City Council - Special Meeting

Marisella, can you hear me? It's George Flossber. Please stand for the flag salute to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible with liberty and justice for all. Right. Roll call, please.

Council member Urebe here. Council member FSY here. Council member Call here. Vice Mayor Pimementel is absent. And Mayor Hernandez

here. Um there are no scheduled agenda changes. Any council authority member who has a direct conflict of interest on any scheduled agenda item to be considered is to declare their conflict at this time. Pursuant to government code A4308 Lavine Act, any council authority member who has received a contribution of $500 or more within the preceding 12 months of a party participant or their agent related to an item on the agenda must disclose that contribution on the record prior to participation in the discussion or decision on the item and may be required to recuse themselves as applicable. Any conflict? All right. Item 6.1, a resolution authorizing the city manager to execute a supplemental lease amendment number six to Army lease DACA05051-21-508 thereby extending the interim lease through March 31 to 2066.

Mayor and councel, uh, this item is being brought forward to you as it is a an item that we have been requesting from the army. Um, and we do have a deadline for the city to make a decision on this in order to be able to move forward. Um, hence the special meeting that we're holding tonight. Uh, so just a little bit of history on the Riverbank Army ammunition plant for our residents who are interested in learning more. The original construction was in 1943 and it was um an aluminum reduction plant to support the uh World War II military production. In the early 1950s, it was reactivated to manufacture ammunition for the US Army, and it served as a key employer in Riverbank for over 60 years. Uh, the Army Armament Retooling and Manufacturing Support Program allowed private companies to lease the space on site for commercial and light industrial uses um after the ammunition plant portion of it closed down. So some of the history of the BL base closure part of it is in 2005 the defense base closure commission recommended the closure of the ammo plant. In 2006 the riverbank local redevelopment authority was formed and it serves as a single entity responsible for the decisions regarding the reuse and development of the property. In October of 2008, um, Riverbank adopted that reuse plan for the conversion of the military site to civilian use. The reuse plan and a homeless submission, which is required, were forwarded to the US Army um in and final approval was uh received in November of 2008. Uh in March of 2009, the LRA or local

redevelopment authority received no notification of the approval. Um and we are now the implementing local redevelopment authority that's responsible for executing the reuse plans guidance for successful reuse of the property. The LRA submitted an economic development conveyance application for approval to the Army in May of 2010. The LRA received a letter dated 20 December of 2012 from the Army and concurrence from the Office of the Secretary of Defense in February of 2013, which authorized the use of an economic development conveyance for the transfer of the Riverbank Army ammunition plant to the local redevelopment authority. In September of 2017, that economic development conveyance memorandum of understanding, which is the formal agreement, was negotiated to articulate those details and the intent of the business deal between the army and the local redevelopment authority. This economic development conveyance or EDC defines certain rights and obligations of the LRA and the army and identifies the requirements, restrictions, reservations, conditions, exceptions and procedures for the execution of the document in the LRA um and the city of Riverbank knew that we would probably be not be uh the best of landlords as that is not a core municipal service that we offer to our residents. And so it was decided that in order to bring the most economic um development opportunities to the site that a master developer would be better suited uh to oversee it. So we did release a request for proposers

proposals for a master developer for the Riverbank Industrial Complex. And after reviewing the submitts and interviewing candidates in early 2018, the board began negotiating a contract with a metis. The agreement was executed on December 14th of 2021 and Amedis officially took over operations of the complex in April of 2022. Um, Amedis has since purchased uh parcel B um as agreed to in July of 2022 as part of that master development agreement. And so now we get to the interim lease. Um, so the original InRim lease was signed in April of 2021 and in March of 2025 last year, the LRA exercised the final option year to extend the term um through this month of March 31st, 2026. So, previously we were on a year-to-year lease. In August 27th, um the LRA did request formally to the Army um to please consider a long-term lease. And so what is before you tonight for consideration is a long-term lease um that is framed as a supplemental lease amendment to the current interim lease. And so here are the terms that are being proposed as part of that lease amendment. Uh the term of the agreement would extend for 40 additional years with a new expiration date of March 31st, 2066. The interim lease would terminate um once the um army does tender a quick claim deed to the city, thus officially conveying the property to the city um or L.

