DATE: August 9, 2022
SUBJECT:
Title
ORDINANCE GRANTING AMENDMENT NO. 6 TO THE 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 FOR AN ADDITIONAL 12 MONTHS TO DECEMBER 31, 2023
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. MCC desires to construct, own and operate a cement import terminal at the District's Tenth Avenue Marine Terminal (TAMT) to supply their customers in the San Diego market.
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. The Conditional Agreement was subsequently amended by Amendment No. 2, Amendment No. 3, Amendment No. 4 and Amendment No. 5 to extend the term of the Conditional Agreement to allow time to process the Subsequent Environmental Impact Report (SEIR) in accordance with the California Environmental Quality Act (CEQA) and allow MCC to complete the remaining conditions precedent.
Staff and MCC have been working diligently to complete the SEIR for the MCC project that "tiers-off" the Tenth Avenue Marine Terminal Redevelopment Plan and De...
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