeasance or payment in full of the Series 2025A Bonds.
Section 5.06 Investment of Moneys. Except as otherwise provided herein, all moneys in any of the funds or accounts established pursuant to this Indenture and held by the Trustee shall be invested by the Trustee solely in Permitted Investments, as directed in writing by the Authority.
Moneys in all funds and accounts held by the Trustee shall be invested in Permitted Investments maturing not later than the date on which it is estimated that such moneys will be required for the purposes specified in this Indenture; provided, however, that such Permitted Investments may be redeemed at par so as to be available on each Interest Payment Date. Absent timely written direction from the Authority, the Trustee shall hold any funds held by it uninvested.
Subject to the provisions of Section 5.06 hereof, all interest, profits and other income received from the investment of moneys in any fund or account established pursuant to this Indenture shall be retained in such fund or account.
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Permitted Investments acquired as an investment of moneys in any fund established under this Indenture shall be credited to such fund. For the purpose of determining the amount in any fund , all Permitted Investments credited to such fund shall be valued by the Trustee at the fair market value thereof, such valuation to be performed not less frequently than semiannually on or before each Interest Payment Date. In determining fair market value, the Trustee may use and rely conclusively on any generally recognized securities pricing service available to it (including brokers and dealers in securities).
The Trustee may act as principal or agent in the making or disposing of any investment.
Upon the Written Request of the Authority, the Trustee shall sell or present for redemption any Permitted Investments so purchased whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund to which such Permitted Investments is credited, and the Trustee shall not be liable or responsible for any loss resulting from any investment made or sold pursuant to this Section. For purposes of investment, the Trustee may commingle moneys in any of the funds and accounts established hereunder.
The Trustee may make any investments hereunder through the bond or investment department or trust investment department of the entity acting as Trustee hereunder, or those of such entity’s parent or any affiliate, and such entity, or its parent or affiliate, as applicable, shall be entitled to its normal, customary and reasonable compensation for such services.
The entity acting as Trustee hereunder, or any of its affiliates, may act as sponsor, advisor or manager in connection with any investments made by the Trustee hereunder and such entity, or its affiliate, as applicable, shall be entitled to its normal, customary and reasonable compensation for such services.
The Authority and the City acknowledge that, to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the Authority and the City the right to receive brokerage confirmations of security transactions as they occur, at no additional cost, the Authority and the City specifically waive receipt of such confirmations to the extent permitted by law.
ARTICLE VI
COVENANTS
Section 6.01 Compliance with Agreements. The Trustee will not authenticate or deliver any Bonds in any manner other than in accordance with the provisions hereof, and the Authority and the City will not suffer or permit any default by them to occur hereunder, but will faithfully comply with, keep, observe and perform all the agreements, conditions, covenants and terms hereof required to be complied with, kept, observed and performed by them.
Section 6.02 Compliance with Ground Lease and Lease Agreement. The Authority and the City will faithfully comply with, keep, observe and perform all the agreements, conditions, covenants and terms contained in the Ground Lease and the Lease Agreement required to be complied with, kept, observed and performed by them and, together with the Trustee, will enforce the Ground Lease and the Lease Agreement against the other party thereto in accordance with their respective terms.
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Section 6.03 Observance of Laws and Regulations . The Authority, the City and the Trustee will faithfully comply with, keep, observe and perform all valid and lawful obligations or regulations now or hereafter imposed on them by contract, or prescribed by any law of the United States of America or of the State of California, or by any officer, board or commission having jurisdiction or control, as a condition of the continued enjoyment of each and every franchise, right or privilege now owned or hereafter acquired by them, including their right to exist and carry on their respective businesses, to the end that such franchises, rights and privileges shall be maintained and preserved and shall not become abandoned, forfeited or in any manner impaired.
