DATE: February 11, 2020
SUBJECT:
Title
ORDINANCE GRANTING AMENDMENT NO. 4 TO CONDITIONAL AGREEMENT WITH MITSUBISHI CEMENT CORPORATION TO EXTEND THE TERM OF THE CONDITIONAL AGREEMENT FOR THE PROPOSED CEMENT IMPORT TERMINAL IN WAREHOUSE C AT THE TENTH AVENUE MARINE TERMINAL, IN SAN DIEGO
Body
EXECUTIVE SUMMARY:
Mitsubishi Cement Corporation (MCC) is majority owned by Mitsubishi Materials, the second largest producer of cement in Japan, and is a vertically integrated cement manufacturer and supplier of concrete. MCC desires to construct, own and operate a cement import terminal at the District's Tenth Avenue Marine Terminal (TAMT) to supply the San Diego market. MCC's ability to source, ship, receive and distribute cement through its own entities would make MCC a strong maritime anchor tenant at TAMT and aligns with the District's long-term vision of terminal operations.
On June 11, 2015, the Board adopted an ordinance granting a Conditional Agreementi to MCC to construct and operate a cement import terminal in up to three bays in Warehouse C at TAMT. The original term of the Conditional Agreement was to expire on June 30, 2018. On September 12, 2017, the Board adopted an ordinance granting Amendment No. 1 to the Conditional Agreement (Amendment No. 1) to extend the term of the Conditional Agreement and update the business terms to allow MCC to increase the size of the leased premises from three bays (150,000 square feet) to a potential of four bays (200,000 square feet) so that MCC may either import a second type of product (slag or fly ash) or import larger volumes of cement. Additionally, Amendment No. 1 extended the term of the Conditional Agreement through December 31, 2018 and included one, six-month option to extend the term through June 30, 2019. Subsequently, Amendment No. 2 to the Conditional Agreement was administratively executed on September 6, 2018 pursuant to the Board of Port Commissioners Policy No. 355 (BPC 355) to clarify the terms by...
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