ORDINANCE NO. 2026-013
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF CHINO AND DIRAC PROJECT LLC, AND MAKING FINDINGS OF GENERAL PLAN CONSISTENCY WHEREAS, the City of Chino (“City”) Municipal Code (“CMC”) Section 20.23.070 (“DA Ordinance”) requires the Planning Commission to consider a proposed Development Agreement and make a determination regarding its consistency with the City's General Plan and applicable specific plans and thereafter, the Planning Commission’s determination shall be transmitted to the City Council, in writing, within 60 days following the date its decision was rendered; and WHEREAS, Dirac Project LLC (“Applicant”) desires to enter into a statutory development agreement to vest certain land use entitlements and to allow the Applicant to construct and operate a 400-megawatt (MW) battery energy storage system (BESS) on a 13.89-acre property in the General Industrial (M2) zoning district located at 13925 Benson Avenue, 13822 Oaks Avenue, and 13910 Oaks Avenue (APNs: 1021-121-05, 1021-211-02, and 1021-211-05) (“Project”); and WHEREAS, on July 15, 2026, the Planning Commission conducted a duly noticed public hearing to consider the Project and Development Agreement. A motion to adopt Planning Commission Resolution No. PC2026-016, recommending that the City Council approve the Development Agreement, and Planning Commission Resolution No. PC2026-019, approving PL25-0085 (Special Conditional Use Permit) and PL25-0086 (Site Approval), failed by a 3-4 vote; therefore, the Planning Commission did not adopt written findings or make a recommendation to the City Council regarding approval of the Development Agreement; and WHEREAS, pursuant to the DA Ordinance, the City Council may approve, approve with modifications or deny a Development Agreement application upon finding that the Development Agreement is consistent with the General Plan and any applicable specific plans and stating specific reasons supporting such finding, consistent with California Government Code (“Govt. Code”) Section 65864 et seq.; and WHEREAS, the City proposed to enter into the Development Agreement substantially in the form attached hereto as Exhibit “A”, and incorporated herein by this reference (“Development Agreement”), with the Applicant to facilitate the development of the Project; and WHEREAS, the DA Ordinance and Sections 65864-65859.5 of the Govt. Code authorize the City to enter into Development Agreements with any person having a legal or equitable interest in real property and require the planning agency of the City to find the proposed Development Agreement to be consistent with the policies and programs of the City’s General Plan; and WHEREAS, the proposed Development Agreement outlines Community Benefits under developer obligations that includes: 1) Community Benefit Payments in the amount of six million dollars ($6,000,000) to be dispersed at key project milestones; 2) Community Benefit Payments in the amount of six hundred thousand dollars ($600,000) for fire incident prevention, preparedness, mitigation and suppression; 3) employment outreach for local residents, as it relates to the project; 4) guaranteed Project Sales and Use Tax Revenues in the amount of four million dollars ($4,000,000); and 5) expert third-party Fire Safety Training; and WHEREAS, the proposed Development Agreement and the construction of the Project has been determined to be within the scope of the previously certified 2045 General Plan Update Environmental Impact Report (EIR) (State Clearinghouse No. 202409083), adopted on September 2, 2025. The EIR adequately describes the environmental effects of the proposed project for the purposes of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15183. The proposed project is consistent with the land use designation, and applicable policies established by the City’s General Plan, and underlying zoning, all of which were evaluated in the certified EIR. Pursuant to Section 15183(b), a focused evaluation of the development was conducted and the analysis concluded that the proposed project would not result in any new or more severe significant environmental impacts beyond those identified in the certified General Plan EIR. The project is also subject to uniformly applicable development policies and mitigation measures identified in the 2045 General Plan Update EIR, which would reduce potential impacts to less than significant levels. Accordingly, pursuant to CEQA Guidelines Section 15183, no additional environmental review is required; and WHEREAS, pursuant to California Government Code Sections 65867 and 65090 the City on September 5, 2026, published a legal notice indicating the public hearing to be held by the City Council on September 15, 2026; and WHEREAS, the City Council considered the provisions of the Development Agreement at a public hearing on September 15, 2026, and all interested parties were given an opportunity to be heard regarding the Development Agreement; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.
