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TO:Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Jim DellaLonga, Director of Economic Development SUBJECT: Consideration and possible action to receive and file the notice of ineffective agreement regarding License Agreement AFN 943, between Greencore EV Services, LLC and the City of Bellflower, regarding the use of a portion of the City-owned parking lot at 16600 Civic Center Drive to construct an 8-stall electric vehicle EV) fast-charging station.
DATE: April 24, 2023
EXECUTIVE SUMMARY
During the past several months, the Economic Development Director has been working with GreenCore EV Services, LLC (GreenCore) through License Agreement AFN 943 to construct an EV charging station on a portion of the City-owned parking lot at 16600 Civic Center Drive, on the south side of City Hall. The City Manager has provided GreenCore with a notice of ineffective agreement regarding License Agreement AFN 943 due to a lack of performance, an inability to provide the required insurance, and a request from GreenCore for City to now contribute financially and apply for tax credits.
RECOMMENDATIONS TO CITY COUNCIL
1) Receive and file the attached notice of ineffective agreement regarding License Agreement AFN 943; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
The existing agreement, which is not effective based on the current facts and circumstances, stipulates an annual $6,000 license fee and 4% of the gross earnings of the future charging station.
Staff Report Notice of Ineffective Agreement AFN 943, GreenCore April 24, 2023
DISCUSSION
On August 24, 2022, the City Council approved License Agreement AFN 943 Agreement) with GreenCore which would allow GreenCore to use a portion of the City-owned parking lot at 16600 Civic Center Drive, on the south side of City Hall, to construct an 8-stall EV fast-charging station. The Agreement also required GreenCore to pay an annual license fee of $6,000 and, on a quarterly basis, a percentage fee of 4% of the gross earnings of the charging station before interest, taxes, depreciation and amortization.
Over the past eight months, significant internal changes have occurred within GreenCore, delaying the start of the project. Most recently, GreenCore requested the City to contribute $300,000 to the project and apply for tax credits as possible reimbursement of the funding contribution.
Because of the lack of performance, inability to provide the required insurance and a request to change the deal structure of the license agreement, the City Manager has provided GreenCore with the attached Notice of Ineffective Agreement.
Staff will continue to explore other EV fast-charging station companies and potential funding sources for an EV fast-charging station project in the Civic Center parking lot.
ATTACHMENT
Letter to Greencore EV Services 2023-04-18 ................................................................... 3
Th e C i t y o f B e l l fl o w e r GS,
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tC600 Civic Cenrer Drive,De]IAower,CA 90706
Tel 562.804.1424 Pax 562.925.S6C0 www.bellflo« er.org CR WII 7G TpGE II
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April 18, 2023
Eric Johnson, Senior Director VIA EMAIL—[email protected] Greencore F_V Services, LLC
16748 E. Smoky Hill Road 9C, Suite 311
Centennial, CO 80015
Subject: License Agreement AFN 943
j Dear Mr. Johnson:
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I This letter is to inform you that the License Agreement referenced above is ineffective due to lack of performance and the inability of Greencore to provide the insurance i required under the agreement.
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The City is sorry the project did not come to fruition. All the best in your future endeavors.
Sincerel A
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J rey L. Stewart
ity Manager
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