DATE: April 9, 2019
SUBJECT:
Title
INFORMATIONAL PRESENTATION FROM WORLD TRADE CENTER SAN DIEGO (WTCSD) ON THE WTCSD 2018 ANNUAL REPORT
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EXECUTIVE SUMMARY:
This agenda item is an informational presentation from the staff of the World Trade Center San Diego, Inc., a non-profit, public benefit corporation (WTCSD) to the Board of Port Commissioners (Board) on their recently released 2018 Annual Report (Attachment A).
The informational presentation (Attachment B) will highlight the WTCSD’s efforts in 2018 to support the following key areas:
1. Build an export pipeline of companies;
2. Attract and retain foreign investment in San Diego; and
3. Strengthen San Diego’s global identity and position it as a destination for investment.
The presentation will also focus on how these efforts have served to expand support to the District’s Maritime Cargo and Cruise businesses, as well as Blue Economy and Real Estate initiatives, and how these efforts will carry into 2019.
As background, the WTCSD is a non-profit, public benefit corporation that manages and performs the rights and obligations of the District (40%), the San Diego County Regional Airport Authority (40%), and the City of San Diego (20%) (collectively, the License Holders) through a nonexclusive license from the World Trade Centers Association, Inc. (WTCA) to operate a branded World Trade Center facility in San Diego and provide branded services approved by the WTCA that foster world trade (License). The specific and primary purpose of the WTCSD is to provide for the utilization and management of the rights and obligations of the License Holders under the License for the benefit of the residents and businesses located within the jurisdictional boundaries of the License Holders. Pursuant to an Assignment of License Agreement dated May 17, 2016, WTCSD agreed to exercise, manage and perform all of the License Holders’ rights and obligations so as to maintain the License in good standing (District Clerk No. 65219). The San Diego Regional Economic Development Corporation, a non-profit organization (EDC) operates the WTCSD through a Service Provider Agreement between the District and the EDC recorded in the Office of the District Clerk as District Clerk No. 69051 (Service Provider Agreement).
RECOMMENDATION:
Recommendation
Receive an informational presentation on the WTCSD’s 2018 Annual Report from WTCSD staff.
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FISCAL IMPACT:
The District pays an amount not to exceed $150,000 to the EDC through the three-year Service Provider Agreement that commenced on July 1, 2018 and ends on June 30, 2021. Additionally, the District pays the WTCSD’s licensing fee to the WTCA in the amount of $10,000 per year pursuant to the Amended and Restated License Agreement recorded in the Office of the District Clerk as District Clerk No. 62844.
Compass Strategic Goals:
This agenda item supports the following Strategic Goal(s).
• A Port that the public understands and trusts.
• A thriving and modern maritime seaport.
• A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
DISCUSSION:
The WTCSD operates through the License granted by the WTCA for the benefit of the residents and businesses located within the jurisdictional boundaries of the License Holders. Under its current organization, the EDC operates the WTCSD through the Service Provider Agreement.
The District entered into the Service Provider Agreement with the EDC to provide market research, outreach, coordination and joint marketing services focused on the District’s business lines, including Maritime, Real Estate and Blue Economy/Aquaculture in the amount not to exceed $150,0000 for the three-year term. Such activities over the three year period include items such as, raising awareness of the District’s Blue Economy initiatives and helping to attract innovative proposals and potential investment partners, execution of a plan for a study of bulk products flowing between San Diego and Southeast Asia that could ship out of Tenth Avenue Marine Terminal, and global promotion of Request for Proposals solicitation opportunities and processes through the WTCA and other international networks. The District also pays the annual Licensing Fee to the WTCA, in the amount of $10,000 per year.
The WTCSD released their 2018 Annual Report (Attachment A) in December 2018, following its third full year of work for the License Holders. Included in the Annual Report are highlights of WTCSD’s efforts to:
1. Build an export pipeline of companies;
2. Attract and retain foreign investment in San Diego; and
3. Strengthen San Diego’s global identity and position it as a destination for investment.
WTCSD staff will provide the Board with an informational presentation highlighting the these three (3) key areas (Attachment B) at the April 9, 2019 Board meeting and discuss how the WTCSD’s efforts have helped expand support to the District’s Maritime Cargo and Cruise businesses, as well as Blue Economy and Real Estate initiatives, in 2018 and plans to continue these efforts into 2019 and beyond.
General Counsel’s Comments:
The Office of the General Counsel has reviewed this agenda sheet as presented to it and approves it as to form and legality.
Environmental Review:
The proposed Board direction or action, including without limitation, an informational presentation from the World Trade Center on their 2018 workplan outcomes and annual report, does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.
In addition, the proposed Board direction or action complies with Sections 35 of the Port Act, which allows the Board to do all acts necessary and convenient for the exercise of its powers. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
Finally, the proposed Board direction or action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit Regulations. Therefore, issuance of a Coastal Development Permit or exclusion is not required.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Greg Borossay
Principal, Maritime Business Development
Joel Valenzuela
Director, Maritime Division
Attachment A: World Trade Center San Diego Annual Report 2018