STAFF REPORT
City of Lancaster
CC 15
12/12/2023
JC
Date: December 12, 2023
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Director – Community Development Sydney Yeseta, Assistant Manager – Economic Development Subject: Rental Agreement with Clean Water Ventures, Inc.
Recommendations:
1. Approve the Rental Agreement with Clean Water Ventures, Inc. for three industrial parcels near Avenue I and Division Street.
2. Authorize the City Manager, or his designee, to execute the Rental Agreement in substantially the form presented, subject to non-substantive changes approved by the City Manager and City Attorney.
Fiscal Impact:
The rental agreement will generate monthly revenue of $2,841.66, or $34,099.92 annually, for the first year beginning on the Commencement Date of March 1, 2024. The base price will increase by 3% every year over the term of the agreement.
Background:
Clean Water Ventures, Inc. (CWV) developed technology that utilizes recycled wastewater to generate green hydrogen, clean water, and a range of eco-friendly coproducts.
On March 28, 2023, the City Council approved the Master Agreement between the City and CWV. Through this agreement, the City will keep five percent (5%) of the Renewable Identification Number (RIN) credits created through the process of creating green hydrogen starting six (6) months from the date in which the facility begins its operations and coproduct production commences.
Staff has been working with CWV since to identify a project site within Lancaster. The City owns a roughly 5.15-acre industrial site comprised of three parcels (APNs: 3137-015-900, -901, and -902) that is currently vacant and undeveloped. The City has no other prospective interest or use for the property.
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The subject parcels were declared surplus by Resolution 20-49 on September 8, 2020.
Subsequently, a Notice of Availability was sent to all required entities as mandated by the Surplus Land Act (SLA), and no entity was prepared to purchase the site. On October 7, 2022, the City received a letter from the California Department of Housing and Community Development (HCD), which determined the all the requirements under the SLA were met and the City could proceed with the sale or lease of the properties.
This facility will mark CWV’s first-ever Clean Water-Green Energy plant and is a mark of the continuing partnership between CWV and the City in the pursuit of clean energy and sustainable practices.
SY/js
Attachment:
Rental Agreement with Clean Water Ventures, Inc.