Report to City Council
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TO: Mayor and City Council
FROM: Melissa Walker, Public Works Director/City Engineer
AGENDA DATE: December 16, 2025
TITLE: ACCEPTANCE OF PARCEL FOR SUBSTATION
(REPORT OF: PUBLIC WORKS) (DISTRICT 3)
TITLE SUMMARY: Authorization of the Acceptance of Real Property Donation Agreement and Joint Escrow with SOPAC P roperty
Holdings, LLC For A S ubstation Site And Easement For
Battery/Energy Storage
District 3
Recommendation(s)
That the City Council:
1. Adopt a Resolution authorizing the City to accept, at no cost, certain real property interests from SOPAC Property Holdings, LLC ("Donor") consisting of APNs 422 -070- 029, 422-070-030, and a portion of 422 -070-031 (collectively, the "Donation Property") for use as the World Logistics Center (WLC) Specific Plan substation site and easement for related battery/energy storage area; and
2. Authorize the City Manager, or his designee, to execute the Donation Agreement, Certificate of Acceptance, and Professional Service Agreements related escrow and title documents, and to take any actions necessary to effectuate the acceptance and close of escrow consistent with this staff report; and
3. Authorize recordation of the Grant Deed and related documents with the Riverside County Recorder.
SUMMARY
The proposed action would accept, at no cost to the City, three parcels (APNs 422 -070-
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029, 422-070-030, and a portion of 422 -070-031) from SOPAC Property Holdings, LLC (hereinafter referred to as the “Donor”) to facilitate the siting of a new Moreno Valley Utility (MVU) substation and a battery/energy storage area as contemplated by Section 3.5.5 of the World Logistics Center ( WLC) Specific Plan. A small area of APN 422 -070-031 is anticipated to be conveyed by separate donation to Eastern Municipal Water District (EMWD) for a future booster pump substation to serve the WLC Specific Plan and eastern Moreno Valley. The battery/energy storage area easement is approximately 159,685 square feet (≈3.66 acres) as depicted on Exhibit A.
The Donation Agreement provides that if the Donation Property is not constructed and operated as a WLC substation as contemplated, the City (or designee) shall reconvey the property to the Donor upon written demand. Title and escrow services will be provided by Chicago Title Company (Newport Beach). Staff finds the acceptance consistent with prior Council approvals for the WLC utilities and within MVU’s service responsibilities.
DISCUSSION
The proposed acceptance relates to three parcels owned by SOPAC Property Holdings, LLC —APNs 422-070-029, 422-070-030, and a portion of 422 -070-031—located within the City of Moreno Valley. The property is primarily vacant land; APN 422 -070-029 includes a residence constructed in 1979 that the Donor will demolish prior to close of escrow. The City’s acceptance is intended to secure a site for a Moreno Valley Utility (MVU) substation and for a defined energy storage area to support the electrical demands and reliability needs of the World Logistics Center (WLC) Spe cific Plan. In addition, a small area of APN 422 -070-031 is anticipated to be donated by separate agreement to Eastern Municipal Water District (EMWD) for a future booster pump substation that would serve the WLC Specific Plan and eastern Moreno Valley. Th ese facilities are contemplated in Section 3.5.5 of the WLC Specific Plan and are consistent with prior approvals.
Under the Donation Agreement, the Donor will convey the property to the City at no cost and in an as -is condition, except that the Donor will remove the existing residence on APN 422 -070-029. The agreement limits the City’s use of the Donation Property to substation purposes consistent with the Specific Plan, and it includes a reconveyance requirement: if the substation is not constructed and o perated as contemplated, the City or its designee must reconvey the property to the Donor upon written demand, free and clear of liens other than approved exceptions. Until the City provides notice of need, the Donor may conduct temporary uses pursuant to a City-issued temporary use permit that functions as a license. Upon ninety (90) days’ written notice from the City, any temporary use must cease, and the site must be returned to a broom-clean condition.
Design, construction, and operation of the substation and battery/energy storage area will be implemented by MVU and will adhere to WLC Specific Plan requirements, including on-site design standards for setbacks, landscaping and buffers, screening (walls, berms, and/or landscaping), water quality elements, and public parkway improvements along World Logistics Center Parkway (formerly Theodore Street). The energy storage easement area is approximately 159,685 square feet (about 3.66 acres) as depicted on Exhibit C. Final design submittals will undergo standa rd City reviews to ensure
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conformance with the Specific Plan and City standards.
