HomeMy WebLinkAboutCC RESO 2012-83RESOLUTION NO. 2012 — 83
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A LEASE AGREEMENT
BETWEEN THE CITY AND AMERICAN DIGITAL OUTDOOR, LP, ALSO
KNOWN AS AMERICAN OUTDOOR ADVERTISING, FOR LAND AT
THE END OF THE 30TH STREET CUL-DE-SAC (APN 562 220 41 00)
AS A SITE FOR THE INSTALLATION AND MAINTENANCE
OF DIGITAL OUTDOOR SIGNAGE, AND AUTHORIZING
THE CITY MANAGER TO MAKE CHANGES TO THE LEASE
THAT DO NOT CONFLICT WITH THE TERMS
WHEREAS, as a result of the RFQ process, the City has determined that
American Digital Outdoor, LP, also known as American Outdoor Advertising, is qualified by
experience and ability to install and operate a digital billboard, and American Digital Outdoor is
willing to lease land from the City and install and maintain digital outdoor signage on the site;
and
WHEREAS, the City owns a parcel of land that is located between the end of
the 30th Street cul-de-sac and Interstate 5, which is a vacant parcel (APN 562 220 41 00);
and
WHEREAS, this Lease is not a guarantee that the digital billboard can be
installed because there are additional approvals required by various agencies that are not
subject to or committed to in this Lease Agreement; and
WHEREAS, to the extent any of the permits or requirements are discretionary,
the Lease Agreement specifically recognizes the discretion remains with the approving entity,
and is not in any way pre -committed or affected by the Lease Agreement; and
WHEREAS, a summary of the terms and conditions of the Lease are as follows:
• The term is 15 years, with an option for an additional 5 years;
• The base monthly rent is $8,500 per month for a single -sided digital
billboard facing traffic traveling northbound on Interstate 5;
• American Outdoor is responsible for pursuing any and all needed permits
with local and state agencies;
• American Outdoor is bearing all costs of installation and operation of the
digital billboard. If for whatever reason appropriate permits cannot be obtained which is not the
fault of American Outdoor, then the lease will not move forward and would terminate;
• The City receives one-third of the earned revenue in excess of the annual
rent;
• 5 year prepayment (discounted for present day value) of monthly rent will be
a minimum of $408,000.
• The following types of advertisement are not allowed:
O Dealerships or auto malls outside of NC
o Shopping malls outside of NC
• Opposing or promoting a candidate for office or a ballot measure
Resolution No. 2012 — 83
April 3, 20112
Page Two
o Obscene/promoting adult entertainment
o Tobacco or medical marijuana
o Alcohol unless there is a specific warning to encourage consumers to
drink responsibly
o Depicting violence or anti -social behavior or illegal activity
o Defaming, embarrassing, public ridicule of a person or group
• City announcements on a space -available basis; and
WHEREAS, this lease, if fully realized, will provide a minimum of $102,000 in
annual rent for the use of a parcel of land that would otherwise remain unused. In addition, as
American Outdoor's revenue increases, the City receives a part of the revenue.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City that the Mayor is hereby authorized to execute a Lease Agreement between the
City of National City and American Digital Outdoor, LP, for land at the end of the 30th Street cul-
de-sac (APN 562 220 41 00) as a site for the installation and maintenance of digital outdoor
signage in substantially the same form and content. Said Lease Agreement is on file in the
office of the City Clerk.
BE IT FURTHER RESOLVED that the City Council hereby authorizes the City
Manager to make changes to the Lease prior to execution that do not conflict with the key terms
of the Lease, and maintains the Lease in substantially the same form and content.
ATTEST:
PASSED and ADOPTED this 3rd day of April, 2012.
on Morrison,
I A,
Michael R. Dalla, CitClerk
PPROVED AS TO FORM:
tua Silva, City Attorney
Passed and adopted by the Council of the City of National City, California, on April 3,
2012 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
hljl)
City C erk of the City ofl National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2012-83 the City of National City, California, passed and adopted
by the Council of said City on April 3, 2012.
City Clerk of the City of National City, California
By:
Deputy