We make cargo move
Briefing report - Port of Hueneme AAPA Maritime logistics park Economic development concept – Development committee, October 2019 Norfolk Vision VISION AND To operate as a self-supporting Port that enforces the principles of MISSION sound public stewardship maximizing the potential of maritime-related commerce and regional economic benefit.
Mission To be the preferred port for specialized cargo and provide the maximum possible economic and social benefits to our community and industries served. Port environment: dynamic changes underway
• New Global Shipping Line Alliances – consolidating, more port competition
• Sizes of new vessels – growing larger, requiring more infrastructure, land to service them
• Global Trade: will double by 2030 VV • NET RESULT: to stay competitive, ports need to: • service larger ships • Process more cargo, faster • and have deeper reach into the hinterland
• WHICH REQUIRES: MORE LAND Southern California counties and their gateway ports: • San Diego County: Port of San Diego • Los Angeles County: Ports of Los Angeles and Long Beach • Ventura County: Port Hueneme CARGO TONNAGE REVENUE TONNAGE BY SEGMENT BY SEGMENT CARGO others property other 11% fertilizer autos mgmt 9% 7% 19% fertilizer13% TYPES general cargo 7% 2% autos 50% bananas fruit 18% fruit 24% 39%
Ag Exports Up 42%!
HISTORIC CARGO THROUGHPUT 1,600,000 UP 23% 1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
- FY FY FY FY FY FY FY FY FY FY FY FY FY 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ECONOMIC PROSPERITY TOTAL COMMERCE RESULTS ECONOMIC ACTIVITY 113% INCREASE TAX SINCE 2013 REVENUE 123% INCREASE SINCE 2013 JOBS 44%
INCREASE $1.7B SINCE
2013
$1.5B
$119M
$93M
15,834
13,633
$799.4M
$53.4M 10,226
2013 2015 2018 2013 2015 2018 2013 2015 2018 MAJOR WORLD CLASS OXNARD DISTRIBUTION CENTERS PRESENCE BY POH CLIENTS AIR QUALITY
WATER SOIL & QUALITY SEDIMENT
COMMUNITY SUSTAINABILITY
MARINE ENERGY RESOURCES MANAGEMENT
CLIMATE CHANGE
ENVIRONMENTAL FRAMEWORK GREEN PORT #CommittedtoEnvironment
GREEN MARINE CERTIFIED 2017 & 2018 • First port in California
COMPREHENSIVE ENVIROMENTAL MANAGEMENT AWARD 2018 • American Association of Port Authorities (AAPA) • Comprehensive Environmental Program Category
GREENEST US PORT 2017 • International Shipping Summit
ENVIRONMENTAL STEWARDSHIP AWARD 2017 • Ventura County Board of Supervisors Progress to date
• Environmental stakeholders ‒ Numerous meetings to discuss concerns, needs, opportunities ‒ Developed general environmental project standards ‒ Identified community investment areas to address environmental needs (eg, nature pathway to wetlands) ‒ Environmental groups now supportive of the development concept • Community stakeholders ‒ Extensive discussion with city officials to determine general community needs ‒ Incorporated community sports park development area into site to meet community needs • Port clients/potential buyers ‒ Numerous meetings to gauge interest and commitment by port clients ‒ Indications strongly indicating logistics park will be oversubscribed • City of Oxnard ‒ ‘Reintroduced’ the Port of Hueneme/Oxnard Harbor District to the county and city as a major economic engine, environmental leader and partner in economic development ‒ Exploring ways to fast track logistics park project ‒ Ongoing analysis on very positive economic, environmental and community quality of life impacts
10 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org • Mayor Flynn/Customers Brown Bag Lunch • City Council Members • City of Oxnard Management City • City of Port Hueneme OUTREACH
• County CEO & Supervisors Long and Zaragoza
• Lafco PROPERTYOWNERS County • EDC-VC • VCTC
• State Tide Lands • Coastal Commission State • Coastal Conservancy
• Naval Base Ventura County • Nature Conservancy (Federal non-profit) Federal • CI National Marine Sanctuary
• CAUSE • Ormond Beach Task Force and Workshops • Godwin’s – Saviers Design team Community • Port Hueneme, Save the Beach • Latin Business Association • Labor Groups
11 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org PROCESS & TIMELINE
“TEMPORARY” PROJECT- 34 acres
Approvals City City, TNC, Coastal After Public Property use starts Outreach and Council, Planning Conservancy, Navy MND Prepared for Comments EIR is for GLOVIS Auto Education Process Commission After Mtg on the Site 2019 now being Business EIR Planning Com, On-going prepared September 2020 November 2018 & Port June 2020
12 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Draft general development concept plan
13 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Perimeter park wall
Perimeter Treatment “Security Wall & Fencing, Landscaping and Lighting” – Community Outreach
Port of Hueneme Security Wall and Landscaping
Port of Hueneme Perimeter Treatment adjacent to Residential Development.