The premises will continue to be subject to the general supervision and approval of the office of the assistant secretary um environmental office of the deputy assistant secretary of the army for environment safety and occupational health and the base realignment enclosure directorate or brack. Uh there is a new exhibit which includes an updated inventory and condition survey of the lease premises. Um once the lease is actually terminated whether it's by conveyance or because the lease expires then a closeout survey will also be required prior to the conveyance. uh the lease and any sublesses here um can extract or use groundwater from the subsurface of the lease premises via the wells that are identified um as part of the water system. So currently it does identify three wells, three active wells which are number one, five and six. Um although those are active um we do have those are not being used for potable water uses um uses. Um so they are being used if anything for manufacturing. Uh the lei will use all reasonable means available to protect the environment and its natural resources um ensuring that there's no further damage to um the site as part of any activities that we or a subless um does on the the property. uh leisel shall submit to the lessor and maintain thereafter an environmental compliance plan within 180 days of the lease um which will described in detail the program for that environmental management and the method of compliance

uh their property management plan for the land use controls um dated January 2026 is incorporated into this document as an exhibit it as well. The lei or sub lei may encumber its or their leasehold interest as well as its interest in the improvements on the leased premises but by one or more loans secured by a mortgage. Um the proposed holder of any mortgage must be approved by the government prior to the execution of any loans and the lei shall promptly discharge or cost to be discharged any valid leans any rights in rem claims and demands of any kind except one that's in favor of the government which at any time may arise or exist as a result of any action of the lei or any sub lei with respect ect to the lease premises. And a final one, all of the less obligations under the interim lease so survives shall survive foreclosure or any other transfer of leasehold interest in an insolveny proceeding and become the obligation of any successor for only those obligations arising during the period of ownership of said successor. So, our recommendation today is to authorize myself, the city manager, uh, to execute this supplemental lease agreement number six with the US Army for the continued reuse of the former Riverbank Army ammunition plant. I'm available for any questions. uh George Schlashberg um Melissa Holdaway who um both oversee our LRA um are available for any questions as well.

You are there any questions or comments from council. Just just one if I could. Um so just for uh clarification so on the equipment survey there um the only concern I had was the the transformers that were leaking. um say the property does convey uh and then so this would this agreement would terminate. I'm assuming that the state regulators would still oversee the the leaking transformers. Correct. Correct. Okay, cool. That's the only concern I had. Any public comment online as well? I didn't I didn't receive any request and I see no wait a minute. We have one online.

We do have one comment online. Mr. Hernandez, if you can go ahead and state your comment.

Um, hi. I had a question more than a comment. Um, now I understand that the Verbank L um is a super fun site and there's been a moratorum for new wells in the area. um are the is the current um facility using wellwater right now as we speak and and is there still a moratorum in place for wells uh in the adjacent area um of the L I mean of the super fund site and that's all my comments so the site is currently not using the wells for any potable water um Melissa are they currently using any in manufacturing ing. I know there are a couple of wells that do need to be rehabilitated in order to be used. Um, so at this point in time that has to happen first before it can be used. As to the moratorum for any new wells, that's something that Santaas County has placed. Um, and so at this point that still continues to stand.

The other public comment there's Is it you said the same person? Yes. Um Diego, we uh we're hoping to get your comments at once. So um if anything, we'd love to chat offline and Oh, there's no there's no additional comment. My apologies. I We are here for additional comments later. Um all right. So I'll bring it back to council for any other comments or questions or a motion. I make a motion we approve item 6.1. I'll second it.

Roll call, please. Authority member. Yes. Authority member FSY. Yes. Authority member call. Yes. And chair uh Hernandez. Yes. So that passes board to zero. Thank you so much. All right. And that was our last item for today. So uh this was a special meeting. We are adjourned.