DATE: August 18, 2020
SUBJECT:
Title
ORDINANCE GRANTING A 13-YEAR, 11-MONTH AND 13-DAY LEASE WITH BAE SYSTEMS SAN DIEGO SHIP REPAIR INC., A CALIFORNIA CORPORATION, DBA BAE SYSTEMS FOR 6.77 ACRES OF EELGRASS MITIGATION LOCATED AT THE FORMER SOUTH BAY POWER PLANT COOLING INTAKE CHANNEL IN CHULA VISTA, CALIFORNIA
Body
EXECUTIVE SUMMARY:
BAE Systems San Diego Ship Repair Inc., a California corporation, (BAE) has a 50-year lease (Master Lease) with the District for the operation of a ship repair facility at 2205 E. Belt Street (Attachment A, Master Lease Location Map). The Master Lease covers landside area of approximately 9.8 acres and includes industrial facilities, including production shops, offices and other related utilities and infrastructure. The waterside parcel is approximately 16.6 acres and currently has three working piers (Pier 1, 3,
and 4) to moor large naval and commercial vessels for maintenance, repair, overhaul and conversion-related activities.
In 2013, BAE submitted a project to the District for the construction and operation of a new floating drydock on the north side of BAE's existing Pier 1 (Project). In November 2015, the Board of Port Commissioners (Board) approved BAE's Project and certified the Final Environmental Impact Report (EIR). The EIR required mitigation for eelgrass and shading impacts associated with the Project and analyzed two sites as potential mitigation locations. Under a Right of Entry License Agreement (ROELA), BAE constructed 6.77 acres of eelgrass in a portion of the former South Bay Power Plant cooling intake channel in Chula Vista (Mitigation Parcel). The District has prepared a 13-year and 11-month lease for the eelgrass habitat (Mitigation Lease) that is coterminous with their Master Lease and includes incremental new revenue to the District. The Mitigation Lease would provide annual rent payments to the District in the amount of $181,045, which will be adjusted annually in accordance with the Consumer Pric...
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