Port of Hueneme Logistic Park
14 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Environmental standard goal to be met – LEED Platinum! Green Development – Proposed standard for Port of Hueneme Logistics Park
Riverside renewable energy example
About Riverside Renewable Energy •Located in Gloucester City, New Jersey •All electricity is 100% Solar Energy. Philadelphia, Delaware River •Largest rooftop solar array in North America!
Facility Scope •Capacity of 9 mega watts, creates 11 million- kilowatt hours pa renewable energy •Photovoltaic solar panels cover 1.1 MILLION sf of rooftop space
Benefits to the Environment •Capturing 9 Mega Watts of clean energy yearly equivalent to: •Eliminating 16 MILLION pounds of
CO2 emissions •Removing 1,200 cars from roads •Enough energy to power 1,500 homes •Planting 400,000 trees (2,300 acres)
15 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Community stakeholders – amenities that enhance the viability of the logistics park development concept
The following are some general conceptual renderings of what this area may eventually look Like.
This rendering shows the type of ‘green’ statement the corner of East Hueneme and Olds roads could look like.
Envisage a semi-circle of pods (i.e., stores) with green space between them that leads to the back and the sports fields.
If you truly want to get creatively ‘green’, the service center could re-use shipping containers, like these in Amsterdam.
Port of Hueneme Logistic Park
16 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Community stakeholders – amenities that enhance the viability of the logistics park development concept
Restaurants and amenities to service workers at the logistics park and the community through various service and entertainment related tenants at the community sports center. Example below: Charcoal Restaurant, Wynwood District, Miami, Florida – restaurant facility is made from cargo containers.
Port of Hueneme Logistic Park
17 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Timing
• LAFCO/CEQA ‒ Hired specialists consultants to navigate permitting process through the political landscape
‒ Permitting time frame for project estimated to take four years
‒ Strategies being explored to reduce this time
‒ Could take up to $5 million and five years to obtain
18 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Preliminary development cost estimates and land use plan
• AECOM developed preliminary site plan
• Numerous planning issues and challenges resolved from rail access for entire site to incorporating community sports park
• Preliminary land development cost estimates: $32 million +/-
19 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org CONFIDENTIALITY NOTICE: All material presented in this presentation is compiled from sources believed to be reliable and current, but accuracy cannot be Financial implications guaranteed. The information contained in this presentation is not to be construed as an offer to buy or sell any financial instruments, property or interests in a property or leasehold. It is not our intention to state, indicate or imply in any manner whatsoever that current or past results are indicative of future profitability or expectations of profitability and capital appreciation. As with all investments there are associated inherent risks in investing in property. Please obtain and review all financial material carefully before investing. This presentation may contain proprietary and confidential information of Aegir LLC. Circulation, disclosure or dissemination of all or any part of this presentation to any unauthorised persons is prohibited as is unauthorised reproduction or distribution of all or any part of this presentation.
Potential development cost numbers (general estimates) Permitting: $4,000,000 - $5,000,000 Rail: $4,000,000 - $5,000,000 Development costs: $33,000,000 - $35,000,000 Amenities : $8,000,000 - $10,000,000 Possible sub-total: $50,000,000 +/- Land: To be determined Potential soft, finance $7,500,000 +/- costs: Potential project costs: $180-$200 million Property tax assessment and county revenues?
20 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Challenges
• Timing ‒ Entitlements take up to five years; development one
• Entitlements: ‒ Entitlements funding completely at risk ‒ Port - only entity with political capital to obtain them for a project of this magnitude
• Funding: ‒ Phase 1: funding for entitlements – this is the only risk; there is no market risk ‒ Phase 2: with entitlements, institutional money will be forthcoming and inexpensive
• Amenities: ‒ Community amenities’ costs should not take proposed logistics park into realm of financial unfeasibility
21 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Challenges (continued)
• Pricing: ‒ End users - sophisticated, operate under very stringent financial standards, build similar facilities world wide ‒ Therefore, development costs of every element in the process will be ‘commoditised’ ‒ In this market, project will not support layers of costs ‒ Alternatives? OTHER PORTS
• Development goals: ‒ Merchant builders, short term investors versus the port’s, which is to satisfy clients in the shortest possible time for the long-term ‒ Highest profit possible versus greatest economic impact to community and long-term competitive viability for the port
• Ownership issues and objectives: ‒ Control of entity required ‒ Transparency requirements by the port 22 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org Summary
Questions & Answers
23 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org We Make Cargo Move
805-488-3877 www.portofhueneme.org
24 Port of Hueneme Proposed Logistics Park – October 2019 | AAPA MEDC Norfolk meeting www.portofhueneme.org