Section 6.04 Other Liens. The City will keep the Property and all parts thereof free from judgments and materialmen’s and mechanics’ liens and free from all claims, demands, encumbrances and other liens of whatever nature or character, and free from any claim or liability which materially impairs the City in conducting its business or utilizing the Property, and the Trustee at its option (after first giving the City ten days’ written notice to comply therewith and failure of the City to so comply within such ten -day period) may, but is in no event obligated to, defend against any and all actions or proceedings, or may pay or compromise any claim or demand asserted in any such actions or proceedings; provided, however, that, in defending against any such actions or proceedings or in paying or compromising any such claims or demands, the Trustee shall not in any event be deemed to have waived or released the City from liability for or on account of any of its agreements and covenants contained herein, or from its liability hereunder and to perform such agreements and covenants.
So long as any Bonds are Outstanding, none of the Trustee, the Authority or the City shall create or suffer to be created any pledge of or lien on the amounts on deposit in any of the funds or accounts created hereunder, other than the pledge and lien hereof.
The Authority, the City and the Trustee shall not encumber the Property other than in accordance with the Ground Lease, the Lease Agreement, the Indenture and the Assignment Agreement.
Section 6.05 Prosecution and Defense of Suits . The City will promptly, upon request of the Trustee (which request the Trustee is not required to make), take such action from time to time as may be necessary or proper to remedy or cure any cloud upon or defect in the title to the Property or any part thereof, whether now existing or hereafter developing, will prosecute all actions, suits or other proceedings as may be appropriate for such purpose and will indemnify and save the Trustee harmless from all cost, damage, expense or loss, including attorneys’ fees and expenses, which it or the Owners may incur by reason of any such cloud, defect, action, suit or other proceeding.
Section 6.06 Accounting Records and Statements . The Trustee will keep proper accounting records in which complete and correct entries shall be made of all transactions relating to the receipt, deposit and disbursement of the Base Rental Payments, and such accounting records shall be available for inspection by the Authority and the City at reasonable hours and under reasonable conditions.
Section 6.07 Recordation and Filing. The City will record, or cause to be recorded, with the appropriate county recorder, the Lease Agreement, the Ground Lease and the Assignment Agreement, or memoranda thereof.
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Section 6.08 Tax Covenants.
(a) Neither the Authority nor the City will take any action, or fail to take any action, if such action or failure to take such action would adversely affect the exclusion from gross income of interest on any tax -exempt Series 2025A Bonds under Section 103 of the Code. Without limiting the generality of the foregoing, the Authority and the City will comply with the requirements of the Tax Certificate, which is incorporated herein as if fully set forth herein, this covenant shall survive payment in full or defeasance of the Series 2025A Bonds. (b) In the event that at any time the Authority is of the opinion that for purposes of this Section it is necessary or helpful to restrict or limit the yield on the investment of any moneys held by the Trustee in any of the funds or accounts established hereunder, the Authority shall so instruct the Trustee in writing, and the Trustee shall take such action as may be necessary in accordance with such instructions.
(c) Notwithstanding any provisions of this Section, if the Authority shall provide to the Trustee an Opinion of Counsel to the effect that any specified action required under this Section is no longer required or that some further or different action is required to maintain the exclusion from federal income tax of interest on the Series 2025A Bonds, the Trustee may conclusively rely on such opinion in complying with the requirements of this Section and of the Tax Certificate, and the covenants hereunder shall be deemed to be modified to that extent.
Section 6.09 Continuing Disclosure. The City will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Indenture, failure of the City to comply with the Continuing Disclosure Certificate shall not constitute an event of default hereunder; provided, however, that the Trustee may (and, at the written direction of any Participating Underwriter or the holders of at least 25% of the aggregate principal amount of Outstanding Bonds, and upon being indemnified to its reasonable satisfaction therefor, shall) or any holder or beneficial bwner of the Bonds may take such actions as may be necessary and appropriate to compel performance, including seeking mandate or specific performance by court order.
Section 6.10 Further Assurances. Whenever and so often as requested to do so by the Trustee, the Authority and the City will promptly execute and deliver or cause to be executed and delivered all such other and further assurances, documents or instruments and promptly do or cause to be done all such other and further things as may be necessary or reasonably required in order to further and more fully vest in the Trustee all advantages, benefits, interests, powers, privileges and rights conferred or intended to be conferred upon it hereby or by the Assignment Agreement, the Ground Lease or the Lease Agreement, a nd to preserve the priority of the pledge of the Rental Payments under applicable law.
