TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Jarrett Ramaiya, Deputy Development Director
SUBJECT:
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Consideration to Introduce an Ordinance approving a Development Agreement for Digital Billboards at Locations Approved by Relocation Agreement
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RECOMMENDATION
recommendation
Conduct the Public Hearing and receive public comments;
Find that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15302 and 15303, as described in this staff report and the Ordinance; and
Introduce and conduct the first reading of Ordinance No. 620-25 entitled: An Ordinance of the City Council of the City of Murrieta, California, Approving the Development Agreement with Lamar Central Outdoor, LLC for the Relocation of Billboards Subject to A Relocation Agreement.
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PRIOR ACTION/VOTE
On April 15, 1997, the City Council approved a Relocation Agreement between the City of Murrieta and Outdoor Media Group, Inc. (Vote: 5-0).
On November 9, 2022, the Planning Commission recommended that City Council approve PC Resolution No. 2022-17 to approve the proposed Development Code Amendment to authorize the relocation or reconstruction of Billboards subject to a Relocation Agreement (Vote: 5-0).
On December 20, 2022, the City Council approved Ordinance No. 587-22 to approve a Development Code Amendment authorizing the relocation or reconstruction of Billboards subject to a Relocation Agreement (Vote: 5-0).
On December 20, 2022, the City Council approved a Relocation Agreement with Lamar Central Outdoor to authorize the relocation or reconstruction of three Billboards subject to the approval of a Development Agreement (Vote: 5-0).
On May 29, 2025, the Planning Commission provided a recommendation of approval for the Development Agreement, authorizing the relocation or reconstruction of Billboards subject to the Relocation Agreement (Vote: 2-2-1).
CITY COUNCIL GOAL
Aggressively pursue economic development.
BACKGROUND
California Government Code Section 65865 et. seq. authorizes the City to enter into development agreements, which in effect become contractual agreements between the City and property owners (or applicants who possess sufficient non-possessory interest in those certain parcels of real property) regarding development rights and performance standards for a given project. Development agreements allow the City and developers to achieve a level of certainty regarding the future development of property and are a commonly used development tool for billboard projects. Pursuant to the City’s Municipal Code and State law, the development agreement process requires the Planning Commission to make a recommendation to the City Council prior to the Council's action.
On December 20, 2022, the City of Murrieta (City) and developer Lamar Central Outdoor, LLC (Developer) entered into a Relocation Agreement in accordance with California Business and Professions Code Sections 5200 et seq. and Title 16 of the Murrieta Municipal Code (the Relocation Agreement) to memorialize the terms and conditions upon which Developer will have the right to relocate and reconstruct certain legally existing billboards within the City. Pursuant to the terms of the Relocation Agreement, upon the permanent removal of the Removed Billboards (as defined in the Relocation Agreement), the Developer shall be entitled to reconstruct three (3) existing Billboards upon private property, subject to the approval of a sign permit and a Development Agreement.
ANALYSIS
Summary of Development Agreement Terms
As further detailed in the proposed Development Agreement, conditions negotiated and agreed to by the Developer and City include, but are not limited to:
1. The term shall commence on the Effective Date and shall terminate on its 30 year anniversary, unless extended in accordance with the terms of the Development Agreement.
2. Upon the permanent removal of three (3) Removed Billboards (as defined in the Relocation Agreement), the City will allow the Developer to build three (3) digital outdoor advertising displays (DOADs).
3. Developer will be responsible for the DOADs, including graffiti removal and repairs within 48 hours notification.
4. DOADs shall not operate at brightness levels of more than 0.3-foot candles above ambient light, as measured using a foot candle meter at a pre-set distance. The distance to measure the foot candles’ impact shall be measured from a distance of 250 ft. for a sign with a nominal face size of 14’ x 48’. Each Digital Display Area must have a light-sensing device that will adjust the brightness as ambient light conditions change in accordance with the Outdoor Advertising Act.
5. DOADs shall contain static messages only, and shall not have movement, or the appearance or optical illusion of movement during the static display period, of any part of the sign structure, design, or pictorial segment of the sign, including the movement or appearance of movement. A static message cannot include flashing lighting or the varying of light intensity.
6. No DOAD shall involve any red or blinking or intermittent light likely to be mistaken for warning or danger signals, nor shall its illumination impair the vision of travelers on the adjacent freeway and/or roadways.
7. The DOAD shall be operated with systems and monitoring to freeze the display in one static position, display a full black screen, or turn off in the event of a malfunction.
8. No DOAD shall simulate or imitate any directional, warning, danger, or any display likely to be mistaken for any permitted sign intended or likely to be construed as giving warning to traffic by, for example, the use of the words “stop” or “slow down.”
9. The Developer voluntarily covenants and agrees to prohibit advertising displayed on the DOADs for adult businesses, cabarets, strip clubs, lingerie, and cannabis products of any kind, including CBD products.
10. The Developer will pay the City a one-time payment of Two Hundred Fifty Thousand Dollars ($250,000) per DOAD, with such payment due to the City upon the commencement date of each DOAD.
11. The Developer shall further pay to the City an annual fee in the sum of the greater of One Hundred Thousand Dollars ($100,000) each calendar year or twenty-five percent (25%) of the annual gross advertising revenue generated by each of the DOADs, whichever is higher.
12. The Developer will also donate a City Hall Digital Monument Sign to the City as described in the Relocation Agreement.
13. The City shall be entitled to place up to one eight-second public service message per minute on each DOAD provided that space is available.
14. Sign facilities shall be in compliance with FAA and Caltrans standards.
In summary, the proposed Development Agreement establishes development standards for the three (3) billboard reconstructions consistent with the Relocation Agreement and consistent with the policies of the Murrieta Municipal Code and California Outdoor Advertising Act.
The three locations for reconstructed signs are 41001 Golden Gate Circle (57’ in height), 25941 Jackson Avenue (85’ in height), and 26171 Jackson Avenue (47’ in height). See Attachment 3 for the vicinity map, showing the three locations.
Staff have reviewed the proposed plans and have determined that the three (3) reconstructed billboards subject to the proposed Development Agreement will not be detrimental to the surrounding areas, based on the required operating terms, including design and regulatory controls. The development and operations requirements will ensure appropriate integration in context with existing and anticipated adjacent developments and are consistent with applicable development standards.
ENVIRONMENTAL DETERMINATION
The Project has been evaluated pursuant to the California Environmental Quality Act (CEQA), and it has been determined that the Agreement is exempt pursuant to CEQA Guidelines 15302 and 15303 because it will allow for the replacement or reconstruction of existing structures and the new construction or conversion of small structures. See Attachment 4 for the Notice of Exemption.
FISCAL IMPACT
There is no fiscal impact from approving the development agreement. The previously approved relocation agreement includes a material consideration consisting of a one-time payment of $250,000, per DOAD, plus $100,000, or 25% of the annual gross advertising revenue generated by each DOAD.
ATTACHMENTS
1. Ordinance No. 620-25
2. Planning Commission staff report (05/28/25)
3. Vicinity Map
4. Notice of Exemption