Point Molate

Background
Point Molate is located on the San Pablo Peninsula approximately 1.5 miles north of the Richmond-San Rafael Bridge. Beginning in 1942, Point Molate served as a U.S. Navy fuel storage and transfer facility. It closed on September 30, 1995 under the U.S. Department of Defense Base Realignment and Closure Act of 1990. A 45-member Blue Ribbon Advisory Committee developed the Point Molate Reuse Plan (Plan), which was approved by the Richmond City Council acting as the Local Reuse Authority (LRA), in 1997. This Plan serves as the guide for the reuse and development of the site.

Richmond’s Vision for Point Molate 

On September 23, 2003, the City of Richmond obtained the deed from the U.S. Navy for 85% of Point Molate. Due to the beautiful location and historical attributes of Point Molate, the City hopes the site can:

·                        Enhance the economic base and long-term economic viability of the City;

·                        Create and attract job and business opportunities;

·                        Improve the City’s regional presence and attractiveness; and

·                        Expand open space and recreational opportunities.

Point Molate Development
On December 16, 2003, after a competitive process, the LRA selected Upstream Investments, LLC (Upstream) as the developer of the site. The Richmond City Council approved a Land Disposition Agreement (LDA) with Upstream on November 9, 2004, authorizing the City to sell its portion of Point Molate to Upstream. Upstream currently proposes to transfer ownership of Point Molate to an Indian tribal group, the Guidiville Band of Pomo Indians, to develop the site as an Indian casino. On March 7, 2006, the City Council approved the First Amendment to the Land Disposition Agreement to allow for phased site development. On September 2, 2008, the City Council approved the LDA's Second Amendment. The LDA's Third Amendment became effective on January 15, 2010 extending the LDA expiration date to March 15, 2010. The LDA’s Fourth Amendment became effective March 16, 2010 extending the LDA expiration date until April 20, 2010. The LDA’s Fifth Amendment became effective April 16, 2010 extending the closing date until May 20, 2010. On May 18, 2010, the Sixth Amendment became effective, extending the closing date to April 20, 2011. The Sixth Amendment also commits Upstream to participate in at least 3 public workshops to solicit additional alternative uses prior to the City’s consideration of the final Point Molate Mixed Use Tribal Destination Resort and Casino Project EIR/EIS. These workshops will be held before the end of calendar year 2010.

Upstream provides semi-annual status reports as required under the Land Disposition Agreement.

Recent Activity Timeline

·                        On July 29, 2008, the City Council approved the Navy/City negotiated Early Transfer Cooperative Agreement (ETCA), which transfers environmental obligations on the entire site to the city and obligates the Navy to pay $28.5 million dollars to the City to undertake the remediation work.

·                        On September 2, 2008, the City Council approved the Pt. Molate Remediation Agreement between the City and Upstream Pt. Molate LLC, which clarifies both the City of Richmond’s and Upstream’s responsibilities for achieving regulatory closure for the site. Under the Remediation Agreement, Upstream Point Molate LLC assumes the City’s responsibility for the Environmental Services obligated to be performed under the ETCA. The California Regional Water Quality Control Board is the State’s lead agency overseeing the cleanup.

·                        On September 12, 2008, the City and the Navy executed the Finding of Suitability for Early Transfer of the final 41 acres consisting of Disposal Areas 3,5,10, and 13.

·                        On February 3, 2009, the City Council approved the first amendment to the 2002 Memorandum of Agreement (MOA) between the United States Department of the Navy and the California State Historic Preservation Officer (SHPO), which reassigns many of the Navy’s obligations for historic preservation of the Pt. Molate Historic District to the City.

·                        On July 10, 2009, the Draft EIR/EIS became available. The comment period ended in late October 2009. Staff is currently working on response to comments.

·                        On March 29, 2010, the Navy transferred the remaining 41 acres to the City of Richmond and paid the required $28.5 million dollars for remediation work.

·                        On April 12, 2010, the City of Richmond, Upstream Pt. Molate LLC, and First American Fund Control executed a fiscal agency agreement that establishes an escrow account for the Navy grant funding and governs the disbursement of these funds.

·                        The Restoration Advisory Board held its final Navy-convened meeting on April 7, 2010. The City has committed to continuing a citizens’ advisory group during the remediation phase.

Anticipated actions still ahead

·                        As a result of the new ownership, the California Regional Water Quality Control Board (“Water Board”) will issue a new board order regarding the required cleanup. Board Orders 95-235, and 97-124, and 97-125 are currently in place.

·                        To begin the site remediation, Upstream will seek approval from the Water Board for site 3 soil cleanup criteria, remedial action plans for sites 3 and 4, a soil and groundwater management plan, and an underground storage management plan.

·                        The Department of the Interior Bureau of Indian Affairs will issue a Restored Lands Determination decision before the City considers the EIR for certification.

·                        At least 3 public workshops will be held pursuant to Amendment Six of the LDA.

·                        The Final EIR/EIS will be issued and the City will consider the EIR for certification.