STAFF REPORT
City of Lancaster
CC 6
3/12/2024
JC
Date: March 12, 2024
To: Mayor Parris and City Council Members
From: Larissa De La Cruz, Director - Community Development Josh Thomas, Supervisor - Economic Development
Subject: Rental Agreement of Property to Heliogen Holdings, Inc. Formerly Edisun Microgrids, Inc.
Recommendations:
1. Approve the renewal of a Rental Agreement between the City of Lancaster and Heliogen Holdings, Inc., formerly known as Edisun Microgrids, Inc., for the lease of City property located in the Lancaster Business Park.
2. Authorize the City Manager or his designee to finalize and execute all related documents.
Fiscal Impact:
The one-year lease will generate monthly revenue of $2,000, amounting to $24,000 per year. The rental agreement can be extended up to three times, resulting in a total duration of four years. If all extensions are utilized, the total revenue would reach $96,000.
Background:
Under the leadership of Mayor R. Rex Parris, the City of Lancaster has launched a comprehensive effort to accelerate hydrogen production and adoption within our community.
The benefits of hydrogen are manifold. Hydrogen power has long been recognized for its potential in curbing carbon emissions and advancing global renewable energy objectives.
Harnessing hydrogen energy results in carbon-neutral emissions, primarily warm air and water vapor, and is presently employed in select electric vehicles and limited power operations.
Heliogen Holdings, Inc. (“Heliogen”) is fully committed to leveraging the vast potential of hydrogen to protect our environment. Operating as a subsidiary of a prominent disruptor in the energy industry, Heliogen is actively engaged in pioneering advanced technologies to showcase the practicality of hydrogen power plants.
Thanks to the steadfast commitment of the Lancaster City Council to renewable energy initiatives, Heliogen has established a state-of-the-art power plant within the City of Lancaster. 1 5
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The proposed extension of the rental agreement involves leasing approximately 20 acres of property in the Lancaster Business Park, previously known as the Lancaster Golf Center, to Heliogen for a duration of up to four additional years. As part of its initial leasing period, Heliogen has already renovated and repurposed existing structures on the site for office and educational purposes, and has constructed a pilot hydrogen generation facility. The additional leasing period is crucial for the continued research and development of hydrogen production.
Furthermore, the company is committed to organizing educational tours for local students and community members to deepen their understanding of hydrogen power technology.
This initiative presents numerous noteworthy advantages for the City of Lancaster:
•Enhancing Lancaster’s stature as a frontrunner in renewable energy and a hub for pioneering innovation.
•Generating lease revenue totaling $96,000 throughout the three-year lease period. •Continuing to make available a unique educational opportunity for local residents. •Making effective use of an underutilized asset within the City.
The proposed rental agreement promises substantial benefits without imposing any direct financial burden on the City. It exemplifies Lancaster’s unwavering commitment to safeguarding our planet for generations to come.
JT/js
Attachment:
Heliogen Rental Agreement