The transaction will be processed through Chicago Title Company (4911 Birch Street, Newport Beach), which will serve as the escrow and title company. Within fifteen days of the agreement’s effective date, the City will obtain an amended preliminary title report (effective January 13, 2025; Order No. 00197428 -987-OC1-KDJ) identifying exceptions and providing a color -coded map. The City may object to title matters; the Donor ma y elect to cure, and all monetary liens must be released prior to closing. Escrow will obtain a Natural Hazard Disclosure statement for the City’s review. Closing is targeted on or before February 2026, contingent on Council acceptance, and the agreement terminates at 5:00 p.m. on June 30, 2026, unless extended by mutual written agreement.
The City has determined that the acceptance action does not require additional review under the California Environmental Quality Act (CEQA) because it is a subsequent action within the certified WLC Revised Final Environmental Impact Report. A Notice of Determination will be filed and posted following Council action. Overall, the acceptance facilitates the utility infrastructure anticipated by the Specific Plan without alt ering previously approved policy direction. Protections for both parties are included through the reconveyance provision, title review and lien clearance, and compliance obligations under the Specific Plan.
ALTERNATIVES
1. Approve and authorize the recommended actions as presented in this staff report.
Staff recommends this alternative to ensure that a site will be available for MVU to install the necessary facilities to serve the new load growth in the eastern portion of the City.
2. Do not approve and authorize the recommended actions as presented in this staff report. Staff does not recommend this alternative as it will limit the ability for MVU to serve new customers in the eastern portion of the City.
FISCAL IMPACT
The City will acquire the three parcels at no purchase cost from the donor. MVU will be responsible for customary escrow, title, recording fees, and minor administrative costs (including NOD filing/posting), estimated to be $10,000 based on recent and similar donations of property at the same development . Costs are estimated to be modest and expensed from the approved Fiscal Year 2025/26 Adopted Operating Budget under MVU’s Electric Fund 6010, with no impact to the General Fund. Donor is responsible for all costs associated with the removal of monetary liens and demolition of the residence on APN 422 -070-029 prior to closing. Future design, construction, and operation costs for the substation and battery/energy storage area will be programmed and funded separately by MVU through approved capital improvements and projects in future approved capital improvement budgets . Acceptance may minimally increase property management obligations prior to construction; those costs are anticipated to be de minimis and absorbable within existing budgets.
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NOTIFICATION
Posting of the agenda.
PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:
Kamran Aladross, P.E. Melissa Walker, P.E.
Electric Utility Assistant Manager Public Works Director/City Engineer Concurred By:
Jason Niccoli, P.E.
Electric Utility Division Manager
CITY COUNCIL GOALS
Positive Environment: Create a positive environment for the development of Moreno Valley's future.
Public Facilities and Capital Projects: Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.
CITY COUNCIL STRATEGIC PRIORITIES
1. Economic Development
2. Public Safety
3. Library
4. Infrastructure
5. Beautification, Community Engagement, and Quality of Life
6. Youth Programs
Objective 1.1: Proactively attract high-quality businesses.
Objective 1.2: Market all the opportunities for quality industrial development in Moreno Valley by promoting all high-profile industrial and business projects that set the City apart from others.
Objective 1.6: Establish Moreno Valley as the worldwide model in logistics development.
Objective 1.9: Ensure the City’s General Plan articulates the vision for how Moreno Valley wants to evolve over time, and provides an orderly and predictable process through which this vision is developed and implemented, including new attention to economic development, sustainability, public health, and innovation.
Objective 4.5: Explore green/renewable innovations and technologies for new developments such as the World Logistics Center.
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Report Approval Details
Document
Title:
STAFFREPORT_PW_MVU_WLCDONATIONAGREEMENT.docx
Attachments: - Exhibit A - Easement Legal and Platt.pdf - WLC Donation Agreement and Joint Escrow Instructions - DRAFT.pdf
Final
Approval
Date:
Dec 9, 2025
This report and all of its attachments were approved and signed as outlined below:
Melissa Walker
Sean Kelleher
Natalia Lopez
No Signature - Task assigned to Dena Heald was completed by workflow administrator Patty Rodriguez
Dena Heald_Deleted
Launa Jimenez
Brian Mohan
Patty Rodriguez