ARTICLE VII
DEFAULT AND LIMITATIONS OF LIABILITY
Section 7.01 Action on Default . If an event of default (within the meaning of Article VI of the Lease Agreement) shall happen, then such event of default shall constitute an event of default hereunder. The Trustee shall give notice, as assignee of the Authority, of an event of default under the Lease Agreement to the City. In each and every case during the continuance of an event of 945
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default, the Trustee may and, at the direction of the Owners of not less than a majority of the aggregate principal amount of Bonds then Outstanding, and upon being indemnified to its reasonable satisfaction therefor, shall, upon notice in writing to the City and the Authority, exercise any of the remedies granted to the Authority under the Lease Agreement and, in addition, take whatever action at law or in equity may appear necessary or desirable to enforce its rights as assignee pursuant to the Assignment Agreement or to protect and enforce any of the rights vested in the Trustee or the Owners by this Indenture or by the Bonds, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement or for the enforcement of any other legal or equitable right, including any one or more of the remedies set forth in Section 7.02 hereof.
Section 7.02 Other Remedies of the Trustee . Subject to the provisions of Section 7.01 hereof, the Trustee shall have the right:
(a) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the Authority or the City or any member, director, officer or employee thereof, and to compel the Authority or the City or any such member, director, officer or employee to perform or carry out its or his or her duties under law and the agreements and covenants required to be performed by it or him or her contained herein;
(b) by suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Trustee; or
(c) by suit in equity upon the happening of any event of default hereunder to require the Authority and the City to account as the trustee of an express trust.
Nothing herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Owner any plan of reorganization, arrangement, adjustment or composition affecting the Bonds or the rights of any Owner thereof, or to authorize the Trustee to vote in respect of the claim of any Owner in any such proceeding without the approval of the Owners so affected.
Notwithstanding any provision of this Indenture to the contrary, no event of default hereunder or under the Lease by the Authority or the City shall result in the acceleration of debt service on the Bonds hereunder.
Section 7.03 Non-Waiver. A waiver of any default or breach of duty or contract by the Trustee shall not affect any subsequent default or breach of duty or contract or impair any rights or remedies on any such subsequent default or breach of duty or contract. No delay or omission by the Trustee to exercise any right or remedy accruing upon any default or breach of duty or contract shall impair any such right or remedy or shall be construed to be a waiver of any such default or breach of duty or contract or an acquiescence therein, and every right or remedy conferred upon the Trustee by law or by this Article may be enforced and exercised from time to time and as often the Trustee shall deem expedient.
If any action, proceeding or suit to enforce any right or to exercise any remedy is abandoned or determined adversely to the Trustee or any Owner, then subject to any adverse determination, the Trustee, such Owner, the Authority and the City shall be restored to their former positions, rights and remedies as if such action, proceeding or suit had not been brought or taken. 946
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Section 7.04 Remedies Not Exclusive . Subject to the provisions of Section 7.01 hereof, no remedy herein conferred upon or reserved to the Trustee is intended to be exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing in law or in equity or by statute or otherwise and may be exercised without exhausting and without regard to any other remedy conferred by any law. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.
Section 7.05 No Liability by the Authority to the Owners. Except as expressly provided herein, the Authority shall not have any obligation or liability to the Owners with respect to the payment when due of the Base Rental Payments by the City, or with respect to the performance by the City of the other agreements and covenants required to be performed by it contained in the Lease Agreement or herein, or with respect to the performance by the Trustee of any right or obligation required to be performed by it contained herein.
Section 7.06 No Liability by the City to the Owners . Except for the payment when due of the Base Rental Payments and the performance of the other agreements and covenants required to be performed by it contained in the Lease Agreement, the Ground Lease or herein, the City shall not have any obligation or liability to the Owners with respect to the Indenture or the preparation, execution, delivery or transfer of the Bonds or the disbursement of the Base Rental Payments by the Trustee to the Owners, or with respect to the performance by the Trustee of any right or obligation required to be performed by it contained herein.
Section 7.07 No Liability of the Trustee to the Owners . Except as expressly provided herein, the Trustee shall not have any obligation or liability to the Owners with respect to the payment when due of the Base Rental Payments by the City, or with respect to the performance by the Authority or the City of the other agreements and covenants required to be performed by them contained in the Lease Agreement, the Ground Lease or herein.