NOW, THEREFORE, the City Council of the City of Chino, California, does hereby ORDAIN as follows:
A. The foregoing recitals are true and correct and incorporated herein.
B. Pursuant to the Government Section Code 65864 through 65869.5 and in light of the full record before it, including the staff report (and all attachments), and all evidence and testimony heard at the public hearing for this item, and in light of all evidence and testimony provided in connection with the Applicant’s Special Conditional Use Permit (PL25-0085) and Site Approval (PL25-0086) applications, the City Council hereby makes the following findings:
The Development Agreement (DA) is consistent with the General Plan in that it facilitates the development of a battery energy storage system within an area designated and zoned for industrial and utility-related uses. The Project is consistent with General Plan Goal and Policies INF-6, which calls for the City of Chino to provide reliable energy services to serve new and existing development. The Project would enhance grid reliability by storing energy during periods of low demand and delivering energy during periods of peak demand, thereby supporting the City’s objective of maintaining a stable and resilient energy supply. In addition, the DA provides substantial public benefits, including community benefit payments, generation of sales and use tax revenue, and Development Impact Fees (DIF) to support public services and infrastructure, as well as provisions to promote local employment opportunities. Collectively, the DA advances General Plan goals related to land use compatibility, infrastructure reliability, economic development, fiscal sustainability, and community investment.
The Development Agreement is consistent with and furthers a number of goals and objectives under the General Plan, including Policy ED-4 (Community First) and Policy ED-6 (Fiscal Responsibility). The DA supports community-focused investment by facilitating the development of critical energy infrastructure that provides long-term value and promotes economic opportunities, including local employment during construction and operations. Additionally, the DA generates substantial revenue to support community well-being through community benefit payments, sales and use tax revenue, and DIF, thereby advancing the City’s fiscal sustainability objectives.
The Development Agreement constitutes a lawful, present exercise of the City’s police power and authority under the Govt. Code and the City’s DA Ordinance.
C. The City Council accept Community Benefit Payments generated by the project and authorize staff to establish the following funding categories to receive funds and offset community impacts related to the project in accordance with applicable state and local laws: 1) Fire Suppression and Emergency Management and Preparedness; 2) Fire Training; 3) Public Works, 4) Public Safety, 5) Community Services, Parks and Recreation, 5) Planning and Development Services, 6) Workforce and Economic Development; 7) Community and Nonprofit Support; 8) Arts and Culture, and 9) administrative costs.
D. Based upon all oral and written reports and presentations made by City staff and members of the public, including any attachments and exhibits, the City Council hereby finds that the Project and Development Agreement is within the scope of the previously certified 2045 General Plan Update Environmental Impact Report (EIR) (State Clearinghouse No. 202409083), adopted on September 2, 2025. The EIR adequately describes the environmental effects of the proposed project for the purposes of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15183. The proposed project is consistent with the land use designation, and applicable policies established by the City’s General Plan, and underlying zoning, all of which were evaluated in the certified EIR. Pursuant to Section 15183(b), a focused evaluation of the development was conducted and the analysis concluded that the proposed project would not result in any new or more severe significant environmental impacts beyond those identified in the certified General Plan EIR. The project is also subject to uniformly applicable development policies and mitigation measures identified in the 2045 General Plan Update EIR, which would reduce potential impacts to less than significant levels. Accordingly, pursuant to CEQA Guidelines Section 15183, no additional environmental review is required.
E. Based on the entire record before the City Council and all written and oral evidence presented to the City Council, the City Council hereby adopts this Ordinance approving the Development Agreement substantially in the form set in Exhibit “A” with any minor modifications or changes approved or recommended by the City Attorney or the City Manager.
F. The City Council hereby authorizes and directs the Mayor to execute this Ordinance on behalf of the City of Chino forthwith upon its adoption.
G. The City Clerk shall certify as to the passage of this Ordinance and shall cause the same to be published and/or posted at the designated locations in the City of Chino upon adoption and forthwith transmit a copy of this Ordinance, by regular mail, to the Developer at the address of record set forth in the Development Agreement.
PASSED, APPROVED, and ADOPTED this 6th day of October 2026.
Eunice M. Ulloa, Mayor
ATTEST:
Natalie Gonzaga, City Clerk
State of California )
County of San Bernardino ) §
City of Chino )
I hereby certify the foregoing Ordinance was duly adopted by the Chino City Council at a meeting held on the 6th day of October 2026 and entered in the minutes of the City Council.
AYES: COUNCIL MEMBER:
NOES: COUNCIL MEMBER:
ABSENT: COUNCIL MEMBER:
NATALIE GONZAGA, CITY CLERK
Attachment:
Exhibit “A” – Development Agreement