>>7979158
Cargo & Industrial Real Estate
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RESOLUTION NO.______ - APPROVE PERMIT NO. 937 WITH SPACE EXPLORATION TECHNOLOGIES CORP. TO CONSTRUCT AND OPERATE A RESEARCH, DESIGN, AND MANUFACTURING FACILITY
Transmittal 1
Transmittal 2
Summary: Staff requests approval of new term Permit No. 937 (P937) between the City of Los Angeles Harbor Department (Harbor Department) and Space Exploration Technologies Corp. (SpaceX), a Delaware corporation, for the purpose of constructing and operating a research, design, and manufacturing facility for rockets and spacecraft. The rockets, once complete, would be too large for reasonable transport by road and thus must be transported by barge or ship, necessitating that the facility be water adjacent. Staff initiated discussions with SpaceX in 2015, understanding the importance of retaining high-technology jobs in the City of Los Angeles by having the research and development facility located in the Port of Los Angeles (Port). SpaceX also considered other sites throughout the country. Ultimately, both SpaceX and staff agreed that the 19- acre site at the former Southwest Marine facility at Berth 240 was the most viable site for the project. Staff has negotiated P937 for an initial ten-year term with two, ten-year options to extend, with an initial annual rent of approximately $1.38 million and annual adjustments based on the Consumer Price Index (CPI). SpaceX will receive credits that offset rent in exchange for tenant improvements constructed on the property for the initial ten-year term and the first ten-year option period. The improvements will transfer to the Harbor Department at the end of the term.
Recommendation: Board resolve to (1) find that this action is administratively exempt from CEQA pursuant to the City of Los Angeles CEQA Guidelines Article 2, Section 2(i). This section exempts, "any activity (approval of bids, execution of contracts, allocation of funds, etc.) for which the underlying project has previously been evaluated for environmental significance and processed according to the requirements of these Guidelines. This action was assessed in the Final Initial Study/Mitigated Negative Declaration for the Berth 240 Transportation Vessels Manufacturing Facility Project (Los Angeles Harbor Department Application for Port Permit No. 170117-008, State Clearinghouse No. 2017121023. adopted by the BOHC on March 15, 2018 (Resolution No. 18-8259); (2) find that the proposed action is in the best interest of the City and Harbor Department despite the fact that the estimated rate of return on investment does not meet stated policy targets as enacted by the Board; (3) find that the proposed action is in the best interest of the City and Harbor Department despite the fact that the proposed permit was not a result of a public solicitation or request as this action has the potential to result in 700 jobs and the site has not been occupied by a tenant since October 2005; (4) approve Permit No. 937 with Space Exploration Technologies Corp.; (5) direct the Board Secretary to transmit Permit No. 937 to the City Council for approval pursuant to Charter Section 606 of the City Charter; (6) authorize the Executive Director to execute and the Board Secretary to attest to the Permit upon approval by City Council; and (7) adopt Resolution No.______.
Office of the City Attorney
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RESOLUTION NO.______ - WAIVING THE POTENTIAL CONFLICT WITH RESPECT TO GORDON & REES, SCULLY MANSUKHANI LLP'S REPRESENTATION OF TRAVELERS INSURANCE COMPANY AND COLONIAL YACHT ANCHORAGE
Summary: The law firm of Gordon & Rees, Scully Mansukhani, LLP has requested a conflict waiver so that they may represent Travelers Insurance Company in its attempt to intervene and defend Wilmington Marine Services (a defunct corporation) in City of Los Angeles v. Wilmington Marine Services, Los Angeles Superior Court Case No. BC559959, and that it may continue to defend Colonial Yacht Anchorage in City of Los Angeles v. Colonial Yacht Anchorage, Los Angeles Superior Court Case No. BC559960.
Recommendation: Board resolve to (1) formally waive any potential conflict that might arise by way of Gordon & Rees, Scully Mansukhani, LLP’s representation of Travelers Insurance and Colonial Yacht Anchorage in the above referenced cases; (2) authorize the City Attorney’s office to execute a written conflict waiver; (3) adopt Resolution No.______; and (4) authorize and direct the Board Secretary to transmit the conflict waiver to the City Council for its approval.