Section 7.08 Application of Amounts After Default . All payments received by the Trustee with respect to the rental of the Property after a default by the City pursuant to Article VI of the Lease Agreement (including, without limitation, any proceeds received in connection with the sale, assignment or sublease of the Authority’s right, title and interest in the Ground Lease), and all damages or other payments received by the Trustee for the enforcement of any rights and powers of the Trustee under Article VI of the Lease Agreement, shall be deposited into the Base Rental Payment Fund and as soon as practicable thereafter applied, together with all other funds held hereunder (except funds in the Rebate Fund):
(a) to the payment of all amounts due the Trustee under Article VIII hereof; (b) to the payment of all amounts then due for interest on the Bonds, in respect of which, or for the benefit of which, money has been collected (other than Bonds which have become payable prior to such event of default and money for the payment of which is held by the Trustee), ratably without preference or priority of any kind, according to the amounts of interest on such Bonds due and payable; and
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Trustee), ratably without preference or priority of any kind, according to the amounts of principal of such Bonds due and payable.
Section 7.09 Trustee May Enforce Claims Without Possession of Bonds . All rights of action and claims under this Indenture or the Bonds may be prosecuted and enforced by the Trustee without the possession of any of the Bonds or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Owners in respect of which such judgment has been recovered.
Section 7.10 Limitation on Suits. No Owner of any Bond shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or Trustee, or for any other remedy hereunder, unless: (a) such Owner shall have previously given written notice to the Trustee of a continuing event of default; (b) the Owners of not less than 25% of the aggregate principal amount of Bonds then Outstanding shall have made written request to the Trustee to institute proceedings in respect of such event of default in its own name as Trustee hereunder; (c) such Owner or Owners shall have afforded to the Trustee indemnity reasonably satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request; (d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have failed to institute any such proceedings; and (e) no direction inconsistent with such written request shall have been given to the Trustee during such 60 day period by the Owners of a majority of the aggregate principal amount of Bonds then Outstanding; it being understood and intended that no one or more Owners shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Owner, or to obtain or seek to obtain priority or preference over any other Owner or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all the Owners.
ARTICLE VIII
THE TRUSTEE
Section 8.01 Employment of the Trustee . The Authority hereby appoints and employs the Trustee to receive, deposit and disburse the Base Rental Payments, to authenticate, deliver and transfer the Bonds and to perform the other functions contained herein, all in the manner provided herein and subject to the conditions and terms hereof. By executing and delivering this Indenture, the Trustee accepts the appointment and employment hereinabove referred to and accepts the rights and obligations of the Trustee provided herein, subject to the conditions and terms hereof. Other than when an event of default has occurred and is continuing, the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee. In case an event of default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. The Trustee hereby covenants and agrees that it will not encumber the Property. 948
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Section 8.02 Duties, Removal and Resignation of the Trustee . The Authority may, by an instrument in writing, remove the Trustee initially a party hereto and any successor thereto unless an event of default shall have occurred and then be continuing, and shall remove the Trustee initially a party hereto and any successor thereto if at any time: (a) requested to do so by an instrument or concurrent instruments in writing signed by the Owners of a majority of the aggregate principal amount of Bonds at the time Outstanding (or their attorneys duly authorized in writing); or (b) the Trustee shall cease to be eligible in accordance with the following sentence, and shall appoint a successor Trustee. The Trustee and any successor Trustee shall be a banking corporation or association or trust company having (or if such banking corporation or association or trust company is a member of a bank holding company, its bank holding company has) a combined capital (exclusive of borrowed capital) and surplus of at least $50,000,000 and subject to supervision or examination by federal or state authorities. If such banking corporation or association or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section the combined capital and surplus of such bank, association or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
The Trustee may at any time resign by giving written notice of such resignation to the Authority and the City and by giving notice, by first class mail, postage prepaid, of such resignation to the Owners at their addresses appearing on the Registration Books. Upon receiving such notice of resignation, the Authority shall promptly appoint a successor Trustee by an instrument in writing; provided, however, that in the event the Authority does not appoint a successor Trustee within 30 days following receipt of such notice of resignation, the resigning Trustee may, at the expense of the Authority, petition the appropriate court having jurisdiction to appoint a successor Trustee. Any resignation or removal of a Trustee and appointment of a successor Trustee shall become effective only upon acceptance of appointment by the successor Trustee.
