TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for the First Amendment to Lease No. 34221 between the City of Long Beach and Ultramar, Inc., a Nevada corporation, dba Valero Wilmington Refinery, for City-owned Oil Set-Aside property at 2402 East Anaheim Street, Wilmington, California. (Citywide)
DISCUSSION
The City owns an approximate five-acre parcel of land, located near the Port of Long Beach, commonly known as the North Strip, at 2402 East Anaheim Street in Wilmington, California. The North Strip contains four City-controlled oil wells managed by the Long Beach Gas and Oil Department (LBGO). Located next to Valero’s refinery, and formerly managed by the City’s Harbor Department, the North Strip has been leased to Valero for various periods of time since 2005 for parking purposes in conjunction with its operations.
In early 2016, Valero approached the City for lease of the North Strip for a construction project (Project) scheduled to commence on April 1, 2016. The Project provides for the construction of a new co-generation unit which helps to mitigate the cost of purchased power. As customary, the North Strip would be needed for parking for contractors and equipment during the Project.
On September 17, 2013, the City Council authorized the City Manager to execute all documents necessary for real property occupancy agreements with public or private parties for terms not to exceed six-months with one six-month extension. This authority allows the City to execute agreements in an expeditious manner when occupancy is needed quickly. This also increases the opportunities to generate revenue from the short-term use of surplus/vacant City property. Under this authority, on March 29, 2016, the City executed Lease No. 34221 with Valero for use of the North Strip.
The Project commenced on April 1, 2016 and Valero estimates an 18-24 month timeframe for completion. Existing City Council authority provides for...
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