TITLE
Recommendation to authorize City Manager, or designee, to enter into an agreement with The Boeing Company to make a one-time cash payment of $2,547,880 to be earmarked for the improvement of the Cherry Avenue and San Diego Freeway (I-405) intersection and $250,000 for traffic management measures for a total of $2,797,880, as required by the Douglas Park Development Agreement. (District 5)
DISCUSSION
On March 22, 2022, the City Council authorized the City Manager to enter into an agreement with The Boeing Company to accept a one-time cash payment in lieu of performing improvements to the Cherry Ave/405 Intersection, condition MM-V.L-17 (Attachment A,) which were required to be completed by The Boeing Company per Exhibit F of the Amended and Restated Development Agreement Number 31625 (Attachment B). The underlying analysis included with this item estimated the project buildout cost would be $1,900,000 in 2022 to $2,600,000 in 2030.
The March 22, 2022 authorization did not explicitly include another mitigation requirement that was included by staff in calculating the original contribution amount. Exhibit F contains item number MM-V.L-18 which requires The Boeing Company to make payments in increments of $250,000 for a total of up to $500,000 to the City of Long Beach (City) for neighborhood traffic management purposes at different traffic thresholds. The City requested and The Boeing Company has already made the first payment of $250,000. As indicated in MM-V.L-18, the City has the option to request the second payment of $250,000 and has made the request to The Boeing Company. The Boeing Company requested that the second payment of $250,000 be included in the $2,797,880 one-time cash payment in order to clear and satisfy all of the requirements of mitigation measure MM-V.L-18. City staff agreed to accommodate this request but did not explicitly acknowledge this term of the agreement in the action brought to the City Council on March 22, 2022.
In appro...
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