Any corporation, association or agency into which the Trustee may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which it is a party, provided that such entity meets the combined capital and surplus requirements of this Section, ipso facto, shall be and become successor trustee under this Indenture and vested with all the trusts, powers, discretions, immunities, privileges and all other matters as was its predecessor, without the execution or filing of any instrument or any further act, deed or conveyance on the part of any of the parties hereto, anything herein to the contrary notwithstanding.
Section 8.03 Compensation of the Trustee . The City shall from time to time, subject to any written agreement then in effect with the Trustee, pay the Trustee reasonable compensation for all its services rendered hereunder and reimburse the Trustee for all its reasonable advances and expenditures (which shall not include “overhead expenses” except as such expenses are included as a component of the Trustee’s stated annual fees) hereunder, including but not limited to advances to and reasonable fees and reasonable expenses of accountants, agents, appraisers, consultants or other experts, and counsel not directly employed by the Trustee but an attorney or firm of attorneys retained by the Trustee, employed by it in the exercise and performance of its rights and obligations hereunder. The Trustee may take whatever legal actions are lawfully available to it directly against the Authority or the City.
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The City shall, to the extent permitted by law, indemnify and save the Trustee harmless against any liabilities, costs, claims or expenses, including those of its attorneys, which it may incur in the exercise and performance of its powers and duties hereunder, under the Lease Agreement, or in connection with any document or transaction contemplated hereunder or thereunder, including the enforcement of any remedies and the defense of any suit, and which are not due to its negligence or its misconduct. The duty of the City to indemnify the Trustee shall survive the termination and discharge of this Indenture and the earlier removal or resignation of the Trustee.
No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers hereunder.
Upon an Event of Default, and only upon an Event of Default, the Trustee shall have a first lien with right of payment prior to payment on account of principal of and premium, if any, and interest on any Bond, upon the trust estate for the foregoing fees, charges and expenses incurred by it. When the Trustee incurs expenses or renders services after the occurrence of an Event of Default, such expenses and the compensation for such services are intended to constitute expenses of administration under any federal or state bankruptcy, insolvency, arrangement, moratorium, reorganization or other debtor relief law.
Section 8.04 Protection of the Trustee. The Trustee shall be protected and shall incur no liability in acting or proceeding in good faith upon any affidavit, bond, certificate, consent, notice, request, requisition, resolution, statement, telegram, voucher, waiver or other paper or document which it shall in good faith believe to be genuine and to have been adopted, executed or delivered by the proper party or pursuant to any of the provisions hereof, and the Trustee shall be under no duty to make any investigation or inquiry as to any statements contained or matters referred to in any such instrument, but may accept and rely upon the same as conclusive evidence of the truth and accuracy of such statements. The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Owners of the Bonds pursuant to this Indenture, unless such Owners shall have offered to the Trustee security or indemnity, reasonably satisfactory to the Trustee, against the reasonable costs, expenses and liabilities which might be incurred by it in compliance with such request or direction. The Trustee may consult with counsel, who may be counsel to the Authority or the City, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect to any action taken or suffered by it hereunder in good faith in accordance therewith.
The Trustee shall not be responsible for the sufficiency of the Bonds or the Lease Agreement, or of the assignment made to it by the Assignment Agreement, or for statements made in any preliminary or final official statement relating to the Bonds, or of the title to the Property.
Whenever in the administration of its rights and obligations hereunder the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a Written Certificate of the City or a Written Certificate of the Authority, and such certificate shall be full warrant to the Trustee for any action taken or suffered under the provisions hereof upon the faith thereof, but in its discretion the Trustee may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as it deems reasonable.
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The Trustee may buy, sell, own, hold and deal in any of the Bonds and may join in any action which any Owner may be entitled to take with like effect as if the Trustee were not a party hereto.