TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Scott Agajanian, Economic Development Director
PREPARED BY: Martha Coleman, Management Analyst - Economic Development
SUBJECT:
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Approval of a Billboard Reconstruction Agreement with Domenigoni Barton Properties
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RECOMMENDATION
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Approve the Billboard Reconstruction Agreement between the City of Murrieta and Domenigoni Barton Properties, LLC, authorizing the removal of two existing, legal, non-conforming billboards and the reconstruction of two new billboards on the Developer’s property;
Authorize the City Manager to execute the Agreement; and
Authorize the City Manager to execute a license agreement for the billboards to be located on City right-of-way on The Triangle site.
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PRIOR ACTION/VOTE
On September 16, 2025, the City Council adopted Ordinance No. 623-25 approving a Development Agreement with Domenigoni Barton Properties, LLC for development of The Shops at The Triangle. The Development Agreement was executed on September 18, 2025, and recorded on October 30, 2025, as Instrument No. 2025-0335757 of the Official Records of the County of Riverside California (Vote: 5-0).
CITY COUNCIL GOAL
Aggressively pursue economic development.
DISCUSSION
The proposed Reconstruction Agreement provides a framework for removal of two existing legal non-conforming billboards currently located on the Developer’s property and authorizes reconstruction of two new billboards, subject to Development Approvals, including sign permits, building permits, CEQA compliance, and any required approvals from Caltrans and other agencies.
The Agreement requires permanent removal of the existing “North Billboard” and “South Billboard” prior to issuance of building permits for the corresponding new structures. Removal must occur in compliance with all applicable federal, state, and local regulations. Timing provisions address coordination with Southern California Edison for relocation of power lines affecting the South Billboard. If Development Approvals are not secured within one year, the Agreement terminates.
Upon removal of each existing billboard, the Developer may construct a new billboard at locations identified in the Agreement exhibits, including the option for single- or double-sided digital displays at the maximum size permitted by law. The City Council findings confirm the Agreement is consistent with the General Plan and Municipal Code, improves community aesthetics through modernization of outdated structures, and does not create traffic or safety concerns.
The Agreement includes a revenue-sharing provision under which the City will receive an Annual Fee beginning fifteen (15) years after each new billboard begins generating revenue. The City will receive either 25% or 30% of net advertising revenue (gross revenue less maintenance costs), depending on whether a Certificate of Occupancy for commercial use has been issued at the project site. The Annual Fee may be tolled during operation of a qualifying Class A large-format retailer, as defined in the Agreement.
FISCAL IMPACT
The Agreement is expected to generate long-term revenue to the City through the Annual Fee revenue-sharing provisions beginning fifteen (15) years after each new billboard’s revenue commencement date. This agreement incentivizes large box, high sales tax revenue creating retailers in the Triangle development. The City will also receive in-kind value through Public Service Message display space estimated at $200,000 annually. No direct General Fund expenditure is required for implementation of the Agreement.
ATTACHMENTS
ATT 1 - Billboard Reconstruction Agreement