2003 AGN JUN 03 I19 - Laserfiche WebLink

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Item #19 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF June 3, 2003 Honorable Mayor and City Council FROM: City Attorney ECT: Assignment of Agreements with Adams Advertising, Inc. to Lamar Advertising Company Regarding Billboards Within the City DATE: June 3, 2003 BACKGROUND: On or about July 1, 1993, Adams Advertising, Inc. ("Adams") and the City of Colton entered into a settlement agreement under which Adams was authorized to build 10 billboards in the City on City -owned property ("Settlement Agreement"). Under the Settlement Agreement, Adams made specified payments to the City. In addition, rights-of-way were vacated by the City and all necessary local approvals were obtained for the billboards. Adams then applied for State permits to develop the billboard signs. Caltrans required that the subject property be owned by Adams. Through two separate resolutions, the 10 subject parcels were conveyed to Adams by grant deed. On or about November 26, 1996, Adams executed an initial promissory note in consideration of the Settlement Agreement and to secure payments to the City ("Promissory Note"). On or about December 9, 1996, Adams executed a second note for the real estate deeds, providing for additional monthly payments to the City ("Installment Note"). All payments on both notes have been timely made by Adams. The Settlement Agreement, Promissory Note and Installment Note (collectively referred to as the "City Agreements") are, therefore, currently in good standing. DISCUSSION/ANALYSIS: Under the terms of the initial Promissory Note, Adams must seek the City's consent for any sale of land or improvements, which consent cannot be unreasonably withheld. The Promissory Note is silent as to stock sales. Adams is in the process of selling its business to Lamar Advertising Company ("Lamar"), including selling the stock of the company. RVPCB\NGS`.653521 -1-